India
India Sets New Airfare Rules to Promote Transparency and Market‑Driven Pricing
India has introduced new airfare regulations that will take effect on 1 January 2027 under the Bharatiya Vayuyan Niyam, 2026. The rules allow airlines to set fares based on operational costs, but require them to disclose a detailed breakdown of the total price to passengers. Airlines must separately list base fare, taxes, fees, cancellation charges, refund conditions and any other applicable charges on their websites to enhance transparency.
The government will not intervene in fare setting except in “extraordinary situations” where it deems it necessary in the public interest. In such cases, the central government may issue written directions that are proportionate to the circumstances and limited to a specified period.
The new policy maintains the current approach of letting market forces determine airfares while giving the government a “strong lever” to prevent sharp price surges during exceptional demand spikes on certain routes. The regulations were announced in a gazette notification on 31 October, following a report by TOI on 17 October that India has no plans to regulate or cap airfares in the free market.
Airlines are required to submit their tariff details to the Director General of the DGCA in the prescribed form, manner, and periodicity, and to publish the tariffs online for public awareness and transparency.