Need more rational airfares in country: SpiceJet CEO Ajay Singh

Press Trust of India

New Delhi: SpiceJet CEO Ajay Singh on Thursday said there is a need for “more rational airfares” in the country even as he tried to assuage concerns of a hike in airfares as a consequence of competitor Go First filing for voluntary insolvency by terming it a “temporary phenomena”.

He termed the Go First development as “extremely unfortunate” and expressed hope that the airline can use this opportunity to resolve their issues. Asked about concerns on hike in airfares as a consequence of competitor Go First filing for voluntary insolvency, the SpiceJet chief said: “Those are temporary phenomena”.

“Of course when there is a mismatch of supply and demand, airfares will go up but this settles quite nicely as you would have seen the last time an airline went down there was a temporary period of mismatch and the capacity came into the system and fares were back to normal,” Singh said. He further said that while the era of low airfares has helped in boosting air travel in this country, sometimes it has also led to difficulties for airlines as is evident for all to see.

He observed that more rational airfares are required in the country and hoped that the fares will be more rational in the times to come. Speaking to reporters on the sidelines of an Assocham event, Singh, who is also the President of the industry body, said it was “Not at all likely” that the aviation sector will be affected by one airline going down.

“You will see that the number as on April 30, we had 4,50,000 people who travelled by air, that was a record number. At no time in the past has India seen such a record number of people travelling by air and you will see the numbers bounce back really really quickly,” he said.