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Tag Archives: profit
Posted by theflyingengineer in Airline, IndiGo
Analysis, Ancillary, Cargo, CASK, December, Expenses, Factor, Indigo, Load, Operating, profit, Q3, Quarter, RASK, Revenues, Seat
IndiGo performed well in Q3'16, but was it the airline's best quarter in the fiscal in terms of performance? We dive into the numbers, comparing Q3'16 with three other quarters, while forecasting the airline's performance in Q4'16 – the current quarter.
Click here to access the analysis.
AirAsia India reports a net loss of INR 65.2 crore in Q2'16, stellar cost improvement but disappointing revenue performance. Total losses accumulate to around INR 200 crore
Posted by theflyingengineer in AirAsia India, Airline
16, Air, AirAsia, Analysis, Asia, Break, data, Even, forecast, FY, India, loss, profit, Q2
Net loss INR 65.2 crore.
Excellent work in reducing unit costs in Q2'16, exceeded expectations.
Disappointing revenue performance.
Excellent ancillary revenues.
Accumulated losses around 200 crore, losses since start of operations around INR 150 crore.
Financial & certain performance data reported by AirAsia India is inconsistent, inaccurate, and unreliable.
Data Discrepancy
Before we begin the analysis of AirAsia India's performance, it must be noted that the quarter reports of AirAsia are unreliable, on at least four counts, as observed:
The quarter report for Q1'16 ("SECOND QUARTER REPORT ENDED 30 JUNE 2015") states that in Q1'15, AirAsia India reported a net loss of RM 0.4 Million. However, the quarter report for Q1'15 ("SECOND QUARTER REPORT ENDED 30 JUNE 2014") states that AirAsia India reported a net loss of RM 13.8 Million. This translates to a difference of RM 13.4 Million / INR 25.9 crore.
The quarter report for Q4'15 ("FIRST QUARTER REPORT ENDED 31 MARCH 2015") states that in Q4'14, AirAsia India reported a net loss of RM 12.4 Million, which, based on the RM-INR conversion rate prevalent then, converts to INR 22.7 crore. However, the P&L statement in the same Q4'15 report states that AirAsia India had a net loss of only INR 8 crore.
The quarter report for both Q2'16 ("THIRD QUARTER REPORT ENDED 30 JUNE 2015") and Q2'15 ("THIRD QUARTER REPORT ENDED 30 JUNE 2014") states that in Q2'15, AirAsia India recorded a net loss of RM 15.7 Million, which converts to INR 29 crore based on the RM-INR conversion rate prevalent then. However, in the Q2'16 report, AirAsia India is stated as having incurred a net loss of INR 52.9 crore.
The flown capacity (ASK) reported by AirAsia India in its quarterly reports is 12%, 5% and 3% higher than what the airline has reported to the DGCA in Q2'16, Q1'16, and Q415. However, in teh two sources of data, the number of flights by the airline match perfectly, and the number of passengers flown are reasonably close.
As a result of (3), we will refrain from comparing Q2'16 data with Q2'15 data, but will only compare Q2'16 data with Q1'16 and Q4'15 data.
As a result of (4), we will refrain from using the AirAsia India flown capacity as reported in the quarterly reports, as this leads to very misleading performance numbers. We stick to the DGCA data.
We had already mentioned the first three points, but the discovery of issue (4) made us withdraw our earlier analysis and revise the numbers. This is the revised analysis.
Accumulated Losses
Due to the ambiguity resulting from points (1), (2) and (3) above, the total losses accumulated by AirAsia India including Q2'16 is around INR 200 crore. Total losses since start of commercial operations (ignoring June 2014) stands at INR 150 crore as reported by AirAsia India.
Q2'16 Analysis
Q2'16 (July 01st – September 30th, 2015) was AirAsia India's first full quarter of 5 aircraft operations. In this period, the airline flew 416,182 passengers (excluding no shows: 401,905. No shows : 3%), which is a 38% rise compared to Q1'16, though the number of flights increased by 50%. This explains Q2'16's load factors of 76%, as against Q1'16's load factors of 83%. The load factors in Q2'16 were lower than the 79% witnessed in the other lean season – Q4'15. Load factors include no show passengers.
