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.
Such directions must be proportionate to the circumstances and remain in force only for the specified period. 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. 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), according to Rule 192.
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. Airlines will also have to provide a separate breakdown of the base fare, taxes, fees, cancellation charges, refund conditions and other applicable charges. The rules distinguish between taxes payable to the government and fees collected by airlines for services or facilities provided to passengers.
India deregulated airline fare fixation in 1994, allowing carriers to determine ticket prices based on market conditions. it does not specifically list excessive or predatory pricing and oligopolistic practices as grounds for government intervention While the newly notified Rule 192 retains the provision for monitoring airline tariffs.
The Civil Aviation Ministry has maintained that airlines generally set fares according to demand, operating costs and the time of booking, with different pricing bands available for passengers.
