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Expert Urges Fare Caps as India Lifts Air Ticket Price Controls

Aviation expert Sanat Kaul has called for stronger, permanent regulations on domestic airfares, including upper and lower limits, to protect passenger interests. His comments come as the Ministry of Civil Aviation officially withdraws temporary fare caps imposed in December 2025 following the stabilisation of the market. Kaul highlighted concerns that a duopoly in the sector could lead to excessive pricing and stressed that the DGCA should actively use its powers to curb fare spikes. He also emphasised the need for a dedicated grievance commission for air travellers, as consumer court cases are often protracted.

Key Points: India Ends Domestic Airfare Caps, Expert Calls for Regulation

  • Fare caps withdrawn after market stabilised
  • Expert warns of pricing duopoly
  • Call for permanent regulatory body on fares
  • Need for faster passenger grievance redressal
3 min read

Aviation expert Sanat Kaul calls for stronger regulations on air fares

Aviation expert Sanat Kaul advocates for permanent fare limits as the government withdraws temporary price caps, warning of a duopoly.

"We want competition... but when there is a duopoly and in public interest, then it has to be seen that excessive fares are not demanded. - Sanat Kaul"

New Delhi, March 23

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.

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.

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

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Reader Comments

R
Rohit P
While I understand the concern about fares, removing the cap might be good in the long run. More competition will come. If we over-regulate, new airlines won't enter the market. Let's see how it plays out. The real issue is the duopoly of IndiGo and Air India group.
A
Aman W
Mr. Kaul is spot on about the grievance commission. My father had a flight cancellation issue 2 years ago, and the consumer court case is still pending! A dedicated, fast-track tribunal for air travellers is a brilliant idea. Fares are one thing, but service accountability is another. 👍
S
Sarah B
As a frequent traveller for work, I see both sides. Dynamic pricing helps get cheap last-minute tickets sometimes. But the spikes during festivals or crises are insane. Maybe instead of a permanent cap, the DGCA should have a clear, automatic trigger mechanism for temporary controls.
V
Vikram M
The withdrawal timing is suspicious. Just before the summer holiday season? Airlines will now charge whatever they want for Goa and Srinagar flights. The ministry says "act responsibly" but what is the penalty if they don't? This benefits corporations, not the public. 😒
K
Karthik V
We need more players, not more rules. The high cost of aviation fuel and airport charges in India are bigger problems. If the government fixes that, fares will come down naturally. Focus on the root cause, not just the symptom.

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