The central government has stepped in to control soaring domestic airfares, announcing temporary fare caps after IndiGo’s week-long operational collapse triggered widespread flight cancellations and a sharp spike in ticket prices across major routes.
The intervention follows IndiGo’s cancellation of at least 1,600 flights over the past week, leading to nationwide disruption, reduced seat capacity, and what the civil aviation ministry termed an “unreasonable surge” in airfares.
Govt Notifies Temporary Ceiling on Airfares
In its order issued on Friday, the Ministry of Civil Aviation directed all airlines to comply with a new upper limit on ticket prices based on flight distance. The maximum fares permissible are:
- ₹7,500 for routes up to 500 km
- ₹12,000 for 500–1,000 km
- ₹15,000 for 1,000–1,500 km
- ₹18,000 for routes above 1,500 km
These caps exclude UDF, PSF and other applicable taxes and do not apply to Business Class or RCS-UDAN flights.
The directive comes into force immediately, with the Directorate General of Civil Aviation (DGCA) instructed to actively monitor and regulate fares on all covered routes.
Decision Taken ‘In Public Interest’: Government
The ministry said that the fare ceilings were imposed “in public interest” and will remain in place until airfare levels stabilise or a further review is undertaken. The caps apply universally to all bookings—whether made directly with airlines or via online travel agencies.
Airlines have been directed to:
- Maintain balanced seat availability across fare buckets
- Avoid sudden fare spikes on routes affected by cancellations
- Add capacity where possible on high-demand sectors
- Provide maximum support to stranded or impacted passengers, including rebooking options
The government noted that it invoked regulatory provisions to prevent “opportunistic pricing” during the ongoing aviation disruption and to ensure “fair and reasonable” fares for passengers.
IndiGo Cancellations Trigger Fare Shock Across India
The move comes after IndiGo’s massive cancellations due to crew roster mismanagement following new Flight Duty Time Limitations (FDTL) that took effect on November 1.
With reduced capacity across carriers, domestic airfare soared dramatically—often five to ten times the normal rate. Round-trip tickets on key metro routes breached record highs:
- Delhi–Mumbai: ₹93,000
- Bengaluru: ₹92,000
- Kolkata: ₹94,000
- Chennai: ₹80,000
Under usual conditions, round-trip economy fares on these routes range between ₹20,000–25,000, seldom exceeding ₹30,000 even for last-minute bookings.
Air India Responds: Says It Has Already Capped Fares
Following the government’s announcement, Air India clarified that it had proactively capped economy fares on all non-stop domestic flights since December 4.
The airline said revenue management systems typically adjust fares dynamically based on demand and supply, but it had chosen to limit fares voluntarily to prevent extreme pricing.
Air India also addressed viral screenshots showing extremely high last-minute fares, explaining that these were mostly complex itineraries involving:
- one-stop or two-stop routings
- mixed-cabin combinations
- auto-priced itineraries from third-party travel platforms
“It is not technically possible to cap all such permutations,” the airline said, adding that it is engaging with travel platforms to ensure greater oversight.