Category Archives: Aviation

Kapil Talking on revival plan for airlines, Kapil Kaul, CEO & Director, CAPA South Asia during the TravTalk Digital Conclave said that every airline right now is waiting for a government bailout. “Airlines need government support in terms of a bailout package at the earliest. Airlines almost have no cash flow or no excess cash reserves. The revival of airlines posts COVID-19 crisis must be conditional based on international best practices. They need to have the cash for 2-3 months to function efficiently,” he said. Kaul further said, “If the crisis continues for a longer duration, we will have a smaller, shrinking industry. Possibly some exits possible as well. We might see consolidation in the market and possibly the repair would begin from thereafter.”

All Nippon Airways (ANA) is offering its customers with applicable tickets a full refund with no cancellation fees. The airline has announced temporary change of services on select international routes due to the Coronavirus. This includes its flights to Delhi, Mumbai and Chennai from Tokyo that stand suspended as from April 25 to May 31, 2020. The total number of affected flights to these three India routes will be 180 flights. Requests for refunds can be made up to one year and 30 days from the travel start date (or issuance date if prior to travel). The total number of affected flights by ANA during the summer schedule (March 29 to April 24) is currently at 4,071 serving 72 different routes. An official statement by the airline states, “This is further to our earlier notice of temporary flight reductions/suspensions from India to Tokyo until 24th April 2020. Due to rapidly increasing COVID-19 cases globally, we will be extending the period of flight disruptions from 25th April until 31st May, 2020. For already issued tickets, we will allow special handling, i.e change at NO-ADC or full refund on pre-set conditions. In case of reissue, tickets can be reissued for travel on/before December 31st, 2020 and it will done from Airline side.” It also mentions that a special procedure is available, if all of the following conditions are met: For itinerary from/to Japan (Except WUH/HKG/MFM and Mainland China) 1) Applicable Ticket is 205 plate. 2) Date of Issue Ticket is On/before April 8th, 2020 3) Date of Original Departure is From February 26,2020 to May 31, 2020 4) Applicable Sector is an itinerary that includes flights from/to Japan on unused sectors.  

The Egyptian cabinet has approved a six-month deferral plan on utility payments for tourist establishments and private airlines. The payments will start from October. Also part of this is the postponement of real estate tax on tourism facilities for three months, which can be paid in instalments as well.

All airlines will be relocated to the airport’s other terminals and all operations at Singapore Airlines will be consolidated in Terminal 3. The airport is aiming to use this move to speed up on-going construction and upgrading work at T2 and shorten the project time by up to a year.

According to the latest update by CAPA on the state of the Indian aviation industry, Indian carriers will require a domestic fleet of around 300-325 aircraft from Oct-2020 onwards, and an international fleet of 100-125 aircraft. The total fleet size of 400-450 aircraft would still mean that the current fleet of 650 represents a surplus of 200-250 aircraft for a period of 6-12 months. While a gradual path towards normality could be expected during Q3 and Q4, the Indian aviation sector is likely to shrink significantly, even if some of the vulnerable airlines manage to survive. This estimate may still be conservative and assumes that Q1 FY2021 will be almost written-off, with traffic limping back during the weak second quarter, followed by a gradual trajectory towards normality during the second half of the financial year.

The travel trade community has received a reprieve as a result of urgent meetings initiated by travel trade associations on behalf of their members with Pradeep Kharola, Secretary, Ministry of Civil Aviation, in terms of refunds on air tickets. The respite however due to this intervention is only from two international airlines – Singapore Airlines and Lufthansa Airlines. Both airlines have updated their offer and will now give full refunds as well, in case the customer wants, but there could be a delay due to backlog. Singapore Airlines however has further offered bonus to people who wish to claim their refunds as credits rather than take cash refunds (over and above the value of ticket).

According to a report released by CAPA India, domestic air traffic is expected to drop to 80-90 million passengers in the current fiscal against an estimated 140 million passengers. The delivery of more than 200 planes to Indian carriers are also likely to be deferred by up to two years. International traffic is expected to fall from approximately 70 million in the previous financial year to 35-40 million passengers or maybe even less in the current fiscal. As a result, the majority of the fleet is likely to be surplus to requirement during the first half of the current financial year. While giving the forecast, CAPA India said it is an initial estimate and would be continually revised. A gradual path towards normalcy could be expected towards Q3 and Q4, the aviation consultancy firm said.

An official statement by IATA has said that travel agents can make payment settlements later without penalties, in the wake of the global crisis of COVID-19. The statement read “For travel agents, we’re allowing settlements to be made a bit later, without penalties. While remittance periods have been kept in accordance with BSP Calendars, we are taking a flexible approach and preliminary figures confirm this, showing that default rates in 2020 are a bit below the year-ago period—despite the stresses on the system in 2020.” In addition, recognising the fact that it may be difficult or impossible to get audited financial statements, or arrange a financial guarantee, “IATA is offering to extend deadlines for these statements by up to a month.”

DEX Aviation is now going to represent Alitalia as GSA (General Sales Agent) for India. According to a statement released by DEX Aviation, the company has become the nationwide GSA for the Italian carrier starting 1st April 2020. Lucio Rigo, Country Manager- India, Alitalia, said that they are hoping that things normalise soon and the industry picks up again, so that they would be able to serve Indian passengers again.

According to the latest data provided by International Air Transport Association (IATA), the airline industry could be staring at an estimated $35 billion of ticket refunds. This, clubbed with significant fixed and semi-fixed costs of which many cannot be avoided over a short period of time, can amount to the airline industry using up to $61 billion from its cash reserve in the second quarter (Q2) of 2020. This comes after IATA’s impact assessment released earlier, which showed that the industry was looking at a net loss of $39 billion in Q2 2020.