Close Menu
    Trending
    • Exclusive: 20 years in, this OG YouTube channel is opening a new studio
    • Katy Perry And Justin Trudeau’s Public ‘Hard Launch’ Stuns Fans
    • Appeals court allows Trump National Guard deployment in DC to continue
    • US grand jury declines to re-charge New York Attorney General Letitia James | Donald Trump News
    • Former Florida HC Billy Napier quickly lands new job
    • Gift-giving: Meaningful alternative | The Seattle Times
    • How the CEO of Macy’s sees retail in a world of tarriffs and shifting consumer habits (and how he gets ready for the parade)
    • Several Countries Boycott Eurovision 2026 Over Israel’s Participation
    The Daily FuseThe Daily Fuse
    • Home
    • Latest News
    • Politics
    • World News
    • Tech News
    • Business
    • Sports
    • More
      • World Economy
      • Entertaiment
      • Finance
      • Opinions
      • Trending News
    The Daily FuseThe Daily Fuse
    Home»Latest News»India’s sky-high fares crash dreams to make flying accessible to all | Aviation
    Latest News

    India’s sky-high fares crash dreams to make flying accessible to all | Aviation

    The Daily FuseBy The Daily FuseDecember 2, 2025No Comments11 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    India’s sky-high fares crash dreams to make flying accessible to all | Aviation
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Salman Shahid travels regularly between Srinagar, the most important metropolis in Indian-administered Kashmir, and New Delhi. He runs Rise, a non-public teaching centre for college students aspiring to hitch the Indian Institutes of Know-how – the nation’s premier engineering colleges – in Srinagar, however his household relies in New Delhi.

    Flying helps him save time. However more and more, he simply can not afford it.

    Earlier than the COVID-19 pandemic, Shahid says, a one-way flight from Srinagar to New Delhi would value him about 3,300 rupees ($37.20) on common. “Now, the identical ticket is over 5,000 rupees ($56), and that, too, with very restricted time choices,” he factors out.

    This 50 p.c surge in airfare has considerably affected his journey routine. “I don’t journey that regularly now,” he says. “Earlier, I’d make a minimum of 4 round-trips a month. Now, it’s come down to only two.”

    He remembers as soon as reserving a ticket for simply 1,700 rupees ($19) on Vistara, a home airliner, throughout a sale in 2019. “That form of pricing now seems like a dream,” he says, including that he struggles to grasp how airfare has escalated so sharply in such a brief interval.

    He isn’t alone.

    In accordance with a study revealed final November by Airports Council Worldwide (ACI), a world commerce affiliation representing greater than 2,000 airports in additional than 180 international locations, India noticed a 43 p.c rise in home airfares within the first half of 2024, in contrast with 2019, the second-highest within the Asia Pacific and West Asia areas after Vietnam.

    Worldwide fares additionally rose by 16 p.c. India was third on this class. A study representing 617 airports within the Asia Pacific and West Asia areas, carried out by ACI in partnership with Flare Aviation Consulting, a administration consulting boutique specialised within the aviation and airports sector, attributes this surge to excessive demand, restricted competitors on some routes, and a 38 p.c spike in aviation turbine gas (ATF) prices since 2019.

    Costs rose from 68,050 rupees ($759) per kilolitre in cities like Delhi in January 2019 to 93,766 rupees ($1,046) per kilolitre in October 2025. Airways are additionally recovering pandemic-era losses, additional pushing fares up.

    And though there isn’t any complete examine capturing fare traits in 2025, but, specialists say costs have continued to rise all year long.

    “Regardless of the massive surge already, airfares aren’t coming down and are solely going up,” mentioned Vandana Singh, the chairperson of the Aviation Cargo Federation of Aviation Business in India (FAII), a government-recognised physique that promotes India’s aviation sector.

    “The relentless enhance in airfare doesn’t mirror effectively on the accessibility of aviation in India,” Singh added, cautioning that the center and economically weaker sections of society might quickly discover themselves excluded from the air journey panorama altogether.

