India to curb airfare spikes: DGCA unveils plan to regulate pricing amidst safety concerns

India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has informed a parliamentary panel that it is developing a mechanism to curb sudden airfare spikes during periods of high demand, such as festivals and emergencies. The DGCA is reportedly exploring the introduction of route-specific price ceilings to prevent what it termed “unreasonable surges,” particularly in response to emergencies or major events.

According to reports by The Times of India, senior officials from the Ministry of Civil Aviation, along with top executives from leading airlines including Air India, IndiGo, SpiceJet and Akasa Air, appeared before Parliament’s Public Accounts Committee (PAC) earlier this week. The committee, chaired by Congress MP K C Venugopal, expressed serious concerns over soaring airfares and lapses in airline safety, especially in light of the recent Air India crash in Ahmedabad on 12 June, which claimed 274 lives.

Air India CEO Campbell Wilson, who appeared before the panel, assured MPs that the airline would complete retrofitting its fleet within two years to enhance passenger comfort and safety. “Flight safety remains our top priority,” Wilson was quoted as saying.

Lawmakers across party lines criticised what they called “arbitrary pricing practices” by airlines. Examples included price surges following the Pahalgam terror attack and inflated fares ahead of the Maha Kumbh pilgrimage. A BJP MP questioned whether such fare hikes would persist while the DGCA develops its proposed mechanism. Several members argued that the regulator already holds sufficient authority to intervene.

Former civil aviation minister and PAC member Praful Patel urged the DGCA to take a more serious approach to aviation safety and address its staffing shortages. He recommended hiring retired aviation professionals on short-term contracts to ease the burden, The Times of India reported.

The government has committed over Rs 1 lakh crore towards airport modernisation and safety improvements over the next five years. With more than 400 million passengers flying annually, balancing affordability, safety, and continued growth has become an urgent challenge. The DGCA’s anticipated guidelines on airfares, along with the forthcoming AAIB crash report, will be closely watched as indicators of the sector’s accountability and future direction.