Aviation sector

"This measure, which is in line with SpiceJet's policy of not retrenching any employee which the airline steadfastly followed even during the peak of the Covid pandemic, will help rationalise the pilot strength vis-a-vis the aircraft fleet," said a Spicejet spokesperson. SpiceJet had, in 2019, inducted more than 30 aircraft following the grounding of the 737 MAX aircraft.

The government also cut tax on Aviation Turbine Fuel (ATF) exports to Rs 8.50 per litre from Rs 9 per litre, according to a gazette notification. Similarly, cess on export of diesel was slashed to Rs 6.50 per litre from Rs 13.50 per litre. The decision came after the fifth fortnightly review of windfall taxes conducted by the Centre.

The fare locking service enables customers to reserve bookings so that the selected flight doesn't sell out and the fare doesn't go up while they finalise their travel plans. The service can be availed with or without a name, making it extra safe and convenient. Passengers flying on both domestic and international flights operated by SpiceJet can now enjoy this service with assured seat and price protection.

This has now become possible as cut-throat competition in the aviation sector has led to a price war among the airlines to attract fliers. A close look at air fare disclosed that a ticket from Mumbai to Ahmedabad is costing Rs 1,399 on Go First and Rs 1,497 on new entrant Akasa Air for a journey on September 9. IndiGo, the largest domestic airline, is offering ticket on the same route for Rs 1,609. Similar is the case on the Mumbai-Bengaluru route with tickets available in the range of Rs 2,000 to Rs 2,200. While Akasa Air is offering a ticket for Rs 1,997 for a journey on September 9, a ticket on IndiGo is available for Rs 2,208.

SpiceJet said in a regulatory filing, said that its Chief Financial Officer resigned with effect from August 31. SpiceJet airline reported a net loss of Rs 789 crore (Rs 420 crore excluding forex adjustment) for the quarter ending June 30, 2022 as compared to a net loss of Rs 729 crore in the quarter ending 30 June, 2021 as business was severely impacted by record high fuel prices and a depreciating rupee.

However, experts said that high competition among the airlines may lead to benefits for fliers and many airlines may offer discounts as per the demands. Aviation expert Harshvardhan said: "The move will give flexibility to the airlines in deciding air fares and airlines can charge as per their policies. Airfare cap was more towards the higher side. New airline has come and there is competition in the sector.

The airline's total revenue for the reported quarter was Rs 2,478 crore as against Rs 1,266 crore in the same quarter of the previous year. For the same comparative period, operating expenses were Rs 3,267 crore as against Rs 1,995 crore. On an EBITDA basis, loss was Rs 379 crore for the reported quarter as against a loss of Rs 244 crore for the quarter last year.

The report on 'Civil Aviation: The Roadmap for Robust Growth Over Next Decade' observed that this is largely a function of relatively lower income levels compared to China and Indonesia. However, the Indian market harbours immense potential, considering rising income levels and its vast population, it said. It said that the Chinese aviation market grew four times between 2007 and 2022 as income levels rose and the Indian market is poised for a similarly impressive growth.

Speaking at an ASSOCHAM event on CEOs' Roundtable discussion, the Minister said that aviation is competing closely with the railways in the air-conditioned segment. "The railways today carries 125 million passengers in 1st and 2nd AC, airlines on the other hand carried 144 million domestic travellers before the pandemic and in the next 5 to 10 years, civil aviation will carry the bulwark of transportation for this limited section," the Minister said.

According to the DGCA data, the number of passengers carried by domestic airlines during the January-July 2022 period were 669.54 lakh as against 393.44 lakhs during the corresponding period of in 2021, thereby registering an annual growth of 70.18 per cent and monthly growth of 93.82 per cent. The passenger load factor or occupancy of airlines remained in the range of 75 per cent to 85 per cent in July.