Stock market maverick Rakesh Jhunjhunwala-backed airline <keyword id="11911527" type="General" weightage="100" keywordseo="akasa-air" source="Orion">Akasa Air</keyword> on Monday revealed a picture of its first aircraft. Through a Twitter post, it attached a picture of the aircraft with the caption: "Can't keep calm! Say hi to our QP-pie!." In another tweet, it said: "Coming soon to Your Sky." The low-cost carrier plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>. Akasa Air got the no-objection certificate from the civil aviation ministry in October to start commercial flights, as per reports. In 2021, the company ordered 72 <keyword id="6357957" type="General" weightage="50" keywordseo="boeing" source="Orion">Boeing</keyword>'s 737 <keyword id="26842" type="General" weightage="80" keywordseo="max" source="Orion">Max</keyword> aircraft and <keyword id="1193491" type="General" weightage="80" keywordseo="cfm" source="Orion">CFM</keyword> LEAP-1B engines. CFM delivered its first CFM56 engines in the early 1990s, and by far nearly 600 engines are operated by airlines from the Indian subcontinent. The purchase agreement, which included spare engines and long-term services agreement, was valued at nearly $4.5 billion. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/not-just-india-many-countries-are-protecting-their-wheat-to-keep-daily-bread-affordable/articleshow/91733019.cms">Not just India, many countries are protecting their wheat to keep daily bread, affordable</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/chidambaram-triggers-state-vs-center-revenue-debate-after-govts-excise-cut-on-fuel/articleshow/91732927.cms">Chidambaram triggers state vs center revenue debate after govt's excise cut on fuel</a>

Rakesh Jhunjhunwala-backed airline 'Akasa Air' to arrive soon; reveals aircraft picture

