Don’t miss the latest developments in business and finance.

Airlines start filling up Go First void even as fares soar up to 5x

Air India, Vistara have started four and 14 new weekly services on the Mumbai-Goa route

Go First
Deepak Patel New Delhi
4 min read Last Updated : May 28 2023 | 7:45 PM IST
Indian carriers have started new flights on Go First’s top routes to partly fill the void created by its exit. Nevertheless, spot fares on these routes have increased by as much as fivefold.

Go First operated 52 flights per week on the Delhi-Ahmedabad route, making it the sixth-busiest route of the airline, according to data from aviation analytics firm Cirium.
 
After the airline declared insolvency and stopped all services from May 3, Air India introduced 14 new flights per week on the Delhi-Ahmedabad route.
 
However, the spot fares on the route have jumped by about 400 per cent to Rs 16,585 in the last one month, according to data provided by travel portal ixigo. 
 
The rising airfares have become a concern for the civil aviation ministry. It has told the airlines to keep airfares at moderate levels on such routes.
 
“We have observed the rising airfares on certain routes, such as Delhi-Pune and Delhi-Ahmedabad, where Go First’s exit has created a significant impact,” a senior government official noted.
 
Go First used to operate 52 flights per week on the Delhi-Pune route in April, according to Cirium.
 
However, since its exit, none of the airlines have started new flights on this route. As a result, the spot fare on this route has jumped from Rs 5,048 on April 24 to Rs 15,093 on May 24.
 
The government official said that airlines have been advised to increase flights but they are unable to do much because of paucity of fresh capacity (new planes).
 
On the Delhi-Srinagar route, Go First used to operate about 75 flights per week in April. AirAsia India, Air India, IndiGo and SpiceJet in May started 12, 11, 8 and 4 weekly flights, respectively, on this route. "The demand is high and the new flights have not completely filled the gap. So, fares are rising," said a Delhi-based travel agent.
 
On the Delhi-Leh route, Go First had about 66 weekly flights in April. After its exit, only Air India has started six new weekly flights on this route. The travel agent said that the overall number of flights on the Delhi-Leh route are still 50 per cent fewer than in April. Consequently, the ixigo data shows that the spot fares on the Delhi-Leh route have almost doubled in the last one month.
 
Air India and Vistara have started four and 14 new weekly services, respectively, on the Mumbai-Goa route in May after Go First's exit. However, Go First used to operate about 68 weekly flights on the Mumbai-Goa route. Therefore, the spot fares on this route have more than doubled in the last one month.
 
Go First has squarely blamed Pratt & Whitney (PW) for the cash crunch, stating that it did not supply engines on time. Owing to this, almost half of its 54 aircraft fleet is grounded. Not just Go First, even IndiGo is suffering due to this issue.
 
IndiGo’s 37 planes, powered by PW engines, were grounded on May 15. The airline has about 140 PW-powered aircraft in its fleet.
 
The official said that on routes where Go First was a major player, the ministry has advised airlines to make sure that the upper ceiling for price tickets is not too high.
 
“There should not be a huge gap between the upper ceiling and lower ceiling. The airfares should remain moderate,” the official added. He made it clear that the government has no plan to regulate airfares. May-June is considered a peak period for airlines as a significant number of people go for leisure trips, amid summer vacations in schools.

Aviation minister Jyotiraditya Scindia had earlier this month said the government has told PW to supply engines so that the grounded planes of carriers are “up and running”.

“We cannot have multiple planes of one engine manufacturer on the ground in India, which is the case today, unfortunately,” Scindia had told reporters at a FICCI event.
 
The minister said the Directorate General of Civil Aviation (DGCA) was waiting for Go First’s plan on resumption of flights.
“We have very clearly said that we want a resumption of flights (by Go First) as soon as possible. They have to submit their plan to the DGCA. This plan will cover the number of planes and the number of routes. On the basis of this plan, the DGCA will decide how to take it forward,” he added.


Topics :Airline sectorIndian aviation

Next Story