Infographic: India's ten busiest airports: June 2013 vs. June 2012

by Vinay Bhaskara

June was a mostly positive month for traffic at India's ten busiest airports. As the table below shows, traffic grew at eight airports, while declining at just two. Total traffic at India's ten busiest airports grew around 2% year-over-year to roughly 10.7 million passengers, positive news after some declines in passenger traffic earlier this year. There were no changes in the top ten, either in constitution or in order, though Bangalore moved closer to surpassing Chennai as India's third busiest airport as traffic grew 2.4% against a drop of 1.2% at Chennai. Just outside the top ten, fast growing Srinagar surpassed Goa to become India's 11th busiest airport in June, and will likely surpass Trivandrum by the end of the year (Srinagar trailed Trivandrum by 11,000 passengers in June).

Airport	June 2013	June 2012	YOY Growth
Delhi (DEL)	3133135	3072780	2.0%
Mumbai (BOM)	2573600	2494202	3.2%
Chennai (MAA)	1077267	1090302	-1.2%
Bengaluru (BLR)	1022158	998302	2.4%
Kolkata (CCU)	854846	890240	-4.0%
Hyderabad (HYD)	711677	702940	1.2%
Kochi (COK)	428251	382566	11.9%
Ahmedabad (AMD)	356558	348273	2.4%
Pune(PNQ)	297421	276496	7.6%
Trivandrum (TRV)	243968	232024	5.1%
TOTAL	10698881	10488125	2.0%

The following chart shows traffic India's top ten airports in June 2013 vs. June 2012 (click for a larger view)

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Analysis: Jet Airways to add second daily flight between Mumbai and Singapore

by Vinay Bhaskara

Image Credit: Devesh Agarwal

India's largest full service carrier, Jet Airways, is adding a second daily flight between its largest hub at Mumbai, and Singapore. The second daily flight, effective 1st November 2013, will be served using 154 seat Boeing 737-800 aircraft in a 2-class configuration (16 J / 138 Y).

The proposed new flights, 9W 10/9 will be scheduled very tightly with the existing daily flights on-board the Airbus A330-200; 9W 12/11. Jet Airways Flight 12 currently departs Mumbai at 23:30, arriving at Singapore at 07:25 the next day. The return, Jet Airways Flight 11 departs Singapore at 19:05 after nearly 12 hours on the ground, returning to Mumbai at 22:00. The outbound, Jet Airways Flight 10, will be offset as a morning departure, leaving Mumbai at 09:50 and arriving to Singapore at 18:00. However, the return Jet Airways Flight 9 is currently scheduled to depart Singapore at 20:05 (just one hour after the existing flight), and return to Mumbai at 23:01.

These flight timings make little sense squished so close together on the return to Mumbai. While it is a good idea for Jet Airways to grow its international operations to Asia given the better performance of its international division as a whole. However, placing the return flight so closely with the existing flight is a missed opportunity for Jet. Especially with an integrated terminal coming to Mumbai by the end of 2014, Jet should be looking to maximize connectivity out of Mumbai, especially on international to domestic and vice-versa. A better schedule for the flight would have been a morning departure from Singapore at around 5:50 am, which would have arrived back at Mumbai at 8:50 am, in time for connections with morning departures to dozens of domestic destinations, while still leaving enough time for a turnaround to depart at 9:50 am. Jet already offers double daily flights to Singapore from Chennai and Delhi, and the second dailies to both of those destinations use a similar schedule to the one we propose here.

However, the addition of a second daily Mumbai-Singapore is a good move for Jet, and it points to future international growth opportunities for Jet. Even as the westbound international operations will largely be culled in favor of routing passengers through Abu Dhabi via the Jetihad partnership, there remain opportunities for Jet to grow its eastbound international operations. Air travel demand between India and East/Southeast Asia is growing rapidly, and Jet could offer more flights to the region moving forward, especially with the purchase of 50 737 MAX aircraft offering increased range on tap. 

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Thai Airways makes wholesale changes to India service in winter 2013-14

by Vinay Bhaskara

Bangkok based full service carrier Thai Airways International has announced a series of changes in its Indian services in the winter 2013-14 season as per the Airline Route blog

On its Bangkok-Delhi services, beginning 30th September, services will increase from 11 weekly to 14 weekly.

Daytime Thai flights TG323/TG324 will increase from four flights per week to daily using a 299 seat Airbus A330-300 aircraft in a two-class configuration (36J / 263Y). TG-323 departs Bangkok at 07:35, arriving at Delhi at 10:30. The return flight TG-324 departs Delhi at 11:55 arriving at Bangkok at 17:25.

The red-eye flights TG315/TG316 are also seeing an increase, with Boeing 747-400s replacing the existing Boeing 777-300s, an increase from 364 seats (34J / 330 Y) to 374 (49J / 325 Y) or 375 seats (50J / 325 Y), depending on the day. The up-gauge represents a large increase in premium cabin capacity by almost 45% regardless of the 747 configuration used on the route.

TG 315 departs Bangkok at 20:40, arriving at Delhi at 23:40. The return red-eye (overnight) TG 316 departs Delhi at 00:55, arriving at Bangkok at 06:20, in time for connections to Thai's morning departure bank to Asia and Australia. Both flights are operated daily.

Bangkok - Hyderabad was planned to increase from four flights per week to five using the A330-300, but these plans have been shelved, with services remaining at four per week this winter.

The daily Bangkok-Mumbai services have been down-gauged from Boeing 747-400 to Airbus A330-300s for the winter season, a capacity downgrade of around 20% (roughly 35% in premium cabins).

Additionally, Thai's low cost wing Thai Smile, which by January 2014 will serve 19 destinations across India, China, Laos, Macau, Myanmar, Sri Lanka, and Thailand, is also shaking up its India operations. Thai Smile has a fleet of six 174 seat (30Y+ / 144 Y) Airbus A320-200s with its primary hub at Bangkok and a secondary hub at Phuket. Thai Smile is shifting its flight numbers to and from India, and increasing services as well.

Flight Number Changes

• Bankgok-Ahmedabad flights are shifting from TG 765/766 to TG 2935/2936
• Phuket-Delhi flights are shifting from TG 761/762 to TG 2931/2932
• Phuket-Mumbai flights are shifting from TG 763/764 to TG 2933/2934

Frequency Increases

• Bangkok-Ahmedabad increases from two to four weekly flights
• Phuket-Delhi increases from two to four weekly flights
• Phuket-Mumbai increases from two to three weekly flights

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Analysis: Delta-Virgin Atlantic tie up does little to enhance Indian connectivity for either carrier

by Vinay Bhaskara

Image by, and copyright Devesh Agarwal. Used with permission.

Earlier this week, Atltanta-based full service carrier Delta Air Lines and London based Virgin Atlantic Airways announced that their application for a code share and joint venture partnership on trans-Atlantic flights had been approved by antitrust authorities in both the United States and European Union.

The deal, in which SkyTeam member Delta will purchase a 49% stake in Virgin Atlantic previously owned by Singapore Airlines, covers 108 routes, 91 by Delta, and 17 by Virgin Atlantic. According to the press release put out by Virgin Atlantic, the deal offers the following benefits for customers.

