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Analysis and Features

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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Key highlights of the IATA Director General’s Report

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 …

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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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Visiting the Airbus Asia Training Centre – the largest Airbus simulator centre in the world

Last week, I was invited by Singapore Airlines to visit the Airbus Asia Training Centre (AATC). The AATC is part of the Airbus Flight Training Network which is used to train pilots to fly Airbus type aircraft. The AATC is a joint venture between Airbus and Singapore Airlines, which hold 55 and 45% respectively. The operations of the company began …

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SpiceJet may just redefine the perception of business class

Spicejet Boeing 737-800 VT-SPL "Cardamom"

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 …

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The value erosion of Jet Airways

Four 777-300's of Jet Airways at Amsterdam.

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 …

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Grounding Jet Airways is best option for now. Force lenders to act decisively

A Jet Airways Boeing 777-300ER pulling into it's gate at London Heathrow.

The saga of Jet Airways has been analysed to death. The situation is turning in to a tale of “could have, should have, would have……..”. In this scenario, we opine the best option, for now, is to ground Jet Airways, and suspend all operations. It is a radical opinion, but do read on. The current situation The proposed funds infusion …

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Why is the Jet Airways stake sale not receiving any expressions of interest?

Jet Airways Airbus A330-300 VT-JWQ. Image copyright Vedant Agarwal.

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 …

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List of candidates to lead the Jet Airways turnaround

Jet Airways A330 fleet at New Delhi IGI airport Terminal 2

It is well known the aviation business is competitive, and India is probably the most difficult market to succeed in. While airlines are making handsome profits across the world, almost every Indian airline is facing financial issues. Leading the losses are national carrier Air India and private sector pioneer Jet Airways. Even the low-fare carriers are suffering in this era …

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Etihad Airways 2018 results analysis

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

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 …

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SpiceJet continues to leverage the UDAN policy and develop its network

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

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 …

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