PROFITEERING VS. PROFIT MAKING - DELHI TO VARANASI AIRFARE FOR KUMBH MELA :
PROFITEERING VS. PROFIT MAKING - Profit making and profiteering are fundamentally different concepts. While profit making is the natural result of a business operating efficiently and successfully, profiteering involves exploiting situations to earn excessive profits through unethical means driven by greed.
Commercial establishments—whether engaged in manufacturing, merchandising, or providing services—operate with the intent of multiplying their investment and hard work. Therefore, expecting a reasonable profit is justified. This also applies to service providers like Railways, Airlines, and Telecom, whether they are Public Sector Undertakings (PSUs), government entities, or private enterprises. These organizations play a vital role in nation-building by contributing to infrastructure development.
Government-operated services need not perpetually function at a loss. However, in cases of monopoly or limited competition, they must refrain from exploiting their position for profiteering. Profit making, such as increasing prices moderately in response to vagaries of weather or seasonal demand, is acceptable. For instance, when the base airfare for a journey is ₹4,000, raising it up to three times (₹12,000) during peak demand may be tolerable. However, there should be a regulatory cap to ensure flexi-fares do not exceed 1.5 times the base price, which would limit the fare to ₹6,000 in this case.
In summary, airlines, railways, and telecom are essential service providers catering to transportation and connectivity needs. These sectors fall under government regulatory oversight, which must strike a balance between encouraging fair profit-making and curbing profiteering.
GOVERNMENT’S ROLE: PREVENTING EXPLOITATION
The governments existence is to serve all people. It should encourage businesses to thrive and generate profits but must ensure profiteering is strictly controlled. If airlines, railways, and roadways all resort to profiteering simultaneously, it can lead to dire consequences.
The current scenario of airfare hikes for the Delhi-to-Varanasi route during the Kumbh Mela is a glaring example. The fare has skyrocketed to ₹37,000 per ticket, a staggering increase (9 +- times +)from the standard ₹4,000. Such pricing is not only unjustifiable but also discourages bookings, imposing a heavy burden on devotees attending the Kumbh Mela—a significant religious event.
Unchecked profiteering during such occasions can have devastating impacts on pilgrims and tarnish the credibility of service providers. The government must intervene to regulate fares and ensure that essential services remain accessible to all, especially during critical religious and cultural observances like the Kumbh Mela. - Ohm Shanthi more
Commercial establishments—whether engaged in manufacturing, merchandising, or providing services—operate with the intent of multiplying their investment and hard work. Therefore, expecting a reasonable profit is justified. This also applies to service providers like Railways, Airlines, and Telecom, whether they are Public Sector Undertakings (PSUs), government entities, or private enterprises. These organizations play a vital role in nation-building by contributing to infrastructure development.
Government-operated services need not perpetually function at a loss. However, in cases of monopoly or limited competition, they must refrain from exploiting their position for profiteering. Profit making, such as increasing prices moderately in response to vagaries of weather or seasonal demand, is acceptable. For instance, when the base airfare for a journey is ₹4,000, raising it up to three times (₹12,000) during peak demand may be tolerable. However, there should be a regulatory cap to ensure flexi-fares do not exceed 1.5 times the base price, which would limit the fare to ₹6,000 in this case.
In summary, airlines, railways, and telecom are essential service providers catering to transportation and connectivity needs. These sectors fall under government regulatory oversight, which must strike a balance between encouraging fair profit-making and curbing profiteering.
GOVERNMENT’S ROLE: PREVENTING EXPLOITATION
The governments existence is to serve all people. It should encourage businesses to thrive and generate profits but must ensure profiteering is strictly controlled. If airlines, railways, and roadways all resort to profiteering simultaneously, it can lead to dire consequences.
The current scenario of airfare hikes for the Delhi-to-Varanasi route during the Kumbh Mela is a glaring example. The fare has skyrocketed to ₹37,000 per ticket, a staggering increase (9 +- times +)from the standard ₹4,000. Such pricing is not only unjustifiable but also discourages bookings, imposing a heavy burden on devotees attending the Kumbh Mela—a significant religious event.
Unchecked profiteering during such occasions can have devastating impacts on pilgrims and tarnish the credibility of service providers. The government must intervene to regulate fares and ensure that essential services remain accessible to all, especially during critical religious and cultural observances like the Kumbh Mela. - Ohm Shanthi more
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Not only for Prayagraj, the airlines are charging 10-15 times more than usual fares even for Varanasi and other cities within a radius of 100-150 KM from Prayagraj. The government is expected to intervene immediately and handle the situation with clear messages to the respective airlines for the consequent of exploiting common man by taking undue advantage of the occasion. more
Feb 03
Even Govt is charging surging fee? They should increase number of trains/compartments to accomodate yatri. They need only tax from common man either Itax or GST. No hope from this Govt also. You can't travel in trains even Rajdhani. I don't know, which Govt will make journey in India comfortable and economical. more
Jan 29
Where are the people who used to support in the past high airfare price by giving the example of foreign countries, teaching the concept of free market or worse saying if ticekt is costly who is forcing to travel by air. Looks like they are themselves victim now and not able to attend Maha Kumbh more
Jan 28
Govt. Who themselves indulge in profiteering in railway ticketing by calling fancy names like dynamic pricing can't be expected to do anything in this, nor do they have the moral high ground to intervene. more
Jan 28
I fully agree. This unethical practice should be stopped by the Govt. Th Govt. is all powerful and act immediately. more
Jan 28
