Business

Pahalgam fallout: Pakistan airspace closure to hurt India-based airlines

“While flights to the Middle East, Europe, and the US may not be a big challenge, flights to the CIS (Commonwealth of Independent States) countries would be a challenge,” he added.

According to aviation industry veteran Manoj Chacko, other routes that do not depend on Pakistan’s airspace can be used by India-based airlines for international journeys.However, airline representatives, along with MoCA (Ministry of Civil Aviation) officials, seem confident that the lessons learned from the 2019 episode will keep the industry in “good stead.”Pointing out that Air India and IndiGo will be most affected by the closure of Pakistan’s airspace, Mark D Martin, CEO of Martin Consulting, said: “By conservative estimates, we expect ticket prices to rise by a minimum of 35 per cent to destinations in the Middle East and by over 40 per cent to destinations in Europe in addition to higher carbon emissions and fuel burn.”Speaking to businessline, industry insiders have estimated a rise in airfares and losses for India-based airlines.Air India said that some of its flights to or from North America, the UK, Europe, and the Middle East will take an alternative extended route.Besides, Indian carriers’ plans to further expand their international footprint and the Centre’s plans to make Delhi Airport an international hub with major I-to-I (international-to-international) operations might be in jeopardy.The development assumes significance as Pakistan’s airspace is a vital corridor for Indian airlines, especially for west-bound flights from northern cities like Delhi to Europe, the Middle East, Central Asia, and even to the US.Especially hard-hit were large international fleet operators, like Air India, which was government-owned at the time and lost nearly ₹6 crore a day.“Some US-bound flights may see additional fuel stops and extended travel times, pushing up operational expenses considerably.”“It is always the airline business that gets impacted when India and Pakistan spar and sabre rattle. This situation will have an earning impact on airline financials.”However, the situation is not unprecedented, as airlines had a similar experience in the aftermath of the Balakot air strikes by the Indian Air Force in 2019.Pakistan’s decision to close its airspace to Indian-based airlines is expected to deal a financial as well as operational blow to the sector.“We understand this may cause inconvenience to our customers, which our teams are working hard to minimise as much as possible.”“Its closure forces carriers to take longer alternative routes, increasing flight times and fuel cost, particularly impacting long-haul routes to the West,” Jagannarayan Padmanabhan, Senior Director, Crisil Market Intelligence, told businessline.Published on April 24, 2025 “In light of airspace closure by Pakistan for Indian airlines, schedules of a few of our international flights are impacted,” IndiGo said on X.Meanwhile, IndiGo said that a few of its international flights have been impacted.Air India had to club together several US and Europe-bound flights. The Delhi-Washington flight had a stopover at Mumbai.In 2019, flights from North India to the US and Europe were diverted over Mumbai and then northwards over the Arabian Sea through the United Arab Emirates (UAE) airspace.“Flight dispatchers need to plan smartly,” Chacko, who also runs regional airline Fly91 as its MD and CEO, told businessline.As per industry insiders, the financial blow might be even more “deadly this time around” with expanded international operations of India-based airlines to the Gulf, Europe, the US, and the CIS countries.At the time, flights to the Gulf, Europe, and the US were either clubbed, cancelled, or rerouted.Furthermore, many flights at that time were cancelled, such as Delhi to Najaf (in southern Iraq), Delhi-Madrid, Delhi-Birmingham, and Delhi-Amritsar-Birmingham.Apart from alternative routes, technical stops at Sharjah in the UAE and Vienna in Austria were created for operations from India. Industry insiders have estimated a rise in airfares and losses for India-based airlines

The longer flight durations, higher fuel burn, and restricted capacity in 2019 had led to massive losses for the airline industry.

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“Air India regrets the inconvenience caused to our passengers due to this unforeseen airspace closure that is outside our control,” Air India said on social media platform X (formerly Twitter).

Published

4 weeks ago

April 24, 2025

KP News Desk

Pahalgam fallout: Pakistan airspace closure to hurt India-based airlines

“In light of airspace closure by Pakistan for Indian airlines, schedules of a few of our international flights are impacted,” IndiGo said on X.

