Latest news with #InterGlobeAviation
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
Ambit sees 20% upside in IndiGo stock as aviation sector gains altitude
InterGlobe aviation share price today: India's aviation sector has not been on the best ground lately, owing to sectoral headwinds and liquidity challenges resulting from the capital-intensive nature of the sector. However, with the government's rising focus on airport infrastructure, favourable demand-supply dynamics and a robust order book, the old playbook of India's aviation industry might change. Ambit has initiated coverage on InterGlobe Aviation (IndiGo) with a double-digit upside estimated and a 'Buy' rating. Strong upside for InterGlobe Aviation Ambit has initiated coverage on InterGlobe Aviation with a 'Buy' rating, with the target price of ₹7,000 from the current market price (CMP) of ₹5,840. This implies a robust double-digit upside of 20 per cent. So far this calendar year, the shares of the aviation firm have experienced a strong rise of over 30 per cent. "Increasing codeshare agreements and a strong network put IndiGo in sweet spot to capture growing share of inbound/outbound traffic. IndiGo is strategically expanding into underserved Asian markets by launching routes to less-frequented destinations like Almaty, Baku, Tashkent, Tbilisi, Jakarta and Nairobi, aiming to capture growing demand in areas with minimal competition," the brokerage noted. The airline is planning to invest heavily in aerospace parts by utilising cash effectively. On top of this, InterGlobe (IndiGo) is also making a switch from low-cost carrier (LCC) to a hybrid model by launching a premium offering on select routes. Both of these factors have prompted the brokerage firm to take a bullish outlook on IndiGo and its ability to maintain the market share. Aviation sector outlook For India's aviation sector, as a whole, data figures paint an optimistic image. Between financial year 2013-14 (FY14) and FY24, domestic passenger traffic in India grew at a compound annual growth rate (CAGR) of 9.7 per cent, outpacing international passenger traffic, which saw a 4.5 per cent CAGR. In FY24, the passenger load factor hit a decadal high of 88 per cent, surpassing pre-covid levels. That apart, domestic carriers currently hold a record-high aircraft order book of over 2,000 planes, accounting for 14 per cent of the global order books of Airbus and Boeing. With the number of airports projected to rise to 300–350 by 2047, India's aviation sector is poised for an unprecedented phase of expansion, according to the brokerage firm Track Stock Market LIVE Updates GIFT City to fuel growth Despite strong growth prospects, India's aviation industry continues to favour the LCC model. This is mainly due to the country's price-sensitive market. While two full-service carriers (FSCs), Kingfisher and Jet Airways, once had a presence, it's been over a decade since they exited the market owing to intensified competition from LCCs. Meanwhile, the largest remaining FSC, Air India, has since been privatised and Vistara has now merged with it. Keeping in view the high capital-intensive structure of the aviation industry, leasing becomes a key strategy for airlines. At the global front, Ireland and China are already among the leading players when it comes to aircraft leasing. As for India, the nation is building its very own leasing hub within the GIFT City International Financial Services Centre (IFSC). A domestic leasing ecosystem gives airlines better control over lease terms, reduces forex risk and supports growth in both aviation and MRO sectors. Also, not ignoring the job prospects. That said, the momentum is already quite visible in figures. As of January 2025, 33 lessors had registered at GIFT IFSC, enabling the lease of over 60 aircraft, including jets, helicopters and engines. Watching the China playbook India and China, having the tag of largest population size, are among the top domestic aviation markets in the world (just behind the US). While China's aviation industry is much larger and mature as compared to that of India, Ambit believes that India's low per capita trip rate leaves room for higher growth prospects in the sector. "By accelerating infrastructure, expanding fleets, reducing costs, boosting international routes, developing talent and adopting technology, India can close the gap, potentially matching China's passenger volume by the next decade. Sustained execution and economic growth are critical to rival China's scale," the brokerage firm said.
