New Delhi (NVI): Central Government has extended the cap on airlines capacity till March 31 and have increased the lower and upper limits on domestic airfares by 10 to 30 per cent.
Currently, airlines are allowed to deploy 80 per cent of their pre-Covid capacity.
Meanwhile, in order to help airlines improve their balance sheet, the government has increased the upper and lower cap on airfare by up to 30 per cent, the Directorate General of Civil Aviation (DGCA) said in a statement.
These new limits would remain in force up to March 31, 2021, or until further orders.
The government has imposed a minimum and maximum limit on fares that airlines can charge from passengers.
Now, flights that have a duration of 90 to 120 minutes will have the lower fare cap increased to Rs 3,900 from Rs 3,500.
Whereas, the cap on maximum chargeable fare has been increased to Rs 13,000 from Rs 10,000.
After a closure of almost two months due to the coronavirus-induced lockdown, domestic flights resumed on May 25, 2020. The Centre had initially allowed airlines to operate at 33 percent capacity, which was subsequently increased in a staggered manner.
-CHK
