The Centre, in a statement to the Kerala High Court, clarifies its stance that airlines have the freedom to set airfares based on their operational viability. The government emphasizes its non-interference in commercial aspects and pricing decisions of airlines.
Practice of Dynamic Pricing
The government, in its affidavit, defends the adoption of dynamic pricing by airlines, labeling it as a global practice. It elaborates on the use of algorithms considering factors such as competitor pricing, supply and demand, and other external elements to determine airfare changes.
