Air India on Monday announced that it has initiated the rollout of new fare structures in full compliance with a directive issued by the Government of India, requiring all scheduled airlines to closely monitor and moderate their flight ticket prices. The government’s intervention came in response to widespread complaints of exorbitantly high airfares charged by several carriers following a spate of mass cancellations on IndiGo flights over the preceding days.
In a statement released shortly after midnight, Air India confirmed that its low-cost subsidiary, Air India Express, has already completed the implementation of the revised fare caps across all its booking systems. The full-service carrier Air India stated that it would follow suit and apply the prescribed fare ceilings across its network within 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 explained in its official statement.
In addition to imposing the new fare caps, Air India has gone a step further by announcing relief measures for passengers who had already purchased tickets during the ongoing transition period. Any passenger who booked an Air India Economy Class ticket at a price exceeding the newly prescribed caps will be eligible for an automatic refund of the excess amount paid.
IndiGo, the country’s largest domestic carrier, has been grappling with severe operational disruptions for the past six days, with the number of cancelled flights surpassing 1,000 on Friday alone. As thousands of stranded passengers scrambled to secure seats on alternative carriers such as Akasa Air, Air India, and SpiceJet, they encountered sharp surges in ticket prices across the board.
Also Read: IndiGo refunded ₹610 cr so far; delivered 3,000 baggages
The sudden spike in airfares compounded the distress of affected travellers, prompting the Ministry of Civil Aviation to invoke its regulatory authority and issue a formal directive to all airlines to keep their pricing in check.
“These caps will remain in force until the situation fully stabilises. The objective of this directive is to maintain pricing discipline in the market, prevent any 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 this period,” the ministry stated in its press release issued on Saturday.
Meanwhile, there are signs of gradual recovery in IndiGo’s operations, with the daily tally of cancellations showing a decline on Sunday. In line with the government’s instructions, IndiGo has already processed and issued refunds amounting to more than ₹610 crore to all passengers impacted by the cancellations.
Also Read: IndiGo flight delays to continue today at Delhi airport
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