AirAsia X orders 25 additional A330-300

by Devesh Agarwal

AirAsia X, the long haul, low fare airline affiliate of the AirAsia Group has placed an order for 25 more A330-300s with European airframer Airbus.

The order is valued at US$ 6 billion at list prices. This order increases AirAsia X’s total orders to 57 A330-300s, which are scheduled to be completed by 2019. Fifty-one direct on Airbus and six to be leased from the International Lease Finance Corporation (ILFC).

(L-R) John Leahy, Chief Operating  Officer, Customers, Airbus, Fabrice Brégier, Chief Executive Officer, Airbus, Kiran Rao, EVP Sales, Strategy and Marketing, Airbus, Tan Sri Tony Fernandes, Co-Founder and Director of AirAsia X, Jerome Causse, Sales Manager, Airbus and Azran Osman- Rani, Chief Executive Officer of AirAsia X. AirAsia X image.

AirAsia X will start taking delivery of its newly-ordered A330-300s in 2015. It is expected to be deployed on the carrier's Asia-Pacific network. However, the new order includes the latest extended range versions of the A330-300, providing the carrier with the ability to offer non-stop service to destinations in Europe or one-stop service to the US.

AirAsia X currently operates 15 A330-300s on services linking its Kuala Lumpur base to 18 destinations in Asia, Australia and Saudi Arabia. In addition to A330s, the carrier also has 10 A350-XWB aircraft on order for future delivery. The AirAsia Group is one of Airbus’s largest airline customers in the world. In total, it has ordered 536 Airbus aircraft including 475 A320 Family single aisle aircraft for AirAsia’s short haul operations based out of Kuala Lumpur, Bangkok, Jakarta and Manila, plus the 51 A330s and 10 A350 XWBs for AirAsia X.

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AirAsia to use Bangalore as its India hub?

by Devesh Agarwal

AirAsia is close to signing an agreement to use Bangalore as its hub for India operations, Bhaskar Bodapati, Senior Director of the Bengaluru Airport International Limited (BIAL) revealed in Saturday's Deccan Herald.

This will be a coup for the company, especially after the loss of the financially defunct Kingfisher Airlines.

Historically, Bangalore has been ignored by India's domestic airlines for their international operations, who chose to go to Chennai, thus leaving the field wide open for foreign carriers like Emirates, Lufthansa, Singapore Airlines, and Air France from the HAL airport days, and DragonAir, Qatar Airways, Etihad and others since 2008 when the new international airport opened.

Air India operates just one flight to Dubai, via Goa, and SpiceJet has just commenced a flight to Bangkok from the city. Jet Airways briefly operated a flight to Brussels which is its scissor hub for flights on to the east coast of north America, but it was shut within months.

Both BIAL and AirAsia have not commented on this story.

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Lion Air group receives its 100th Boeing 737 Next-Gen aircraft

by Devesh Agarwal

Traditional Indonesian dance graces the ceremony

US airframer Boeing has delivered to Lion Air a new Boeing 737-900ER, marking the delivery of the 100th Boeing 737NG to the Lion Group, Indonesia's largest airline group.

It is not surprising that the delivered aircraft was the largest in the Boeing 737 Next-Generation family. Lion Air, which was established in 1999, was also the launch customer for the 737-900ER.

In February 2012, the carrier finalised the world's largest jetliner order, at the time, for 201 737 MAXs and 29 Next-Generation 737-900ERs (extended range), worth $22.4 billion at list prices. Lion Air will also be the launch customer of the 737 MAX 9, which will be the new engine upgrade of the 737-900ER.

Lion Air mainline currently operates 67 737-900ERs and 19 737-800s. The group's other Next-Generation 737s are allocated to its full-service carrier in Indonesia, Batik Air, and to its overseas affiliates: Malindo Air in Malaysia and Thai Lion Air, a new carrier based in Bangkok.

Lion Air is engaged in a bitter rivalry with Malaysia's low cost group AirAsia headed by Tony Fernandes. Lion Air decided to launch Malindo in Malaysia, after Tony Fernandes moved to Indonesia to focus on the growth of Indonesia AirAsia. AirAsia is also in the process of launching a new carrier in India, AirAsia India.

The Lion Group's 100th airplane, a 737-900ER (Extended Range) features a special livery commemorating the delivery. Lion Air's 900s are configured in an all economy 213 seat layout.

