Tuesday, July 17, 2018

Indian airlines eyeing international skies

Kolkata: Indian airlines are moving towards the international market in search of better returns as the intensifying fight for a bigger share of the world’s fastest growing domestic market drives down profits, says a recent report by Reuters.

A data report from the travel firm Rome2Rio, says that, India is among the cheapest domestic airlines market in the world, with an average fare of 13 cents per kilometre flown, less than half the 27 cents per km average in China and the United States of America (US). Promotional offers on a two-hour flight from Mumbai to Delhi, such as, USD 50 one-way tickets, are easier to find, and for the airlines that are expected to take delivery for more than 500 aircraft in the next five years, the pressure on profits and fares are also increasing. The Indian airlines market is growing by 30 pc.

According to Reuters, since 2015, the profits of the global airlines have been strong, though the variations between regions are wide, therefore the Indian carriers are struggling to keep their profit constant, despite them enjoying almost 90 pc seat reservation in the domestic market and benefitting from a more than double of the domestic passenger numbers over the last four years.
Airlines including SpiceJet Ltd (SPJT.BO), Vistara, InterGlobe Aviation Ltd’s (INGL.NS) IndiGo are conversing so that they can buy or lease the widebody aircraft, and to boost profit they are firming up international growth plans.
17/07/18  Varsha Singh/Media India Group
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