Indian Aviation Minister Naidu urges airfare caps in extraordinary situations

Indian Union Aviation Minister Ram Mohan Naidu recently underscored the critical need to cap airfares, confirming that the government has engaged in discussions with airlines on this matter. Speaking in Lok Sabha, Naidu clarified that while India operates a deregulated aviation market, the government maintains statutory authority under the Aircraft Act to intervene and impose fare caps during "extraordinary circumstances" when prices become abnormally high. This proactive stance aims to protect consumers from exploitative pricing during crises. The Minister's statement follows a period of significant public concern, particularly exacerbated by widespread flight cancellations by IndiGo across India. These disruptions led to a dramatic surge in airfares on several key domestic routes, with last-minute bookings reaching unprecedented levels as passengers sought alternative travel options. For instance, booking data from MakeMyTrip revealed that a Delhi-Bengaluru flight on December 6 could cost over Rs 40,000, with some options exceeding Rs 80,000. Similarly, a Delhi-Mumbai flight on the same day was priced at a minimum of Rs 36,107, soaring past Rs 56,000 for maximum options. Further examples of fare inflation included the Delhi-Chennai route, where last-minute tickets climbed to between Rs 62,000 and Rs 82,000, and Delhi-Guwahati, which saw fares range from Rs 23,998 to Rs 35,015. The Indian government has historically exercised its power to cap airfares in various past crises, including during the Covid-19 pandemic, the Mahakumbh pilgrimage, and the Pahalgam-Srinagar crisis, demonstrating a precedent for such interventions. Naidu affirmed the ministry's commitment to continuous public engagement and feedback, reinforcing a responsive approach to aviation sector challenges.