Go First grounding: Civil aviation ministry to analyse impacted routes; Indian carriers plan to add more jets

Go First bankruptcy: Civil Aviation Minister Jyotiraditya Scindia on Thursday said there is an unusual situation due to the Go First crisis and there has been an excess demand on the routes the airline had been operating. 

Go First has not been flying since May 3 and is currently undergoing an insolvency resolution process.  

Go First's grounding has also resulted in trouble for air travellers as airfares have reportedly spiked multi-fold in the last one month. Some of the key routes that Go First operated on are seeing a very sharp surge. 

"We have given additional routes to other airlines but it is a piquant situation... I doubt any other sector has seen the vicissitudes that civil aviation has seen in the last three years," Scindia said while speaking at the India Economic Conclave. 

"... I have put together a group in the last couple of days and we are doing an analysis of a lot of those routes... that have been affected by this unusual event (Go First crisis),” the minister added. 

Go First, before suspending its operations, carried about 35,000 passengers daily. After its operations got suspended, flyers are now trying to book tickets with other airlines. Therefore, a squeezed capacity and increasing demand have led to airfares peaking especially due to the summer rush. 

As per a report in CNBC TV18, some of the routes that have seen a huge spike in airfares are Delhi to Leh, Mumbai to Leh, Delhi to Srinagar, Mumbai to Jammu, Delhi-Goa, Delhi-Patna, Mumbai-Patna, Mumbai-Varanasi, and Mumbai-Chennai. 

While responding to queries related to high airfares on certain routes, Scindia said: "One is Srinagar, Pune, slightly Ahmedabad, we are doing a full analysis on that... we will speak to airlines to make sure fares are within a certain level... it is an issue created by an unforeseen demand-supply imbalance." 

It is to be noted that aviation regulator Directorate General of Civil Aviation (DGCA) last week had granted a month’s time to the cash-strapped airline to submit its restructuring or revival plan for sustainable revival of operations.

It has also asked the low-cost carrier to submit the status of the availability of the operational aircraft fleet, post holders required, pilots and other personnel, maintenance arrangements, funding, working capital, arrangements with lessors and vendors, etc., before starting its operations.

Depending on its response to its financial and manpower resources, the aviation regulator will decide whether to allow the low-cost carrier to operate again.

Also read: Crisis-hit Go First extends flight cancellations till June 4 amid 'operational reasons'

Carriers adding more aircraft 

Meanwhile, Indian carriers are planning to add around 115 aircraft in this financial year, a report in The Economic Times said. IndiGo and Air India are planning to induct some aircraft, which will be deployed on domestic routes. 

Go First’s grounding, which had 7 per cent market share as of March, has led to a severe mismatch of supply and demand. Airline executives said that fleet addition by market leaders like IndiGo and Air India would plug the gap very soon.  

IndiGo, which has around 60 per cent share of India's domestic market, will see a net addition of around 50 aircraft by the end of this financial year, the report said.  

Its current fleet size is 304, senior executives of the airline said they have planned for 350 aircraft by the end of FY24. The airline has around 35 aircraft grounded due to a shortage of engines. 

"The addition will be a mix of Airbus A320 Neo and a longer version of A321 Neo," an IndiGo official told ET.  

He added that though IndiGo is looking at increasing its presence in international routes, the aircraft might deploy these aircraft in domestic sectors to take advantage of the space left by Go First. 

Also read: Go First crisis: Fallout from the bankruptcy can be contagious for India's aviation sector

On the other hand, Tata-owned Air India is planning to add 21 Airbus A321 Neo aircraft by next March. The airline has taken delivery of four A321 Neo aircraft, which it intends to deploy this month.  

Low-cost carrier Air India Express, which is a merger of Air India Express and Air Asia India, is expected to add around 50 Boeing 737 Max by this fiscal. 

SpiceJet is also looking at adding 20 aircraft by the festive season through wet leases and the return of grounded aircraft.  

(With agency inputs)

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