Centre notifies rules letting it step in directly if airlines hike fares arbitrarily

Whether it is the festive season or the holiday rush, air tickets soar and ordinary passengers take a heavy hit. Against this backdrop, the Centre has notified new rules on airfares. Passengers have been troubled by the crisis in the Middle East, rising global crude oil prices and the exorbitant fares charged by airlines during festivals. The move is meant to give them relief.

The Union Ministry of Civil Aviation has formally issued the notification under the name "Bharatiya Vayuyan Niyam, 2026". Under it, the Central government can intervene directly in air ticket prices in the public interest in any emergency or special circumstance in the country.

If an extraordinary situation arises in the country or internationally in which airlines could fleece passengers or charge unreasonable fares, the government can issue binding directions to the airlines on fares. These directions will be temporary and will apply only for a fixed period. The intent is to preserve market flexibility while also stopping the exploitation of passengers.

Under Rule 192, every airline operating scheduled services in the country must take operational cost and other important factors into account when fixing ticket prices or tariffs. It will be mandatory to submit detailed information on these fares regularly to the Directorate General of Civil Aviation (DGCA). If the government feels that unrestrained fare increases are taking place in the market against the interest of passengers, it can issue a written notice to rein them in.

Stringent provisions have also been made to ensure full transparency in ticket booking. When a ticket is booked through the company's official website or a digital platform, passengers must be given a clear, separate breakdown of the base fare, government taxes, airport charges, cancellation charges, refund terms and other fees. This will let the passenger know exactly what is being charged for before making the final payment.

India deregulated airfares in 1994. Since then, airlines have been free to set ticket prices according to demand and supply. According to the Ministry of Civil Aviation, airlines generally set fares based on passenger demand, time of travel and availability. The earlier rules of 1937, however, provided for action only against unreasonably low fares or charges levied through collusion.

The new 2026 rules now give the government a legal instrument to curb inexplicable fare hikes during unforeseen crises or festivals. The rules state that they will rein in the arbitrariness of airlines and make travel safer and more transparent.