Delhi: The government has decided to remove the temporary limit imposed on domestic air fares from March 23. In December last year, keeping in mind the problems faced in IndiGo operations, the maximum limit on domestic airfares was fixed. According to an order issued by the Civil Aviation Ministry, the cap on air fares will be removed from March 23. The order comes at a time when domestic airlines are grappling with rising costs and disruptions amid the ongoing war in West Asia.
What did the ministry say in its order
“Airline companies shall ensure that fares remain fair, transparent and in line with market conditions and do not adversely affect the interests of passengers,” the ministry said in its order. The ministry also stressed that any case of excessive or unreasonable increase in fares and disruption will be viewed seriously. The ministry is monitoring the airfares on real-time basis.
The limit was imposed amid Indigo crisis
The Civil Aviation Ministry had imposed restrictions on air fares in December after IndiGo canceled a large number of flights and other companies increased the fares. The government at that time fixed ticket prices based on distance, with an upper limit of Rs 18,000 for a one-way journey. Although the Indigo crisis ended after a few days, these fare restrictions were not lifted.
Airline companies are struggling with financial pressure
Indian airline companies had recently warned the government about increasing financial pressure. The companies had said that these fare restrictions could no longer be sustained amid rising fuel prices and operational disruptions. The Federation of Indian Airlines, representing IndiGo, Air India and SpiceJet, had warned that if these restrictions continue, the airline companies may have to close some of their routes. Not only this, companies may also have to delay the expansion of their fleet and network.
Expenses of airline companies increased
This industry organization said that airline companies were under pressure even before the conflict started in West Asia. He cited the restrictions imposed by Pakistan on its air space, which have resulted in longer routes for international flights, increasing both fuel consumption and costs.
Federation of Indian Airlines had said in its letter, “If the current situation continues like this, the airline companies will have to suffer huge financial losses. This will put many companies in such a financial situation, which will be difficult to handle and their existence may also be in danger.”
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