Wednesday, March 14, 2018

Airfares surge up to 10 per cent after DGCA grounds IndiGo, GoAir planes

New Delhi: Cancellation of 65 flights by the country’s largest airline IndiGoBSE -2.58 % and GoAir due to grounding of 11 aircraft lead to a spike in last-minute fares on Tuesday, as passengers booked on cancelled flights tried to rebook on alternative flights.

“The cancellation of flights has resulted in a fairly significant impact on the airfares for immediate travel on some key routes. We have seen fares of over Rs 12,000 for a one-way between Delhi and Mumbai flight for today,” Sharat Dhall, COO (B2C) at online travel portal Yatra. com, said on Tuesday.
Dhall expects the impact on fares to recede in the coming days. “With current load factors at over 90%, this reduction in capacity is likely to have a 5-10% impact on fares on key routes in the short to medium term,” he said.

“In order to cause minimum inconvenience to the passengers, the airlines are giving an option to passengers to choose another flight at no additional cost and giving full refund on any cancellations,” he said. Other industry executives, however, said the impact has not been much as cancellation in percentage of total flights is less.
14/03/18 Economic Tmes