The airline operated 34 daily flights as of 30th September 2015, and flew its millionth passenger in the first half of August 2015.
Q2 is historically a lean season. Capacity in Q2'16 grew by 56% over Q1'16, despite flights increasing by only 50%. This is in line with the average stage length of each flight increasing to 1,208 km/flt from 1,146 km/flt. Low load factors, increase in average stage length, and the low pricing power in the lean season have together resulted in the average fare dropping to INR 2,684 in Q2'16 from INR 3,350 in Q1'16. In Q2'16, AirAsia India did not inaugurate any new routes, but added a frequency on the Bengaluru – Vizag sector, and hence, there was no significant effect of low yields due to new routes.
Ancillary revenues at the airline have picked up very well. From being just 8% of total revenue in Q4'15, to 10% in Q1'16, it touched 15% in Q2'16. This has been aided by the increase in cargo per flight, to an average of 1,205 kg per flight in Q2'16 compared to 1,074 kg/flt in Q1'16 and 971 kg/flt in Q4'15.
However, on a unit basis, the airline's revenue per available seat kilometre (RASK) suffered a 27% drop from Q1'16 figures, to settle at INR 2.22/seat-km, due to the factors mentioned in the preceding paragraphs. The unit revenues are 22% lower than the Q4'15 lean season.
AirAsia India's cost performance is very good, and has touched record low values in Q2'16.
Unit aircraft fuel expenses fell by 13% in Q2'16 compared to Q1'16, despite fuel prices falling by only 9%. Higher average stage length of 5% can only contribute little to improved fuel consumption. However, tankering and uplifting fuel from stations with low sales tax on fuel may explain a part of the lower fuel expenses. Sales tax at Vishakhapatnam is just 1%, Goa 12.5%, Guwahati 22%, Imphal 20%, and Delhi 20%. Delhi, Guwahati, Imphal and Vishakhapatnam operations, and increased operations to Goa in Q2'16 may have significantly contributed to the drop in fuel costs.
Inexplicably, the staff costs have dropped in Q2'16 compared to Q1'16, from INR 31 crore to INR 29 crore. While there is no obvious explanation for such a drop, it has resulted in the unit staff costs to drop by 41% in Q2'16.
Unit maintenance costs have increased by 2% in Q2'16.
Due to longer flights, capacity has increased by 56% but flights by only 50%, in Q2'16 compared to Q1'16 resulting in the 7% drop in unit user charges and related expenses, which are largely a per-flight expense.
Unit lease expenses have dropped significantly by 29% in Q2'16, attributable to increased aircraft utilisation, higher capacity and no aircraft having to remain on ground in Q2'16. Average lease rental per aircraft per month is INR 2 crore.
Other operating expenses, most of which are fixed, have been diluted by the higher capacity, dropping by 25% in Q2'16.
Other Income, which is treated as part of operations by AirAsia India, increased by 10%, positively impacting the bottom line.
The cumulative effect of increasing frequency, network changes, and increased aircraft utilisation, amongst others, has reduced unit total operational costs at AirAsia India by 21% (including other income which can also be a negative quantity as in Q4'15). This is a brilliant performance, though the drop in staff costs is yet to be clearly identified. One explanation is perhaps the reduction in training expenses due to stagnation of fleet growth, and perhaps the voluntary exit of certain crew.
Break Even Figures
In Q2'16, AirAsia India realised a per-passenger cost of INR 4,621, which is 10% lower than the INR 5,166 cost per passenger in Q1'16, but 15% higher than the INR 4,009 cost per passenger in Q4'15.
In Q1'16, AirAsia India incurred a loss of INR 1,469 per passenger. At the same unit passenger revenue of INR 3,154, AirAsia India would have needed a break-even load factor of 112%.
