Page 8 - AAA MARCH - APRIL 2016 Online Magazine

COVER STORY

deliveries we have been working on other crore for Q3 FY16, was an improvement of
options including leasing more used aircraft INR 513.42 crore over the net loss of INR
to mitigate some of the capacity shortfall. 275.03 crore for the same quarter last year
To date we have been successful in signing This is the fourth consecutive profitable
up short-term leases for 22 used aircraft quarter for SpiceJet since December 2014.
including 17 which we have already received The struggling airline was helped back to
at terms that are acceptable to IndiGo.” The recovery by lower fuel costs and reported,
airline has already secured financing for the “The fuel cost per ASKM (Available Seat
first 35 Neos, via on sale and lease back up Kilometer) for the quarter has declined to
till third quarter of 2017. Out of the 22 aircraft 1.07 from 1.59 last year, a decline of 33%.”
to be acquired on lease (including some from Substantial benefits were also accrued on
Tiger Air), IndiGo has taken delivery of 17 the back of renegotiated contracts with
aircraft. Out of the remaining five aircraft, suppliers and vendors. “SpiceJet was back
three are scheduled to be delivered in the to near normal operations this quarter. While
first quarter of this year (quarter ending the margins remain slightly depressed due
March) and two aircrafts would be delivered to wet lease operations, the Chennai floods
in the quarter ending September. and exchange losses, we are happy with the
Indian LCC SpiceJet has also managed progress we have made so far,” said Ajay
to pull itself back from the brink in just a Singh, Chairman and Managing Director, The combination of outstanding
year and in January announced that it had SpiceJet Limited. In a top management operating economics and
comfortable interiors have made
recorded the highest ever quarterly profit change, its CEO Sanjiv Kapoor, has joined the the 787 the jetliner of choice of
in its history. The net profit of INR 238.40 TATA-SIA Joint Venture (JV) airline Vistara as long-haul LCCs.

8 ASIAN AIRLINES & AEROSPACE MARCH / APRIL 2016 WWW.GBP.COM.SG/AAA