US EditionGovernment Caps Airfare to Stabilize Soaring Ticket Prices Amid IndiGo Disruptions
Distance-based caps limit economy fares to Rs 18,000 on longest routes to prevent excessive price hikes amid IndiGo cancellations, covering all airlines and booking platforms, MoCA said.
- On Saturday, the Ministry of Civil Aviation invoked its regulatory powers to cap non‑business class domestic airfares across all airlines, mandating strict compliance until fares stabilise.
- This past week, IndiGo, India's largest airline with over 60 per cent market share, faced over 1,000 cancellations on Friday, stranding thousands and spiking fares seven to eight times.
- MoCA specified that the caps—set by stage length—are Rs 7,500 up to 500 km, Rs 12,000 for 500–1,000 km, Rs 15,000 for 1,000–1,500 km and Rs 18,000 for over 1,500 km, excluding airport levies and taxes, business class fares, and regional connectivity scheme flights.
- Carriers were ordered to maintain availability and consider capacity enhancement, while MoCA said it will monitor fares in real time to enforce corrective action on deviations.
- Precedents and platform limitations suggest India's airfare deregulation framework allows government intervention during disruptions, as seen in the COVID‑19 pandemic, while Air India said complex itineraries on third‑party booking platforms are hard to cap but oversight is underway.
28 Articles
28 Articles
India caps airfares as IndiGo crisis leaves hundreds stranded
India capped airfares on Saturday as hundreds of passengers gathered outside Bengaluru and Mumbai airports after IndiGo canceled 385 flights. It was the fifth day of a crisis at the country's biggest airline that has crippled air travel.
Times of India
The Economic TimesIndiGo crisis: Govt caps airfares in Rs 7,500-Rs 18,000 range for all airlines; check details
Amid IndiGo flight disruptions causing soaring air ticket prices, the Ministry of Civil Aviation has imposed fare caps ranging from Rs 7,500 to Rs 18,000 based on flight distance. These limits, excluding charges, apply to economy class tickets for flights up to 1,500 kilometers and above, with specific tiers set for different route lengths.
AI, AI Express look to add capacity amid IndiGo flight disruptions
New Delhi: Air India Group is looking to add capacity to help passengers impacted by the IndiGo flight disruptions. “Since 4 December, economy class airfares on non-stop domestic flights have been proactively capped to prevent the usual demand-and-supply mechanism being applied by revenue management systems,” a statement said on Saturday. Both Air India and Air India Express have put in place caps on economy class fares. Also ReadIndiGo cancels …
IndiGo disruption: Govt imposes airfare caps to bring down sky-high fares, check opportunistic pricing by airlines
Fare caps: Rs 7,500 for flights up to 500 km (Delhi-Jaipur/ Chandigarh), Rs 12,000 for 500-1,000 km (Delhi-Bhopal/ Jammu), Rs 15,000 for 1,000-1,500 km (Delhi-Mumbai/ Kolkata), and Rs 18,000 for over 1,500 km (say Delhi-Chennai/ Bengaluru)
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