Airfare Hike: Domestic airfares hiked up to 30%; capacity capped at 80% till March-end | India Business News – Times of India

NEW DELHI: Flying within the country will cost up to 30% more from now. The government has increased the minimum and maximum fares set for different routes, while extending its earlier decision of allowing airlines to deploy upto 80% of their pre-Covid domestic capacity till March 31, 2021. While minimum fare has been increased by 10%, maximum fares are up by 30%.
Airfare range for flying between Delhi and Mumbai, for instance, will now be Rs 3,900-13,000, instead of Rs 3,500-10,000 earlier. These are economy one-way fares that do not include user development fee of airports, passenger security fees (Rs 150 for domestic) and GST.

The aviation ministry had last May classified domestic flights into seven categories based on flying time — starting at flights below 40 minutes and going upto those with flying time of 3-3.5 hours — while allowing scheduled services to resume partially after a two-month suspension. Airlines are currently required to sell at least 20% seats at fares below the mid point of the minimum and maximum fares
The airfare band has been revised upwards now as the price of jet fuel has risen significantly since last May when the fares were set. The new fare bands, which the government has indicated are likely to remain in force till domestic flights return to pre-Covid level this summer, are:

1) Flights with duration of upto 40 minutes: Old price band was Rs 2,000-6,000. New airfare range is Rs 2,200-7,800. Includes sectors like: Delhi-Chandigarh. Goa-Mumbai. Mangalore-Bangalore. Srinagar-Jammu.
2) Flights with duration of 40 to 60 minutes: Old price band was Rs 2,500-7,500. New airfare range is Rs 2,800-9,800. Includes sectors like: Ahmedabad-Bhopal. Leh-Delhi. Hydeabad-Mumbai. Delhi-Srinagar.
3) Flights with duration of 60 to 90 minutes: Old price band was Rs 3,000-9,000. New airfare range is Rs 3,300-11,700. Includes sectors like: Bangalore-Mumbai. Kolkata-Lucknow. Patna-Delhi. Chennai-Kolkata.
4) Flights with duration of 90 to 120 minutes: Old price band was Rs 3,500-10,000. New airfare range is Rs 3,900-13,000. Includes sectors like: Delhi-Mumbai. Chennai-Mumbai. Port Blair-Chennai. Jaipur-Varanasi.
5) Flights with duration of 120 to150 minutes: Old price band was Rs 4,500-13,000. New airfare range is Rs 5,000-16,900. Includes sectors like: Delhi-Bangalore. Guwahati-Delhi. Jaipur-Bangalore. Goa-Delhi.
6) Flights with duration of 150 to 180 minutes: Old price band was Rs 5,500-15,700. New airfare range is Rs 6,100-20,400. Includes sectors like: Delhi-Kochi. Mumbai-Guwahati. Mumbai-Srinagar. Chennai-Guwahati.
7) Flights with duration of 180 to 210 minutes: Old price band was Rs 6,500-18,600. New airfare range is Rs 7,200-24,200. Includes sectors like: Coimbatore-Delhi. Delhi-Thiruvananthapuram. Delhi-Port Blair
Meanwhile, aviation authorities had sought suggestions from airlines on extending the allowed capacity to beyond 80% and it is learnt that IndiGo, Vistara and Air India were those who supported doing so while others like SpiceJet favoured a more gradual opening up.
Scheduled domestic flights were suspended on March 25, 2020, and were allowed to resume at one-third of pre-Covid level from May 25. Since then the government has been gradually increasing an increased capacity to ensure that airlines and airports are able to follow all Covid protocol of social distancing and enhanced hygiene. On December 3, 2020, it had allowed airlines to operate upto 80% of their pre-Covid domestic flights, up from 70% at that time.
In recent days aviation authorities sought airlines’ views on enhancing this further.
Aviation minister H S Puri had said in Parliament Wednesday: “We are now confronted with an interesting situation. On the one hand, some of carriers want us to open full capacity, 100%, whereas others would like to go slow.” He had added that the decision to allow beyond 80% capacity will depend on the behaviour of the virus and “our sense” of comfort that all the required Covid protocol is being followed.
Similarly, the domestic airfare band, that fixes the minimum and maximum fares that can be charged for different routes, are likely to go when the summer schedule kicks in from April. Puri had said in Parliament Wednesday that capping airfares was an “extraordinary measure” which may be done away with once domestic flights each pre-Covid levels.
“It is not our intention… It also cannot be in an open, deregulated market situation to have fare bands (as) a permanent feature. So, it is our expectation that when flights open up to pre-Covid levels in this summer schedule, we would not have the need for a price band,” he had said.
While winter schedule is from last Sunday of October to last Saturday of March, summer schedule is from last Sunday of March to last Saturday of October.
Watch Airfare hike: Flying within the country to cost up to 30% more

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