(Image source from: Indianexpress.com)
After the domestic airlines lost big because of the pandemic, the price bands have been imposed on the domestic airlines in the year 2020 and all these restrictions will be removed from August 31st. The Civil Aviation Ministry of India issued a statement about the same lifting the restrictions on the ticket prices. A minimum and maximum band has been imposed by the government on the domestic airfares. From the next month, the airlines are likely to offer bigger discounts on the tickets to fill up the flights and encourage more number of flyers to make more profits in the coming days. The airlines cannot offer more number of discounts because of the restrictions and the price band imposed by the DGCA.
The aviation firms are now given a chance to reduce the ticket fares and get more funds for the airline companies. The airline companies after August 31st can lock the prices as per their own. The aviation firms will now offer reduced prices to recover more from the losses. The air traffic has been good in the recent months and the footfalls would be much higher if the airfares are reduced. Union Aviation Minister Jyotiraditya Scindia said that they have made the decision to remove the airfare caps. The decision was taken after a careful analysis considering the fuel prices.
The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future. https://t.co/qxinNNxYyu— Jyotiraditya M. Scindia (@JM_Scindia) August 10, 2022
"The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future" posted Jyotiraditya Scindia.