IndiGo CEO Pieter Elbers in an interview with PTI highlighted the tough, yet healthy, Indian aviation market and the enormous demand for travel among people.
IndiGo has the highest share in the market at a little over 60 percent and has more than 360 aircraft making up its fleet. In the interview, Elbers spoke about the overall price in India which he claimed is “very very competitive”, which according to him is a “part of the change in India itself and the diversity of India”.
Rising airfares in India
Sky-rocketing airfares have been troubling flyers for quite some time now. As air traffic steadily increases and airlines extend their reach to include new destinations, there is a growing apprehension in some circles regarding escalating airfares, particularly during peak seasons. In the country, air ticket prices operate under deregulation, primarily dictated by the interplay of supply and demand.
According to Elbers, there is healthy and tough competition in the Indian market. “Indian consumers are really eager to travel, but it is also a price-sensitive market. What I see is that whenever a new route is announced, there is enormous demand from consumers to travel,” he said.
India is currently one of the fastest expanding civil aviation sectors. Typically, the daily influx of domestic air traffic ranges from 4.3 to 4.5 lakh, with domestic airlines transporting over 152 million passengers in 2023.
“India is indeed a price sensitive market, and we see some fluctuations in the prices…the natural fluctuation of fares, we see it for hotels, we see it for other businesses and airlines as well,” he added.
Elbers remarked that when considering the overall price level in India, it is highly competitive, if not lower, in comparison to certain other regions worldwide. He suggested viewing it as a reflection of India’s evolving landscape and its diverse nature.
According to Cleartrip, airfares are anticipated to stay elevated in the near future, potentially up to 15% higher compared to the corresponding period last year, until May.
Earlier this year, Akasa Air Founder and CEO Vinay Dube said that airfares in India are incredibly affordable.
(With PTI inputs)