Goenka Says Rising Costs Don’t Mean Expensive Air Travel
Industrialist Harsh Goenka has voiced support for India’s aviation sector even as IndiGo faces severe operational problems. On social media, he argued that despite steep rises in airline expenses over decades, airfare in India has remained affordable.
He pointed out that over the last 45 years:
- Aviation turbine fuel (ATF) costs have increased by 20 times.
- Aircraft prices have risen 20-fold.
- Pilot salaries now are 50 times higher than before.
Yet — adjusted for inflation — Goenka says airfares today are cheaper than many decades ago. “We’ll pay ₹5,000 for a 100-km taxi ride but feel unhappy paying the same for 2,500 km by air,” he wrote.
Why His Defence Matters Right Now
- The aviation sector is under fire due to hundreds of recently cancelled flights by IndiGo. That has sparked outrage among travellers, many of whom experienced delays, cancellations, or fare spikes.
- Goenka’s comments serve as a reminder of the structural costs and challenges airlines face — fuel price volatility, aircraft maintenance, salaries, dollar-denominated leases.
- Some analysts view this as a pitched attempt to frame passenger expectations: while disruptions are regrettable, maintaining low fares over long-term requires trade-offs. His message is effectively: “Indian aviation’s affordability has a hidden cost.”
What Others Are Saying
Goenka’s post has stirred mixed reactions.
- Some agreed — highlighting that sustained low fares despite rising costs is a case of market discipline and pressure on airlines.
- Others criticised it — pointing out that during the current crisis, many passengers faced severe inconvenience, cancelled flights, baggage issues and no clarity. For them, “affordability + reliability” matters — not just cheap tickets.
What This Means for the Aviation Sector
- The debate underscores a core tension: affordable flying vs sustainable airline economics. As costs skyrocket (fuel, maintenance, salaries, currency), keeping fares low puts pressure on margins.
- The crisis at IndiGo has also exposed structural fragility: over-dependence on a handful of airlines, tight pilot rosters, and sensitivity to regulatory or operational shocks.
- For passengers, the message is to temper expectations: cheap flights may come with trade-offs — possible cancellations, lower service levels, or delays — especially during turbulent periods.
Also Read : IndiGo Offers Rs 10,000 Travel Vouchers to Severely Impacted Customers
