Analysis and Features

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 …

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 …

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 …

It is well known the aviation business is competitive, and India is probably the most difficult market to succeed in. While airlines are making handsome profits across the world, almost every Indian airline is facing financial issues. Leading the losses are national carrier Air India and private sector pioneer Jet Airways. Even the low-fare carriers are suffering in this era …

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 …

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 …

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 …

Aero India 2019 opened today at Yelahanka Air Force Station. The show which was inaugurated by the defence minister of India began with a series of flypasts, one of which was a missing man formation to commemorate Wing Commander Sahil Gandhi, the pilot who lost his life in the Surya Kiran crash yesterday. Innugural Flypast The show began with a …

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 …

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 …

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: …

As of this writing, there are 15 miners trapped inside an illegal mine in Meghalaya and rescue efforts have not quite seen the push that they require from government and citizens alike. This note is a call to the aviation community to come together and push for the rescue. On January 12th, before the break of dawn, 5 members of …

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 …

The potential of the Tatas acquiring the beleaguered Jet Airways, raises a lot of questions. Bangalore Aviation presents an operational analysis on where and why the acquisition makes sense and what it would need to go through. This analysis focusses on the Tatas acquiring Jet and merging it with Vistara, the brand of Tata SIA Airlines Limited, the joint-venture of …

SpiceJet, reported its second quarter results of the fiscal year 2018-19 (FY19) yesterday. Much like the results of other listed airlines, it was a loss for the quarter. SpiceJet Q2FY19 snapshot: Revenues ₹1,9104 crores (up 4%) Costs ₹2,299 crores (up 25%) EBITDAR (₹32.7) crores Profit before tax (PBT): loss of (₹396 crores) Revenue per available seat kilometre (RASK) ₹3.73 Cost per …

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 …

Indigo, reported its second quarter results of the fiscal year 2018-2019 (Q2FY19) this Wednesday. The result was a net loss of 652.1 crores and highlighted the challenges facing Indian aviation. Incidentally, this is the first time since its listing in the public markets Indigo reported a loss of 652.1 crores and it is fair to say that all airlines will …

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 …

The Ude Desh Ka Aaam Nagarik (UDAN) scheme launched in June 2016 has been hailed by the Government as a game changer. The intent of the scheme is to connect un-served and under-served airports across the country in an affordable manner consequently boosting connectivity. This is delivered via routes that are bid-for and awarded to airlines by the government including …