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.
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.
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.
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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