Government signals tougher stand on airfare hikes amid IndiGo disruptions

Civil Aviation Minister Ram Mohan Naidu on Friday asserted that the central government has the authority to cap airfares during extraordinary situations and is keeping a close watch on airlines following the recent IndiGo flight disruptions that triggered sharp price spikes.

Addressing the Lok Sabha, he said the Aircraft Act allows the government to intervene if there is any misuse of air-tariff deregulation. He noted that in exceptional circumstances where opportunistic pricing is likely, the government can step in to prevent exploitation of passengers.

Earlier this month, IndiGo cancelled more than 2,000 flights due to crew shortages stemming from new flight duty norms that reduced permissible night duties and overall flying hours. The fallout caused airfares to surge across several domestic routes, leading to public frustration and prompting government scrutiny.

Naidu said the DGCA’s Tariff Monitoring Unit is actively tracking ticket prices to ensure airlines stay within their declared tariff sheets and do not impose unjustified fares.

He pointed out that the government has previously imposed temporary fare caps during periods of unusual demand or crisis, including the Covid-19 pandemic, the Pahalgam terror attack, and the Kumbh Mela in Prayagraj.

However, he clarified that permanent, sector-wide price controls are not feasible, adding that any intervention will be situational and aimed solely at protecting consumers.