Cap on domestic airfare extended till 31 March, but with rules tweaked



India has extended the cap on domestic airfares till March 31.


However, government has made a little tweak to the rules. Airlines will need to sell 20 per cent seats below midpoint of the fare band on each flight instead of 40 per cent as mandated earlier.



Many airlines have opposed the system of government regulating air fare, saying that it impacts their flexibility of offering ticket prices in order to increase passenger occupancy when already air travel is under pressure.


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In the wake of outbreak, the aviation ministry implemented a cap on till 24 November. India started operating domestic flights after a gap of two months in the last week of May. The domestic flights in India have a cap on fares with both an upper and lower limit.


Flights between cities that are under 40 minutes have been classified under section one, while those under 40-60 minutes are under section two. Section three consists of destinations 60-90 minutes apart by flight, section four comprises cities 90-120 minutes apart, section five consists of cities 120-150 minutes apart. Destinations between 150-180 minutes and 180-210 minutes have been classified under sections 6 and 7, respectively.

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