The agreement includes the following customer benefits:

• Virgin Atlantic customers will now enjoy a vast network of connecting North American destinations while Delta customers will gain an additional six daily frequencies between London to New York

• SkyMiles and Flying Club loyalty programs that will offer up to 125% tier bonus miles* to frequent fliers on all Delta and Virgin Atlantic flights - not just those within the codeshare agreement

• Reciprocal Delta Sky Club and Virgin Atlantic Clubhouse access at applicable airports for Upper Class and BusinessElite passengers and Flying Club Gold members and SkyMiles Platinum and Diamond members

• Priority check-in, boarding, baggage handling and additional baggage allowance on all Virgin Atlantic and Delta operated flights worldwide - not just those within the codeshare agreement - for Virgin Atlantic Upper Class and Flying Club Gold members as well as Delta BusinessElite and SkyMiles Gold, Platinum and Diamond members

This is all pretty standard fare for these types of joint venture agreements, though the reciprocal frequent flyer benefits are better than those for most of Delta's partners in the SkyTeam alliance. The benefits will kick in on July 3rd, and will hopefully mark better times for Virgin Atlantic after two straight years of massive losses and increased pressure from rival British Airways at their core hub at London Heathrow.

However, looking at the deal from an Indian consumer's perspective, it adds very little to the existing offerings for both carriers in the India-USA market. Delta Air Lines currently operates a daily flight between Amsterdam and Mumbai, which is fed by its myriad services between the US and Amsterdam. The deal with Virgin Atlantic does nothing to affect the existing Delta service one way or the other.

However, the deal does open up the potential for Delta to add London as an European connecting point for flights to India along with the existing Amsterdam and Paris Charles de Gaulle points, as well as for Virgin Atlantic to enhance its US-India connectivity on existing flights to and from India. However, the schedules just don't bear this out. First of all, the Delhi flights are poorly timed to connect with the additional Delta flights in either direction. The 5:55 pm arrival into Heathrow means that there are no connections possible onto Delta flights; the last Delta departure from Heathrow is 5:10 pm. In the other direction, every Delta arrival into Heathrow is before 12:15 pm, yet the Delhi flight does not depart till 10:00 pm. That 10 hour (minimum) layover simply is not competitive with the quick connections offered by the Middle East Big 3 competition.

In terms of Mumbai, the arrival into Heathrow at 7:55 am allows for relatively effective connections to New York JFK, Minneapolis, and Atlanta, but not Boston or Detroit (the switch from Terminal 4 to Terminal 3 requires passengers to clear security again at Heathrow, adding time to connections). The departure from Heathrow to Mumbai at 10:35 am allows for connections from Boston, New York JFK, and Atlanta, but not from Detroit or Minneapolis. Furthermore, these destinations already have easy access to Mumbai services via Amsterdam.

So in the short term, the Delta-Virgin Atlantic tie up has limited effect on the Indian market. However, it could push Virgin Atlantic to re-time its Delhi and Mumbai operations (creating a red-eye at Delhi?), which would only make Virgin Atlantic's Indian presence more competitive.

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Report: Jet Airways scissors hub moving to Amsterdam

Earlier this week in a press conference at Amsterdam’s Schiphol Airport, Etihad CEO broke the news that Indian full service carrier Jet Airways will be transferring its European scissors hub from Brussels to Amsterdam. Thanks to the recently created Jetihad partnership (Etihad owns 24% of Jet Airways), Etihad exerts significant control over Jet’s international strategy.

Jet Airways currently operates daily flights from Mumbai and Delhi to Brussels, which then continue onwards to Newark and Toronto. Etihad recently signed a cooperation agreement with KLM that covers several destinations under a joint venture agreement. While Etihad (and by extension Jetihad) have no plans to join SkyTeam, they are apparently interested in working more closely with Air France-KLM and Delta. Etihad already places its code on 12 KLM destinations out of Amsterdam and on 15th May launched daily services between Abu Dhabi and Amsterdam using Airbus A330-200 equipment.

No timeline has been set for the transfer and it remains to be seen whether the shift of Jet’s North American services to Amsterdam is an intermediate step, or the final plan for these flights. Most industry observers had predicted that Jet Airways’ long haul fleet would be re-deployed for use on westbound international services through Abu Dhabi; indeed part of the value proposition for the Jetihad deal was the ability to utilize Jet Airways’ wide-body fleet to augment Etihad’s hub in Abu Dhabi via a scissors hub.

Still, Amsterdam makes sense as an intermediate transfer point. Mumbai does have more O&D demand to Brussels, but KLM’s Amsterdam hub is much stronger than the comparable operation for Brussels Airlines in Brussels. So Jet Airways will get some additional feed in Amsterdam. And if they were to launch a joint venture for US-Europe-India with Air France-KLM and Delta, it could be potentially lucrative.

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Photos: New Delhi airport - aerial views of the ramp, Jet's A330 fleet, Blue Dart and Kenya Airways freighters

by Devesh Agarwal

Once again the kind friends at Delhi International Airport (P) Ltd. (DIAL), the company which operates the Indira Gandhi International Airport (IGIA), supported the Aviation Photographers India Foundation by giving access to the airside, after they had received permission from the DGCA.

Yours truly, got on to a Rosenbauer turn-table ladder (TTL) of the airport fire-fighting team, and took some aerial shots of the airport in the dawn's early light.

Readers compliment us on the quality of photographs. It is possible due to supporters like DIAL, their management, their air-side chief Ashutosh Kulshreshtha, their fire chief Mr. Kadam, and all their respective team members. Some dare-devilry on my part after being up for 36 hours straight shooting through the night, was the spice added to this mix.

Enjoy the three aerial views and then continue scrolling down to see a photo of me in the TTL bucket way up in the sky, thanks to Praveen Sundaram.

This photo is of the old Terminal 2, which is now used exclusively for Haj flights. The ramp is being used as a large parking lot for the Jet Airways Airbus A330 fleet, and some aircraft from the Kingfisher fleet. Five A330-200s and one new A330-300 are parked. The seventh A330 is parked on the remote ramp, visible in the second picture. Six A330-200s are almost half the Jet Airways fleet. One has to question why are they parked up in Delhi and not being used. There are rumours that Jet is going to lease them to Etihad. More Jetihad.



The remote ramp of the mega Terminal 3. This photo has two rare events in one. First is the Kenya Airways Cargo Boeing 737-300, not seen before this date. Second, is a rare daylight confluence of four Blue Dart freighters of their fleet of six aircraft. Two 757s parked, one 757 taxiing out, and the sole 737-200 near the top right of the photo, waiting to line-up and take-off.



Normally performed by an Airbus A340-300, this day Finnair flight AY021 non-stop from Helsinki, was performed by a Boeing 757-200 with winglets. Unfortunately this aircraft OH-LBT went technical and could not perform the return flight.



And here I am ....... way up there. Let me say, despite the supports on the trucks, the bucket wobbles and sways. It was scary and one has to be very gentle in their movements. Hats off to these fire-fighters.

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Reduced ADF at New Delhi airport commences tomorrow. No change in UDF.

