The Ministry of Civil Aviation has notified the Bharatiya Vayuyan Niyam, 2026, introducing provisions for aircraft management, shared ownership, aircraft deregistration and airline ticket pricing.
The regulations, which come into force on January 1, 2027, replace the Aircraft Rules, 1937, which have governed India’s civil aviation sector for nearly nine decades.
Published in the Gazette of India on October 31, the rules have been framed under the Bharatiya Vayuyan Adhiniyam, 2024, which replaced the Aircraft Act, 1934. They cover aircraft registration, certification, operations, maintenance, personnel licensing and other regulatory requirements across the aviation sector.
Among the provisions relevant to aircraft leasing is Rule 44, which requires the Central Government to deregister an eligible aircraft within five working days of receiving an application from an authorised IDERA holder, along with the prescribed documents.
An Irrevocable Deregistration and Export Request Authorisation (IDERA) allows an authorised party, generally a lessor or financier, to seek deregistration and export of an aircraft under the Cape Town Convention.
The provision does not require consent from the aircraft operator or anyone else, but the applicant must meet the specified documentary requirements. The provision sets a five-working-day deadline for deregistration once the prescribed documents and conditions are satisfied.
The rules also provide for aircraft management service providers (AMSPs) and aircraft owned by multiple individuals or entities, an important development for India’s business aviation sector.
Under Rule 188, aircraft with shared legal ownership may be operated through an authorised aircraft management service provider or under a dry lease arrangement with a single entity responsible for operations and maintenance. Aircraft management service providers must obtain DGCA authorisation, although certain air operator permit holders are exempt from obtaining separate authorisation, subject to regulatory conditions.
The provision permits aircraft owned by multiple individuals or entities to operate under specified management or leasing arrangements, providing a regulatory framework for fractional ownership. The operational arrangements must comply with the requirements specified by the Directorate General of Civil Aviation (DGCA).
For commercial airlines, Rule 192 retains market-based airfare determination while allowing the Central Government to issue written directions when an extraordinary situation arises and intervention is considered necessary in the public interest. Such directions must be proportionate to the circumstances and remain valid only for a specified period.
The rules do not introduce a permanent ceiling on ticket prices or define a fare increase that would automatically trigger government intervention.
Regulatory oversight of airfares existed under the Aircraft Rules, 1937. The earlier Rule 135 empowered the DGCA to issue directions against excessive or predatory tariffs and oligopolistic practices.
The new regulations also require airlines to display the total ticket price, with separate details of fares, taxes, fees, cancellation charges, refund conditions and other applicable charges on booking websites and issued tickets. While fare and tax disclosures were required under the earlier framework, the new rules explicitly include cancellation charges and refund conditions.
Scheduled domestic airlines must submit tariff details to the DGCA at prescribed intervals and publish their tariffs digitally.
Other provisions cover aircraft design and manufacturing approvals, airworthiness, maintenance, aerodrome operations, aviation personnel licensing and medical fitness, and flight and duty time limitations. Many of these requirements existed under the previous regulatory framework.
The notification also contains provisions protecting the validity of earlier regulatory actions, approvals and permissions, subject to the applicable rules.
The Bharatiya Vayuyan Niyam, 2026, therefore extends beyond airline operations, with specific provisions affecting aircraft leasing, private aviation, airline pricing and passenger information under India’s revised aviation regulatory framework.
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