New Delhi, November 1: The Central government has notified the airfare provisions of the Bharatiya Vayuyan Niyam, 2026, India's new civil aviation rulebook, giving itself the power to intervene in airline tariffs during extraordinary situations — while stopping short of imposing any fare cap. The framework is set to come into force on January 1, 2027, The Hindu BusinessLine reported on Sunday.
Source: The Hindu BusinessLine
Under Rule 192, which deals with tariffs, the Central government may issue written directions in the public interest if it considers that an extraordinary situation has arisen. The provision does not itself prescribe a fare ceiling or numerical thresholds for intervention, and it does not require prior government approval of individual fares, BusinessLine reported.
Airlines and other operators covered by the rules must submit their established tariffs to the Director General of Civil Aviation (DGCA) in the form, manner and periodicity specified, and the DGCA will monitor the tariffs, according to the notification.
What the passenger will see on the ticket
From January, the booking website and the ticket must show the total amount payable by a passenger, broken into the fare, taxes, fees, cancellation charges and refund conditions, each listed separately, according to an analysis of the final Gazette text by Transclew, which read the rules in the Gazette of India issue dated October 29 and digitally signed on October 31 (G.S.R. 957(E)).
Source: Transclew
Transclew also noted what changes hands: under the Aircraft Rules, 1937, the DGCA itself could act against an 'excessive' or 'predatory' fare, but the new rules repeal the 1937 rules from January 1 and that regulator power is not carried over in the same form — the intervention power now sits with the Central government, and the rules do not define what counts as an extraordinary situation or set a trigger for using it.
Why the rules were written
The notification follows the Centre's assurance to the Supreme Court on October 16 that the rules on airfares under the Bharatiya Vayuyan Adhiniyam, 2024 had been finalised and would be published within two weeks, in a public interest case filed by S. Laxminarayanan seeking regulation of airfares and ancillary charges, especially during festivals, disasters and peak travel seasons. Transclew reported the case is next listed on November 16, when the court is expected to see the notified rules.
Source: Transclew
Because the framework starts only on January 1, 2027, tickets for Diwali, Chhath and the year-end holidays this season continue to be sold under the existing rules, Transclew noted. Urban Acres, summarising the notification, likewise reported that the provisions preserve airlines' pricing freedom in the absence of a government direction, with no separate formula for monopoly routes.
Source: Urban Acres