Passengers flying out of New Delhi's Indira Gandhi International Airport will receive some relief on the airport fees they pay.

Based on an order issued by the Airports Economic Regulatory Authority, the Airport Development Fee (ADF) rates at IGI Airport will be halved to Rs. 100 per embarking domestic passenger and Rs. 600 per embarking international passenger starting midnight tonight i.e. January 1, 2013.

The collection of the ADF is extended by two years and will be now collected tentatively till April 2016.

The staggered User Development Fee (UDF) will still continue to be collected, with no change, in addition to the ADF.

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Video: Plane spotting at New Delhi Airport - Songs of Runway 28

Hope you had a good holiday. Turn the volume up for this one. Another of our videos from New Delhi's Indira Gandhi International Airport, thanks to the team at Delhi International Airport Ltd.

This one focusses on the sounds heard at the runway from various aircraft and their many engines. Hope you enjoy.



As usual comments, praises, or brick-bats are always welcome.

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Video: From the ramp to the runway. On the ground at New Delhi IGI airport

As we wind down the week, and the year, we present a video showing the action on the ground. In the world of aviation, a lot needs to happen on mother earth, before the beautiful birds take to the sky.



Special thanks to the friends at Delhi International Airport (P) Ltd. who made this happen.

For our readers who subscribe by e-mail, you may need to use this link to see the video.

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Jet Airways international fleet and network operations analysis

by Vinay Bhaskara

A recent report from Flightglobal quoted Boeing Asia head Dinesh Keskar as saying that India’s largest full service carrier, Jet Airways, could potentially convert existing order into the larger Boeing 787-9 variant. Jet Airways currently has 10 Boeing 787-8s on order for delivery from 2014 onwards, but Mr. Keskar said, “"If they do that [convert orders to the 787-9], there will be a delay. The -9s, however, have better economics for them, so now they are looking at their portfolio."

Interestingly, the move would parallel Jet Airways’ recent fleet planning decision to shift away from the smaller A330-200 to its larger cousin the A330-300. Part of the impetus behind the decision was certainly the competition from Jet’s largest Gulf and Asian rivals. Most of these carriers operate not only the A330-300, but also the Boeing 777-300ER, both of which blow the A330-200 out of the water in terms of unit costs on regional routes. Especially as Jet consolidates around the core long haul routes in New York, Toronto, and London, all of which face severe competition from a myriad of airlines around the world. In response to this heightened state of competition, Jet made the correct choice in opting for a larger variant.

The same principle applies to the 787-8 versus the 787-9. While the smaller 787-8 (seating around 220 passengers) was the first 787 variant to come out, most industry analysts (including Bangalore Aviation) feel that the 787-9 will have much better operating economics, as the airframe is actually more optimized for aerodynamic driven fuel efficiency and has lower seat-kilometer costs thanks to its larger seating capacity. Furthermore, Boeing’s current projections for the ranges of the two aircraft show the 787-9 to have a range of 8,000 – 8,500 nautical miles (9,210 – 9,780 miles), which would allow Jet to operate most, if not all, US-India route pairs nonstop, including routes as long as Mumbai and Bangalore to the US west coast. Bangalore-San Francisco nonstop would be a gold mine to whichever carrier launched it first, and given that Air India only has 787-8s and that United will only receive 14 787-9s (many of which will likely be used to retire aging Boeing 777-200 non-ERs), Jet could conceivably be the first airline to launch onto this important route.

* The range figures for the 787-9 are quoted from sources within the industry

Currently, as per the Jet Airways fleet matrix, beyond the 787s, Jet has 3 A330-300s on order (the A330-300s start service on 23rd December) with 1 already having joined the fleet, 10 operational A330-200s with 5 outstanding orders, and 5 operational Boeing 777-300ERs with 5 aircrafts leased out to Thai Airways International. With the understanding that any *new* (beyond the initial 10) 787 orders would not be delivered till around 2018 at the earliest, the following is my suggestion for Jet Airways’ widebody fleet plan moving forward.

Immediately switch the 787-8 order to 787-9s and trade delivery slots with other airlines wherever possible to ensure delivery of these aircraft between 2015 and 2018. Order 15 further 787-8s for delivery 2018 onwards as well as 15 more 787-9s for delivery in the same timeframe. Of the current A330-200 orders, convert all 5 to A330-300s and cancel one order to create a fleet of 8 A330-300s, with the last 6 being the recently upgraded A330-300 with higher gross weight and range. Keep the current 5 777-300ERs as is, and reconfigure the 5 777-300ERs currently at Thai Airways into a 2-class configuration when they are returned (aim for 349 seats in a 2 class configuration – similar to Air Canada).

*These plans imply that Jet Airways will use Mumbai as an international connecting hub moving forward, made possible in part by the new integrated terminal.

Following this shift, the A330-200 would be used on European flights (excluding Heathrow) from Mumbai (Brussels-Chicago, as well as Paris, Frankfurt, and Munich – the latter two assume Jet’s entry into Star Alliance), Delhi (Brussels – Toronto), Bangalore, and Chennai (both to Munich), as well as on Delhi-Hong Kong-Manila, Mumbai – Seoul, and potentially Bangalore-Narita. Longer term, the 787-8s would replace the A330-200s one to one, converting the Delhi-Toronto and Mumbai-Chicago legs to nonstop flights.

The A330-300s would be used primarily on regional and VFR heavy routes. Mumbai-Brussels-Newark would continue in the very near term. Additionally, Mumbai/Delhi – Beijing, Mumbai – Tokyo-Narita, Mumbai – Jakarta, and Mumbai -Shanghai could be launched with the A330-300s, as well as Mumbai-Nairobi, Mumbai-Cairo, and both Mumbai-Dubai flights. Longer term, 787-9s would be used to replace the A330-300s on a one-to-one basis after all of the 777-300ERs have been replaced.

The 5 777-300ERs currently in the fleet would be deployed onto the two daily flights between Mumbai and London-Heathrow, as well as the daily Delhi - London-Heathrow. Mumbai – Hong Kong would remain as an 777-300ER service, with potential extension to Taipei since the aircraft is required to spend almost 8 hours in Hong Kong anyway for commercially viable timings. And Mumbai-Singapore could be converted to 777-300ER for the night flight, leaving one aircraft for spare.

The remaining 5 777-300ERs would be reconfigured into 349 seat configuration without first class, thus allowing the aircraft to fly India-US nonstop. Two aircraft would be deployed onto the Mumbai-Newark sector nonstop (in partnership with United through a potential JV after joining Star Alliance), while two more aircraft would ply Mumbai – Boston nonstop 3 weekly, and Mumbai- New York JFK 4 times per week. The final aircraft would be used to run thrice weekly flights Mumbai-Sydney-Auckland.

All of these 777-300ERs would be replaced with the first batch of 787-9s. The first 5 aircraft would be configured in 3 class configuration as a subfleet, while the remaining 20 787-9s would be configured in 2 class configuration for 1 to 1 replacements and growth.

All of this would leave Jet Airways with a standardized widebody fleet of 40 Boeing 787s, 28 for replacement, and 12 for growth. The standardized fleet would help save money on maintenance and training (the so-called “commonality” effect) and if necessary, Jet could even order the larger 787-10 to replace some A330-300s and 777-300ERs if demand conditions warrant such an action.

