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Insurance Article

Air India flight cancellations result in air fare hike

May 17 2012

Air India​'s miseries finally converted into good news for contending worldwide carriers. With the state-run airline forced to annul flights due to agitation of pilot, and sharp hike in the international sector. The average fare has now risen to about 20 percent and most passengers are finding it really difficult to catch up with a seat. This was stated as per a report forwarded by Aneesh Phadnis and Mihir Mishra in Business Standard.

According Siddharth Mehta, head of air product vertical at online travel portal MakeMyTrip.com, Air India has recently cancelled its flights on international routes to Europe, the United States and other short-haul routes to Singapore and Hong Kong. Mehta also added that these cancellations have increased up to 20 percent. He also said that on account of a basic demand-supply mismatch, almost all the airlines are facing an upsurge in revenues.

Mehta also said that the international carriers will be the key beneficiaries for the reason of their greater numbers. He also mentioned that the Jet Airways is the only Indian carrier that possesses a dynamic strong presence in the international sector. Hence, the foreign carriers will definitely gain the maximum from flight cancellations of Air India.

Air India is known to be the largest Indian carrier in the global sector in terms of traveller carriage. It commands about 20 percent market share in the industry and offers about 50 percent of total overall seats offered by Indian carriers in the market. Indian carriers flying overseas will offer about 200,000 seats in a week. Of that, about 100,000 seats are opened by the state carrier. Global carriers, alternatively, propose 340,000 seats in a week. The circumstances could deteriorate as soon as the airline implements its plan to melodramatically decrease the number of flights to Europe as well as the United States from 34 flights in a day to only about 14.


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