New Delhi: As soon as the government abolishes the obligation of a fair cap on airfares, the prices have started showing a big drop. Air travel fares, which were skyrocketing till last month, are now on the ground.
According to Moneycontrol, the government abolished the obligation of the fair cap only last week. The fair cap meant that companies could not keep the rent below the fixed limit and could not increase the rent more than the upper limit. But, after the end of its obligation, in view of the increasing competition in the market, companies are making full preparations to woo their customers. This is the reason why companies like Akasa Air, Indigo, AirAsia, GoFirst, and Vistara have made big cuts in their fares.
Akasa Air halved fares
The airline Akasa Air, which started just a month ago, has drastically cut fares on all its routes. This company is currently offering air travel on the Mumbai-Bangalore route for Rs 2,000-2,200, whereas last month the fare on this route was Rs 3,948 per person. Similarly, the Mumbai-Ahmedabad fare was 5,008 till last month, which has now come down to Rs 1,400. The country’s largest airline IndiGo has also cut all its fares on Akasa Air routes, while Go-First is also slashing fares on these routes.
Delhi-Lucknow fare reduced by 50%
While airlines were charging Rs 3,500-4,000 from Delhi to Lucknow till last month, it has now come down to Rs 1,900 to Rs 2,200. The cheapest fares on this route are from Air Asia and Indigo. Similarly, the airfare between Kochi and Bangalore has come down from Rs 1,100 to Rs 1,300. Go-First, IndiGo, and AirAsia are charging the lowest fares on this route.
The airfare on the Mumbai-Jaipur route was Rs 5,000 to Rs 5,500 till a few days ago, which has now come down to Rs 3,900. Experts in the aviation sector say that the reduction in fares is a result of increased competition in the market. All airlines are cutting their fares, indicating the rapid growth of the sector. This will increase demand and help the aviation industry battle the Corona epidemic.
