Go First bankruptcy: Civil Aviation Minister Jyotiraditya Scindia on Thursday said there is an unusual situation due to the Go First crisis and there has been an excess demand on the routes the airline had been operating.
Go First has not been flying since May 3 and is currently undergoing an insolvency resolution process.
Go First's grounding has also resulted in trouble for air travellers as airfares have reportedly spiked multi-fold in the last one month. Some of the key routes that Go First operated on are seeing a very sharp surge.
"We have given additional routes to other airlines but it is a piquant situation... I doubt any other sector has seen the vicissitudes that civil aviation has seen in the last three years," Scindia said while speaking at the India Economic Conclave.
"... I have put together a group in the last couple of days and we are doing an analysis of a lot of those routes... that have been affected by this unusual event (Go First crisis),” the minister added.
Go First, before suspending its operations, carried about 35,000 passengers daily. After its operations got suspended, flyers are now trying to book tickets with other airlines. Therefore, a squeezed capacity and increasing demand have led to airfares peaking especially due to the summer rush.
As per a report in CNBC TV18, some of the routes that have seen a huge spike in airfares are Delhi to Leh, Mumbai to Leh, Delhi to Srinagar, Mumbai to Jammu, Delhi-Goa, Delhi-Patna, Mumbai-Patna, Mumbai-Varanasi, and Mumbai-Chennai.
While responding to queries related to high airfares on certain routes, Scindia said: "One is Srinagar, Pune, slightly Ahmedabad, we are doing a full analysis on that... we will speak to airlines to make sure fares are within a certain level... it is an issue created by an unforeseen demand-supply imbalance."
02/06/2023 Business Today
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