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Indigo Q2 fiscal 2017 results analysis – Capacity affects yields and profits

IndiGo first A320neo VT-ITC touches down at New Delhi's IGI airport after a non-stop flight from Toulouse, France

IndiGo reported its second quarter (ending September 30) results for the fiscal year ending March 31 2017 (FY2017). With earnings of Rs 139.8 crores, the results yet again failed to meet analysts’ expectations. As reported earlier, intense competition in the market, consistent fare sales and aggressive capacity addition have added to the revenue pressures. Key numbers Passenger Revenue – Rs. …

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SpiceJet Q1FY17 results analysis

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

SpiceJetJet reported numbers for the first quarter and the earnings did not disappoint. For the quarter ending 30 June 2016, the airline reported a net profit of INR 149 crores with the same fleet as the previous quarter. The impact on the share prices was almost immediate with almost a 20% rise to INR 67.7 per share. An analysis of …

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Jet Airways Q1 FY2017 results analysis – headwinds and turbulence likely

Jet Airways Boeing 777-300ER VT-JEG performing flight 9W117 from London approaches Mumbai airport

Jet Airways reported results on August 12th with a net profit of Rs 103.1 crores on revenues of Rs 5,112 crores for the first quarter of fiscal year 2016-17 (FY17). The results indicate several challenges and highlights are as below: Operational performance The quarter saw an overall capacity increase of 3.8% compared to the same quarter last year, when measured …

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Indian aviation largely overlooked in the 2016 budget

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

For all the talk of the Government promoting aviation and as the industry watched with baited breath, the budget seems to have continued the Modi-government’s ignoring of  civil aviation. The sum-total budget proposals pertinent to aviation do not even warrant us writing an article. If anything, they could likely be summed up in an SMS message. Namely, Aviation turbine fuel (ATF) …

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Jet Airways Q3FY16 analysis – good results, structural challenges remain

Jet Airways Boeing 737-800 VT-JGA.

Jet Airways reported their highest ever quarterly profits of Rs 467 crores for fiscal 2015-16 third quarter ending December 2015. The key metrics were trending in the right direction; yet, the structural challenges at Jet Airways remain and require close monitoring. Operational performance Operationally, Jet has clocked a utilisation of more than 13 hours, which is phenomenal by any standards, …

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SpiceJet Q3 FY2016 results analysis – record profits on the path of recovery

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

SpiceJet reported its highest ever profit of Rs 238 crores for fiscal year 2015-16, third quarter ending December 31, 2015. With revenues of Rs 1,439 crores, this continues the upward climb for SpiceJet. A phoenix rising Last year during this same period SpiceJet was in turmoil, on the brink of a shut-down with auditors doubting its ability to continue as …

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IndiGo aircraft order MOU expired. What questions investors should ask IndiGo.

IndiGo_A320 classic VT-INT. Photo: Devesh Agarwal.

India’s largest domestic airline Indigo filed a 557 page draft red herring prospectus (DHRP) which is a preliminary document towards an initial public offering (IPO). For 10% of the company, Indigo is targeting an IPO of approximately $400 million (Rs 2,500 crores), effectively giving the airline a valuation of $4 billion. The funds from the IPO are to be used …

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A day of revival at Malaysia Airlines and lessons for our national carrier

The 1st of June was a day of revival for Malaysia Airlines. As of that day all 20,000 odd employees were served termination letters and all assets transferred to a new entity. The new company will subsequently re-employ 2/3rds of the staff but on new terms and contracts. This drastic but necessary decision is being carried out given the precarious …

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Jet Airways and Air India to benefit as US FAA restores India to category 1

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

The United States Federal Aviation Administration has restored Indian civil aviation back to Category 1 status in its IASA (international aviation safety assessment) program. This information was conveyed to Director General Ms. M. Sathiyavathy by Associate Administrator Ms. Margaret Gillian in a letter earlier today. India was relegated to category 2, implying unsafe, on January 31, 2014. Since then the …

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Jet Airways Q2 FY 2014-2015 results analysis

Jet Airways' Boeing 737-800 VT-JBD

by Ameya Joshi Jet Airways, India’s largest private airline reported its third quarter fiscal year 2014-15 (FY2015) results on February 6, 2015, reporting a wafer thin operating profit after seven consecutive quarters. The airline moved to full service operations in December 2014 and the quarter reflected a mix of full service and low cost operations. Wafer thin profits The airline …

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Air India pays 18x delay compensation of private airlines. To deduct salaries of those responsible.

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

In a bold move national carrier Air India has put errant employees and vendors who delay flights on notice. The airline will deduct salaries of employees and caterers found responsible for delays of flights. The Maharaja which has one of the worst one-time performance (OTP) records amongst Indian carriers, has been instructed by the top bureaucrat in the civil aviation …

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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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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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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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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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Air India’s loss making international operations – Analysis – Part 1

Air India cabin crew. Photo courtesy Star.

Last week we reported on the massive loses made by national carrier Air India on 57 of its 59 international flights. Over the next few days we will bring you differing points of view on Air India’s international operations. Today is from a professional analyst at one of the world’s leading aviation consulting and advisory practices. He cannot be named …

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Jet Airways’ network map and schedule analysis for middle east and gulf

Jet Airways' Boeing 737-800 VT-JBD

As Jet Airways announces its fifth daily flight between Mumbai and Dubai, thanks to an exhaustive analysis by our supporter Abhijit, we have compiled a map of Jet Airways gulf and middle-east network. The map is generated courtesy of GCMap. Jet Airways will operate 280 frequencies a week between India and the middle-east and Gulf region in the Winter 2014 …

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Air India loses money on all international flights, but two

Air India Boeing 777-237LR VT-ALF Jharkand at New Delhi IGI airport. Photo copyright Vedant Agarwal, all rights reserved. Used with permission.

National carrier Air India lost money on 57 of its 59 international routes in the last fiscal year which ended March 31, 2014. The airline lost a whopping Rs 4,273.35 crores (approximately $712 million at current exchange rates) operating these international flights. This according to an internal “Route Economics” provisional report for April 1, 2013 to March 31, 2014 which …

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