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Recently this has become a major issue for Air Travellers that the Spot Fares (The fare charged before 24 hours of travel) are going astronomically High.
Is this acceptable?. According to Vijay Mallya, the Boss of Kingfisher Airlines, an airline seat is a perishable commodity. The price should be dependant on the demand and supply only. Remember that an airline is not a ration shop. It is in their interest to increase the Occupancy Ratio. If the traveller sees that the price is not suitable to him, he will choose an alternative mode.
I don’t see a reason for the government to intervene in this issue. it seems that the Air travel is a high profile issue, the Government got into act.
I believe the government has other issues which are more important than seeing that the rich travellers pay less at the cost of Airline companies.
For Example, the food prices are shooting high. there is hoarding every where. Nothing is looked into.
The increase in spot fares is a worldwide phenomenon. All the airlines do this. For example, Christmas season sees that the fares are jacked up by at least 200%. This is accepted. The first priority of the airline is to ensure that it is earning on all seats( Increase Occupancy Ratio).
If you cannot plan your travel why blame the airlines for that. The airline company is not forcing the travellers. They always have the option to reschedule or look for alternative means.
The Indian railways ( A government Organization) also does the same. at least 20% of the berths are reserved for tatkal scheme. Is it not the same practice the airline is doing? If it is done by IR it is acceptable as the traveller of the IR is not high profile people.
The government of India should allow the fares to be decided by the market dynamics rather than Iron fist.

Originally posted 2010-12-06 01:56:00.