American Airlines to buy up to 70 CRJ900 NextGen regional jets

by Devesh Agarwal

CGI of CRJ900 NextGen in American Eagle livery.

Bombardier Aerospace of Canada and American Airlines Group Inc., of Fort Worth, Texas have signed a firm purchase agreement to acquire 30 CRJ900 NextGen aircraft along with options on an additional 40 aircraft.

Based on the list price for the CRJ900 NextGen aircraft, the firm order contract is valued at approximately US$1.42 billion and could increase to approximately US$3.38 billion if the 40 options are converted into firm orders.

American Airlines becomes the first customer to acquire the newest version of regional jet which has an improved fuel burn of four per cent with the “NextGen” package enhancements. Improvement to the aircraft’s engines and ongoing weight reduction initiatives, which include upgraded avionics, will offer a further reduction of up to 1.5 per cent.

Including the American Airlines order announced today, Bombardier has recorded firm orders for 1,812 CRJ Series aircraft, including 339 CRJ900 and CRJ900 NextGen aircraft. Worldwide, CRJ Series aircraft are in service with more than 60 airlines and more than 30 customers operate corporate variants of the aircraft.

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Iraqi Airways signs letter of intent for up to 16 Bombardier CS300 aircraft

By BA Staff

Bombardier Aerospace announced that Iraqi Airways, the national carrier of Iraq, has signed a letter of intent (LOI) to acquire five CS300 mainline jetliners. The LOI also includes options on 11 CS300 aircraft.

Based on CS300 airliner list price, a firm order would be valued at approximately $387 million US and could increase to $1.26 billion US if the 11 options are converted to firm orders.

Iraqi Airways operates six CRJ900 NextGen regional jets.

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Abu Dhabi aviation signs LOI for two Bombardier Q400 NextGen aircraft

By BA Staff

Bombardier Aerospace announced that Abu Dhabi Aviation, based in Abu Dhabi, has signed a Letter of Intent for two Q400 NextGen aircraft. The airline is a long time Bombardier Q-Series aircraft customer.

Based on the list price, the potential contract value for Abu Dhabi Aviation’s transaction, covering two Q400 NextGen aircraft, would be approximately $70 million US.

Abu Dhabi Aviation, the largest commercial helicopter operator in the Middle East, operates a fleet that includes one Q400 aircraft, one Dash 8/Q300 aircraft and two Dash 8/Q200 turboprops. The carrier’s main activities relate to the support of offshore oil, engineering and construction companies.

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Ethiopian Airlines authorised as service facility for Q400 turboprops

By BA Staff

Bombardier Aerospace celebrated its growing support network in Africa by agreeing with Ethiopian Airlines of Addis Ababa, as yet another Authorised Service Facility (ASF) for commercial aircraft on the continent.

The airline can now perform line and heavy maintenance on Q400 and Q400 NextGen turboprop aircraft under the Bombardier ASF banner.

Ethiopian Airlines operates a fleet of modern aircraft, and performs complete aircraft, as well as engine and component overhaul and repair services from facilities at Bole International Airport in Addis Ababa. The facility employs an all-Ethiopian workforce of over 750 licensed technicians and support staff.

Éric Martel, President, Customer Services and Specialized and Amphibious Aircraft, Bombardier Aerospace said:

“Ethiopian Airlines is one of Africa’s most respected airlines and a valued Bombardier customer. Their commitment to excellence both in operations and maintenance services will benefit our operator base in the region and beyond, as a part of our network. Through sustained investment and focus, we continue to expand our support services in Africa and are looking forward to this new chapter of our relationship with Ethiopian.”

Tewolde Gebremariam, Chief Executive Officer, Ethiopian Airlines said:

“Ethiopian Airlines’ NextGen turboprops are proving their high value by delivering excellent passenger experience, operational flexibility and economics – confirming that they are excellent aircraft for operations in Africa. As a newly appointed Authorized Service Facility for Q400 and Q400 NextGen aircraft, we welcome the opportunity to expand our relationship with Bombardier, and to provide maintenance services to other carriers as an increasing number of these modern turboprops take to the skies in our geographically diverse continent.” 

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Bombardier and Air Côte d’Ivoire sign agreement for up to four Q400 NextGen aircraft

By BA Staff

Bombardier Aerospace announced that Abidjan-based Air Côte d’Ivoire, the national airline of the Invory Coast, has signed a conditional purchase agreement for two Q400 NextGen aircraft with options for an additional two Q400 NextGen aircraft.

