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Economic Times
an hour ago
- Business
- Economic Times
Three years after takeover Air India wants to walk without Tata hand holding
Air India, three years post-Tata Sons acquisition, is striving for profitability and reduced reliance on promoter equity. CEO Campbell Wilson highlights initiatives like airline mergers, tech upgrades, and fleet modernization to cut operational costs. Despite narrowed losses in FY24, airspace closures pose challenges, but Air India focuses on service quality and strategic routes to attract premium customers amidst rising competition. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ( Originally published on Jun 01, 2025 ) Three years after salt-to-steel conglomerate Tata Sons acquired Air India, the airline is aiming to be profitable and cut its dependence on equity investment from promoters, the airline's CEO Campbell Wilson in an interview to ET, didn't put a timeline to become profitable, but outlined multiple initiatives like the merger of four airlines into two, upgrading archaic software systems to modern ones, a strong order book for new aircraft while retrofitting the older ones and a better trained workforce as some of the steps which is reducing the cost of to an internal presentation reviewed by ET, the airline, late last year, had set a target to become profitable by FY 27. But closure of the Pakistani airspace for Indian carriers is likely to delay that, say experts.'I think the trajectory is very positive. While Air India has got new aircraft and improved standards, the low cost unit Air India Express has gone from 25 to 100 aircraft in a very short period of time and hence, there is some consolidation that needs to be performed,' Wilson said.'So if you, if you take the 2 units, both have slightly different trajectories, but in totality, are in the right place,Referring to the five-year transformation plan 'Vihaan' which was announced in September 2022, Campbell said,The airline significantly narrowed its losses in FY24, reporting a loss of Rs4,444 crore compared with Rs11,387 crore loss in FY23, its first full year after privatisation in 2022.'It'll take still a little bit more time to achieve what we want to achieve, but it was a five year project in the beginning'.The closure of the Pakistan air space has put a spanner in Air India's road to profitability. Due to the closure, which started on April 24, Air India's flights to North America are being forced to take detours and stops at Vienna and Copenhagen, leading to increased expenses.'It's not insignificant, but you know, as long as it covers the cost of operation, we will continue to operate. We don't know the extent to which the bottom line is going to be affected. We will try to minimise the effect,' Wilson airline has taken multiple mitigating steps like reducing the number of seats sold to reduce weight of aircraft such that only four routes are now doing dual strategy of operating a low cost and full service product though is helping to improve the balance sheet, the top executive said, as the low cost unit will be able to have cost parity with rival IndiGo in domestic sectors while Air India is earning a premium due to better product and service standards.'Previously, there weren't any sufficient advantages to overcome brand reputation, product and service that weren't as developed. But as we attain parity or even leadership on those things, those plus non-stop connections are clearly a competitive advantage,' Wilson airline's passenger revenue has more than doubled with a 49% market share on the top five metro routes and revenue from cargo has tripled since passengers for the airline has increased four times since acquisition, and is 10% of total traffic as the airline has revamped its flight schedules from neighbouring and South East Asian countries and flights are timed such that passengers connect to destinations in Europe, East Asia and Australia with minimum waiting is heating up as rival IndiGo, which has over 60% share of the domestic market, is readying to launch flights to though feels that the service standard and product of Air India will be attractive to the high-paying customers while IndiGo attracts the price conscious travellers. 'There's a premium market that is going via somewhere else because the non-stop proposition isn't of sufficient quality. We are catering to a different market segment and just need to be focused on our product quality, loyalty programme, catering, perception and connectivity,' he the airline's cabin upgrade program has been delayed significantly due to supply chain problems. Passengers flying to Europe and North America regularly complain about the worn out cabin or non-functional seat back screens. 'So there is more consistency to the product than earlier and there will be complete consistency in two years,' Wilson Tata Sons remain patient? 'You should ask them,' he quipped.
Express Tribune
4 days ago
- Business
- Express Tribune
RDA scam suspects in the NAB crosshairs
The National Accountability Bureau (NAB) has summoned two retired officials in connection with the Rawalpindi Development Authority (RDA) financial scandal. The summons were issued for Thursday (today) following their nomination as suspects by the RDA administration. The accused include former Director Asif Mehmood Janjua and retired Assistant Director Khawaja Arshad Javed. According to the NAB notice, both individuals are required to explain why they issued instructions to the bank regarding the issuance of Certificates of Deposit (CDRs), despite allegedly lacking the authority to do so. The bureau has asked them to provide a detailed explanation for their actions, submit complete records related to the CDRs, and furnish the names and details of all recipients. The notice further warned that failure to appear or comply would result in legal action in accordance with the law. This development marks a significant step in NAB's investigation into alleged financial irregularities within the RDA. More details emerge of scam Investigations have revealed that large sums of money were transferred to various companies, vendors, and individuals through Call Deposit Receipts (CDRs). These transactions were traced with the help of bank records and a report compiled by RDA's probe committee, which has now been provided to the investigative authorities. The companies and vendors involved in these transactions include MS Addad (Rs393.17million), Car Specialist Network (Rs11 million), Pothohar Associates (Rs74.26 million), SNK & Company (Rs324.46 million), Silver Stone (Rs339.4 million), and Smart Cubed (Rs309.77 million). RDA's investigation is currently comparing these transactions with records from the relevant banks. Meanwhile, a probe committee formed by RDA's Director-General Kanza Murtaza under Director State Management Nasir Shehzad Gondal has issued a report. The committee noted significant negligence and carelessness in RDA's Finance Department and found that the bank involved failed to verify the transactions with authorities before processing them. The committee concluded that the preparation of CDRs was an overstep of authority and illegal. As a result, the committee has recommended that the case be forwarded to the ACE and other relevant agencies to recover RDA funds and further investigate the irregularities.
