With airfares on some metro routes tripling overnight after IndiGo’s meltdown, the Ministry of Civil Aviation issued an unprecedented all-airline directive at dawn on 6 December: every carrier must file and follow fare buckets that respect the pre-defined ‘fare band’ ceilings first introduced during the Covid-19 era. The bands, which vary by stage length, had lain dormant since 2023 but were never formally withdrawn.
Civil Aviation Secretary Vumlunmang Vualnam said the order is temporary but ‘binding until normal seat supply returns’. The DGCA will scrape real-time fares daily and levy penalties—including route suspensions—on offenders. The ministry stressed that the rule applies to inventory distributed through global distribution systems as well as airline websites and OTAs, closing a loophole used in earlier crises.
![Government orders airlines to keep ticket prices within fare caps]()
Business-travel buyers welcomed the move; many reported spot quotes of Rs 40,000 (USD 480) for the 2-hour Delhi–Mumbai hop on 5 December. Travel-management companies say enforced caps cut that figure back to Rs 12-14k, preventing budget overruns in end-of-year travel sprees.
Airlines argue that rigid price ceilings hamper their ability to use dynamic pricing to fund recovery flights and crew repositioning. Yet consumer-protection groups note that corporate travellers can reclaim surge fares from employers, while families and SME passengers often cannot.
The ministry will review market conditions after 15 December. Analysts expect at least a fortnight of controlled pricing while IndiGo rebuilds its schedule and rival carriers up-gauge equipment to absorb displaced demand.
Civil Aviation Secretary Vumlunmang Vualnam said the order is temporary but ‘binding until normal seat supply returns’. The DGCA will scrape real-time fares daily and levy penalties—including route suspensions—on offenders. The ministry stressed that the rule applies to inventory distributed through global distribution systems as well as airline websites and OTAs, closing a loophole used in earlier crises.
Business-travel buyers welcomed the move; many reported spot quotes of Rs 40,000 (USD 480) for the 2-hour Delhi–Mumbai hop on 5 December. Travel-management companies say enforced caps cut that figure back to Rs 12-14k, preventing budget overruns in end-of-year travel sprees.
Airlines argue that rigid price ceilings hamper their ability to use dynamic pricing to fund recovery flights and crew repositioning. Yet consumer-protection groups note that corporate travellers can reclaim surge fares from employers, while families and SME passengers often cannot.
The ministry will review market conditions after 15 December. Analysts expect at least a fortnight of controlled pricing while IndiGo rebuilds its schedule and rival carriers up-gauge equipment to absorb displaced demand.
