Fuel accounts for as much as 35-40 per cent of the operational cost of an airline.
Mumbai International Airport (MIAL) has proposed a significant increase in User Development Fee (UDF) for international passengers, while domestic passengers will be charged a UDF for the first time. However, MIAL also proposed a 35% reduction in landing and parking charges, aiming to balance infrastructure development with cost-effective air travel for airlines. The new tariff structure is subject to approval by the Airport Economic Regulatory Authority (AERA).
"The markets do not remain the same forever but still, anything that makes sense to Jet Airways' shareholders will make sense for the promoters as well," Goyal said. Together with JetLite, formerly Air Sahara, which Jet bought last year, the airline controls over 29 per cent of the Indian domestic market.
Airlines will report losses in FY16 but 35% less Y-o-Y
The income earned from such activities is crucial for the domestic airline industry, which had accumulated losses of over Rs 2,200 crore in 2007. These losses are expected to rise to Rs 2,800 crore in 2008.
'...than by the calendar.' Indian travellers are no longer restricting their getaways to summer or winter holidays.
IndiGo Airlines, a new domestic airline and a subsidiary of InterGlobe Entreprises, will start operations from August 4 with a daily flight from Delhi to Guwahati and Imphal.
India's share will only get bigger once SpiceJet enters the fray from June to fly south east Asia and south Asian countries.
Brent crude oil price surged 4 per cent on Friday, following tension between Iran and the US. Airlines, however, have been unable to pass on the price increase to customers due to the soft demand.
Fuel accounts for around 40 per cent of costs for domestic airlines.
Indian airline industry is expecting to prune its net losses to Rs 3,000-5,000 crore in this fiscal from an estimated Rs 17,000-17,500 crore in FY2023 on the back of improved yields and stable cost environment, credit ratings agency ICRA said on Tuesday. At the same time, ICRA also estimated that domestic air passenger traffic will expand by 8-13 per cent each in FY2024 and FY2025. The rating agency has also maintained its stable outlook on the industry in view of healthy passenger traffic growth, improved yields and a stable cost environment.
IT departments, running the website, is working overtime to provide necessary information and making relevant changes.
If all goes well, then every single employee of Jet Airways will become an owner of the airline.
Indian business group Wadia is to join an ever-growing queue of companies wanting to launch a low cost domestic airline, the Economic Times reported Wednesday.
Consider this: despite a traffic of over 130 million passengers flying international-to-international (I2I) routes per annum over India, only one-sixth of the long-haul traffic (26 million) emanates from the country.
Ajit Singh says the govt does not intend to regulate fares but in the larger public interest, transparency is required.
Domestic airlines on Thursday welcomed the 12.5 per cent cut in jet fuel prices, terming it as a much-needed relief but ruled out any immediate reduction in fares.
Limits imposed on domestic airfares will be removed from August 31, after a span of approximately 27 months, the Union aviation ministry said on Wednesday. "The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF). "Stabilisation has set in and we are certain that the sector is poised for growth in domestic traffic in the near future," Aviation Minister Jyotiraditya Scindia said on Twitter.
China's domestic airline Lucky Air is celebrating the football World Cup mid-air... and doing it in some style!
The apex association of courier companies in India on Tuesday strongly contested the claims by the three major domestic airlines on baggage charges for on-board couriers.
Air India has covered a lot of ground since privatisation and its global coverage will further increase in the years ahead, the airline's chief Campbell Wilson said on Wednesday. He also said the interior refit of the single-aisle fleet, serving domestic and short-haul international destinations, is underway, and will be completed by mid-2025.
GMR Group-led DIAL, which manages and operates India's largest airport, recently requested the AERA to double the user development fee (UDF) for international business and first-class travellers compared to economy and premium economy over the next four years. It has also sought higher UDF for all domestic passengers flying during peak hours -- 5 am-8:55 am and 5 pm-8:55 pm.
Civil aviation ministry to monitor flash sales and discount schemes: Source
With commissions from domestic airline ticket sales falling victim to lower fares over the past two years, online travel portals like Travelguru, Cleartrip, Yatra and Makemytrip are increasingly exploring non-airline business avenues like hotel bookings, car and bus rentals and holiday package tours to boost revenues.
Domestic airlines expect the fall in prices of aviation fuel to boost their earnings from the quarter ending December.
Last year, air traffic grew by 9.7%.
Domestic air traffic grew by over 18 per cent last month compared to October last year as Air India's passenger load factor overshot that of IndiGo which had the largest number of flight cancellations, official data showed on Monday.
Sending a strong signal to domestic airlines over abrupt hike in airfares by some of them during periods of high demand, the Union civil aviation ministry on Thursday warned them of action if they continued with such 'predatory pricing'.
By cutting international flights, Indian firms forefeit market share.
Domestic air traffic in the first two months of this year fell by 3.57 per cent compared to the same period last year.
The Tata Group-owned Air India has readied a five-year transformation plan, which is expected to take its domestic market share to 30 per cent, up from 8.4 per cent logged in June. IndiGo leads with a market share of 58.8 per cent. The transformation plan--Vihaan.AI-unveiled on Thursday revolves around tripling the domestic market share with investments in new aircraft, technology and improvements in customer service.
Indian airlines will operate a total of 23,732 flights every week during the winter schedule, which is more than 8 per cent higher than the year-ago period, amid rising air traffic demand. The winter schedule 2023 -- effective from October 29 to March 30 next year -- for the scheduled carriers has been approved by aviation regulator DGCA. Go First, which stopped flying from May 3 and is undergoing an insolvency resolution process, will not be having any operations during the winter schedule.
Indigo has zero competition on 61.2 per cent of its 838 domestic routes.
'I wanted my life back. I want to enjoy the things that I wanted to do.'
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.
Domestic rating agency ICRA on Monday said Indian companies are likely to clock 7-8 per cent revenue growth during the March quarter of the current fiscal year, led by revival in rural demand and uptick in government spending. ICRA expects the private capital expenditure (capex) cycle to remain measured in view of the uncertainties around geopolitical developments and relatively subdued outlook on merchandise exports from India.
