Supreme Court directs Centre to place aviation rules on record: What is Bharatiya Vayuyan Adhiniyam
&imwidth=600&imheight=450&format=webp&quality=medium "Supreme Court directs Centre to place aviation rules on record: What is Bharatiya Vayuyan Adhiniyam")
Supreme Court has sought the Centre's rules under the Bharatiya Vayuyan Adhiniyam, 2024 Photograph: (Pixabay | representative image)
Supreme Court has sought the Centre's rules under the Bharatiya Vayuyan Adhiniyam, 2024 while hearing a plea on airfare regulation. The case raises questions over dynamic pricing, passenger rights, airline charges and whether India needs stricter oversight of ticket prices.
Is it possible for air tickets price to be decided by the government? Indian Supreme Court has asked the ruling government to submit the rules framed under the Bharatiya Vayuyan Adhiniyam, 2024 while hearing a plea seeking regulation of airfares and additional airline charges. The court was hearing a plea of a man petitioner who argued that there is no transparency in the pricing.
What exactly is Bharatiya Vayuyan Adhiniyam, 2024?
The Bharatiya Vayuyan Adhiniyam, 2024 was implemented in India on January 1, 2025. It included several key reforms focused on modernising airline regulation and enhancing passenger rights. It replaced Aircraft Act of 1934. It introduced strict guidelines to restrict sudden, unpredictable spikes in domestic airfares and establish boundaries on exploitative algorithmic pricing. It also introduces a formal, online grievance redressal system to ensure consumer concerns are addressed transparently.
How are airfares currently determined in India?
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Airfares in India are market-driven with airlines using multiple pricing levels, while costs are influenced by the cost of operation (specifically Aviation Turbine Fuel, which is ~40% of costs), aircraft capacity, seat occupancy, route competition, and seasonality. Similar to what happened under Aircraft Rules, 1937, under Bharatiya Vayuyan Adhiniyam, 2024 too airlines fix "reasonable tariffs." But now this is monitered by Tariff Monitoring Unit (TMU). This group in DGCA monitors domestic routes monthly to ensure airlines do not charge fares outside the ranges they have declared on their websites. While the government does not set prices, the DGCA can issue binding directions to airlines if it finds they are charging excessive or predatory tariffs.dhiniyam, 2024 propose for passenger rights and airline regulation?
How do other countries regulate airline ticket prices?
Globally, airline ticket prices are largely determined through dynamic pricing, where fares increase or decrease based on demand, seat availability and booking patterns. Airlines also commonly follow an unbundling model, offering a lower base fare while charging separately for ancillary services such as checked baggage, seat selection and onboard meals. Alongside these market-driven practices, many countries have strengthened passenger protection by requiring greater transparency in airfare display, regulating ancillary charges and providing formal grievance redressal mechanisms.
For India, experts suggest several lessons from global practices. These include creating an independent aviation regulator to oversee pricing and competition, clearly defining what constitutes a "reasonable profit" for airlines to prevent arbitrary fare hikes, and aligning with international frameworks such as the Cape Town Convention to reduce aircraft leasing costs. Other recommendations include introducing clearer norms for ancillary charges, such as baggage fees, and adopting a formula-based mechanism to moderate excessive airfare surges during natural disasters and other emergencies while preserving market competition.
