The Indian government has sought detailed airfare data from domestic airlines as part of an ongoing antitrust review focusing on pricing practices in the aviation sector. The move comes after widespread flight disruptions and sharp fare increases raised concerns over whether passengers were unfairly charged during a period of limited capacity.
What Data Has Been Sought
Aviation authorities have asked airlines to submit route-wise average fare data for economy and premium economy classes for a specific period in December. The information includes ticket prices charged across key domestic routes and is intended to help regulators understand pricing trends during a time of operational stress in the sector.
The request covers multiple airlines, not just one carrier, to allow for a comparative assessment of fare behaviour across the industry.
Why IndiGo Is Under Focus
The scrutiny is largely linked to operational disruptions that occurred after a large number of flights were cancelled over a short period. IndiGo, which holds the largest share of India’s domestic aviation market, had cancelled thousands of flights, leading to a sudden reduction in available seats.
This supply crunch resulted in sharp fare increases on several routes, prompting public backlash and intervention by authorities. Regulators are now examining whether the pricing during this period reflected normal market dynamics or potential misuse of market dominance.
Role Of Competition Authorities
The Competition Commission is reviewing whether airlines, particularly dominant players, may have engaged in unfair pricing practices during the disruption. Seeking fare data is a preliminary step to determine whether prices rose proportionately to demand and costs, or whether consumers were exploited due to reduced competition and limited alternatives.
If irregularities are found, the investigation could move into a formal enforcement phase.
Temporary Fare Controls And Policy Response
During the disruption, authorities had stepped in with temporary fare caps on select routes to protect passengers from excessive pricing. The current data request is part of a broader policy effort to ensure transparency, accountability, and fair competition in the aviation market.
Officials have indicated that the objective is not to penalise airlines arbitrarily, but to assess whether existing competition laws were adhered to during extraordinary circumstances.
What This Means For Airlines And Passengers
For airlines, the scrutiny signals increased regulatory oversight over pricing practices, especially during crises. For passengers, it reflects a stronger push by the government to ensure that fare spikes are justified and not exploitative.
The findings of this review could influence future rules on fare transparency, crisis pricing, and competition safeguards in the aviation sector.
