Aerospace Diary

Neelam Mathews Oct 2019 AerospaceRaes

by  Neelam Mathews  -  March 19, 2019, 8:11 AM With airline seating capacity throughout India down about 20 percent from its peak, the country appears set to lose its standing as the world’s lowest-airfare market. About 100 airliners now sit grounded or out of service, suggesting the aviation sector will almost certainly not see the near 19 percent growth many forecasters projected for this year.   The March 10 Ethiopian Airlines Boeing 737 Max crash near Addis Ababa prompted Indian authorities to ground some 13 Max jets flown by SpiceJet and five by cash-strained Jet Airways, an airline that already had grounded 56 airplanes due to financial troubles. Others include GoAir, nine of whose Airbus A320neos await engine spares; Air India, which has grounded 17 airplanes for similar reasons; and IndiGo, which has taken out of service 10 airplanes and cut some 100 flights a day due to a pilot shortage.  “Capacity reduction is likely to see annual gro...

AINONLINE by    NEELAM MATHEWS Etihad CEO James Hogan (right) and Jet Airways chairman Naresh Goyal meet in New Delhi. (Photo: Neelam Mathews) July 24, 2014, 11:12 AM India’s loss-making Jet Airways and its new 24-percent owner Etihad Airways are formulating plans for restructuring debt and fleet rationalization for enhancing a full-service branding. Jet, reporting $689 million in declared losses last year, expects to show profits by 2017, founder and chairman Naresh Goyal said at a July 23 press conference in New Delhi. A slowed economy, infrastructure constraints, and rupee depreciation have in the past years resulted in massive losses for airlines in India. Nevertheless, Etihad Airways president and  CEO  James Hogan ruled out any exit strategy. “This is not an overnight turnaround,” he said. “It’s a structured rebuilding process…We have a responsibility to shareholders of the company…for return to sustainable profitabil...

Neelam Mathews May 4, 2014 Add caption As Jet Airways turns 21, plans to start an all-business service between two metros have been put on hold as a Report by Seabury believed to have been commissioned by Etihad is awaited. The report, a source told AerospaceDiary will offer a complete evaluation of manpower, fleet utilization among others. “Till then, no major decision will be taken by Jet.” Etihad, that has by now, a combined fleet of 250 including its tie-ups and partners, is already consolidating routes. AerospaceDiary learns it is looking at buying equity in an Asian and a US carrier! We are also hearing joint purchase agreements are being looked into, including MRO. Meanwhile, three Air India B777s that are being bid will be likely sold to Etihad at $57.5 million- a part of the bilateral deal…….? Just speculating!

AIN AIR TRANSPORT PERSPECTIVE  »  AUGUST 5, 2013 by    NEELAM MATHEWS Etihad Airways chief executive James Hogan (left) and Jet Airways chairman Naresh Goyal. (Photo: Etihad Airways) August 5, 2013, 12:10 PM Clearance of Etihad Airways’s $380 million investment in Jet Airways by India’s Foreign Investment Promotion Board ( FIPB ) last week has paved the way for completion of the deal. The airlines now await approval from the Cabinet Committee on Economic Affairs ( CCEA ), which oversees foreign investment proposals of more than $200 million, and security clearances of foreign nationals. Numerous caveats in the shareholder agreement now address concerns about the possibility that Etihad Airways would gain control of Jet Airways, despite the fact that the deal would give Etihad only a 24-percent stake. The restructured airline’s board would consist of 12 members, four appointed by Jet and two by Etihad (compared with the origi...

AIN AIR TRANSPORT PERSPECTIVE  »  APRIL 29, 2013 by    NEELAM MATHEWS Jet Airways A330s will become a common sight in Abu Dhabi under an expanded alliance with Etihad. (Photo: Airbus) April 29, 2013, 11:21 AM Even as AirAsia India prepares to apply for a No Objection Certificate to start domestic operations, Abu Dhabi-based Etihad Airways has invested $379 million in India’s Jet Airways. The outlay gives Etihad a 24-percent share in India’s second largest carrier. Signs of the alliance became clear in February, when Etihad purchased three pairs of Jet’s Heathrow slots through a sale and leaseback agreement for $70 million. It plans to further inject $150 million through a majority equity investment in Jet Airways’ frequent flier program within the next six months. Etihad Airways’ investment in Jet Airways follows the minority equity stakes the airline took in Airberlin, Air Seychelles, Virgin Australia and Aer Lingus over ...

Neelam Mathews Dec 16, 2012 Even as a financial newspaper reports that Captain GR Gopinath’s Deccan Charters is facing a severe financial crisis, the father of the former aaam admi airline, Air Deccan, told Headlines Today he is set to launch an airline soon. Gopinath’s five-year non-compete clause with Mallya ends on January 28, 2013. With Jet talking to Etihad, it will be interesting to see how the dynamics of India’s aviation scene will change. Friends no more!               Credit-Outlook    Given the aviation minister’s hint that the FDI would be more relevant to present scheduled carriers, Gopi might be once again having to face an antiquated, insular and anti- proactive regulatory environment. Ofcourse, the present economic crisis won’t help either.”My aim is not to kill Jet Airways (or any other airline) he said at the interview. “The future of India is in small towns…” Hopefully, the government will take cog...

Air Transport Aviation Week & Space Technology Aug 23 , 2010 , p. 43 Neelam Mathews New Delhi As India’s airlines recover, new aircraft are ordered and opportunities arise Printed headline: Another Step Forward Resilient domestic demand is supporting a resumption of aircraft ordering by Indian airlines, a bounce-back after three years of distress. India’s airlines were among the most active in big fleet orders early in the decade, particularly in long-haul transports, and the market was a nursery for startups. But Indian carriers struggled with market overcapacity by the time the recession began gripping the industry in late 2008. The combination of their own over-reach, poor management and the industry’s doldrums prompted mergers—of Jet Airways and Air Sahara, Kingfisher Airlines and Air Deccan, Air India and Indian Airlines—and experiments in survival as budget carriers increasingly took market share from mainline airlines. In one experiment, full-service Kingfisher h...