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edealinfo
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Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 4:06 pm

https://simpleflying.com/garuda-air-ind ... lot-lease/

It is a shame that the geniuses at Air Vistara didn't pick these up. Air India pulled the rug from under Vistara's feet. Now Vistara has a brand new 787 that will be baking under the sun for months on end.
 
edealinfo
Topic Author
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 4:08 pm

Anyone knows how much they paid for it?
 
Scotron12
Posts: 496
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 4:44 pm

edealinfo wrote:
https://simpleflying.com/garuda-air-india-heathrow-slot-lease/

It is a shame that the geniuses at Air Vistara didn't pick these up. Air India pulled the rug from under Vistara's feet. Now Vistara has a brand new 787 that will be baking under the sun for months on end.


Air India? Holy smoke.....thought they were broke??

Also never knew Garuda had so many slots at LHR??
 
edealinfo
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 4:50 pm

Scotron12 wrote:
edealinfo wrote:
https://simpleflying.com/garuda-air-india-heathrow-slot-lease/

It is a shame that the geniuses at Air Vistara didn't pick these up. Air India pulled the rug from under Vistara's feet. Now Vistara has a brand new 787 that will be baking under the sun for months on end.


Air India? Holy smoke.....thought they were broke??

Also never knew Garuda had so many slots at LHR??


Yeah, Air India outsmarted all the other airlines! They are broke but they must have used "influence" and token $ to get the slots. [ Air India is government-owned, and the Indian Government ordered private industry to shift purchases of palm oil from Malaysia to Indonesia [annual purchases over a $1 billion, and India pays a premium to buy palm oil from Indonesia compared to purchases from Malaysia. I am speculating that this might have played a part.]

https://www.cnbc.com/2020/01/13/reuters ... urces.html
Last edited by edealinfo on Sat Mar 28, 2020 4:55 pm, edited 2 times in total.
 
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CarbonFibre
Posts: 721
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 4:51 pm

Not much use to AI at the moment!
 
bennett123
Posts: 9742
Joined: Sun Aug 15, 2004 12:49 am

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 4:58 pm

So how much will the slots REALLY cost?.
 
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fidelidade
Posts: 71
Joined: Sat Dec 29, 2012 12:15 am

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 5:03 pm

Very smart. I never discount Air-India.
 
edealinfo
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 5:04 pm

Here is a great web site that tracks slot trades though it doesn't indicate the cost of the trade.

https://www.acl-uk.org/completed-slot-trades/
 
edealinfo
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 5:07 pm

Looks like it is 3 slot pairs or 6 individual slots according to this document....

https://www.acl-uk.org/wp-content/uploa ... -GA_AI.jpg
 
bennett123
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 5:30 pm

Very smart. Most of the cost is borne by those paying over the odds for Palm Oil.
 
SueD
Posts: 262
Joined: Sat Jul 27, 2019 11:35 am

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sat Mar 28, 2020 6:03 pm

Three late evening slot pairs and at random times - Not really the big buck slots to be honest- Would have gone to one of the minor Chinese’s carriers to no mark never heard of towns under more normal circumstances

No extra capacity into the London market either - No just transferring the short lived Stansted- Mumbai across
 
jfk777
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 12:23 am

6 slots are 6 weekly flights, it's a lease not a purchase so if the Kenya Air $200,000 monthly is any indicator Air India is probably paying $200,000.00 USD/month.
 
slcdeltarumd11
Posts: 4765
Joined: Fri Jan 09, 2004 7:30 am

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 12:38 am

Classic AI get LHR slots at the worst time in aviation history. This is so AI . They are are really good at burning money!!
 
CaliguyNYC
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 12:38 am

jfk777 wrote:
6 slots are 6 weekly flights, it's a lease not a purchase so if the Kenya Air $200,000 monthly is any indicator Air India is probably paying $200,000.00 USD/month.


No way - these are just 3X and night departure ex LHR. Plus it was a govt to govt inside deal. AI is paying much much less or even got it for free in return for india buying palm oil from Indonesia.
 
mattyfitzg
Posts: 263
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 1:19 am

I don’t understand the correlation between Indonesian Palm Oil and slots at Heathrow.....????
 
Nicknuzzii
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 1:52 am

So how many daily departures does this amount to? With AI still flew EWR-LHR.
 
edealinfo
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Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 2:00 am

CaliguyNYC wrote:
jfk777 wrote:
Plus it was a govt to govt inside deal. AI is paying much much less or even got it for free in return for india buying palm oil from Indonesia.


That was my speculation for which you are giving it wings!
 
SueD
Posts: 262
Joined: Sat Jul 27, 2019 11:35 am

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 7:20 am

JFK It IS just 6 slot pairs So just 3 departures and the palm oil trading could very well have wings Agreed

No way these are being traded in the hundreds of millions to anyone - Indeed the leasing suggests seasonal revenue /benefits in kind outstrip the outright cash payments achievable from outright sales

No all slots are equal !
 
CaliguyNYC
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Joined: Tue Sep 27, 2016 7:27 pm

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Sun Mar 29, 2020 5:16 pm

edealinfo wrote:
CaliguyNYC wrote:
jfk777 wrote:
Plus it was a govt to govt inside deal. AI is paying much much less or even got it for free in return for india buying palm oil from Indonesia.


That was my speculation for which you are giving it wings!


Well at a min we know it was between AI and Garuda, two totally govt controlled basket cases. No way this “lease” was done without political considerations and no way they were at market. I do think your palm oil point is probably right (I have no other proof, but I did follow the spat with Malaysia and then India turning to Indonesia). The purchase by India is a huge one (meaning very sizable and Malaysia really wanted india to stay with them). Malaysia and Indonesia probably care more about Palm Oil sales than hethrow slots IMHO
 
oceanvikram
Posts: 96
Joined: Mon Feb 06, 2017 12:00 pm

Re: Garuda Leases 6 London Heathrow Slots to Air India for 2 years

Mon Mar 30, 2020 2:31 am

slcdeltarumd11 wrote:
Classic AI get LHR slots at the worst time in aviation history. This is so AI . They are are really good at burning money!!


Trust me, I am a critic of AI’s management. But to be honest this to me is a neutral move.

The way the aviation industry is going due to the CONVID-19, a lot of airlines will be doing a fire sale. Airlines such as DL and UA are rumoured to go smaller than what they were. I am sure many other airlines will follow a similar strategy. Quite possibly many planes will be up for sale in the second hand market and so will airport slots.

The reason I say the move is neutral is that it’s neither a money maker or a loss due to the following reasons:
1) A 2 year lease - God knows when CONVID-19 control measures will end globally.
2) In financing - if a loss making company can acquire an asset that could either increase its market cap and/or increase the value of the company itself, then it will get financed. So if AI’s sale is still on the tables, the book value of the company in theory should go up. To what extent is there a risk due to the virus, depends on the buyer.

AI have gained nor lost anything. GA has neither gained or lost anything.

However, Indonesia gained a new market of palm oil, India has gained a new source and have told the Malaysians “be careful what you say” (rightly or wrongly).
My comments are based as an aviation enthusiast first, then as a passenger who paid for his own ticket, after that a passenger on a business trip and finally an armchair CEO.

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