Forbes India
Indian aviation remained caught between rising costs and slowing growth this week. The government announced a Rs 10,000 crore fuel price stabilisation package for airlines, following the Rs 5,000 crore emergency credit support announced earlier, as Indian carriers continue to grapple with the impact of higher fuel prices and disruptions linked to the West Asia conflict.IndiGo, despite increasing its domestic market share to 65 per cent in April, announced the suspension of seven international routes, including Manchester. At the same time, data from the Directorate General of Civil Aviation (DGCA) showed domestic passenger traffic fell both year-on-year and sequentially in April, suggesting softer demand.Meanwhile, Air India continued to expand its international footprint, signing a partnership agreement with Riyadh Air that would add to its existing network of 25 codeshare partnerships if approved. Govt approves Rs 10,000 crore ATF support packageThe Union Cabinet on June 3 approved a one-time budgetary support package of up to Rs 10,000 crore for oil marketing companies to provide aviation turbine fuel (ATF) price stabilisation support to scheduled Indian airlines. The scheme aims to shield carriers from fuel price volatility caused by the ongoing West Asia conflict and will remain in place for up to 36 months, subject to annual review.Photo by Arvind Yadav/Hindustan Times via Getty Images IndiGo cuts international network, exits Manchester routeIndiGo announced a temporary suspension of flights to six international destinations: Langkawi, Krabi, Ho Chi Minh City, Hong Kong, Shanghai and Siem Reap between July and September as part of a network optimisation exercise. The airline said it would retain more than 1,800 weekly international flights despite the adjustments. Separately, IndiGo said it will discontinue flights to Manchester from August 31 and return one of its six leased Boeing 787-9 Dreamliners to Norse Atlantic Airways.Photo by Niharika Kulkaarni / AFP Domestic air traffic falls in AprilDomestic passenger traffic declined in April as airlines faced weaker demand and rising costs. DGCA data showed Indian carriers flew 1.38 crore passengers during the month, down 3.47 percent year-on-year and 4.2 percent lower than March. Passenger traffic for the January-April period stood at 5.75 crore, broadly flat compared with the same period last year. The data also showed more than 1.35 lakh passengers were affected by flight delays during the month.Photo by Ashish Vaishnav/SOPA Images/LightRocket via Getty Images Air India signs partnership with Riyadh AirAir India and Saudi Arabia's Riyadh Air signed a memorandum of understanding on June 4 to explore a partnership covering codeshare and interline agreements. The arrangement aims to allow passengers to book journeys across both airlines' networks through a single ticket. The carriers will also explore cooperation in loyalty programmes, cargo services, operations and digital initiatives. Air India currently has 25 codeshare partnerships and more than 120 interline agreements globally.Photo by VanderWolf Images/Shutterstock ATF prices for international airlines cut 27%Fuel prices for international airlines were reduced by 27 percent in the monthly revision on June 1. The cut lowered jet fuel prices by more than USD 400 per kilolitre to around USD 1,100 per kilolitre. ATF prices for domestic airlines, however, were left unchanged for a second consecutive month at Rs 104,927.18 per kilolitre. Industry sources told PTI that domestic fuel prices continue to be kept below cost despite elevated international benchmarks.Photo by aapsky/Shutterstock SAS Mumbai launch delayed by approval issueScandinavian carrier SAS's return to India after 17 years saw a setback after its inaugural Copenhagen-Mumbai flight was forced to return to Denmark on June 3 due to a pending regulatory approval. According to a report by The Times of India, the Airbus A330 had been airborne for nearly four hours and was over Azerbaijan before turning back to Copenhagen. SAS said it had expected the final approval to be granted while the flight was en route and expects services to begin once the remaining clearance is received. Photo by Croatorum/Shutterstock Srinagar runway closure plans announcedSrinagar International Airport said runway maintenance proposed by the Indian Air Force could affect flight operations from July. Under the proposal, the runway would remain unavailable every Monday and Tuesday between July 1 and September 30, followed by a complete closure from October 1 to October 16. Airport authorities said the plan is still awaiting formal approval and advised passengers to follow official updates for further information.Photo by Nasir Kachroo/NurPhoto via Getty Images Delhi airport warns of weather disruptionsDelhi airport issued an advisory on June 4 warning passengers of possible flight disruptions due to adverse weather conditions in the national capital. Airlines including IndiGo, Air India and SpiceJet also advised passengers to check flight status before travelling to the airport. While authorities did not specify the number of affected flights, they said operations were being closely monitored and efforts were underway to minimise disruption.Photo by Sanjeev Verma/Hindustan Times via Getty Images
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