The onset of two airlines, Akasa Air and Jet Airways (India) Ltd, is set to intensify competition in India's largely loss-making sector, which was looking to emerge stronger in the first quarter of the new fiscal year after a melded performance in the March quarter when air traffic rebounded from a pandemic-scarred January.
Akasa Air, which is financed by billionaire Rakesh Jhunjhunwala, expects to make its first commercial flight in June, according to co-founder and CEO Vinay Dube, who spoke at an industry event last month. Meanwhile, according to media sources, Jet Airways is seeking to reclaim its air operator certificate (AOC) within two months under the new ownership of the Jalan-Kalrock partnership.
Jet's AOC will be revalidated, allowing the airline to restart commercial flights nearly three years after it was forced to shut down due to a severe liquidity shortage.
Despite the fact that demand has returned, higher oil costs have put a damper on things, according to a senior airline official who did not want to be identified.
According to aviation consultant Capa India's mid-year estimate for the previous fiscal, Indian airlines would lose nearly $4 billion, barring any revisions, in 2021-22. Brent crude prices have risen more than 20% since February, so actual losses might be higher. Brent crude prices are up 78% year over year. In India, jet fuel prices are at an all-time high.
However, following a two-year break due to the epidemic, limitations on foreign flights have been eased, allowing airlines to resume regular international flights. International flights have larger yields than domestic flights, allowing you to make more money.