Airlines Deals

Domestic airlines burn Rs 350 crore of fuel annually on ‘holding’—an industry term for idling in the air, or on the ground. Aircraft have to hover in the air for 30-45 minutes on an average at different airports, particularly Delhi and Mumbai, due to excessive traffic, fewer runways, poor airport infrastructure and outdated air traffic control (ATC) equipment.
It is estimated that airlines waste fuel worth Rs 96 lakh every day due to this, which amounts to an additional burden of 10% on their aviation turbine fuel (ATF) bills. ATF, which is currently priced at around Rs 46,565 per kilolitre, accounts for 30% of the total operating expenses. “We spend an extra 5-10% of ATF due to air traffic congestion,” Jet Airways chief executive officer Wolfgang Prock-Schauer told FE.

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Generally, the ATC allots sequence numbers to aircraft for landing. In the Mumbai-Delhi sector, this number can go as high as 30. With each aircraft taking about two minutes to land after being sequenced, the waiting time can, at times, last up to more than an hour.

“An airline burns jet fuel worth Rs 3,000 a minute in air when it is not granted permission to land,” according to Pioneer Intermediaries strategist Sandeep Shenoy. Air Deccan chief operating officer Warwick Brady concurs, “We have to spend 10% more on ATF due to constraints like air traffic congestion.”

What a Waste!
• Flights wait up to 45 minutes for take-off/landing clearance
• It costs Rs 3,000 per minute for hovering in the air
• ATF accounts for 30% of total operating expenses

Aviation experts believe that traffic congestion can be resolved only if ATC rules are modified. For instance, in India, aircraft are allowed to take off every 2.5 minutes after the next one does.

However, at international airports like Frankfurt and Heathrow, flights take off every 30 seconds. In India, it’s mandatory to maintain a distance of 7 miles between two aircraft, but in most other countries, they need to maintain a gap of only three miles.

Air Deccan’s aircraft fuel expenses are Rs 216 crore for the eight months ended November 30, 2005.

If other expenses like aircraft lease and salary to pilots and cabin crew are also taken into account, then the cost comes to Rs 3 lakh per hour.