The Indigo crisis continues to impact passengers as operations struggle to return to normal. Airlines have confirmed that operations are expected to stabilise by December 10, but passengers remain frustrated amid delays and cancellations.


India's Aviation Minister Speaks At Rajya Sabha on IndiGo Choas

Indigo's meltdown over the past week that left thousands of passengers stranded at airports marks the worst aviation crisis in the country's history. More than 2,000 flights were cancelled and many more delayed, with the disruption to lives far more damaging than the individual stories doing the rounds.


IndiGo Chaos One of India's Worst Air Disruptions

IndiGo has been granted an extension to submit its show-cause response, bringing new developments in the ongoing regulatory process. In this video, we break down what the show-cause notice means, why the extension was granted, and how this decision could impact the airline and the aviation sector.

IndiGo Crisis: IndiGo Expects Flight Operations To Stabilise By December 10 

The global airline industry is poised for a remarkable resurgence as passenger traffic surges and local economies revive.&nbsp;

Willie Walsh, Director General of the International Air Transport Association (IATA), said that the industry is projected to achieve a net profit of $9.8 billion this year.&nbsp;

The projected revenue for the airline industry stands at a substantial $803 billion this year, with an average profit of $2.25 per passenger.

Speaking at the Annual General Meeting of the IATA, Walsh emphasised that the aviation industry is witnessing a remarkable recovery after the turbulence caused by the pandemic.&nbsp;

Passenger traffic has regained momentum and is currently surpassing 90 percent of pre-pandemic levels, indicating a strong rebound in air travel. This resurgence is attributed to people's eagerness to reconnect, explore, and engage in business activities, signaling a renewed confidence in the safety and convenience of air transportation.

The positive signs of recovery extend beyond passenger numbers, with airports experiencing increased activity and rising hotel occupancy rates. These indicators reflect the revival of local economies after the Covid-19 pandemic.&nbsp;

Navigating Through 'Stormy Weather'

While celebrating the aviation&nbsp;industry's recovery, Walsh also highlighted existing challenges.&nbsp;

Walsh emphasised the need for global standards in Sustainable Aviation Fuel (SAF) and urged prompt action to address supply chain concerns. As per reports, Walsh raised concerns regarding cost pressures and the impact of supply chain issues on airlines' operational capabilities.&nbsp;

Original Equipment Manufacturers (OEMs) have been identified as key stakeholders in resolving supply chain blockages that lead to increased costs and hinder the efficient deployment of aircraft.&nbsp;

He strongly pitched for establishing global standards in the Sustainable Aviation Fuel (SAF) book and claim system. Such a system would reduce carbon emissions, a pressing concern for the industry's sustainable growth.&nbsp;

Walsh also voiced his disappointment with politicians who have failed to deliver on their promise to halt financing for fossil fuels, as outlined in the COP26 agreement.&nbsp;

According to Walsh, decarbonizing aviation requires concerted efforts from governments and industry stakeholders to ensure the industry's sustainable future while simultaneously addressing climate change concerns.

The global airline industry is poised for a remarkable resurgence as passenger traffic surges and local economies revive. Willie Walsh, Director General of the International Air Transport Association (IATA), said that the industry is projected to achieve a net profit of $9.

The global airline industry is poised for a remarkable resurgence as passenger traffic surges and local economies revive. Willie Walsh, Director General of the International Air Transport Association (IATA), said that the industry is projected to achieve a net profit of $9.8 billion this year. The projected revenue for the airline industry stands at a substantial $803 billion this year, with an average profit of $2.25 per passenger. Speaking at the Annual General Meeting of the IATA, Walsh emphasised that the aviation industry is witnessing a remarkable recovery after the turbulence caused by the pandemic. Passenger traffic has regained momentum and is currently surpassing 90 percent of pre-pandemic levels, indicating a strong rebound in air travel. This resurgence is attributed to people's eagerness to reconnect, explore, and engage in business activities, signaling a renewed confidence in the safety and convenience of air transportation. The positive signs of recovery extend beyond passenger numbers, with airports experiencing increased activity and rising hotel occupancy rates. These indicators reflect the revival of local economies after the Covid-19 pandemic. Navigating Through 'Stormy Weather' While celebrating the aviation industry's recovery, Walsh also highlighted existing challenges. Walsh emphasised the need for global standards in Sustainable Aviation Fuel (SAF) and urged prompt action to address supply chain concerns. As per reports, Walsh raised concerns regarding cost pressures and the impact of supply chain issues on airlines' operational capabilities. Original Equipment Manufacturers (OEMs) have been identified as key stakeholders in resolving supply chain blockages that lead to increased costs and hinder the efficient deployment of aircraft. He strongly pitched for establishing global standards in the Sustainable Aviation Fuel (SAF) book and claim system. Such a system would reduce carbon emissions, a pressing concern for the industry's sustainable growth. Walsh also voiced his disappointment with politicians who have failed to deliver on their promise to halt financing for fossil fuels, as outlined in the COP26 agreement. According to Walsh, decarbonizing aviation requires concerted efforts from governments and industry stakeholders to ensure the industry's sustainable future while simultaneously addressing climate change concerns.

