Now Reading: Centre notifies airfare rules, effective from January 1, 2027
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Centre notifies airfare rules, effective from January 1, 2027
The Story in Brief
The Centre has notified airfare rules under the Bharatiya Vayuyan Niyam, 2026, allowing government intervention in airline tariffs during extraordinary situations. The framework will take effect from January 1, 2027.
The rules cover tariff submission, monitoring and passenger disclosures, and empower the Centre to issue written directions in public interest. Under Rule 192, the government may act if it deems an extraordinary situation has arisen, but directions must be proportionate and time-bound. The provision does not prescribe a fare ceiling or numerical thresholds for intervention.
Air transport undertakings must establish tariffs based on operational costs and submit them to the DGCA. They must publish tariffs on their websites showing the total amount payable, with a break-up of fare, taxes, fees, cancellation charges and refund conditions. The rules do not require prior government approval of individual fares or set a separate framework for monopoly routes.
Indian Opinion Analysis
The notification creates a legal basis for the government to act on airfares in crises but stops short of imposing any ceiling or formula, leaving airlines pricing freedom in normal times. The rules leave unresolved how 'extraordinary situation' will be defined and whether the government will use this power on specific routes. The DGCA will monitor tariffs, and operators must comply with submission and disclosure requirements by the January 1 deadline.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
