The Indian aviation sector is witnessing fresh turbulence after a rejuvenated return to the skies following the coronavirus pandemic-induced restrictions. But the enthusiasm in the sector has been short-lived as budget carrier Go First has filed for bankruptcy, thereby reducing the number of airlines in the country and as a result, fliers are being forced to pay through their noses.
A country like India, one of the biggest aviation markets in the world at 10.8 billion dollars or Rs 1,089 crore, is witnessing a strange dichotomy with rise in fliers but shrinking number of flight operators.
Another factor that is adding to the jitters of the stakeholders is the dreaded scenario of capitulation of low-cost airline — SpiceJet, which if happens, will likely further push up ticket prices due to limited number of airlines and fleet.
“The future of SpiceJet is also precarious. What are we going to be left with, then? Unfortunately, we will be left with duopoly and the duopoly is a difficult market to be in because price cartelisation becomes a very obvious next step. Government intervention is one way out but airlines have enormous cost on their books and so it is a difficult situation for everyone involved. Enormous demand and limited supply will make the equilibrium go higher and higher,” says Kartik Malhotra of News9 Plus.
For instance, on the popular Delhi-Mumbai sector, the average ticket price has spiked from 6125, to 18654 from May to June. Delhi-Pune has gone from 5469 to 17220 in the same period.
26/06/2023 Soumalya Santikari/News nine
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment