07. Februray 2007


Date: 07. Feb. 2007
Networth Stock Broking report on Jet Airways:
Highlights for the quarter
Jet Airways Q3 FY07 performance for the full service airline was much better than our expectations. The operating revenues during the quarter increased by 30.9% to Rs.19,356mn (Rs.14,782.5mn last year) on the back a 14% y-o-y increase in the revenue passengers to 2.7 million and a 12.3 % y-o-y improvement in the gross revenue per passenger to Rs 6,420 (inclusive of the congestion charge of Rs 150 from Dec 1, 2007 and fuel surcharge of Rs 750 on domestic routes).
The mix of full fares versus discounted fares stood at 30:70 and going forward this ratio is expected stabilize at the same level.
The load factor on the domestic front has shown a significant improvement to around 70% this quarter on account of the peak season from the month of October but remains lower as compared to last years levels due to high capacity addition of around 20% on the domestic routes by the company. The load factor on international routes has improved to 67.6% (62.4% last year) despite the capacity increasing 150% y-o-y on international routes.
The international revenues stood at Rs.4455mn in Q3 FY07 as against Rs 2052 million in Q3 FY06 due to addition of new international routes during the year, pick up in load factors and improvement in yields by 29.5% y-o-y to Rs 16,032 (USD 362). International revenues as a percentage of total revenues moved up at 23% this quarter (13.9% in Q3 FY06 and 18.8% in Q2FY07).
The cargo revenues increased by 84% and 22% to Rs 1670.8 million as opposed to Q3 FY06 and Q2 FY07 respectively. Cargo revenues as a percentage of total revenues have gone up to 8.63% (6.14% in Q3 FY06) this quarter mainly due to increased contribution from international cargo revenues of Rs 902 million.
The EBIDTAR Margins improved to 15.93% as opposed to 2.1% in Q2 FY07 mainly due to decline in the fuel expenses by 9.96% q-o-q and other costs like employee expenses not showing a major increase. The other income showed a sharp jump of 354.09% to Rs 943.6 million in Q3 FY07. The company entered into a sale and lease back agreement for one Boeing 737-700 aircraft in the month of October 06 the profit from which has been Rs 484 million.
Valuation
Jet Airways had emerged as the market leader in the domestic sector in FY05, but escalating competition in the domestic market has taken a toll on its market share and domestic yields. Anyways the company’s international operations represent a long term growth opportunity and commencement of its flights to the US from August 07 holds the key to profitability. So in terms of profitability we expect Jet to show an EBIDTAR Margin of 16.7% in FY08E. At CMP of Rs 784.35 the stock is trading at EV/Sales of 1.8x FY08E, which is in line with the multiple enjoyed by its international peers. We recommend investors to hold the stock.
Source: http://deccan-airways-news.newslib.com
Date: 07. Feb. 2007
FOR the first time in its history, the Indian Department of Post (DoP), has decided to lease an aircraft to transport letters, parcels and cargo. The aircraft will be leased from Indian Airlines. Although the contract has yet to be finished, the agreement will also include utilising cargo space on some routes operated by Indian. “We are in advanced level of talks with Indian and expect to roll out the air express services in another three months,” a DoP official said. The aircraft is expected to have a carrying capacity of 15 tonnes and will fly on selected high-volume routes only. The decision to invest in a freighter comes after the DoP has identified that logistics is an important sector in which they would like to be present. For Indian Airlines, the arrangement comes at an appropriate time, as it has decided to convert a number of its passenger aircraft into freighters.
Source: http://www.aircargonews.net


