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India Aviation Industry Newsletter 16 September

India Aviation Industry Newsletter 16 September

Air India’s Boeing 777 aircraft to Toronto to sport images of tourism, environment

When Air India flies to Toronto later this month, the Boeing 777 aircraft’s exterior will sport images with themes of Indian tourism and environment, according to airline officials. Air India is set to start services from the national capital to Toronto in Canada from 27 September. The officials said that for the first time, an Air India plane would be wrapped with images of themes of Indian tourism and environment.

Airfares set to rise 7-9% as Jet Airways crisis squeezes capacity additions

Passengers are likely to shell out the highest fares for domestic travel this fiscal with the ticket prices expected to spike 7-9 per cent during the period because of limited capacity additions since the grounding of Jet Airways, rating agency Crisil Research said in a research note. “This is way below the 14 per cent growth logged in fiscal 2019 and the compound annual growth rate (CAGR) of 18 per cent was seen in the last five years. Nevertheless, is higher than our earlier estimate of 2 per cent growth and factors an upward revision in capacity addition plans of low cost carriers (LCCs). ”

Bengaluru International Airport Limited (BIAL) announces map contest

Bengaluru International Airport Limited (BIAL) operator of the Kempegowda International Airport in Bengaluru, India, has launched a map competition. BIAL has invited artists, architects and anyone else interested to participate in a map design contest, with the aim of providing unique maps to help travellers experience the rich diversity of the vibrant city of Bengaluru. The three best-designed maps will be printed and made available as takeaways for passengers using the airports.

French aircraft company sets up production facility in Belagavi

Paris-based Latécoère, a company that manufactures aerostructures such as fuselage sections and doors, and interconnection systems, including onboard wiring, electrical harnesses, and avionics bays for major international aircraft manufacturers, has set up a manufacturing plant in Belagavi. To start with, the 4,400-sq. m plant would manufacture radio navigation harnesses for Falcon 2000. In the future, it would also manufacture harnesses and avionics harnesses for aircraft such as Boeing B777, B737, and Airbus A320 and for airlines such as Emirates, British Airways, and Qatar Airways.

HAL plans to make Ilyushin IL-114s for regional flights

Hindustan Aeronautics Ltd (HAL) is eyeing to assemble the famed Russian Ilyushin IL-114 aircraft in India and offer it in the 70-seater turboprop category to airlines here for regional commercial flights. The PSU has tied up with Public Joint Stock Company (PJSC, or Ilyushin) and is planning to start offering maintenance service for this aircraft in India and later move over to assembling the same here.

India-Poland direct flight to be launched on September 12

Economic ties between India and Poland will receive a boost with the beginning of direct flights from 12 September. According to Polish sources, the flight will be operated by LOT Polish Airlines and the first flight will fly Deputy Foreign Minister of Poland Marcin Przydacz to India. The direct flight will connect New Delhi with Warsaw and will operate five times a week. Rafal Milczarski, CEO of LOT Polish Airlines said “There is a huge potential of air travels — almost 9.5 (million) passengers travelled between India and Europe and 3.3 (million) between Delhi and Europe during the last 12 months. Our convenient schedule, including an overnight eastbound flight, a comfortable on-board product and seamless connectivity via Warsaw, will certainly increase the flow of business and leisure travellers coming to and from India.”

Jolly Grant to be developed as international airport

The Uttarakhand cabinet approved the proposal to develop Jolly Grant airport as an international airport, demarcating areas under jurisdiction of development authorities of Pauri, Dehradun and Haridwar, and merger of Gangotri Special Area Authority with Uttarkashi Development Authority.

Low-cost airlines set to report high EBITAR margins in FY20, says Crisil

Low-cost airlines like SpiceJet, IndiGo and Air Asia (India) are set to see their earnings before interest, tax, depreciation, amortisation and lease rentals (EBITAR) to grow to 24-25 per cent this fiscal compared to 15-16 per cent in the last fiscal on the back of firmer fares and strong passengers loads, Crisil said in a statement. According to Crisil, the improvement in the EBITAR margin and the operating cash flows are expected to touch a decadal high of ₹4,700-5,200 crore this fiscal. Unlike fiscal 2019, a majority of the LCCs are expected to post positive operating cash flows.

The Ministry of Civil aviation 100 Day Plan

The Ministry of Civil aviation has undertaken several initiatives in the first 100 days of governance under Modi government 2.0 to boost growth in the aviation sector and enable affordable flying. Read more here.

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