With reference to the editorial, "Flying against the wind" (May 6), the government's plan to limit airfares of hour-long flights to Rs 2,500 is ill-conceived. The civil aviation minister's move in response to complaints from some members of Parliament that airfares tended to become exorbitant during emergencies is out of sync. Can the logic of an administered price for different short-haul flights hold when a free and fair pricing policy should be the order of the day?
It would be naive to conclude that fares of only hour-long flights jump during emergencies. What is the rationale behind the proposed government intervention on the pretext of strengthening regional air connectivity?
Such a fare cap may not find takers among private airlines, which dominate the aviation business. They might find it economically unviable to operate on currently non-operational air routes.
There is no doubt, however, that enforcing such a fare cap will hamper the prospects of the railways. The editorial is correct when it says that such a move ends up subsidising those classes of consumers - the rich and the middle class - who don't require price protection.
Of course, economics and politics don't go hand in hand and the airline industry isn't immune to this. The government must keep a constant watch on ill-intended moves of private airlines. Most of the airlines, including the state-owned Air India, took full advantage of the Jat agitation in Haryana in February to increase fares. The government should sail with the wind lest it is forced to make an emergency landing.
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It would be naive to conclude that fares of only hour-long flights jump during emergencies. What is the rationale behind the proposed government intervention on the pretext of strengthening regional air connectivity?
Such a fare cap may not find takers among private airlines, which dominate the aviation business. They might find it economically unviable to operate on currently non-operational air routes.
There is no doubt, however, that enforcing such a fare cap will hamper the prospects of the railways. The editorial is correct when it says that such a move ends up subsidising those classes of consumers - the rich and the middle class - who don't require price protection.
Of course, economics and politics don't go hand in hand and the airline industry isn't immune to this. The government must keep a constant watch on ill-intended moves of private airlines. Most of the airlines, including the state-owned Air India, took full advantage of the Jat agitation in Haryana in February to increase fares. The government should sail with the wind lest it is forced to make an emergency landing.
Kumar Gupt, Panchkula
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number