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Analysis and Features

Repairing and retaining brand Air India will challenge any buyer

The Air India ramp at Mumbai CSMI Airport. Photo by and copyright Devesh Agarwal.

As the government of India attempts to privatise Air India, media reports suggest the second time around is seeing renewed interest. Reports also indicate the government is keen the Air India brand is retained post any sale. One can see why. The airline is still India’s national carrier and the brand has a high recall value and familiarity quotient. Despite …

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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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Are Airlines Overreacting to the Coronavirus?

Earlier this week, the US government began implementing new rules for travel from China in the wake of the coronavirus outbreak. The US has already issued a level 4 advisory urging residents to avoid outbound travel to China. Additionally, flights from China will be contained to seven airports (New York JFK, Chicago O’Hare, San Francisco, Seattle, Atlanta, Honolulu, and Los …

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Indigo Q3FY20 results analysis

IndiGo first A320neo VT-ITC touches down at New Delhi's IGI airport after a non-stop flight from Toulouse, France

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 …

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The changing nature of airline alliances

Representative cabin crew of the oneworld member airlines pose in front of TAM airlines A320

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 …

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Low Cost Long Haul: Can Indigo succeed where so many have failed?

IndiGo Airbus A320-232(SL) VT-IFK with Sharklets.

India largest and most profitable airline, IndiGo’s CEO Ronojoy Dutta has gone on record recently about the low-cost airline “actively studying” long haul flights to London on widebody aircraft. This statement coming from an airline which for the longest time stuck to a single fleet strategy, until it added ATR aircraft for regional flights, has left some perplexed. Dutta also …

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Analysis: Are the SpiceJet Q2FY20 results being underplayed?

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 …

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10 tips to make your winter fog travel easier

Singapore Airlines Boeing 747-400F 9V-SFQ in fog at Bangalore Kempegowda airport

Early morning fog is the bane of the Indian air passenger, especially at Bangalore and New Delhi airports. It disrupts schedules and leads to aggravation, quarrels, shouting, and general ill-will not just for passengers but also airlines, airports, and all their staff and stakeholders. Here are some tips that should help you avoid the disruption and hopefully keep your blood …

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IndiGo’s soaring GTF engine problems

Indigo Airbus A320neo VT-ITC. Pratt & Whitney PurePower PW1127 Geared Turbo Fan engine. Copyrighted image. Re-use prohibited.

India’s aviation regulator, the Directorate General of Civil Aviation (DGCA) has directed both Indigo and GoAir to replace at least one of the Pratt & Whitney PW1100G geared turbo-fan (GTF) engines on the A320neo aircraft within the next fifteen days. This comes after Indigo reported a series of incidents involving in-flight engine shutdowns (occurred on the 24th, 25th and 26th …

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Should India feed its citizens or prop up Air India?

The Air India ramp at Mumbai CSMI Airport. Photo by and copyright Devesh Agarwal.

India leads the world in hungry people. In the recently released Global Hunger Index, India dropped to rank 102 out of 117 countries, placing it below its impoverished neighbours Nepal, Bangladesh, and Pakistan. About 15% of India’s population is either malnourished or undernourished. About 194 million Indians go hungry each day, and regretably a large percentage are children. The government …

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The great Indian aviation paradox – low fares fueled by unsustainable capacity

Domestic ramp at Mumbai Chhatrapati Shivaji airport. Photo copyright Devesh Agarwal.

A robust aviation industry is essential for any nation to grow and prosper. Airlines connect businesses and people both nationwide and globally. Air transport is essential for global trade, helps bring in much needed forex from tourism, provides global access to local produce and creates jobs. The economic impact and benefits of this one industry overshadow many others. Historically, air …

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Ultra-long haul flying: will Qantas succeed?

CGI of the Boeing 787-9 Dreamliner in the new Qantas livery.

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 …

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India’s cities and the need for multi-airport systems

Renovated T2 at New Delhi IGI airport

Airports are strategic assets for any country. As airport impact growth and connectivity impacts that lend themselves to improving tourism, trade, technology, transport and talent. Consider India’s lacklustre trade figures – currently at 1.2 percent of global trade; innovation – where no Indian university lists amongst the top twenty globally; and slowing economic growth. As policymakers and economists rush to …

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Airlines hogging bilateral rights as a means to delay competition

IndiGo first A320neo VT-ITC receives the traditional water cannon welcome from the IGI airport ARFF team

Indian airlines are in a rush to start international services – or so we are made to believe. BangaloreAviation recently reviewed the bilateral rights applied for against what airlines have started. Route choices clearly emerged although experts indicate that there’s a fair amount of posturing involved. That is, airlines will often ask for routes they know they will not fly …

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Indigo Q1FY20 results: the greatest quarter in Indian aviation?

IndiGo ATR72-600 VT-IYA. Photo by Vedant Agarwal. Copyright. Do not re-use.

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 …

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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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