Govt caps airfares as IndiGo disruptions send ticket prices soaring

The government has imposed temporary airfare caps ranging from Rs 7,500 to Rs 18,000 amid a sharp surge in ticket prices following widespread IndiGo flight cancellations. The civil aviation ministry is monitoring fares closely and has ordered expedited refunds and support for affected passengers

New Delhi: The government on Saturday capped the airfares in the range of Rs 7,500 to Rs 18,000 depending on the distance amid soaring air ticket prices due to the IndiGo flight disruptions.

The fare limits, excluding applicable charges, are not applicable for business class and UDAN flights, the Civil Aviation Ministry said in an order.

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However, the order did not provide clarity on whether the caps are applicable for economy class tickets or both economy and premium economy class tickets.

Under the limits, for a flight flying up to 500 kilometres, the fares are capped at Rs 7,500 and for 500-1,000 kilometres, the ticket price cap is Rs 12,000.

For flights operating 1,000-1,500 kilometres, the fares are limited at Rs 15,000 and for above, 1,500 kilometres, the cap is Rs 18,000.

The cap means that for a Delhi-Mumbai flight, which is covered in a distance of over 1,300 kilometres, the fare for at least the economy class is capped at Rs 18,000.

The limits will be in place till the situation stabilises, the ministry said in a statement. It excludes User Development Fee (UDF), Passenger Service Fee (PSF), and taxes on air tickets.

For at least five days in a row, IndiGo flight operations have significantly disrupted, with a large number of cancellations and delays causing hardships to thousands of passengers. In many cases, baggages have been misplaced.

On Saturday, the country’s largest airline cancelled over 400 flights while on Friday, the number of cancellations crossed 1,000.

The ministry, in the statement, said it will continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms.

Any deviation from the prescribed norms will attract immediate corrective action in the larger public interest, it added.

In the two-page order on capping the airfares, the ministry said disruptions in flight operations of one of the scheduled airlines has resulted in flight cancellations, leading to capacity constraints and unreasonable surge in the fares on a number of sectors.

“These fare limits shall be applicable for all forms of bookings, regardless of whether the purchase is made directly through the airline’s official website or through various online travel agents’ platforms,” it said.

The ministry has also asked airlines to avoid steep or unusual upward fare revisions on sectors affected by the cancellations.

An analysis of fares on airlines’ websites on Friday showed that a one-way one-stop economy-class SpiceJet Kolkata-Mumbai flight ticket for December 6 costing up to Rs 90,000, and a similar ticket of Air India for Mumbai-Bhubaneswar going up to Rs 84,485.

Indian Association of Tour Operators (IATO) President Ravi Gosain said unpredictable spikes damage consumer confidence and create chaos for tour operators.

A temporary fare cap may provide immediate relief, but the durable solution is better contingency planning, rapid capacity deployment, and transparent fare monitoring, he noted.

Federation of Associations in Indian Tourism & Hospitality (FAITH) Board Member Anil Kalsi said the fare cap is essential to protect flyer rights in India and there is a need for a permanent policy in this regard.

Meanwhile, the ministry has directed IndiGo to complete the ticket refund process for the cancelled flights by Sunday evening as well as ensure baggage separated from the travellers are delivered in the next two days.

Refund process for all cancelled or disrupted flights must be fully completed by 8 pm on Sunday, the ministry said in a separate statement.

“Airlines have also been instructed not to levy any rescheduling charges for passengers whose travel plans were affected by cancellations,” it said.

Also, the airline has been instructed to set up dedicated passenger support and refund facilitation cells.