The Bharatiya Vayuyan Niyam, 2026, gives the Central Government power to intervene in airfares during extraordinary situations. Starting January 1, 2027, airlines must show a full breakdown of all charges on tickets. These rules aim to make travel costs transparent for passengers while airlines still set their own ticket prices.
India's new aviation rules have laid down fresh requirements for airline fare disclosures and given the Central Government the power to intervene in extraordinary situations in the public interest, even as airlines retain the freedom to determine their tariffs.
The Bharatiya Vayuyan Niyam, 2026, requires airlines to establish tariffs based on factors including the cost of operations. The rules will come into effect on January 1, 2027.
Under Rule 192, airlines must submit their tariffs to the Director General of Civil Aviation (DGCA) in the form and at the intervals specified by the regulator. They must also publish these tariffs on their websites or other digital platforms in the manner prescribed by the DGCA.
The rules further mandate that the total amount payable by a passenger must be displayed on the booking website and the booked ticket, along with a complete breakdown of the charges.
This must separately identify the fare, taxes, fees, cancellation charges, refund conditions and any other applicable charges.
The requirement is aimed at making the actual cost of air travel more transparent, allowing passengers to understand what they are paying for rather than discovering additional charges during the booking process.
The rules define fees as payments made to service providers for facilities or services provided to passengers, while taxes refer to amounts payable to the government.
The tariff established by scheduled domestic air transport operators will be monitored by the DGCA.
Centre can step in during extraordinary situations
Rule 192(6) empowers the Central Government to issue written directions to air transport undertakings if it believes an extraordinary situation has arisen and intervention is necessary in the public interest.
However, such directions must be proportionate to the circumstances and remain in force only for the period specified by the government.
The rules do not define what constitutes an extraordinary situation or prescribe a specific threshold for government intervention. They also do not introduce a general cap on airfares or require routine government approval of ticket prices.
What changes for the DGCA?
An important change in the final rules concerns the DGCA's powers to act against excessive or predatory airfares.
Under Rule 135(4) of the Aircraft Rules, 1937, the regulator could issue directions to airlines found to have established excessive or predatory tariffs or indulged in oligopolistic practices.
The Civil Aviation Ministry had acknowledged this provision in a February 2025 reply to a question in the Rajya Sabha.
The July 2025 draft of the new aviation rules had also proposed retaining a version of the DGCA's power to issue directions against excessive or predatory tariffs and inappropriate market conduct.
However, this specific enforcement provision does not find a place in the final Rule 192.
While the DGCA retains the responsibility of monitoring airline tariffs under the new framework, the explicit provision empowering it to issue directions against excessive or predatory pricing has been dropped.
The new rules instead give the Central Government the power to intervene in extraordinary situations.
The provisions apply to Indian operators permitted to operate scheduled domestic services as well as foreign airlines permitted to operate scheduled services to, from or across India.