P Chidambaram, former Union Minister for Finance and senior Congress leader, took a swipe at the Central government over the skyrocketing airfares in the country, saying India will be the “Vishwaguru to the world on monopolistic capitalism”. In a series of tweets, Chidambaram listed the prices of Chennai to Delhi business and economy class fares and spoke about the airfares in demand and supply terminology.
Chidambaram said that today Chennai to Delhi business class fare is around ₹63,000. “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.”
“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.”
In another tweet, 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).”
“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. In a free market, there must be competition. The more intense the competition, the better it will be,” he said.
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.
(With agency inputs)
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Updated: 18 Jun 2023, 10:45 PM IST