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Govt Now Controls Airline Tariffs in Emergencies
2 Nov
Summary
- New rules allow government intervention in extraordinary airfare situations.
- The Bharatiya Vayuyan Niyam, 2026, takes effect on January 1, 2027.
- Ticket prices will not have a permanent cap, but temporary government directions are possible.
New regulations are set to grant the Indian government the authority to issue temporary directions concerning airline tariffs during extraordinary situations. The Bharatiya Vayuyan Niyam, 2026, published on October 31, 2026, is scheduled to be implemented starting January 1, 2027. These rules enable the government to provide written directions in the public interest if an extraordinary situation is deemed to have arisen.
Any government intervention will be proportionate to the circumstances and will remain in effect for a limited period. However, the regulations do not define what constitutes an 'extraordinary situation' nor establish a specific numerical threshold for government intervention. Airlines will not be mandated to obtain prior government approval for setting individual fares. Furthermore, the rules do not include provisions for routes served by a single airline or a formula for fare calculation based on competition.
