Tony Fernandes said the aviation sector here was a "double marathon" and not a "sprint".
Falling jet fuel prices, stable rupee signal lower losses
Ajay Singh is trying hard to turnaround SpiceJet.
Perhaps for the first time, petrol in India costs more than the superior jet fuel (ATF) used in aeroplanes, as the government has levied a record excise duty on the fuel used in two-wheelers and cars.
This is the third consecutive profitable quarter for SpiceJet.
Currently, OMCs provide A-I a two-month credit. "There was a request from the committee of secretaries to extend the credit on ATF to three months from the existing two months to help Air India.
Full-service carrier Kingfisher Airlines has sought permission from the petroleum ministry to extend the date for paying dues to public sector oil companies for aviation turbine fuel.
Airlines say ATF fuel prices in India are 40 per cent higher than in countries such as Singapore. Jharkhand, Chhattisgarh and Maharashtra
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The ministry would access data on all the tickets sold by different carriers under various price brackets and then analyse the data to give an indication of exactly how many tickets were sold under each price slab.
Fuel supplies in many parts of the country were affected on the second day of the indefinite strike by oil PSU executives that also resulted in refineries running below capacity and impacted oil and gas production.
Defying high court orders, oil PSU executives on Wednesday stopped work forcing stoppage of natural gas supplies to industries on the nation's main trunk pipeline but aviation services and fuel supplies continued to be normal.
A model of Rafale jet will be showcased as part of the IAF's tableau. Models of LCA Tejas, Light Combat Helicopter (LCH), surface-to-air guided weapon Aakash missile and Astra missiles will also be part of the tableau.
After rationalising flights and routes, major domestic airlines like Kingfisher, Jet Airways and SpiceJet are introducing sharp cutbacks in staff and salaries to cope with slower passenger growth and rising aviation turbine fuel costs. Manpower typically accounts for 10-15 per cent of an airline's total costs.
There are both positive and negative impacts of the tax, but the net result for India's infrastructure sector is advantageous, says Vinayak Chatterjee.
Succumbing to government pressure, Vijay Mallya-promoted Kingfisher Airlines on Monday decided to cut fares, but with the condition that the government put aviation turbine fuel in the declared goods category. Kingfisher has also assured that it would not resort to retrenchments to deal with the downturn.
Based on the Skytrax ranking for 2018, IndiGo is number two among the best low-cost carriers in Asia, behind rival AirAsia.
IIP for November 2015 and CPI for December 2015 will be announced today.
Highly placed sources said Oil Minister Murli Deora took exception to Menon's proposals during a meeting of the Federation of Indian Airlines and Civil Aviation Minister Praful Patel to resolve the crisis arising out of mounting fuel bill arrears. "There should not be any layoffs. Why are you raising it now," sources quoted Deora as telling Menon.
Civil Minister Praful Patel on Monday ruled out retrenchment among employees in public sector Air India and blamed rising fuel prices as the reason behind the present crisis in the aviation sector.
Large trade deficit and rupee decline against the US dollar are putting pressure on the CAD, and these steps are likely to have a positive impact on the external sector.
Private carrier Jet Airways is expected to further consolidate its international operations into a major revenue grosser in FY09, to overcome the growing turbulence in the domestic sector. The general economic scenario does not bode well for capacity expansion on domestic routes, with some of these struggling on account of overcapacity, and only yesterday some airlines were pushed to hike fares to make up for higher aviation turbine fuel prices.
Broader market outperformed the frontline indices with the Smallcap and Midcap gaining up to 1%
The hike comes on back of over 12 per cent hike on June 15. ATF price on that day were raised by Rs 3,949 to Rs 36,252 per kilolitre in Delhi.
Promoters of SpiceJet do not have funds to bail out the airlines of dire consequences.
The Forbes magazine had adjudged Maran as the 38th richest man in India, with a net worth of $2.3 billion (as of September).
The biggest let down for India's aviation sector has been the failure of the government to privatise Air India, says Anjuli Bhargava.
Airbus hasn't bagged orders from India in the last two years, but country head Kiran Rao is bullish on opportunities.
Faced with the prospect of $1.5 billion losses owing to a slowdown in passenger traffic and high aviation turbine fuel (ATF) costs, airline companies are cancelling or cutting deliveries of new aircraft due this year or sub-leasing them to other carriers globally.
LPG rates were last hiked on November 1 by Rs 2.05 per cylinder. Prior to that rate was hiked on October 28 by Rs 1.5 per cylinder on account of hike in commission paid to dealers.
Former Petroleum Minister Ram Naik has flayed the UPA government lowering prices of aviation turbine fuel (ATF), saying India is the only country where ATF is cheaper than petrol.
Jet Airways, Kingfisher and NACIL, which operates Air India, owe over Rs 2,000 crore (Rs 20 billion) to the oil PSUs in unpaid fuel bills, Petroleum Minister Murli Deora said.
Overall, the Survey warned that unless shifts in the vision of development were articulated and embraced, the Indian economy would lose the chance to move to a high-growth trajectory.
The National Aviation Company of India (NACIL), the entity that came into being after the merger of national carriers Air India and Indian, has increased its working capital limit to around Rs 9,500 crore (Rs 95 billion) in order to meet the recent hikes in fuel prices.
An airfare regulatory authority likely soon.
Even as growth in traffic on chartered flights has fallen 6 to 8 per cent over the past year, rising fuel prices are forcing private charter operators to raise tariffs a substantial 20 per cent from September 1. India has more than 50 non-scheduled operators, which include helicopter operators like Global Vectra, aircraft operators like Ran Air and Taj Air and companies like Deccan Aviation Ltd that fly both helicopters and aircraft.
Earlier, PE firms such as Goldman Sachs and Indigo Partners had evinced interest in the Indian aviation market.
Confronted with spiralling aviation turbine fuel prices, which account for half an airline's operating costs in India, several low-cost and full-service carriers will go for a steep increase in fares that could vary from 5 to 20 per cent, from June 20. Today's announcement comes three weeks after fares were raised 8 to 10 per cent following a rise in ATF prices (which increased 18 per cent last month).
Indian carriers can pass on some of the reduction in cost due to the dramatic fall in aviation turbine fuel prices to customers without taking a major hit on their bottomlines. Airlines have also cut costs on a variety of areas, including manpower and distribution, while increasing the fares steeply.
Petroleum Minister Murli Deora will meet Civil Aviation Minister Praful Patel and chiefs of airlines and oil companies to discuss a solution for dues of over Rs 2,000 crore that the domestic carriers owe the state-owned oil marketers on fuel sales.
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