This week in Aviation: Fare caps lifted, UDAN 2.0, and flight collision

From the government lifting airfare caps and announcing a fresh UDAN outlay to flight disruptions, regulatory updates and airline leadership changes, here is what made headlines in aviation this week

Mar 27, 2026, 17:51 IST3 min

1/9

Government lifts airfare caps
The government lifted domestic airfare caps with effect from March 23, ending temporary restrictions imposed after the IndiGo operational crisis in December 2025. The move comes amid rising fuel costs linked to the Iran conflict and is expected to allow airlines greater pricing flexibility. Airlines had earlier sought relief as aviation turbine fuel (ATF) prices rose sharply, squeezing margins. Photo by Noah Seelam / AFP

2/9

DGCA releases summer schedule
The Directorate General of Civil Aviation (DGCA) released the summer schedule effective March 29 to October 24, with Indian carriers set to operate around 10 percent fewer domestic flights compared to the winter schedule. The reduction reflects capacity adjustments by airlines following operational disruptions and fleet constraints. The schedule includes over 11,000 weekly flights, with airlines expected to further fine-tune capacity based on demand and operational conditions during the season. Photo by Indranil Mukherjee / AFP

3/9

Air India flight returns after 7 hours
An Air India flight to London returned to Delhi after being airborne for about seven hours due to a technical issue. The aircraft landed safely and passengers were deboarded without incident.
Photo by Nicolas Economou/NurPhoto via Getty Images

4/9

Air India Express exits Hindon
Air India Express will discontinue operations from Hindon airport after the end of the winter schedule on March 27 as part of network restructuring. The airline had been operating regional flights from the airport in Uttar Pradesh but is now consolidating operations at other hubs.
Photo by Fabrizio Gandolfo/SOPA Images/LightRocket via Getty Images

5/9

ATF prices set to rise
Aviation turbine fuel (ATF) prices are expected to increase from April 1, tracking the recent surge in global crude oil prices amid the Iran conflict. Fuel accounts for a significant portion of airline operating costs, and any increase is likely to put pressure on margins. Indian airlines have already added fuel surcharges to their domestic and international flights.
Photo by Pradeep Gaurs/Shutterstock

6/9

UDAN gets Rs 28,000 crore boost
The Union Cabinet on March 25 approved a modified UDAN (Ude Desh ka Aam Nagrik) scheme with a total outlay of Rs 28,840 crore for a 10-year period from FY27 to FY36. The scheme aims to develop 100 new airports from unserved airstrips and provide viability gap funding of Rs 10,043 crore to airlines. It also includes support for operation and maintenance of 441 aerodromes, development of 200 helipads, and procurement of HAL Dhruv helicopters and Dornier aircraft to improve connectivity in remote and regional areas.
Photo by Shutterstock

7/9

IndiGo appoints strategy chief
IndiGo appointed former Air India Express chief Aloke Singh as Chief Strategy Officer, nearly two weeks after CEO Pieter Elbers stepped down on March 10. Singh will lead long-term strategy and enterprise-wide transformation initiatives and report to managing director Rahul Bhatia until a new CEO is appointed.
Photo by Prakash Singh/Bloomberg via Getty Images

8/9

11 airlines exited over past decade: MoCA
The Ministry of Civil Aviation (MoCA) told Parliament that 11 airlines have exited the market since 2016 due to financial stress, lack of aircraft and internal issues. The ministry said the sector is deregulated and airlines operate on commercial considerations. It added that Kingfisher Airlines has outstanding dues of Rs 380.51 crore to the Airports Authority of India, while Jet Airways and Go First have no dues, and TruJet’s dues stand at Rs 0.03 crore.
Photo by REUTERS/Vivek Prakash

9/9

Air Canada aircraft collides with fire truck
An Air Canada Express aircraft collided with a fire truck while landing at LaGuardia Airport in New York on March 23 night, leading to the death of the pilot and co-pilot and leaving at least four firefighters critically injured, according to media reports. Following the incident, the airport was temporarily shut, with flights diverted or returned. The aircraft was carrying 76 passengers, and the incident is under investigation.
Photo by Tomothy A. Clary / AFP