Today’s ground reality — spiraling domestic air-fares, frequent flight delays and massive queues at airport check-in and security counters — have made airports angry and miserable places. And that’s for those still flying. The rest of India is as grounded as the gleaming aircraft that were acquired to take them to the skies. Today, as many as 165 aircraft are parked at India’s top 10 airports.

But this is not something new. There were 164 aircraft parked idle at 15 Indian airports on December 22, 2023, according to news reports. IndiGo (44) and SpiceJet (26) had the highest number of such aircraft, due to engine issues. The maximum number of stationary aircraft were at Delhi (64), Bengaluru (27), Mumbai (24) and Chennai (20). Other airports included Ahmedabad, Bhubaneswar, Cochin, Goa, Hyderabad, Jaipur, Juhu, Kolkata, Kannur, Nagpur and Raipur.

Cut to today. Most private airlines are on their last legs. The sector is caught in a perfect storm of spiraling fuel and operational costs, debt servicing, maintenance expenses and salary payouts, forcing airlines to pass the burden on to passengers.

But customers are finding flying too expensive, especially in a nation where affordability was meant to be aviation’s cornerstone. In the end game, an entire nation is nearly grounded. As aviation’s cup of woes runneth over, it has spilt into the handout bowls of those in the tourism and hospitality business. It’s a vicious circle — nearly savage in a land where till recently, the sky was being promised as being just a leap away.

No Implosions Like Kingfisher, Jet This Time

If Vijay Mallya’s Kingfisher Airlines fell trying to live up to his larger-than-life image, Jet Airways fell prey to its aggressive international ambitions. Both walked into a financial chasm from which there was no hope of exit or remission.

Mallya fled the country to find a new home in London. Jet Airways went to NCLT (National Company Law Tribunal) for restructuring and found new ownership in Cayman Islands-based Kalrock Capital Partners. That transaction too fell through, with the Supreme Court cracking down on the NCLT Appellate and ordering the liquidation of India’s once-favourite airline.

Unlike the above two, there were no self-inflicted implosions at Spicejet, GoAir, Vistara and (even) Indigo. While the former two fell to the brutal assault of hyper-competition, high payment outflows and strangled revenues, the latter duo has been battling it out. To fly out of the storm, while one has ratcheted up its M&A (mergers and acquisitions) strategy, the other has tweaked its refurbishment strategy.

What Customers See Vs What They Don't

Analyst Aditi Menon says, “Parked aircraft are burning holes in the airline’s finances. It’s like owning a luxury car you can’t drive, but you still pay for insurance, parking and maintenance.” 

Aviation consultant Kapil Rajan says: “The cost of flying a plane is high, but the cost of not flying one is higher.” His statement underscores the airlines’ predicament.

Researcher Shankar Iyer says: “India's aviation policy tried to democratise air travel. Instead, we are watching airlines collapse under the weight of operating costs, with most players gone.”

Grounded aircraft are not just giant metal hulks, but lost revenue that multiply with each passing day. Parked aircraft incur heavy storage, maintenance and insurance costs. And the longer they sit unused, the greater the expense.

Customers don’t get to see this. What they do see is what laptop and mobile phone screens show them.

Purush from Bengaluru says: “I searched for a flight from Bengaluru to Ranchi. Rs 21,000 was the cheapest option, with Rs 26,000 being the fare for a non-stop flight. Flights to Bangkok are at Rs 14,000, Dubai is Rs 13,000, Hong Kong is Rs 16,000, even London is just Rs 25,000. Are India’s domestic airlines ripping us off?”

Unwittingly, Asim Sirjhum, also from Bengaluru, answers: “Airlines are running on pretty thin margins. There’s hardly any money to be made on the flight ticket itself, that’s why you don’t see discounts. There are so many other associated costs, like fuel, salaries for crew and ground staff, airport fees, maintenance, debt servicing for the cost of the plane, etc.”

Clearly, airlines in India are facing a multi-pronged attack on their financial well-being. And that has left only two airlines truly flying in Indian skies.

And Then There Were Two

Indigo and the Tata-run Air India are the only major players still flying at scale. Other airlines, including SpiceJet, Go First and smaller operators, are facing operational challenges, leaving them grounded or barely functional. This duopoly has killed competition, further driving up ticket prices.

Despite the ongoing crisis, no rescue plan has been announced so far. Yes, there have been “looking into the matter” assurances, but no significant policy moves have been announced. Industry insiders say unless measures such as fuel tax cuts or airport fee waivers are brought in, the future is very bleak.

And this is all because a flight from Delhi to Guwahati costs more than a ticket from Delhi to Singapore. This paradoxical pricing has disillusioned many travellers and hit the tourism sector as well.

Domestic tourism — a vital cog in India’s economy — is crumbling under the weight of hefty flight prices. Tour operators report a massive drop in bookings for Kerala, Himachal Pradesh and Goa. “Families that used to travel every summer are rethinking their plans. We have seen a 40-per cent drop in inquiries for domestic tours,” says Saurabh Kapoor, co-founder of Holiday Bliss, a Manali-based travel agency.

This is the latest setback for the tourism and hospitality industries, which were just about recovering from the Covid pandemic. Hotels, resorts and travel agencies relying on seasonal occupancies are witnessing empty rooms and shrinking revenues. Cabs have no takers. Eateries are eater-less.

Dark Clouds Ahead

If the government’s vision of affordable flying is to be salvaged, airlines must be supported with industry-bailout measures like lower fuel taxes and subsidies on airport charges. Many insist that direct intervention is required quickly, before more airlines collapse and go the way of Kingfisher and Jet.

The dream of "flip-flops in the sky" has been rudely broken mid-flight. Rising ticket prices, grounded planes and high operational costs have made flying unaffordable for most. Tourism, hospitality and countless other ancillary industries are suffering. If a revival doesn’t happen, and quickly, air travel will again become a luxury reserved for the privileged.

In a cruel twist of fate, the "man-in-the-flip-flops" dream would be all but reversed. Alarmingly, that would be history repeating itself.

(The writer is a veteran journalist and communications specialist. Views are personal)