Higher Airfares Ahead? Indian Carriers Refuse Regulator’s Demand For Pricing Data, Says Report

India’s leading airlines have reportedly declined to provide airfare data requested by the country’s aviation regulator. This has triggered tensions with policymakers seeking stronger consumer protections in an increasingly consolidated market.

The Federation of Indian Airlines wrote a letter to the authorities on March 11 and said that disclosing the fare details could expose carriers to strategic risks and competitive disadvantages, reported Bloomberg News. 

The refusal came from IndiGo, Air India Group, and SpiceJet, which argued that sharing such information could harm their commercial interests.

This decision posed a challenge to the government’s efforts to enhance fare monitoring, especially after last year’s merger of Air India and Vistara, which consolidated IndiGo and Air India Group’s dominance. Together, both the carriers now control over 90 per cent of India’s domestic aviation market, giving them significant influence over pricing strategies.

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Regulatory Concerns Over Market Dominance

The growing market control of IndiGo and Air India raised concerns among policymakers about fare-setting practices. Although airfare in India remains unregulated, government interventions have increased, particularly after a sharp fare surge in February during a major Hindu religious event sparked criticism. Authorities previously urged airlines to either increase flight availability or lower prices in response to sudden fare hikes.

During a meeting on March 3, the Directorate General of Civil Aviation (DGCA) asked airlines to submit fare data covering the years 2022 to 2024. However, airlines cited concerns over data security, stating that sharing fare details with external agencies, including consultants and third parties, could lead to unauthorised disclosures and commercial losses.

Instead, airlines proposed a limited approach, suggesting they only provide data on a percentage of tickets sold and only in specific cases rather than as a routine requirement, the report said.

Historically, the Indian government has intervened in airfare regulation. In May 2020, when flights resumed after a two-month COVID-19 lockdown, authorities imposed upper and lower fare limits based on flight duration. These restrictions remained in place until August 2022, when they were lifted.

No official comment has been made by IndiGo, Air India, SpiceJet, India’s aviation regulator, or the Federation of Indian Airlines on the matter.