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Spicejet Shares Might Jump Another 300%

Gulf carriers like Abu Dhabi-based Etihad Airways PJSC and Qatar Airways have acquired stakes in other airlines to expand their networks. Airlines companies in the Gulf are now trying for some equity stake in Indian carriers like Indigo and Spicejet. Everybody worships the rising sun. 


Spicejet, nowadays, is being hailed as the leader of the pack of Airline stocks. Earlier in December 2014, it was on the verge of extinction. Its flights were regularly being cancelled. 


Enter Ajay Singh, exit Maran. Fortunes of the company saw remarkable turnaround,  although assisted by favorable factors like cheaper fuel, and rising passenger demand.

Today, it is coming up with one offer after another, and its peers are forced to follow it. The latest being celebration of UAE’s 44th National day. It has now earned for itself a well deserved accolade: “Leader of the Pack”. It is not for nothing. Mere announcement of the fact that Airlines in the Gulf want to become equity partners by its CMD causes volatility in its counter and millions exchange hands. 

New aircraft are being ordered. It would be used to open new routes and increase the frequency of flights to existing destinations, including the Maldives, Dubai and Sri Lanka and 34 domestic locations. More flights means more turnover, and optimum utilisation of its available resources. Consequently, its profits increase and it is indicated in increase in its share value.

The Company, however, maintains its ‘no-dilution-of equity’ stance. It believes that its share value is still undervalued. And, its internal resources and existing credit lines are sufficient for its future capital investment programs. 

SpiceJet to order over 150 planes in current fiscal


SpiceJet CMD Ajay Singh said that the firm is in the process of placing a large aircraft order. Such an investment would cap a remarkable turnaround for Spicejet by market share, which had came close to collapse late last year after running out of cash. (See Spicejet)

Co-founder Ajay Singh brought life back into the airline after acquiring a controlling stake. Earlier this month, SpiceJet reported a small net profit for the July-September period, helped by sliding fuel costs and surge in passenger traffic. SpiceJet has reported profits in the past three quarters, having made losses in the five preceding quarters. It is also facing a legal issue with “Unfair Business Practitioner” tag along with Indigo and Jet airlines. (See Could have been penalised“)

While addressing a news conference in Dubai, SpiceJet CMD Ajay Singh shared his Company’s well laid out plans – 
  • The company is in healthy shape. It is generating cash, it’s profitable. If oil prices remain moderate; this profitability should continue in the coming quarters.
  • The airline is generating enough money internally. It also has unused credit lines that could be utilised to pay for the aircraft.
  • SpiceJet has no need to dilute equity to pay for the purchase of the planes. 
  • This isn’t the right time to sell a stake as the shares remain undervalued
  • Some of the Gulf airlines have started expressing an interest in SpiceJet. 
  • There is some dialogue with them and to explore other types of relationships.
  • Both Airbus A320 Neo and Boeing 737 Max being considered. The order would be with a single manufacturer to buy more than 150 planes 
  • Manufacturer to be decided by March 2016.
  • Company intends to more than quadruple the carrier’s fleet from 41 aircraft at present.
  • SpiceJet also has “regional aircraft business” servicing India’s smaller cities through a fleet of 14 Bombardier planes.
  • The airline is in talks with Toronto-listed Bombardier, France’s ATR – a joint venture between Airbus and Finmeccanica – and Brazil’s Embraer to potentially buy a further 50 planes to service this sector.
Moneycontrol.com chart shows Rs 11.25 in November 2014 became Rs 72.50 one year later

Spicejet share price is currently being traded at Rs 67.50 after reaching the Rs 72 mark- a big leap since last year. It became the world’s best performing Airline stock. An incredible 320% increase in share value in a year. It could jump another 300%, analysts feel, when partners from the Gulf start investing in Spicejet. (See Spicejet is world’s best)




Spicejet Celebrates UAE’s 44th National Day with Latest Offer

Spicejet celebrates UAE’s 44th National Day. Comes up with new offers.

Spice jet is flying high

The latest Spicejet offer unveiled today has priced one-way tickets at a starting low of AED 244 (approx. Rs 4,438) base fare (statutory taxes applicable). In addition to the offer, Spicejet has announced that it will enhance its connectivity from Dubai to a host of Indian cities by increasing frequencies on multiple routes. The offer is for outgoing direct flights from Dubai to Indian destinations served by SpiceJet.


The Spicejet offer with one-way base fares starting at AED 244 are for travel  from Dubai to Mumbai, Kochi and Kozhikode while base fares starting from AED 344 would be applicable for travel from Dubai to Delhi, Ahmedabad, Amritsar, Madurai and Pune.

Spicejet offer: Highlights

* Booking period: 29th November – 3rd December, 2015 midnight
* Travel Period: 01st February – 29th October 2016

Limited seats, offer available on First-Come-First-Served basis

Ajay Singh, Chairman & Managing Director, SpiceJet, said, “Dubai is SpiceJet’s key international market. We will continue to increase our presence here. Our customers can expect many more flights and many more exciting offers in the coming months.”

