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Ready for take-off? Govt can now ground high fares

By · Published by Everything Blog

In short

Under the newly notified Bharatiya Vayuyan Niyam, 2026, the central government can intervene in airline pricing despite the sector operating under a deregulated market framework since 1994. Carriers are still mandated to establish tariffs based on their operating costs and must publish these rates for digital monitoring by the Directorate General of Civil Aviation. The updated rules also require airlines to present an explicit cost breakdown to consumers, separating baseline fares, cancellation terms, and carrier service fees from actual government taxes.

Key points

  • Government pricing interventions must remain proportionate to the specific crisis and sta…: Government pricing interventions must remain proportionate to the specific crisis and stay in effect only for a designated duration.
  • The new framework omits older regulatory clauses that explicitly designated predatory, ex…: The new framework omits older regulatory clauses that explicitly designated predatory, excessive, or oligopolistic pricing as intervention triggers.
  • Airlines are now legally required to disclose cancellation charges, refund terms, and com…: Airlines are now legally required to disclose cancellation charges, refund terms, and complete fare components directly on issued passenger tickets.

Sources checked by our analysis pipeline: 1

The government has notified new rules allowing it to intervene in airline ticket prices in extraordinary situations and in the public interest, amid concerns over high airfares in the backdrop of elevated crude oil and Aviation Turbine Fuel (ATF) prices.

Under the Bharatiya Vayuyan Niyam, 2026, notified by the Union Ministry of Civil Aviation, the Centre can issue directions to airlines on fares if it considers intervention necessary in an extraordinary situation. Such directions must be proportionate to the circumstances and remain in force only for the specified period.

According to Rule 192, airlines operating scheduled air services will have to determine their fares based on factors including the cost of operations and submit the tariff details to the Directorate General of Civil Aviation (DGCA).

The rule states that the government may issue written directions if it is of the opinion that an extraordinary situation has arisen and intervention is necessary in the public interest.

The new rules also require airlines to publish their fares on websites and other digital platforms to ensure transparency and keep passengers informed. The DGCA…

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