The Delhi High Court Today (May 15th) remarked that the airline industry today is well-regulated and it is not appropriate for the Court to pass any directions for capping of airfares.
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NEW DELHI: The Delhi High Court today remarked that the airline industry today is well-regulated and it is not appropriate for the Court to pass any directions for capping of airfares.
A Division Bench of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora disposed of two petitions seeking regulation of the pricing of plane tickets. The Bench emphasized that isolated incidents do not justify the Court entertaining public interest litigations (PILs) on the issue or imposing new regulations on the entire sector.
“Market forces will decide the pricing [of air tickets]. The industry is doing very well today. You look at any airline flying today, it is a highly competitive industry… An auto rickshaw fare is more than the airline fare today,”
-the Bench orally remarked.
The Bench stressed that it would not pass any directions and would dispose of the PILs by way of a detailed order.
The petitions were filed by advocate Amit Sahni and Bejon Kumar Misra. They sought directions to cap airfares across the country to prevent airlines from allegedly “fleecing arbitrarily” their customers.
Sahni requested the Court to frame guidelines to prevent airline companies from charging arbitrarily, irrationally, and exorbitantly for flights. Meanwhile, Misra asked the Court to cap the prices of air tickets in public interest and moved an application demanding that passengers affected by the suspension of Jet Airways flights receive their refunds and adequate compensation.
During the hearing, advocate Anjana Gosain appeared for the Directorate General of Civil Aviation (DGCA) and stated that the authority had filed a detailed affidavit in the matter. Gosain explained that airfares depend on the routes and the availability of planes, noting that sometimes flights operate with only three passengers.
After considering the submissions, the Court decided to dispose of the PILs, recognizing the competitive nature of the airline industry and its current regulatory framework.
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