Delhi-Chennai business class fare ‘reasonable’ at ₹63K: Chidambaram’s jibe
Delhi-Chennai business class fare ‘reasonable’ at ₹63K: Chidambaram’s jibe
Earlier, Congress leader KC Venugopal had slammed the union government for wreaking havoc among the middle class air travellers.
Former union finance minister P Chidambaram on Sunday took a jibe at the central government over the skyrocketing prices of flight tickets and said that India will be the Vishwaguru to the world on monopolistic capitalism.
Chidambaram took to Twitter and said, “Delhi-Chennai Business Class air tickets on Vistara and Air India have been set at a ‘reasonable’ price of ₹6,300 and ₹5,700 respectively. Oops, sorry, they are set at a ‘very reasonable’ ₹63,000 and ₹57,000 respectively.”
He further explained the issue in demand and supply terminology. In a long tweet, he said, “In free markets, when demand increases, supply will increase. In India’s free market, when demand increases, prices will increase. 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.”
The former minister went on to explain the dynamics of the prices for Economy class and said that in a free market, there must be an intense competition to serve the best to the customers.
In other tweet, he said, “On the SAME day and on the SAME route, the prices are 28,000 (AI) and 12,000 (VISTARA). As usual, the bhakts have missed the central issue. The issue is not who travels in what class. The issue is, why are fares rising practically every week? And why is AI charging ₹28,000 and Vistara charging 12,000 on the same day and on the same route?”
He further added, “This is what a monopoly or a duopoly does. In a free market, there must be competition. The more intense the competition, the better it will be.”
Earlier, Congress leader KC Venugopal had slammed the union government for wreaking havoc among the middle class air travellers. “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,” he tweeted.
Civil aviation minister Jyotiraditya Scindia replied to the Congress leader by slamming his “injudicious and misinformed remarks”. He tweeted, “We have advised airlines to self-regulate their fares under a certain limit– the result of which is to reduce prices by 14%-60%with effect from June 6, 2023.”
Earlier this month, Scindia hold a key meeting with the Airlines Consultative Group to discuss the issue of abnormal increased pricing on various routes. The minister ordered the airlines to self-monitor airfares on selected routes, especially those served by recently bankrupted GoFirst.
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