SpiceJet reportedly plans to boost capacity by approximately 40% in 2011, focus its expansion on domestic routes and may add up to two more international destinations (Bloomberg, 27-Jan-2011). The carrier will increase its fleet to 40 aircraft in 2011 from 25 and hopes to double this by 2013. As part of this plan the carrier will receive 15 Bombardier Q400 turboprops in the 13 months beginning Jun-2011, according to SpiceJet’s Chief Commercial Officer, Samyukth Sridharan. It will also add seven Boeing aircraft in 2011 after ordering 30 B737s and 30 Q400s in 2010.
SpiceJet plans to boost capacity by 40% and increase fleet to 40 in 2011
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Air Canada Part 2: Financial progress makes investment grade metrics more tangible
A decade ago it would have been unheard of for Air Canada to contemplate reaching an investment grade credit rating. The airline had emerged from bankruptcy protection, but was still struggling financially. It would teeter on the verge of another formal restructuring before setting out on a course to restructure its financial foundation – a process that has allowed the airline to improve its balance sheet and leverage.
Air Canada’s leverage targets for YE2018 will not meet the general proxy for an investment grade rating; however, its lower capital commitments and debt refinancing could create an opportunity for achieving that status beyond 2018.
Attaining an investment grade credit rating likely remains a longer term goal for Air Canada as its major financial goals in the short term remain paying down debt that is creeping up due to a fleet renewal, as well as funding growth to drive long-term shareholder value. More meaningful shareholder returns will likely occur once the company reaches what it deems as acceptable progress in debt management, and reaches a certain maturity level in growing its international network.
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Garuda Indonesia Part 4: revised fleet plan leads to new narrowbody and widebody orders
Garuda Indonesia is close to completing a new 10-year fleet plan outlining narrowbody and widebody growth. An overdue order for new generation widebody aircraft, along with a top-up order for 737 MAX narrowbodies, is expected by the end of 2016, potentially at the upcoming Farnborough Airshow.
The new fleet plan supports an ambitious plan to expand Garuda’s international network – both regionally and in the long haul sector. Garuda is also striving to strengthen its domestic position further with narrowbody growth.
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