No More Skyrocketing Fares: Govt Sets Rs 18,000 Ceiling on Flights

In a swift regulatory intervention, the Ministry of Civil Aviation (MoCA) announced temporary caps on domestic airfares to counter sharp price hikes caused by widespread flight cancellations and reduced capacity. The decision comes amid one of India’s worst aviation disruptions, with IndiGo facing operational challenges that left thousands of passengers stranded.

Key Highlights

- Fare Limits: Economy fares capped at Rs 7,500 for flights up to 500 km, Rs 12,000 for 500–1,000 km, Rs 15,000 for 1,000–1,500 km, and Rs 18,000 for routes above 1,500 km.

- Exclusions: Caps exclude Business Class fares, UDAN regional flights, and applicable airport charges/taxes.

- Reason for Intervention: IndiGo’s operational meltdown led to cancellations and inflated ticket prices, prompting government action “in public interest.”

- Impact: The cap is expected to provide immediate relief to passengers while stabilizing the aviation market until operations normalize.

- Industry Context: India’s aviation sector has faced rising costs and capacity shortages, making regulatory oversight critical during peak travel demand.

Sources: Central Chronicle, Morung Express, India Today, Business Today, Hindustan Times