28 Jun 2017

India Aviation Industry Newsletter 28 June

India’s aircraft orders to exceed 1,000 with Jet Airways’ imminent order According to CAPA’s earlier research Low cost carriers (LCC’s) account for more than 85% of India’s current order book of 923 aircraft, but in the coming weeks two of its full service airlines will add to the tally. Jet Airways is expected to place an order for a further 100 narrowbody aircraft (this figure may include options) – taking its total of the type to 175 – while Vistara is likely to order 50 narrowbodies and 50 widebodies its ratio of 2.2 aircraft on order for every aircraft in service would be the highest of any major aviation market. India's Aviation Ministry seeks 2-month delay of GST India's Aviation Ministry sought to postpone implementation of the country's biggest-ever tax reform to give airlines more time to bring their ticket-booking software up to speed. The move marked the first effort by a central government entity to postpone the planned July 1 nationwide rollout of the Goods and Services Tax, which will replace more than a dozen existing indirect taxes. India’s Capital To Get Second International Airport India’s domestic traffic growth of 20 percent a year has led the federal government to clear a $3 billion proposal to construct a greenfield airport at Jewar, some 72 miles from Delhi International Airport (DIA), the busiest in the country. DIA, which now sees annual passenger throughput of 62 million, will become saturated once it reaches its peak capacity of 109 million. The new airport will reside in the 42,000-sq-km National Capital Region (NCR), which includes Delhi and surrounding urban areas of three neighboring states. The cluster comprises one of the largest metropolises in the world, holding a population of more than 47 million. India enters US CBP's Global Entry Trusted Traveller Programme US White House Office of the Press Secretary confirmed the US has begun accepting applications from India for the US Customs and Border Protection's (CBP) Global Entry Trusted Traveller Programme. In 2016, Indian visitors in the US spent nearly USD13 billion, making India the sixth largest market for US travel and tourism exports. India's GoAir mulls UDAN partnerships but no plans for props GoAir is in early talks with regional Indian operators over possible cooperation that could see the LCC tap additional passenger traffic generated by the government's regional connectivity scheme (Ude Desh Ka Aam Nagrik - UDAN). Jet Airways to expand codesharing with three international airlines Jet Airways said that it will expand its codeshare agreements with Air France, KLM Royal Dutch Airlines and Delta Air Lines. “Under the expanded scope, the carriers will expand choice and connectivity options for guests flying between India and Europe. In the first instance, Air France and Delta are codesharing on Jet Airways’ current service between Mumbai and Paris,” the airline said in a statement. Mahindra Aerospace 10-Seat Turboprop Receives FAA, CASA Certification Mahindra Aerospace has received a FAR 23 type certificate from Australia’s Civil Aviation Safety Authority for its Airvan 10, the company said. Australia’s first 10-seat, single-engine turbine aircraft has also received a type certificate from the FAA. The World's Top Airline Stock Is India's SpiceJet With 124% Gain Two and a half years after SpiceJet Ltd. was forced to ground its entire fleet on its inability to pay a mere $2.2 million in fuel bills, the budget airline has become the world's best-performing airline stock -- with $26 billion in plane orders to boot. The company's co-founder and Chairman Ajay Singh has played the white knight, injecting capital, cutting loss-making routes and aggressively adding capacity in one of the world's fastest growing markets. To top it all off, crude prices are staying low.  For investors, that's been a winning formula: SpiceJet shares are the best performers on a Bloomberg Intelligence index of airline stocks this year. The stock is up 124 percent in 2017 and has gained more than 800 percent since the company's near-demise in December 2014, giving SpiceJet a market value of $1.2 billion. USIBC sets up India task force on civil aviation The US-India Business Council has constituted a task force to identify opportunities in the Indian Civil Aviation sector. The task force, chaired by engine maker Pratt & Whitney’s Managing Director (India) Palash Roy Chowdhury will focus on identifying opportunities based on the National Civil Aviation Policy (NCAP). Amber Dubey, partner and head of aerospace and defence at leading consultancy KPMG in India, will be the Co-Chairman of the India task force. With over 1,000 aircraft set to be on order, India is poised to become the third-largest buyer of commercial passenger planes in the world, with only the US and China ahead of it. The aircraft order book of the Indian airline industry will soon touch 1,080, which would mean that for every aircraft in service, there will be 2.2 aircraft on order, said a report released by the Centre for Asia Pacific Aviation (CAPA). We want Air India's overseas ops:Full text of IndiGo prez's letter to staff According to the Business Standard IndiGo has expressed an interest in Air India confirmed by airline President & Wholetime Director Aditya Ghosh to his employees. “We have indeed submitted a letter to the Government of India today (Thursday) on this subject and had to file that letter (attached) with the stock exchanges” the letter said. Acumen Aviation © 28 June All Rights Reserved.