CAPA

Indian airports need to review their pricing strategies and can substantially increase their profitability by garnering more non-aeronautical revenues, according to aviation consultancy firm CAPA India. India is the world's third largest domestic civil aviation market and air traffic is on the rise. Airlines are increasing their fleet, operating more routes while airports are also expanding their capacities. Airports operated on Public Private Partnership (PPP) mode generate more non-aero revenues compared to those operated by the Airports Authority of India (AAI), the consultancy said during a webinar on Thursday. Just five PPP airports -- Delhi, Mumbai, Bangalore, Hyderabad and Cochin -- accounted for 71 per cent of the total non-aeronautical revenue in India in FY2020, while handling 53 per cent of the total traffic, CAPA India said. Despite significant increases since privatisation, Indian PPP airports still have much more headroom to increase non-aero revenue to global levels,

Major domestic airlines can become world class carriers, says senior executive of CAPA India

AAI has started trials with remote digital towers, he added

Says 'out-of-the-box thinking' needed to develop Delhi, Mumbai, Bengaluru as transit hubs

Indian carriers expected to add 82 planes in FY25

As it looks to tap the growth opportunities and group synergies, Air India Express Managing Director Aloke Singh on Wednesday said the airline will focus on the cost side and transformation plans in 2024-25. Air India Express is in the process of merging AIX Connect, formerly AirAsia India. "In 2024-25, a lot of synergies will be unlocked... there will be a laser focus on the cost side," Singh said. The two airlines are part of the Tata Group, which is also in the process of merging Vistara with Air India. There will be cross feeds between Air India long haul flights and domestic short haul flights, he said and added that there is substantial growth coming in. With the network and the new fleet coming in, there will be a significant upside on the revenue and cost side, Singh said. Speaking at the CAPA India Aviation Summit 2024 in the national capital, Singh also said that for the next five years, he does not see any issue of bilateral flying rights impacting its growth.

The additional aircraft will cater to the high air traffic demand domestically and internationally, aviation consultancy firm CAPA India said on Friday

Earlier this month, cash-strapped SpiceJet announced it is going to raise a total of Rs 2,241.5 crore through issuance of equity and warrants

Adani Group says project on track, operations to commence by Dec 2024

Indian airport operators are projected to report 26 per cent rise in revenues at USD 3.9 billion in the next financial year, aviation consultancy CAPA India said on Wednesday. For 2023-24, air passenger traffic, including domestic and international, is expected to be 395 million, it said while presenting the outlook for the airports. Out of the total, domestic air passengers will rise to 320 million from 275 million this fiscal. During this period, the international air passenger count will increase to 75 million from 58 million. "India is forecast to see domestic airport pax rise to 700 million passengers, and international airport pax to 160 million passengers by FY2030," CAPA India said. It said Indian airports' revenue of USD 3.9 billion (Rs 32,390 crore) in the next fiscal will be 26 per cent higher than anticipated in 2022-23. The outlook was presented at the CAPA India aviation summit here. Stefano Barconi, Director General of ACI Asia Pacific, said airports' health was ..

Adani Airports on Wednesday said there is no rethink on the pace of expansion and it was following the investments as per plans submitted to the government, amid the parent group facing certain challenges in recent times. The comments from company's CEO Arun Bansal come against the backdrop of Adani Group facing challenges in the wake of a report by US-based short-seller Hindenburg Research. In January, the short-seller had accused the conglomerate of using offshore shell companies to inflate its listed companies' stock prices as well as of accounting fraud. It had also flagged concerns about Adani Group's Rs 2.3 lakh crore debt in the report. Adani Group has denied the allegations. Adani Airports is a part of the group's flagship Adani Enterprises Ltd. To a query on whether there is any rethinking in terms of pace of expansion or investments for airports business in the context of the challenges faced by the group, Bansal replied in the negative. "No. We have committed, submitte

At the CAPA India Aviation Summit 2023, Clark stated that the Indian market will grow, and there will be pressure on airlines that operate international flights from India

Turbine fuel cost and declining yields to put pressure on airlines, says CAPA India

With the fleet expansion, Air India is seeking to take on the likes of Emirates and Qatar Airways, which dominate lucrative routes from India to the US and Europe through their hubs in Doha and Dubai

According to CAPA India estimates, more than 100 aircraft (15 per cent of total fleet) of Indian carriers are on the ground due to supply chain and non-supply chain issues

However, since that month, the domestic traffic has been falling

Indian airlines are projected to record a consolidated loss of USD 1.6 to 1.8 billion in the next financial year, aviation consultancy CAPA India said on Monday. The full service carriers are expected to incur a loss of USD 1.1 to 1.2 billion. According to CAPA India, Indian airlines are estimated to have a net induction of 132 planes next fiscal and will take the total fleet of all carriers to around 816 aircraft. While announcing its outlook for 2023-24, CAPA India also said that more than 100 planes of various Indian carriers are on the ground due to supply chain and non-supply chain issues.

Indian carriers are likely to place orders for 1,500 to 1,700 planes in the next one to two years and Air India is expected to make the first move with a potential order for 500 aircraft, aviation consultancy CAPA said on Wednesday. The total commercial Indian fleet of around 700 aircraft is smaller than some of the world's largest individual airlines, CAPA said, adding that given the immense potential that exists, it stands to reason that there is a need to induct more aircraft. In a report, CAPA said the Indian market in the post-COVID era is attracting global attention as arguably the most promising aviation market. Almost every carrier in India is expected to order more aircraft in the next couple of years for fleet replacement as well as growth, given that the order book for most incumbent carriers could be considered conservative relative to the growth potential of the market over the next decade and beyond, it said. In India, air traffic recovery has been amongst the stronge

Indian airlines industry will continue to be sick unless there are policies in place to ensure that the operators have at least 4-6 months of cash kept in reserves for continuity of operations, according to global consultancy and aviation firm CAPA. CAPA said it estimates the domestic airline industry could post losses to the tune of USD 1.4-1.7 billion or more losses this fiscal. The two listed airlines, IndiGo and SpiceJet, have already reported losses of Rs 1,064.30 crore and Rs 789 crore, respectively, in the April-June quarter of the current fiscal. Financial fitness is a fundamental criterion of operating (globally)India is the only country where technically insolvent companies can expand, can continue to operate, Kapil Kaul, CEO for South Asia at CAPA, said at an industry event in Mumbai recently. He said going by the global practice, the airlines have to ensure that they have at least 4-6 months of cash reserves when no revenue is coming in while their air operator permits

Known for his decisiveness, new chief will have his task cut out as domestic competition heats up