IndiGo will offer passengers choices from across India to travel abroad, the airline’s CEO Pieter Elbers said in a note to employees last week announcing its first-ever wide-body plane order.
Solid Foundation:
“We have a very solid foundation in the Indian market and from there we are reaching further and further. This is India’s time and IndiGo’s too! We have expanded our international network recently already quite significantly. The XLR aircraft will further expand today’s range to parts of Europe and Asia,” he said adding, “Yet, these new widebody aircraft, will really be the next step in our ambition to become a global aviation player. We can build on our hubs in India, non-stop connect our Indian strongholds in the metros to destinations all over the globe. But also connecting and supporting the nation by building India into an aviation hub and power house, and be the airline of choice for our customers from Ahmedabad to Amsterdam, from Surat to Seoul, and from Patna to Paris. IndiGo continues to redefine air travel.”
Elbers said IndiGo’s vision and journey started almost 18 years ago, with a single first flight from Delhi via Guwahati to Imphal.
Unprecedented Growth:
“Our journey since has been nothing short of spectacular, not only in India but on a global aviation stage too. Our recent milestones and celebrations on flights, customers, network and fleet orders are underpinning that. Fueled by the trust of our customers and powered by our 6E stars who worked relentlessly and collectively to build it. IndiGo’s path has been unprecedented, and it will continue to be,” he said, “I am incredibly proud and excited to share with you today’s new IndiGo milestone. We agreed to place an order for IndiGo entry into the widebody space with 30 firm Airbus A350-900 aircraft.”
This will be the highlight of this decade.
“A new wonderful chapter in the beautiful IndiGo journey and story is now in the making. The journey towards 2030 with the objective to double in size by the end of this decade will now be further cemented by planes and a subsequent network that will allow us even more to enable our purpose of “Giving wings to nation, by connecting people and aspirations”. Giving wings now, not only to the nation, but also the world! This order is an important manifestation of our strategy Towards New Heights & Across New Frontiers,” he said adding, “We had already a herculean task ahead of us with our mission and ambitions towards 2030. This new step this will be even more demanding, yet energizing for all of us. Remember my earlier quote “comings years will be the most exiting in your professional lives. We could not have come this far without the dedication and great work of all of you. I look so much forward to create this exciting future together: more development, more possibilities, more change, more learning.
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IndiGo’s placing orders for Airbus A350 and taking steps towards long haul international market is good for the airline, ratings agency Crisil has said.
Strategic Imperatives:
Jagannarayan Padmanabhan, Senior Director & Global Head, Transport, Mobility and Logistics - Consulting, CRISIL Market Intelligence and Analytics said, “The share of Indian airlines in international traffic originating and terminating in India has grown steadily in recent years to around 43%. Key market players Air India and Indigo have, therefore, made this a strategic area for growth. The latest order of Indigo for long-haul flights is to be seen in that context. It had become imperative for the carrier to diversify its fleet – especially of wide body aircraft – to maintain its competitive edge in long distance routes and attract both leisure and business travelers.”
Industry Implications:
He said the development “augurs well for the industry as these routes are comparatively more profitable and open up avenues for innovative combinations as Indian carriers have good domestic connectivity as well. This will also help India strengthen its case for creating an aviation hub in one of the major airports.”
IndiGo expects to take delivery of the first of its 30 A350-900 planes from 2027. It also has 70 options which it can convert at a later date. Among the Indian carriers, currently, only Air India and Vistara have wide-body aircraft in their fleets. IndiGo and SpiceJet have wet-leased some wide-body planes. IndiGo also uses Boeing 777 wet-leased from its codeshare partner Turkish Airlines to fly to Istanbul from Delhi and Mumbai.
CRISIL assigned a ‘CRISIL AA-/Stable/CRISIL A1+’ rating to the bank facilities of InterGlobe Aviation Limited (IndiGo) last week. The ratings factor in the strong and established market position of the company in the Indian aviation sector with a market share of more than 60% in the domestic segment and around 18% in the country’s international passenger segment, it had said.
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Regional startup FLY91 has won the IHC London- IIHM Hospitality Honors List 2024 award during a ceremony hosted in Goa recently.
The Rise of FLY91:
This award marks FLY91’s first accolade within just two months of commencing commercial operations, the airline said in a statement.