Time of India
6 days ago
- Business
- Time of India
Supreme Court relief for IndiGo & SpiceJet: No retrospective IGST on reimported aircraft parts
In a relief to airlines InterGlobe Aviation and SpiceJet Ltd, the Supreme Court on Monday dismissed the customs department's appeal seeking to levy integrated goods and services tax (IGST) retrospective on reimport of aircraft or aircraft parts into India after their repairs outside the country. The department claimed that an amended notification issued in 2021 would have retrospective effect from the original exemption notification of 2017, a stand rejected by a bench comprising Justices B.V. Nagarathna and K.V. Viswanathan. "You can't do it by a retrospective amendment…If the 2017 notification did not cover IGST, you cannot use the 2021 notification to impose it retrospectively,' the bench said. In the 2017 notification, due to exemptions, the airlines were required to only pay 'duty of customs' on the fair cost of repairs and the cost of insurance and freight charges, both ways and not the integrated tax. However, in the 2021 notification, the government said that the airlines were required to pay integrated tax, in addition to the basic customs duty, on the fair cost of repairs and the cost of insurance and freight charges. The department told the SC that InterGlobe, the parent of India's largest airline IndiGo , and SpiceJet had to pay the integrated tax also for 2017 to 2021, which otherwise was not leviable under the un-amended 2021 notification. In August, Customs, Excise and Service Tax Appellate Tribunal ruled that the 2021 notification was not retrospective in nature. Live Events It may be noted that the Delhi High Court in March had declared as unconstitutional the levy of IGST on reimported aircraft engines and aircraft parts that were repaired and serviced abroad. While setting aside a part of the 2021 customs department's exemption notification that imposed IGST and cess on the repair cost of such reimported goods, the HC said the July 2021 notification that 'purports to levy an additional levy over and above the IGST imposed under Section 5(1) (of IGST) by adding the words '...tax and cess' is declared unconstitutional, ultra vires the IGST and is quashed to the aforesaid extent.' It said that an integrated tax on the import of services can only be imposed under Section 5(1) of the IGST and that a supply of service once so classified cannot be recharacterised. On the Central Board of Indirect Taxes and Customs' clarification issued through the July 2021 circular, the HC said the addition of the words "tax" and "cess" over and above customs duty which was originally conceived and provisioned in 2017 notification was "clearly ultra vires" and liable to be declared as an intent to levy an "impost" which is without authority of law. Terming the tax authorities' contention about the existence of two separate and distinguishable taxable events as clearly "untenable," the HC said the transaction remained that of supply of services in the shape of repair or refurbishment. It clearly did not constitute a supply of goods, the court said. The HC ruling had come in response to several petitions filed by InterGlobe Aviation challenging the notification and IGST levy on re-imported aircraft and parts after repairs.
Mint
7 days ago
- Business
- Mint
Meet Rakesh Gangwal, IndiGo co-founder and Southwest Airlines Chair, on Forbes' ‘America's Richest Immigrants 2025' list
Business publication Forbes last week released its lists of richest Americans for this year, 2025, and also included a nod to the many immigrants in the US. In fact, top three of the top 10 richest people in America are immigrants — Elon Musk (from South Africa, ranked first with an estimated $393.1 billion), Sergey Brin (Russia, second with 139.7 billion), and Jensen Huang (Taiwan, third with $137.9 billion). All data is latest as of July 7, 2025. Notably, Rakesh Gangwal, co-founder of IndiGo Airlines parent InterGlobe Aviation and Chairman of the Southwest Airlines board of directors, has made it to the Forbes list at the 29th spot with a net worth of $6.6 billion. According to the Bloomberg Billionaire Index (BBI), Rakesh Gangwal is worth an estimated $7.83 billion, largely from his 14 per cent stake in India's biggest airline by market share, IndiGo. His stake in InterGlobe Aviation, a Gurgaon-based airline services