Based on list price, the contract value for two firm-ordered Q400 NextGen aircraft would be approximately $69 million US. Should the two options be converted to firm orders, the contract value would increase to $141 million US.

René Decurey, Chief Executive Officer, Air Côte d’Ivoire said:

“The dual-class-configured Q400 NextGen aircraft is ideally suited for our market; it will support passengers’ requirements and integrate well into our fleet. We will capitalize on the Q400 NextGen aircraft’s outstanding performance -- including its high speed and long-range cruise capability – as we look to modernize our fleet and expand our domestic and regional route network. Additionally, in West Africa, where average fuel prices are among the highest in the world and the highest on the continent, the fast, fuel-efficient Q400 NextGen turboprop airliner is the most cost effective and flexible regional aircraft solution for our operations.”

Mike Arcamone, President, Bombardier Commercial Aircraft said:

“We are proud that Bombardier is contributing to the growth strategy of Air Côte d’Ivoire, and that the carrier could potentially double the size of its current fleet with Q400 NextGen aircraft as it further develops its network of short- and medium-haul destinations. The Q400 NextGen aircraft is performing superbly in diverse environments around the world with some 50 customers and operators, and we are delighted to welcome Air Côte d’Ivoire to our family. Bombardier Commercial Aircraft continues to perform well in Africa, where we have captured 100 per cent market share over more than two years in the large turboprop segment."

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Palma Holdings signs LOI for up to eight new Bombardier Q400 NextGen turboprops

By BA Staff

Bombardier Aerospace announced that Palma Holding Limited (Palma) has signed a letter of intent to acquire up to eight dual-class Q400 NextGen aircraft. The agreement would cover four firm-ordered aircraft and four options. Palma intends to lease four aircraft to Ethiopian Airlines.

Based on the list price, the potential contract value for Palma's transaction covering four Q400 NextGen aircraft and four options would be approximately $282 million US.

Moulay Omar Alaoui, President, Palma Holding Ltd said:

"We are very pleased to become the first Middle Eastern lessor for Bombardier's Q400 NextGen aircraft, and the first lessor worldwide for the aircraft's dual-class configuration. We are working to conclude lease structures with interested airlines including existing Q400 NextGen aircraft operator Ethiopian Airlines. We have already concluded commitments with Ethiopian Airlines that will provide the carrier with additional development opportunities."

Mike Arcamone, President, Bombardier Commercial Aircraft said:

"Our customers' success with their Q400 NextGen aircraft in the Middle East and Africa is testament to the aircraft's unique ability to serve the diverse and challenging environment in the region. In addition, the Q400 NextGen aircraft's comfortable, quiet cabin provides an excellent experience for passengers; and the dual-class option allows flexible integration into carrier's network operations by providing seamless business class service to passengers,"

Ethiopian Airlines currently operates a fleet that includes 13 Q400s.

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Boeing selects Bombardier business jet for maritime surveillance aircraft program

By BA Staff

Boeing has selected Bombardier's Challenger 605 business jet as the platform for its Maritime Surveillance Aircraft (MSA) program.

Tim Peters, Boeing vice president and general manager, Mobility, Surveillance and Engagement, said at the Dubai Airshow:

"The Challenger 605 is an ideal platform to host MSA's mission system, sensors and communications equipment. It also provides the power, payload capacity, range, speed and endurance that our customers tell us they need for missions such as anti-piracy; coastal and border security; and long-range search and rescue."

Boeing team-mate Field Aviation will modify the Challenger 605's structure and air vehicle systems into the MSA configuration.

Peters said:

"Field Aviation has extensive experience engineering and modifying the Challenger family of aircraft for a variety of missions, including maritime surveillance."

Field Aviation is currently modifying a Boeing-owned Challenger 604 jet into an MSA demonstrator aircraft that will complete ground and flight testing of the mission systems and be presented to potential customers in 2014.

MSA incorporates technologies developed for the P-8A Poseidon, the U.S. Navy’s newest anti-submarine warfare, anti-surface warfare and Intelligence, Surveillance and Reconnaissance system based on the Boeing Next-Generation 737 commercial airplane.  

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Bombardier discloses CDB Leasing Co., Ltd. China as customer for last year CSeries order

By BA Staff

Image courtesy Wikipedia. Author Alexandre Gouger.

Bombardier Aerospace announced that CDB Leasing Co., Ltd. (CLC), one of China's top leasing companies, is the previously announced undisclosed customer that signed a conditional purchase agreement for five CS100 and 10 CS300 jetliners. The purchase agreement also includes options on an additional five CS100 and 10 CS300 aircraft, for a total of up to 30 CSeries aircraft. This agreement was initially announced as a conditional order from an undisclosed customer for five CS100 and 10 CS300 jetliners on July 8, 2012.