FLY91 was presented with the award for enabling connectivity across tier 2 and tier 3 towns in India thus making last mile travel easy and hassle free. The award was conferred by Dr Suborno Bose, chief mentor and chairman, IIHM and chairman, IHC UK, Abudulla Ahmed, Chief Operating Officer, International Institute of Hotel Management and Shabnam Haldar, Director of International Institute of Hotel Management.
“We are extremely honored and grateful to be conferred with this prestigious award. The FLY91 team aims to connect tier 2 and tier 3 cities and is committed to bridging last-mile connectivity within India. As a leading regional carrier, we are dedicated to delivering efficient, comfortable and seamless connectivity and travel experiences,” stated Manoj Chacko, managing director and chief executive officer of FLY91.
International Hospitality Day is an event that witnesses participation from countries around the world, coming together to honor and celebrate outstanding performance by hospitality brands and outlets.
Expanding Horizons:
The airline currently operates flights into Goa, Hyderabad, Bengaluru, Agatti, Jalgaon and Sindhudurg.
FLY91 (Just Udo Aviation Private Limited) is a pure play regional airline headquartered in Goa, that strives to enhance air connectivity across tier 2 and tier 3 cities in India. FLY91 is committed to enhancing last-mile air connectivity and will connect over 50 cities across India in the next five years. As part of this plan, FLY91 will induct 30 aircraft into its fleet which will be based at multiple hubs across the country.
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In a significant legal development, the Delhi High Court has ruled in favor of foreign lessors seeking to repossess their aircraft stranded at Indian airline Go First, formerly known as GoAir. This ruling comes nearly a year after the carrier declared bankruptcy, marking a crucial step towards resolving a protracted legal battle and unlocking assets crucial for the aviation industry's recovery.
Legal Tussle Resolved and Court's Directive
Foreign lessors, including Dubai Aerospace Enterprise (DAE) Capital and ACG Aircraft Leasing, have been embroiled in a legal dispute to repossess over 50 Airbus planes held by Go First since its bankruptcy protection grant in May 2023. The recovery efforts were stymied by a law in place at the time, preventing the deregistration of the aircraft.
The Delhi High Court's recent directive mandates the aviation regulator to deregister the stranded aircraft within five working days, effectively allowing lessors to reclaim their assets. Additionally, Go First has been restrained from operating or flying any of the grounded planes, signaling a definitive end to the stalemate.
Alignment with Global Standards
India's amendment to its insolvency law in October, excluding leased aircraft from frozen assets, reflects a concerted effort to align with international aviation norms. This move positions the world's third-largest aviation market closer to global standards, fostering a more conducive environment for leasing activities and bolstering investor confidence.
Challenges and Considerations
While the court's ruling represents a victory for lessors, Go First has expressed concerns regarding the potential impact on its turnaround process. The airline contends that complying with lessors' demands could jeopardize its restructuring efforts, highlighting the delicate balance between creditor rights and the viability of distressed businesses.
Prospective Suitors
Amidst the legal proceedings, Go First has attracted interest from prospective buyers, including budget carrier SpiceJet and Sharjah-based Sky One Airways. These developments underscore the competitive dynamics within the aviation industry and the strategic opportunities presented by distressed assets in the market.
Conclusion
The Delhi High Court's decision to facilitate the repossession of stranded aircraft by lessors marks a pivotal moment in the resolution of Go First's bankruptcy saga. With legal hurdles overcome and regulatory clarity provided, stakeholders can now navigate towards a more stable and sustainable future for the airline industry in India. As the skies gradually reopen, this ruling serves as a beacon of hope, signaling a renewed era of collaboration and resilience within the aviation sector.
With Inputs from Reuters
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The aviation industry has been navigating through turbulent skies due to various challenges, including supply chain disruptions. Among the players grappling with these issues is Embraer, the Brazilian aerospace company known for its innovative aircraft designs. However, recent statements from Francisco Gomes Neto, Embraer's chief executive, shed light on the company's resilience and determination to overcome these hurdles. Let's delve into the details to understand how Embraer is charting its course amidst supply chain challenges.
