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IndiGo fiasco: Government imposes airfare caps to reduce the high-priced tickets

The airfares in India are regulated by the market forces, but the government intervened this time to regulate the prices if any companies in the mentioned sector face a major disruption.

By Shaptadeep Saha

Dec 06, 2025 22:48 IST

Air travel in India has turned into a game of riches as the fare for the fastest means of transport has been skyrocketing due to the widespread disruption in IndiGo’s flight operations. The government has stepped in to regulate the non-business class fares for the flights by setting fare caps. The Ministry of Civil Aviation has made use of its regulatory powers to provide fair and reasonable prices for air tickets across all the affected routes to protect the passengers using the fastest means of transport from any sort of opportunistic pricing.

How will the government intervene to help passengers?

According to The Indian Express, the Ministry of Civil Aviation mentioned, “An official directive has been issued to all airlines mandating strict adherence to the fare caps that have now been prescribed. These caps will remain in force until the situation fully stabilises. The objective of this directive is to maintain pricing discipline in the market, prevent any exploitation of passengers in distress, and ensure that citizens who urgently need to travel, including senior citizens, students, and patients, are not subjected to financial hardship during this period.” The Ministry of Civil Aviation also assured the passengers that they will be free from any kind of opportunistic pricing.

Also Read| Air India breaks silence on skyrocketing fares; says prices capped since December 4

What are the fare caps?

The MoCA issued a directive that sets the benchmark of airfares based on the distance of travel. The MoCa has set Rs 7,500 for a stage distance of up to 500 km, Rs 12,000 for a distance of 500 to 1,000 km, Rs 15,000 for a distance of up to 1,000 to 1,500 km, and Rs 18,000 for a distance over 1,500 km. These caps will be outside of airport levies and taxes. These farecaps do not pertain to business class fares or flights operated under the regional connectivity scheme. The fare limits will stay relevant for travel until fares stabilise or till further review.

Also Read| IndiGo Crisis: What rights do you possess if your flight is postponed or cancelled?

The fares for the fastest means of transport are decided by the market forces, but the government had to intervene in the middle of a fiasco, regulating fares because of major disruption hitting the sector. IndiGo holds over 60 per cent of the domestic market share. The flights being cancelled have led to people in the middle of a serious crisis across the country. The passengers are left stranded, crying for help, and harassed at the airport. They are getting welcomed by a poster stuck on the flights being cancelled; many of those visuals are being circulated and criticised on social media. The common man is the one suffering the most. Some who wanted to come home for the holidays are still in the waiting lounge, finding hope of return, and some who had emergency engagements are forced to wait or postpone their business as they are left with no way to reach their destination at the planned time.


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