India will be 'Vishwaguru' to world on monopolistic capitalism, says P Chidambaram on rising airfares

'In free markets, when demand increases, supply will increase. In India's free market, when demand increases, prices will increase,' Chidambaram said.

Senior Congress leader P Chidambaram on Sunday took a swipe at the government over rising airfares, saying that in free markets, when demand increases, supply will increase, but in India's free market, when demand increases, prices will increase.

The Congress has been attacking the government, demanding concrete action over rising airfares.

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In a tweet, Chidambaram said, "Delhi-Chennai Business Class air tickets on Vistara and Air India have been set at a 'reasonable' price of Rs 6300 and Rs 5700 respectively. Oops, sorry, they are set at a 'very reasonable' Rs 63,000 and Rs 57,000 respectively."

"In free markets, when demand increases, supply will increase. In India's free market, when demand increases, prices will increase," he said.

Airlines will expand their routes, curtail flights on old routes and jack up prices, the former finance minister said.

"India will be the Vishwaguru to the world on monopolistic capitalism," he said.

In recent weeks, there has been a surge in airfares on certain routes, mainly due to a capacity crunch and suspension of operations by crisis-hit Go First.

Against this backdrop, concerns have been expressed in various quarters, and the Civil Aviation Ministry on June 6 asked airlines to devise a mechanism to ensure reasonable pricing of air tickets.