Indigo to get new Airbus Neo.

Indigo today confirmed that it would receive its first Airbus Neo aircraft from Airbus by end of December and would increase its fleet strength to 143 within next 15 months. Indigo finalized the purchase of 250 Airbus Neo aircrafts for USD 26.5 billion in August this year. According to its president Aditya Ghosh “The Airbus A320 Neos will start coming in from December- end. In the next 14-15 months itself we will see a huge expansion. We are going to grow from about 98 to 134 airplanes.”

With the newly acquired fleet Indigo is also planning to start more international flights from Kolkata. According to Ghosh “Sometime in the summer, we are planning a direct flight to Dhaka and another to Singapore and Bangkok. When we bought the first 100 planes everybody asked where you are going to park the planes. Today we are not only parking planes but flying close to 100 aircraft. The market is growing at 21 per cent year on year for the past several quarters and there is not enough capacity coming in. So, there is a huge opportunity. I do not see infrastructure is an issue. We have a robust cadet pilot program. We generate 25 new junior first officers every month. We create 15 new captains every month. Some of our first junior officers have started becoming captains. We have just moved into a brand new learning facility.”

The airline got listed last month and it will be interesting to see how the company plans to scale up its infrastructure and operations.

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Indian Aviation stock on a high with Spice Jet Leading The Show.

Spice jet has becomes world’s top performing aviation stock in last one year by increasing four fold from its current value. Aviation industry has benfitted to a greater extent in recent times due to lower crude oil prices and a big boost in passenger traffic.

The company outperformed its international customers like El Al Israel Airlines, Hawaiian Holdings, China Southern Airlines and Qantas Airways. Among other aviation players , the freshly listed Indigo also realized a 42% increase in its stock from the day of its filing on the stock exchange. All the aviation companies are positive that they will have a happy end to the year with increase in passenger traffic and advance booking numbers which are on a high. The management is on high because of the surge but various research companies advice not to go on a buying spree as the stock has risen sharply in recent times and would correct soon.

In an interview given to ET G Chokkalingam, founder and managing director of Equinomics Research & Advisory said “I would advise existing investors to book profits in phases in SpiceJet stock, while newcomers should avoid this company because the stock has already run up sharply. Some of the global airline stocks have seen re-rating because of lower jet fuel prices, while domestic airlines are benefiting from the fact that India is becoming the fastest-growing airline market.”

Lets hope that this blue run continues for a longer period and help investors earn some good money in the near future.

 

Indigo stock outshines Jet Airways

Within 8 days of listing , Indigo airlines stock gained 36% to achieve a market capitalization of Rs10,000 crores.The company has surpassed its two listed peers Spicejet and Jet airways.The stock reached at whopping Rs 1,1680 climibing 11.9% and attaining a market cap of Rs Rs 41,287.85 crore .Initially on 10th of Novemeber the day it was valued at Rs 31,648 crore.The market cap is combined to that of Jet airways 5,100 crores and spicejet 3,482 crores.

The company has the largest market share of 37.4% as on August 31, 2015. With a fleet of 98 aircrafts, 75 of them are leased the company has been able to maintain a profitable venture from the day it was incubated.It is interting to see that the company does not partner in any loyalty or miles program provided by other airlines.

Indigo takes off with a spectacular IPO , gains 17 % more .

Freshly listed , India’s most popular arline go of to a flying start in BSE . The company which got listed on Monday , is selling like hot cakes at Rs 859 per share which is about 16-17% of its Initial public offering . The latest offer being at Rs 890 a share. The escatic president of the group Aditya Ghosh was on cluod nine and said “”I think our hearts stopped for a moment just before the (listing) bell went off…but it’s been an absolute fantastic takeoff. Now it’s time to work harder and deliver on the trust that our shareholders have bestowed on us,”.”There’s no denying that the pressure will be much higher now, not just for me but for the entire team. But it also gives us an opportunity to prove our story to our shareholders,

The IPO of the holding company , Interglobe aviation which closed in October was placed at bids whoch were 6.16 times the sale of individual shares. The stock was in huge demand by foreign institution while the excitement to place the bid was also seen in domestic market with Rakesh jhunjhunwala leading the show .With the IPO , the market capitalization of Interglobe aviation increased to Rs 31,675 crore. This has put the company into big league ahead of Jet Airways and Spice Jet .

“The pricing has been driven by the positive fundamentals and the low floating stock. IndiGo is in great shape today with high loads and less fuel costs and 43 of the fuel efficient Airbus A320 Neos joining the airline in the next two years. My biggest concern was whether IndiGo would be able to sustain the dividend policy it has been implmenting till now. The airline has answered that very clearly that it will. If it does stick to this, it will find favour with the investors,” said Deven Choksey of KR Choksey.

“Also SEBI is coming up with a new policy under which company’s will have to define their divident distribution policy. That will help,” he added.

MR Choskey had earlier question the dividen policy of the group and cited reservations on whether the company will be able to pay the dividends after the IPO . He was also skeptical on the growth of the firm due to feirce domestic competiotion and increasing international oil prices . With on time schedule and clean and clear policy Indigo has made a brand of its own in the volartile domestic air market .The company has shown immense growth with six straight profitable quaters in the recent times.

Why Rakesh Jhunjhunwala is crazy about the IndiGo IPO .

Billionaire investor Rakesh Jhunjhunwala is crazy abount the indigo investment . And why not , the issu has already subscribed 6 times while the qualified institutional buyers (QIB) issue oversubscribed 19 times .80% of foreign investors bid for the (QIB) category The non institutional issue was oversubscribed 2.57% in this period .The retail investors were quite upbeat about the issue as they bid for 68% of the shares that were kept for them .

Interglobe is selling the share of its aviatio company at a price band of 700-765 per share . The oveall ipo can get them about 3,018 Cr of cash.