Page 7 - AAA MARCH - APRIL 2016 Online Magazine

COVER STORY
TOP LEFT: Jetstar’s international
sectors have benefited from the
significant efficiency gains with
the operations of the Boeing 787
Dreamliner
TOP RIGHT: Indian LCC leader
IndiGo now expects to take
delivery of 24 Airbus A320neo
jetliners by March 2017. It has a
total of 430 NEOs on order
WWW.GBP.COM.SG/AAA
aisle bookings; Till date, full service and Whole-time Director of IndiGo, said, “With the
low-cost carriers in the region have placed resolution of the delivery of A320neos, IndiGo
orders for 3,140 CEO (current engine option) expects to continue with its strong operating
and NEO (new engine option) jetliners. Major performance, growth in profitability and
LCCs in the region such as AirAsia, Cebu healthy cash generation. India remains one of
Pacific, Indigo, JetStar, Lion Air, Tigerair and the most underpenetrated aviation markets
VietJetAir are all A320 Family operators. in the world.” He added, “The combination
Leasing companies in the region have added of our unique structural cost advantages,
another 659 orders. The entry into service of superb product quality and large fuel
the Boeing 787 ‘Dreamliner’ has also afforded efficient aircraft orders, would enable us to
long-haul LCCs the opportunity to operate deliver superior financial performance for
the highly efficient twin-engine wide-body a long period of time.” The airline racked up
jetliner profitably on sectors that have a quarterly pre-tax profit of Rs.9.33 billion
hitherto been the preserve of full-service for the December 2015 quarter and a pre-
airlines. According to the Boeing CMO, tax profit of Rs.20.18 billion for the first nine
“Southeast Asia is the world’s most active months of its fiscal year.
region for medium-haul low-cost carriers, IndiGo now has a fleet of 101 Airbus
which is a business model with strong growth A320s and has a total of 430 more A320 neos
potential.” on order. Indigo was to have inducted the first
Indian Low Cost Carrier (LCC) IndiGo, is of its new A320 neos by the end of December
now attaining the scale that will make it one 2015. However, in mid-December 2015, the
of the dominant LCCs in the region over the airline announced that it had been informed
next 10 years. A well run and profitable airline by Airbus, that the first NEO which was to
that has managed to thrive in India’s harsh have been delivered on the December 30th,
domestic aviation environment and one that had been delayed due to “industrial reasons.”
has its fleet renewal needs planned well into As of end December 2015, its average fleet
the future, Indigo will be a tough act to follow age was 4.2 years and would have been
for competitors in India. The LCC announced even lower, but for the airline being forced
on February 23rd, that commencing from to induct older aircraft that were leased to
March 2016, it will receive 24 A320neo meet its near-term demand due to delays
aircraft over the next 13 months (by March of in the delivery of the Airbus A320 Neo
2017) or two less than the 26 it was originally jetliners. In a call with analysts to discuss
slated to receive. It will take delivery of nine IndiGo’s December 2015 Quarterly Financial
A320neo aircraft between December 2016 Results, CEO Aditya Ghosh said, “To address
and March 2017. Aditya Ghosh, President and shortfall in capacity due to the delay in Neo
MARCH / APRIL 2016 ASIAN AIRLINES & AEROSPACE 7