DOMESTIC AVIATION MARKET
Aviation market big enough for Akasa Air to succeed, says CEO Vinay Dube
As Akasa Air expands domestically and internationally, CEO Vinay Dube focuses on service excellence and cost leadership, rather than competition. With a fleet of 24 Boeing 737 MAX planes and over 900 weekly flights, the airline aims for profitability while planning further growth. Ancillary services and pilot satisfaction remain key priorities.
ET Graphics: India’s domestic aviation market is now third largest globally
India has recently overtaken Brazil and Indonesia to claim the position of the third largest domestic aviation market, as reported by aviation data analytics firm OAG. IndiGo and Air India, collectively holding orders for more than 1,000 aircraft, dominate the market by securing nine out of every ten domestic seats in India. At present, the United States and China maintain their positions as the top two aviation markets globally.
Thyssenkrupp India lines up sustainable aviation fuel foray
Thyssenkrupp Industries India, whose majority shares were recently sold by its German parent company, is set to enter the sustainable aviation fuel (SAF) sector as part of its new business strategy under Indian ownership. Vivek Bhatia, the managing director, informed ET that the capital goods company is currently in the process of finalizing partnerships for its SAF initiative. SAF is an eco-friendly aviation fuel derived from non-petroleum sources, such as forestry and agricultural waste, used cooking oil, carbon captured from the atmosphere, and green hydrogen.
Indian airports need to review their pricing strategies: CAPA India
Indian airports can increase profitability by increasing non-aeronautical revenues, according to aviation consultancy firm CAPA India. The consultancy found that airports on Public Private Partnership (PPP) mode generate more non-aero revenues than those operated by the Airports Authority of India (AAI). The consultancy suggested that Indian airports need to review their pricing strategies and consider whether aero charges reflect demand on resources.
Good time for IndiGo to grab market share in international segment: Pieter Elbers
If you look at international, though, we do 33 destinations today and they are pretty much in the region and some of the regional and I would say beyond regional expansions, which we recently did, starting flights into Africa, starting flights into Indonesia and starting flights into Central Asia, have been extremely encouraging.
ET Graphics: Domestic flyer traffic growth in the slow lane
Domestic air traffic increased by 4.4% in May, with airlines carrying 13.8 million passengers compared to 13.2 million in May 2023, and 723 passenger complaints were recorded.
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IndiGo to receive compensation from Pratt & Whitney for grounded aircraft
IndiGo's parent company, InterGlobe Aviation, has announced that it will receive a "customised" compensation from Pratt & Whitney's affiliate firm International Aero Engine for grounded aircraft. The company has amended an existing agreement with IAE to provide IndiGo with a customized compensation for the ongoing situation of grounded aircraft due to engine unavailability.
Want to make airways the new railways, says Civil Aviation Minister Ram Mohan Naidu
Union Minister of Civil Aviation, Kinjarapu Ram Mohan Naidu, aims to make air travel affordable to the common man by addressing airfare fluctuations. The steps to be taken to achieve this will be taken by the ministry. Despite the UDAAN scheme and market growth, external factors like Covid have impacted airfares. Discussions to reduce prices are forthcoming, prompted by concerns over high fares during peak seasons and the need for better price regulation in the rapidly growing aviation market.
IndiGo, Air India upgrade playbooks to keep up with India's rising middle class
India's rising affluence is driving a significant shift in the lifestyle of the middle class, with a growing preference for premium products and experiences, both on the ground and in the sky. Airlines are capitalizing on this trend by offering luxurious amenities to cater to the surging demand, such as roomier seats, gourmet meals served on designer tableware, and lavish vanity kits.
IndiGo bets on affordable long-haul plan: CEO Pieter Elbers
IndiGo, known for its single-class model, is shifting to dual-class to cater to India's growing air travel market. With rising affluence, more Indians are exploring international travel, a trend IndiGo aims to capitalize on. Managing operations at Delhi airport's three terminals is challenging but supported by the government's vision for aviation. Hosting IATA's AGM in 2025 showcases India's aviation potential. IndiGo's strategy reflects its belief in India's growth, aiming to offer affordable fares and quality service to a broader range of travelers.
India's aviation mkt growth needs to be matched with capacity; open for partnerships: Emirates CCO
On whether Emirates is looking for partners in India, Kazim said it is open to any such future engagements if there is an appetite in an Indian airline for that sort of dialogue and engagement.
India airline industry to report wider loss in FY25, consultancy says
India's airline industry is projected to face widening losses of $400-600 million in fiscal 2025 due to escalating costs despite increased passenger demand. CAPA India forecasts a rise in yields by 1% this year, with overall costs to increase by 3.8%. The market is dominated by low-cost carrier IndiGo, while the Air India group and newer carriers like Akasa Air and SpiceJet also play significant roles. Domestic passenger traffic is expected to grow to 161-164 million, with international traffic reaching 75-78 million, reflecting India's status as the world's fastest-growing aviation market.
Delhi to host global aviation body’s showpiece event next year
New Delhi to host 81st IATA AGM with IndiGo's Pieter Elbers as chair, highlighting India's aviation growth. IATA projects India as third-largest aviation market by 2026. Civil Aviation minister Jyotiraditya Scindia praises sector's growth with record passenger count and enhanced regional connectivity
Emirates boss says India’s protectionist stance will be detrimental to economy
Emirates president Tim Clark opposes India's protectionist stance to favor its carriers. The UAE requests more seats, Air India supports the move post-Tata takeover, and IndiGo ventures into long-haul travel with Airbus aircraft.
