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Govt extends airfare cap by three more months

by Raju Vernekar
0 comment 3 minutes read

Suspension of international passenger flights extended till November 30
 
By Raju Vernekar
Mumbai, Oct 30: 

The Union Civil Aviation Ministry on Thursday decided to continue restrictions on airfare which comprise seven bands of ticket pricing, till ensuing February. 
The Union Civil Aviation Minister Hardeep Puri said that air travel has progressed from the time the system of floor and ceiling of airfare was introduced to maintain stability in fare when India reopened air travel in June amid uncertainty. “But I believe we still need a little bit of cushion. We are extending the price band for another three months”. 
Puri also said that if by end of December, if there is a very appreciable improvement in situation and traffic reaches pre-COVID-19 levels, he would not have any hesitation to lift the price restrictions. Under the system, forty percent of the seats have to be sold at a fare that is lower than the mid-point of the maximum fare. The idea is that fare does not go out of hand and at the same time, it is viable for airlines too. 
On 21 May, the ministry had placed these limits through seven bands, classified on the basis of flight duration, till 24 August. Later, it was extended till 24 November. Domestic passenger services resumed on 25 May after nearly two months of suspension to combat the coronavirus outbreak. The Directorate General of Civil Aviation (DGCA) had on 21 May announced seven bands of ticket pricing with lower and upper fare limits based on flight duration. The first such band consists of flights that are of less than 40 minutes duration. 
The lower and the upper fare limits for the first band is Rs 2,000 and Rs 6,000, respectively.
The subsequent bands are for flights with durations of 40-60 minutes, 60-90 minutes, 90-120 minutes, 120-150 minutes, 150-180 minutes and 180-210 minutes. The lower and upper limits for these bands are: Rs 2,500-Rs 7,500; Rs 3,000-Rs 9,000; Rs 3,500-Rs 10,000; Rs 4,500-Rs 13,000; Rs 5,500-Rs 15,700 and Rs 6,500-Rs 18,600, respectively, the Directorate General of Civil Aviation (DGCA) said. 
In the meanwhile the suspension of scheduled  international passenger  flights  has been extended till November 30. However, the international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis,” the DGCA said in a circular. The scheduled international passenger services have been suspended in India since 23 March  due to the coronavirus pandemic. But special international flights have been operating under the Vande Bharat Mission since May and under the bilateral ‘air bubble’ arrangements with selected countries since July. 
India has formed air bubble pacts with around 18 countries, including the US, the UK, the UAE, Kenya, Bhutan and France. Under an air bubble pact between two countries, special international flights can be operated by their airlines between their territories. The DGCA circular also mentioned that the suspension does not affect the operation of international all-cargo operations and flights specifically approved by it.

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