Air fares within Indian cities are changing almost every other week as attempts by the Indian government to set a cap on rate increases add to the confusion. A flight from New Delhi to Mumbai costs up to Dh300 right now – but these are likely to plunge to Dh120 by next month.
A New Delhi to Kochi seat starts at Dh450 now, but could fall to Dh180 in September.
India’s aviation regulator has increased the minimum and maximum limits on fares. As per the update, the minimum and maximum fares for the shortest flights have been raised to Rs2,900 and Rs8,800 from Rs2,600 and Rs7,800, respectively. Fares on the longest sector have increased to Rs9,800 and Rs 27,200 from Rs 8,700 and Rs 24,200, respectively.
Indian Airlines also increased domestic passenger capacity to 72.5 per cent of pre-Covid levels from the 65 per cent earlier. The move comes at a time when daily domestic flights are increasing.
Better yields – Indian Airlines
Even then, this should offset some of the losses airlines are carrying. According to Ashwini Phadnis, a Delhi-based aviation analyst, “It remains to be seen what impact this will have on discretionary flying as the Indian market is known to push back every time air fares are raised. The key question that needs to be asked is why the government is still involved when the aviation market has been deregulated.”
Information Source: The Gulf News
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