Analysis and Features

Aero India 2021 began on the 3rd of February and on display were three of the Indian armed forces latest additions, the Dassault Rafale EH, Boeing CH-47F Chinook and the Boeing AH-64E Apache. Dassault Rafale EH There are five Dassault Rafales at the show, these aircraft are part of the 36 aircraft order placed by the Indian government in 2015. …

by Sanjiv Kapoor Former COO, Spicejet and former CSCO of Vistara I keep getting questions on testing and quarantine requirements for those returning to India on the scheduled “air bubble” flights from places like the US, UK, EU, and UAE, as well as on the special ad-hoc “Vande Bharat Mission” or VBM flights that operate from time to time from …

The Q2FY21 results of India’s second-largest low-cost carrier point to the continued fragility of the airline’s financial health driven by large accumulated losses, questionable revenue recognition policy and uncertainty surrounding the resumption of international airline operations currently suspended on account of the pandemic. SpiceJet Q2FY21 results snapshot (in INR) comparisons to Q2FY20 ● Revenues ₹1,305 crores (down by 54%) ● …

by Sanjiv Kapoor Former COO, Spicejet and former CSCO of Vistara This guide has been updated. Please click here to view the updated guide. I keep getting questions on testing and quarantine requirements for those returning to India on the scheduled “air bubble” flights from places like the US, UK, EU, and UAE, as well as on the special ad-hoc …

The Corona pandemic continues to impact traffic volumes across the globes. Airports that were once bursting at the seams are now eerily silent while many of the terminals remain empty. Runways that would count seconds until the next arrival and departure now wait longingly for aircraft to alight. The buzz of jet engines has been interspersed with large periods of silence. …

After a long delay, India’s second-largest low-cost carrier reported its Q4FY20 results yesterday. Despite strong revenue growth, the airline posted a loss of ₹807 on account of increases in fuel costs, decline of the rupee and the impact of COVID-19 pandemic. The accumulated losses and increase in liabilities have deteriorated the financial health of the airline. SpiceJet Q4FY20 results snapshot …

India’s largest airline reported its first-quarter results yesterday. If Q4FY20 losses of 870 crores were of concern, Q1FY21 has only made this much worse. The loss at 2,844 crores was three times the loss of the previous quarter. This was in the most part not surprising given that much of the quarter had aircraft sitting on the ground due to …

India’s largest airline reported its results yesterday. What was surprising was the quantum of the loss at 870.8 crores. Indigo attributes this to the impact of COVID-19, coupled with the weakness of the rupee, which has resulted in a spike in costs. Indeed, it is very telling that for an airline that is so focused and disciplined, there has been …

As Boeing struggles to get through the coronavirus crisis coupled with its own 737 MAX crisis, the Boeing 757 is an aircraft that has once again emerged as a hot topic of conversation. Particularly due to speculation on whether Boeing will be forced to revive the New Midsize Airplane (NMA). Initially designed as a replacement for the tri-engine 727, it …

In a time where political leaders are appealing to citizens to do the “right things”, where some businesses highlight values of profit over purpose and where all need to come together to tide over this crisis collectively, the actions of airlines and the lack of accountability have left many perplexed. Specifically: the non-refunding of passenger monies – an unfair and …

As the airline industry grapples with the largest demand shock in history, India’s skies are closed to all passenger traffic. 650 aircraft are grounded, cash-flows have dried up and pay-cuts and layoffs are the new normal. It does not help that the corona crisis came at a time where the country was also dealing with a banking crisis. Add to …

With the rapid spread of the coronavirus pandemic, airlines have experienced the largest demand shock in history. Overnight demand has evaporated and each passing day brings with it news of airlines grounding entire fleets. International markets are shut and for India’s airlines, contrary to the narrative that domestic demand will help mitigate the impact, the situation is actually worse. This …

As of this writing, forty airlines across the globe have announced a complete grounding of their fleet. Others ranging from Emirates and Lufthansa to AirAsia, Qantas and AirFrance-KLM are cutting capacity to as high as 90%. Massive layoffs, bankruptcies and airline shutdowns are likely. All this havoc driven by a particle that is one-billionth of a meter (a nanometer) in …

As the Coronavirus impact spreads and airlines prepare to brace for impact, the airline industry is facing its gravest challenge yet. Casualties have started. FlyBe – the largest regional airline in the UK has already ceased operations after an unsuccessful buyout and attempted turnaround. Other airline failures are all but certain. Forecasts from various industry quarters including IATA estimate a …

As the coronavirus continues to spread it is wreaking havoc on the airline industry. With 95,484 confirmed cases and 3,286 deaths, a vaccine and cure are yet to be found. Each day new cases are reported and air travel continues to be impacted. Forecasts from various industry quarters including IATA estimate a drastic decline in demand. Losses emanating from this …

As the government of India attempts to privatise Air India, media reports suggest the second time around is seeing renewed interest. Reports also indicate the government is keen the Air India brand is retained post any sale. One can see why. The airline is still India’s national carrier and the brand has a high recall value and familiarity quotient. Despite …

February 14th saw SpiceJet report its third-quarter results. The airline reported a profit of INR 78.2 crores but we believe the results warrant closer examination. This because of the Boeing 737MAX grounding and the fact that compensation that has been recorded but not yet received by SpiceJet significantly contributed to this result. Additionally, in looking at the operational numbers, it …

Earlier this week, the US government began implementing new rules for travel from China in the wake of the coronavirus outbreak. The US has already issued a level 4 advisory urging residents to avoid outbound travel to China. Additionally, flights from China will be contained to seven airports (New York JFK, Chicago O’Hare, San Francisco, Seattle, Atlanta, Honolulu, and Los …

Monday, January 27th was quite a newsday for Indian aviation. In what is becoming a tale of two airlines, while the national carrier came out with its Preliminary Information Memorandum looking for someone to take over 23,286 crores of debt and 8556 crores of losses (for FY19) the other airline Indigo reported profits of 496 crores with another 20,000 crores …