With India’s airlines still mired in losses, the country’s new budget, announced on July 11, did little to address some of the aviation industry’s most pressing concerns. It offered nothing on reforms in taxation on aviation fuel and maintenance, repair and overhaul—long issues of contention the aviation industry hoped India’s new government would address.
SriLankan Airlines appears poised to expand its reach into the neighboring Indian air transport market after becoming the 14th member of One World alliance late last month. The move is a boost to a country trying to bounce back after a 25-year civil war and also makes SriLankan the first carrier from the Indian subcontinent to gain admission into a global airline alliance—ahead of rival operators in the far larger Indian market.
India’s newest domestic startup, full-service Delhi-based Tata SIA Airlines, could have an advantage over newcomer budget-carrier AirAsia India as the latter is forced to wait for its air operators permit (AOP), which has been delayed by the decision of the Indian Directorate General of Civil Aviation (DGCA) to issue a public notice requesting comments. This could put on hiatus AirAsia’s plans of launching before summer.
The Star Alliance has set a new target of 2015 for Air India to join its ranks following a unanimous vote by member airlines to restart the process of integrating the Indian flag carrier. The alliance suspended integration in 2011 on grounds that Air India had “not met minimum joining conditions agreed in December 2007.” With signs of stability and fleet rationalization, however, Star has agreed to give Air India a second chance.
Air India’s seventh GEnx-1B-powered Boeing 787 of the 27 ordered is taking flight at the flying display here at the Paris Air Show. The airline will take delivery of this 787 next month, and a total of eight by the end of this year, five in 2014, six in 2015 and two in 2016. A Qatar Airways 787, which flew at the Farnborough Air Show last year, is also on static display here.
A major restructuring at Air India has cut loss-making routes to 25 percent of its network in the fiscal year ending March 2013, down from 69 percent in the previous year. The airline attributes the improvement to a series of steps taken to cut costs, restructure loans, strengthen management and liquidate assets, including the spin-off of engineering and ground handling as independent profit centers.
India’s long-awaited new civil aviation policy needs to address key issues on infrastructure and high taxation, according to Tony Tyler, director general and CEO of the International Air Transport Association (IATA). Speaking at the annual India Aviation Day in New Delhi on March 26, he urged the country’s government to produce a coordinated policy framework for aviation that all relevant departments, including the ministries for finance, economy, development, rural infrastructure and tourism, can pursue.
India’s fastest growing and most successful airline–budget carrier IndiGo–has become the first victim of an October ruling by the country’s aircraft acquisition committee governing the number and kind of aircraft imported by airlines to encourage regional connectivity to smaller towns. In November the committee, led by civil aviation minister Ajit Singh, cleared for import only five of the 16 Airbus A320-series aircraft Indigo wanted to acquire.
As India’s general aviation sector limps back to life after temporary stagnation, Middle East companies have been reaping the results of its tax-infused, straight-laced policy on maintenance, repair and overhaul (MRO).
A busy fortnight for the Boeing 787 program climaxed with the arrival of Air India’s first Dreamliner in Delhi last Saturday, just a week after the first of the new widebodies destined to enter service in the Americas went to Chile’s LAN.
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