NEW DELHI: The Union government on Friday informed the Supreme Court that new rules to regulate airfares have received administrative approval and will be formally notified within two weeks. The submission was made during a hearing on a petition challenging the steep hike in air ticket prices by private airlines during festivals and peak travel periods.
Appearing for the Centre before a bench comprising Justices Vikram Nath, R. Mahadevan and Aparesh Singh, Solicitor General Tushar Mehta said the rules, framed under the Bharatiya Vayuyan Adhiniyam, 2024, would be notified shortly. Taking note of the submission, the court adjourned the matter to November 16 and directed the Centre to place the notified rules before it by that date.
Court’s earlier warning
At the previous hearing, the bench had expressed strong displeasure over the conduct of airlines. It had warned that it would not hesitate to suspend services altogether if the rules were not complied with.
Market reaction
Airline stocks came under pressure amid reports that the government would introduce stringent fare regulations. Shares of InterGlobe Aviation, which operates IndiGo, the country’s largest airline, fell 1.99 per cent to Rs 4,683.20 by afternoon trade.
Sector landscape
India’s domestic aviation market is currently served by major carriers including IndiGo, Air India, Air India Express, Akasa Air and SpiceJet. Following the recent merger of Vistara and AIX Connect, a large share of the market is now concentrated with the Tata Group and IndiGo. Regional carriers such as Star Air and Fly91, along with cargo operators such as Blue Dart, also operate in the sector, but passengers have not seen better pricing. The new rules are expected to provide significant relief to ordinary air travellers.