    Sajad Ismail Sofi, a journey agent, at his workplace in Srinagar, Indian-administered Kashmir [Aatif Ammad/Al Jazeera]

    ‘Hole catchphrase’

    In October 2016, Indian Prime Minister Narendra Modi launched what his authorities has referred to as the UDAN scheme – “Udan” means “flight” in Hindi, however the acronym stands for Ude Desh ka Aam Nagrik (Let the Frequent Citizen Fly). The said intention of the scheme was to dramatically broaden India’s aviation infrastructure, and open up dozens of latest routes to make air journey accessible to lower-income Indians and other people in smaller cities and cities.

    Whereas flagging off the primary flight below the scheme in April 2017, Modi mentioned, “I wish to see individuals who put on hawai chappals [flip-flops] flying in a hawai jahaaz [aeroplane].”

    His feedback successfully turned a slogan for the marketing campaign, touted as the federal government’s bid to make flying inexpensive and accessible for hundreds of thousands of individuals from small-town India, a lot of whom can not even afford footwear.

    However that slogan now carries a tinge of irony, Singh mentioned.

    “With fares escalating persistently over the previous few years, this inspiring slogan now dangers changing into a hole catchphrase slightly than a lived actuality.”

    Underneath the Modi authorities, India has certainly witnessed a fast growth within the variety of cities and cities linked by air, with airports greater than doubling from 74 in 2014, when Modi got here to energy, to 157 in 2024.

    However the numbers masks a deeper disaster that afflicts Indian aviation, specialists say. As a result of the variety of flights and routes has gone up, the overall quantity of travellers in India has remained excessive, even when hovering costs imply that many particular person passengers are lowering air journey.

    The nation is the world’s third-largest home aviation market, and witnessed a 15 p.c enhance in air passengers, year-on-year, within the 2024 monetary 12 months, in line with authorities figures.

    Nonetheless, indicators of turbulence are seen, even within the knowledge. Home air site visitors dipped to 12.6 million passengers in July 2025, in contrast with 13.1 million in June 2025. The numbers recovered in August to 13.2 million, however then dipped once more in September (12.6 million), earlier than rising in October to 14.3 million passengers.

    Rohit Kumar, an aviation economist and a college member at Rajiv Gandhi Nationwide Aviation College, mentioned that whereas passenger numbers haven’t fallen, “the rise in fares has quietly pushed the decrease and lower-middle courses out of the skies”. New airports, extra routes, and upper-middle-class travellers, who worth time over value, are persevering with to maintain complete passenger numbers up.

    Kumar added that the distant working tradition that many expertise and service-driven industries in India have continued to embrace because the pandemic has allowed staff to journey extra regularly than earlier than. This has boosted occasional air journey amongst higher-income professionals, he mentioned.

    Nonetheless, regardless of year-on-year development, the sector stays deeply unequal. India’s aviation sector, Kumar cautioned, is being carried by a small, prosperous part, whereas the overwhelming majority – rising flyers that the UDAN scheme was meant to serve – are more and more being left behind.

    Singh of the FAII was much more blunt.

    “The very individuals the [Modi] slogan referred to, those that put on chappals, are actually being priced out of the skies,” she mentioned.

    An aircraft of India's airline SpiceJet takes off in Mumbai, India, Sunday, Aug. 7, 2022. (AP Photo/Rafiq Maqbool)
    An plane of India’s SpiceJet airways takes off in Mumbai, India, Sunday, August 7, 2022 [Rafiq Maqbool/AP]

    ‘Monopolistic traits’

    Extra routes aren’t the one issue permitting airways to maintain elevating fares, even when they’re pricing out many passengers. They’re additionally helped by shrinking competitors.

    In recent times, a number of main airways have shut down, whereas others have merged after acquisitions.

    Go First, which as soon as held greater than 10 p.c of India’s home and worldwide market, with 52 plane, ceased operations in Could 2023 after submitting for chapter. Jet Airways, with a 21 p.c market share and 124 plane at its 2016 peak, halted operations in 2019.

