Centre Notifies New Rules to Improve Airfare Transparency and Curb Sudden Price Hikes

The Central Government has notified the Bharatiya Vayuyan Adhiniyam Rules, 2026, aimed at improving transparency in airfares and enabling intervention when ticket prices rise sharply under extraordinary circumstances. Amid concerns over rising airfares due to fluctuations in crude oil prices and tensions in West Asia, the Civil Aviation Ministry has introduced provisions allowing the government to issue directions to airlines in the public interest. Although the rules do not impose a fixed upper limit on ticket prices, designated officials will monitor fares and take necessary steps when intervention is considered essential. The new rules will come into effect on January 1, 2027. The Bharatiya Vayuyan Adhiniyam, enacted in 2024, replaced the Aircraft Act dating back to the British era.

Under the new rules, airlines must publish their ticket fares on websites and digital platforms to ensure transparency and make pricing information easily accessible to passengers. The Directorate General of Civil Aviation (DGCA) will monitor the fares, while airlines must determine prices based on their operational costs and submit relevant details to the regulator. Airlines are also required to clearly display the total amount payable at the time of booking and on the ticket. The base fare, taxes, additional fees, cancellation charges and refund details must be listed separately, distinguishing government taxes from service charges collected by airlines. The move comes amid growing concerns that airlines sharply increase fares during periods of high demand. A Public Interest Litigation seeking measures to regulate such fare hikes is currently pending before the Supreme Court.