All of the above is an idealized scenario based on several assumptions, but it represents the kind of strategic thinking one should expect from Jet. However, it is also possible that Jet Airways simply wants to delay the acquisition of aircraft due to a funds constraint, in which case the delayed timeline of the 787-9 would offer Jet more time.  

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Video: Plane photography at New Delhi Indira Gandhi airport

by Devesh Agarwal

Recently, with permission of the DGCA, the Aviation Photographers India Foundation visited the air-side at New Delhi's Indira Gandhi International Airport (IGIA) as guests of the airport operators, Delhi International Airport Ltd., for which each member of the foundation, including me, express our grateful thanks.

The famous "mudra" wall at Terminal 3. Mudras are hand gestures used in classical Indian dance forms.

The first of a series of videos, produced by Abhishek Singh in cooperation with Bangalore Aviation, entitled "The Departures" is below the fold.

It was thrilling. We shot near the runway amongst tall dry grass, classic of the Delhi flora, and we could hear snakes slithering near by. But the roar of jet engines and the love of those magnificent flying machines, supported by all the people involved in running an airport, kept us put.

Hope you enjoy this labour of love. Do change the quality to HD (720p or 1080p) to really enjoy the video. If you are reading this story in our e-mail digest, you will have to visit our website, or see the video here.

Also please visit our Youtube page for more videos. As usual comments are always welcome.

You can also embed this video on your website. Just click on the Youtube logo on the bottom right, once the video commences. On Youtube, click on the share tab and use the embed code.



We also acknowledge with thanks for the assistance provided by Nikon India Pvt. Ltd. with the equipment.

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SpiceJet to launch services to Guangzhou

Indian low cost carrier (LCC) SpiceJet will be launching flights 4 times per week between Delhi and Guangzhou, the hub of the Chinese Pearl River Delta. Services will begin on 8th February, 2013 with the following schedule:


SG 81 -- DEL - CAN -- 1720-0035+1 -- 2467 --  737-800
SG 82 -- CAN - DEL -- 0155-0525 -- 1357 -- 737-800

SpiceJet's competition on this route will be SkyTeam member China Southern, who operates a daily 757-200, and is the only other airline to ply the route between India. While the timings are far from optimal, they do offer good connections to Chennai in both directions, which is an important connection between India's manufacturing center and the hub of Chinese manufacturing.

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Night photos from Delhi Indira Gandhi international airport - the Airbus collection

Continuing our photo essay (see part two) on the night photography at Indira Gandhi International Airport (IGIA), thanks to the support of the kind friends at Delhi International Airport (P) Ltd. (DIAL) and the DGCA, today is the Airbus collection.

Unlike Bangalore where the mid-sized Airbus (since the A380 is not permitted) is the dominant aircraft type, Delhi with its higher traffic volumes, commands the larger aircraft of Boeing, the 777 and 747.

Yet, one does get to see the Airbus of mostly Indian and European airlines.

IndiGo Airbus A320-232 VT-IES. Used for international flights at night and domestic during the day.

Jet Airways Airbus A330-200 VT-JWM.

Aeroflot Airbus A330-200 VP-BLY

SWISS Airbus A330-300 (the longer brother of the -200) HB-JHI

KLM Royal Dutch Airlines Airbus A330-200 PH-AOK

We request you to please encourage these photographers via a comment on the photo site.

Photos are used with permission of the photographers who retain full copyright. Pictures may not be used without their specific permission.

Hope you enjoyed this photo-essay series.

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Night photos from Delhi Indira Gandhi international airport - the Boeing 777 collection

Continuing our photo essay (see part one) on the night photography at Indira Gandhi International Airport (IGIA), thanks to the support of the kind friends at Delhi International Airport (P) Ltd. (DIAL) and the DGCA, today is the Boeing 777 collection.

The 777 is largest twin-engine airliner in the world, along with being one of the most popular, and the most profitable for its manufacturer, Boeing.

The newer 777-300ER, 777-200LR (both of which form bulk of Air India's long distance fleet), and Freighter variants feature the largest engines in aviation history, the General Electric GE90-115B or -110B1 engines. The GE90-115B, has a fan diameter of 3.25 metres or 10ft 8in. This photo offers a size comparison between the GE90 and the earlier engines used to power the venerable Boeing 747.

The GE90 has a distinct "moaning" sound when it starts. It is music to us plane spotters. Play the video to hear it. Anywhere in the world, if you are within earshot of an airport, or on-board a 777-300ER or 777-200LR flight, keep an ear out for the sound.

Air India Boeing 777-200LR (also called 77L in airline parlance) VT-ALE (equipped with the GE90-110B)

Emirates airline Boeing 777-300ER (77W) A6-ECK (equipped with GE90-115B)

Singapore Airlines Boeing 777-300 (773) 9V-SYF (not an ER. Equipped with Rolls Royce Trent 800 RB212 engine)

Thai Airways Boeing 777-300 HS-TKB (equipped with Rolls Royce Trent 800)

We request you to please encourage these photographers via a comment on the photo site.

Photos are used with permission of the photographers who retain full copyright. Pictures may not be used without their specific permission.

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Night photos from Delhi Indira Gandhi international airport - the Boeing collection

Thanks to the support of the kind friends at Delhi International Airport (P) Ltd. (DIAL) who operate the Indira Gandhi International Airport (IGIA), and the DGCA, some members of the Aviation Photographers India, went airside for some photography. Click here to see photographs from the entire group.

Below are some night photographs from the event taken by the Bangalore Aviation team of Devesh and Vedant. Photographing airliners at night is very challenging, very tiring, but at the end of it, most exhilarating. It is when the big boys from across the world come, the airport is relatively quiet so we can get up close to the planes, and the creativity we can exercise with the light. For example the star bursts are not generated using any filters. They are created by stopping down the aperture and increasing the time the shutter is open.

We hope you enjoy. Do take the time to leave a comment, either here, or on the photograph page itself. Considering we are hobbyists, praise always helps.

Today is the Boeing collection from the 757 to the new 747-8i. Click on the images to see the original photos in high resolution. We are excluding the 777s which will be posted in a separate collection tomorrow.

Lufthansa Boeing 747-8i D-ABYA

China Southern Airlines Boeing 757-200 B-2823

China Southern Airlines Boeing 757-200 B-2812 (another night, another plane). Compare the star bursts between the two photos. This one is created used a prime 50mm f/1.8 Nikon lens, and at around Rs. 8,000 it is a steal, compared to the 24~70mm f/2.8, used for the shot above, which costs six figures.

Kenya Airways Boeing 767-300ER 5Y-KYX

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SpiceJet Q2 FY2012~2013 quarterly results financial analysis

Earlier this week, Indian low cost carrier SpiceJet posted a Rs. 163.5 Crore net loss for the second quarter of fiscal year 2012-13. While this represented a 32% better result than the same period last year, it is still a heavily disappointing result, giving the recent surge in the fortunes of India’s airlines after the shut-down of full service carrier Kingfisher and the corresponding rise in fares.