Aviation industry bounces back: Rising revenues and optimism take flight

As per a Reuters report, India is resisting giving more air traffic rights to the UAE. What are the implications? What's in store for India's aviation sector? Molly Gambhir tells you.

Gravitas: What's in store for India's aviation sector?

Things are looking up for India’s aviation sector. Air India placed a record order of 470 aircraft from Boeing and Airbus. India’s budget carrier Indigo might break the record as it plans to buy 500 passenger planes. Molly Gambhir tells you more.

Gravitas Plus: What’s happening in India’s aviation sector?

Air travel is fast recovering from the hit that it took during the covid-19 pandemic and nearly about four thousand flights took off every single hour. India alone has seen a tremendous growth in its aviation sector.

India's sustainable aviation mission: What does carbon neutral airport mean?

The Aviation sector is among the biggest carbon emitters and over the years governments have mult plans to cut down emissions from airplanes but they have reached no concrete solution yet

Airlines must slash emissions by end of this decade

In signs of recovery in aviation sector European low-cost airline Ryanair said its bookings looked very strong for the summer and the load factor should gradually rise to 94-95% in June-August.

Ryanair sees over 15 million passengers in May, summer bookings strong

As Germany lifted a ban on travellers from India, there are chances for the Indian aviation sector to revive soon. What is the overall scenario of aviation in India and how quickly it can be revived? Chief Commercial Officer of Vistara, Vinod Kannan talks to WION on all these issues.

World Business Watch: How is aviation industry going to recover post-pandemic?

The Singapore Airlines Group (SIA) has reported a record net loss of $3.2 billion for the financial year ended March 31.

Singapore airlines posts record $3.2 billion annual loss

British airline Virgin Atlantic, which has been hammered by the COVID-19 pandemic like much of the sector, is set to raise $222.75 million in new financing.

World Business Watch: Virgin Atlantic set to raise $222.75 Million in new financing

Bangladesh's aviation sector bit of a dire state due to the coronavirus pandemic. The countries only state-owned and as well as private airlines already incurred a loss of about 3.5 billion dollars.

Bangladesh's aviation sector crumbles, Experts say the industry is likely to suffer more

American airlines furloughed nearly 19,000 employees after a first federal payroll support package for airlines expired in October.

American Airlines begins recalling 19,000 furloughed workers

The grounding came after more evidence emerged indicating that the aircraft's key flight control software played a part in the two deadly crashes.

Boeing 737 Max resumes flights in US after 20-months

Watch today in World Business Watch: One of the world's biggest plane engine maker Rolls Royce shares trade at 16-year low value.

Plane engine maker Rolls Royce shares trade at 16-year low value

The company reported a net loss of RM305.2 million for the April-June quarter versus a net loss of RM207.1 million a year earlier.

Losses deepen at AirAsia X | Airline stops selling tickets for future dates

Hit by eroding traveler demand, owing to coronavirus hit lockdowns, Emirates is offering some pilots and cabin crew up to 4 months of unpaid leave. Watch report.

COVID-19 has hit aviation demand: Emirates offers up to 4 months of unpaid leave

There is an increasing consensus that traffic is unlikely to recover to 2019 levels until 2023-2024. The introduction of now-necessary processes will slow down the pace of most, if not all, ground-based activities associated with air travel.

Total recovery of aviation sector may take time

Boeing Co. is pulling the plug on its 747 jumbo jet. The 747 democratized global air travel in the 1970s but fell behind modern twin-engine passenger jets.

Boeing to end production of 747 jumbo jet

British Airways is set to cut more than a quarter of its jobs due to the coronavirus crisis, forecasting that passenger numbers will take years to return to 2019 levels. British Airways has 45,000 employees, including 16,500 cabin crew and 3,900 pilots, according to its website.

British Airways plans to cut up to 12,000 jobs | COVID-19 Pandemic

India is planning a rescue package worth as much as $1.6 billion for the aviation sector, which has been battered after the coronavirus outbreak forced countries to close borders and brought air travel to a near-halt, two government sources told Reuters.

