Air India Express, the low-cost arm of Air India, has earned a net profit for the first time in its history. As per the accounts placed and approved by airline’s Board of Directors (on 31st August 2016), the airline has made a net profit of Rs.361.68 Cr. in FY 2015-16 against the loss of Rs. 61 Cr. registered in FY 15.
Along with other factors, higher passenger load factor and better utilization of its assets helped the airline in achieving the positive financial result as the Airline’s fleet size remained at the same level of 17 aircraft as was the case in the previous fiscal. The year witnessed passenger load factor of 82.3 % against 81.4% in the previous year while average daily aircraft utilization rise to 11.3 hours from 10.8 hours. During the year the Airline carried 2.80 million passengers against 2.62 million carried in the previous year.
Prudent commercial and management interventions brought about an increase of 11.3% increase in revenues. The airline has achieved total revenue of Rs.2917.96 Cr. in the last fiscal against Rs.2622 Cr. earned in FY 15. Focused efforts made towards ancillary revenue generation have also contributed to the enhanced revenues.
“This turnaround is the outcome of the sustained efforts made by every member of Team Air India Express,” said Mr. K Shyam Sundar, CEO, Air India Express. He also said that the impressive results are thanks to the increased passenger confidence in the Airline’s services and that this augurs well for the fleet expansion plans being implemented by the Airline. The plan will see the induction in of 6 aircraft in the current fiscal, three of which have already joined the fleet in the 1st Quarter. The induction of 3 more aircraft by the end of the 3rd quarter will take the Airline’s fleet strength to 23 aircraft. Consequently, the Capacity offered and the Operating Revenues are expected to go up further by about 25% in FY 17.
This year witnessed the launch of the Airline’s operations from New Delhi to Dubai and Abu Dhabi and the strengthening of its presence in North Indian markets and additional flight operations from its core markets in South India.
With its recent announcement of operations from Chandigarh Airport to Sharjah, Air India Express shall become the first airline to connect Chandigarh directly to an international destination. The airline will start thrice-weekly services to Sharjah from Chandigarh effective September 15, 2016. Simultaneously, Air India Express will also introduce daily direct flights to Sharjah from Tiruchirappalli and increase the frequency of flights from Varanasi to Sharjah which will become daily.
KEY ACHIEVEMENTS – 2015-16.
- Net Profit of Rs. 361.68 Crores
- Operating Profit of Rs. 688.10 Crores
- Revenue Growth over previous year 11.21 %
- Passenger Load Factor 82.3 %
- Aircraft Dispatch Reliability 99.85 %
- Flying Hours 11.34 Hours per Aircraft per day
- Pax Carried 2.80 Million
Air India Express, India’s first international budget airline started operations on April 29, 2005, with three flights, taking off simultaneously from Thiruvananthapuram, Kochi, and Kozhikode. Currently, Air India Express has 475 weekly departures. The schedule reliability of the service stands at an impressive 99.8 percent. Air India Express flew 2.6 million passengers in 2014-15; this figure increased to 2.8 million passengers in 2015-16.
The airline has a fleet size of 20 Boeing 737-800NG aircraft, with a seating capacity of 189 passengers.
The target segment of Air India Express is the Indian expatriate, as well as the Indian budget / leisure travelers. Staying true to its slogan, ‘Simply PriceLess’, the airline aims at providing non-stop, no frills and cost-effective service to its customers.
Features that make Air India Express unique:
- Air India Express has seven operational bases in the country, as well as, one in Dubai, to meet the mission of providing convenient, point-to-point connectivity;
- Focuses on operations from Tier II cities in India to the Gulf and South East Asia;
- Air India Express is the only airline operating on the LCC model, to offer free meals to passengers, as well as complimentary tea/coffee on board;
- The airline’s year-round average, network-wide passenger load factor of 82.3 percent bears adequate testimony to the fact that Air India Express is a preferred airline among its target clients.