
Air India: The unsung hero
Taking on evacuation flights to high-risk countries, including China, has proven Air India’s value in a crisis. But the boost in reputation has done nothing for its commercial viability.
Taking on evacuation flights to high-risk countries, including China, has proven Air India’s value in a crisis. But the boost in reputation has done nothing for its commercial viability.
Even after the unprecedented chaos wrought by the Covid-19 pandemic settles, there’s turbulence ahead for the air travel industry.
Virgin Atlantic founder Richard Branson says India is becoming an important part of his company’s growth, as the airline triples its seat capacity next year.
Given that all airlines in India have replaced the capacity vacated by Jet Airways, a low-fare environment has set into the crucial 0-15 day booking period which would add pressure on revenues
India’s aviation sector reported a modest 2.8% YoY growth in passenger traffic in May, as Indian airlines added capacity led by budget-airline SpiceJet.
While Delhi High Court refused Goyal permission to fly abroad, it asked him to deposit ₹18,000 crore as guarantee if he wished to travel. Meanwhile, Vijay Mallya’s extradition suffers a setback.
The Sensex closes up 66.40 points at 39,112.74, while Nifty 50 ends nearly flat at 11691.45, after volatile trading session.
With banks now seeking a resolution under the Insolvency and Bankruptcy Code, it perhaps is the end of the road for India’s premier airline Jet Airways.
Apart from the billions of dollars needed to resurrect the beleaguered airline, its re-entry into the low-cost carrier-dominated Indian aviation market is viewed with scepticism.
Even as domestic traffic growth is on the rebound, India’s largest airline IndiGo reported profit growth of 401.2% in Q4 of FY19.