As the finance minister presented the Budget this Saturday expectations were that there would be some announcements related to aviation. This because of sections on the economic survey and also the fact that last year’s budget speech had laid out a vision towards India entering the aircraft financing and leasing market; the divestment of Air India; consideration for re-examining foreign …

Monday, January 27th was quite a newsday for Indian aviation. In what is becoming a tale of two airlines, while the national carrier came out with its Preliminary Information Memorandum looking for someone to take over 23,286 crores of debt and 8556 crores of losses (for FY19) the other airline Indigo reported profits of 496 crores with another 20,000 crores …

The airline industry is undergoing a transformation while it deals with disruptive shifts. Whether it’s the grounding of the 737MAX affecting capacity plans worldwide, the shift to low-cost travel or declining demand due to movements such as “flight shaming” in Europe – change is happening in a manner not witnessed before. This holds true even in the world of airline …

SpiceJet, now India’s second-largest domestic airline, reported its second-quarter results of the fiscal year 2019-2020 (Q2FY20) this Wednesday. It was a result that was met with mixed expectations and also one that seems to be underplayed. We attempt to present an analysis that may help deconstruct the figures. The focus has been on a net loss of INR 462 crores …

Indigo reported its Q2FY20 results on Friday. With a loss of 1,062 crores, the results caught many by surprise. It is too early to tell whether the results reflect challenges with the strategic direction the airline is taking (compare this to the profit of INR 1203 crore in Q1FY20) or if this was a one-off driven largely driven by operational …

As the government preps Air India for divestment, a key element of the plan is the reduction of the debt burden. The goal is to make the airline a better proposition for buyers. The debt reduction has been carried out by creating a special purpose vehicle (SPV) named Air India Asset Holdings Ltd (AIAHL) and moving half of the debt …

The recent announcement by Qantas regarding the 21 hour test flight has generated a lot of buzz. For the aviation industry the age of ultra-long haul flying (ULH) is here. Several flights are already operational, the most noteworthy being Perth – Heathrow, Singapore-Newark, Doha-Auckland and the very ambitious “Project Sunrise” of Qantas. The project is Qantas’ ambition to operate nonstop …

Indian aviation has been on a growth path. With demand growing by leaps and bounds, the number of aircraft in the skies has soared. And the growth is likely to continue. These aircraft are faster, more efficient and more advanced than ever before and much of this efficiency is by virtue of the engines. Each aircraft is powered by specific …

Indigo reported its Q1FY20 results on Friday. With a profit of INR 1203 crore it is the highest net profit for any airline in Indian aviation. The airline looked good on all metrics ranging from financial to strategic and operational. Interestingly, while this quarter was indeed driven by the collapse of Jet Airways, Indigo’s contention is that this did not …

Indigo seems to have encountered severe turbulence as the fight between the co-founders has now become very public. There have been accusations, counters and name-calling. The issues highlighted range from related party transactions (RPTs) to those of governance. And for an airline that now flies one in every two passengers in the Indian skies, is on a solid financial footing, …

The International Air Transport Association (IATA) Annual General Meeting recently concluded in Seoul. The event was quite anticipated given the unprecedented geo-political trends. The state of the industry and key focus areas were highlighted by the Director General Alexandre de Juniac in his speech. Key points of this speech that speak to trends were: Safety Flying continues to be one …

With the production of the Airbus A380 ending 2021, airline enthusiasts the world over are wondering if there will be a replacement aircraft that is as awe-inspiring. The end of the program is also interesting as it contradicts the fact that airports are increasingly constrained and indeed airlines will have to devise strategies to overcome this. Yet, the impacts are …

May will see the launch of SpiceBiz – SpiceJet’s business class product. It is a strategic shift for an airline that operates on the LCC business model and one that leverages the opportunity presented after the grounding of Jet Airways. The industry is abuzz with debate on whether SpiceJet can pull this off. Our contention is that SpiceBiz may redefine …

Jet Airways has suspended operations as of April 17, 2019.  It was an action that should have been taken much earlier. The debate continues on whether a consortium will successfully bid and re-start the airline or if the government will step-in. While the 16,000+ employees are still hopeful, the fact of the matter is that actions have left the airline …

The first day of release of the Expression of Interest (EOI) document for the sale of Jet Airways (download here) failed to see any formal response. Inspite of tomorrow being the deadline for submission investor interest has been tepid at best. We feel there are some key reasons for this lack of interest. No certainty on the price and value …

Fleet – with a majority of the fleet grounded, what is the way forward? The fleet of 119 aircraft is now down to 40. The flying fleet includes eight A330s, nine Boeing777s and twenty three 737s. Luckily the majority of the wide-body fleet (the A330s + B777s) is owned by Jet Airways. Thus it can be utilized at a higher …

Etihad Airways recently reported its annual results for 2018. The results highlight the continuing challenges for the airline as it addresses elements of its fleet, network and profitability. These are important for its transformation program.  While there was a 4% increase in passenger yields, the impact on overall revenue was not significant. On the cost side, the airline was able …

SpiceJet announced the launch of 8 new direct flights to Gwalior in Madhya Pradesh. This city will be connected under the UDAN III scheme. It is the airline’s 11th destination under the regional connectivity scheme (RCS). In doing so, SpiceJet continues building its network strategy of connecting smaller towns and cities while leveraging the government’s flagship policy. The UDAN scheme …

Indian aviation continues to show tremendous aviation potential with growth forecast to be in the double digits for the next few years. Consensus forecasts indicate that India will be the third largest aviation market by 2026 after the United States and China. Both India and China will propel growth in the Asian region and consequently for the world economy. The Asian …