Airlines
Air India makes full-year operating profit and Jet Airways again defers B787s
August 26th 2016
Indian flag carrier Air India has produced an operating profit of approximately 100 crore rupees ($14.9 million) in financial year 2015-16, benefitting from the low fuel price environment and improved passenger boardings. Read More » The carrier has not disclosed other financial details, but it is expected to still be operating deep in the red overall, just like it did for the past decade.
Boeing’s senior vice-president of sales for the Asia-Pacific, Dinesh Keskar, has said Air India benefitted from flying the fuel-efficient B787. “The 787 aircraft is a key part of AI's turnaround strategy. It has been able to lower its loss and enhance profitability, owing to fuel savings and reduced maintenance cost offered by the aircraft.”
Mumbai-headquartered Air India now has 21 -8s in its fleet, with two more due this year and another four next year.
In the interim, Air India rival, Jet Airways, is once again deferring deliveries of its ten on-order B787-9s. “Jet Airways has informed us that it does not want to take the delivery of the 10 787s as per schedule. The move follows its decision to retake a similar number of 777s from Etihad and Turkish Airlines, which were given on lease by the airline earlier,” Keskar was quoted in the Indian media. The aircraft, whose delivery were last year deferred from 2016 to fourth-quarter 2017, are now only likely to begin in 2019. Mumbai-based Jet Airways also has 75 B737MAXs on order.
In neighbouring Pakistan, Pakistan International Airlines (PIA) might be converting an order for five outstanding B777-300ERs to the B787-9. In a communique issued this week, Prime Minister Nawaz Sharif’s office said Boeing Commercial Airplanes CEO, Ray Conner, had written to him recommending the flag carrier change its order because the Dreamliner better fits PIA’s operational requirements.
Earlier this month, PIA inducted the first of three A330-300s on wet-lease from financially-troubled SriLankan Airlines, for use on its newly-inaugurated “Premier" long-haul flights to London’s Heathrow, where premium passengers can avail of a complimentary limousine service on arrival.
The remaining two A330s are expected to be ferried from Colombo to Islamabad by February when SriLankan has dropped its long-haul routes to Paris and Frankfurt.
The SriLankan government is currently looking for potential suitors to privatize SriLankan Airlines and its low-cost offshoot Mihin Lanka. The deadline for expressions of interest has been extended until August 31. Sources have suggested Colombo is planning to sell a 40% stake in the carrier, just like it did in 1998 to Emirates Airline (the partnership was terminated in 2008, triggering a government buy-back).
