IndiGo CEO Highlights Price Sensitivity in Indian Aviation Market
Pieter Elbers, CEO of India’s largest airline, IndiGo, emphasized the price sensitivity of the Indian aviation market, noting the healthy yet competitive landscape. With a domestic market share exceeding 60%, Elbers acknowledged the significant demand for travel within the country.
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In an interview with PTI, Elbers commented on the dynamic nature of airfares in India, citing the fluctuations driven by supply and demand dynamics. He emphasized that while prices may vary, the overall competitiveness of fares in India remains notable, reflecting the diverse nature of the country.
According to Cleartrip, airfares are expected to remain elevated in the short term, with a potential increase of up to 15% compared to the previous year. Ayyappan Rajagopal, CEO of Cleartrip, attributed this trend to ongoing supply chain and engine issues affecting capacity addition.
Echoing similar sentiments, Vinay Dube, Founder and CEO of Akasa Air, remarked on the affordability of airfares in India. However, concerns about surging fares have prompted discussions within parliamentary panels, with proposals for route-specific capping and the establishment of a separate entity to regulate ticket prices.
Despite these discussions, India continues to be one of the world’s fastest-growing civil aviation markets, with significant daily domestic air traffic and a substantial number of passengers carried by domestic airlines in 2023.
The remarks from industry leaders underscore the complexities of pricing dynamics in the Indian aviation sector and highlight the ongoing efforts to balance affordability with market dynamics and regulatory considerations.
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