Indian government can intervene in airline tariffs under new rules
What's the story
The Indian government has issued new airfare regulations under the Bharatiya Vayuyan Niyam, 2026. The rules will be implemented starting January 1, 2027. They allow for government intervention in airline tariffs during extraordinary situations. The provisions include tariff submission and monitoring, passenger disclosures, and the government's power to issue directions in public interest.
Tariff regulation
Government can intervene in unreasonable airfares
As per the new rules, the government can intervene in unreasonable airfares on specific routes.
However, airlines will still have the freedom to set their prices without prior government approval.
Under Rule 192, if an extraordinary situation arises, the central government can issue directions.
These directions must be proportionate to the circumstances and remain effective only for a specified period of time.
Intervention guidelines
No fare ceiling or numerical thresholds for intervention
The new regulations do not prescribe a fare ceiling or numerical thresholds for intervention. Instead, they provide a framework for issuing directions.
Airlines are required to set tariffs based on operational costs and submit these to the Director General of Civil Aviation (DGCA) in a specified manner and periodicity.
This is aimed at ensuring transparency and accountability in tariff-setting practices across the industry.
Transparency requirement
Airlines must publish tariffs on their websites
The new rules also mandate airlines to publish their tariffs on their websites or any other digital platform in a specified manner. This is aimed at ensuring wider public awareness and transparency.
The DGCA will monitor these tariffs set by operators, ensuring compliance with the new regulations and maintaining fair pricing practices in the airline industry.
Passenger disclosures
Detailed breakdown of charges on booking websites and tickets
The new regulations also call for a detailed breakdown of charges on booking websites and tickets.
This includes fare, taxes, fees, cancelation charges, refund conditions, and any other charge.
The rules define fees as amounts payable to service providers for services or facilities provided to passengers while taxes are defined as amounts payable to the government.