The retail lifestyle champions: Jet Airways saves face , buys new Boeings

Jet’s Q3 losses came at a low INR 1 bln as it saved up from asset sales of INR 1.7 bln and kep itself in operating profits. The jet order for 17 boeings will also help india’s Capital goods indices this month

Jet Airways ordered 737-400s and 500s for its fleet, probably exchanging out older Jet lite planes though it was its fourth straight loss since September /December 2010 conditions worsened in fuel cost overheads, wiping out gains from Jet Konect saving plans and this being their first of many sale and lease backs adopted by the Industry at Indigo and Jet Airways

On sales of INR 3437 Crs in December 2010, the airline flew 13% higher year on year and expects to keep growing sales if hikes are passed by AAAI and if no further costs imposed by DGCA action, the airline will keep posting cash profits

According to mint, CAPA revealed a loss of $30 per passenger in domestic flights in India. Kingfisher and Spicejet may not be able to hold their bottomlines to a sane number as they allow losses to reflect their financial uncertainty, demanding policy action/handouts

Godrej Properties purchase of INR 1.06 bln from the BKC premises and FX gains of INR 1.76 bln also stopped out losses but the airline bucked expectations of INRĀ 3.5 bln in losses

  • Sale and Lease back allows it to keep Debt constant and it cana lso start paying the INR 14 0 bln debt from the SLB proceeds. The 17 aircraft are on options thus guaranteed at a good price.

How to make money in Lifestyle businesses!!

Coracias benghalensis English: An Indian Rolle...
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Both Automobiles and viation industry are strongly hit by the current banking slowdown but more so because of energy and fuel costs as well as staffing costs making profits unlikely for the latter.

Both industries, however , remain the bright spot in India’s fabric of the future, leading growth segments in production and services. The car industry makes money in this unlikely scernario by passing on price hikes , with concurrent big doscounts of upto 10% while airlines wherre discounts ar part and parcel of all ticketing platforms till the d ay of travel, money ois also made in the usual charter/laundry list of udealised safety requirements as the DGCA report.

While Jet’s not running one third of its flights after announcing them because of poor occupancy, Indigo is reusing entire engines and forced to announce “premature engine removals” to keep its aircarft flight worthy. KFA reuses spares from grounded aircraft while it is avoiding paying salaries, both practices likely last

Departing on a test flight
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resorts in a bind they only are responsible for. Spicejet int he meantime is yet to print or operationalise Flight operation manuals and thus does not spend much on quality assurance currently.

I’ll give you a dime, if you find this chaos live during your business/ personal last rush/ economy flight except if you have paid large diiscounts on your ticket (then also, only for certain personalities) It is mostly int he service, f course both industries spending on talent and retention in various ways

English: Logo of IndiGo Airlines.
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