India
oi-Madhuri Adnal
Airline ticket prices could come under closer government scrutiny from 2027, with the Centre getting the power to step in and issue directions to carriers during extraordinary situations. The move comes at a time when rising crude oil and Aviation Turbine Fuel (ATF) prices have added to concerns over the cost of air travel.
The Union Ministry of Civil Aviation has notified the Bharatiya Vayuyan Niyam, 2026, which will come into force on January 1, 2027. The new rules allow the government to intervene in airline fares if it believes the situation calls for action in the public interest.
India’s Bharatiya Vayuyan Niyam, 2026, effective Jan 1, 2027, empowers the government to direct airlines on fares during extraordinary situations for public interest. Airlines must provide transparent pricing and detailed fare breakups to passengers.
However, any directions issued to airlines must be proportionate to the situation and will apply only for a specified period.
What Does Rule 192 Say About Airline Ticket Prices?
Rule 192 requires airlines operating scheduled services to fix their fares after considering factors such as operating costs. They must also submit details of their tariffs to the Directorate General of Civil Aviation (DGCA).
The rule also gives the Centre the authority to issue written directions to airlines if an extraordinary situation arises and government intervention is considered necessary in the public interest.
Airlines will have to display ticket prices on their websites and other digital platforms so that passengers can access fare information before booking. The DGCA will monitor the tariffs charged by scheduled airlines.
Airlines Must Show Passengers A Detailed Fare Breakup
Passengers will also be able to see how much they are paying for different components of an air ticket. Airlines must separately mention the base fare, taxes, fees, cancellation charges, refund conditions and other additional charges.
India opened up airline fare fixation to market forces in 1994, allowing airlines to decide ticket prices based on demand and operating costs. The Civil Aviation Ministry has maintained that fares generally depend on passenger demand, the cost of running flights and how early a ticket is booked. Airlines also offer different fare categories based on these factors.
Under the earlier Aircraft Rules, 1937, Rule 135(4) allowed the DGCA to step in if it found airlines charging excessively high fares, engaging in predatory pricing or following practices that limited competition.
The new Rule 192 does not specifically mention these practices as reasons for government intervention. However, the DGCA will continue to keep an eye on airline fares under the new rules.
