The Ministry of Civil Aviation (MoCA) has issued a stern directive to all domestic airlines, including IndiGo, instructing them to maintain "reasonable" airfares following a significant surge in prices, particularly on routes affected by operational crises or maintenance issues. The government has warned that failure to comply with fair pricing norms could lead to strict action.
The directive comes in the wake of recent operational disruptions faced by major carriers, most notably the IndiGo crisis, where a high number of aircraft groundings for engine maintenance led to severe flight cancellations and consequent fare hikes across the industry.
Skyrocketing Fares Prompt Government Intervention
The government noted that airfares on certain routes had seen an unjustified spike, particularly where competition was reduced due to flight cancellations. This predatory pricing during times of reduced capacity drew sharp criticism from passengers and consumer groups.
- The Mandate: The MoCA has explicitly told airlines that pricing must remain dynamic but fair. They must avoid charging exorbitant prices during disruptions or emergencies.
- Capacity Crunch: The operational crisis at IndiGo, caused primarily by Pratt & Whitney engine issues requiring grounding of a large portion of their fleet for inspection and replacement, led to an acute capacity crunch across the Indian aviation sector.
- Warning of Action: The Ministry emphasized that it is closely monitoring the pricing mechanism and is prepared to take necessary regulatory action against any airline found exploiting the current situation by charging excessively high fares.
Focus on Consumer Protection
The government’s intervention aims to prioritize consumer protection and ensure that air travel remains accessible and affordable even during industry-wide challenges. Airlines have been advised to be transparent about their pricing structure and implement measures to prevent price gouging on high-demand sectors.
This move signals a clear intent from the Centre to regulate market behavior in the aviation sector when passenger interests are compromised due to market manipulation or external crises.
