Airline fare rules under Bharatiya Vayuyan Adhiniyam to be finalised in 3 weeks, Centre tells Supreme Court
Synopsis
The Supreme Court is now threatening to ground airlines that defy its fare directives — and the Centre has responded with a firm three-week deadline to finalise regulations on airfares, surge pricing, and baggage charges under the Bharatiya Vayuyan Adhiniyam. With the next hearing on 7 September, India's aviation pricing regime faces its most consequential judicial test yet.
Key Takeaways
The Centre committed to finalising airfare and surge pricing rules under the Bharatiya Vayuyan Adhiniyam within three weeks , as of 17 August .
The Supreme Court warned it may order airlines to be 'grounded' if they continue to defy its pricing directives.
Social activist S Laxminarayanan alleged airlines are disregarding even the Centre's interim office memoranda on pricing.
The Bharatiya Vayuyan Adhiniyam, 2024 came into force in January 2025 ; corresponding rules are still being drafted.
The next Supreme Court hearing is scheduled for 7 September .
The Centre told the Supreme Court on Monday, 17 August that it would finalise new regulations governing airfares, surge pricing, and excess baggage charges under the Bharatiya Vayuyan Adhiniyam within three weeks. The assurance came as the apex court pressed the government to act against airlines flouting its directives on ticket pricing.
Key Developments in Court
The government told the bench that the proposed rules had been fast-tracked, and that the Ministry of Civil Aviation had been issuing office memoranda to airlines on pricing in the interim. Social activist S Laxminarayanan, who filed the original plea, alleged that airlines were disregarding even these directions from the Centre.
The Supreme Court responded sharply, stating that the government should 'ground' airlines that were not complying with its instructions. The matter has been posted for the next hearing on 7 September.
Background: Why the Court Intervened
The proceedings stem from a petition seeking tighter regulation of airfares and protection of passengers from arbitrary and steep ticket price increases. The Supreme Court has been scrutinising airline pricing practices for several months.
In January, the court flagged 'unpredictable fluctuations' in airfares — particularly sharp spikes during festive seasons — describing excessive fare hikes as exploitation. It had sought responses from the Centre and the Directorate General of Civil Aviation (DGCA).
Last month, the court had directed the Centre to place before it the rules framed under the Bharatiya Vayuyan Adhiniyam, 2024, which came into force in January 2025, even if those rules had not yet been tabled before Parliament. The submission was to be made in a sealed cover.
What the Government Said
Solicitor General Tushar Mehta, appearing for the Centre, had earlier informed the bench that the Bharatiya Vayuyan Adhiniyam, 2024 came into effect in January 2025 and that the corresponding rules were still being prepared. The government's latest three-week commitment is the most specific timeline it has offered the court to date.
On 15 May, the Supreme Court had directed the Centre to provide relief to air passengers and called for rationalisation of airfares — a directive the court is now monitoring for compliance.
What Happens Next
With the next hearing scheduled for 7 September, the Centre is expected to place the finalised rules before the court. If airlines are found to be non-compliant, the Supreme Court's warning of grounding carriers signals that judicial oversight could translate into direct operational consequences for the aviation industry. Passengers and industry bodies will be watching whether the new rules include enforceable fare caps or merely procedural guidelines.
Point of View
Now stretching across multiple hearings from January to August, raise a legitimate question: why did it take judicial pressure to fast-track rules for a law already seven months old? The real test is whether the finalised rules carry enforceable fare ceilings or remain aspirational guidelines — a distinction that will determine whether passengers see any relief, or whether this becomes another cycle of court appearances without structural change.
NationPress
17 Aug 2026
Frequently Asked Questions
What are the new rules the Centre is finalising for airlines?
The Centre is drafting regulations under the Bharatiya Vayuyan Adhiniyam, 2024 that will govern airfares, surge pricing, and excess baggage charges. The government told the Supreme Court on 17 August that these rules would be finalised within three weeks.
Why is the Supreme Court involved in airline pricing?
The Supreme Court is hearing a petition filed by social activist S Laxminarayanan seeking tighter regulation of airfares and protection of passengers from steep, arbitrary ticket price hikes. The court has been monitoring the issue since January, when it described excessive fare increases as exploitation.
What did the Supreme Court say about airlines not complying?
The Supreme Court said the government should 'ground' airlines that fail to comply with its directions on airfares. The court made the remark after the petitioner alleged that airlines were disregarding even the Centre's interim office memoranda on pricing.
When is the next Supreme Court hearing on this matter?
The Supreme Court has posted the matter for its next hearing on 7 September, by which time the Centre is expected to have finalised and placed the new rules before the court.
What is the Bharatiya Vayuyan Adhiniyam, 2024?
The Bharatiya Vayuyan Adhiniyam, 2024 is India's updated civil aviation law that came into force in January 2025. It provides the legal framework under which new airline regulations — including those on airfares and surge pricing — are being drafted.