provider and the operator of IndiGo, is held directly and through a trust, as per a BB report. Born in 1953 in Kolkata, Rakesh Gangwal earned a bachelor's degree in engineering from the India Institute of Technology Kanpur (IIT – Kanpur) in 1975; followed by an MBA from the Wharton School of the University of Pennsylvania. He began his career as a financial analyst at Ford Motor Co. and as a production and planning engineer with Philips India. In was associated with United Airlines in 1980 and joined the airline in 1984 as a manager for strategic planning, according to Bloomberg. He became an executive vice president for Air France in 1994, and then later became CEO of US Airways in 1998, from where he resigned in 2001 before founding IndiGo in 2006, which listed in 2015, the BB report added. He was appointed the Chairman of Southwest Airlines board of directors in November 2024. Nearly two-thirds of the 125 billionaire immigrants identified by Forbes were born in these 10 countries and territories. India topped the 2025 list with 12 immigrant billionaires, compared to 7 in 2022. It was followed by Israel and Taiwan, each having 11 billionaires on the 2025 list, compared to 10 and four from 2022. Canada comes in next with nine billionaires in 2025, compared to eight in 2022; followed by China with eight billionaires this year, up from seven in 2022. Germany and Iran are the next tie, each with six billionaire immigrants in the US in 2025, up from six and two, respectively since 2022. The next three spots were: France with five (2025 and 2022), followed by tied Hungary with four (2025 and 2022) and Ukraine with four (three in 2022). The Forbes 'America's Richest Immigrants 2025' list features a record 125 foreign-born US citizens who are billionaires, a significant jump from the 92 tallied in 2022, data showed. Hailing from 41 countries, these immigrants gained their wealth in the US and currently live in the country, it added. They hail from 41 countries but became rich in America and account for 14 per cent of the country's billionaires, it added. The people on the list hold a record $1.3 trillion combined, which is 18 per cent of America's $7.2 trillion in total billionaire wealth. Further, a whopping 93 per cent of these billionaires are self-made — nearly 70 per cent from either the tech or finance sectors. Elon Musk — worth $393.1 billion — Tesla, SpaceX — South Africa Sergey Brin — worth $139.7 billion — Google — Russia Jensen Huang — worth $137.9 billion — Nvidia — Taiwan Thomas Peterffy — worth $67.9 billion — Interactive Brokers — Hungary Miriam Adelson & family — worth $33.4 billion — Las Vegas Sands — Israel
Hans India
08-07-2025
- Hans India
Bomb Threat on IndiGo Flight from Hyderabad Sparks Security Alert at Mohali Airport
A security issue happened at Shaheed Bhagat Singh Airport. A bomb threat was found on an IndiGo flight from Hyderabad. The flight number was 6E-108. It landed safely in Mohali at 11:58 am on July 5. There were 227 people on board. After landing, cleaners found a note in the plane's bathroom. The note said there was a bomb on board. IndiGo staff informed airport security immediately. Police acted quickly. A case was filed under the Unlawful Activities Act against unknown people. Manmohan Singh, security manager for InterGlobe Aviation, said no details can be shared yet. The case is serious.
Time of India
04-07-2025
- Business
- Time of India
Ex-bureaucrat Kant joins IndiGo board
NEW DELHI: IndiGo has appointed former G20 Sherpa Amitabh Kant on its board. The airline's board of directors met Thursday to approve Kant's appointment. His appointment will be "effective from the date of receipt of security clearance from the ministry of civil aviation," IndiGo said in a regulatory filing. Kant said, "I am delighted to join the board of InterGlobe Aviation (IndiGo). In under two decades, IndiGo has transformed air travel in India, emerging as a global benchmark for operational excellence and customer experience. With its scale, efficiency and international ambition, IndiGo will open up new markets and transform our airports into global hubs of connectivity - driving tourism, trade and investment, while linking markets, and opportunities across borders. I look forward to contributing to IndiGo's and India's, next chapter of trade, tourism, and economic growth." Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
