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India’s leading airlines, including IndiGo and Air India Group, have refused to disclose airfare data sought by the government, setting the stage for a conflict with aviation regulators. The standoff could impact policymakers’ efforts to strengthen consumer protections in a domestic aviation market dominated by these carriers.
The Directorate General of Civil Aviation (DGCA) had requested airfare data from 2022 to 2024 during a meeting on March 3. However, IndiGo, Air India Group, and SpiceJet declined to comply, citing commercial risks. According to a March 11 letter by the Federation of Indian Airlines (FIA) seen by Bloomberg News, the airlines argued that sharing this information could lead to unauthorized disclosure, strategic exploitation, and financial losses.
Growing Concerns Over Fare Regulation
The refusal comes at a time when the Indian government is ramping up oversight of airfares following public backlash over high ticket prices, especially during significant events such as the Hindu religious gathering in February. While airfares are not directly regulated in India, authorities have previously intervened by requesting airlines to adjust prices or increase flight availability.
IndiGo and Air India Group collectively control over 90% of the domestic aviation market, following a major merger last year. Their dominant position has raised concerns about pricing power and market fairness, prompting government scrutiny. The aviation sector’s competitive landscape has significantly narrowed, making fare monitoring a key area of focus for regulators.
Airlines Offer Limited Data-Sharing Alternative
In response to the DGCA’s request, airlines have proposed a compromise-sharing airfare data only on a percentage of tickets sold and only in specific cases rather than as a routine practice. This alternative approach, as suggested in the FIA’s letter, aims to balance regulatory oversight with commercial confidentiality.
India’s History of Fare Regulation
India has previously imposed fare controls, notably during the COVID-19 pandemic. In May 2020, the government introduced upper and lower limits on domestic airfares to stabilize the market amid disruptions caused by lockdowns. These price caps remained in place until August 2022, when they were lifted to allow for more flexible pricing.
With airlines resisting full disclosure of pricing data, the standoff between regulators and carriers is expected to intensify. As the government explores ways to enhance fare transparency, this dispute could shape future aviation policies and consumer protections in India’s rapidly evolving airline industry.
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