Air travel to get expensive as govt hikes airfares’ lower limit by 5 per cent

Civil Aviation Minister Hardeep Singh Puri informed that there has been a continuous rise in the price of aviation turbine fuel so it has been decided to increase the lower fare band by 5 per cent keeping the upper fare band unchanged.

New Delhi: Air travel will now become a little expensive as the government has decided to increase the lower limit on airfares by five per cent amid rising aviation turbine fuel (ATF) prices, Civil Aviation Minister Hardeep Singh Puri on Friday.

The upper limit on airfares will remain as it is for now. Just a month back, the Centre had increased the lower and upper limits on domestic airfares by 10-30 per cent due to rising ATF prices.

Read:|Airlines allowed to deploy up to 80% capacity in domestic sector

While announcing the resumption of scheduled domestic flights in May last year, the Aviation Ministry had placed limits on airfares through seven bands classified based on flight duration.

The first band consists of flights having less than a 40-minute duration and its lower limit has been increased to Rs 2,310 on Friday. The lower limit for the highest band of flights having a duration of 180-210 minutes was further hiked to Rs 7,560.

"We may open the sector for 100% operations when daily passenger traffic crosses 3.5 lakhs on 3 occasions in a month," Puri tweeted.

Currently, the airlines are permitted to operate not more than 80 per cent of their per-COVID domestic flights.

Read:|Number of passengers flying in single day rises to 1,68,860

"Last few days have seen a decline in the number of air passengers largely due to restrictions & imposition of compulsory RT-PCR test by various states. Due to this, we have decided to retain the permissible limit to, 80% of the schedule," Puri added.

The government had decided to impose lower and upper limits on airfares while resuming domestic services in May last year to ensure that the financially-hit airlines can survive as well as passengers are not charged exorbitantly.

The aviation sector has been significantly impacted due to the travel restrictions imposed in India and other countries given the coronavirus pandemic. All Indian carriers last year took cost-cutting measures like pay cuts, leave without pay and firing of employees.

Scheduled international passenger traffic continues to remain suspended in India since March 23, 2020, due to the coronavirus pandemic. However, special international flights have been operating since July 2020 under air bubble arrangements formed with various countries.

PTI

Read:|AAI will continue receiving revenue share post its stake sale in Delhi, Mumbai airports: Puri