Why Did the Govt Cap Airfares at Rs 7,500–Rs 18,000 Across India?
Click to start listening
Synopsis
In response to a surge in ticket prices due to disruptions at IndiGo, the Ministry of Civil Aviation has set a fare cap across India. This regulatory action aims to stabilize air travel costs and protect passengers from inflated pricing during operational challenges. Find out how the new limits affect various flight distances.
Key Takeaways
- New fare caps range between Rs 7,500 to Rs 18,000 based on distance.
- Limits are aimed at stabilizing air travel costs.
- Excludes business class and UDAN flights.
- IndiGo is mandated to process refunds swiftly.
- Government will monitor compliance in real-time.
New Delhi, Dec 6 (NationPress) In a decisive move, the Ministry of Civil Aviation has enacted a nationwide limit on domestic airfares to address the alarming spike in ticket prices triggered by significant disruptions at IndiGo. This situation resulted in extensive flight cancellations and diminished capacity across numerous routes.
According to the ministry's directive, airlines are now restricted from charging above the newly established maximum fare limits, aimed at safeguarding public interest, until normal flight operations resume. The cap varies from Rs 7,500 to Rs 18,000, depending on the distance of the route.
For flights covering distances up to 500 km, the ceiling fare is set at Rs 7,500. For sectors ranging from 500 to 1,000 km, the limit is Rs 12,000. Routes between 1,000 and 1,500 km have a cap of Rs 15,000, while fares for flights exceeding 1,500 km cannot surpass Rs 18,000.
These price ceilings do not include extra charges and are not applicable to business class or UDAN flights. The ministry has yet to clarify if premium economy fares fall under this cap, but it is confirmed that the limits apply to economy class tickets.
This regulation comes in response to unprecedented fare increases observed since December 4, with various online travel agencies showcasing inflated last-minute ticket prices due to a sudden imbalance between demand and available seats. The government stated it will monitor fare trends in real-time and work with airlines and booking platforms to ensure strict adherence.
Any violations of the prescribed fare limits will result in immediate corrective measures.
Additionally, the ministry has directed IndiGo to promptly process all outstanding passenger refunds and complete the refund cycle for cancelled or disrupted flights by 8 PM on Sunday, December 7.
Furthermore, the airline has been instructed to locate and deliver all lost baggage to passengers’ homes or selected addresses within 48 hours.
These initiatives aim to stabilize the costs of domestic air travel and alleviate the financial strain on passengers until the operational disruptions are resolved.
Point of View
It is crucial to recognize that the government's intervention in capping airfares is a necessary step to protect consumers during challenging times. The spike in ticket prices due to operational disruptions at IndiGo created a scenario where passengers were heavily burdened. This regulatory measure not only aims to stabilize market conditions but also ensures fair treatment for travelers across the board.
NationPress
06/12/2025
Frequently Asked Questions
What is the new fare cap for domestic flights?
The new fare cap for domestic flights ranges from Rs 7,500 for routes up to 500 km to Rs 18,000 for flights exceeding 1,500 km.
Do these fare caps apply to all classes?
No, the fare caps do not apply to business class or UDAN flights; they are confirmed to apply only to economy class.
What measures is IndiGo taking in response to this regulation?
IndiGo has been instructed to process pending passenger refunds promptly and deliver all misplaced baggage to passengers within 48 hours.
How will the government monitor compliance with the fare caps?
The government will monitor fare levels in real-time and coordinate with airlines and booking platforms to ensure compliance with the fare caps.
What action will be taken against airlines that violate the fare caps?
Any airline that charges above the prescribed fare limits will face immediate corrective action.
