Harsh Goenka Defends Indian Airlines: Why 45 Years of Soaring Costs Haven’t Grounded Cheap Fares

Billionaire industrialist Harsh Goenka has sparked a national debate on airline pricing. The RPG Group Chairperson took to social media to defend the aviation sector’s economics. His comments follow mass IndiGo flight cancellations that disrupted travel and sent ticket prices soaring.

Goenka argued that Indian aviation has absorbed immense inflationary pressure for decades. He provided stark figures comparing current costs to those from 45 years ago. This perspective challenges public frustration over recent high airfares.

A Billionaire’s Breakdown of Aviation Economics

Harsh Goenka posted his analysis on platform X. He stated that Aviation Turbine Fuel (ATF) prices have multiplied by twenty times since the late 1970s. The cost of aircraft has similarly risen twentyfold over the same period.

Pilot salaries have seen the most dramatic increase, jumping fifty times. Despite these surges, Goenka claims airfares have effectively fallen when adjusted for inflation. This, he argues, is a testament to the sector’s efficiency and value.

He made a direct comparison to everyday transport. “We’ll pay ₹5,000 for a 100 km taxi ride but feel unhappy paying the same for 2,500 km by air,” Goenka wrote. His core message urges critics to consider the complex economics that keep India flying affordably.

The timing of his post is significant. It comes during an operational crisis for IndiGo, the country’s largest carrier. According to Reuters reporting, the cancellations have caused widespread passenger distress and spotlighted industry vulnerabilities.

Public Backlash and Passenger Frustration

Online reaction to Goenka’s view was sharply divided. Some users agreed that the public expects world-class service at unrealistic prices. They acknowledged that the democratization of air travel has not been met with adjusted public expectations.

However, many netizens countered with the immediate reality facing travelers. They highlighted the recent chaos where last-minute ticket prices reportedly skyrocketed to between ₹30,000 and ₹60,000 on some routes. Passengers with canceled cheap tickets were forced to pay these premium prices.

Critics also pointed out flaws in the taxi-versus-plane analogy. A key difference is scale; an aircraft’s cost is distributed across hundreds of passengers, while a taxi serves a single party. Others noted airlines now earn significant revenue from ancillary services like seat selection and baggage fees, a revenue stream that has grown exponentially.

The debate underscores a fragile tension in Indian aviation. While long-term economics may justify current fare levels, short-term shocks test passenger trust and highlight systemic risks.

Thought you’d like to know

What did Harsh Goenka say about airline costs?

He stated that over 45 years, fuel costs rose 20 times, aircraft costs 20 times, and pilot salaries 50 times. He argued that despite this, inflation-adjusted airfares have actually fallen for consumers.

Why are people angry about airline prices now?

Public frustration spiked after recent mass IndiGo cancellations. During the disruption, last-minute ticket prices on some routes surged to exorbitant levels, stranding passengers who had booked cheaper tickets months in advance.

Is comparing a taxi ride to a flight fair?

Critics say no, because the economics differ vastly. An airplane distributes its high operating costs across 150-500 passengers, achieving economies of scale that a single-taxi ride cannot match.

How do extra fees affect airline economics?

Airlines now earn billions annually from ancillary services like seat selection, baggage, and meals. This revenue stream has grown over 100% since 2010 and helps offset operational costs while keeping base fares competitive.

What is the current status of IndiGo cancellations?

As of recent reports, cancellations continue but at a reduced scale. Dozens of flights, particularly to and from major hubs like Chennai, were still being canceled daily over a week into the crisis.