Delhi High Court Rejects Pleas Seeking Issuance Of Guidelines To Cap Airfares For Private Airlines

The Delhi High Court has dismissed public interest litigations (PILs) seeking the issuance of guidelines for putting a cap on airfares in order to prevent private airlines from charging arbitrary, irrational and exorbitant airfares for flights.

A division bench comprising Acting Chief Justice Manmohan and Justice Manmeet PS Arora rejected the pleas filed by Advocate Amit Sahni and one Bejon Kumar Misra.

The court observed that the counter affidavit filed by DGCA showed that the airfare pricing by the private airlines is not unchecked and is being regulated by DGCA in accordance with the Aircraft Rules, 1937.

“There is thus, in place an existing legal regime to ensure that air fares are affordable and in case of any violation by the airline, the DGCA can take action against the said airline,” the court said.

It added that the Petitioners while raising grievance with respect to isolated incidents of spiked airfares did not substantiate the same with any corroborative documents.

“The Petitioners have relied upon the incidents reported in the newspaper articles, however, in the absence of any documents evidencing the claim of over-charging, which could prove violation of the applicable Aircraft Rules, 1937, there is no reason to conclude that Respondent-DGCA has failed to check the violation of the statutory rules by the airlines,” the bench said.

It added that the aviation sector being a capital-intensive sector, the regulated free play given to the airlines to implement dynamic pricing of the fares for each flight is in conformity with the norms followed worldwide and appears to be essential growth of the said sector.

“However, the interest of the passengers is to be safeguarded by DGCA, which is empowered under Rule 135 to check against sudden price surge if it is contrary to the declared highest tariff of the airline in the concerned sector. In an appropriate matter, upon proof of payment of the high tariff charge the aggrieved passenger would have a right to approach the appropriate forum for action against the erring airline(s),” the court said.

It added: “But, we are not inclined to direct DGCA to fix and regulate the airfares of the private airlines as a matter of norm.”

Counsel for Petitioners: Mr. Amit Sahni. Mr. Ankur, Mr. Parth Sharma, Mr. Vaibhav Mishra, Ms. Kanupriya Mehta, Ms. Sonali Tiwari, Mr. Shashank Deo Sudhi and Mr. Aru Prakash, Advocates

Counsel for Respondents: Ms. Anjana Gosain with Mr. Nippun Sharma, Advocates

Title: AMIT SAHNI v. UNION OF INDIA AND ANR. and other connected matter

Citation: 2024 LiveLaw (Del) 607

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