Analysis and Features

Air India faces a jumbo fleet problem

A tail parade of each of Air India's Boeing aircraft as in 2011. The 747-400, 777-300ER, 777-200LR and 737-800.

National carrier Air India finds itself in a jumbo-sized problem. It has a huge excess of wide-body ‘jumbo’ and ‘mini-jumbo’ aircraft used for international flights, while facing a severe shortage of narrow body aircraft leaving it unable to capitalise on the increased winter demand and the additional demand shying away from SpiceJet due to the latter’s financial troubles. The current …

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Graphical analysis of India’s domestic air traffic in 2014

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

Keeping in line with the weak economic growth in India, domestic air passenger traffic grew a tepid 9.7% during 2014. In 2013 61.426 million passengers travelled, which grew to 67.383 million. Monthly data and info-graphics December is the peak month for travel in India, both international and domestic. As the stacked monthly graph shows, in December 6.44 million (64.4 lakhs) …

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What caused the AirAsia QZ8501 crash? Facts and myths

AirAsia Indonesia Airbus A320 PK-AXF.

As the remains of the persons on board the ill fated Indonesia AirAsia flight QZ8501 tragedy are slowly recovered, it is sometimes distressing to hear the answers to the questions from the general populace on why did this tragedy occur. So we put together a small list of answers to frequently asked questions. We have tried to make it as …

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Spicejet turnaround requires a good risk appetite

Spicejet Boeing 737-800WL VT-SGK at New Delhi airport.

SpiceJet has seen challenging times over the past 5 years. While numerous reasons can be cited for this ranging from network structure, fleet decisions, competition, ability to command a premium, management churn, market weakness and overall brand strength, the financial position of the airline as of today is quite challenging. Much is being reported about the possible funds infusion and/or …

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Opinion: How Indian airlines are positioning themselves

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

The Indian skies are fairly busy. With seven airlines operating, one about to launch services, one in a bit of a challenge and six airline licenses granted by the Ministry of Civil aviation, increased competition is inevitable. Yet, if one looks at profitability, there is only one airline that has been consistently profitable. Which begs the question, are all the …

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Infographics: Geographical break-up of Air India passengers, revenue 2013-14

A tail parade of each of Air India's Boeing aircraft as in 2011. The 747-400, 777-300ER, 777-200LR and 737-800.

Based on the recent statement of the Indian Minister of State for civil aviation to the Indian parliament we have produced these two graphics showing the country-wise break-up of Air India’s passengers and revenue for the fiscal year ended March 31, 2014. Air India transported 15,831,554 passengers earning revenues of Rs 15,551.78 thus earning an average revenue of Rs 9,823.28 …

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Indian tourist visa on arrival: details, application, and the fine print

Air India Airbus A321 VT-PPO. Seen here handing in the early morning light at Bangalore Airport.

India recently implemented a liberalised tourist visa on arrival (TVOA) scheme to include nationals of 43 countries. While still short of the goal to include nationals of 180 countries, it is a step in the right direction. The TVOA is now issued as an electronic travel authorisation (ETA) that needs at least four days to process. For example, if you …

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Analysis: What benefits would capital infusion bring SpiceJet?

SpiceJet Boeing 737-800 VT-SPJ. Photo copyright Devesh Agarwal.

While SpiceJet’s chief operating officer Sanjiv Kapoor claims that recapitalisation is the final step of the turn-around process at the airline, there is little doubt SpiceJet desperately needs funds to continue its turn around. Aviation consultancy firm CAPA estimates around Rs 1,500 crore at the minimum. Why is this need for recapitalisation at this stage, and what benefits will it …

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Opinion: Expect SpiceJet to get funds infusion with 30 days

SpiceJet is very close to finding a solution to its distressed cash position. I estimate the airline should get funding within the next 30 days, and would not be surprised if something is announced within the coming fortnight. The clues to this conclusion come from the actions of the airline, its second quarter results and the public statements of the …

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Analysis: Operational profit eludes Jet Airways in Q2 FY2015, outlook positive

Jet Airways' Boeing 737-800 VT-JBD

Jet Airways, India’s largest private airline recently announced results for the second quarter (Q2) and the half-year (1H) for fiscal 2014~2015. The results were the first after a joint announcement with 24% stake holder Etihad Airways PJSC about the airline ceasing operations of its low cost JetKonnect brand exiting the segment. The Jet Group operates two airline operator licenses. 9W …

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Opinion: Indigo passenger pilot spat: on-time needs an empathetic human touch

IndiGo_A320 classic VT-INT. Photo: Devesh Agarwal.

