How the Center set the Rs 7,500–18,000 fare limitations due to the IndiGo problem, inflation, and capacity


India’s Ministry of Civil Aviation has imposed emergency caps on domestic airfares after a wave of IndiGo flight cancellations triggered one of the most severe aviation disruptions in years. With thousands of flights cancelled due to a pilot-rostering failure, ticket prices on major routes skyrocketed, prompting the government to intervene to protect passengers during the peak travel season.

Under the temporary limits, economy-class fares on flights up to 500 km cannot exceed ₹7,500. Routes between 1,000 and 1,500 km — including high-demand sectors such as Delhi–Mumbai — are capped at ₹15,000, while fares for flights over 1,500 km are capped at ₹18,000. The caps apply across all airlines and booking platforms, while airport fees and taxes are separate. The last time India imposed similar price controls was during the pandemic.

Officials said the intervention had become unavoidable as IndiGo’s cancellations — affecting an airline that holds more than 60 per cent domestic market share — created a sudden supply crunch. Passengers were left stranded in airports across cities such as Delhi, Mumbai and Bengaluru, while fares climbed to record highs. Some Delhi–Mumbai tickets crossed ₹28,000, far above normal prices.

Although airfares are normally deregulated and airlines rely on dynamic pricing, the government used its emergency powers to check what it described as “opportunistic pricing” during the crisis. Aviation analysts said the caps roughly reflect current operational costs and help prevent further inflation in ticket prices. Still, they criticised the timing, noting that many travellers had already paid excessively to rebook flights over the past few days.

IndiGo has stated that it expects full operations to return to normal by December 10–15. The government has temporarily eased recent pilot-rest rules until February 10 to relieve staffing pressure, though pilot unions argue that such steps compromise safety.

The fare caps will remain until cancellations decline and pricing stabilises, with experts estimating that at least another week may be required for the market to settle.


 

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