Union government can issue written directions to airlines regarding air fares in extraordinary situations
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Regulatory intervention vs market pricing: a GS3 and Ethics case study on consumer protection.
Why in news
The Union government notified rules under the Bharatiya Vayuyan Adhiniyam, 2024, allowing it to issue written directions to airlines regarding air fares during extraordinary situations.
Background
The rules were notified on October 31, 2026, following a public-interest litigation by S. Laxminarayan. Airlines are required to submit tariffs to the Director General of Civil Aviation (DGCA) and publish online breakdowns of base fares and taxes.
Facts for Prelims
- Act / BillBharatiya Vayuyan Adhiniyam, 2024: Provides the regulatory framework for airline fare directions.
- BodyDirector General of Civil Aviation (DGCA): The body to which airlines must submit tariffs.
- FactAirlines must publish detailed breakdowns of base fares and taxes online.
Prelims practice question
With reference to the Bharatiya Vayuyan Adhiniyam, 2024, consider the following statements:
- Airlines must publish online breakdowns of base fares and taxes.
- The Union government can issue written directions to airlines regarding air fares during extraordinary situations.
- Airlines are required to submit their tariffs to the Ministry of Finance.
Which of the statements given above is/are correct?
- (a)1 and 2 only
- (b)1 and 3 only
- (c)2 and 3 only
- (d)1, 2 and 3
Show answer
Answer: (a) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: Airlines must submit tariffs to the Director General of Civil Aviation (DGCA).
For Mains
Q. Discuss the balance between market-driven pricing and government intervention in the aviation sector to protect consumer interests during extraordinary situations.
Dimensions to cover in your answer
- Regulatory oversight: Balancing price discovery mechanisms with the state's power to intervene in public interest
- Transparency mandate: Impact of mandatory online fare breakdowns on reducing information asymmetry for passengers
Keywords: Regulatory framework · Price intervention · Consumer protection · Information asymmetry · Public interest litigation
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.