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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.

Analysis: Jet Airways first quarter FY2018 results. Several challenges.

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

Jet Airways reported results for the first quarter (Q1) of the fiscal year 2017-18 (FY2018 or FY18) yesterday. The results were a mixed bag and showed both areas of improvement and concern. Bangalore Aviation presents an analysis by an external industry professional as the editor of the site owns shares in the airline. The external analyst prefers to remain anonymous. …

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Has the UDAN Regional Connectivity Scheme failed to take-off?

Alliance Air (Air India Regional) ATR-42 VT-ABB.

The Ministry of Civil Aviation recently announced revisions to the Regional Connectivity Scheme better known as UDAN (Ude Desh ka Aam Nagarik). The revisions and other industry developments show that the scheme has failed to takeoff. This is also reflects the hurried way in which the scheme was put out and the lack of consensus building and consultation. As a …

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Spicejet Q4FY17 results analysis

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

Spicejet reported the fourth quarter of fiscal year 2016-2017 results on June 3, 2017, a Saturday, not a working day for the financial markets. The timing of the results announcement was as interesting as the results themselves. Overall, the results were below analyst expectations and are reflective of the intensely competitive fare and capacity environment in Indian aviation. Key financial …

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Runway capacity challenges at Delhi airport

Runway 28 at Indira Gandhi International Airport at night. Image copyright Vedant Agarwal.

New Delhi Indira Gandhi airport is looking to maximize efficiency of their runways via a series of measures. Bangalore Aviation has learned that the airport operator Delhi International Airport Limited (DIAL) is working towards achieving a runway service rate of 104 movements per hour. This rate will include optimised pilot performance, optimised ATC performance and high intensity runway operations. Yet, …

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Analysis: Why did IndiGo decide to introduce ATR72’s in to its fleet?

IndiGo_A320 classic VT-INT. Photo: Devesh Agarwal.

Earlier this month, on the 9th of May, India’s largest domestic airline Indigo, announced that they had signed a term-sheet with French turbo-prop airframer ATR, for the induction of 50 ATR72-600 regional aircraft. The announcement caught the aviation and investment community completely by surprise. Since its inception 12 years ago in 2005, IndiGo had slavishly adhered to the “one airframe …

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Seven key implementation challenges of UDAN the Regional Connectivity Scheme

Tails of Air India and it's old subsidiary Alliance Air.

5 bidders were awarded routes under th;e regional connectivity scheme called UDAN and announced this Thursday. The selected bidders were SpiceJet Alliance Air TruJet Air Odisha Air Deccan These airlines collectively are scheduled to fly 128 RCS routes connecting the North, South, East and West parts of the countries with unserved and underserved cities.  Bangalore Aviation has been looking at …

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Christoph Mueller could be Etihad’s new CEO

Etihad Airways Airbus A320 A6-EIC at Kempegowda Airport, Bangalore

Industry sources indicate that Christoph Mueller is likely to be appointed as the CEO of Etihad.  The appointment comes at a time when the airline is facing severe challenges specifically —  a rising cost base and declining yields that resulted in the departure of its previous CEO James Hogan along with several other members. A turnaround expert A no-nonsense and extremely direct person, …

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DGCAs new regressive policy on callsigns

Qatar Airways Airbus A319LR cockpit

The DGCA has put out a circular with guidelines on avoiding confusing call-signs by operators. Presumably this comes about after a handful of incidents where callsigns were confused. However, this move by the regulator that fails to address the real issue. Full document may be accessed at: http://dgca.nic.in/aic/AIC02_2017.pdf Thoroughly confusing and impractical guildelines The guidelines have a bullet list of provisions. Who is …

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SpiceJet Q3FY17 results analysis: severe turbulence ahead

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

Spicejet reported its third quarter (ending December 31) results for the fiscal year ending March 31 2017 (FY2017). With earnings of Rs 181.1 crores, the results were below expectations. As was the case with its competitors, consistent fare sales and aggressive capacity addition added to the revenue pressure but as SpiceJet usually leads in the fare sales and demand stimulation, …

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Jet Airways Q3 FY17 results analysis: challenging times ahead

Jet Airways Boeing 737-800 VT-JGA.

Jet Airways reported its third quarter (ending December 31) results for the fiscal year ending March 31 2017 (FY2017). With earnings of Rs 156.3 crores, the results were much below expectations and point to structural challenges. The results decline was driven by intense competition in the market, consistent fare sales and aggressive capacity addition – all of which added to …

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Analysis: IndiGo Q3FY17 results highlight challenging environment

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

IndiGo reported its third quarter (ending December 31) results for the fiscal year ending March 31 2017 (FY2017). With earnings of Rs 487.3 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 Total revenue: Rs 5,158 …

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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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Bengaluru and Mumbai airports plan runway closures. Pax, airlines, fares hit.

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

As Air traffic grows at an exponential pace, Indian airports are struggling to keep up. Building capacity ahead of demand has never quite been the norm and this is now catching up. Airports like Mumbai, Bengaluru, Pune, Goa are severely constrained and in the near term the capacity woes will continue. While terminal capacity and landside capacity can be managed, …

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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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Jet Airways Q4 and full year 2015-16 results and performance analysis

Jet Airways Boeing 737-700 VT-JNS at Bengaluru Kempegowda airport

Jet Airways recently reported numbers for the quarter and the year. For the fourth quarter ending 31 March 2016, the airline reported an impressive net profit of Rs 3,972 million and for the year a net profit of INR 11,733 million. After extensive research into qualitative and quantitative details an analysis is presented below: Strategic shift Jet has moved away …

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