Analysis and Features

National carrier Air India finds itself in a jumbo-sized problem. It has a huge excess of wide-body ‘jumbo’ and ‘mini-jumbo’ aircraft used for international flights, while facing a severe shortage of narrow body aircraft leaving it unable to capitalise on the increased winter demand and the additional demand shying away from SpiceJet due to the latter’s financial troubles. The current …

As the remains of the persons on board the ill fated Indonesia AirAsia flight QZ8501 tragedy are slowly recovered, it is sometimes distressing to hear the answers to the questions from the general populace on why did this tragedy occur. So we put together a small list of answers to frequently asked questions. We have tried to make it as …

SpiceJet has seen challenging times over the past 5 years. While numerous reasons can be cited for this ranging from network structure, fleet decisions, competition, ability to command a premium, management churn, market weakness and overall brand strength, the financial position of the airline as of today is quite challenging. Much is being reported about the possible funds infusion and/or …

The Indian skies are fairly busy. With seven airlines operating, one about to launch services, one in a bit of a challenge and six airline licenses granted by the Ministry of Civil aviation, increased competition is inevitable. Yet, if one looks at profitability, there is only one airline that has been consistently profitable. Which begs the question, are all the …

The last week has seen a flurry of reports on the troubles of Spicejet. Some accurate, some totally wrong, and many with a mixture of half truths that create more confusion, rather than inform the reader. Amid the media frenzy, the airline has issued three statements to clarify the situation from its point of view. Spicejet statement issued December 5, …

Based on the recent statement of the Indian Minister of State for civil aviation to the Indian parliament we have produced these two graphics showing the country-wise break-up of Air India’s passengers and revenue for the fiscal year ended March 31, 2014. Air India transported 15,831,554 passengers earning revenues of Rs 15,551.78 thus earning an average revenue of Rs 9,823.28 …

India recently implemented a liberalised tourist visa on arrival (TVOA) scheme to include nationals of 43 countries. While still short of the goal to include nationals of 180 countries, it is a step in the right direction. The TVOA is now issued as an electronic travel authorisation (ETA) that needs at least four days to process. For example, if you …

While SpiceJet’s chief operating officer Sanjiv Kapoor claims that recapitalisation is the final step of the turn-around process at the airline, there is little doubt SpiceJet desperately needs funds to continue its turn around. Aviation consultancy firm CAPA estimates around Rs 1,500 crore at the minimum. Why is this need for recapitalisation at this stage, and what benefits will it …

SpiceJet is very close to finding a solution to its distressed cash position. I estimate the airline should get funding within the next 30 days, and would not be surprised if something is announced within the coming fortnight. The clues to this conclusion come from the actions of the airline, its second quarter results and the public statements of the …

Jet Airways, India’s largest private airline recently announced results for the second quarter (Q2) and the half-year (1H) for fiscal 2014~2015. The results were the first after a joint announcement with 24% stake holder Etihad Airways PJSC about the airline ceasing operations of its low cost JetKonnect brand exiting the segment. The Jet Group operates two airline operator licenses. 9W …

India’s largest domestic airline prides itself on being punctual. It’s tagline “on-time is a beautiful thing” describes the core pillar that the air traveller wants today, predictability. Punctuality has become part of the airline’s DNA. The airline has adopted processes and equipment to meet its punctuality goals. For example IndiGo slavishly closes its counters exactly 45 minutes before a flight’s …

For the better part of this year, India has suffered the ignominy of being one of only 11 countries relegated to Category 2 status by the United States Federal Aviation Administration (FAA) as its safety oversight regime did not meet international standards. The relegation dealt a serious dent in the operations of India’s airlines by a freeze on their US …

One of the most regressive pieces of policy in Indian commercial aviation is the ‘5/20 rule‘ which requires Indian carriers to fly for a minimum of five years and have a fleet of 20 aircraft before they can operate overseas routes. At a time when the Indian economy was growing, and air traffic rising exponentially, this rule held back Indian …

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. …

A confusion exists on the website of AirAsia with regards to its ‘Fly-Thru’ connectivity service on flights to and from Bangalore. While the flight schedules page of the website offers the connecting service between Bangalore and domestic Malaysian destinations like Penang, Langkawi, Denpesar-Bali, to international destinations like Singapore, Sydney, Perth, and Manila, the booking page does not allow booking of …

[bsu_quote cite=”US President Ronald Reagan, August 15, 1986″] If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.[/bsu_quote] Reagan’s critique on government’s view of the economy can be applied to Indian aviation and the remote connectivity policy or route dispersal guidelines (often referred to as RDGs) implemented by the Ministry of Civil …

When it comes to airlines, Air India seems to always be at the receiving end. A fear of saying anything leaves the corporate communications department uncommunicative, making the national carrier the target of speculation. Add to this, naive at best, slip-shod at worst, reporting in the mainstream Indian media, many a time lacking the most basic of common sense, and …

Continuing our analysis in to national carrier Air India’s international operations which loses money on all but two flights, yesterday we published part 1 of the three part analysis which focussed on the numbers, today’s analysis comes from Bangalore Aviation guest analyst and former co-author Vinay Bhaskara. Vinay’s strength is finance, and he focusses on the costs of Air India. …