The top airline boss agreed to many things in Wings India Airshow in Hyderabad last month: taxes must be reduced and airport capacity must increase. One thing they cannot master: whether unfair competition keeps a low-artificially low rate on what has become a brutally competitive market.

Sunil Bhaskaran, AirAsia Indian Chief Executive Officer, upfront. Indian flights suffer from “irresponsible competitions” which make low rates despite high taxes and fuel prices, he said. Bhaskaran does not choose who he means. But the only operator that is able to make the entire dancing market in a tone is indigo, the biggest airline in India.

Indigo, operated by InterGlobe Aviation Ltd., controls more than 50% of the domestic market. The other nine other airlines compete for the rest, giving the power of low-cost carrier command that developed rapidly above the tariff. Competition is set to heat up further, with two other airlines that prepare to launch services later this year on the market where tickets are often sold under operational costs – situations that have caused the death of several high profile operators.

Indigo, however, is not disturbed by criticism and calls from small rivals Spicejet Ltd. For airlines to work together to increase tariffs, even if it produces a little detaining in order.

“Sorry, but this is not about working together to raise rates,” Ronojoy Dutta, CEO of Indigo, said in response to the advice that other airlines could increase the tariff if Indigo took the lead. “Look, in the end the Indigo strategy is to provide superior customer service and get a non-proportional part of income,” said Dutta, to laugh and applaud.

The indigo oath to stay “very, very competitive” in the future is bad news for everyone, including local Affiliates Singapore Airlines Ltd., IPO Bound Go First-Run Air India Ltd. Cut-throat prices have forced many including Kingfisher Airlines Ltd. and Jet Airways India Ltd. To fold without bases or go through the court bankruptcy process.

Indigo, the world’s largest customer for Jet A320neo best sales Airbus SE, is a rare exception, managed to make money while keeping the lid at a cost. It also signed a long-term maintenance contract and engineering negotiated as part of a large plane order.

“It must be done with their thin size. Indigo is a giant income machine,” said Mark Martin, founder of Martin Consulting LLC based in Dubai, who suggested the aviation industry. “Naive and ignorance can destroy and bring havoc in the system” and this is not the right time for Indigo to display Bravado, he said. “At some point, Indigo must increase tariffs or balance their rates to some extent.”

Sydney based flight center for flights said last year that he had “run out of words to describe the state of Indian airlines,” debating the industry “standing on the edge of the cliff.” Assuming oil at $ 70 per barrel and 75-dollar rupee exchange rate, Capa estimates, Indian carrier can lose around $ 8 billion in two years to March 2022.

Brent oil is now traded in more than $ 100 per barrel and Indian Rupee fell to a record low of 76.9812 per dollar last month.

There are several signs of rising rates since the last moment, but it is more related to soaring oil prices due to war in Ukraine. For April, tickets from New Delhi to Mumbai – one of the busiest domestic routes in the world – sold at 42% higher than before the war, according to Yatra.com online travel agent.

At the same conference, Spicejet Chairman of Ajay Singh, which was credited by reversing the operator which almost failed after running out of cash, the word higher oil prices presented “extraordinary” opportunities for airlines to get more income. But he also said he got a message from customers who complained about the spicejet rate increase “too high.”

The problem is that passengers are sensitive to prices, which are now familiar with famous cheap rates, and the mindset must change, said Singh.

“We must be very aware of the fact that the aviation sector has suffered a big loss because this is a chronic ill industry, and I do not know what Vinay Dube is trying to order more airplanes and create new airlines at this time,” Singh said, referring to In the upcoming Head of the Supreme Carrier executive, which was supported by Rakesh Jhunjhunwala billionaire.

The price of aviation fuel in India has been “eternal” high and moves higher, which will compress further margins, limit cash flows that must be used to repay the debt or coercion issued, which can look at the travel request, according to Robert Mann, head of the company A flight consultant based in New York RW Mann & Co.

“The loss of the request will also be the imperile operator with the most unavailable liquidity and some will fail,” Mann said. “This will be an interesting decade in Indian flights.”