The Union government has notified new aviation rules empowering it to intervene in airline ticket pricing during extraordinary circumstances, amid concerns over rising airfares driven by elevated crude oil and Aviation Turbine Fuel (ATF) prices.
The Bharatiya Vayuyan Niyam, 2026, notified by the Ministry of Civil Aviation, allows the government to issue directions to airlines on fares when intervention is considered necessary in the public interest.
Under the new framework, such directions must be proportionate to the circumstances and remain in force only for a specified period.
The development comes as passengers face rising airfares during periods of strong demand and higher operating costs. On Monday, the Supreme Court dismissed a public interest litigation seeking intervention over an alleged 700% increase in airfares.
Rule 192 of the new legislation requires scheduled airlines to determine fares based on factors such as operating costs and submit tariff details to the Directorate General of Civil Aviation (DGCA).
The rules also introduce greater transparency in airfare pricing. Airlines must publish their fares on official websites and other digital platforms, while clearly displaying the total amount payable by passengers during booking and on tickets.
Carriers are also required to provide a detailed breakdown of base fares, taxes, fees and other applicable charges. Cancellation charges and refund conditions must be disclosed clearly, allowing passengers to understand the full cost of their bookings.
The framework distinguishes between government taxes and fees collected by airlines for services or 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 fares are generally influenced by demand, operating costs and booking timelines.
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.
While the new framework retains provisions for tariff monitoring, it does not explicitly identify these practices as grounds for intervention. Instead, it grants the Union government powers to issue fare-related directions during extraordinary circumstances, subject to specified conditions and limitations.
Source: Deccan Herald