Revenues grew a robust 57% to Rs. 1207 Crore, but even still, a net margin of -13.5% is almost flipped 180 degrees from the ideal result.

Revenues were certainly buoyed by general fare increases and the continued maturation of Q400 markets.

What makes the quarterly results particularly abysmal is that SpiceJet has finally gotten its primary challenge of the past few quarters, fuel costs, under control thanks to the general global stabilization in oil prices. Year over year gas prices grew by a relatively modest though still challenging 11.6% on a per seat-kilometre basis.

What is concerning is that the dizzying rise in fares over the past quarter, over 30% on some sectors, should have more than outweighed the fuel price growth. There seems to be poor cost discipline in the airline's other cost-line items, primarily aircraft maintenance, which grew more than 17% on a per seat kilometre basis, and aircraft lease rentals, which jumped a staggering 26.2% percent year-on-year per seat kilometre.

These two cost line items, and indeed the fuel expenses as well, help drive home an essential point – SpiceJet’s losses are driven by capacity growth; i.e. poor capacity discipline by SpiceJet.

While a small part of SpiceJet’s maintenance cost increases are due to the natural aging of their 737NG fleet, the primary driver behind increased maintenance costs is the high rate of growth that SpiceJet continues to pursue. For the quarter, SpiceJet recorded a whopping 20% increase in available seat kilometers – and the increase in fleet size and aircraft utilization due to this capacity are the drivers behind the rise in maintenance and aircraft lease costs, as well as a primary factor in the 600% rise in depreciation costs.

Given the current environment in India, where fares are finally enjoying the sort of sustained quarterly fare increases necessary to overcome the ludicrous policy of over-taxation which double the impact of persistently high fuel prices, why is SpiceJet pursuing a 20% capacity growth?

Part of the answer is, undoubtedly, that their outstanding order for 20 737NGs, which locks them into almost continual route and fleet growth, at least for the next few quarters. But another part is what I see as the mentality that is prevalent amongst all of the Indian carriers, a market-share chasing mentality that values profitless growth over the profitable status quo. While there are exceptions to this rule, GoAir being the chief amongst them, Indian carriers have over the past decade consistently pursued growth at any cost.

Now this pathway has come back to haunt SpiceJet. Don’t get me wrong, there are profitable avenues of growth available to SpiceJet, chiefly on under-served regional sectors using the Q400, and on regional international routes out of Delhi. However, thanks to the over-commitment to new aircraft, SpiceJet’s strategy has instead been to add new routes and frequencies on heavily competitive domestic sectors, primarily on inter-Metro sectors. Then the accumulated losses on these flights simply add to SpiceJet’s debt load, making it harder for them to find financing for the Q400s and reinforcing the negative feedback cycle of profitless growth.

It is also interesting to note that SpiceJet has seen the steadily creeping interest expenditures. While SpiceJet is far away from the interest burden that crippled Kingfisher, and bankrupt US carrier American Airlines, and have hamstrung Jet Airways in recent months, this should be a cause for long term concern and constant observation.

Current finance charges are close to 4.8% of revenues, up sharply from less than 1% just a year ago. It is important to note, SpiceJet actually had Rs. 747.10 lakhs worth of interest costs, it has not accounted for, in this quarter, stating ongoing litigation at the Bombay High Court – a charge that would have made the already dismal results look even worse.

Moving forward, there is undoubtedly potential for SpiceJet to grow and improve its financial performance, especially if it can find financing for the next set of Q400 deliveries. The key for SpiceJet is capacity discipline – they need to find some way of bringing revenues in line with costs.

Cost-cutting is difficult since more than 75% of their costs are effectively fixed in the short to medium term. The easiest way to do this is by holding your supply (capacity) constant, which will in turn drive an increase in fares and thus increased revenues. However, this strategy will be tested by the constant fleet additions by competitors IndiGo and Jet Airways, as well as a constant observation by the government to keep fares "in check", a populist interference that will only grow as elections get closer.

A more plausible strategy would be the Blue Ocean growth being driven by CEO Neil Mills. The carrier is applying and getting route permissions for un-served and under-served international routes like Kabul, Guangzhou, etc. SpiceJet has to follow a similar strategy for the domestic market too. SpiceJet is gradually serving tier two and three cities from Bangalore, but is still not basing a full Q400 fleet here. Bangalore Aviation is given to understand that the airline is looking for a "good deal" from BIAL, the airport operator, but is not finding one, since the airport is under-capacity at present.

Given these macro-economics, for the short term, SpiceJet may continue to pursue a aggressive capacity growth path of more than 15% per quarter, and this will keep pressure on profitability. The faster the airline shifts strategy the faster the chances of it flying out of the trap.

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MAPS: New international flying rights granted to Indian carriers

India's erstwhile civil aviation ministry has granted new international flying rights to both national carrier Air India, and private carriers Jet Airways and SpiceJet.

First up is Air India, which received flying rights for  several new routes from its Delhi and Mumbai hubs.

The Sydney and Melbourne rights give credence to the idea that Air India plans to begin operations on the Kangaroo route. 

Meanwhile, Jet Airways received a mix of routes from Delhi and Mumbai as well.

Of these routes, Mumbai-Zurich and Delhi-Tashkent are the best prospects (especially the former if Jet Airways is able to secure a place in the Star Alliance). Finally, SpiceJet secured a potpourri of international rights, though a couple could be used to augment their burgeoning central hub in Delhi.

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Opinion: Kingfisher Airlines' license suspension actually helps Vijay Mallya

On Saturday India's civil aviation minister Ajit Singh, announced that aviation regulator, the DGCA had suspended the operating permit of Kingfisher Airlines, after the carrier failed to respond to their show-cause notice.

With mountains of unpaid debts, the airline has been on life-support for some time now. Unpaid employees have been striking since October 1, resulting in a suspension of all flight operations by the Dr. Vijay Mallya promoted airline.

While many proclaimed their eulogies, the PR folks at the airline, called the suspension temporary

"We would like to clarify that this is not a cancellation but a temporary suspension which is valid only till such time that we submit a concrete and reliable revival plan to the satisfaction of DGCA."

The alcoholic beverages (alcobev) business in India is at the intersection of public relations, sexually aspirational marketing, board-room machinations, manoeuvring around the hundreds of contradicting laws, gratification and slush funds of administrators and politicians.

Call me a conspiracy theorist, but I refuse to accept that a man who made his billions in this tricky business, will just fold up his airline, risking his personal assets and those of the UB Group, which have been given as surety on the loans to the airline.

Going out on a limb, I suspect, this suspension may be one last, desperate move by team Mallya, to scare the stakeholders, employees, banks, vendors, and government, into saving the airline.

The striking employees who have been unpaid for seven months have been taking a hard line. With the management offering only one month salary, reconciliation meetings till now have proved futile. Ahead of their meeting with the management on Monday, the suspension suddenly gave the employees a preview of cold, hard reality. If the airline goes under, not only will they not get their unpaid salaries, but they will have to look for new jobs in a shrinking Indian aviation market.