Canada's foreign minister John Baird said:

"This announcement, witnessed at the highest levels by both governments, reflects extremely well on the cooperation between Bombardier and China in the aviation sector, as well as on the overall economic relations between Canada and China."

As previously announced by Bombardier, based on list prices of CS100 and CS300 aircraft, the contract is valued at approximately $1.02 billion US. Should all 15 options be exercised, the value of the contract would increase to $2.07 billion US.

CLC Chairman Mr. Wang said:

"Given ongoing high fuel prices and increased environmental concerns, older and less efficient aircraft represent one of the greatest challenges to airlines. Following an in-depth analysis of existing and re-engined aircraft, the CSeries family of airliners, with its unmatched economics, advanced technology, excellent operational flexibility, as well as its outstanding performance seemed like the obvious choice and shows great potential for operators in China and abroad."

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Alaska Airlines Announces Q400s Will Use Jet Bridge for Warm Boarding in Fairbanks

By BA Staff

Fairbanks residents flying on Alaska Airlines' Bombardier Q400s starting next March will board and deplane the aircraft using the existing jet bridge at Fairbanks International Airport. The carrier will modify the jet bridge at Gate 1 to provide passengers with warm, easy access to their flights on the turboprop aircraft.

Marilyn Romano, Alaska Airlines' regional vice president – Alaska said:

 "We listened to customer concerns about boarding the plane outside during the winter and took our time to carefully evaluate all of our options. With slight modifications to the existing jet bridge, our customers traveling between Fairbanks and Anchorage will have a way to board and deplane that protects them from the cold winter weather and is also safe and accessible for travelers with limited mobility."

Alaska Airlines is exploring a  boarding solution for customers boarding and deplaning the Q400 at Ted Stevens International Airport in Anchorage, Romano said.

Starting next March, Alaska will increase service between Anchorage and Fairbanks from seven to nine daily flights; eight flights will be operated with the Q400 and one with a Boeing 737. Additionally, the Q400 will replace an Alaska 737 on one of two daily round-trip flights between Anchorage and Kodiak. Initial service to Kodiak will begin March 3 and end April 30, then resume again for seasonal service between October and April.

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Bombardier CSeries flies for the first time

by Vinay Bhaskara

Earlier today at Montreal's shuttered Mirabel Airport (YMX), Bombardier's new CSeries jet flew for the first time today. The flight of CSeries flight test vehicle 1 (FTV1 - a CS100) was performed under perfect weather conditions in Montreal, and also represented the first flight for engine manufacturer Pratt & Whitney's new PurePower geared turbo fan (GTF) engine.

The flight lasted two and a half hours, taking of at 9:55 am local time and landing again at 12:25 pm. It ended more than two weeks of constant speculation over the date of the CSeries' first flight as Bombardier battled unsuitable weather conditions in the Montreal area.

The flight was crewed by Captain Charles (Chuck) Ellis, Chief Flight Test Pilot, Bombardier Flight Test. He was joined by his colleagues, Capt. Andris (Andy) Litavniks and Andreas Hartono in the roles of First Officer and Flight Test Engineer respectively.

Captain Ellis had this to say about the first flight:

The performance of the CSeries aircraft was very impressive! We couldn’t have wished for a better maiden flight,....FTV1’s state-of-the-art flight deck was responsive and comfortable, and the aircraft handled exactly as expected. Overall, we had a very productive first flight and an excellent start to the flight test program.

During its first flight, the CSeries reached a height of 3,810 meters and an airspeed of 230 knots (426 km/hr). Several test were done in-flight including flap and landing gear retractions/extensions, in-flight maneuvers including a simulated landing, and validation of the flight control system.

Onlookers raved about how quiet the CSeries was on take off and landing, one of the benefits touted by Bombardier and Pratt & Whitney. A total of five CS100 test vehicles, in various stages of completion, will join the flight test program in coming months, and according to Bombardier, it will be months before acoustical testing is finished. The total flight test program is set to be around 2,400 hours.

The first flight is good news for the CSeries program, which has suffered under the weight of a long delay, rising costs (program cost is now projected at $4 billion, up from $3.5 billion), and strong competition from rival Embraer, whose E2 re-engine of its E-Jet family of aircraft has already won more than 100 orders after being offered for less than 3 months against 177 total orders for the CSeries after six years (63 CS100, 114 CS300).

