Supreme Court Seeks Final Airfare Rules On Surge Pricing, Baggage Charges, Refunds; Centre Gets 3 Weeks

The Bench of Justices Vikram Nath and Sandeep Mehta was hearing a plea seeking a binding regulatory framework for airline pricing and passenger rights, including measures to curb arbitrary fare increases and additional charges and to establish an independent aviation regulator with adequate powers to protect consumers.

The Court, while discussing compliance by airlines, observed: “If airlines are not complying then ground them.”

Kaushik submitted that the process of framing the final rules had been fast-tracked.

The petitioner, however, questioned the effectiveness of the existing regulatory mechanism and submitted that the manner in which airlines were charging passengers required greater scrutiny.

The petitioner also referred to a statement made by the Civil Aviation Minister in Parliament and submitted that the government had indicated that it could not impose a cap on airfare.

It was further submitted that existing Office Memoranda issued by the authorities were not being implemented effectively.

Responding to the submissions, Kaushik told the Court that the Centre would complete the process within three weeks and place the finalised rules before the Bench for its consideration.

“There are still discussions going on in some aspects,” the ASG submitted.

The Bench thereafter perused the draft rules placed before it.

The Court noted that the draft contained a mechanism for regulation in rare circumstances, but expressed uncertainty regarding the proposed regulatory structure and observed that it was “not sure” about the regulator.

The ASG subsequently placed the draft rules before the Court in a sealed cover and sought additional time to finalise them.

Recording the submission, the Court noted that the Centre had sought three weeks to finalise the draft rules and place them before the Court.

The matter has been listed for September 7, when the Bench is expected to consider the finalised regulatory framework.

Background

Last month, the Court had questioned the Union Government over the delay in notifying new aviation rules amid complaints of arbitrary airline ticket pricing and inadequate regulatory oversight, directing the Centre to place the finalised rules before it within two weeks, irrespective of whether they have been laid before Parliament.

In May, the Bench had expressed concern over steep and unpredictable airfare hikes by private airlines during festive seasons and holidays, observing that there has to be some “rationalisation” in ticket pricing.

Notably, in February the Court had observed that fluctuations in airfare of private airlines during festive seasons and holidays is a matter of "serious concern". The bench had said, "This is a very serious concern. Otherwise, we don’t entertain 32 petition".