Centre for Asia Pacific Aviation India (CAPA India) has warned that the nation’s aviation sector is likely to be adversely impacted this year by potential supply chain issues. With nearly 200 out of a total fleet of nearly 800 aircraft facing grounding during this financial year, the report by the Capital & Transaction Advisor says that this number is likely to go up with more airlines planning to ground planes in the coming months.
Although India’s leading airlines have already placed orders for nearly 1,700 aircraft, because of the global supply chain challenges faced by aircraft manufacturers, the delivery of these is likely to be a gradual process spanning almost the entire next decade. News reports also indicate that leading manufacturers like Airbus and Boeing have stopped taking orders for some of their popular models until 2030. Meanwhile, industry experts say that the existing crisis will lead to constrained capacity, more flight cancellations and delays, thereby forcing airlines to increase rates.
The group chairman of UAE-based aviation conglomerate says that the global shortage of aeroplanes may lead to an increase in ticket prices, particularly for short-haul flights.
“With travel demand outpacing seat capacity, it will naturally result in increased fares. Due to the impact of global supply chain issues, capacity augmentation is also likely to take more time. This will naturally lead to higher fares, especially in the domestic travel sector, where there are only a limited number of players operating on certain routes. Less competition is another factor that may precipitate the surge in airfares,” says Jaideep Mirchandani, group chairman of Sky One.
Meanwhile, according to the online travel platform Cleartrip, airfares this summer have seen a major increase compared to 2023. As per the data, the airfare for the Bengaluru-Delhi route was INR 7,300 in March 2024, compared to INR 5,600 in the previous year, marking an increase of 30 percent. Likewise, the rate for the Mumbai-Delhi route was 22 percent higher than in 2023, at INR 6,000 in March this year. The Mumbai-Bengaluru flight ticket has also risen by 37 percent this March, at INR 4,400 as against INR 3,200 during the same period last year.
Further, the airline has deployed larger aircraft like B787-9 Dreamliner and A321neo on select domestic routes to combine flights or accommodate more number of customers, wherever possible. One of the sources said first officers reporting sick have forced the airline to cancel flights as their salaries have been reduced significantly. The source claimed that some components of the salary have been reduced while incentives linked to flying hours have been raised.
Mirchandani said one of the most cost-effective ways for airlines to overcome supply chain issues is through leasing aircraft. “Leasing will enable airlines to adjust their fleet size and composition in response to market demand, seasonal variations, and network expansion. It is a cost-efficient option that will reduce the burden of upfront capital expenditure and depreciation costs for the airlines,” he adds.He also expects an uptick in wet leasing, which involves renting planes along with operating crew and engineers, to meet the rising demand for flights which will place some control on airfare price increases.
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Le Travenues Technology, the parent company of the leading travel booking firm ixigo, has submitted initial documents to Security Exchange Bureau of India (SEBI) for its initial public offering (IPO). The Gurugram-based firm plans to raise funds through a combination of fresh equity shares worth INR 120 crore and the sale of 6.66 crore existing shares by current shareholders, as detailed in the Draft Red Herring Prospectus (DRHP).
SAIF Partners India IV, Peak XV Partners Investments V (formerly known as SCI Investments V), Micromax Informatics, Placid Holdings, Catalyst Trusteeship, Madison India Capital HC, along with ixigo founders -Aloke Bajpai and Rajnish Kumar, will be offloading shares through the Offer For Sale (OFS) route.
The proceeds of INR 45 crore from the fresh issue will be allocated for working capital requirements, while INR 26 crore will be invested in technology, including cloud and server hosting, artificial intelligence, and customer engagement. Additionally, funds will be earmarked for potential acquisitions and general corporate purposes.
The company also intends to conduct a pre-IPO round to raise up to INR 24 crore, which may lead to a reduction in the size of the fresh issue. Axis Capital, DAM Capital Advisors, and JM Financial have been appointed as the book running lead managers for the public issue.
Established in 2007 by Bajpai and Kumar, Le Travenues Technology assists travellers in planning, booking, and managing trips across various modes of transportation and accommodations. The ixigo Group also has several subisdiaries under its umbrella which deals in diffrent travel segments including Abhibus and Freshbus for bus travel and Ixigo trains for train travel.
