In the recent some time, Airlines have shown the massive increase in the airfare and the situation worsened with the grounding of Boeing 737 Max planes. As reported by the Fitch Rating there has been a steep increase in the price of air tickets and with the increase in the travel demand in the early this year the condition is no better. Airlines said that their business is highly impacted as they had to lower down the profit cut and experience less traffic. Spice Jet is suspending the operations of its 737 Max planes and IndiGo is curtailing the flights. All of this adds up to decrease in the traffic of passengers. Let us see some more concern raised by airlines and the implications of the fare increase: 1. Low cost Carrier SpiceJet, Singapore’s SilkAir are some of the airlines that have grounded 737 MAX planes following a massive crash of aircraft in Ethiopia killing more than 150 people. 2. The Indian Aviation has seen a huge increase in the air fare that got worsened with suspension of 737 MAX. 3. According to the survey of Revenue Passenger Kilometer, the passenger’s traffic has decreased by 12.4%. 4. According to a report the Jet Airways and Jetlite has so far been the second largest share of domestic market up until january 2019 and now has been losing its market steadily as they had to reduce their operation fleet massively. 5. Also there has been 2% increase in the flight cancellation due to unavailability of pilots.
1. Other Implications
1. Airlines that do not rely on 737 MAX planes are getting benefited from the whole scenario and thus increasing the prices of air tickets up and above.
2. The Aviation market of Asia is also under a huge loss since the passengers and ticket fare is the most important aspect of market growth.
Due to this whole scenario the airlines are forced to cut down the operation crew and thus a lot of pilots and crew members are losing their jobs which has created a great frustration and annoyance.
According to a report around 23,000 members didn’t get salary for about a month which in itself was a huge pain for the workers. It was predicted that around 20,000 employees were estimated to have lost the job and thus the aviation takes no responsibility of their future. This is really saddening and the aftermath of 737 MAX has really impacted the businesses, life and other related areas.