Centre tweaks airfare cap rules, gives more pricing freedom

To give more pricing flexibility to the airlines, the Centre has tweaked the airfare cap rules.

According to the Ministry of Civil Aviation, the fare band will now only be applicable for a 15-day cycle.

Notably, the ministry in an order issued on Saturday said that if the fare cap applicability date starts from September 20, the fare bands shall be applicable till October 4.

However, any booking done on September 20 for travel on or after October 5 shall not come under the fare bands.

“On the following day, i.e., if the current date is September 21, the fare bands shall be in force till October 5, and for travel on or after October 6, the fare bands shall not be applicable. So, the fare bands will shift by a day every day,” the ministry said.

Besides, the current fare cap shall be further applicable up to 15 days with immediate effect.

The minimum and maximum fare chargeable shall continue to be rolled over for the 15-day cycle or until further orders, whichever is earlier.

These fare bands came into force with effect from May 21, 2020. Under the fare structure, air routes are divided into seven sections based on travel time.

Each section has its minimum and maximum fares.