Hans India
5 days ago
- Business
- Hans India
IndiGo co-founder sells 5.8% stake worth `12k cr
New Delhi: Interglobe Aviation, the operator of IndiGo Airlines, saw its stock slipping nearly 3 per cent on Tuesday after its co-founder Rakesh Gangwal offloaded 2.26 crore shares worth nearly Rs11,928 crore in a block deal. The block sale constituted 5.8 per cent of Gangwal's stake in the leading budget airline, according to multiple reports. Gangwal had resigned from the board of InterGlobe Aviation in 2022 and remained one of IndiGo's largest shareholders. The floor price for the transaction has been pegged at Rs5,260 per share, representing a discount of around 3 per cent to the last closing price, according to reports. The stock, however, recovered from early losses and was trading at Rs5,318.00 apiece, down 1.88 per cent around 11 am. In the January–March quarter (Q4 FY25), IndiGo recorded a sharp 61.89 per cent year-on-year (YoY) jump in its consolidated net profit at Rs3,067.5 crore. This was up from Rs1,894.8 crore in Q4 FY24. Excluding foreign exchange impact, the profit rose 44.7 per cent to Rs2,981.1 crore in Q4, compared to Rs2,060 crore in the same quarter last fiscal. Revenue from operations in Q4 increased by 24.3 per cent to Rs22,151.9 crore, up from Rs17,825.3 crore in a year-ago period. The airline's EBITDAR (earnings before interest, taxes, depreciation, amortisation, and rent) also rose significantly by 57.5 per cent to Rs6,948.2 crore during the quarter.
Hans India
26-05-2025
- Business
- Hans India
Monsoon, global and domestic macros to steer markets
Amidst heightened volatility triggered by weak U.S. bond auctions and rising treasury yields sparking a global risk-off sentiment, fresh Trump tariff tantrums and some renewed FII selling; Indian stock market witnessed modest losses during the week ended. Benchmark indices the Nifty and the Sensex ended the week with a decline of 0.7 per cent at 24,853 and 81,721 respectively. Market action will largely hinge on the behaviour of foreign institutional investors (FIIs). Last week FII sales amounted to Rs11,591 crore. The FII long-short ratio fell from 42.37 percent to 32.99 percent, reflecting a cautious turn among big market players. Indian market remained resilient, buoyed by strong buying from domestic institutional investors (DIIs) and retail participants. Crude oil prices continue to be a key market factor, given their influence on inflation trends. The Indian rupee snapped a three- day losing streak to appreciate by 50 paise to close at Rs 85.45 against the US dollar over the weekend. The rebound was driven by a sharp decline in the dollar index, strong domestic equities, and improved global risk appetite, even as foreign fund outflows and elevated crude prices continued to exert pressure. The dollar index, which tracks the greenback against six major currencies, fell 0.60 per cent to 99.36, weighed down by lower US. Treasury yields and renewed demand for riskier assets. In the US markets, the biggest weekly decline for stocks since early April is again testing the risk appetite of everyday investors. Trump's 'rush' towards giving boost to crypto currencies is raising fears of possible forex volatility in coming weeks. Moody's downgrade of the US credit rating from 'Aaa' to 'Aa1,' citing a ballooning federal deficit and a $36 trillion national debt, pressured the US dollar below the 100 mark as it underscored growing concerns over the country's economic outlook and fiscal sustainability. Gold rallied more than 5 per cent, reaching a two-week high of $3,366.5 per ounce, driven by a weaker dollar and persistent safe-haven demand. The rally was further supported by a surge in Chinese gold imports despite high prices and increased geopolitical tensions in the Middle East. The metal spiked sharply on Friday following Trump's latest tariff threats targeting the EU and Apple. In near term, Indian market direction will be dictated by macro-economic data like India GDP data, progress of monsoon, the US federal budget, inflation figures, and weekly jobless claims. Trump's renewed tariff threats will remain center stage, keeping risk appetite subdued. IPO Corner: After a small hibernation, the primary market is going to be busy next week with a total of nine initial public offerings (IPOs) worth more than Rs 6,900 crore, including four from mainboard segment. This is the first time in the current year that four public issues from the mainboard segment are opening in a single week, as last this was seen in December 2024. The improved market sentiment from the second week of April seems to be boosting the primary market mood. It is pertinent to observe that the Nifty surged 14 percent and the Nifty Midcap 100 index gained more than 20 percent so far from April lows. Companies like Schloss Bangalore and Aegis Vopak Terminals are leading the return with sizable public issues, though most firms are opting for modest valuations and trimming their offer-for-sale portions to suit current investor appetite. In the mainboard segment, Brookfield-backed Schloss Bangalore, which