The Centre informed the Supreme Court on Friday that it has finalised rules to regulate airfares and would publish them within two weeks. According to reports from Moneycontrol, Solicitor General Tushar Mehta told the Supreme Court bench comprising Justices Vikram Nath, R Mahadevan and Aparesh Kumar Singh that administrative approval to the rules has been granted. The government's announcement comes in response to a public interest litigation (PIL) filed by social activist S. Laxminarayanan, challenging alleged "opaque, exploitative and algorithm-driven" pricing practices in the civil aviation sector. As per Zee News, the Supreme Court has been examining concerns over unpredictable fluctuations in airfares, particularly sharp increases during festive seasons, holidays and other peak travel periods, as well as additional charges levied by airlines.
The Supreme Court directed the government to place the published rules before it by November 16, when the matter will be taken up next. As reported by Moneycontrol, this directive ensures transparency in the rule-making process and provides stakeholders with adequate time to understand the new regulatory framework. The court had previously examined the draft rules to regulate airfares submitted by the government in a sealed cover during earlier hearings. The latest development follows an earlier Supreme Court direction issued on August 18 concerning airfare regulation, with the court warning that airlines could face stringent action, including being grounded, if they failed to comply with its directions on airfares in India.
During an August hearing, the Supreme Court had asked the Centre to ground airlines that failed to follow the rules, after the government said it was issuing office memorandums to airlines on airfare pricing until the final rules were ready. According to Moneycontrol, the Civil Aviation Ministry had told the court that airlines were not complying with these directives, highlighting the need for comprehensive regulatory framework. The bench comprising Justices Vikram Nath and Sandeep Mehta had expressed concern over unchecked increases in flight-ticket prices during peak travel periods, with the court noting that airlines could face stringent action if they failed to comply with its directions. As per Zee News, the Justice Vikram Nath-led Bench had orally remarked that "there has to be some rationalisation" in airfares charged by private airlines, observing that "on the same day, flights to the same destination — one airline charges ₹8,000 while another charges ₹18,000 in economy class".
Shares of InterGlobe Aviation, the operator of IndiGo, fell 2.86% to ₹4,641.50 on the NSE as of 1:19 pm on Friday, as reported by Moneycontrol. The stock decline reflects investor concerns about the potential impact of new airfare regulations on the airline's pricing strategies and operational flexibility. As per Business Upturn, IndiGo shares had touched an intraday low of ₹4,633.90, nearly 3% below the previous close of ₹4,778.30, with the stock opening at ₹4,780 and touching an intraday high of ₹4,807.90 before declining. The share-price decline coincided with the latest regulatory development before the Supreme Court, with the stock trading within a 52-week range of ₹3,895.20 to ₹5,970.
