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UPDATE: India’s LCC Spicejet was grounded today, due to fuel now being COD (cash on delivery), the writing has been on the wall for 5 quarters, action was taken too late, and yet the airline still ordered $US 4.2 billion worth of 42 Boeing B737-8MAX aircraft in March ! The Indian market is high risk for any local airline and off course for any lessor or OEM planning to deliver aircraft into the market and why troubled companies need to acknowledge there is a problem as soon as possible, then diagnose the problems and deal with them right away, do not ignore them, or pay the price of failure.

As expected LCC Spicejet is grounded, its fate is unknown at this time, but very doubtful it will fly again, surely all lessors of the B737-800/900ER’s and Q400’s are there now, looking to get their assets out. There are 15 x Bombardier Q400’s with Spicejet, and up to 39 Boeing B737-800/900ER’s scattered around the country, … Continue reading

ABSTRACT: India’s LCC (low cost carrier) SpiceJet is in trouble, finally restructuring after 5 consecutive quarters of losses, just today it’s stock dropped 13.8%, as lessors start repossessing aircraft, yet 9 months ago it made a $US 4.4 billion order for 42 Boeing B737-8 MAX, now out of money ? where is the financial planning ? is the restructuring too late, again ? when will India’s airline industry be profitable with such low yields and high costs ? time for Air India to go bankrupt finally ? and yet LCC IndiGo is making money and orders 250 Airbus A320neo’s ready to dominate the Indian market with up to 528 Airbus A320/321’s by 2026 !

The airline industry in India is a bloodbath, everyone except LCC (low cost carrier) IndiGo and possibly GoAir is bleeding cash, with high operating costs and very low yields, the market is now facing another major bankruptcy after Kingfischer Airlines with SpiceJet in big trouble. India is the most under served airline market in the … Continue reading

ABSTRACT: Fast growing Exchange Income Corporation (EIC) of Winnipeg buys its 7th aviation company for $246 million, Provincial Aerospace Ltd. (PAL) and is now the 3rd largest fixed wing commercial aircraft operator in Canada with around 117 aircraft and few have heard of the company, yet it has what we need in Canadian aviation, vision, desire to grow, good leadership and ability to source financing, who said you can’t make money in this industry ? it takes financial experts working closely with experienced aviation executives and letting them do their jobs ! finally a quick look at the Maritime Patrol Market that PAL is in.

Back on January 31, 2013, I wrote a blog entitled “Consolidation through mergers and acquisitions in the Canadian regional airline industry and how to Value them ?”. I introduced the Exchange Income Corporation (EIC) (TSX: EIF) run by Mr. Mike Pyle out of Winnipeg, which today owns 6 aviation companies, 4 are regional airlines in … Continue reading