New Delhi: Amidst concerns over rising air ticket prices, the Central Government has notified new rules. Under these rules, the government will be able to intervene in airline ticket fares if needed in exceptional circumstances and in the public interest. This move is considered significant in light of the rising airfares amid high crude oil and aviation turbine fuel (ATF).
Under the “Indian Aircraft Rules, 2026,” notified by the Union Ministry of Civil Aviation, the Central Government has been empowered to issue fare-related directives to airlines in exceptional circumstances. These directives must be proportionate to the circumstances and will only be in effect for a specified period.
Airlines must report fare information to the Directorate General of Civil Aviation (DGCA)
According to Rule 192, airlines operating regular air services must determine ticket fares based on various factors, including operating costs. Additionally, they must submit fare-related information to the Directorate General of Civil Aviation (DGCA).
The rules state that if the government believes that an extraordinary situation has arisen and public interest requires intervention, it may issue written instructions to airlines.
Under the new rules, airlines will also be required to publish ticket fares on their websites and other digital platforms. This aims to maintain transparency in fares and provide accurate information to passengers. The DGCA will monitor the fares of airlines operating regular flights.
Disclosure of total price during ticket booking is mandatory
The new provisions also emphasize increased transparency regarding ticket prices. Airlines will be required to clearly display the total amount charged to passengers at the time of booking and on the ticket itself.
In addition, a detailed breakdown of the base fare, taxes, fees, cancellation charges, refund terms, and other applicable charges will also be required.
The rules also clarify the distinction between taxes paid to the government and fees charged by airlines for services or amenities provided to passengers.
Airlines have been setting their own fares since 1994
Airfare regulation in India was deregulated in 1994, allowing airlines to determine ticket prices based on market conditions.
According to the Ministry of Civil Aviation, airlines generally determine fares based on factors such as passenger demand, operating costs, and ticket booking time. Different price ranges are also available to passengers.
Even under the old rules, the DGCA had the authority to issue directions
Under Rule 135(4) of the Aircraft Rules, 1937, the DGCA had the authority to issue directions in the aviation sector if it detected excessive or anti-competitive pricing and market dominance by a few companies.
While the new Rule 192 retains the provision for monitoring airline fares, it does not include excessive or anti-competitive pricing and market dominance as specific grounds for government intervention.
The new framework empowers the central government to issue airfare regulations in exceptional circumstances. However, this power will be exercised only in accordance with the conditions set out in the rules.