The government has extended domestic fare bands — while hiking the lower fares by 5% — till April-end.
This is the second hike in domestic airfare range in just over a month, necessitated by the sharp rise in jet fuel prices.
Moreover, airlines will have to limit their domestic capacity at 80% of pre-Covid times till April-end.
"Domestic traffic has dipped slightly in March (possibly due to rising Covid numbers and testing requirements by different states). Hence it has been decided to extend both the 80% capacity cap and the fare bands by a month till April-end. However, due to rising cost of jet fuel, lower fare band has been hiked by 5%. This time we have not changed the upper fare band," said a senior aviation ministry official.
He added the ministry is "reviewing the situation constantly and will take decisions as things unfold."
Aviation minister Hardeep Singh Puri tweeted on Friday: "There has been a continuous rise in price of ATF so it has been decided to increase the lower fare band by 5% keeping the upper fare band unchanged."
About extending domestic capacity to 80% of pre-Covid levels by a month, he said: "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 ... We may open the sector for 100% operations when daily passenger traffic crosses 3.5 lakhs on three occasions in a month."
Had Covid numbers not spiralled, the government had planned to remove fare bands and capacity constraints for scheduled domestic flights from the summer schedule that comes into force this month-end.
On February 11, 2021, the ministry had hiked domestic fare bands set last May when scheduled flights were allowed to resume partially. Aviation turbine fuel (ATF) prices have risen manifold since May level.
Since February 11, the minimum fares have been increased by 10% and maximum are up 30%.
Airfare range for flying between Delhi and Mumbai, for instance, will now be Rs 4,100-13,000, instead of Rs 3,500-10,000 set last May.
These are economy one-way fares that do not include user fee of airports, passenger security fees (Rs 150 for domestic) and GST.
The aviation ministry had last May classified domestic flights into seven categories based on flying time — starting at flights below 40 minutes and going up to those with flying time of 3-3.5 hours. It had set their fare range while allowing scheduled services to resume partially after a two-month suspension.
Airlines are currently required to sell at least 20% of seats at fares below the mid-point of the minimum and maximum fares.
This is the second hike in domestic airfare range in just over a month, necessitated by the sharp rise in jet fuel prices.
Moreover, airlines will have to limit their domestic capacity at 80% of pre-Covid times till April-end.
"Domestic traffic has dipped slightly in March (possibly due to rising Covid numbers and testing requirements by different states). Hence it has been decided to extend both the 80% capacity cap and the fare bands by a month till April-end. However, due to rising cost of jet fuel, lower fare band has been hiked by 5%. This time we have not changed the upper fare band," said a senior aviation ministry official.
He added the ministry is "reviewing the situation constantly and will take decisions as things unfold."
There has been a continuous rise in price of ATF so it has been decided to increase the lower fare band by 5% keepi… https://t.co/oF66f7iy9N
— Hardeep Singh Puri (@HardeepSPuri) 1616159900000Aviation minister Hardeep Singh Puri tweeted on Friday: "There has been a continuous rise in price of ATF so it has been decided to increase the lower fare band by 5% keeping the upper fare band unchanged."
About extending domestic capacity to 80% of pre-Covid levels by a month, he said: "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 ... We may open the sector for 100% operations when daily passenger traffic crosses 3.5 lakhs on three occasions in a month."
Had Covid numbers not spiralled, the government had planned to remove fare bands and capacity constraints for scheduled domestic flights from the summer schedule that comes into force this month-end.
On February 11, 2021, the ministry had hiked domestic fare bands set last May when scheduled flights were allowed to resume partially. Aviation turbine fuel (ATF) prices have risen manifold since May level.
Since February 11, the minimum fares have been increased by 10% and maximum are up 30%.
Airfare range for flying between Delhi and Mumbai, for instance, will now be Rs 4,100-13,000, instead of Rs 3,500-10,000 set last May.
These are economy one-way fares that do not include user fee of airports, passenger security fees (Rs 150 for domestic) and GST.
The aviation ministry had last May classified domestic flights into seven categories based on flying time — starting at flights below 40 minutes and going up to those with flying time of 3-3.5 hours. It had set their fare range while allowing scheduled services to resume partially after a two-month suspension.
Airlines are currently required to sell at least 20% of seats at fares below the mid-point of the minimum and maximum fares.
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