The central government has notified the Bharatiya Vayuyan Niyam, 2026, which formalizes market-driven pricing across domestic routes while reserving intervention powers for extraordinary situations. Under this framework, air carriers must establish their tariffs based on operational costs and file them directly with the Director General of Civil Aviation. Airlines are also required to display comprehensive pricing breakdowns on their websites to ensure passengers see all fees, taxes, and cancellation conditions upfront. The entire regulatory overhaul will officially come into effect on January 1, 2027.
Key points
The central government will only intervene in airfare pricing through written directions…: The central government will only intervene in airfare pricing through written directions during extraordinary situations.
Air transport undertakings must base ticket pricing structures on operational costs and m…: Air transport undertakings must base ticket pricing structures on operational costs and make them public.
Passengers will receive complete transparency regarding additional fees and cancellation…: Passengers will receive complete transparency regarding additional fees and cancellation charges under the updated framework.
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Airlines have been asked to give a break-up of tariff in terms of the total amount payable by a passenger and break-up of the same by displaying components like base fare, tax, fees, cancellation charges, refund conditions and any other charge separately.
NEW DELHI: India has adopted new airfare rules where government will not interfere in the process except “in an extraordinary situation (where) it considers it necessary to do so in the public interest.” Notified under the Bharatiya Vayuyan Niyam, 2026, which will be applicable from Jan 1, 2027, government has continued its policy of letting market forces determine airfares without government interference.TOI reported on Oct 17 that India has no plans to regulate or cap airfares in the free market under which airlines here operate under the new airfare policy being finalised. However, it will keep a “strong lever” on airlines to ensure they don’t resort to very sharp surges in “exceptional and extraordinary circumstances” that see demand rising for certain routes.“Every air transport undertaking… shall establish tariff based on factors including cost of operation…. (They) shall submit…
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