Any Indian airline making money?
Indigo ? Vistara ?
Already noted Vistara is not *yet* making money. They plan to join the club of profit soon. Maybe... promised (ok, I'm an old skeptic).
Indigo was break even last quarter which (hopefully) should be the worst quarter of the year for them.
The issue for Jet is they had a *really* bad 1st quarter and all indications are a really bad 2nd quarter.
How is GoAir/Spicejet doing? I was under the impression both were turning up, but last quarter was brutal...
In my opinion one of the more brutal quarters in Indian Airline competition from the evidence we are seeing. I so wait for Jet's quarterly report, scheduled a week from today.
As well as Spicejet's and GoAir.
The longer that Air India is allowed to fly Bankrolled by the state, the weaker the entire Indian aviation industry is.
Agreed. It means there is no bottom in how low fares go to attract customers.
In this thread I've been asking for estimates of how much AI is losing, my best estimate is $160 to $200million per month, I would appreciate if others joined the other thread for their estimates:
My estimate based on prior expected losses, and adding: revenue declines (the "Monsoon madness" sales that were brutal this year), fuel, rupee decline (too many expenses in dollars/euros), and how Jet/Indigo did last quarter: viewtopic.php?f=3&t=1383239
What matters is you have a large competitor, Jet's #1 competitor for international flying, who flies without regard to revenue thanks to state aid. This is hurting all private Indian airlines, but none more than Jet due to the international competition.
Although to be fair, at this time EY and QR are not behaving as rational competitors (as their losses note). QR isn't even pretending. This has to be hurting EK too, but both AI and 9W will take a hit in revenue by their attempts at remaining relevant. I exclude EK as ironically, during what would be the worst of the fare war, they *cut* capacity for runway work.
Dang EK has been lucky. Cannot expand capacity right before the oil price drop and thus regional market meltdown, avoiding a major strategy shift. They also avoided most of the worst of the price war between EY/QR/AI/9W due to runway work and having a good lock on premium traffic. It is always better to be lucky than good...
Unfortunately for 9W, they are in the thick of it. By Air India not having to react rationally (e.g., flying premium route with low premium load factors instead of returning aircraft), they get a double hit on the competition. 9W also seems to have lost a bit of their premium clientele, are there any statistics to confirm or deny this opinion of mine? Cest la vie.
Opaque finances are almost always worse than expected, in particular for subsidized companies. I really wish Air India was required to give quarterly updates on debt and losses. When officials are quoting CAPA's estimated losses and debt (52,000 crore, losing $85 million per month), we know things are worse...
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