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Tag Archives: analysis

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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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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What if Air India does not attract any buyers? What then?

Air India Boeing 787-8 Dreamliner line number 35 test registered N1015 (later became VT-ANH) at the India Aviation show, Hyderabad March 2012. Photo copyright Devesh Agarwal.

Military aviator and strategist John Boyd famously said, “If you want to understand something, take it to the extremes or examine its opposites.” Applied in the context of Air India, this becomes particularly interesting. That is, at a point of time where everyone seems to be convinced that the airline will be sold off, to understand the situation fully one …

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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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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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Emirates and the impacts of the A380 phase-out

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 …

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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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An overview of India’s commercial aviation fleet and orders – 2019

View of part of the ramp at Bangalore Airport at night.

Indian aviation is on a growth track with the commercial aviation fleet set to double in the next five to eight years. This is reflected in the statistic that for each aircraft flying there are approximately 1.7 aircraft on order. India is poised to become the 3rd largest aviation market by 2030. Highlights of the fleet are presented below. 638 …

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The Airbus 380: operations and outlook

Singapore Airlines A380-800 9V-SKD. Image copyright Devesh Agarwal

The Airbus 380, the world’s largest passenger aircraft, entered commercial service in 2007 with launch customer Singapore Airlines. With a maximum takeoff weight of 575 tonnes (almost eight times the weight of an Airbus A320) and average seating of 575 passengers (800+ in high density configurations) Airbus built the A380 on the premise of slot-constrained airports needing a ultra-high capacity …

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Indigo Q3FY19 results analysis: the fare wars have just begun

Indigo Airbus A320neo VT-ITK. Image copyright Vedant Agarwal.

Indigo Airlines reported its third-quarter results this Wednesday. While the results showed an improving trend compared to the last two quarters with a profit figure of 190 crores, overall the results highlight the core challenges in the Indian market. Key numbers fr Indigo’s third-quarter results: Revenue from Operations: 7916 crores Operating cost: 8038 crores EBITDAR: 1681 crores Net profit: 190 …

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Why is IndiGo risking a firestorm over web check-in charges?

Indigo Airbus A320neo VT-ITC. Cabin. Copyrighted image. Re-use prohibited.

India’s largest domestic carrier IndiGo, found itself at the centre of a public relations firestorm when it announced a policy change and decided to universally charge for seat allocation during web-check-in. In a rather casual manner the airline clarified that those who did not wish to pay the charge could come to the airport and have a seat auto-assigned. Opposing …

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Jet Airways Q2FY19 results analysis and what the future may hold

VT-JAX Jet Airways Boeing 737 MAX 8. Image copyrighted. Do not reproduce.

Jet Airways reported its second quarter (Q2FY19) results this Tuesday.  With a loss of 1261 crores, the results were better than analyst expectations – highlighting how low the market sentiment has become. Jet finds itself in a challenging spot with increasing cost pressures, onslaught of low cost carriers in the domestic market and liquidity pressures towards servicing debt. Bangalore Aviation …

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Jet Airways first quarter FY2018-19 results analysis

VT-JAX Jet Airways Boeing 737 MAX 8. Image copyrighted. Do not reproduce.

We ended our Q4FY18 analysis for Jet by indicating that, “Going forward, it seems that Jet Airways is headed for a turbulent ride. Debt will grow for the short-term. The revenue pressures are intense and the cost base is high. Addressing both these elements is critical to success.” While we forecast a result that would reflect ongoing challenges, little did …

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SpiceJet first quarter FY2018-19 results analysis

SpiceJet, reported its first quarter results of the fiscal year 2018-2019 (Q1FY19) last week. Much like its rival Indigo, it was a result that reflected the ongoing weakness in the market and was below expectations. Key numbers SpiceJet Q1FY19 results snapshot (in INR) comparisons to Q1FY18 Revenues ₹2,236 crores (up 20%) Costs ₹2,245 crores (up 31%) EBITDAR ₹398 crores (down …

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