Stressful work schedules and limited growth opportunities are taking a toll on a large number of senior professionals in airlines.
IndiGo had last week offloaded 70 passengers from a Raipur -bound flight from Hyderabad alleging "unruly behaviour".
That would reverse the growth trend of around 11 per cent per annum, which the industry has logged over the past ten years, making it one of the most adversely-affected sectors of the economy.
It projects that airlines will make a net profit of $10.6 billion.
In the previous decade, the government, with Praful Patel as the civil aviation minister, saw the introduction of an irrational 5/20 policy.
Jalan-Kalrock Consortium, the winning bidder for bankrupt Jet Airways, on Monday said aviation regulator DGCA has renewed the airline's air operator certificate. Cash-strapped Jet Airways stopped flying from April 17, 2019. The Air Operator Certificate (AOC) was re-issued on May 20, 2022. However, since the airline did not start operations, AOC expired on May 19, 2023.
'The quality of a leader should be such that even if the leader is not there, the institution carries on.'
'It will be like this: If you use the window seat in the first row, next will be the aisle in the second row, to maintain social distancing.' 'So, two-thirds of the aircraft is not going to be used.'
The company said it has suspended the staffers and that it was part of the operation to unearth this crime.
Airlines in Asia-Pacific expected to post losses worth $1.1 billion out of a total industry loss of $8.3 billion next year.
In a dramatic turn of events in May 2019, an Emirates aircraft en-route to Dubai was asked to stop while it was taxiing for a take off in Mumbai. The pilot was given no reason and ordered to immediately return to the parking bay. As the aircraft returned to the terminal, two passengers from the first class - Naresh Goyal and his wife Anita - were offloaded by the immigration authorities, who said the duo cannot leave the country. Goyal, founder of Jet Airways, was stunned. The man, who ruled the aviation sector for two and a half decades with an iron hand, did not expect to be offloaded in this fashion.
Airfares in the country are set to rise, with IndiGo on Thursday introducing a fuel charge of up to Rs 1,000 based on a flight's distance, in response to the significant rise in aviation turbine fuel (ATF) prices in the last three months. The Indian aviation sector experiences its peak travel season between October and December. The inclusion of a fuel charge component in airfares is anticipated to have a sizable impact on IndiGo's passengers, according to experts.
Rising fuel costs have grounded the high-flying ambitions of India's carriers and have sent their stocks into a tailspin.
According to the package, the dues will be cleared in six monthly instalments by March 2009. Current ATF purchases will get 90 days' credit, supported by bank guarantees. Also, jet fuel price revisions will henceforth happen every fortnight. Praful Patel on Thursday admitted in the Lok Sabha that it may take another two months to make the recently-opened third runway at the Delhi airport fully operational.
The Competition Commission of India (CCI) is studying whether a particular airline has a dominant market share on various routes or city pairs which might lead to anti-competitive practices.
Chief executive officers (CEOs) across sectors have expressed intentions to expand capacities, expecting the government's target to invest a record Rs 11.11 trillion on infrastructure development will act as a catalyst for a jump in consumer demand. "With the government planning a capex of Rs 11.11 trillion, private sector investment will come in a big way. Companies will be preparing for it right from today," H M Bangur, chairman of Shree Cement, told Business Standard. For the past few years, the investment scene in India has been dominated by government capital expenditures; private investments in the manufacturing sector have remained muted.
The issue had come up during a presentation by the Civil Aviation Ministry.
The first to take off will be Air Pegasus, promoted by Bengaluru-based ground-handling firm Deccor Aviation.
The process of getting a new promoter on board is likely to take another two to three months and once that happens, the banks would offload their stakes.
Aviation Working Group (AWG), a global aviation leasing body comprising major planemakers and lessors, on Monday further downgraded India as lessors have not been able to repossess their planes from Go First more than four months after the airline filed for insolvency. The leasing cost stands as a prominent expense for Indian airlines. With AWG's downgrade, it is likely that lessors will increase the aircraft leasing rates for Indian carriers.
Some years ago, Rakesh Gangwal reportedly said his relationship with Rahul Bhatia evolved in an amazing friendship, which he termed 'blind trust'. The question is whether that is under scrutiny now.
IndiGo CEO Ronojoy Dutta announced on Thursday that the airline was instituting pay cuts for senior employees and he would himself take the highest cut of 25 per cent amid the novel coronavirus pandemic that has hit the aviation industry hard.
Shortage of commanders may be forcing Kingfisher Airlines asking its pilots to fly more but the airline says despite some cockpit crew leaving the organisation, it still has the "adequate number".
Malaysian state investor Khazanah Nasional, which owns nearly 70 per cent of the airline, said it had submitted a proposal to the Malaysia Airlines to delist the company. Under the plan, minority shareholders will be bought out.
Some airlines, says Anjuli Bhargava, are convinced there's a conspiracy to malign them.
While global majors like JetBlue, RyanAir, Southwest sell almost 90 per cent of their tickets through their own websites or apps, airlines in India have a minuscule share of around 25 per cent through direct channel booking.
The Nicaragua bound charter Legend Airlines Airbus A340 flight, that was grounded at Vatry airport in France for four days on suspicion of human trafficking, arrived in Mumbai on Tuesday, December 26, 2023.
Airline managements are divided on the likely impact of the settlement of the Jet Airways imbroglio.
Mallya's barrister, Clare Montgomery, reiterated the central defence that there had been no misrepresentation or fraud on the part of her client and that Kingfisher Airlines was the victim of economic misfortune alongside other airlines.
As a model of transport, the A380 strikes a parallel -- a shared fragility -- with giant container ships, observes Shyam G Menon.
"The decision came after the cabin crew reported disruptive conduct on board, specifically a dispute between a husband and wife," sources told ANI.
Domestic air passenger traffic touched 1.25 crore in January this year, an increase of 96 per cent compared to the year-ago period, according to rating agency Icra. However, it said the traffic remained around 2 per cent lower compared to the pre-Covid levels -- January 2020. The traffic stood at 64 lakh in January last year. Icra is maintaining a negative outlook on the Indian aviation industry, reflecting the view that the financial performance of Indian airlines is likely to remain under pressure in the near term, even though the recovery in domestic passenger traffic has been healthy.
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 ministry has also asked that the cap of such borrowings is to be set at $500 million (Rs 3,450 crore) for a single company and $1 billion (Rs 6,900 crore) for the entire sector.
Besides urging the Centre for extension of loan moratorium, the hotel and travel industries have also demanded deferment of GST and advance tax payments and waiver of fees for all forthcoming licences and permits.
Mauritius on Monday said it would soon adopt the open sky policy and allow private airlines from India to use its air space.
Consumption-related stocks, such as hotels, and quick service restaurants (QSRs), have been hitting the ball out of the park ahead. On the other hand, the Miss World Pageant scheduled for later this year in New Delhi, too, could provide some tailwind to these stocks, especially hotels and aviation. However, analysts suggest investors put their best foot forward and buy these counters only on a decline given the recent rally and economic headwinds.
IndiGo, Jet, SpiceJet and GoAir demand level playing field in aviation policy, say government can't favour only two new airlines.
The government on Wednesday permitted NRIs to invest up to 100 per cent stake in disinvestment-bound Air India. The decision comes at a time when the government has sought preliminary bids for 100 per cent stake sale in the national carrier. "Today's decision on Air India is one milestone decision where NRIs... will get permission to invest 100 per cent in the airline," Union Minister Prakash Javadekar told reporters at a briefing about the Union Cabinet's decision.
