The Indian aviation sector is abuzz with excitement as bidding giants Ajay Singh, Chairman, and Managing Director of SpiceJet, in collaboration with Busy Bee Airways, and Sky One, led by Chairman Jaideep Mirchandani, compete to resurrect GoFirst Airlines from its grounded state. These bids, submitted to the Resolution Professional (RP) for consideration by the Committee of Creditors, signify a crucial step towards the potential revival of GoFirst.
SpiceJet’s bid to revive GoFirst outlines a comprehensive plan wherein the airline would serve as the operating partner for GoFirst, offering essential staff, services, and industry expertise. The collaboration aims to generate synergies between the two carriers, optimise resource allocation, and strengthen market positioning within the Indian aviation industry. Ajay Singh expressed optimism about revitalising GoFirst and leveraging its strengths for mutual growth and success.
On the other front, Sky One Chairman Jaideep Mirchandani affirmed the bid submission for GoFirst, citing the airline’s vast aviation experience across the globe as a testament to its confidence in the acquisition. Sky One’s interest in GoFirst stems from its coveted slots at domestic and international airports, international traffic rights, and substantial user base, making it a reliable investment opportunity.
A number of simultaneous events made Jan 2024 a nightmare for air travellers. These included the worst spell of fog that north India saw in years, airports in some other regions also affected by poor visibility and closure of the main CAT III runway at Delhi, leaving only one CAT III runway during the worst fog period. An aircraft delayed at any one of the north Indian airports-especially the biggest base Delhi-would have a cascading effect on all the other flights.
The bidding process comes amid GoFirst’s recent challenges, including difficulties with Pratt & Whitney engines that led to the airline’s voluntary insolvency application to the National Company Law Tribunal in May 2023. With a 60-day extension granted by the National Company Law Tribunal for GoFirst’s moratorium, potential investors have a window of opportunity to submit proposals for the carrier’s revival.While SpiceJet aims to leverage GoFirst’s brand recognition and existing infrastructure to drive growth, Sky One’s strategic acquisitions across the global aviation sector position it as a formidable contender in the bidding race. Sky One, headquartered in Sharjah, United Arab Emirates, offers a wide array of aviation services, including cargo charters, training, maintenance, repair, and overhaul (MRO).
As the Indian aviation industry braces for unprecedented growth, the bids from SpiceJet and Sky One signify a collective effort to inject new life into GoFirst Airlines and propel it towards a brighter future in the skies.
[ad_2]
Source link
In a significant move, El Salvador has implemented a USD 1,000 fee for travellers originating from Africa or India, signaling its intent to discourage migration through the country to the United States. This development was made public by El Salvador’s port authority in a statement posted on its website.
The fee targets individuals travelling on passports issued by India or more than 50 African nations. El Salvador’s government views this measure as an essential step to address migration challenges and regulate the flow of travellers passing through the country en route to the United States. This new policy is aimed to establishing border and immigration control measures.
Crucially, the funds generated from this fee will be directed towards enhancing infrastructure and facilities at El Salvador’s primary international airport, as confirmed by the authority.
This week, President Nayib Bukele of El Salvador held a crucial meeting with Brian Nichols, the US Assistant Secretary of State for Western Hemisphere Affairs. Their discussions encompassed a wide array of topics, with a primary focus on their joint efforts to combat irregular migration.
During the fiscal year 2023, which concluded in September, the US Customs and Border Patrol recorded a staggering 3.2 million encounters with migrants across the country. This stark figure underscores the magnitude of their discussions concerning the pressing issue of migration.
For travellers from the impacted nations, an additional cost of USD 1,130, inclusive of value-added tax (VAT), will be incurred. This new fee came into effect on October 23 due to the heightened utilisation of the nation’s primary international airport, according to the official announcement.
Travellers pay the airport-usage fee as part of the cost of their plane ticket and operators pocket the funds. It adds about USD 22 to more than USD 60 to the price of an international flight and about USD 8 to USD 40 for a domestic ticket, depending on the airport.
In addition to the fee, airlines will now be obligated to provide daily notifications to Salvadoran authorities about passengers arriving from a specified roster of 57 countries in Africa and India.A prominent airline utilising El Salvador’s hub, Avianca from Colombia, has taken the initiative to alert travellers from the aforementioned list of nations about the mandatory fee. Passengers from these countries will be required to pay the fee before boarding flights destined for El Salvador.
This initiative is a reflection of the ongoing efforts by governments and airlines worldwide to address migration challenges and enhance control over international travel. This decision by El Salvador has significant implications for travellers from India and Africa and underscores the need for a comprehensive approach to international migration issues.
[ad_2]
Source link
Country’s largest carrier IndiGo has announced the imposition of ‘fuel charges’ on all passengers tickets on domestic and international flights to battle rising fuel prices. The company in a statement said that decision has been taken to offset rising ATF prices, which has increased significantly in the last three months.
The fuel charge is effective 00:01hrs October 06, 2023. ATF accounts for a substantial portion of an airline’s operating expenses, taking up almost 40 per cent of the operational cost. IndiGo said the move was inevitable for necessitating fare adjustment and address cost surge.
How it will impact fliers?
The fuel charge will be added to the passenger’s ticket cost which can lead up to an increase of INR 1,000 on any flight ticket. IndiGo has formulated a pricing structure according to which they will be charged the new fuel fee based on distance they travel on any sector.
The airline said it remains committed to offer affordable fares to its customers and mentioned that it will also publish the tariff sheet subsequently, with the sector-wise charges that can be viewed on its website.
Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance. The move is also likely to prompt other airlines to follow the suit and start charging fee from passengers, which will eventually make flying costly for passengers.
Why IndiGo took this decision?
The decision comes after sharp increase in the Aviation Turbine Fuel (ATF) prices in recent months. From October 1, jet fuel prices for domestic airlines experienced a 5 per cent increase, reaching their highest levels for the year.
Delhi International Airport Ltd (DIAL) is reportedly in talks with airlines to create an international wing at Terminal 1 of Indira Gandhi International Airport (IGIA) by 2027. The plan is to use old buildings near the expanded T1 for this purpose. IndiGo has expressed interest in operating all its flights from T1, while Air India is considering T2, which is set to be demolished for a new terminal.
This monthly price hike marks the fourth consecutive one and is attributed to rising international prices of crude oil and jet fuel. Consequently, airlines may face additional financial pressure, potentially resulting in higher airfares during the upcoming festival season when travel demand typically surges. ATF prices have surged by over 32 per cent since June this year, currently standing at their highest point since November of the previous year.According to data from oil companies, jet fuel in Delhi after the price hoke costs INR 1,18,199.18 per kilolitre, up over 5 per cent from last month.
Airlines including IndiGo previously imposed a fuel surcharge in 2018, which was gradually removed as fuel prices decreased.
[ad_2]
Source link