India Weekly: IndiGo 787s, dual airports, SpiceJet results and ‘broken seats’

This week in Indian aviation has been eventful, with key updates from IndiGo, Navi Mumbai, and Noida Airports, SpiceJet’s financial performance, and ministers taking to social media to highlight “broken seats.” Here’s a comprehensive look at the latest happenings in the industry. IndiGo Expands Long-Haul Fleet with Boeing 787-9s IndiGo, India’s largest airline, continues its international expansion by adding three Boeing 787-9 aircraft under a damp lease agreement with Norse Atlantic Airways. The airline plans to launch long-haul flights to Europe this summer. This follows IndiGo’s earlier announcement of acquiring a Boeing 787 from Norse Atlantic, set to begin operations on the Delhi-Bangkok route from March 1, 2025. With the new aircraft arriving in the latter half of 2025, IndiGo will have six widebody planes in its fleet—four Boeing 787s and two Boeing 777s. The planes are currently on a wet lease from Turkish Airlines. The damp lease agreement initially spans six months but can be extended to 18 months, subject to regulatory approvals. “This will help us make strategic inroads and establish the brand in the European market. As we execute our broader strategy to strengthen and extend our international network, we are steadily advancing towards our vision of becoming a global player by 2030, firmly rooted in India and driven by continuous expansion,” IndiGo’s Chief Executive Officer, Pieter Elbers, emphasized in a press statement this week announcing the additional three damp leases. IndiGo has also placed a firm order for 30 Airbus A350-900 aircraft, with an option for 70 more, scheduled for delivery in 2027. Navi Mumbai International Airport Nears Operational Readiness The much-anticipated Navi Mumbai International Airport (NMIA) is set for a potential inauguration on May 15, pending approval from aviation regulators. The Directorate General of Civil Aviation (DGCA) conducted an assessment this week, confirming that 90% of previously identified issues have been addressed. The NMIA is a joint venture between Adani Airport Holdings Limited (AAHL) and the City and Industrial Development Corporation of Maharashtra (CIDCO). It is designed to ease congestion at Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA), which currently operates with a single runway. Following the DGCA’s assessment, airport authorities will apply for the aerodrome license by February 28. Once approved, the necessary Aeronautical Information Publication (AIP) will be issued before April 30, paving the way for operations to begin mid-May. In its first phase, NMIA will handle 10-12 million passengers annually, including around 9 million domestic and 3 million international travelers. The airport’s second terminal, expected to be operational by 2028, will increase capacity to 30 million passengers annually. Noida Airport Finalizes Airline Partnerships and Passenger Services Much like Navi Mumbai will make Mumbai sport dual airports for the first time, Noida International Airport on the outskirts of Delhi will also help the capital have a second major airport. CEO Christoph Schnellmann says partnerships with IndiGo and Akasa Air have already been clinched, with the latter set to operate domestic and international routes. Additionally, the airport is receiving strong interest from airlines in the Middle East and Southeast Asia. The construction of the passenger terminal and air traffic control (ATC) tower is complete, and essential systems like the Instrument Landing System (ILS) and Precision Approach Path Indicator (PAPI) have been calibrated. Both Navi Mumbai and Noida Airport are expected to host passengers this summer. SpiceJet Posts Profit but Faces Financial Concerns SpiceJet reported a net profit of around $3 million for the third quarter of FY24, a sharp decline from around $36 million in the same period last year. Chairman and Managing Director Ajay Singh highlighted that the airline has become net worth positive for the first time in a decade. Despite the profit, SpiceJet’s financial struggles continue. The airline’s accumulated losses have reached just under $ billion, with auditors raising concerns about non-compliance with various regulations. Additionally, current liabilities exceed assets by around $500 million, raising doubts about its long-term sustainability. The airline remains optimistic about its future, focusing on restructuring efforts and cost-cutting measures to stabilize operations. Passenger Safety Concerns: “Broken Seats” Controversy Airline safety was scrutinized this week when Punjab BJP chief Sunil Jakhar raised concerns about broken seats on an IndiGo flight from Chandigarh to Delhi. His remarks followed a similar complaint by Union Agriculture Minister Shivraj Singh Chouhan, who reported a defective seat on an Air India flight. Jakhar posted images on social media showing loosely fitted cushions, which he claimed compromised safety standards. While IndiGo responded that their seats are designed with removable cushions secured by Velcro for easy maintenance, the incident has sparked discussions on safety compliance among Indian airlines. Air India was also in damage control mode this week, with regulator DGCA calling for a meeting to explain the ‘broken seat.’ Conclusion India’s aviation sector continues to expand, with IndiGo’s ambitious international growth, new airports nearing completion, and airlines like SpiceJet facing ongoing challenges and “broken seats.”

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