India is a price-sensitive market, says IndiGo CEO
The Hindu
IndiGo's chief discusses fierce competition and price sensitivity in India's aviation market, with high demand for travel.
There is healthy and tough competition in the Indian aviation market, which is also price sensitive, India’s largest airline IndiGo’s chief Pieter Elbers said, adding that there is an enormous demand for travel in the country.
Mr. Elbers, who heads IndiGo, which has a domestic market share of little over 60% , said the overall price levels in India are "very very competitive", adding that he thinks one should take "as part of the change in India itself and the diversity of India".
While air traffic continues to rise and airlines expand their operations by connecting new destinations, there are concerns about high rates, especially during peak seasons. Air ticket prices are deregulated, and fares are mostly a function of supply and demand.
In a recent interview with PTI, Mr. Elbers said there is healthy and tough competition in the Indian market. “Indian consumers are really eager to travel, but it is also a price-sensitive market. What I see is that whenever a new route is announced, there is enormous demand from consumers to travel,” he said.
"We see some fluctuations in the prices...the natural fluctuation of fares, we see it for hotels, we see it for other businesses and airlines as well. If you look at the overall price level in India, it is very very competitive, if not low, compared to some other parts of the world. I think you should take it as part of the change in India itself and the diversity of India," he added.
According to travel portal Cleartrip, airfares are likely to remain higher in the short term and up to 15% higher till May compared to the year-ago period. Cleartrip CEO Ayyappan Rajagopal said, “Due to the ongoing supply chain and engine issues, there is a muted outlook on the capacity addition. This will lead to a high-fare environment for domestic travel. We’re running at 15% higher fares than last year in March. A similar trend is expected in April. Both are compared to last year,”
Earlier this month, Akasa Air Founder and CEO Vinay Dube said that airfares in India are incredibly affordable.
India and Russia commit to enhancing trade in national currencies, aiming for $100 billion bilateral trade by 2030.
Stock markets soar as RBI cuts interest rates, with Sensex rising 447 points amidst positive investor sentiment and revised growth forecasts.
AAP's Raghav Chadha calls for banning 10-minute delivery services, highlighting the harsh conditions faced by gig workers.
IndiGo flight cancellations: Follow LIVE updates from The Hindu as IndiGo's operations face issues with over 400 flights cancelled today.
DGCA grants IndiGo exemption from night-duty limits for pilots amid widespread flight cancellations and operational disruptions.
RBI to launch a two-month campaign in January 2026 to address pending grievances with the Ombudsman for improved customer service.
RBI plans ₹1 lakh crore OMO in December to boost liquidity amid upcoming tax payments, ensuring stability in the banking system.
IndiGo faces ongoing flight delays and cancellations due to technology issues, weather, and new crew rostering rules.
Stock markets experience volatility as investors await RBI's monetary policy amid foreign fund outflows and mixed global trends.
ED attaches assets worth ₹1,120 crore in Anil Ambani's Reliance Group case, totaling ₹10,000 crore amid money laundering probe.
Rupee rises 20 paise to 89.69 against the dollar as investors await RBI's monetary policy decision amidst market pressures.
Just nine Fugitive Economic Offenders (FEOs) owed Indian banks over ₹58,000 crore in principal and interest. To date, banks have recovered just over ₹19,000 crore — roughly 33% of the total dues.
Commerce Minister Piyush Goyal urges Indian businesses to seize opportunities in Russia's market, addressing talent shortages and trade demands.