The Centre has notified new airfare rules that retain market-based pricing but allow intervention in extraordinary situations. The development came as a parliamentary panel on Monday questioned representatives of IndiGo and Air India over rising ticket prices, with the airlines citing high jet fuel costs and longer flying routes due to the closure of Pakistan’s airspace since Operation Sindoor.The rules, notified under the Bharatiya Vayuyan Niyam, 2026, will come into force from January 1, 2027. They make it clear that the government will not ordinarily regulate or cap airfares but can step in when it considers intervention necessary in the public interest.Under the notified provisions, every air transport undertaking will have to determine its fares on the basis of various factors, including operational costs, submit its tariff details to the Director General of Civil Aviation (DGCA) in the prescribed format and at specified intervals, and publish fares on its website to ensure transparency and public awareness.Separately, the Parliamentary Standing Committee on Public Undertakings, chaired by BJP MP Baijayant Panda, raised concerns over high airfares during a meeting with senior officials of Air India and IndiGo on Monday.According to sources, airline representatives told the panel that rising aviation turbine fuel (ATF) prices and the closure of Pakistan’s airspace had increased operating costs. The meeting with the airlines followed discussions with the Directors General of the Bureau of Civil Aviation Security (BCAS) and the Aircraft Accident Investigation Bureau (AAIB).During the earlier discussions, the panel reviewed measures to adopt global aviation practices in India and issues concerning aircraft security, the sources said.The cost pressures cited by the airlines come amid mounting financial strain across the sector. IndiGo, the country’s largest carrier, reported a loss of Rs 1,879.1 crore in the September quarter due to high fuel costs and rupee depreciation. Air India’s losses nearly doubled in 2025-26.