Tag: IATA

SpiceJet to begin freight operation ‘SpiceXpress’ on September 18

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indian low-cost airline Spicejet is planning to have four freighter aircraft in service this year, said Ajay Singh, managing director of the company.

The airline would operate the cargo services under the brand name ‘SpiceXpress’, said Singh, adding that it has a detailed plan for domestic as well as international routes.

The airline will launch the operations on September 18 and the first flight would be from the national capital to Bengaluru.

According to Singh, the company was seeing a good demand for the freight services.

Singh added that the four freighter aircraft will have a total capacity of 40,000 tonnes. The airline is expected to reach a capacity of near one lakh tonnes in the coming years.

SpiceJet would be the first scheduled domestic airline to start dedicated air cargo services in India. A Boeing 737-700 plane has been inducted as the first freighter aircraft.

As per the airline, the air cargo services would boost its ancillary business growth.

“To begin with, the air cargo operations will cover Delhi, Bengaluru, Guwahati, Hong Kong, Kabul and Amritsar,” the airline said in a release.  Among other items, the airline said it would ship perishables like farm fresh fruits and vegetables to the Middle East.

Jayant Sinha, the minister of state for civil aviation, said there are only five freighter aircraft in India currently and added that the ministry is working on a cargo policy. Sinha said the aviation cargo segment is growing by 10 percent.

The air cargo traffic in the country is expected to grow by 60 percent in the next five years, as per estimates noted by PTI.

According to a recent International Air Transport Association (IATA) report, cargo volumes from India hit the million-tonne mark last year and the country saw a year-on-year growth of nearly 17 percent.

India’s top air freight trading market is the UAE, which has a 30 percent share, followed by Qatar at 11 percent.

Mumbai and Chennai were among the world’s top 10 fastest-growing airports in freight terms, the IATA report said. Mumbai has seen a 18.1 percent growth while Chennai has seen a 17.2 percent.

Sinha said that India’s freight cargo segment is not seeing a growth as rapid as the passenger segment, reiterating the struggles the country has faced to up its game in its freighter operations.

The IATA report said India has its strength in two key air cargo markets – pharmaceuticals and e-commerce – which can help resurfacing the talk of freighters and tap the potential growth in the segment.

(With inputs from PTI)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government policies imposing ‘excessive costs’ on airlines in India, says IATA chief

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Government policies are imposing “excessive costs” on airlines in India and infrastructure constraints are limiting growth, IATA chief Alexandre de Junica said Tuesday even as he projected the country’s aviation sector to register 500 million passengers by 2037. Flagging various concerns about the Indian aviation sector, which is one of the fastest growing in the world, he said levying the Goods and Services Tax (GST) on international air tickets violates ICAO principles.

The head of the IATA, a grouping of more than 280 airlines, also said the steep rise in fuel prices and fall in the rupee value are putting “acute pressure on profits” of airlines. Air India, Jet Airways and Vistara are also IATA members.

In India, infrastructure constraints limit growth while government policies impose excessive costs, he added.

“If we can comprehensively fix jet fuel and infrastructure issues, India will be primed to take a giant step forward in the world of aviation,” he said at a conference here.

“We have long made our case that applying GST to international tickets violates ICAO principles and India’s international obligations,” de Juniac said. Further, he said these deviation from global standards may have a short-term revenue benefit for the government but it weakens India’s competitiveness by raising the cost of connectivity.

The ICAO is a global aviation watchdog.

At present 5 per cent and 12 per cent Goods and Services Tax (GST) are levied on economy and business class air tickets, respectively. While fuel accounts for about 24.2 per cent of an average airline’s cost structure, the IATA chief said that in India, it is 34 per cent and pitched for regulating “transparency in pricing of jet fuel”.

“All airlines are suffering from the rise in fuel prices. And India’s regulatory and tax framework around fuel hits airlines serving this market even harder,” he noted.

There is no real competition for fuel suppliers at airports and hence there is little incentive to keep prices competitive, he said, adding that on domestic flights, “fuel is subject to excise duties and state taxes of up to 30 per cent”.

“The lack of competition in fuel and lack of true open-access to on-airport fuel infrastructure is strangling the lifeblood from the airlines. “If you kill the goose that lays golden eggs, there are no more eggs!,” de Juniac said.

The chief of International Airport Transport Association (IATA) said that by 2037, it expects 500 million passengers to “travelling to, from and within India” which is treble that of today’s numbers.

Noting that “band aid” solutions would not do the job in addressing the infrastructure problems in the aviation sector, de Juniac said that privatisation of airports must balance the interests of passengers, airlines and the community.

