Airfares double as month long Air India strike continues

More than a month and counting, that's how long the Air India pilot's strike has lasted this time. For an already ailing national carrier, the consequences are obviously serious. But even the common man is bearing the brunt with the strike pushing up air fares especially for flights to the Gulf, reports CNBC-TV18's Sunanda Jayaseelan.

No stakeholder is happy with the Air India strike lasting so long. The pilots are anxious as the management mulls sacking 300 of them, the government and the management are worried over Air India's mounting losses and even the passengers are unhappy.
With Air India forced to scale back operations, operating only 38 of the 43 services it normally flies globally, it has in turn pushed up air fares on most international destinations.
According to travel associations, the Mumbai-Dubai ticket which used to cost between Rs 12,000-15,000 now costs upto Rs 25,000. Similarly, a Mumbai-London flight which used to cost between Rs 33,000-40,000 earlier now costs between Rs 55,000-56,000; Mumbai-New York flight which used to cost between Rs 38,000-40,000 earlier now costs Rs 55,000-56,000.
"After Air India's cancellation, we can see that prices have gone up to more than double. This is the peak season and it has affected around 45-55% of the industry", says Bijji Eapen, national president of IATA.
The story doesn't end there. Another trade body, The Travel Agents Association of India or TAAI also points to increased service tax which has gone up from a fixed rate to a percentage of the total fare now and increased UDF as factors burning a deeper hole in the common man's wallet.
Iqbal Mulla, president of Travel Agents Association of India, Bangalore says, "Service tax has gone up from Rs 775 for international to 4.25% of the total fare. UDF which was Rs 300 earlier has gone upto Rs 900 now."
All this resulting in air fares nearly doubling over the last month, but industry insiders say, the ones benefitting the most from this situation are airlines like Etihad and Emirates as they have maximum flights and the best connectivity to the Gulf region compared to other international airlines. Air India could not be reached despite repeated attempts. Also watch the accompanying video.