**Executive Summary**
This document is the official response to Unstarred Question No. 1095 in the Lok Sabha, concerning the regulation of airfares in India. The question was raised by Shri Sanjay Uttamrao Deshmukh and Shri Sanjay Haribhau Jadhav and answered by the Minister of State in the Ministry of Civil Aviation on February 5th, 2026. The response clarifies the government's current policy and actions regarding airfare regulation, including recent temporary measures enacted in December 2025.
**Key Points / Main Content**
* **Government Airfare Regulation:**
* Airfares are generally not regulated by the Government.
* Airlines have the flexibility to determine fares based on operational needs, adhering to Rule 135 of the Aircraft Rules, 1937.
* Government maintains vigilance, intervening in exceptional circumstances to ensure affordable air travel. Examples cited: Pandemic, Maha Kumbh & Pahalgam attack.
* **Temporary Measures (December 2025):**
* In response to flight disruptions and abnormal fare surges in early December 2025, the Government temporarily capped maximum fares (stage length wise).
* The cap was implemented via order dated December 6th, 2025, and applies to scheduled domestic airline operators.
* **Tariff Monitoring Unit (TMU):**
* The Directorate General of Civil Aviation (DGCA) has established a Tariff Monitoring Unit (TMU).
* The TMU monitors airfares on 78 selected routes on a random, monthly basis.
* The purpose of the TMU is to ensure airlines adhere to their declared fare ranges.
* The TMU's monitoring covers approximately 27% of domestic air traffic.
**Impact Analysis**
**Stakeholder: Passengers**
* **Impact:** Passengers are affected by the government's general policy of non-regulation, which allows for flexible pricing but can lead to fare fluctuations. However, they benefit from government intervention during exceptional circumstances aimed at ensuring affordability.
* **Action Required:** Passengers need to be aware of the flexible pricing system and the potential for fare fluctuations. They should also be aware of any temporary measures, such as fare caps, implemented during specific periods.
**Stakeholder: Scheduled Domestic Airline Operators**
* **Impact:** Airlines have the flexibility to set fares but must adhere to Rule 135 of the Aircraft Rules, 1937. They are subject to temporary fare caps during specific periods, such as those imposed in December 2025.
* **Action Required:** Airlines must adhere to their declared fare ranges and comply with any temporary measures, such as the fare caps implemented in December 2025.
**Stakeholder: Directorate General of Civil Aviation (DGCA)**
* **Impact:** DGCA is impacted as they are responsible for the actions of the Tariff Monitoring Unit (TMU) and also play an important role in setting any temporary price caps.
* **Action Required:** The TMU must monitor fares to ensure that airlines follow the stipulated guidelines.
Key Entities Referenced
Directorate General of Civil Aviation (DGCA): The regulator for civil aviation in India that monitors airfares.
Tariff Monitoring Unit (TMU): A unit set up by the DGCA to monitor airfares on selected routes.
Ministry of Civil Aviation: The ministry responsible for civil aviation in India.
Aircraft Rules, 1937: The rules governing aircraft operations, specifically Rule 135 concerning airfare determination.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 1095
( TO BE ANSWERED ON THE 5th February 2026 )
HIKE IN AIR-FARE
1095. SHRI SANJAY UTTAMRAO DESHMUKH
SHRI SANJAY HARIBHAU JADHAV
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) whether the Government has any mechanism to regulate domestic and international
airfares and if so, the details thereof;
(b) whether the Government has taken cognizance of the inconvenience caused to
passengers due to excessive fare fluctuations and if so, the details thereof;
(c) whether the Government is considering any policy measures to address the issues
arising out of such fluctuations and if so, the details thereof;
(d) whether the Government proposes to set minimum and maximum airfares during
festivals, disasters or holiday seasons and if so, the details thereof alongwith the
timelines set in this regard;
(e) whether the dynamic pricing algorithm of airfares by airlines is disregarding
passengers interests;
(f) if so, whether the Government proposes to introduce any regulatory mechanism in
this regard and if so, the details thereof; and
(g) whether the Government is contemplating to publish a fare index for different routes
to provide fare estimates to passengers and if so, the details thereof?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol)
(a) to (g): Airfares are not subject to regulation by the Government and airlines have the
flexibility to determine their airfares based on their operational needs, while adhering to
Rule 135 of the Aircraft Rules, 1937.
While the government generally refrains from regulating airfares to maintain market
competitiveness, however, it remains vigilant oversight role, intervening in exceptional
circumstances, such as during Pandemic, Maha Kumbh & Pahalgam attack, in order to
ensure air travel affordable for passengers.
Recently, in view of massive flight disruptions in early December, 2025 by one of the
scheduled domestic airlines & abnormal surge in airfares, the Government vide order
dated 6th Dec, 2025 has temporarily capped maximum fare (stage length wise) to be
charged by scheduled domestic airline operators.In order to enhance the transparency in airfare, Directorate General of Civil Aviation
(DGCA) has set-up Tariff Monitoring Unit (TMU) that monitors airfares on selected 78
routes on a random basis by using airlines websites on monthly basis to ensure that the
airlines do not charge airfares outside the range declared by them. This covers about
27% of the domestic traffic. By doing so, the TMU plays a critical role in maintaining
airfare levels within the boundaries of the airlines' prescribed tariffs.
******