Ministry of Civil Aviation to Remove the Airfare Bands From 31 August 2022

The Ministry of Civil Aviation on Wednesday announced that it is doing away with the fare bands for domestic airlines with effect from 31 August, 2022.

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Ministry of Civil Aviation to Remove the Airfare Caps From 31 August 2022

The ministry of civil aviation on Wednesday announced that limits imposed on domestic airfares will be removed from 31 August 2022, giving airlines the flexibility on passenger fares.

Though there won't be any major immediate impact considering the current jetfuel prices, airlines may offer discounts on new routes, domestic routes with low demand, flights with poor passenger loads. Considering the holiday season and festive mood of travellers, Airlines are already offering discounts on domestic and newly added routes to increase interest among the passengers.

Discounts from Various Airlines:

Go First Freedom Sale, AirAsia Pay Day Sale, Go First Rock Bottom Sale, Let's Sale with IndiGo, AirAsia Hi5 Sale, SpiceJet Sale, Go First Independence Day Sale, AirAsia India Independence Sale and IndiGo Freedom sale are some examples of recent discounts offered by Airlines.

Measures taken to curb COVID Impact on the Airline Industry:

After resumption of air travel, caps on capacity and fares were introduced in May 2020. Restrictions on the Airline Industry can be categorised into capacity and pricing. Restrictions imposed on the passenger count are to curb the spread of virus and Fare Caps to safeguard the health of the Aviation Industry. In October 2021, the Government allowed capacity increase to 100 per cent, but continued with the Airfare caps. Currently a cap on the fare is applicable for tickets sold in 0-15 days on a rolling basis. And now, on Wednesday, Ministry of Civil Aviation announced a change in the Airfare bands via a new order.

Tweet from Official handle of MoCA:

After a review of the current status of Scheduled Domestic Operations vis-à-vis passenger demand for air travel, it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from 31 August 2022.

The airlines/airline operators are expected to ensure strict adherence to COVID-appropriate behaviour.

We hope the announcement is a much needed one for the Aviation Industry and helps the sector to grow and revive.

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