Centre caps domestic airfares, IndiGo CEO faces exit

Centre caps domestic fares at ₹7,500–₹18,000 after IndiGo crisis. Govt orders refunds, warns CEO Peter Elbers, removal and fines likely

The central government has stepped in to control soaring domestic airfares, announcing a cap that takes effect immediately. The move comes amid widespread passenger outrage following mass flight cancellations by IndiGo and skyrocketing ticket prices across major routes.

Under the new rules, airlines cannot charge more than ₹7,500 for journeys up to 500 km, ₹12,000 for 500–1000 km, ₹15,000 for 1000–1500 km, and ₹18,000 for distances beyond 1500 km. These fares exclude user development fees (UDF), passenger service fees (PSF), and applicable taxes. The cap will not apply to business class tickets or flights under the UDAN regional connectivity scheme.

The intervention follows reports of Bengaluru–Delhi fares climbing to ₹39,000 and Delhi–Chennai tickets touching ₹65,000 after IndiGo’s cancellations disrupted schedules and pushed demand onto other carriers. To protect passengers, the government has directed IndiGo to refund ticket amounts for all canceled flights by Monday.

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Meanwhile, the crisis has intensified scrutiny of IndiGo’s leadership. CEO Peter Elbers, a foreign national, is under fire from the Prime Minister’s Office and aviation authorities. Officials allege negligence and poor planning under his watch, particularly during Russian President Vladimir Putin’s recent visit to India, when cancellations caused embarrassment at the national level.

Government sources indicate that IndiGo may be verbally instructed to remove Elbers from his position. A heavy penalty on the airline is also being considered. The developments mark one of the strongest interventions by the Centre in India’s aviation sector in recent years, reflecting its determination to safeguard passenger interests and restore stability in the skies.

With the cap in place, travelers are expected to see immediate relief from exorbitant fares, while IndiGo faces mounting pressure to overhaul operations and leadership

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