India has significant potential for producing sustainable aviation fuel, says IATA
IATA highlights India's potential for Sustainable Aviation Fuel production to reduce carbon emissions. The organization plans to launch the SAF Registry in 2025, supported by various stakeholders like Hemant Mistry.
Indian Airlines ride AI: Human-like responses for passengers, lesser workload for agents
Artificial intelligence is transforming the Indian aviation industry, enhancing customer service and operational efficiency for airlines like Air India, IndiGo, and Akasa Air. From AI virtual agents handling diverse queries to AI chatbots with trillions of parameters, these technologies are streamlining processes and improving passenger experiences. The adoption of new-age technologies like AI and machine learning is on the rise across the industry, promising advancements in areas such as computer vision and data-backed decision-making.
Windfall tax on crude slashed to ₹5,200/tonne
Centre slashes windfall gains tax on domestically-produced crude to ₹5,200 per tonne from ₹5,700 per tonne effective June 1, 2024. No change in export duty on petrol, diesel, and ATF.
Average air ticket prices spike 9 pc in Jan-March period: FCM Travel
International air capacity has also increased 14 per cent due to India's growing aviation sector, Sodhi said, adding that average international airfares have softened 15 per cent, which is a general global trend of yields decreasing across airfares.
Domestic airfares on northward trajectory; still among lowest globally: Experts
Domestic airfares in India have surged up to 40% in key routes due to higher traffic and capacity constraints in the last six quarters. India is one of the world's fastest-growing civil aviation markets, with an average of 4.5 lakh passengers daily. However, capacity constraints are a key challenge as many aircraft are grounded due to supply chain issues. Aviation consultancy firm CAPA India reported that average fares on the top 20 domestic routes had not moved significantly in nominal terms for the last two decades, until the last six quarters.
InterGlobe Aviation shares rally 3% after doubling Q4 profit. Brokerages increase target price up to Rs 5,192
InterGlobe Aviation, the parent company of IndiGo Airlines, witnessed a significant uptick in its stock price on Friday, with shares climbing almost 3% on the BSE to reach a new 52-week high of Rs 4,520. This surge followed a more than doubling of the company's Profit After Tax (PAT) to Rs 1,895 crore in the fourth quarter.
Business class coming soon: IndiGo to launch 'tailor-made' product for busiest routes
IndiGo, operated by Interglobe Aviation, announced plans to launch a new customized business product for India's busiest routes by the end of the year. CEO Pieter Elbers highlighted the company's commitment to innovation, aiming to provide more travel options as India's economy grows. The airline saw a 13% increase in domestic passengers, while competitors experienced a 6% decline.
Domestic air traffic rises to 1.32 crore in April
As many as 1,370 passengers were affected due to denied boarding, with airlines spending Rs 136.23 lakh towards compensation and facilities in this regard, as per the Directorate General of Civil Aviation (DGCA) data. The data showed there were a total of 32,314 flight cancellations in April and airlines spent Rs 89.26 lakh towards compensation and facilities.
AI-Vistara merger will strengthen presence in India: Singapore Airlines
The Singapore Airlines Group announced that the proposed merger between Air India and Vistara will strengthen its multi-hub strategy and enable continued participation in India's growing aviation market. Upon completion, SIA will hold a 25.1% stake in an expanded Air India Group. The SIA group reported a 24% rise in net profit for FY 2023-24 due to strong air travel demand. Vistara and Air India have begun integrating their frequent flyer programs, with Club Vistara merging into Air India's Flying Returns.
FA Airlines to buy regional airline FlyBig
Mumbai-based FA Airlines is set to acquire regional carrier FlyBig, which currently has four planes in its fleet. FA Airlines, incorporated in 2022, is focused on the aviation sector. The deal, for which an initial pact has been signed, will expand FlyBig's fleet by more than 20 aircraft once completed. Fauzia Arshi, an entrepreneur from the film industry, is the Managing Director of FA Airlines. India's civil aviation market is among the world's fastest-growing, with rising domestic air traffic. There are currently at least six scheduled regional carriers and six scheduled domestic airlines in India.
Can the aviation sector clock 15% plus earnings trajectory? Icra’s Kinjal Shah answers
ICRA's Kinjal Shah discusses the stable cost environment in the aviation industry with a 14% YoY decline in fuel prices, leading to a decline in net loss. She highlights growth opportunities in the domestic aviation industry and the significance of international operations for carriers. Further Shah says: "We would see two years of 8% to 13% growth for the aviation passenger traffic in the domestic sector."
Indian airlines to have 50% market share in international passenger traffic by FY28: CRISIL
CRISIL predicts Indian airlines to handle half of the nation's international air passenger traffic by 2027-28, up from 43% in the previous fiscal. This surge is driven by fleet expansion, new routes, and better domestic connectivity. Rising disposable incomes and government initiatives are fueling international travel growth.
Airbus order enough to have impact: IndiGo CEO Pieter Elbers
IndiGo's CEO Elbers announced the airline's entry into the long-haul aviation market due to strong domestic traffic. The decision includes an order for 30 Airbus A350-900 aircraft, with significant growth potential in the global market.
Domestic air traffic may touch 153.4 million in 2023-24: CAPA India
In 2023-24, Mumbai expects 153.4M domestic passengers, with international traffic of 70M. CAPA India revised figures in October 2023. India's aviation market shows rapid growth.
DIAL plans to tap overseas, domestic debt markets
As of now, the GMR Group has not finalised the date for the bond issue. It is in the preliminary stages of discussions with bankers, including HSBC and JP Morgan.
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