Rules to curb volatile airfares to be published in two weeks, Pg10

Key Highlights:

• The Centre informed the Supreme Court that administrative approval has been granted for new aviation rules aimed at regulating volatile airfares and predatory pricing.
• These rules are framed under the Bharatiya Vayuyan Adhiniyam, 2024 and are expected to be published within two weeks.
• The Supreme Court is hearing a Public Interest Litigation (PIL) filed by social activist S. Laxminarayan, seeking binding regulatory norms against arbitrary airfare pricing.
• The PIL highlighted the absence of a regulatory authority to review or cap airfares, leading to consumer exploitation, especially during festive periods and emergencies.
• The Supreme Court has asked the Solicitor General to place the published rules before it by the next hearing date, scheduled for November 16.

Detailed Insights:

• The new aviation rules are intended to replace the Aircraft Rules, 1937, providing a modern regulatory framework for civil aviation.
• The Bharatiya Vayuyan Adhiniyam, 2024 came into effect on January 1, 2025, superseding the nearly 90-year-old Aircraft Act of 1934.
• The Directorate General of Civil Aviation (DGCA) will be instrumental in monitoring and implementing these new regulations.
• The upcoming policy aims to enhance transparency by requiring airlines to itemize fare components and periodically submit their fare ranges to the DGCA.
• While the government does not intend to cap airfares in a free market, it will retain the power to intervene and regulate fares during "exceptional and extraordinary circumstances" such as natural calamities.
• The Supreme Court has previously emphasized the need for "rationalisation" in airfares, noting significant price disparities for economy class tickets on the same routes and dates.
• The new rules are expected to mandate airlines to publish fare charts, ensure pricing transparency, establish mechanisms for monitoring predatory pricing, and provide for passenger grievance redressal.

Key Concepts Involved:

• Bharatiya Vayuyan Adhiniyam, 2024: An Act of the Indian Parliament that provides a modern and comprehensive legal framework for regulating civil aviation, replacing the Aircraft Act of 1934.
• Directorate General of Civil Aviation (DGCA): The statutory regulatory body in India responsible for safety oversight, airworthiness standards, and regulation of civil aviation.
• Public Interest Litigation (PIL): A legal action initiated in a court of law for the protection of public interest, where any public-spirited citizen or the court itself can seek judicial redress.
• Predatory Pricing: A commercial strategy where a dominant firm temporarily reduces prices below cost to eliminate competitors, with the intent to raise prices to monopolistic levels later.