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

Under Rule 192 of the Bharatiya Vayuyan Niyam, 2026, airlines will have to show the total amount payable by a passenger on their booking websites and on the booked ticket

Airlines will have to disclose cancellation charges and refund conditions separately while displaying airfares to passengers under a new set of aviation rules notified by the government. The rules also provide for the publication of airline tariffs on digital platforms and monitoring of domestic carriers’ fares by the aviation regulator.

The rules have been framed under the Bharatiya Vayuyan Adhiniyam, 2024, which replaced the Aircraft Act, 1934. (Representative file photo)

These rules under the Bharatiya Vayuyan Niyam, 2026, were notified by the civil aviation ministry (MoCA) on October 26 and published in the Gazette of India on October 31. They will come into effect on January 1, 2027, replacing the Aircraft Rules, 1937.

The rules have been framed under the Bharatiya Vayuyan Adhiniyam, 2024, which replaced the Aircraft Act, 1934. The legislation was passed by the Lok Sabha on August 9, 2024, and the Rajya Sabha on December 5, 2024. It received presidential assent on December 11, 2024, and came into force on January 1, 2025.

The requirement applies to Indian airlines operating scheduled services as well as foreign airlines operating scheduled flights to, from or across India. All such airlines will also have to publish their tariffs on their websites or other digital platforms in a format and manner specified by the Directorate General of Civil Aviation (DGCA), with the stated objective of ensuring wider public awareness and transparency.

The rules require Indian scheduled airlines to submit their tariffs to the DGCA in the form, manner and at the intervals specified by the regulator. The DGCA will monitor the tariffs established by these domestic carriers.

The new provisions build on disclosure requirements that already existed under the Aircraft Rules, 1937.

The earlier rules required airlines to display the total amount payable by passengers and its break-up, including the fare, taxes, fees and other charges. The 2026 rules explicitly include cancellation charges and refund conditions in the list of particulars that must be displayed.

The rules also require airlines to establish tariffs based on factors including the cost of operation. In an extraordinary situation, the Central government can issue written directions to airlines in the public interest. Such directions must be proportionate to the circumstances and remain in force only for a specified period.

The provisions do not introduce a routine cap on airfares or require government approval for every ticket price. Hence, airlines will continue to determine fares under normal circumstances. The new framework, however, provides for tariff submission and monitoring by the DGCA, along with government intervention in extraordinary situations.