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Tuesday, July 5, 2022

Airfare Price Band: Government may soon take a decision on ending the price band of domestic airfare!

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Airfare Price Band Review Likely: Once again, the right to decide the domestic airfare may come in the hands of the airlines. It is believed that by the end of this month, the government can take a final decision to continue the price band of airfares. In fact, many airlines troubled by expensive ATF have demanded the central government to abolish the rule of lower limit and upper limit of domestic airfares.

The government fixed the price band during the Corona period
When the lockdown was imposed in March 2020 due to the Corona epidemic, air travel was banned. After the relaxation of the lockdown, when domestic air travel started from May 25, 2020, the government fixed the minimum and maximum airfare limits by imposing restrictions on airfares. So that airlines cannot charge arbitrary fares from air travelers. So due to less mutual competition, airlines should not suffer due to low airfare.

Airlines upset due to expensive ATF
But in the last one year, there has been a jump of 120 percent in air fuel. 40 percent of the cost of airlines is spent on air fuel. After which the airlines want to increase the airfare, but the government’s price band rule is becoming an obstacle in the way of the airlines. Airlines want the government to allow the government to increase the upper band of airfares, so that airlines can meet the rising cost of expensive air fuel.

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