The Indian government has introduced the Bharatiya Vayuyan Niyam 2026 to enhance customer transparency and allow price intervention, requiring airlines to disclose detailed fare breakdowns and cancellation charges while the DGCA monitors tariffs.

The Indian government has introduced the Bharatiya Vayuyan Niyam 2026 to enhance customer transparency and allow price intervention, requiring airlines to disclose detailed fare breakdowns and cancellation charges while the DGCA monitors tariffs.

The Indian government has introduced the Bharatiya Vayuyan Niyam 2026 to enhance customer transparency and allow price intervention, requiring airlines to disclose detailed fare breakdowns and cancellation charges while the DGCA monitors tariffs.

Airticket fares are in focus as the government introduces aviation rules to improve customer transparency and price intervention under specific conditions.

The Civil Aviation Ministry on Saturday notified that the Bharatiya Vayuyan Niyam 2026 will replace the Aircraft Rules of 1937. The rules will take effect from the beginning of 2027.

Though the legislation was passed in 2024, it comes into effect as major carriers such as Indigo increase flight fares, citing increased Airline Turbine Fuel (ATF) costs. As of November 1, ATF prices rose by 1.37 per litre, shifting to ₹138.50 per litre from ₹137.12 per litre.

Rule 192 of the Bharatiya Vayuyan Niyam explains that the Directorate General of Civil Aviation (DGCA) will strictly monitor airline tariffs. Prices shall be determined based on clear factors such as the cost of operation and are to be submitted to the DGCA on a periodic basis.

The rule further expands that airlines must mandatorily disclose transparent cancellation charges and refund conditions to passengers. The Central government will also have the power to intervene in airline ticket prices during extraordinary situations.

Ticket pricing transparency

According to the new rules, an airline must disclose the tariffs on its digital booking platform. It must provide a clear breakdown of the total amount, indicating the fees to be paid to service providers for the service, the cost of operation, and the tax payable to the government.

The airline must show passengers the total amount payable during the booking process and on their tickets.

However, while this may allow customers to compare the pricing between different airlines, it might not necessarily mean a drop in ticket fares.

Government intervention

The new rule also states that the central government can order an airline to change tariffs for a short period of time if it concerns the public’s interest. The exact conditions under which the government can intervene have not been specified.

India deregulated airline fare fixation in 1994, allowing airlines to determine ticket prices and ending the government’s direct monopoly and control over domestic ticket pricing. Airlines will continue to establish their own tariffs based on market conditions.

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