IndiGo Chaos: Why India Can’t Freeze Airfares for an Entire Year - Aviation Minister Explains in Parliament

New Delhi: Civil Aviation Minister K Rammohan Naidu told the Lok Sabha on Friday that the government cannot fix airfare caps for an entire year, pointing to seasonal demand shifts and the practical challenges

of airline operations. His comments come amid growing concerns over soaring ticket prices during major festivals and at a time when IndiGo -- the country’s largest carrier -- has been ordered to scale back its schedule following major operational disruptions.Naidu noted that airfares naturally climb during peak-demand periods, making it impractical for the ministry to impose a year-round cap.

https://www.youtube.com/watch?v=gLft3vR_M10

Also Read: IndiGo CEO's Folded-Hands Photo Goes Viral, Aviation Minister Explains It Wasn't An Apology To Him But To..."The whole idea of open sky is there to keep the competition alive. Whenever it is necessary to interfere, the government has used its power. Recently, we saw during the IndiGo crisis that there were many cancellations, many routes where the airline was not able to operate due to which there was a capacity constraint," Naidu said."It was observed that if we didn’t interfere, there could be a rise in airfares. So immediately we stepped in, released an order and, this time, we made categories based on distance and clearly communicated to the airlines that there has to be a capping in airfares," he added.He added that the ministry has increased routes and boosted flight availability to ensure passengers have more options during peak-demand periods.Also Read | IndiGo Boss Breaks Silence: ‘Chaos Wasn’t Intentional', Vows Corrective Action and External Review

Govt Imposes Airfare Caps Amid Surge In Ticket Prices

The Aviation Minister's comments came days after the government imposed airfare caps, for the first time after Covid pandemic, as the IndiGo crisis had led to airfares surging exponentially.Notably, these caps will remain in force until IndiGo operations are back to normal. Under the new cap, airlines cannot change more than:

• Rs 7,500 for routes up to 500 km
• Rs 12,000 for 500–1,000 km
• Rs 15,000 for 1,000–1,500 km
• Rs 18,000 for routes above 1,500 km

The fare limits, excluding applicable charges, are not applicable for business class and UDAN flights, the civil aviation ministry said in an order.The cap means that for a Delhi-Mumbai flight, which is covered in a distance of over 1,300 kilometres, the fare for at least the economy class is capped at Rs 18,000.The limits will be in place till the situation stabilises, the ministry said in a statement. It excludes User Development Fee (UDF), Passenger Service Fee (PSF), and taxes on air tickets.