AirAsia India lost INR 1.04 per seat flown every kilometer, which is 5% lower than INR 1.09/seat-km in Q1'16, but 30% higher than the unit loss incurred in Q4'15.
Cost Structure
AirAsia India's cost structure is depicted in the pie chart. Fuel constitutes 36% of the airline's expenses.
Cancellations and OTP
Only 6 flights were cancelled by AirAsia India, in Q2'16. The airline operated 3,032 flights, with an average on time performance (OTP) of 87%.
Q3'16 forecast
In Q3'16, AirAsia India inducted its 6th aircraft into operations, in the second half of November 2015. Daily flights have gone upto 40, with increase in frequencies and the inauguration of a new route, Delhi – Vishakhapatnam.
Our forecast for AirAsia India's performance in Q3'16:
Quarter's Load factors to increase to around 85%.
Capacity to increase by 12% and passengers carried (including no shows) to touch around 520,000.
Average unit passenger revenue may rise by around 20%+ compared to Q2'16.
Certain unit costs to slightly increase due to addition of 6th aircraft and sending one aircraft for half a month for scheduled heavy maintenance.
Certain unit costs to very slightly increase due to weather related delays and diversions.
Ancillary Revenue percentage to drop in light of higher average fare.
For break even, unit passenger revenue must rise by around 45% (compared to Q2'16)
Very slim chance of an operational break-even. More likely in Q1'17 (April – June 2016).
SpiceJet: Net Profits, Operational losses in Q2 FY2015-16
Posted by theflyingengineer in SpiceJet
16, 2015-16, FY, loss, profit, Q2, Spicejet
SpiceJet posted its third straight quarter of net profits, with the announcement of its Q2 results. The airline posted a net profit of INR 23.77 crore, but realised an operational loss of INR 27.91 crore. This loss includes the depreciation and amortisation expense of INR 30.36 crore. The airline has immensely benefitted from lower unit fuel costs which have dropped by 35% to INR 1.17/seat-km, compared to the same quarter last year. Higher load factors at the airline have driven up unit revenues by 7% over the same quarter last year.
Below is a detailed comparison of unit revenues between Q2'16 and Q2'15:
In Q2'15, the airline had an average sale (including ancillary revenue, which includes non-passenger revenue such as cargo) of INR 4,019 per passenger. In Q2'16, the airline had an average net sake of INR 3,750 per passenger. Although the airline was able to extract lesser per passenger, it flew more passengers, with the net effect being positive on the revenues.
Cargo performance has however been disappointing, with the airline flying on average 140kg lesser, per flight, in Q2'16 compared to Q2'15. This has resulted in a 7% drop in cargo carried per ASK. This however is partly explained by the shrinkage of the mainline jet fleet at SpiceJet.
Higher passengers, lower per-passenger sales, and lower cargo have resulted in a net 9% higher unit sales.
On the operating expense front, SpiceJet performed worse (on a unit basis) than the same quarter last year. The graph clearly shows that all unit costs have gone up, except for fuel, lease rentals, and aircraft redelivery expenses.
Average fuel prices in Q2'16 was 34% lower than in Q2'15. This has resulted in Spicejet's unit fuelc osts falling by 35% (The 1% difference is due to the dissimilar fleet mix of Jets and Turboprops). Unit lease rentals have gone down due to a smaller fleet of mainline jets, and a higher utilisation of aircraft. In Q2'15, the airline re-delivered a large number of dry-leased Boeing 737s, which cost the airline much. In Q2'16, there were no re-deliveries of dry-leased aircraft, which has led to lower redelivery expenses.
All other unit costs are much higher, most notably due to the smaller scale of operations which has concentrated certain fixed costs. In Q2'16, the airline deployed 34% lesser capacity than in Q2'15. Yet, all these unit cost increases were offset by the drop in fuel prices.
In Q2'15, SpiceJet lost 69 paisa for every seat flown every kilometre. In Q2'16, SpiceJet lost 10 paisa for every seat flown every kilometre.
