On 9 February 2024, when a legislative panel suggested route-specific airfare caps, shares of SpiceJet and IndiGo fell. In response to growing consumer anxiety about skyrocketing airfares, the group also suggested creating a new body to oversee and control the industry.
InterGlobe Aviation’s stock ended the day down 0.84% at 3,105.95 INR, while SpiceJet’s stock ended the day down 2.52%, finishing at 67.45 INR.
The parliamentary panel voiced their displeasure with the response from the civil aviation ministry about the self-regulation of ticket prices by airlines. They brought up instances of unusually high airfare, especially during holiday seasons. Since the panel felt that the airlines were unable to control rates, they suggested giving the Directorate General of Civil Aviation (DGCA) the authority to regulate tariffs.
At this time, neither the government nor any regulatory organization has any direct say over the cost of plane tickets. In addition to the DGCA’s monthly monitoring of airfares on some routes, the panel suggested looking into the possibility of either giving the DGCA quasi-judicial powers or creating a new agency to administer and control the fees imposed by airlines.
