During festivals, school vacations, and long weekends, the demand for tickets witnesses a major spike. Airlines raise fares as seats fill up.
Published: July 15, 2026, 6:58 AM IST
Share Article
https://www.india.com/news/india/bharatiya-vayuyan-adhiniyam-aviation-ministry-supreme-court-vikram-nath-sandeep-mehta-dgca-ram-mohan-naidu-airindia-indigo-spicejet-8473945/
Flight image (Representational purpose)
New Delhi: In a significant development, the Supreme Court on Tuesday directed the Modi government to place on record, within two weeks, the rules framed under the Bharatiya Vayuyan Adhiniyam, 2024, a legislation intended to modernise the country’s civil aviation framework. While hearing a PIL, a bench of Justices Vikram Nath and Sandeep Mehta asked the government to submit the rules before the court in a sealed cover, regardless of whether they have been laid before Parliament.
The counsel appearing for the government informed the bench that the draft rules are ready and they are in the process of translation. The counsel said the rules have to be placed before Parliament. The top court posted the matter for further hearing on August 3. The order of the top court came on the PIL seeking a robust and independent regulator that ensures transparency and passenger protection across the civil aviation sector. The plea also sought regulatory guidelines to control the unpredictable fluctuations in airfare and ancillary charges imposed by private airlines in India.
Bharatiya Vayuyan Adhiniyam
Implemented on January 1, 2025, the Bharatiya Vayuyan Adhiniyam, 2024, included several key reforms focused on modernising airline regulation and enhancing passenger rights. It replaced Aircraft Act of 1934. The scheme inducted stern guidelines to restrict sudden, unpredictable spikes in domestic airfares and establish boundaries on exploitative algorithmic pricing. It also introduces a formal, online grievance redressal system to ensure consumer concerns are addressed transparently.
How are airfares currently determined in India?
It is important to note that the airfares in India are market-driven. The airline companies use multiple pricing levels, while costs are influenced by the cost of operation (specifically Aviation Turbine Fuel, which is 40 percent of costs), aircraft capacity, seat occupancy, route competition, and seasonality.
Under the Bharatiya Vayuyan Adhiniyam, 2024 airlines fix “reasonable tariffs” monitored by the Tariff Monitoring Unit (TMU). This group in DGCA monitors domestic routes monthly to ensure airlines do not charge fares outside the ranges they have declared on their websites.
While the government does not set prices, the DGCA can issue binding directions to airlines if it finds they are charging excessive or predatory tariffs.
What role does the government play in regulating the airline fare?
It is important to note that the government does not set the prices; the DGCA can issue binding directions to airlines if it finds they are charging excessive or predatory tariffs. Airline ticket prices are largely determined globally through dynamic pricing, where fares increase or decrease based on demand, seat availability and booking patterns. Airlines also commonly use an unbundled pricing model, offering lower base fares while charging separately for services such as checked baggage, seat selection, and onboard meals.
Why do airline ticket prices fluctuate so sharply during festivals, holidays, and emergencies?
It is often seen that the airline ticket prices fluctuate during festivals, holidays, and emergencies. This happens because airlines use dynamic pricing, a revenue management strategy that adjusts fares in real time based on demand, seat availability, booking patterns, and market conditions.
Here are the main reasons:
High demand: During festivals, school vacations, and long weekends, the demand for tickets witnesses a major spike. Airlines raise fares as seats fill up.
Limited seat inventory: It is important to note that every flight has a fixed number of seats. As lower-priced fare buckets sell out, the remaining seats are offered at higher prices.
Last-minute bookings: Passengers often book their tickets at short notice during emergencies or urgent travel situations. Last-minute tickets are typically priced higher because airlines anticipate a greater willingness to pay.
Route-specific demand: Routes on high demand experience steeper fare hikes than those with lower demand.
Competition: On routes served by multiple airlines, competition can help keep prices in check. On routes with fewer carriers, fares can rise more sharply.
Operating costs: Increases in aviation turbine fuel (ATF) prices, airport charges, taxes, or currency fluctuations can also contribute to higher ticket prices.
Special events and disruptions: Major events, natural disasters, bad weather, or flight cancellations can reduce seat availability, pushing fares even higher.
The Indian Supreme Court has asked the ruling government to submit the rules framed under the Bharatiya Vayuyan Adhiniyam, 2024 while hearing a plea seeking regulation of airfares and additional airline charges. The court was hearing a plea of a man petitioner who argued that there is no transparency in the pricing.
