Government Imposes Fare Caps to Address IndiGo Flight Crisis

The Central Government of India has mandated new fare caps for airlines following a crisis at IndiGo that has resulted in widespread flight cancellations and significant fare increases. Effective immediately, the Ministry of Civil Aviation announced that airlines must comply with these caps on all disrupted routes to prevent exorbitant pricing and protect travelers.

In a statement, the ministry emphasized that the decision was made “in the public interest” to curb what it termed as an “unreasonable surge” in airfares caused by operational issues at IndiGo. The disruptions have left numerous passengers stranded, leading to severe capacity constraints and inflated last-minute ticket prices.

Details of the Fare Caps

Under the newly established regulations, airlines are prohibited from charging more than Rs 7,500 for economy-class travel on routes up to 500 km. For longer journeys, specifically those exceeding 1,500 km, the maximum fare is capped at Rs 18,000. These fare limits are exclusive of the User Development Fee (UDF), Passenger Service Fee (PSF), and applicable taxes, and do not apply to Business Class or Regional Connectivity Scheme (RCS-UDAN) flights.

The Ministry has made it clear that the fare caps will remain in place “until the fares stabilise or till further review.” These limits apply to all booking platforms, including airline websites and third-party travel portals. Airlines are also required to ensure ticket availability across various fare buckets and consider deploying additional capacity on routes where demand surges.

Government’s Stance on Pricing Discipline

The government’s intervention follows a significant spike in ticket prices across domestic routes as airlines responded to the operational challenges faced by IndiGo. The Ministry of Civil Aviation issued a directive insisting on strict adherence to the fare caps, stating that these measures would continue until the situation with IndiGo fully stabilises.

In their announcement, the ministry noted it had taken “serious note of unusually high airfares” and invoked regulatory powers to ensure fair pricing practices across all affected routes. “To safeguard passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares,” the statement read.

Additionally, airlines are prohibited from charging any rescheduling fees for passengers whose travel plans have been disrupted, further ensuring that travelers are not unfairly penalised for operational failures. The government’s actions aim to maintain pricing discipline during this challenging period, particularly affecting vulnerable groups such as senior citizens, students, and medical passengers.

To enforce compliance with these fare caps, the Ministry plans to continuously monitor fare levels using real-time data from airlines and online travel portals. Any airline found in violation of these caps will face “immediate corrective action,” highlighting the importance of consumer trust during this turbulent time for the aviation sector.

As the crisis enters its fifth day, hundreds of flights have been cancelled across major airports, leading to increased fares on other airlines, including SpiceJet and Air India. Reports indicate that an economy class, one-way ticket for a two-stop Air India flight from Hyderabad to Mumbai has surged to Rs 70,329, while another route from Hyderabad to Bhopal is priced at an astonishing Rs 90,000.

With these measures in place, the government aims to restore order and stability in the aviation market, ensuring that air travel remains accessible to all passengers amid ongoing disruptions.