A close look at air fare disclosed that a ticket from Mumbai to Ahmedabad is costing Rs 1,399 on Go First and Rs 1,497 on new entrant Akasa Air for a journey on September 9. IndiGo, the largest domestic airline, is offering ticket on the same route for Rs 1,609.
SpiceJet and IndiGo stocks take off as a 2-hour flight could now cost up to ₹13,000
SpiceJet and IndiGo stocks take off as a 2-hour flight could now cost up to ₹13,000
Navdeep YadavFeb 12, 2021, 10:09 IST
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The India government removed the COVID cap on airfares allowing a rise between 10% and 30%, depending on the duration.
The investors cheered the fare cap revision as IndiGo and SpiceJet s stocks jumped nearly 3% and 5%, respectively, on Friday (February 12).
The fuel prices that account for nearly 70% of the airlines cost crossed the $60 per barrel mark earlier this week, adding to the airlines operator s woes.In a big relief to bleeding airlines, the government on Thursday eased caps on airfares. The Indian air regulator extended the curbs on setting fares till March 31 but said the airlines could charge as much as 30% more of the earlier limit.
Flight ticket prices set to rise as govt increases cap on air fare by up to 30%
Airlines will need to sell 20% seats below midpoint of the fare band on each flight.
(MINT PRINT)
The ministry extended the cap on airfare till 31 March
In the wake of coronavirus outbreak, the aviation ministry implemented a restriction on domestic airfare in May, 2020
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The flight tickets in India is set to rise as civil aviation ministry on Thursday has increased the lower and upper limits on domestic airfares by 10 to 30%. The ministry extended the cap on airfare till 31 March. In the wake of coronavirus outbreak, the aviation ministry implemented a restriction on domestic airfare in May, 2020. The domestic flights in India have a cap on fares with both an upper and lower limit.
Price bands in airfares to be discontinued with flight services reaching pre-COVID level: Puri
Puri further said the floor and the ceiling price on airfares was an extraordinary measure which was necessitated by an extraordinary situation. PTI February 10, 2021 / 06:26 PM IST
Emphasising that capping of airfares was an extraordinary measure , Union Minister Hardeep Singh Puri on Wednesday said the price bands are expected to be done away with once flight services reach pre-COVID-19 levels.
Replying to questions in the Rajya Sabha, the minister said the civil aviation sector was completely closed down on March 23, 2020, and was reopened on May 25 in a slow and calibrated manner by putting in place SOPs, provisions for seamless contactless travel and a large number of other measures.