Centre Notifies New Airfare Rules, Allows Intervention In Extraordinary Situations

New Delhi, Nov 2: The Centre has notified new aviation rules empowering the government to intervene in airline ticket pricing in extraordinary situations and in the public interest, amid concerns over rising airfares driven by elevated crude oil and Aviation Turbine Fuel (ATF) prices.

Under the Bharatiya Vayuyan Niyam, 2026, notified by the Union Ministry of Civil Aviation, the government can issue directions to airlines regarding fares whenever it considers intervention necessary in an extraordinary situation. Such directions, however, must be proportionate to the circumstances and remain effective only for a specified period.

As per Rule 192, airlines operating scheduled air services will be required to determine their fares by taking into account factors, including operational costs, and submit tariff details to the Directorate General of Civil Aviation (DGCA).

The provision states that the government may issue written directions if it is satisfied that an extraordinary situation has arisen and intervention is necessary in the public interest.

The new framework also strengthens transparency requirements, making it mandatory for airlines to publish fares on their websites and other digital platforms. The DGCA will monitor tariffs fixed by scheduled airlines.

Airlines will further have to display the total amount payable by passengers during the booking process and on tickets, along with a separate breakdown of base fares, taxes, fees, cancellation charges, refund conditions and other applicable charges.

The rules also distinguish between taxes payable to the government and fees collected by airlines for services and facilities provided to passengers.

India deregulated airline fare fixation in 1994, allowing carriers to determine ticket prices according to market conditions. The Civil Aviation Ministry has maintained that airlines generally fix fares based on demand, operational costs and booking time, with different pricing bands available to passengers.

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 in the aviation sector.

While the newly notified Rule 192 retains the provision for monitoring airline tariffs, it does not specifically mention excessive or predatory pricing or oligopolistic practices as grounds for intervention.

The new framework nevertheless provides the Centre with powers to regulate fares in extraordinary circumstances, subject to the conditions prescribed under the rules. (Agencies)…Read more by Northlines