Full-service carriers remain unfazed by the introduction of the business class segment by budget airlines.
The country's leading low-cost air carriers -- IndiGo, SpiceJet and GoAir -- are set to nearly double their fleet capacity over the next 17 months.
Given that debt is a major problem for most airlines, investors with a medium-term horizon should look at them.
Six pilots of Kingfisher Airlines, GoAir and Air India have been de-rostered by the Directorate General of Civil Aviation after they violated guidelines while landing on a short runway at Mumbai airport under rainy conditions. The DGCA also issued notices to the three airlines on the matter asking them to explain why the strict guidelines were not followed.
Domestic air traffic in April this year consisted 10.99 million passengers as compared to 11.51 million passengers in the same month last year, signifying a fall of around 4.5 per cent,
While IT bellwether Infosys Technologies added 4,429 to its headcount in the last quarter, three of its employees were also in the news for the wrong reasons leading to two suspensions and one sacking in the IT firm.
DGCA has told the airline that only "air worthy" aircraft, which are completely fit for flying, should be used in operations.
The pilot wrote in his letter to airline's management that he was 'disheartened' to learn the carrier took action against the comedian without consulting him and solely on the basis of social media posts.
A software professional was arrested at the New Delhi airport on Sunday for allegedly making a hoax bomb call to delay the take-off of a Bangalore-bound GoAir plane, as he was late for the flight.
Budget carrier IndiGo continued to be the largest player with a market share of 46.9 per cent ferrying 54 lakh passengers in March.
The Indian government allowed foreign airlines to buy up to 49 per cent stakes in Indian carriers in September 2012.
Fares would vary according to sector.
Low-cost carriers SpiceJet, IndiGo and GoAir have cut fares sharply, just a week after they abruptly raised these following a 20 to 25 per cent slump in sales.
GoAir recently introduced return zero fare tickets under 'GoHappy Fares' plan, while low-cost arm of Air India, Air India Express offered domestic travellers a fare of Rs 99 plus taxes. Air Deccan, which has been taken over by Kingfisher Airlines and Spicejet are already in the race offering such sops. For AI Express, which has been primarily operating on international routes, this is an effort to reach out to the domestic market.
Low fares, high capital costs and high pilot salaries have driven most Indian carriers into the red. The bankruptcy cases abroad, industry insiders said, are a good opportunity for them to reduce their losses with some inexpensive acquisitions.
Experts say the margin was impacted primarily because of currency depreciation, rise in the price of aviation turbine fuel and pressure on account of fare wars in the home market.
The Maharashtra government has banned the use of single disposable items made from plastic such as spoons, forks, cups, glasses. Plastic bags and wrap used for packaging or storing products too is covered under ban.
Airfares in Indian market are unsustainable, says a senior Boeing official.
Jet Airways is keen to improve its market share
Airlines earn ancillary revenues from freight, sale of food, drinks and gifts onboard, sale of travel insurance, hotel rooms and car rentals, through frequent flier programmes, and by trying to cross-sell other products like credit cards and medical insurance. Globally, airlines make 4-5 per cent of their revenues from ancillary sources.
In addition to that, an increasing number of airlines like SpiceJet, national carrier Air India and GoAir are either getting into hedging of aviation turbine fuel or increasing the quantum of ATF hedged on the MCX. Last month, state-run Indian Oil Corporation approached MCX to provide it with a platform to hedge its refinery margins and end products from crude oil.
The decision was taken after Prime Minister Narendra Modi announced that the lockdown across the country will be extended till May 3 to fight the coronavirus pandemic.
IndiGo retained its No. 1 position amongst domestic airlines growing its market share.
The GoAir flight took off from the Indira Gandhi International airport in New Delhi at around 4 pm but the pilot detected problems in the plane's under carriage and so had to return it to the Delhi airport, airport sources said.
The airline owes lakhs of rupees to passengers and its vendors.
The fresh bout of trouble has forced IndiGo to ground aircraft periodically since July, and on August 20, the number of grounded aircraft touched nine
On offer from the beginning of this week, these fares are expected to continue through the rest of the lean season, that is, till the end of September. Customers buying any low-cost carrier ticket on the Mumbai-Delhi route will only have to pay taxes and surcharges that range from Rs 3,400 to Rs 3,600.
Hopper, short-haul flights lift performance.
Budget airlines are now set to explore the non-metro markets. With high growth prospects there, the carriers are pumping in funds and offering attractive packages to lure customers.
Budget carriers like Air Deccan, SpiceJet, IndiGo and GoAir are making key appointments, especially in the positions of chief finance officer, chief executive officer, while some airline executives are on their way out.
As full-service carriers hiked fares and surcharges due to skyrocketing jet fuel prices, the no-frill ones have launched special offers with SpiceJet on Thursday announcing the sale of three lakh tickets for Rs 3 each plus taxes and surcharge from Friday.
A month after they cut fares 25-30 per cent, the country's leading airlines have realised that the surge in passenger traffic they had expected has not happened.
Approval was held up due to CBI investigation into international flying permit of Tata group-owned AirAsia India.
Jet will, however, continue to pay the sale-linked productivity bonus to them.
Govt's decision to allow in-flight Wi-Fi doesn't take off with budget airlines, full-service carriers enthused
Faced with a lean season when occupancies drop 15 to 20 per cent, airlines are trying to lure fliers with cheaper fares. If you time your travel well (midweek, off-peak hours), you can still fly many sectors in the country for Rs 2,525.
Only 9% of passengers on such airlines are first-timers: CAPA survey.
Besides aircraft, passenger drones, helicopters, turboprops and seaplanes will help the government achieve its ambitious goal
No-frills carrier IndiGo's market share stood at 36.8 per cent in February while that of Jet Airways was 18.4 per cent.