<ul><li>Tata Group has interests in four airlines - Air India, Air India Express, AirAsia India and Vistara. </li><li>It is merging low cost airlines Air India Express and AirAsia India; and Vistara with Air India. </li><li>While Air India has been improving its operational performance, it’s in the middle of a turnaround and its CEO says they will have to hit singles with an occasional fours and sixes. </li><li>Vistara and AirAsia India are yet to turn profitable. </li></ul>It’s been less than a decade since the Tatas re-entered the aviation sector – via joint ventures – growing both organically and inorganically. With its $2.4 billion acquisition of government-owned Air India, Tatas have earned the rare distinction of being a part of four airline ventures – Vistara, AirAsia India, Air India and Air India Express. Now, it’s bringing its interests together – by merging low-cost carriers AirAsia with Air India’s low-cost subsidiary Air India Express. It’s also moving towards merging its other two full-service airlines – Vistara with Air India. Between Tata-owned airlines and the largest carrier, IndiGo – the Indian airline industry is set for a duopoly, experts say. “The industry is headed towards a duopolistic structure with Air India and IndiGo making up a dominant 80% of the market,” said an Edelweiss report. IndiGo had a market share of 57.7% as of August 2022 in domestic traffic. The Tata group, on the other hand, carries over a quarter of India’s aviation passengers with Air India and Vistara having a 9.7% share each, and AirAsia’s 5.8% share. This ‘structural command’ is good for both these groups, which will give them better pricing power – that’s much needed as the sector faces headwinds from hike in aviation turbine fuel prices. “The anticipated duopoly would surely bring pricing discipline among large carriers and that should improve their financial performance,” Manvi Hooda, practice lead at CAPA India, said in an Edelweiss report. Tata’s airline interests <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Airline </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata’s stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Other owners </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vistara </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">49% held by Singapore Airlines </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AirAsia India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Air India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% stake </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Air India Express </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% stake (Air India’s subsidiary) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr></tbody></table> Source: Press releases, reports Air India on a ‘growth’ path IndiGo’s direct competitor - Air India – has been competing with the airline in terms of a key metric – on-time performance (OTP). OTP has always been IndiGo’s USP and since June, Air India – which has been an outlier – has raced ahead of it. As of September, 87% of Air India’s flights have been on time as compared to 84% of IndiGo’s flights, as per <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-indigo-in-a-battle-of-on-time-performance/articleshow/95214432.cms">an Economic Times</a> report. Air India’s new CEO Campbell Wilson who has WAS brought in to turn around the formerly debt-ridden state-owned carrier said that its improved performance is an effect of investment in IT systems and strict monitoring of turnaround times. It is also showing an improvement in its passenger load factors or PLFs. Air India was also one of two airlines that has shown a 2.5% improvement in PLF to 73.6% in August as compared to July. Its group airlines – Vistara and AirAsia too held on to their PLFs at 84.3% and 75%, respectively. The sector is poised to take off The Indian aviation sector, like most others, went through a dry phase during lockdowns and one of the rare such markets which has survived without an airline going under. Now, its recovery is one of the fastest in the world and is looking at a rapid growth in volumes. “Industry volumes, although still slightly lower than pre-Covid peak, are recovering at a rapid pace. In FY23, we forecast domestic industry volume growth of over 50%. The demand environment for air travel in India is very strong with economic rebound post-Covid, resurgence in corporate travel and normalization of international tourist arrivals,” said a report by IIFL. This sentiment is also shared by <keyword id="6368386" type="General" weightage="20" keywordseo="singapore-airlines" source="Orion">Singapore Airlines</keyword>, which owns 49% in Vistara. Singapore Airlines’ CEO Goh Choon Phong said in<a href="https://indianexpress.com/article/business/aviation/singapore-airlines-eyes-overseas-hub-highlights-india-as-key-growth-area-vistara-7946867/"> an interview with Bloomberg </a>that India is poised to become the world’s third-biggest aviation market by the middle of this decade, if not before. Apart from a wide and growing domestic market, India has a huge potential to grow international travellers – and its many international partnerships count. All the airlines under Tata have been ramping up from the opportunity. While <a href="https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-looking-to-become-carrier-of-choice-globally-campbell-wilson-ceo-md/articleshow/94903549.cms?from=mdr">Air India with its legacy</a> in international travel, is all set to capture the growth in travel between India and North America, Vistara too has been ramping up flights <a href="https://traveltradejournal.com/vistara-ramps-up-frequencies-to-frankfurt-and-paris/#:~:text=Starting%2030%20October%202022%2C%20Vistara,from%202x%20to%205x%20weekly.">across international destinations</a>. On the other end, <a href="https://www.thehindu.com/business/air-india-express-said-to-add-4-boeing-737s-to-meet-growing-demand/article65577170.ece">LCC subsidiary of Air India</a>, Air India Express too is adding new Boeings to its fleet to meet the growing demand. AirAsia too has been inching up its plans to go international. The drag factors All these factors, however, are half the chips in the place – all bode well for a growing aviation conglomerate. Yet, <a href="https://www.livemint.com/companies/news/tatas-face-uphill-task-in-air-india-turnround-11666293856299.html">analysts have their </a>doubts when it comes to Tata’s ability to pull off these complicated mergers with various cross-holdings and integrate their strengths with partners. Moreso, each of its airlines have their own issues. Vistara and AirAsia India are yet to turn profitable, and they started operations in 2015 and 2013, respectively. Added to that, Air India has a lot of baggage in terms of legacy routes that are unproductive, and in the midst of a turnaround that’s yet to complete – and looks like it would take time. Wilson, who was formerly the CEO of Singapore’s Scoot, too had earlier said that turning around Air India is a matter of hitting many ‘singles’ and an occasional ‘sixes and fours’ <a href="https://m.economictimes.com/industry/transportation/airlines-/-aviation/turning-around-air-india-is-a-test-match-we-will-take-lots-of-singles-and-also-hit-the-occasional-fours-and-sixes-campbell-wilson/articleshow/94907763.cms?_oref=cook">in the journey</a>. In spite of healthy growth expectations, the sector could also turn competitive with the arrival of new players – Akasa Air and Jet Airways which are poised for a comeback. While Tata group airlines with their strong market share might be able to withstand pricing pressures better, aggressive challengers might wrest it away from them. Yet, all in all the Tata group has one more trick up its sleeve – its extensive presence in the hospitality sector and its ongoing digital integration as a part of its super app, Tata Neu. The app brings all the services the group offers from retail to hospitality to wallets under one umbrella, and that could bring in revenue upside as the app builds a loyalty programme. As per an HSBC report in August, the group’s Indian Hotels’ loyalty member revenues now contribute to 18% of total revenues by the end of first quarter from 12-13%. While IHCL had 2 million loyalty members of its own, the Tata Neu app helped push this base to 3 million, the report had said. If similar synergies kick in to the aviation business too, there is a value that the group’s umbrella can add to the airlines - both merged and individually. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/article/nykaas-fashion-foray-and-pipeline-style-biz-model-worries-analysts/articleshow/95405203.cms">Nykaa’s fashion foray and pipeline-style biz model worries analysts</a> <a href="https://www.businessinsider.in/careers/news/indian-students-going-abroad-to-face-a-triple-whammy-of-inflation-forex-and-interest-rates/articleshow/94974003.cms">Indian students going abroad to face a triple whammy of inflation, forex and interest rates</a>

Tata's mega aviation merger is poised for flight, but the skies are not clear yet