The banks which are refusing to lend any more funds, demanding the Mallya bring in about $500 million (Rs. 2,500 Crore) to re-capitalise the airline, were given a preview of Kingfisher going under. Banks have collateral for only about 10% of their loan exposure. A lengthy, expensive, legal recovery process is not a desirable situation for them. Recovery proceedings may also bring to the surface undesirable information and questions, about potential political influence in these government owned banks granting loans to the airline.

The vendors, especially the airports, the fuel companies, and lessors, who will have to commence lengthy and expensive litigation to recover their dues if Kingfisher goes under. The mess will get further complicated due to cross litigation between the various vendors. For example the lessors who own the aircraft will have to pay the dues of airports before they can take away their aircraft.

The Government, by ordering the suspension or cancellation of Kingfisher's permit, has given Mallya the perfect escape route. He can now dump the entire problem in to the government's lap, saying "What can I do? I did my utmost to save the airline, but the government cancelled the permit. Now they must deal with the consequences."

The spin doctors are UB Group are masters in PR. We recently experienced how well they diverted the media's attention away from the Rs. 60 Cr. humanitarian loan extended by banks. Get a Kingfisher stewardess out in protest saying she is out on the streets, and all the TV news channels will cover it from head to toe. In no time, public opinion will be turned, that the government must be humane and take care of those poor unpaid employees who are now out on the streets.

Last, but not the least, is us passengers and tax payers. Thanks to capacity reductions, fares are already up 20% in the last few months, and over 50% compared to last year. With the Dussera festival this week, kicking off the peak travel season till mid January, and Kingfisher out of the picture, fares will rise to astronomical levels. There will be a public outcry and the government will be forced to defend the situation with the Kingfisher spin doctors saying "See, we tried to save the airline. The government closed us down. These fare increases are due to that."

The situation is being unfolded exactly how the King of Good Times wants it.

What are your thoughts on the suspension of Kingfisher's permit? On my conspirator theory? Your thoughts and comments are always welcome.

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Exclusive interview: Giorgio De Roni - CEO GoAir - Part 2: We first deliver results, we do not over-promise.

Continuing from part 1 of the interview with the the soft spoken CEO of GoAir, Giorgio De Roni, who has quietly turned around the Wadia family promoted airline from a rock bottom position, dismal market share, and reputation for frequent cancellations, to a top performing contender in the Indian airline industry, with some of the best performance parameters in the industry.

In the concluding part of this broad ranging two-on-one interview with Devesh Agarwal and Vinay Bhaskara, De Roni, shares his management mantras, techniques and methods utilised in the turn around of GoAir.

Q: How are things developing at GoAir and in the Indian airline industry as a whole over the past year?

Well the industry is going through a challenging period due to many issues in the market.

Certainly and foremost the cost of fuel and taxation on fuel. We have recorded an increase of 7%, which is a huge increase given that fuel represents more than 50% of our total costs.

Then we have a market that I’m fully confident and sure that in the medium to long term is growing. But unfortunately in the latest few months, we have recorded a drop in respect to last year, and that is a big concern in the short period.

We have some infrastructure bottlenecks and again this is penalizing airlines in India.

That said, I remain confident in the growth of the Indian aviation sector. We might require some revision of the regulatory environment which is a little bit old fashioned. If I’m not wrong the base of the legal framework is dated 1934, so even before the Chicago Convention.

I feel that some commitment from the government to revise and improve efficiency in the system is necessary. I feel confident that all stakeholders will be able to deliver us such an environment.

In my view, a country with 1.2 billion people should have a much stronger aviation sector. Definitely there is an opportunity to create a hub in India, and there is probably also a space for more than one hub. But we need some efficiency in all of the systems.

Q: Till a little more than a year ago, GoAir did not enjoy the best reputation in the industry in terms of dispatch reliability. In the last 1.5 years, that has turned around literally 100%. GoAir ranks, right at the top in terms of least cancellations and best on-time performance. Can you share with us what were the issues confronting GoAir and some of the steps you took to solve them when you joined the airline?

Well I think that quality to customer is one of the pillars of any airline, and we are committed to deliver value for money. Definitely I am aware that in the past, GoAir was suffering in terms of on-time performance. We are now averaging around 90%. And notwithstanding the high on-time performance, we also have high aircraft utilization, because in July we achieved 13 block hours per aircraft per day, which is remarkable for a narrow-body airline.

I think that the only thing that I am trying to reach within the organization is trying to deliver consistent strategy, and a consistent approach throughout the management team and down to the front line. We are investing hugely in terms of training and hugely in processes and procedure. We were IOSA approved [IATA Operational Safety Audit] at the end of 2010. Since it is a 2 year approval, we are now going through the renewal of that certificate. All these aspects are contributing to keep our quality and standard of performance high.

IOSA? We didn’t know that you had undergone IOSA. We only knew that Air India had undergone IOSA.

Well, one of our characteristics is not to overpromise, but first to deliver the result and then communicate. Sometimes my shareholder [Wadia family] blames me, saying that we [GoAir management] should be more proactive in communication.

Well my view is that we have to communicate only what we are able to deliver. And definitely IOSA is a good achievement.

But in the end, does a passenger choose GoAir for being IOSA certified? No I don’t think so.

I think that it is more important to deliver on-time performance, and good service, both on-board and on the ground. And that is why we are investing significantly in training.

Q: You mentioned that GoAir is achieving 13 hours aircraft block utilisation time, That is almost 20% or 30% more than IndiGo or SpiceJet. You appear to have probably the best aircraft utilization in the country?

Well last year we received an award by Airbus for being the best operator of the A320 in whole of Asia Pacific, Middle East and Africa in our fleet size. [Editor's note: A320 behemoths AirAsia and IndiGo are in the same geography]

And this is remarkable because of course the higher utilization continues to keep fixed costs more efficient , but also it is remarkable because it is accompanied by a very good on-time performance.

Q: How long are you looking at keeping the same level of aircraft utilization?

I hope that as soon as we get approval, we can start operating on international flights and increase the aircraft utilization by adding some flights at night. Of course on a daily basis we need to carry out maintenance checks on all the aircraft. And these keep the aircraft grounded for 3.5~4 hours every day, so the limit for the utilization is 20 hours.

We have a turnaround time of between 25 and 30 minutes depending on the size of the airport and efficiency of the airport in providing turnaround services. And that’s the limit I cannot go beyond.

Because our first departure is at 05:15 and our last arrival is at 01:00 the following day. Of course not all of the aircraft have such an intensive utilization, but we manage to have a pretty good utilization.

Q: So does this high utilization change the timeline on heavy maintenance checks for the A320s?

We do have C-checks. Another policy of the company is to keep the fleet as young as possible, because this brings efficiency in maintenance and efficiency in fuel consumption, and a good product to our customer. It means that C-checks. Yes we have undergone 8 C-checks for the fleet. These keep the aircraft grounded for around 3 days. We outsource the C-check maintenance. We also have engines updated but considering that we have spare engines, the high utilization is not as much of a concern.

Q: Many Indian carriers are moving to the concept of "power by the hour" with engine manufacturers. Is GoAir using this business method?

[Editor's note: In this business method, airlines agree to pay engine manufacturers a unit price per hour of usage of the engine. The manufacture is then responsible for the performance and maintenance of the engine.]