The Lion Air Group operates an extensive route network in Indonesia and also serves international destinations. In terms of domestic, Lion mainline and subsidiary Wings Air serve 76 destinations in Indonesia, giving the group the largest domestic network in Indonesia. Lion Air mainline has 580 flights a day and Wings Air has 180 flights per day.

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AirAsia shifts operations to New International Terminal Chennai (NITC)

By BA Staff

AirAsia is shifting its operations in Chennai, from Anna International Terminal, Chennai Airport to the New International Terminal, Chennai (NITC) effective from 21 October 2013.

From the effective date onwards, flight departure from Chennai will be based and operated at the NITC. Arrivals will be at the old terminal.

AirAsia guests with flights from the NITC are advised to arrive early at the terminal—at least three hours prior to departure—in order to familiarize themselves with the new layout and processes.

The airline’s ground personnel will be at hand to help guests navigate through the new airport.

The state-of-the-art integrated terminal was built at an investment of over Rs. 2,000 crore and could handle 4 million passengers annually. It has a well equipped five-level structure (basement, arrival, mezzanine, departure, VIP levels) with an area spanning 6,51,300 sq. ft and 52 check-in counters.

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AirAsia introduces new flexi-fare service 'Hi-Flyer'

By BA Staff

AirAsia has introduced ‘Hi-Flyer’, a new flexi-fare service which offers guests greater convenience, flexibility and added benefits while travelling with both AirAsia and AirAsia X.

• Complimentary 20kg check-in baggage allocation
• Complimentary ‘Pick-A-Seat’ for both Standard & Hot Seats (Hot Seats are subject to availability)
• Priority Boarding
• Up to 2x flight change - for flights up to 2 hours before the scheduled time of departure without any change fee. Fare difference will apply.
• Earn 2x BIG Points as a Hi-Flyer

Siegtraund Teh, Group Chief Commercial Officer of AirAsia said:

“Many different groups of people fly with AirAsia, and we would like to ensure that our guests are offered the best options that cater to their needs. Hi-Flyer is specifically tailored to the business traveller group, who are constantly on the go and  benefits such as complimentary 20kg check-in baggage, complimentary seat selection, priority boarding and flexibility to change flights up to 2 hours before their scheduled departure will be a great convenience factor. Business travellers make up a significant portion of our guests’ profile and this new product offering will further add value to their travel experience with AirAsia.”

‘Hi-Flyer’ is available throughout all flights for AirAsia Malaysia (flight code AK), Thai AirAsia (flight code FD), AirAsia Indonesia (flight code QZ), AirAsia Zest (Flight Code Z2 and PQ) and AirAsia X (flight code D7).

Guests who have booked regular promo fares can easily upgrade to ‘Hi-Flyer’ fares by logging onto to the AirAsia website and modify their flights through the ‘Manage My Booking’ option, and guests will only need to pay the fare difference after selecting the ‘Hi-Flyer’ flexi-fare.

Apart from the value-added services, AirAsia guests who are also members of the AirAsia BIG Global Loyalty Programme are able to earn 2x BIG Points when they book the ‘Hi-Flyer’ flexi-fare.

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AirAsia India granted no objection certificate

By BA Staff

AirAsia India today announced that the airline has been granted the no objection certificate by the Ministry of Civil Aviation and will begin the process of obtaining an Air Operating Permit and prepare to kick-start its operations.

AirAsia submitted a request to start a joint venture to begin AirAsia India earlier this year, partnering Tata Sons Limited and Mr. Arun Bathia of Telestra Tradeplace Pvt. Ltd., and was granted a formal approval by the Foreign Investment Promotion Board (“FIPB”) of India two months later in April.

 Mittu Chandilya, Chief Executive Officer of AirAsia India said:

“We are very thankful to the Ministry of Civil Aviation for granting the no objection certificate to us so quickly. This is the fastest an NOC has been granted and with this, we will focus on obtaining the Air Operating Permit.  We will continue with our preparations and get ourselves ready for take-off once the Air Operating Permit is acquired and we look forward towards being one of the dynamic contributors to the development of the Indian aviation industry.”

AirAsia India is confident that it will be able to replicate the success of its counterparts in Malaysia, Thailand, and Indonesia; and enabling people to fly affordably through superior operational performance by emphasizing a focused and disciplined cost structure will tremendously benefit the Indian consumer. Currently, AirAsia India has a fleet of three Airbus A320 aircraft and over 200 members of staff.

