India okays air fare hike, no foreign visitors yet |
India on 11th February 2021 extended the suspension on scheduled commercial international flights till February 28, 2021, in view of the coronavirus pandemic. The restriction shall not apply to international all-cargo operations and flights specifically approved by DGCA. The government also raised fare caps for airlines by as much as 30% to offset rising fuel prices but extended the curbs on setting fares till 31st March amid tepid travel demand. India`s Civil Aviation Ministry said that the passenger fares will now rise between 10% and 30% effective 11th February 2021, depending on the duration of the flight. While raising fare caps will provide some relief to airlines, it may not be enough to fully compensate for the increase in airlines` fuel costs, which have nearly doubled since the cap was put in place in May 2020. Airlines have been demanding that restrictions on setting fares be lifted. The caps were introduced to prevent price gouging by airlines during a crisis, while also preventing them from undercutting each other amid a slump in travel demand. The government has maintained that the price caps are temporary. The price bands on domestic flights are expected to be discontinued as soon as flight services reach pre-Covid levels in the country. Indian airlines are now allowed to operate up to 80% of their pre-CCvid capacity. Most airlines are, however, operating at a much lower capacity as passenger demand is significantly lower than pre-Covid levels.
|
|
|
|
|