<ul><li>Indigo has been hit by labour troubles on the ground too as this month, aircraft maintenance technicians went on a mass sick leave for two days in Delhi and Hyderabad.</li><li>All the airlines will face shortage of crew, leading them to poaching.</li><li>Experts also fear that this increase in demand for experienced pilots will push them to hire foreign pilots.</li></ul>India’s largest airline Indigo has been well-known for its on-time performance. Yet, earlier last month over half of its flights were delayed. Reason? A large chunk of its <keyword id="55080" type="General" weightage="20" keywordseo="cabin-crew" source="Orion">cabin crew</keyword> staff took a sick leave. As per s<a href="https://zeenews.india.com/aviation/indigo-staffing-trouble-continues-now-technicians-go-on-mass-sick-leave-for-this-reason-2483851.html">ources</a>, they all went to attend a mass recruitment drive by Tata Air India, a competitor. The airline has been hit by labour troubles on the ground too as this month, aircraft maintenance technicians went on a mass sick leave for two days in Delhi and Hyderabad to protest low wages and salaries. There will be more such incidents in the coming months, experts say, as a new airline Akasa Airlines is all set to launch operations. Jet Airways too is making a comeback and even Tata Air India is getting ready for a revamp. All of them will face shortage of crew, leading them to poaching. There are around 17,000 registered pilots in India out of which over 2,500 are women. The industry needs much more. “India needs 10,000 more flight attendants, 6,000 more qualified pilots. Compared to past slowdown of 2010, 2012 or 2009 in the industry, this time it is going to be very hard for the airlines to sustain. To sustain growth one has to add aircrafts, fleets, need more pilots, flight attendants, engineers,” Mark Martin, founder and CEO of Martin Consulting told Business Insider in an interview. Experts also fear that this increase in demand for experienced pilots will push them to hire foreign pilots. Flying schools had closed during the Covid-19 pandemic for two years and there are a lot of pending licenses to be approved as well. It’s not just the pilots but there will be a shortage of experienced engineers, ground staff and other cabin crew that new airlines would love to have in their fold. It means an aviation talent war is afoot and it will be another ground for old and new airlines alike to battle on — in addition to fliers and flying slots. <cmsannotation type="cmsannotation" annotationid="Salary cuts and bruises" comment="subhead" text="Salary cuts and bruises">Salary cuts and bruises</cmsannotation> While many international airlines went bankrupt and shut shop during the pandemic close downs, top Indian airlines have managed to stay afloat. For which, they had to resort to salary cuts and more such moves. Indigo and SpiceJet both deferred and slashed salaries but also restored them within a year, as airlines started flying in 2021. But very few salaries <a href="https://www.outlookindia.com/business/talent-war-amongst-airlines-aviation-sector-indigo-air-india-akasa-air-air-india-how-indian-airlines-are-gearing-up-to-prepare-for-talent-war-news-207844">are back to pr</a>e-pandemic levels in spite of the fact that Indians have been thronging airports in the recent months. This could be another reason why most of them could be swayed by better salaries and offers from the market. Praveen Paul, a Bengaluru based aviation consultant disagrees. He believes that employees would stick to bigger airlines which are better paymasters and will look for stability in addition to hikes. Indigo, he says, is one of the few airlines that pays its employees on-time, unlike most others. “I don’t see talent running to new airlines in a hurry. Indigo, Tata’s Air India will not lose any talent while SpiceJet, Go Air may lose as employees feel whatever happens they get their salaries on time at Air India and Indigo,” Paul told Business Insider India. Aviation sector jobs, while technical and necessary, have gone through many rounds of stress and strain in the last few years. After the debacle of Kingfisher employees who were never paid when it closed down in 2016, Jet Airways and its bankruptcy was also hard on the sector and its employees. However, now that there’s a turnaround, they would be in a better position to negotiate — that could be bad news for airlines who are already flying on wafer thin margins thanks to a massive increase in aviation turbine fuel prices. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/spicejet-says-its-md-ajay-singh-is-the-victim-to-a-bogus-complaint/articleshow/92818041.cms">SpiceJet says it’s MD Ajay Singh is the victim to a bogus complaint</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/butter-chicken-keema-pav-anda-burji-but-without-anda-or-chicken-and-mutton-how-startups-and-fmcg-players-are-shaping-indias-plant-based-meat-category/articleshow/92810504.cms">Butter chickenless, UnMutton keema — vegan meats hope to become the next ‘paneer’ but health concerns remain</a>

After techies, its aviation crew salaries that will be ‘up in the air’

