Domestic Airfare: From September 1, 2022, the airlines will now decide the fare for domestic air travel on their own. After 27 months, the government has handed over the authority to fix air fares to airlines. However, according to the rules, airlines have been required to declare the fare and fare of all classes on their website. It is believed that where airfare war can start on some routes. At the same time, on the routes on which the airlines have a monopoly, an increase in air fares can be seen on those routes.
The festival of Durga Puja is starting in the last week of September. So in October there is festival of Diwali and Chhath. Due to these festivals, the demand increases. Then the rent increases due to less supply. In such a situation, airfare can be expensive during the festive season to the upcoming holiday season.
There are two aspects to this decision of the government. First, it is believed that airlines will now decide the airfare, so airfare can be expensive. Because air fuel prices have doubled since the government decided to regulate airfare two years ago. Any airline has to spend 60 percent of its earnings on air fuel. In such a situation, airlines can put the burden of expensive ATF on the passengers.
At the same time, the flight of Akasa Air, supported by Rakesh Jhunjhunwala, has started from August 7, 2022. So soon once again Jet Airvet with new promoters is going to start its flight. It is believed that the routes on which Akasa Air has started flying. Competition has increased on those routes. In such a situation, airlines can offer cheap air travel to woo passengers. But the airlines having a monopoly on any routes can see an increase in airfare on those routes.
When the Corona epidemic knocked in the country and the lockdown was imposed, domestic and international flights also stopped. When flight services started from 25 May 2020, the government decided to regulate air fares. The government had started fixing the upper and lower limits of fares for domestic flights. But now the government has decided that it will not fix the airfare limit, but from August 31, 2022, the airlines themselves will decide the airfare.
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