On the high costs facing the Indian airline industry, Goyal said the factors included a depreciating rupee against the dollar, escalating jet fuel prices, high taxes and rising infrastructure costs.
Indian airlines on Wednesday filled aviation turbine fuel (ATF) into the tanks of their aircraft at Rs 68,000 a kilolitre. Around the same time, ATF sold at $1,037.8 (Rs 41,500) a kilolitre at the Singapore airport -- full 39 per cent below Indian prices.
Civil Aviation Minister Praful Patel on Friday said the airline industry in India has grown by 400 per cent in a short span of about six-and-a-half years.
Aircraft maker Airbus on Thursday announced awarding a contract to Indian company Dynamatic Technologies for manufacturing all the doors for its next-generation narrow body A220 planes, giving a boost to the 'Make in India' initiative. While financial details were not disclosed, Civil Aviation Minister Jyotiraditya Scindia said it is one of the single-largest export contracts for an Indian aerospace manufacturing company and emphasised that the country is becoming a destination for aircraft component manufacturing activities.
'Business families like the Godrej group are increasingly realising that an amicable settlement is better.' 'Else, the wealth of all shareholders gets destroyed.'
In the previous decade, the government, with Praful Patel as the civil aviation minister, saw the introduction of an irrational 5/20 policy.
They say better late than never. For the Tatas, the original owners of Air India, bringing back the airline to its fold is worth the wait even if the attempt to privatise the bleeding national carrier by successive governments has taken over two decades. While many airlines have come and gone from the Indian skies since the time when the first move was made to privatise Air India to date, the salt-to-software conglomerate has never let the love affair with aviation, more so with Air India that its former chairman Jehangir Ratanji Dadabhoy Tata (JRD) had, to go off the radar. It is said that Tata group executives used to complain in private that JRD -- the pioneer of the Indian aviation industry -- spent more time worrying about Air India than the Tata group when he was heading both the entities.
Signalling both change and continuity, India's new government, headed by Prime Minister Narendra Modi for a third consecutive term, got into work gear on Tuesday with cabinet ministers and ministers of state filing into their respective offices to assume charge.
India witnessed the highest increase in airfares among the 10 top aviation markets in the Asia-Pacific and West Asia collectively across both domestic and international flights Q4 2019 and Q4 2022 in nominal terms, according to research by Hong Kong-based Airports Council International (ACI). India, where fares went up by 41 per cent, was followed by the UAE (34 per cent), Singapore (30 (per cent) and Australia (23 per cent). The study, which was undertaken in collaboration with Flare Aviation Consulting, examined around 36,000 routes in the top 10 aviation markets in Asia-Pacific and West Asia.
On the issue of allowing domestic carriers to fly overseas before their completing 5 years of domestic operations, the document does not mention anything.
In its report, the International Air Transport Association said that in 2009 intra-Asia-Pacific travellers numbered 647 million compared to 638 million who travelled within North America, including domestic markets.
The task force, to be headed by Finance Minister Nirmala Sitharaman, will look at measures to limit economic hardship caused by the Covid-19 pandemic, he said in his address to the nation.
The phenomenon of fog is largely Delhi-centric. 'Airlines may think that we only have conditions of extreme fog on a few days every year, and spending a pilot's time and the airline's money on training can add up to its expenses.' 'So, they may prefer holding it for a few days.'
'Candidates will receive hands-on training in drone piloting, maintenance, data analysis, and regulatory compliance.'
The Industry Ministry is in favour of allowing foreign airlines to invest in domestic carriers, saying it would help the cash-crunch industry to raise equity, an issue that does not find support among many Indian airlines.
Wadia group-owned no-frills airline GoAir on Monday announced that its managing director Jeh Wadia has stepped down from the position. The airline, however, said that Wadia will continue as a promoter. It also announced the appointment of aviation industry veteran Ben Baldanza as vice chairman at the carrier. Baldanza has been an advisor to the company since 2018 and director since 2019.
