Moody's keeps stable outlook for global airline industry
The Dollar Business Bureau Moody’s on Tuesday kept its stable outlook on the world’s airline industry, as the credit ratings agency expects the decline but still-robust operating margins likely to continue. However, it warned that increasing fuel prices poses headwinds. The rating agency projects the average operating margins of rated carriers to reach 9% in 2017 and around 8% next year, from an estimated 10.8% in 2016. “This falling trend shows declines in airlines’ operating profit of around 11% in 2017 and around 12% in 2018, broadening from an estimated 1.2% contraction last year,” the international rating agency said in a note released from its headquarters in New York. Though the outlook is likely to remain stable, fuel prices and capacity utilisation and addition will ...
FDI reforms to boost employment, ease of doing biz
Deepak Kumar As the government envisions to attract more foreign investments, generate employment and facilitate further the ease of doing business in the country with its latest FDI liberalisation announcements, several national and international analysts said this expanded scope of FDI reforms would stimulate foreign investments in India, thereby giving a fillip to Prime Minister Narendra Modi-led Make in India scheme. The government on Monday announced major changes in India’s foreign direct investment rules, allowing 100% foreign investments in defence and airline business, and relaxing norms for single-brand retails and keeping most sectors on automatic approval route. Praising the government’s new initiative, KPMG Partner & Head (Tax) Girish Vanvari said, “Coming at the back of the draft GST bill last week, the ...
Airports to invest $8 bn on IT to enhance facilities
Source: PTI Globally airports are expected to invest over $8 billion in information technology space this year as more and more aerodromes upgrade the facilities to enhance passengers' experience, according to a survey. The annual Airport IT Trends Survey, co-sponsored by Airports Council International (ACI) and SITA in association with Airline Business, also indicated that operators were looking to develop 'smart airports' over the next three years with IT playing a major role in shaping them up. “The rate of investment in IT at airports around the world is rising. SITA estimates it will hit $8.7 billion in 2015. This forecast is a climb from 5.82% of revenues in 2014 to 6.25% this year,” the survey said. Airport Chief Information Officers ...
