Through an official order, the Ministry of Civil Aviation has raised the lower as well as upper caps on domestic fares by 9.83% to 12.82%. The Civil Aviation Ministry in order on 12 August increased the lower limit for flight under 40 minutes of duration from Rs 2,600 to Rs 2,900 an increase of 11.53%. It has increased the upper cap for flight under 40 minutes of duration was increased by 12.82% to Rs 8,800.
The government had first imposed the lower and upper limits on 25 May last year after the resumption of flight post-two-month nationwide lockdown due to Covid-19.
The lower caps were imposed to help the airlines that have been struggling financially due to coronavirus-related travel restrictions. The upper caps were imposed so that passengers are not charged huge amounts when the demand for seats is high.
Flights with a duration between 40-60 minutes have a lower limit of Rs 3,700 instead of Rs 3,300 now, the order said. The upper cap on these flights was increased by 12.24% to Rs 11,000 on 12 August.
The flights with duration between 60-90 minutes have a lower limit of Rs 4,500 an increase of 12.5%. The upper cap on these flights was increased by 12.82% to ₹13,200 on 12 August.
Now, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes have lower caps of Rs 5,300, Rs 6,700, Rs 8,300 and Rs 9,800, respectively, as per the ministry’s order.
Till date, domestic flight of duration between 90-120, 120-150, 150-180 and 180-210 minutes had the lower limits of Rs 4,700, Rs 6,100, Rs 7,400 and Rs 8,700, respectively.
The lower cap on flights between 120-150 minutes duration was increased by 9.83% to Rs 6,700, as per the new order.
On 12 August, the upper caps on domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes were increased by 12.3%, 12.42%, 12.74% and 12.39%, respectively, as per the order.
The caps mentioned by the government in its order does not include the passenger security fee, user development fee for the airports and the GST. These charges are added on top when the ticket is being booked by the passenger.
The ministry‘s order on 12 August stated that the government had taken this decision of increasing the lower limits as well as the upper limits, keeping in mind the “prevailing situation of Covid-19” in the country.