Akasa Air Offers Hefty Pay Raises to Pilots

Air India has entered into an interline partnership with Bangkok Airways that will allow the Tata Group-owned airline’s passengers connections to 10 Southeast Asian destinations beyond the Thai capital. 

The overall nights booked on Airbnb in India have grown by almost 70% in 2022 as compared to pre-pandemic levels while domestic nights grew by 110%.

Antitrust watchdog Competition Commission of India (CCI) has approved Tata group’s plan to merge its full-service carriers Air India and Vistara. 

Indian carriers have occupied a lion’s share of international air traffic, which is more than pre-Covid times, as per data released by India’s aviation watchdog Directorate General of Civil Aviation (DGCA). This is testament to the fact that India could rank among the top three markets for outbound travel in the coming years. Leading this expansion in market share in low-cost carrier Indigo. Passengers carried on international flights operated by Indian carriers accounted for 43.5 percent of total overseas travel in the fourth quarter of 2022, up from 39.2 percent in the corresponding period of 2019. In 2020, during the same period, the market share of Indian carriers rose to 65.3 percent, and in 2021, the share of Indian carriers in the total international passenger traffic stands at 49.6 percent. Out of the 30 Indian cities from where international passengers embark/disembark, five Indian cities accounted for approximately 70.2 percent of international passenger traffic. Delhi tops the position in the category with a share of 28.3 percent, followed by Mumbai at 19.8 percent share and Chennai at 8.5 percent share). 

As India plans to increase connectivity to the rest of the country, the government has approved 21 greenfield airports in smaller cities. A total of 11 such airports are operational so far, the latest being the Shivamogga airport in the south Indian state of Karnataka. Since 2018, eight airports, namely Pakyong (Sikkim), Kannur (Kerala), Kalaburagi (Karnataka), Sindhudurg (Maharashtra), Kushinagar (Uttar Pradesh), Orvakal (Andhra Pradesh) and Mopa (Goa) airports have been operationalized apart from Shivamogga. The government of India has formulated the greenfield policy for construction of greenfield airport, for which the state government or airport operator has to identify the site and get the feasibility study conducted for construction of airport. Greenfield projects are initiated on undeveloped ground and do not include the renovation or demolition of an existing building. There are no constraints from any previous work on the ground. The government has also granted site clearance for construction of three greenfield airports — Alwar in Rajasthan, Singrauli in Madhya Pradesh and Mandi in Himachal Pradesh. The responsibility of implementation of airport projects including funding of the projects rests with the concerned airport developer including the respective state government in case it is the project proponent. With India’s passenger traffic expected to double by 2030, International Air Transport Association (IATA) expects India to be the world’s third-largest air passenger market by 2030. In the post pandemic recovery, the civil aviation industry in India has emerged as one of the fastest-growing industries.

India will invest around $12 billion over the next two years in airports, aircraft and recruitment to meet the booming demand for air travel. The country aims to increase the number of airports from the present 148 to 220 by 2025, for which private builders will contribute roughly $9 billion, with the balance coming from the government-run Airports Authority of India. It entails new terminal construction, greenfield projects, and refurbishment of existing buildings, including old military airfields from the colonial era, as per a Bloomberg report. “We need to put in place the civil aviation infrastructure and capabilities that by 2047 would be able to support a $20 trillion economy within India,” said the country’s civil aviation minister Jyotiraditya Scindia at the ongoing CAPA India Aviation Summit in New Delhi. Scindia said passenger capacity at India’s six major airports is expected to grow to 420 million in four years from 192 million today, and Indian carriers’ fleet will grow to 2,000 aircraft in five years from 700. Additionally, India has eased leasing rules for airlines to lease more aircraft to address aircraft shortages as travel rebounds from the pandemic. He also highlighted how India had tweaked its airplane leasing program to enable airlines to add more aircraft to meet passenger demand, including more “wet leasing,” or renting of planes with crew, for domestic and international routes. Tata Group-owned Air India last month announced a record order for 470 jets and is due to take another 25 leased aircraft.

In line with its modernization drive, the Indian Railways has confirmed it will redevelop Thrissur railway station — in the south Indian state of Kerala — with airport-like infrastructure at a budget of $36.2 million to upgrade passenger amenities. “The modernization of Thrissur railway station will be completed by 2025. The action is taken keeping in mind the cultural heritage of Thrissur and the importance of Thrissur Pooram. The railway station will have a wide range of facilities, including a supermarket and a rest centre,” said PK Krishnadas, chairman of the railway ministry’s passenger amenities committee. Having started some time back with the modernization of Gandhinagar Capital railway station in Gujarat, Indian Railways’ spate of station beautification across the country now also includes New Delhi railway station, Bengaluru cantonment, Mumbai’s Chhatrapati Shivaji terminus, Ahmedabad junction, Chennai Egmore and Udaipur railway station, among others. The goal is to develop self-sustainable railway stations with world-class amenities, high standards of safety, security, comfort, user-friendly passenger facilities, and value-added services.

