The primary drivers: Geopolitical disruptions inflating fuel and operational costs, and a surge in travel demand.
Giovanni Bisignani, CEO of International Air Transport Association, said Delhi and Mumbai airports were one of the worst contributors to the crisis, for their 207 per cent hike in charges. "There is no room for this nonsense in our future. When demand drops, suppliers cannot divide the same costs among fewer customers. The shape of everything must change," he declared.
The government has decided to restart scheduled international flight services from March 27 after a two years hiatus due to COVID-19, according to civil aviation ministry officials.
The Goods and Services Tax (GST) Council, scheduled to meet on June 22, could take a call on ending uncertainty on taxing foreign airlines and shippers as regards certain services, a senior official in the know told Business Standard. He said the Council was expected to decide on exempting the services in question from GST - aircraft lease rentals, maintenance, crew salaries, etc. These services are provided by foreign airlines to their Indian operations.
Let's take a look at some of the best airports in the world.
Profit will grow from $4.6 billion in 2009 to a forecast figure of $7.5 billion for 2013 with Asia Pacific and Middle East based airlines dominating the international passenger market.
Despite the bullishness associated with India, IATA has flagged taxation and fuel charges as key areas of concern for the aviation industry in the subcontinent, which is among the fastest growing in the world.
'I am not an aspiration-oriented politician.' 'This is the time to redefine politics.' 'Politics of power is not real politics.'
Airlines worldwide will continue to be in the 'red' because of the global meltdown and may take more than three years to recover, an international aviation group said warning that the epicentre of the crisis is now in Asia.
Tony Tyler, director general and chief executive officer of the International Air Transport Association, a global industry trade body, says the European Union-Emission Trading Scheme is a regional programme, which cannot be imposed on the rest of ther world.
Growth in world trade has also slowed, with declines in both European imports and exports standing out in second quarter.Business confidence has reversed the upward movement seen earlier in the year, declining for the past 4 months, the world airline body said.
The new greenfield airports should not charge different user development fee from domestic and international travelers and such charges should be regulated by a regulatory authority, global airlines body International Air Transport Association said on Tuesday.
The existing system where all airline passengers, barring VVIPs, have to undergo rigorous frisking, the IATA model proposes different levels of screening for passengers based on the level of risk associated with each one of them.
West Asian carriers are up against Air India and IndiGo in the battle for seats on lucrative international routes.
The government has recently decided to infuse equity worth Rs 800 crore (Rs 8 billion) in the first tranche into Air India, which has a paid-up equity base of just Rs 145 crore but has ordered aircraft worth Rs 40,000 crore (Rs 400 billion).
Global airlines' body International Air Transport Association on Tuesday asked the government to improve infrastructure and cut costs and 'excessive' taxation on aviation, saying it could be done by preparing a national aviation policy in India.
Quoting global financial indexes, IATA said global airlines, including those from Asia, showed an upward trend since late September with European airlines' shares experiencing the strongest rise, up 55 per cent.
IATA has said that airlines globally were 'prepared for the heightened level of alert' following the World Health Organization's decision to move to Phase 5 of its pandemic preparedness plan. The global airlines body and the WHO have prepared guidance materials for the airline staff, including cabin crew, maintenance workers, cleaners, passenger agents and cargo and baggage handlers.
The International Air Transport Association on Tuesday criticised the increase in airport development charges imposed by Mumbai and New Delhi, saying the burden on the already beleaguered global airline industry is a 'wake up call' for the Indian government.
The airlines worldwide may collectively lose a whopping $9 billion in 2009, a key aviation body said in its forecast, nearly doubling its March estimate of $4.7 billion loss, spelling a rapidly deteriorating revenue environment for the industry.
The government has approved the levy of development fee at Mumbai International Airport. An airport development fee of Rs 100 will be charged from outbound domestic passengers and Rs 600 from international passengers.
International Air Transport Association, which had suspended it from its Clearing House on Wednesday, said Kingfisher has been suspended from participating in the global airline body's Billing and Settlement Plan and Cargo Accounts Settlement System.
The forecast represents a 54 per cent fall compared to estimates put out by the trade body in March, and is 78 per cent lower than the $18-billion profit that the industry recorded in 2010.
In its report, the International Air Transport Association said that in 2009 intra-Asia-Pacific travellers numbered 647 million compared to 638 million who travelled within North America, including domestic markets.
Indian aviation has deep-rooted problems that need comprehensive and coordinated solutions, and high aviation turbine fuel pricing is certainly the most urgent.
Painting a gloomy picture, the International Air Transport Association (IATA) on Friday said the Indian aviation industry is estimated to suffer a collective loss of $1.5 billion in 2009, with Air India accounting for most of it.
A volcano named 'Eyjafjallajoekull' has spread havoc across Europe hitting businesses across the world.
Though the civil aviation sector accounts for only two per cent of the global carbon emission, the industry has conducted sufficient research on the usage of alternative fuels, from the prospective of both environment and cost.
The airline industry will suffer a $2.5bn net loss next year despite the big fall in the oil price, as carriers are overtaken by falling demand for air travel amid the deepening recession in several leading economies.
Domestic air traffic demand in India grew by around 14 per cent with the airlines enjoying an average load factor of almost 79 per cent in May compared to last year, even as the global traffic rose by 6.8 per cent.
IATA informed travel agents that they would have to remit the ticket sale proceeds to airlines every week.
Spring Travels chairman assures 'every thing will be fine next week'.
Airlines in Asia-Pacific expected to post losses worth $1.1 billion out of a total industry loss of $8.3 billion next year.
India, the second fastest-growing economy in the world, does not figure in the brighter side of the aviation picture, because Indian civil aviation industry has been hugely loss-making (a $1.75 billion loss in 2009-10) and showing no signs of consolidation.
According to the International Air Transport Association (IATA), which represents the majority of airlines operating in the $598 billion industry, the demand for LCCs is expected to rise 4.4 percent over the next year with the Asia-Pacific region growing faster at 6.4 percent.
Security can only be guaranteed by making a risk assessment of people before they are even board an aircraft, The Telegraph quoted Giovanni Bisignani, director general of the International Air Transport Association, as saying.
The airline industry globally is expected to bounce back to its pre-recession traffic levels in two or three months, International Air Transport Association (IATA) has announced.
The government on Tuesday asked all domestic airlines not to impose Rs 150 surcharge being levied for traffic congestion in airports.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances