Supreme Court Seeks Finalised Rules on Airfare Pricing IN

• The Supreme Court has sought finalised rules from the Centre on airfare pricing, surge charges, baggage fees, and refunds within three weeks.
• The Bench expressed concerns over arbitrary fare increases and additional charges imposed on passengers, highlighting the need for a binding regulatory framework.
• The Centre's draft rules are currently under review by the Supreme Court, with the government seeking additional time to finalise them.

The Court noted that existing Office Memoranda issued by authorities were not being implemented effectively, leading to inadequate regulatory oversight in the aviation sector.

The Supreme Court has been actively monitoring airline compliance with regulatory norms, particularly in relation to airfare pricing, surge charges, and passenger refunds. In a recent hearing, the Bench of Justices Vikram Nath and Sandeep Mehta expressed concerns over arbitrary fare increases and additional charges imposed on passengers. The Court noted that existing Office Memoranda issued by authorities were not being implemented effectively, leading to inadequate regulatory oversight in the aviation sector. This has sparked debate over the need for a binding regulatory framework to protect consumers from unfair practices.

The Centre's draft rules on airfare pricing, surge charges, baggage fees, and refunds are currently under review by the Supreme Court. The Bench has been pressing the government to finalize these rules within three weeks, amid concerns over airline compliance and consumer protection. Additional Solicitor General Anil Kaushik informed the Court that final discussions on the proposed rules were underway, with the Centre placing a draft framework before the Bench for consideration. However, the petitioner questioned the effectiveness of the existing regulatory mechanism and highlighted the need for greater scrutiny of airline practices.

The Supreme Court's decision on airfare rules is expected to set a precedent for future regulatory oversight in other sectors. The Bench has been hearing a plea seeking stronger consumer protection in the aviation sector, including measures to curb arbitrary fare increases and additional charges. The petitioner also referred to a statement made by the Civil Aviation Minister in Parliament, which indicated that the government could not impose a cap on airfare. This has led to concerns over the regulatory structure and the need for an independent aviation regulator with adequate powers to protect consumers.

Lawyers and compliance officers should watch for the potential impact of these new rules on their clients' businesses, particularly in terms of airline compliance and consumer protection. The Supreme Court's decision may also set a precedent for future regulatory oversight in other sectors.

Source: Original reporting via Supreme Court Seeks Final Airfare Rules On Surge Pricing, Baggage Charges, Refunds; Centre Gets 3 Weeks