That’s airlines’ single biggest cost, accounting for more than half the expenses for some no-frills brands. Some Indian states impose provincial taxes of as much as 30% on jet fuel. A one-way ticket for a 90-minute flight from New Delhi to Mumbai on Sunday was offered for $79 on, compared with $199 for a similar-length flight from New York to Atlanta. The reasons Indian airlines fold vary, but it mostly boils down to a mix of dirt-cheap fares, high taxes on fuel and cut-throat competition, all recently compounded by the disruption from Covid. Smaller regional carriers have also folded in recent years, including Air Costa, which surprised the aviation world in 2014 with an order for 50 Embraer SA jets worth $2.9 billion before things went belly up in 2017.Īs Go First halts flights, competitors’ fares soar hasn’t flown since entering bankruptcy in 2019. Travel agent-turned-billionaire Naresh Goyal’s Jet Airways India Ltd. Kingfisher Airlines, founded by fugitive beer tycoon Vijay Mallya, ended operations in 2012 after failing to clear its dues to banks, staff, lessors and airports. The airline was forced to delay a 36-billion-rupee ($440 million) initial share sale last year while many of its planes were still idled and is now staring at imminent creditor defaults, with liabilities of 114.6 billion rupees ($1.4 billion).Īn Indian court on Thursday reserved judgment - delaying a verdict in response to a plea by the carrier as it sought respite from lessors who want their planes back. The engine-maker, a unit of Raytheon Technologies Corp., has disputed the claim.īut Go has struggled in the past as well, growing more slowly than rival IndiGo, which now controls over half the domestic market, and borrowing heavily to pay lease rentals, airport dues and salaries during the pandemic when its jets were grounded. Once the nation’s third-biggest carrier, Go sought insolvency protection, saying that Pratt & Whitney had failed to supply parts and replacement engines needed for the Airbus A320neo jets that are the backbone of its fleet, even after it was mandated by an arbitration court to do so, forcing it to ground about half its planes. Here’s what makes India both one of the fastest-growing and most difficult markets for operators, as well as suppliers such as Airbus SE and Boeing Co.
0 Comments
Leave a Reply. |