Airlines earn ancillary revenues from freight, sale of food, drinks and gifts onboard, sale of travel insurance, hotel rooms and car rentals, through frequent flier programmes, and by trying to cross-sell other products like credit cards and medical insurance. Globally, airlines make 4-5 per cent of their revenues from ancillary sources.
Domestic air travel traffic has already seen a 23.87% rise over the same period in 2017.
With the Bangalore airport announcing stiff user developmental fee on domestic passengers, low-cost carriers -- JetLite, SpiceJet and Simplifly Deccan (formerly Air Deccan) -- have decided to drastically cut their flight schedules to the city and other new airports like Hyderabad.
With the Bangalore airport announcing stiff user developmental fee on domestic passengers, low-cost carriers JetLite, SpiceJet and Simplifly Deccan (formerly Air Deccan) have decided to drastically cut their flight schedules to the city and other new airports like Hyderabad.
Bangalore's new airport will be ready on March 7 to receive the first commercial test flights. It plans to start commercial operations on March 28 or 30, soon after Hyderabad's new airport does so on 16 March.
The first signs of the move will be evident when both the airlines announce their summer schedules in March after receiving the approval of the Directorate General of Civil Aviation. Deccan is likely to bring down and withdraw frequencies between Mumbai-Delhi in the schedule.
India's affluent middle class is rekindling its affair with long-distance train travel, as sharp jumps in domestic airline ticket prices push many former frequent fliers back to the railways.
Airfares may be in for an upswing. Thanks to Vijay Mallya-promoted Kingfisher Airlines acquiring 26 per cent stake in country's largest and first budget carrier Air Deccan.
According to the Directorate General of Civil Aviation's recent announcements, most airlines except Deccan, SpiceJet and Jetlite had claimed that they had adequate CAT III-compliant pilots. While Jet claimed it had more than 50 CAT III-compliant pilots, the airline could make no landing under CAT III conditions today.
After strong statements to the contrary, UB Group chairman Vijay Mallya on Tuesday said that he was considering the merger of Kingfisher Airlines with budget carrier Simplifly Deccan (earlier Air Deccan), in which the former bought a 26 per cent stake in June. Mallya said Kingfisher had asked consulting firm Accenture to study the integration of the two airlines, including the possibility of a merger.
A major cause for the growing number of freak accidents in the past two years is largely due to the sudden rise of flights in the airports. As a consequence, the number of vehicles in the tarmac too has increased tenfold.
The US Federal Aviation Administration has yet to certify Epic's planes. The company manufactures private business jets with single and twin engines, capable of carrying six to seven people.
Air Deccan, which was forced to sell 26 per cent to Kingfisher Airlines chairman Vijay Mallya's UB Holdings to keep its head above water a few months ago, is likely to break even before Kingfisher.
Commenting on the Air Deccan overtaking Indian Airlines for the number two slot, an Indian Airlines executive claimed that it was still maintaining the lead over Air Deccan.
Several states are identifying greenfield or unutilised projects for low-cost airport.
Charters, Udan flights choking Mumbai airport; MIAL may shift general aviation to Navi Mumbai once the airport is ready
Budget airlines are now set to explore the non-metro markets. With high growth prospects there, the carriers are pumping in funds and offering attractive packages to lure customers.
Kingfisher will be permitted to fly abroad this year, following its acquisition of Air Deccan. Since Air Deccan will be eligible for the international arena this August, Kingfisher too will enjoy this right.
National Aviation Company, the name of the proposed merged entity of Air India and Indian Airlines, plans to launch a value carrier to take on the challenge from JetLite and Air Deccan.
Jet's supremacy has now been challenged by a nimble and aggressive Kingfisher which, in just two years and following Mallya's buyout of Air Deccan, is commanding the same market share as Jet Airways and Jetlite.
He came to do one job but finds himself doing another. He came to work with a certain set of people and finds himself working with quite another. That's the piquant situation in which Ramki Sundaram, the 38-year-old officiating chief executive officer of SimpliFly Deccan finds himself today.
Earlier this year, Kingfisher Airlines had acquired 26 per cent stake in low-cost carrier Deccan Aviation for Rs 550 crore (Rs 5.5 billion). The company also made an open offer for another 20 per cent stake in Deccan Aviation. The open offer was oversubscribed. It received bids for 35 million equity shares against the issue size of 27 million shares.
Even if you assume a higher return fare of Rs 40,000, the yield will still be lower than the costs.
Passengers flying to West Asia can soon see fares going down by 10 to 30 per cent as Indian domestic operators such as Jet, its low-cost carrier (LCC) Jet Lite and Air Deccan are all set to fly to this market.
GR Gopinath, chairman of Air Deccan (in which Vijay Mallya has picked up 26 per cent), says the policy is blatantly tilted towards protecting just two carriers - Jet Airways and Air-India - to maintain their monopoly in the international skies.
Only 9% of passengers on such airlines are first-timers: CAPA survey.
Liquor baron Vijay Mallya, who acquired 26 per cent stake in the country's largest budget carrier, Air Deccan, for Rs 550 crore (Rs 5.5 billion) on May 31, is still in high spirits.
The Kingfisher-Air Deccan group will be the largest domestic airline with a fleet of 71 aircraft, including 41 Airbuses and 30 ATRs.
Key executives in Kingfisher Airlines and Air Deccan, which announced merger plans on Wednesday, said the merged company has plans to almost double its fleet from 80 to 158 aircraft over the next five to seven years and raise $250 million through equity infusion to finance its immediate expansion needs.
With monsoons round the corner, the airlines are busy announcing monsoon offers to woo passengers to travel during the rainy season, which is considered as the lean period for air travel.
European aeroplane maker Airbus Industrie hopes to sell 55 of its A380 planes, including 10 freighter aircraft, in India in 20 years.
Life of air passengers was different in the 1970s.
Airfares of most major airlines will go up by Rs 150 per sector from Friday, as the carriers plan to levy a traffic congestion surcharge.
Vijay Mallya-led UB Group is all set to meet the month-end deadline for payment of Rs 400 crore (Rs 4 billion) balance toward 26 per cent stake it had picked in Deccan Aviation, the promoter of low-cost carrier Air Deccan.
The scrip is moving northwards since last one month, as Deccan Aviation was considering proposals to infuse additional capital by way of private equity or stake sale.
Low fare air tickets and Air Deccan were synonymous for a while before the low cost bug bit the other airlines in India. Then the low cost carrier decided to not just offer low fares, but also went on to add destinations to the aviation map.
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