Supreme Court seeks Central government, DGCA response to plea alleging unfair pricing by airlines

The Supreme Court on Monday issued notice to the Central government and the Directorate General of Civil Aviation on an appeal filed by social activist S Laxminarayanan seeking clear rules and an independent regulator to curb unpredictable airfare and extra charges by private airlines [S. Laxminarayanan v Union of India, Directorate General of Civil Aviation and Airports Economic Regulatory Authority of India]..A bench comprising Justice Vikram Nath and Justice Sandeep Mehta sought response from the Union of India, Directorate General of Civil Aviation (DGCA) and Airports Economic Regulatory Authority of India (AERA), within four weeks on the public interest litigation (PIL) filed by Laxminarayanan..The petition said that unchecked and opaque airline practices, such as abrupt fare increases, fewer services, inadequate grievance redressal, and unfair algorithm-driven pricing, infringe upon citizens' fundamental rights to equality, freedom of movement and a life with dignity.."In a constitutional republic governed by rule of law, the State cannot remain a mute spectator to this ongoing violation of rights. Inaction by the State in regulating fare algorithms, cancellation policies, service continuity, and grievance mechanisms constitutes a dereliction of its constitutional duty and calls for urgent judicial intervention," said the plea. .The petition argued that air travel is frequently the only fast and practical mode of travel in urgent or challenging circumstances for employees and residents in remote or challenging-to-reach areas of India.Air travel is a "non-substitutable infrastructure service" that is necessary for exercising fundamental freedoms under Article 21 (right to life and personal liberty) in situations where rail and road options are either unavailable or impractical..Despite the Essential Services Maintenance Act of 1981's recognition of aviation as an essential service, airline pricing is still largely unregulated, it was pointed out..Unlike other essential services such as education, electricity, railways, postal services and healthcare, where fares are set through transparent and regulated processes, air travel lacks comparable oversight and is left to the unchecked discretion exercised by private airlines..The petition said that airlines freely take advantage of shortages and high demand, which is an unreasonable practice for a necessary service. Passengers frequently witness ticket prices skyrocket within minutes of booking and there are no regulations restricting demand-based hikes, it was contended..The petitioner also claimed that private airlines have unjustly cut the free check-in baggage allowance for economy passengers from 25 kg to 15 kg, a 40% reduction, thereby turning a standard ticket inclusion into an additional source of income..Because the DGCA only oversees safety, AERA only regulates airport fees, and the DGCA's Passenger Charter is not legally binding, there is a regulatory void when it comes to air prices, it was submitted..As a result, airlines are free to impose hidden fees and unpredictable pricing, especially in times of crisis, such as in the aftermath of the Pahalgam terror or during festivities like the Maha Kumbh pilgrimage, because no authority has the discretion to review or cap airfares or ancillary fees..Senior Advocate Ravindra Srivastava, with advocates Jatinder Jay Cheema, Charu Mathur, and Abhinav Verma appeared for the petitioner..Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.