Public Interest Litigation in India — Latest Development

The Supreme Court of India has urged the Union government to examine measures for the rationalisation of airfares, citing the stark disparity in ticket prices charged by different airlines for the same route on a single day. This development comes in response to a public interest litigation filed by social activist S. Laxminarayan, seeking the formulation of binding regulatory norms to address arbitrary airfare pricing and ancillary charges imposed by private airlines during festive periods, holidays, and emergencies. The Bharatiya Vayuyan Adhiniyam, 2024, which has already come into force, is expected to play a crucial role in regulating the aviation sector.

Regulatory Framework

The Directorate General of Civil Aviation (DGCA) and the Union government have been informed of the need to consider interim measures to provide relief to passengers affected by erratic and widely fluctuating airfare prices. The Airports Economic Regulatory Authority of India Act, 2008 provides a framework for the regulation of airport tariffs, but the issue of airfare rationalisation requires a more comprehensive approach. The government must balance the need to protect consumer interests with the need to ensure the financial viability of airlines, which are subject to the Companies Act, 2013 and other regulatory requirements.

• ▸The Competition Act, 2002 prohibits anti-competitive agreements and abuse of dominant position, which can be relevant in cases of price-fixing or predatory pricing by airlines.
• ▸The Consumer Protection Act, 2019 provides a framework for consumer protection and redressal of grievances, which can be applied to cases of unfair or deceptive practices by airlines.
• ▸The Civil Aviation Requirements (CARs) issued by the DGCA provide guidelines for airlines on various aspects of their operations, including pricing and tariff structures.

Significance and Challenges

The rationalisation of airfares is a complex issue that requires a nuanced approach, taking into account the interests of both consumers and airlines. The government must consider the impact of airfare pricing on the overall economy, including the Goods and Services Tax (GST) and other taxation aspects. The National Civil Aviation Policy, 2016 provides a framework for the development of the civil aviation sector, but the issue of airfare rationalisation requires a more detailed and targeted approach.

Way Forward

The Supreme Court's directive to the Union government to examine measures for airfare rationalisation is a significant development that highlights the need for a more comprehensive and effective regulatory framework. The government must consider the various stakeholders involved, including airlines, consumers, and regulatory bodies, and develop a framework that balances their interests and promotes fair competition. The National Aviation Policy, 2024 is expected to provide a roadmap for the development of the aviation sector, including the issue of airfare rationalisation.

• ▸The government must engage with stakeholders to develop a consensus on the issue of airfare rationalisation.
• ▸The DGCA must play a proactive role in regulating the aviation sector and ensuring compliance with regulatory requirements.
• ▸The Airports Authority of India (AAI) must work with airlines and other stakeholders to develop a framework for airfare rationalisation that takes into account the interests of all parties involved.