The Finance Ministry is considering a proposal that includes the temporary suspension of most taxes levied on the sector, including a deferment of aviation fuel tax, said the sources, who have direct knowledge of the matter.

The rescue package, proposed by India's civil aviation ministry, is likely to be worth up to 100-120 billion rupees ($1.3-$1.6 billion), the two sources said.

"Taxes could be deferred till the coronavirus spread is contained and the aviation sector can come back to its feet," one of the sources said, adding that the companies could be permitted to pay the taxes interest-free in the next tax cycle.

The coronavirus has infected over 200,000 people and caused nearly 8,500 deaths in 164 nations, triggering emergency lockdowns and injections of cash unseen since World War Two. In India, more than 150 people have been infected and three have died.

Governments the world over are scrambling to rescue airlines that have been forced to park planes and cut jobs as the virus puts the brakes on travel. Airlines may need a bailout of more than $200 billion, the International Air Transport Association (IATA) estimates.

The Trump administration, earlier on Wednesday, sought approval from Congress for $50 billion in secured loans to US airlines to address the financial impact during the crisis.

Vistara, a joint venture of Singapore Airlines and India's Tata Group, and budget carrier GoAir have suspended their international operations. IndiGo, India's biggest carrier, has cancelled several overseas flights and may be forced to park some planes as domestic air travel also falls.

Global aviation consultancy CAPA's India unit said that regardless of any fiscal concessions and support the government may offer, most airlines will have to shrink their operations and the more vulnerable carriers may shutdown.

CAPA estimates that Indian airlines, excluding state carrier Air India, will report losses of up to $600 million for the January-March quarter, which could worsen if demand continues to fall.

"In the absence of serious and meaningful government intervention, such an outcome could lead to several Indian airlines shutting down operations by May or June due to a lack of cash," CAPA said in its March 18 report.

India is planning a rescue package worth as much as $1.6 billion for the aviation sector, which has been battered after the coronavirus outbreak forced countries to close borders and brought air travel to a near-halt, two government sources told Reuters.

India is planning a rescue package worth as much as $1.6 billion for the aviation sector, which has been battered after the coronavirus outbreak forced countries to close borders and brought air travel to a near-halt, two government sources told Reuters. The Finance Ministry is considering a proposal that includes the temporary suspension of most taxes levied on the sector, including a deferment of aviation fuel tax, said the sources, who have direct knowledge of the matter. The rescue package, proposed by India's civil aviation ministry, is likely to be worth up to 100-120 billion rupees ($1.3-$1.6 billion), the two sources said. "Taxes could be deferred till the coronavirus spread is contained and the aviation sector can come back to its feet," one of the sources said, adding that the companies could be permitted to pay the taxes interest-free in the next tax cycle. The coronavirus has infected over 200,000 people and caused nearly 8,500 deaths in 164 nations, triggering emergency lockdowns and injections of cash unseen since World War Two. In India, more than 150 people have been infected and three have died. Governments the world over are scrambling to rescue airlines that have been forced to park planes and cut jobs as the virus puts the brakes on travel. Airlines may need a bailout of more than $200 billion, the International Air Transport Association (IATA) estimates. The Trump administration, earlier on Wednesday, sought approval from Congress for $50 billion in secured loans to US airlines to address the financial impact during the crisis. Vistara, a joint venture of Singapore Airlines and India's Tata Group, and budget carrier GoAir have suspended their international operations. IndiGo, India's biggest carrier, has cancelled several overseas flights and may be forced to park some planes as domestic air travel also falls. Global aviation consultancy CAPA's India unit said that regardless of any fiscal concessions and support the government may offer, most airlines will have to shrink their operations and the more vulnerable carriers may shutdown. CAPA estimates that Indian airlines, excluding state carrier Air India, will report losses of up to $600 million for the January-March quarter, which could worsen if demand continues to fall. "In the absence of serious and meaningful government intervention, such an outcome could lead to several Indian airlines shutting down operations by May or June due to a lack of cash," CAPA said in its March 18 report.

India mulls up to $1.6 billion rescue plan for aviation sector after coronavirus

Seventeen people were killed when a small military plane crashed into a residential area in the Pakistani city of Rawalpindi early Tuesday, officials told AFP, in the latest disaster to hit the country’s troubled aviation sector. The plane crashed into a poor village near an upscale neighbourhood in the garrison city that is home to the army's headquarters, creating a fireball that lit up the night sky and terrified residents.

