Most travel agents in India have refused to levy the transaction fees of Rs 350-10,000 on air passengers.
The terminal and airside development of as many as nine of the 16 non-metro airports, supposed to be completed by next month, has been delayed till next year. This included construction and expansion of terminal buildings, runways and taxiways, among other things.
The price has been cut 39 per cent to Rs 555.85 from Rs 908 per share originally after its request to redeem the bonds ahead of maturity was rejected by the Reserve Bank of India.
Aviation industry experts expect the ATF prices to fall by 16 per cent in November, compared with the current month. This, they say, translates into bridging of nearly half the gap between the airlines' operational costs and total revenues.
The combine has a fleet of 189 aircraft which includes A-320s, A-330s, Boeing-737s, Boeing-747s and turbo props. Industry experts said this would mean the withdrawal of around 75 flights a day, or around 8 per cent of the combine's daily domestic flights.
Plan for interim international terminal cancelled; land trouble delays domestic terminal.
That is because Mumbai, which has no scope for further expansion, has not allowed any additional aircraft movements this winter schedule allowing only 32 flight movements per peak hour.
Falling equity markets have trapped major private equity investors such as Warburg Pincus, Blackstone Group, Carlyle, Apax Partners, Chrys Capital and Citigroup.
The rupee has touched a five-year high, crossing the Rs 47 mark. The average value of the currency against the dollar during September was almost 14 per cent lower than in April. More than a third of an airline's costs are dollar denominated. Major heads of expenditure include aircraft ownership, maintenance and spares costs. Also included are international training and a certain chunk of sales and distribution costs.
Indian companies that raised large sums of foreign funds to finance growth and acquisition plans during the bull run in the stock markets are in a Catch 22 situation. The conversion price of their foreign currency convertible bonds is several times higher than their current market prices.
The downturn in the aviation sector has led to significantly lower demand for pilots. This has adversely affected the businesses of more than 50 flying training schools, which had come up during the last two years on the back of an unprecedented growth story. Admissions to these institutes have now hit an all-time low.
Four days after it was opened, the third runway at the Delhi airport was closed today after some crucial equipment stopped functioning. Operations had already got restricted to daytime after the runway lights failed over the weekend, rendering it unusable at night.
After being hit by a fuel price hike and capacity cut, it may be happy times again for the airline industry this festive season. While Kingfisher is looking at adding at least 15 new flights in the winter season, competitors Jet Airways, SpiceJet, IndiGo and Paramount are adding over 30 new flights together (arrivals and departures); they will do this through a combination of better utilisation of existing aircraft and inducting new fleet.
Thomson holds 10 per cent stake in Videocon Industries through global depository receipts listed on the Luxembourg Stock Exchange. Thomson had acquired 13.5 per cent in Videocon in 2005 for Rs 1,250 crore (Rs 12.5 billion) of which 10 per cent was locked in for three years.
The Rs 6,700-crore (Rs 67 billion) deal likely in a fortnight. News of the likely transaction first broke a few weeks ago. Investment banking sources now suggest that the deal will be announced in a fortnight, if not earlier. A Tata Teleservices spokesperson refused to comment, saying: "As a policy in the Tata group, we do not comment on speculative queries."
The government is believed to be pushing the institution to rope in a strategic partner to strengthen its balance sheet. The process is expected to start in the next quarter, starting October.
The Securities and Exchange Board of India has approved The Walt Disney Company's deal to increase stake in Ronnie Screwvala-promoted UTV Software Communications beyond 15 per cent, six months after the deal was initially signed. Sebi, the market regulator, has also okayed the US-based company to launch an open offer.
ONGC Videsh Ltd, a wholly-owned subsidiary of Oil and Natural Gas Corporation, has put in a bid to buy stake in a discovered oil block in Angola, after a consortium of two Chinese companies has already reported to have bid $1.5 billion last month, confirmed a top official of OVL on condition of anonymity.
The downturn in the aviation industry has not discouraged real estate companies, flying academies and large industrial houses from India eyeing private airport development.
To raise funds for Imperial buy, create 'acquisition currency'.
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