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Air India sold 5 Boeings at ‘significantly’ low cost: CAG

Air India and IndiGo's Joint Initiative, Plans for 170 Wide-Body Aircraft

Air India sold its five Boeing planes to Etihad Airways at a “significantly” lower cost than the “indicative” market price of the aircraft, CAG said in a report tabled in Parliament today.

The government-owned Air India sold these five Boeing 777-200 LR planes to the Gulf carrier Etihad for $336.5 million ($ 67.3 million per plane) in 2013 against $86-92 million per aircraft obtained from two parties — M/s AVITAS and ASCENT, the Comptroller and Auditor General (CAG) observed in its report ‘Turnaround Plan and Financial Restructuring plan of Air India Ltd’ (AIL).
In its latest report on the airline, the CAG also observed that AIL incurred a book loss of Rs 671.07 crore on the sale of these planes and payment of Rs 324.67 crore towards interest on loans availed for procurement of these aircraft.
The aircrafts were delivered to Etihad Airways during the period from January 2014 to April 2014.
According to the CAG, two parties — Etihad Airways of UAE and German Aviation Capital, Frankfurt — responded to open tender floated by Air India in May 2013.

Airlines

Alaska Airlines Acquisition of Hawaiian Airlines Reshapes the Air Travel Landscape

Alaska Airlines' Acquisition of Hawaiian Airlines Reshapes the Air Travel Landscape

Alaska Air Group, Inc. (NYSE: ALK) and Hawaiian Holdings, Inc. (NASDAQ: HA) jointly announced today the execution of a definitive agreement, signifying Alaska Airlines’ acquisition of Hawaiian Airlines at a cash price of $18.00 per share. The total transaction value stands at approximately $1.9 billion, encompassing Hawaiian Airlines’ net debt of $0.9 billion.

The combination of complementary domestic, international, and cargo networks

This strategic union is poised to open up an array of additional destinations, providing consumers with increased choices in crucial air service options across the Pacific region, Continental United States, and globally.

The transaction is anticipated to establish a robust platform for growth and competition in the U.S., offering enduring employment opportunities, ongoing community investments, and a commitment to environmental stewardship.

Key Points:

  1. Acquisition Overview:
    • Alaska Air Group to acquire Hawaiian Holdings for $18.00 per share in an all-cash transaction, totaling approximately $1.9 billion.
    • Combined company aims to maintain the strong, high-quality brands of Alaska Airlines and Hawaiian Airlines.
  2. Fleet Expansion and Network Reach:
    • Creates the fifth-largest U.S. airline with a fleet of 365 narrow and wide-body airplanes.
    • Enables access to 138 destinations through combined networks and over 1,200 destinations via the oneworld Alliance.
  3. Hub Development and Connectivity:
    • Honolulu to become a key hub for the combined airline, offering expanded services to the Continental U.S., Asia, and the Pacific.
    • Tripling the number of destinations from Hawai‘i to North America, while maintaining robust Neighbor Island service.
  4. Commitment to Hawai‘i:
    • Strong commitment to Hawai‘i, ensuring robust Neighbor Island air service.
    • Aiming for a more competitive platform supporting growth, job opportunities, community investment, and environmental stewardship.
  5. Employee and Union Commitment:
    • Commitment to maintaining and growing the union-represented workforce in Hawai‘i.
    • Immediate value creation with at least $235 million of expected run-rate synergies.
  6. Investor Call and Timeline:
    • Investor conference call scheduled for today at 5:00 p.m. ET / 2:00 p.m. PT / 12:00 p.m. HT.
    • Anticipated closing of the transaction within 12-18 months.
  7. Strategic and Financial Rationale:
    • Complementary networks to enhance competition and provide greater choice for consumers.
    • Preservation of both Alaska and Hawaiian Airlines’ brands on a single operating platform.
    • Expected to deliver high single-digit earnings accretion for Alaska Airlines within the first two years.
  8. Community and Sustainability Commitment:
    • Focus on growth in union-represented jobs and strong operational presence in Hawai‘i.
    • Commitment to environmental stewardship, aligning with Alaska Airlines’ five-part path to net zero by 2040.
  9. Synergies and Accretion:
    • Expected run-rate synergies of at least $235 million.
    • Transaction multiple of 0.7 times revenue, approximately one third the average of recent airline transactions.
  10. Conditions to Close:
  • Approval by regulatory authorities and Hawaiian Holdings, Inc. shareholders.
  • Expected to close in 12-18 months, with the combined organization based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.
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Aerospace

Revolutionizing Air Cargo: Dronamics and Qatar Airways Cargo Pioneer Drone-Airline Partnership

Dronamics, the inaugural cargo drone airline licensed to operate in Europe, and Qatar Airways Cargo, the world’s largest international cargo carrier, have announced a groundbreaking interline agreement. This partnership marks the first-ever interline agreement between a global airline and a cargo drone carrier.

