Airline News
India Roundup
March 2nd 2015
Vistara, the full-service joint-venture between Tata Sons and Singapore Airlines that launched domestic service on January 9 operated with a 45% load factor in the first month, according to Indian Directorate General of Civil Aviation (DGCA) data. Read More » Rival carrier, Jet Airways, filled 87% of its seats in the same month, followed by IndiGo (85.2%) and national carrier Air India (82.4%). SpiceJet and GoAir reported 80% and 79.2%, respectively.
SpiceJet’s market share slipped into the single digits, at 9.4%, reflecting the partial grounding of its fleet and network consolidation under a $24.3 million turnaround plan for the airline. SpiceJet’s former promoter, Ajay Singh, returned to the airline in January with a 60% stake, following the exit of India’s influential Maran family. IndiGo retained the highest market share, at 36.4%, trailed by Jet (19.6%) and Air India (18.7%).
India’s DGCA has started to restructure its safety board and hire airline safety professionals ahead of an International Civil Aviation Organization (ICAO) audit this year. Previous ICAO audits had highlighted the paucity of safety inspectors at India’s aviation regulator. In its 2006 and 2012 audits, ICAO ranked the country 13th in its list of the worst-performing nations. The U.S.’ Federal Aviation Authority (FAA) followed ICAO’s 2012 audit with its own and downgraded India, effectively barring new flights to the U.S. by Indian airlines. The FAA is expected to return to India this summer for a review.
India’s aviation minister, Ashok Gajaphati Raju, made it clear the country’s unpopular 5/20 rule will have to go. He said his ministry was finalizing a replacement policy. The 5/20 rule stipulates an airline must be five years old and have a fleet of at least 20 aircraft before it is allowed to fly overseas. Hoping the FAA will upgrade its safety assessment on Indian carriers, Vistara chief, Peeh Teik Yeoh, has said he hopes “to operate overseas very soon”. Giam Ming Toh, Vistara’s chief commercial officer, added that “organizing wide-body aircraft for flights to the U.S.and Europe would require 12 to 18 months” once the restrictions have been lifted. He said Vistara was particularly interested in serving New York and Washington.
