SpiceJet, PAL and Indigo

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By admin May 7, 2015 15:28

SpiceJet, PAL and Indigo

Unconfirmed news is filtering out of India that SpiceJet promoter Ajay Singh has pledged 46 lakh of shares to Allahabad Bank on April 30, 2015, as part of efforts to pump a total of just under $200m into the airline during 2015.

Meanwhile, Philippine Airlines (PAL) has posted a 2015 first-quarter net profit of PHP3.8bn ($84.8 million), up from a $20.7 million net loss for the same period last year.

Many are wondering if 2015 will be the first full year of profit for PAL since 2010-2011. It looks likely that PAL will see a full year profit. First quarter revenues rose 30% to $628 million from $429 million in 2014 as passenger numbers increased on international routes following the lifting of FAA restrictions in recent months. In fact PAL is now very well placed having spent a number of years being forced to concentrate on developing its local network, the airline is now able to feed international flights with relative ease. During the reported 1Q 2015 period, operating expenses increased by 11% year on year as PAL rushed to launch international routes and new domestic feeder routes. We await load factors for recently added key routes to New York and Quanzhou but the outlook is good for PAL in 2015 and it is likely that the airline will have to turn to lessors again to grow at speed.

Akbar Al Baker, chief executive of Qatar Airways, reiterated this week that he wants to purchase 49% of IndiGo. Al Baker is a personal friend of Rahul Bhatia and Rakesh Gangwal and it seems he is doing Interglobe, the owners of IndiGo, a big favour as they prepare to go for an IPO as it will be clear to all potential investors that Qatar Airways is prepared to enter the fight for shares and may well wish to purchase shares at a later date to build-up a large holding in the Indian airline to exert influence. None of this information is new but if Al Baker talks about the subject enough at press briefings maybe it might just become a reality at some point.

Al Baker also mentioned the A380 and his hopes that Airbus will move to launch an A380neo at Paris 2015, or at least at some point. Al Baker mentioned that is Airbus can find, together with Rolls Royce, a 10-15% fuel burn saving for the A380 then he might look to order the type.

And with Qatar Airways expanding US routes exponentially and with All Middle East majors still reeling over the US majors attack on them, the IATA Annual meeting of airline CEOs in Miami, hosted by Delta of all airlines, looks set to be the place where this row will boil over yet again.

admin
By admin May 7, 2015 15:28