India's fuel consumption slumped by over 66 per cent in the first week of April as a nationwide lockdown halted economic activity and travel, which eviscerated demand. Petrol and diesel demand is down 66 per cent in April, while aviation turbine fuel (ATF) consumption has collapsed by 90 per cent as most airlines have stopped flying, industry officials said.
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.
Air India Express on Thursday cancelled 85 flights or around 23 per cent of the total daily capacity as the disruptions due to the cabin crew shortage continue and said Air India will operate services on 20 of its routes to minimise inconvenience to passengers.
The intellectual vacuum that the government is often accused of is more than evident in the policy draft.
Kaushik Khona's second innings at GoAir will be more challenging than the first. Globally, the aviation industry is in deep distress because of the pandemic, reports Aneesh Phadnis.
If the concerns over risking political capital are overcome, the long-term gains for the Indian economy will be immense, asserts A K Bhattacharya.
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.
Taxes on ATF in India are among world's highest, and are seen as key reason for mounting losses of airlines.
Aviation companies are set to get a major relief from high aviation turbine fuel prices. Following a steep decline in crude oil prices, oil marketing companies are looking to cut ATF prices by 5-6 per cent, or Rs 2,000-2,500 a kl across various cities beginning Thursday, said industry sources.
The airport security market, which comprises segments like security, disaster response, identification, manning and cyber security is currently growing at a compounded annual growth rate of about 25 per cent, according to a study titled 'India Homeland Security Market: An Emerging Opportunity'.
With the reality of coalition politics staring the BJP in its face, this was inevitable, points out Ramesh Menon.
As air travel gathered steam in financial year 2021-22 (FY22) after being restricted the previous year, fewer passengers were affected by flight cancellations. Directorate General of Civil Aviation (DGCA) figures show that there were 40 per cent fewer flyers in FY22 than in FY20, but 60 per cent fewer passengers were impacted by cancellations, and 80 per cent fewer passengers were denied boarding. FY20 was the last financial year when India's booming aviation industry carried out full-scale operations before being completely grounded for a couple of months due to the Covid-19 pandemic.
Improving economy and investment in Indian carriers and hotels by global companies is likely to lead to hiring for aviation and hospitality sectors witnessing up to 40 per cent growth in 2015, according to experts.
The assets of Kingfisher Airlines' vendors are stuck in the country that can be moved only after spending huge sums of money.
In India currently, Air India, Jet Airways and its subsidiary JetLite are members of the IOSA and conform to the safety standards set by this audit on a regular basis.
Air India will require more than 6,500 pilots to operate 470 aircraft that are to be supplied by Airbus and Boeing in the coming years, according to industry sources. Seeking to expand fleet as well as operations, the airline has placed orders for acquiring a total of 840 aircraft that includes an option to buy 370 planes. This is one of the largest aircraft order by any airline. Currently, Air India has around 1,600 pilots to operate its 113 aircraft fleet and in recent times, there have been instances of ultra-long haul flights getting cancelled or delayed due to shortage of crew.
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Such direct import was formally allowed in February 2012 but the aviation companies lack the infrastructure to do so.
Domestic airlines are preparing to offer lower fares for passengers without check-in bags in a move to improve seat occupancy and market share. IndiGo chief executive officer Ronojoy Dutta indicated the airline's interest to offer zero bag fares in an interaction with Bloomberg. Regulatory caps on fares and capacity related to Covid-19 have prevented IndiGo from taking a decision and the airline is discussing the issue with the government, he said.
Says banks strong enough to tackle the problem on their own
Indian airline Go First is considering legal action against Pratt and Whitney (PW) for failing to provide compensation after March 2020 for planes grounded due to engine supply delays, sources said on Thursday. About 90 per cent of the airline's fleet of aircraft uses PW engines. About 24 of the airline's 55 planes are grounded due to delays in engine supply by PW.
