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Tag Archives: Pegasus

Air Pegasus stops flying to Cuddapah, yet to operate Hubli second frequency.

01 Thursday Oct 2015

Posted by theflyingengineer in Air Pegasus

≈ 1 Comment

Tags

72, Air, ATR, Bangalore, Bengaluru, cancellation, Crew, Cuddapah, Flights, Hubli, Pegasus, Shortage

Air Pegasus ATR 72 500 VT APAAir Pegasus, which started operations mid April and now has a fleet of 2 ATR 72-500s, is impacted by shortage of crew to fly its aircraft.

The Bangalore based airline, which in August announced a second frequency to Hubli, to allow for a day return for passengers from either city, has not yet operated the morning 7:05 Hubli flight since 20th August 2015, effectively serving just one flight either way, each day. The airline isn’t yet accepting bookings for the morning Hubli flight.

The airline has reportedly stopped operating flights to Cuddapah since a significantly long time. The airline is next open for bookings to Cuddapah only on the 11th of October. Air Pegasus inaugurated the Cuddapah airport, and was the only operator flying to the city. It operated the first flight to the city on 7th June, 2015.

Crew shortage is preventing the airline from both operating scheduled flights as well as expanding or strengthening the route network. Cancellation rates at the airline, which started at 0%, started increasing month on month to touch the airline’s high of 5.81% in the month of August.

Air Pegasus presently operates two ATR 72-500 registered VT-APA and VT-APB, both ex-Kingfisher ATR 72s leased from Elix Aero. The airline is presently scheduled to operate 16 flights a day (except Tuesdays), of which it currently operates only 12 – 14 flights a day. The maximum present daily aircraft utilisation is 10:50 hrs, and an average of 8:10 – 9:15 hrs per aircraft per day. Till the 31st of August 2015, the airline had flown 40,930 passengers with an average load factor of 75%. The average distance flown per flight is 435km, and the average block hour duration is 1:20 hrs per flight.

Air Pegasus is one of 5, 70-seat turboprop operators, and one of 4 ATR 72 operators in India. Trujet and Air Pegasus are the only two scheduled airlines in India to operate an all ATR 72 fleet.

Trujet – India’s 9th Operational Private Airline

31 Friday Jul 2015

Posted by theflyingengineer in Trujet

≈ 5 Comments

Tags

Air, aircraft, Airways, Capital, Elix, Finance, funding, India, Jet, Pegasus, Phoenix, Spicejet, Trujet, utilisation

TruJet_ATR72_CGI

Hyderabad based TruJet, brand name of Turbo Megha Airways Private Limited, is India’s 9th operational private airline, the country’s third operational regional scheduled domestic airline, and the country’s second all-turboprop, operational airline.

Turbo Megha Airways Private Limited was incorporated in March 2013, by three persons: Vankayalapati Umesh, Ram Charan Tej Konidala, and Ram’s sister, Sushmita Laggishetty.

46 year old Umesh, who serves as the Managing Director (MD) of the airline, rose from a ground-handling technician to running Turbo Aviation, which includes a jet charter company ‘Turbo Charter’ that owns a Cessna CitationCJ2. Turbo Aviation also offers ground handling services, CAMO services, and MRO Services.

30 year old Ram Charan is a Telugu Actor, and a director of MAA TV and reportedly owns Hyderabad Polo Horse Riding club. He and his older sister Sushmita are two of three children to 59 year old actor, producer, and Indian National Congress politician Konidela Siva Sankara Vara Prasad alias ‘Chiranjeevi’.

The company had an authorized share capital of INR 15 crores (INR 150 million), which was 3 Crores more than the minimum paid up capital requirement for an airline operating turboprop aircraft of the likes of ATR 72 and Q400, or regional jets like the Embraer E170, 175 and CRJ 700 and 900. Seating capacity was hence limited to the 70 – 90 seat category.

In May 2013, the airline pumped in INR 7 crores as capital, followed by another 5 crores which took the total paid up capital to 12 crores in July 2013 – sufficient to satisfy the DGCA requirement for the application of a regional permit.

In July 2014 – a year later, the airline received its no objection certificate (NOC) that allowed the airline to start the process towards obtaining an air operator permit (AOP). The formal application meeting for a southern regional AOP was held on 23rd January 2015.

In April 2015, the authorized share capital of the airline was increased to INR 50 crores, which can allow for a paid up capital of the same amount – the amount advised by the DGCA. This also allows the airline to apply for a pan-India license with larger airplanes.

