New airfare rules make cancellation charges, refund terms upfront
What's the story
The Indian government has introduced a new set of aviation rules, mandating airlines to clearly display cancellation charges and refund conditions. The regulations were notified by the Ministry of Civil Aviation (MoCA) on October 26, and published in the Gazette of India on October 31. They will come into effect from January 1, 2027. The new rules are part of the Bharatiya Vayuyan Niyam, 2026, which replaces the Aircraft Rules, 1937.
Transparency requirement
Breakdown of fares, taxes and fees required
As per Rule 192 of the Bharatiya Vayuyan Niyam, 2026, airlines will have to display the total amount payable by a passenger on their booking websites and on the booked ticket.
This should include a complete breakdown of the fare, taxes, fees, cancellation charges, refund conditions and any other charges separately.
The requirement is applicable to both Indian and foreign airlines operating scheduled flights to, from or across India.
Tariff publication
Airlines to publish tariffs
The new rules also require all airlines to publish their tariffs on their websites or other digital platforms in a format and manner specified by the Directorate General of Civil Aviation (DGCA). This is aimed at ensuring wider public awareness and transparency.
Indian scheduled airlines are also required to submit their tariffs to the DGCA in the form, manner and at intervals specified by the regulator.
Regulatory oversight
Monitoring by DGCA
The DGCA will monitor the tariffs set by these domestic carriers under the new rules.
The provisions build on disclosure requirements that already existed under the Aircraft Rules, 1937.
However, the 2026 rules specifically include cancellation charges and refund conditions in the list of particulars that must be displayed by airlines.
Fare regulation
No cap on airfares
The new aviation rules also require airlines to establish tariffs based on factors including the cost of operation.
However, they don't impose a blanket cap on airfares or mandate government approval for every ticket price.
This means that airlines will continue to determine fares under normal circumstances.
The new framework does provide for tariff submission and monitoring by the DGCA, along with government intervention in extraordinary situations.