NEW DELHI: India has adopted new airfare rules where government will not interfere in the process except “in an extraordinary situation (where) it considers it necessary to do so in the public interest.” Notified under the Bharatiya Vayuyan Niyam, 2026, which will be applicable from Jan 1, 2027, government has continued its policy of letting market forces determine airfares without government interference.TOI reported on Oct 17 that India has no plans to regulate or cap airfares in the free market under which airlines here operate under the new airfare policy being finalised. However, it will keep a “strong lever” on airlines to ensure they don’t resort to very sharp surges in “exceptional and extraordinary circumstances” that see demand rising for certain routes.“Every air transport undertaking… shall establish tariff based on factors including cost of operation…. (They) shall submit tariff to the Director General (DGCA) in such form, manner and periodicity as may be specified…. (They) shall publish tariff on their websites… for wider public awareness and transparency,” says the gazette notification published Saturday (October 31).
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Airlines have been asked to give a break-up of tariff in terms of the total amount payable by a passenger and break-up of the same by displaying components like base fare, tax, fees, cancellation charges, refund conditions and any other charge separately.Regarding intervention in “extraordinary circumstances,” it says: “Where the central government is of the opinion that (in) an extraordinary situation it may, by order in writing, issue such directions in public interest…. such directions shall be proportionate to the circumstances and shall remain in force for the period specified only.”