Navigating Supply Chain Issues
Addressing reporters at an event in Sao Jose dos Campos, where Embraer is headquartered, Francisco Gomes Neto expressed cautious optimism regarding the improvement in supply chain issues affecting aircraft manufacturers. While acknowledging remaining challenges, Neto highlighted Embraer's progress in overcoming hurdles that had plagued the company in previous years. These challenges, particularly supply chain bottlenecks, have been a recurring concern for aircraft manufacturers globally, impacting their production and delivery schedules.
Embraer's Position
Despite the challenges, Neto emphasized that Embraer finds itself in a "very good place" currently. This positive outlook is reinforced by the company's strategic plans for growth and investment. Embraer intends to invest approximately 2 billion reais ($390.9 million) in Brazil this year, signaling its commitment to the country's aerospace sector. Additionally, the company plans to bolster its workforce by hiring over 900 people, further contributing to the local economy and job market.
Investment Focus
Embraer's investment plan encompasses various aspects, including the development of cutting-edge technologies for emerging aviation trends. Notably, the company's subsidiary, Eve, is spearheading the production of the "flying car," a project that aligns with the future of urban air mobility. Moreover, Embraer aims to enhance its service and defense segments while focusing on projects aimed at boosting efficiency and industrial activity. These strategic investments underscore Embraer's proactive approach to staying ahead in a competitive market.
Projected Deliveries and Growth
In terms of aircraft deliveries, Embraer anticipates a promising outlook for 2024. The company estimates the delivery of between 125 and 135 executive jets, reflecting an increase from the previous year. Similarly, deliveries from its commercial aviation segment are expected to rise to between 72 and 80 planes, demonstrating steady growth compared to previous figures. These projections indicate Embraer's resilience and adaptability amidst evolving market dynamics and supply chain challenges.
Conclusion
Embraer's journey through supply chain challenges serves as a testament to its resilience and adaptability as a leading aerospace manufacturer. Despite facing obstacles, the company remains focused on innovation, investment, and growth. With strategic plans in place and a positive outlook for the future, Embraer continues to soar above challenges, reaffirming its position as a key player in the global aviation industry. As the company navigates through uncertain skies, its commitment to excellence and progress remains unwavering, promising a brighter future for aviation enthusiasts worldwide.
With Inputs from Reuters
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In a bid to secure full control of Air Europa, British Airways owner International Airlines Group (IAG) finds itself navigating through choppy regulatory waters. The European Commission, wielding its antitrust authority, has raised red flags, expressing apprehensions over the potential impact of this acquisition on competition within the European aviation market.
The Concerns and IAG's Response
The European Commission's statement of objections highlights specific concerns regarding the ramifications of IAG's acquisition of Air Europa. Key among these concerns are the potential reduction in competition, which could pave the way for price hikes and a decline in service quality, particularly on Spanish domestic routes and both short-haul and long-haul flights.
In response to the Commission's objections, IAG has presented a series of proposed remedies aimed at assuaging regulatory concerns. CEO Luis Gallego has pledged to relinquish over 40% of Air Europa's flights in 2023 to rival carriers. Additionally, IAG commits to ensuring that no route is exclusively operated by its subsidiaries, Iberia and Air Europa.
Proposed Remedies and The Regulatory Process
IAG's proposed remedies extend beyond flight divestments. The company is prepared to offer feeder traffic, slots, aircraft, crew, maintenance services, ground handling, and existing customer bookings on divested routes to competitors. Moreover, rivals acquiring IAG's long-haul routes would be granted access to feeder traffic within Europe.
While IAG's proposed remedies have been submitted to the European Commission since February, modifications have been made, including increased capacity divestments and additional concessions. The Commission has extended the deadline for remedies submission until June 10, 2024, allowing IAG to address concerns throughout the proceedings.
About Air Europa
Air Europa, headquartered in Spain, operates as the airline division of the Spanish tourism conglomerate Globalia. Its acquisition by IAG would consolidate the British Airways owner's presence in the European aviation market, potentially reshaping competition dynamics.
Conclusion
As IAG endeavors to finalize its acquisition of Air Europa, regulatory scrutiny looms large. The European Commission's vigilance underscores the importance of maintaining a competitive landscape within the aviation industry to safeguard consumer interests. While IAG's proposed remedies signal a willingness to address regulatory concerns, the path ahead remains uncertain, with the final decision resting in the hands of antitrust authorities.
With Inputs from Reuters
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