In a recent judgement by the Delhi High Court, a ruling was made regarding airfare regulation, with specific reference to the Directorate General of Civil Aviation (DGCA). The court’s decision touches upon the need for affordable airfares, the role of DGCA in monitoring pricing practices, and the importance of dynamic pricing for the growth of the aviation industry. Stay informed about the implications of this ruling on air travel in India.
Arguments
- Petitioner filed an RTI application seeking information from Respondents on airfare control.
- Respondent-DGCA explains airlines’ requirement to establish reasonable tariffs under Rule 135(1) of Aircraft Rules, 1937.
- The counsel for the Petitioner raises concerns about dynamic pricing and spikes in airfare during emergencies.
- Issues with refund mechanisms by airlines, highlighted by losses in advance booking with Jet Airways.
- DGCA is not the proper authority for the refund request to Jet Airways made by the writ petitioner in W.P.(C) No 4958/2018.
- The Petitioners seek guidelines to cap airfares to prevent arbitrary pricing by private airlines.
- Determination of airfares by demand and supply forces, with explanation on lean and high season pricing.
- Increase in airfares observed during civil agitation in February, 2016.
- Clarification on flight occupancy and the misconception of all flights being fully booked.
- The Arg. Respondent will have to approach the appropriate forum for a refund of the amount.
- The airline in question has closed its business.
- It is recommended that the Arg. Respondent takes necessary steps to liaise with the relevant authorities for the refund process.
Analysis
- Existing legal regime ensures air fares are affordable and violations are acted upon by DGCA.
- Petitioners did not provide evidence for their claim of spiked airfares.
- Dynamic pricing of airfares by airlines is seen as essential for the growth of the aviation sector.
- Rule 135(4) empowers DGCA to intervene if excessive airfares are charged.
- DGCA is tasked with safeguarding passenger interests by monitoring sudden price surges.
- Compliance with DGCA directions on airfares is mandatory for airlines.
- Aggrieved passengers can seek redressal for overcharged tariffs through appropriate forums.
- Court declines to direct DGCA to fix and regulate airfares for private airlines.
- Legislature’s shift to deregulation in 1994 is cited as a policy change justifying non-interference by the court.
Case Title: AMIT SAHNI Vs. UNION OF INDIA AND ANR (2024:DHC:4063-DB)
Case Number: W.P.(C)-8845/2016