However, the unit EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) in Q2'16 was INR 0.01/seat-km, which was an earning of INR 1 paisa for every seat flown every kilometre.
What pushed the quarter to profits?
"Other Income" of INR 72.7 crore, which included 65.4 crore "consequent to finalisation / revision of terms of settlement of earlier lease terminations with an aircraft lessor for three aircraft" tipped the airline into net profits.
Comparison to Q1'16
Q2'15 and Q2'16 are a year apart. In that one year gap, the airline went througha near-death experience and changed hands, making the usefulness of such a comparison limited. A comparison with Q1'16 allows for a better understanding of how things are shaping up at SpiceJet.
Average load factors in Q2'16 were higher than in Q1'16, despite Q1 historically being a season of peak travel demand, while Q2 is historically a lean season.
In Q2'16, compared to Q1'16, SpiceJet flew 5% more flights, carried 5% more passengers, yet carried 10% more cargo, resulting in 5% more cargo per flight. The airline carried on the same number of average passengers per flight : 121, in both quarters. However, the airline operated flight lengths that were 2% lower than in Q1.
Unit revenues were understandably lower in Q2 due to lower pricing power. Net sales per passenger dropped from INR 4,215 to INR 3,750, which resulted in a 8% drop in unit revenues.
On the cost front, fuel prices on average in Q2 had fallen by 9%, but resulted in just 8% unit fuel savings at SpiceJet due to the shorter flights. Lease rentals have perhaps gone up due to the wet leased A319 aircraft contributing to smaller capacity per flight, and the mainline fleet growing in size with no significant change in capacity. This is due to some aircraft going for scheduled maintenance in this period, which has also driven up maintenance costs. The US dollar being higher by 3% in Q2 over Q1 may have also added to the increased expense. However, airport charges have remained almost unchanged. Q2's higher capacity of 2% brought down employee unit costs by 2%.
Other operating costs and other expenses going up by 27% and 9% respectively cannot be easily explained. Other operating costs were expected to remain the same, while other expenses were expected to fall by around 2%. The increase may be partly explained by increased selling costs (higher agent commissions – which may also explain the higher load factors), increased marketing spend, and training, among others. The airline has done something that has attracted higher expenses in Q2.
Was the first quarter really 'Hot & Spicy' or 'Red' for SpiceJet?
2015, 2016, Analysis, Costs, loss, performance, profit, Q1, Quarter, revenue, Spicejet
In a previous piece, The Flying Engineer had estimated the operational profit of SpiceJet to lie in the INR "around or less than between INR 80 – 110 crore" range. The airline realised an operational profit of INR 70.7 crore. With the results declared exactly a week ago, we shall analyse the actual performance of the airline in Q1 FY 2015-16 (Q1'16).
We first start with costs, as an airline usually has a better grip on costs than revenues. Capacity is measured in seat-kilometres (Available Seat Kilometre – ASK), and costs and revenues, from operations, are referenced to unit capacity. We compare Q1'16 with the same quarter in the last financial year – Q1'15.
Average fuel price in Q1'16 was 28.4% lower than that in Q1'15. The fleet had also shrunk from a Bombardier Q400 : Boeing 737 ratio of around 1:2 to 1:1.3. This impacted fuel costs positively. Due to this ratio, a larger portion of the fuel burn was realised by the Q400s, which enjoy a flat 4% sales tax on fuel, as against as much as 28% sales tax in some airports, applicable to the Boeings. With operations being dominated more by the Q400s, which fly routes much shorter than the Boeings (upto 85% shorter routes on the domestic network), the average stage length had reduced, leading to an increase in the number of departures per unit capacity. More departures and hence landings per unit capacity translates to a higher fuel burn, but this was offset by the Q400's lower fuel price and perhaps better fuel saving techniques employed at SpiceJet. Unit fuel costs fell by 30.3% despite fuel prices falling only 28.4%.
