NEW DELHI, Dec 7: The Indian government on Saturday invoked regulatory powers and announced a cap on fares to control the rising airline ticket prices, amid IndiGo's chaos that resulted in mass flight cancellations and skyrocketing airfares.
The federal civil aviation ministry issued a directive to all airlines mandating strict adherence to all fare caps that it has prescribed to protect passengers from any form of willful pricing.
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The ministry said it will continue to closely monitor fare levels through real-time data and active coordination with airlines and online travel platforms.
In a separate statement, the ministry said it has directed IndiGo, the largest airline in the country, to clear all passenger refunds without delay.
The operational crisis at IndiGo was caused by a shortage of pilots and flight crew in view of the new Flight Duty Time Limitations (FDTL) rules that mandated longer rest periods for the staff. IndiGo has admitted to misjudging the number of pilots it needed under new FDTL rules.
The Indian government has ordered an investigation into IndiGo's "mismanagement" and said a committee has been constituted to determine responsibility for the breakdown.
