New Delhi: The central government has changed its previous order issued regarding the airfare. In fact, in May 2020, the Center set the Lower Fare Limit for economy class seats for air travel. Now the Ministry of Civil Aviation has decided to implement the Lower Fair Limit for Premium Economy Class seats as well.
This upper fair limit will not apply to premium economy class seats
The Civil Aviation Ministry said that the Upper Fare Limit set by the government for economy class seats will not be applicable to premium economy class seats. On May 21, the Ministry had set lower and upper limits on the domestic air travel fares through seven bands. These seven bands were decided on the basis of flight duration. These bands were in force till 24 August. Later, the time period was extended to 24 November. Please note that domestic air travel was resumed in the country from May 25, after the lockdown was relaxed.
Vistara Airlines has premium economy class seats in Indian companies
Vistara flights have premium economy class seats in Indian airline companies. The Ministry has made a change in the order of May 21, saying that the Lower Fair Band will be applicable to premium economy class seats. The first band out of seven airfare bands is for flights that last less than 40 minutes. The second, third, fourth band includes flights of 40–60 minutes, 60–90 minutes, 90–120 minutes and 120–150 minutes. At the same time, flight durations of 150–180 and 180–210 minutes have been kept in the sixth and seventh bands.
40% of seats must be sold for less than the amount between the Lower-Upper Fair
According to the order, these airfares do not include UDF, PSF, and GST. The ministry made it clear in May 2020 that every airline company would have to sell at least 40 percent of the seats for flights at less than the amount between the lower and upper air fair limits. In simple terms, the level between Lower Air Fair 3,500 and Upper-Air Fair is Rs 6,700 for an airline. Therefore, 40 percent of the seats will have to be sold for less than Rs 6,700.