The changed turboprop : mainline jet fleet ratio also affected lease costs. The Q400s are owned, and hence no lease is paid for such airplanes. As a result, the lease costs of the Boeings (including the wet leased Boeings and Airbuses) were diluted over a capacity that was generated in a larger part by the Q400s. Unit lease rental costs fell by 12%.
Poor on time performance and increased cycles per unit capacity may have led to increased airport charges, though the Q400s do enjoy landing and navigation charges benefits. It is also possible that there may have been an increase in landing, navigation, other airport charges, in flight & other passenger amenities by authorities. Unit airport charges rose 14.8%.
Aircraft maintenance costs were dominated in larger part by the Q400s, which were also utilised higher. The US Dollar strengthened 6.1% against the rupee, which would have led to increased costs. Maintenance costs for each Boeing are expected to have remained largely unchanged. Unit maintenance costs rose by 14.9%.
The quarter witnessed no significant aircraft re-delivery activity, which dropped unit re-delivery expenses by 90.4%.
Other operating costs rose by 45.7% per unit.
Unit employee expenses were impacted by both having a smaller capacity, and the hike in salaries to crew to stop pilots from leaving the airline. This resulted in unit employee expenses rising by 25.5%.
Depreciation and Amortisation expenses are largely dominated by the Q400s. With lower capacity, this expense was rose on a unit basis. Unit Depreciation and Amortisation costs rose 36.2%.
Other expenses, which include a wide variety of costs including hotel and accommodation expenses for crew, dropped by 16.3% on a unit basis.
Overall, unit costs dropped by 12.8%, aided largely by the absence of significant re-delivery expenses and the steep fall in fuel prices. The airline has scope to further streamline costs in at least three areas, with the other areas being out of the airline's control. When streamlined, either through practices or scale, unit total operational expenses may further fall by 4.3%. With the present scale of operations and in the present environment, this translates to INR 45 crore.
The cost structure at SpiceJet, Q1'16 v/s Q1'15 is shown below:
Operating Revenues
SpiceJet's revenues were adversely impacted by lower airline capacity, poor on-time performance, and increased competition leading to lower prices. The first two factors may have made the airline lost high paying, time-sensitive and last minute (D0-D7) passengers. In the 13 month period June'14 to June'15, SpiceJet had the lowest OTP amongst private airlines for 9 months. Further, the cargo carried by the airline on a unit basis dropped by 4.9%, perhaps on account of Q400s dominating a larger part of the capacity. Unit sales fell by 1.1%.
Other operating income rose by 56%.
In total, operating revenues fell by 1% on a unit basis.
(If the Q1'15 P&L statement was not re-classified, unit revenue would have fallen by 2% during the comparison)
Per passenger Revenues
In Q1'15, the sales per passenger (includes ancillary revenue) was a good INR 5,006 per passenger (at re-classified P&L figures). In Q1'16, the the sales was INR 4,215 per passenger. This represents a drop of 15.8% in the sales per passenger.
Usually, a drop in the sales per passenger should not be a concern if the airline flies more passengers. However, a drop in net sales per passenger per ASK (the first number in the unit revenues and cost graph above) is a cause for worry. The drop was INR 0.05/seat-km). This shows that sales per passenger has dropped to a level that overall leads to lesser revenue despite very high load factors.
To put things in perspective, the below graph shows the per passenger sales required to achieve the same net sales from operations, with varying load factors. For example, flying with load factors of 55% at INR 6,939 sales per passenger will generate the same sales as flying 90% load factor at INR 4,240.
In Q1'16, SpiceJet had load factors of 90.5% (Domestic + International). In Q1'15, SpiceJet had load factors of 79% (Domestic + International). If SpiceJet was to have realised the same revenue in Q1'16 with only 79% load factors,the airline would have needed a per passenger sales of INR 4,833. However, the airline in Q1'15 (same quarter, last year) had a per passenger sale of INR 5,006.
This means that had SpiceJet flown with Q1'15 load factors and per-passenger sales, would have realised an increase in sales of 3.6% or INR 39.53 crore in Q1'16. This shows that increase in load factors does not always imply an increase in either Revenue per seat kilometer (RASK) or total revenues.
