Rs 7500 up to 500 KM: Centre caps ticket prices as IndiGo crisis deepens

The Central Government on Saturday (Dec 06) issued a directive to airlines operating in India to ensure reasonable prices after the steep surge in air fares following the disruption and delay of all domestic flights of IndiGo. The Ministry of Civil Aviation (MoCA) invoked its regulatory power after the prices on certain routes like Delhi-Bengaluru touched Rs 1 lakh ($1,205), which typically costs around Rs 5000-7000 on regular days.

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The ministry, in an order, said it took serious cognisance of concerns surrounding the unusually high fares being charged by certain airlines during the ongoing ordeal. The order mentioned that IndiGo's operational disruptions caused large-scale flight cancellations, severe shrinking of capacity and a steep rise in last-minute fares, with thousands of travellers stranded across the country.

The fare ceilings

The Centre has put an upper limit on the ticket prices for economy-class domestic travel. It has fixed maximum airfares based on stage length to prevent overcharging amid the ongoing crisis. For routes up to 500 km, the fare cap is set at Rs 7,500, while flights between 500 and 1,000 km cannot exceed Rs 12,000. Routes covering 1,000 to 1,500 km have a maximum limit of Rs 15,000, and any journey beyond 1,500 km is capped at Rs 18,000.

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These limits are aimed at curbing opportunistic pricing by airlines and ensuring fair fares for passengers.

These limits will remain in force until the fares stabilise or till further review. These fares would be applicable across all forms of booking — airline websites, apps, and third-party travel portals.

Airlines have also been directed to ensure ticket availability across fare buckets and to deploy additional resources on the routes with high demand.