Supreme Court Plea Challenges Dynamic Airfare Pricing, Seeks 25 Kg Free Baggage Allowance for Passengers
Petition Says Algorithm-Based Pricing Exploits Travellers with Sudden Fare Hikes
Call for Judicial Intervention to Ensure Transparency and Passenger Rights
By Our Legal Correspondent
New Delhi: November 19, 2025:
In a significant development for India’s aviation sector, a public interest litigation (PIL) has been filed in the Supreme Court against the practice of algorithm-driven dynamic pricing of airfares. The petition argues that airlines are using opaque pricing models that lead to sudden and extreme fare hikes, especially during peak travel seasons.
The plea also seeks directions to mandate a free baggage allowance of up to 25 kg, citing that airlines have drastically reduced baggage limits while simultaneously charging high fees for extra luggage.
Background of the Petition
The PIL was filed by a social activist and frequent flyer, who argued that passengers are being subjected to “unchecked, exploitative, and opaque practices” by private airlines.
Key concerns raised include:
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- Dynamic Pricing Algorithms: Airlines adjust fares in real time based on demand, often leading to sudden spikes.
- Shrinking Baggage Allowance: Free baggage limits have been reduced to 15–20 kg, forcing passengers to pay extra.
- Hidden Charges: Ancillary fees for seat selection, meals, and luggage are rising, making air travel unaffordable for many.
The petitioner urged the Court to direct the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation to frame clear guidelines regulating airfare pricing and baggage policies.
Supreme Court’s Response
The Supreme Court has issued notice to the Union Government and the DGCA, seeking their response on the matter. The Bench observed that air travel has become essential for millions of Indians, and pricing practices must be transparent and fair.
The Court emphasized that while airlines are free to operate commercially, they cannot exploit passengers through opaque algorithms and arbitrary charges.
Algorithm-Based Dynamic Pricing Explained
Dynamic pricing is a system where fares change in real time based on demand, availability, and booking patterns. While common in global aviation, critics argue that in India:
- It leads to unpredictable fare hikes, especially during festivals and emergencies.
- Passengers often face last-minute surges, making travel unaffordable.
- Lack of transparency means travellers cannot understand how fares are calculated.
The petition claims that such practices amount to “algorithmic exploitation”, where technology is used against consumer interests.
Demand for Free Baggage Allowance
The plea also highlights the issue of baggage charges. Traditionally, airlines allowed 20–25 kg free baggage. Today, most carriers restrict free allowance to 15 kg, charging hefty fees for extra luggage.
The petitioner argues that:
- Families and long-distance travellers are disproportionately affected.
- Reduced baggage limits are unfair, especially when fares are already high.
- A 25 kg free allowance would restore fairness and reduce hidden costs.
Wider Implications
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If the Supreme Court rules in favour of the petition, the impact could be significant:
- Passenger Relief: Travellers would benefit from predictable fares and higher baggage allowances.
- Regulatory Oversight: DGCA may be required to monitor algorithms and pricing practices.
- Industry Accountability: Airlines would need to justify fare structures and ancillary charges.
- Global Precedent: India could set an example for regulating algorithmic pricing in aviation.
Expert Opinions
Aviation experts and consumer rights advocates have weighed in:
- “Dynamic pricing is acceptable only if transparent. Secretive algorithms hurt passengers.”
- “Baggage allowances must reflect practical needs. Reducing them is unfair.”
- “Judicial intervention is necessary because regulatory bodies have failed to act.”
Some industry voices, however, argue that dynamic pricing is essential for profitability and aligns with global practices. They caution that over-regulation could harm competition.
Broader Policy Context
The case highlights the tension between commercial freedom and consumer protection in India’s aviation sector.
- Airlines argue that dynamic pricing helps balance demand and supply.
- Passengers demand fairness, transparency, and affordability.
- Regulators face pressure to modernize rules and protect consumer rights.
Globally, countries like the US and EU allow dynamic pricing but enforce strict disclosure norms. India’s aviation sector may now face similar reforms.
Conclusion
The Supreme Court’s consideration of the PIL against dynamic airfare pricing and reduced baggage allowances marks a turning point in India’s aviation policy. By seeking judicial directions, the petition aims to protect passengers from opaque algorithms, sudden fare hikes, and hidden charges.
If successful, the case could lead to clear guidelines, fair pricing, and a 25 kg free baggage allowance, ensuring that air travel remains accessible and affordable for millions of Indians.
This is not just about fares—it is about restoring trust in India’s aviation sector and safeguarding passenger rights.
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