New Delhi: Airlines will need to raise fares by 40-100% to stay afloat by recovering total cost of operations once flights are allowed to resume with social distancing — keeping the middle seat vacant according to CAPA Centre for Aviation (India). It also estimates airlines will need to fund $500 million, almost Rs 3,800 crore (exchange rate of Rs 76 against US dollar), if they are ordered to give refunds for flights cancelled during the lockdown.
The aviation body has estimated post-pandemic airfares on Delhi-Mumbai route covering airlines’ total cost of operation will be Rs 5,000 for normal operations (no seat restriction); Rs 7,000 with social distancing and Rs 9,700 with social distancing along with reduced fleet utilisation. The same figures for Delhi-Bengaluru will be Rs 5,700; Rs 8,100 and Rs 11,200. And for Delhi-Jammu, these will be: Rs 3,100; 4,300 and Rs 5,900.
CAPA has estimated airlines will need to fund $500 million, almost Rs 3,800 crore (exchange rate of 76), if they are ordered to give refunds for flights cancelled during the lockdown. The government has asked airlines to give refund to people who booked flights during the lockdown for flights with departure dates within the lockdown — essentially covering those who booked during first lockdown hoping to fly when the same is lifted but which was eventually extended. Airlines are asking people to travel anytime within a year using the money paid to book flights that have been cancelled during the lockdown.
“If the Supreme Court rules in favour of passengers, the value of refunds that airlines will be liable for are estimated at over $500 million, which includes around $300 million (about Rs 2,280 crore) for domestic bookings and over $200 million (about Rs 1,520 crore) for international travel and other refunds. Furthermore, airlines may be ordered to process refunds within a relatively short period of time,” CAPA estimates, while terming airlines’ stand on not giving full refunds for cancelled flights and instead asking passengers to fly anytime within up to a year to utilise the money paid as “unfair to consumers” and violative of government rules and policy on refunds.
01/05/20 Saurabh Sinha/Times of India
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The aviation body has estimated post-pandemic airfares on Delhi-Mumbai route covering airlines’ total cost of operation will be Rs 5,000 for normal operations (no seat restriction); Rs 7,000 with social distancing and Rs 9,700 with social distancing along with reduced fleet utilisation. The same figures for Delhi-Bengaluru will be Rs 5,700; Rs 8,100 and Rs 11,200. And for Delhi-Jammu, these will be: Rs 3,100; 4,300 and Rs 5,900.
CAPA has estimated airlines will need to fund $500 million, almost Rs 3,800 crore (exchange rate of 76), if they are ordered to give refunds for flights cancelled during the lockdown. The government has asked airlines to give refund to people who booked flights during the lockdown for flights with departure dates within the lockdown — essentially covering those who booked during first lockdown hoping to fly when the same is lifted but which was eventually extended. Airlines are asking people to travel anytime within a year using the money paid to book flights that have been cancelled during the lockdown.
“If the Supreme Court rules in favour of passengers, the value of refunds that airlines will be liable for are estimated at over $500 million, which includes around $300 million (about Rs 2,280 crore) for domestic bookings and over $200 million (about Rs 1,520 crore) for international travel and other refunds. Furthermore, airlines may be ordered to process refunds within a relatively short period of time,” CAPA estimates, while terming airlines’ stand on not giving full refunds for cancelled flights and instead asking passengers to fly anytime within up to a year to utilise the money paid as “unfair to consumers” and violative of government rules and policy on refunds.
01/05/20 Saurabh Sinha/Times of India
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