Govt caps airfare to curb sky-high prices amid Indigo crisis

The government has imposed strict airfare caps on all airlines following a major disruption in IndiGo’s flight operations that sent ticket prices soaring across the country. The Ministry of Civil Aviation (MoCA) invoked its regulatory authority on December 6 to curb “opportunistic pricing” and protect passengers from exploitative fare hikes during the ongoing crisis.

IndiGo, which holds over 60% of India’s domestic air travel market, faced unprecedented cancellations — over 1,000 flights called off in a single day — leaving thousands of travelers stranded at airports nationwide. The resulting scramble for alternative flights triggered a steep surge in airfares, with last-minute ticket prices reportedly climbing to seven or eight times their usual rates on some routes.

In response, MoCA issued a directive mandating all carriers to strictly adhere to prescribed fare caps until normal operations resume. While India’s aviation sector is largely deregulated and fares are typically determined by market forces, the government reserves the right to intervene during exceptional disruptions to maintain fair pricing.

Similar measures were implemented during the COVID-19 pandemic to stabilize the market. “The directive aims to maintain pricing discipline, prevent passenger exploitation, and ease the financial burden on vulnerable travelers such as senior citizens, students, and patients,” the ministry stated.

MoCA further pledged continuous monitoring of fare trends via real-time data and cooperation with airlines and travel platforms, warning that violations would prompt immediate corrective actions “in the larger public interest.”

This decisive government intervention seeks to restore order amid a chaotic phase in India’s aviation sector, reassuring travelers that they will not be forced to pay exorbitant prices due to circumstances beyond their control.

With millions relying on air travel for urgent needs, MoCA’s move is a critical step toward safeguarding consumer rights and stabilizing a shaken industry.