GG News Bureau
New Delhi, 19th June. Senior Congress leader P Chidambaram lashed out at the government over rising airfares on Sunday, saying that in free markets, when demand rises, supply rises, but in India’s free market, when demand increases, prices will rise.
The Congress has been criticizing the current government and demanding specific measures to address soaring airfares.
Chidambaram stated in a tweet, “Delhi-Chennai Business Class air tickets on Vistara and Air India have been set at a ‘reasonable’ price of ₹ 6300 and ₹ 5700 respectively. Oops, sorry, they are set at a ‘very reasonable’ ₹ 63,000 and ₹ 57,000 respectively.”
I have the prices for Economy class too
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…
— P. Chidambaram (@PChidambaram_IN) June 18, 2023
“In free markets, when demand increases, supply will increase. In India’s free market, when demand increases, prices will increase,” he said.
Airlines will expand their routes, curtail flights on old routes and jack up prices, the former finance minister said.
“India will be the Vishwaguru to the world on monopolistic capitalism,” he said.
In another tweet, after many criticised him for quoting business class fares, Mr Chidambaram said, “I have the prices for Economy class too. 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?” This is what a monopoly or a duopoly does, he said.
“In a free market, there must be competition. The more intense the competition, the better it will be,” Chidambaram said.
Certain routes have seen an increase in airfares in recent weeks, owing to a capacity shortage and the suspension of operations by crisis-hit Go First.
Concerns have been made in various places, and the Civil Aviation Ministry on June 6 ordered airlines to come up with a method to ensure reasonable air ticket pricing.
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