Tag Archives: international flights

Air India is on an expansion spree, in India and abroad.

Falling rupee puts pressure on Air India’s cost structure; int’l flights provide hedge: Official

Falling rupee puts pressure on Air India’s cost structure and profitability but the airline has some natural hedge as it can charge more for international flights where tickets are priced in foreign currencies, according to a senior company official.

In recent weeks, Indian rupee has been on a decline and touched a record low of 86.04 against the US dollar on January 10. A weak rupee results in higher operational expenses for airlines as most of their costs are in dollars.

Nipun Aggarwal, Chief Commercial Officer, Air India, said the declining rupee definitely poses a challenge to the industry and to Air India, and the situation has to be dealt with by improving productivity and taking other initiatives.

“Falling rupee does put pressure on our cost structure because most of our cost is dollarised barring the manpower cost which is in local currency. The more the rupee falls, the more the pressure it puts on our cost structure, on our profitability,” he said at a media briefing this week.

Air India Group operates 1,168 daily flights, including 313 services to international destinations. Of those overseas flights, 244 are short haul and 69 are long haul. The group comprises Air India and low-cost carrier Air India Express.

Last year, Air India merged Vistara with itself and AIX Connect was integrated with Air India Express. According to Aggarwal, the airline has some natural hedge as it flies international lot more than other airlines.

“So, we are able to charge in international currency for international flights and we are able to pass on some of that impact to our customers because we are pricing in dollars or whatever currency is there,” he said.

At the same time, Aggarwal noted that not everything is priced in overseas currencies.

“Even on international flights, we do have some impact but some of those are mitigated with the hedge we have but it impacts our profitability and puts pressure on the fares in the market”.

Increasing airfares is not easy as the industry is very competitive and the demand is sensitive to pricing, Aggarwal said, seeking to highlight the low profitability of the airline industry.

“We do have to fill the aircraft and if we had so much pricing power, the airline industry’s profitability would not be what it is today. This makes it very challenging for us to operate… it (falling rupee) will put pressure on our cost structure, impact profitability and demand,” he noted.

In December, the International Air Transport Association (IATA) projected global airline industry’s net profit at USD 36.6 billion this year for a 3.6 per cent net profit margin.

“Average net profit per passenger is expected to be USD 7 (below the USD 7.9 high in 2023 but an improvement from USD 6.4 in 2024),” IATA said in its financial outlook for 2025.
Air India is an IATA member.

Taking a broader view, Aggarwal also pointed out that the rupee has been depreciating around 2-3 per cent every year for the last many years, and not just the airline industry but many other sectors have become used to the situation.

“We are also not unique in that respect. We will deal with it and are confident that it is not such a big issue,” he added.
The loss-making Air India is implementing an ambitious transformation plan and is slowly expanding its fleet as well as network amid rising air traffic demand. (Source: PTI)

MakeMyTrip launches part payment option

 

MakeMyTrip has unveiled a new feature enabling travellers to book international flights with ease. The Part Payment Option allows users to confirm bookings by paying only 10–40% of the total fare upfront, with the exact percentage based on factors like airline, travel route, and advance booking window. The remaining balance can be paid either before the travel date or within 45 days of booking, at no extra cost.

This industry-first feature addresses a significant challenge for travellers, especially families or groups, who may struggle to pay the full ticket price upfront. Once the full payment is completed, users can modify their confirmed bookings in accordance with fare rules. MakeMyTrip aims to simplify international travel bookings by offering greater flexibility and convenience to its users.

Saujanya Shrivastava, Chief Operating Officer – Flights, Holidays & Gulf, remarked, “Our mission is to make travel more accessible and hassle-free. The part payment feature is an example of leveraging technology to address real traveler challenges. This innovative solution empowers Indians to book international flights with enhanced flexibility, making travel planning easier for all.” The feature has seen strong initial adoption, especially for tickets exceeding INR 1 lakh, with families and solo travellers among the early users.

MakeMyTrip has consistently introduced user-focused innovations, including ‘Zero Cancellation,’ providing coverage for unforeseen cancellations, and ‘Fare Lock,’ allowing users to lock flight prices for a small fee. Additionally, the ‘Free Date Change’ feature offers flexibility to modify travel dates up to two hours before departure. These practical solutions showcase MakeMyTrip’s commitment to enhancing travel convenience and accessibility.

