The Supreme Court rejected an urgent hearing on a plea against Diwali airfare surges. Justice Vikram Nath said, "Don't travel by air," while dismissing the request. The petitioner argued that ticket prices rose by 700 per cent. Meanwhile, airlines say high fuel costs and airport charges force them to hike fares.
It took just four words for the Supreme Court to reject an urgent hearing request linked to a plea on Diwali surge pricing of tickets by carriers. "Don't travel by air," Justice Vikram Nath said before he asked for the "next case" to be presented to the bench.
Seeking a cap on domestic airfares amid the Diwali festive season, the petitioner argued before the Supreme Court that airfares have been inflated by 700 per cent over normal fares. The counsel argued that air travel is an essential service and steep fare hikes violate Article 14, which guarantees the right to equality.
The application, which has been filed as a public interest litigation (PIL), seeks the Supreme Court's directions against what it calls arbitrary and exorbitant airfare pricing by private airlines during festive periods, holidays and emergencies.
The Centre had in October informed the Supreme Court that administrative approval had been granted for new aviation rules under the Bharatiya Vayuyan Adhiniyam, 2024, to regulate airfares and that they were likely to be published within two weeks.
The bench had asked the Centre to place the rules before the court before the next date of hearing on November 16.
The petitioner, however, wanted an early hearing.
Justice Nath wasn't impressed by the argument and dismissed the request.
The airfares across the world have been on the higher side since February, when the US and Israel launched airstrikes in Iran. Tehran, a militarily weaker nation than the US, attacked ships in the Strait of Hormuz, a sea route responsible for nearly one-fifth of global energy supplies, effectively blockading the maritime route. The supply shock sent oil prices into volatile territory, with crude prices crossing the $100 mark.
With the US hinting at renewing attacks on Iran after an uneasy cessation of violence, oil prices could further rise.
IndiGo CEO Willie Walsh said today that airfares could get higher due to record-high aviation turbine fuel (ATF) prices.
"We understand that people would prefer to have lower prices, but we have to have an eye on the financial stability of the company. We're trying to absorb as much as we possibly can," Walsh said.
He said the rising operating costs are putting pressure on the aviation industry's financial sustainability.
Fuel prices contribute 32 per cent to an airline's operating cost.
He also said that the expensive airport infrastructure has added to the financial burden.
"Airport charges are too high. We would do much better if we had lower taxes. So lower taxes, lower airport charges. That's the way forward," he said.
The Centre, meanwhile, has notified new rules allowing it to intervene in controlling airline ticket prices in extraordinary situations and in the public interest.