Airlines are now pushing up fares and hopes to improve margins over the next three months to make up for the poor September quarter, even if it leads to a slight fall in their passenger load factor.
SpiceJet, the low-cost air carrier, on Thursday got its shareholders' approval to issue additional equity shares to promoter Kalanithi Maran, who in turn will infuse Rs 130 crore (Rs 1.3 billion) into the airline. Maran's equity holding would go up from 38 per cent to 43 per cent of the company's shares.
Fuel accounts for around 40 per cent of costs for domestic airlines.
No-frills airline SpiceJet on Wednesday launched yet another round of limited-period low fare offers to fill its seats for travel between July and September when air travel generally slumps.
India remained the world's fastest growing domestic aviation market with 51 straight months of doubled-digit traffic growth but the woes of passengers as well as carriers manifested in myriad forms.
An executive of a private airline said even though volume picked up, it will be difficult for airlines to make money as fares have remained low even during festive season.
Agra, Shimla, Nanded, Kanpur and Jamshedpur are among the many airports that would see connectivity under Udan.
To fill seats, airlines have resorted to fare wars following the adverse impact on ticket sales, reports Arindam Majumder.
Competition is intense and with the blurring of differences in service proposition and fares, it becomes imperative that airlines use their on-time performance for messaging and brand building.
He said the ministry was looking forward to suggestions from the state governments and discussions were underway with all the stakeholders to arrive at a policy which would bring back growth in the aviation sector.
Unveiling its plans to expand fleet size to 50 aircraft by year-end, low-cost airline SpiceJet on Wednesday said it will start flights to six new foreign destinations, including Afghanistan, China and Hong Kong, by October-end.
Three passengers who travelled on Delhi-Jammu flight on Tuesday, six passengers who were on Bengaluru-Coimbatore flight on Wednesday, two passengers who were on Delhi-Coimbatore flight on Wednesday and one passenger who was on Bengaluru-Madurai flight on Wednesday tested positive for the novel coronavirus, the airline said.
Competition promotes innovation in the business model, creating sustainable value.
Civil aviation ministry to monitor flash sales and discount schemes: Source
SpiceJet is in talks with aircraft makers for a jet deal.
According to the new billing system, travel agents will have to make payment to airlines within seven days.
After doing so to Kingfisher Airlines, the Directorate General of Civil Aviation has issued showcause notices to carriers IndiGo and SpiceJet for having allegedly cancelled flights without informing passengers.
A Srinagar-bound SpiceJet aircraft with 186 passengers on board landed under emergency conditions in New Delhi on Monday after Air Traffic Control learnt that it had suffered a tyre burst while taking off and asked it to return
A Srinagar-bound SpiceJet aircraft with 186 passengers on board landed under emergency conditions in New Delhi on Monday after Air Traffic Control learnt that it had suffered a tyre burst while taking off and asked it to return
In the absence of a chief executive officer, Delhi-based low-cost carrier SpiceJet has decided to set up a three-member management committee to take all company decisions, especially in the light of the recently-signed agreement with US-based investor Wilbur Ross.
Domestic airlines may increase foreign flight frequencies
Domestic airlines on Thursday welcomed the 12.5 per cent cut in jet fuel prices, terming it as a much-needed relief but ruled out any immediate reduction in fares.
The new airline has begun recruiting pilots and is close to confirming its top executives, including a Singapore Airlines executive as its chief executive officer.
The offer is applicable to airline's all domestic destinations, including Mumbai, Delhi, Kolkata and Chennai, a company official said.
There are rumours that Ajay Singh who previously headed SpiceJet may get an investor to bail out the airline of dire consequences.
A Delhi-bound SpiceJet plane hit a stray buffalo on the runway while rolling for take-off from Surat airport late Thursday night, providing anxious moments to the 146 people on board.
Rising crude oil prices and muted passenger traffic in the July-September quarter (second quarter, or Q2) of 2023-24 (FY24) have raised concerns about the profitability of listed aviation players. These two concerns have caused the stock of InterGlobe Aviation (IndiGo), the largest player in the sector, to slip by 11 per cent since its highs at the end of July. Nuvama Research expects yields to cool down in the near term due to seasonality, rising crude oil prices, and higher capacity.
With crude oil price crossing $100 per barrel mark, the airlines have begun to pass some of the cost on to the consumer to meet the increased air turbine fuel expenses, and asked the government to take steps to reduce the cost of aviation fuel.
Typically, the airline sells 40,000 seats a day.
Only a 5-year-old airline with 20 planes is allowed to fly abroad.
US-based co-working operator WeWork, Lowe's India, SpiceJet and startups like CureFit stepped in to offer employment to the distressed workers at Jet.
The islands that would be connected through seaplanes are Campbell Bay, Car Nicobar, Havelock, Hutbay, Neil, Long Island and Diglipur, reports Arindam Majumder.
IndiGo's size should be compared with global carriers, and not other domestic airlines, chief executive officer Pieter Elbers said on Tuesday, adding that such benchmarking will help India transform its airports into aviation hubs. Elbers flagged the tendency to scrutinise domestic competition, assess fares on domestic routes, and determine if they are high. "But if we want to build some hubs, we should have a broader look," he said during a panel discussion at a convention organised by All India Management Association (AIMA).
High airport charges and steep operating cost hurt profitability of Indian airlines in 2013.
The Indian aviation industry, which accounts for 2 per cent of the global aviation industry, suffered losses of Rs 10,000 crore (Rs 100 billion) in 2008-09. The industry is, however, now looking up, feels SpiceJet chief executive officer Sanjay Agarwal.
The total amount of penal interests charged from the defaulting parties stood at about Rs 115 crore.
Debt laden SpiceJet has to pay Rs 1,230 crore toward dues.
The American investment bank also upgraded the stocks of both these companies to 'buy' from 'underperform', saying improving industry trends such as signs of ticket price hikes and reduced capacity will improve profitability.
Both Vistara and AirAsia India, along with their partners, are quietly putting together an aggressive plan to become a formidable force in the skies. At the core of this new push is their plan to go international this financial year.
Eyeing potential business opportunity, Boeing Corporation is planning to approach the proposed Tata-Singapore Airlines.
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