Make air tickets cheaper, says the PM

Abstract

That’s easier said that done, given how the pricing system in the airline industry works. But transparency will help According to press reports, the Prime Minister has expressed concern over the predatory pricing of airline tickets. The chairman of the Competition Commission of India has said that capping air fares will violate competition laws. In a market-oriented economy which has recovered from strict regulation, free competition should be permitted to flourish, and controls like capping of prices should be avoided because they are antithetical to the philosophy of deregulation and market-determined prices. However, recent international experience has demonstrated that unabated and uncontrolled market forces can lead to situations where taxpayers’ money is used for bailouts. The new philosophy is that the ‘invisible hand’ has ‘visible’ implications for the markets as well as the fiscal and monetary policy of the country. Therefore, some regulation and supervision is necessary. Read more at: https://www.thehindubusinessline.com/opinion/make-air-tickets-cheaper-says-the-pm/article7694960.ece