India’s aviation sector could be heading towards a significant change in airfare transparency after the Central Government informed the Supreme Court that new rules concerning airline ticket pricing had been finalised.
On October 16, the government told the Supreme Court that the proposed rules had received administrative approval and would be published within two weeks. The development came during the hearing of a public interest litigation concerning allegedly arbitrary and excessive airfares charged by private airlines.
The issue has attracted considerable attention as domestic airfares can increase sharply during festive seasons, holidays and periods of high travel demand. Passengers have also raised concerns about additional charges and the lack of transparency in airline pricing.
The proposed framework is expected to address concerns surrounding airfare transparency and passenger protection. However, the government has not indicated that it intends to introduce routine price controls across the airline industry.
The Supreme Court scheduled the matter for November 16, asking the government to place the published rules before it.
For Indian travellers, the important question is whether the new regulations will create greater pricing transparency without restricting competition or increasing operational pressure on airlines.
The coming weeks could be important for the future of airfare regulation in India.
Source: LiveLaw – Centre informs Supreme Court about finalised airfare rules