Good News For Cash-strapped Airlines, Govt Allows Domestic Airfare Hike

Flight tickets are all set to get more expensive, as the government has lifted the price restriction on domestic flights by 9 to 12% for the second time in less than two months. In an order issued on Thursday, the Civil Aviation Ministry raised the lower limit for flights under 40 minutes in duration from 2,600 to 2,900, an increase of 11.53 percent.

The top limit for flights under 40 minutes was also raised to 8,800 yen, up 12.82 percent. Flights lasting 40-60 minutes will now have a lower limit of 3,700 bucks, up from 3,300 bucks, and a top maximum of 11,000 bucks, up 12.24 percent from Friday.

Flights lasting 60-90 minutes will have a lower limit of Rs.4,500, a 12.5 percent increase. The highest limit for these flights has been raised to Rs.13,200, up 12.82 percent. Journeys of 90-120, 120-150, 150-180, and 180-210 minutes have all been subjected to similar hikes.

On the other hand, actual ticket prices are likely to exceed the cap because they do not include passenger security, airport user development, or Goods and Services Tax. This is the fourth time this year that the cap on airfare has been raised. Ticket prices were previously been revised in February, May, and June.

In May last year, the government imposed limitations after domestic flights resumed following the two-month COVID-19 lockdown across the country. The reduced caps were enforced, according to the government, to aid airlines that have been struggling financially since the coronavirus outbreak

According to the statement, The upper limitations were implemented to ensure that passengers are not overcharged when the demand for seats is great. According to the government's order issued on Thursday, the latest revisions were made because of the "current condition of COVID-19" in the country.