The Central Government has notified new rules allowing intervention in airline ticket pricing during extraordinary situations when it is considered necessary in the public interest. The move comes amid concerns over rising airfares linked to higher crude oil and Aviation Turbine Fuel (ATF) prices.
Under the Bharatiya Vayuyan Niyam, 2026, notified by the Ministry of Civil Aviation, the Centre can issue directions to airlines on fares during exceptional circumstances. Such directions must be proportionate and remain effective only for a specified period.
Under Rule 192, scheduled airlines must determine ticket fares based on factors including operating costs and submit tariff details to the Directorate General of Civil Aviation (DGCA).
The provision empowers the Centre to issue written directions if it determines that an extraordinary situation has arisen and intervention is required in the public interest.
The DGCA will continue monitoring tariffs charged by scheduled airlines.
The revised framework also introduces requirements to make ticket pricing clearer for passengers.
Airlines must:
- Publish fares on their official websites and other digital platforms.
- Display the total payable amount during booking and on tickets.
- Provide a breakdown of base fares, taxes, fees and other charges.
- Clearly disclose cancellation charges and refund conditions.
The rules also distinguish between government taxes and fees collected by airlines for services or facilities provided to passengers.
These requirements are intended to help travellers understand the complete cost of their bookings before making payments.
India deregulated airline fare fixation in 1994, allowing carriers to determine ticket prices according to market conditions.
Under the earlier Aircraft Rules, 1937, Rule 135(4) empowered the DGCA to issue directions in cases involving excessive or predatory pricing and oligopolistic practices.
The newly notified Rule 192 retains provisions for tariff monitoring but does not explicitly list these practices as grounds for government intervention.
Instead, it gives the Centre authority to issue fare-related directions during extraordinary circumstances, subject to specified conditions and limitations.
The new framework introduces a mechanism for government intervention in exceptional airfare situations while strengthening pricing transparency.
For passengers, clearer disclosure of total fares, cancellation charges and refund conditions can make it easier to compare ticket prices and understand booking costs.
