IndiGo and SpiceJet Stocks Dip Amid Proposed Airfare Regulations
By Aayush Khanna
Shares of IndiGo and SpiceJet (NS:) witnessed a decline on 9 February 2024 following a proposal by a parliamentary panel suggesting route-specific capping of airfares. The panel also recommended the establishment of a separate entity to regulate and monitor air ticket prices due to escalating concerns among customers regarding soaring airfares.
InterGlobe Aviation (NS:) saw its shares closing 0.84% lower at INR 3,105.95 while SpiceJet’s shares, ended the session fallin 2.52%, settling at INR 67.45.
The parliamentary panel expressed dissatisfaction with the civil aviation ministry’s response regarding airlines’ self-regulation of ticket prices, citing incidents of abnormal airfare increases, particularly during festive seasons or holidays. Consequently, the panel recommended empowering the Directorate General of Civil Aviation (DGCA) to regulate tariffs, given the airlines’ perceived failure to control prices.
Currently, air ticket prices are not directly regulated by the government or any regulatory body. While the DGCA monitors airfares on select routes monthly, the panel proposed exploring the feasibility of granting the DGCA quasi-judicial powers or establishing a separate entity to oversee and manage airfares charged by airlines.
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