Government Acts After IndiGo Crisis, Brings In Temporary Cap On Domestic Ticket Prices

IndiGo

The Indian aviation sector is currently facing significant challenges. Recently, IndiGo, the country’s leading airline, has had to cancel over 1,600 flights because of a pilot shortage. This situation arose after the airline did not properly prepare for new regulations that limit pilots’ working hours. As a result, countless passengers find themselves stranded at airports, particularly in major cities like Bangalore, Mumbai, and Delhi.

In light of these cancellations, other airlines such as Air India and SpiceJet seized the opportunity to raise ticket prices. For example, a one-way ticket from Delhi to Bangalore soared to INR 1 lakh, while a flight from Bangalore to Mumbai was priced at INR 52,000. To protect passengers from these exorbitant fares and prevent airlines from taking advantage of the crisis, the government has intervened by imposing temporary fare caps on domestic flights following the chaos caused by IndiGo’s operational issues.

Amid IndiGo Crisis, Capped Fares Are Set At INR 7,500 For Routes Up To 500Km

The government announced that airlines could not charge above certain limits for different flight distances. These capped fares are set at:

– INR 7,500 for routes up to 500 km
– INR 12,000 for 500–1,000 km
– INR 15,000 for 1,000–1,500 km
– INR 18,000 for routes exceeding 1,500 km

These caps do not include additional fees and do not apply to Business Class or certain subsidized flights.

Indigo Airline

This policy, effective immediately, has been approved by the relevant authorities. The Directorate General of Civil Aviation (DGCA) has been tasked with overseeing pricing on these routes to ensure fairness and prevent excessive charges during this ongoing crisis. Airlines are also required to keep ticket availability at different price levels and enhance capacity on busy routes, ensuring they support affected travelers whenever possible.

Furthermore, IndiGo announced that it has processed refunds totaling INR 610 crore for cancelled or significantly delayed flights and returned 3,000 pieces of luggage to passengers nationwide as of 6th December, Saturday. This action follows a request from the Ministry of Civil Aviation for the airline to complete refunds and baggage deliveries by 8 PM on December 7, Sunday.

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