At a time, when most of the airline companiesaround the world and certainly the ones in India are bearish on the growthprospects of the sector. When the focus of most airlines have shifted toreducing operating costs and when most are saddled with distressing financials,Jet Airways, India’s largest private airline,has just taken a contrarian bet by exercising an option to buy 17 single-aisle 737-800planes from Boeing Co. The deliveries are to begin from 2013. At listprices, the contract is worth about $1.4 billion, though customers generallynegotiate steep discounts.
This order comes at a time when Jet is tryingto cut operating costs, especially that of jet fuel. Intense competition alsohasn’t allowed the carrier to raise fares much to cover those costs. JetAirways posted a net loss of Rs 714 crore in the quarter ended September 30,2011, compared to Rs 12 crore in the same period last year. It had made aprofit of Rs 10 crore in the same quarter last year. Earnings were also hit byan exceptional forex loss of $52.7 million due to depreciation of the rupee. Jethas a fleet of 101 planes, including 59 Boeing 737s. In 2007, it had placed anorder for 20 Boeing 737s, with an option to buy more. According to Boeing, 737was its best-selling commercial airliner, with 8,800 orders. The new planeswould be inducted into the fleet over the next one-and-a-half years and used toreplace those on lease. Mumbai-based Jet has 43 of 737-800 aircraft. Theairline owns about 40 of those planes, with the remainder on lease.
The Indian aviation market is one of thefastest growing, with passenger numbers growing at 19 per cent. Jet carried 16per cent more passengers in the September quarter. Its revenue grew from Rs3,067 crore in the second quarter of last year to Rs 3,293 crore during thecurrent quarter. According to DGCA data for November, Jet Airways and Jetlitehave 27 per cent market share. IndiGo is ranked second with 19.8 per cent. AirIndia carried 17.4 per cent, while Kingfisher’s share dropped to 14 per cent.
| Company Name | CMP |
|---|---|
| Interglobe Aviation | 4660.75 |
| SpiceJet | 56.84 |
| Global Vectra Helico | 281.25 |
| Taneja Aerospace | 428.05 |
| TAAL Enterprises | 2879.00 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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