Air India launches in-flight Wi-Fi connectivity on domestic and international flights

 

Air India has officially launched in-flight Wi-Fi internet connectivity on domestic and international flights. The service is currently available on Airbus A350, Boeing 787-9, and select Airbus A321neo aircraft, making Air India the first airline to provide in-flight Wi-Fi on flights within India. This development allows travellers to stay connected during their journey, whether for leisure or business, enabling them to browse the internet, use social media, work, or communicate with friends and family.

Highlighting the significance of this service, Rajesh Dogra, Chief Customer Experience Officer, Air India, remarked, “Connectivity is now an integral part of modern travel. For some, it is about the convenience and comfort of real-time sharing, while for others, it is about greater productivity and efficiency. Whatever be one’s purpose, we are confident that our guests will appreciate having the option of connecting to the web and enjoy the new Air India experience on board these aircraft.” The service supports multiple Wi-Fi-enabled devices, such as laptops, tablets, and smartphones with iOS or Android operating systems, and allows passengers to connect multiple devices simultaneously at altitudes above 10,000 feet.

The introduction of Wi-Fi on domestic routes follows a pilot program on international flights, which included Airbus A350, select Airbus A321neo, and Boeing 787-9 aircraft operating on routes to destinations like New York, London, Paris, and Singapore. For an introductory period, the Wi-Fi service is offered free of charge. Air India plans to gradually extend this connectivity service to more aircraft in its fleet, ensuring a consistent experience for travelers on both domestic and international routes.

To access the service, travellers can enable Wi-Fi on their device, select the ‘Air India Wi-Fi’ network, and follow the steps on the Air India portal by entering their PNR and last name. However, in-flight Wi-Fi performance may vary depending on factors such as satellite connectivity, bandwidth usage, routes, and government regulations.

The Chandigarh Airport is the gateway to Punjab and Haryana.

Operations of flights purely a commercial decision by airlines, Centre in reply to HC

In response to a Punjab and Haryana High Court question on why there are just two international flights from the Shaheed Bhagat Singh International Airport in Mohali, the Centre has said that it does not interfere in commercial operations of airlines and that the airlines are free to choose markets and destinations within the ambit of Bilateral Air Services Agreements (BASA) between India and another country, reports The Hindustan Times.

“Commercial operations of airlines are deregulated, and the Government does not regulate or interfere with the operational plans of the airlines. Accordingly, the airlines are free to select whatever markets and networks they wish to service and operate within the ambit of BASA (based on which seat capacity etc. is decided),” an affidavit by V Vualnam, secretary, ministry of civil aviation, Government of India, stated.

“There is also no explanation from the Chandigarh International Airport Authority Limited as to why there are only two international flights from Chandigarh (UT and capital of two prosperous states) on a daily basis… It is unfortunate to note that even a district headquarter like Amritsar has more than 14 international flights to various countries,” the court had observed while seeking affidavit from the Aviation Secretary.

The court was hearing a public interest litigation (PIL), pending since December 2015, when it was approached by the Mohali Industries Association, alleging lack of facilities at the airport. Since then, the HC has been monitoring the progress of various projects at the airport.

Inaugurated on September 15, 2015, by Prime Minister Narendra Modi, the new terminal has been built at an estimated cost of INR 1,400 crore. While initially, there were only 40-odd flights, the number has now gone up to 90, including two to international destinations — Dubai and Abu Dhabi in the United Arab Emirates (UAE).

“The Hon’able court may also kindly note than any operation of the international flight from any point in India is purely a commercial decision of the airline on the basis of the economic viability of the route, traffic demand, slot availability and other associated factors,” the aviation secretary said, adding that India has open sky arrangements for bilateral air services with a number of countries including USA and UK, whereby foreign designated carriers may operate to/ from any point in India, which includes Chandigarh.

As per the officer, Indian carriers were asked about plans to start international flights from Chandigarh, but the airlines responded in the negative. The airlines told the Centre that they do not have any immediate plans to add any more international flights to/from Chandigarh in addition to the existing operational international schedule but would evaluate feasibility in the future.

