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Analysis and Features

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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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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