Arindam Majumder

Indian airlines face difficulty increasing fares to cover rising costs and make profits, despite a significant post-Covid recovery in passenger traffic. Competitive market dynamics and high fuel prices are primary challenges. Consolidation in the industry, including recent mergers and airline closures, hasn't benefited airlines. IndiGo and Air India carry most domestic passengers, maintaining competitive fares to attract customers.

Noida International Airport (NIA) completed its first validation flight, a crucial step towards its April 2025 opening. This follows successful navigation system calibration and simulator trials. The Airbus A-320 test flight validated landing procedures. Originally slated for a 2023 opening, the airport is expected to ease capacity constraints faced by Indian airlines.

IndiGo is introducing business class seating on its domestic flights, challenging Air India's dominance in the corporate travel market. This move aims to attract high-paying customers and increase profits, potentially leading to lower business class fares and improved services for travelers.

Akasa Air is securing a $130-140 million investment from a consortium led by Premji Invest and Claypond Capital. The Jhunjhunwala family is also reinvesting, maintaining their majority stake. The funds will support Akasa's expansion plans and aircraft pre-delivery payments, despite delays in Boeing 737 Max deliveries impacting projected income.

A group of Akasa Air pilots has accused the airline's trainers of favoritism and promoting less experienced pilots. They allege safety violations are being overlooked and deserving pilots are failing training. The pilots have lodged a complaint with the civil aviation minister and the DGCA, prompting an investigation.

India strengthened its aircraft safety rules. The government can now put hoax bomb threat makers on a no-fly list. This follows a rise in such threats, causing flight delays and diversions. Nearly 1,000 hoax threats were reported in 2024 alone. The change allows action against threats made on the ground.

Indian airlines, including IndiGo and Air India, are resisting new pilot work and rest rules proposed by the DGCA. They argue that full implementation before 2026 is impossible and that the redefined night duty hours will severely impact operations. Airlines claim the changes necessitate increased crew, potentially leading to flight disruptions.

Spectre Cargo Solutions, through Irish affiliates, accuses SpiceJet of removing engines from leased Boeing 737 freighters. SpiceJet claims it returned two aircraft and is working to return three more. A law firm representing Spectre's associates alleges theft due to unpaid equipment use. SpiceJet, facing financial struggles, recently settled a separate dispute with Genesis Aircraft Services.

India is allowing domestically operated carriers to use wet leased planes on new routes to alleviate an aircraft shortage, benefiting airlines like IndiGo and SpiceJet. This policy aims to help airlines expand routes and manage capacity constraints, potentially reducing ticket prices.

DGCA has suspended Akasa Air's heads of operations and training due to the use of unapproved simulators for pilot training. This follows multiple regulatory actions against the airline, including fines and show-cause notices. Akasa Air faces challenges as it awaits new aircraft deliveries amidst production issues at Boeing.