The move comes after a week of massive disruption at IndiGo.

IndiGo Flight Crisis: Govt Sets Maximum Prices for Domestic Tickets

Amid the Indigo Flight Crisis, the Ministry of Civil Aviation (MoCA) has imposed a nationwide cap on domestic economy-class airfares. Under the newly issued order effective immediately, airlines will not be permitted to charge more than INR 7,500 for routes up to 500 km; INR 12,000 for 500–1,000 km; INR 15,000 for 1,000–1,500 km; and INR 18,000 for flights beyond 1,500 km. These limits exclude the User Development Fee (UDF), Passenger Service Fee (PSF) and applicable taxes and do not apply to business-class or regional RCS-UDAN flights.

The cap covers all booking platforms – direct airline websites or online travel agents – and is in force until normalcy of the aviation sector situation or until further notice. Airlines have also been given instructions to ensure sufficient ticket availability across fare buckets and consider adding capacity on high-demand sectors.

The move comes after a week of massive disruption at IndiGo. It reportedly cancelled more than 1,600 flights nationwide. The airline’s sudden operational breakdown is caused by mismanagement in crew rostering under new duty-time norms. It left thousands of passengers stranded, significantly reducing seat capacity on many key routes.

As an outcome of the shortage, fares on some routes had surged “five to ten times” over normal rates. Return-ticket prices on main sectors reportedly jumped to as high as INR 80,000–INR 90,000. For instance, a Delhi–Mumbai return ticket jumped to INR 93,000, Bengaluru to INR 92,000, Kolkata to INR 94,000 and Chennai to INR 80,000. Such dramatic inflation sparked widespread criticism for opportunistic pricing.

Another major carrier, Air India, said it had proactively capped economy fares on nonstop domestic flights since December 4 ahead of the government’s directive to prevent steep fare hikes by automated pricing systems.

According to MoCA in a statement, the cap was “in the public interest”, and it was aimed at preventing the exploitation of passengers, particularly vulnerable ones such as senior citizens, patients and students, during a period of severe disruption.

The order also empowers regulators, including the Directorate General of Civil Aviation (DGCA), to monitor fare levels in real-time and take enforcement action against airlines deviating from the cap.

Source: Hindustan Times