Airfare Increase

As the demand for hotel rooms is high, their rates are also increasing, he said, adding that the rooms which were available at nominal rates earlier have touched anywhere between Rs 50,000 and Rs 1.25 lakh.

Airfares are set to shoot up as one of India's largest airlines IndiGo has introduced a distance-based "fuel charge" on domestic and international routes.

The triple whammy of increasing jet fuel prices, GoFirst filing for insolvency, and the seat capacity of airlines remaining low is all set to hurt the wallets of flyers again this festival season.

Senior Congress leader P Chidambaram on Sunday took a swipe at the government over rising airfares, saying that in free markets, when demand increases, supply will increase, but in India's free market, when demand increases, prices will increase.

A study conducted by Airports Council International Asia-Pacific in collaboration with Flare Aviation Consulting on airfare trends in the region found highest airfare increase was in India (41%), followed by the United Arab Emirates (34%).

The tourism sector that was hit hard by the COVID-19 pandemic for a whole year in 2020 due to lockdowns and travel restrictions is yet again facing a possible crisis. Cancellations have increased during the holiday season, say tour operators.

Flights within the country are set to become costlier as the Ministry of Civil Aviation (MoCA) has decided to raise the lower limit on domestic airfares from 13 per cent to 16 per cent, which will come into effect from June 1.

Passengers will have to spend more money for air travel from now as the Civil Aviation Ministry on Thursday increased the lower and upper limits on domestic airfares by 10 to 30 per cent.

The officials said the airlines were asked to bring an "immediate" and "medium-term" plan on the number of flights as airfares continue to rise

According to Fitch, the Indian aviation market has seen a sharp increase in airfares in the last few months due to tight supply, which has been worsened by the suspension of the 737 MAX aircraft.

A finance ministry source said taxing imported fuel is unlikely to increase prices and only two domestic airlines currently import some jet fuel.

Airports across the country are struggling to cope with a massive surge in passenger numbers and billions of rupees must be spent to boost their capacity, analysts have warned. India is witnessing a huge boom in air travel as a growing middle class increasingly takes to the skies but experts say infrastructure is failing to keep up.

Pricing deregulation has allowed competition to bring down prices dramatically in India, the government said.

This the third consecutive monthly hike in aviation turbine fuel price, the last being by 4% on September 1.

Airlines in the domestic market are witnessing growing demand amid increasing middle-class per capita income, leading the carriers to announce competitive airfares, say analysts.

As the demand for hotel rooms is high, their rates are also increasing, he said, adding that the rooms which were available at nominal rates earlier have touched anywhere between Rs 50,000 and Rs 1.25 lakh.

Airfares are set to shoot up as one of India's largest airlines IndiGo has introduced a distance-based "fuel charge" on domestic and international routes.

The triple whammy of increasing jet fuel prices, GoFirst filing for insolvency, and the seat capacity of airlines remaining low is all set to hurt the wallets of flyers again this festival season.

Senior Congress leader P Chidambaram on Sunday took a swipe at the government over rising airfares, saying that in free markets, when demand increases, supply will increase, but in India's free market, when demand increases, prices will increase.

A study conducted by Airports Council International Asia-Pacific in collaboration with Flare Aviation Consulting on airfare trends in the region found highest airfare increase was in India (41%), followed by the United Arab Emirates (34%).

The tourism sector that was hit hard by the COVID-19 pandemic for a whole year in 2020 due to lockdowns and travel restrictions is yet again facing a possible crisis. Cancellations have increased during the holiday season, say tour operators.

Flights within the country are set to become costlier as the Ministry of Civil Aviation (MoCA) has decided to raise the lower limit on domestic airfares from 13 per cent to 16 per cent, which will come into effect from June 1.

Passengers will have to spend more money for air travel from now as the Civil Aviation Ministry on Thursday increased the lower and upper limits on domestic airfares by 10 to 30 per cent.

The officials said the airlines were asked to bring an "immediate" and "medium-term" plan on the number of flights as airfares continue to rise

According to Fitch, the Indian aviation market has seen a sharp increase in airfares in the last few months due to tight supply, which has been worsened by the suspension of the 737 MAX aircraft.

A finance ministry source said taxing imported fuel is unlikely to increase prices and only two domestic airlines currently import some jet fuel.

Airports across the country are struggling to cope with a massive surge in passenger numbers and billions of rupees must be spent to boost their capacity, analysts have warned. India is witnessing a huge boom in air travel as a growing middle class increasingly takes to the skies but experts say infrastructure is failing to keep up.

Pricing deregulation has allowed competition to bring down prices dramatically in India, the government said.

This the third consecutive monthly hike in aviation turbine fuel price, the last being by 4% on September 1.

Airlines in the domestic market are witnessing growing demand amid increasing middle-class per capita income, leading the carriers to announce competitive airfares, say analysts.