INDUSTRY

Air fares soar by 25% as Vistara slashes flight operations by 10%

Air fare prices are witnessing a further surge as Vistara has announced plans to scale down operations by reducing 25-30 flights per day, equivalent to about 10 per cent of its total capacity, to address the recent crisis situation experienced by the airlines. This is particularly true on routes like Delhi-Goa, Delhi-Kochi, Delhi-Jammu and Delhi-Srinagar, where fares have surged by approximately 20-25 per cent.

Vistara experienced notable disruptions last week due to numerous flight cancellations and delays. The issues arose due to several pilots calling in sick, purportedly expressing dissatisfaction with a new pay structure, apprehensions regarding the impending merger with Air India and concerns about a rostering system that was reportedly placing excessive demands on them. This also resulted in aviation regulator asking for a daily report from the airline regarding its flight operations.

As a part of airline’s efforts to address challenges, the Tata Group-owned airline has announced over the weekend that it will be cutting approximately 10 per cent of its operational capacity, mainly in its domestic network. This decision aims to create a necessary cushion in its crew rosters and enhance resilience. With air fares already elevated due to a mismatch in supply and demand, Vistara’s action has intensified pressure, especially on the routes affected by the cancellations. During the height of flight disruptions at Vistara last week, air fares for same-day and day-ahead bookings reportedly surged by more than 30 per cent on certain major routes affected by flight cancellations. This increase was observed as many affected passengers sought alternative flight options.

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