The International Air Transport Association (IATA) forecast that the global airline industry will produce a net profit of $29.3 billion in 2020, improved over a net profit of $25.9 billion expected in 2019 (revised downward from a $28 billion forecast in June). The net profit margin is forecast at 3.4% (up from 3.1% for 2019). The return on invested capital is forecast to be 6.0% (improved from 5.7% expected in 2019). Overall industry revenues are forecast to reach $872 billion (+4.0% on $838 billion in 2019). Alexandre de Juniac, IATA’s Director General and CEO, said,  “Slowing economic growth, trade wars, geopolitical tensions and social unrest, plus continuing uncertainty over Brexit all came together to create a tougher than anticipated business environment for airlines. Yet the industry managed to achieve a decade in the black, as restructuring and cost-cutting continued to pay dividends. It appears that 2019 will be the bottom of the current economic cycle and the forecast for 2020 is somewhat brighter. The big question for 2020 is how capacity will develop, particularly when, as expected, the grounded 737 MAX aircraft return to service and delayed deliveries arrive.”

HVS Ease of Doing Business report has revealed that around 70 licences & approvals are needed to open and operate a hotel in India, while only 45 are required in China. However, in Singapore, only 26 licenses and approvals are needed for opening and operating a hotel. The study states licensing requirements in other countries are not as complex as in India. The number of licences needed to operate a hotel in India are far too many and vary across states.

The overall cancellation rate of scheduled domestic airlines for the month of November 2019 has been 1.87%. AirAsia India recorded least number of cancellations and recorded 0.51% cancellations, followed by Vistara at 0.63% and Indigo at 1.07%. SpiceJet stood at 4th place with 1.51% cancellations and Star Air was fifth at 2.08%. GoAir was at 2.10%, while Air India recorded 3.68% cancellations.

Sarovar Hotels and Resort has announced the opening of their new hotel in the Godavari Delta of Andhra Pradesh. Dindi is in the intersection where the Godavari joins the Bay of Bengal. A destination known for its coconut plantations, serene backwaters, vast lakes and palm-fringed canals, the RVR Sarovar Portico, Dindi has aesthetically designed rooms and Suites, with a view of beautiful lilies and lotus plants. The Godavari Banquet hall at the hotel offers the ideal venue for events of any sort, from weddings to private parties, leisure events to corporate retreats for up to 150 guests. In addition, the hotel has a well-equipped fitness centre, Lake view and complimentary Wi-Fi. Commenting on the development, Anil Madhok, Executive Chairman, Sarovar Hotels & Resorts, said “We are delighted to expand our leisure portfolio. Our vision is to deliver uncomplicated travel experience for our business and leisure travellers. We see great growth potential in this market and look forward to offering the best value to business and leisure travellers in sync with Sarovar’s signature hospitality”.  

The International Air Transport Association (IATA) is in talks with the Indian civil aviation officials to adopt the worldwide airport slot guidelines which will help new airlines get slots at various airports in India. Once adopted, more international airlines will be able to fly into India, connecting more cities worldwide and it could also help the UDAN scheme. As per the guidelines, new entrants which could either be new airlines or those who have not operated from a particular airport will be allowed three daily return flights. Once these slots are used up, that particular airline will not be allocated new slots but will have to bid for the next phase of expansion. (Source: The Hindu Business Line)

Jean-Michel Cassé, Chief Operating Officer (COO) –India & South Asia, Accor has said that Accor will open new hotels in Udaipur and Mumbai in 2020. “Our upcoming properties for 2020 include the launch of Raffles Udaipur, Novotel Mumbai International Airport and ibis Mumbai LBS Road. We also have the Raffles Jaipur and Fairmont Mumbai Sahar, which are in the pipeline. Over the next few years, our focus is to continue to grow our regional network and introduce new brands. We have 25 hotels and approximately 5,000 keys in the pipeline and under active development.” he informed.

The Union Cabinet has given its approval to release funds to the tune of Rs 2,482.07 crore fund for the development of infrastructure and tourist amenities under the Swadesh Darshan Scheme project. Out of this, Rs 627.40 crore has been sanctioned for the 10 Swadesh Darshan Scheme projects sanctioned during 2018-19. It also gave its approval for the release of an additional Rs 1,854.67 crore for sanctioning of new projects during 2019-20 in the scheme. Under the scheme, the Ministry of Tourism is developing critical tourism infrastructure in a sustainable and inclusive manner. The provision of this critical infrastructure will catalyse the private sector investment in revenue-generating projects which in turn would lead to positive enhancement of overall experience of tourists. This would lead to increased footfall in the areas, growth of revenue and employment.

For the redevelopment of Nagpur, Gwalior, Amritsar and Sabarmati railway stations, the government has invited bids involving an investment of around Rs 1,300 crore. The redevelopment was a long-standing demand to spur private investment in the sector. This comes soon after the Indian Railways’ decision to prioritise development of 50 railway stations, drawing from the example of privatisation of six airports in the country.  The Indian Railways Station Development Corporation has invited request for qualification (RFQ) for the redevelopment of these railway stations. The indicative station redevelopment cost for the four projects will be Rs 465 crore for Nagpur, Rs 300 crore for Gwalior, Rs 375 crore for Amritsar and Rs 156 crore for Sabarmati.

The government has said that it has invested over Rs 300 crore for developing airport infrastructure till November this fiscal. In an official statement, the Ministry of Civil Aviation said that as many as 10 airports commenced operations in 2019, 335 routes have been awarded, covering 33 aerodromes during the year. According to the ministry, approximately 3.4 million passengers flew under the government’s regional connectivity scheme, Udan, till date, with 134 routes commencing operations between January and October. “Rs 304.49 crore has been spent on up-gradation of existing and new airports from April to November this year. “Also, 10 airports became operational till December 7 in 2019, of which four are underserved (Lilabari, Belgaum, Pantnagar and Durgapur) and the remaining ones unserved (Kullu, Kalaburgi, Kannar, Dimapur, Hindon and Pithoragarh),” the release said.

Expanding its network, AirAsia India has launched new flights to Kochi and Ahmedabad from Delhi effective December 20. The inaugural starting fares on these new routes between New Delhi-Kochi and New Delhi- Ahmedabad are priced attractively at Rs 3915 and Rs 2015 respectively. Flight no i5791 from New Delhi departs at 4:55 hours and lands in Kochi at 08:00 hours while flight i5792 fly back to New Delhi from Kochi at 08:50 hours and reaches the destination at 12:00 hours. Flight i5795 from New Delhi departs at 21:30 hours and reaches Ahmedabad at 23:05 hours. On its way back to New Delhi, flight i5769 departs at 23:35 hours and lands in New Delhi at 01:05 hours.  The low-cost carrier now flies to 21 destinations pan-India with a fleet of 27 A320 aircraft. While launching flights to Kochi and Ahmedabad, the newly appointed Chief Commercial Officer of the airline, Ankur Garg said, “We continue to strengthen our network across India. I am confident that, with the robust expansion plans we have chalked out for 2020-2021, we will be able to offer our services on many more new routes.” AirAsia India flew 7.60 lakh passengers in November with a 5.9 per cent market share.