Air India Responds Swiftly To MoCA’s Fare Control Measures, Introducing Phased Implementation Of Economy Class Fare Limits To Ensure Affordable Travel For All

Published on December 8, 2025

In a decisive move to address skyrocketing airfares, Air India has implemented new fare caps in response to the Ministry of Civil Aviation’s (MoCA) directive issued on December 6. The airline is rolling out a phased approach to adjust its economy class ticket prices, ensuring they align with the capped fare limits. This initiative aims to curb exploitative pricing practices in the industry, offering passengers a fairer and more transparent pricing structure while protecting travelers from excessive fare hikes during high-demand periods.

Air India has started revising its economy ticket prices to comply with new fare limits introduced by the Ministry of Civil Aviation (MoCA) on December 6. The government took this action after noticing an “unreasonable surge” in airfares, particularly during a disruption involving IndiGo. This disruption stemmed from changes in rostering rules imposed by the Directorate General of Civil Aviation (DGCA). In response, MoCA issued a directive to control ticket prices in an effort to ensure fair pricing practices in the airline industry.

In a recent announcement, Air India Express confirmed that it has already fully implemented the new fare structure across its booking platforms. Air India, on the other hand, has begun a phased rollout of the new capped fares, which it plans to complete within a few hours. The phased approach is necessary to ensure that all systems update smoothly and bookings are not disrupted.

Air India’s Phased Fare Rollout

In compliance with MoCA’s directive, Air India started applying the new fare limits to its reservation systems immediately. The airline’s official statement clarified that Air India Express had already completed the update, while Air India continues to implement the fare caps in stages. The airline explained that this gradual approach is essential to maintain system accuracy and prevent disruptions during the transition period.

Air India reassured its passengers that anyone who booked tickets during the transition and paid more than the capped base fare will receive a refund for the difference. The airline emphasized that passengers who booked Economy Class tickets above the new fare limits are entitled to a refund for the excess amount, ensuring that they are not financially burdened by the fare hikes during the update period.

MoCA’s New Fare Structure

The MoCA’s new regulations, which came into effect on December 6, set limits on the base fares that airlines can charge for economy class tickets. According to the order, the highest base fare allowed for flights up to 500 kilometers is Rs 7,500. For flights between 500 and 1,000 kilometers, the maximum base fare is Rs 12,000. For distances between 1,000 and 1,500 kilometers, airlines can charge up to Rs 15,000, and for flights exceeding 1,500 kilometers, the cap is set at Rs 18,000.

These new caps apply only to the base fare of the ticket, meaning that additional charges such as User Development Fee (UDF), Passenger Service Fee (PS), and taxes are not included in the fare limits. The regulation does not extend to business class tickets or UDAN (Ude Desh ka Aam Naagrik) flights, which are excluded from the fare caps. The goal of the order is to prevent airlines from exploiting passengers during times of high demand, ensuring that vulnerable groups, such as senior citizens, students, and patients, do not face financial hardship due to unfair pricing practices.

Ensuring Fair Pricing and Market Stability

The MoCA’s directive aims to ensure pricing discipline in the airline industry and prevent opportunistic pricing. The Ministry stressed the importance of avoiding steep or unreasonable fare increases on routes affected by cancellations or disruptions. Airlines are required to offer passengers alternative flight options when possible, ensuring that they receive maximum support during difficult travel conditions.

The fare limits will remain in place until the market stabilizes or until MoCA decides to review the situation. The Ministry will monitor the situation closely, using real-time data to assess fare levels and ensure compliance with the new regulations. This continuous oversight will help prevent any deviation from the set fare limits. The Ministry also indicated that airlines and online travel platforms must adhere to these rules across all booking channels, including direct airline websites and online travel agents.

Airline Cooperation with MoCA

MoCA emphasized that it will continue to collaborate with airlines and online travel platforms to ensure that fares remain fair and transparent. The Ministry’s goal is to prevent price gouging and ensure that passengers, especially those who need to travel urgently, can afford airfares without facing financial strain. By keeping a close watch on real-time data and working with airlines, MoCA aims to ensure that the travel experience remains fair for all passengers, particularly those who are most in need of affordable travel options.

MoCA made it clear that any violation of these new fare limits would result in immediate corrective action. Airlines that fail to comply with the new regulations will face enforcement measures, ensuring that the new fare structure is followed uniformly across the industry.

Conclusion

The Ministry of Civil Aviation’s intervention comes at a time when the airline industry is experiencing turbulence, with fare surges and disruptions affecting passengers. Air India’s prompt action in implementing the new fare limits across its booking systems demonstrates its commitment to adhering to government directives and maintaining fair pricing practices. The phased rollout of the capped fares ensures a smooth transition without causing major disruptions to existing bookings.

Air India has implemented MoCA’s new economy fare caps to provide passengers with fair and transparent pricing. This move follows the Ministry’s directive aimed at curbing unjustified airfare hikes and ensuring affordable travel for all.

With the new fare structure in place, passengers can expect more reasonable prices for economy class tickets, particularly on routes affected by high demand. MoCA’s proactive measures aim to restore balance and prevent further fare hikes, offering passengers a more stable and affordable travel experience in the future. The continued monitoring of fares and airline cooperation with MoCA will play a key role in ensuring that the market remains fair and transparent, allowing travelers to access air travel without unnecessary financial strain.