India’s largest domestic airline prides itself on being punctual. It’s tagline “on-time is a beautiful thing” describes the core pillar that the air traveller wants today, predictability. Punctuality has become part of the airline’s DNA. The airline has adopted processes and equipment to meet its punctuality goals. For example IndiGo slavishly closes its counters exactly 45 minutes before a flight’s …

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Opinion: India needs long-term systemic changes to boost aviation sector

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

For the better part of this year, India has suffered the ignominy of being one of only 11 countries relegated to Category 2 status by the United States Federal Aviation Administration (FAA) as its safety oversight regime did not meet international standards. The relegation dealt a serious dent in the operations of India’s airlines by a freeze on their US …

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Opinion: Proposed civil aviation policy is a good wish list but needs specifics

Air India Airbus A321 VT-PPO. Seen here handing in the early morning light at Bangalore Airport.

In a welcome move, the Indian government published a draft civil aviation policy via the ministry of civil aviation yesterday, November 10th. However, industry stakeholders the were left wanting. The document lacks the comprehensive, detailed, well laid-out, and deliberate plans that addresses the urgent, nay critical needs of the industry and by extension the nation and its economy. Read the …

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Opinion: Phased abolishment of 5/20 rule will be fair to all Indian airlines

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

One of the most regressive pieces of policy in Indian commercial aviation is the ‘5/20 rule‘ which requires Indian carriers to fly for a minimum of five years and have a fleet of 20 aircraft before they can operate overseas routes. At a time when the Indian economy was growing, and air traffic rising exponentially, this rule held back Indian …

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AirAsia under-serves Bangalore, hub of its Indian subsidiary

AirAsia A320 9M-AHS at Penang airport.

A confusion exists on the website of AirAsia with regards to its ‘Fly-Thru’ connectivity service on flights to and from Bangalore. While the flight schedules page of the website offers the connecting service between Bangalore and domestic Malaysian destinations like Penang, Langkawi, Denpesar-Bali, to international destinations like Singapore, Sydney, Perth, and Manila, the booking page does not allow booking of …

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Route dispersal guidelines: the anguish of airline network planners

Air India Airbus A321 VT-PPO. Seen here handing in the early morning light at Bangalore Airport.

[bsu_quote cite=”US President Ronald Reagan, August 15, 1986″] If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.[/bsu_quote] Reagan’s critique on government’s view of the economy can be applied to Indian aviation and the remote connectivity policy or route dispersal guidelines (often referred to as RDGs) implemented by the Ministry of Civil …

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My view: Irresponsible HT reporting gives credibility to frivolous Air India incident report?

When it comes to airlines, Air India seems to always be at the receiving end. A fear of saying anything leaves the corporate communications department uncommunicative, making the national carrier the target of speculation. Add to this, naive at best, slip-shod at worst, reporting in the mainstream Indian media, many a time lacking the most basic of common sense, and …

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Air India’s loss making international operations – Analysis – Part 2 – alarming costs

A tail parade of each of Air India's Boeing aircraft as in 2011. The 747-400, 777-300ER, 777-200LR and 737-800.

Continuing our analysis in to national carrier Air India’s international operations which loses money on all but two flights, yesterday we published part 1 of the three part analysis which focussed on the numbers, today’s analysis comes from Bangalore Aviation guest analyst and former co-author Vinay Bhaskara. Vinay’s strength is finance, and he focusses on the costs of Air India. …

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