Airlines not following fare rules could be grounded: Supreme Court
What's the story
The Supreme Court has warned that airlines not complying with the Indian government's fare directions could be grounded. The warning comes as the Centre promised to introduce new airfare regulations, including surge pricing and excess baggage charges, within three weeks. The government submitted its draft airfare rules to the Supreme Court in a sealed cover today.
Regulatory update
Interim office memorandum issued to airlines
The Centre has said that it is fast-tracking the rule-making process, although the discussions are still ongoing.
In the interim, the Ministry of Civil Aviation is using office memorandums to guide airline pricing.
However, the petitioners have claimed that airlines are not complying with these existing directions from the government.
Consumer protection
Petition seeks binding rules on airfare pricing
The petition in question calls for tighter regulation of volatile airline fares and ancillary charges on passengers.
It was filed by social activist S Laxminarayanan, who has also sought binding rules on airfare pricing, measures to tackle surge pricing, baggage charges, cancellation, and refund norms.
An independent aviation regulator with consumer-protection powers has also been demanded.
Regulatory challenges
Case has been pending for months
The case has been pending before the Supreme Court for months.
The court had earlier flagged unpredictable changes in airline fares during festivals and peak-demand periods as a "serious concern."
It specifically highlighted steep ticket-price increases during events like Kumbh Mela and other festivals.
In March, the Centre sought more time to respond to the petition due to disruptions in the aviation sector and rising fuel costs due to the West Asia conflict.
Fare regulation
Temporary caps on domestic airfares imposed in December
India had imposed temporary caps on domestic airfares in December after widespread IndiGo flight cancellations caused capacity issues and fare hikes on certain routes.
These caps were lifted in March after the government said capacity and operations had normalized.
However, airlines were directed to keep fares reasonable and transparent so that passenger interests are not adversely affected.