There was a call for capping ticket fares to avoid wild fluctuations during peak seasons, but a study shows that only 1.7 per cent of air tickets were priced high and any cap would raise the price of the remaining 98 per cent. Government intervention into the aviation sector is required only when things go wrong and if there are signs of financial hemorrhage.
Any move to cap ticket prices will bring back the licence raj and corruption will naturally follow. Raju has advised airlines to pass on the benefits of low aviation fuel costs to the customers, but airlines are reluctant to do so now that it has become easier to balance their books. The airline sector is an extremely competitive arena and only those with the tenacity for tight financial management and optimum usage of staff and fleet reap profits. The Union Minister
was correct when he said that policy of caps and floors would
not serve the purpose and hence, there is no need for any
intervention at this stage.