In May 2015, Prem Kumar Pandey, Assistant Vice President at Megha Engineering & Infrastructures Ltd (MEIL), was appointed as a director, with investment from MEIL. 29 year old Prem is the son-in-law of one of the promoters of MEIL. ‘Megha’ in the registered name Turbo Megha Airways Private Limited indicates that investment from MEIL was certain way back in 2013.

Shareholding pattern in the airline is believed to have been restructured to stand as 22%-26%-52% between Umesh – Charan & family – MEIL, with access to around an additional INR 100 crore.

The airline received its first of two ATR 72-500 aircraft on 21st May 2015. The aircraft had earlier flown for the Malaysian airline and charter operator Berjaya Air. The 6 year old aircraft MSN 858 is registered VT-TMK, and the cabin is laid out with 72 seats. A month later, the airline received its second ATR 72-500 (MSN 875). After Berjaya shut turboprop operations, both aircraft were purchased by Singapore based Phoenix Aircraft Leasing, and were sold to Ireland based Elix Aviation Capital Services in December 2014. Elix has dry-leased the airplanes to TruJet. The same lessor has leased airplanes to Bangalore based Air Pegasus, which is a smart move as it helps transfer assets between operators should either shut operations.

The airline received its AOP on 7th July 2015, less than a year since obtaining its NOC, and around one-and-a-half months since receiving its first aircraft, making it the fastest regional Indian airline to obtain its AOP. Turbo Aviation’s experience with running a charter service which resulted in good preparedness, and the airline’s connections in the ministry are believed to have speeded up the process.

Branding

Trujet is an interesting name considering the airline operates turboprop aircraft for now. However, it must be borne in mind that a turboprop engine’s core is a jet engine.

Trujet_logoAccording to the airline, ‘Trujet logo is inspired by the national bird of India peacock and represents all that the TruJet service aspires to be— graceful, joyful and luxurious. The logo also conveys attributes of service, professionalism, sophistication and, importantly, the airline’s Indian roots.’

Network, Operations & Competition

Usually, airlines take about a week to open for bookings once the AOP is received. Once bookings open, an airline starts operations usually 2-4 weeks thereafter. This allows sufficient bookings to build up before operations can commence.

In the case of Trujet, the airline wanted to cash in on the Pushkaram festival, an Indian festival dedicated to worshiping of rivers, once every 12 years. The airline started operations with one aircraft on 12th July, flying between Hyderabad, Chennai, Tirupati, and Rajamundry.

Trujet_Route_MapOn 26th July, the airline commenced its regular, non-seasonal operations with one aircraft, connecting Aurangabad, Tirupati and Rajamundry to Hyderabad. All three destinations are significantly driven by religious tourism. Aurangabad is an airport very close to a religious destination – Shirdi. The airline stopped services to Chennai from 26th July.

Presently, the airline operates a double Hyderabad-Tirupati service, and single Hyderabad- Rajamundry and Hyderabad-Aurangabad services. With this, the airline operates 8 flights a day, clocking 10:20 hours of utilisation with turn-around times of 25 minutes. Average block time is 1:20 hours, and average sector distances are 220NM. With such sectors, the aircraft can be pushed (subject to commercial and operational viability) to fly a maximum of 10 flights a day with a utilisation totaling a little over 13 hours a day. However, the present utilisation is good for a startup airline.

Trujet_Rotation_Schedule

The second aircraft is expected to be operationally ready in a week’s time, and will fly sectors out of Chennai.

At the time of research, Trujet’s frequency between Hyderabad and Tirupati, both ways, is twice daily, against 6 flights onward and 8 flights on the return. Aircraft deployed on the sector are in the 70-80 seat category including Air Costa’s Embraer E170s and SpiceJet’s Q400s. However, Air India deploys 172 seat A321s and 48 seat ATR 42s on that route.

On the Hyderabad-Aurangabad sector, Trujet enjoys a monopoly.

On the Hyderabad – Rajamundry sector, Trujet’s single frequency competes with SpiceJet’s 1 onward and 2 return frequencies, and Jet Airways’ three frequencies either way. While SpiceJet deploys its 78 seat Bombardier Q400s on the route, Jet Airways deploys ATR 72-500s. Difference in speeds between the two types result in only 5-10 minutes of block time difference.

The airline offers a transit (no change of flight) service between Tirupati and Aurangabad via Hyderabad.

