“Airlines Charging Exorbitant Fares But It Should Be Challenged Before CCI”: Kerala HC

The Kerala High Court on Monday raised concerns over the high airfares charged by airlines, especially during the holiday season, affecting many expatriates from Kerala in the Middle East [Kerala Pravasi Association v. Union of India & Ors.].

A bench of Acting Chief Justice A Muhamed Mustaque and Justice S Manu remarked that airlines exploit Gulf travelers during peak seasons.

“It is true (that) it is happening in India. Airlines charge us exorbitant amounts during the peak season especially exploiting the Gulf travelers and immigrants,” Justice Mustaque noted.

However, the bench clarified that the appropriate venue to contest such fares is the Competition Commission of India (CCI), not the High Court. “The law allows Airlines to fix the tariff. But if they use their monopoly in the market then that can be considered by Competition Commission. They can order payment of huge compensation,” the bench stated.

These remarks came while the court considered a public interest litigation (PIL) filed by the Kerala Pravasi Association, seeking to strike down Rule 135(1) of the Aircraft Rules, 1937, which allows airlines to set their tariffs. The petitioner argued that the rule is arbitrary and vague, leading to exploitation of expatriates.

Rule 135(1) mandates that airlines establish tariffs based on factors like operation cost, service characteristics, reasonable profit, and prevailing tariffs. The petitioner contended that the rule grants airlines excessive power without clear guidelines, resulting in exploitation.

The court acknowledged that private operators have the right to set tariffs, but if they misuse market dominance, it can be challenged before the CCI. The bench also noted that the government follows ICAO regulations, which influence the formulation of these rules.

The court suggested that the petition might not be maintainable as a PIL and agreed to list it with connected petitions for further consideration. The petitioner was represented by advocates Sradhaxna Mudrika, V Shyamohan, Kuriakose Varghese, Bincy Job, and Kaveri Mohan.

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