The Supreme Court on Friday expressed serious concern over steep and unpredictable increases in airfares charged by private airlines during festive seasons, holidays and peak travel periods, and stressed the need for rationalisation in ticket pricing mechanisms.
The Bench of Justice Vikram Nath and Justice Sandeep Mehta, while hearing a petition seeking the formulation of regulatory guidelines to control arbitrary airfare fluctuations and additional charges allegedly imposed by airlines on passengers, pointed out substantial discrepancies in ticket prices charged by different airlines operating on the same routes on the same day.
Noting that there appeared to be no uniformity or transparency in airfare determination despite comparable services being offered in economy class across identical sectors, the Court observed that passengers required relief from excessive fare variation.
Solicitor General Tushar Mehta, appearing for the Union government and the Directorate General of Civil Aviation (DGCA), apprised the Bench that the Bhartiya Vayuyan Adhiniyam, 2024, recently came into force and that rules and subordinate legislation under the new statutory framework were presently under consultation.
The Solicitor General acknowledged the issue raised in the petition but submitted that any long-term regulatory mechanism would have to be implemented through statutory rules framed under the new aviation law. He informed the Court that the authorities were considering all relevant aspects concerning fare regulation and consumer protection.
Counsel appearing for the petitioner argued that adequate powers already existed under the previous aviation regulatory framework and contended that the authorities had failed to exercise their statutory powers to prevent predatory or excessive pricing practices by private airlines. It was submitted that the DGCA possessed the authority to issue regulatory directions in cases involving unreasonable airfare escalation, but such powers were not being effectively invoked.
The petitioner further argued that airfare hikes during holidays and festive seasons had, in several instances, increased by nearly 300 per cent, causing hardship to consumers and raising concerns over exploitative pricing practices. The Court, however, observed that the issue extended beyond seasonal travel periods and required a broader regulatory solution applicable throughout the year.
During the proceedings, the Bench also made oral remarks regarding escalation in professional fees in response to submissions concerning rising airfare costs, following which the petitioner clarified that the litigation had been initiated in the interest of consumers and public welfare.
The Supreme Court granted time to the petitioner to file a rejoinder affidavit to the response filed by the DGCA and posted the matter for further hearing on July 13, the day when the Court would open after the summer vacation.
Earlier, in February, the Bench had observed that arbitrary fluctuations in airfares during festive seasons and holidays constituted a matter of serious concern, warranting judicial consideration under Article 32 jurisdiction. The Court had previously granted time to the Union government, the DGCA and the Airports Economic Regulatory Authority of India to file counter-affidavits in the petition instituted by social activist and frequent air traveller S. Laxminarayanan, who sought judicial intervention against allegedly opaque, unchecked and exploitative airfare practices adopted by private airlines operating in India.
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