Economic slowdown: April air passenger traffic dives into the red
High base effect along with steep airfares and capacity constraints dragged India's domestic air passenger traffic into the negative territory in April.
 
Besides, an overall slowdown in consumer sentiment and seasonal factors also impacted the sector.
 
As per data of the Directorate General of Civil Aviation (DGCA), the air passenger traffic declined (-) 4.50 per cent to 1.09 crore in April from 1.15 crore reported for the corresponding month of the previous fiscal. 
 
In March, the air passenger traffic growth rate had inched up a mere 0.14 per cent to 1.15 crore on a year-on-year basis. 
 
According to the data, January-April passenger traffic grew 2.53 per cent to 4.64 crore from 4.53 crore ferried during the corresponding period of the previous year. 
 
"Passengers carried by domestic airlines during January-April 2019 were 464.47 lakh as against 453.03 lakh during the corresponding period of previous year, thereby registering a growth of 2.53 per cent," the data report said.
 
Further, low-cost carrier SpiceJet had the highest passenger load factor (PLF) -- a measure of capacity utilisation of the airline -- at 93.7 per cent in April.
 
"The passenger load factor in the month of April 2019 has shown decreasing trend
compared to previous month due to end of vacation period of various sectors," DGCA said in the traffic report. 
 
According to the data, GoAir led the industry with 96.3 per cent punctuality rate (on-time performance) at the four major airports of Bengaluru, New Delhi, Hyderabad and Mumbai. It was followed by AirAsia India (93 per cent), Vistara (92.8 per cent) and IndiGo (89.9 per cent).
 
The overall cancellation rate of the scheduled domestic airlines for April stood at 0.76 per cent. Also, 1,218 passenger-related complaints were received last month.
 
IndiGo led the industry with the highest market share of 49.9 per cent, followed by SpiceJet (13.1 per cent), Air India (13.9 per cent), and GoAir (10.8 per cent).
 
AirAsia India had a market share of 6.2 per cent, followed by Vistara (4.7 per cent), JetLite (0.2 per cent) and Trujet (0.5 per cent).
 
Jet Airways, which suspended its operations on April 17, had a market share of (0.8 per cent). 
 
"Consistent hike in airfares and low capacity due to unused Jet slots have impacted the passenger growth across key sectors like Delhi and Mumbai. Average domestic airfares in April saw an increase of 15 per cent," said Rajnish Kumar, Co-founder, ixigo.
 
"International passenger traffic has also witnessed a slowdown with airfares across popular routes like Delhi-London and Delhi-Dubai becoming three times costlier than last year."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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'Few banks have'nt released funds to IL&FS firms despite NCLAT orders'
The Ministry of Corporate Affairs has told the National Company Law Appellate Tribunal (NCLAT) that a few lenders of the IL&FS Group and its group companies have not released payments to meet the "going concern" status of the companies, which is against the tribunal's directive for release of payments in such matters.
 
The ministry's affidavit noted that in the order dated October 15, 2018, the NCLAT had directed that creditors shall not set off or possess any amount lying with them in account of an IL&FS Group entity against any dues, whether principal or interest. 
 
On February 11 too, the bench had ordered the lenders to the release "any amount payable" to the the group companies.
 
However, despite repeated orders, the IL&FS "continues to face some difficulties" from Allahabad Bank which is refusing to release going concern payments in respect of Road Infrastructure Development Company of Rajasthan Ltd (RIDCOR), a group company.
 
Particularly, while the Allahabad Bank had previously released "going concern payments in respect of RIDCOR of some invoices pertaining to months of October 2018 till February 2019 aggregating to Rs 98.23 lakh crore, some invoices aggregating to Rs 52.51 lakh have not been released," it said.
 
The ministry affidavit observed that if creditors continue to hold back payments, it will be difficult for the companies to maintain the "going concern" status and may impact the resolution process.
 
Further, according to the affidavit, two more companies have entered the "red" list of the IL&FS group firms, increasing the number of entities that cannot meet their payment obligations, not even to the secured financial creditors, to 82.
 
According to the affidavit filed in the NCLAT by the ministry, the total number of "red" companies is now 82, against the initial number of 80 firms. 
 
The list of "green" companies also has increased by five to 55 firms, it said.
 
Companies that are able to pay all payment obligations are "green", the companies only able to meet operational payments and senior secured debt obligations are "amber" and those that are unable to meet obligations to even senior secured financial creditors are categorised as "red".
 
The new companies in the "red" category are the Jharkhand Infrastructure Development Corporation Ltd and the Orissa Project Development Company Ltd. Companies newly classified under the "green" category are the Gujarat International Finance Tec-City Company Ltd, Managalore SEZ Ltd, New Tirupur Area Development Corporation, ONGC Tripura Power Company and Canopy Housing & Infrastructure.
 
On Tuesday, the NCLAT adjourned the matter till May 29.
 
After the fresh categorisation, the NCLAT asked the government to file an affidavit detailing the present financial status of the companies and if their categorisation can be changed among "green", "amber" and "red" categories.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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COMMENTS

AAR

4 weeks ago

Why throw good money after bad?

Airtel, Vodafone lose 30 mn users in March, Jio adds 9.4 mn
Mobile subscriber base of Vodafone Idea and Bharti Airtel declined by nearly 14.5 million and 15.1 million respectively, totalling nearly 30 million subscribers as of March over the previous month, while Reliance Jio added 9.4 million users, according to the TRAI data.
 
Except Jio, all telcos have lost subscribers in March.
 
India's total wireless subscriber base fell to 1,161.8 million on March 31, 2019, shedding 21.87 million users over the previous month. The overall tele-density in India declined to 90.11 at the end of March, from 91.86 in February.
 
According to TRAI, the wireless subscriber base of Vodafone Idea at the end of March 2019 was 394.8 million. VIL's last quarter of 2018-19 total user base was at 334.1 million.
 
Bharti Airtel's mobile subscriber base was 325.1 million, and that of rival Reliance Jio was 306.7 million as on March 2019.
 
As on March 31, 2019, Vodaofne Idea leads the marketshare at 33.98% followed by Airtel at 27.99% and Reliance Jio at 26.40% and BSNL at 9.96%.
 
"Total wireless subscribers declined from 1,183.68 million at the end of Feb-19 to 1,161.81 million at the end of Mar-19, thereby registering a monthly decline rate of 1.85%," said the Telecom Regulatory Authority of India (TRAI) report released on Tuesday.
 
The wireless subscription in urban areas declined to 650.49 million in March end from 656.57 million in February end, and rural user base also plunged to 511.32 million from 527.11 million during the period.
 
Vodafone Idea and Bharti Airtel together shed 29.6 million users by March-end compared to February.
 
The customers base of Reliance Ji was 306.7 million as on March 2019, against 297.2 million as on February.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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