Politics · India · 1 hr ago

India allows airfare intervention in extraordinary situations under new rules

India allows airfare intervention in extraordinary situations under new rules

India has introduced new rules for airline fares under which the government can issue written directions to airlines in extraordinary situations when it considers intervention necessary in the public interest.

The rules apply to airlines operating in India, but the sources give different names for the legislation and differ on when it takes effect: one says the rules were made under the Bharatiya Vayuyan Adhiniyam, 2024, while the other says they fall under the Bharatiya Vayuyan Niyam, 2026, and take effect on January 1, 2027.

The government is not setting routine fare caps, and airlines can continue to set prices based on market conditions.

Airlines must submit their tariffs to the Directorate General of Civil Aviation and publish them online.

Passengers must be shown the total price and its components, including the base fare, taxes, fees, cancellation charges and refund conditions.

The rules formalise a way for the government to respond to fare spikes during exceptional events, after earlier interventions during the pandemic and other emergencies.

Any government directions must be proportionate to the circumstances and last only for a specified period.

3 sources

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The central governmentGovernment
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
via Times of India