Let airlines be

Let airlines be

Allow market to drive customer experience. Micro-management will drive up costs.

The Union civil aviation ministry’s draft charter defining the rights of air passengers addresses multiple contingencies but overlooks the danger of stiff penalties for deficient service being passed on to customers. The charter proposes that a flight delay over four hours entitles the passenger to a full refund, while restrictions are placed on cancellation charges for ticket cancellations.

If airlines pass these costs to flyers, the subsequent air fare rise negates the charter’s intent. Most improvements in service delivery in civil aviation can be attributed to competition and dissemination of global best practices rather than any government intervention. Even the fall in air fares in recent years making it competitive vis-à-vis rail and road travel and enabling aam admi to fly was due to market forces that obliged the many players among private airlines to woo customers from each other.

Notably, the charter mandates prominent display of cancellation charges rather than in fine print. This is a commonsensical proposition. Airline companies must recognise that customers frown upon opaque practices like hidden charges. But having mandated transparency of cancellation charges, government should have stepped back and let competition work its magic, rather than try to dictate the quantum of fees. Once a customer realises a cheap ticket comes with hefty cancellation fees, she may opt out and choose a competing airline. Conversely, she may be certain of her travel dates and opt for a bargain ticket. Government should allow the market to offer a diversity of choices and permit customers and businesses to drive their own bargains. This is the secret of a dynamic economy. Instead of micro-managing airlines to win cheap plaudits, government could focus on a whole range of air safety measures that prevent accidents. The road to populism is paved with hidden costs and unintended consequences.