Sometime in late 2009, Jet Airways’ then-chairman Naresh Goyal stood before reporters and voiced a concern that has echoed through India’s aviation industry for over a decade: unsustainable pricing. “Everyone is doing irrational pricing. Everyone is selling below prices. We don’t want to sell below cost,” he said. Goyal’s comments pointed to a troubling trend in Indian aviation—an industry where carriers, in a race to fill seats and gain market share, often undercut fares at the expense of long-term financial health.
Fast forward to today, and the landscape looks vastly different—for airlines, at least. With the collapse or merger of weaker players and the consolidation of the market, airlines are finally experiencing a period of sustained profitability. IndiGo dominates with over 60% domestic market share. Air India, now under the Tata Group, is undergoing a major transformation with ambitious fleet and service upgrades. Startups like Akasa Air and Fly91 are cautiously entering with fresh models and investor backing. On the surface, it appears that Indian aviation has entered a golden age.
But for flyers, this new era may not be quite so golden.
Airfares have steadily increased in recent years, driven by rising fuel costs, limited capacity during peak seasons, and more disciplined yield management by airlines. The days of ultra-cheap last-minute tickets or frequent sales seem to be fading. Flights to Tier 2 and Tier 3 cities—once promoted under the UDAN scheme to improve regional connectivity—are thinning out in some cases due to low viability, leading to fewer options and higher prices for travelers in smaller towns.
Further, despite promises of upgraded service and modern fleets, the passenger experience often remains inconsistent. Delays, baggage issues, shrinking legroom, and add-on fees for everything from seat selection to meals have become common frustrations for budget and full-service travelers alike.
In short, the newfound profitability of airlines has not yet translated into a proportionate improvement in affordability or comfort for the average flyer. While the industry celebrates record traffic numbers, better margins, and a flood of aircraft orders, passengers face rising costs and a service standard that still lags behind international expectations.
The Indian aviation sector may well be entering its most stable and commercially successful phase yet. But unless this success is shared with the people who fill the seats, the golden age will remain a story of the skies, not of the people flying through them.
