Expert demands airfare limits, warns of duopoly's impact on prices

Aviation expert Sanat Kaul calls for fare caps to counter a 'duopoly' in India's airline sector, warning of excessive prices. He urges the DGCA to use its authority to set upper and lower limits on fares to protect the public interest.

Expert Calls for Airfare Regulation Amid Duopoly Concerns

Aviation expert Sanat Kaul on Monday called for stricter curbs on domestic airfare, suggesting that the regulatory body should step in to decide on an upper and lower limit to fares in public interest. He highlighted that a 'duopoly' in the sector could lead to increasing fares. "There should be a discussion on the issue of putting lower and upper limits on fares. There should be a regulatory body to control fares. We want competition in the sector, but when there is a duopoly and in public interest, then it has to be seen that excessive fares are not demanded," Kaul told ANI.

He highlighted that the DGCA has the authority to curb airfares when they spike excessively and stressed that it should actively use these powers in the public interest. Referring to the recent IndiGo-related issues, he said the situation has once again exposed the duopoly in India's airline sector, raising concerns about limited competition and pricing control.

He emphasised the need to rethink current regulatory approaches to ensure passengers are not unfairly burdened, adding that a dedicated public grievance commission or tribunal for air travellers is necessary, as cases in consumer courts often take years to resolve.

Government Withdraws Temporary Fare Caps

The Ministry of Civil Aviation has decided to withdraw the temporary fare caps on domestic airfares starting Monday (March 23). The decision marks the end of a price-control regime that the government initiated several months ago to manage volatility in the aviation market. The Ministry confirmed the development through an official order, noting that the restrictions on ticket pricing are no longer required under the current operating environment.

"Whereas, vide letter dated 6th December 2025, the Ministry had introduced a temporary fare cap on domestic airfares with a view to contain abnormal surge in ticket prices arising out of large-scale flight disruptions of IndiGo, and with an objective to safeguard passenger interests and ensure affordability during a period of constrained capacity," the Ministry of Civil Aviation stated.

In the official communication, the Ministry observed that the "prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector." Based on this assessment, the government determined that the fare cap imposed in December "shall stand withdrawn with effect from 23rd March, 2026." This move allows airlines to once again determine ticket prices based on market demand and supply dynamics.

Despite the deregulation, the Ministry issued a clear directive to carriers regarding their pricing strategies. "While withdrawing the fare cap, it is reiterated that airlines are required to exercise pricing discipline and act responsibly. Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted," it said. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)