“Flight dispatchers need to plan smartly,” Chacko, who also runs regional airline Fly91 as its MD and CEO, told businessline.Meanwhile, IndiGo said that a few of its international flights have been impacted.Air India had to club together several US and Europe-bound flights. The Delhi-Washington flight had a stopover at Mumbai.In 2019, flights from North India to the US and Europe were diverted over Mumbai and then northwards over the Arabian Sea through the United Arab Emirates (UAE) airspace.“It is always the airline business that gets impacted when India and Pakistan spar and sabre rattle. This situation will have an earning impact on airline financials.”Besides, Indian carriers’ plans to further expand their international footprint and the Centre’s plans to make Delhi Airport an international hub with major I-to-I (international-to-international) operations might be in jeopardy.As per industry insiders, the financial blow might be even more “deadly this time around” with expanded international operations of India-based airlines to the Gulf, Europe, the US, and the CIS countries.Furthermore, many flights at that time were cancelled, such as Delhi to Najaf (in southern Iraq), Delhi-Madrid, Delhi-Birmingham, and Delhi-Amritsar-Birmingham.At the time, flights to the Gulf, Europe, and the US were either clubbed, cancelled, or rerouted.“We understand this may cause inconvenience to our customers, which our teams are working hard to minimise as much as possible.”Pointing out that Air India and IndiGo will be most affected by the closure of Pakistan’s airspace, Mark D Martin, CEO of Martin Consulting, said: “By conservative estimates, we expect ticket prices to rise by a minimum of 35 per cent to destinations in the Middle East and by over 40 per cent to destinations in Europe in addition to higher carbon emissions and fuel burn.”“Its closure forces carriers to take longer alternative routes, increasing flight times and fuel cost, particularly impacting long-haul routes to the West,” Jagannarayan Padmanabhan, Senior Director, Crisil Market Intelligence, told businessline.The development assumes significance as Pakistan’s airspace is a vital corridor for Indian airlines, especially for west-bound flights from northern cities like Delhi to Europe, the Middle East, Central Asia, and even to the US.“While flights to the Middle East, Europe, and the US may not be a big challenge, flights to the CIS (Commonwealth of Independent States) countries would be a challenge,” he added.The longer flight durations, higher fuel burn, and restricted capacity in 2019 had led to massive losses for the airline industry. Industry insiders have estimated a rise in airfares and losses for India-based airlines

Industry insiders have estimated a rise in airfares and losses for India-based airlines

However, the situation is not unprecedented, as airlines had a similar experience in the aftermath of the Balakot air strikes by the Indian Air Force in 2019.Air India said that some of its flights to or from North America, the UK, Europe, and the Middle East will take an alternative extended route.Speaking to businessline, industry insiders have estimated a rise in airfares and losses for India-based airlines.Apart from alternative routes, technical stops at Sharjah in the UAE and Vienna in Austria were created for operations from India.“Some US-bound flights may see additional fuel stops and extended travel times, pushing up operational expenses considerably.”“Air India regrets the inconvenience caused to our passengers due to this unforeseen airspace closure that is outside our control,” Air India said on social media platform X (formerly Twitter).Pakistan’s decision to close its airspace to Indian-based airlines is expected to deal a financial as well as operational blow to the sector.According to aviation industry veteran Manoj Chacko, other routes that do not depend on Pakistan’s airspace can be used by India-based airlines for international journeys.Especially hard-hit were large international fleet operators, like Air India, which was government-owned at the time and lost nearly ₹6 crore a day.Published on April 24, 2025

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However, airline representatives, along with MoCA (Ministry of Civil Aviation) officials, seem confident that the lessons learned from the 2019 episode will keep the industry in “good stead.”

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United Spirits Q4 PAT rises 17% to ₹451 cr for Q4FY25

Within categories, the Prestige & Above segment grew 13.2 per cent, and the NSV for the Popular segment grew 1.1 per cent, said the company.

The growth was driven by the company’s re-entry into the Andhra Pradesh market and the resilient performance of its key trademarks, according to the company.The company’s Net Sales Value (NSV) for the quarter stood at ₹2,946 crore, up 10.5 per cent YoY. It’s gross revenue exceeded last year’s ₹6,394 crore to stand at ₹6,549 crore. Published on May 20, 2025 Shares of the company closed at ₹1,557.45, up 0.022 per cent on Tuesday on the BSE.Commenting on the result, Praveen Someshwar, CEO & Managing Director, said “The challenging demand environment notwithstanding, we have delivered 13.2 per cent NSV growth for P&A in Q4FY25 and 9.9 per cent P&A growth for FY25, and a leveraged EBITDA growth that takes us to our medium-term guidance.”Diageo India (United Spirits Ltd), a subsidiary of the British liquor giant Diageo reported a 17 per cent year-on-year increase in its standalone profit after tax (PAT) to ₹451 crore for the fourth quarter of FY25, compared to Q4 of the previous fiscal. The growth was driven by the company’s re-entry into the Andhra Pradesh market and the resilient performance of its key trademarks

For the full year FY25, it reported a PAT of ₹1,158 crore, up from last fiscal’s ₹1,312 crore.

