Page 29 - AAA OCTOBER - DECEMBER 2019 Online Magazine
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[ AIRLINES ]
        the number three is the transient vibration, which happens due to
        the nature of this engine. And all regulatory authorities outside
        India have a requirement, if it’s below a certain threshold, there is
        no maintenance activity required. We, however, have taken a more
        cautious approach and we are fulfilling that.’

        He states that the in-flight shutdown rates with the engine has
        come down to 0.01 per thousand engine flight hours. “ However,
        there is one limitation that I want to mention is the extended range
        operations if you have an airport outside India. Right now, every   vide our operators with the logical next step in
        airport must be reachable on our flight track within 60 minutes.   cost efficiency, passenger comfort and market
        For neo aircraft, we can’t use extended range, which goes up to   coverage,” said Christian Scherer, Airbus Chief
        120 minutes. So, our international operation will be having a more   Commercial Officer.
        restricted route, which we are doing,’ said on the call.
                                                                       IndiGo was one of our early launch customers
        Despite these troubles, the LCC placed a firm order for 300    for the A320neo and is now the  biggest cus-
        A320neo Family aircraft in late October. IndiGo will acquire a mix of   tomer for the single-aisle jetliner.  The LCC took
        A320neo, A321neo and A321XLR aircraft as part of the latest order,   delivery of its first A320neo in March 2016 and
        which takes its total orders with Airbus to 730. The choice of engine   today has a fleet of 97 A320neos, 7 A321neo,
        manufacturer for this order will be made at a later date. IndiGo is   128 A320ceos  and 22 ATRs. IndiGo will start
        the first Indian airline to order the A321XLR, unprecedented extra   retiring its A320ceos from 2020 and by 2022,
        range of up to 4,700nm (with 30 percent lower fuel burn per seat   IndiGo’s A320neo Family fleet overtake the
        compared with previous generation competitor jets). “IndiGo has   A320ceo fleet. IndiGo also received its first
        brilliantly demonstrated the relevance of the A320neo for leading   A321neo in October and the aircraft was also
        low cost operators, and the A321neo - and now the A321XLR - pro-  Airbus’ 1,000th A320neo family aircraft deliv-
                                                                       ery. IndiGo’s A321neos will be powered by Pratt
                                                                       & Whitney PW1133G turbofan engines. The air-
                                                                       craft are configured in a 222-seat layout. IndiGo
                                                                       has contracted aircraft lessor CDB Aviation
                                                                       for nine Airbus A321neo jetliners. CDB Aviation
                                                                       anticipates the remaining eight aircraft to be
                                                                       handed over by the end of January 2020.


                                                                       lndiGo reported a net loss of Rs 10,620 million
                                                                       for the quarter ended Sept 2019.  ‘The lower
                                                                       profitability was mainly contributed by mark
                                                                       to market loss due to capitalization of operat-
                                                                       ing lease liabilities, re-assessment of accrual
                                                                       estimates for future maintenance cost and one-
                                                                       time adjustment owing to adoption of lower tax
                                                                       rates’ Aditya Pande IndiGo’s new CFO informed
                                                                       during the conference call. IndiGo extended the
                                                                       leases of most of its existing A320ceo Family
                                                                       jetliners beginning 2016 and also got around 50
                                                                       used aircraft from the secondary market. The
                                                                       engines of these older aircraft had to undergo
                                                                       their second shop visits which are significantly
                                                                       more expensive than first shop visits and these
                                                                       created maintenance cost spikes for the
                                                                       company. IndiGo is India’s largest passenger
                                                                       airline with a market share of 48.2 per cent as
                                                                       of September, 2019. It also has a 39% market
                                                                       share in the domestic cargo business in India.
                                                                       The LCC operates to 60 domestic destinations
                                                                       and 23 international destinations

                                                                       SpiceJet in Growth Mode
                                                                       SpiceJet  appears  to  be  far  away  from  the
                                                                       problematic days in 2015, when the airline was


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