DGCA removes price cap on airfares

Story by  ATV | Posted by  Nakul Shivani | Date 10-08-2022
DGCA has removed fare caps
DGCA has removed fare caps

 

New Delhi

Aviation regulator Directorate General of Civil Aviation (DGCA) on Wednesday announced the removal of lower and upper limits on airfare in the country.

"After review of the current status of scheduled domestic operations viz-a-viz passenger demand for air travel, it has been decided to remove the fare bands notified from time to time regarding airfare with effect from 31.08.2022," said the Ministry of Civil Aviation.

The ministry had imposed lower and upper limits on airfare after the resumption of services in May, 2020 following the two-month nationwide lockdown to contain the spread of Covid-19.

Thereafter, the limits were relaxed in a phased manner as per the improvement in air traffic in the country.

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The lower caps were meant as a relief for airlines struggling after the pandemic. At the same time, the upper caps on airfare were fixed ensuring that passengers do not have to pay a hefty amount for air travel.