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, …
Read More »
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 …
Read More »
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 …
Read More »
The on-going issues of the Pratt & Whitney PurePower PW1100 G-JM Geared Turbo-Fan (GTF) engine fitted on the Airbus A320neo (New Engine Option) are well known. Original launch customer Qatar Airways has refused to take delivery of the new variant citing these problems. The GTF engine has been inducted in to the fleets of Indian carriers, first with market leader …
Read More »
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. …
Read More »
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 …
Read More »
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, …
Read More »
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 …
Read More »
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 …
Read More »
The Indian government is in the final stages of finalizing the civil aviation policy and the 5/20 rule remains one of the core issues of contention. With the rule being integral to international operations and expansion strategy, airlines are lobbying hard for/against it depending on their own plans. The 5/20 rule was introduced in 2004 and stipulates that an airline …
Read More »
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) …
Read More »
Indigo received their first Airbus A320neo (new engine option) today and within a week of the Directorate General’s of Civil Aviation approval with type certificate. With a few more formalities the aircraft will be ready to fly the Indian skies making Indigo the first Asian and Indian operator of the new aircraft. Other airlines (GoAir, Vistara and Air India, all have …
Read More »
Jet Airways recently reported results for the second quarter (July – Sept). Profit for the quarter was at 87.5 crores however, that does not give the complete picture. Analysed further the numbers bring up several trends. Lower fuel prices have helped bring down costs significantly Jet Airways CASK (cost per available seat kilometre) is in the range of Rs 4.14 …
Read More »
With the recent news around Lufthansa levying a surcharge for all bookings via global distribution systems (GDS), the debate on airline distribution has returned to the forefront. We examine the distribution strategies of various airlines in the Indian context Despite the push by airlines to offer direct bookings via their websites, these global distribution systems still handle significant booking volumes …
Read More »
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 …
Read More »
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 …
Read More »
Indian carriers seem to be all chasing the same passenger. A cursory look at capacity deployment across seven carriers shows very little variance in terms of a domestic network strategy. However, as one starts to delve deeper some differences tend to emerge. Overall planners focus on three things: schedule offerings (and consequently slots); aircraft utilization; and feed (just a fancy name …
Read More »
Air India ordered for eight Boeing 777-200LRs in 2005, along with 15 Boeing 777-300ERs. The first 777-200LR arrived in the July of 2007, and all eight were delivered by end of August, 2009. Barely six and a half years later, the first five Boeing 777s have been sold to Etihad, at a “throwaway” price, because Air India felt that the …
Read More »
This article deals with how much fuel an airplane must carry, and why it mustn’t carry too much of it. Safety in aviation is primarily due to enforceable regulations and requirements that provide sufficient safety margins. One such requirement is the minimum fuel to be carried on board the aircraft. How much? Let’s assume a Bangalore – Delhi flight on …
Read More »
In late 2013, India’s civil aviation regulator the Directorate General of Civil Aviation (DGCA) introduced a Civil Aviation Policy, CAP-3100, in line with ICAO (International Civil Aviation Organisation, pronounced eye-kay-oh) guidelines, to guide an organisation on the steps required to obtain an Air Operator’s Certificate, or an AOP. The AOP is required for an operator to offer air transport services, …
Read More »
Bangalore Aviation News, Reviews, Analysis and opinions of Indian Aviation