Citing “bitter experiences” of Brazil and Australia, de Juniac said that selecting the company that simply proposes the highest concession fee does not yield good long-term results.

India’s civil aviation sector has recorded 50 months of double-digit growth and it can be “very easily maintain (that) for next 50 months, provided that all nuts and bolts are in place”, Civil Aviation Secretary R N Choubey said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IATA chief says it’s very difficult to make money in India, expects more delays to Navi Mumbai airport

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India is a challenging place to do business, the head of the International Air Transport Association (IATA) said, adding that poor infrastructure and government policies add to the rising cost burden for airlines.

“IATA members tell me it’s very difficult to make money in India … India is a challenging place to do business because of poor infrastructure and government policies impose excessive cost,” Alexandre de Juniac, CEO General of IATA, an airline industry lobby group, said at the International Aviation Summit on Tuesday.

The IATA represents more than 280 airlines in different parts of the world. Its members include Air India, Jet Airways and Vistara.

According to de Junaic, India’s aviation industry is showing contrast as on one hand there are infrastructural and economic issues plaguing the sector while on the other, airline companies are busy buying planes to meet the demand.

With a surge in domestic air travel demand in India, the country’s airlines are gearing up for a rise and have ordered around 1,000 aircraft over the next eight years.

But despite traffic growth, the financial outlook for domestic airlines has deteriorated dramatically since January.

The domestic airlines industry is expected to post higher losses at $1.65-1.90 billion this fiscal year, up from projected $430-460 million, amid the headwinds due higher costs and lower yields, the India unit of Sydney-based Centre for Asia Pacific Aviation (CAPA) Monday said in its Mid-Year Aviation Outlook 2019.

de Juniac also criticised about the ongoing delay in opening the Navi Mumbai International Airport.

“Two-decade delay in Navi Mumbai airport … No one expects Navi Mumbai (airport) to open by 2019,” said de Juniac.

The Navi Mumbai airport, a much-delayed project, was first proposed in 1997 as a secondary airport to support the busy Mumbai airport.

Estimated to cost Rs 3,000 crore, the Navi Mumbai airport received the government’s approval only in 2007 but has missed several deadlines owing to political indecision, issues of environmental clearances and the funding.

The airport is being developed under a public-private partnership model between GVK Group subsidiary Mumbai International Airport and City and Industrial Development Corporation of Maharashtra Ltd as the project implementation agency.

IATA chief also flagged concerns over levying goods and services tax (GST) on overseas air tickets, saying it violates international norms and also weakens the competitiveness of carriers.

“It is wrong to apply GST to international tickets. It contravenes international agreements to which India is party,” de Juniac told news wire PTI in an interview in July.

The GST rate is 5 percent and 12 percent on economy and business class tickets, respectively.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Contrary to IATA’s forecast, Jayant Sinha says India planning for a billion trips in next 20 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Minister of state, civil aviation, Jayant Sinha on Tuesday said that while IATA has forecast 500 million trips in the next 15-20 years for India, the country’s aviation sector is preparing for a billion trips.

He was speaking at the International Aviation Summit held in New Delhi.

Sinha said that the airfare in the country was less than that of an auto-rickshaw.

“You’ll ask how is that possible? When two people take an auto-rickshaw they pay fare of Rs 10 which means they’re charged Rs 5/km but when you go by air you are charged Rs 4/km,” he said.

Today airfare is less than that of an auto-rickshaw. You’ll ask how is that possible? When two people take an auto-rickshaw they pay fare of Rs 10 which means they’re charged Rs 5/km but when you go by air you are charged Rs 4/km: Jayant Sinha, MoS Civil Aviation (03.09.2018) pic.twitter.com/orbwOvdDLJ

— ANI UP (@ANINewsUP) September 4, 2018

Besides, Sinha also contradicted the claims of Alexandre de Juniac, director general and CEO of IATA who claimed that India had a poor infrastructure for aviation and that it was challenging to do business in the country. In reply, Sinha said that the country was building new terminals at 12-15 airports.

Junaic said there is a contrast in India’s aviation industry. On one hand, there are infrastructural and economic issues, on the other, the industry is trying to up their game by airlines ordering over 1000 aircraft in the next eight years, he said.

Earlier on August 30, in an interview with CNBC-TV 18, Sinha had said that the airline industry was going through a cyclical downturn due to various factors like yields, oil prices, interest rates and currency.

However, he assured that the ministry was working hard to be able to provide a supportive policy environment for the industry so that it can get through this downturn well and in a healthy fashion.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s July domestic air traffic up 18%, says IATA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India’s domestic air passenger traffic grew in double digits for the 47th consecutive month in July, a global airline association said on Friday.

