India imposes temporary fare caps amid IndiGo meltdown, targets opportunistic airline pricing

Acting on rising complaints over soaring domestic airfares, the Ministry of Civil Aviation on Saturday imposed temporary fare caps on airlines, warning carriers of strict action for violations during the ongoing disruption in services. The intervention follows days of turmoil at IndiGo, the country’s largest domestic airline, which has been forced to cancel hundreds of flights nationwide each day.

The ministry said it has “taken note of concerns regarding unusually high airfares being charged by certain airlines during ongoing disruption”, prompting an urgent regulatory intervention. The ministry said that an “official directive issued to all airlines” now mandates “strict adherence to fare caps that have now been prescribed”.