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Centre can direct airlines on fares in extraordinary situations

By CAShorts DeskPublished Source: The Hindu; The Indian Express; Bharatiya Vayuyan Adhiniyam, 2024 (Gazette of India); PIB (Ministry of Civil Aviation)

Centre can direct airlines on fares in extraordinary situations
Illustration (AI-generated)

New rules under the Bharatiya Vayuyan Adhiniyam, 2024 were published in the Gazette on 31 October 2026. They let the Centre direct airlines in writing on fares in extraordinary situations, in the public interest. Airlines must also file tariffs with the DGCA, publish them and show the full fare with its parts. No fare cap is set.

Syllabus: GS3 · Liberalisation & Industry; GS2 · Statutory & Regulatory Bodies; GS3 · Infrastructure

Why this matters for UPSC

GS3 economy and infrastructure: regulating airfares under the Bharatiya Vayuyan Adhiniyam, 2024. Prelims can ask what the Act covers and the DGCA's role; Mains, market pricing versus consumer protection.

Why it matters

A family booking flights home for a festival often finds the same route priced several times higher than usual. Under the new rules the ticket must show every component, from the base fare to cancellation and refund terms, so travellers can compare airlines fairly. In a flood, a pandemic or a mass cancellation, the government now has a written power to direct airlines on fares, a set framework for steps it once took through fare bands or informal appeals. The larger question is how far a deregulated market should be left alone when a service is close to essential and demand spikes at predictable times.

Prelims pointers

  • The Bharatiya Vayuyan Adhiniyam, 2024 was passed by the Lok Sabha in August 2024 and the Rajya Sabha in December 2024, and came into force on 1 January 2025.
  • The Adhiniyam carries over three bodies constituted under the 1934 law: the DGCA, the Bureau of Civil Aviation Security and the Aircraft Accidents Investigation Bureau.
  • The DGCA handles safety oversight and regulation; the Bureau of Civil Aviation Security oversees aviation security; the Aircraft Accidents Investigation Bureau investigates accidents and incidents.
  • Superintendence of all three aviation bodies vests in the Central Government, which may direct them in the public interest.
  • Rule-making on airline tariff under the Adhiniyam excludes the tariff dealt with under the Airports Economic Regulatory Authority of India Act, 2008.
  • The Adhiniyam applies to Indian citizens anywhere, Indian-registered aircraft anywhere, and foreign-registered aircraft while in or over India.

Practise a UPSC-style question

With reference to the Bharatiya Vayuyan Adhiniyam, 2024, consider the following statements:

1. It came into force on the day the President gave assent to it.

2. It repealed and replaced the Aircraft Act, 1934.

3. Under it, the Directorate General of Civil Aviation is deemed to have been constituted under the new law.

Which of the statements given above is/are correct?

  1. (a) 1 and 2 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only
  4. (d) 1, 2 and 3
Show the answer

Answer: (b) 2 and 3 only

Answer: (b) 2 and 3 only. The Act replaced the 1934 law and carried the DGCA over, but it began later than assent.

Statement 1: incorrect. The President gave assent on 11 December 2024; the Centre appointed 1 January 2025 as the date the Act came into force.

Statement 2: correct. The Bharatiya Vayuyan Adhiniyam, 2024 repeals the Aircraft Act, 1934 and re-enacts it for present needs.

Statement 3: correct. The DGCA set up under the Aircraft Act, 1934 is deemed to have been constituted under the 2024 Act.

Eliminate: statement 2 is the surest, as the Act exists to replace the 1934 law. Out: (c).

Eliminate: statement 1 is wrong because the Act began on a date the Centre notified. Out: (a), (d).

Trap: Near-miss figure. Assent in December 2024 and commencement on 1 January 2025 are close together, so a student may merge the two dates.

Remember: The 2024 Act replaced the Aircraft Act, 1934 and came into force on 1 January 2025.

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