Company’s EBITDA reached INR 653.7 million, up by 10.9 per cent year-on-year. Also, there were 3.8 Lacs hotel night bookings and 7.7 Lacs in the other bookings. Following a successful quarter, EaseMyTrip also acquired a stake of approximately 13 per cent in ECO Hotels and Resorts and signed a Memorandum of Understanding with the Government of Uttarakhand.
In the financial year ending March 2023, the company’s total income increased to INR 517 crore from INR 385 crore in the previous fiscal. It reported a profit of INR 23.4 crore for the same period compared to a loss of INR 21 crore in the preceding year.According to the F&S Report, India’s total travel market, covering air, rail, road, and hotel segments, is estimated to be approximately INR 3.8 lakh crore in Fiscal 2023 and is projected to grow at a compound annual growth rate (CAGR) of around 9 per cent to reach INR 5.8 lakh crore by Fiscal 2028.
Le Travenues Technology had previously filed draft papers with SEBI in August 2021 for a INR 1,600 crore IPO, which did not materialize. The proposed IPO then comprised a fresh issuance of shares worth INR 750 crore and an offer for sale of equity shares worth INR 850 crore by existing shareholders.
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The Indian embassy at Tel Aviv and the Representative Office of India in Palestine on October 7 issued advisories asking Indian nationals in respective countries to “remain vigilant” and “directly contact the Office” in case of emergency as a full-fledged war broke out between the ruling Hamas militant group in the Gaza Strip and Israel killing at least 498 people from both sides. As they entered southern Israel by land, sea and air, using paragliders, Hamas militants fired more than 2,000 rockets from the Gaza Strip into Israel, according to the Israeli military. Hamas says it captured several Israeli soldiers near the border.
The surprise attack has killed 200 people and injured more than 1,100 in Israel. In the Gaza Strip side, there were 198 dead and about 1,500 wounded in Israel’s counterattack, media reports said.
The British government is set to increase visa fees, making travel to the UK more expensive for people worldwide, including Indians. The price hike will affect visit visas under six months and student visas, with fees increasing by £15 and £127 respectively. The Home Office justifies the increase as necessary to fund public services and contribute to public sector pay.
“In view of the current situation in Israel, all Indian nationals in Israel are requested to remain vigilant and observe safety protocols as advised by local authorities. Please exercise caution, avoid unnecessary movement, and stay close to safety shelters,” the Embassy said in its advisory. The advisory gave relevant phone numbers in case of emergency and also provided URLs for Israeli Home Front Command and Preparedness brochures.
The advisory was issued in English, Hindi, Marathi, Tamil, Telugu, Malayalam and Kannada languages. According to the details on the website of the Indian Embassy here, there are about 18,000 Indian citizens in Israel, primarily caregivers employed by Israeli elders, diamond traders, IT professionals and students. There are approximately 85,000 Jews of Indian origin in Israel too that were part of the main waves of immigration into Israel from India in the fifties and sixties.
“Today was a very difficult day, we have never seen a situation (like this). Within 20 minutes, 5,000 rockets were fired, and they (Hamas militants) killed 22 people while 500 were injured. This is a very difficult situation for the country,” Soma Ravi, an Indian national working in Israel for 18 years, told the news agency.
Vikas Sharma, an Indian student at the Hebrew University here, said, “There’s a tense situation in Israel because of the attack, but all the Indian students are safe. Most of the students are staying in dorms and accommodations provided by the college. We are in contact with each other as well as the Indian embassy through WhatsApp.”
In Ramallah, the Representative Office of India in Palestine posted a public notice on X late on Saturday night: “In light of the prevailing security situation, Indian nationals in Palestine can directly contact the Representative Office of India to address any case of emergency or needed assistance on the 24-hours Emergency Helpline.”
It also gave two contact numbers.
Meanwhile, in India, Prime Minister Narendra Modi posted on X, “Deeply shocked by the news of terrorist attacks in Israel. Our thoughts and prayers are with the innocent victims and their families. We stand in solidarity with Israel at this difficult hour.”
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