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.
In a blow to airlines overcharging travelers during peak season, the Director General of Civil Aviation (DGCA), has mad eit mandatory to publish details of all-inclusive fares on the first day of every calendar month.
Experts said the risks associated with the Indian Experts say that aviation sector would keep investors away from airline stocks.
High airline turbine fuel prices and pressure to cut down carbon emissions have forced airlines to look at renewable sources of energy to power their jets.
Carter was in politics, but not a politician, certainly not a transactional politician, points out Shreekant Sambrani.
Indian airlines are expected to post a consolidated loss of $4.1 billion this fiscal, similar to what they are estimated to have incurred in 2020-21, taking the total losses of two years to around $8 billion as a result of the pandemic so far, aviation consultancy and research firm CAPA said on Thursday. In a report, CAPA expects domestic passenger traffic to be around 80-95 million in 2021-22 as against 52.5 million in the previous financial year. However, despite this growth, it will be well below than around 140 million passenger volumes recorded in 2019-20, CAPA said in the report. This projection of the traffic volume does not take into account the anticipated third wave of the pandemic, it added.
This is the second straight increase in ATF price this month. Rates were hiked by a record 56.5 per cent (Rs 12,126.75 per kl) on June 1. Simultaneously, petrol and diesel prices were hiked for the 10th day in a row.
The increase in prices of jet fuel by about nine per cent would put an additional burden of Rs 550 crore (Rs 5.5 billion) on national carrier Indian and the airline has asked the government to consider levying a fuel surcharge on air travel or hiking
Jet Airways is imposing $50 surcharge on economy class fare on its Gulf flights.
'The levy proposed to be charged on air tickets for regional connectivity fund would marginally increase cost.'
Hyderabad-based Turbo Megha Airways takes off, promising affordable fares and other benefits.
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.
The biggest let down for India's aviation sector has been the failure of the government to privatise Air India, says Anjuli Bhargava.
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.
Jet fuel prices on Monday were hiked by a steep 6.5 per cent on the back of a rally in international oil prices. Aviation turbine fuel or ATF price was hiked by Rs 3,663 per kilolitre, or 6.5 per cent, to Rs 59,400.91 per kl in the national capital, according to a price notification of state-owned fuel retailers. This is the third increase in jet fuel prices since February. Rates were increased by 3.6 per cent on February 16, and by Rs 3,246.75 per kl on February 1. The increase in rates will add to the margin woes of airlines who continue to operate flights at less than capacity, amid pandemic-driven travel restrictions.
Jet fuel (ATF) price was on Monday hiked by a steep 56.5 per cent and that of non-subsidised cooking gas LPG by Rs 11.5 per cylinder on the back of firming up of international oil rates, but petrol and diesel prices continued to remain on freeze for a record 78th day. Aviation turbine fuel (ATF) price was hiked by Rs 12,126.75 per kilolitre (kl), or 56.5 per cent, to Rs 33,575.37 per kl in the national capital, according to a price notification by State-owned oil marketing companies.
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.
Paramount Airways aims at acquiring stakes in other airlines as part of its plans for a pan-India presence by 2011, according to its top official.
The minister said airlines must reciprocate the government's gesture to help the aviation industry, which has been been going through rough weather this year. State-run oil companies on Monday slashed jet fuel prices by over 11 per cent. ATF in Delhi was cut by Rs 4,208.37 to Rs 32,691.28 per kilolitre.
New rules will unnecessarily make the airlines responsible for reasons beyond their control
The 17-lender consortium led by State Bank of India has also put the Flying Models, Funliner, Fly Kingfisher and Flying Bird Device on the block.
The API of Paracetamol, a fever and pain medication, has grown 25 per cent from Rs 450-480 per kg in December 2020 to Rs 580-600 per kg in April. When compared to the pre-Covid prices of December 2019, the surge is much steeper -- around 140 per cent, reports Sohini Das.
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.
Higher economic growth and affordability will help Indian aviation firms register strong growth.
Air India on Thursday unveiled a new brand identity and aircraft livery as the airline moves ahead with its transformation plan since being taken over by Tata Group more than one-and-a-half years ago. The new look re-imagines the iconic Indian window shape, historically used by Air India, into a gold window frame that becomes central to the new brand design system. It symbolises a 'Window of Possibilities', according to a release.
Full-service airlines on Thursday demanded that the government should regulate prices and suggested that higher entry barriers for new players could be a way out of the present financial cauldron.
Cars, towing machines, forklifts, tractors, fire extinguishers, and iron ladders will be e-auctioned.
Fuel accounts for as much as 35-40 per cent of the operational cost of an airline.
Air India on Tuesday signed agreements with Airbus and Boeing for acquiring 470 planes for an estimated $70 billion at list prices. The Tata Group-owned airline had announced that it will buy 470 aircraft, including wide-body planes, in February this year. The "firm orders include 34 A350-1000, 6 A350-900, 20 Boeing 787 Dreamliners and 10 Boeing 777X widebody aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo and 190 Boeing 737MAX narrow-body aircraft," the airline said in a release.
Corporate margins and profits in India remain vulnerable to changes in crude oil prices in the international market. Historical quarterly data from listed companies (excluding banks, finance and insurance, oil and gas, and power sectors) indicate an adverse correlation between corporate margins and crude oil prices.
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The tenth-largest US airline, ATA Airlines has filed for bankruptcy protection and sold off airport slots and other assets to AirTran Airways for $ 87.6 million, to become the latest US airline plagued by rising fuel costs and fare wars.
Faced with high Air Turbine Fuel (ATF) prices fuelled by rising international crude prices and a higher levy of sales tax, air-carriers are considering ATF imports as an alternative to purchases from domestic oil companies.
The airline has been trying to gain additional flying rights in India.
'The world over, everybody is asking for the same medicines, same APIs, same KSMs.' 'However, there is just one supplier -- China -- for the entire world.'
Domestic fares on all sectors became costlier by Rs 200 from Friday with the hike in fuel surcharge, imposed by major airlines due to increase in jet fuel prices.
In the previous decade, the government, with Praful Patel as the civil aviation minister, saw the introduction of an irrational 5/20 policy.
In recent times, concerns have been expressed in various quarters.
Delhi Chief Minister Arvind Kejriwal says surge pricing is daylight robbery and no responsible govt can allow that.
