Airfare rules overhaul: What Centre’s new framework could mean for flyers

The Centre is fast-tracking new rules for India's aviation sector and has told the Supreme Court that they will be finalised within three weeks.

The rules are being framed under the Bharatiya Vayuyan Adhiniyam, 2024, the new law governing civil aviation. The Centre placed the draft rules before the Supreme Court in a sealed cover and said final discussions are underway.

The move comes as the court examines concerns over sharp and unpredictable increases in airfares and other passenger charges.


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The court has sought greater protection for passengers and has asked the Centre to finalise the rules. The matter will next be heard on September 7.

How do airfares work today?

India's aviation market largely operates on a dynamic pricing model, according to the Ministry of Civil Aviation.

The government has said ticket prices can change based on factors such as demand, seasonality and competition.

This means passengers can pay different prices for seats on the same flight depending on when they book.

Government has already tried a fixed-fare model

The Ministry of Civil Aviation has also backed an experiment aimed at making fares more predictable.

Under Alliance Air's 'Fare Se Fursat' initiative, passengers on select routes were offered a fixed fare that did not change depending on when the ticket was booked, including on the day of departure.

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The ministry said the initiative was aimed at giving passengers greater certainty over travel costs.

The initiative also highlighted the difference between fixed fares and the dynamic pricing model generally followed in aviation.

When can the government step in?

The government has intervened during major flight disruptions when passengers faced unusually high fares.

During the IndiGo operational disruption in December 2025, the Ministry of Civil Aviation said it invoked its regulatory powers to ensure “fair and reasonable fares” on affected routes.

The ministry directed airlines to comply with fare caps and said the measure was aimed at preventing opportunistic pricing and protecting passengers from financial hardship.The ministry also said it was monitoring fares during the disruption and would take corrective action where required.