Aviation

DreamFolks Services Ltd, a leading Indian airport services aggregator, has announced the cessation of its domestic airport lounge services, citing a "material" impact on its operations. This decision follows the termination of key contracts with major lounge operators and banking partners. Despite this change, the company will continue its global lounge services and other domestic offerings. The move has significantly affected investor confidence, with the company's stock price experiencing a sharp decline.

Strategic Shift in Operations

Indian airports are increasing the number of immigration counters to accommodate the anticipated surge in passenger traffic during the upcoming festival season. With domestic and international travel expected to rise, authorities aim to reduce wait times, streamline passenger processing, and enhance overall airport efficiency. The expansion is part of a broader initiative to improve airport infrastructure and passenger experience, addressing seasonal congestion challenges.

Delhi’s Indira Gandhi International Airport (IGIA) is set to reopen Terminal 2 (T2) on October 26, a move aimed at easing congestion and streamlining passenger flow as air travel demand continues to rebound. The terminal, which has been closed for operational adjustments, will resume service ahead of the busy festive and holiday travel season. Authorities expect the reopening to significantly decongest Terminals 1 and 3, redistributing passenger traffic across facilities.

SpiceJet is set to bring 10 of its grounded aircraft back into operation by April 2026, marking a strategic step in its efforts to regain operational stability and improve fleet utilization. The decision comes as the airline works to strengthen its financial position, enhance passenger capacity, and meet rising demand in India’s fast-growing aviation market.

Star Air has resumed commercial flights to Nanded after receiving regulatory approval from the Directorate General of Civil Aviation (DGCA), marking a significant boost for regional connectivity in Maharashtra. The airline’s return aims to strengthen travel accessibility for business and leisure travelers, enhancing economic activity in the region. With India’s regional aviation sector witnessing steady growth, Star Air’s renewed operations underscore the increasing role of small carriers in linking tier-2 and tier-3 cities to major urban centers.

Air India has entered into a strategic codeshare partnership with Air Astana, the flag carrier of Kazakhstan, aimed at boosting connectivity between India, Central Asia, and beyond. The agreement will allow passengers to seamlessly book travel across both airlines’ networks with a single ticket, offering greater convenience and access to new destinations. The collaboration is expected to enhance trade, tourism, and cultural exchange between the two regions while strengthening India’s position as a key aviation hub.

Air India has temporarily canceled its flights to Kathmandu following widespread protests in Nepal, affecting passenger travel and regional connectivity. The suspension, implemented as a precautionary measure, underscores the airline’s focus on passenger safety amid civil unrest. Authorities are monitoring the situation closely, with operations expected to resume once stability is restored. This disruption highlights the sensitivity of international airline schedules to geopolitical and social disturbances.

The Airports Economic Regulatory Authority (AERA) has unveiled a new framework to standardize and enhance airport performance across India. The initiative aims to improve operational efficiency, passenger experience, and financial transparency at both domestic and international airports. Under the framework, metrics for service quality, punctuality, safety, and pricing will be closely monitored, ensuring compliance with global best practices.

The government’s recent hike in the Goods and Services Tax (GST) is set to impact the aviation sector, with premium and business-class flight tickets becoming noticeably more expensive. The increase in GST rates on airfares reflects broader fiscal adjustments and is expected to raise travel costs for both domestic and international travelers. Airlines may pass on the higher tax burden to passengers, potentially affecting demand in the premium segment.

SpiceJet, one of India’s prominent low-cost carriers, has announced a strategic interline partnership with Gulf Air, the national airline of Bahrain. The collaboration is designed to streamline passenger travel, offering seamless connectivity across destinations in India, the Middle East, Europe, and Africa. The agreement will allow travelers to book multi-leg journeys on a single ticket, simplifying transfers and expanding route options.