Recent News

New Delhi, 14th July 2022: • Pent-up demand aided international passenger traffic for Indian carriers to notably surpass pre-Covid levels • For June 2022, the average daily departures were at ~2,771, notably higher than the average daily departures of ~1,056 in June 2021 • Aviation turbine fuel (ATF) prices, due to ongoing geo-political issues linked to Russia-Ukraine conflict, a likely threat to the recovery process With return to normalcy in the business environment, the domestic passenger traffic grew by 2.39 times Y-o-Y to ~10.5 million in June 2022 (3.1 million in June 2021) and was only ~12% lower compared to ~12.0 million in June 2019 (pre-Covid level). On a sequential basis, however, the domestic air passenger traffic in June 2022 was ~13% lower compared to ~12.1 million in May 2022, primarily due to the seasonality impact related to the re-opening of schools. The airlines’ capacity deployment for June 2022 was 1.6 times higher than in June 2021 (83,124 departures in June 2022 against 31,693 departures in June 2021). On a sequential basis, the number of departures in June 2022 was lower by around 4% compared to May 2022. As per a recent report released by ICRA and commenting further, Mr. Suprio Banerjee, Vice President & Sector Head, ICRA said, “For June 2022, the average daily departures were at ~2,771, notably higher than the average daily departures of ~1,056 in June 2021, and marginally lower compared to ~2,784 in May 2022. The average number of passengers per flight during June 2022 was 127, lower than an average of 140 passengers per flight in May 2022 and an average of 139 passengers per flight in June 2019. The recovery in passenger traffic is expected to be relatively faster in FY2023 with the return to normalcy situation; however, an overhang of any further Covid wave looms on the sector and will be monitorable. Elevated ATF prices aggravated by geo-political issues will remain a near-term challenge for the industry and will continue to weigh on the profitability of Indian carriers. The recent depreciation of rupee has further added to the industry woes, given around 35-50% of the airlines’ operating expenses are denominated in US$. Also, led by rising ATF prices, the yields for the airlines have started inching up and are estimated to have moved up by around 20% over the last year. With the resumption of scheduled international operations since March 27, 2022, and reversion to bilaterally-agreed capacity entitlements, the international passenger traffic for Indian carriers is on a growth trajectory and surged to ~2.1 million in June 2022, which has notably surpassed the international passenger traffic of ~1.8 million witnessed in June 2019 (pre-Covid level) by ~18%. An area of concern remains, that of ATF prices which have surged by ~120% on a Y-o-Y basis in mid-June 2022, given the elevated crude oil prices, due to geo-political issues arising from the Russian invasion of Ukraine. The rising ATF prices will pose a serious threat to the industry earnings in FY2023. On an aggregate basis, a return to normalcy will lead to recovery in passenger load factors, which in turn will aid revenues; however, elevated ATF prices will continue to weigh on the earnings of Indian carriers in FY2023.

New Delhi ,14 July 2022: Malaysia Airlines has renewed its partnership with SITA for a comprehensive upgrade that will link its global operations to its hub in Kuala Lumpur with fast, secure, and reliable network connectivity. As part of the five-year agreement, Malaysia Airlines will leverage SITA Connect, specifically designed for the air transport industry, to meet the airline’s needs in and outside airports. SITA Connect will lower connectivity costs, improve the quality of service, enable ease of access to new features and applications, and facilitate their passengers’ check-in process worldwide, benefiting from SITA’s global presence at over 650 airports across 220 countries and territories. SITA Connect will also provide network connectivity that allows team members to access central systems from anywhere, supporting the airline’s worldwide operation for employees working remotely. Security was a key factor in selecting SITA’s solution to support the airline’s critical operational systems. Izham Ismail, Group CEO, Malaysia Airlines, said: “We’re excited to ramp up our operational capabilities as the industry’s recovery takes hold, with the support of our trusted technology partner SITA. Boosting the connectivity, security, and agility of the backbone technologies that support Malaysia Airlines will ensure we are ready for the influx of passengers over the coming months and poised to deliver a seamless travel experience for all”. Sumesh Patel, APAC President at SITA, said: “SITA has a long history of collaboration with Malaysia Airlines. We’re excited to renew the relationship once more by upgrading several services that will ultimately help deliver a smooth passenger process. Operational efficiency is under the microscope in the wake of the pandemic, and we’re committed to helping the industry recover with smart solutions that are resilient, agile, and cost-effective”.

