Tag Archives: Domestic airlines

Aviation Regulator Directorate General of Civil Aviation (DGCA) on Thursday, has placed low-cost carrier SpiceJet under enhanced surveillance due to safety deficiencies uncovered during a recent audit of August 2024. This is the third time SpiceJet has faced strict supervision from the regulator, following safety incidents in 2022 and weak finances in 2023. The airline’s monetary troubles have resurfaced, as evidenced by recent incidents like the Dubai Airport halting boarding of SpiceJet flights due to unpaid dues and flights being unable to fly over Pakistan due to unpaid overflying charges. The DGCA’s decision to place SpiceJet under enhanced surveillance underlines ongoing safety concerns with the airline’s operations. The repeated regulatory scrutiny of SpiceJet can damage the reputation of India’s aviation industry and raise questions about safety standards. “Due to concerns about SpiceJet’s recent flight cancellations and financial difficulties, the DGCA conducted a special audit of the airline’s engineering facilities on 7 and 8 August, 2024. This audit uncovered certain deficiencies,” the DGCA announced on Thursday. The DGCA will conduct more spot checks and night surveillance to ensure safety of SpiceJet’s operations. The airline faces significant financial challenges, including unpaid dues to aircraft lessors, vendors, and suppliers. SpiceJet’s market share in India’s aviation sector has been declining, further impacting its financial stability. While most Indian airlines rebounded significantly from the COVID-19 pandemic, SpiceJet faced ongoing financial challenges. SpiceJet’s repeated regulatory interventions and ongoing financial struggles pose a serious challenge to the airline’s future. The DGCA’s decision to place the airline under enhanced surveillance underscores the need for immediate action to address safety concerns and ensure the well-being of passengers.

CRISIL Ratings estimate a rise of more than 20 per cent in the profit of the domestic airline industry in the next fiscal year. The subsequent increase in profit is being accredited to the surge in passenger traffic, the ability to pass on volatile fuel prices to flyers, and reduced fluctuation in foreign exchange rates.

VCADomestic air passenger traffic grew to 14.41 crore in 2019, an increase of just 3.74 per cent compared to 2018, revealed Directorate General of Civil Aviation (DGCA).  The domestic air passenger traffic grew by 18.6 per cent to 13.89 crore in 2018. The decline in growth is attributed to the collapse of Jet Airways in April 2019. The passenger load factors of all major airlines – Air India, SpiceJet, GoAir, IndiGo, AirAsia India and Vistara. The domestic air passenger traffic in December 2019 increased by 2.56 per cent to 1.30 crore compared to the same month in 2018. In comparison, the growth in domestic traffic in November 2019 was 11.18 per cent.

According to data released by DGCA, passengers carried by domestic airlines during Jan-May 2016 were 396.04 lakhs as against 322.32 lakhs during the corresponding period of previous year thereby registering a growth of 22.87% . The statistics revealed that the passenger load factor in the month of May 2016 has slightly increased compared to previous month primarily due to the onset of tourist season. The overall cancellation rate of scheduled domestic airlines for the month of May 2016 has been 0.55%. Air Asia has been leading in terms of On Time Performance (OTP) at 90.2 per cent leaving behind Vistara and Indigo. SpiceJet emerged as the winner again in Passenger Load Factor (PLF) at 93.5 per cent.

Domestic airlines carried 309.35 lakh passengers during Jan-Apr 2016 as against 251.05 lakh passengers during the corresponding period of 2015 thereby registering a growth of 23.22 per cent. DGCA released the figures after analysing traffic data submitted by various domestic airlines for the month of April 2016. In terms of On-Time Performance (OTP) of scheduled domestic airlines Air Asia ruled the roost at 89.1 per cent with Indigo close behind at 88.5 per cent. In terms of Passenger Load Factor, SpiceJet remains ahead at 93.2 per cent in April.