Delhi High Court Declines to Cap Airfares, Cites Effective Regulation and Competitive Industry

In a significant ruling, the Delhi High Court has refrained from imposing caps on airfares, asserting that the airline industry is adequately regulated and characterized by robust competition. A division bench comprising Acting Chief Justice Manmohan Singh and Justice Manmeet Pritam Singh Arora dismissed two petitions urging the court to regulate air ticket prices.

The bench underscored that isolated incidents did not warrant the court’s intervention through Public Interest Litigations (PILs), emphasizing the industry’s efficiency and competitiveness. Acting Chief Justice Manmohan Singh remarked that market dynamics would naturally dictate airfare pricing, highlighting the sector’s positive performance.

The petitions, filed by lawyers Amit Sahni and Bejon Kumar Mishra, sought directives to curb arbitrary pricing by airlines, with Sahni advocating for the imposition of airfare caps nationwide to protect consumers from exploitation. Mishra echoed similar sentiments, urging the court to intervene in the public interest.

Furthermore, the petitioners demanded compensation for passengers affected by the cessation of Jet Airways operations. Advocate Anjana Gosain, representing the Directorate General of Civil Aviation (DGCA), informed the court that the authority had submitted a comprehensive affidavit addressing the issue. Gosain elucidated that airfares were contingent on various factors, including route and aircraft availability, citing instances where flights operated with minimal passenger occupancy.

In its decision, the Delhi High Court emphasized its reluctance to interfere with market-driven pricing mechanisms and declined to issue directives on airfare regulation. The bench pledged to provide detailed orders while disposing of the PILs, reaffirming its confidence in the existing regulatory framework governing the aviation industry.

Also Read: High Court imposes 30 thousand damages on Principal Secretary Home