Published

16 hours ago

May 20, 2025

KP News Desk

The company’s Net Sales Value (NSV) for the quarter stood at ₹2,946 crore, up 10.5 per cent YoY. It’s gross revenue exceeded last year’s ₹6,394 crore to stand at ₹6,549 crore.

For the full year FY25, it reported a PAT of ₹1,158 crore, up from last fiscal’s ₹1,312 crore. Within categories, the Prestige & Above segment grew 13.2 per cent, and the NSV for the Popular segment grew 1.1 per cent, said the company.The growth was driven by the company’s re-entry into the Andhra Pradesh market and the resilient performance of its key trademarks, according to the company.Shares of the company closed at ₹1,557.45, up 0.022 per cent on Tuesday on the BSE.Commenting on the result, Praveen Someshwar, CEO & Managing Director, said “The challenging demand environment notwithstanding, we have delivered 13.2 per cent NSV growth for P&A in Q4FY25 and 9.9 per cent P&A growth for FY25, and a leveraged EBITDA growth that takes us to our medium-term guidance.”Diageo India (United Spirits Ltd), a subsidiary of the British liquor giant Diageo reported a 17 per cent year-on-year increase in its standalone profit after tax (PAT) to ₹451 crore for the fourth quarter of FY25, compared to Q4 of the previous fiscal. The growth was driven by the company’s re-entry into the Andhra Pradesh market and the resilient performance of its key trademarks

Published on May 20, 2025

Business

DLF Q4 net profit rises 37% to ₹1,268 cr; FY25 profit surges 59%

The other big-ticket launch, DLF Privana West, witnessed a complete sellout within a few days of the soft launch, clocking approximately ₹5,600 crore of new sales bookings.

“The Dahlias, received encouraging demand and generated ₹13,744 crore in new sales bookings during the fiscal. This has resulted in the monetization of approximately 39 percent of the estimated total sales potential of this project within the first year of its launch,” the company said in a statement. The country’s largest realtor, DLF, reported a net profit of ₹1,268 crore, up 37 per cent y-o-y, for the quarter ending March 31, 2025. Revenue (consolidated) for the period stood at ₹3,348 crore.DLF’s annuity business, DLF Cyber City Developers Limited (DCCDL), stood at ₹6,448 crore; EBITDA stood at ₹4,949 crore, reflecting a y-o-y growth of 11%; consolidated profit for the year stood at ₹2,461 crore, a y-o-y growth of 46%. DLF ended FY25 with a net cash surplus of ₹5,302 crore and improved its net cash position to ₹6,848 crore.

DLF ended FY25 with a net cash surplus of ₹5,302 crore and improved its net cash position to ₹6,848 crore.

“The Board has recommended a dividend of ₹6 per share for shareholders’ approval. This payout would signify a year-on-year growth of 20% in the dividend compared to the previous year,” the company said in a statement.For the full year, the company’s net profit stood at ₹4,357 crore, up 59 per cent y-o-y; while revenues (consolidated) stood at Rs 8996 crore. Revenue was driven by new sales bookings of ₹21,223 crore, up 44 per cent y-o-y.Published on May 19, 2025 The company generated a net cash surplus of ₹5,302 crore during the fiscal year, and its net cash position improved to ₹6,848 crore for FY25.

Published

2 days ago

May 19, 2025

KP News Desk

DLF’s annuity business, DLF Cyber City Developers Limited (DCCDL), stood at ₹6,448 crore; EBITDA stood at ₹4,949 crore, reflecting a y-o-y growth of 11%; consolidated profit for the year stood at ₹2,461 crore, a y-o-y growth of 46%.Published on May 19, 2025 The company generated a net cash surplus of ₹5,302 crore during the fiscal year, and its net cash position improved to ₹6,848 crore for FY25.“The Board has recommended a dividend of ₹6 per share for shareholders’ approval. This payout would signify a year-on-year growth of 20% in the dividend compared to the previous year,” the company said in a statement.For the full year, the company’s net profit stood at ₹4,357 crore, up 59 per cent y-o-y; while revenues (consolidated) stood at Rs 8996 crore. Revenue was driven by new sales bookings of ₹21,223 crore, up 44 per cent y-o-y.The other big-ticket launch, DLF Privana West, witnessed a complete sellout within a few days of the soft launch, clocking approximately ₹5,600 crore of new sales bookings.“The Dahlias, received encouraging demand and generated ₹13,744 crore in new sales bookings during the fiscal. This has resulted in the monetization of approximately 39 percent of the estimated total sales potential of this project within the first year of its launch,” the company said in a statement. The country’s largest realtor, DLF, reported a net profit of ₹1,268 crore, up 37 per cent y-o-y, for the quarter ending March 31, 2025. Revenue (consolidated) for the period stood at ₹3,348 crore.

