Tag Archives: CAPA India

CAPA India has said that India should urgently introduce mechanisms to institutionalise consumer protection, providing full refunds in the event of airline closure, along the lines of @ATOLprotected in the UK, which is run by the @UK_CAA). CAPA India has been recommending this since 2011: CAPA India

CAPA India has said that the aviation policy should plan for airport capacity that will last for a generation and beyond, and which is developed ahead of demand. “Delhi and Mumbai need to start planning for 3rd airports, for which land acquisition should commence immediately,” it was stated at its 35th Research Briefing.

The Indian aviation sector would attract more than $275 bn in investment over the next 20 years, revealed CAPA India. Indian aviation would attract $175 bn in funding for fleets and $70–80 bn in financing for airports, it was revealed at the summit.

At the CAPA India webinar, India’s financial outlook FY22-23 revealed that domestic traffic may reach FY19-20 levels this year, but international will take until FY23-24. There is a visible softening of demand due to fuel prices and economic conditions. 2022 is predicted to be another loss-making year, losses will be trimmed, but will remain substantial.

CAPA India reveals that among PPP airports, Hyderabad is expected to recover closest to pre-COVID traffic at 31.3 per cent, while Mumbai will be the furthest behind at 52.3 per cent. This is according to its updated outlook for airports for FY2022. And though Mumbai’s recovery underperforms other metro airports, it may be possible for the airport to accelerate during the year and achieve higher volumes.

CAPA India recommends the development of 100 new low-cost airports by re-targeting of the planned $4-5bn of capital and other assets earmarked for investment in regional aviation over next 10 years.

Only 60% of the pre-COVID traffic is allowed to enter the country from a border control perspective, revealed a recent CAPA India report. The report states, “Although foreign business travellers and OCI holders are once again permitted to enter the country, India remains closed to leisure visitors, VFR travellers (unless they are NRIs or hold OCIs) and medical tourists. Only 60% of the pre-COVID traffic is allowed to enter the country from a border control perspective. Of which the majority is expected to defer travel given the risks and inconvenience associated with international travel at present.”

Kapil Kaul, CEO, CAPA India, has suggested that leadership and governance will be essential in making structural changes in tourism. “Since tourism is going to be very dynamic going forward, we may require a specialised Tourism Administrative Service, which has policymakers on the lines of IAS. Since tourism covers so many aspects, unless we have policymakers who specialise in tourism, institutional foundations can’t be fed. There is also a need for a legally empowered tourism council on the lines of GST council, which can comprise of union minister of tourism, state tourism minister, secretaries and all other experts whose job should only be focused on policy and regulatory effectiveness, competitiveness, ease of doing business, financing, education and training,” he recommended.

Kapil Kaul, CEO, CAPA India, has said that Indian travel and aviation industry can use COVID for structural changes or reforms. “Indian travel and aviation industry must not push for tactical changes, but push for structural changes,” he said at the CAPA India webinar titled ‘Designing a Strategy for the Revival of Indian Inbound, Outbound & Domestic Tourism’.

India’s airlines could still have 250-300 surplus aircraft by March 2021, and could therefore be headed for an unprecedented consolidated loss of USD 4-4.5 billion in FY2021. Approximately 400-450 aircraft were grounded by end of Q2 2020. This figure is expected to improve slightly with 250-300 aircraft being grounded by end of Q4.