New rules will preserve deregulated pricing but give India’s aviation regulator powers to review and potentially curb unjustified fares on individual routes during exceptional disruptions.
India’s government is preparing rules that would let it step in on airline pricing only in exceptional cases, according to businessline, while stopping short of any blanket control over domestic fares. The framework, now finalised after administrative approval, is intended to keep the sector deregulated while giving the civil aviation regulator a clearer basis to judge whether prices on specific routes are justified.
Under the proposed system, carriers would have to share fare information, along with a breakdown of operating costs and taxes, with the Directorate General of Civil Aviation. That disclosure would allow the regulator to review whether unusually high ticket prices are defensible and, if necessary, recommend intervention in the public interest. Sources told businessline that any cap would be route-specific and rare rather than a general ceiling on fares.
The move comes after sharp fare increases on busy domestic routes during recent festive and holiday periods, including Durga Puja, Chhath Puja and the year-end travel rush. Even so, airlines would still set their own prices without seeking prior government approval. Business Standard reported that the government does not plan to regulate airfares in the ordinary course, but could impose limits during emergencies such as natural disasters or major disruptions. The Times of India said the policy is designed to prevent sudden spikes in extraordinary situations, with airlines required to submit fare ranges to the DGCA periodically.
Civil aviation minister K Ram Mohan Naidu told the Lok Sabha that the government could not impose year-round fare caps because demand and operating conditions vary too widely. NDTV reported that the ministry has instead expanded routes and added flights to improve options during peak periods. The broader policy direction follows earlier temporary interventions, including domestic fare caps imposed after last year’s IndiGo disruptions and later withdrawn in March, when the ministry said airlines should exercise pricing discipline and act responsibly.
Last week, the government told the Supreme Court that the rules had been completed and would be published within two weeks. The court asked to see the published version by November 16, when the matter is next listed.
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