Bhubaneswar to Ayodhya costs like China? A CA explains the economics of Indian air travel
Short-haul routes offer better profit margins, Goel notes, so airlines lean on them for dependable revenue. That often means higher fares on popular but underserved routes like Bhubaneswar to Ayodhya.
- Nov 22, 2025,
- Updated Nov 22, 2025 8:32 AM IST
Why does a flight from Bhubaneswar to Ayodhya cost nearly as much as flying to China? According to chartered accountant Meenal Goel, it’s not a glitch — it’s a symptom of how India’s aviation economics are quietly rigged to make domestic skies pricier than global ones.
In a LinkedIn post, CA Meenal Goel breaks down why short-haul domestic flights often come with international-level price tags. “It’s not only demand and supply,” she writes. “Everyone knows basic economics. But this is something else.”
Goel points to a few key drivers behind the pricing paradox. For starters, domestic flights are hit with significantly higher fuel taxes, which inflate base fares quickly. Add to that the lack of frequency on some domestic sectors — fewer flights means airlines can charge more with little resistance.
Then there’s the business model. Short-haul routes offer better profit margins, Goel notes, so airlines lean on them for dependable revenue. That often means higher fares on popular but underserved routes like Bhubaneswar to Ayodhya.
“Domestic routes are being priced aggressively — not because of customer demand, but because they’re strategically profitable for airlines,” she explains.
In contrast, international sectors operate under entirely different dynamics. Fuel is cheaper, competition is tighter, and aircraft fly fuller. That incentivizes carriers to keep fares low just to fill seats. “Airlines would rather sell a long route at a lower fare than fly half-empty,” Goel writes.
The result: a jarring mismatch where domestic flights, sometimes just a few hundred kilometers long, cost as much or more than a multi-hour trip abroad.
“It’s how the economics of Indian aviation are structured,” she says — a structure that leaves many flyers paying premium prices just to fly within their own country.
Why does a flight from Bhubaneswar to Ayodhya cost nearly as much as flying to China? According to chartered accountant Meenal Goel, it’s not a glitch — it’s a symptom of how India’s aviation economics are quietly rigged to make domestic skies pricier than global ones.
In a LinkedIn post, CA Meenal Goel breaks down why short-haul domestic flights often come with international-level price tags. “It’s not only demand and supply,” she writes. “Everyone knows basic economics. But this is something else.”
Goel points to a few key drivers behind the pricing paradox. For starters, domestic flights are hit with significantly higher fuel taxes, which inflate base fares quickly. Add to that the lack of frequency on some domestic sectors — fewer flights means airlines can charge more with little resistance.
Then there’s the business model. Short-haul routes offer better profit margins, Goel notes, so airlines lean on them for dependable revenue. That often means higher fares on popular but underserved routes like Bhubaneswar to Ayodhya.
“Domestic routes are being priced aggressively — not because of customer demand, but because they’re strategically profitable for airlines,” she explains.
In contrast, international sectors operate under entirely different dynamics. Fuel is cheaper, competition is tighter, and aircraft fly fuller. That incentivizes carriers to keep fares low just to fill seats. “Airlines would rather sell a long route at a lower fare than fly half-empty,” Goel writes.
The result: a jarring mismatch where domestic flights, sometimes just a few hundred kilometers long, cost as much or more than a multi-hour trip abroad.
“It’s how the economics of Indian aviation are structured,” she says — a structure that leaves many flyers paying premium prices just to fly within their own country.