Mar. 21 – Mumbai International Airport (MIAL), currently handling approximately 30 million passengers per annum, is set to open its new Terminal 2 (T2) in September in a move that has been described as a “game changer” in regional aviation.
Mumbai , currently the worlds 44th most busy airport, will be adding another 21,000 square meters of retail space in its new terminal, parking for 5,300 cars, 44 horizontalators, and will showcase over 6,000 pieces of Indian art from the 8th to 19th centuries. Continue reading
Feb. 22 – AirAsia, Southeast Asia’s largest budget airline, is set to enter the Indian market in a joint venture (JV) with India’s Tata Group and Telestra. This marks the Tata Group’s first enterprise in the aviation industry since the 1930s.
India liberalized its civil aviation sector to foreign investment last September, and this has opened up the way for Kuala Lumpur-based AirAsia to submit a proposal to India’s Foreign Investment Promotional Board to create a JV. AirAsia will have a 49 percent stake in the business while Tata and Telestra will own 30 percent and 21 percent respectively.
The airline, which will reportedly have an initial investment of between US$20-US$50 million, will likely be based in Chennai on India’s east coast. Tata will only be an investor and will not have any operational roles in the JV. The three parties have already signed an agreement and will apply to the civil aviation regulator for a flying permit soon. Continue reading
By Ian Bhullar
Aug. 6 – As Jet Airways and SpiceJet post surprising profits for this quarter, hopes are raised for a partial recovery of India’s aviation industry.
Jet Airways released its quarterly profits last Friday, reporting INR247 million earnings between March and June. SpiceJet reported positive earnings earlier in the week. These profits are a great improvement over previous quarters: Jet Airways has not recorded profits in five quarters, and saw peak losses of INR1.23 billion a year earlier.
Reuters reports that the two airlines have been successful in plugging the gap left by other airlines more deeply affected by trouble in the overall industry. For this reason, however, Jet Airways’ profits may encourage pessimism more than optimism about the health of aviation in India. Continue reading
By Sofia Liska
Jun. 12 – Despite India’s rapid economic growth, conflicts and cultural norms continue to prevent further progress. In this case, Air India’s profits and reputation are the victims of pride. Two disputes have delayed an order of Boeing 787 Dreamliners, which remain in the U.S. state of Washington ready to fly to India. Continue reading
Apr. 12 – The authorization to permit overseas airline companies to invest in Indian carriers is expected to come with an all-inclusive 49 percent ceiling for foreign investments, as the government does not want India’s airlines to be majority foreign owned.
The present policy only stipulates up to 49 percent FDI in scheduled carriers, but does not give any indication on portfolio or foreign institutional investments. As a result, a listed airline company that has 49 percent FDI can have majority foreign holdings if some FIIs acquire stakes in the company. The Indian government gives a hint that it may consider the proposal urgently; all ministries were asked to send in their comments on the proposal by Wednesday afternoon, but so far there is no clarity. Continue reading
Apr. 10 – The International Air Transport Association (IATA) has just released data regarding the demand for domestic flights in 2011, with India growing at 12.3 percent last year, behind only Brazil’s growth rate of 17.9 percent.
The Indian results lagged behind the average YOY growth of 16.3 percent seen in recent years, however it still showed a strong performance given the weakness of the global economy. By comparison, air traffic expansion in China barely attained 5 percent growth last year, significantly down from 14.6 percent in 2010. Continue reading
Jun. 2 – German Chancellor Angela Merkel arrived in India on Tuesday May 31 for a two day visit, accompanied by four cabinet ministers, several high-ranking officials, members of parliament, and representatives of German businesses, educational institutions and training organizations.
Merkel’s visit to India is to fortify ties between India and German and look forward to greater common cooperation in the fields of environment, energy, security, infrastructure, vocational skills and high tech areas of defense for which agreements are likely to be signed during her visit. Continue reading
Jul. 8 – Authorities will soon begin talks on possibly raising foreign direct investment in local carriers to push New Delhi’s recently opened Terminal 3 into becoming an international aviation hub.
“This issue would be discussed in coming few days. A final view may be taken shortly,” Civil Aviation Minister Praful Patel said in a statement. Foreign investors are technically allowed to invest as much as 49 percent in local carriers but the government has been hesitant to allow this over security concerns. Continue reading