    SpiceJet teetered on the sting of insolvency, particularly between 2022 and 2024, attributable to mounting debt, authorized points, and grounded plane. In July 2022, the Directorate Basic of Civil Aviation (DGCA), India’s aviation regulator, lower SpiceJet operations by 50 p.c. The DGCA cited “poor inner security oversight and insufficient upkeep actions”. SpiceJet additionally confronted vital delays, with a reported on-time efficiency (OTP) of 54.8 p.c in January 2025, making it the least punctual airline amongst main carriers on the time.

    Defaults on lease funds additionally led to plane repossessions, shrinking SpiceJet’s fleet from 118 in 2019 to only 28 operational planes by January 2025.

    “The back-to-back shutdown of airways in India severely impacted air journey, paving the way in which for monopolistic traits,” mentioned Singh. With fewer gamers within the skies, dominant airways can dictate costs and lift them at their discretion, she added.

    In one other main shake-up, Air India, India’s solely public sector airline, was officially privatised in January 2022, when the Tata Group took over full possession.

    Following this, Vistara, an airline already collectively owned by Tata and Singapore Airways, was merged with Air India in November 2024. The merger raised issues and confronted sturdy opposition from critics, together with commerce unions and opposition events, who feared that the consolidation of Air India, Vistara, and AirAsia India – one other Tata Group subsidiary additionally merged with the opposite two – would result in an aviation oligopoly, lowering competitors and client selection within the Indian market.

    Zuhaib Rashid, an economics and analysis affiliate on the Isaac Centre for Public Coverage, New Delhi, mentioned the merger handed over management of India’s skies to only two non-public gamers, posing a severe menace to competitors.

    The one different main aviation participant in India as we speak is Indigo, which has 61 p.c market share. Collectively, IndiGo and Air India now management 91 p.c of India’s airline market.

    Rashid argued that, had the federal government retained a stake in Air India, it may have ensured fare regulation. “Totally privatising airways has diminished authorities management over pricing, and has allowed non-public gamers to dominate in a rustic the place air journey stays a luxurious,” he added.

    Their dominance of the market additionally permits Air India and Indigo to jack up costs dramatically  throughout peak journey seasons or emergencies, tour operators and specialists say, citing two current examples.

    Sajad Ismail Sofi, a Srinagar-based air journey agent, pointed to the aftermath of the lethal April assault on vacationers in Pahalgam, a well-liked resort city in Indian-administered Kashmir, through which 26 civilians have been killed. As vacationers in different components of Kashmir scrambled to go away the area, one-way ticket costs from Srinagar to different components of India skyrocketed from 5,000 rupees ($56) to almost 12,000 rupees ($135).

    After airways confronted main criticism and accusations of profiteering from a nationwide disaster, costs got here down.

    Earlier within the 12 months, Singh from the FAII recalled, one-way airfares from India’s monetary capital, Mumbai, to the temple city of Prayagraj soared to 50,000 rupees ($564) – dearer than flights to Paris – in the course of the Mahakumbh Mela, one among Hinduism’s most sacred occasions through which devotees take dips within the Ganga river. The federal government ultimately stepped in to strain airways to curb costs. Nonetheless, Singh mentioned that the majority pilgrims had already purchased their tickets by then.

    Al Jazeera has sought responses from Indigo and Air India to the criticism and allegations of utilizing their market dominance to cost exorbitant charges. Neither airline has responded.

    FILE-In this May 11, 2012, file photo, An Air India aircraft stands at the Indira Gandhi International airport in New Delhi, India. India said Monday it plans to sell its entire stake in the national carrier Air India to shore up falling revenues and privatize the airline, after an initial attempt last year failed to attract a single bidder. (AP Photo/ Mustafa Quraishi, file)
    An Air India plane stands on the Indira Gandhi airport in New Delhi, India on Could 11, 2012 [Mustafa Quraishi/ AP Photo]

    Increased taxes including to the burden

    Consultants level out that airways alone aren’t chargeable for the rising fares. India’s excessive aviation taxes are a key issue too.

