Picture credits: Indigo Airlines
India: In a key step toward improving transparency and regulating airfares, the Directorate General of Civil Aviation (DGCA) has agreed to a request from the Federation of Indian Airlines (FIA), allowing airlines to submit aggregated data on airfare pricing rather than detailed ticket-wise information. This shift comes after a two-year period in which major Indian airlines such as Air India, IndiGo, and SpiceJet declined to provide fare details, citing concerns about competitive risks and the potential misuse of sensitive pricing data.
By agreeing to share this aggregated data, the DGCA will be equipped with the necessary tools to analyze broader trends in airfare pricing, especially during peak periods. The move aims to alleviate growing concerns over price volatility in the aviation sector while ensuring that affordable fares are maintained, thereby improving overall air connectivity across India.
The FIA has expressed its commitment to this collaboration, recognizing its role in supporting the sector’s growth while keeping fares accessible for consumers.
Previous Standoff on Fare Data Transparency
Initially, India’s major airlines had resisted sharing fare data. In March, the DGCA requested airlines to provide data from 2022 to 2024 to track fare trends and address consumer complaints. However, the FIA rejected this request, fearing that disclosing such data could lead to unauthorized disclosures and harm their competitive standing.
AI-Driven Framework for Tighter Airfare Regulation
Amid growing concerns over unpredictable airfare pricing, the Department-Related Parliamentary Standing Committee on Transport, Tourism, and Culture has proposed an AI-based system to better monitor and regulate airfares.
In its 375th report, titled “Demands for Grants (2025-26) of the Ministry of Civil Aviation,” the committee highlighted the inadequacy of the current regulatory mechanisms under the DGCA, noting that the current framework lacks the capacity to proactively track airfare trends and address emerging pricing issues.
The proposed solution, known as “AirPrice Guardian,” aims to leverage artificial intelligence to predict and monitor airfare trends. By analyzing historical data, fuel costs, seasonal demand, and even external factors such as festivals or emergencies, this system will provide a more dynamic view of airfare pricing. Machine learning algorithms will enable real-time adjustments, allowing regulators to identify potential fare hikes before they become a problem.
The committee has suggested implementing the system in two phases:
Phase I will focus on major, high-traffic routes and is expected to be rolled out within the next six months.
Phase II will extend the system to regional and underserved routes, with a nationwide launch planned for 2026.
This initiative will provide real-time monitoring of airfare pricing and enable regulators to take preemptive actions against exploitative pricing. It also aligns with the government’s ongoing focus on regional connectivity, ensuring that airfares on underserved routes remain affordable.
To support these efforts, the committee recommends creating a “Pricing Transparency Index,” which will rate airlines based on their adherence to fair pricing practices. This index will be accessible to the public through a consumer-facing portal, allowing passengers to compare pricing policies across airlines. In addition, the committee suggests enhancing the DGCA’s Tariff Monitoring Unit (TMU) with AI-driven tools to provide real-time data analysis and identify pricing anomalies.
Another significant recommendation is the launch of the “Airfare Vigil” mobile application, inspired by the Election Commission’s cVIGIL app. This tool will allow consumers to report instances of unjust airfare pricing. Users will be able to submit complaints, which will be geo-tagged and tracked automatically through a time-bound resolution process. This initiative will help promote greater transparency and empower the public to participate in regulating airfares.
Funding and Implementation: The Committee’s Financial Recommendations
As part of its comprehensive plan, the committee emphasized the importance of reallocating funds from underutilized areas to support the development of the AI-based airfare regulation system. Specifically, it suggested that some of the Rs 2,330.31 crore allocated for revenue expenditure and the Rs 70 crore capital outlay for 2025-26 be directed towards implementing this new airfare monitoring mechanism. This reallocation could include funds from areas such as the Air India liabilities that are not fully utilized.
The committee believes that such a reallocation will ensure the necessary resources are available to develop and deploy the AI-powered system, supporting greater oversight in the airfare sector and helping to address long-standing consumer complaints about pricing volatility.
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