New Delhi, May 11
Minister for Civil Aviation Jyotiraditya Scindia today claimed that the existing cap on airfare had been devised to protect travellers as well as airlines. He also indicated that doing away with the existing price cap could be looked at once the environment stabilises in terms of passenger traffic and the prices of Aviation Turbine Fuel (ATF).
It is to be noted here that according to the data made available by the Ministry of Civil Aviation (MoCA), the domestic air passenger traffic appeared to have almost touched to the level of pre-Covid period and has been crossing the 4 lakh-mark on some days in recent times.
However, the prices of ATF are at a high level and many states have reduced the taxes levied on the fuel. Scindia said, “Fare capping, which is done on a rolling basis, protects passengers from being charged exorbitant fares.”
At present, fare capping is applicable on a rolling basis for a 15-day cycle and the situation is monitored by the civil aviation ministry.
Emphasising that the civil aviation space is on the path of stabilisation after being impacted by the Covid-19 pandemic, Scindia said it could be considered fine once the passenger traffic was stable for a quarter and the Aviation Turbine Fuel price comes down. He asserted that his role was to be a facilitator and also ensure that entities play by the rules.
ATF prices still very high
I feel that ATF prices are still very high. I want to protect the passengers and also the airlines... I have to ensure that the environment is stable and I need multiple airlines to proliferate in my country. Jyotiraditya Scindia, civil aviation minister
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