Relief for flyers? SC asks Centre to place airfare regulation rules before it within 2 weeks

The Supreme Court on Monday asked the Centre to place, within two weeks, the copy of rules framed to regulate airfares under the Bharatiya Vayuyan Adhiniyam, 2024, according to Bar and Bench.

Counsel representing the Centre informed the bench that the draft rules had already been prepared and were currently undergoing the translation process. He further submitted that the rules are required to be placed before Parliament, as per PTI.

A bench comprising Justices Vikram Nath and Sandeep Mehta ordered that the rules be produced before the court in a sealed cover, regardless of whether they have already been tabled in Parliament.

The direction came during the hearing of a petition filed by social activist S Laxminarayanan, who has sought the establishment of a strong and independent aviation regulator to ensure greater transparency and protect passenger interests across the civil aviation sector. The plea also seeks regulatory measures to curb the “unpredictable fluctuations” in airfare and ancillary charges levied by private airlines in India.

"We grant two weeks' time to the respondents to place before this court in a sealed cover the rules which have been framed, irrespective of the fact whether they are placed before the Houses of Parliament," the bench noted, as per a PTI report.

Senior advocate Ravindra Srivastava, representing Laxminarayanan, mentioned that the existing rules would continue to remain applicable until the new regulations are notified and come into force.

Highlighting concerns over the “exorbitant airfares” being charged, Srivastava told the court, “The solution is that this court must consider having a robust and effective regulatory mechanism which is independent.”

The bench scheduled the matter for further hearing on August 3.

What did SC say on airfares earlier?

During an earlier hearing on May 15, the Supreme Court had observed that airfares required some degree of rationalisation and asked the Centre to take steps to provide relief to passengers.

At that hearing, Solicitor General Tushar Mehta, appearing for the Centre, informed the bench that the 2024 legislation had come into force in January 2025 and that the rules under it were being drafted.

The apex court, on November 17 last year, sought replies from the Centre and other parties on Laxminarayanan’s petition, which called for a strong and independent regulator to ensure transparency and safeguard passenger interests in the civil aviation sector.

On February 23, the Centre informed the apex court that the Ministry of Civil Aviation was actively examining the concerns highlighted in the plea.

During a hearing in January, the Supreme Court said it would look into the issue of “unpredictable fluctuations” in airfares and raised concerns over steep fare hikes during festival periods.

The Supreme court had described the sharp increase in air ticket prices by airlines as “exploitation” and directed the Centre and the Directorate General of Civil Aviation (DGCA) to submit their responses to the petition.

‘Arbitrary fare hikes, unilateral reduction of services’

The petition alleged that private airlines had, without any valid reason, reduced the free check-in baggage limit for economy class travellers from 25 kg to 15 kg, “thereby converting what was earlier part of the ticketed service into a new revenue stream”.

It further stated that the “new policy of permitting only a single piece for check-in and the absence of any rebate, compensation or benefit to passengers who do not avail themselves of check-in baggage demonstrates the arbitrary and discriminatory nature of the measure”.

The plea also contended that there is currently no regulatory authority empowered to examine or impose limits on airfares and additional charges, enabling airlines to impose hidden fees and engage in unpredictable pricing practices at the expense of consumers.

It also mentioned the "unregulated, opaque and exploitative conduct of airlines manifesting in arbitrary fare hikes, unilateral reduction of services, absence of on-ground grievance redressal and unjustified dynamic pricing algorithms directly infringes upon citizens' fundamental rights to equality, freedom of movement and life with dignity".

The plea tated that the lack of regulatory checks has led to arbitrary increases in airfares, particularly during festive seasons and weather-related disruptions, adversely affecting economically weaker passengers and those forced to make last-minute travel arrangements.

It further argued that the government’s failure to regulate fare-setting algorithms, cancellation norms, continuity of services, and grievance redressal systems amounts to a failure of its constitutional obligations and requires immediate intervention by the court.

The plea also contended that there are no regulations preventing airlines from raising ticket prices based on demand, and granting such unrestricted discretion in an essential service is unreasonable.