Domestic flyers face high airfares during festive seasons as airlines exploit limited competition. Data from the DGCA 2025-2026 handbook shows Indigo holds 63 per cent of the market share. With few major players, consumers have little choice. Experts say this situation needs regulatory intervention from the Competition Commission of India.
Every year, during the Indian festive seasons, the purse of domestic flyers is at the mercy of airline companies. Airfares witness a drastic surge, and consumers are left to bear the brunt of it simply to be with their families during festivals. Every Pujo, Diwali, Chhath etc., the drill repeats: trains are booked to capacity with little to no possibility of getting a confirmed ticket.
Consequently, there is an increase in demand for air travel which results in the airlines putting up the most exploitative fares on their websites. A free-market economist will explain the aforementioned phenomenon by drawing the demand and supply curves and might even ask us to sit tight till the market corrects itself. However, it is the consumers who invariably receive the shorter end of the stick as a result of the rapacious pricing by the airlines. This is because the Indian aviation sector is dominated by two major players, i.e., Indigo (InterGlobe Aviation Limited) and the Air India Group.
As per the Handbook on Civil Aviation Statistics, published by the Directorate General of Civil Aviation, 2025-2026 (DGCA) the domestic market share of Indigo in terms of the passengers carried is highest and sits around 63 per cent, followed by Air India at 13.6 per cent, Air India Express at 6.3 per cent, Akasa Air at 5.7 per cent, and SpiceJet at 4.6 per cent. Ergo, one look at these numbers clearly shows that the market may not correct itself because it is not a healthy competitive market.
As per DGCA, around 10 passenger airlines operate in Indian skies, but in practice, the consumers have no real freedom of choice. Additionally, not all carriers operate or provide service on all routes. Thus, it is a situation that requires a regulatory intervention and some intent to act in the interest of consumers. India has had a regulator and a law to deal with situations like these since the year 2002 styled as the Competition Act. This statute further creates a Competition Commission of India (CCI) to act as a regulator and vests it with broad powers of enforcement including a suo-moto jurisdiction.
CCI was established to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets in India. CCI also has the power to impose penal consequences in case a business entity is found to have abused its dominant position in the market.
For instance: post the havoc caused after the unexpected mass flight cancellations in the first week of December 2025, CCI had directed the Director General to investigate Indigo for the abuse of its dominant position (Kartikeya Rawal vs InterGlobe Aviation Limited, Case No. 44 of 2025). However, the problem of surge in airfares during peak festive season is a differently placed issue that resurfaces periodically. Be that as it may, legally, the CCI has enough power to address this issue independently and keep the erring airlines in check.
In addition to the powers of the CCI, as per Section 10 (c) of the Bharatiya Vayuyan Adhiniyam, 2024 the central government has the authority to make rules pertaining to the economic regulation of civil aviation and air transport services, including the approval, disapproval or revision on tariff of operators of air transport services. Furthermore, the Bharatiya Vayuyan Niyam, 2026 i.e., the rules under the 2024 Adhiniyam (Act) have been published by the union government and shall come in force from 1 January 2027. Therefore, there is no legislative void when it comes to addressing the issue of exploitative air fares charged by the airlines.
The only impediment to swift action in this domain is the lack of intent on the part of the authorities. Recently, a Public Interest Litigation was filed in the Supreme Court highlighting the issue of surge of up to 700 per cent in airfares, but the same was dismissed by the apex court. During festive seasons, when other modes of transport such as railways run at full capacity, air travel ceases to be a luxury and becomes a necessity.
Being with one's family during festivals should not come at a premium. Therefore, when basic travel becomes unaffordable and prices become exploitative, 'intervention for course correction' remains the only justifiable policy measure to protect the interest of our domestic flyers. The compelling question that remains is 'when' and most importantly, 'who' will bell the cat: CCI, DGCA or the Judiciary?