Now, Centre Gets Powers to Regulate Airline Fares in Extraordinary Situations Under New Rules notified in Bharatiya Vayuyan Niyam 2026

Now, Centre Gets Powers to Regulate Airline Fares in Extraordinary Situations Under New Rules notified in Bharatiya Vayuyan Niyam 2026

NEW DELHI, November 2, 2026 (VoM News): The Centre has empowered itself to intervene in airline ticket prices during extraordinary situations in the public interest under the newly notified Bharatiya Vayuyan Niyam 2026, amid concerns over rising airfares and elevated crude oil and Aviation Turbine Fuel (ATF) prices.

Notified by the Union Ministry of Civil Aviation, the rules allow the government to issue written directions to airlines on fares when intervention is considered necessary. Such directions must be proportionate to the circumstances and remain effective only for the specified period.

Under Rule 192, scheduled airlines must determine fares by considering factors including operational costs and submit tariff details to the Directorate General of Civil Aviation (DGCA). The regulator will monitor airline tariffs, while carriers must publish fares on their websites and other digital platforms.

The rules also strengthen passenger transparency by requiring airlines to display the total payable amount during booking and on tickets. Carriers must separately disclose base fares, taxes, fees, cancellation charges, refund conditions and other applicable costs.

India deregulated airline fare fixation in 1994, allowing carriers to set prices according to market conditions. Under the earlier Aircraft Rules, 1937, Rule 135(4) empowered the DGCA to intervene in cases involving excessive or predatory pricing and oligopolistic practices.

Unlike the earlier provision, Rule 192 does not explicitly identify these practices as grounds for intervention. Instead, it grants the Centre broader authority to issue fare-related directions in extraordinary circumstances, subject to specified conditions.

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