Go First Crisis: Aviation Ministry Analysing Airline's Impact On Rising Airfare

Go First Airline, which is undergoing an insolvency resolution process, has not been flying since May 3 impacting airfare on most of its routes.

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Amid a surge in airfares on certain routes, the civil aviation ministry is doing an analysis of routes that have been affected by the suspension of flights by Go First. Civil Aviation Minister Jyotiraditya Scindia on Thursday said there is an unusual situation due to the Go First crisis and there has been an excess demand on the routes the airline had been operating. Go First, which is undergoing an insolvency resolution process, has not been flying since May 3. "We have given additional routes to other airlines but it is a piquant situation... I doubt any other sector has seen the vicissitudes that civil aviation has seen in the last three years," he said while speaking at a conclave.

"... I have put together a group in the last couple of days and we are doing an analysis of a lot of those routes... That have been affected by this unusual event (Go First crisis). One is Srinagar, Pune, slightly Ahmedabad, we are doing a full analysis on that... We will speak to airlines to make sure fares are within a certain level... It is an issue created by an unforeseen demand-supply imbalance," he said in response to a query related to high airfares on certain routes.

He also said that civil aviation is a deregulated sector. On lessors seeking to take back planes leased to Go First and legal proceedings in this regard, Scindia said, "We are doing the work from the regulatory side in terms of putting together the international framework to make sure that lessors are also well protected".

While speaking about the growth potential of the country's civil aviation sector, the minister also said that during the festive season, daily domestic air passenger traffic could touch 5 lakh. On whether he is in the race for the chief minister post in Madhya Pradesh, which will be going for polls later this year, Scindia said his race is not for a chair, post or position.

"I am ambitious for my people, development, progress... My pursuit is not politics," he emphasised.