Page 8 - AAA NOVEMBER - DECEMBER 2016 Online Magazine
P. 8
COVER STORY ASIAN AIRLINES
costs mean that Singapore Airlines is better Company officials report that seat factors
prepared than most for the uncertainty that are very favourable and code share partners
is sure to prevail in 2017. Delta, Air France and KLM have delivered
higher quality traffic that has improved
Jet Airways revenues. Jet Airways has also been working
It has been a dramatic change for Indian hard to improve overall aircraft utilisation;
airlines which just a few years ago were its Boeing 737’s which are the backbone of
bleeding red ink on their balance sheets. its fleet, are displaying an improvement in
The state of matters has improved to a aircraft utilisation from 13 hours in the first
substantial extent now and profits are now quarter of fiscal 2016 to 13.6 hours in Q1 FY17.
being reported by all major Indian carriers. According to airline sources, “improving
One of India’s major full service carriers, aircraft utilisation from 11.2 hours to 13.6
Jet Airways reported a 124 percent jump in hours is the equivalent of freeing up the
operating profit in its first quarter of fiscal capacity of 12 aircraft without the attendant
2017 results to US$ 30 million (Rs.219 Crore). capital being tied down.” This is obviously
“What is important is the total CASK (cost beneficial for the airline as it is sweating its
per available seat kilometre) in the first assets better and reducing operational costs.
quarter of fiscal 2017 declined seven percent All of Jet Airways’ 64 Boeing 737-800s have
vs. CASK in first quarter of fiscal 2016 now been standardised to a configuration
due to lower fuel rates and cost reduction with 12 business class seats and 156 economy
initiatives undertaken by the company,” class seats. Jet Airways has also begun the
said Amit Agarwal CFO & CEO (Acting) Jet process of taking back aircraft that it had
OPPOSITE TOP: Air India will be Airways in a recent investor call. On the leased out to increase its own capacity for
last major Indian Airbus operator to back of positive operating and financial domestic and international flights. The first
receive A320neos
performance, the airline has used cash of six Boeing 777’s leased to Etihad was
OPPOSITE BOTTOM: Jet fuel prices generated from operations to reduce net returned in June, and the airline will add four
are only likely to go up after the debt by approximately US$53 million (Rs.358 more aircraft by Q3, while the final aircraft
historic lows in 2015 Crores) in the current quarter. will return to the airline in the last quarter
Jet Airways has also benefited from of 2017. Three A330-200s have also been
BELOW: Jet Airways has leased
three A330-200s to Turkish moved its operations to Amsterdam in March, leased out to Turkish Airlines till around
Airlines till 2020 a move that has worked in the airline’s favour. 2020. The Indian full service airline currently
8 ASIAN AIRLINES & AEROSPACE NOVEMBER / DECEMBER 2016 WWW.GBP.COM.SG/AAA
