West Asian carriers are up against Air India and IndiGo in the battle for seats on lucrative international routes.
The domestic aviation industry is expected to report a net loss of Rs 25,000-26,000 crore this fiscal with elevated jet fuel prices and fare caps continuing to pose a major challenge for the airlines' profitability, domestic rating agency ICRA Ltd said on Thursday. The domestic airlines, however, are likely to post a reduced net loss of Rs 14,000-16,000 crore in the next financial year on the back of a "notable recovery" in air passenger traffic and lower level of debt, ICRA said. The ratings agency also estimates that the industry will require an additional funding in the range of Rs 20,000-22,000 crore during FY22-FY24.
Crisis-hit Go First has sought various interim directions from the National Company Law Tribunal, including restraining lessors from taking back aircraft and regulator DGCA from taking any adverse action against the airline. The Wadia group-owned airline, which has liabilities worth Rs 11,463 crore, has sought voluntary insolvency resolution proceedings and the plea is set to be heard by the Delhi bench of the NCLT on Thursday. Go First has cancelled all its flights for three days starting from May 3.
Whole price index inflation will touch zero per cent by March end 2009, on the back of 2 per cent excise duty cut, a 7 per cent cut in ATF prices and a strong base effect," Azis Bank said in a note. The report further said that a revival in demand is unlikely to be so strong and inflation might be negative in April 2009.
Rising prices of food items, jet fuel and alcohol pushed up inflation marginally for the second consecutive week, to 5.64 per cent.
Promoters of SpiceJet do not have funds to bail out the airlines of dire consequences.
Jet Airways is keen to improve its market share
Aircraft reconfiguration and Kingfisher's slide help the airline consolidate its top spot, but widening losses and IndiGo's rapid rise are big concerns.
Ministry sources say investors are looking at pumping in around Rs 1,100 crore
To take delivery of 50 from 2017 and in talks to lease five Airbus planes to Kuwait Airways.
The airline has now agreed to pay 3 per cent commission on gross fare (defined as basic fare plus fuel surcharge) of domestic and international tickets sold in India.
Jet Airways in which Abu Dhabi's Etihad is buying a stake, reported its worst quarterly loss on record as carriers in Asia's third-biggest economy battle high fuel costs and taxes.
Jet has pulled out flights from Northeast states and also cancelled its Srinagar flight, leading to reduction in capacity.
Ajay Singh is trying hard to turnaround SpiceJet.
But the Abu Dhabi-based airline would first bolster its own network with traffic from India before Jet's turnaround.
Capa lauded govt's efforts in rescuing SpiceJet.
The company solf the frequent flyer business.
SpiceJet on Monday launched discounted ticket sales at 'rates cheaper than AC 2-Tier train fare.
Petroleum Secretary R S Pandey separately pointed out that the airline had defaulted on payment of fuel bills to oil companies and owed them Rs 259 crore (Rs 2.59 billion). The airline, which is battling to survive the downturn in the industry, has handed out the pink slip to 1,900 employees, mostly cabin crew - which it expected to result in savings of $1 million a month.
The warning had come after SpiceJet's dues to AAI (including interest at 12 per cent) exceeded Rs 300 crore (Rs 3 billion) this month -- from Rs 230 crore (Rs 2.3 billion) early December last year.
Despite the best ever quarterly net profit of Rs 3,091 crore during April-June of financial year 2023-24 (Q1FY24), challenges are mounting for InterGlobe Aviation-run IndiGo in the near term, said analysts. Given this, most brokerages have retained their ratings from 'buy to underperform', as well as their target price for the stock. For instance, Motilal Oswal Financial Services has retained its 'neutral' rating on the scrip as it believes the low-cost airline is facing teething issues at present.
For the Rs 599 offer, taxes and other fees and charges, barring fuel surcharge, would be additional, but the Rs 1,999 offer is all-inclusive
The airline has launched a series of discount offers since January this year.
Due to the group's presence across multiple businesses, it is in a unique position in the aviation industry to bring the best of talents.
Jet and Etihad stand to benefit from cost savings and synergies in areas such as fleet acquisition, maintenance and training.
Airline posted a consolidated loss of Rs. 128 crore in the first quarter of 2011-12.
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Officials in India's civil aviation ministry are now expected to meet SpiceJet stakeholders within a couple of days to discuss the revival plan
Sale of wide-body aircraft will not affect internatinal flights, says Jet
Passengers can book the combined plane-train journey as a single ticket.
Mumbai, Bengaluru, and Kochi airports have hiked their landing charges by up to 45 per cent, increasing the operating cost for airlines at a time they are facing financial constraints because of the two months of grounding and weak demand.
High fuel prices are not only taking a toll on airline companies' balance sheets, but also forcing them to innovate to cut costs.
The bookings for this three-day offer commences from Monday with a travel validity period between January 16 and October 24 next year, SpiceJet said.
The additional stake will cost the promoters Rs 312 crore (Rs 3.12 billion).
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.
