Indian Government clears LCC aircraft orders: LCC share wrap


India's Ministry of Civil Aviation approved the purchase of 46 new aircraft, valued at USD4.1 billion, by SpiceJet, IndiGo and JetLite. In total, Boeing will supply 32 aircraft, while Airbus will supply 14 aircraft. Shares in SpiceJet slipped 0.1% on Friday.

LCC fleet approvals



Other fleet details


Received in-principle approval to import 30 B737-800s

The airline in Jul-2010 signed an agreement with Boeing for the purchase of 30 aircraft, valued at USD2.7 billion. Deliveries are scheduled to commence in 2014. The carrier currently operates a fleet of 21 aircraft and will add seven more aircraft in the current calendar year. The carrier plans to operate a 50 aircraft fleet by 2014


Has been granted approval to import 14 A320s

Deliveries of the carrier will commence in 2011/12. The Government last month gave in-principle clearance for IndiGo to purchase 150 new aircraft over the next two to three years as it expands internationally. The carrier currently operates a fleet of 27 aircraft, with plans to add a further seven aircraft in the current financial years


Approved to import two B737-800s

Deliveries expected in Nov-2010. The carrier currently operates a fleet of 23 aircraft

India's Aviation Ministry recommends allowing international airlines to invest in domestic airlines

Meanwhile, India's Civil Aviation Minister, Praful Patel, stated the Aviation Ministry has recommended that foreign airlines be allowed to own as much as 25% of domestic carriers, stating: "This is our proposal, but it’s a larger process of decision making within government”. The Indian Government currently does not permit international carriers to have ownership position in local carriers.

Air India Express suspends 203 services due to cabin crew shortages

Also in the Indian LCC market, Air India Express suspended 203 services to the Gulf due to a shortage of cabin crew, with the suspensions to last until the end of Oct-2010. Suspended services include:

Elsewhere, shares in AirAsia slipped 3.7%, while on the other end of the spectrum, shares in Japanese LCC, Skymark, gained 4.3%.

Cebu Pacific passes Philippine Airlines by 1.2 million domestic pax

Among the non-listed Asia Pacific LCCs, Cebu Pacific stated it handled more passengers in 1H2010 than Philippines Airlines, with 4.1 million domestic passengers compared to 2.9 million for Philippines Airlines. The carrier has a 48.8% share of the domestic market.

The carrier added that it plans to handle 10 million passengers in 2010, commenting it "remains on track" to reaching this target.

Selected LCCs daily share price movements (% change): 03-Sep-2010

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