New Delhi: India witnessed rapid recovery on the domestic air travel as a pandemic subsiding.
Indigo the largest airline in the country now operates more domestic flights on peak travel days like weekends or holidays than what happens before Covid, behind the increasing connection to small cities.
But airplane tickets can be immediately more expensive because the combined pressure of the increase in jet fuel prices and fallen rupees has reached a point where the airline must continue this increase in operating costs for passengers in terms of higher rates.
CEO of Indigo Ronojoy Dutta said, “In the pre-pandemic period, we have around 1,600 daily flights that are 400 to 450 are international.
At present, we have around 1,400 daily flights that are almost 80 are international.
(These numbers vary from lean to The peak day of travel.) The peak looks good.
The government has permitted a 100% domestic capacity and our current order is 90-95% of the pre-covid level.
“But the unrelenting increase in flight turbine fuel (ATF) or Jet fuel prices and decreased rupees can now force the airline to increase tariffs to avoid bankruptcy.
“Crude oil has changed from $ 43 a barrel last October to $ 84 now.
We need tax assistance.
Rates need to reflect higher fuel prices, higher operating costs (added to fallen rupees).
Fuel is a problem and tariff must be taken higher, “Dutta said.
“Airlines around the world received government assistance.
We did not get it, which was fine.
But excise at fuel (11%) and other indirect taxes in India are very high.
Airlines pay a 21% indirect tax and this is effectively The highest for any industry in India is because we do not get input tax credit on fuel.
This needs to be softened because we are infrared critical players, “Dutta said.
Meanwhile, preparing competition from Indian water, Indigo has ordered a new chair “improving, softer and more comfortable” for the entire armade.
“The order has been placed for a new chair,” Dutta said.
Indigo will start getting Airbus A321 XLR (extra-length range) which will be carried out for seven hours without stopping to cities such as Tel Aviv, Milan and Dusseldorf.
This is a finalization of products for this flight that will include new seats, ovens for hot dishes and plug sockets in the chair so that passengers keep private electronic devices charged during the trip.
Air travel seeing Swift recovery: Indigo CEO