We do not do so currently, but we are exploring this method. If it saves us money and helps us improve our despatch reliability we will consider it most strongly.

Q: Can you share some of your operational numbers? What are your average number of flights per aircraft per day?

We operate roughly 100 nonstop flights, but the network is constructed to offer as many “via” [connecting] opportunities as possible, particularly via Delhi and via Mumbai. And we carried roughly 3.5 million passengers last year and we have a target of 5.5 [million]. Why? Not only due to the increase of aircraft, we grew capacity by 22% as well.

Q: So you will be targeting growth up to 5.5 million passengers this year?

Yes 5.5 million. Due to increasing capacity by 22% and a higher seat factor. We also slightly increased the productivity by 15 minutes – which is peanuts. But at the end of the day, we can deliver some positive results.

Q: How many rotations do you achieve on average per aircraft per day?

We achieve 7.6 legs per aircraft per day.

[Editor’s Note: Mr. De Roni clarified that he meant 7.6 one way flight segments per aircraft per day.]

Q: Can we ask you for CASK or RASK numbers? (Cost per Available Seat Kilometre, Revenue per Available Seat Kilometre)

Sorry No.

Q: You mentioned the enhanced connectivity that you are looking at through Delhi and Mumbai. Looking forward, how much do you want to grow connections? Will it play an increasing role in the business model or will the primary focus still be point to point connections (P2P)?

Well the main focus will continue to be on point to point, but definitely connectivity might increase without diluting the overall revenue. Furthermore, we also must consider that due to some infrastructure bottlenecks, it wouldn’t be easy to add additional slots in Mumbai or at peak times in Delhi. So we also have a strategy to increase our presence in other areas of the country. We are already relatively strong in the Northwest; in Jammu and Kashmir we are the market share leader in Srinagar. We have recently deployed second aircraft nonstop at Bangalore Airport and the January A320 delivery will be most probably deployed in the South of the country, bypassing both Delhi and Mumbai.

Q: What do you see happening in Mumbai with regards to an integrated terminal? Will it be something similar to Delhi where you have an LCC terminal and a separate integrated terminal.

First of all, I am not Indian and I am not particularly able to forecast Indian decisions. And even if I am able to forecast, since it is sometimes a frustrating experience, I prefer to keep to what is the final the result.

Because media coverage is unpredictable – one week they say that FDI will be approved by Friday, the next Saturday, it is next month, and the next month, it is in a few months time.

So I have the habit of let’s see what happens and planning consequently.

Q: The reason we ask is that if in Bombay they structure the integrated terminal similar to Delhi, will the cost structure be similar to Delhi?

Yes. And it will create inefficiencies in the cost structure if we have to share activity between two terminals. So I do hope that this kind of consideration will be analyzed before any sort of decision is made.

[Editor's note. Please see part 1 of this interview where Mr. De Roni explains how high fees are impacting Delhi airport with reduced traffic]

You recently asked the DGCA to grant you a waiver from the 5-year and 20-aircraft rules for international flying. How confident are you in receiving a waiver, and would this signal a shift in strategy towards more international flying?

No, the core business will remain domestic. I personally see a strong potential for more growth domestically, considering that only 60 million passengers travelled by air last year out of 1.2 billion people.

If there are opportunities to fly internationally, I feel relatively confident to be authorized to fly internationally.

We already have, as you know, the 5 years of experience required, but we are flying less than 20 aircraft. I do not see why foreign airlines are allowed to fly international flights to India with just 1, 2, or 3 aircraft and Indian carriers are not allowed.

In my view, allowing GoAir to fly international, will increase opportunities for employment, flows of currency and tourism, and will serve the economy of the country better, and at the end of the day, it will create a dynamic competitive environment to the benefit of the final customer.

[Editor’s Note: Just to give some examples of this disparity. Avia Traffic Company, an airline with 5 aircraft that is banned in the EU, is allowed to operate in to India. Bhutan's Druk Air with just 3 aircraft, and several sketchy Afghan airlines with very small fleets, operate non-stop international services into Delhi? Yet GoAir with its now sparkling reliability and safety record is not allowed to do so?]

Q: Looking at your network, Mumbai and Delhi seem to be roughly equal in size. Will you increase in Delhi?

We are slightly more present in Delhi, historically due to a lack of slots in Mumbai. But definitely also due to the fact that the cost in Delhi has increased greatly. Thus the expansion plan will mostly be outside Delhi.

Q: One thing we’ve noticed is that the bulk of the expense at Delhi Airport seems to have occurred on Terminal 3. Yet GoAir, SpiceJet, and IndiGo passengers, who do not use T3, are made to pay fees for T3. Your comments?

Unfortunately, this is the common approach to airport development. And with this kind of approach we have weaknesses in the efficiency of the system. We have to survive anyhow.

Thank you sir for the revealing details. It was a pleasure.

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Exclusive interview: Giorgio De Roni - CEO GoAir - Part 1: GoAir is profitable

Over the last 18 months, the soft spoken Giorgio De Roni has been quietly turning around the Wadia family promoted GoAir. From a rock bottom position, dismal market share, and reputation for frequent cancellations, De Roni has grown GoAir to surpass Kingfisher Airlines and JetLite in market share, and made GoAir a contender in the Indian airline industry, with the confidence to place large orders for 72 Airbus A320neo aircraft.

In a broad ranging two-on-one interview, Devesh Agarwal and Vinay Bhaskara spoken to De Roni. During the interview, De Roni dispelled the misconception that IndiGo is the only profitable airline in India.

GoAir is profitable, and this profit is achieved purely by operations, without the income from sale and lease back of aircraft.

In the first of this two part report, we cover the financial and strategic aspects of the interview.

Q: In March this year, at India Aviation, Mr. Dinesh Keskar was saying that India is having "profitless growth." Airlines were experiencing growth in passenger numbers but profits were very hard to come by. In less than 3-4 months, growth has stagnated, but profits are there. What are your thoughts on this odd situation?

My thoughts are that the industry should not operate below cost of production. Unfortunately the situation in the past in India was that most competitors were more interested in market share rather than profit. So I more than welcome the shift in strategy from most of my competitors. And this has brought fares in line with costs, and in fact we have been able to deliver a profit for the first quarter.

Q: Any numbers you could share?

No, not really, we are not a listed company and as a policy, we do not share our results. I can say, that I am relatively satisfied of the results. The net profit was in percentage terms higher than IATA average, and differently from some of my competitors, it was purely reached by operational factors; so by revenue from passengers, and not from non-operational sources [referring to sale and leaseback income and other non passenger sources of revenue]. I never comment on my competitors, I try to learn from them…. And it’s [Sale and lease-back income] not something that only happens in India.

Editor’s Note: The IATA figure is 1.4%. Since GoAir’s figures came purely from passenger revenues, they outperformed the passenger figures at both SpiceJet and Jet Airways.

