Former Union Minister for Finance and prominent Congressman P. Chidambaram attacked the Central government for the nation’s increasing aviation rates, claiming that India will become the “Vishwaguru to the world on monopolistic capitalism.” Chidambaram detailed the costs of business and economy class flights from Chennai to Delhi in a series of tweets and discussed the prices of tickets using the terms supply and demand.
Chidambaram stated that the current business class price from Chennai to Delhi is roughly $63,000. “The’reasonable’ prices for business class flights between Delhi and Chennai on Vistara and Air India are $6300 and $5700, respectively. Sorry, they are set at’very reasonable’ 63,000 and 57,000 each.”
“In free markets, when demand increases, supply will increase. In India’s free market, when demand increases, prices will increase,” he tweeted, adding, “Airlines will expand their routes, curtail flights on old routes and jack up prices. India will be the Vishwaguru to the world on monopolistic capitalism.”
Chidambaram added, “I have the prices for Economy class too,” in another tweet. The cost is 28,000 (AI) on the SAME day and on the SAME route, and it is 12,000 (VISTARA).”
“Who travels in what class is not the problem. The question is: Why are fares increasing almost weekly? And why do AI and Vistara charge different prices on the same day and same route? A duopoly or monopoly operates in this manner. Competition is necessary in a free market. The better it will be, he remarked, the more fierce the competition.
KC Venugopal had also slammed the Central government over the airfares. He tweeted, “These skyrocketing airfares are wreaking havoc among the middle class. Govt’s complete free pass to airlines and their rampant privatisation spree are responsible for today’s dire situation.”
But was slammed by Civil Aviation Minister Jyotiraditya Scindia for his “injudicious and misinformed remarks”.
Jyotiraditya Scindia tweeted: “We have advised airlines to self-regulate their fares under a certain limit– the result of which is to reduce prices by 14 pc–60 pc with effect from June 6, 2023.”
The minister had recently called a meeting over the skyrocketing increase in the airfares. Airlines were instructed to self-monitor airfares on select routes, especially those served by GoFirst, which recently filed for bankruptcy, leading to flight cancellations. The minister is closely monitoring the air fares on a regular basis.
Source: Mint
