Air India caps economy fares on non-stop domestic flights since December 4

Economic Times
Economic Times
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Air India has capped economy class fares on non-stop domestic flights to prevent sudden price hikes. This decision comes amid significant disruptions in IndiGo's operations.
Air India caps economy fares on non-stop domestic flights since December 4
A What happened
On December 4, Air India announced a cap on economy class fares for non-stop domestic flights to shield passengers from sudden price hikes often triggered by automated revenue management systems. The airline acknowledged that while it cannot control all pricing variations on third-party platforms, it is working to address these issues. Concurrently, IndiGo Airlines experienced significant operational challenges, resulting in the cancellation of over 100 flights, which left many passengers stranded at various airports across India. Major hubs like Hyderabad and Delhi reported numerous cancellations. In response, the Ministry of Civil Aviation directed IndiGo to expedite the processing of refunds for affected passengers and prohibited any rescheduling charges. The Ministry emphasized the need for timely compliance to avoid regulatory actions.

Key insights

  • 1

    Fare Cap Implementation

    Air India aims to stabilize economy fares on domestic flights.

  • 2

    IndiGo Flight Disruptions

    Over 100 IndiGo flights were canceled, stranding many passengers.

  • 3

    Regulatory Actions

    Ministry of Civil Aviation mandates refunds and prohibits rescheduling fees.

Takeaways

Air India's fare cap is a proactive measure to protect passengers, while IndiGo's operational issues highlight the challenges in the airline industry. Regulatory oversight aims to ensure passenger rights are upheld.

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