New airfare rules: no general fare regulation, caps only in exceptional public-interest cases

Key facts

• Under the new airfare rules, the Centre may cap unjustified airfares on individual routes only in exceptional circumstances deemed necessary in the public interest, with no general airfare cap envisaged.
• Airlines must provide the regulator DGCA with information on airfares along with a break-up of operating costs and taxes, but will retain pricing freedom without prior government approval.
• The rules come amid steep festive-season fare increases on key domestic routes during Durga Puja, Chhath Puja and year-end holiday periods.
• The rules formalise the basis for airfare assessment, replacing earlier ad hoc measures and differing interpretations on airfare intervention.
• Last week the Centre informed the Supreme Court that the rules were finalised with administrative approval and would be published within two weeks; the court directed the published rules to be placed before it by November 16, when the matter will be taken up next.