Bookings On: NC Airways

Tickets under this offer are non-refundable but changeable at AED 130 (approximately equivalent to Rs 2,350).


SpiceJet to order over 150 planes in current fiscal


SpiceJet CMD Ajay Singh said that the firm is in the process of placing a large aircraft order. Such an investment would cap a remarkable turnaround for Spicejet by market share, which had came close to collapse late last year after running out of cash. (See Spicejet)

Co-founder Ajay Singh brought life back into the airline after acquiring a controlling stake. Earlier this month, SpiceJet reported a small net profit for the July-September period, helped by sliding fuel costs and surge in passenger traffic. SpiceJet has reported profits in the past three quarters, having made losses in the five preceding quarters. It is also facing a legal issue with “Unfair Business Practitioner” tag along with Indigo and Jet airlines. (See Could have been penalised“)

While addressing a news conference in Dubai, SpiceJet CMD Ajay Singh shared his Company’s well laid out plans – 
  • The company is in healthy shape. It is generating cash, it’s profitable. If oil prices remain moderate; this profitability should continue in the coming quarters.
  • The airline is generating enough money internally. It also has unused credit lines that could be utilised to pay for the aircraft.
  • SpiceJet has no need to dilute equity to pay for the purchase of the planes. 
  • This isn’t the right time to sell a stake as the shares remain undervalued
  • Some of the Gulf airlines have started expressing an interest in SpiceJet. 
  • There is some dialogue with them and to explore other types of relationships.
  • Both Airbus A320 Neo and Boeing 737 Max being considered. The order would be with a single manufacturer to buy more than 150 planes 
  • Manufacturer to be decided by March 2016.
  • Company intends to more than quadruple the carrier’s fleet from 41 aircraft at present.
  • SpiceJet also has “regional aircraft business” servicing India’s smaller cities through a fleet of 14 Bombardier planes.
  • The airline is in talks with Toronto-listed Bombardier, France’s ATR – a joint venture between Airbus and Finmeccanica – and Brazil’s Embraer to potentially buy a further 50 planes to service this sector.

Spicejet share price is currently being traded at Rs 65.50- a big leap since last year. It is world’s best performing Airline stock. An incredible 320% increase in share value in a year.
It could jump another 300%, analysts feel, when partners from the Gulf start investing in Spicejet. (See Spicejet is world’s best)




Air India Plans Non-stop Flight to Washington DC

A few years ago, Air India used to serve Washington via New York, but the service was discontinued. The carrier also had flights to Los Angeles in California, which was also discontinued before the merger of Indian Airlines with Air India in 2011. 

Presently, Air India (AI) has operates flights to 34 international destinations spread across the US, Europe, Far-East and South-East Asia, and the Gulf. AI already operates non-stop flights to three US cities – New York, Chicago and Newark, with operations to San Francisco scheduled to commence from December 2 as reported earlier (See San Fransisco

After San Francisco, Air India (AI) plans to launch direct flights to Washington DC and other cities in the US.
Welcome aboard

“AI is actively pursuing to connect more cities in the US (with India). A New Delhi-Washington flight is also in the pipeline,” said civil aviation minister Ashok Gajapathi Raju.

“AI connects the country like no other airline. Today the AI is the one of the most impoverished Indian carriers, and I hope it comes out of its poverty,” Raju said, referring to the financial troubles of the national carrier. (See Air India Chief

The Delhi-San Francisco flight will be of close to of 17 hours duration. The flight will leave Delhi on Wednesday, Friday and Sunday, while the return service will be on Thursday, Saturday and Monday. 


There are 3 cabin configuration:-
-8 seats in first class (costliest)
-35 in business and 
-195 in economy. 

The launch flight, both to and from San Francisco, has already been sold out and the demand was “tremendous” according to AI.

“This new flight will be a boon for the Indian diaspora in the US West Coast, making travel easy and convenient for students,” the carrier said in a release. “Next year, we will launch many new flights. 2016 will be a year of consolidation and growth for AI,” said the airline’s new chairman and managing director Ashwani Lohani. (See 7000 cr Mopped Up)

“The US is the biggest holiday destination for Indian travelers, with an estimated 10 lakh leisure travelers visiting the country every year. Non-stop flights to the US will attract good traffic,” said aviation expert Rajji Rai.


While you book your tickets, log on to NC Airways.





Air India to Commence a Direct Flight Service to San Francisco from New Delhi from December 2

Prime Minister Narendra Modi during his September visit to San Francisco had made a very exciting announcement. 


“There’d be a non-stop direct flight between New Delhi and San Francisco.”

National carrier of India, Air India will execute that announcement. It will commence a direct flight service to the Silicon Valley from the New Delhi from December 2. 

The flight AI-173

A321 aircraft
Tuesdays, Thursdays and Saturdays
Dep Bengaluru at 2115 hours 
Arrive Delhi at 2345 hours. 

