Indian airline Jet Airways is likely to place an order for 100 narrow body aircraft, valued at $3.75bn in 2012-13, to replace its old models, as well as support its increasing market share.
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Centre for Asia Pacific Aviation’s (CAPA) latest report on Indian airlines said that the company is keenly assessing Airbus’ narrow-body A320 aircraft, and is expected to lease nearly ten A330s to further support its European network expansion.
The report revealed that the growth of Jet Airways was mainly due to the two debt-ridden carriers, Kingfisher Airlines and Air India, limiting their flight to the benefit of the airliner.
Jet Airways’ growth was also supported by Air India’s disruption of long-haul routes, which has moved North American and UK traffic to the airliner.
The rise in fuel costs and airport charges along with heavy debts have been plaguing India’s aviation sector in recent years.
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By GlobalDataCAPA projects that the Airlines in India are likely to post a collective loss of nearly $1.3-$1.4bn during the 12 months ending on 31 March 2013.
During 2012-13, Indian carriers are expected to face a weakening cost environment due to the hike in fuel prices, further decreases in the value of the Rupee, a rise in airport charges and increased service tax.
The consultancy also reported that Jet Airways and other private sector airlines, including SpiceJet, Go Air and Indigo are expected to deliver a net profit of about $200m in fiscal 2012-13, while Kingfisher Airlines and Air India are likely to post respective losses of nearly $1.3bn and $260m.
According to the report, the Indian aviation’s domestic capacity is expected to grow by 7%-8% in 2012-13, due to the expected addition of 24 aircraft during the fiscal year, including 20 narrow-body models on domestic routes.
Image: Jet airways’ growth was mainly boosted by reduction of flights by debt-ridden Kingfisher Airlines and Air India. Photo: courtesy of Rick Schlamp.
