Senior Congress leader and former finance minister P Chidambaram on Sunday took a jibe at the Modi government over rising air fares, saying India would be a world guru for the world in monopoly capitalism.
He said that when demand increases in free markets, supply will increase, but in India’s free market, when demand increases, prices will increase.
The Congress has been attacking the government demanding concrete action on rising air fares.
In a tweet, Chidambaram said, “Delhi-Chennai business class air tickets on Vistara and Air India have been set at a ‘fair’ price of Rs 6300 and Rs 5700 respectively.” Oops, sorry, they’re set to ‘too fair’. Rs 63,000 and Rs 57,000 respectively.
“When demand increases in free markets, supply will increase. When demand increases in India’s free market, prices will increase,” he said.
The former finance minister said airlines will expand their routes, reduce flights on old routes and raise prices.
In another tweet when many criticized him for quoting business class fares, Chidambaram said, “I have the prices for economy class as well. Same day and same route prices 28,000 (AI) and 12,000 (expansion).”
“As always, the bhakts have missed the central issue. The issue is not who travels in which class. The issue is why the fares are increasing practically every week? And AI Rs 28,000 and Vistara same day Why am I charging 12,000 and on the same route?” That is what a monopoly or monopoly does, he said.
Chidambaram said, “There should be competition in a free market. The more intense the competition, the better.”
In recent weeks, airfares have increased on some routes, mainly due to a lack of capacity and the suspension of operations by the beleaguered GoFirst.
Against this backdrop, concerns have been expressed in various quarters, and the Civil Aviation Ministry on June 6 asked airlines to devise a mechanism to ensure fair pricing of air tickets.
(With PTI inputs)
Also Read – ‘UPA-3’ in 2024 ‘Very Possible’ If Opposition Parties…’: Kapil Sibal on Lok Sabha 2024