SpiceJet set to order 100 planes for Rs 55,000 crore

January 13, 2017

Mumbai, Jan 13: Low-cost carrier SpiceJet which around couple of years back was on verge of grounding its operations due to financial problems, plans to order 90-100 airplane, including at least 50 new Boeing 737 Max.

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The order possibly includes a renegotiated order for 42 Boeing 737 Max plane it made in 2014.

At the current price list, the deal is expected to be over Rs 55,000 crore.

The airline is also likely to induct wide-bodied Boeing 787 on lease for operation on its international routes.

At present, SpiceJet has 47 aircraft comprising 29 Boeing 737s and 18 Bombardier Q400s. A SpiceJet spokesperson refused to comment on the development. The deal is expected to be announced in Delhi on Friday by airline's promoter Ajay Singh.

"Negotiations are going on for quite some time. We expect to complete these negotiations and place the order this financial year," the spokesperson had said earlier. "It's a good development for Indian aviation that SpiceJet is expanding after going through such a bad time in 2014," said Devesh Agarwal, an aviation analyst.

B737 Max are state-of-art fuel efficient planes produced by US-based aircraft manufacturer Boeing in comparison to Airbus's A320 neo planes. Wadia Group-promoted GoAir on Wednesday confirmed an order for 72 A320 neo planes, estimated to be worth over Rs 52,000 crore. This is in addition to the 72 A320 neo ordered earlier, which takes the tally to 144. The airline inducted the first A320 neo in June last year. The airline is expected to start its international operations this year. Similarly, market leader IndiGo, owned by InterGlobe Aviation, has ordered 430 A320neo.

Experts said it will be interesting to see how SpiceJet, if it inducts B787 Dreamliner, will use the aircraft as at present national carrier Air India uses it for long distance flying including Europe, Australia among others. Air India, a full-service carrier unlike SpiceJet, also uses the Dreamliner on some of its high-density routes like Mumbai-Delhi.

"Historically, a low-cost long distance aircraft have not worked profitably. There is a possibility that SpiceJet may just sign an MoU for B787 for later years."

The development seems significant as only till around in 2014 that the airline was struggling to run its day-to-day operations as lessors, airport operators and oil companies refused to give further credit as a result of which scores of flights had to cancelled leading to chaos. However, since then things visibly improved with the airline make operating profits since last several quarters, on the back of low fuel cost and better performance. The revival was led by BJP member Ajay Singh, who took the reins of the airline from earlier owner Kalanithi Maran, had not been taking salary till the airline turns profit. In December, the stakeholders approved the proposal to pay up to Rs 15 crore as annual remuneration to Singh. The airline is also mulling offering ESOPs to some of its employees, so to encourage them to stick with the company for a longer time.

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News Network
April 2,2024

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New Delhi: At least 38 Vistara flights originating from key cities were cancelled this morning as the airline reeled under non-availability of pilots. As many as 15 flights taking off from Mumbai, 12 from Delhi and 11 from Bengaluru were among those cancelled.

This comes after more than 50 Vistara flights were cancelled yesterday and about 160 delayed. Passengers had yesterday complained of poor communication and hours-long wait at the airport and slammed the airline for harassing passengers.

Vistara said in a statement yesterday that they have faced a "significant number" of flight cancellations and delays in the past few days "due to various reasons including crew unavailability".

"We acknowledge and are deeply concerned about the inconvenience this has caused to our customers. Having said that, our teams are working towards minimizing the discomfort to the customers," it said.

The airline has also said that it has decided to temporarily reduce the number of flights it operates "to ensure adequate connectivity across our network".

"We have also deployed larger aircraft like our B787-9 Dreamliner and A321neo on select domestic routes to combine flights or accommodate more number of customers, wherever possible. Furthermore, we are offering alternate flight options or refunds to affected customers, as applicable. Once again, we understand that these disruptions have caused immense discomfort to our customers, and sincerely apologise to them for the same. We are working towards stabilizing the situation and will resume operating our regular capacity very soon," the statement added.

Vistara pilots, it is learnt, are calling in sick as they protest the revised salary structure ahead of the airline's merger with Air India. The pilots have been sent the revised pay structure over mail and asked to sign on short notice. The pilots have been warned that those who don't sign will be left out of the merger.

Their flights cancelled or delayed by hours, fliers have taken to social media to express their grievances. The airline has been reiterating that the delays have been caused by operational issues and that it is working on them.

The Ministry of Civil Aviation has sought a detailed report from Vistara regarding flight cancellations and major delays, a senior official has told news agency ANI.

Passengers are advised to check flight status with the airline before leaving for the airport to avoid long wait and inconvenience.

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News Network
April 13,2024

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New Delhi: Seventeen Indians are on board an Israeli-linked container ship that has been seized by the Iranian military amid heightened tensions between Iran and Israel.

Official sources said India is in touch with Iranian authorities through diplomatic channels, both in Tehran and in Delhi, to ensure the welfare and early release of the Indian nationals.

The Iranian action came amid increasing fears that Tehran may launch an attack on Israeli soil in retaliation to a strike on the Iranian consulate in Syria 12 days ago.

"We are aware that a cargo ship 'MSC Aries' has been taken control by Iran. We have learnt that there are 17 Indian nationals onboard," said a source.

"We are in touch with the Iranian authorities through diplomatic channels, both in Tehran and in Delhi, to ensure security, welfare and early release of Indian nationals," it said.

Reports said Iran's Islamic Revolutionary Guards seized MSC Aries on Saturday morning when it was sailing through the Strait of Hormuz.

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News Network
April 15,2024

New Delhi: India is likely to experience above-normal cumulative rainfall in the 2024 monsoon season with La Nina conditions likely to set in by August-September, the IMD has said on Monday.

However, normal cumulative rainfall does not guarantee uniform temporal and spatial distribution of rain across the country, with climate change further increasing the variability of the rain-bearing system.

Climate scientists say the number of rainy days is declining while heavy rain events (more rain over a short period) are increasing, leading to frequent droughts and floods.

Based on data between 1951-2023, India experienced above-normal rainfall in the monsoon season on nine occasions when La Nina followed an El Nino event, India Meteorological Department chief Mrutyunjay Mohapatra told a press conference here.

Positive Indian Ocean Dipole conditions are predicted during the monsoon season. Also, the snow cover in the Northern Hemisphere is low. These conditions are favourable for the Indian southwest monsoon, he said.

Moderate El Nino conditions are prevailing at present. It is predicted to turn neutral by the time monsoon season commences. Thereafter, models suggest, La Lina conditions may set in by August-September, Mohapatra said.

India received "below-average" cumulative rainfall -- 820 mm compared to the long-period average of 868.6 mm -- in 2023, an El Nino year. Before 2023, India recorded "normal" and "above-normal" rainfall in the monsoon season for four years in a row.

El Nino conditions -- periodic warming of surface waters in the central Pacific Ocean -- are associated with weaker monsoon winds and drier conditions in India.

Three large-scale climatic phenomena are considered for forecasting monsoon season rainfall.

The first is El Nino, the second is the Indian Ocean Dipole (IOD), which occurs due to differential warming of the western and eastern sides of the equatorial Indian Ocean, and the third is the snow cover over the northern Himalayas and the Eurasian landmass, which also has an impact on the Indian monsoon through the differential heating of the landmass.

The southwest monsoon delivers about 70 percent of India's annual rainfall, which is critical for the agriculture sector. Agriculture accounts for about 14 percent of the country's GDP.

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