The sudden withdrawal of around 200 flights services per day by Go First has not just led to a rush for ticket cancellations by flyers, leading to a rise in bookings of other airlines, airfares have also reported a sharp surge.
The Wadia-controlled airline which has filed for insolvency proceedings under Section 10 of the Insolvency and Bankruptcy Code with the National Company Law Tribunal (NCLT), has decided to extend suspension of flights till May 15. The Mumbai-based airline had announced cancellation of all flights between May 3 and May 5 on Tuesday.
Spot airfares offered by Go First’s competitors on select routes have surged due to the sudden fall in the number of seats available. Many of the routes have already hit a minimum of two-month high.
Also read: Go First files for insolvency, all flights suspended for two days
For instance, the least priced ticket for a Mumbai-Srinagar non-stop flight costs over ₹28,000 for May 5 as against around ₹11,000 on May 2. May is considered a peak season for air travel due to the summer holidays.
According to online travel portal ixigo, one-way spot fares to Goa from Mumbai have increased 43% to ₹5,848 between May 3 and May 5 as against ₹4,089 recorded between April 26 and April 28.
“Similar increases, especially on non-prime routes and where flight options are low, have reported a sharp surge since Tuesday’s Go First announcement,” said a senior executive of a travel agency.
Other no-frills carriers such as Indigo, Akasa Air, SpiceJet and Air Asia are expected to benefit from the withdrawal of service by Go First. But since all carriers are flying with an occupancy (passenger load factor) of more than 85%, there is limited space available.
“Go First ferries between 25,000-30,000 passengers a day. The average PLF of the other top six airlines is 85%. The balance 15% cannot accommodate those many flyers and this is bound to lead to airfares surge,” said an aviation analyst.
Only in March, Go First announced that it will operate 11% more flights per week in the summer schedule when compared to the winter, as per its plan submission with the Directorate General of Civil Aviation (DGCA). The summer schedule started on March 26 and will end on October 28.
“Airfares are not manually controlled anymore; a lot of factors contribute to it. If there is a withdrawal of seats from the market then it will have an effect on the airfares in general. But flight service cancellations happen on a small scale, it is very rare that cancellations of the magnitude of Go First happen,” said another executive from the ticket booking industry.
The DGCA said on Tuesday it was not made aware by Go First about its plan to suspend services, which amounts to non-compliance with conditions for approval of its schedule, and also inconveniences to passengers.
Go First’s suspension of operations coincides with a surge in domestic air travel. According to the ministry of civil aviation, domestic air travel hit an all-time high of 456,082 passengers in a single day on April 30, surpassing the pre-pandemic average.