Ummid Assistant

Jamia Millia launches courses on China, Afghanistan

IGNOU launches value education programme for teachers

Welcome Guest! You are here: Home 2011 in Retrospect

Aviation industry rocked despite traffic growth

Monday December 26, 2011 10:35:24 PM, Rohit Vaid, IANS

2011 in Retrospect

A difficult year for Pakistan

The year 2011 saw Pakistan making headlines for all the wrong reasons, compounded by yearend uncertainty about the political future of a nation that is a declared nuclear power. Will the military take over the reins of government yet again was the common refrain  

A year of satisfactory space missions

To those we said sayonara... RIP

Robust growth in telecom amid shadow of 2G case

India-Pakistan ties: A year of building trust

The year of social activism in India

Making India-US ties a 'cornerstone of Asia-Pacific century'

Jailhouse rock for the high and mighty

Jugnu capped India's technological achievements

New Delhi: Despite a 17-percent growth in passenger traffic, India's civil aviation industry hit turbulent weather in 2011 with rising jet fuel and interest costs eating into the margins of carriers. One budget airline also had to close shop.

Along with these were some other factors that earned a bad name for the industry, such as the scandal involving some pilots with fake licences, three crashes and charges of predatory pricing against some carriers when rivals faced a workers' strike.

"Spiraling jet fuel prices and a high interest rate regime in 2011 threatened the survival of some domestic carriers," said Amber Dubey, director, aviation for global consultancy firm KPMG. "Our jet fuel prices are 50-60 percent higher than global average."

The year was dominated by the struggle Air India faced to keep afloat, as it continued to reel under a huge debt, estimated now at Rs.43,777.01 crore towards purchase of new aircraft and working capital loans.

This apart, the management faced three strikes, mainly due to late payment of salaries and a problem over the merger of Indian Airlines, which stranded thousands of passengers, and added crores in losses to the already bleeding carrier.

Other carriers also faced similar financial trouble and even approached Prime Minister Manmohan Singh last month to seek his intervention in at least getting aviation fuel and loans at a cheaper rate.

Among the other carriers, Vijay Mallya-led Kingfisher, which had acquired Air Deccan with much fanfare in 2007, shut down the budget operations to concentrate as a full-service carrier, while its market share dropped to fifth from third in October.

The only carrier that remained a profit-making operation was low-cost IndiGo, which also hit the headlines by announcing an order for 180 aircraft from Airbus Industrie worth as much as $15.6 billion.

Indian carriers, which flew 55 million domestic passengers between January and November against 46.8 million in the like period of last year, also utilised just 20 percent of their overseas entitlement, against 39 percent into India by foreign airlines.

Rajiv Gandhi Bhavan, which houses the civil aviation ministry, also saw a change of guard with Praful Patel first being replaced by Vayalar Ravi earlier this year and then Ajit Singh taking over last week.

Some key reforms remained unattended.

"There is need to expedite big-ticket reforms like allowing foreign airlines to buy stake in domestic carriers and rationalisation of federal and state levies on jet fuel," said Dhiraj Mathur, executive director with PricewaterhouseCoopers.

According to ministry officials, all these may be factored in when a new civil aviation policy is announced -- over the next five months.

Following are the highlights of India's aviation industry in 2011:

-Air India's debt rises to Rs.43,777.01 crore

-Three strikes by Air India staff hit carrier, leaving passengers stranded

-Vayalar Ravi takes over the civil aviation ministry from Praful Patel

-Concern over security as some pilots charged with producing fake licences

-IndiGo places order for 180 aircraft with Airbus worth $15.6 billion

-Kingfisher shuts budget operations, the erstwhile Air Deccan

-Prime Minister Manmohan Singh meets the airline chief

-After Praful Patel and then Vayalar Ravi, Ajit Singh named aviation minister

 

(Rohit Vaid can be reached at rohit.v@ians.in and biz@ians.in)
 


 



 

 

 

 

 

 

 

 

Bookmark and Share

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

i

 

 

 

Top Stories

Anna set for fast, political class dubs him 'impatient'

Anna Hazare Monday prepared to take on the UPA government over his insistence on a strong Lokpal with a three-day hunger strike in Mumbai starting Tuesday but he  

Over one lakh netizens pledge to court arrest to back Anna

 

  Most Read

Lokpal can destabilise the nation: Vayalar Ravi

Minister for Overseas Indian Affairs Vayalar Ravi has warned that if basic principles were incorrectly applied, a Lokpal can potentially "destabilise the nation". "I don't say there is no corruption in the country. But that  

Hyderabad to host world Urdu editors conference

Editors of Urdu newspapers from India, Pakistan and other countries will participate in the World Urdu Editors Conference to be held here Dec 30-31. The two-day event, being organised by Urdu daily Siasat, will discuss the problems faced by Urdu newspapers and Urdu journalists.  

 

  News Pick

It is Mayawati vs all others in Uttar Pradesh

The race for the next assembly in Uttar Pradesh may be largely four cornered. But, it is increasingly evident that the electoral battle slated for February in the country's most populous  

Elections at a glance

India celebrates X-mas with carols, joy, feasting

Homes decked up with lights and stars, midnight masses, church services, exchanging gifts, carol singing and feasting -- India, where Christians constitute 2.3 percent of the population, Sunday celebrated Christmas with  

A difficult year for Pakistan

The year 2011 saw Pakistan making headlines for all the wrong reasons, compounded by yearend uncertainty about the political future of a nation that is a declared nuclear power. Will the military take over the reins of government yet again was the common refrain  

 

Picture of the Day

Union Human Resource Development Minister Kapil Sibal inaugurating the long awaited Aligarh Muslim University (AMU) special centre at Malappuramm in Kerala  on December 24, 2011.

 

 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Religion

RSS

Scholarships

About us

International

Culture

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

     

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

2010 Awaz Multimedia & Publications. All rights reserved.