Taking a big decision on Wednesday, the Central Government has approved the removal of the Air Fare Cap imposed on domestic airlines during the Corona period.
Sharing the information, the Ministry of Civil Aviation said that the restrictions on ticket prices will be removed from August 31.
According to the Ministry of Aviation, this decision has been taken after analyzing the increasing number of air passengers and the prices of ATF.
After the outbreak of Corona in 2020, the government implemented a fare cap system for airlines. Under this, the government used to fix a band of minimum and maximum fares of airlines at an interval of 15 days. The airlines did not have the right to charge less or more ticket price than this.
After the resumption of airlines on May 25, 2020 amid the outbreak of Corona, the Ministry of Aviation had fixed the domestic airfare limit based on the duration of the flight.
Under this, airlines could not charge a passenger less than Rs 2,900 and not more than Rs 8,800 for domestic flights of less than 40 minutes.
Now that the government has decided to remove the air fare cap system, then airlines will be able to increase or decrease the price of air tickets arbitrarily. In view of the increasing competition in the airspace, it would not be wrong to say that after the removal of this air cap ban, airlines will give relief to the passengers soon.
Recently, Rakesh Jhunjhunwala of Akasa Air, who took his first flight, had said that his airline will make air travel by selling the cheapest tickets. Apart from this, Go-First Airline is also making a similar claim. Apart from these two, many companies are adopting the strategy of cheap air tickets to attract customers towards them.
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