The Centre has notified airfare rules under the Bharatiya Vayuyan Niyam, 2026, providing for intervention in airline tariffs during extraordinary situations.
According to a notification, the framework is set to come into force on January 1, 2027.
The notified provisions cover tariff submission, monitoring and passenger disclosures, alongside the Centre’s power to issue written directions in the public interest.
On October 20, businessline had reported that the government would intervene in unjustified airfares on individual routes, while airlines would retain pricing freedom without prior government approval.
Under Rule 192, which deals with tariffs, the Central government may issue directions if it considers that an extraordinary situation has arisen.
However, such directions must be proportionate to the circumstances and remain in force only for the specified period.
The provision does not itself prescribe a fare ceiling or numerical thresholds for intervention.
Consequently, the notification provides a framework for issuing directions rather than imposing a particular cap on airfares.
Besides, air transport undertakings covered by the tariff provision must establish tariffs based on factors including the cost of operation.
Operators covered by the rules are required to submit their established tariffs to the Director General of Civil Aviation (DGCA) in the form, manner and periodicity specified.
Air transport undertakings must publish their tariffs on their websites or another digital platform in the form and manner specified by the DGCA for wider public awareness and transparency.
The DGCA will monitor tariffs established by operators.
On passenger disclosures, the rules require the tariff charged or offered to show the total amount payable on both the booking website and the booked ticket.
A complete break-up must separately indicate the fare, taxes, fees, cancellation charges, refund conditions and any other charge.
The rules define fees as amounts payable to service providers for services or facilities provided to passengers, while taxes refer to amounts payable to the government.
While Rule 192 provides for tariff submission and monitoring, it does not specify prior government approval of individual fares.
In addition, it does not prescribe a separate framework for monopoly routes or a formula for competition-linked fare caps.
Published on November 1, 2026
