{"id":19483,"date":"2022-04-04T12:38:49","date_gmt":"2022-04-04T07:08:49","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=19483"},"modified":"2022-04-04T12:38:52","modified_gmt":"2022-04-04T07:08:52","slug":"as-indias-airlines-squabble-over-fare-hikes-cheap-tickets-will-continue-to-be-available","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2022\/04\/04\/as-indias-airlines-squabble-over-fare-hikes-cheap-tickets-will-continue-to-be-available\/","title":{"rendered":"As India&#8217;s airlines squabble over fare hikes, cheap tickets will continue to be available"},"content":{"rendered":"\n<p class=\"has-drop-cap\">At the Wings India airshow in Hyderabad last month, top airline executives agreed on a number of points, including the <strong>reduction of taxes and the expansion of airport capacity. <\/strong>One point they couldn&#8217;t agree on was whether unfair competition is artificially keeping fares low in as an already fiercely competitive sector.<\/p>\n\n\n\n<pre class=\"wp-block-verse\">Sunil Bhaskaran, AirAsia India's chief executive officer, was forthright. He claims that \"<strong>irresponsible competition<\/strong>\" has kept fares cheap despite hefty taxes and fuel prices in Indian aviation.<\/pre>\n\n\n\n<p> <strong>Bhaskaran<\/strong> didn&#8217;t say who he was talking about. <\/p>\n\n\n\n<p>IndiGo, India&#8217;s largest airline, is the only carrier capable of making the whole market dance to its tune.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"732\" height=\"488\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/385659295.jpg\" alt=\"Top airline executives agreed on a number of points, including the reduction of taxes and the expansion of airport capacity.\" class=\"wp-image-19489\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/385659295.jpg 732w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/385659295-600x400.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/385659295-300x200.jpg 300w\" sizes=\"(max-width: 732px) 100vw, 732px\" \/><\/figure>\n\n\n\n<p><strong>InterGlobe Aviation Ltd.&#8217;s IndiGo airline<\/strong> controls more than half of the domestic market.<\/p>\n\n\n\n<p> <strong>Nine other airlines<\/strong> fight for the remaining seats, providing the rapidly expanding low-cost carrier a stranglehold on rates. <\/p>\n\n\n\n<p>Two more airlines are planning to establish services later this year, increasing competition in a <em>sector where tickets are frequently sold below operating costs, resulting in the death of several high-profile companies.<\/em><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>IndiGo, on the other hand, appears unconcerned about the criticism, as well as requests from SpiceJet Ltd. for airlines to work together to raise fares, even if it means a tiny drop in bookings.<\/p><\/blockquote>\n\n\n\n<pre class=\"wp-block-verse\"><strong>\"I'm sorry, but this isn't about working together to raise fares<\/strong>,\" Ronojoy Dutta, IndiGo's CEO, stated in response to a suggestion that other airlines follow IndiGo's lead and boost fares.\n \n\"<strong>Look, ultimately, IndiGo's objective is to deliver great customer service while receiving a disproportionate share of revenue,<\/strong>\" Dutta added, to laughter and cheers.<\/pre>\n\n\n\n<ul class=\"wp-block-list\"><li>IndiGo&#8217;s pledge to stay &#8220;<strong><em>very, very competitive&#8221; <\/em><\/strong>in the future is terrible news for everyone, including Singapore Airlines Ltd.&#8217;s local partner, IPO-bound Go First, and once state-run Air India Ltd.<\/li><li> Many airlines, including <strong>Kingfisher Airlines Ltd. and Jet Airways <\/strong>India Ltd., have previously folded or gone through court-supervised bankruptcy processes as a result of competitive pricing.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-1024x768.jpg\" alt=\"Top airline executives agreed on a number of points, including the reduction of taxes and the expansion of airport capacity.\" class=\"wp-image-19488\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-1024x768.jpg 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-600x450.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-300x225.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-768x576.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-750x563.jpg 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1-1140x855.jpg 1140w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/kolkata-bound-indigo-flight-develops-snag-while-taking-off-grounded-1.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"http:\/\/IndiGo.com\">IndiGo<\/a>, the world&#8217;s largest customer for <strong>Airbus SE&#8217;s best-selling A320neo jets,<\/strong> is an outlier, able to turn a profit while keeping expenses under control. <\/li><li>It has also negotiated lucrative long-term maintenance and engineering contracts as part of significant aircraft orders.<\/li><\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>&#8220;<em><strong>It has something to do with their sheer enormity.&#8221; <\/strong><\/em><\/p><p>It is a massive <strong>revenue machine<\/strong>,&#8221; said Mark Martin, the founder of Martin Consulting LLC, a Dubai-based aviation consulting firm. <\/p><p><strong>&#8220;Naivety and stupidity can be destructive and wreak havoc in the system,&#8221; <\/strong>he warned, adding that this is not the time for IndiGo to show off its bravado.<\/p><p> &#8220;At some time, IndiGo will have to raise fares or, at the very least, balance its fares.&#8221;<\/p><\/blockquote>\n\n\n\n<p>Last year, the CAPA Centre for Aviation in Sydney declared that it had &#8220;run out of words&#8221; to characterise the plight of Indian airlines, claiming that the industry is &#8220;on the verge of collapse.&#8221; CAPA estimates that Indian carriers will lose $8 billion in the two years leading up to March 2022, assuming oil prices of $70 per barrel and a rupee-dollar exchange rate of 75.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-1024x683.jpg\" alt=\"As\" class=\"wp-image-19490\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-1024x683.jpg 1024w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-600x400.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-300x200.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-768x512.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-750x500.jpg 750w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1-1140x760.jpg 1140w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/04\/air-travel-1.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Last month, the Indian rupee fell to a historic low of 76.9812 per dollar, and Brent oil is now trading at more than $100 a barrel.<\/p><\/blockquote>\n\n\n\n<p>There have been some indications that fares are rising in recent months, but this has more to do with <strong>rising oil prices as a result of the Ukraine conflict.<\/strong><\/p>\n\n\n\n<p>According to online travel service Yatra.com, tickets from New Delhi to Mumbai, one of the <strong>world&#8217;s busiest domestic routes, <\/strong>are selling at a 42 percent higher rate than before the war.<\/p>\n\n\n\n<p>Stay tuned and updated with Aviationa2z.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top airline executives agreed on a number of points, including the reduction of taxes and the expansion of airport capacity.<\/p>\n","protected":false},"author":2,"featured_media":19490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6761],"tags":[1566,5638,5637,5636,2561,5639],"class_list":{"0":"post-19483","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-airbus-se","9":"tag-airport-capacity","10":"tag-fare-hikes","11":"tag-indias-airlines","12":"tag-interglobe-aviation","13":"tag-reduction-of-taxes"},"_links":{"self":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/19483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/comments?post=19483"}],"version-history":[{"count":1,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/19483\/revisions"}],"predecessor-version":[{"id":19491,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/19483\/revisions\/19491"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media\/19490"}],"wp:attachment":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media?parent=19483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/categories?post=19483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/tags?post=19483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}