Government caps minimum and maximum domestic air fares till August 24

src : itln.in

Government caps minimum and maximum domestic air fares till August 24

The government has elected to limit the minimum and gross domestic flight tariffs for the next three months-before midnight on August 24. Domestic airlines is permitted to take off from May 25, and would be able to fly one-third of the flights they have previously run.

“We have studied this (air fares). We have looked at corresponding rail fares. Right from the start, our objective has been that air travel should become affordable for all our citizens. I think we have set a realistic figure both in terms of lower and upper level. Affordability is one criteria; we are equally conscious of the fact that airlines operate on thin margins and that business models are based on high capital costs, and that they have costs because of aviation turbine fuel; we are trying to deal with all those things,” Hardeep Puri, Minister of State for Civil Aviation, said on Thursday.

He added that flight routes will be classified into seven sections — starting with flights of duration of less than 40 minutes in the first section, and going up to flights of 180 minutes to 210 minutes in the seventh category.

src : itln.in

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