The first flight of the CSeries and the Boeing 787-9 later this week will be the last major first flights for at least the next three years, until the A350-800, the 787-10, and the Embraer E2 all have their first flights in the 2016-2017 time frame.

The following video from Bombardier shows the take-off of the first flight.

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VistaJet Selects Jet Aviation to Operate and Manage Global Aircraft Fleet in the United States

By BA Staff

VistaJet, the leading Global business aviation company, and Jet Aviation, a leading business aviation services company, announced today that Jet Aviation Flight Services will operate and manage a U.S.-based fleet of Bombardier Global jets for VistaJet's Flight Solutions Program. Service on the first three aircraft is scheduled to begin in March 2014, with the U.S. fleet expected to grow to 12 all new Bombardier Global jets. The total value of VistaJet's aircraft fleet commitment is U.S. $600 million.

Thomas Flohr, Founder and Chairman of VistaJet, had this to say about the partnership:

"VistaJet offers Global aircraft services unlike any other in business aviation. We take great pride in our heritage as an international company and for the past ten years, we've arranged for corporate leaders, entrepreneurs and private individuals to fly to over 135 countries worldwide. Expanding our Program offering to include the new service operated by Jet Aviation within the United States now makes VistaJet the only truly Global business aviation company. With this announcement, we are redefining the landscape of business aviation."

The first VistaJet aircraft to be operated by Jet Aviation in the U.S. under this new alliance will be based at Jet Aviation Flight Services' Teterboro, New Jersey, facility while additional aircraft may be located at other Jet Aviation U.S. locations depending on demand and seasonal traffic within the country.

Jet Aviation Flight Services is responsible for delivering Jet Aviation's aircraft management and charters services in the Americas. With U.S. based offices currently located in Teterboro, N.J., Van Nuys, Calif., and Chicago, Ill., the company provides services for a fleet of high-quality managed aircraft and was named in Robb Report's "Best of the Best" for charter services for three consecutive years. Jet Aviation currently manages more than 100 aircraft in the Americas.

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25th anniversary of the first Airbus A320 delivery

by Devesh Agarwal

25 years ago today, Airbus entered the hither-to US dominated market of narrow body airliners when it delivered its first A320 to Air France. The A320 shook up the market segment with the highest demand. As of today Boeing and Airbus estimate the single aisle narrow body segment to purchase about 20,000 airframes in the next 20 years.

The A320 which seats 180 passengers in a single class high density configuration, was the first member of the A320 family. Launched in March 1984, it first flew on 22 February 1987, and without a doubt, has significantly altered the face of "Code C" market segment, which sees the highest demand of aircraft. As of today Boeing and Airbus estimate the single aisle narrow body segment to purchase about 20,000 airframes in the next 20 years.

The A320 family. A318, A319, A320, A321. The number of over-wing doors is the secret to identifying the variants.

The A320 family was soon expanded to include the extended length A321 seating 220 passengers in a single class high density configuration, first delivered in 1994, the shorter A319 seating 156, first delivered in 1996, and the really short A318, seating 132, first delivered in 2003.

All economy class Kingfisher Airbus A321 VT-KFW.

The A320 family pioneered the use of digital fly-by-wire flight control systems, as well as side-stick controls, in commercial aircraft, and extensive use of automation and flight envelope protection, causing Boeing supporters to deride the aircraft as flying a video arcade.

Final assembly of the A320 family takes place in Toulouse, France, and Hamburg, Germany, and in Tianjin, China. Airbus has announced the construction of a final assembly line (FAL) in Mobile, Alabama, USA, the home turf of arch-rival Boeing.

Winglets and Sharklets

The first series of A320s, the A320-100 did not feature any winglets. Only 21 aircraft were produced for Air Inter and British Caledonian Airways, both bought by Air France and British Airways respectively.

An Airbus A320-100 (F-GGEA) of Air Inter without winglets. Image courtesy Wikimedia

The all familiar wing-tip fence was added from the -200 series onwards. Indian Airlines an early adopter of the A320 had Airbus develop special four-wheel main gear bogies for use on rough under-prepared airstrips which the large dual wheel bogies could not handle. Unfortunately these non-standard four wheel bogies have become a curse for the airline, which now cannot find a buyer for these aircraft.

Airbus A320-200 VT-EPC of Indian Airlines (now Air India) featuring winglets and four wheel main gear bogie.

Now the A320 optionally ships with new blended winglets called "Sharklets". Both of India's low cost carriers GoAir and IndiGo operate Sharklet equipped A320s.

Airbus A320-200 of GoAir VT-GOL featuring the new "Sharklets". Image courtesy Airbus.