According to the International Air Transport Association (IATA), India’s domestic air passenger volume measured in revenue passenger kilometres (RPK) was the highest among major aviation markets like Australia, Brazil, China, Japan, Russia and the US.

As per the data, India’s domestic RPK in the month under review rose by 18.3 percent in July compared to the corresponding month of the previous year.

On a sequential basis, the growth has gone up from June’s rise of 17.6 per cent.

“The India domestic market topped the growth chart for the 12th time in 13 months in July, and posted its 47th consecutive month of double-digit growth. Meanwhile, China’s growth performance wasn’t far behind that of India, with domestic RPKs up 14.8 percent compared to July 2017,” IATA said in its global passenger traffic results for July 2018.

“Demand continues to be supported in both cases by structural changes, including ongoing rises in living standards, as well as sizeable increases in the number of airport connections within the respective countries. The latter translates into time savings for passengers and has a similar stimulatory impact on demand as reductions in fares,” IATA said.

India’s domestic passenger traffic growth was followed by that of China at 14.8 percent and the Russian Federation at 10.8 percent.

In terms of capacity, India’s domestic available seat kilometres (ASK) — which measures available passenger capacity — climbed higher by 12.2 percent in July, and that of China’s 14.3 percent growth and Russian Federation 10.2 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Qatar Airways boss apologises for remarks on women CEOs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The head of Qatar Airways apologised on Wednesday for saying that a woman could not do his job.

Qatar Airways Chief Executive Akbar Al Baker said his remarks at the closing of a global airlines gathering on Tuesday had been intended as a joke and taken out of context.

He defended his airline’s record of gender diversity, saying 44% of its staff were female including some in senior positions.

“Quite frankly I think the press took it out of context. They … blew it out of proportion. It was just a joke. I didn’t mean it in the way it was meant to be … I apologise for it,” Al Baker told a CAPA-Centre for Aviation conference in Sydney.

Al Baker’s earlier comments had come at a news conference after a meeting of airlines group International Air Transport Association, moments after he was elected as its chairman.

The issue of gender imbalance in aviation was a hot topic at the annual meeting of IATA, only six of whose 280 member airlines have female chief executives.

Asked at Tuesday’s news conference about female employment among Middle East airlines, and why his job as chief executive could not be done by a woman, al Baker said, “Of course it has to be led by a man because it is a very challenging position”.

He later said Qatar Airways was the first carrier in the region to have female pilots.

The remarks drew criticism on social media.

Al Baker is one of the airline industry’s most outspoken and controversial figures, known for blistering and often humorous criticism of rival airlines and planemakers but who has also drawn criticism for being insensitive or disrespectful.

In 2017, he apologised after calling US flight attendants “grandmothers” during a trade row with US airlines, prompting an airline union to accuse him of sexism and age discrimination.

In 2014, Qatar Airways defended policies on pregnancy and marriage for cabin crew after coming under fire over working conditions in the conservative Gulf emirate.

Asked at Wednesday’s CAPA conference whether he truly believed that only a man could do his job, Al Baker said, “No, I don’t believe that. As a matter of fact (at) Air Italy the majority shareholder has shortlisted women to be CEO and as minority shareholder we are actively encouraging that.”

Sharing a podium, the head of British Airways owner IAG, Willie Walsh, said the industry had a long way to go in promoting women, starting with IATA, a quasi-international organisation with two women on its 31-person board.

“This whole debate should encourage more,” Walsh said.

“If you look at the board it is predominantly middle-aged white men from Europe. We have more diversity on the board now than we have had for a long time, and we have to strive to improve that situation.”

The gender row comes amid a deeper debate about whether airlines based on different national social models, recruitment policies and wage structures can compete on equal terms.

US and some European airlines have accused Gulf carriers of unfair competition based on subsidies and social policies, but Walsh – whose group counts Qatar Airways as a shareholder – said he believed Gulf airlines competed on an equal footing.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Air traffic strikes bigger threat than fuel prices in 2018, IAG says

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Air traffic control strikes are more of a threat to European airlines this year than a rise in fuel prices, the chief executive of British Airways-owner IAG said on Tuesday.

Global airlines have slashed their forecast for industry profits in 2018 due to a spike in fuel costs, but in Europe, there is an additional threat to profits from the cost of flight cancellations associated with air traffic control (ATC) strikes.

“From a European context, the thing most impacting is ATC strikes and the ongoing ATC environment which is a mess,” IAG CEO Willie Walsh told the CAPA-Centre for aviation summit in Sydney.

“It’s destroying traffic through Europe.”

European airline industry body A4E has estimated the economic cost of ATC strikes in the European Union was 13.4 billion euros ($15.7 billion) between 2010 and 2017.