<ul class="summary-list"><li><keyword id="11910631" type="UNKNOWN" weightage="60" keywordseo="boeing" source="Orion">Boeing</keyword> had a successful 2021 with the 737 Max in its first full year of <keyword id="11896631" type="UNKNOWN" weightage="60" keywordseo="flying" source="Orion">flying</keyword> the aircraft post-grounding.</li><li>Ultra-low-cost airlines in particular are choosing the Max over Airbus products. </li></ul>Boeing just successfully completed its first full year of flying the 737 Max since its <a href="https://www.businessinsider.com/boeing-737-max-fly-again-news-update-recertification-faa-production-2020-11">ungrounding by the Federal Aviation Administration in November 2020 following two deadly crashes</a>. Airlines in 2021 flew nearly 300,000 flights using the aircraft, according to Cirium data, and Boeing landed <a href="https://www.boeing.com/commercial/">692 orders</a> for the aircraft throughout the year. United Airlines in June placed a <a href="https://www.businessinsider.com/united-orders-270-next-generation-jets-upgrading-fleet-with-tv-screens-2021-6">landmark order for 200 additional Boeing 737 Max jets</a> while <a href="https://www.businessinsider.com/southwest-airlines-orders-100-of-boeings-smallest-737-max-variant-2021-3">Southwest Airlines</a> and <a href="https://www.businessinsider.com/alaska-airlines-debuts-boeing-737-max-on-first-passenger-flight-2021-3">Alaska Airlines</a> have also steadily upped their Max orders. But driving more recent orders have been ultra-low-cost carriers that are choosing the Max over rival Airbus aircraft. Since November, three carriers including Allegiant Air, Canada's Flair Airlines, and India's Akasa Air have chosen the Max to lead their fleet plans. The trio plan to take delivery of more than 100 Max aircraft with all but Flair flying the aircraft for the first time. Allegiant Air showed most recently that the Max is still an incredibly competitive product as the aircraft's economics, acquisition costs, and delivery availability proved to be vital in securing a deal with Boeing over Airbus. The order for 50 Max aircraft with options for 50 more is a rare move for an ultra-low-cost all-Airbus airline that will require investments in additional training for pilots, mechanics, and other staff to learn the aircraft. But in choosing the Max, Allegiant <a href="https://ir.allegiantair.com/static-files/27ef1691-f09c-48b7-a94c-517a256f640e">cited</a> the Max having the "lowest unit cost" and "short-term" delivery availability from Boeing. Airbus' A320neo by contrast had the "highest acquisition cost" with "mid-late decade" delivery availability.Helping Boeing land new orders is fears of the aircraft's safety have mostly subsided thanks to the aircraft's stellar performance in 2021, save for a <a href="https://www.businessinsider.com/boeing-737-max-new-electrical-issue-southwest-american-airlines-2021-4">brief grounding in April</a>. In a press conference announcing the order, for example, Flair CEO Stephen Jones received no questions on the 20-month grounding that plagued the 737 Max from March 2019 to November 2020.Flying on the aircraft has become no different than flying on any other aircraft, as <a href="https://www.businessinsider.com/flying-on-united-airlines-newly-ungrounded-boeing-737-max-2021-2">Insider found on multiple Boeing 737 Max flights throughout 2021</a>. In the US, airlines have stopped going out of their way to inform passengers if they're booked on a Max aircraft, as was standard protocol during the early return to service efforts. United had updated its website with banners to inform flyers that they were booking a flight on the Max while American Airlines had changed its gate announcements to include the aircraft type for every flight. One Max variant, in particular, has been driving interest from ultra-low-cost carriers, the high-density variant of the Max 8 named the Max 8200. Its capacity for up to 200 seats in the same airframe as the Max 8 gives ultra-low-cost airlines the best of both worlds in capacity and operating costs. Ireland's <keyword id="11931706" type="UNKNOWN" weightage="60" keywordseo="ryanair" source="Orion">Ryanair</keyword> is currently the largest airline flying the Max 8200, including its subsidiaries, but it's highly sought after by ultra-low-cost airlines because of the opportunity for additional revenue. Allegiant and Akasa both included the Max 8200 in their orders and carriers like Flair are intensely eyeing the aircraft."I would take them as fast as I could," Flair's Jones said of the Max 8200. Boeing, however, hasn't been able to convert every one of its customers to Max operators, even airlines with established Boeing fleets that would prove to be natural Max customers. In Australia and Europe, <a href="https://www.qantasnewsroom.com.au/media-releases/qantas-selects-airbus-as-preferred-aircraft-for-domestic-fleet-renewal/">Qantas</a> and <a href="https://news.klm.com/klm-group-chooses-airbus-a320neo-family-for-klm-and-transavias-european-fleet/">KLM Royal Dutch Airlines</a>, respectively, have opted for Airbus aircraft including the A320neo and A220 families of aircraft to lead their fleet expansions.

Ultra-low-cost airlines are flocking to Boeing's 737 Max, inking millions in orders as talk of safety concerns vanish

New Delhi [<keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>], February 21 (ANI): President of <keyword id="19915275" type="General" weightage="20" keywordseo="boeing" source="keywords">Boeing</keyword> India and South Asia, <keyword id="20265370" type="General" weightage="20" keywordseo="salil-gupte" source="keywords">Salil Gupte</keyword>, hailed the 'Make in India' initiative and said that New Delhi is moving from being one of the largest importers to developing its own platforms. He said that Boeing is one of the Original Equipment Manufacturers (OEM) that has coordinated most with India in this direction. <keyword id="20666703" type="General" weightage="20" keywordseo="gupte" source="keywords">Gupte</keyword> said that a lot of discussion at the Indus X event -- which is being held on the sidelines of the Raisina Dialogue 2024 -- is around co-development and co-production. Speaking to ANI, Salil Gupte said, "Several products for defence, that are in the pipeline for co-development...Boeing has decided to specifically participate in those types of programmes, because in defence, under the 'self-reliance' theme, India is moving from being one of the largest importers of products to developing its own platforms here." "Some of it will be done totally with Indian companies and some of it will do in partnership with Original Equipment Manufacturers (OEM). Boeing has been one of the OEMs that has coordinated most with India," he added. Gupte said that Boeing is exporting worth of Rs 10000 crores per annum as part of 'Make in India' programme. "We have Rs 10000 crores per annum of sourcing that we export from India already as part of our 'Make in India' programme. And now we think that our new engineering centre in Bangalore, it is an opportunity to combine the strong engineering capability with manufacturing capability to give a fillip to the Make in India programme," he said. The Boeing India President further said that he is expecting over 2500 aircraft to come to India over the course of the next 20 years. "In civil aviation, we see over 2500 aircraft that will be coming in India over the next 20 years, which makes it more than 10 aircraft per month. Not just aircraft, but airlines are also growing very rapidly. Akasa Air, one of the fastest-growing airlines in history, is now going international and Air India is placing large orders in the last year as they spread their wings into long-haul flights," Gupte further said. Gupte also reiterated US President <keyword id="19919748" type="General" weightage="20" keywordseo="joe-biden" source="keywords">Joe Biden</keyword>'s remark that the India-US relationship is the "most consequential of the 21st century." (ANI)

India moving from one of largest importers to developing its own platforms: Boeing India Prez Salil Gupte

