Centre empowers DGCA to regulate airline fares

New Delhi: The Union government has notified new rules, Bharatiya Vayuyan Niyam, 2026, enabling intervention in airline ticket prices during extraordinary situations and in public interest. Airlines must now determine fares based on operational costs and submit details to the DGCA, which will monitor tariffs.

New regulations mandate enhanced transparency, requiring airlines to display total payable amounts, base fare, taxes, fees, and cancellation charges separately.

The new Rule 192 provides the Centre with powers to issue directions on airline fares in extraordinary circumstances, differing from the earlier Rule 135(4) which focused on excessive or predatory pricing.

India deregulated airline fare fixation in 1994, allowing carriers to set prices based on market conditions, a policy now subject to government oversight in specific scenarios. Under the new rules, the Centre can issue directions to airlines on fares if it considers intervention necessary in an extraordinary situation. Such directions must be proportionate to the circumstances and remain in force only for the specified period. The new rules also require airlines to publish their fares on websites and other digital platforms to ensure transparency and keep passengers informed.

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