Competition

The Airbus A319, A320, A321 today compete with the Boeing 737-700, 737-800, and 737-900ER respectively. The venerable Boeing 737, even today, is the best selling aircraft in the world, Boeing having just delivered its 7,500th 737 aircraft recently; but this lead is slender and the A320 is closing the gap. The McDonnell Douglas MD80, MD83, MD88, and MD90 which morphed in to the Boeing 717 are no more in contention. Newcomers like the Bombardier C series and COMAC C919 are expected to offer competition, especially in the smaller sizes.

Delivery history Airbus A320 vs. Boeing 737

As of December 2012, Airbus has delivered 5,402 A320 series aircraft since their first delivery on March 26, 1988, with another 3,629 on firm order. In comparison, Boeing has shipped 5,919 737s in the same period and has a further 3,074 on firm order.

Annual deliveries of Airbus A320 (in green) vs Boeing 737 (in red). Image courtesy Wikipedia.

The future

On 1 December 2010, Airbus officially launched the next generation of the A320 family with the A320neo or "New Engine Option". The neo offers a choice of larger diameter engines which offer significant fuel savings, which can top 15%, when combined with airframe improvements and the standard fit of Sharklets. Airbus enjoys an advantage in larger diameter fan engines, since its A320s are taller and there is more space under the wing, unlike Boeing which needs to so 

Cut and make your own A320neo paper model airplane

Operators are offered an engine choice of the CFM International LEAP-X or the Pratt and Whitney Pure Power PW1000G Geared Turbo-Fan (GTF). With well over 1,400 aircraft on order from 22 airlines, the A320neo family is the fastest ever selling commercial aircraft.



Boeing subsequently responded with its re-engined option of the 737 called 737 MAX which has scored impressive wins but lags behind the neo on backlogs of the newest generation orders 40%-60%.

Read our analysis of the A320neo vs. the 737 MAX

The re-engined aircraft will carry the two behemoth airframers for the next ten years. The narrow body single aisle aircraft segment is the hottest in the industry and both Airbus and Boeing are going to face competition from the Bombardier C Series, Sukhoi SuperJet, COMAC C919, Embraer E195, and UAC/Irkut MS21. Expect a new aircraft from both manufacturers about 12 years to 15 years from now. A paper by the US Congressional Research Service (CRS) documents well, the challenges the duopoly of Airbus and Boeing face in the coming years. You can download the PDF here.

For now, just a simple congratulations to the team at Airbus for developing an option.

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SpiceJet to commence three new international routes

Gurgaon based low fare carrier SpiceJet will expand its international network by opening three new sectors Kochi Male, Kochi Dubai, and Ahmedabad Dubai.

Male is a new destination for the airline. SpiceJet already operates daily flights to Dubai from Mumbai and Delhi.

Flight	From	Destination	Departure (Local Time)	Arrival (Local Time)	Frequency	First Flight
SG 3901	Kochi	Male	1250 hrs	1440 hrs	Daily	29th Nov’ 12
SG 3902	Male	Kochi	1515 hrs	1705 hrs	Daily	29th Nov’ 12
SG 017	Kochi	Dubai	1710 hrs	1950 hrs	Daily	10th Dec ‘ 12
SG 018	Dubai	Kochi	2045 hrs	0225 hrs	Daily	10th Dec ‘ 12
SG 015	Ahmedabad	Dubai	1700 hrs	1825 hrs	Daily	19th Dec’ 12
SG 016	Dubai	Ahmedabad	1925 hrs	2330 hrs	Daily	19th Dec’ 12

The Male flight will be operated with the 78 seat Bombardier Q400 turbo prop, and Dubai with the 189 seat Boeing 737-800.

At present SpiceJet flies to Kathmandu (Nepal), Colombo (Sri Lanka), Kabul (Afghanistan) and Dubai (UAE)

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SpiceJet Q1 FY 2013 financial and operations analysis

When Gurgaon based low cost carrier (LCC) SpiceJet reported a net, pre-tax profit of more than Rs. 56 Crore in the first quarter of fiscal year 2012-2013, it represented a huge positive step for the Indian airline industry.

After SpiceJet had slipped to a large net loss for fiscal year 2011-2012, mirroring the performance of the industry as a whole thanks to sharply rising fuel costs, additional costs due to the integration of the Bombardier Q400 turboprop into the fleet, and depressed fare levels that arose because there was too much capacity in the Indian market. But with the effective demise of full service carrier Kingfisher and its low cost subsidiary Kingfisher Red and their subsequent capacity drawdown, much capacity has been pulled from the market, supporting fares and pushing not only SpiceJet but even full service rival Jet Airways and its low cost wing JetKonnect into profitability.