To have realised this additional INR 39.53 crore, SpiceJet should have generated sales of INR 4,366 per passenger (+INR 151) in Q1'16 at 90.5% load factors.
Of course, unit revenues (RASK) is the most reliable method of gauging performance. But, in the case where RASK falls, the argument above is used to show that the load factor game must be played carefully.
The above argument does not consider the fact that per passenger sales and/or RASK (RASK and per-passenger sales are not directly comparable) can be safely reduced when per passenger costs and/or CASK also reduce. Ultimately, profit is driven by the difference of revenues and costs, and not determined by either revenues or costs alone.
Unit operating profit rose by 201%, despite a fall in unit revenues, largely due to a fall in costs. Fuel today accounts for 35% of the SpiceJet's operating expenses. Last year, for the same quarter, fuel accounted for 43% of SpiceJet's operating expenses. If aircraft fuel prices were at the 2014 April-June levels, the airline would have flown into the red.
Had the airline maintained the unit revenues (RASK) of Q1'15, the airline would have generated an additional INR 11.4 crore over the Q1'16 operating revenue of INR 1,106 crore.
Other income at the airline was INR 26.7 crore, against INR 28.9 crore in Q1'15 (re-classified).
Finance Costs
Finance Costs in the airline was INR 25.5 crore, against INR 48.7 crore in Q1'15
In Q1'16, other income (not from operations) and finance costs are almost equal, cancelling out each other. This makes profit in Q1'16 solely due to operating profits, unlike the Q4'15 quarter (ending March 31st 2015) where the airline stepped into profits due to the insurance payoff. Operating loss in Q4'15 was INR 102 crore. Operating loss before depreciation and amortisation expenses was INR 72 crore.
Hot and Spicy or Red?
The Hot and Spicy part is the reduction in finance costs. The Red part in in the operational costs and revenues. Overall, the airline has the potential to perform much better, and hence we'd consider the performance Red, despite the profit. The turnaround has started, but the airline is not yet 'there'. Costs have to lean and revenues must grow. Good on time performance (OTP) is key. As seen above, sale per passenger and RASK have taken a hit, perhaps largely due to the poor OTP of SpiceJet, and in part due to competition.
Comparison to Estimate
In the estimate of SpiceJet's Q1'16 performance (click here to read), our estimate of total operating expenses was lesser by 0.26%, while our estimate of revenue from operations was higher by 1.67%. Changes in accounting practices (re-classification, as declared in the Q1'16 financial results) have also impacted the estimate errors. The lower or our estimate of the airline's operating profit was higher than the actual by 13%. Below is the comparison:
SpiceJet: Out of excuses
Financial, FY16, loss, profit, Q1, Quarter, Spicejet
SpiceJet had a great opportunity to report profits in Q3'15 (the quarter ending December 31st, 2014). It didn't. Before the quarter could conclude, the airline had stalled.
Then there was a stall-recovery. The Marans got out and Ajay Singh got in. The very next quarter, Q4'15, saw the airline posting a net profit thanks to an insurance claim from a Q400 that was written off at Hubli.
Legacy issues, one time costs, redelivery expenses, economic slowdown, high dollar rates, and high fuel prices were some of the reasons given in the past. This time around, the situation is much better. Ajay is doing a good job renegotiating contracts in manners that benefit the airline.
For the quarter ending June 30th 2015, we estimate the financial performance of the airline. Profit? Loss? Click here to read all about it.
SpiceJet: Another New Version
Growth, operational, profit, Q4, Spicejet
10 year old SpiceJet's performance in Q4 FY'15 has been promising. SpiceJet as an airline has been promising in certain quarters, profitable in some others, and disappointing in many. One problem that has plagued the airline is impatience. The constant change of top management results in one, big problem: insufficient time for any strategy to bear fruits, no matter how brilliant.
That is because any strategy has a trial and error phase – essential to coarse and fine tune the strategy to the environment – both internal and external to the airline.
