SpiceJet CEO Ajay Singh calls for “more sensible airfares” in the country
According to SpiceJet CEO Ajay Singh, there is a need for more reasonable airfares in the country. He also addressed concerns about a potential increase in airfares due to Go First’s voluntary insolvency filing, stating that it is a “temporary phenomenon.” Singh expressed his hope that the airline can use this situation to resolve its issues and improve.
Singh went on to say that when there is a discrepancy between supply and demand, airfares may rise, but this issue will eventually resolve itself. He referred to a past situation where an airline had gone bankrupt, resulting in a temporary supply-demand mismatch. However, the system regained its capacity and fares returned to normal, restoring normalcy after a temporary supply-demand mismatch caused by the bankruptcy of an airline.
During an Assocham event, Singh, the President of the industry body, addressed the challenges faced by airlines in India. While low airfares have increased air travel in the country, they have also caused difficulties for airlines. Singh emphasized the need for more rational airfares, hoping that they will be implemented in the future.
Singh expressed confidence in the aviation sector, stating that the downfall of one airline would not have a significant impact. He cited the record-breaking number of people who traveled by air in April 2023, indicating that the numbers would rebound quickly. Despite the unfortunate situation of an airline going down. Singh hoped that Go First would use this opportunity to resolve their issues and emerge stronger. He further hoped that the aviation sector, at large, would use this opportunity to address their problems and become more robust.
SpiceJet has revealed its plans to add 25 airplanes to its fleet in response to the increased demand for flights. During the pandemic, many of the airline’s aircraft were grounded, leaving several small stations disconnected or under-connected. However, the carrier aims to bring back all those flights, enhance connectivity, and increase frequency to multiple destinations around the world.
On Wednesday, SpiceJet announced its progress in revitalizing 25 grounded airplanes, with Rs 400 crore already mobilized for the purpose. The announcement comes a day after rival Go First filed for voluntary insolvency resolution proceedings and announced a three-day flight cancellation starting May 3. The airline intends to draw funds from the government’s Emergency Credit Line Guarantee Scheme (ECLGS). And better cash accruals for the revival of the aircraft, which includes Boeing 737 and Q400 planes. SpiceJet’s current fleet comprises roughly 80 aircraft.
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