Air India to Refund Fare Differences After IndiGo Chaos

India's aviation sector is grappling with the fallout from the IndiGo disruption, which triggered thousands of flight cancellations and an abrupt spike in domestic fares. In response, the government ordered temporary caps on Economy Class base fares, set at 7,500 to 18,000 rupees.

Air India said it has begun applying the prescribed fares across its reservation systems. Air India Express completed the implementation, and Air India is rolling out the caps in a phased manner to ensure accuracy and stability without disrupting guest bookings. Passengers who booked Economy tickets above the cap during the transition will receive refunds of the difference.

The aviation ministry directed airlines to complete refunds for cancelled or severely delayed flights by 8:00 pm and to waive rescheduling fees for affected customers. In line with that directive, Air India is processing refunds for the differential amounts and working to minimize disruption during the handover.

Meanwhile, the DGCA has formed a four-member inquiry panel to identify the causes and propose measures to prevent a recurrence. IndiGo's board met on the first day of the disruptions, with the airline’s CEO signaling a recovery as operations steadily improve.

Data from the airline and ministry show gradual normalization: about 1,650 flights were operating at one point, and 137 of 138 destinations remained served as of early December. The ministry also reported ₹610 crore in refunds and the return of about 3,000 bags tied to delayed or cancelled services.

With additional assurances of fare protections and ongoing investigations, travellers are watching closely as the sector works to restore confidence and schedules.

Cover image source: IndiGo defends its board amid mounting criticism: 'Meeting regularly, doing everything possible to restore ops' 🔗

#IndiGoChaos #AirIndiaRefunds #AviationPolicy