In Q4'FY15, SpiceJet changed hands, yet again. The Marans are out, and Ajay Singh is back in. In the quarter, the aircraft lost a Q400 to an accident at Hubli. Active fleet size was down to 17 Boeing 737s and 13 Q400s – a total of 30 airplanes, down 50% from the days of 57.
Things got so complicated at the airline that the one element required to run an airline was missing – Simplicity.
Operational Numbers
The circumstances surrounding the airline, and the situation it was in Q4'FY15 was very different from what was in Q4'FY14. Yet, comparison is worthy to put things in perspective.
Q4'FY15 saw SpiceJet as a shrunk airline – lesser routes, smaller fleet, lesser departures. The number of flights were lower by 43%, to an average 179 a day from 312 in Q4'FY14. Load factor difference was a positive by 13% – which meant the airline carried more passengers per flight, on average. This had two effects – the number of passengers carried was down only 37% despite 43% lesser flights. This also affected the cargo uplift, which was down 8% due to lesser free cargo space available. The average flight length was 752 km – down 9% from 826km. Capacity was down 52%.
SpiceJet is yet to stabilise its operations. An airline has two aims: safe and convenient flights for passengers, and value for shareholders. Part of convenience are frequency and on time performance, with the latter more important.
SpiceJet's on time performance isn't one of the best, and that is something that the airline needs to, and perhaps is, working on. SpiceJet has had the highest number of cancellations among all airlines in the month of January and March, and the second highest among established airlines in the month fo February. Stabilisation of such operational parameters is key to SpiceJet becoming a preferred airline.
Down to the rupee
Unit revenues speak volumes about an airline's efficiency.
We look only into Income from operations (Net sales), and ignore all other incomes, as this is the real measure of the airline's core activity's performance.
Q4'15 had a revenue of INR 4.15/seat-km (or per ASK= RASK), which is 3% higher than what was realised last year. This shows that the increase in load factors had a positive impact on unit revenues, thanks to the strategies employed by the former CCO Kaneswaran Avili and the VP Revenue Management Fares Kilpady. This also reflects network rationalisation.
When an airline shrinks, costs get complicated. There are certain costs that are hard to shrink, such as employee costs, as layoffs are subject to an airline's culture. Employee costs per ASK shot up 63% to INR 0.57/seat-km. Further, staff salaries were upward revised after Q4'14.
Although the airline shrunk its fleet, it were the leased Boeing 737s that moved out, not the owned Q400s. Capacity dropped, but the depreciation and amortisation costs associated with the aircraft didn't. This resulted in the associated costs rising by 48% to INR 0.16/seat-km.
Airport charges went up by 18%, in part due to the reduced flight lengths, which means the airline had more take off and landings for the same capacity. This may have also negatively impacted aircraft maintenance. Spares pool policy may have also had an impact. If an aircraft went for a C-check in this period, costs may have been impacted too. Maintenance costs per ASK went up 3%.
Other operating costs went up 17% to INR 0.16/seat-km.
Other expenses, which includes administrative expenses went down by 5%.
Lease rentals per unit went down 18% to INR 0.61/seat-km, owing to higher utilisation of aircraft which diluted this fixed cost.
Aircraft fuel costs went down 31% to INR 1.52/seat-km largely due to the fall of ATF prices.
Fuel, Maintenance, Staff, Lease and amortisation (as Q400s are owned, and is the equivalent of lease costs) and other operating expenses form a chunk of the expenses, and these 5 together account for 92% of expenses. These costs together went down by 12% to INR 3.62/seat-km in Q4'15 against INR 4.13/seat-km in Q4'14.
Redelivery expenses are one-off expenses and went up 626% to INR 0.35/seat-km. Other expenses are arguably not part of the operating expense consideration set.
With this, the operational cost per available seat kilometre (which excludes one-off redelivery costs and administrative 'other expenses') is INR 3.98/seat-km, which is 10% lower than the INR 4.44/seat-km in Q4'14.
