Fares set to fly high as aircraft grounded after Ethiopian crash
Ayyappan.V@timesgroup.com
Chennai:14.03.2019
Domestic airfares are set to go up as SpiceJet grounds its B737 Max 8 planes following a DGCA directive after the Ethiopian air crash. Around 14 flights have been cancelled as the aircraft model is being taken off service by Wednesday.
This means that between SpiceJet and Jet Airways, around 50 flights will not be operating. This will lead to capacity reduction on many routes resulting in hike in air fare in the coming weeks, feel airlines and travel agents. The increase in prices will hit families travelling during summer holidays.
SpiceJet in a statement said: “SpiceJet is rationalizing and optimizing the use of its Boeing 737 NG and Bombardier Q400 aircraft to address the current situation and minimize inconvenience to its passengers. We are evaluating options for augmenting capacity through additional flights and aircraft induction. We are sure our operations will be normal soon.”
Complying with the DGCA directive, SpiceJet has grounded its entire B737 Max fleet, while most of the B737 Max 8 aircraft of Jet Airways are grounded because the airline has to pay the lessors.
Sharat Dhall, COO (B2C) Yatra.com said, “At least 50 planes are out of action or grounded on the domestic front due to multiple reasons. That is a significant reduction in domestic airline capacity. The additional capacity coming in is not likely to cover this in the short term, while demand is going to be robust over the next few months because of the school holidays and surging leisure travel. The shortage of planes and high seat occupancies are expected to push airfares north in the short term.” Dhall said airfares were at least15% higher this year when compared to last year. A comparison of fare for March 14 in 2019 and the previous year, shows prices went up from Rs4,655 to Rs8,762 because of capacity reduction on the Chennai-Delhi route. On Mumbai-Chennai route the fare has increased from ₹5,671 to ₹20,329.
Aloke Bajpai, CEO and cofounder, ixigo, said: “Post the DGCA announcement, 34 international flights to Mumbai and 12 flights bound for Delhi were cancelled. Grounding of additional planes will further impact fares which were already high this season.” He said a majority of affected passengers have been accommodated by SpiceJet on alternate flights. “Additionally, the airline is also offering passengers the option of a refund, change of flight or date or destination (to nearest alternate airport), without any cancellation charges or fare difference.”
Ayyappan.V@timesgroup.com
Chennai:14.03.2019
Domestic airfares are set to go up as SpiceJet grounds its B737 Max 8 planes following a DGCA directive after the Ethiopian air crash. Around 14 flights have been cancelled as the aircraft model is being taken off service by Wednesday.
This means that between SpiceJet and Jet Airways, around 50 flights will not be operating. This will lead to capacity reduction on many routes resulting in hike in air fare in the coming weeks, feel airlines and travel agents. The increase in prices will hit families travelling during summer holidays.
SpiceJet in a statement said: “SpiceJet is rationalizing and optimizing the use of its Boeing 737 NG and Bombardier Q400 aircraft to address the current situation and minimize inconvenience to its passengers. We are evaluating options for augmenting capacity through additional flights and aircraft induction. We are sure our operations will be normal soon.”
Complying with the DGCA directive, SpiceJet has grounded its entire B737 Max fleet, while most of the B737 Max 8 aircraft of Jet Airways are grounded because the airline has to pay the lessors.
Sharat Dhall, COO (B2C) Yatra.com said, “At least 50 planes are out of action or grounded on the domestic front due to multiple reasons. That is a significant reduction in domestic airline capacity. The additional capacity coming in is not likely to cover this in the short term, while demand is going to be robust over the next few months because of the school holidays and surging leisure travel. The shortage of planes and high seat occupancies are expected to push airfares north in the short term.” Dhall said airfares were at least15% higher this year when compared to last year. A comparison of fare for March 14 in 2019 and the previous year, shows prices went up from Rs4,655 to Rs8,762 because of capacity reduction on the Chennai-Delhi route. On Mumbai-Chennai route the fare has increased from ₹5,671 to ₹20,329.
Aloke Bajpai, CEO and cofounder, ixigo, said: “Post the DGCA announcement, 34 international flights to Mumbai and 12 flights bound for Delhi were cancelled. Grounding of additional planes will further impact fares which were already high this season.” He said a majority of affected passengers have been accommodated by SpiceJet on alternate flights. “Additionally, the airline is also offering passengers the option of a refund, change of flight or date or destination (to nearest alternate airport), without any cancellation charges or fare difference.”
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