The Civil Aviation Ministry imposed immediate temporary caps on domestic airfares on Saturday amid IndiGo’s crisis of over 1,600 cancellations, targeting unreasonable surges and opportunistic pricing that stranded thousands including seniors and patients.
The order mandates uniform limits across all airlines and booking platforms until stability returns, with DGCA enforcing real-time compliance via Order No. 01/2025. IndiGo faces regulatory scrutiny while other carriers like Air India self-capped earlier; government warns of action for violations amid ₹610 crore in refunds issued.
IndiGo Crisis Sparks Fare Chaos
IndiGo, India’s largest carrier with over 2,200 daily flights, cancelled more than 1,000 services by Friday due to unspecified disruptions, slashing capacity and stranding thousands nationwide.
Fares reportedly skyrocketed five to ten times normal rates: Delhi-Mumbai returns hit ₹93,000, Bengaluru ₹92,000, and Kolkata ₹94,000, versus usual ₹20,000-₹25,000.
The ministry cited “severe capacity constraints” in Order No. 01/2025, intervening in public interest without naming IndiGo directly but referencing “one major airline.” This follows passenger outrage over refunds (₹610 crore issued) and delayed baggage, with IndiGo restoring 95% connectivity to 135 of 138 destinations.
Caps Detail and Enforcement Rules
Caps apply uniformly to all economy bookings via airline sites or OTAs, excluding Business Class and RCS-UDAN routes; airlines must ensure ticket availability across fare buckets and add capacity on high-demand sectors.
Examples: Delhi-Jaipur/Chandigarh (up to 500 km) at ₹7,500; Delhi-Bhopal/Jammu (500-1,000 km) at ₹12,000; Delhi-Mumbai/Kolkata (1,000-1,500 km) at ₹15,000; Delhi-Chennai/Bengaluru (above 1,500 km) at ₹18,000.
Ministry statement: “The objective is to maintain pricing discipline, prevent exploitation of passengers in distress, and ensure urgent travellers like senior citizens, students, and patients avoid financial hardship.” DGCA monitors real-time data, promising “immediate corrective action” for deviations; caps lift post-stabilisation. Air India noted self-imposed limits from December 4, clarifying high fares were Premium Economy.
| Distance Band | Maximum Fare (Economy, excluding taxes/UDF) |
|---|---|
| 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 |
Airline Reactions and Stability Push
IndiGo aims for full normalisation within 48 hours per government directive, under management scrutiny amid warnings of regulatory action. Analysts warn caps pressure profitability if fuel or costs rise, potentially curbing investments despite full flights industry-wide.
Air India pledged refunds for differential amounts on elevated bookings. Government coordinates with platforms for compliance, addressing IndiGo’s baggage delays via 48-hour ultimatum. This temporary measure balances passenger relief with operational realities in a market where only one airline remains profitable amid high demand.
The Logical Indian’s Perspective
These fare caps embody empathy for everyday travellers battered by crises, prioritising affordability and fairness over unchecked profiteering in vital services.
The Logical Indian applauds swift government intervention fostering transparency and harmony between airlines and public, yet urges sustainable models avoiding long-term distortions. Collaborative dialogue ensures air travel unites communities without burdening the vulnerable.