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Vijay Gopalan named as Chief Financial Officer for AirAsia India

by BA Staff

AirAsia A320 9M-AHS at Penang airport.

AirAsia has appointed Vijay Gopalan as the Chief Financial Officer for AirAsia India.

Vijay is a Chartered Accountant with over a decade’s experience from Chennai as well as a holder of Advanced Diploma in Marketing and Sales from the National Institute of Sales. Prior to AirAsia, Vijay was attached to the Compass Group India, as well as Ernst & Young and has worked in the United States and the United Kingdom with experiences in various industries including oil and gas, as well as hospitality. He was an All India rank holder in the CA entrance examination. He has also had a stint in consulting, along with corporate soft skills training.

Apart from regular finance duties, Vijay is also a keen academician. He was a guest faculty at the Loyola Institute of Business Administration and the Institute of Chartered Accountants of India.

Vijay has a dynamic personality with varied interests. He has acted in a Tamil film, performed at public music shows, and an anchor. He is a self-confessed sports enthusiast, and follows Cricket and Football keenly.

Chief Executive Officer of AirAsia India, Mittu Chandilya said

“I’m thrilled to have Vijay Gopalan on board with us, and we are sure AirAsia India will benefit from his skills and valued experiences that come along with him. Welcome to the AirAsia family, Vijay.”

Vijay Gopalan said,

“I feel privileged to be part of AirAsia India which globally is committed towards getting everybody to fly, across socio economic strata while remaining financially healthy. I am very excited about being part of the team that is going to change the aviation landscape in India and make flight travel affordable to everyone maintaining the highest levels of security and service experience, true to our motto- Now everyone can Fly”

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Airbus achieves 8,000 aircraft delivered milestone

Photo courtesy Airbus S.A.S. Used under fair use.

Earlier this month, Airbus achieved a historic milestone when it delivered its 8,000th aircraft – an A320 for the Indonesian wing of AirAsia.

Over the years, Airbus S.A.S. has grown from a single aircraft model company to an aircraft manufacturer, offering aircraft covering every segment of the market from 100 to 500+ seats.

Tan Sri Tony Fernandes, Group Chief Executive Officer of AirAsia said

“AirAsia has a long-standing, special relationship with Airbus. This is a very special moment for all of us. The people behind Airbus and their commitment in delivering the best product are key to our fruitful relationship, and we are extremely proud to have the 8,000th Airbus as a member of our fleet. It’s the same pioneering, forward-looking mindset and a lot of hard work that have brought both AirAsia and Airbus to their respective leading positions today,” “The excellent fuel efficiency and economics of Airbus aircraft are key contributors to AirAsia’s success – we are confident that these modern aircraft will enable us to continue our ambitious growth plans.”

Fabrice Brégier, Airbus President and CEO said

“It’s particularly fitting that our 8,000th delivery goes to AirAsia - one of the world’s fastest growing airlines,” “In an increasingly challenging and diverse worldwide economic context, we are more than ever focused on delivering real value to our customers. We will achieve this by continuing to innovate, together with our customers, in all fields of the business to stay ahead of the game and offer the most efficient products and services.”

AirAsia Group is the largest low-cost airline in Asia is the largest customer for the A320 Family, having ordered a total of 475 aircraft, comprising 264 A320neo and 211 A320ceo. Meanwhile, Airbus widebody aircraft are the choice of the group’s long haul affiliate AirAsia X, which has ordered a total of 26 A330-300s and ten A350 XWBs. A total of 141 Airbus aircraft are flying today in AirAsia’s colours out of its 16 bases in the region, which include Bangkok, Kuala Lumpur and Jakarta.

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Vested interests shaping government policy helped AirAsia partner Tatas too

by Devesh Agarwal

Image courtesy Wikipedia

Aviation insiders have known for many years what AirAsia boss Tony Fernandes dared publicly state the day before yesterday, after his meeting with civil aviation minister Ajit Singh. Vested interests have shaped, nay, distorted Indian civil aviation policy.

One of the more shameful rules of Indian civil aviation is the policy of allowing Indian carriers to operate international flights only after they have been in operation for five years, and have a fleet of at least 20 aircraft.

