Why Airlines Fly Fewer As Government Allows For More Capacity

Written by Pranav Mukul, edited by Explained Desk | New Delhi |

Updated: Jan 23, 2021 6:35:04 PM

Although the government allows 80% of the capacity of scheduled flights to be operated on domestic flights, Indian airlines are operating at a significantly lower capacity.

In the latest domestic aviation update, Civil Aviation Minister Hardeep Singh Puri said on Saturday that 2.57 lakh passengers had flown on 2,211 flights on Friday, with the total number of flight movements being 4421 and the total number of steps in airports recorded at 5.18 lakh for that day.

Why has the government limited the flight capacity?

When the Center announced the reopening of domestic flights on May 25, after a two-month lockdown, it wanted to gradually increase the capacity that airlines can deploy to ensure that air travel does not suddenly start contributing to the spread. of Covid-19. At the same time, to ensure the well-being of passengers and airlines, the government had imposed a ceiling and a floor on air fares, according to various sectors.

Are these restrictions still valid?

Initially, the government allowed airlines to operate only 33% of the flights they took before the Covid-19 lockdown. This meant that if an airline made 100 flights, it could only operate a maximum of 33 flights when resuming domestic operations. This limit was gradually increased from 33% to 45% to 60% to 70% and on the last change in December it was increased to 80%. Plus, earlier this month, even as the government extended restrictions on domestic air fares until March 31, it allowed airlines to sell just 20% of tickets below the median fare. Previously, airlines were required to sell at least 40% of the seats on a flight below the median fare.

Does the government plan to ease restrictions further?

Even though the government has started to ease capacity restrictions further, it is still unknown when the final decision will be made. The number of flight movements and total steps at airports recorded for January 21, as the Minister of Civil Aviation points out, is still 68% and 57% of the daily average for January 2020, respectively. In addition, we learn that none of the national airlines has so far managed to deploy the currently authorized capacity of 80%.

How are airlines reacting to the drop in passenger numbers?

In anticipation of lower load factors after the winter break, almost all national airlines have launched discount sales in an attempt to sell tickets and raise cash. As a result, air fares in January were lower than in December. For example, according to data provided by online travel agency ixigo, the average one-way fare between Delhi and Mumbai for the period January 8-14 was 3,948 rupees, which is 23 percent less than 5,129 rupees at during the period from December 8 to 14.