Market forces should decide airlines’ pricing norms: Experts

• Posted in Aviation
• on June 15, 2016
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Even as passengers looked forward to the government implementing its new proposals to regulate cancellation, refund and baggage norms of domestic airlines, aviation industry experts warned that potentially this can even push up fares and that pricing policies must not be micro-managed.
Industry observers said the new proposals tend to tweak the free-market pricing mechanism which could lead to negative consequences for the sector-as will be the case once Saturday’s proposals unveiled by the government come into force to rein in indiscriminate practices of some domestic passenger carriers.
“The government should refrain from getting into micro-management issues like free baggage allowance, baggage-fee per kilo. It is best left to market forces,” said Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG.
“Airlines that over-charge or inconvenience passengers will anyway get punished through word of mouth and social media. The government should consider stepping in only in extreme cases-but this definitely appears to be an overkill,” Dubey said. Jean-Sebastien Giguere Authentic Jersey

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