Why in news
- Supreme Court agreed to hear a petition seeking regulatory oversight on dynamic airfares and ancillary airline charges.
- Centre fast-tracked framing of subordinate rules under the newly passed Bharatiya Vayuyan Adhiniyam, 2024.
Key terms
Dynamic Pricing
Algorithmic pricing mechanism where airfares fluctuate in real-time based on demand, seat availability, and booking timelines.
Unbundling of Services
Practice of charging separate fees for ancillary airline services like seat selection, baggage allowance, and meals.
What is the Bharatiya Vayuyan Adhiniyam, 2024?
- Replaces the colonial-era Aircraft Act, 1934 to modernize civil aviation regulation in India.
- Administered by the Ministry of Civil Aviation, providing legal framework for aircraft design, manufacturing, operation, and safety standards.
Key changes under the legislation
- Empowers Directorate General of Civil Aviation (DGCA) and Bureau of Civil Aviation Security (BCAS) with statutory authority.
- Provides statutory basis for regulating airfares, unbundled fees, and anti-competitive dynamic pricing practices during surge periods.
- Replaces manual regulatory processes with streamlined rules for domestic aviation manufacturing and operation.
Why it matters
- Addresses consumer protection issues regarding predatory fare hikes during festive seasons and operational disruptions.
- Strengthens legal backing for regulatory intervention in airline tariff structures.
Prelims facts
- Bharatiya Vayuyan Adhiniyam 2024 replaces the Aircraft Act, 1934.
- DGCA holds statutory powers for enforcement of airline tariffs and safety norms.
Mains discussion
- Balancing free-market dynamic pricing in aviation with consumer welfare oversight.
Source: LiveMint News
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