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    Centre likely to remove caps on airfares, flight operations: Report

    Centre likely to remove caps on airfares, flight operations: Report

    Centre likely to remove caps on airfares, flight operations: Report
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    By CNBCTV18.com  IST (Updated)

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    The possibility of removing the existing caps on the number of flights and the minimum and maximum fares that airlines can charge in the domestic sector was discussed in a high-level meeting.

    Aviation minister Jyotiraditya Scindia Monday held a meeting with top airline executives to discuss the possibility of removing the existing caps on the number of flights and the minimum and maximum fares that airlines can charge in the domestic sector.
    While no decision was taken in the meeting, the possibilities of both relaxing or abolishing the caps were discussed, according to a report by The Economic Times.
    While the lower caps were put to help the airlines reeling under financial losses due to COVID-19 travel restrictions, the upper caps were imposed to ease the burden on passengers. Additionally, a cap was put on flight operations in an effort to contain the spread of the pandemic.
    The development comes nearly two weeks after the Civil Aviation Ministry issued an official order to raise the lower and upper caps on domestic fares. According to the order, dated August 12, the lower limit for flights under 40 minutes of duration was increased from Rs 2,600 to Rs 2,900, a hike of 11.53%. The Centre also raised the upper cap for flights under 40 minutes of duration by 12.82 percent to Rs 8,800.
    The lower cap for flights with a duration between 40-60 minutes was raised from Rs 3,300 to Rs 3,700. Similarly, the upper cap on such flights was increased by 12.24 percent to Rs 11,000.
    The order added that the upper caps on domestic flights of duration between 90-120, 120-150, 150-180, and 180-210 minutes were increased by 12.3 percent, 12.42 percent, 12.74 percent, and 12.39 percent, respectively.
    Also, the lower cap for domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes were raised to Rs 5,300, Rs 6,700, Rs 8,300, and Rs 9,800, respectively.
    Meanwhile, in a good sign for the aviation sector, the domestic passenger traffic has been reaching pre-COVID levels. On August 1, the domestic passenger traffic crossed the 2 lakh mark, according to the Ministry of Civil Aviation website.
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