India’s Aviation Minister Addresses Airfare Regulation Amid IndiGo Operational Crisis

Union Civil Aviation Minister K. Ram Mohan Naidu addressed the Lok Sabha on Friday. He spoke about regulating airfares during ongoing industry disruptions. His remarks come as IndiGo faces intense scrutiny over mass flight cancellations.The minister stated the government can impose temporary fare caps during extraordinary situations. However, he clarified it cannot cap prices for an entire year. Market forces of demand and supply must play a role, especially during peak travel seasons.

Government Cites Limited Scope for Permanent Fare Control

Minister Naidu explained the rationale behind the current policy. A fully deregulated market encourages growth and competition, he argued. This model has historically helped passengers by allowing more airlines to enter the sector.The government has intervened during specific crises. Examples include the COVID-19 pandemic and the recent IndiGo operational meltdown. In early December, the ministry temporarily capped certain domestic fares at ₹18,000.

IndiGo Held Accountable for Widespread Disruptions

The minister confirmed IndiGo is being held responsible for recent failures. He stated refunds are being processed for flights cancelled between December 5 and 15. The Directorate General of Civil Aviation (DGCA) has taken direct action.According to Reuters, the DGCA issued a show-cause notice to IndiGo CEO Pieter Elbers. The regulator also established a permanent oversight team at the airline’s headquarters. This team will monitor operations continuously to prevent further passenger distress.The airline’s chairman has publicly denied allegations of engineering the crisis. He dismissed claims the disruptions were an attempt to influence government policy. Operational recovery efforts are reportedly ongoing.

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The government’s stance clarifies its role in market regulation. Temporary airfare regulation is a tool for consumer protection during crises. A long-term solution requires balancing passenger rights with a healthy, competitive aviation sector.

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Q1: Can the government cap airfares all year round?

No, according to the aviation minister. The government can impose temporary caps during specific crises. Year-round price fixing would interfere with normal market operations.

Q2: What triggered the latest discussion on fare regulation?

The debate was prompted by massive flight cancellations by IndiGo. This operational crisis left thousands of passengers stranded and caused fares on other airlines to surge.

Q3: What is the current temporary fare cap?

In early December, the ministry capped certain domestic fares at ₹18,000, excluding fees and taxes. This measure is intended to remain until fares stabilize.

Q4: How is IndiGo being held accountable?

The DGCA has summoned the airline’s CEO and stationed a permanent oversight team at its office. The airline is mandated to provide full refunds for cancellations during the affected period.

Q5: Why does airfare spike during festivals?

Fares rise due to simple demand and supply. Many more people want to travel during holidays, while the number of available seats remains relatively fixed.

Q6: What portion of a ticket price is fuel cost?

The minister noted that aviation turbine fuel constitutes 40-45% of a ticket’s price. This significant portion makes fares highly sensitive to global fuel price changes.