SpiceJet shares slide as panel proposes airfare caps

SpiceJet shares faced a downturn on the morning of February 9 after a parliamentary panel suggested route-specific capping of airfares. The panel also advocated for the establishment of a separate entity to oversee and regulate air ticket prices amid growing concerns from customers regarding soaring airfares.

As of 1:53 pm, SpiceJet shares were trading 4.49% lower at ₹66.80.


The parliamentary panel, in its report on the action taken by the government on its recommendations regarding the fixing of airfares, highlighted the inadequacy of airlines in self-regulating ticket prices effectively, as per the response from the civil aviation ministry.

The panel emphasized instances of abnormal increases in airfares, particularly around festive seasons or specific holidays, prompting the need for regulatory intervention by the Directorate General of Civil Aviation (DGCA).

While ticket prices currently fall outside the purview of government regulation, the civil aviation ministry noted the existence of a Tariff Monitoring Unit within the DGCA to monitor airfares on certain routes monthly.

The panel recommended empowering the DGCA to regulate air tariffs and proposed exploring the feasibility of establishing a separate entity with quasi-judicial powers to control airfares charged by airlines.

The proposed measures aim to address concerns over fluctuating airfares and ensure greater transparency and affordability for air travelers.