Operational expenses remain further strained by jet fuel prices, which constitute roughly 40 percent of total airline costs.
IndiGo Managing Director Rahul Bhatia has called on the government to reduce heavy aviation taxes and rationalise escalating airport fees. Speaking in an interview, Bhatia emphasized that reducing operational financial burdens on air carriers could significantly lower airfares, unlocking massive, untapped passenger demand across the country.
Bhatia pointed out a contradiction in official policy, noting that while air travel is publicly described as an essential utility, taxation frameworks continue treating it like elitist transport. Indian airlines absorb considerable operational cost surges caused by heavy levies and airport fees, eventually passing the remaining burden onto price-sensitive travelers.
Highlighting economic disparities, Bhatia revealed that while inflation grew twelve percent over three years, base airfares collected by airlines rose by just one to three percent. Conversely, airport User Development Fees surged up to 95 percent, while landing and parking charges escalated by 34 percent over the same period.
Operational expenses remain further strained by jet fuel prices, which constitute roughly 40 percent of total airline costs. High oil prices and extended flight paths triggered by regional conflict have exacerbated these challenges, alongside current Flight Duty Time Limitation guidelines that restrict cockpit productivity compared to international benchmarks.
Addressing market concentration concerns, Bhatia clarified that IndiGo deploys 34 percent of its capacity connecting 250 newly developed city pairs. Operating over 2,100 daily flights with a 400-aircraft fleet, the airline chief stressed that joint government-industry effort is essential for sustainable sector growth.