Explore Business Standard
Aviation Industry
With sharp rise in fuel costs as well as tight capacity and thin margins for airlines, airfares are already rising in the wake of the Middle East war, global airlines' grouping IATA said on Tuesday. The International Air Transport Association (IATA) represents around 350 airlines, including Air India, Air India Express, IndiGo, and SpiceJet. On Tuesday, the grouping released the data for global passenger demand in February 2026 and said total demand in terms of Revenue Passenger Kilometres (RPK) rose 6.1 per cent last month compared to the year-ago period. Total capacity, measured in Available Seat Kilometres (ASK), increased 5.6 per cent year-on-year while the passenger load factor stood at 81.4 per cent, the highest February figure on record, it said in a release. IATA Director General Willie Walsh said with an RPK expansion of 6.1 per cent, February was a strong month, showing that the fundamentals for demand growth were in place for a positive year. "However, without knowing t
Airlines will start offering at least 60 per cent of seats in a flight without levying any additional charge from April 20, as well as maintain a transparent seat allocation policy, according to aviation watchdog DGCA. On March 18, the civil aviation ministry announced that directions have been issued to the DGCA to direct airlines to allocate a minimum of 60 per cent of seats for selection on any flight free of charge to ensure fair access for passengers. In this regard, the Directorate General of Civil Aviation (DGCA) issued the amended Air Transport Circular dated March 20. A DGCA official said the circular would come into effect from April 20. The regulator has said that airlines should ensure at least "60 per cent of the seats in any flight shall be offered free of charge". "Airlines should maintain transparent seat allocation policies and clearly communicate the availability of free seats and applicable conditions on their booking interfaces," as per a revised circular dated
Ratings agency ICRA on Friday revised its outlook on the Indian aviation industry to negative from stable, citing disruptions in international airspace following escalation of geopolitical tensions in West Asia. The revision in outlook is also on account of a sharp depreciation of the rupee against the US dollar and an expected increase in jet fuel (ATF) prices, ICRA said. These factors are likely to significantly increase cost pressures for airlines, even as demand growth faces downside risks, it said. The ratings agency said it expects domestic air passenger traffic growth to be at 0-3 per cent for the ongoing fiscal year and international passenger traffic growth for Indian carriers at 7-9 per cent, indicating a relatively weak near-term demand environment. Prior to the West Asian crisis, ICRA had estimated domestic air passenger traffic growth at 6-8 per cent and international traffic growth for Indian carriers at 8-10 per cent for FY27. However, these projections now carry a
Air India has detected large-scale discrepancies in the utilisation of its leisure travel policy, involving more than 4,000 employees and has initiated corrective actions, including imposing penalties on the erring staff, according to sources. Loss-making Air India was acquired by the Tata Group in January 2022, and the airline, which has faced multiple headwinds in recent times, is also in the midst of implementing an ambitious transformation plan. The airline has more than 24,000 employees. The sources in the know told PTI that the large-scale discrepancies in the use of Air India's Employee Leisure Travel (ELT) policy were detected after a detailed internal investigation. The ELT policy allows a specified number of free air tickets for individual employees and their nominees, including spouse and parents. These are subject to certain conditions. Many employees were found to have misused the policy by showing those not related to them as relatives to avail the benefits. Some were
Domestic carrier Akasa Air on Friday announced a strategic collaboration with Noida International Airport for setting up an aircraft maintenance, repair and overhaul (MRO) facility at the upcoming airport in Jewar, Uttar Pradesh. Under the collaboration, Akasa Air will operate the facility within the airport premises, offering advanced MRO services, supporting a broad spectrum of maintenance activities, it said in a statement. Aimed at strengthening India's aviation infrastructure and positioning Noida International Airport (NIA) as one of the country's leading MRO hubs, the facility will enhance operational efficiency, generate local employment opportunities and foster skill development in the region, as per the statement. This would be Akasa Air's first MRO facility, since its launch in August 2022. "This partnership will not only enhance India's MRO capabilities but also create opportunities for skill development and employment in the region," said Christoph Schnellmann, Chief
Akasa Air's Co-founder and Chief Commercial Officer Praveen Iyer has resigned, marking the second high-level exit at the over three-year-old airline in four months. In a statement on Wednesday, the airline said that after a remarkable five- year journey, Iyer has decided to move on to begin the next chapter of his life. He will partner closely with the leadership team to ensure a smooth and structured transition through April 30, 2026, it added. Iyer is the second Co-founder after Neelu Khatri to leave the airline, which started flying from August 7, 2022. Khatri stepped down in October 2025. Iyer is also part of the airline's Executive Committee. Now, Akasa Air has four Co-founders -- Aditya Ghosh, Anand Srinivasan, Belson Coutinho and Bhavin Joshi. Vinay Dube is the Founder and CEO of the airline. Currently, the airline has 33 Boeing 737 MAX aircraft.