
Airlines must show every charge separately at the time of booking from 1 January 2027 under the Bharatiya Vayuyan Niyam, 2026, which the government notified on 31 October. The rules replace the 1937 Aircraft Rules and require carriers to display the base fare, tax, fees, cancellation charge, refund terms and any other levy on their websites and booking platforms.

The new code also allows the central government to intervene in airfares in ‘extraordinary circumstances’ through a written order in the public interest, though it does not define what constitutes such a situation. The Directorate General of Civil Aviation will monitor airline fares. The rules were framed under the Bharatiya Vayuyan Vidheyak, 2024, which replaced the Aircraft Act, 1934.
The new rules shift the burden of price clarity from the passenger to the airline. Every booking platform must now itemise base fare, tax, fees, cancellation charge and refund terms before purchase, ending the practice of showing a low headline fare that balloons at checkout. The provision for government intervention in airfares during ‘extraordinary circumstances’ is left undefined, which could mean either routine shelter or rare emergency powers. DGCA will monitor fares, but the rules do not say how. The real test starts on 1 January 2027, when airlines must comply or face enforcement.
Source: aajtak.in
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