New rules to regulate volatile airfares to be published in two weeks, Centre tells SC

The Centre on Friday (October 16, 2026) informed the Supreme Court that administrative approval had been granted for new aviation rules framed under the Bharatiya Vayuyan Adhiniyam, 2024 (2024 Act) to regulate volatile airfares and predatory pricing, and that they were likely to be published within two weeks.

Solicitor General Tushar Mehta, appearing for the Union government and the Directorate General of Civil Aviation (DGCA), told a Bench of Justices Vikram Nath, R. Mahadevan and Aparesh Kumar Singh that the rules had been finalised.

“The rules have been finalised and administrative approval has been granted. The same would be published within two weeks,” Mr. Mehta said.

The court was hearing a public interest litigation (PIL) petition filed by social activist S. Laxminarayan seeking binding regulatory norms to curb arbitrary airfare pricing and ancillary charges levied by private airlines during festive periods, holidays and emergencies.

Steep airfares ahead of Diwali

Senior advocate Ravindra Srivastava, appearing for the petitioner, however, questioned the delay in framing the rules, pointing out that concerns over steep airfares had resurfaced ahead of Diwali this year.

The Bench asked Mr. Mehta to place the rules before the court before the next date of hearing on November 16.

The petition had pointed out that there is currently no regulatory authority vested with the power to review or cap airfares, enabling airlines to exploit consumers through hidden fees and unpredictable pricing. It said such practices disproportionately affect economically weaker passengers, who are often compelled to purchase tickets during periods of peak surge pricing, while wealthier travellers can plan and book in advance.

“In a constitutional republic governed by the rule of law, the state cannot remain a mute spectator to this ongoing violation of rights. Inaction by the state in regulating fare algorithms, cancellation policies, service continuity, and grievance mechanisms constitutes a dereliction of its constitutional duty and calls for urgent judicial intervention,” the plea stated.

Earlier, the court had urged the Union government to examine measures to “rationalise” airfares, pointing to the stark disparities in fares charged by different airlines for the same routes.

Huge disparity in airfares

“Try to provide some relief to passengers in view of this disparity. On the same day, for flights operating on the same route, one airline charges ₹8,000 while another charges ₹18,000 for economy class,” the Bench had remarked while addressing Mr. Mehta.

The Union government had subsequently placed the draft rules before the Bench in a sealed cover, while informing the court that final deliberations were still underway. After examining them, the Bench had noted that although a regulatory mechanism had been proposed, there was still no clarity on an effective regulator.

In an affidavit filed before the court, the Union government had said that the Ministry of Civil Aviation and the DGCA were at an “advanced stage” of finalising rules under the 2024 Act to replace the Aircraft Rules, 1937. It had said the authorities were “making every effort” to “fast-track” the process in view of the “emerging scenario”.

The DGCA had maintained that the larger concerns raised in the petition, including surge pricing during festivals and holidays, baggage charges and algorithm-based fluctuations in airfares, were already being examined as part of the exercise to frame the new rules.

“The Government’s commitment to making air travel affordable is reflected in its shift from a command-and-control model to a deregulated regime with necessary safeguards. The Union intervenes decisively when market behaviour threatens public interest, as seen during the pandemic, the Mahakumbh, and similar regional disruptions,” the affidavit had stated.