International Air Transport Association (IATA) chief economist Brian Pearce said that the problem of capacity is set increase in calendar year 2020. While lower fares have made flying affordable in India, airlines have started to complain about excess capacity in the market that is leading to lower fares for passengers, impacting the bottom line of airlines.
India Inc is looking to tighten its belt amid the economic slowdown as it gives up on jets.
Flights to US, Europe this holiday season may cost three times more on Jet’s exit. The India-London sector could see new flights, with Vistara and IndiGo possibly starting them next year, but other routes will have to wait. A Delhi-Paris ticket is priced at Rs 1,14,642 against Rs 40,020 in December last year, according to travel aggregator ixigo.
“We found that some of our officials were showing extra interest in auditing companies with their friends and family in it. We would want such officials to stay away from auditing such companies,” said a senior DGCA official, who did not want to be identified. Sources added that this order was reiterated after DG Arun Kumar came across such instances.
Airlines seem to be in a doom loop, with excess capacity and not enough places to fly aircraft profitably.
Ronojoy Dutta said the management is insulated from the promoters & is professionally run by the board.
The move is aimed to empower the passengers at a time when air passenger ridership numbers are rising.
The government has taken on Rs 29,400 crore of Air India’s total debt of about Rs 60,000 crore, leaving about Rs 30,600 crore on its books. Separately, its other liabilities amount to Rs 22,000 crore. Of the remaining debt of Rs 30,600 crore, about Rs 12,500 crore are against aircraft loans.
ICAO had recently asked India to make DGCA licensing authority for ATC officers. Earlier, Airports Authority of India (AAI), which is also ATC service provider, had been licensing ATCOs. DGCA will license all 2500 current ATCOs by December, according to a senior DGCA official.
Delhiites appear to be moving out of the city on short holidays to nearby hill stations and other cities such as Bengaluru and Mumbai not affected by severe deterioration in air quality. Bookings for other north Indian cities seemed to have declined, travel operators said. Airline bookings to Delhi have fallen 17% for travel between Oct 27 and Nov 5.
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