A flat 4% sales tax on fuel (in comparison to upto 28%) for aircraft operating scheduled serviced with less than 80 seats, and a waiver of airport charges for aircraft of such weight category will keep direct operating costs at Trujet lean. The operating economics of the ATR 72, which is best suited for such mission lengths, will further contribute to a lean operating structure.

Maintenance of the aircraft is carried out in house at Turbo Aviation’s maintenance facility, which has an approval for the aircraft type.

Pricing

Trujet_SpiceJet_Hyderabad_RajamundryTrujet_SpiceJet_Hyderabad_Tirupati

The airline has a very simple fare model that has 13 active fare buckets. Fares for all sectors in corresponding buckets are the same fare, whether a direct or a hopping flight. There seems to be no discounted one-way fares for return flights. Adaptation to sectors that are higher in demand or longer is achieved by erasing lower fare buckets.  The first 9 buckets are in flat INR 500 increments, and the last 4 buckets are in increasing increments. The airline will reportedly offer 10% discount for senior citizens, students below 18 years, members of the South India Artistes’ Association and those from the film fraternity.

Services

Trujet may become the only airline in India to offer a comprehensive travel solution. To cater to passengers whose wish to be connected to cities or towns that do not have an airport, the airline plans of introducing Volvo bus services that pick up passengers to drop them at the airport, and pick up passengers from airports to drop them at their actual destinations such as Shirdi. The airline reportedly plans to assume full responsibility of baggage handling at the bus pick up point, the airport, and the bus drop point.

The airline reportedly offers a complimentary in-flight meal.

Future Plans

The airline has reportedly identified 18 tier-II towns and cities in the south for operations. Most major airport cities in the southern region show promise.

Major_Southern_Region_Cities_Domestic_Passenger_Growth

Some of the other destinations, as made public earlier, are Mangalore, Vijayawada, Bangalore, Hubli, Vishakhapatnam, Tuticorin, Coimbatore, Salem, and Kadapa. The airline’s new destinations are expected to be announced when the second aircraft is ready to fly online, as the first aircraft’s rotation has no room to accommodate new flights.

The airline reportedly has plans to increase the fleet to around 5 aircraft by March 2016. The fleet is reportedly expected to touch a size of 4 in January 2016.

The airline is targeting a break even period of 12 – 24 months. This translates to a break even between Q1’17 and Q1’18.

A regional model with turboprops makes for a good feeder model, and may be sustainable in low capacity high demand routes, but may saturate fast without room for growth in connectivity. The ATR 72 is ideal for sectors of upto 1:45 hrs block time. For real growth, an airline must look beyond mere regional connectivity, and will need to offer pan India, inter-regional connectivity, which is commercially and operationally viable with regional jets. The airline is reportedly taking steps towards expanding its operational territory beyond the southern region into neighboring regions, for now with its turboprop aircraft.

The airline may adopt a dual-fleet strategy for a good combination of range, connectivity, and penetration.

It is to be seen if the airline becomes the first regional operator to convert to a pan-India license.

The Flying Engineer offered comments on Trujet to Business Standard, based on this research . Click Here to read.

Air Pegasus : The Start

04 Saturday Apr 2015

Posted by theflyingengineer in Air Pegasus, Airline

≈ 4 Comments

Tags

72, Air, Airline, ATR, Bangalore, Hubli, Pegasus, Trivandrum

Pegasus_Lauch_ShysonAir Pegasus (ICAO: PPL, IATA: OP) is the newest airline in the Indian airspace, and the second active airline to be headquartered in of Bangalore, after AirAsia India. The airline is a regional scheduled operator, and plans to fly a fleet of only ATR 72 aircraft.

The airline received its first ATR 72-500 on September 27th, 2014. The aircraft, with a serial number MSN 699, formerly flew for the now defunt Kingfisher airlines as VT-KAA. The aircraft, back in India to fly for Air Pegasus, is registered VT-APA.

Six months after receiving its first and only aircraft, Air Pegasus was granted its Air Operator’s Permit (AOP) by the DGCA. The airline officially ‘launched’ on April 1st, and today – April 4th 2015 – has opened for bookings.

The second aircraft, another ex-Kingfisher ATR 72, is expected by the end of April 2015. The airline plans a third ATR 72 this year, details of which are not available.

The airline is India’s first all-ATR72 operator.

The airline plans to start operations on 12th April, 2015, with the inaugural flight from Bangalore to Hubli and back. The next day, the Bangalore – Trivandrum – Bangalore route will be inaugurated. These two stations are expected to be followed by Kochi, Chennai, Tuticorin, Belgaum, Rajmundry, Pondicherry and Madurai. Some of these stations witness good demand. However, it must be remembered that demand is a function of pricing.

