Centre can step in on airfares in rare cases, say new rules

The new rules shift the intervention power on specified tariff-related grounds from the Directorate General of Civil Aviation (DGCA) to the Central Government.

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The Centre can directly intervene on ticket pricing in extraordinary situations under a new set of aviation rules that also require airlines to disclose cancellation charges and refund conditions separately while displaying airfares to passengers.

These rules under the Bharatiya Vayuyan Niyam, 2024, were notified by the civil aviation ministry (MoCA) on October 26 and published in the Gazette of India on October 31. They will come into effect on January 1, 2027, replacing the Aircraft Rules, 1937. The Bharatiya Vayuyan Adhiniyam, which replaced the Aircraft Act, 1934, came into force on January 1, 2025.

The new rules shift the intervention power on specified tariff-related grounds from the Directorate General of Civil Aviation (DGCA) to the Central Government. Under Rule 135(4) of the Aircraft Rules, 1937, the DGCA could issue directions to an airline if it was satisfied that the airline was charging excessive tariff. A new rule, 192(6), however, empowers the Central government itself to issue written directions in the public interest when it considers a situation extraordinary and intervention necessary. Such directions must be proportionate to the circumstances and remain in force only for a specified period, the rules say.

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The provisions do not introduce a routine cap on airfares or require government approval for every ticket price. Hence, airlines will continue to determine fares in normal circumstances. The new framework, however, provides for tariff submission and monitoring by the DGCA.

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Total amount payable by passenger

Under the new rules, airlines will have to show the total amount payable by a passenger on their booking websites and on the booked ticket, along with a complete break-up indicating the fare, taxes, fees, cancellation charges, refund conditions and any other charges separately.

The requirement applies to Indian airlines operating scheduled services as well as foreign airlines operating scheduled flights to, from, or across India. All such airlines will also have to publish their tariffs on their websites or other digital platforms in a specified format.

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Cost of operation

The rules also require airlines to establish tariffs based on factors including the cost of operation. Indian scheduled airlines will have to submit their tariffs to DGCA, which will monitor the prices.

The new provisions build on disclosure requirements that already existed under the Aircraft Rules, 1937. The earlier rules required airlines to display the total amount payable by passengers and its break-up, including the fare, taxes, fees and other charges. The 2026 rules explicitly include cancellation charges and refund conditions in the list of particulars that must be displayed.

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  Neha LM Tripathi is a Special Correspondent with the National Political Bureau of Hindustan Times. She covers the aviation and railways ministries, and also writes on travel trends. Her work spans national developments, with a focus on policy, people, and the evolving travel landscape. She has 13 years of experience. Before moving to Delhi, she was based in Mumbai, where she began her journey as a journalist. Outside the newsroom, Neha enjoys trekking and travelling.Read More