The interline agreement facilitates the expansion of delivery networks for both collaborators, significantly broadening their outreach and granting access to regions traditionally challenging for conventional air freight.

Droneports Network of Qatar Airways Cargo.

Through this arrangement, Dronamics can offer cargo services from any of its droneports, initially located in Greece, to the extensive network of Qatar Airways Cargo.

This network includes destinations like Singapore, China (including Hong Kong), and the United States (JFK). Conversely, Qatar Airways Cargo gains access to remote locations served by Dronamics, such as the Greek islands, through the cargo drone network.

The expansion of this network allows Dronamics customers to make seamless bookings for transporting goods from a Dronamics droneport to any destination covered by the joint interline network, and vice versa.

It enables swift and reliable shipments

This development opens up significant potential for the flow of various goods, including pharmaceuticals, food, e-commerce items, mail, parcels, and spare parts. It enables swift and reliable shipments to and from locations that were previously underserved by air freight.

Svilen Rangelov, Co-Founder and CEO of Dronamics, expressed enthusiasm about the partnership, stating, “We’re very excited to have the world’s largest air cargo carrier as our partner for the first-of-its-kind interline agreement with our category-defining cargo drone airline.”

Rangelov emphasized the opportunity to exponentially expand air cargo accessibility globally, enabling same-day delivery to numerous communities worldwide.

Elisabeth Oudkerk, SVP Cargo Sales & Network Planning at Qatar Airways Cargo, highlighted the airline’s commitment to embracing disruptive technology and supporting ambitious companies like Dronamics.

She noted the significance of being the first international airline to offer this innovative service, marking a milestone in the advancement of autonomous cargo drone transportation.

Dronamics is set to commence commercial operations in Greece early next year, with a focus on establishing a same-day service connecting Athens, the capital city, with the industrial north area of the country, as well as the southern islands.

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Airlines

India’s Top 6 Airlines Dominating the Aviation Market in 2023

Sky High Chronicles: Unraveling the Market Share Dynamics of India’s Aviation Giants

Top 10 Airlines in India 2015

The Indian aviation industry has been a dynamic landscape, witnessing continuous growth and evolving competition among domestic airlines.

As the demand for air travel continues to rebound post-pandemic, understanding the market share of key players becomes imperative for stakeholders, investors, and enthusiasts alike. According to DGCA data, In this article, we will explore the market share and passenger numbers achieved by these carriers. we analyze the key trends shaping the aviation sector in India.

Market share of Scheduled domestic airlines

1. IndiGo: From January to October, IndiGo reached new heights, transporting an impressive 755.35 lakh passengers. IndiGo remains the unrivaled leader in the Indian skies, with a commanding market share of 60.2%, demonstrating efficiency, reliability, and an unwavering commitment to passenger satisfaction.

2. Air India: From January to October, it has successfully carried 118.74 lakh passengers, making it stand out as a beacon of distinction. Air India, which has a 9.5% market share, is recognized as a symbol of dependability, customer service, and a dedication to offering the best possible flying experience.

3. Vistara: In the aviation spotlight from January to October, Vistara dazzled as it carried a remarkable 113.32 lakh passengers. With a market share of 9.0%, Vistara has carved its niche in the skies, offering a seamless blend of luxury and efficiency.

4.AirAsia: set a new record in 2023 by transporting 92.06 lakh passengers from January to October. AirAsia is a dynamic force with a 7.3% market share, providing a seamless blend of innovation and passenger-centric service.

5.SpiceJet: emerged as a dynamic force, carrying a remarkable 68.34 lakh passengers. With a market share of 5.4%, SpiceJet showcases its prowess in offering a seamless and enjoyable travel experience.

6.Akasa Air: has emerged as a rising star, overseeing the seamless journey of nearly 50.91 lakh passengers from January to October. With a market share of 4.1%, Akasa Air is carving its path in the competitive skies, embodying innovation, comfort, and a commitment to elevating the passenger experience.

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