Government Imposes Airfare Caps to Combat ‘Opportunistic Pricing’ Amid IndiGo Crisis

Government Imposes Airfare Caps to Combat 'Opportunistic Pricing' Amid IndiGo Crisis

#AirfareCaps #MoCAAction #IndiGoCrisis #AviationChaos #FlightCancellations #PriceRegulation #PassengerProtection #IndianAviation #TravelUpdate #GovtIntervention

New Delhi: — In a major intervention to protect distressed passengers, the Ministry of Civil Aviation (MoCA) today invoked its regulatory powers to immediately cap airfares on all domestic routes affected by the widespread operational crisis at IndiGo, India’s largest airline. The move comes in response to public outcry and real-time data showing “unusually high airfares” being charged by certain carriers, constituting what the Ministry termed “opportunistic pricing.”

The crisis, triggered primarily by IndiGo’s massive wave of flight cancellations—estimated to be over 1,000 flights on Friday alone due to an acute pilot shortage following the rollout of new Flight Duty Time Limitation (FDTL) norms—has crippled the country’s domestic air travel infrastructure for nearly a week. The subsequent collapse in capacity sent ticket prices soaring on other airlines, with some one-way economy fares reportedly spiking to over ₹65,000 on busy sectors like Delhi-Mumbai.

Strict Fare Caps Instituted

An official directive has been issued to all airlines mandating strict adherence to the newly prescribed fare limits. These caps are based on the flight distance, excluding airport levies and taxes, and will remain in force until the operational situation fully stabilises.

The prescribed maximum fares for non-business class travel are:

  • Up to 500 km: ₹7,500

  • 500–1,000 km: ₹12,000

  • 1,000–1,500 km: ₹15,000

  • Above 1,500 km: ₹18,000


Protecting Passengers from Financial Hardship

“The objective of this directive is to maintain pricing discipline in the market, prevent any exploitation of passengers in distress, and ensure that citizens who urgently need to travel—including senior citizens, students, and patients—are not subjected to financial hardship during this period,” the MoCA statement read.

The Ministry underscored that the intervention is part of a broader, proactive response to the crisis. It has also directed IndiGo to clear all pending passenger refunds by 8:00 PM on Sunday, December 7, 2025, and ensure the tracing and delivery of all separated baggage to passengers’ residential addresses within 48 hours.

Enhanced Monitoring and Compliance Warning

The Ministry confirmed that it will continue to closely monitor fare levels through real-time data and maintain active coordination with all airlines and online travel platforms to ensure compliance.

“Any deviation from the prescribed norms will attract immediate corrective action in the larger public interest,” the MoCA warned, signalling a zero-tolerance stance towards price manipulation.

While the government has temporarily suspended certain clauses of the new FDTL rules to help IndiGo restore operational stability, the imposition of fare caps serves as a critical consumer protection measure. The dual action aims to rapidly normalise flight schedules while simultaneously protecting the consumer’s wallet from the fallout of the aviation sector’s single largest carrier facing a systemic operational breakdown.

IndiGo’s CEO, Pieter Elbers, has issued a public apology, acknowledging the severity of the crisis and assuring that while operations are gradually improving, full normalcy is expected to be restored between December 10 and 15, 2025.


Key Directives Issued

  • Fare Caps: Maximum prices set across four distance slabs.

  • Refund Deadline: IndiGo mandated to process all pending refunds by 8:00 PM, Sunday, Dec 7.

  • Baggage: Directed to be traced and delivered to passengers’ homes within 48 hours.

  • Waiver: No rescheduling charges for affected passengers.

  • Oversight: A 24×7 control room at MoCA is monitoring the situation and co-ordinating with stakeholders.

#AirfareCaps #MoCAAction #IndiGoCrisis #AviationChaos #FlightCancellations #PriceRegulation #PassengerProtection #IndianAviation #TravelUpdate #GovtIntervention

By MFNews

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