Airlines fall in line, shut bookings for now; SpiceJet, GoAir to open from May 16

The airlines had earlier allowed bookings for travel from April 15, hoping that the first lockdown - from March 25 to April 14 - will be lifted. But the government, on the face of increasing cases of COVID-19 infections, extended the lockdown to May 3. Airlines though kept counters open.

Customers who had booked hoping to travel from April 15 were unhappy about the flight cancellation, and airlines declining to refund tickets and instead, offering credit shells.

The complaints prompted the ministry to swing into action. On April 18, Civil Aviation Minister Hardeep Singh Puri said on Twitter: "Airlines are advised to open their bookings only after a decision in this regard has been taken by the Government."

But airlines continued to keep the booking lines open. Vistara and AirAsia India said they haven't received any government notice asking them to stop bookings. "Once there is clarity on steps to be taken beyond that date, we will comply accordingly," the spokesperson added.

The next day, on April 19, the DGCA stepped in. The regulator pointed out that its earlier circulars, informing of suspension of flights during the lockdown period, hadn't given any directions allowing airlines to restart flights, and thus accept bookings.

Adding that no decision has yet been taken on resuming flights operations, the DGCA ask the carriers to "refrain from booking tickets...further the airlines may note that they will be given sufficient notice and time for restarting of operations."

By the morning of April 20, most of the airlines had fallen in line.

Fares

"Looking at the fares, it may feel as if airlines are going for the kill," said a senior executive from the industry.

A Mumbai-Delhi one-way ticket for June 01 on IndiGo, costs Rs 2,500. The dare is exactly the same on SpiceJet for travel on May 16. On GoAir, fares are similar, and for some dates even lower.

In March, the average one-way fare was about Rs 4,600.

"It will be difficult for some of the airlines to sustain on these fares," added another executive from a low-cost carrier.

The airlines will be further strained if the government directs them to maintain social distancing in flights, once the lockdown is lifted and airlines resume operations.

That would mean that airlines will have to leave the middle seat vacant, losing one-third of their seats. While fewer seats would have pushed up the fares, that may not happen in the current circumstances. Despite airlines best attempts, customers may take some time before they are comfortable to take to the skies again.

"Most of the demand for tickets right now is from passengers who are stranded in different parts of the country because of the lockdown and want to get back home. Long-term bookings are nearly nil," said an airline executive.