Newspaper Hindustan Times reported,
‘One Route, One Fare’ scheme launched by Govt. airline.
Government-owned Alliance Air has launched the “Fare se Fursat” fixed airfare scheme, which essentially means that the fare will remain constant regardless of the time of booking.
Before I write anything about the consequences of this new government “scheme” of One Route, One Fare, I want to comment that I am amazed to see the Indian government operating another airline after selling off the loss making Air India. Did they not learn any lessons from the Air India fiasco of the previous seven decades? They sure didn’t!
Now this One Route, One Fare is nothing but more socialism by Indian government. They will never learn. I remember when Modi government came to power in 2014 many (classical) liberals in India called him a right wing free market prime minister. Some free market prime minister he turned out to be!
First, this government’s price control of airfare will result in overcrowding of the planes and ensuing chaos. Some people will be able to fly while others will fail to book the flight. Price controls always bring scarcity as no business can function without making a profit.
Another problem with these low-cost government flights will be horrible low quality. Quality services come with a price. As soon as these flights start, get ready to read or hear the horror stories of customers riding these flights.
Alas, the final cost of operating these so-called low fare flights will be born by taxpayers in the end. Whether government lowers air fare or not, the cost of operating flights won’t change. The losses that government will make by offering low price flights will be covered by taking more taxpayer money. For any government boondoggle the hard working taxpayers are always on the hook.
