Air India has started updating its economy ticket prices to reflect the new fare limits set by the Ministry of Civil Aviation (MoCA) on December 6. The order was issued after the government noticed an “unreasonable surge” in the airfares amid the IndiGo fiasco stemming from the rostering rules introduced by the Directorate General of Civil Aviation (DGCA). 

According to an official statement, Air India Express has already fully adopted the revised fare structure across its booking platforms. Air India said it is currently rolling out the capped fares in phases and expects the changes to be fully implemented within a few hours.

Air India begins phased roll-out of new ticket fares

“In compliance with the Ministry of Civil Aviation’s (MoCA) directive issued on the evening of 6 December regarding the capping of Economy Class base fares, Air India Group commenced the rollout of the new prescribed fares across its reservation systems immediately,” Air India said in a post on X (formerly Twitter) that carries the hashtag “Important Update”. 

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It added, “Air India Express completed the implementation across its systems, while Air India continues to progressively apply the fare caps, which will be fully effective in the next few hours. As the process involves third-party system dependencies, a phased rollout is required to ensure accuracy and stability without disrupting guest bookings.”

The airline stated that anyone who booked tickets during the transition and paid above the capped base fare will receive a refund for the difference. “Guests who may have booked Air India flights in Economy Class during the transition period, at base fares above the prescribed caps, are entitled to refunds of the differential amounts,” it went on to say.

MoCA regulates airfare amid IndiGo crisis 

The order dated December 6 states that airlines can only charge a certain amount for economy class tickets. The highest base fare allowed is Rs 7,500 for flights 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 flights longer than 1,500 km.

These prices are only for the base fare and do not include extra charges like UDF, PS, or taxes. The rules also do not apply to business class tickets or UDAN flights.

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“The fare limits are applicable for travel until the fares stabilise or till further review. These fare limits shall be applicable for all forms of bookings, regardless of whether the purchase is made directly through the airline’s official website or through various online travel agents’ platforms. The airlines shall maintain air ticket availability across all buckets for travel, and if need be, consider capacity enhancement on sectors characterised by a surge in demand,” a part of the order read. 

It added, “The airlines shall avoid steep or unusual upward fare revisions on sectors affected by cancellations. The airlines shall extend maximum possible support to affected passengers, including alternate flight options where feasible.”

MoCA said that the directive was issued to maintain pricing discipline in the market, prevent 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 “opportunistic pricing”. 

A press release by MoCA read, “The Ministry will continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms,” adding that any deviation would draw “immediate coercive action” for the violators.