Supreme Court to Weigh Airfare Control Plea Amidst Pricing Concerns

The Supreme Court is set to hear a public interest litigation on July 13, 2026, seeking regulatory guidelines to address what the petitioner describes as 'unpredictable fluctuations' in airfares and ancillary charges by private airlines in India. A bench comprising Justices Vikram Nath and Sandeep Mehta will examine the plea filed by social activist S. Laxminarayanan, who has also called for the establishment of an independent regulator to ensure transparency and passenger protection in the civil aviation sector.

In a previous hearing on May 15, the court observed that there should be some rationalisation of airfares and directed the central government to provide relief to flyers. The bench noted that on the same day, airlines flying the same sector often charge vastly different fares. The central government, while acknowledging the issue, informed the court that the new Bharatiya Vayuyan Adhiniyam of 2024 came into effect in January 2025 and that corresponding rules are under consultation.

The petitioner, represented by senior advocate Ravindra Srivastava, argued that existing rules under the Aircraft Act of 1937 are not being enforced. The court had previously sought responses from the Centre and other parties on the plea in November last year. In January, the court flagged the exorbitant rise in airfares during festivals, terming it 'exploitation', and asked the Directorate General of Civil Aviation (DGCA) and the Centre to file replies.

The plea contends that private airlines have reduced free check-in baggage for economy class from 25 kg to 15 kg without credible justification, converting a previously included service into a revenue stream. It also highlights that the policy of permitting only one check-in piece, with no rebate for those not using it, is arbitrary and discriminatory.

According to the plea, no authority currently has the power to review or cap airfares or ancillary fees, leaving passengers vulnerable to hidden charges and unpredictable pricing. It argues that the 'unregulated, opaque and exploitative conduct of airlines'—including arbitrary fare hikes, unilateral service reductions, lack of on-ground grievance redressal, and unjustified dynamic pricing—infringes on citizens' fundamental rights to equality, freedom of movement, and life with dignity. The plea also notes that the absence of regulatory safeguards disproportionately harms poor and last-minute travellers, especially during festivals or weather disruptions.

The petition asserts that the state's inaction in regulating fare algorithms, cancellation policies, and service continuity constitutes a dereliction of constitutional duty, necessitating judicial intervention. It argues that allowing airlines to increase prices based solely on demand in an essential service sector is unjustifiable.