<ul><li>The price of crude has rallied by 30% since June this year as oil producing nations cut production.</li><li>This rise affects many sectors like oil marketing companies, airlines, paints and more.</li><li>Only a few of these sectors are able to pass on the raw material rises to consumers as sales remained muted in the first quarter. </li></ul>In the first quarter of the current financial year (FY24), India Inc’s earnings saw a dichotomous growth with sharp rise in profits over muted sales growth. While sales are yet to see any meaningful pick up since, the raw material effect might go away due to a sharp rise in <keyword id="102132" type="General" weightage="20" keywordseo="crude-oil-prices" source="Orion">crude oil prices</keyword>. Since the start of September, Brent crude has risen from $85 per barrel to $92 a barrel approximately and this will play negatively for the operations of most sectors. “Oil prices have rallied more than 30% since late June as the OPEC+ kingpins Saudi Arabia and Russia closed the taps,” said Ravindra V Rao, VP-head commodity research at Kotak Securities. India’s oil marketing companies (OMCs) like Indian Oil, HPCL and BPCL are directly impacted by rise in <keyword id="45185" type="General" weightage="20" keywordseo="crude-oil" source="Orion">crude oil</keyword> prices. And their margins have already fallen into the negative zone. “A sharp rise in Brent price to around $90/bbl, driven by OPEC+ supply cuts, and surge in diesel cracks has led to OMCs’ blended spot auto-fuel gross marketing margin (GMM) declining to negative ₹0.1 per litre versus ₹8.8 per litre in 1QFY24,” said a report by J M Financial. Historically, the gross refining margins for the sector is at ₹3.5 per litre. For OMCs to break-even, the crude oil price has to remain below $80 per barrel. A rise in crude oil prices is good news for oil producers like ONGC, <keyword id="6355199" type="General" weightage="80" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword> and more who can gain from the rise in diesel cracks globally. However, windfall gains tax levied by the government might take the sheen off these margin gains. Trouble in the air The aviation sector is also set for a troubled year ahead if crude oil headwinds persist as fuel costs make up for over 40% of an airline’s costs. This, however, is only half of the troubles that the sector is facing. The growth in its occupancy levels also seem to have hit a snag in spite of GoFirst’s grounding as well as flight cancellations by Akasa Air. After passenger traffic increased marginally month-on-month in August by 3%, the run rate seems to be flat in September. Also, July’s passenger load factor (PLF) showed a decline — reducing the ability of airlines to pass on their aviation turbine fuel (ATF) hit to passengers. “Yields for airlines are witnessing a significant decline in second quarter given a seasonally strong base with airfares down around 10% QoQ, as per JM fare tracker). Further, recent rally in crude price is likely to result in higher ATF prices (up around 6% QoQ) for airline companies during 2Q,” says a J M Financial report. Painting &amp; cementing: A crude picture The paints sector uses a significant amount of petroleum based raw materials. Like its peers in aviation, it’s also stuck between a rock and a hard place. They’re unable to increase prices due to muted sales growth and the benign impact of soft crude prices is going away. It is noteworthy that <keyword id="6359480" type="General" weightage="80" keywordseo="aditya-birla" source="Orion">Aditya Birla</keyword> group company Grasim is entering the sector, into the decorative paints category. This, in turn, will mean that the competitive intensity of the sector will rise further and thus chip away at the ability to pass on rising costs. “Crude prices have jumped by about 10% quarter-on-quarter in second quarter, at a time when the competitive landscape is prompting higher rebates and discounts,” said a report by Kotak Institutional Equities. The cement sector is also hit by fuel prices twice over – as it impacts production as well as transport costs. Unlike their peers in the paints and aviation sector, the players are able to pass on the rise in costs to customers due to high demand. The rise in prices are anywhere between ₹10-35 per bag — thanks to strong demand fundamentals. “The recent resurgence in fuel cost and supportive demand is stoking the price rise. In our view, sustainability of such hikes remains key given historically, sharp price hikes seldom sustain beyond a couple of months,” says a report by ICICI Securities. The construction sector is buoyed by heightened activity in real estate coupled with the government’s infrastructure push. The margin impact on this sector might remain muted due to crude price rise for now. Crude hit for personal care segment FMCG giants too face the heat of rising crude oil prices as raw materials <a href="https://www.businessinsider.in/business/news/soap-opera-fmcg-players-kick-off-price-war-to-bring-back-whats-lost/articleshow/103657469.cms">for some of its personal and home care categories</a>. They have been rising prices selectively, increased local competition is also curtailing them. Demand has remained stable or growing very slowly especially in rural areas due to a cloudy monsoon picture. Crude prices impact everyone as the transport cost of goods and raw materials get impacted directly. Thus, with a large section of corporate India vulnerable to the spiking Brent and the demand picture looking cloudy as well, a repeat of healthy profits shown in Q1 may be an uphill battle.

