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 …
Read More »Satyendra Pandey
The value erosion of Jet Airways
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 …
Read More »Why is the Jet Airways stake sale not receiving any expressions of interest?
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 …
Read More »Analysis: The questions being asked regarding Jet Airways
Fleet – with a majority of the fleet grounded, what is the way forward? The fleet of 119 aircraft is now down to 40. The flying fleet includes eight A330s, nine Boeing777s and twenty three 737s. Luckily the majority of the wide-body fleet (the A330s + B777s) is owned by Jet Airways. Thus it can be utilized at a higher …
Read More »Etihad Airways 2018 results analysis
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 …
Read More »SpiceJet continues to leverage the UDAN policy and develop its network
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 …
Read More »Why Jet Airways is critical to Boeing’s India presence
Indian aviation continues to show tremendous aviation potential with growth forecast to be in the double digits for the next few years. Consensus forecasts indicate that India will be the third largest aviation market by 2026 after the United States and China. Both India and China will propel growth in the Asian region and consequently for the world economy. The Asian …
Read More »An overview of India’s commercial aviation fleet and orders – 2019
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 …
Read More »The Airbus 380: operations and outlook
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 …
Read More »Analysis: Europe’s largest regional airline to be sold
Flybe, Europe’s largest regional carrier which flies 53% of all fights within mainland Britain (excluding London) and also the largest scheduled airline by air traffic movements at 13 UK airports, recently announced a sale to a consortium. This in part is driven by the uncertainty emanating from Brexit and also other structural issues. Overview of Flybe Average fleet: 80 Cities: …
Read More »Opinion: Indigo’s A320 order reflects well crafted, deliberate, brilliant fleet strategy
100 in 2005; 180 in 2011; 250 with options for another 100, in 2014. That about sums up Indigo’s A320 Family orders on European airframer Airbus. The latest order of 250 A320neo’s or the (New Engine Option) has the industry abuzz. It is the largest single aircraft order by volume. IndiGo’s orders on Airbus stand at a whopping 530 aircraft. …
Read More »Freedoms of the Air: strategic aviation assets for a nation
This article is the last of the two part series on Air Services Agreements. In part 1, we highlighted aspects of bilateral air services agreements. This part highlights freedoms of the air which are equally important and are included in bilateral provisions. What are “Freedoms of the Air” Freedoms of the air or traffic rights are aviation agreements between two …
Read More »Pre-delivery payments financing: one method of funding airplane orders
The recent airshow at Dubai saw commercial airlines place aircraft orders in excess of $206 billion. This dollar value is greater than the total tax collection of the Indian Government for the last fiscal year. While the ordered airplanes start generating cash for airlines only after being put in to service, the airlines have to commence payments on these aircraft …
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