Date:07. Feb. 2007
The first airbus 320 of 'Indian' airlines landed in Mangalore airport today 7 Feb 2007, morning at 11.53am. Although the capacity of this aircraft is 146, the flight carrying 81 passengers arrived here. A 'pooja' was performed for the aircraft soon after it landed.
Executive Director, West Region Mumbai, of 'Indian' N R Pathak, expressed his joy over the landing of this flight, "we are happy though the first launch was delayed until now", he said.
Captain Tony Davis addressing the media persons expressed his happiness over the runway, "I am really happy to land here. It was the vision of Pandit Jawaharalal Nehru to dedicate a state of the art infrastructure to our great nation and to the National carrier. I humbly state that we have fulfilled his vision", he said.
"Mangalore has been on the network map of our airline for half a century now. We started in our own humble way with smaller aircrafts and with the development of the air field, we have brought Mangalore on the jet engine era. Today, on this auspicious 'muhurta' day we commence our operations with our mainstay work – with the versatile Airbus Boeing 320.
"It is to everyone’s pride that in spite of all the major metros, Mangalore is the second banking city in India, much ahead of major cities. The place also has the highest number of holy shrines in and around. This district has been adorned and described in the devotional songs and music that is the soul of India. We are proud to serve you.", he continued to say.
He went on to say "Indian airlines have always been attuned to the needs of the customer. We have your priorities safe and economic transportation uppermost in our minds. We have never compromised on safety. We also offer the best fares while keeping in mind the preferred destinations of the people of Mangalore. Highlights of our inaugural offer are-
MANGALORE—MUBAI RS.2425-ONWARDS
MANGALORE---SHARJAH ONE WAY RS 4420 PLUS TAXES.
MANGALORE—SHARJAH RETURN RS 9070 PLUS TAXES.
MANGALORE—DUBAI RS 6045 PLUS TAXES.
MANGALORE---DUBAI RS 12090 PLUS TAXES.
OUR BUSINESS CLASS FARE TO DUBAI 10,230+TAXES.
THIS IS CHEAPER THAN THE FARE TO MUMBAI-10,890.
Airport director Mr. Vasudevan, Captain Tony Davis area marketing manager Nagesh Shetty were also present at the press meet.
Airport director Mr. Vasudeva mentioned that on February 15th Muscat flight will be landing here. From March 1st, Dubai flight will fly 6 days in a week except Thursday.
"In January this year 678 aircrafts and 48,137 passenger movement has been recorded here. Only thing is here primary infrastructure is not completed . So I am requesting the passenger to kindly co-operate and welcome the new flights." he said. He requested the media to kindly support the introduction of these new international flights.
Source: http://mangalorean.com


Date: 07. Feb. 2007
India will need 856 aircraft worth $72.6 billion in the next 20 years, the Seattle-based Boeing said Wednesday, even as it committed an investment of $2 billion in the country in various areas of civil aviation. "Our investment will include $185 million towards pilot training, engineering services and maintenance, repair and overhaul facility," said Dinesh A. Keskar, senior vice president for sales for Boeing Commercial Airplanes."We have also committed an investment of $1.7 billion in offsets, including the sourcing of engineering services from Hindustan Aeronautics and software from firms such as Infosys, Wipro and Tata Consultancy," Keskar told reporters here."In fact our simulator for pilot training has already arrived in Mumbai and will be in operation by the end of this month," he added on the margins of the Aero India show at the Yelahanka air force base here. The $100 million maintenance, repair and overhaul unit is coming up at Nagpur and will mainly cater to the needs of Air India, while the pilot training unit will be located in Mumbai and operated by a subsidiary - Alteon. Boeing officials said thanks to the impressive orders worth $19.7 billion placed by Indian aviation companies in 2005 and 2006, the country was among the top five markets for the group. "India was a small blip in the global aviation map. Now it is driving the civilian airplane market," Keskar said. "The strong economic growth, emergence of low-cost carriers and major airport revamp plans are the factors driving growth." While Air India placed the largest orders for 68 aircraft, Jet Airways was next with 30, followed by SpiceJet with 20, Air Sahara with 10 and three from the Indian Air Force to ferry the president, prime minister and other important dignitaries. Keskar said Boeing was also bullish on India emerging as a major market for cargo planes, but said there was no immediate forecast available for this segment of commercial aviation. So was the case with business jets, he said. Giving a break-up of the types of aircraft India will need, the Boeing official said 676 of these worth $44.29 billion would be for single-aisle products, followed by 120 twin-aisle types worth $25.41 billion. Further, the demand is forecast at 51 regional jets worth $1.45 million, the larger aircraft like 747s may only account for nine units worth $1.45 billion, Keskar, who has been in India for each of the six air shows, added. Boeing is also supporting pilot training in a $10 million initiative marked for schools run by the Indian government. "There is a tremendous shortage of pilot in India. We need a pipeline of cadets.”
Source: http://www.newkerala.com