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Subject: Performance of Domestic Airlines for the Year 2016 Subject: Performance of domestic airlines for the year 2016. Traffic data submitted by various domestic airlines has been analysed for the month of July 2016. Following are the salient features: Passenger Growth Passengers carried by domestic airlines during Jan-Jul 2016 were 560.87 lakhs as against 455.95 lakhs during the corresponding period of previous year thereby registering a growth of 23.01% (Ref Table 1). 600.00 560.87 Growth: YoY = + 23.01 % MoM = + 25.82% 500.00 455.95 400.00 300.00 2015 2016 200.00 Pax Carried (inLakhs) Pax 85.08 100.00 67.62 0.00 YoY MoM Passenger Load Factor The passenger load factors of various scheduled domestic airlines in July 2016 are as follows (Ref Table 2): Jul-16 Jun-16 93.0 92.0 90.3 100.0 90.2 85.7 84.6 84.0 83.8 83.6 82.2 82.0 81.5 81.0 80.9 80.8 80.3 79.4 79.1 79.0 77.9 80.0 75.2 75.2 60.0 40.0 Pax Load (%) Factor Load Pax 20.0 0.0 Air India Jet JetLite Spicejet Go Air IndiGo Air Costa Air Asia Vistara Air Trujet Airways Pegasus 1 The passenger load factor in the month of July 2016 has almost remained constant compared to previous month primarily due to the end of tourist season. Cancellations The overall cancellation rate of scheduled domestic airlines for the month of July 2016 has been 0.70%. Airline-wise details of cancellations are as follows: Air Pegasus 29.67 Trujet 17.38 JetLite 0.93 Air India (Dom) 0.88 Air Asia 0.65 IndiGo 0.40 Spicejet 0.28 Vistara 0.20 Jet Airways 0.08 Go Air 0.02 Air Costa 0.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Cancellation Rate (%) Various reasons of cancellations are indicated below: Conse/Misc 34.1% Technical 36.6% Commercial Operational 2.0% 19.6% Weather 7.7% 2 Passenger Complaints during the month During July 2016, a total of 948 passenger related complaints had been received by the scheduled domestic airlines. The number of complaints per 10,000 passengers carried for the month of July 2016 has been 1.1. The airline-wise details are as follows: Air Pegasus 97.1 Air India (Dom) 2.3 Trujet 1.4 Jet Airways + JetLite 1.3 Go Air 1.2 Spicejet 0.9 Air Costa 0.8 Air Asia 0.7 IndiGo 0.3 Vistara 0.1 0.0 20.0 40.0 60.0 80.0 100.0 120.0 No. of Complaints/10,000 Pax Various reasons of passenger complaints are indicated below: Catering Others Fare 0.3% 7.4% 0.8% Refund Staff Behaviour 6.4% 5.5% Disability 0.4% Flight Problem Customer 34.2% Service 27.4% Baggage 17.5% 3 The reason for complaint as percentage compared to the previous month is as follows: 40.0 34.2 35.0 30.3 29.4 27.4 30.0 27.2 24.5 25.0 19.9 19.7 20.0 17.5 15.0 10.5 9.6 7.7 7.5 10.0 7.4 6.4 6.0 5.5 4.5 5.0 1.2 0.9 0.8 0.4 0.4 0.3 0.3 0.3 0.1 0.0 Fare Refund Flight Baggage Customer Disability Staff Catering Others Problem Service Behaviour May-16 Jun-16 Jul-16 Airline-wise status of redressal of complaints is given at Table – 4. Compliance of Route Dispersal Guidelines During the month of July 2016, all the scheduled domestic airlines complied with the mandatory capacity deployment requirements contained in the Route Dispersal Guidelines. Airline-wise details are given in the following Table: ASKM Deployment (%) of Category I Airline Cat III Cat