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Airlines charging exorbitant fares but it should be challenged before CCI: Kerala High Court

The Bench made these observations when considering a public interest litigation (PIL) petition filed by Kerala Pravasai Association, an association which was formed with the primary objective of ensuring the welfare of expatriates.

The petitioner-association sought striking down of Rule 135(1) of the Aircraft Rules, 1937 (Rules) which gives unbridled power to airlines to decide air tariff. They contended that the Rule is arbitrary, vague and violative of the Aircraft Act, 1934 (the Act) as well as Article 14 of the Constitution of India.

Rule 135(1) states that airlines shall establish tariff having regard to all relevant factors, including the cost of operation, characteristics of service, reasonable profit and the generally prevailing tariff.

It is respectfully submitted that unfettered powers have been given to the airline to establish its tariff under the impugned Rule as there are absolutely no guidelines or clarity with respect to the “reasonable profit” and the “generally prevailing tariff”. This has led to a situation where there is large scale exploitation of the vulnerable expats…Needless to state, the tariffs are often dictated by the airline which has the larger seat share, thereby resulting in abuse of dominant position,” the PIL petition stated.

The petitioner also argued that the Rule negates the provisions of the Act that give power to the Central government to make rules for economic regulation of civil aviation and air transport services, including the approval, disapproval, or revision of tariff of operators of air transport services.

It is trite law that right to travel abroad is an inseverable, valuable and an integral part of right to dignity and personal liberty as enshrined in Article 21 of the Constitution of India. The rule making power, it is submitted, must be exercised consistent with the scheme of the Act and not repugnant to the main provisions of the statute itself,” the petition stated.

The petitioner argued that such unreasonable and exorbitant airfares impose restrictions on air travel as a mode of transportation and, therefore, infringe upon constitutionally protected rights of the citizens.

Source: Barandbench

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