IndiGo CEO reacts to queries on exorbitant airfares: 'If there’s one ticket priced at Rs 40,000...'

Indigo CEO Pieter Elbers said the average price levels in aviation in the Indian market are extremely competitive.

IndiGo CEO Pieter Elbers recently opened up about the growing public criticism over rising airfares and addressed the exorbitant airfares that during festive seasons and especially during the Mahakumbh. He called the pricing an occasional outcome of demand-based algorithms rather than systemic exploitation.

“If there’s one ticket priced at Rs 40,000 on a route, that’s occasional. Sometimes these systems push up prices,” he told CNBC TV18, adding that the real discussion should focus on how the airline responded to the massive demand by "doubled the number of flights" to Prayagraj.

"Let's look what we have collectively achieved in making sure that all these people could travel there. I think we operated close to a thousand flights. There are 230 seats per flight. So that's pretty much back and forth. So that's, five lakh passengers," Elbers said.

He also cautioned that demanding low ticket prices without taking into account the operational costs could jeopardise the sustainability of airlines. Speaking in response to reports that the Centre has set up a dedicated ‘Air Sewa’ cell to address passenger complaints about high airfares, he said, "To have a body like that is a good thing. Having said that, looking at the Indian market, it's one of the most, if not the most competitive markets in the world. The average price levels are extremely competitive."

“There must be a correlation between the cost of doing business and the price of airfares. Otherwise, you’ll be out of business,” the IndiGo CEO said.

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