InterGlobe Aviation - Indigo


(sumit680) #182

My point is spice jet has been able to increase the yield which means that it has been able to increase the fare…at the same time load factor is also better…however as pointed out this may be due to regular incr in the capacity of indigo…but indigo is certainly trying to play the cheapest flight available and did not pass the incr in crude cos to pax during previous year…

The fact that spice jet has done that may give indigo a room for increasing its price…lets see…


(SMondal15) #183

Indigo mgt in Q4 con-call has said that Yield is increasing across industry and for them also.So its positive .


(LTInvestor) #184

Yield is not connected 1-1 to fares. You can have lower fares but higher yields if you fill up more seats which SpiceJet does.

Their load maybe higher because of them flying smaller aircraft (the Bombardiers). So flying a 80 passenger from Mumbai to Goa may fill up all but a 180 seat aircraft may only fill up 162 seats (90%).

To early to comment on costs. Spicejet has just come out operational mismanagement. By next year with newer jets coming in if costs do not reduce then it can be considered a management inefficiency. Besides Indigo flies a single aircraft (single contract) unlike spicejet which flies aircraft from two different manufacturers which pushes up maintenance costs.


(jajushobhit) #185

There was a bulk purchase by Blackrock today


(naruto) #186

Mohnish Pabrai in his recent interview talks about what makes Indigo efficient

  1. They hire only women for cabin crew so that they carry less weight
  2. Indigo does the seats themselves. Lightest seats in the sector

Disclosure : not invested. Interested in Aviation


(mylu) #187

Indigo earnings call transcript Q4 2018


(Rajneesh Sharma) #188

Indigo’s plan to launch cheap international flight opens up new prospects


(mylu) #189

(mylu) #190

Its been pointed that the changes will help in Indigo moving from local player to International player. Need to wait to see the actual results.


(SMondal15) #191

Indigo inducted 4 more A320 Neo. With such a high traffic growth,jammed airports,manufacturer strugelling with new supply of planes, consolidation of narrow body plane manufacturers worldwide under Boeing and Airbus,Suresh Prabhu at helm, Etihad in soup, booming domestic tourism industry…Indian aviation story is unique and no longer commodity…may be near term hardship due to crude making them a compelling story…


(amanjagga) #192

Somewhere in this topic, I read their CASK (Cost per available km) is about Rs 3.So I am not able to relate this cost to my regular route, Delhi - Bangalore which is approx. 1700 km (air distance calculated using Vincenty’s formula). One can easily find the flight on this route in less than Rs 4000 even for last minute bookings.

So how are they making money here?


(Ashish) #193

They obviously make huge money on F&B, cancellation fees, seat fees (which is not refundable even on a cancellable fare), leasing space for advertisements, also some seats get sold at much higher price and some at very low price (every time you login you will get different quote from them). Overall the realisation per passenger is much higher. Too many hidden costs make the quoted price look much attractive then it actually is.


(mylu) #194

Annual report FY2017-2018.


(mylu) #195

interestingly spicejet is 12.1% and Air India 12.5% . Spicejet have a high chance of gaining the 3rd position in upcoming months.


(Shadow_Investor) #196

No. of Fleets have now increased to 173 after adding 5 more this week. It was 153 in Dec to 173 in July. Adding up like 1 aircraft every 10 days.


(starman) #197

Yes. They have more than 400 on order to be delivered over next 9 to 10 years. Indigo earlier this year mentioned that they will receive one new plane every 9 days for the next 10 years.


(Aman Goklani) #198

(manivannan.g) #199

Indigo Posted subdued numbers (PAT: -96%, Revenue: 13%, ). Courtesy crude !!

Would be interesting to see the developments tomorrow morning.


(Prashusays) #200

InterGlobe Aviation Slumps To 16-Month Low After Earnings Letdown Triggers Price Target Cuts


(CommonStocks) #201

This is quite a contrast to the approach that Jet Airways is considering.