India Inc might see margin squeeze with a crude shock at hand

The <keyword id="101434" type="General" weightage="50" keywordseo="union-finance-ministry" source="Orion">Union Finance Ministry</keyword> on Thursday released the seventh monthly instalment of <keyword id="12060937" type="General" weightage="20" keywordseo="post-devolution-revenue-deficit" source="Orion">post devolution revenue deficit</keyword> (<keyword id="10712003" type="General" weightage="100" keywordseo="pdrd" source="Orion">PDRD</keyword>) grant of ₹7,183.42 crore to 14 states. The grant has been released as per the recommendations of the 15th Finance Commission. The panel had recommended a total grant of ₹86,201 crore to 14 states for 2022-23. The recommended grant is released by the <keyword id="368015" type="General" weightage="50" keywordseo="department-of-expenditure" source="Orion">Department of Expenditure</keyword> to the recommended states in 12 equated monthly installments. With the release of seventh installment for the month of October 2022, the total amount of revenue deficit grants released to the states in 2022-23 has gone up to ₹50,282.92 crore. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/rupee-falls-32-paise-to-close-at-all-time-low-of-81-94-against-us-dollar/articleshow/94681320.cms">Rupee falls 32 paise to close at all-time low of 81.94 against US dollar</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/akasa-air-launches-maiden-flights-from-delhi-to-allow-pets-in-the-cabin/articleshow/94680808.cms">Akasa Air launches maiden flights from Delhi, to allow pets in the cabin</a>

Centre releases ₹7,183 crore PDRD grant to 14 states

<ul><li>There are 15% <keyword id="72719" type="General" weightage="20" keywordseo="women-pilots" source="Orion">women pilots</keyword> working across Indian airlines currently.</li><li>This percentage is thrice the global average, says the Civil <keyword id="53054" type="General" weightage="20" keywordseo="aviation-ministry" source="Orion">Aviation Ministry</keyword>.</li><li>In spite of an improving gender diversity, the Indian <keyword id="45911" type="General" weightage="20" keywordseo="aviation-sector" source="Orion">aviation sector</keyword> could fall short of employees thanks to new airline launches, relaunches and comebacks.</li></ul>The Ministry of Civil Aviation said in a Lok Sabha session that the share of women pilots in the overall pool of pilots is significantly higher in <keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> as compared to the global average. Jyotiraditya Scindia, Union Civil Aviation Minister, further added that only 5% of the pilots are women globally, but the share of <keyword id="2610372" type="General" weightage="20" keywordseo="women-pilots-in-india" source="Orion">women pilots in India</keyword> is 15%. “Globally, according to the International Society of Women Airline Pilots, around 5 percent of pilots are women. In India, the share of women pilots is significantly higher - at around 15 percent,” Scindia said in the parliament. The Ministry also said that its associated organizations have taken several initiatives to increase the number of pilots in the country for both women and men. “These include issuing award letters by Airports Authority of India for nine new Flying Training Organizations (FTO) slots at five airports namely Belagavi, Jalgaon, Kalaburagi, Khajuraho and Lilabari in the first phase and six more FTO slots at five airports in the second phase namely Bhavnagar, Hubballi, Kadapa, Kishangarh and Salem,” Scindia added. These initiatives will enrich the number of flying hours at FTOS and will also increase the number of commercial pilot licenses issued per annum. “ In addition, Women in Aviation International (WAI), India Chapter, conducts awareness programmes across the country to encourage women aviation professionals with special focus on young schoolgirls especially from low income families,” the ministry said. However, according to several media reports, there are over 17,700 registered pilots in India, out of which only 2,500 are women. <cmsannotation type="cmsannotation" annotationid="Talent crunch in the aviation industry" comment="subhead" text="Talent crunch in the aviation industry">Talent crunch in the aviation industry</cmsannotation> In spite of good gender diversity, the Indian aviation sector could fall short of employees thanks to new airline launches, relaunches and comebacks — Akasa Airlines, Tata Air and Jet Airways, respectively. “India needs 10,000 more flight attendants, 6,000 more qualified pilots. Compared to past slowdown of 2010, 2012 or 2009 in the industry, this time it is going to be very hard for the airlines to sustain. To sustain growth one has to add aircrafts, fleets, need more pilots, flight attendants, engineers,” Mark Martin, founder and CEO of Martin Consulting told Business Insider in an interview. Experts believe that an increase in demand for experienced pilots will push them to hire foreign pilots. Flying schools had closed during the Covid-19 pandemic for two years and there are a lot of pending licenses to be approved as well. It’s not just the pilots but there will be a shortage of experienced engineers, ground staff and other cabin crew that <keyword id="1997286" type="General" weightage="20" keywordseo="new-airlines" source="Orion">new airlines</keyword> would need to hire. It means an aviation talent war is afoot and it will be another ground for old and new airlines alike to battle on — in addition to fliers and flying slots. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/air-indias-cochin-flight-diverted-to-mumbai-after-pressure-loss/articleshow/93042126.cms">Air India's Cochin flight diverted to Mumbai after pressure loss</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/bihar-self-help-groups-raise-the-most-loans-but-andhra-tops-in-loan-quality/articleshow/93036522.cms">Bihar self-help groups raise the most loans but Andhra tops in loan quality</a>