Looking specifically at some of the information from SpiceJet’s first quarter, once again their growth was quite impressive. They added seven new aircraft to the fleet, including five more Bombardier Q400 turboprops, and grew their market share in the Indian domestic market 18.6%. 26% passenger traffic growth for SpiceJet is pretty much the trendline over the past five to six quarters but importantly, traffic growth significantly outpaced capacity growth as SpiceJet’s seat load factor nudged above 80% for the first time in more than a year and a half. This paid dividends for SpiceJet, as the higher fares thus translated to larger revenues.

More specifically, unit revenue growth for the quarter was superb, RASK (Revenue per Available Seat Kilometre) growing an incredible 36.6% to Rs. 3.97. In fact, this 36.6% growth in RASK on a year over year basis was the highest I've ever seen recorded by a publicly traded Indian airline after reviewing more than four years worth of financial results. What created this excellent revenue performance was actually what one would call a "perfect storm," of events during the first quarter.

On one side, you had LCC rivals IndiGo and GoAir not significantly expanding their domestic operations during the quarter (on an aggregate basis), as IndiGo set its sights on international growth and GoAir performed a pair of aircraft swaps and route swaps (bringing Chennai online into the network). Simultaneously, Kingfisher was entering into its "death by a thousand cuts routing," chopping off most of its low cost Kingfisher Red network as well as its regional network of destinations with ATR 72 turboprops. Given that Jet Airways was happy to benefit from the higher fares as well, this created a situation for SpiceJet where its chief LCC competitors were showing unusual capacity restraint, and they were entering into monopolies or duopolies on a lot of their Q400 regional routes thanks to Kingfisher's cuts. Add in the fact that the initial Q400 operations from Hyderabad, Chennai and the like have begun to mature (build up a customer base) and the recipe was set for unprecedented unit revenue growth at SpiceJet.

While the revenue gains were important to the result (it can never hurt to record 55.1% top-line revenue growth), SpiceJet's results were unquestionably supported by the moderate decline in fuel prices over the quarter. In fact, their fuel costs on a per available seat kilometer (ASK) basis (given ASK growth of 16.7% in the quarter) increased just 13.4% YOY (the smallest increase of the last 5 quarters), which finally allowed SpiceJet's revenue and traffic growth to "catch up" to previously runaway fuel price inflation. However, it was troubling to note that SpiceJet's non-fuel cost per available seat kilometre (CASK) was up more than 30.7% YOY. While this can be partly attributed to the acquisition and leasing costs of 5 more Q400s, as well as to the large increase in fees at Delhi Airport by airport operator GMR since SpiceJet has more exposure (proportionally) to Delhi Airport than the rest of India's airlines. But it is the more than 40% rise in the accounting category "other operating expenses" that is most troubling. Despite multiple efforts, SpiceJet did not provide any explanation of the costs in this category.

SpiceJet must keep its costs down, even in a favorable revenue environment like we have today. Revenue gains are typically temporary, and if any new entrant comes into the Indian market, then we are back to square one with capacity discipline (or in that case lack thereof). But low costs are low costs regardless of the competitive environment, and they are critical to SpiceJet's continued financial success.

Looking forward for SpiceJet, it will be interesting to see if they can sustain this kind of revenue growth and profitability moving forward. But even this one profitable quarter has made SpiceJet a hot commodity for potential foreign direct investment (FDI) assuming government approval. With SpiceJet set to add service abroad over the next few quarters, perhaps they can improve these revenue and profit figures even further. SpiceJet, for the time being, is the best performing Indian airline (if only by default because IndiGo's results are not clear. Congratulations are due to the fine team at SpiceJet who did not allow a temporary lapse into unprofitability in FY 2011-2012 taint the overall business, and who had the vision to take on India's airline "giants" in the regional airline field.

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Farnborough Orders on Day 2

Once again, this is courtesy of Aspire Aviation.