IIA Cat II Air India + Alliance Air 111.9 1.70 21.8 Jet Airways + JetLite 35.1 4.35 57.3 Spicejet 99.6 1.22 26.9 Go Air 161.6 1.36 74.7 IndiGo 134.5 1.16 23.3 Vistara 61.7 1.71 23.3 Air Asia 308.4 5.48 35.8 Minimum Capacity Requirement in accordance with RDG (As % of Capacity Deployed in Category I) Category II - 10% Category IIA - 1% Category III - 50% 4 On-Time Performance (Scheduled Domestic Airlines) On-Time Performance (OTP) of scheduled domestic airlines has been computed for four metro airports viz. Bangalore, Delhi, Hyderabad and Mumbai. Airline-wise OTP at four metro airports for the month of July 2016 is as follows: OTP at Four Metro Airports Vistara 80.3 Spicejet 79.2 IndiGo 76.8 Jet Airways+JetLite 73.2 Air India (Dom) 71.1 Go Air* 67.5 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) *Note - Operations of Go Air only at BOM, BLR, DEL. Airport-wise On-Time Performance of scheduled domestic airlines complying with Route Dispersal Guidelines is as follows: Air India (Domestic) BLR 82.8 HYD 79.4 DEL 76.2 BOM 56.7 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) 5 Jet Airways + JetLite BLR 86.3 DEL 80.1 HYD 80.0 BOM 60.6 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) Spicejet HYD 84.6 DEL 82.7 BLR 82.6 BOM 63.0 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) 6 Go Air HYD DEL 84.5 BLR 77.4 BOM 47.5 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) IndiGo DEL 84.2 HYD 83.4 BLR 83.0 BOM 55.7 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) 7 Vistara HYD 94.8 BLR 94.0 DEL 84.6 BOM 60.9 0.0 20.0 40.0 60.0 80.0 100.0 OTP (%) Reasons for delay have been analysed, which are presented below. It has been found that majority of delays have been attributed to ‘Reactionary’. Airport 3% Wx 3% ATC 17% Misc 0% Pax 2% Ramp 1% Reactionary 66% Tech 4% Ops 4% 8 in the highestfarebucket on select sectors is 20 asfollows: EarnedRevenue & Seats Sold in Highest Fare Bucket The revenue earned and the number of seats sold by scheduled private airlines 4.0% 5.0% 6.0% 7.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 1.0% 2.0% 3.0% 1.27% 0.37% 1.91% 0.7% 0.75% 0.21% 0.78% 0.3% 1.01% 0.36% 1.34% % Revenueof Earned in Highest fare bucket 0.4% 0.70% 0.27% 0.85% 0.3% % Seatsof in Sold Highest fare bucket 0.80% 0.30% 1.26% 0.5% 2.73% 0.87% 2.76% 0.9% 1.14% 0.39% 2.63% 0.9% Jet Airways 0.61% 0.24% Jun Jun-16 1.69% 0.5% - 0.58% 16 0.18% 1.16% 0.4% 0.66% 0.23% Jul Jul-16 0.85% 0.3% - 0.12% 16 0.08% 1.14% 0.3% 1.92% 0.20% 1.15% 0.3% 2.07% 0.85% 1.97% 0.6% 1.46% 0.47% 0.97% 0.3% 2.28% 0.73% 3.13% 0.9% 6.18% 1.92% 3.95% 1.2% 0.64% 0.08% 3.45% 0.70% 2.51% 0.4% 0.98% 0.28% 2.58% 0.8% 9 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 0.07% 0.01% 0.48% 0.06% 0.01% 0.00% 0.01% 0.00% 0.01% 0.00% 0.01% % Revenueof Earned in Highest fare bucket 0.00% 0.01% 0.00% % Seatsof in Sold Highest fare bucket 0.00% 0.00% 0.10% 0.01% 0.00% 0.00% 0.01% 0.00% 0.01% 0.00% 0.03% 0.01% Jun-16 Jun 0.28% 0.04% Indigo - 16 0.11% 0.02% 0.00% 0.00% 0.01% 0.00% Jul-16 Jul 0.02% 0.00% - 16 0.01% 0.00% 0.00% 0.00% 0.03% 0.00% 0.00% 0.00% 2.76% 0.35% 0.00% 0.00% 0.00% 0.00% 0.02% 0.01% 0.02% 0.00% 0.00% 0.00% 0.01% 0.00% 0.01% 0.00% 0.00% 0.00% 0.04% 0.01% 0.12% 0.05% 0.78% 0.12% 10 2.0% 3.0% 4.0% 5.