The limit imposed on domestic airfares will be removed from August 31 after a gap of about 27 months. The Union Aviation Ministry gave this information on Wednesday. Shares of Indian domestic airlines rose on Thursday after the government’s decision. Domestic airlines IndiGo, SpiceJet Ltd., Air India, GoFirst and Vistara now freely book tickets under a joint venture between the Tata Group and Singapore Airlines. can decide.
according to Reuters Shares of top airline IndiGo’s parent company InterGlobe Aviation Ltd rose 2.3 per cent to Rs 2,084.6 per share, while its rival SpiceJet Ltd jumped 7 per cent to Rs 47.9 per share.
It is to be known that after the relaxation of restrictions on air travel after the Corona epidemic, the government had imposed a minimum and maximum band on ticket prices depending on the duration of the flight to prevent an unexpected increase in ticket prices. But now it has been removed.
The number of air travel is expected to increase from the upcoming festive season. Passenger numbers are already touching pre-COVID levels. At the same time, competition in the Indian aviation sector is expected to intensify with the launch of Akasa Air and the revival of Jet Airways. Rising fuel prices still remain a problem.
Significantly, Aviation Minister Jyotiraditya Scindia tweeted, “The decision to remove the airfares has been taken after careful analysis of daily demand and prices of Aircraft Fuel (ATF). Stability is starting to come and we are confident that the region is poised for increased domestic traffic in the near future.
The Aviation Ministry said in an order on Wednesday that after reviewing the current status of domestic operations, it has been decided to do away with the fare cap with effect from August 31, 2022. ATF prices have come down over the past few weeks after reaching record levels due to the Russo-Ukraine war.
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