Airbus

Date	Customer	Quantity	Model	Remarks
9th July	Arkia Israel Airlines	4	A321neo	Agreement
10th July	Cathay Pacific	10	A350-1000	Agreement; convert 16 existing -900 into -1000
10th July	Drukair	1	A319	Firm

Boeing

Date	Customer	Quantity	Model	Remarks
9th July	Air Lease Corp (ALC)	60	737 MAX 8	Firm; Reconfirmation rights for 25 more
9th July	Air Lease Corp (ALC)	15	737 MAX 9
10th July	GECAS	75	737 MAX 8	Agreement
10th July	GECAS	25	737-800	Agreement
10th July	ALAFCO	20	737 MAX 8	Agreement

Bombardier

Date	Customer	Quantity	Model	Remarks
10th July	Air Baltic	10	CS300	LOI; purchase rights for 10 more

Pratt & Whitney

Date	Customer	Quantity	Model	Remarks
9th July	IndiGo	300	PW1100G-JM	Firm
9th July	CIT	60	PW1100G-JM	Firm
9th July	Cebu Pacific	60	PW1100G-JM	Firm
9th July	Norwegian Air Shuttle (NAS)	100	PW1100G-JM	MoU

CFM

Date	Customer	Quantity	Model	Remarks
9th July	Air Lease Corp (ALC)	150	CFM Leap-1B
10th July	GECAS	150	CFM Leap-1B	Agreement
10th July	GECAS	50	CFM56-7BE	Agreement
10th July	ALAFCO	40	CFM Leap-1B	Agreement

Embraer

Date	Customer	Quantity	Model	Remarks
9th July	Hebei Airlines	5	E-190s	Booked in Q2 backlog

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SpiceJet to commence Dubai flights from Mumbai and Delhi

After almost two years after it commenced international flights, low fare carrier SpiceJet is expanding its destination portfolio by adding Dubai.

The airline will commence daily flights from Delhi and Mumbai to Dubai later this month from June 25th. The flights will be operated by narrow body Boeing 737-800 aircraft and SpiceJet has announced a special inaugural fare of Rs. 4,777 excluding taxes.

SpiceJet made its international debut with the launch of its first international flight from New Delhi to Nepal's capital Kathmandu, on October 7, 2010 and soon followed with flights from Chennai to the Sri Lankan capital, Colombo, on October 9, 2010.

The Dubai route will be operated by one aircraft, and thanks to an intelligent schedule, will afford the airline a high utilisation time.

SG011 departs Delhi 11:55, arrives Dubai 13:45.
SG014 departs Dubai 14:45, arrives Mumbai 19:15.
SG013 departs Mumbai 20:30, arrives Dubai 21:55.
SG012 departs Dubai 23:10, arrives Delhi 04:05 the next morning.

SpiceJet indicates it has received all the required regulatory/government approvals from concerned authorities in India as well as from Dubai, United Arab Emirates to launch its services and has put tickets on sale via its website.

SpiceJet benefits from government policy
As the Tier I domestic market began to saturate, domestic carriers started looking to fly overseas. International flights allowed for increased aircraft utilisation as most of them were overnight when domestic demand was low. India's notoriously high fuel prices are cheaper for international flights, and overseas prices are even lower.

However, the Indian government, in a myopic policy to protect ailing national carrier Air India, gave permissions to private domestic carriers very sparingly.

While low fare competitor IndiGo continued on an all jet fleet expansion and focussed on international flights and taking market share from Kingfisher Airlines, for the last year, SpiceJet focussed on the domestic market.

The airline acquired seven new Bombardier Q400 turbo-props for increase connectivity to Tier II and Tier III cities which do not have runways long enough to support jet aircraft. The airline currently operates Q400's to Aurangabad, Bangalore, Bhopal, Calicut, Chennai, Goa, Hyderabad, Indore, Kochi, Madurai, Mangalore, Rajahmundry, Tirupati, Trichy, Trivandrum, Tuticorin, Vijayawada, and Vizag, and is committed to increase its fleet to 15 Q400s by this year end.

SpiceJet is now benefitting by the recent broadening of thinking at the ministry of civil aviation which has relaxed the policy of over-protecting Air India, and opened up international routes to all Indian carriers, since Air India was unable to utilise all the available bi-lateral capacities, and foreign carriers, especially Emirates airline, have begun to dominate the Indian foreign travel market.

SpiceJet Chief Executive Officer Neil Mills said

"The Government of India has taken substantial and positive steps to open the market and allowing private carriers to connect with new international destinations. To leverage the opportunity and offer quality services at affordable price to our guests, we are pleased to announce the launch of flights to Dubai with more exciting destinations coming soon."

For now SpiceJet has a strong domestic Tier II and Tier III city network free from significant competition, and is can benefit from expansion on the international side as well.

Yet, while Dubai is the most popular destination from India, it is also the most competitive. All carriers who have operational permissions, Emirates, flyDubai and Air Arabia (from the Emirates), Air India, Air India Express, and IndiGo (from India), operate flights.

