India’s sky-high fares crash dreams to make flying accessible to all
The aviation industry of India has developed tremendously in the last ten years, whereby there are millions of passengers flying annually. Nevertheless late increase in the air fares has become a significant issue to travellers particularly the middle-class families and students. The sky-rocketing prices of air fares in India have caused domestic flights to become even more costly to most people forcing them to re-evaluate their travel plans or resort to trains and buses. The price of tickets has been increased by several factors such as operation cost, fuel prices and low capacity of the airlines including major carriers like Air India. This means that the vision of flying at affordable rates by all Indians is gradually becoming a dream, which questions the availability of air travel and growth in the long term.
Why Are Airfares Rising in India?
The cost of aviation turbine fuel (ATF) is one of the largest contributors to India’s sky-high fares as it constitutes nearly 40% of airline costs. Rise in fuel prices affects the airlines because they directly transfer the higher cost to the customers. The other problem is that there is a scarcity of aircrafts because of the delay in new aircraft delivery and constant engine problems, particularly in the major airlines. This low capacity creates less availability of seats and high ticket prices. Furthermore, holiday seasons, holiday and high seasons also increase fares higher, as demand is high..
Impact on Passengers and Travel Trends
The fares have been increased and this has put some pressure on the common travellers. Budget travellers and their families that used to anticipate affordable flying are now compelled to revise travel plans. A large number of the travellers are opting to travel by train rather than by air especially over a distance that is less than 1,000km. Low-cost fares advanced by the aviation boom in India, now are questioned when India’s sky-high fares have rendered last-minute booking extremely costly. According to the travel agents, customers are also more sensitive to price and will only confirm tickets after they are discounted or off-season.
Effect on Airlines and the Aviation Sector
As passengers fight with the price increase, airlines are in trouble as well. The operating cost, engine troubles and troubles in its supply chains globally minimize profitability. Although increased fares help in a partial way, they will not suffice to meet the increasing costs. According to industry analysts, with sky-rocketing fares, the growth of domestic aviation will be stopped because less people will opt to use air transport. This may also have an impact on the tourism industry, hospitality and other related industries which rely on cheap and frequent flights.
Will Fares Go Down Anytime Soon?
According to experts the airfare relief will be based on the lower cost of fuel prices, timely aircraft supply and enhanced competition of airlines. UDAN through government efforts to increase regional connectivity are bearing some fruits but it is not sufficient to offset the increasing cost of operation. India’s sky-high fares are expected to remain an issue in terms of accessibility and affordability of millions of travellers until the industry balances itself.
