Air India Implements Economy Fare Cap on Domestic Flights Amid Industry Disruptions

Air India has announced that they have implemented a proactive cap on economy class fares for all non-stop domestic flights effective December 4. This measure aims to protect travelers from unexpected price increases that typically occur through automated revenue management systems during high demand periods.

The airline addressed concerns regarding expensive multi-stop or mixed-class fares appearing on third-party booking platforms, acknowledging that while they cannot fully regulate all such combinations, they are actively collaborating with these platforms to improve oversight of pricing displays.

In an official statement shared on X, the Air India Spokesperson explained: "Air India & Air India Express clarify 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."

The statement further indicated that "Air India and Air India Express are seeking to add capacity to help travellers and their baggage reach their destinations as quickly as possible."

This announcement comes amid significant operational challenges in India's aviation sector. IndiGo, one of the country's largest carriers, continues to experience severe disruptions, with over 100 flights canceled on Saturday alone. This has resulted in thousands of passengers being stranded at major airports including Mumbai, Hyderabad, and Guwahati.

According to airport data, Hyderabad Airport reported 69 planned cancellations, with 26 arrivals and 43 departures affected. Delhi Airport saw 86 IndiGo flight cancellations, comprising 37 departures and 49 arrivals. Ahmedabad Airport also faced significant disruptions with 35 departures and 24 arrivals listed as canceled. At Kolkata Airport, out of 175 scheduled flights, 41 were canceled, with only 36 actual movements recorded by 9:00 AM.

In response to the ongoing crisis, the Ministry of Civil Aviation (MoCA) has directed IndiGo Airlines to process all pending passenger refunds expeditiously. The Ministry has mandated that the refund process for all canceled or disrupted flights must be completed by 8:00 PM on December 7. Additionally, airlines have been instructed not to impose rescheduling charges for affected passengers, with the Ministry warning that any non-compliance will trigger immediate regulatory action.

Air India's fare cap initiative represents a significant step in addressing fare volatility during this period of operational uncertainty in the Indian aviation market.