Centre imposes airfare caps as IndiGo crisis continues with 850 cancellations
New Delhi, Dec. 7 -- The Ministry of Civil Aviation has imposed temporary fare caps on domestic flights after disruptions in the operations of IndiGo airline led to large-scale cancellations, capacity constraints, and an "unreasonable surge" in ticket prices across several sectors.
On Saturday, Indigo said it cancelled 850 flights, a day after the government provided major relaxations to the country's largest airline that cancelled at least 1,600 flights over the past four days till Friday.
According to the civil aviation ministry's order issued on Friday, airlines will not be permitted to charge passengers more than the ceiling fares specified for different stage lengths. The maximum fares notified are Rs.7,500 for routes up to 500km, Rs.12,000 for 500-1,000 km, Rs.15,000 for 1,000-1,500 km, and Rs.18,000 for routes above 1,500km. These limits are exclusive of UDF (user development fee), PSF (passenger service fee) and taxes, and do not apply to Business Class or RCS-UDAN flights.
The order, the government said, has come into immediate effect and has been issued with the approval of the competent authority. The Directorate General of Civil Aviation (DGCA) has been asked to monitor and regulate airfares on the listed sectors.
The ministry said the measures have been taken "in public interest" and will remain in force until fares stabilise or until further review. The caps will apply to all bookings, irrespective of whether they are made directly on an airline's website or through travel portals. Meanwhile, IndiGo said that it is working to restore smooth operations. P6...
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