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Qatar Airways to Create Its Own Indian Airline With 100 Planes

How Airbus deftly avoided the A350 controversy while obtaining fresh orders to secure its future.

In a bid to gain a bigger share in one of the world’s biggest markets, Qatar Airways announced on Wednesday its plan to launch a new domestic airline in India. This would be the first airline venture in the country that would be fully-owned by overseas entities.
In a media interaction at the ITB Berlin travel fair, Chief Executive Officer Akbar Al Baker said that the Gulf carrier would make an application to the Indian authorities ‘soon’.

“We are joining hands with the investment arm of State of Qatar to start a domestic airline in India with a 100 percent investment,” Al Baker said.

“We are doing this because Indian government has opened up the foreign direct investment in (setting up) an airline in India,” he added.

In the past, Qatar Airways has repeatedly expressed its interest to invest in IndiGo, the country’s largest domestic airline. However, nothing could be finalised in that deal.

Last June, liberalizing the FDI regulations, the Government allowed foreign investors — barring overseas airlines — to own up to 100 per cent stake in local carriers. At present, foreign airlines are allowed to invest only up to 49 per cent in domestic carriers.

Qatar Airways is British Airways-owner IAG’s biggest shareholder. It also has its stakes in South America’s biggest carrier, Latam Airlines Group SA and Italy’s second-largest airline, Meridiana Fly SpA.

The Gulf carrier has been trying to expand its presence in India but its growth has been limited because of limitation of traffic right.

On the latest development, Aviation secretary, Rajiv Nayan Choubey said, “I did not expect this (so soon), We will await for the application and will process it as per government policy”.

Profitability:

Qatar Air’s announcement comes amid the sector going downhill due to rise in aviation turbine fuel (ATF) prices, intensifying competition, and falling yields.

In fact, most players in recent months have been able to post profits only due to income from non-core areas, that is, activities other than selling tickets.

Market leader IndiGo, with 39.3 per cent passenger traffic share in 2016, reported a 26 per cent drop in net profit in the third quarter of 2016/17 compared with the corresponding period of the previous year. Revenues grew 16 per cent during the period.

Jet Airways, the second-largest player in terms of market share, reported a 69.5 per cent decline in (standalone) net profit; revenues grew just 0.6 per cent. Gurgaon-based SpiceJet reported a 24.5 per cent drop in net profit and 12.5 per cent increase in revenues.

The dip in profits has come in spite of the airlines earning higher revenues, albeit marginally, on account of the overall increase in passenger traffic, which grew 23.18 per cent in 2016. Still, bottom lines felt the pressure, as average fares fell for most carriers.

Indigo’s yield went down to Rs3.48 in the December 2016 quarter from Rs4.14 in the December 2015 quarter. Yield is average fare per passenger per kilometer. This means if IndiGo was charging Rs4,753 for a Delhi-to-Mumbai ticket in the December 2015 quarter, it charged Rs3,995 for the same flight in the December 2016 quarter.

Ratings agency ICRA, in a December 2016 report, said that “addition of capacity by new airlines and rapid expansion of capacity by existing ones have resulted in an intensely competitive market and prompted airlines to resort to a variety of fare promotions to improve PLFs [passenger load factors].” It is these fare wars that cost airlines dearly.

Courtesy : Business today 

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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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