Mains issueGS-2News & Analysis17 October 2026

Regulation of Airfares and Consumer Protection in the Aviation Sector

An aspirant should be able to critically analyze the necessity and challenges of government intervention in regulating market prices in essential sectors like aviation, considering consumer welfare, economic principles, and the roles of various state institutions.

Source: thehindu.comOriginal report

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Why now

The Supreme Court's intervention and the Centre's commitment to publish new rules under the Bharatiya Vayuyan Adhiniyam, 2024, highlight the ongoing debate on market regulation, consumer rights, and judicial oversight in the aviation sector, making it a pertinent issue for governance and economic policy discussions.

Core issue

The Centre informed the Supreme Court that new rules under the Bharatiya Vayuyan Adhiniyam, 2024, to regulate volatile airfares and predatory pricing, have received administrative approval and will be published soon. This development comes after a Public Interest Litigation (PIL) highlighted the absence of a regulatory authority to curb arbitrary pricing by airlines, especially during peak seasons, and the Supreme Court's repeated urging for the government to 'rationalise' airfares. The new rules aim to replace the Aircraft Rules, 1937, and address concerns like surge pricing, hidden fees, and algorithm-based fluctuations, reflecting the government's commitment to balance a deregulated regime with necessary safeguards for public interest.

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