Why the govt shouldn’t decide what you pay for an air ticket

Have you tried booking domestic flights recently? If yes, you would have noticed a strange and unpleasant phenomenon. Not only are the ticket prices high across the board, but all airlines seem to be charging the same high price.You would have shrugged this occurrence off by blaming the government for raising taxes on fuel, and shelled out the ticket money anyway. Well, you are half-right. Indeed a government policy underlies the high ticket prices but it’s not the one you think. Turns out, a few restrictions that the Ministry of Civil Aviation had imposed since May last year, are still in place. These restrictions are playing havoc with the consumers, airlines, and airports. Here’s how.Airline ticket prices in normal circumstances are determined by demand and supply considerations. The price broadly reflects the scarcity of the seat you occupy. That’s why you would have encountered significantly higher prices closer to the travel date when fewer seats are available. This pricing situation changed in the wake of the first wave of Covid when the Union government started intervening in both the pricing and capacity of airlines. Specifically, the government put three restrictions in place.Read the full article in Times of India