Tag Archives: financial

DGCA made a bad financial decision in shutting down Kingfisher Airlines

Earlier this month, now shutdown Kingfisher Airlines, once India’s largest private domestic carrier, reported a huge net pre-tax loss of Rs. 1115.5 Crore for the second quarter of Fiscal Year 2012-13. The performance was by far and away the poorest quarterly financial performance out of any Indian airline in the last few years, though that is to be expected given …

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Jet Airways Q2 FY 2012~2013 quarterly results financial analysis

Photo © Devesh Agarwal. Used with permission. India’s largest private carrier, Jet Airways, reported a net, post-tax loss of Rs. 99.7 Crore for the second quarter of fiscal year 2012-2013, representing a sharp improvement from the Rs. 713.6 Crore net loss recorded in the same period last year. This 84.8% improvement in results, pushed Jet Airways’ net margin up to …

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SpiceJet Q2 FY2012~2013 quarterly results financial analysis

Earlier this week, Indian low cost carrier SpiceJet posted a Rs. 163.5 Crore net loss for the second quarter of fiscal year 2012-13. While this represented a 32% better result than the same period last year, it is still a heavily disappointing result, giving the recent surge in the fortunes of India’s airlines after the shut-down of full service carrier …

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Analysis – SpiceJet likely to order Boeing 737 MAX, but not immediately

Earlier this week, the Wall Street Journal quoted a report from the Center for Asia Pacific Aviation (CAPA) as saying that India’s largest publicly-traded low cost carrier (LCC), Chennai-based SpiceJet, was “is in advanced discussions to order 30-40 Boeing 737 MAX aircraft, the Centre for Asia-Pacific Aviation (CAPA) has said.” This report was then seized on by several outlets in …

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Boeing Posts a Strong 3rd Quarter

Late yesterday, Boeing, the world’s second largest commercial aircraft manufacturer by deliveries, reported its results for the 3rd quarter of calendar year 2012. The Seattle-based original equipment manufacturer(OEM) reported a net profit of $1.03 billion ($1.35 per share) on revenues of more than $20 billion. Revenues grew 13%  versus Q3 2011, driven primarily by a 28% growth in revenue at …

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Kingfisher Airlines: Diverting the media’s attention away from things that matter

For the last week or so we are overloaded with the media’s fascination about the financial troubles at Kingfisher Airlines and its flamboyant Chairman Dr. Vijay Mallya, and his less than flamboyant, and far less street smart son Sidhartha. Like the famous wild dogs of Africa, which hunts in packs, the media had descended en mass on the sorrowful suicide …

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Exclusive interview: Giorgio De Roni – CEO GoAir – Part 1: GoAir is profitable

Over the last 18 months, the soft spoken Giorgio De Roni has been quietly turning around the Wadia family promoted GoAir. From a rock bottom position, dismal market share, and reputation for frequent cancellations, De Roni has grown GoAir to surpass Kingfisher Airlines and JetLite in market share, and made GoAir a contender in the Indian airline industry, with the …

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Jet Airways Q1 FY 2012-2013 analysis – prudent cost cutting leading to profits

When Mumbai based full service carrier Jet Airways reported a Rs. 33.3 Crore net pre-tax profit in the first quarter of fiscal year 2012-2013, it represented a resounding statement that the Indian airline industry may have finally found its footing. Photo copyright Devesh Agarwal. Having slipped to net losses in each quarter last year due to the near constant rise …

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Kingfisher Q1 FY2013 analysis – losses exceed three times the revenue. Is the end near?

Beleaguered full service carrier Kingfisher Airlines has served notice of its dire straits, by reporting a massive Rs. 963.3 Crore net pre-tax loss in the first quarter of fiscal year 2012~2013. Even as Kingfisher Airlines chairman Vijay Mallya wrote a controversial letter to Kingfisher’s employees asking them to work without pay for the next few months, it appears that Kingfisher …

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SpiceJet Q1 FY 2013 financial and operations analysis

When Gurgaon based low cost carrier (LCC) SpiceJet reported a net, pre-tax profit of more than Rs. 56 Crore in the first quarter of fiscal year 2012-2013, it represented a huge positive step for the Indian airline industry. After SpiceJet had slipped to a large net loss for fiscal year 2011-2012, mirroring the performance of the industry as a whole …

