Well the pricing policy is simple ... on routes with less competition or traffic price the tickets higher, and subsidies the fares on competitive routes to lure traffic.
I think the government has recently taken the right steps in regularizing the refund and fare rules. Airlines have been pricing their tickets in such an clever manner to fool the poor commuters ... e.g. the fuel surcharge goes into the pockets of the Airline and not the government (as the surcharge makes us believe) ... now many have started charging INR 100 for web bookings .... so if u purchase on the counter ur ticket is INR 100 cheaper ... this is activity based costing at its most ridiculous .... one fine day they will say

Sir we will pay you Rs 50 to fly our airline, U only have to pay the taxes and surcharges fuel surcharge, congestion surcharge, metro airport use surcharge, Rs 150 is the Airhostess Service Surcharge ... Rs 250 is the pilot surcharge ... Rs. 100 for the stir u use to climb n come down surcharge ... etc. etc ...
All I would like to say ... go lalu go ... start more trains .... and we will use them ....