Attention! Domestic airfares' lower limit hiked 5%, govt extends cap on 80% capacity

The government has finally decided to alter the fares of domestic flights by 5% and this is the second hike in rates of domestic flights within a month. The move is intended towards the betterment of aviation which is in mess due to the pandemic.

"There has been a continuous rise in the price of ATF so it has been decided to increase the lower fare band by 5% keeping the upper fare band unchanged. We may open the sector for 100% operations when daily passenger traffic crosses 3.5 lakhs on 3 occasions in a month,” Union Civil Aviation Minister Hardeep Singh Puri said in a tweet.

Besides this, the government also announced that airlines will have to limit their capacity of 80% of pre-Covid times till April. 

This is aimed at increasing the number of passengers as the number of air passengers has starkly come down in the last few days due to coronavirus-related restrictions and impositions.

"Last few days have seen a decline in the number of air passengers largely due to restrictions and imposition of compulsory RT-PCR test by various states. Due to this, we have decided to retain the permissible limit to 80% of schedule," Puri said in another tweet.

Currently, the airlines are permitted to operate not more than 80% of their per-COVID domestic flights.

"Last few days have seen a decline in the number of air passengers largely due to restrictions & imposition of compulsory RT-PCR test by various states. Due to this, we have decided to retain the permissible limit to 80% of the schedule," Puri added.

The government had taken the decision to impose lower and upper limits on airfares while resuming domestic services in May last year in order to ensure that the financially-hit airlines are able to survive as well as passengers are not charged exorbitantly.

The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries in view of the coronavirus pandemic. All Indian carriers last year took cost-cutting measures like pay cuts, leave without pay, and firing of employees.

Scheduled international passenger traffic continues to remain suspended in India since March 23, 2020, due to the coronavirus pandemic. However, special international flights have been operating since July 2020 under air bubble arrangements formed with various countries.