With IndiGo executing its long haul low-cost plans the airline will certainly need a lot of cash going forward.
Engine snag forces IndiGo to ground 7 new aircraft
IndiGo on Monday said it will refund all customer credit shells, which were created when flights were cancelled due to the coronavirus lockdown earlier this year, by January 31, 2021. The airline in a statement said it has already processed close to Rs 1,000 crore of refunds, which is approximately 90 per cent of the total amount it owed to its customers.
Budget carrier IndiGo has assured its employees that it will not make any deduction in their salaries or leaves due to the suspension of domestic flights till March 31. The government's decision to suspend domestic flight would come into effect from midnight Tuesday, as part of larger efforts to curb spreading of coronavirus infections.
Currently, there are related party transactions in four areas -- real estate leased to IGAL, simulator training facilities, General Sales Agreements (GSAs) for limited foreign markets and crew accommodation at Accor Hotels, the IGE statement said. Citing unaudited numbers for 2018-19, the statement said the related party transactions in the four areas accounted for Rs 150.12 crore or 0.53 per cent of IGAL's consolidated turnover.
IndiGo which has close to 40 per cent market share, at present has 129 aircraft and operates 883 daily flights to 44 destinations. It also has around 400 aircraft on order.
Budget carrier IndiGo announced special family fares which offer discount up to 25 per cent for a family of four or more travelling together on a single PNR across its domestic network.
Saturday's mid-air engine failure on Indigo flight prompts scrutiny.
Because of strong headwinds on Delhi-Istanbul route for the last two days, the low-cost carrier has been unable to take most of the check-in luggage in the same aircraft along with passengers, said an airline spokesperson.
The aviation regulator slapped fines amounting to Rs 2.75 crore on Indian airlines in 2023, marking a 39 per cent rise in financial penalties from Rs 1.97 crore in 2022. The Directorate General of Civil Aviation (DGCA) said it imposed fines on domestic carriers such as Air India, IndiGo, AirAsia India and SpiceJet for issues related to non-compliance in 2023. The regulator also carried out a record number of 5,745 surveillance activities in the year to ensure compliance by airlines, aerodrome operators, and aviation personnel among others.
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
The market valuation of InterGlobe Aviation, the parent of IndiGo, reached Rs 1 lakh crore mark on Wednesday and became the first airline to achieve this milestone. On Wednesday, the stock rallied 3.55 per cent to settle at Rs 2,619.85 apiece on the BSE. In intra-day trade, shares of the company jumped 4.12 per cent to hit its 52-week high of Rs 2,634.25.
This was the biggest IPO in the Indian market since Infratel's.
The decision comes hours after an A320 neo aircraft of IndiGo suffered engine failure mid-air and made an emergency landing at Ahmedabad airport.
Bihar Police on Wednesday arrested a person in connection with Indigo station manager Rupesh Kumar Singh's murder, which it claimed to be the outcome of a road rage.
Rising crude oil prices and muted passenger traffic in the July-September quarter (second quarter, or Q2) of 2023-24 (FY24) have raised concerns about the profitability of listed aviation players. These two concerns have caused the stock of InterGlobe Aviation (IndiGo), the largest player in the sector, to slip by 11 per cent since its highs at the end of July. Nuvama Research expects yields to cool down in the near term due to seasonality, rising crude oil prices, and higher capacity.
IndiGo will seek board approval for Dutta's appointment soon. Till then, promoter Rahul Bhatia will continue to act as interim CEO.
Once the coronavirus lockdown is over in India and commercial passenger flights are permitted again, IndiGo will deep clean its aircraft more frequently, stop in-flight meal service for a brief period and will fill a maximum 50 per cent capacity in airport buses, the airline's CEO Ronojoy Dutta said on Friday. "In situations like these, companies do not manage to growth or profitability but to liquidity. That means our singular focus is on cash flow. We are examining all our fixed costs and looking for ways to minimise them," he said.
Among the impacted flights, Air India's flight AI 185 from the national capital to Vancouver that was to depart early in the morning was rescheduled.
IndiGo confirmed the incident but said the aircraft did not face any technical issue in the past.
"In a civilised society fisticuffs have to be condemned ...action has to be taken," Raju told reporters.
The DGCA cracked the whip after an IndiGo flight bound for Lucknow returned to Ahmedabad within 40 minutes of its getting airborne due to a mid-air engine failure.
IndiGo has about 40 per cent market share, more than double that of Air India's 14.8 per cent.
Rakesh Gangwal had raised concerns that various RPTs involving Bhatia's InterGlobe Enterprises Group were executed without seeking the audit committee's approval and without seeking competitive bids from third parties.
Karnataka skipper Mayank Agarwal on Wednesday said he is on the mend and gearing for comeback after day-long hospitalisation caused by a suspicious liquid he drank on-board a New Delhi-bound flight in Agartala.
Major no-frill carrier IndiGo expects to continue its profit-making streak this financial year too, as it plans to increase frequencies on select international routes soon.
Three passengers who travelled on Delhi-Jammu flight on Tuesday, six passengers who were on Bengaluru-Coimbatore flight on Wednesday, two passengers who were on Delhi-Coimbatore flight on Wednesday and one passenger who was on Bengaluru-Madurai flight on Wednesday tested positive for the novel coronavirus, the airline said.
The airline is trying to save on wage costs by cutting the normal notice period of six months by about half for pilots who have already resigned.
Since the company's senior management was privy to the price-sensitive information of Ghosh's resignation, Sebi wanted to check whether the information was disseminated properly to bourses
French aviation watchdog BEA said vertical separation between the two aircraft 'was zero feet' while the least horizontal separation between the two planes was reduced to just 0.6 NM.
Indigo, the largest player in the domestic aviation space, cannot afford to ignore new entrant Vistara.
Due to the tyre burst, the aircraft got stranded on the taxiway, prompting authorities to shut the airport's runway till 4 pm, affecting the services of passenger flights, officials said.
IndiGo's situation points to a deeper malaise where skill shortage can challenge India's status as the fastest-growing aviation market, say experts.
The bookings of tickets under the four-day "festive sale" offer have begun from Monday for the travel period from September 18, 2018 to March 30, 2019, IndiGo said.
"The return fare on economy class to most European capitals from Mumbai are close to 50,000 plus. If an LCC can offer direct connectivity for a basic fare of 25,000 with additional top ups for meals, baggage and blankets, which further takes the fare to, say, 35,000, it is still a value deal."
Move aimed at giving more headroom to foreign investors.
At present, IndiGo operates over 17 flights between India and the Gulf
An integrated team of 200 staff crunches data to minimise disruption for 149 planes, but airport infrastructure poses a challenge
Red is clearly not Saina Nehwal's colour. For her engagement too, she looked stunning in a powder blue and pink lehenga.
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