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Tag Archives: analysis

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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Indigo first quarter FY2018-19 results analysis. Industry losses ahead?

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

India’s largest domestic carrier, Indigo, has sent tremors in the aviation community with its first quarter results for the fiscal year 2018-2019 which ends Match 31, 2019. An airline, normally delivering nine and 10 figure profits (in the hundreds of crores or billions), reported a minuscule ₹27 crores (₹270 million) as its profit after tax; and this, for a traditionally …

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How the Indian airline industry is attacking AirAsia India

First flight of AirAsia India. Plane at the gate.

Over the last year, the media has covered the various challenges AirAsia India is facing. Ranging from executive level departures late in 2017 onwards, to filing a First Information Report (FIR i.e. a criminal complaint) against former officers of the airline, to CBI (Central Bureau of Investigations) investigations of its director. In this analysis, we explore how the hyper-competitive Indian …

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Why Vistara is likely to choose the 787-10 over the 787-9

Boeing 787-10. Boeing image.

Bloomberg is reporting that the Tata Singapore Airlines joint venture Vistara has selected the Boeing 787 Dreamliner over the Airbus A330neo as its wide-body aircraft for long distance international operations. Why did Vistara choose the 787 Just some of the reasons for Vistara choosing the 787 over the A330neo are: The 787 is a newer generation aircraft compared to the …

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Analysis of Jet Airways’ fourth quarter and full year FY2017-18 results

Jet Airways Boeing 737 MAX 8.

Confirming the challenging nature of the market, Jet Airways posted a loss of ₹1,036 crores for the fourth quarter of the fiscal year ending March 31, 2018. This pulled the full year loss to ₹767 crores. This was their first loss after eleven consecutive profitable quarters and the first full year loss after 2 years of profit. The results reflect …

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Analysis: Indigo’s fourth quarter FY18 results

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

Indigo’s fourth quarter results were far below expectations, reflecting the intensely competitive market and irrational market and also Indigo’s challenges as it continues its growth path. The results were announced along with the full year results, however we present an analysis only of the fourth quarter as it is reflective of certain trends in the market (a full year analysis …

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Impact of the new Pratt & Whitney GTF engine issues on IndiGo and Go Air

First Airbus A320neo with Pratt & Whitney PurePower PW1127G-JM Geared Turbo-Fan (GTF) engine. Photo courtesy Airbus.

The recent emergency airworthiness directive (EAD) covering the Pratt & Whitney PW1100G-JM geared turbo-fan (GTF) engine caught the industry by surprise. Aircraft maker Airbus followed the European Aviation Safety Agency (EASA) issued EAD, announcing a suspension of deliveries of A320neo and A321neo powered by the GTF engine. The airframer has also suspended taking delivery of new engines, and engine fitment …

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Analysis: Indigo third quarter FY2018 results. A leader in every way.

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

India’s largest domestic carrier, IndiGo, reported its third quarter results of the fiscal year 2017-2018 (Q3FY18) last week. The third quarter is the strongest of the fiscal year, and it was a yet another strong result coming on the back of a previously strong quarter. IndiGo Q3FY18 results snapshot with percentage comparisons to Q3FY17 • Revenues ₹6,449 crores (₹64.49 billion) …

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Analysis: Jet Airways first quarter FY2018 results. Several challenges.

Jet Airways Boeing 777-300ER VT-JEG performing flight 9W117 from London approaches Mumbai airport

Jet Airways reported results for the first quarter (Q1) of the fiscal year 2017-18 (FY2018 or FY18) yesterday. The results were a mixed bag and showed both areas of improvement and concern. Bangalore Aviation presents an analysis by an external industry professional as the editor of the site owns shares in the airline. The external analyst prefers to remain anonymous. …

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New Delhi Bangalore cheapest in world’s ‘Top 20’ busiest routes

An analysis by Bangalore Aviation of a report by website Routesonline shows New Delhi Bangalore is the lowest cost route among the world’s ‘Top 20’ busiest routes for July 2017. Delhi Bangalore most economical The New Delhi Bengaluru route cost an average base fare of ₹4,830 (approx $75.31) or ₹2.84 per kilometre for the 1,703 kilometre distance between the two …

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Analysis: Spicejet first quarter FY2018 results. Several items of concern.

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

Spicejet’s results for the first quarter of fiscal year 2017-18 were a mixed bag, and we find several items of concern. Bangalore Aviation presents an analysis of the numbers: Results snapshot (all figures in Indian Rupees) Revenues 2,068 crores Costs 1,714 crores EBITDAR 479 crores Profit before tax 177 crores Profit after tax 178 crores Revenue per available seat kilometre …

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Analysis: IndiGo first quarter FY2018 results and fleet, plans, and strategy

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

India’s largest domestic carrier, IndiGo, reported its first quarter results of the fiscal year 2017-2018 (Q1FY18) yesterday. It was a strong result but perhaps what was different this time, were details on its fleet, international expansion plans and strategic direction, the airline shared. Bangalore Aviation is the first to report on and analyse these comprehensive issues. IndiGo Q1FY18 results snapshot …

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Unconvinced by IndiGo’s bid for Air India

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

Indigo’s analyst call on 6th July was scheduled to allay investor concerns about the new direction the airline was taking after submitting the unsolicited bid for Air India. One of the founders admitted, that without numbers, it was like “going to a corporate board meeting in a swim suit” and we wholeheartedly agree. If anything it added to the confusion …

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Spicejet Q4FY17 results analysis

Spicejet Boeing 737-800WL VT-SGK at New Delhi airport.

Spicejet reported the fourth quarter of fiscal year 2016-2017 results on June 3, 2017, a Saturday, not a working day for the financial markets. The timing of the results announcement was as interesting as the results themselves. Overall, the results were below analyst expectations and are reflective of the intensely competitive fare and capacity environment in Indian aviation. Key financial …

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Runway capacity challenges at Delhi airport

Runway 28 at Indira Gandhi International Airport at night. Image copyright Vedant Agarwal.

New Delhi Indira Gandhi airport is looking to maximize efficiency of their runways via a series of measures. Bangalore Aviation has learned that the airport operator Delhi International Airport Limited (DIAL) is working towards achieving a runway service rate of 104 movements per hour. This rate will include optimised pilot performance, optimised ATC performance and high intensity runway operations. Yet, …

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