The worst aspect of this rule is that it applies only to Indian carriers. So while even newly formed airlines from our neighbours like Mihin Lanka, flyDubai, etc., could fly to India, a perfectly capable IndiGo or SpiceJet were forced to watch their competitors establish themselves, while they themselves had to sit idly by. Even today GoAir is unable to operate international flights since its fleet is smaller than the mandated 20 aircraft, forcing the airline to lobby and seek an exemption from the rule.

Image © Devesh Agarwal. All rights reserved.

The blind ambition to operate international flights before it completed the five year requirement, was one of the driving reasons for Vijay Mallya promoted Kingfisher Airline's disastrous acquisition of the loss-laden Air Deccan, which is now acknowledged as a major reason for the ultimate demise of the liquor baron's airline.

We completely agree with Fernandes that this bizarre rule has held back Indian airlines while other airlines in the region have formed and grown to become large stable businesses, thus causing a loss to the nation.

Fernandes appeared to confirm insider information when he used the name "Naresh", most likely referring to Naresh Goyal, the politically super-connected boss of Jet Airways, who was the "vested interest" behind this bizarre policy decision.

Fernandes though, should remember history and use caution when blaming "vested interests" for distorting government policy. Back in 2006, his partners in AirAsia India, the Tatas, actively lobbied the finance departing to apply a different yard-stick from the then national auto policy, and made their fledgling Indica car qualify as a "small car" and obtain lower excise duty benefits which it was otherwise not be entitled to, while its competitors would.

A 2006 report explains

While the Auto Policy defines a small car as being up to 3.8-metre long and the 6-digit excise notification in the official tariff book places a cap of 1,000 cc on the engine capacity for a car to qualify as 'small', the Budget made cars up to 4 metre in length and having an engine capacity of 1,200 cc (petrol) and 1500 cc (diesel) eligible for the lower, 16% excise slab.

This means, had the finance minister stuck to the existing definition, petrol models such as Hyundai Santro and Maruti WagonR would not have become eligible for lower excise. Under this definition, the upcoming diesel variants of Swift and Getz will also become eligible for lower excise since the engine capacity cap for diesel versions has been placed at 1,500 cc. But, just a few weeks after the budget was passed, two major automobile companies have begun lobbying for extending these concessions further.

Officials confirmed that two companies, including the Ratan Tata-led Tata Motors, have sought further relaxation.

Fernandes' outburst is understandably,  also vested. After all, he is responsible to the shareholders of his business for delivering results. One way for his new venture AirAsia India to quickly grow, would be to operate internationally.

Today AirAsia cannot carry passengers all the way from south east Asia to the middle-east on its narrow body A320s, since the distance it too great. At the same time. some of the routes would not have enough traffic to fill the wide-body A330s of AirAsia X. But if AirAsia India flies overseas, it can be fed by its sisters AirAsia, and Thai AirAsia who would bring passengers to the Indian hubs and transfer them on their Indian sister along with Indian passengers for the onward journey to the middle-east.

Is this a case of the pot calling the kettle black? Or is Tony Fernandes genuinely interested in universal change to fair play rules? Share your thoughts via a comment.

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AirAsia Announces Termination of AirAsia Japan Joint Venture with All Nippon Airways

In a long expected move, Malaysian low cost carrier, AirAsia today announced its decision to terminate its participation in the joint venture with ANA Holdings Inc. under the AirAsia Japan brand with the signing of a termination agreement.

The joint venture, created two years ago under the name AirAsia Japan faced many challenges since its launch. Issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based.

AirAsia Berhad through AirAsia Investment Ltd. had subscribed 25,120 voting shares and 23,880 non-voting shares at JPY 50,000 per share, which represented forty-nine percent (49%) of the paid-up share capital in AirAsia Japan.

The termination comprises an acquisition of AirAsia’s entire shareholding in AirAsia Japan by ANA Holdings Inc. for JPY 2,450,000,000 (approximately US$ 25.17 million). The termination also involves the return of all AirAsia aircraft leased to AirAsia Japan by November 1, 2013 and the payment of all monies accrued from the leasing of the aircraft.

Under the termination, AirAsia Japan will also settle all outstanding invoices due to AirAsia accrued from the commencement of operations. AirAsia Japan will unwind the use of the AirAsia brand in its operations, including the name of AirAsia Japan itself by November 1st 2013. Operations of AirAsia Japan flights up to October 31st 2013 will continue as planned.

Following the transfer of shares and payment of the purchase price, the Shareholders Agreement, the Brand License Agreement and other commercial contracts between the parties will be terminated immediately.

