Ministry considering ₹20,000 cap on one-way domestic economy air fare

The fares for a one-way domestic flight in economy class will be capped at ₹20,000, if the Civil Aviation Ministry has its way.

The Ministry’s move comes after fares on a few sectors spiked recently following SpiceJet’s cancellation of some flights.

The Ministry has asked the Civil Aviation Secretary, V Somasundaran, to examine whether fares can be capped at ₹20,000.

Late last week, fares between Chennai and Madurai rose over three times, with a one-way economy class ticket costing ₹18,0000 against ₹5,000 earlier.

The Ministry has the right to intervene as fliers were being affected, a senior Ministry official said.

The Secretary will look at whether capping is correct and which body should ensure that the Ministry’s directive is adhered to, the official added. A decision is expected within a month and the Ministry is proposing that the licence of any carrier that continuously breaches the fare cap be suspended.

But the move has divided the industry. A senior official of an airline termed it “crazy”, while another airline official said it was keep unscrupulous elements in check. “If the one-way domestic fare ceiling in economy is capped at ₹20,000 it is fair. Most domestic airlines have low fares and rarely touch ₹20,000.

On a 1,500-km flight between Chennai and Kolkata the fares during the peak season are around ₹15,000-20,000 while during the off season they hover at ₹12-14,000.

On an all-India basis, fares touch ₹20,000 only two-three days a year,” the official said.

The move comes as the Ministry has been facing severe criticism from various quarters, including Members of Parliament, tour operators and passengers, on the steep rise in air fares.