The Economics of Flying: Checkpoint 1

Quick checkpoint - five questions on India's aviation boom, IndiGo, airline failures, Air India and jet fuel.

Quick checkpoint - five questions on India’s aviation boom, IndiGo, airline failures, Air India and jet fuel.

Question 1 of 5 What helped open up flying to many more Indians from the 2000s?

Higher fares Low-cost carriers and private airlines Fewer airports Banning trains

Private airlines and low-cost carriers brought fares within reach of many more people.

Question 2 of 5 Why does IndiGo use mostly one aircraft family?

It is required by law It simplifies maintenance, spare parts and pilot training, lowering costs It has no other choice To offer more luxury

A single fleet type is a key low-cost carrier strategy.

Question 3 of 5 What did Go First blame for its 2023 collapse?

Too many passengers Faulty engines that grounded much of its fleet Low fuel prices Government ownership

Engine problems grounded about half its fleet, and it filed for insolvency.

Question 4 of 5 Who bought Air India from the government in 2021?

IndiGo Tata Sons Boeing A foreign airline

Air India returned to the group whose founder started it in 1932.

Question 5 of 5 Why is jet fuel especially costly for Indian airlines?

It is subsidised Oil import prices, the rupee and state VAT, with fuel outside GST Airlines don't use much fuel It is included in GST at zero rate

Fuel taxes can't be offset through GST credits, adding to costs.

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