Govt announces maximum fares that airlines can charge amid IndiGo chaos
The Indian government has taken a significant step to regulate the aviation industry, particularly in the wake of the recent chaos caused by mass flight cancellations by IndiGo. The Civil Aviation Ministry has imposed temporary fare ceilings across various routes to curb the practice of surge pricing, which has been a major concern for passengers. This move is expected to provide relief to travelers who have been facing exorbitant fares, especially during peak travel seasons.
According to the new guidelines, airlines will not be allowed to charge more than a certain maximum fare for flights of different distances. For flights covering a distance of up to 500km, airlines can charge a maximum fare of ₹7,500. This will apply to several short-haul routes, including those connecting major cities like Delhi, Mumbai, and Bengaluru to nearby destinations.
For flights with a distance between 500km and 1,000km, a maximum fare of ₹12,000 can be charged. This will cover a significant number of domestic routes, including those connecting major cities to smaller towns and cities. The fare ceiling for these routes will help prevent airlines from charging excessively high fares, which has been a common practice during peak travel seasons.
For flights covering a distance of more than 1,000km, the maximum fare that can be charged is ₹15,000 for flights between 1,000km and 1,500km, and ₹18,000 for flights above 1,500km. These fare ceilings will apply to long-haul domestic flights, as well as international flights. The move is expected to provide relief to passengers who have been facing high fares for flights to destinations like Delhi, Mumbai, and other major cities.
The decision to impose fare ceilings comes after the recent chaos caused by IndiGo’s mass flight cancellations. The airline had canceled several flights, citing technical issues and crew shortages, leaving thousands of passengers stranded. The cancellations had led to a surge in fares, with some airlines charging exorbitant prices for last-minute bookings.
The government’s move to regulate fares is expected to prevent such situations in the future. By imposing fare ceilings, the government aims to ensure that airlines do not take advantage of passengers during times of high demand. The move is also expected to promote competition among airlines, which will help keep fares in check.
The fare ceilings will be in place for a temporary period, during which the government will monitor the situation and assess the impact of the move on the aviation industry. The government may review and revise the fare ceilings based on the feedback from airlines, passengers, and other stakeholders.
The decision to impose fare ceilings has been welcomed by passenger associations and consumer groups, who have been advocating for stricter regulations to prevent surge pricing. The move is expected to provide relief to passengers who have been facing high fares, especially during peak travel seasons.
However, airlines have expressed concerns about the impact of fare ceilings on their revenue. Some airlines have argued that the fare ceilings are too low and will not allow them to cover their costs. The airlines have also expressed concerns about the impact of the move on their ability to invest in new aircraft and improve services.
Despite these concerns, the government has made it clear that the fare ceilings are necessary to protect the interests of passengers. The government has also assured airlines that the fare ceilings will be reviewed and revised based on the feedback from the industry.
In conclusion, the government’s decision to impose fare ceilings is a significant step towards regulating the aviation industry and protecting the interests of passengers. The move is expected to provide relief to passengers who have been facing exorbitant fares, especially during peak travel seasons. The fare ceilings will also promote competition among airlines, which will help keep fares in check. As the aviation industry continues to grow and evolve, the government’s move to regulate fares is a welcome step towards ensuring that the industry remains passenger-friendly.
News source: https://x.com/NDTVProfitIndia/status/1997255961241919681
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