In a major intervention, the Indian government has reinstated airfare caps for the first time since the Covid-19 era, after the IndiGo operational crisis triggered an unprecedented spike in domestic airfares across airlines. The move aims to shield passengers from exploitative pricing until IndiGo restores normal operations, expected by December 15.
Unusually High Fares Trigger Govt Action
The Ministry of Civil Aviation said it had taken “serious note of unusually high airfares” being charged on several routes due to IndiGo’s large-scale cancellations and delays. With India’s biggest airline in turmoil, ticket prices on other carriers surged to record levels.
The government has now invoked regulatory powers to ensure “fair and reasonable fares” across affected routes and to “protect passengers from opportunistic pricing.”
IndiGo Crisis: Over 500 Flights Cancelled in a Day
India’s largest carrier, which operates more than 2,200 flights daily, has been cancelling hundreds of flights since earlier this week. On Friday alone, IndiGo cancelled over 1,000 flights, a number expected to gradually decline over the coming days.
The airline has blamed a combination of factors for the meltdown
• staffing shortages
• scheduling disruptions
• minor tech glitches
• weather issues
• aviation ecosystem congestion
• pilot duty time (FDTL) rules
IndiGo CEO Pieter Elbers admitted restoring punctuality would “not be an easy target,” adding that the airline serves nearly 3.8 lakh passengers daily, and the last few days failed that promise.
Passengers Hit Hard as Fares Skyrocket
The reimposed fare caps come as too little too late for lakhs of passengers who scrambled for last-minute tickets at exorbitant prices after IndiGo cancelled flights well into mid-December.
Passengers were forced to rebook on Air India, AI Express, Akasa, and SpiceJet often at multiple times the original fare.
One traveller, Geeta Srivastava (name changed), purchased a Delhi–Udaipur–Delhi ticket for ₹11,000, only to be forced to rebook her return leg on another airline for ₹24,000.
She described the government’s response as “completely disconnected from ground reality at airports.”
Demand–Supply Mismatch: A Perfect Storm
The timing of the crisis worsened its impact:
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IndiGo holds 65% of India’s domestic market
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Peak travel season usually sees over 5 lakh domestic passengers daily
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With IndiGo crippled, passengers crowded the remaining 35% market share airlines
This severe mismatch triggered a fare surge across metros and tourist routes.
Fare Caps to Stay Until Situation Stabilises
The aviation ministry confirmed the airfare caps will remain until IndiGo brings operations back to pre-crisis levels, expected by December 15. The ministry will actively monitor fare levels in real time and coordinate with airlines and online travel portals.
Any violation will attract “immediate corrective action in the larger public interest,” the ministry warned.
New Pilot Duty Norms Put on Hold
To help IndiGo recover more quickly, the government has temporarily paused implementing new FDTL norms rules designed to enhance pilot safety by reducing fatigue. These will remain on hold until the airline regains operational stability.
