The Government has capped domestic airfares nationwide after IndiGo’s massive operational disruptions caused sharp ticket price surges. New limits aim to stabilise travel costs, protect passengers, enforce timely refunds, and ensure fair pricing until flight operations return to normal.
In an unprecedented regulatory intervention, the Ministry of Civil Aviation on Saturday imposed a nationwide cap on domestic airfares following widespread disruptions at IndiGo that triggered a sudden and steep spike in ticket prices. The move comes amid mounting passenger complaints, massive flight cancellations, and reduced capacity across key air routes after India’s largest airline experienced operational setbacks earlier this week.
The ministry stated that the decision has been taken strictly in the public interest to ensure that airfares remain “fair, reasonable, and not exploitative” during this temporary disturbance in the aviation ecosystem. According to the government’s directive, domestic airlines are strictly prohibited from charging above the newly fixed fare ceilings until flight operations normalise and sufficient capacity returns to the market.
New Fare Caps Announced
The capped fares have been structured based on route distance, and the ceilings will apply specifically to economy-class tickets. The new maximum limits are as follows:
Up to 500 km: Maximum fare capped at Rs 7,500
500 to 1,000 km: Maximum fare capped at Rs 12,000
1,000 to 1,500 km: Maximum fare capped at Rs 15,000
Above 1,500 km: Maximum fare capped at Rs 18,000
These caps exclude additional taxes and charges, and they do not apply to business-class seats or to flights operating under the regional UDAN scheme. However, the ministry has not clarified whether premium economy fares fall under the capped structure, leaving airlines and passengers awaiting further guidance.
Reason Behind the Intervention
Since December 4, passengers reported an abrupt surge in last-minute fares across major travel platforms, in some cases doubling or tripling within hours. This spike occurred due to the imbalance between demand and capacity after a large number of IndiGo flights were cancelled or delayed across the country.
With IndiGo serving nearly 60% of the domestic aviation market, operational disturbances at the carrier immediately sent shockwaves across the entire sector, resulting in reduced seat availability and artificially inflated prices on high-demand routes.
To prevent airlines and booking platforms from taking undue advantage of the situation, the ministry announced that it will monitor fare trends in real time. Any deviation from the capped limits will trigger immediate corrective action, the government warned.
Strict Orders to IndiGo on Refunds and Baggage Handling
Alongside implementing fare controls, the government has issued stringent instructions to IndiGo to safeguard the interests of affected passengers.
The airline has been ordered to complete all pending refunds by 8 PM on Sunday, December 7. This deadline includes refunds for cancelled, delayed, or disrupted flights. Passengers had repeatedly complained about long refund delays on social media and customer portals.
IndiGo must also trace and deliver all misplaced bags within 48 hours to the passengers’ homes or preferred addresses. The ministry emphasised that the airline cannot delay or defer baggage resolution due to the ongoing crisis.
Government to Ensure Strict Compliance
Civil Aviation Minister officials confirmed that dedicated monitoring teams will coordinate with airlines, online travel agencies, and fare-tracking platforms to prevent overcharging. Real-time data will be analysed to ensure no airline violates the fare caps or engages in predatory pricing.
The government also indicated that these fare ceilings are temporary and will remain in place only until normalcy is restored in flight operations nationwide. Once IndiGo resumes full capacity and the demand–supply imbalance stabilises, the ministry will reassess whether the caps should be lifted or modified.
Expected Impact on Passengers
The fare regulation is expected to bring immediate relief to domestic travellers who were earlier forced to pay exorbitant last-minute prices due to the crisis. With air travel being a critical mode of transport for millions, the government argued that temporary intervention was essential to protect public interest and prevent market distortion.
Industry watchers believe the decision will help stabilize India’s aviation sector during this period of uncertainty, although airlines may face short-term financial pressure from price restrictions.
| Also Read: Centre Orders High-Level Probe as IndiGo Crisis Deepens Nationwide |
For now, passengers can expect predictable and reasonable airfares until the situation improves.
