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India to finalise airfare surge pricing in three weeks amid Supreme Court pressure
The SC advised the government to ground airlines that are not complying with its directives, noting airfares must be rationalised to protect passengers against sharp increases during festivals
- PUBLISHED: Tue 18 Aug 2026, 6:40 PM
The Indian government announced it is expediting the framing of regulations safeguarding passengers against arbitrary airfare increases. The Supreme Court (SC), meanwhile, advised the government to ground airlines that are not complying with its directives.
The SC last month directed the national government to place the rules framed under the Bharatiya Vayuyan Adhiniyam, 2024, following a petition seeking stronger regulation of India's civil aviation in the face of arbitrary increases in airfares and excess baggage charges imposed on passengers.
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The Centre, meanwhile, assured the Supreme Court that, until the rules are finalised, the Ministry of Civil Aviation will continue to issue memorandums to airlines on pricing.
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‘Exploitative’ fare hikes
The SC has been reviewing in recent months airline pricing. As reported by CNBC TV 18, during a hearing on May 15, the SC said that airfares needed to be rationalised to provide relief to passengers against sharp increases during festivals.
The court described such steep fare hikes as "exploitation" and sought responses from the Centre and the Directorate General of Civil Aviation.
The government on Monday, August 17, submitted draft rules on air fares, surge pricing before the Supreme Court in a sealed cover, saying the rules will be finalised within three weeks.
The draft framework covers airline fares, surge pricing and excess baggage charges.
According to reports, the petition filed by S Laxminarayanan seeks “binding rules on airfare pricing and measures addressing surge pricing, baggage charges, cancellation and refund norms.”
Matter of “serious concern”
Last month, Justices Vikram Nath and Sandeep Mehta directed the government to place its proposed aviation rules before the court in a sealed cover.
During the July hearing, the petitioners argued existing regulatory framework was not being adequately enforced. They also pointed to provisions available to authorities against alleged predatory pricing and unfair practice.
Local media reports noted the SC had earlier described the unpredictable changes in airline fares during festivals and peak-demand periods as a matter of “serious concern”. The SC particularly referred early this year the sharp ticket-price increases during the Kumbh Mela and other festivals.
Meanwhile, the Bharatiya Vayuyan Adhiniyam, 2024 gives the Centre powers to frame rules for the economic regulation of civil aviation and air transport services.
The law specifically allows rules dealing with the approval, disapproval or revision of airline tariffs.