Ryanair , a rival European airline, said earlier on Tuesday that ATC strikes and shortages caused it to cancel 1,100 flights in May compared with 43 in the same month last year.

“It’s really a significant issue. We thought it would get better in 2018 but it’s getting worse,” Walsh said.

France has been a particular problem area for airlines, where public sector workers have staged a series of protests over the government’s economic reforms.

IAG’S airlines, which also include Iberia, Aer Lingus and Vueling, are having to spend more on fuel to travel via alternative routes to bypass French airspace, Walsh said.

“We end up paying compensation to customers. It’s completely outside our control,” he added, saying millions of passengers were affected and it cost airlines tens of millions of pounds.

Walsh said that because IAG was hedged for this year, he wasn’t as concerned about fuel prices for 2018, but the higher prices would be a challenge for 2019.

“It’s much higher than we expected it to be,” he said.

The International Air Transport Association (IATA) has said rising fuel costs will hurt industry profits, cutting forecasts by 12 percent. IATA expects an average oil price of $70 a barrel this year, up from $54.90 last year and its previous prediction of $60.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Air traffic control strikes are a bigger threat than fuel price, says British Airways owner IAG

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Air traffic control strikes are more of a threat to European airlines this year than a rise in fuel prices, the chief executive of British Airways-owner IAG (ICAG.L) said on Tuesday.

Global airlines have slashed their forecast for industry profits in 2018 due to a spike in fuel costs, but in Europe, there is an additional threat to profits from the cost of flight cancellations associated with air traffic control (ATC) strikes.

“From a European context, the thing most impacting is ATC strikes and the ongoing ATC environment which is a mess,” IAG CEO Willie Walsh told the CAPA-Centre for aviation summit in Sydney.

“It’s destroying traffic through Europe.”

European airline industry body A4E has estimated the economic cost of ATC strikes in the European Union was 13.4 billion euros ($15.7 billion) between 2010 and 2017.

Ryanair (RYA.I), a rival European airline, said earlier on Tuesday that ATC strikes and shortages caused it to cancel 1,100 flights in May compared with 43 in the same month last year.

“It’s really a significant issue. We thought it would get better in 2018 but it’s getting worse,” Walsh said.

France has been a particular problem area for airlines, where public sector workers have staged a series of protests over the government’s economic reforms.

IAG’S airlines, which also include Iberia, Aer Lingus and Vueling, are having to spend more on fuel to travel via alternative routes to bypass French airspace, Walsh said.

“We end up paying compensation to customers. It’s completely outside our control,” he added, saying millions of passengers were affected and it cost airlines tens of millions of pounds.

Walsh said that because IAG was hedged for this year, he wasn’t as concerned about fuel prices for 2018, but the higher prices would be a challenge for 2019.

“It’s much higher than we expected it to be,” he said.

The International Air Transport Association (IATA) has said rising fuel costs will hurt industry profits, cutting forecasts by 12 percent. IATA expects an average oil price of $70 a barrel this year, up from $54.90 last year and its previous prediction of $60.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IATA tells Indian govt to stop taxing international air tickets

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Calling attention to India’s practice of taxing international tickets, the International Air Transport Association (IATA) called for governments to facilitate the growth of global connectivity by avoiding creeping re-regulation and maintaining the integrity of global standards.

“India taxes international tickets in contravention of ICAO (International Civil Aviation Organization) resolutions,” the airline group said on Monday.

India helped develop ICAO resolutions prohibiting tax on international tickets, IATA’s Director General and Chief Executive Officer Alexandre de Juniac said adding that it is unacceptable that global standards are being ignored by the very governments that created them.

Taxing international tickets is against rules of ICAO, a specialised body of the United Nations.

Yet it persists in taxing international travel, de Juniac said, apparently referring to the imposition of Goods and Services Tax (GST) and enhancement of its rates on international air tickets, especially business class.

The Indian government had announced the implementation of GST from July 1, 2017. The tax covers airline products and services including tickets, ancillary, change, refund and other products and fees.

“Smarter regulation needs to counter the trend of creeping re-regulation. Global standards must be maintained by the states that agreed them,” said de Juniac.

De Juniac was presenting a report on the air transport industry at the opening session of the 74th IATA Annual General Meeting and World Air Transport Summit, which began on Monday.

The IATA, which represents about 280 carriers, said the industry is expected to post a $33.8 billion profit this year, 12% below a previous forecast of $38.4 billion.

But passenger yields, a proxy for air fares, are expected to rise by 3.2% this year, the first annual gain since 2011 as a stronger global economy drives growth in demand, IATA said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow