External Analyst

The writer(s) are external experts. Bangalore Aviation may not agree with the views expressed by the author. Authors prefer to remain anonymous for a variety of reasons but mostly since they are not authorised by their employers to express their views publicly on the record.

Saving face or saving Jet Airways

The Jet Airways revival is stalled over the issue of the grant of slots. Jet’s position is that they should be able to reclaim the slots that were “temporarily assigned” to other airlines. The government on the other hand has indicated that the government will consider the airline’s request for slots as per existing policy. Effectively saying that Jet would …

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Guide to traveling on Air-Bubble and Vande Bharat Mission (VBM) flights (Updated 6 Dec 20)

by Sanjiv Kapoor Former COO, Spicejet and former CSCO of Vistara I keep getting questions on testing and quarantine requirements for those returning to India on the scheduled “air bubble” flights from places like the US, UK, EU, and UAE, as well as on the special ad-hoc “Vande Bharat Mission” or VBM flights that operate from time to time from …

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SpiceJet Q2FY21 results: financial health remains fragile

The Q2FY21 results of India’s second-largest low-cost carrier point to the continued fragility of the airline’s financial health driven by large accumulated losses, questionable revenue recognition policy and uncertainty surrounding the resumption of international airline operations currently suspended on account of the pandemic. SpiceJet Q2FY21 results snapshot (in INR) comparisons to Q2FY20 ● Revenues ₹1,305 crores (down by 54%) ● …

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Guide to traveling on Air-Bubble and Vande Bharat Mission (VBM) flights

by Sanjiv Kapoor Former COO, Spicejet and former CSCO of Vistara This guide has been updated. Please click here to view the updated guide. I keep getting questions on testing and quarantine requirements for those returning to India on the scheduled “air bubble” flights from places like the US, UK, EU, and UAE, as well as on the special ad-hoc …

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Supreme Court rules on airline refunds to passengers

Earlier this morning the Supreme Court ruled on the issue of airlines refusing to issue refunds to passengers who had booked tickets and were unable to fly during or after the lockdown. While the judgment is fairly detailed, broadly it states that: If a passenger or travel agent has booked a ticket during the lockdown period (from 25th March, 2020 …

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IndiGo plans to raise Rs 4000 crore by QIP to combat pandemic induced losses

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

The Board of Directors of Interglobe Aviation Limited, the company that operates IndiGo, has approved raising additional equity of up to Rs 4000 crore by way of a Qualified Institutional Placement (QIP) as the airline strengthens its war chest to tide over the downturn in aviation caused by the COVID-19 pandemic. Read: Indigo’s Q1FY21 results analysis: Highlighting the depth of …

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SpiceJet Q4FY20 results analysis: A sharp deterioration in financial health

Spicejet Boeing 737-800 VT-SPL "Cardamom"

After a long delay, India’s second-largest low-cost carrier reported its Q4FY20 results yesterday. Despite strong revenue growth, the airline posted a loss of ₹807 on account of increases in fuel costs, decline of the rupee and the impact of COVID-19 pandemic. The accumulated losses and increase in liabilities have deteriorated the financial health of the airline. SpiceJet Q4FY20 results snapshot …

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Ministry gives airlines a pass to refuse passengers refunds

In a time where political leaders are appealing to citizens to do the “right things”, where some businesses highlight values of profit over purpose and where all need to come together to tide over this crisis collectively, the actions of airlines and the lack of accountability have left many perplexed. Specifically: the non-refunding of passenger monies – an unfair and …

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SpiceJet Q3FY20 results analysis: Has rapid expansion hurt the airline?

SpiceJet Bombardier Q400 Dash 8 VT-SUB lands at Kempegowda airport Bangalore. Photo by Vedant Agarwal. All rights reserved.

February 14th saw SpiceJet report its third-quarter results. The airline reported a profit of INR 78.2 crores but we believe the results warrant closer examination. This because of the Boeing 737MAX grounding and the fact that compensation that has been recorded but not yet received by SpiceJet significantly contributed to this result. Additionally, in looking at the operational numbers, it …

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Air India wants 2400 crores more, the bleeding continues

Air India Boeing 747-400 VT-ESP Ajanta. Image copyright Devesh Agarwal.