Business

Editorial. Pressure tactics

In a move that perhaps marks a shift in the way India is approaching trade talks with the US, the External Affairs Minister S Jaishankar has firmly refuted the US’ claim, made repeatedly in recent weeks, that India has agreed to nil tariffs on US imports. Jaishankar’s statement last week tersely and firmly clarifies that trade talks are in progress, and ‘nothing is decided until everything is decided’. India has cleared the air, and it was high time that it did so. It coincides with the upcoming trade talks between the two countries this week; Commerce and Industries Minister Piyush Goyal is in the US with his team of negotiators.

Since April 8, when President Trump slapped his reciprocal tariffs on 57 countries with a 90-day deadline for them to take effect, his administration has gone overboard in ramping up the pressure on India. The gambit here is crudely simple — to force India to ink a deal in these 90 days, before July 8, in order to escape the 26 per cent tariffs that are expected to kick in after that. The same trick is being played out with the rest of the world as well, forcing quite a few countries to line up for talks with the US. In India’s case, Trump and his colleagues have cynically generated a lot of confusion. India has maintained a studied silence in the face of zero tariff claims. Its reticence was perhaps aimed at ensuring that the talks proceeded in good faith. But US’ actions have marred the process. Trump has proposed a ‘big beautiful Bill’ that may ‘tax’ 5 per cent of billion NRI remittance outflows. India should be circumspect in the face of pressure, without allowing the US to set the pace in the talks. A bad deal cobbled in haste is far worse than none at all. Meanwhile, India sent out another sharp message that it will look out for its interests. In a throwback to Trump 1.0, India has proposed retaliatory action on US’ tariffs on steel and aluminium. However, it needs to work out a plan with respect to other areas as well. At the outset, it should be clear that the US’ interests in India go beyond trade per se to persuading India to alter its regulatory systems with respect to GM food, e-commerce, big tech, pharma and other high tech sectors. It is also keen on access to India’s food (maize and soyabean) and dairy sector, besides selling defence equipment and oil. India has enough in its toolkit to squeeze a deal that does not hurt its interests. A levy on e-commerce monopolies, a cap on royalty payments, applying data localisation rules and compulsory licensing of patented drugs can be used to ward off an adverse outcome.

Published

3 days ago

May 18, 2025

KP News Desk

Published on May 18, 2025

There is scope to bring down tariffs in products which are zero-rated with other FTAs. A deal that brings down tariffs on India’s goods to 10 per cent is possible without much sacrifice. But Trump’s bluff and bluster must be called out, whether it is over trade or matters of national security, even as we keep our ties with US on an even keel. Meanwhile, India sent out another sharp message that it will look out for its interests. In a throwback to Trump 1.0, India has proposed retaliatory action on US’ tariffs on steel and aluminium. However, it needs to work out a plan with respect to other areas as well. At the outset, it should be clear that the US’ interests in India go beyond trade per se to persuading India to alter its regulatory systems with respect to GM food, e-commerce, big tech, pharma and other high tech sectors. It is also keen on access to India’s food (maize and soyabean) and dairy sector, besides selling defence equipment and oil. India has enough in its toolkit to squeeze a deal that does not hurt its interests. A levy on e-commerce monopolies, a cap on royalty payments, applying data localisation rules and compulsory licensing of patented drugs can be used to ward off an adverse outcome. In a move that perhaps marks a shift in the way India is approaching trade talks with the US, the External Affairs Minister S Jaishankar has firmly refuted the US’ claim, made repeatedly in recent weeks, that India has agreed to nil tariffs on US imports. Jaishankar’s statement last week tersely and firmly clarifies that trade talks are in progress, and ‘nothing is decided until everything is decided’. India has cleared the air, and it was high time that it did so. It coincides with the upcoming trade talks between the two countries this week; Commerce and Industries Minister Piyush Goyal is in the US with his team of negotiators.