Flight AI-173  
B777-200LR aircraft 
Wednesdays, Fridays and Sundays 

Dep Delhi on at 0235 hours
Arrive San Francisco at 0700 hours (local time) on the same day, 

Return flight 
Depart at 1030 hours and arrive Delhi next day (Thursdays, Saturdays and Mondays) at 1620 hours 
Depart Delhi with A321 plane.
Arrive Bengaluru  at 1745 hours.

Passengers will have huge benefits travelling to San Francisco as they will undergo immigration and customs at their boarding point itself and can have comfortable journey further. Passengers can enjoy non-stop entertainment, specially chosen food and best of the comfort on this one of the world’s longest flights, according to an AI release.

US’ San Francisco International Airport has announced a trivia contest on social media to mark the beginning of the first-ever non-stop flight from New Delhi to the tech city by Air India from December 2.

A number of officials from the US and India, including Venkatesan Ashok, Consul General of India, will attend a formal ribbon cutting ceremony on December 2 to mark the beginning of the services. 
SFO offers non-stop flights to more than 39 international destinations on 33 international carriers. The Bay Area’s largest airport connects non-stop with 77 cities in the US on 13 domestic airlines.
AI expects passengers from other Indian cities — Mumbai, Chennai, Hyderabad, Kochi, Ahmedabad and Pune — as well will have seamless connections to the flight from Delhi.

So, book your tickets here. NC Airways




Air India Mopped up Rs 7,000 cr by selling 9 of its 21 Dreamliners under SLB

Air India has mopped up Rs 7,000 crore by selling 9 of its 21 Boeing 787 Dreamliner planes to a Singaporean lessor, which it has taken back on lease from the company under a Sale and Lease Back (SLB)  arrangement. A major chunk of these funds will go into repayment of the bridge loan availed earlier for purchasing these Boeing 787-800s, airline sources told news agencies.
Under this system, the seller of an asset leases it back from the purchaser for a long-term period and continues to use it without actually owning it. Air India has 131 aircraft in its fleet, consisting of Boeing, Airbus and ATR planes as well as CRJs

Adopting the sale and lease-back route, debt-ridden Air India has raised almost Rs 7,000 crore by selling nine of its 21 Dreamliners to a Singapore-based lessor and then leasing the planes from it. Earlier, AI had sold and leased back 12 Dreamliners. 

About Rs 6,000 crore raised from this deal will be used to reduce the airline’s aircraft purchase loans. 

As reported earlier, AI has a combined aircraft purchase and working capital loan of Rs 40,000 crore, apart from accumulated losses of Rs 30,000 crore. (See Air India)

The company availed a Rs.30,000 crore bailout package from the Government of India. That is, the country’s law abiding tax paying citizens’ money acted as the life saver for Air India. It reported a net loss of Rs.5,547.47 crore in the last fiscal.


These 9 planes had joined AI between March 2014 and June 2015. AI had fixed a reserve price of not less than $123 million for planes acquired in 2015 and $120 million for the aircraft inducted in the fleet during 2014. 

When Dreamliner had started joining the airline from September, 2012, it could not land in winter dense fog in either Delhi or the European cities. It operated for the last three winters. This time, however, the Directorate General of Civil Aviation (DGCA) has certified AI’s dreamliner to operate under category 3B of instrument landing system (ILS). which means it can land when visibility is about 100 metres. 

Meanwhile, the DGCA has certified the Airbus fleet of Vistara and AirAsia India to operate using Category II ILS.



GoAir Tickets @ Rs 691 + taxes

GoAir rolls out three discounted ticket schemes starting at Rs 691……

GoAir, too, enters fare war
No-frills carrier GoAir today rolled out three discounted ticket schemes to its customers for a limited period including offering one-way fares starting as low as Rs 691 excluding taxes for travel between January 1 and September 30 next year.

This comes at a time when other airlines are also offering attractive discounts to woo travelers.
This Rs 691 figure is far less than the Rs 2500 mark which the Government is discussing in its New Aviation Policy. 
Such healthy competition between the airlines causes the smile to return on consumers’ faces. It is more than welcome.

There are three offers — Christmas Special, Go Explore and Happy Tuesday’s. All are aimed at making air travel affordable for customers across its network, especially during the holiday season, GoAir has said.

‘Christmas Special’ offer. It is available for bookings from November 20 to November 22, gives every 25th GoAir passenger a chance to win free tickets to any of the GoAir sectors for travel between December 1 and December 25, 2015, GoAir said in a release.

‘Go Explore’ scheme. The ticket prices for GoAir flights starts at Rs 691 excluding mandatory taxes. Travel period for this offer is between January 1 and September 30, 2016.

‘Happy Tuesday’s’ offer.  This is one wherein passengers will be able to avail 20 per cent discount on the base fare of all GoAir flights booked between November 24 – December 15, 2015 for travel on Tuesdays between the given period.

The 4-week sale will be open till midnight of December 14, and tickets booked under this offer will be governed by the airlines standard re-booking and cancellation policies, the airline said. 

To avail the opportunity, passengers should  book their tickets between November 21-24, 2015 and log on to NC Airways.