DOMESTIC CARRIER
Airlines are mastering the art of upsell, offering more choices and flexibility with new fare plans
Both IndiGo and Air India are making it costlier to cancel or reschedule their flights, for those booking a basic fare ticket while lowering these cost for higher fare bracket topping it up with extras a basic fare-ticket.
Bengaluru Airport cargo volumes may rise 20% in FY25
Bengaluru's Kempegowda International Airport anticipates a 20% rise in cargo volume this fiscal, driven by enhanced connectivity and increased demand for perishable goods, according to sources familiar with the matter.
Regional airports found wind beneath their wings in FY24
India's hinterland air travel surged last year, driven by civil aviation ministry data and government schemes. Airports like Diu, Pantnagar, Tezpur, and Prayagraj saw significant growth, boosted by the Udan scheme and low fares. IndiGo and other airlines expanded services, with CFO Gaurav Negi highlighting the importance of regional routes for broader networks.
Bright future for air cargo sector; need to ensure faster turnaround time: Official
The Indian government is working on improving processes and ensuring faster turnaround time in the air cargo sector to tap its potential. The government is also developing logistics hubs to improve the ease of doing business. The air cargo sector accounts for nearly 10% of domestic carriers' revenues and is estimated to grow to USD 16.37 billion by 2027.
China deploys aircraft carrier off Philippine coast amid tensions over South China Sea
China's second aircraft carrier 'Shandong' has been deployed to patrol waters off the Philippine coast amidst growing tensions over territorial claims in the South China Sea, serving as a deterrent against perceived provocations. The carrier's presence is seen as a signal of China's resolve to protect its sovereignty amid escalating maritime conflicts with Manila. The deployment follows China's introduction of a new law authorizing its coast guard to detain foreign ships and crews in contested waters.
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.
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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.
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.
Domestic air passenger traffic grows 5.1 pc to about 138.9 mn in May: ICRA
In May, domestic air passenger traffic grew 5.1% YoY to 138.9 million, 14% higher than pre-Covid levels, as per Icra. The Indian aviation industry outlook is stable with a continued recovery in passenger traffic and stable cost environment, expecting the trend to continue in FY2025.
Domestic air traffic likely to touch 164 million in FY25
India's domestic air traffic is projected to increase by 6-8 per cent to 161-164 million this financial year, while international air traffic is expected to rise by 9-11 per cent to 75-78 million by March 2025. Domestic carriers are facing consolidated losses of $0.4-0.6 billion due to capacity shortages from around 130 grounded aircraft. This is excluding the profitable Indigo. The number of grounded aircrafts is expected to increase to 180, including those of Go First. Net inductions of 84 aircraft are anticipated, bringing the total domestic fleet to 812 by March 2025.
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.
Japan Airlines and IndiGo Agree on Codeshare Partnership; enables JAL to expand reach to 14 IndiGo destinations in India
Japan Airlines (JAL) and IndiGo announced a codeshare partnership benefiting customers with more travel options between Japan and India.
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.
IndiGo announces foray into business class after record profit
IndiGo said that business class will be available on the busiest routes of the country which sees heavy corporate traffic and will be operational before the end of this year. Coming August, around IndiGo’s anniversary, more details on product offering, launch date and routes will be unveiled.
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.
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."
Here's how China's Fujian aircraft carrier poses new challenges for Indian Navy
China's first domestically designed aircraft carrier, the Fujian, has completed its sea trials, showcasing advanced features like an integrated propulsion system and electromagnetic catapults. This development marks a significant stride in China's naval capabilities and underscores its efforts to enhance influence in the Indo-Pacific region. The Fujian's success paves the way for testing carrier-borne aircraft, including the J-35 stealth fighter, aimed for use on the Fujian. India, which operates two aircraft carriers, faces challenges in acquiring a larger carrier like the Fujian due to cost concerns, opting instead for a smaller carrier and considering new fighter aircraft acquisitions.
IndiGo in long haul for bigger market share
The company’s international expansion will be gradual given that the aircraft delivery is expected in 2027. A critical question is whether the airline will be able to retain the advantage of a low-cost carrier once it expands in international markets, which would increase its operating costs.
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.
Delhi HC allows lessors' plea seeking deregistration of all 54 Go First aircraft, restrains carrier from flying them
The Delhi High Court grants lessors' request to deregister Go First's 54 aircraft, restricting the airline from operating them and ordering the DGCA to aid in their export and provide certificate of airworthiness. The Resolution Professional prohibited from tampering with the planes and must provide comprehensive documentation to the lessors
Domestic air traffic touches new single-day high; crosses 4.71 lakh passengers
India's domestic air traffic reached a new single-day high of 4,71,751 passengers on Sunday, more than 14% higher than the average pre-Covid count of 3,98,579. The civil aviation ministry reported that domestic aviation is experiencing unprecedented growth due to policies, economic development, and low-cost carrier expansion.
Domestic air passenger traffic likely touched 15.4 crore in 2023-24: Report
The aviation industry expects a 13% growth in domestic air passenger traffic to 15.4 crore in 2023-24 with a reduced net loss. Supply chain challenges and engine failures pose near term headwinds.
Indian airlines to operate 24,275 weekly domestic flights in summer schedule
Indian airlines will increase weekly domestic flights by nearly 6% during the summer schedule starting March 31, with 24,275 departures per week from 125 airports. New airports like Azamgarh, Aligarh, and Chitrakoot are proposed by scheduled carriers, according to DGCA.
Domestic air traffic rises 4.8 per cent to 126.48 lakh in Feb
February domestic air traffic rose by 4.8%, reaching 126.48 lakh passengers. Airlines paid Rs 222.11 lakh for delays affecting 1,55,387 passengers. SpiceJet's market share dropped to 5.2%, while Air India's OTP was 56.4%.
Domestic air passenger traffic to surpass pre-Covid levels to reach 150-155 million this fiscal: Icra
Domestic passenger traffic expected to surpass pre-Covid levels. Stable outlook for aviation industry. Improved pricing power. International passenger traffic to reach peak levels. Momentum in traffic growth expected to continue. Average ATF price and cost structure of airlines remain important factors.
Indian carriers likely to have order book for 2,000 planes by March 2025: Report
Indian carriers are on track to have a whopping 2,000 airplanes in their order book by March next year, as per a report released on Friday. The report, by aviation research and consulting firm CAPA India, highlights the strong growth potential of both domestic and international air travel in the long term. Currently, Indian airlines have an order book for nearly 1,620 aircraft, which includes the recent announcement by Akasa Air of a 150 narrow-body Boeing 737 Max order.
Akasa Air adds two Boeing 737 MAX 8 aircraft to its fleet
Akasa Air recently expanded its fleet, adding two Boeing 737 MAX 8 aircraft, totaling 22 planes by the end of 2023. With Rakesh Jhunjhunwala's family as investors, the airline launched operations in August 2022. The new aircraft aim to strengthen operations and support the airline's upcoming expansion into international routes. Currently, Akasa Air serves 17 cities across India, connecting major destinations from Mumbai to Port Blair.
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