Govt Imposes Fare Caps as IndiGo Disruptions Trigger Airfare Explosion 

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New Delhi: With airfares skyrocketing amid massive flight disruptions at IndiGo, the Ministry of Civil Aviation (MoCA) on Saturday stepped in to regulate non-business class airfares across all airlines, invoking its emergency regulatory powers to curb what it termed “opportunistic pricing”. The fare caps will remain in force until the situation stabilises or until further review, the ministry said.

The intervention follows over 1,000 IndiGo flight cancellations in a week, including more than half of its daily schedule on Friday alone, which led to nationwide travel chaos and a sharp spike in last-minute airfares.

Fare Caps Announced for All Key Distance Bands

According to the official MoCA order, the maximum airfare caps (excluding taxes and levies) are:

  • Up to 500 km: ₹7,500

  • 500–1,000 km: ₹12,000

  • 1,000–1,500 km: ₹15,000

  • Above 1,500 km: ₹18,000

The ministry clarified that these caps:

  • Apply to all booking platforms, including airline websites and online travel portals

  • Do not apply to business class fares

  • Do not cover flights under the regional connectivity scheme (UDAN)

Airlines have also been directed to maintain ticket availability across fare buckets and consider capacity enhancement on high-demand routes.

“Protect Travellers From Exploitation,” Says Aviation Ministry

Taking serious note of “unusually high fares” being charged on certain routes, the ministry said the objective of the directive is to “maintain pricing discipline, prevent passenger exploitation and ensure essential travel remains affordable.”

“The directive is aimed at protecting citizens who urgently need to travel — including senior citizens, students and patients — from financial distress during this disruption,” MoCA said.

The ministry also warned that any deviation from the prescribed fare limits will attract immediate corrective action in the larger public interest. Airlines were specifically instructed to avoid “steep or unusual fare revisions” on routes hit by cancellations.

IndiGo Crisis Sends Last-Minute Fares Through the Roof

India’s largest airline, IndiGo, which controls over 60% of the domestic market, has thrown commercial flight operations across the country out of gear with daily cancellations this week. The large-scale disruption has pushed last-minute and day-ahead fares to seven to eight times their normal levels on several routes, forcing travellers into distress purchases for essential travel.

While airfares in India remain deregulated under normal conditions, the government can intervene during sector-wide disruptions — as it did earlier during the COVID-19 pandemic.

Meanwhile, Air India said it has proactively capped economy class fares on domestic non-stop flights since December 4, and is coordinating with online platforms to prevent price abuse. The airline also said it is adding capacity to help stranded passengers and reunite delayed baggage.

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