+918679601119 / +918679401119
info@pcsa.in

Regulation of Airfares in India

03 Nov 2026

Tags: Prelims   Current events of national and international importance

Source: The Hindu

Context: Centre notified new rules under the Bharatiya Vayuyan Adhiniyam, 2024, empowering the government to intervene in airline ticket pricing during extraordinary situations in the public interest.

Key Provisions

  • Government intervention: Centre can issue written directions to airlines regarding airfares during extraordinary situations.
  • Fare monitoring: Airlines must periodically submit tariff details to the Directorate General of Civil Aviation (DGCA).
  • Transparency: Airlines must publish tariffs on their websites or DGCA-specified digital platforms.
  • Fare disclosure: Tickets must display total payable amount with a breakdown of base fare, taxes, fees, cancellation charges and refund conditions.
  • No routine fare caps: Airfares remain market-driven; government intervention is permitted in extraordinary situations.

Factors Determining Airfares: Demand and supply, seat occupancy, fuel costs, aircraft capacity and seasonal trends.

  • Air Corporations Act, 1953: Repealed in March 1994, enabling greater private-sector participation and market-driven airline operations.
  • Air Transport Circular 2 of 2010: Already required airlines to submit fare data to DGCA and publish tariffs; these requirements are now incorporated into the rules.
  • Previous interventions: Fare bands were imposed during COVID-19 and following major disruptions in airline operations.
  • DGCA: Statutory regulatory body under the Ministry of Civil Aviation; regulates civil aviation safety and operational standards in India.
  • Bharatiya Vayuyan Adhiniyam, 2024: Replaced the Aircraft Act, 1934, providing the legislative framework for regulation of civil aviation in India.

Prelims Question

Q1. With reference to the regulation of airfares in India, consider the following statements:

  1. The government can issue written directions to airlines regarding airfares during extraordinary situations in the public interest.
  2. The Directorate General of Civil Aviation (DGCA) is required to monitor tariff information submitted periodically by airlines.
  3. The new rules introduce a permanent system of government-determined fare caps for all domestic airline routes.
  4. Airlines are required to disclose the total payable ticket amount along with its relevant components, including taxes and fees.

Which of the statements given above are correct?

(a) 1, 2 and 4 only
(b) 1 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (a) 

Explanation:

  • Statement 1 is Correct: The Bharatiya Vayuyan Adhiniyam, 2024 framework empowers the Centre to intervene through written directions during extraordinary situations.
  • Statement 2 is Correct: Airlines must periodically submit tariff details to the DGCA.
  • Statement 3 is Incorrect: The rules do not establish routine fare caps. Airfares remain market-driven, with intervention permitted in extraordinary situations.
  • Statement 4 is Correct: Fare disclosure includes the total payable amount and a breakdown of charges, taxes and refund conditions.

Archive

More Links

Prelims Preparation Strategy UPSC Prelims Syllabus CSAT Prelims Strategy Mains Preparation Strategy UPSC Mains Syllabus Optional Subject Preparation Strategy Potential of Optional Subject List of Optional Subject UPSC Previous Year Papers Preparation Strategy for Mains