Pakistani military plane crashes in Rawalpindi; 17 killed

Of all the spheres of the economy at the end of NDA-1, aviation was one sector that was shining in terms of double-digit growth in passenger traffic for many years.

But that too had taken a bit of a beating towards the end, reflecting the adverse growth in the general economy. It would be instructive to remember that the aviation sector is a very high multiplier of both economic growth and employment and any downturn would impact the economy itself.

However, schemes like Regional Connectivity 2017, along with existing Group Dispersal Guidelines and the proposed International Connectivity Schemes will certainly give a fillip to the economy.

On the flip side, however, is the unfortunate decline and fall of Jet Airways, which had taken over the mantle of Air India as the country’s leading airline, both domestically and internationally.

Airlines constitute the heart of the aviation sector, without which airports and other allied sectors such as ground handling and tourism cannot thrive.

After Air India’s Rs 50,000 crore-plus debt, Kingfisher Airlines’ over Rs 14,000 crore and Jet Airways’ debt that is in excess of Rs 10,000 crore, the aviation sector appears to be in a financial mess.

While newer airlines like Indigo, GoAir, SpiceJet or Vistara will no doubt fill the vacuum and double-digit growth will soon be back, there is a need for the new government to go in for some deep introspection.

What is causing this distress? Is it only mismanagement, as in the case of Kingfisher or bad decisions and mismanagement by Jet Airways? Or is it also due to faulty government policies? The answer is not simple. There is, no doubt, mismanagement in the above three cases, but government policies have contributed to their woes.

Air India, an enigma, continues to operate on taxpayers’ money. It’s shooting itself in the foot by reducing its global distribution system operators, thereby slashing its catchment areas of passengers.

No serious attempt at its revival is being made either.&nbsp;

As far as the domestic sector is concerned, airlines work at a huge disadvantage. They are burdened with taxes and levies at one end and high Air Turbine Fuel (ATF) prices at the other. While an industry’s ideal cost of ATF should not exceed over 25 per cent of the total operating cost, in India due to oligopolistic nature of ATF supply, the domestic price is much higher than in other countries.

In addition, a central excise imposition of 14 per cent&nbsp;and sales tax levied by states on ATF, can be as high as 30%. Attempts to bring ATF under GST, cutting it down to 12 per cent&nbsp;has not been accepted by the GST Council.

Any deterioration of the exchange rate of rupee to the US dollar also impacts adversely on profitability. Deterioration in international fuel prices also plays a role. As a result of this toxic mix, the cost of operation in the domestic sector remains very high.

Compare this with the supply side in airline operations. With a very large order of new planes, the total capacity of seats is increasing by the month, but airlines are unable to increase ticket pricing in order to fill up the growing availability of seats. They, therefore, go for computer-based dynamic pricing, which causes passengers acute distress during holidays/festivals or calamities, when prices go through the roof.

With low-cost carriers now dominating the domestic scene, the model followed by full-service airlines is under stress.

All airlines in India send their aircraft to neighbouring countries like Sri Lanka or Thailand for mandatory inspections known as C&amp;D check. This billion-dollar business is being thrown away along with employment potential because of bureaucratic bungling involving the ministry of finance. In the normal scheme of things, Maintenance and Repair Organisation (MRO) should have been a captive business for the Indian industry but has been allowed to slip away. This also adds to the operational cost of airlines.

As about the airports, while much work has been done, there is still a lot more to do. The Airports Authority of India (AAI) is the custodian of all civil airports in India. It is correct to say that about a dozen airports are profitable, while the rest are cross-subsidised by AAI.

Airport improvement involves not just upgrading the terminals, but also the runway, navigational aids and equipment needed for safety and security.

Slowly, the AAI is leasing out bigger airports on a long term basis.

However, the lessee company is selected on the basis of the highest percentage of revenue it can share with AAI.

The Delhi International Airport shares 46 per cent of its revenue while Mumbai is a little less; newly-privatised airports are even higher. With such a high level of sharing, private airports charge airlines and users at higher rates, which again add to costs. Indian Airport charges are considered as one of the highest in the world by the IATA.

The new government should look at the aviation sector holistically, as a part of the economy, which is going to play a crucial role in economic development and is no more a sector for the privileged class only.

It is increasingly becoming a middle-class mode of travel and contributes to business and employment. Therefore, as a sector, there is a need to nurture it and not kill the hen that lays golden eggs, which seems to be the direction today.

These issues cannot be decided only by the ministry of civil aviation. It needs an inter-ministerial group headed by the finance minister to sort out the mess. 
&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-time-for-hard-decisions-2759742">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

&nbsp;

 
&nbsp;

Of all the spheres of the economy at the end of NDA-1, aviation was one sector that was shining in terms of double-digit growth in passenger traffic for many years.

