Home/MARKETS/INDIA/Article
MARKETS

Supreme Court urges Indian government to rationalise airfares amid price disparities

India's Supreme Court urged the government to address airfare disparities. New aviation rules are being drafted under Bharatiya Vayuyan Adhiniyam, 2024. The court seeks relief for passengers facing erratic pricing, with next hearing set for July.

BRIC Team
BRIC Team
Jul 13, 2026 · 2 min read · 14 views
Supreme Court urges Indian government to rationalise airfares amid price disparities

Key Takeaways

  • On May 15, 2026, the Supreme Court of India highlighted airfare discrepancies, with one airline charging ₹8,000 and another ₹18,000 for the same route.
  • Solicitor General Tushar Mehta confirmed that the Bharatiya Vayuyan Adhiniyam, 2024, is currently in the consultation phase.
  • Justice Sandeep Mehta emphasized the need for immediate relief for passengers facing erratic airfare fluctuations during peak travel times.
  • The Union government is drafting new rules under the 2024 Act to replace the Aircraft Rules of 1937, aiming for expedited implementation.
  • The proposed rules will undergo mandatory parliamentary oversight for at least 30 days, ensuring transparency and public interest.

India's Supreme Court pressed Union government to move quickly on airfares,pointing to wide price gaps among airlines on same routes. On May 15,2026, Justices Vikram Nath and Sandeep Mehta tackled public interest case from activist S. Laxminarayan,pushing for binding rules to curb arbitrary pricing and extra charges,especially during peak travel times.

Solicitor General Tushar Mehta,speaking for DGCA and government, told court the Bharatiya Vayuyan Adhiniyam, 2024 is in place,with rules still being consulted on. He promised all angles would be looked at in making these rules .

But Justice Mehta worried about passengers facing wild fare swings. One airline might ask ₹8,000 for flight, another ₹18,000,on same day. "Try to provide some relief to passengers in view of this disparity," he urged.

While acknowledging issue,Mehta stressed long-term fixes need statutory rules under new aviation framework. "I am not disputing problem, but solution has to be by statutory rules," he said. Meanwhile,senior advocate Ravindra Srivastava,for petitioner,argued existing powers aren't being used well. Even under old Aircraft Act of 1934,authorities could tackle predatory pricing.

"They are not issuing any directions. Rules are there, power is there, but it is a case of non-exercise of powers," he contended . Bench agreed,stressing need for airfare rationalization and asked about timeline for finalizing new rules .

Mehta said process is underway but would take "some time". Next hearing set for July; petitioner can respond to government's affidavit .

Filed by advocate Charu Mathur,the petition flagged lack of regulatory body to review or cap airfares. This lets airlines impose hidden fees, unpredictable pricing,hitting poorer passengers hardest who must buy during peak surge pricing . Wealthier travelers can book in advance.

In its affidavit,Union government stated Ministry of Civil Aviation and DGCA are in "advanced stage" of drafting rules under 2024 Act,replacing Aircraft Rules of 1937. Government is pushing to speed this up given current situation.

DGCA noted issues in petition,like surge pricing during holidays and baggage fees,are under review for new regulations. It suggested treating public interest litigation as recommendations and closing it .

Government's push to make air travel cheaper is clear in its shift from command-and-control to deregulated model with safeguards. Affidavit noted Union steps in decisively when market behavior threatens public interest,as seen during pandemic and other events.

Also,Centre noted rule-making involves layers of scrutiny, including mandatory parliamentary oversight under Section 35 of 2024 Act. Proposed rules must go before both Houses of Parliament for at least 30 days. Affidavit finished,"This rigorous statutory process is essential to ensure that the proposed rules are clear,effective,and in the public interest…"

#India

Share this article

Related Articles

Supreme Court directs Centre to submit new aviation rules on airfares by July 2026

Supreme Court directs Centre to submit new aviation rules on airfares by July 2026

India's Supreme Court has ordered the government to submit new aviation rules to control airfare spikes. The court demands public consultation before Parliament sees them, amid concerns over unchecked pricing during peak times and holidays.

BRIC Team

Jul 13, 202616 views
LGT Fund Management trims Caterpillar Inc. holdings by 16.3% in July 2026

LGT Fund Management trims Caterpillar Inc. holdings by 16.3% in July 2026

LGT Fund Management cut its Caterpillar stake by 16.3%, holding 6,720 shares worth $4.76 million. As other investors adjust positions, market sentiment on Caterpillar remains mixed amid insider sales and bullish analyst outlook.

BRIC Team

Jul 13, 202616 views
India and Australia finalize uranium export arrangements during Modi's visit

India and Australia finalize uranium export arrangements during Modi's visit

India and Australia completed a deal allowing Australian uranium exports to India's private sector. This move aims to boost India's energy security amid geopolitical tensions and support its nuclear energy ambitions.

BRIC Team

Jul 13, 202616 views
Supreme Court hears plea today on predatory airfares affecting 1 million passengers

Supreme Court hears plea today on predatory airfares affecting 1 million passengers

Supreme Court hears a petition today for an independent body to handle soaring airfare complaints. The petitioner argues government has failed to protect travelers from exploitative pricing, affecting 1 million daily. Government's assurances seen as inadequate.

BRIC Team

Jul 13, 202620 views
CorroHealth retrenches 800 employees in Kerala amid operational losses

CorroHealth retrenches 800 employees in Kerala amid operational losses

CorroHealth Infotech cut 800 jobs in Kerala, citing losses, with state officials calling it illegal. Labour Minister Bindu Krishna to discuss with Union Minister amid criticisms of Labour Codes weakening protections. Raises questions on worker rights and corporate accountability.

BRIC Team

Jul 13, 202619 views
Carnegie Investment Counsel increases stake in Norfolk Southern Corporation by 5%

Carnegie Investment Counsel increases stake in Norfolk Southern Corporation by 5%

Carnegie Investment Counsel upped its stake in Norfolk Southern by 5.7%, now holding 125,768 shares worth $34.16 million. Norfolk Southern's stock climbed to $327.60, backed by strong earnings. Analysts hold mixed views, with a consensus 'Hold' rating.

BRIC Team

Jul 13, 20269 views