Supreme Court to hear airfare regulation plea on July 13

The Supreme Court is scheduled to hear on July 13 a plea seeking regulatory guidelines to control the “unpredictable fluctuations” in airfares and ancillary charges imposed by private airlines in India.

A bench of Justices Vikram Nath and Sandeep Mehta will hear the plea filed by social activist S Laxminarayanan, who also sought a robust and independent regulator that ensures transparency and passenger protection across the civil aviation sector.

On May 15, the top court said there should be some rationalisation of airfares and asked the Centre to provide relief to flyers, while flagging that on the same day, one airline flying in the same sector charges a particular airfare while other charges a different airfare.

The Centre, while not disputing the problem, has submitted that a new enactment, the Bharatiya Vayuyan Adhiniyam of 2024, has come into effect in January, 2025 and the corresponding rules are in the process of consultation.

Laxminarayanan, represented by senior advocate Ravindra Srivastava, had contended that rules already existed under the Aircraft Act of 1937 but the problem was that they were not followed. On November 17 last year, the top court sought responses from the Centre and others on the plea of Laxminarayanan.

Earlier, the Centre told the apex court that the Ministry of Civil Aviation was actively considering the issues raised in the plea. While hearing the matter on January 19, the top court said it would interfere with the “unpredictable fluctuations” in airfares and flagged the exorbitant rise during festivals.

The top court had termed the exorbitant rise of airfares by the airlines as “exploitation” and asked the Centre and the Directorate General of Civil Aviation (DGCA) to file their replies on the plea.

The plea claimed that all private airlines have, without any credible justification, reduced the free check-in baggage allowance for economy class passengers from 25 kg to 15 kg, “thereby converting what was earlier part of the ticketed service into a new revenue stream”.

It said 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 claimed that currently, no authority has the power to review or cap airfares or ancillary fees, allowing the airlines to exploit consumers through hidden charges and unpredictable pricing.

It said 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”.

It said the absence of regulatory safeguards results in arbitrary fare hikes, especially during festivals or weather disruptions, which disproportionately harm poor and last-minute travellers.

The plea said inaction by the State in regulating fare algorithms, cancellation policies, service continuity and grievance mechanisms constitutes a dereliction of its constitutional duty and calls for urgent judicial intervention.

It said there is no rule to stop the airlines from increasing prices based on demand and allowing them such freedom under essential services is unjustifiable.