Government Steps in to Tame Skyrocketing Airfares Amid IndiGo Woes

Union Aviation Minister Ram Mohan Naidu announced the government's intent to cap airfare amid skyrocketing prices caused by the IndiGo crisis. Based on powers from the Aircraft Act, the government has previously intervened in special circumstances, and is committed to ensuring aviation remains accessible for all passengers.

Union Aviation Minister Ram Mohan Naidu addressed the Lok Sabha on Friday, asserting the government's intent to cap exorbitant airfares. Despite the deregulated market, the government possesses authority under the Aircraft Act to intervene during exceptional scenarios when airfares exceed normal thresholds. The latest move comes in response to fare hikes following the IndiGo crisis.

The Minister highlighted previous instances where the government capped fares, including during the Covid-19 pandemic, the Mahakumbh, and the Pahalgam-Srinagar crisis. A massive cancellation of IndiGo flights has triggered a surge in airfares on vital domestic routes, with desperate travelers facing unprecedented ticket prices.

Data from MakeMyTrip illustrates a sharp increase in fares. On December 6, a Delhi-Bengaluru flight costs over Rs 40,000, with some tickets surpassing Rs 80,000. From Delhi to Mumbai, passengers face a range from Rs 36,107 to beyond Rs 56,000. Similar trends exist on other routes, with last-minute fares soaring to extraordinary levels.