Centre notifies new aviation rules, allows intervention in extraordinary situation including airline ticket prices

PTC News Desk: The government has introduced rules allowing it to intervene in airline ticket prices in exceptional circumstances and in the public interest. The move comes amid concerns about high airfares as crude oil and aviation turbine fuel (ATF) prices remain elevated.

Under the Bharatiya Vayuyan Niyam, 2026, the Centre can direct airlines on fares when it believes intervention is necessary. Any direction must be proportionate to the situation and apply only for a specified period.

Rule 192 requires scheduled airlines to set fares based on factors such as operating costs and submit their tariff details to the Directorate General of Civil Aviation (DGCA). The DGCA will monitor these fares.

The rules also require airlines to publish fares on their websites and other digital platforms. During booking, passengers must be shown the total amount payable, along with a separate breakdown of the base fare, taxes, fees, cancellation charges, refund conditions and other costs.

The rules distinguish between taxes paid to the government and charges collected by airlines for services or facilities.

India deregulated airline fares in 1994, allowing airlines to set prices according to market conditions. The Civil Aviation Ministry has said fares generally depend on demand, operating costs and how early a ticket is booked.

Under the earlier Aircraft Rules, 1937, the DGCA could issue directions if it found excessive or predatory pricing or oligopolistic practices. The new Rule 192 retains the DGCA’s role in monitoring fares but does not specifically name those practices as grounds for intervention.

The new framework gives the Centre authority to issue fare-related directions in extraordinary situations, subject to the conditions set out in the rules.