The Indian Wire » Business » Airfares might shoot up by 20% due to grounding of about 50 planes

Airfares might shoot up by 20% due to grounding of about 50 planes

Airfares may shoot up by 20% in the coming days owing to various reasons like grounding of Jet Airways planes due to non payment to lessors, the ongoing shortage of pilots in Indigo and the most recent grounding of Boeing 737 MAX 8 by the civil aviation ministry after the crash of Etopian plane on Sunday.

All of this will have a direct effect on airfares and as per various travel agents and industry experts, the airfares are likely to shoot up by 20%.

Naresh Goyal led Jet Airways which has a 123 airplane fleet, has grounded about 40% of its fleet as the beleaguered airline is unable to pay rental to its lessors. This situation has been worsened by the ongoing strike of Indigo pilots. Also, Indigo is facing shortage of pilots as most of ts pilots have crossed the 1000 hours per year limit.

And at last the situation deteriorated when Civil aviation ministry ruled that Boeing 737 MAX 8 will not be allowed to transit in Indian airspace due to safety issues. Earlier today India’s Director General of Civil Aviation (DGCA) ordered grounding of all such Boeing airplanes with immediate effects.

This will lead to grounding of about 12 SpiceJet planes, making the situation worse.

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