New Delhi, Nov. 2 -- The Centre has empowered itself to intervene in airline ticket pricing during extraordinary circumstances, introducing a new regulatory provision that could allow it to issue fare-related directions to carriers in the public interest amid concerns over rising airfares and elevated crude oil and Aviation Turbine Fuel (ATF) prices.
The provision is part of the Bharatiya Vayuyan Niyam, 2026, notified by the Union Ministry of Civil Aviation. Under Rule 192, the government can issue written instructions to airlines if it determines that an extraordinary situation warrants intervention to protect the public interest. Any such measure must be proportionate to the circumstances and remain applicable only for the period specified in the direction.
The rules also lay down requirements for airlines operating scheduled services to determine ticket prices based on factors such as operational costs and submit their tariff details to the Directorate General of Civil Aviation (DGCA). The aviation regulator will monitor the fares fixed by these carriers.
Greater disclosure of ticket prices is another key component of the revised framework. Airlines must make their fares available on websites and other digital platforms, allowing passengers to access pricing information before booking.
Carriers will also be required to display the complete amount payable during the booking process and on tickets. They must provide an itemised account of the base fare, government taxes, service fees, cancellation charges, refund terms and other applicable costs. The regulations also differentiate between statutory taxes collected on behalf of the government and charges imposed by airlines for facilities or services offered to passengers.
The latest provisions come against the backdrop of India's liberalised aviation pricing regime. The country ended government-controlled airline fare fixation in 1994, allowing carriers to determine ticket prices according to market conditions.
The Civil Aviation Ministry has previously stated that airlines generally calculate fares based on passenger demand, operating expenses and the timing of reservations. Different pricing categories are also offered to passengers.
Under the erstwhile Aircraft Rules, 1937, Rule 135(4) authorised the DGCA to intervene through directions if it identified excessive or predatory pricing or oligopolistic practices in the aviation industry.
The newly introduced Rule 192 retains regulatory oversight of airline tariffs but does not explicitly identify these three practices as grounds for government intervention.
Instead, it establishes a broader provision allowing the Centre to issue fare-related directions when extraordinary circumstances make action necessary in the public interest. The intervention, however, will remain subject to the proportionality and time-limit conditions prescribed under the new rules.
Published by HT Digital Content Services with permission from Millennium Post.