FAA allowed testing of 737 MAX in June 2020, airplane likely to hit the skies by the end of the year Will customer confidence impact the acceptance of the 737 MAX or will fuel-efficiency of the aircraft attract airlines to stick to the model in such lean times   Much like the aviation industry, the first half of 2020 has not been kind to Boeing either. Since the...

  Worldwide airline revenue is expected to plunge by half from 2019 levels, worst in the history of aviation industry Virgin Atlantic is the latest in string to file for bankruptcy protection   COVID-19 pandemic has left many companies from an array of different industries on the verge of extinction. Amongst all, the aviation industry has been one of the hardest hit,...

  E&Y expresses concern over Air Asia’s financial health Air Asia hustles to seek loans & share capital   Air Asia Group Bhd. is another airline that is battling at the forefront with slumping demand and whose future has been questioned over the recent few days. The carrier’s shares took a hit following a trading suspension as E&Y, the airlines’ auditor,...

Impact of Covid-19 on the global airline industry Qantas axes 6,000 jobs amid subdued travel demand and chalks out a 3-year recovery plan Covid-19 has made the airline industry’s worst nightmares come true. The impact of the plummeting demand has been far worse than that of 9/11 and 2008 financial crisis combined. One of the most challenging industries to operate in, the impact of...

  Will MC-21's entry as the medium range commercial aircraft redefine Russia’s role in the sector? MC-21 and its challenges Airbus and Boeing vs. MC-21?   Russian aircraft industry is one of the most innovative in the world, the aviation manufacturing in Russia has a century old legacy. But, the dissolution of the USSR impacted the development of new...

  Covid-19 provides a fresh blow to Avianca Airlines Implication of filing for Chapter 11 bankruptcy Is the government likely to provide support?   As the Covid-19 pandemic continues to badger industries worldwide, one of its recent victims includes Avianca Airlines: the world’s second oldest operating airline. After missing on a bond repayment (worth c. US$ 65.6...

Global air travel has immensely grown over the past decade and there are signs of continued expansion. The air connectivity was positively impacted by the increased growth of Middle East hub carriers. The International Air Transport Association (IATA) reported that revenues increased to the US $746 billion (2014) from the US $369 billion (2004).  Thus, besides competition within...

The sizable portion of the growth in the aircraft leasing industry can be attributed directly to consistent demand from the emerging markets, rising per-capita GDP, growth in passenger traffic and increasing international tourist travel. Airlines lease aircraft to either reduce the financial burden associated with procuring aircraft or to provide flexibility to meet variations in demand. A...

The aviation industry has witnessed a mammoth growth in the last decade. IATA or the International Air Transport Association reported that revenues in the sector increased to $746 billion (2014) from $369 billion (2004). A significant portion of this growth can be attributed to the low-cost carrier segment, which is said to account for about 25% of the market share. LCCs or the “no-frills...

Operational benchmarks that unmask the financial performances. The strong financial performance of an air carrier requires not only a solid brand proposition, but sound operational strategies, that evolve in a continuous dynamic environment. Although the list could be exhaustive, operating characteristics include high operating margin routes, strong network on routes serviced,...

  Covid-19 causes collapse of travel demand, hitting airlines & aircraft manufacturers Measures undertaken by Airbus to battle the situation   The Coronavirus pandemic has affected almost all industries across the globe, while there are a few which have been weighed down severely. Unfortunately, the Airlines industry falls into the second category. The pandemic...

  Covid-19 crushes demand for air travel & planes Impact on Boeing   As the world battles the spread of the global pandemic, it is virtually impossible to look anywhere and not see how it has impacted our lives, homes, communities or workplaces. The impact of the Covid-19 pandemic is evolving by the very minute. With social distancing being advised by governments...

  2019- a tough year for the airline industry An overview of some of the airlines that shut down operations in 2019 2020- another tough year for the industry due to the Covid-19 pandemic As are most years for the airline industry, 2019 was no less brutal. Ranging from the 737 MAX crashes that impacted several stakeholders besides the aircraft manufacturer to several...

The Growth Story Legacy Issues Emerging Risks   The Indian Aviation industry traces its history back to 1911 when the first commercial aircraft took off in the country. The industry has since come a long way, growing exponentially to become the third largest domestic civil aviation market in 2018. The industry comprises of a total of 7 scheduled airlines...

Flybe - a brief Reasons for Flybe’s collapse   Europe’s largest regional carrier and an integral part of UK’s aviation industry, Flybe, has gone bust, receiving its last blow from the fast-spreading Covid-19. Flybe, in fact, is the second British airline to go out of business in the past 6 months alone and the fourth in the past 2 years. The airline, serving 57...

Airbus tops the global commercial aircraft market Prominent competitors now and over the years of Airbus and Boeing Road ahead for the two giant plane manufacturers   With the crisis of its 737 MAX dragging on to 2020, Boeing has lost the title as the world’s biggest plane maker in 2019 after its delivery numbers fell drastically to 345 aircrafts as compared...

Global grounding of Boeing’s very popular model- the 737 MAX Financial and operational implications for Boeing’s customers   A flaw in the certification process and lack of communication from Boeing’s end regarding a critical new element in the aircraft compromised the lives and safety of the passengers onboard the 737 Max. Once, popularly advertised as a more...

Overview of the deal between Delta and LATAM Stronger foothold for Delta in South America with the new partnership Future outlook for Delta post the deal   Delta Air Lines, one of the major players in the US airline industry, recently announced that it is buying a 20% stake in LATAM Airlines Group for $1.9 billion. The investment has created a new alliance...

History of a long-drawn battle between two biggest aircraft manufacturers: Boeing and Airbus. US claims victory in Boeing vs Airbus feud.   On October 14 th , 2019, World Trade Organization (WTO) formally authorized the US to impose tariffs on the EU and other European countries worth about USD 7.5 billion of exports annually. The new tariffs came into effect...

Overview of the aircraft market over the years Market response on the launch of new Airbus A321XLR   Throughout the aviation history (especially through the 1960s and the 1970s) aircraft manufacturers followed the notion that bigger-is-better, developing massive aircraft such as the DC-10, Boeing 747 and Lockheed L1011 Tristar for intercontinental travel. These...