He said India is expected to cater to 160 million domestic aviation passengers and around 75 million international aviation passengers in FY24.
Government data reviewed by Reuters showed India's annual jet fuel consumption in the fiscal year ended March 31, 2018 was 7.6 million tonnes, while imports in that period were just 291,000 tonnes.
The four units, which include Alliance Air, ground handling and MRO subsidiaries, are expected to be hived off and possibly sold by December
Analysts believe an overall 10-15 percent cuts in costs is likely for all take-offs from Delhi. This may be followed by similar news in Mumbai and Chennai.
Kapil Kaul of Centre for Asia-Pacific Aviation (CAPA) rules out the chances of this investment triggering an open offer as the investment may not be through direct equity but some form of quasi-debt that can be converted into equity later.
Kaul says the quarterly performance was hit by a couple of one-off factors, but there is no threat to Indigo's profitability as long as crude prices stay low.
As long as the thrust is primarily in terms of ensuring that the critical elements of the policy structures are implemented both in terms of fiscal regime, infrastructure and structural issues like DGCA, in the long-term it will be good for everyone, says Kapil Kaul of CAPA
Speaking to CNBC-TV18, Deven Choksey of KR Choksey and Kapil Kaul of Centre for Asia Pacific Aviation (CAPA) feel there is nothing wrong with it considering that IndiGo has paid out similar dividends in the past
Kaul says Indigo's initial public offer will be crucial for the aviation sector, and it could even encourage GoAir to come out with a public offer. Kaul expects Spicejet to raise capital after the Indigo IPO.
Kapil Kaul of CAPA expects Jet Airways to turn profitable in the next 12-18 months.
According to Kapil Kaul, South Asia chief executive of aviation consultancy CAPA, if the IPO is successful, it will be easier for companies such as SpiceJet to raise funds. He sees one or two more airlines opting for an IPO in the next 12-18 months.
As per the proposal by the aviation ministry, new airlines will be barred from flying to Gulf, Southeast Asia. For flying to these destinations, new airlines will need 600 DFCs (Digital Flying Credits).
The sources said ex-promoter Ajay Singh along with private equity funds may pump up to USD 250 million in the carrier
Kaul says SpiceJet will need at least USD 250 million immediately
In an interview to CNBC-TV18, Kapil Kaul, south Asia chief executive of aviation consultancy CAPA said he is happy that the government is pushing banks to rescue Spicejet, as it was a bad decision to stop advance bookings.
SpiceJet former director Ajay Singh says the aviation company must focus on profitable routes, get back to the low-cost model and work hard to bring costs down.
As per the talks with investors, SpiceJet is valued at Rs 1500 crore. Sun Group holds 53.4 percent stake in SpiceJet. It is not yet clear whether SpiceJet promoter and media baron Kalanithi Maran is mulling to exit completely from the low-cost airline.
Kapil Kaul, chief executive officer- South Asia, CAPA says the Indian aviation space is uncertain due to policy regulatory framework.
SpiceJet-Tigerair agreement is primarily a commercial one. It lacks potential of investment. There are fundamental issues with respect to investments in SpiceJet, so they need to do a lot more before an investor comes forward, says Kapil Kaul.
The SC has said that it has not stayed the deal itself but sought replies in four weeks. It hs send notices to aviation ministry, Foreign Investment Promotion Board (FIPB), commerce ministry, Jet Airways and Etihad .
According to Kapil Kaul of CAPA, the Jet-Etihad deal is unlikely to face anymore hurdles in its operations and the approval by the CCI is just a formality, the deal can progress and get operational.
The deal has already been cleared by SEBI and FIPB. Once the deal is clinched after CCEA approval, Jet promoter Naresh Goyal would hold 51 percent stake and Etihad 24, with 25 percent remaining with the public.
The Tata‘s will hold 51 percent and Singapore Airlines will get 49 percent. But the deal may face regulatory turbulence as Tata's also hold 30 percent in a joint venture (JV) with Air Asia India reports CNBC-TV18‘s Ronojoy Banerjee and Animesh Das.
Experts lauded the deal between Tata Sons and Singapore Airlines for a new full-time carrier. However, they are also wary about the regulatory concerns which may be a hurdle for it.
The Cabinet approved the India-UAE Aviation Bilateral Pact. The bilateral pact would primarily help Etihad since they would get access to one of the largest and fastest growing aviation markets in the world, says Kapil Kaul, CEO - India & ME, CAPA.