Aviation

Indian Air Traffic Up 30.8 Percent in September

Oct. 16 – In another sign of India’s emerging from the global downturn, and a signal of a now booming Indian economy, domestic air travel in the country grew by 30.8 percent in September over the same figures last year.

Over 3.5million fliers took to the skies last month, itself the fourth consecutive month that air traffic volume has increased.

The economic recovery and a new flush of liquidity had paved the way for many fliers to return to the skies, a report in DNA newspaper said. Air India, Jet Airways, Jetlite, SpiceJet, IndiGo, GoAir and Kingfisher Airlines all reported increased volumes of traffic.

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Kingfisher to Add More Routes

Oct. 1 – Kingfisher Airlines, rapidly challenging Air India’s dominance in the aviation industry, has announced it will be adding new international routes from next year to its existing roster to Dubai, Hong Kong, Thailand, London and Singapore.

Speaking to the media on the sidelines of the company’s 14th annual general meeting, Vijay Mallya, chairman and CEO of the company, said that the company was “looking at new routes only from next year,” but that the company needed to be cautious. “In the domestic market, Kingfisher intends to launch services to Ludhiana (Punjab) and Pantnagar (Uttarakhand) which till date had no proper air connectivity,” he said. Continue reading →

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Air India Considers 15-Day Flight Suspension Due to Protests

Sept. 29 – State-owned Air India may consider suspending airline operations for 15 days after protests over pay issues reached a standstill.

The Economic Times reported that about 40 Air India flights were canceled on Saturday when scores of executive pilots reported sick in protest of the airline’s decision to cut performance incentives by 50 percent for those receiving incentives of Rs 200,000 or more a month.

For pilots receiving bonuses of up to Rs 10,000 a month, incentives will be cut by 25 percent as part of the airlines measures to drastically lower costs and apply for a government bailout. Continue reading →

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Indian Domestic Air Traffic Up 26% in August

Sept. 15 – Over 3.6 million passengers took to the skies across India last month in a 26 percent increase from the same period last year.

According to the Times of India, this is the first time in 12 months that double digit growth has been recorded as all preceding months had seen decreases in domestic flyers. Continue reading →

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FDI Proposal for the Airline Industry Now on Hold

Aug. 26 – A proposal made by the civil aviation ministry that would have allowed foreign carriers to buy a 25 percent stake in India’s local carriers have been put on hold due to security concerns.

The proposal was made to give local carriers access to foreign funding after severe losses in the industry. Currently, foreign carriers are not allowed to directly or indirectly hold equity in local airlines although other foreign investors are allowed to own up to 49 percent in Indian carriers.

Moreover, foreign direct investment from helicopter operators and ground-handling companies in local companies are allowed. “Because of the turmoil in the aviation sector, an early decision on allowing foreign carriers to invest in domestic airlines is not expected. There are various pros and cons of the decision and they have to be taken into account before taking a call,” a senior civil aviation ministry official told The Economic Times.

Continue reading →

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Airport Authority of India to be Converted into a Public Company

Aug. 5 – The Civil Aviation Ministry of India plans to convert the Airport Authority of Indian (AAI) into a public company as a way of raising funds.

The ministry will amend the laws contained in Airport Authority of India Act, the principal act governing various airports in India. By converting the AAI into a public company, funding will become easier and the AAI will be able to raise money from the primary and subsequently from secondary market. The amendment is expected to be placed before the parliament by 2010. Continue reading →

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India to Permit Foreign Airlines to Invest in its Carriers

May 26 – India’s civil aviation ministry is revisiting proposals to permit foreign airlines to invest directly in its own carriers.

Currently, foreign investment of up to 49 percent is permitted in the sector, however this is only open to non-aviation companies. With India’s three major carriers – Air India, Jet Airways and Kingfisher – expected to post cumulative losses of about US$1.6billion this year, the proposal to relax FDI restrictions and open the market directly to foreign airlines is seen as one way to get in much needed investment and improvements to the carriers bottom lines. Continue reading →

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Jet Airways to Begin Low-Fare Domestic Service

May 8 – Jet Airways, India’s second-largest airline, is now offering cheaper tickets on selected domestic routes to attract business travelers.

The new no-frills service called Jet Airways Konnect begins today with 19 routes. “It will be offered to 38 destinations where Jet Airways flies and where JetLite does not normally operate,” Chief Commercial Officer Sudheer Raghavan told WSJ. “The new no-frills, low-fare should help raise load factors of Jet Airways on (those) routes by 30 percent.”

Continue reading →

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