Civil aviation ministry imposes air fare caps to curb predatory pricing by airlines amid IndiGo crisis

/ 2 min read
Summary

Government will continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms, the ministry said

IndiGo CEO Pieter Elbers on Friday said the situation is likely to return to normal by December 15
IndiGo CEO Pieter Elbers on Friday said the situation is likely to return to normal by December 15 | Credits: Sanjay Rawat

Taking cognizance of predatory pricing by airlines amidst the ongoing IndiGo crisis, the union civil aviation ministry today imposed caps on airfares.

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“The ministry of civil aviation has taken serious note of concerns regarding unusually high airfares being charged by certain airlines during the ongoing disruption. In order to protect passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares across all affected routes,” the ministry said in a release short while ago.

“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 stabilizes,” it added.  

“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,” it said.

“The ministry will continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms. Any deviation from the prescribed norms will attract immediate corrective action in the larger public interest,” the release said.

It may be noted that the airlines were charging more than ten times the normal fare for one-way economy class air fares on majority routes yesterday, in a move aimed at profiteering from the the crisis triggered by IndiGo cancellations. This is despite a warning issued by civil aviation minister Kinjarapu Ram Mohan Naidu on Thursday during a review meeting with the IndiGo management.

Meanwhile, Naidu today said all airlines except IndiGo implemented the FDTL rules and stressed that the severe action will be taken against those found guilty in the government inquiry. The ministry has set up an inquiry into the incident with a clear cut intent to fix accountability on the disruptions.

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