5th July 2022, Colombo: SriLankan Airlines and Kuwait Airways have announced their new codeshare partnership effective from 20 June 2022, which provides enhanced connections and convenience to customers of both airlines. Each airline will place the other airline’s marketing code on its flights operated between Colombo and Kuwait with the alliance coming into effect. The new codeshare partnership will strengthen and take to new heights the cordial commercial relationship that has existed between SriLankan Airlines and Kuwait Airways since 1999. SriLankan Airlines has carried passengers between Colombo and Kuwait for over four decades and currently operates a daily flight to Kuwait. Similarly, Kuwait Airways has been serving passengers on this route since 1978 and plans to operate three weekly flights to Colombo starting from October 2022. Passengers may essentially expect to gain all the benefits of codeshare flights including seamless connectivity and the convenience of having their entire journey managed by one airline from the point of purchasing tickets until they arrive at their final destination with the launch of this partnership. Furthermore, passengers of both airlines will enjoy increased alternative flight options, specifically to the Middle East and Europe via Kuwait and to the Indian Subcontinent and the Far East via Colombo. Richard Nuttall, Chief Executive Officer of SriLankan Airlines stated, “We are delighted to enter a new chapter in the longstanding relationship between Kuwait Airways and SriLankan Airlines that is expectedto generate value to our customers in multiple ways. The Middle Eastern market has always been important to SriLankan Airlines, and we continually endeavour to expand our network and product portfolio to serve this segment better. We look forward to working with Kuwait Airways and creating greater synergy between our combined networks for the benefit of our passengers.” MaenRazouqi, Chief Executive Officer of Kuwait Airways stated, “We welcome SriLankan Airlines as our codeshare partner. The new beginning of this partnership will support Kuwait Airways and SriLankan Airlines operations between the two cities and allow more travel options, facilities for the public. Passengers and travel agents will be able to book directly on these flights through our offices/website/APP and agents’ reservation system. Further, this Codeshare Partnership will not only enhance the relationship between the two airlines but also the strong relationship between the two friendly States, Kuwait and Sri Lanka. On this occasion, I would like to thank Mr.Richard Nuttall and both the teams for their efforts in making this Codeshare Agreement effective. Both SriLankan Airlines and Kuwait Airways are also working on incorporating the Frequent Flyer Program for codeshare flights, so that passengers can be rewarded with the benefits of such programs. Further, both airlines anticipate to explore other avenues for future mutual co-operation and expansion of their partnership.”

National, July 04, 2022: Akasa Air, India’s newest airline, today unveiled the first look of its airline crew uniform, featuring a youthful and contemporary design, and colours that reflect the warm, friendly and happy personality of Akasa Air. Keeping in mind ergonomics, aesthetics and comfort, Akasa Air is the first Indian airline to have introduced custom trousers, jackets, and comfortable sneakers for its airline in-flight crew. The uniform is inspired by the company’s core beliefs of employee centricity and sustainability. The trouser and jacket fabric has been specially made for Akasa Air, using recycled polyester fabric which is made from pet bottle plastic salvaged from marine waste. The uniform fit focuses on providing the best possible stretch to ensure employees’ comfort over their busy flight schedules. Designed by Rajesh Pratap Singh, the jacket draws inspiration from the Indian bandh gala and is forward-looking in a modern version of the garment. Given the mobile lifestyle of crew members and long hours spent standing, Vanilla Moon designed sneakers that are light, and contain extra cushioning from heel to toe to ensure better support. In line with Akasa Air’s approach towards sustainability, the sole of the sneakers is carved from recycled rubber and manufactured without any use of plastic. Describing the inspiration behind the uniform, Belson Coutinho, Co-Founder and Chief Marketing & Experience Officer, Akasa Air, said, “Employee centricity and sustainability are going to be at the core of everything that we do at Akasa Air. We have designed a uniform in which our team feels both proud and comfortable as they direct their energy to ensure a warm, friendly, and efficient flying experience for all our passengers”. “These uniforms are a perfect amalgamation of style and sustainability and reflect Akasa Air’s core values. From concept to the final outcome, it has been an exciting journey for me to work on these designs and present one of the most unique, sustainable and functional uniforms of our times,” said Rajesh Pratap Singh, who worked with Akasa Air to create the uniform. Deepika Mehra, Founder, Vanilla Moon, added, “We are delighted to share this shoe design – which is sustainably produced, functional, comfortable, gender-neutral and contemporary. The design also reflects Akasa Air’s employee-centric culture to ensure their comfort.” Akasa Air received the delivery of its first Boeing 737 max aircraft in India on June 21. The airline is now gearing up for its commercial launch by the end of July. It will be conducting its proving flights in the first week of July to obtain the Air Operator’s Certificate (AOC) required for its commercial launch.