Chaos engulfed India's air traffic over the past week, primarily due to disruptions from the IndiGo airline. Thousands of passengers faced enormous challenges as IndiGo flights were consistently canceled or delayed. In response, the government took the significant step of imposing a cap on airfares.
Former Finance Minister and Congress leader P Chidambaram welcomed this decision, emphasizing that while the ministry has ultimately awakened, this regulation must persist till a duopoly’s dominance in the airline sector is evident.
Chidambaram argued that fare control is the sole refuge for safeguarding the public when competition wanes. He stressed it’s the government's duty to shield the majority of passengers, who travel economy class, from unchecked fare hikes.
He also criticized that the chaos, including IndiGo's massive flight cancellations and the ensuing airport turmoil, is not solely the airline’s fault. Instead, it signifies a considerable failure on the ministry’s, DGCA's, and the entire government system's part.
This also highlights: The IndiGo Crisis Severely impacts Its Shares, Declining More in 5 Days Than in the Past 6 Months
According to Chidambaram, the new FDTL regulations were notified in January 2024, yet for nearly 23 months, the government failed to guide the airline in adapting operations accordingly.
Meanwhile, the government has temporarily suspended the implementation of the new FDTL rules as of Friday. The airfare capping directive mentioned that the operational crisis at IndiGo resulted in reduced capacity, leading to unwarranted surges in fares across several routes.
On Saturday, IndiGo operated 1500 flights, with 1650 flights running on Sunday, although 650 flights remain canceled.