India has 3x more women pilots than the global average

<ul><li>The <keyword id="6385189" type="General" weightage="80" keywordseo="breakfast" source="Orion">Breakfast</keyword> Cereal (BFC) category in India is seeing a compound annual growth rate of 6-8%. </li><li>India is among the top five countries in the world in terms of BFC market value. </li><li>Fiber rich oats and <keyword id="793558" type="General" weightage="80" keywordseo="muesli" source="Orion">Muesli</keyword> register growth of 12% and 16% respectively across India this year. </li></ul>Breakfast is considered to be the most important meal of the day and Indians are giving this meal its due now, as spending capacity has increased along with awareness of nutritional needs. Millennials across the world are also not keen on consuming higher quantities of sugar and additives that come with processed foods. With increased awareness around healthy food choices, <keyword id="54572" type="General" weightage="50" keywordseo="pepsico" source="Orion">PepsiCo</keyword>’s <keyword id="131044" type="General" weightage="80" keywordseo="quaker-oats" source="Orion">Quaker Oats</keyword> says that it has reduced sugar content by 30% in ready-to-eat breakfast offerings to make them healthier. “Eating a wholesome breakfast that is easy to make and has numerous benefits is an important emerging trend. The ready-to-eat cereal market has been witnessing an upward growth trend in India, with demand for muesli constantly increasing. As a <keyword id="52652" type="General" weightage="20" keywordseo="nutrition" source="Orion">nutrition</keyword> brand, we are looking to provide consumers with more options, and we see a clear role for muesli in India,” said <keyword id="15181034" type="General" weightage="50" keywordseo="sonam-bikram-vij" source="Orion">Sonam Bikram Vij</keyword>, associate director and category head, Quaker, <keyword id="110163" type="General" weightage="50" keywordseo="pepsico-india" source="Orion">PepsiCo India</keyword>. Breakfast cereal (BFC) category in India is seeing a compound annual growth rate (CAGR) of 6-8%, revealed industry insights by breakfast and cereal company Quaker Oats. Globally, the BFC market accounts for $38 billion per annum. According to Statista, India is among the top five countries in the world in terms of BFC market <a href="https://www.statista.com/outlook/cmo/food/bread-cereal-products/breakfast-cereals/india?currency=chf#global-comparison">value</a>. Muesli alone has an estimated market size of ₹275 crore and constitutes around 15% of the BFC category in India, growing at 16-18% CAGR. Oats witnessed a growth of 24% in India since 2016, making it the fastest growing category in the BFC <a href="https://www.mordorintelligence.com/industry-reports/india-breakfast-cereals-market">sector</a>. A <a href="https://www.pepsicoindia.co.in/en-IN/live/pressrelease/breakfast-was-the-most-skipped-meal-amongst-urban-millennials-during-covid-19">study</a> done by a Euromonitor International and Quaker revealed that 44% of urban millennials skipped breakfast and delayed their meals due to increased household chores and late start to the day. To fit the busy schedules of Indian consumers while also aiding their nutritional intake, Quaker Oats has launched two breakfast cereals-Quaker Oats Muesli – Fruit &amp; Nut and Quaker Oats Muesli – Berries &amp; Seeds, available in 700g for ₹440 and ₹460 respectively across India. “Consumers often even go grocery shopping fortnightly or at least once a month. They are now looking for larger packets that help them last the entire month,” she added. Other breakfast and cereal companies are also trying to reduce processed content in their offerings. “With the pandemic, while consumers are making healthier choices they are also changing their lifestyle. For today’s nutrition-conscious consumers, it is all about striking a balance between one’s active lifestyle and consuming nutritious food,” said Vij. Globally, the breakfast and cereal market is poised to be valued at over $65.1 billion by <a href="https://www.globenewswire.com/news-release/2022/06/28/2470455/0/en/Breakfast-Cereal-Market-to-Surpass-US-65-1-Bn-by-2032-Amid-Increasing-Demand-for-Gluten-free-Breakfast-Cereals-Report-by-Future-Market-Insights-Inc.html">2032</a>, with East Asian nations such as China and India clocking a more robust growth in the category. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/bank-of-baroda-enables-digital-loans-through-the-account-aggregator-framework-heres-what-it-means-and-how-to-use-it/articleshow/94683894.cms">Bank of Baroda enables digital loans through the Account Aggregator framework – here’s what it means and how to use it</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/98-of-companies-responsible-for-80-of-corporate-greenhouse-emissions-refuse-to-disclose-their-climate-change-impacts-study/articleshow/94680731.cms">98% of companies responsible for 80% of corporate greenhouse emissions refuse to disclose their climate-change impacts: Study</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/akasa-air-launches-maiden-flights-from-delhi-to-allow-pets-in-the-cabin/articleshow/94680808.cms">Akasa Air launches maiden flights from Delhi, to allow pets in the cabin</a>

PepsiCo’s Quaker Oats cuts down sugar content by 30% to make muesli  more healthy

