Aviation Minister Signals Airfare Caps Amid IndiGo Crisis Surge

Union Aviation Minister Ram Mohan Naidu on Friday expressed the need to cap airfare, adding that the government has communicated with the airlines. Speaking in Lok Sabha said that while India's aviation market is deregulated, the government retains powers under the Aircraft Act to cap fares in extraordinary situations.

"We have communicated to the airlines that there has to be a cap on airfares. I'm mentioning the point saying that because the government has the exclusive power in extraordinary circumstances when they feel that the airfares are rising above the normal and becoming abnormal," the Minister said in Lok Sabha. 

The statement comes as the government stepped in to cap the exorbitant airfare by the airlines during the IndiGo crisis. The government has capped airfares several times in the past, for example, during Covid-19, the Mahakumbh, and the Pahalgam-Srinagar crisis.

IndiGo's massive flight cancellations across India have led to a significant surge in airfares across several key domestic routes, with prices skyrocketing to unprecedented levels, as passengers scrambled for alternatives. Booking data on MakeMyTrip shows the cheapest Delhi-Bengaluru flight on December 6 costing in excess of Rs 40,00 with some options exceeding Rs 80,000.

A passenger willing to travel from Delhi to Mumbai on December 6 has to pay a minimum of Rs 36,107, while the maximum amount exceeds Rs 56,000, as per MMT's data. For a return trip, one has to pay a minimum of Rs 23,000 to reach the national capital, while the maximum amount exceeds Rs 37,000.On the Delhi-Chennai route, last-minute fares climbed to Rs 62,000-82,000.

For passengers travelling from Delhi to Guwahati, the lowest fare was Rs 23,998, while the highest was Rs 35,015.
Going further, Minister said, "This ministry is continuously connected to the people and listens to the people, takes feedback from the people. And that has been the complete approach of this government." (ANI)