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SpiceJet Fiscal Year 11-12 Financial Analysis – Too much growth and high fuel prices offset strong cost discipline

As with all of the Indian airlines, Delhi based low cost carrier SpiceJet faced disappointing financial results in the fourth quarter and full year of fiscal year 2012, posting a net loss of Rs. 605.8 Crore for FY 11-12 and Rs. 249.2 for Q4. After large net losses at India’s two other publicly traded carriers Kingfisher and Jet Airways, SpiceJet’s …

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Special Report: Jet Airways 2012 Financial Analysis and 2013 Outlook

Jet Airways reported a large net pre-tax loss (Jet Airways and JetLite combined) of Rs. 1,331 Crore for fiscal year 2012, a very disappointing result. Revenue and passenger growth were robust as usual at 14.8% and 16.3% respectively. But the carrier’s net margin of -8.5% is indicative of tangible flaws in the business, and goes beyond the explanations of higher …

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Analysis: Qatar Airways continues its explosive growth in 2012

Source  Even as chief rival Emirates Airlines reported a sharp 72% decline in net profit to $408 million in fiscal 2012, fellow Middle Eastern juggernaut Qatar Airways is continuing with its exuberant pace of expansion. Earlier this year, the airline, which serves 116 destinations on a fleet of 108 aircraft, announced plans for 65-77 new weekly flights to 13 new …

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Kingfisher fiscal year 2012 results analysis. Will Kingfisher Airlines survive?

When Kingfisher Airlines, once India’s second largest domestic airline, reported a Rs. 2,328 Crore (1 Crore = 10 Million) net post-tax loss for fiscal year 2012, it was simply an affirmation of the dire straits that a once proud airline has fallen into. Of the Rs. 2,328 Crore net loss, a whopping Rs. 1151.5 Crores were lost in the fourth …

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Editorial: Time to Eliminate Unions at Air India

When the Indian Pilots Guild, one of two pilot unions at national carrier Air India, began a strike around 2 weeks ago, it once again illustrated the deep fallacy of the employee situation at Air India. Coming on the heels of a $5.8 bailout package over 8 years offered by the Indian government, IPG’s industrial action marks just the latest …

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Indian government approves airlines to borrow $1 billion overseas, but delays FDI

The government of India will allow aviation companies to borrow up to $1 billion (Rs. 5,100 crore) collectively and up to $300 million individually, from overseas, via the external commercial borrowings (ECB) route, as per a statement released by the finance ministry today. In his Budget speech last month, the Indian Finance Minister had announced that companies in the aviation …

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Kingfisher Airlines Q3 FY2012 financial analysis

The past few days have been admittedly brutal for Kingfisher. Whether it was suspending flights entirely from Kolkata, or dealing with a particularly critical journalist, the events that befell Kingfisher stopped just short of catastrophic. The immediate pressure appears to have been relieved by loans from State Bank of India, which will go further onto the hook for Kingfisher to …

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SpiceJet Q3 Fiscal 2012 financial analysis: Q400 operations cushion the loss

The second financial analysis for the third quarter in India is of low fare carrier SpiceJet, who mirrored the performance of the industry by losing Rs. 39.26 crore in Q3 of Fiscal Year 2011~2012 (FY2012). Revenue growth for SpiceJet was strong, rising 41% to Rs. 1,175.8 Crore from Rs. 759 Crore Passengers carried were up 29.2% to 3.08 million; beating …

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Jet Airways Q3 2012 financial analysis

Once again, we will be beginning our financial analyses for Q3 of FY 2012 with an analysis of India’s largest airline Jet Airways, who posted a modest net loss of Rs. 101.2 Crore, down sharply from a net profit of Rs. 217.9 Crore in the same period last year. Q3 is typically the best quarter for Indian carriers, so to …

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Kingfisher posts net loss of Rs. 444 Crore

Late yesterday, embittered Kingfisher Airlines released its quarterly results for Q# of FY 2012. The struggling carrier saw its net loss deepen to Rs. 444 Crore from Rs. 254 Crore in the same period last year. Revenues fell 5% to Rs. 1,547 Crore, while expenditures grew 4.8% to Rs. 1778.06 Crore. EBITDAR was Rs. 125 Crore, down from Rs. 284 …

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