Sunday, June 08, 2014

When will government agencies understand their role

Allow us to live in free economy. Let government ensure clarity and openness.

http://indianexpress.com/article/business/business-others/dgca-halts-airasia-indias-plan-to-charge-fee-on-check-in-baggage/

Why is DGCA dictating the terms any private airline should use. DGCA should ensure that marketing and message is clear. Its responsibility should be to ensure that market and layman understands what is offered and then make rational decision.

If people, value, checked in baggage more than Rs 199 let them decide where to buy the ticket. The agencies loss of direction and overly control cannot be explained by free market economy.

DGCA did good moves in past to ensure that airlines clearly highlight that price promoted is just base fare and excludes taxes and surcharges. DGCA should continue to ensure that no mal-practices or biased policies are followed by airline players. It should not get into operational and pricing details of services offered.

AirAsia came with idea of low cost airlines and decided to launch every item as piecemeal. Let agents and tech savvy consumers decide if they want to fly airasia or travel by train/other airlines.

When I am feeling raged by the message, I wonder how Tony Fernandes might be feeling.