Delhi High Court refuses to cap airfares; says auto-rickshaw fares sometimes higher than airfares

The Delhi High Court on Wednesday refused to cap airline fares. The court observed that the airline industry is "very very competitive" and currently operating at "huge losses,". The bench, comprising Acting Chief Justice Manmohan and Justice Manmeet PS Arora, emphasized that market forces should determine ticket prices.

No cap on airfare

"The industry is highly competitive and doing well today. An auto rickshaw fare is more than an airline fare," noted the bench, which plans to issue a detailed order on the matter. The court highlighted the significant investments in the sector and cautioned against over-regulation.

"It is a well-controlled sector. Every industry that is performing well should not be tampered with," the bench stated, adding that isolated incidents do not justify public interest litigations (PIL) leading to new regulations for the entire sector.

Two PILs, filed by advocate Amit Sahni and consumer rights activist Bejon Misra, represented by lawyer Shashank Deo Sudhi, sought to regulate flight ticket pricing to prevent airlines from "fleecing arbitrarily" customers.

The Directorate General of Civil Aviation (DGCA) opposed the plea, arguing that airfares depend on various factors, including routes and aircraft availability. They noted that flights often operate with very few passengers, impacting fare structures.

Ultimately, the court decided not to intervene, stressing that the competitive nature of the airline industry and its current financial struggles necessitate reliance on market dynamics rather than regulatory caps. The bench concluded that the industry does not require additional regulation, given its current performance and investment inflows.

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