<ul><li>With the passing away of <keyword id="6398943" type="General" weightage="20" keywordseo="rakesh-jhunjhunwala" source="Orion">Rakesh Jhunjhunwala</keyword>, India has lost its biggest champion.</li><li>He had been widely known for his investment strategies, but he was also one of the biggest philanthropists in the country.</li><li>Even while battling illness, he opened an eye hospital where 80% of surgeries would be carried out free of cost.</li></ul>“When I became a billionaire in 2008, my father wasn’t interested in my net worth but in how much I was going to give away,” Rakesh Jhunjhunwala, India’s best known stock investor, had said nearly a decade ago. This is probably one of the reasons why Jhunjhunwala constantly endeavoured to strike the right balance between earning and giving back to the society. The man, dubbed as India’s Warren Buffett, was so much more than an Indian stock market mogul. He has been among the country’s most notable philanthropists – he wanted to give away a fourth of his wealth within his lifetime. He did achieve the target last year as he donated 25% of his annual income towards charitable work focused on the education sector, according to Edelgive Hurun India Philanthropy list. He donated approximately <a href="https://www.india.com/business/rakesh-jhunjhunwala-as-a-philanthropist-big-bull-donated-approx-rs-13-69-lakh-per-day-5571664/">₹13.69 lakh</a> per day last year. Jhunjhunwala <a href="https://www.businessinsider.in/india/news/akasa-air-founder-top-broker-rakesh-jhunjhunwala-passes-at-62/articleshow/93551704.cms">passed away </a>on Sunday morning, leaving a deep void. His stock picks had earned him a cult following, and his humble nature was praised by many. It was not long ago that Jhunjhunwala’s simple dressing sense became a source for many memes after his meeting with Prime Minister Narendra Modi. Son of an income-tax officer, Jhunjhunwala never forgot his roots no matter how much wealth he had accumulated over the years. “I would be driving the same car and having the same food even with 85% less wealth than now. At heart, I’m pure middle-class. If I don’t go to the office for a few days, my wife starts asking why you are home,” India’s <a href="https://www.forbes.com/india-billionaires/list/#tab:overall">36th </a>richest man had <a href="https://www.thehindubusinessline.com/markets/rakesh-jhunjhunwala-indias-warren-buffet-who-remained-a-middle-class-at-heart/article65768876.ece">said</a>. Jhunjhunwala stepped into philanthropy with St Jude, a free-of-cost shelter for underprivileged children battling cancer, which has helped over 31,262 children since its inception in 2006. His biggest charity was Agastya, which aims to impart knowledge of science to young students. Other than these, he also backed Ashoka University. Friends and the beneficiaries of these organisations have also <a href="https://www.outlookindia.com/business/the-oracle-of-dalal-street-rakesh-jhunjhunwala-news-216304">highlighted</a> that Jhunjhunwala didn’t just believe in only signing a cheque, but was also actively involved in these causes. The philanthropy didn’t end here. Even when he was battling health problems last year, Jhunjhunwala opened an eye hospital named after his father near Mumbai last June. The R Jhunjhunwala Sankara Eye Hospital follows a 20:80 model, where two in ten surgeries are subsidised for those who can afford it and the remaining eight are totally free of cost. The hospital is primarily built for patients from rural Maharashtra. Jhunjhunwala was born on July 5, 1960, and grew up in a Rajasthani family in Bombay. He entered the stock market with just ₹5,000 in 1985. He amassed a fortune worth an estimated $5.8 billion (roughly ₹46,042 crore) in his life span. His portfolio included 47 companies like Star Health, Titan, Canara Bank, Indian Hotels Company, Nazara Technologies and Tata Motors at the end of June. He also had holdings in Tata Communications, Bilcare, Federal Bank and Aptech. His latest venture was an airline – Akasa Air, which took its maiden flight exactly a week before his death on August 7. A Chartered Accountant by qualification and training, he was 62 and is survived by his wife Rekha and three children. “Rakesh Jhunjhunwala was indomitable. Full of life, witty and insightful, he leaves behind an indelible contribution to the financial world,” Prime Minister Narendra Modi said on Sunday. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/heres-a-list-of-stocks-that-can-benefit-from-the-festive-season/articleshow/93579202.cms">Here’s a list of stocks that can benefit from the festive season</a> <a href="https://www.businessinsider.in/business/news/food-delivery-startup-qmin-claims-to-be-the-only-profitable-business-among-its-peers-like-zomato-swiggy/articleshow/93520527.cms">Taj Hotels’ Qmin food delivery app claims to be the only profitable business among its peers</a> <a href="https://www.businessinsider.in/entertainment/news/avatar-2-black-panther-2-ant-man-here-is-a-complete-list-of-hollywood-movies-expected-to-hit-indian-theaters-in-the-next-6-7-months/articleshow/93522825.cms">Avatar 2, Black Panther 2, Ant Man — Here is a complete list of Hollywood movies expected to hit Indian theaters in the next 6-7 months</a>

You Searched For "akasa air flights" and got 10 results

Rakesh Jhunjhunwala-backed airline 'Akasa Air' to arrive soon; reveals aircraft picture

IANS

Tata's mega aviation merger is poised for flight, but the skies are not clear yet

Katya Naidu

After techies, its aviation crew salaries that will be ‘up in the air’

Vaamanaa Sethi

Ultra-low-cost airlines are flocking to Boeing's 737 Max, inking millions in orders as talk of safety concerns vanish

Thomas Pallini

India moving from one of largest importers to developing its own platforms: Boeing India Prez Salil Gupte

ANI

India Inc might see margin squeeze with a crude shock at hand

Katya Naidu

Centre releases ₹7,183 crore PDRD grant to 14 states

IANS

India has 3x more women pilots than the global average

Vaamanaa Sethi

PepsiCo’s Quaker Oats cuts down sugar content by 30% to make muesli more healthy

Eetika Kapoor

Life and times of Rakesh Jhunjhunwala — the man behind the trader

Kritti Bhalla