Owing to the improving Covid scenario in the country, the Ministry of Civil Aviation (MoCA) announced on Saturday that the passenger capacity has been increased from 72.5 percent to 85 percent. Along with this the ministry also altered the fare band rule, slashing it down to 15 days from the earlier 30 days. The shorter window for which domestic fare bands are now applicable will allow airlines to offer lower than the minimum fares, increasing the number of bookings and ringing in more cash flow, at least initially.
The domestic flight fare band is the upper and lower limits imposed on fares on the basis of flight duration, which has been applicable since the services were resumed on May 25, 2020, after a hiatus of two months due to Covid-19 pandemic-triggered nationwide lockdown.
The lower cap on fares was meant to help the airline industry which was hit the hardest due to the pandemic, and upper limits were meant to safeguard passenger interests so that they are not charged exorbitantly by air carriers whenever the demand is high.
The Civil Aviation Ministry explained the rule change: “If the current date is 20th September, then the fare band shall be applicable till 4th October. Any booking done on 20th September for travel on or after 5th October shall not be controlled by fare bands. On the following day, that is, if the current date is 21st September, then the fare band shall be in force till 5th October and for travel on or after 6th October, the fare bands shall not be applicable.”
It is to be noted that the lower and upper limits were hiked by 9.83% and 12.82% and the limits on airfares were made applicable for 30 days before the travel date on August 12.
With the new 15-day fare band, emergency air travel will continue to be subsidised as the cap will apply to tickets being booked 15 days in advance. But if tickets are booked before then, for suppose like a month, which is mostly the case for planned trips, there will be no price cap, which means the airlines are free to fix their own fare chart. How long this fare band is going to remain applicable is not yet known. It is expected that the fair bands won’t be taken down until airplanes resume operating with 100% passenger capacity.
With 85% allowed passenger capacity, this is the highest ever since the implication of the lockdown. Prior to the severe second wave, the passenger capacity was capped at 80%. Senior airline industry officials expect a cent percent passenger capacity allowance when the winter schedule gets effective at the end of next month.