Pattern+Acft1_initial_pegasusAverage turnaround time at the airline is 25 minutes, and the total aircraft utilization with these two sectors is 5:30 hrs. We expect the utilization to touch close to 10 hours per aircraft per day.

Marketing.

The airline opened for sales today, 4th April, 2015. The open for sales could perhaps have been supported by the presence of newspaper advertisements, media reports, tweets on the official Twitter account, or posts on the Facebook page. These were missing perhaps missing due to the long holiday weekend. It is learnt that the airline will launch a media campaign very soon.

Online Travel Agencies (OTA) are yet to list the airline in their searches, and may soon happen.

Pricing

On the Bangalore- Hubli sector, a fully loaded ATR72 will consume around 875 litres of ATF as trip fuel, assuming a cruise at FL220. This translates to around INR 38,000 as fuel cost, including the discounted sales tax of 4% applicable to aircraft with less than 80 seats flying for a regional airline. The estimated operating cost, taking into account the low aircraft utilisation and few other factors, is at around INR 1,80,000 per flight, bringing the cost per seat on this sector to around INR 2,200, and CASK to INR 5.62.

On the Bangalore- Trivandrum sector, a fully loaded ATR72 will consume around 1,125 litres of ATF as trip fuel, assuming a cruise at FL220. This translates to around INR 49,000 as fuel cost. The operating cost is estimated at around INR 2,00,000 per flight, bringing the cost per seat on this sector to around INR 3,000, and CASK to INR 5.45.

Ticket prices on both sectors fall in eight buckets. The corresponding all inclusive fares are also shown. (deleted upon request)

Depending on the way revenue management at the airline is played with, the airline may comfortably break even with load factors of 70% +/- 10%. However, a lot of this depends on the actual demand by last minute travellers, when ticket prices usually sit in the higher buckets. This high yield D0-D7 demand is also driven by the service reputation that the airline builds over time.

The airline enjoys a monopoly on the Bangalore- Hubli route, and this will do the airline good. Air Pegasus competes with IndiGo, Air India, and Jet Airways on the Bangalore – Trivandrum sector. The airline will face certain stiff competition from IndiGo which prices its fares as low as INR 1,964.

We wish the airline all the very best in its operations.

SpiceJet’s BBAM Boeing 737-800 goes to Pegasus Airlines

28 Saturday Mar 2015

Posted by theflyingengineer in Airline, SpiceJet

≈ 3 Comments

Tags

400, active, BBAM, Boeing, court, Fleet, lease, Lessor, Pegasus, Q, Spicejet

Pegasus_SpiceJet_737

SpiceJet’s Boeing 737-800 MSN 37366 earlier registered as VT-SGU had entered storage in the July of 2014. The aircraft, leased from BBAM, was recently painted in the colors of Pegasus Airlines, and will soon be flown off from Hyderabad Shamshabad to operate for the Turkish airline.

A very significant number of SpiceJet’s Boeing 737s were leased from BBAM, most of which have been returned to the lessor. BBAM, which began as Babcock & Brown Aircraft Management remains the largest lessor for SpiceJet, with five aircraft – VT SGG/SGH/SGV & SGQ – all four Boeing 737-800s, and VT-SPU – a Boeing 737-900.

Recent media reports pointed to BBAM taking SpiceJet to court for the de-registration of the five 737s. The airline issued a statement on 25th March ststing, “Discussions have been ongoing with the lessors for an amicable settlement. SpiceJet fully expects the matter will be resolved shortly and positively with the lessors, and there will be no grounding of aircraft or disruption of operations.”

All five BBAM aircraft are still operating flights for the airline.

Lessors_SpiceJetSpiceJet today flies an active fleet of 17 Boeing 737s, which includes only one 737-900 leased from BBAM. The other lessors are Air Lease Corporation (ALC), Ansett Worldwide Aviation Services (AWAS), Bank of China Aviation (BOC), Industrial and Commercial Bank of China (ICBC), and Mitsubishi Corporation Aviation Partners (MCAP).

SpiceJet owns all its fifteen Bombardier Q400s.

GE Capital Aviation Services (GECAS), another prominent lessor, had towards the end 2014 pulled out its five Boeing 737s, four of which are parked at Seletar Airport, Singapore- VT-SZE/F/G/H, all of which have been de-registered.