operates hotels, palaces and resorts under The Leela brand, will be the first to open its Rs 3,500 crore maiden public issue next week, with price band of Rs 413-435 per share. The Aegis Vopak Terminals that operates storage terminals for liquefied petroleum gas plans to raise Rs2,800 crore, at the upper end of price band of Rs 223-235 per share. Prostarm Info Systems plans to raise Rs168 crore. The UPS & inverter manufacturer has fixed price band at Rs95-105 per share. Scoda Tubes, the stainless-steel tubes and pipes maker aims to raise Rs 220 crore and has set price band at Rs 130-140 per share. Observers believe if the sentiment remains positive the number of IPOs launch in the coming months could increase substantially as more than 60-65 companies including LG Electronics India, NSDL, Brigade Hotel Ventures, Credila Financial, Sri Lotus Developers, Caliber Mining and others are ready with SEBI approval. Over 80 companies, including startups like Zepto, PineLabs, Lenskart, and PhonePe, are in different stages of IPO approval. SEBI is hopeful of resolving pending concerns around the long- delayed NSE IPO. If stability continues, a strong wave of listings is expected between September 2025 and February 2026, 'pulling away' funds from the secondary market. FUTURES & OPTIONS / SECTOR WATCH Tracking the volatility in the underlying cash market, derivative segment also witnessed sharp whipsaw movements in several stock futures. Despite market closing on a positive note over the weekend it closed the week relatively flat. The combined market valuation of six of the top-10 most valued firms eroded by Rs 78,166.08 crore last week. The Nifty slipped 0.67 per cent for the week, while the Bank Nifty was down 0.08 per cent. The coming week will be a monthly F&O expiry week. In the options market, prominent Call open interest for Nifty was seen at the 25,000 strike, while the notable Put open interest was at the 24,500 strike. For Bank Nifty, the prominent Call open interest was seen at the 55,500 and 56000 strikes, whereas notable Put open interest was at the 55,000 strike. Implied volatility (IV) for Nifty's call options settled at 15.03 per cent, while put options conclude at 15.95 per cent. The India VIX, a key market volatility indicator, closed the week at 17.26 per cent. The Put-Call Ratio Open Interest (PCR OI) for the week was 0.79. Only if Nifty clears 25,150 market can see a quick rally toward 25,500. But if the index slips below 24,500, expect a sharp sell off. If 24,500 holds, adopt buy on dips strategy. Keep leveraged exposures at modest levels, a cautious outlook is advised for the present. Savvy funds are accumulating PSU Banks (many are available cum dividend at attractive yields). Buy PNB, Canara Bank and UCO Bank. Coming week may yet test traders' patience, as no clear direction is emerging on the stage, leaving market players searching for stronger signals amid all the noise. Stocks looking good are Axis Bank, Ashok Leyland, BHEL, Jio Financial, NHPC, PNB and Union Bank. Stocks looking weak are Biocon, Colgate, Cummins, HUDCO, Jubilant Food, Patanjali and Shree Cements. (The author is a senior maket analyst and former vice- chairman, Andhra Pradesh State Planning Board)
India Today
25-05-2025
- Entertainment
- India Today
Paresh Rawal reacts to Akshay's lawsuit: My lawyer has sent an appropriate response
Veteran actor Paresh Rawal has publicly addressed the legal controversy surrounding his abrupt exit from 'Hera Pheri 3'. He revealed that his legal team has issued a formal response to Akshay Kumar's lawsuit. The move comes amid growing tensions between the long-time collaborators, throwing the future of the much-awaited sequel into posted an update on X saying, 'My lawyer, Ameet Naik, has sent an appropriate response regarding my rightful termination and exit. Once they read my response, all issues will be laid to rest.' Paresh Rawal's response to Akshay Kumar's lawsuit advertisementThe legal fight started after reports claimed that Akshay Kumar's production company, Cape of Good Films, decided to take legal action against Paresh Rawal for suddenly quitting 'Hera Pheri 3' at the last moment. As per a report by Bollywood Hungama, Paresh Rawal has already returned the Rs11 lakh signing amount along with 15 per cent interest, and also paid some extra money as compensation for leaving the same report mentions that Rawal's total fee for 'Hera Pheri 3' had been locked at Rs15 crore, in line with the film's production budget and contractual terms. Paresh Rawal's sudden exit has worried both fans and people in the film industry, especially because he played the beloved character Baburao Ganpatrao Apte in the first two 'Hera Pheri' films, which came out in 2000 and 2006 and are now considered comedy lawyer from Akshay Kumar's team has said that Paresh's decision could lead to 'serious legal trouble,' hinting at a long legal fight ahead.'Hera Pheri 3' is being directed by Priyadarshan, who also directed the first film. The movie was supposed to bring back the original trio, which had made the series such a big hit with Reel
