People seeking to travel during the Christmas holidays have noticed that airfares have risen more than they usually do around this time of the year. This is partly because state-run Air India has decided to abandon its practice of undercutting the competition to rebuild its market share after strike action saw flights being disrupted and passengers moving to rivals.
The carrier seems to have got the timing right, since travel demand peaks as schools break for the holiday. Rivals are relieved as fares don’t have to be suppressed artificially in order to compete with Air India.
Still, what may be regarded as a sound business proposition could meet with resistance if fares rise to astronomical levels, as happened during Diwali last year. And, given the current political climate, it won’t be too surprising to see protests against the Air India move.