As India battles the COVID-19 pandemic, almost every industry is struggling to stay afloat. The Indian aviation sector has been hit badly as the load factor has fallen drastically due to the restrictions imposed. Indian low-cost carriers SpiceJet and Go First have entered into an informal agreement to combine flights in case of lower passenger load factor on their flight. This agreement has helped both of these airlines to cut costs by 70%, and around 20,000 people have benefited from this contract.
How it works is if a SpiceJet flight is scheduled to fly on a BLR-BOM route and has only 46 passengers, then those passengers can be shifted to Go First’s flight with more than 46 passengers, and SpiceJet will pay Go First the government prescribed rate. Both the airlines were losing almost Rs.2 crore daily, and this agreement has helped these airlines save Rs.20 lakh daily. SpiceJet has had this IROP agreement with other Indian airlines as well to accommodate passengers in case of any technical glitch or emergency.
This not only helps the airline save money on fuel, but it also helps them reduce operational costs like crew costs, slot charges, handling charges, etc. This move was necessary as both the airlines have been in desperate need to make a profit or at least reduce their losses. Now how long this IROP agreement stays is still up in the air. The industry is expected to pick back up as the number of COVID-19 cases has been reducing, and many Indian states are in the process of easing down of lockdown restrictions.
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Source: https://aeronewsx.com/spicejet-and-go-first-to-combine-flights/?utm_source=rss&utm_medium=rss&utm_campaign=spicejet-and-go-first-to-combine-flights
