Soaring Airfares Expose Festive Frustration as Oversight Fails
Deoghar airport in Jharkhand! (Image X.com)
Despite regulatory directives and government concern, domestic airfares have surged to nearly double on key routes this Diwali
By SANJAY SINGH
New Delhi, October 10, 2025 — Every festive season brings with it a familiar grievance — soaring airfares. And this year is no different. Despite official directives from the government and the Directorate General of Civil Aviation (DGCA) to curb unreasonable fare hikes, ticket prices have continued their upward trajectory, placing air travel well beyond the reach of the average Indian traveller.
The irony is striking. Even as the government issues advisories, the DGCA urges airlines to expand capacity and maintain “fair pricing,” and carriers announce hundreds of additional flights, the reality for passengers remains grim — fares on popular routes between metros and tier-2 cities have nearly doubled.
Regulation That Doesn’t Regulate
The DGCA’s response has been to ask airlines to “review” their pricing and add more flights during the Diwali season. On paper, the move looks proactive. IndiGo announced around 730 additional flights across 42 sectors, Air India and Air India Express committed 486 flights across 20 routes, and SpiceJet planned 546 additional services covering 38 sectors.
But the problem is not the number of flights — it’s the structure of India’s aviation market. Airlines are already operating close to full capacity, with new aircraft deliveries delayed and leasing options restricted amid high global demand. The DGCA can issue notices, but it cannot manufacture new aircraft or enforce price ceilings without dismantling the open-skies framework that India itself championed.
The Policy Paradox
Under the open skies policy, airlines are free to set fares based on market dynamics. The government reserves the right to intervene if prices rise “disproportionately,” but the benchmark for what counts as “disproportionate” remains conveniently undefined.
Government officials quietly acknowledge that while the fare surge feels exploitative, it technically remains within the “market band” when compared to global pricing trends. In other words, what’s hurting Indian passengers is not illegal — just inconvenient.
The DGCA’s role, therefore, has become symbolic: issuing advisories, expressing concern, and promising “rigorous oversight.” But when oversight lacks enforcement, it becomes little more than bureaucratic theater.
Passenger Discontent, Industry Defence
Passengers, meanwhile, continue to bear the brunt of what feels like price gouging disguised as market efficiency. Airfares that once cost ₹5,000–₹6,000 on a metro route now touch ₹10,000–₹12,000.
The industry’s defense is predictable: rising operational costs, fuel price fluctuations, and seasonal demand. Yet for travellers, these explanations do little to justify why India’s domestic airfare volatility outpaces income growth.
Growth Without Relief
DGCA data shows domestic carriers transported 1,107.26 lakh passengers between January and August 2025 — a 5% year-on-year increase. Yet passenger satisfaction is falling as affordability becomes a casualty of demand-driven pricing.
A dip of 1.4% in August air traffic — attributed to monsoon disruptions — provided no relief to passengers hoping for cheaper fares during the lull.
A Market That Serves Markets, Not Citizens
The government’s predicament is clear: intervene too much, and you distort the market; do too little, and you alienate the citizen. India’s aviation sector has thrived under liberalisation, but its passengers continue to pay the price — literally — for a system where competition coexists with cartel-like fare behaviour.
Until the DGCA evolves from an observer to an enforcer, festive air travel will remain an annual reminder of how policy paralysis can make the skies free, but never fair.
(This is an opinion piece, and views expressed are those of the author only)
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