Analysis and Features

SpiceJet first quarter FY2018-19 results analysis

SpiceJet, reported its first quarter results of the fiscal year 2018-2019 (Q1FY19) last week. Much like its rival Indigo, it was a result that reflected the ongoing weakness in the market and was below expectations. Key numbers SpiceJet Q1FY19 results snapshot (in INR) comparisons to Q1FY18 Revenues ₹2,236 crores (up 20%) Costs ₹2,245 crores (up 31%) EBITDAR ₹398 crores (down …

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How the Indian airline industry is attacking AirAsia India

First flight of AirAsia India. Plane at the gate.

Over the last year, the media has covered the various challenges AirAsia India is facing. Ranging from executive level departures late in 2017 onwards, to filing a First Information Report (FIR i.e. a criminal complaint) against former officers of the airline, to CBI (Central Bureau of Investigations) investigations of its director. In this analysis, we explore how the hyper-competitive Indian …

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Why Vistara is likely to choose the 787-10 over the 787-9

Boeing 787-10. Boeing image.

Bloomberg is reporting that the Tata Singapore Airlines joint venture Vistara has selected the Boeing 787 Dreamliner over the Airbus A330neo as its wide-body aircraft for long distance international operations. Why did Vistara choose the 787 Just some of the reasons for Vistara choosing the 787 over the A330neo are: The 787 is a newer generation aircraft compared to the …

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Analysis of Jet Airways’ fourth quarter and full year FY2017-18 results

Jet Airways Boeing 737 MAX 8.

Confirming the challenging nature of the market, Jet Airways posted a loss of ₹1,036 crores for the fourth quarter of the fiscal year ending March 31, 2018. This pulled the full year loss to ₹767 crores. This was their first loss after eleven consecutive profitable quarters and the first full year loss after 2 years of profit. The results reflect …

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The CEO churn in Indian aviation and why it continues

The nightly aircraft line-up tail parade at the apron of Kempegowda International Airport Bangalore

Even during a lull, the Indian civil aviation market never ceases to keep one on their toes. The recent weeks have seen three Chief Executives of Indian carriers in the news. First, Aditya Ghosh of IndiGo put in his papers after steering the ship for over ten years, apparently under pressure from the promoters. Amar Abrol of AirAsia India is …

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Analysis: Indigo’s fourth quarter FY18 results

Indigo Airbus A320neo VT-ITK. Image copyright Vedant Agarwal.

Indigo’s fourth quarter results were far below expectations, reflecting the intensely competitive market and irrational market and also Indigo’s challenges as it continues its growth path. The results were announced along with the full year results, however we present an analysis only of the fourth quarter as it is reflective of certain trends in the market (a full year analysis …

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Why are suitors backing out of Air India bidding?

The Air India ramp at Mumbai CSMI Airport. Photo by and copyright Devesh Agarwal.

Two weeks ago, the Government of India released its preliminary information memorandum (PIM) inviting expressions of interest on their strategic divestment of national carrier Air India. The last week has seen, three of the most likely suitors indicating their lack of interest in bidding for the beleaguered airline. Download a copy of the PIM at the end of the article …

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DGCA directive grounds several IndiGo and Go Air A320neos

First Airbus A320neo with Pratt & Whitney PurePower PW1127G-JM Geared Turbo-Fan (GTF) engine. Photo courtesy Airbus.

The Indian civil aviation regulator, Directorate General of Civil Aviation (DGCA), has issued a directive which effectively grounds several Airbus A320neo aircraft of IndiGo and Go Airlines. The directive is the latest development resulting from last month’s emergency airworthiness directive (EAD) issued by the European Aviation Safety Agency (EASA) which affects the Airbus A320neo and A321neo powered by the Pratt …

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Analysis: Why is Indigo choosing the A330neo?

Airbus A330-900neo MSN 1813 on its first flight. Airbus image.

News reports indicate India’s largest domestic airline, Indigo, is in talks with European airframer Airbus, to procure upto 50 A330neo (new engine option) long-haul wide-body aircraft. These aircraft is for Indigo’s much awaited foray into international flying where they are hoping to introduce the low-cost long-haul model. This represents another step in the airline’s strategy towards expanding the airline and …

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Impact of the new Pratt & Whitney GTF engine issues on IndiGo and Go Air

First Airbus A320neo with Pratt & Whitney PurePower PW1127G-JM Geared Turbo-Fan (GTF) engine. Photo courtesy Airbus.

The recent emergency airworthiness directive (EAD) covering the Pratt & Whitney PW1100G-JM geared turbo-fan (GTF) engine caught the industry by surprise. Aircraft maker Airbus followed the European Aviation Safety Agency (EASA) issued EAD, announcing a suspension of deliveries of A320neo and A321neo powered by the GTF engine. The airframer has also suspended taking delivery of new engines, and engine fitment …

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Analysis: What drove the Emirates to buy more Airbus A380?

Emirates Airbus A380 A6-EOV approaches Singapore Changi Airport. Copyrighted picture. Do not re-use.

