SC Directs Centre to Submit New Airfare Regulation Rules in Two Weeks

The Supreme Court of India has issued a significant directive to the Union government, instructing it to submit, within two weeks, the new rules drafted under the recently enacted Bharatiya Vayuyan Adhiniyam, 2024. This order was passed on Monday, July 13, 2026, by a bench of Justices Vikram Nath and Sandeep Mehta, who emphasized the need to address the 'unpredictable fluctuations' in airfares and ensure greater passenger protection in the country's civil aviation sector. The court's directive came during the ongoing hearing of a Public Interest Litigation (PIL) filed by social activist S. Laxminarayanan. The petitioner's plea seeks the establishment of a robust and independent regulatory mechanism to ensure transparency, fair pricing, and effective grievance redressal for air travelers. The plea highlighted concerns over arbitrary fare hikes, particularly during peak travel seasons and festivals, high ancillary charges, reduced baggage allowances, and a perceived lack of adequate oversight by existing authorities. During the proceedings, the Centre's counsel informed the apex court that the draft rules under the Bharatiya Vayuyan Adhiniyam, 2024, are prepared and are currently undergoing the translation process. These rules are intended to be placed before Parliament. However, the Supreme Court specifically mandated that these rules be submitted to the court in a sealed cover within the stipulated two-week period, irrespective of whether they have been tabled in Parliament. This is not the first instance of the Supreme Court expressing its concern over the issue of volatile airfares. Earlier, on May 15, the top court had underscored the need for 'rationalisation' of airfares and urged the Centre to devise measures to provide relief to flyers. Justices Nath and Mehta had previously flagged the exorbitant rise in airfares during festivals as 'exploitation.' They observed that different airlines often charge significantly varied fares for the same sector on the same day, indicating a lack of pricing consistency and transparency. Senior advocate Ravindra Srivastava, representing the petitioner S. Laxminarayanan, argued that passengers continue to face exorbitant fares under the existing system. He contended that despite the existence of rules under the older Aircraft Act of 1937, their implementation had been insufficient to curb exploitative practices. Srivastava also highlighted the issue of reduced free check-in baggage allowance for economy class passengers, from 25 kg to 15 kg, which he claimed has become a new revenue stream for airlines without offering corresponding benefits to passengers. The Bharatiya Vayuyan Adhiniyam, 2024, came into effect in January 2025, aiming to modernize India's civil aviation framework. The Centre's Solicitor General Tushar Mehta had previously informed the court that the corresponding rules were in preparation. The petitioner's advocate, however, submitted that under the provisions of the 2024 Act, the new rules should ideally be published for public consultation before being tabled in Parliament, a point the Bench seemingly found merit in. This development is crucial for millions of Indian air travelers who frequently experience sudden and steep increases in ticket prices, especially during high-demand periods. The Supreme Court's proactive stance is seen as an attempt to introduce a more transparent and equitable pricing mechanism, thereby safeguarding consumer interests against what has often been termed 'predatory pricing.' The lack of a robust regulatory authority with powers to review or cap airfares and ancillary charges has been a long-standing concern, allowing airlines to operate with significant autonomy in their pricing strategies. The matter is slated for further hearing on August 3, 2026, by which time the Centre is expected to have submitted the new aviation rules to the apex court.

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