After a loss of 8,556 crores in FY19, the Chairman and Managing Director (CMD) of Air India has indicated that the airline needs a sovereign guarantee of 2400 crores to fund ongoing operations. The airline continues to bleed cash at an alarming rate. Capacity woes continue and estimates indicate that twenty-two aircraft are grounded. On the costs side, there have …

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GoAir to announce Bangkok and Dubai flights. Appoints new COO.

GoAir Airbus A320 VT-WAI lands at Mumbai airport. Photo by Devesh Agarwal.

Go Airlines has called a press conference on July 18th, 2019. The note to press indicates that it is “to share expansion plans.” As the airline is without a Chief Executive Officer, the event will be handled by their vice-president for airports, marketing and network. The airline has just appointed Miranda Mills, an executive with 25 years of experience in …

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Analysis: Indian Aviation Budget 2019

For the aviation stakeholders, the budget was heavy on prose and lacking in numbers. A government that came in with a decisive mandate was expected to deliver on bold reforms. Yet, given that the tax revenues are declining and ambitious social sector schemes continuing, aviation once again saw token allocations and scant consideration. 5 key areas were highlighted: 1. Air …

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Indigo fourth quarter FY2018-19 results analysis: Massive increase in Q4 profits, but a sharp annual decline

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

Indigo Airlines reported its fourth-quarter results this Monday. As their CEO expounded – this year consisted of two halves. The 4th quarter was critical for Indigo as it pushed the airline to an overall profit. That said, the results continue to highlight the core challenges in the Indian market. Key numbers for Indigo’s fourth-quarter results: Revenue from Operations: 7883 crores …

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SpiceJet Q3FY19 results analysis: challenges remain

Spicejet Boeing 737-800 VT-SPL "Cardamom"

SpiceJet, reported its third quarter results of the fiscal year 2018-19 (FY19) this Monday. There were mixed views on the performance. While a profit of 55.1 crores is definitely good news, when compared to the same period last year the profit declined by 77%. Performance also cannot be cited as definitive as this came during the strongest quarter of the …

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Indigo Q3FY19 results analysis: the fare wars have just begun

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

Indigo Airlines reported its third-quarter results this Wednesday. While the results showed an improving trend compared to the last two quarters with a profit figure of 190 crores, overall the results highlight the core challenges in the Indian market. Key numbers fr Indigo’s third-quarter results: Revenue from Operations: 7916 crores Operating cost: 8038 crores EBITDAR: 1681 crores Net profit: 190 …

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The Meghalaya mine rescue operations: can the aviation community do more?

As of this writing, there are 15 miners trapped inside an illegal mine in Meghalaya and rescue efforts have not quite seen the push that they require from government and citizens alike. This note is a call to the aviation community to come together and push for the rescue. On January 12th, before the break of dawn, 5 members of …

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SpiceJet Q2FY19 results analysis

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

SpiceJet, reported its second quarter results of the fiscal year 2018-19 (FY19) yesterday. Much like the results of other listed airlines, it was a loss for the quarter. SpiceJet Q2FY19 snapshot: Revenues ₹1,9104 crores (up 4%) Costs ₹2,299 crores (up 25%) EBITDAR (₹32.7) crores Profit before tax (PBT): loss of (₹396 crores) Revenue per available seat kilometre (RASK) ₹3.73 Cost per …

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Jet Airways Q2FY19 results analysis and what the future may hold

VT-JAX Jet Airways Boeing 737 MAX 8. Image copyrighted. Do not reproduce.

Jet Airways reported its second quarter (Q2FY19) results this Tuesday.  With a loss of 1261 crores, the results were better than analyst expectations – highlighting how low the market sentiment has become. Jet finds itself in a challenging spot with increasing cost pressures, onslaught of low cost carriers in the domestic market and liquidity pressures towards servicing debt. Bangalore Aviation …

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Indigo second quarter FY2018-19 results analysis

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

Indigo, reported its second quarter results of the fiscal year 2018-2019 (Q2FY19) this Wednesday. The result was a net loss of 652.1 crores and highlighted the challenges facing Indian aviation. Incidentally, this is the first time since its listing in the public markets Indigo reported a loss of 652.1 crores and it is fair to say that all airlines will …

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