Thursday, June 30, 2011

Global air passenger traffic up 7 percent in May

NEW DELHI: The global airlines association on Thursday reported an increase of 6.8 percent in international passenger traffic for May this year, compared to the like period of 2010.

According to the International Air Transport Association (IATA), the positive passenger growth in May has helped in reducing pressure on profits in the high fuel prices environment, but freight segment has continued to be in a slump, with a downfall of 4 percent.

"This (passenger traffic) is 4 percent higher than the beginning of the year, whereas freight traffic has showed a drop of 4 percent against the post-recession peak of the re-stocking cycle in May 2010," IATA said in a statement.

The statement said that India's domestic demand was robust at 13.8 percent in May as compared to previous-year levels with a capacity expansion 19.9 percent.

Meanwhile, IATA's director general and chief executive Giovanni Bisignani said he was confident that the airline industry will make profit for 2011, but cautioned that there were grave risks associated with political unrest in the Middle East and the European currency crisis.

"We still expect the industry to make $4 billion this year. That is a pathetic 0.7 percent margin and another shock could alter the industry's fortunes dramatically," said Bisignani.
Source:India Times

Monday, June 27, 2011

Jet, Kingfisher's fund raising plans thwarted

Volatile market conditions are likely to thwart fund raising plans of the airline sector in FY12, say analysts tracking the industry. Country’s largest private sector airline Jet Airways has once again put on hold its plans to raise USD 400 million via qualified institutional placement (QIP) due to spiralling fuel cost which is denting their profits. Its archrival Kingfisher Airlines too, is also not in a hurry to issue global depository receipts (GDR) to raise upto USD 300 million, mainly on account of slump in its shares on the Bombay Stock Exchange amongst other reasons.

Compared to a year ago period, airlines stocks are down over 50% on the BSE. Jet stock is now being traded at Rs 472 compared to Rs 971, Kingfisher has come down to Rs 39 from Rs 97, SpiceJet has also plunged to Rs 34 from Rs 91.

Naresh Goyal, chairman, Jet Airways and Vijay Mallya, chairman Kingfisher Airlines, both have recently indicated that it’s not the right time to go for a fund raising exercise. While Goyal said that the current market condition is not suitable for going for a QIP placement, Mallya has said that he has not set a deadline for the GDR issue.
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Wednesday, June 22, 2011

Fly cheap to Singapore

KOLKATA: Soon flying down to Singapore from the city may get cheaper than to Mumbai and Delhi, or even Bangalore. The Singapore Airlines is working on a plan to introduce a low-cost module, and a Kolkata-connection is very much on the cards.

Singapore Airlines chief executive Goh Choon Phong said the decision had been unanimously taken at a board meeting at the airline headquarters. While its primary market will be key destinations in South-East Asia, it is also eyeing three cities in India, including Kolkata.

Indian LCC Air India Express operates to Singapore four days-a-week. Sources said this, coupled with a steady loss of passengers to other LCCs like Air Asia and China Eastern, had led to Singapore Airlines considering a low-cost flight between Kolkata and Singapore.

"Once Air Asia or China Eastern picks up a passenger who has to travel beyond these destinations, it is a Thai or Chinese carrier that benefits. To retain onward customers and attract budget tourists to Singapore, an LCC carrier is critical," an aviation industry expert said.

Though a firm decision is yet to be taken, an airline source said Kolkata was very much on the radar. He further added that it would compensate for the loss of seats on the parent service. Last September, Singapore Airlines had pared its flights to Singapore City and Kolkata from six days-a-week to four days. It also altered the aircraft from Boeing 777-200 aircraft with an Airbus 330 aircraft that led to a slash in economy class seats from 293 to 25
Source: Times of India

Thursday, June 9, 2011

SpiceJet to begin Tier-2 and 3 regional service soon

MUMBAI: Private air-carrier SpiceJet Airlines will begin regional operations from Tier-2 and 3 cities like Vijayawada, Tirupati, Mysore, Mangalore, Madurai, Nagpur and Indore from mid-July using the Bombardier Q400 Next Gen turboprop aircraft, a top company official said.

"We have selected Hyderabad Airport as the first base for our operations. We will be flying from Hyderabad to Tier-2 and Tier-3 cities in South and Central India," Spicejet Chief Commercial Officer Samyukth Sridharan told PTI here.

Deliveries of the Q400 aircraft start in the last week of this month, he said.

"We expect the first aircraft to enter into service and become operational by mid-July. The delivery of the first 15 Bombardier Q400 aircraft starts this month-end and will be completed by June, 2012 - over a period of 13 months. The order also has an option to purchase 15 additional aircraft. If this option is exercised by SpiceJet, there would be 15 more deliveries over a period of 24-months," Sridharan said.

The Bombardier Q400 NextGen turboprop aircraft, which can seat 78 passengers, was chosen for SpiceJet's regional operations because it is designed for short-haul routes and has a reputation of being fast, quiet and fuel-efficient.

The aircraft has a unique ANVS (Active Noise and Vibration Suppression) system which renders noise and vibration levels to minimal levels. It also delivers the lowest operating costs per seat in the industry, with a 30 per cent to 50 per cent advantage over other aircraft on short-haul routes, he said.
Source: Economic Times

Wednesday, June 1, 2011

Jet, Kingfisher, Spicejet rise on ATF price cut

Shares of Jet Airways, Kingfisher Airlines, Spicejet have surged on ATF price cut.

Shares of Jet Airways is currently trading at Rs. 459, up Rs11.45 or 3%. The stock has hit a high of Rs. 461 and a low of Rs. 450.

Kingfisher Airlines shares is currently trading at Rs. 43, up Rs1.05. The stock has hit a high of Rs. 43.80 and a low of Rs. 43.

Shares of Spicejet Ltd is currently trading at Rs41, up Rs1.20. The stock has hit a high of Rs42 and a low of Rs41.
Source: India Infoline