The price of the plane ticket is set on the hike for the planned trip, vacation. New air fare rule explained
The Ministry of Civil Aviation has announced that the lower and upper limits of air fares will be in place for 15 days at all times. After the 15th day, airlines will be free to charge without any limit. As of August 12 of this year, this roll-over period was 30 days and airlines have billed without limit after the roll-over period which is the 31st day has expired.
Explaining the rule, the Ministry of Civil Aviation explained the rule change: “If the current date is September 20, the price range will be applicable until October 4. Any reservation made on September 20 for travel from October 5 will not be controlled by the price bands. ” These upper and lower air fare limits were put in place just after domestic flights resumed after the COVID-19 pandemic. This was done with the aim of boosting air traffic because right after the COVID-19 induced lockdown people were cautious and skeptical about traveling from one place to another. Lower ceilings were imposed to help who are struggling financially due to coronavirus travel restrictions. The upper caps have been imposed on exorbitant air fares that people pay during times of high demand. Now the ministry has revised the caps and increased both the upper limit and the lower limit. The ministry also specified that this ceiling would only remain applicable if tickets are reserved 15 days in advance.
This new government directive will hit people who book flights for planned trips, but emergency trips will continue to be subsidized because the cap will apply for tickets booked 15 days in advance. Also, one thing to note is that if tickets are booked within a month, there will be no price cap, meaning airlines are free to charge according to their own fare table. This implies that if the tickets are booked a month in advance, the cost of the ticket could be higher now.
Since flights have resumed operations after the lockdown restrictions were lifted, flight prices have been increased more than four times. The Ministry of Civil Aviation has raised the lower and upper caps on fares from 9.83 percent to 12.82 percent, according to an official order. As a result of this directive, the prices of emergency travel and domestic airlines are expected to increase. On May 25, 2020, India imposed lower and upper limits on air fares based on flight duration when services resumed after a two-month lockdown due to the coronavirus. The lower caps have been imposed to help airlines struggling financially due to coronavirus travel restrictions. The upper caps have been imposed so that passengers are not charged huge sums when the demand for seats is high.
In August, national airlines carried 6.7 million passengers, up from 2.8 million passengers a year ago, the Civil Aviation Authority announced on Thursday. There has been a big increase in traffic which means people are traveling and that momentum seems pretty stable. InterGlobe Aviation, which operates India’s largest airline, IndiGo, extended its earnings to a fourth session and hit a record high of Rs 2,168.80 on Friday, while shares of SpiceJet rose 7.9% to Rs 81.9, their highest level in two months.
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