    The nation imposes the best taxes on aviation turbine gas (ATF) in Asia, which account for 45 p.c of air ticket costs. By mid-2024, jet gas costs in cities like Delhi and Mumbai have been almost 60 p.c larger than in international hubs like Dubai, Singapore, and Kuala Lumpur, largely attributable to value-added taxes (VAT), central excise duties and extra cesses.

    Passengers are additionally charged, as a part of their tickets, a consumer growth charge, starting from 150 rupees ($1.7) to 400 rupees ($4.5) relying on the airport; a passenger service charge of about 150 rupees ($1.7); an aviation safety charge of 200 rupees ($2.3) per passenger; a terminal charge of 100 rupees ($1.2); and a regional connectivity cost between 50 rupees ($0.6) and 100 rupees ($1.2) per passenger. Every of those quantities is small, however collectively, they add up. And they don’t go to the airline, however to the airport or the federal government.

    In June, the Worldwide Air Transport Affiliation (IATA), which represents greater than 350 airways globally, referred to as for higher readability in India’s taxation system, arguing that it was too advanced.

    Amjad Ali, a journey operator from New Delhi, mentioned he had been within the air ticketing enterprise since 2005, and had by no means witnessed a pointy rise in airfares till 2020. “Fares used to extend steadily, however since 2020, they’ve shot up quickly,” he mentioned.

    Ali normally books tickets on routes like Delhi–Mumbai, Delhi–Patna, and Delhi–Purnea. Patna and Purnea are cities within the jap Indian state of Bihar.

    He mentioned that new airports, akin to Purnea, have introduced in additional passengers as a result of introduction of latest routes. Earlier than the pandemic, a Mumbai–Delhi ticket, booked effectively prematurely, used to value about 3,800 rupees ($43), however now, it’s onerous to search out one under 6,000 rupees ($68) for a similar journey.

    In the meantime, airways have additionally began chopping reductions they used to supply to some sections of flyers. Beforehand, Air India supplied a 50 p.c concession on the bottom fare for home scholar journey, however after privatisation, this was diminished to solely 10 p.c.

    The end result, Ali mentioned, is a noticeable decline in scholar travellers. “We hardly ever see college students flying today,” he mentioned.

    In the end, Singh from the FAII mentioned, the trade was capturing itself within the foot by making flying unaffordable for hundreds of thousands of Indians.

    “If we wish air journey to grow to be actually accessible to a bigger part of the inhabitants, significantly these with restricted monetary means, the federal government and aviation stakeholders should work in the direction of lowering these taxes and surcharges,” she mentioned.

    Till then, a aircraft journey will stay a flight of fancy for many of India’s 1.4 billion individuals.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    The Daily Fuse
    • Website

    Related Posts

    US grand jury declines to re-charge New York Attorney General Letitia James | Donald Trump News

    December 5, 2025

    Trump can keep National Guard in Washington, DC, for now: Appeals court | Donald Trump News

    December 5, 2025

    Putin challenges US pressure on India over Russian oil during state visit | Russia-Ukraine war News

    December 4, 2025

    Qalqilya targeted as Israel escalates raids in northern West Bank | Israel-Palestine conflict News

    December 4, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    Top Posts

    Health Issues Or A Disability May Force You To Retire Early

    May 11, 2025

    Social Security payments will see these 3 changes in 2026: What to know about updates to benefits

    October 25, 2025

    Bummer summer: Seattle can’t allow swimming beaches to become toxic stews

    August 6, 2025

    Harvard challenges Trump ban on entry of international students

    June 6, 2025

    Neutrinos Are Shrinking, and That’s a Good Thing for Physics

    April 10, 2025
    Categories
    • Business
    • Entertainment News
    • Finance
    • Latest News
    • Opinions
    • Politics
    • Sports
    • Tech News
    • Trending News
    • World Economy
    • World News
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • About us
    • Contact us
    Copyright © 2024 Thedailyfuse.comAll Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.