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

    Ironside NewsBy Ironside NewsDecember 2, 2025No Comments11 Mins Read
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    Salman Shahid travels steadily between Srinagar, the largest metropolis in Indian-administered Kashmir, and New Delhi. He runs Rise, a personal teaching centre for college kids aspiring to affix the Indian Institutes of Expertise – the nation’s premier engineering faculties – in Srinagar, however his household relies in New Delhi.

    Flying helps him save time. However more and more, he simply can’t 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 steadily now,” he says. “Earlier, I’d make a minimum of 4 round-trips a month. Now, it’s come down to simply two.”

    He recollects 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 appears like a dream,” he says, including that he struggles to know how airfare has escalated so sharply in such a brief interval.

    He isn’t alone.

    In response to a study printed 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, performed 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 gasoline (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 although there isn’t a complete research capturing fare tendencies in 2025, but, consultants say costs have continued to rise all year long.

    “Regardless of the large surge already, airfares aren’t coming down and are solely going up,” stated 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 replicate nicely 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 known as the UDAN scheme – “Udan” means “flight” in Hindi, however the acronym stands for Ude Desh ka Aam Nagrik (Let the Widespread Citizen Fly). The said goal of the scheme was to dramatically develop India’s aviation infrastructure, and open up dozens of recent routes to make air journey accessible to lower-income Indians and folks in smaller cities and cities.

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

    His feedback successfully grew to become 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’t even afford sneakers.

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

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

    Beneath the Modi authorities, India has certainly witnessed a fast enlargement 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, consultants say. As a result of the variety of flights and routes has gone up, the full quantity of travellers in India has remained excessive, even when hovering costs imply that many particular person passengers are decreasing 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 yr, in keeping with authorities figures.

    Nonetheless, indicators of turbulence are seen, even within the information. 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 school member at Rajiv Gandhi Nationwide Aviation College, stated 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 know-how and service-driven industries in India have continued to embrace because the pandemic has allowed workers to journey extra steadily than earlier than. This has boosted occasional air journey amongst higher-income professionals, he stated.

    Nonetheless, regardless of year-on-year progress, 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 stated.

    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 tendencies’

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

    Lately, 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 Might 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, on account of mounting debt, authorized points, and grounded plane. In July 2022, the Directorate Common of Civil Aviation (DGCA), India’s aviation regulator, minimize 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 simply 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 tendencies,” stated 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 considerations 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, decreasing competitors and shopper alternative within the Indian market.

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

    The one different main aviation participant in India at this time 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 might 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 consultants 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 had been killed. As vacationers in different elements of Kashmir scrambled to depart the area, one-way ticket costs from Srinagar to different elements 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 yr, 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 finally stepped in to stress airways to curb costs. Nonetheless, Singh stated 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 Might 11, 2012 [Mustafa Quraishi/ AP Photo]

    Increased taxes including to the burden

    Specialists level out that airways alone should not answerable for the rising fares. India’s excessive aviation taxes are a key issue too.

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

    Passengers are additionally charged, as a part of their tickets, a person growth payment, starting from 150 rupees ($1.7) to 400 rupees ($4.5) relying on the airport; a passenger service payment of about 150 rupees ($1.7); an aviation safety payment of 200 rupees ($2.3) per passenger; a terminal payment 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, known as for higher readability in India’s taxation system, arguing that it was too complicated.

    Amjad Ali, a journey operator from New Delhi, stated 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 step by step, however since 2020, they’ve shot up quickly,” he stated.

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

    He stated that new airports, reminiscent of Purnea, have introduced in additional passengers because of the introduction of recent routes. Earlier than the pandemic, a Mumbai–Delhi ticket, booked nicely upfront, used to value about 3,800 rupees ($43), however now, it’s laborious to search out one beneath 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 pupil journey, however after privatisation, this was diminished to solely 10 p.c.

    The consequence, Ali stated, is a noticeable decline in pupil travellers. “We not often see college students flying today,” he stated.

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

    “If we wish air journey to develop into actually accessible to a bigger part of the inhabitants, notably these with restricted monetary means, the federal government and aviation stakeholders should work in direction of decreasing these taxes and surcharges,” she stated.

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



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