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What happened
The Ministry of Civil Aviation in India has introduced fare caps on air tickets due to significant price increases linked to disruptions in IndiGo flights. The new fare limits range from Rs 7,500 for flights up to 500 kilometers to Rs 18,000 for flights exceeding 1,500 kilometers. These caps are specifically for economy class tickets and do not apply to business class or UDAN flights. The fare structure aims to provide relief to passengers facing high ticket prices during this period of disruption. However, the order lacks clarity on whether it includes both economy and premium economy class tickets. This regulatory move is significant as it seeks to stabilize the aviation market amid ongoing challenges.
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Key insights
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1
Fare Caps Introduced
New fare limits range from Rs 7,500 to Rs 18,000 based on flight distance.
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2
Exemptions Noted
Business class and UDAN flights are not subject to these fare caps.
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3
Passenger Relief
The caps aim to alleviate high ticket prices for economy class travelers.
Takeaways
The government's intervention through fare caps is a crucial step to manage air travel costs amid disruptions, ensuring affordability for passengers.