Q: You were mentioning your fellow competitors. If you look over the past year at your fellow LCC competitors, both SpiceJet and IndiGo have pursued a rather aggressive growth in their own form. SpiceJet has been going into virgin territory withthe Q400 in to Tier II and Tier III markets, and IndiGo has been adding a new A320 literally every 3 weeks; and they have gained a lot by the implosion or the contraction, of Kingfisher. However, GoAir has pursued a very modest growth path. In fact we think you’ve added only one aircraft net in the last year.

In this financial year we added two net aircraft. One in April and one in August, with a third one coming in January 2013. Yes, we have a more cautious approach to growth. We are exclusively targeting profitability and not really market share. We do have an ambitious expansion plan, and in fact last year we ordered 72 A320neos.

So we are committed to better serve the country. I think that we had some advantage in being a small carrier last year. Our losses were limited. It’s an airline 100% owned by the [Wadia] family . They are committed to the airline business, but I feel personally that we can grow only if we deliver profit. So I would prefer to deliver a profit and remain small as opposed to growing rapidly and having challenges on the bottom-line.

Q: Could you describe what trends you’ve seen in the unit PRASK revenues (passenger revenue per available seat kilometer) in the past several months, because we do know that SpiceJet recorded PRASK growth of more than 17% and Jet Airways recorded PRASK growth of more than 15% on its domestic network. Are you seeing similar numbers?

Yes, I would say that we are pretty satisfied of the [PRASK] growth. What is inconvenient is that the cost structure also suffered a significant increase. Airport charges increased due to the devaluation of the rupee against the dollar, fuel prices increased heavily. Since September 1st, I think we reached the historical peak of the cost of fuel in India, which is not the case in other parts of the world. So I just wonder how we structure the cost of fuel in India versus other geographical areas.

Q: Is it possible for you to share in percentage terms roughly the breakup of costs at GoAir?

Fuel costs are about 50%, more precisely it might reach around 55% of our total cost now with fuel at Rs. 72 per litre? That is the figure I remember most clearly, because it is a huge amount. I would say that the cost of personnel is pretty efficient, also because the most expensive community, the pilots are pretty well utilized with more than 900 hours per year, the cap being 1,000 per year in India. Certainly we are suffering from the weakness of the Rupee as far as lease rentals and maintenance costs are concerned; due to the fact that maintenance is performed primarily with US dollars.

Q: And you did mention airport charges?

Of course airport charges are huge. You are aware that Delhi Airport increased charges by 334%. It was a number that did not meet their expectation of a 700% increase. But I’m challenging anyone to find any other airport in the world with such a huge increase year by year.

And this is a serious concern.

Of course when we say that fares have increased year over year, we have to consider that we have to shift to the customer the burden of increasing costs. Because we cannot absorb any increase in costs, we have to transfer them to the customer. What is the result? The result is that volume and demand have decreased, as the data in June and July have shown.

So I don’t think that the way airports keep growing their costs and increase their inefficiency is smart. At the end of the day, they suffer due to a decrease in demand.

Q: Can you give us a brief financial outlook for the next year, and then maybe 3 years out?

Well I can tell you that we forecast to achieve a profit at the end of the year. Of course the first quarter was positive. The second quarter was the weakest from a cyclical point of view of the financial year, so we are definitely suffering. That said, for the entirety of the year, I am relatively confident that we will deliver a profit.

Q: What do you assume will be your revenue growth over the next one and three years, relative to 2011-12?

Well what is important to us is to remain flexible. Although we have a purchase order for roughly 80 aircraft between today and 2020, we should bear in mind that if the market is not growing, if there are turbulences, we have to be more flexible and be cautious. Or if the market offers more opportunities, we have the flexibility to take more aircraft and our part of the growth.

Q: Do you currently have any purchase options for the A320neo?

We don’t have options at the moment. 72 A320neo and the 7 remaining A320 classic orders are all firm. Anyway you know that there is a sort of over-production of narrow-body aircraft. And it’s not really a problem to add aircraft if the market requires.

Q: How do you think valuations in the used market are looking as both the 737MAX and A320neo are coming closer to delivery? Are you finding any impact on the secondary markets?

The residual value will be impacted definitely. We still have to see whether those manufacturers will deliver as per the schedule, or if, as it is normally, there might be some delays. But the impact on the present values might be negative.

Q: GoAir has selected the PurePower (Pratt and Whitney GTF) engine for the A320neo. And we’ve heard that CFM has not quite been able to deliver on the performance parameters of the LEAP-X?

I would disagree. First of all, we are very satisfied with CFM engines for the current fleet. Then, as I told you a few minutes ago, I don’t want to go for over-promising. And I don’t like my providers to over-promise. And since I’m not commenting on my competitors, I don’t understand why my provider comments on their competitors. They are free to do whatever they like.

[Editor's note: Our source of information on the LEAP-X engine is not Pratt and Whitney]

Q: So can you talk about some of the factors that drove your decision to purchase the PurePower engine?

So we did an overall evaluation from a financial and technical point of view and in the end we found Pratt and Whitney’s proposal to be better. But this is not to say that we are not satisfied with the present [CFM] engines that we have on our fleet.

Q: You did mention aircraft program delays briefly. And since both Boeing and Airbus have had trouble with delays recently on the 787 and A350 programs respectively, how concerned are you about delays [on deliveries].

We are among the first carriers in the world to receive the A320neo in the first quarter of 2016. So far, I do not expect any delays. But we aware that in new aircraft, some delays might happen. Although, considering that 95% of the airframe is common to the current airframe, and considering that the same engine technology will be utilized on other aircraft in the next year, I feel relatively confident that Airbus will be able to deliver the aircraft as per schedule. You are aware that anyhow that we have current engine A320s on order, and so we are not really planning for an environment with delays. But it might happen.

Q: Will GoAir be adding Sharklets to its A320 classic fleet?

Yes, our next [A320] delivery in January will be with Sharklets. In fact, I think we will be among the first airlines to have sharklets; most probably the first in India, though it’s not really a race against IndiGo.

[Editor's note: Sharklets are new wingtip devices fitted on the A320 family aircraft]

Q: Has Airbus indicated the possibility of retroffiting sharklets?

Yes they have. There is no clear picture on the cost involved and the time-frame of grounding the aircraft. As soon as they come out with a final picture, we will evaluate. We are keen to reduce fuel burn, both for savings and for the pollution reason.

Q: What sort of numbers are you looking at in terms of fuel burn reduction from the Sharklets?

Based on our network, we are looking at something around 1.5% savings.

Q: And what about the A320neo?

On paper, they [Airbus] say that there will be a saving in the range of 15%. That would be a great achievement.

Q: Your order for 72 A320neos have a list price of almost $5.6 billion dollars, which will require around $280 million in upfront financing costs. How is GoAir planning to pay for this order?

[De Roni laughs] Your calculation is pretty precise.

We are well funded. If there are opportunities in the market we will consider them carefully, but there is no concern [about paying for the aircraft].

Q: So there is no feeling at GoAir that it is time to turn to the public market with an IPO?

Well inside the company last year, there was a project to develop an IPO. It was not pursued due to the overall position of the market. We are open, but that is a question that needs to be asked of the chief shareholder. I will say that overall we are comfortable with the funding for the next set of deliveries.

Stay tuned for Part 2 of this interesting interview. Comments and feedback are always welcome.

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