Never suggested using planes for short distances: Jayant Sinha clarifies statement on autofare cheaper than airfare

NEW DELHI: Union Minister Jayant Sinha on Tuesday clarified that he never suggested using planes for shorter distance. 

"So on a per km basis our air fare is among lowest in the world. I am not implying you use planes for short distances, that's not the point of the comparison, it's just to be able to demonstrate how affordable our air fares are," said the Minister of State for Civil Aviation.

On Monday, Sinha had said that at Rs 4 per km, airfare is cheaper that auto-rickshaw fare.

“Today airfare is less than that of an auto-rickshaw,” said Sinha.

“You'll ask how is that possible? When two people take an auto-rickshaw they pay fare of Rs 10 which means they're charged Rs 5/km but when you go by air you are charged Rs 4/km,” added the Minister of State for Civil Aviation.

Sinha's comment comes in the backdrop of Indian airlines posting massive losses.

According to a study by CAPA India, Indian airlines are expected to post combined losses of up to $1.9 billion this financial year, led by full-service carriers like Air India and Jet Airways driven by rising costs and low air fares.

Ticket prices have not risen to compensate for higher costs, and CAPA said with the exception of Interglobe Aviation Ltd`s IndiGo, none of the airlines have strong enough balance sheets to comfortably withstand higher costs and lower yields.

With agency inputs