In a significant ruling that may cost fliers more for carrying luggage exceeding the stipulated weight, the Delhi High Court on Thursday set aside the Rs 100 per kg fee fixed by the Director General of Civil Aviation (DGCA) for excess checked-in baggage on private airlines. The court ruling means private airlines would not be bound by a fixed price and can go back to charging prices ranging from Rs 250 to Rs 350 per kg for excess baggage beyond 15 kg as they had been doing earlier.
Justice Vibhu Bakhru set aside the DGCA’s June 10, 2016, circular according to which private airlines had been allowed to charge Rs 100 per extra kg till 20 kg as against their earlier rates that ranged from Rs 220 to Rs 350. The circular had come into effect on July 1 last year as the court had not stayed it or deferred the date of implementation.
The court had said the amounts charged by the airlines would be restored if the Federation of Indian Airlines (FIA) succeeded in its plea challenging the circular.
The FIA, in its plea through advocate Gaurav Sarin, had said that the DGCA did not have the jurisdiction to fix tariff as this power is laid with the airlines and the fares were determined by the market forces.
It had said that the DGCA can interfere only when there are specific instances of discriminatory practices and such circulars cannot be issued in a general manner.
“Under Section 5A of the Aircraft Act, 1934, the Centre has power to issue directions with regards to regulating tariffs passed by individual airlines. Also, under various circulars issued by the Centre from time to time, they can interfere if they find airlines indulging in predatory or oligopolistic practices,” Additional Solicitor General argued on behalf of the Centre.
Currently, all domestic carriers allow free checked-in baggage up to 15 kg. Only Air India allows free baggage up to 23 kg. The DGCA in its circular had said that the airlines would be free to charge any fee beyond 20 kg of excess baggage.