The Supreme Court on Monday raised concerns over the sharp variation and steep increases in airline ticket prices during festivals and other busy travel periods, asking the Centre to move ahead with a clear framework for regulating fares.

A bench of Justices Vikram Nath and Sandeep Mehta was hearing a petition alleging that private airlines were setting ticket prices arbitrarily, particularly when demand rises.

During the hearing, the court indicated that airlines could face severe consequences, including restrictions on their operations, if they are found to be violating applicable rules.

The petition was filed by social activist S Lakshmi Narayanan, who has challenged what he described as unreasonable pricing practices by private carriers.

Centre says fare framework nearing completion

The Centre told the court that work on a new mechanism governing airfares is almost complete.

Additional Solicitor General Anil Kaushik informed the bench that the government expects to finish the rule-making exercise within three weeks. A draft of the proposed framework was also submitted to the court in a sealed cover.

The government sought three weeks to complete the process, a request accepted by the Supreme Court.

Plea highlights high fares during peak travel

The petitioner alleged that passengers are frequently charged exceptionally high amounts during holidays and festivals. He also claimed that airlines were not adhering to the government's existing directions on airfare management.

The plea referred to a statement made by the Civil Aviation Minister in Parliament that the government does not have the power to impose a direct ceiling on airfares.

The petitioner has sought a dedicated regulatory system that would establish transparent principles for determining ticket prices and ensure that airlines comply with those requirements.

Supreme Court had raised fare concerns earlier

The issue had come before the Supreme Court in May as well. At that stage, the bench had called for greater rationalisation in airfares and asked the government to consider measures that could protect passengers.

The court had also taken note of instances where passengers travelling on the same route on the same day were being charged substantially different fares, raising questions about pricing practices in the sector.

With the Centre now working on a formal regulatory framework, the Supreme Court has agreed to give the government three weeks to complete the exercise.

The case will be heard next on September 7.