P Chidambaram, a senior member of the Congress, took aim at the government on Sunday over the rising cost of travel, stating that although in free markets, supply increases when demand rises, in India’s free market, prices rise when demand rises.
In response to increased airfares, the Congress has been criticising the government and demanding action. In a tweet, Chidambaram said, ‘Delhi-Chennai Business Class air tickets on Vistara and Air India have been set at a ‘reasonable’ price of Rs 6300 and Rs 5700 respectively. Oops, sorry, they are set at a ‘very reasonable’ Rs 63,000 and Rs 57,000 respectively.’
‘In free markets, when demand increases, supply will increase. In India’s free market, when demand increases, prices will increase,’ he said. According to the former finance minister, airlines will increase costs, cut back on flights on existing routes, and expand their routes.
‘India will be the Vishwaguru to the world of monopolistic capitalism,’ he declared. After receiving backlash for only mentioning business class prices in one tweet, Chidambaram responded: ‘I have the prices for Economy class too. The cost is 28,000 (AI) on the SAME day and on the SAME route, and it is 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 Rs 28,000 and Vistara charging 12,000 on the same day and on the same route?’
He claimed that a monopoly or duopoly operates in this manner. ‘In a free market, there must be competition. The more intense the competition, the better it will be,’ Chidambaram said.
On some routes, airfares have increased recently, primarily as a result of a capacity issue and Go First’s crisis-related suspension of operations. In light of the concerns raised in many sections, the Civil Aviation Ministry requested airlines develop a framework on June 6 to ensure fair ticket prices.
Post Your Comments