On the termination, AirAsia Group CEO Tony Fernandes said,

“I have great respect for ANA as the leading legacy airline in Japan but it is time for us to part ways and focus our attention on what we do best, which is running a true LCC. Despite the cost issues, the AirAsia brand has resonated with Japanese customers and the trend we see for July and August is very strong for all of Japan. I remain positive on the Japanese market and believe there is tremendous opportunity for a LCC to succeed, as proven by the tremendous success AirAsia X has seen. We have not given up on the dream of changing air travel in Japan and look forward to returning to the market.”

Operations of AirAsia X, the long haul low fare affiliate of AirAsia Group will not be interrupted as a part of this termination. AirAsia X will continue its operations into Japan including Kuala Lumpur to both Tokyo (Haneda) and Osaka (Kansai).

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Video: Boeing delivers its 7,500th 737 to Malaysian start-up Malindo Air

Boeing has delivered a 737-900ER, the 7,500th 737 to come off the production line to Malaysia-based Malindo Air. The aircraft in a two class configuration, 18 business class and 164 economy class seats, features the Boeing Sky Interior featuring sculpted side-walls, improved window reveals, LED lighting and larger pivoting overhead baggage storage. The Boeing 737 is the best-selling commercial jetliner of all time with total orders exceeding 10,500 airplanes.

Malindo Air is a joint venture by Jakarta, Indonesia-based Lion Air and Malaysia's National Aerospace and Defence Industries (NADI). The name "Malindo" comse from the names of respective countries: Malaysia and Indonesia.

Malindo is a response by Lion Air after the entry of AirAsia from Malaysia, in to their home turf of Indonesia. AirAsia's subsidiary Indonesia AirAsia, in partnership with its parent firm, bought Indonesian carrier Batavia Air to gain foothold in the Indonesian market. Mr Chandran Ramamuthy, personal assistant executive to the president director of Lion Air, has been appointed as CEO of Malindo Air. The airline inaugural flights will be operational from 22nd of March.

Malindo will take a hybrid approach to differentiate itself from the bare bones low cost AirAsia. Malindo will provide a personal TV IFE (in-flight entertainment) system in every seat, free snacks or meals, seat pitches of 32" and 45" for economy class and business class respectively, and a free baggage allowance of 15 kg and 30 kg. The airline also plans to add in-flight Wi-Fi service.



Images courtesy Randy's Journal

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AirAsia JV approved. Aviation ministry officials seek policy clarification

by Devesh Agarwal

India's Foreign Investment Promotion Board (FIPB) today gace an in-principle approval to the Joint Venture (JV) company proposal of AirAsia, the Tatas and the Bhatias. The stated goal of this JV company is to form and operate an airline most likely AirAsia India, based out of Chennai.

As per a report, the JV will initially invest about Rs. 80 crore (approx $14.5 million), well above the minimum Rs. 50 crore requirement to start an airline. The JV will now have to approach the aviation regulator The Directorate General of Civil Aviation (DGCA) for obtaining a permit to start and operate an airline.

On the same day there is a report of senior aviation ministry officials clarifications from the Department of Industrial Policy and Promotion (DIPP) on whether the JV proposal complies with the Government's guidelines on FDI in Indian carriers by foreign carriers.

Bangalore Aviation readers will recall, just about two weeks ago, I had raised this very point in my article.

When the cabinet approved the policy on September 14, 2012, the press statement said

"......there has been a need to consider financing options available for private airlines in the country, for their operations and service upgradation, and to enable them to compete with other global carriers. Denial of access to foreign capital could result in the collapse of many of our domestic airlines, creating a systemic risk for financial institutions, and a vital gap in the country’s infrastructure"

The doubt stems from the lack of clarity in the guidelines on whether the revised FDI policy also allows investments in to fresh start-up airlines, in additional to the stated policy of existing airlines.

If allowed to invest in start-ups, it will enable foreign carriers to bypass infusing funds into existing Indian carriers, thus defeating a stated goal of the policy.

Then it will be the Indian tax-payer finally bearing the debt burden of these Indian carriers, who are largely financed by tax-payer paid "public sector" banks.

It will be interesting to see further developments, though I feel the proposal will go through. The Tatas are an extremely methodical, competent and powerful company. Behind the scenes, they will have worked tirelessly to ensure no embarrassment due to a public rejection.

Share your thoughts via a comment.