In the weeks leading upto the Emirates A380 order there was much speculation on the future of the A380 program and if this glorious aircraft would continue to be produced. As the largest operator of the fleet type Emirates was central to the debate. Things came to a pass when at the Dubai Airshow Emirates ordered 40 Boeing 787-10 Dreamliners …

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Analysis: Indigo third quarter FY2018 results. A leader in every way.

IndiGo ATR72-600 VT-IYA. Photo by Vedant Agarwal. Copyright. Do not re-use.

India’s largest domestic carrier, IndiGo, reported its third quarter results of the fiscal year 2017-2018 (Q3FY18) last week. The third quarter is the strongest of the fiscal year, and it was a yet another strong result coming on the back of a previously strong quarter. IndiGo Q3FY18 results snapshot with percentage comparisons to Q3FY17 • Revenues ₹6,449 crores (₹64.49 billion) …

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Opportunity and Parity- Pilot’s licenses in India

Indigo Airbus A320neo VT-ITC. Cockpit. Copyrighted image. Re-use prohibited.

by Poonam Verma and Apoorva Saxena Foreign pilots have enjoyed the privilege to fly steel birds in India for a long time. This, to a great extent, hampered opportunities available to Indian trained pilots. This treatment of foreign pilots in India is not being reciprocated to Indian pilots by foreign jurisdictions. This article throws some light on the opportunities and …

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To attract buyers Government allows 49% foreign investment in Air India

The Air India ramp at Mumbai CSMI Airport. Photo by and copyright Devesh Agarwal.

In a bid to attract more bids, the Union Cabinet of the Government of India, has allowed up to 49% Foreign Direct Investment in the national carrier Air India which is up for disinvestment. In a release the Government said “It has now been decided to do away with this restriction and allow foreign airlines to invest up to 49% …

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IndiGo, AirAsia India, Spicejet top on-time for 2018. Chennai airport tops.

The ramp at Rajiv Gandhi airport, Hyderabad. Photo by Devesh Agarwal. Used with permission. Do not re-use.

Three of India’s low-cost carriers, IndiGo, AirAsia India, and Spicejet feature in the OAG’s Punctuality League 2018 as India’s most punctual airlines. Chennai, Hyderabad, and New Delhi airports also feature in the annual report of airlines and airports with the best on-time performance (OTP) in the world. The best of the best As per the Punctuality League 2018, the most …

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OAG report exposes gaps in DGCA on-time performance (OTP) reports

Bengaluru Kempegowda airport ramp. Photo copyright Devesh Agarwal. Used with permission.

Data from the world’s leading provider of digital flight information OAG Aviation Worldwide Ltd, appears to contradict the On-Time Performance (OTP) as reported by the country’s regulator the Directorate General of Civil Aviation (DGCA). OAG which used to be the Official Airline Guide and handles more than 35 million dynamic flight status updates per day shows national leader IndiGo ranked …

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Only one runway in 50 years. India’s lagging airport expansion.

Runway 09 at Kempegowda airport, Bangalore. Image copyright Devesh Agarwal. All rights reserved. Used with permission.

In 2006-07, Mumbai and New Delhi airports were awarded to M/s GMR and GVK and entered an era of private airport management. In the mean time, private public partnership greenfield airports were in progress at Kochi, Hyderabad, and Bangalore. Passengers across the nation waited with anticipation to finally be free of the poor service standards of the Airports Authority of …

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Analysis: Qatar buys 9.61% of Cathay Pacific for $662 million for China foothold

After being rebuffed in its attempt to buy a stake in US carrier and fellow oneworld member, American Airlines Group, national carrier Qatar Airways Q.C.S.C. has bought a 9.61% stake in another fellow oneworld carrier Cathay Pacific Airways Limited. Qatar Airways bought 378,188,000 shares of Cathay Pacific from Kingboard Chemical Holdings and its allied companies for HK$5.2 billion (approximately US$662 …

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Analysis: Indigo second quarter FY2018 results: soaring high

Indigo Airbus A320neo VT-ITC. Copyrighted image. Re-use prohibited.

India’s largest domestic carrier, IndiGo, reported its second quarter results of the fiscal year 2017-2018 (Q2FY18) yesterday. It was a result that surpassed expectations. IndiGo Q2FY18 results snapshot (in ₹) comparisons to Q2FY17 Revenues ₹5,506 crores (up 13%) Costs ₹4,741 crores (up 14.2%) EBITDAR ₹1,581 crores (up 61.8%) Profit before tax (PBT) ₹7,645 (up 333%) Profit after tax (PAT) ₹551 crores …

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Indian ATC ignores repeated mayday, endangers Air Canada flight

Air Canada Boeing 787-9. Airline Image.

In a shocking development, just come to light, it appears that Indian Air Traffic Control (ATC) ignored the repeated MAYDAY calls by an Air Canada flight and endangered the lives of 191 passenger and crew on the night of September 19th. Readers of Bangalore Aviation know how I despise the histrionic headlines found in mainstream media, but this case merits …

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