Winning Bizness Desk

Mumbai.The Supreme Court has directed the Centre to submit, within two weeks, a copy of the proposed rules aimed at regulating airfares, even as the government informed the court that the framework is ready and will be placed before Parliament within 30 days. The development comes amid growing concern over airlines sharply increasing ticket prices during festivals, emergencies and periods of high travel demand. The court made it clear that the proposed regulations must be shared with it in a sealed cover irrespective of when they are formally introduced in Parliament. The matter will now be heard on August 3.

Government's Draft Rules Ready

A Bench of Justice Vikram Nath and Justice Sandeep Mehta was hearing a public interest litigation (PIL) challenging the wide fluctuations in domestic airfares and the alleged arbitrary pricing adopted by private airlines. During the hearing, the Centre told the court that it has already prepared the regulatory framework to oversee airfare pricing and plans to present it before Parliament within a month.

However, the Bench insisted that judicial scrutiny cannot wait for the legislative process. It directed the government to file a sealed copy of the proposed rules within the next two weeks so that the court could examine the framework before the next hearing.

The PIL has sought a transparent and independent mechanism to prevent excessive airfare hikes, particularly during peak travel seasons.

Key developments in the case:

• Supreme Court has sought the proposed airfare rules within two weeks.
• Centre says the regulatory framework is complete.
• Rules are expected to be introduced in Parliament within 30 days.
• Next hearing has been scheduled for August 3.

Petitioner Flags Massive Fare Differences

The petition was filed by social activist S. Lakshminarayanan, who has questioned the absence of an effective mechanism to regulate airfare pricing and additional charges imposed by airlines. During an earlier hearing on May 15, the petitioner argued that ticket prices on identical routes can rise by as much as 300%, especially during festivals and emergency situations.

He also urged the court to direct the government to establish a strong and independent regulator to monitor airfare revisions as well as ancillary charges collected by airlines. During that hearing, the Bench made a light-hearted observation, saying lawyers' fees too sometimes rise by 400%, drawing laughter in the courtroom before returning to the legal issues involved.

Court Has Repeatedly Pulled Up Centre

The latest direction follows a series of observations made by the Supreme Court over the past several months on the issue of airline pricing.

On April 30, the court criticised the Centre for failing to file an affidavit in response to the petition seeking regulatory guidelines for airfare and related charges. It directed the government to explain the delay and justify its request for additional time.

Earlier milestones in the case include:

• February 23, 2026: The Supreme Court termed steep airfare hikes during festivals and emergencies a matter of serious concern and sought the Centre's response.
• November 17, 2025: Notices were issued to the Centre, the Directorate General of Civil Aviation (DGCA) and the Airports Economic Regulatory Authority (AERA) over complaints of arbitrary airfare fluctuations and additional charges.

Fuel Costs Continue to Drive Pricing

While passengers have consistently complained about unpredictable ticket prices, airlines have maintained that airfare is influenced by several commercial factors, including demand, seat availability and operational costs. Industry experts point out that aviation turbine fuel (ATF), commonly known as jet fuel, remains the single biggest expense for airlines.

Jet fuel typically accounts for around 30% to 40% of an airline's operating costs. Rising fuel prices in recent years have forced airlines worldwide not only to increase ticket prices but also to revise or withdraw their financial outlooks. The government is now expected to strike a balance between protecting passenger interests and preserving airlines' commercial flexibility through the proposed regulatory framework.

What passengers can expect next:

• The Centre will submit the draft rules to the Supreme Court within two weeks.
• Parliament is expected to consider the framework within a month.
• The Supreme Court will review the proposal at the next hearing on August 3.
• The final regulations could determine how future airfare increases are monitored during peak travel periods.