New aviation rules mandate upfront disclosure of cancellation charges, refund terms

The new rules make airline pricing more transparent at the point of booking. Under Rule 192 of the Bharatiya Vayuyan Niyam, 2026, passengers must see the total amount payable, not merely an advertised fare. The same information must appear on the booked ticket.

The breakdown must list the fare, taxes, fees, cancellation charges, refund conditions and any other charges separately. For example, a booking page cannot present only a low headline fare while leaving cancellation costs or refund terms unclear. These details must be visible in the required format.

The rule applies from January 1, 2027, when the 2026 rules replace the Aircraft Rules, 1937. The requirement builds on earlier disclosure rules, but explicitly adds cancellation charges and refund conditions. It is intended to improve public awareness and transparency without imposing a routine fare cap.

The disclosure requirements cover Indian airlines operating scheduled services. They also cover foreign airlines operating scheduled flights to, from or across India. The rule therefore applies to more than domestic carriers selling tickets within India.

For example, an Indian scheduled airline flying a domestic route must show the full payable amount and its separate charges. A foreign scheduled airline operating a flight to or from India must provide the same type of information. Both categories must publish tariffs on websites or other digital platforms in the format and manner specified by the DGCA.

The rules also place an additional reporting duty on Indian scheduled airlines. They must submit their tariffs to the DGCA in the form, manner and intervals set by the regulator. The DGCA will monitor tariffs established by domestic carriers, while the disclosure rule covers the specified Indian and foreign scheduled operations.

The rules require airlines to make each important part of a ticket’s price visible separately. The displayed breakdown must include the fare, taxes and fees, along with cancellation charges and refund conditions. Any other charges must also be identified.

For example, a passenger should be able to distinguish the basic fare from taxes and fees, then see what cancellation would cost and under what conditions a refund may be available. The booking website must show the total amount payable, and the booked ticket must carry the complete break-up as well.

Earlier rules already required airlines to display the total payable amount and a breakdown covering fare, taxes, fees and other charges. The 2026 rules specifically add cancellation charges and refund conditions to the listed particulars. They therefore expand the information passengers must receive, rather than changing the basic fare components.

The Bharatiya Vayuyan Niyam, 2026, will come into effect on January 1, 2027. On that date, it will replace the Aircraft Rules, 1937, creating the new regulatory framework for the matters covered in the rules.

The rules were notified by the civil aviation ministry on October 26 and published in the Gazette of India on October 31. They were framed under the Bharatiya Vayuyan Adhiniyam, 2024, which replaced the Aircraft Act, 1934. The new legislation received presidential assent on December 11, 2024.

The Adhiniyam came into force on January 1, 2025. The new rules build on some disclosure requirements that already existed under the 1937 rules, including displaying the total payable amount and its breakdown. They explicitly add cancellation charges and refund conditions to the information airlines must show.

Publishing tariffs gives passengers a more accessible record of the prices and charges airlines establish. Airlines must place their tariffs on websites or other digital platforms in the format and manner specified by the DGCA. The stated aim is wider public awareness and greater transparency.

For example, an Indian scheduled airline must submit its tariffs to the DGCA at the intervals and in the form the regulator specifies. The DGCA can then monitor tariffs established by domestic carriers. Passengers can consult the published digital information, while the regulator receives structured tariff information from Indian scheduled airlines.

This does not mean every fare will be approved or fixed by the government. Airlines will continue determining fares under normal circumstances. The framework adds monitoring and transparency, and permits government directions in extraordinary situations, but those directions must be proportionate and limited to a specified period.

The new framework is about disclosure and monitoring, not routine price control. It does not cap airfares, and airlines do not need government approval for every ticket price. Under normal circumstances, carriers will continue to determine their own fares.

The mechanism is more limited. Airlines must publish tariffs digitally, and Indian scheduled airlines must submit them to the DGCA in the form and at the intervals the regulator specifies. The DGCA will monitor tariffs established by domestic carriers. This creates oversight without setting one universal maximum price.

The Central government can intervene only in an extraordinary situation by issuing written directions in the public interest. Those directions must be proportionate to the circumstances and remain in force only for a specified period. Thus, passengers get more price information, while ordinary fare-setting remains with airlines.

In this framework, an airline tariff means the fare and charge structure an airline establishes for its air services. The rules require airlines to publish tariffs digitally and, for Indian scheduled airlines, submit them to the DGCA. This makes the established pricing information more visible.

The article states that airlines must establish tariffs based on factors including the cost of operation. In practical terms, a carrier’s published pricing must account for that factor when setting its fares. The tariff information is then made available through the airline’s website or another approved digital platform.

Airlines still retain control over fare-setting in normal circumstances. The DGCA will monitor tariffs established by Indian scheduled carriers, but the rules do not impose a routine fare cap or require approval for every ticket. Government directions are reserved for extraordinary situations and must be proportionate and time-limited.