Of all the spheres of the economy at the end of NDA-1, aviation was one sector that was shining in terms of double-digit growth in passenger traffic for many years. But that too had taken a bit of a beating towards the end, reflecting the adverse growth in the general economy. It would be instructive to remember that the aviation sector is a very high multiplier of both economic growth and employment and any downturn would impact the economy itself. However, schemes like Regional Connectivity 2017, along with existing Group Dispersal Guidelines and the proposed International Connectivity Schemes will certainly give a fillip to the economy. On the flip side, however, is the unfortunate decline and fall of Jet Airways, which had taken over the mantle of Air India as the country’s leading airline, both domestically and internationally. Airlines constitute the heart of the aviation sector, without which airports and other allied sectors such as ground handling and tourism cannot thrive. After Air India’s Rs 50,000 crore-plus debt, Kingfisher Airlines’ over Rs 14,000 crore and Jet Airways’ debt that is in excess of Rs 10,000 crore, the aviation sector appears to be in a financial mess. While newer airlines like Indigo, GoAir, SpiceJet or Vistara will no doubt fill the vacuum and double-digit growth will soon be back, there is a need for the new government to go in for some deep introspection. What is causing this distress? Is it only mismanagement, as in the case of Kingfisher or bad decisions and mismanagement by Jet Airways? Or is it also due to faulty government policies? The answer is not simple. There is, no doubt, mismanagement in the above three cases, but government policies have contributed to their woes. Air India, an enigma, continues to operate on taxpayers’ money. It’s shooting itself in the foot by reducing its global distribution system operators, thereby slashing its catchment areas of passengers. No serious attempt at its revival is being made either. As far as the domestic sector is concerned, airlines work at a huge disadvantage. They are burdened with taxes and levies at one end and high Air Turbine Fuel (ATF) prices at the other. While an industry’s ideal cost of ATF should not exceed over 25 per cent of the total operating cost, in India due to oligopolistic nature of ATF supply, the domestic price is much higher than in other countries. In addition, a central excise imposition of 14 per cent and sales tax levied by states on ATF, can be as high as 30%. Attempts to bring ATF under GST, cutting it down to 12 per cent has not been accepted by the GST Council. Any deterioration of the exchange rate of rupee to the US dollar also impacts adversely on profitability. Deterioration in international fuel prices also plays a role. As a result of this toxic mix, the cost of operation in the domestic sector remains very high. Compare this with the supply side in airline operations. With a very large order of new planes, the total capacity of seats is increasing by the month, but airlines are unable to increase ticket pricing in order to fill up the growing availability of seats. They, therefore, go for computer-based dynamic pricing, which causes passengers acute distress during holidays/festivals or calamities, when prices go through the roof. With low-cost carriers now dominating the domestic scene, the model followed by full-service airlines is under stress. All airlines in India send their aircraft to neighbouring countries like Sri Lanka or Thailand for mandatory inspections known as C&D check. This billion-dollar business is being thrown away along with employment potential because of bureaucratic bungling involving the ministry of finance. In the normal scheme of things, Maintenance and Repair Organisation (MRO) should have been a captive business for the Indian industry but has been allowed to slip away. This also adds to the operational cost of airlines. As about the airports, while much work has been done, there is still a lot more to do. The Airports Authority of India (AAI) is the custodian of all civil airports in India. It is correct to say that about a dozen airports are profitable, while the rest are cross-subsidised by AAI. Airport improvement involves not just upgrading the terminals, but also the runway, navigational aids and equipment needed for safety and security. Slowly, the AAI is leasing out bigger airports on a long term basis. However, the lessee company is selected on the basis of the highest percentage of revenue it can share with AAI. The Delhi International Airport shares 46 per cent of its revenue while Mumbai is a little less; newly-privatised airports are even higher. With such a high level of sharing, private airports charge airlines and users at higher rates, which again add to costs. Indian Airport charges are considered as one of the highest in the world by the IATA. The new government should look at the aviation sector holistically, as a part of the economy, which is going to play a crucial role in economic development and is no more a sector for the privileged class only. It is increasingly becoming a middle-class mode of travel and contributes to business and employment. Therefore, as a sector, there is a need to nurture it and not kill the hen that lays golden eggs, which seems to be the direction today. These issues cannot be decided only by the ministry of civil aviation. It needs an inter-ministerial group headed by the finance minister to sort out the mess. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Aviation sector is in a financial mess that needs to be sorted

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