Aviation India - June to August 2023 Updates

The civil aviation industry in India has seen remarkable growth after pandemic. As experts predict, Indian aviation will accommodate 430 million additional air passenger journeys by 2040 compared to 2019.

India's aviation market saw an extra ordinary in January 2022, as government sells Air India to Tata group. Once Tatas founded and owned this airlines and again it is in their hands. 

Post Covid era, aviation business is booming as travel is now easier and safer. 

June to August 2023 >>>>

Wadia Group backed GoFirst (GoAir rebranded in May, 2021), one of the country's airlines which went bankrupt in early May this year. They pointed out inability of Pratt & Whitney to deliver engines which are integral part of the fleet of A320neos. At the end of June the company has come up with a plan to operate 157 daily services with 22 planes on 78 routes with an interim funding of INR450 crore from lenders led by Central Bank of India. This plan will be submitted formally to the DGCA who will scrutinize it and may allow GoFirst to restart the services.

Akasa Air, backed by India's 'big bull' investor Rakesh Jhunjhunwala has become the first Airline in the 120-yr's history of global aviation to include the 20th plane within a year of commercial service. Akasa grabbed 4.8% market share in May '23 since its inception in August '22. Akasa has plans to include 72 jets from Boeing (737-8) by 2027. 

Indigo, the largest airlines of the country by market share made an order of 500 aircrafts (Airbus A320) from Airbus, setting a new record for the largest single purchase agreement in commercial aviation. (June 2023)

Air India, country's flag bearer Airlines, now owned by Tata Group also placed 470 aircrafts from Airbus and Boeing on June 20, 2023 during Paris Air Show. Well may be not all aircrafts would not go to Air India, some being ordered for Tata's other airlines - Vistara and Air Asia India. 

Vistara, now owned by Tata Sons Pvt Ltd and Singapore Airlines Ltd (SIA) (51:49), is planned to merge with Air India. If all goes as planned and the necessary regulatory approvals are secured, the merger is expected to be completed by April 2024. 

By end of September, Air India CEO Wilson Campbell cancelled the timeline. The Tata Group will not merge the two airlines until Air India, which had been run by the government for decades, reaches the level of Vistara. It should be noted that Vistara, launched in 2013 as a JV of Tata Group and Singapore Airlines, was established from the scratch and had no legacy issues like old aircrafts and technology. 

Analysts believe post-COVID era, middle east Airlines did a good business and they could see the competition from Indian carriers very soon. With huge order of aircrafts Air India and IndiGo would not wait to get more and more international travelers. Like middle east hubs, Doha (Qatar) or Dubai, India can easily be a global hub for transfers. 

On 14th July, 2023 Delhi's Indira Gandhi International (IGI) Airport achieved a significant milestone by launching dual elevated Eastern Cross Taxiways and the fourth runway, becoming the first airport in India to have four runways and an elevated taxiway. The first flight was AI-821 destined to Srinagar.
As the country's largest airport, IGI handles more than 1,500 aircraft movements daily.

Jet Airways could be the first Indian airlines which is being revived under its original name after being grounded in May 2019 due to financial difficulties. In 2021 Jalan-Kalrock consortium took charge of Jet to revive. Directorate General of Civil Aviation (DGCA) renewed the air operator certificate (AOC) of Jet Airways on July 28. Currently, Jet Airways is being revived under the Insolvency and Bankruptcy Code as the National Company Law Tribunal (NCLT) approved resolution plan of the Consortium. It should be noted that Jet got AOC earlier in 2022, which expired in May 2023 as airline could not restart operations. 

Jewar, near Noida will get the country's largest airport being developed by Yamuna International Airport Private Limited, a subsidiary of Zurich Airport International AG, its first phase is anticipated to be operational by 2024, initially with two runways and a capacity to handle 12 million passengers. Eventually, it will expand to become a 60 million passenger airport, improving connectivity between Noida, Western Uttar Pradesh, Delhi, and NCR.

At present India has 131 airports operational and 20 airports are upcoming. Under the central government’s Regional Connectivity Scheme - Ude Desh Ka Aam Nagrik (RCS-UDAN) there were 74 new airports operational in last 9 years.

However even after so many airports many routes are abandoned by the Airlines. The government launched 479 routes to revive these airports, out of which 225 have since ceased operations, as per the data by The Hindu. 

Inflight WiFi - though Indian civil aviation does allow it since 2018, it's a costly affair for Indian airlines - as it costs Rs 3-4 Cr to install the equipment. The Indian market is very cost sensitive and the competition is huge for cost-conscious passengers - the result is no airlines find it attractive. However Thales, French aerospace and defense conglomerate is now working with Indian airlines and regulatory bodies to offer in-flight Wi-Fi services.