Category Archives: Aviation

In the APAC region, while Northeast Asia has taken the major brunt of the crisis with bookings being down by 83%, South Asia has been significantly less impacted and most of the countries in the region on an average 50 to 60 per cent behind 2019 levels, reveals ForwardKeys.

Latest data on future bookings to India by ForwardKeys suggests that whilst there is no upward surge in tickets for November, travellers are generally holding onto their tickets. Ticketing history also tells the same story. Olivier Ponti, VP Insights says, “Bookings are flat as we can see a ‘wait and see attitude’ taking place, however, we expect the situation will evolve when people get more clarity regarding travel restrictions.”

Dr Mario Hardy, CEO, PATA, has said that, while travel bubbles and green corridors are a great idea, but there is a lot of complexity involved in setting them up. “It is not a simple task. There are bilateral agreements involved between the two countries. It’s not only the immigration department involved but also health departments and ministries of health of the respective destinations. However, the countries need to agree to have enough trust in the healthcare system of the respective destinations to allow people to travel across their borders.”

According to CAPA Fleet Database, monthly aircraft deliveries are starting to recover, but remain low. Total deliveries were already falling YoY in Jan-Feb 2020. This fell further in March 2020 by 58%. Although the number doubled from May 2020 to June 2020, it was still down by 60% YoY.

A report by Directorate General of Civil Aviation (DGCA) for June shows that 78.5% of complaints from passengers were regarding refunds. It added that 62% flights were cancelled due to commercial reasons (low load, clubbing of flights). The most complaints in June were against Air India, followed by TruJet and SpiceJet.

IATA has reported that intra-EU passengers have used many vouchers, issued since mid-March 2020 in lieu of refunds, to pay for travel between 15-Jun-2020 and 15-Jul-2020. Airlines are now incurring the deferred cost of transporting these passengers against limited or zero new revenues. IATA stated, “Whilst the issuance of vouchers helped decelerate cash burn a few weeks ago, their use will now accelerate cash burn in the coming months’. The data is based on IATA’s Billing and Settlement Process, which underestimates the use of vouchers because it does not record vouchers as exchanges in all cases.

Ministry of Civil Aviation (MoCA) has set up a single-window clearance mechanism to expedite various investment proposals in the domestic aviation industry. “MoCA has an Investment Clearance Cell (ICC) for prompt assistance and clearance,” the ministry mentioned in a tweet recently. According to MoCA the setting up of the ICC was announced by Finance Minister Nirmala Sitharaman in 2020-2021 Union Budget in February this year. The cell was also set up following an order from the Department of Promotion of Industry (DPIT) on July 1 in this regard. The 10-member ICC will be headed by Amber Dubey, Joint Secretary, MoCA. The ICC has been mandated to serve as a single-window system for attracting investment and its terms of reference include accelerating investments, bringing projects to the Empowered Group of Secretaries (EGoS) which require special incentive, policy interventions, expeditious clearances and systematic references, among others, the MoCA order said.

The average lead time, i.e. the number of days between booking date and travel date (how far in advance travellers book their trips), for long- haul travel to South Asia is 73 days, according to ForwardKeys.

Hardeep Singh Puri, Minister of Civil Aviation, has said that international operations will begin in air bubbles now, which will be active with a few countries including France, US and the UAE. He further revealed that air bubbles will operate for a while and only then will regular international operations begin. “Negotiations are at an advanced stage with at least three countries. We formally signed for Air France operating 28 flights from Paris to New Delhi, Mumbai and Bengaluru between 18th July and 1st August. Apart from that we have an agreement with United Airlines to operate 18 flights between 17th and 31st July. We have requests from Germany also, and the negotiations with Lufthansa are almost done. Some details have to be worked out,” he said.

The re-opening of Colombo’s Bandaranaike International Airport has been suspended indefinitely. The airport was scheduled to re-open in August, but due to the rising COVID-19 cases in the country, operations and repatriation flights have been halted for the time being.