Showing posts with label SpiceJet. Show all posts
Showing posts with label SpiceJet. Show all posts
Tuesday, 13 November 2012
Friday, 2 November 2012
Thursday, 18 October 2012
Thursday, 4 October 2012
Wednesday, 5 September 2012
Friday, 17 August 2012
Thursday, 9 August 2012
Wednesday, 25 July 2012
SpiceJet Fiscal Year 11-12 Financial Analysis - Too much growth and high fuel prices offset strong cost discipline Wednesday, July 25, 2012 by Vinay Bhaskara
As with all of the Indian airlines, Delhi based low cost carrier SpiceJet faced disappointing financial results in the fourth quarter and full year of fiscal year 2012, posting a net loss of Rs. 605.8 Crore for FY 11-12 and Rs. 249.2 for Q4. After large net losses at India’s two other publicly traded carriers Kingfisher and Jet Airways, SpiceJet’s results only acted as a reaffirmation that the economics of the Indian airline industry are very much broken.
Click to read on:
http://www.bangaloreaviation.com/2012/07/spicejet-fiscal-year-11-12-financial.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BangaloreAviation+%28Bangalore+Aviation%29
Click to read on:
http://www.bangaloreaviation.com/2012/07/spicejet-fiscal-year-11-12-financial.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BangaloreAviation+%28Bangalore+Aviation%29
Wednesday, 11 July 2012
Special Report: Jet Airways 2012 Financial Analysis and 2013 Outlook in Bangalore Aviation on Wednesday, July 11, 2012 by Vinay Bhaskara
Jet Airways reported a large net pre-tax loss (Jet Airways and JetLite combined) of Rs. 1,331 Crore for fiscal year 2012, a very disappointing result. Revenue and passenger growth were robust as usual at 14.8% and 16.3% respectively. But the carrier's net margin of -8.5% is indicative of tangible flaws in the business, and goes beyond the explanations of higher fuel prices and rupee depreciation given by Jet, though these factors did play a major role.
Click to read on
http://www.bangaloreaviation.com/2012/07/special-report-jet-airways-2012.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BangaloreAviation+%28Bangalore+Aviation%29
Click to read on
http://www.bangaloreaviation.com/2012/07/special-report-jet-airways-2012.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BangaloreAviation+%28Bangalore+Aviation%29
Wednesday, 20 June 2012
How India's airline market lost its way by Vinay Bhaskara
When India’s Jet Airways, Kingfisher Airlines, and SpiceJet all recently reported large net losses for Fiscal Year 2012 on the heels of Kingfisher’s steep downsizing in February and March, it came as a surprise to many people around the globe who considered India, and its burgeoning airline industry, one of the world’s greatest success stories. But as with India’s economic growth story (GDP growth in the first quarter of 2012 was a (relatively by Indian standards) anemic 5.3%), beneath the shiny veneer lies a tottering industry that must take drastic steps in order to ensure its future. But before one can explore the solutions to these issues, it is helpful to look at what exactly created the problems.
Any attempt to assign the collective failure in the Indian airline market to one specific reason is highly disingenuous; it took a special confluence of factors to create this mess. Some of the major factors are outlined below.
Click to read onhttp://www.bangaloreaviation.com/2012/06/how-indias-airline-market-lost-its-way.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BangaloreAviation+%28Bangalore+Aviation%29
Thanks Bangalore Aviation
Monday, 4 June 2012
Nine months on, SpiceJet loves its Bombardier Q400 aircraft
Just a little over nine months ago, Indian low fare carrier SpiceJet took delivery of its first Bombardier Q400 turbo-prop on August 26th last year, and commenced commercial flights with the aircraft on September 21st.
In a recent internal publication, aircraft manufacturer Bombardier, claimed a 99.8% despatch reliability for the Q400 at SpiceJet, an enviable number considering the high and hot conditions the aircraft operates in.
Click below for the rest. Thanks Bangalore Aviation
http://www.bangaloreaviation.com/2012/06/nine-months-on-spicejet-loves-its.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BangaloreAviation+%28Bangalore+Aviation%29
Monday, 23 April 2012
ATF Imports - more sops to airlines & more skin balm to a burns victim - Archie D'Souza
Airlines need brave lenders
Editorial Deccan Chronicle April 22, 2012
Since the proof of the pudding is in the eating, one will have to wait to see how helpful is the lifeline thrown by the government to cash-strapped airlines. The government has opened a one-year window for external commercial borrowings of up to $1 billion, with an individual airline limit of $300 million, for working capital requirements. In normal circumstances, the ECB route is preferred because it is a quicker and cheaper way of getting loans. But these are not normal times. Almost all airlines are running huge losses.
The overall debt of airlines is Rs 70,000 crore, of which Air India’s is Rs 40,000 crore. The lenders would have to be very brave to lend to such clients. It would have been better if the government had permitted FDI in domestic airlines, a move scuttled by some airlines which have political clout and fear competition.
Equally distressing is the helpline that permitted airlines to import aviation turbine fuel (ATF). It sounds like a great idea as ATF is 45 per cent of the total cost of running an airline because of high state taxes. It would have been easier for the states to pare their taxes. But then, who likes to give away money?
My comments
One more opinion from the school of thought that says FDI is stalled because of pressure from certain airlines – “a move scuttled by some airlines which have political clout and fear competition.” I do not think that this is the actual reason. I feel this is happening to protect the interest of the only public sector airline. I have never really been able to understand the politics of it but such protection to the public sector is definitely bad economics. If AI is not able to fend for itself it is best that it is wound up. I’m not going into the merits and demerits of this. I’d keep this discussion confined to two points – one, FDI and two, what purpose do these sops serve.
Let us look at the sops first. I’ve already stated my opinion on ECBs. (see my post entitled FDI in Civil Aviation – how it will help, in the same blog). Now, I’ll speak about import of ATF. According to reports appearing in papers on APR 22, 2012, Kingfisher, SpiceJet and IndiGo gave been permitted to directly import jet fuel. The quantity expected to be imported is 13 lack kl at a cost of about 5730 crores. If this policy results in a saving to the airlines concerned, then there’s something drastically wrong with our fuel pricing policy. Remember, the costs involved are freight plus storage. If that is less than buying fuel locally, the government needs to relook at the taxes on fuel, or at least ATF. Fuel marketing & refining companies, need in turn, to relook at the pricing mechanism.
If all the airlines decide to import ATF, the local refiners will not have a market left, rendering useless infrastructure created for the purpose. The exchequer too – centre & states, will lose out on tax revenues. So where does this place us? To quote the editorial, “It would have been easier for the states to pare their taxes.”
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