Can't Cap Airfares For Entire Year, Says Civil Aviation Minister K Ram Mohan Naidu Amid Indigo Crisis

(MENAFN- Live Mint) As IndiGo continues to grapple with operational disruptions, Union Civil Aviation Minister K Ram Mohan Naidu on Friday told the Lok Sabha that while the government can intervene to impose caps on airfares during extraordinary circumstances, as seen in the recent IndiGo meltdown, it cannot cap airfares for the entire year, as ticket prices typically rise during the festive season.

Naidu made the comments in the Lok Sabha while speaking during a debate on a resolution calling for measures to regulate airfare in the country.

His remark comes as crisis-hit IndiGo continues to grapple with disruptions and is under immense scrutiny after massive flight cancellations that spiralled into the eleventh day on Friday, 12 December.

“It is not that I can cap the fare for an entire season to a certain sector,” said Naidu, stating that market demand and supply are essential in regulating fares. He said that '40–45% of the ticket price flyers pay' goes for aviation turbine fuel (ATF).

On 6 December, the Aviation Ministry had18,000"> directed capping of domestic airfares at ₹18,000 (excluding service fee and taxes), with immediate effect and would be applicable until fares stabilise or till further review.

'IndiGo being held accountable'

The civil aviation minister further said that IndiGo is being held accountable, adding that refunds are being made for flights cancelled between 5 and 15 December.

Speaking at the Winter Session of Parliament, Naidu also claimed that a deregulated market has helped passengers.“The idea behind deregulation, when it was introduced, was to allow the sector to grow. All countries that have seen exceptional growth had deregulated markets. Deregulation opens up the market for more players to come in, and it encourages competition," he said.

Citing instances such as the Covid-19 pandemic, Prayagraj Mahakumbh, Pahalgam attack and the recent IndiGo crisis as examples when the government stepped in to curb soaring airfares, Naidu said that airfares majorly rise during the festive season.

Earlier, the Directorate General of Civil Aviation (DGCA) issued a show-cause notice to IndiGo CEO Pieter Elbers following widespread cancellations.

IndiGo under scrutiny

– On Wednesday, IndiGo Chairman Vikram Singh Mehta addressed the wave of allegations surrounding the disruptions. He dismissed claims that the airline had 'engineered the crisis' or attempted to 'influence government rules', calling them entirely false.

– The DGCA summoned CEO Pieter Elbers again on Friday. He had already appeared before the watchdog earlier.

- The DGCA has set up an Oversight Team to monitor the airline's operations. It also directed two officers to be permanently stationed at IndiGo's Corporate Office in Gurgaon for continuous supervision.

MENAFN12122025007365015876ID1110472813