Supreme Court to hear plea regulating airfares, hidden charges tomorrow

The Supreme Court is scheduled to hear on Moday (July 13) a plea seeking guidelines to regulate what it describes as the "unpredictable fluctuations" in airfares and ancillary charges levied by private airlines, along with the creation of an independent regulator to ensure transparency and strengthen passenger protection in the civil aviation sector.

A bench of Justices Vikram Nath and Sandeep Mehta will hear the petition filed by social activist S Laxminarayanan. The matter came after the top court earlier expressed concern over sharp variations in airfares, particularly the steep increases during festivals, and asked the Centre to address the issue.

On May 15, the Supreme Court observed that there should be some rationalisation of airfares and asked the Centre to provide relief to passengers. It noted that airlines often charge significantly different fares for the same route on the same day, raising concerns over the lack of pricing consistency.

The Centre, while acknowledging the issue, informed the court that the Bharatiya Vayuyan Adhiniyam, 2024, came into force in January 2025 and that the corresponding rules are currently under consultation. Representing the petitioner, senior advocate Ravindra Srivastava argued that similar provisions already existed under the Aircraft Act, 1937, but were not being effectively implemented.

On November 17 last year, the Supreme Court sought responses from the Centre and other stakeholders on the petition. During an earlier hearing on January 19, the court indicated that it would examine the issue of "unpredictable fluctuations" in airfares and also highlighted the sharp fare hikes witnessed during festive seasons.

The court had earlier described the steep increase in ticket prices as "exploitation" and directed the Centre and the Directorate General of Civil Aviation (DGCA) to file their responses.

The petition also challenges what it calls arbitrary ancillary charges imposed by private airlines. It alleges that airlines have reduced the free check-in baggage allowance for economy-class passengers from 25 kg to 15 kg without any credible justification, effectively converting a previously included service into an additional source of revenue.

It further argues that the policy permitting only a single check-in baggage piece, without offering any rebate or compensation to passengers who do not check in baggage, is arbitrary and discriminatory.

According to the plea, there is currently no regulatory authority empowered to review or cap airfares or ancillary charges, allowing airlines to impose hidden fees and adopt unpredictable pricing practices without adequate oversight.

The petitioner contends that the "unregulated, opaque and exploitative conduct" of airlines, including arbitrary fare hikes, unilateral reduction of services, lack of effective on-ground grievance redressal and the use of dynamic pricing algorithms, infringes upon citizens' fundamental rights to equality, freedom of movement and life with dignity.

The plea also states that the absence of regulatory safeguards enables airlines to sharply increase fares during festivals, emergencies and weather-related disruptions, disproportionately affecting economically weaker and last-minute travellers.

It further argues that the State's failure to regulate fare algorithms, cancellation policies, service continuity and grievance redressal mechanisms amounts to a dereliction of its constitutional duty.

The petitioner has sought urgent judicial intervention, contending that there are currently no rules preventing airlines from increasing fares solely on the basis of demand in what it describes as an essential public service. The matter is now scheduled to be heard by the Supreme Court on July 13.

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