The union civil aviation ministry is mulling an extension of the cap on airfares beyond November 24 but a final decision on the matter is yet to be taken, officials told CNBC-TV18.
This comes at a time when mixed feedback has been received from airlines on the matter of fare cap extension.
“Some airlines want the fare cap to be done away with as soon as possible while some are comfortable with the fare cap for now,” an official said.
On July 24, the Directorate General of Civil Aviation extended the cap on fares for domestic flights until November 24 from August 24 earlier.
Currently, domestic airlines are allowed to use 60 percent capacity. However, this limit has not been fully utilised till now on account of the slow pace of growth in air traffic.
As of October 25, the average passenger load factor for domestic flights was less than 60 percent with 1,589 departures and 1,60,418 passengers.
Domestic civil aviation resumed with capped fares from May 25 after a two-month shutdown due to COVID-19. The civil aviation ministry imposed a cap on fares for all domestic flights depending on route km to prevent any steep decline or surge in fares due to an uncertain demand environment.”When they issued the notification it was clearly mentioned that this would last for about three months. But, once again, we have to keep a watch over the situation, and depending on how the situation turns out, the fare band may have to be adjusted beyond that also. Right now, it is for three months,” civil aviation secretary Pradeep Singh Kharola had said at a presser on June 20 when the fare cap was supposed to end on August 24.( CNBC TV )