It will be interesting to see how SpiceJet fares on this highly competitive, yet highly lucrative route.

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Nine months on, SpiceJet loves its Bombardier Q400 aircraft

Just a little over nine months ago, Indian low fare carrier SpiceJet took delivery of its first Bombardier Q400 turbo-prop on August 26th last year, and commenced commercial flights with the aircraft on September 21st.

In a recent internal publication, aircraft manufacturer Bombardier, claimed a 99.8% despatch reliability for the Q400 at SpiceJet, an enviable number considering the high and hot conditions the aircraft operates in.

Bombardier and SpiceJet officials at Toronto see off the carrier's first Q400, VT-SUA, on its ferry flight to India

In a follow-up, we asked the airline to comment about their experience with the Q400. The airline was unwilling to go on the record, citing commercial confidentiality, but we did obtain some off the record answers, from both administrators and pilots at the airline, who are, on the whole, happy with the aircraft.

Q. How satisfied is SpiceJet with the Q400? Are there any open issues which SpiceJet feels Bombardier must solve on priority?
A. The airline is pretty much satisfied. There are no open issues from the commercial side, but one or two very small issues on the technical side which are being resolved. Everyone from pilots to administrators to commercial staff, raved about the aircraft saying Its a great aircraft and suited for Indian conditions

Q. What were the top reasons for SpiceJet to select the Q400?
A. Firstly why did SpiceJet even choose a turbo-prop? It was to gain increased access to Tier II and Tier III markets which have airports with short runways not capable of handling jets, and to benefit from lower cost of operations to dictate lower fares. [Editor's note: Aircraft less than 80 seats are given fuel at only 4% tax and very low, almost free, landing and parking fees at airports.]

Further more the Q400 is significantly faster than its competitor the ATR-72-500 which allows us to operate more flights each day.

The 78 seats also allows for economies of scale while the noise and vibration reduction features of the aircraft provides our passengers more comfort, and the aircraft is a rugged machine which has proven reliability.

With great pride, a SpiceJet Q400 captain told us, how he takes off from Bangalore, ten minutes after a competitor's flight, operated by an ATR72, out-climbs and over-takes the ATR, and lands at Hyderabad more than ten minutes ahead of his competitor.

Q. SpiceJet has committed for 15 Q400s and has another 15 on option. How likely is SpiceJet (a) to exercise the 15 options (b) order / take options on additional Q400s?
A. SpiceJet has seven Q400s in its fleet, and will be adding an aircraft a month. We cannot predict beyond the ordered 15 aircraft at this point. We will see the success of these markets and new initiatives first, before committing any further. As with any other airline options were placed to secure slots and pricing.

Q. What does SpiceJet see as the market potential for turbo-prop aircraft?
We feel there is a market out there for about 40~50 aircraft in the 60~80 seater segment.

Q. Does the Q400 benefit from the lower airport charges scheme at Indian airports? Can SpiceJet share some financial comparisons on highlighting these benefits on the Q400 vs. the Boeing 737.
For sure it does, but we cannot disclose these financials which are company confidential.

Q. Bombardier is discussing a bigger Q400 called the Q400X. What are SpiceJet's thoughts on this? 
A. The Indian market is for the 60~80 seater aircraft. The Q400X is 100+. This aircraft may also require longer runways, which are not available in most smaller cities in India, [short runways is why SpiceJet chose the Q400 for in the first place]. We don't see a demand for this aircraft in our near to medium term plans.

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VIDEO: Making of SpiceJet's Q400 tubro-prop

Thanks to kind friends at SpiceJet and Bombardier for your enjoyment.


It is five days of holiday to celebrate the Ayudha Pooja and Dassera festival, and we extend all our supporters warmest holiday wishes.

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Photos: Cockpit and cabin interior of SpiceJet Q400

Indian low fare carrier SpiceJet commenced the first Indian commercial operations of a Bombardier DH4 Q400 turbo-prop yesterday.

Here are two pictures on the 78 seat interior of the aircraft and its state of the art "glass cockpit". You will observe, that unlike other turbo-props, the Q400 features large overhead baggage compartments.

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Video: Bombardier Q400 product briefing

On the eve of delivering the first Q400 NextGen turbo-prop passenger aircraft to Indian low cost carrier SpiceJet at Toronto Downsview airport, Bombardier gave a product briefing to the visiting journalists including Bangalore Aviation.

The first two aircraft VT-SUA and VT-SUB which departed last Friday arrived at New Delhi's Indira Gandhi International Airport (IGIA) just as I was boarding my flight to Bangalore yesterday.

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