22 May 2017

India Aviation industry newsletter 22 May

Air India plans to raise Rs80 crore through sale of properties Air India plans to raise around Rs80 crore through sale of its seven properties, including some land parcels, as a part of its asset monetisation plan. The national carrier has mandated the state-run auctioneer MSTC to put these properties under the hammer. GST rates: Flight tickets of economy class to get cheaper from 1 July Economy class air travel will become cheaper with tax rate fixed at 5% against the existing 6%, under the upcoming goods and services tax (GST) regime from 1 July. However, for those travelling business class, tickets will become dearer as the tax will go up from 9% to 12%. A reason for keeping GST on passenger travel low is because airlines cannot claim credit on aviation turbine fuel under the GST regime. India’s airline passenger growth rises 17.71% in April Indian domestic carriers recorded a passenger growth grew by 17.71% higher than the same period in the previous year, Directorate General of Civil Aviation (DGCA) said in a report on Thursday. The total number of passengers in the month of April alone reached 91.34 lakh. In March the passenger count was 90.46 lakh. There has been an increase in the passenger load factor (PLF) in April, with SpiceJet topping the list at 93.4% PLF. KLM Returns to Mumbai Following 16 Year Hiatus KLM has announced it will reconnect Mumbai and Amsterdam using the Boeing 787-9 Dreamliner aircraft after ending the service over 16 years ago. The airline had previously stopped flights to India’s largest city in 2001 when demand weakened. The new service is scheduled to begin on Oct. 29, 2017, and will fly between the cities three times weekly on Mondays, Thursdays, and Sundays. Levy on scheduled flights on major routes fixed at Rs 5,000 The government has fixed at Rs 5,000 the levy on scheduled flights, being charged from the airlines flying on major routes, to fund its regional connectivity scheme, UDAN. The revised levy, which will be effective from June 1, has now been fixed at a uniform rate of Rs 5,000 per flight till further order, aviation regulator DGCA said in a circular, issued last week. Singapore Airlines invests over SGD 100 million in Vistara Singapore Airlines has invested over SGD 100 million (about 71 million USD) in Vistara, a young and upcoming Indian flight carrier. Vistara is a subsidiary of Tata Sons and was established in 2013 as a joint venture between Singapore Airlines (SIA) and the Tata group with the latter having a 51% stake in the child company. It commenced operations in early 2015. Tata-SIA venture Vistara emerges as most punctual airline in Indian metros Tata Sons-Singapore International Airlines (SIA) joint venture Vistara has emerged as the most punctual flight service in the metros compared to five other main domestic airlines in India. Vistara has emerged as the most punctual flight service in the metros compared to five other main domestic airlines in India. Acumen Aviation © 22 May All Rights Reserved.