As the collapse of IndiGo drives up ticket costs across the country, the Indian government caps airfares

 
 
 

The Indian government has imposed temporary fare caps across domestic routes to contain runaway airfares caused by the massive disruption in IndiGo’s operations, which led to more than 1,000 flight cancellations on Friday alone and left thousands of passengers stranded at airports.

The Ministry of Civil Aviation (MoCA) invoked its regulatory powers on Saturday to curb “opportunistic pricing” after ticket prices on key routes surged to several times the usual levels.

Airlines must now adhere to the following non-business class fare ceilings (excluding taxes and airport charges):

  • ₹7,500 for routes up to 500 km (e.g., Delhi–Jaipur, Delhi–Chandigarh)
  • ₹12,000 for 500–1,000 km (e.g., Delhi–Bhopal, Delhi–Jammu)
  • ₹15,000 for 1,000–1,500 km (e.g., Delhi–Mumbai, Delhi–Kolkata)
  • ₹18,000 for routes over 1,500 km (e.g., Delhi–Chennai, Delhi–Bengaluru)

These caps apply to all airlines, regardless of whether tickets are bought directly or through online travel platforms.

They remain effective “until fares stabilize or until further review,” MoCA said.

IndiGo—India’s largest carrier with over 60% market share—suffered one of its worst operational breakdowns after struggling to comply with new Flight Duty Time Limitation (FDTL) rules requiring longer pilot rest periods and stricter night-flying limits, according to Indian news reports.

In response, the Directorate General of Civil Aviation granted IndiGo temporary concessions until February 10, including easing caps on night landings and relaxing night-flying hour limits. Despite this, disruptions persisted, and more than 800 flights were cancelled Saturday.

The airline said it had restored over 95% of its network and expected to return to normal operations between December 10 and 15.

Even after the government order, many airline websites continued to display fares above the limits, especially on high-demand routes such as Delhi–Mumbai. Industry sources said booking systems were still being recalibrated and changes would reflect progressively.

MoCA warned airlines against “steep or unusual upward revisions” on affected routes and promised strict enforcement of the caps. Air India said it had already voluntarily capped economy fares on its domestic non-stop flights to cushion passengers from price spikes.

With last-minute fares soaring to seven or eight times the normal rates, the public outcry grew louder. The government said the fare caps aim to protect vulnerable travelers—including students, senior citizens, and patients—who urgently need to fly.

Meanwhile, Delhi airport reported gradual resumption of operations, though IndiGo flights remain affected. The airline has apologized to passengers, citing a “serious operational crisis.”

The crisis continues to ripple through India’s aviation sector, revealing how deeply dependent the country’s air travel network is on the operations of a single dominant carrier.

  
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