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AirAsia, Tatas and Amit Bhatia seek approval to start airline in India. Is SpiceJet the target?

by Devesh Agarwal

Malaysian low cost carrier AirAsia Berhad (Ltd.) through its investment arm, AirAsia Investment Ltd. (AAIL) has submitted an application to the Indian Foreign Investment Promotion Board (FIPB) seeking approval for AAIL to invest 49% into a proposed Indian joint venture together with Tata Sons Limited and Mr. Arun Bhatia of Telestra Tradeplace Pvt. Ltd. The expected holding in the JV is AirAsia 49%, Tatas 30%, and Arun Bhatia 21%.

Photo: Devesh Agarwal

This move comes amidst the backdrop of the September 2012 decision by the Government of India to open up the aviation sector to Foreign Direct Investment from foreign carriers.

AirAsia is one of the most successful low cost carriers in the world, and has created regional AirAsia airlines in Thailand, Indonesia, Philippines, and Japan in similar joint ventures like the one proposed for India.

The Tatas are a $100 billion conglomerate highly respected for their business values, and who used to own, then operate Air India prior to the government taking it over in the 1970s. The Tatas used to own close to 6% in Indian LCC SpiceJet Ltd., owned by the political heavyweight Marans who are related to DMK supremo Karunanidhi of Tamil Nadu. However, the Tatas claim their investment in SpiceJet is purely financial on with the two rounds of equity dilution at the airline, their stake is now down to less than 0.5%.

Mr. Arun Bhatia's son Amit Bhatia, is the son-in-law of one the richest men in the world, Mr. L.N. Mittal and serves serves on the Board of Directors at Queens Park Rangers Football Club in the United Kingdom alongside Tony Fernandes, the founder of AirAsia.

Subject to FIPB approval, the proposed joint venture company will make an application to Indian aviation regulators for the Air Operators Permit. The parties have signed a Memorandum of Agreement that details high-level terms with regards to the proposed partnership.

The airline, if formed, will be based out of Chennai, which will allow domestic connectivity to AirAsia's international operations.

This foray will mark a return of the Tatas to the airline and airport sector after almost 25 years. In the 1980s and 1990s, the Tatas had proposed a collaboration with Singapore Airlines to operate a domestic carrier and also to take over Air India. The Tatas had also collaborated with Changi Airport to develop the greenfield airport at Bangalore, which is now BIA. All efforts were thwarted by political opposition.

Our analysis

We are not sure how well this proposal will be received. India's civil aviation minister is on record with the Business Standard newspaper

“We are not giving licences for greenfield airlines. As of now, FDI (foreign direct investment) in aviation can come only through existing airlines."

Based on this premise, for the past few months, Jet Airways has been negotiating with Abu Dhabi based Etihad to sell a 24% stake in Jet for about $300 million. The Chairman of Etihad Sheikh Hamed bin Zayed al-Nahyan has already delayed the deal citing concerns on policy flip-flops. An approval to AirAsia will prove the Sheikh's point, and almost certainly scuttle the FDI initiative, announced by the government last year, which is essentially meant for rescuing India's debt-laden airlines and the banks who have already lent massive amounts to them.

We expect there will be strong, if not, insurmountable opposition especially with regards to existing Indian carriers like Jet Airways, SpiceJet and IndiGo, each of whom should not be discounted for their strong political connections.

So knowing all of this, why has this JV application been submitted? What do the Tatas, Bhatias, and Tony Fernandes know, that is not apparent?

Photo: Devesh Agarwal

If one was to go in to a conspiracy theory mode, the common point is SpiceJet.

From one side, the Tatas own a stake in the the airline. From the other side, Anthony Francis "Tony" Fernandes is in the very top Malaysian business tycoons circle, along with Mr. Ananda Krishnan, the Chairman of Maxis and Astro, both of which have been linked to the Maran brothers Dayanidhi and Kalanithi respectively, and Kalanithi Maran is the owner of SpiceJet, which has a need of funds for expansion.

Quoting from our Indian Aviation Review from earlier this year

Q400 operation is certainly a strong performer in SpiceJet’s tepid overall finances. The full order of 15 Q400s is now complete, and while SpiceJet has options to purchase 15 more from Bombardier, unfortunately it cannot find financing for the next 15 deliveries, which it desperately needs to expand the regional operation

May be Mr. Maran is wanting to exit the airline business?

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