The government has notified new rules allowing it to intervene in airline ticket prices in extraordinary situations and in the public interest, amid concerns over high airfares in the backdrop of elevated crude oil and Aviation Turbine Fuel (ATF) prices.
New Delhi [India], November 2 (ANI): The government has notified new rules allowing it to intervene in airline ticket prices in extraordinary situations and in the public interest, amid concerns over high airfares in the backdrop of elevated crude oil and Aviation Turbine Fuel (ATF) prices. Under the Bharatiya Vayuyan Niyam, 2026, notified by the Union Ministry of Civil Aviation, the Centre can issue directions to airlines on fares if it considers intervention necessary in an extraordinary situation.
According to Rule 192, airlines operating scheduled air services will have to determine their fares based on factors including the cost of operations and submit the tariff details to the Directorate General of Civil Aviation (DGCA). The rule states that the government may issue written directions if it is of the opinion that an extraordinary situation has arisen and intervention is necessary in the public interest.
While the newly notified Rule 192 retains the provision for monitoring airline tariffs, it does not specifically list excessive or predatory pricing and oligopolistic practices as grounds for government intervention. The new framework, however, provides the Centre with powers to issue directions on airline fares in extraordinary circumstances, subject to the conditions specified under the rules.