Vistara’s cut in daily flight operations leads to 25% jump in fares on key domestic routes: Reports

Private carrier Vistara’s decision to reduce daily flight operations by 10% has led to a 20%-25% jump in fares on key domestic routes, reports said on Tuesday, April 9, citing travel industry stakeholders.

The Tata Group airline had announced the scaling down of operations on Sunday, April 7, after a tumultuous week for the carrier when it was forced to cancel dozens of flights due to crew and pilots shortage.

A 10% cut in operational capacities will lead to a reduction of 25-30 flights per day, a Vistara spokesperson had said. This comes at a time when the aviation sector is facing a supply-demand imbalance, with the number of domestic passengers shooting up in the post-Covid-19 pandemic period.

Also Read: Vistara cuts 10% of flights on domestic routes; what it means for passengers

The demand is poised to further accelerate in the ongoing summer season, experts said, adding that this would lead to a further rise in prices. The aviation sector is also stressed by the absence of Go First, which filed for bankruptcy in May last year, and the grounding of nearly 70 IndiGo aircraft due to engine issues, they pointed out.

Which are the domestic routes where flight rates have gone up?

Following Vistara’s announcement related to the scaling down of operations, a “significant surge” in fares has been recorded for flights originating from Delhi for at least four destinations – Kochi, Srinagar, Jammu and Goa, said Bharatt Malik, Senior Vice President, Air and Hotel Business at Yatra Online, while speaking to The Indian Express.

The four destinations witness a peak in traveller footfall during the summer months, which are marked by school vacations. While Kochi and Goa are frequented for their serene beaches, Jammu and Srinagar have emerged as key summer getaways for vacationers.

“We have observed a significant surge in fares, with prices skyrocketing by approximately 20-25 per cent across key routes such as Delhi-Goa, Delhi-Kochi, Delhi-Jammu, and Delhi-Srinagar,” the newspaper quoted Malik as saying.

Why has Vistara reduced its daily flight operations?

Vistara said the temporary scaling down of its daily flights is aimed at stabilising operations, as the pilots have been working on a stretched roster in recent period.

“We are going to go back to the pilots to seek their views and inputs to see how it (rostering system) is working, and what their thoughts are... whether they should be amended, whether they should be improved,” the airline’s CEO Vinod Kannan told news agency PTI on Saturday, April 6. The new roster would be adopted after incorporating their suggestions, he added.

However, reports had claimed last week that a section of pilots and crew members resorted to mass absenteeism to mark their protest against Vistara’s move to a new pay structure.

Kannan, while agreeing that “some pilots have some concerns and queries regarding the contract”, denied it as the reason behind the disruption in flights. Around “98% of the pilots” have accepted the new pay structure, he said, adding that the company is engaging with the pilots who have concerns to clarify and resolve the same.