Tuesday, 02 January 2024 12:17 GMT

India Caps Flight Fares After Other Airlines Quote Sky-High Prices Amid Indigo Crisis


(MENAFN- Khaleej Times)

India capped airline fares on Saturday as IndiGo cancelling hundreds of flights over five days led to a big jump in fares at other airlines on popular routes. Passengers forced to look for alternate flights at the last minute reported they were forced to pay exorbitant amounts just to be able to reach their desired destination without further delay.

The Indian government said it was capping fares to maintain pricing discipline in the market. The Ministry of Civil Aviation said in a statement, "In order to protect passengers from any form of opportunistic pricing, the Ministry has invoked its regulatory powers to ensure fair and reasonable fares across all affected routes.

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"An official directive has been issued to all airlines mandating strict adherence to the fare caps that have now been prescribed. These caps will remain in force until the situation fully stabilises."

"The Ministry will continue to closely monitor fare levels through real-time data and active coordination with airlines," they added.

Civil Aviation Minister Ram Mohan Naidu Kinjarapu shared the caps decided by the government:

How much are other airlines charging?

On Saturday (December 6) morning, travel booking platform MakeMyTrip showed a significant rise in airfares for trips between major Indian cities like Mumbai, Delhi and Bengaluru.

SpiceJet economy class flights from New Delhi to Bengaluru were priced from Rs63,000 (Dh2,572) to Rs84,000 (Dh3,429), while Air India flights (with one stop) from New Delhi to Hyderabad were about Rs62,000 (Dh2,531), almost 10 times more than fares on a regular weekday.

Flights from Mumbai to Delhi were at about Rs25,000 (Dh1,020) to Rs40,000 (Dh1,633). Lowest fares from Mumbai to Delhi are around Rs6,000 (Dh245) to Rs8,000 (Dh326) on a regular day.

Last-minute Delhi–Chennai tickets are showing in the Rs62,000-Rs82,000 range. A Delhi–Guwahati flight is priced between Rs23,998 and Rs35,015, according to an ANI report.

Outrage over surge in fares

The price surge added to the woes of passengers already hassled by IndiGo's cancellations. Some Indian celebs spoke up about their ordeal on social media.

Singer Rahul Vaidya said he had to shell out Rs420,000 (Dh17,148) for last-minute Air India tickets for himself and those travelling with him from Goa to Mumbai on Thursday. Actress Nia Sharma took to Instagram to reveal that she paid Rs54,000 (Dh2,204) for her domestic Air India flight ticket.

Others spoke up in support, slamming airlines for taking advantage of passengers' plight and called for a cap on prices. Actor Sonu Sood posted, "In a war or crisis, selling essentials at sky-high prices is blatant exploitation. The same applies when airlines hike fares 5-10x during regulatory or operational disruptions. Crisis isn't a licence to profiteer. We need strict fare caps - no more than 1.5-2x - to protect the common traveller."

Former Indian cricketer Harbhajan Singh posted on X, "It's concerning to see continued flight disruptions by IndiGo Airlines, causing inconvenience to passengers. The situation is worsened by rising fares on Air India, leaving travelers with limited, costly options. Immediate action is needed to ensure reliable service and fair pricing for all."

However, Air India and Air India Express issued a statement after the caps announced by the Ministry of Civil Aviation, clarifying that, since 4 December, economy class airfares on non-stop domestic flights have been "proactively capped" to prevent the usual demand-and-supply mechanism being applied by revenue management systems.

"We are aware of screenshots of last-minute itineraries with one-stop or two-stop flights or a combination of economy and premium economy or business cabins taken from third party platforms. It is not technically possible to cap all such permutations, but we are engaging such platforms to exercise oversight. Air India and Air India Express are seeking to add capacity to help travellers and their baggage reach their destinations as quickly as possible," their spokesperson said.

IndiGo crisis continues

Air travel across India has been in turmoil this week after IndiGo cancelled thousands of flights, prompting the government to announce special relief for the carrier and the operation of additional trains to help clear the backlog.

The flight cancellations are the biggest crisis ever for 20-year-old IndiGo, which has prided itself for on-time performance and lured passengers with low-cost fares.

On Friday, more than 1,000 IndiGo flights were cancelled. After the government announced the exemptions to the rules for IndiGo, the airline said it could return to normal operations between December 10-15.

The Delhi airport in a post on X on Saturday said flight operations are steadily resuming, but that some IndiGo flights continue to be affected.

Airport sources told Reuters that IndiGo cancelled 124 flights in Bengaluru on Saturday, 109 in Mumbai, 86 in New Delhi and 66 in Hyderabad.

Other major Indian airlines, including Air India and Akasa, have not had to cancel flights due to the new rules.

[With inputs from Reuters]

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Khaleej Times

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