As per the airline’s statement on the 20th of March, 2015, “SpiceJet is also in the process of adding more aircraft to the fleet and expects to add 8-9 Boeings starting in April to take the active Boeing fleet to 25-26 aircraft in the summer, in addition to the 15 Bombardier Q400 aircraft that are owned by SpiceJet. SpiceJet will continue to add more aircraft in the second half of the year to take the Boeing fleet up to 34-35 aircraft by the end of the year.”

It is believed that some of the 737s to come will be wet leased.

Air Pegasus receives its first aircraft

27 Saturday Sep 2014

Posted by theflyingengineer in Air Pegasus

≈ 1 Comment

Tags

Air, aircraft, ATR, Bangalore, First, Kingfisher, Pegasus, Regional

Air_PegasusBangalore based Air Pegasus today received its first aircraft – an ATR 72-500, MSN 699 – from its lessor, after successfully completing its acceptance flight. Minor glitches in the aircraft’s auto flight system had delayed the ferry.

The aircraft, sporting an all white body (much like Vistara’s first Airbus A320), was ferried from its storage at Kuala Lumpur, and flown to Bangalore via Dhaka, where it had a tech stop. The aircraft departed Kuala Lumpur at around 0340Z/0910IST, and landed at Dhaka at 1020Z/1550IST, after flying for almost 6hrs40min. The aircraft departed almost an hour later at 1120Z/1650IST, and landed at Kempegowda International Airport (Bangalore) at 1530Z/2100IST, after 4hrs10minutes.

The first leg – Kuala Lumpur (WMKK), Malaysia to Dhaka (VGHS) was 1,550NM long, and the second leg- Dhaka(VGHA) to Bangalore (VOBL), India was 1,047NM long. Cruise was at flight level (FL) 240. Below is the routing.

Air_Pegasus_Ferry

The aircraft was piloted by two captains- Sipsas and Brilakis – the only two expats on contract with Air Pegasus, as of today. The aircraft ferried flew in with a registration M-ABFC, and was formerly operating for Kingfisher Airlines with the registration VT-KAA. The aircraft went into storage in the April of 2012, and has not operated since.

Air Pegasus becomes ATR’s newest operator in the country.

Air Pegaus has been on a hiring spree, and may receive its AOP by end October, and start operations by early November. For more about the airline, you may read the interview of Shyson Thomas – MD & CEO, here.

Air Pegasus gets real, for real

04 Monday Aug 2014

Posted by theflyingengineer in Air Pegasus, Analysis

≈ 1 Comment

Tags

2014, 500, 72, Air, AOP, ATR, Bangalore, India, NOC, Pegasus, September

ATR72500Since 2011, Air Pegasus has been in the news. The coverage has damaged the airline’s reputation- the managing director talked of starting operations twice, and both timelines were missed with not a single aircraft in India that was to operate under the Pegasus brand.

The airline was granted its NOC late 2011, and since then renewed twice. Most, including the DGCA, haven’t taken Air Pegasus seriously. They’d written it off as another airline that will not take to the skies.

But all that has changed. The MD and CEO of the airline, Mr. Shyson Thomas, firmly believes its his last renewal of the NOC, for he is confident of getting his AOP in September. This time around though, it’s for real.

The airline will today (Monday, 4th August) sign on the dotted line a letter of intent with a lessor, who will supply the Bangalore based Air Pegasus Private Limited two eight-and-a-half year old ATR 72-500 aircraft. The airline has two expat pilots on its rolls, one of whom landed in Bangalore in the wee hours of Saturday morning from Athens, Greece, to attend an Aviation Security (AV-SEC) training. There are six Indian captains, and eleven first officers ready to fly the first two aircraft, and twenty all-female cabin crew ready to man it.

For the first time in the history of the yet-to-become airline, lessors have reportedly been sending the airline emails, rather than the other way around. There seems to be confidence from overseas, from the likes of people who have burnt their fingers leasing aircraft to Paramount and Kingfisher. It is too early to see pictures of an ATR in the airline’s paint scheme, but once the signatures are done, two ex-Kingfisher/Deccan aircraft will be ready to start another chapter in the history of Indian aviation: an all ATR, pure-regional airline based out of Bangalore, to cater specifically to the south- a region attractive for it includes three Tier I cities and many promising, and economically important Tier II cities.

Shyson Thomas speaks exclusively to The Flying Engineer, in his most detailed interview till date. With 102 questions, and answers, learn about the airline, and the aircraft-from his viewpoint, and about the man at the controls in this Interlysis with Shyson Thomas – Air Pegasus, Unplugged. CLICK HERE to dive into the depths of the airline.

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