On Monday, Air India announced the initiation of new fare structures, adhering to a directive from the government mandating all airlines to oversee their flight ticket pricing. This government order was prompted by observations of airlines imposing exorbitant charges for flights, particularly following the mass cancellations of numerous IndiGo flights in recent days.
In a statement released shortly after midnight, Air India indicated that while Air India Express has successfully implemented the revised fares across its systems, Air India itself would be instituting the fare caps within the next few hours.
The statement noted, “Given that the process involves dependencies on third-party systems, a phased rollout is necessary to guarantee accuracy and stability without disrupting guest bookings.”
In addition to capping its flight ticket prices, the airline has also declared that passengers who have previously booked Air India flights in Economy Class during this transitional phase at prices exceeding the established caps are eligible for a refund of the difference.
IndiGo has been experiencing flight disruptions for six consecutive days, with cancellations exceeding 1,000 as of Friday. As stranded passengers hurried to secure alternative flights, they encountered a significant increase in airfares from other airlines, including Akasa Air, Air India, and SpiceJet.
In light of the rising airfares exacerbating passenger difficulties, the civil aviation ministry exercised its regulatory authority, issuing an official directive to all airlines to monitor their airfares.
The ministry stated in a press release on Saturday, “These caps will remain in effect until the situation is fully stabilized. The aim of this directive is to uphold pricing discipline in the market, prevent any exploitation of distressed passengers, and ensure that citizens who urgently need to travel — including senior citizens, students, and patients — are not subjected to financial strain during this period.”
In the meantime, IndiGo’s operations are gradually stabilizing as the number of cancellations decreased on Sunday. Furthermore, in accordance with government directives, the airline has processed refunds totaling over ₹610 crore to all passengers impacted.
