The central government is likely to keep the airfare cap on domestic flights intact until March as a precaution to ensure airfares don’t skyrocket due to operational disruptions in the coming weeks, multiple officials aware of the ongoing discussions told Fe.
“Once the operational stability is established in the domestic aviation ecosystem, airfare caps will be lifted. The next test of operational stability will be the period after February 10th, when the exemptions granted to IndiGo end,” a senior government official said.
He added that the government will likely meet in the third week of February and take a call on the airfare caps on domestic flights.
The Directorate General of Civil Aviation (DGCA) had granted IndiGo exemptions from night duty restrictions, including the cap on two landings, until February 10, after the airline admitted to the government that it had underestimated the increased crew requirements under the new pilot rest duty norms and and acknowledged “planning gaps” in its operations for the rules that came into effect on November 1.
Another senior government official stated that before lifting the airfare caps on domestic flights, it’s important to consider the summer schedule plans of airlines. He added that these plans will be submitted to the Directorate General of Civil Aviation for approval by the end of February.
“If airlines plan to increase flight operations in the 2026 Summer Schedule, which starts on the last Sunday of March, airfare caps on domestic flights will likely be needed to ensure price stability, given the disruptions seen in November and December,” the second official said.
Govts Dec order to IndiGo
The government had in December ordered IndiGo to reduce its schedule by at least 10 per cent following network-wide disruptions at the country’s largest airline, which led to scores of flights cancellations on a daily basis since the middle of last week.
IndiGo is the largest airline in India, holding nearly 65 percent of the domestic market share. The airline used to operate more than 2,300 flights daily, with around 2,150 of those being domestic. After the 10 percent reduction in domestic flights, the number of daily scheduled domestic flights fell to around 1,950.
IndiGo forced to vacate around 717 flight slots
As part of the network reduction, IndiGo was also forced to vacate around 717 flight slots across domestic airports. Of the 717 slots vacated by IndiGo, 364 are concentrated at six major metro airports—Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad.
Slots are designated time periods given to airlines for landing and taking off at an airport. These slots are especially important at busy airports, where limited space on runways and at terminals means there’s a cap on the number of flights during peak times.
The Ministry of Civil Aviation in December had also imposed a distance-based temporary fare cap following widespread disruptions at IndiGo, citing it as an example of intervention triggered by extraordinary circumstances. MoCA had invoked its regulatory powers “to ensure fair and reasonable fares across all affected routes” and protect passengers from “any form of opportunistic pricing”.
Under the current cap, the maximum fare limit has been fixed according to distance. This does not include User Development Fee, Passenger Service Fee, and Taxes. The airfare caps are: Rs 7,500 for a stage length of up to 500 km, Rs 12,000 for 500-1,000 km, Rs 15,000 for 1,000-1,500 km, and Rs 18,000 for over 1,500 km.