On the issue of steps taken by it for increasing international flights, the Punjab government has said that it had requested Centre in 2019 to include Chandigarh in the list of cities covered under Open Sky Policy for Airlines from ASEAN countries, which liberalises travel to the notified cities without restriction of reciprocatory/ or the need for bi-lateral agreements. However, the Centre has not included the Chandigarh airport in that list. Follow-up letters were also written but the Centre has not yielded.

In one of the letters written in 2022, on the issue in response to the demand raised by the state government in that year, the Centre told the state government that India has an open sky agreement with the United Kingdom, which permits designated carriers to operate seven services per week to and from any non-metro airport and Chandigarh is also in the list of such airports. In the same letter, the Centre also said that Chandigarh is not available as a point of call for Canada and thus, Canadian carriers cannot operate direct flights to and from Chandigarh, the affidavit from Malwinder Singh Jaggi, Secretary, Department of Civil Aviation, said. (Source: Hindustan Times)

 

17% growth in Indian flight searches: Wego

 

Wego, the top travel app in the Middle East and North Africa, reported a 17.10% increase in international flight searches from India in November 2024 compared to the same period last year. This growth highlights the increasing demand for global travel among Indian travellers. GCC countries, including Saudi Arabia, the UAE, and Kuwait, emerged as the most-searched destinations, followed by Thailand, Qatar, Oman, Malaysia, Bahrain, the U.S., and Indonesia.

The post-Diwali period significantly boosted travel activity as Indian expatriates and residents took advantage of the extended holiday season. Diwali-inspired vacations and return trips were complemented by other festivals like Guru Nanak Jayanti and Chhath Puja, which offered additional opportunities for long weekends. These events collectively drove demand for both short getaways and longer vacations, benefiting the travel ecosystem.

Wego’s analysis revealed notable airfare trends during this period. Average flight prices to the top 10 destinations increased by up to 34.43% month-over-month, reflecting heightened demand post-Diwali. However, year-over-year comparisons showed a decrease in fares to several destinations, including Qatar (-38.05%) and Kuwait (-15.36%), making international travel more affordable for Indian travellers.

This combination of festive travel, affordable airfare to some destinations, and a robust appetite for exploration underscores the resilience of India’s travel industry. As Wego continues to track travel trends, it highlights how cultural and seasonal factors influence travel behaviors and fuel growth in the sector.

Asiana Airlines flying over international airspace

Asiana to hike excess baggage fees on overseas flights from Jan 2

Asiana Airlines Inc. will increase fees for excess baggage on its international flights starting from January 2, 2025. Those fees apply to baggage in excess of the airline’s free allowance.

Fees for baggage exceeding the quantity limit will go up by as much as KRW 40,000 (USD 29.66) depending on routes, Asiana said.
For short-haul routes within 90 minutes from Korea, the excess baggage fee will rise from KRW 60,000 per piece to KRW 90,000. For flights to Europe, Africa and Oceania, the fee will go from 140,000 won to 180,000 won per piece.

Every extra piece of baggage on flights to the United States will cost KRW 240,000, up from the current KRW 200,000. Asiana will also raise its excess weight fees, with 23 kilograms being the limit.

On non-U.S. international flights, each piece of baggage weighing between 24 kg and 28 kg requires passengers to pay a fee of KRW 35,000 to KRW 90,000, while pieces weighing between 29 kg and 32 kg cost passengers KRW 50,000 to KRW 110,000. Asiana will combine those weight ranges and charge passengers KRW 60,000 won to KRW 110,000.

Asiana, South Korea’s second-largest airline, said this will be its first increase of excess baggage fees since July 2019.
“Considering the rise in operation costs, among others, this was an inevitable step,” Asiana said. “We will offer a 10 per cent discount to passengers who pre-purchase additional baggage allowance.”

Due to soaring oil prices and other costs, low-cost carriers, such as Jeju Air Co., Air Seoul Inc., Jin Air Co. and Eastar Jet Co., have raised their excess baggage fees this year. (Source: The Korea Herald)