Centre can intervene in airfares during extraordinary situations, new rules say
The Union government may issue written directions to airlines regarding airfares in the public interest under the Bharatiya Vayuyan Adhiniyam, 2024.
The Union government can now issue written directions to airlines concerning airfares during extraordinary situations to serve the public interest, according to The Hindu. These new rules were framed under the Bharatiya Vayuyan Adhiniyam, 2024, and were notified on the e-Gazette website on October 31.
The rules provide a regulatory framework for interventions, although they do not define what constitutes an extraordinary situation. The government has previously intervened in airfares during the COVID-19 pandemic, after the cancellation of nearly 5,000 IndiGo flights last December, and following natural disasters like the Kerala floods.
Under the new regulations, airlines are required to submit their tariffs to the Director General of Civil Aviation (DGCA) at specified intervals. They must also publish these tariffs on their websites or other digital platforms designated by the DGCA to increase transparency.
Booking websites and tickets must display the total price, including a specific list of the base fare, taxes, fees, and any charges for cancellations or refunds. This follows a public-interest litigation filed by social activist S. Laxminarayan seeking norms to curb arbitrary pricing during holidays and emergencies.
The government has maintained that airfares are market-driven and not subject to direct regulation, a position held since the repeal of the Air Corporations Act in March 1994. Ticket prices are expected to change based on demand, supply, fuel costs, and seasonal trends.