Government announces 30 percent fare hike in air travel

The central government on February 11, 2021 announced an increase in fares for air travel by up to Rs 5,600. 

The government stated that the fare hike was necessitated due to the opening of the aviation market. The order of the Ministry of Civil Aviation (MoCA) stated that it is a routine change.

According to aviation experts, the price has been increased due to increase in fuel prices.

Key Highlights

•The upper price band on 180-210 minute flights will be increased by about 30 percent from Rs 18,600 to Rs 24,200, which is an increase of Rs 5,600. 

•The minimum price band for the shortest route will be increased by 10 percent, an increase of Rs 200.

•The Aviation Ministry has also announced a new fare band and an updated fare for domestic travel from Rs 2,000 and Rs 6,000 to a minimum of Rs 2,200 and a maximum of Rs 7,800 respectively. 

•In the highest fare band, the minimum and maximum fares have been increased from Rs 6,500 and Rs 18,600 to Rs 7,200 and Rs 24,200 respectively. 

•The government had imposed a fixed cap for air travel during the peak of the COVID-19 pandemic but has now removed it as the market slowly opened up.

Background 

All scheduled commercial passenger flights were suspended in India on March 25 after the government announced a strict national lockdown to contain the spread of the coronavirus.

The domestic flight operations were allowed to resume across the country from May 25, 2021.