Indian airlines are expected to record a consolidated loss of $1.6 to 1.8 billion in the financial year 2023-24 ending March 31, 2024, according to aviation consultancy CAPA India. The full-service carriers are predicted to incur a loss of $1.1-$1.2 billion. With a net induction of 132 planes next fiscal, Indian airlines are estimated to take the total fleet of all carriers to around 816 aircraft. However, more than 100 aircraft from different Indian carriers are grounded as a result of supply chain and other issues. Highlighting the potential for growth in aviation, India’s civil aviation minister Jyotiraditya Scindia said that it was time for India to look at manufacturing aerospace products. He added that the aggregate fleet size of domestic carriers is estimated to reach around 2,000 aircraft over the next five to seven years. He claims that by the end of this year, up to 15 Flying Training Organizations (FTOs) could be established, bringing the total number of such organizations to 50 from the current 35. He emphasized the expansion of the drone industry, stating that it is projected to reach a value of approximately $40 billion by 2030 and produce about 250,000 million employees. All industries have an S-shaped evolution curve, and the minister noted that India is currently in the “infancy and growth phase” of its civil aviation industry.

India’s largest private airport operator — Adani Airports will bid for about a dozen more airports in the country to expand its footprint in the world’s fastest-growing aviation market, confirmed the company’s chief executive officer Arun Bansal. “India will have 1 billion air passengers by 2040, with passenger traffic growing at a compound annual growth rate of 8.5 percent over the next 20 years,” he said. On their strategy to acquire more airports in the country, Bansal remarked, “Our strategy is simple, to create a scale [of operations]. If the bid condition is right, we will bid.” The Indian government recently privatized six airports — Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram — all of which were won by Adani Airports. Adani currently manages seven operational airports including Mumbai’s Chhatrapati Shivaji Maharaj International Airport and is also developing the Navi Mumbai airport in Maharashtra. The airport is expected to handle 90 million passengers per year by 2036. In the first phase, which is scheduled to be completed by December 2024, the airport will have a passenger handling capacity of 20 million. All of Adani’s airports have experienced significant growth in passenger traffic in recent years. The company’s six airports together saw a 92 percent increase in domestic passengers and a 133 percent increase in international passengers. The number of domestic flights increased by 58 percent, while international flights increased by 61 percent.

Air India has become the latest entrant to hop on to the bandwagon of ChatGPT. Doing away with an outdated manual pricing system, the airline announced recently that it would be shifting to an algorithm-based software for setting airfares to extract more revenue from each flight. Its modern revenue management software continuously anticipates where people want to visit and how much each flyer is willing to pay, rather than the old method of having one fare for each block of seats — thereby ensuring higher revenue per flight. The airline will reportedly use GPT4 — the latest version of the revolutionary chatbot — to improve the FAQ section, pilot briefings, and more. Speaking at an event recently Air India CEO Campbell Wilson said that the use of the chatbot will not be “gimmicky”, but will be to actually enhance the airline’s functions. Last month, Air India partnered with cloud-based software company Salesforce to transform its customer experience. In another wheel of change under its new owner Tata, Air India is also testing ChatGPT to replace paper-based practices. “Frankly the system is almost so bad it’s good,” Wilson said, adding that this offered the chance to start from scratch rather than “jury-rig” existing architecture. The Tata Group is also integrating the Tata-related airlines, with the merger of Vistara with Air India and the integration of low-cost carriers Air India Express and AirAsia India. As part of its expansion plans, the Tata-owned airline last month had placed a record deal of 470 aircraft — 250 from European planemaker Airbus and 220 from U.S. aircraft manufacturer Boeing — at a list price of over $70 billion. 

A debate over market access was rekindled at an aviation event in India as foreign carriers seeking additional capacity to serve more routes in India feared the Tata Group-owned Air India’s rebirth and record order of 470 jets might capture most of the market. Dubai’s Emirates, Turkish Airlines and Kuwaiti carrier Jazeera Airways have all called for sharp increases in air traffic rights to and from India to meet demand. Vietnam and Indonesia also want more flights, an Indian official said. However, speaking to Reuters India’s civil aviation minister Jyotiraditya Scindia said the country has no plans to increase air traffic rights for the United Arab Emirates. He instead urged domestic carriers to fly long haul and help establish new hubs. “We are going to see an explosion of air traffic in India in the years to come,” he said, adding he wanted domestic carriers to focus on international expansion. “We are not getting enough share from this market,” Turkish Airlines Chief Executive Bilal Eksi said. Dubai has requested an extra 50,000 seats a week on India routes while Kuwait’s Jazeera Airways said the current weekly allowance of 12,000 was inadequate and asked for the cap to be raised to 28,000 seats.  

The Indian government has advised telecom service providers to take precautions that minimize the interference of fifth generation (5G) networks — which allows for faster wireless speeds — in aircraft operations, including establishing safety and buffer zones and placing 5G towers near airports, according to a Press Trust of India report. Indian aviation watchdog Directorate General of Civil Aviation (DGCA) has not conducted any research on the potential impact of 5G signals on safe civil aircraft operations, according to VK Singh, minister of state for civil aviation. “However, DGCA has reviewed the studies/action undertaken by various countries during the launch of 5G on the potential interference of 5G C-band signals on radio altimeters installed on the aircraft and risk involved in air travel,” Singh was quoted as saying. He said there is a possibility of interference with radio altimeters, which could jeopardize safe airline operations. Concerns over the 5G network interfering with flights had been raised internationally. U.S. aviation regulator Federal Aviation Administration had warned last year that potential interference could affect sensitive airplane instruments such as altimeters and impact on low-visibility operations. Last month, the International Air Transport Association (IATA) had also expressed concern that many airlines would not be able to retrofit their planes to handle new 5G wireless technology in time for the peak summer travel season.