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 1.0% 0.11% 0.04% 0.11% 0.04% 0.00% 0.00% 0.00% 0.00% % % Revenueof Earned in Highest fare bucket 0.68% 0.21% % % Seatsof in Sold Highest fare bucket 0.68% 0.21% 0.00% 0.00% 0.00% 0.00% 0.17% 0.09% 0.17% 0.09% Jun-16 Jun-16 0.15% 0.04% Go Air 0.15% 0.04% 0.20% 0.03% Jul-16 Jul-16 0.20% 0.03% 0.00% 0.00% 0.00% 0.00% 0.38% 0.09% 0.38% 0.09% 0.51% 0.17% 0.51% 0.17% 0.39% 0.15% 0.39% 0.15% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 11 2.0% 3.0% 4.0% 5.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% 1.0% 0.00% 0.00% 1.00% 0.15% 0.20% 0.05% 0.00% 0.00% 0.01% 0.00% 0.04% % Revenueof Earned in Highest fare bucket 0.01% 0.20% 0.03% % Seatsof in Sold Highest fare bucket 0.10% 0.02% 0.60% 0.12% 0.10% 0.02% 0.70% 0.12% 1.10% 0.15% 0.90% 0.17% Jun-16 Jun 3.50% 0.69% Spicejet - 16 0.10% 0.03% 0.50% 0.08% 0.00% 0.01% Jul-16 Jul 0.90% 0.20% - 16 0.50% 0.14% 0.10% 0.01% 0.10% 0.04% 0.10% 0.04% 0.20% 0.04% 1.70% 0.34% 1.20% 0.50% 1.60% 0.27% 1.00% 0.28% 1.80% 0.28% 0.20% 0.12% 1.70% 0.33% 1.50% 0.78% 4.90% 0.79% 0.60% 0.11% 0.10% 0.03% 12 Vistara % of Seats Sold in Highest fare bucket 5.0% 4.0% 3.0% 2.0% 1.0% 0.43% 0.35% 0.21% 0.19% 0.12% 0.11% 0.06% 0.06% 0.06% 0.02% 0.02% 0.02% 0.02% 0.01% 0.0% BLR-BOM BLR-DEL BOM-DEL DEL-CCU DEL-GAU DEL-HYD DEL-SXR Jun-16 Jul-16 % of Revenue Earned in Highest fare bucket 5.0% 4.0% 3.0% 2.0% 1.5% 1.3% 1.0% 1.0% 0.7% 0.5% 0.2% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% BLR-BOM BLR-DEL BOM-DEL DEL-CCU DEL-GAU DEL-HYD DEL-SXR Jun-16 Jul-16 13 Air Asia % of Seats Sold in Highest fare bucket 5.0% 4.0% 3.0% 2.0% 1.34% 1.05% 1.0% 0.25% 0.21% 0.0% BLR-DEL DEL-GAU Jun-16 Jul-16 % of Revenue Earned in Highest fare bucket 5.0% 4.0% 3.0% 2.0% 1.54% 1.40% 1.0% 0.21% 0.12% 0.0% BLR-DEL DEL-GAU Jun-16 Jul-16 14 Compliance of CAR Section 3, Series M, Part IV In accordance with the Civil Aviation Requirement Section 3, Series M, Part IV, airline are required to submit data on number of cases of denied boarding, cancellations and delays along with the status on a monthly basis.
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    1 Disclaimer Information contained in our presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without prior notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, certain statements contains our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in aviation sector including those factors which may affect our cost advantage, wage fluctuations, our ability to attract and retain highly skilled professionals, time and cost overruns on various parameters, our ability to manage international operations, reduced demand for air travel, liability for damages, withdrawal or expiration of governmental fiscal incentives, political instability, legal restrictions on raising capital or general economic conditions affecting our industry. The words "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to us, are intended to identify certain of such forward-looking statements. The Company may, from time to time, make additional written and oral forward-looking statements, including statements contained in our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.
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