Air Fare Cap Rule: Center changes airfare cap rules, gives more freedom for pricing

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Air Fare Cap Rule: Center changes airfare cap rules, gives more freedom for pricing
Air Fare Cap Rule: Center changes airfare cap rules, gives more freedom for pricing

Air Fare Cap Rule: The Center has changed the airfare cap rules. Which will give more freedom for pricing.

Air Fare Cap Rule: In order to give more flexibility to airlines in pricing, the Center has changed the airfare cap rules. According to the Ministry of Civil Aviation, the fare band will now be applicable only for a 15-day cycle. The ministry, in an order issued on Saturday, specifically said that if the date of implementation of the fare limit starts from September 20, then the fare band will remain in force till October 4.



However, for travel on or after October 5, any booking made on September 20 will not be covered under the fare band.

The ministry said, “The next day, i.e., if the current date is 21st September, the fare band will be applicable till 5th October, and for travel on or after 6th October, the fare bands will not be applicable. Hence, fare bands will be applicable. Shift every day to one day.”





Further, the existing fare limit will be applicable for 15 days with immediate effect.

The minimum and maximum fare chargeable will continue to be rolled over for a cycle of 15 days or till further orders, whichever is earlier.




These fare bands came into effect from May 21, 2020. Under the fare structure, the air routes are divided into seven segments on the basis of travel time. Each section has its own minimum and maximum fare.