CURRENT AFFAIRS

Detailed explanation-1: -According to lower and upper limits on domestic airfares, airlines can’t charge a passenger less than Rs 2, 900 (excluding GST) and more than Rs 8, 800 for domestic flights of less than 40 minutes.

Detailed explanation-2: -The Indian government has removed price caps on domestic airfares with effect from August 31, 2022 after a span of approximately 27 months. Airlines can now set the fares as they please now that there aren’t any pricing caps in place.

Detailed explanation-3: -What does the cap removal mean for airlines? Airlines will now have the freedom to set fares, increasing them when demand is high and offering discounts when seats are going empty. Analysts said the removal of limits has been a positive so far.

Detailed explanation-4: -Limits imposed on domestic airfares will be removed from August 31, after a span of approximately 27 months, the Union Aviation Ministry said on Wednesday. “The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF).

Detailed explanation-5: -“Airfares in 2022 were higher by 20-30% due to a rise in oil prices leading to a shift in preference for modes of transport for travellers from air to both trains and buses.