Harsh Goenka Backs Airlines Amid Indigo Chaos, Says ATF, Pilot Salary Have Skyrocketed Sparks Online Debate - 'Wake Up'

(MENAFN- Live Mint) Billionaire Harsh Goenka has sided with the aviation sector in a new social media post, arguing that Indian aviation has suffered the brunt of inflation over the last 45 years.

The RPG Group Chairperson's comments come amid a brief period of skyrocketing air fares following the IndiGo flight cancellation that caused massive disruptions across the country.

“Before we judge Indian aviation, a reminder: in 45 years, ATF prices are up 20×, aircraft costs 20×, pilot salaries 50×-yet airfares, adjusted for inflation, have fallen,” Goenka said in a post on X on Tuesday evening.

He compared air fares to those of taxis.

“We'll pay ₹5,000 for a 100 km taxi ride but feel unhappy paying the same for 2,500 km by air,” the billionaire said.

“Criticism is fair, but let's not ignore the economics that keep India flying affordably,” he added.

Harsh Goenka's comments come in the backdrop of mass IndiGo flight cancellations, which has entered its 10th day today, spiralling into one of the worst crisis in the Indian aviation industry.

Also Read | IndiGo News LIVE: 45+ flights cancelled at Goa, Chennai, Coimbatore airports Netizens divided, online debate surfaces

The remarks from Harsh Goenka resulted in a heated conversation on the internet, with some people supporting the billionaire while others pointed out at loopholes in his argument.

“We expect world-class service at below-cost pricing. Economics don't work that way forever,” a user supporting Goenka said.

“Flying got democratized but our expectations didn't. That's the real turbulence,” another agreed.

Also Read | From passenger unit to capacity change - IndiGo cuts Q3 guidance

“This puts things in perspective. ATF, aircraft and manpower costs have skyrocketed, yet airfares haven't climbed anywhere near proportionately. India's aviation sector deserves more credit than it receives,” a third user shared.

However, not everyone was agreeing with the RPG Group Chairperson's view.

“Wake the hell up to what's been happening in the last two weeks with IndiGo's massive fiasco.. it's a full-blown disaster that's jacked up ticket prices artificially. People were stuck for hours, sometimes days, with kids crying, old folks suffering, and no real help from the airline. During this, prices shot up to ₹30,000–60,000 on some routes. The guy who booked a ₹5,000 ticket months ago, only to have it canceled and then forced to pay ₹50,000 for a new one on the spot. No one complained about paying 5K or 8K for 2500 kms on air travel for sure,” a netizen argued.

Another person pointed out that while airlines carry hundreds of passengers on an average in a single aircraft, a taxi can carry only a single party.

Also Read | IndiGo CEO summoned again over cancellations: 'Strict instruction' given

“The secret to air travel's affordability lies in economies of scale. An aircraft distributes the operating cost over 150-500 passengers, whereas a taxi ride is a dedicated service for a single party. This massive difference in cost distribution is what allows the Indian aviation industry to offer such an unparalleled value proposition. You can of course compare taxi with the personal aircraft,” this person said.

A third netizen noted that ancillary services like seat booking contribute massively to airline revenues, and have doubled since 2010.

“Have you considered the increase in cost of ancillary services (seat preference, meals, baggage,priority etc )? These now contribute ₹10,000-20,000 crore annually to Indian airlines (estimated from 10-15% of ~ ₹1.5-2 lakh crore total revenue in FY24). This is a 100%+ increase from 2010 levels, with 30% CAGR projected for IndiGo through FY26,” the person said.

IndiGo flight cancellations are still going on, albeit fewer, with as many as 36 flights to and from Chennai Airport standing cancelled on Thursday.

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