With the 2014 World Cup looming, less than two and half years away, and the government having faced mounting criticism from many quarters as to its tardiness in resolving infrastructure issues, the National Civil Aviation Agency (ANAC) moved swiftly this week to conclude the concession auction for three major airports, two in Sao Paulo and one in Brasilia. Together they handle 30% of Brazil’s passenger traffic and 57% of cargo. While some of the participants are not exactly household names outside Brazil it is interesting to note that one of them is ACSA, which helped host the previous tournament.
Indian aviation is facing its most uncertain phase in more than a decade. After reporting an estimated record loss of just over USD2 billion[1] in the 12 months ended 31-Mar-2012, India’s airlines are facing an equally challenging year ahead. Weak balance sheets, increasing costs, regulatory uncertainty, a sluggish Indian economy and a difficult global environment will continue to pile the pressure on airlines, especially the poorer performing carriers. However, this may in turn create market opportunities to exploit for those that are better positioned. Some of the key highlights of the CAPA India Outlook 2012/13, to be released on 31-May-2012, include:
- Indian domestic capacity growth of 7-8% in FY2012/13, traffic to grow 8-10%
- India’s airlines expected to post a combined loss of USD1.3-1.4 billion
- Jet Airways to prosper; major aircraft order expected
- Kingfisher Airlines revival dependent on foreign airline investment