Neelam Mathews

With airline seating capacity throughout India down about 20 percent from its peak, the country appears set to lose its standing as the world’s lowest-airfare market. About 100 airliners now sit grounded or out of service, suggesting the aviation sector will almost certainly not see the near 19 percent growth many forecasters projected for this year. &nbsp;

 


The March 10 Ethiopian Airlines Boeing 737 Max crash near Addis Ababa prompted Indian authorities to ground some 13 Max jets flown by SpiceJet and five by cash-strained Jet Airways, an airline that already had grounded 56 airplanes due to financial troubles. Others include GoAir, nine of whose Airbus A320neos await engine spares; Air India, which has grounded 17 airplanes for similar reasons; and IndiGo, which has taken out of service 10 airplanes and cut some 100 flights a day due to a pilot shortage.&nbsp;

 


“Capacity reduction is likely to see annual growth come down to 14&nbsp;to 15 percent,” said Vishok Mansingh, CEO of Mumbai-based aviation consultancy CAV Aero.&nbsp;“With this reduction fares will likely go up by 10&nbsp;to 15 percent. In the long term, the increase in fares is good for the stability of aviation in India.”

 


Most carriers have experienced heavy losses due to rock-bottom competitive fares.

 


The reduction in seat capacity is the most severe on the Delhi-Mumbai city pair, which commands a 50 percent share of the domestic market. The closure of a runway at Mumbai’s Chhatrapati Shivaji Maharaj International Airport for repair three times a week during peak hours until the end of March has exacerbated the situation. Fewer flights have resulted in soaring fares. A study done by online travel agency Yatra&nbsp;has shown airfares in the sector have doubled over the last year. “While comparing the domestic air traffic of January 2019 with last year, there has been a growth of about 9 percent," said Yatra&nbsp;COO Sharat Dhall. "The percentage of growth has been affected due to unprecedented flight cancellations by various airlines impacting the overall capacity and market growth adversely.”&nbsp;

 


Meanwhile, SpiceJet is working on reducing cancellations through more efficient use of its existing fleet of 64 aircraft, adding two wet-leased Boeing 737s&nbsp;and canceling low-yield routes. SpiceJet will now fly a planned Max route from Hyderabad to Jeddah starting March 25 with the 737-800.

 


Despite the initial pain, some good may come from the pullout of aircraft,” an airline official told AIN. “The smallest carrier, AirAsia India, may just get some slots at major constrained metro airports released by airlines unable to retain them,” he noted.

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

Indian Growth Rates To Slow as Airlines Cut Capacity

Some 100 airliners in India sit grounded, not all of them Boeing 737 Maxes. 

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Agreement between start-ups could lead to orders for up to 15 aircraft

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Howard Hardee

Airline plans to gradually replace its Embraer E-Jet fleet

A220’s Performance Drives BermudAir’s Fleet Growth

Partners say eVTOLs could accelerate response times in crowded Indian cities

Air India Backs SkyDrive Emergency Medical eVTOL Plans

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Airbus Balances Shareholder Returns and New Aircraft

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

Connections to London Heathrow and Manchester airports will start first

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

More In Airlines

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Agreement between start-ups could lead to orders for up to 15 aircraft

A220’s Performance Drives BermudAir’s Fleet Growth

Airline plans to gradually replace its Embraer E-Jet fleet

Air India Backs SkyDrive Emergency Medical eVTOL Plans

Partners say eVTOLs could accelerate response times in crowded Indian cities

Airbus Balances Shareholder Returns and New Aircraft

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

Connections to London Heathrow and Manchester airports will start first

ATR Chases New Regional Markets for Twin Turboprops

Iran war and wider geopolitical pressure stall buying decisions

Embraer Racks Up E-Jet Orders at Farnborough

30 firm orders led by Abra

Gulf Air May Buy JetZero’s Blended-wing-body Z4

Japan Airlines also expresses interest at Farnborough Airshow

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN