Showing posts with label E170. Show all posts
Showing posts with label E170. Show all posts

PHOTOS and Analysis: A new Indian start-up; Zexus Air?

by Vinay Bhaskara

A report in Ch-Aviation is stating that proposed domestic start-up Zexus Air, to be based at Delhi, is planning to acquire four Embraer E175LR regional jet aircraft (with manufacturer serial numbers [MSNs] 17000277, 17000287, 17000291, and 17000309), as per its application with India's Directorate General of Civil Aviation (DGCA) for an air operator certificate (AOC). The aircraft were previously with Brazilian regional operator TRIP Linhas Aereas, a subsidiary of Azul Brazilian Airlines, the Brazilian low cost carrier (LCC) founded by JetBlue's founder, David Neelman

Not much is known about the startup Zexus Air, except that it would operate on domestic routes, likely with a LCC business model. The carrier has not launched a website, and a quick scan of the airline's Facebook page reveals the following picture of a US Airways E-Jet with Zexus Air titles added via Photoshop or some equivalent. The unprofessional photo below does not re-assure anyone about the viability of Zexus Air's business plan, nor their level of capitalization at this present stage.

Image Credit: Zexus Air

Using Embraer E175 regional jets is a recipe for disaster in the Indian airline industry, thanks to discounts in airport costs for aircraft below a certain weight. These discounts, which apply to turboprops of the same size as the E175, are designed to promote service to Tier II and Tier III Indian cities. But as a side effect of the discounts, regional jet operations in India are simply economically un-viable. For example, regional operator Paramount Airways, who utilized a fleet of Embraer E-Jets, was decimated earlier this decade by competition from Kingfisher and Jet Airways ATR turboprops in the South.

Moreover, the Indian operating environment is anything but conducive to a new start-up airline. Demand is weakening thanks to a poor macro-economic climate, and the existing airlines are already locked into capacity growth thanks to massive aircraft orders. Moreover, seasoned LCC veteran Air Asia is soon to launch an Indian franchise, and even Air Costa, with a similar business model based around regional jets, is set to launch operations within a couple of months. Zexus Air, it would appear, is doomed from the start. 
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Airbus ends A340 era, selling last two aircraft, defaulted by Kingfisher Airlines

European airframer Airbus S.A.S. announced the sale of the last two A340-500 aircraft in its inventory, marking an end of the longest range model of its portfolio.
AJW Capital Partners Limited, a worldwide aviation services group based in the UK, has signed a firm contract for the purchase of two Airbus A340-500s aircraft. With this order AJW Capital becomes the newest Airbus aircraft customer. Powered by Rolls-Royce Trent 500 engines the aircraft features a comfortable two-class cabin for maximum passenger appeal. Commercial service will begin with an existing AJW Group customer early 2013.
The two aircraft MSN (Manufacturer Serial Number) 886 and MSN 894 were the last two of the five A340-500's ordered by Indian carrier Kingfisher Airlines, who defaulted on taking delivery of the entire order. The A340s with their ultra-luxurious cabin product were meant to be the flagships of the fleet with these two airframes originally allocated registration numbers VT-VJA and VT-VJB. Three aircraft from the order were sold by Airbus to Nigerian carrier Arik Air.

The four engined A340 series in general, and the A340-500 in particular was the least profitable aircraft for Airbus. With the rising costs of fuel, the ultra-long-haul (ULH) flights, the 282 seat A340-500, was designed for, no longer were viable. Airbus has been buying back A340s from airlines to help sales of the more efficient twin-engined sister, the A330, one of the most profitable aircraft for Airbus.

The two A340-500s appear to be destined to AZAL Azerbaijan Airlines with two Embraer 170s of another failed Indian airline, Paramount Airways. Swiss industry news website, ch-aviation, reports
AZAL has also acquired two ex-Paramount Airways (India) EMB-170s (c/n 17000002 and c/n 17000005) from Embraer subsidiary ECC Leasing that will already join the fleet in spring of next year. In other news, AZAL plans to add two A340-500s (c/n 886 and c/n 894) to its fleet for long-haul services that were originally ordered by Kingfisher Airlines, and then never delivered.
We opine that Azal will put these aircraft on a Baku-New York route.
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