New Delhi, December 8, 2025 – In a sharp yet approving commentary on the government's swift intervention in the aviation sector, senior Congress leader and former Finance Minister P Chidambaram on Sunday hailed the Ministry of Civil Aviation's (MoCA) decision to cap economy class airfares, remarking that "the ministry has finally woken up."
Chidambaram's statement comes amid a severe operational meltdown at IndiGo, India's largest airline, which led to nearly 800 flight cancellations on Friday, December 5, stranding thousands of passengers and triggering a sharp surge in ticket prices across key domestic routes. The disruptions, attributed to a combination of technological glitches, airport congestion, and stringent flight duty time limitation (FDTL) rules, exposed vulnerabilities in the country's duopolistic airline market dominated by IndiGo and Air India.
The MoCA announced the fare cap on December 5, formalizing it through a two-page order issued the following day. Under the new measures, economy class fares on major routes have been frozen at pre-crisis levels to prevent exploitative pricing amid reduced flight availability. Additionally, the ministry has temporarily suspended the rollout of updated FDTL regulations—originally notified in January 2024—to allow airlines more flexibility in crew scheduling and avert further cancellations.
In a post on X (formerly Twitter), Chidambaram expressed cautious optimism, writing: "I am glad that the Ministry of Civil Aviation has woken up at last and capped the Economy Class fares. As long the duopoly in the airline sector remains, caps on Economy Class fares must remain in force. Absent robust competition, the only way to protect public interest is price containment. The overwhelming majority of the passengers must be protected." He underscored the need for sustained price controls, arguing that without genuine market competition, consumers remain at the mercy of a handful of operators.
This endorsement marks a rare bipartisan note in what has been a politically charged crisis. Just days earlier, Chidambaram had lambasted the government, describing the IndiGo breakdown and ensuing airport chaos as a "massive failure" of the airline's management, MoCA, the Directorate General of Civil Aviation (DGCA), and the central administration at large. He accused regulators of being "clueless and helpless" for failing to prepare IndiGo for the FDTL norms over the past 23 months.
IndiGo, which commands over 60% of the domestic market, has been scrambling to restore normalcy. On Saturday, it operated approximately 1,500 flights, up from the previous day's curtailed schedule, and by Sunday, it managed 1,650 out of 2,300 planned domestic and international services, with around 650 flights still axed. The airline issued a statement defending its board's proactive oversight and affirmed its commitment to minimizing passenger inconvenience, citing "operational requirements" for the cancellations.
Union Minister of State for Civil Aviation Murlidhar Mohol echoed passenger frustrations, labeling the disruptions as a source of "mental harassment" and vowing stricter enforcement of service standards. Industry watchers say the episode highlights deeper structural issues, including over-reliance on a single carrier and inadequate contingency planning for high-traffic winter seasons.
As IndiGo's recovery continues, the fare cap is expected to provide immediate relief to budget-conscious travelers, particularly on high-demand routes like Delhi-Mumbai and Bengaluru-Chennai. However, Chidambaram's call for long-term reforms signals ongoing scrutiny of the sector's oligopolistic tendencies, with calls growing for antitrust measures to foster new entrants and break the duopoly's grip.
The government's move has been welcomed by consumer advocates, though airlines have privately expressed concerns over profitability. With the holiday travel rush underway, all eyes remain on whether the caps will hold steady or evolve into permanent safeguards.
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