With an operational RASK of INR 4.15/seat-km, and an arguable operational CASK of INR 3.98/seat-km, the airline was arguably operationally profitable by INR 0.16/seat-km.
Core operating costs and revenues are stressed upon as this is a reflection of the performance and efficiency of an airline's core activity. However, an airline will need to be efficient throughout the structure. SpiceJet realised a loss of INR 102 Cr due to the total operating RASK and total operating CASK amounting to INR 4.15/seat-km and INR 4.71/seat-km, respectively.
Extraordinary Income and bottom line
Insurance companies paid INR 161 Cr for the Q400 that was written off after an accident at Hubli, Karnataka. SpiceJet received INR 61 Cr. This, along with other income of 91 Cr added INR 153 Cr to the books. Finance costs drained INR 28 Cr. Overall operating loss drained INR 102 Cr.
The airline realised a net profit of INR 22 Cr, and the insurance pay off was responsible for the tip over into the black.
Comparison with AirAsia India
While a comparison between a small start-up airline and a larger, older airline is fair to neither airline, a comparison will help show what's possible.
Unit costs (per seat-km) of staff is leaner at SpiceJet as it is a larger airline, however, this can fall further. SpiceJet cannot escape amortisation & depreciation costs as Q400s are owned, while AirAsia only leases airplanes. Fuel expenses per ASK are higher at SpiceJet due to the higher fuel burn per ASK of the Q400, the possibility of higher burns due to ATC congestion at metros, and higher load factors.
All of AirAsia's airplanes in Q4 were new, and almost fresh out of maintenance when delivered, needing hardly any maintenance. Such may not have been the case at SpiceJet, which could have taken up the maintenance cost up.
User charges are higher at SpiceJet as AirAsia India does enjoy certain benefits from Bangalore airport – the only airport it used to fly into in Q4. SpiceJet flew into all metros.
Aircraft operating lease expenses appear lower at SpiceJet as of the 30 aircraft in the fleet, only 17 were leased. Q400's lease costs do not figure in the lease expenses.
Other operating expenses are lower at SpiceJet due to a larger fleet diluting costs. However, 'other operating costs' for SpiceJet may not be the same as AirAsia India's.
Where SpiceJet can trim its cost are in the 'other expenses'. However, AirAsia India has lower administrative costs as many resources are shared with the AirAsia Group.
The cost structure (see pie charts) of both airlines show the cost structure for both airlines. Generally, a cost structure which has a larger share of fuel cost indicates a leaner structure.
A chance to renew
What the management did in FY 2014-2015 to SpiceJet has been impressive – revenue management and market stimulation has resulted in a positive impact on unit revenues even with higher load factors and promotional fares. Such practice, if continued, may benefit the airline in the current fiscal.
The airline scaled up its fleet in Q1'16 temporarily through the wet-lease of 3 Boeing 737s. Unverified information point to 2 additional Q400s joining the fleet, and an active evaluation of wet-leasing Airbus A320 aircraft. Whatever the aircraft type, and however questionable it may be, the airline is going to, and needs to increase its fleet size.
SpiceJet has another opportunity to keep the system lean as it regrows. Good contracts, scaling up and high asset utilisation will reduce fixed costs. Good market study, prudent and well researched network growth, leveraging the benefits of the Q400 to do what the market leader cannot, and differentiation of in-flight services can allow SpiceJet to realise good unit revenues even in the light of competition.
Revenues aren't much of a problem at SpiceJet, but can be bettered through better core service – frequency and on time performance. Costs are the biggest problem in the airline, and will need to be trimmed down significantly.
SpiceJet has what it takes to grow to an extent that allows it to compete non-head-on and healthily with the market leader. Focus on basics and differentiation are key.
AirAsia India reports Q4 FY'15 net loss of INR 19 Cr, trending towards a break even.
Posted by theflyingengineer in AirAsia India
Air, Asia, Cost, India, loss, profit, structure
AirAsia India's journey so far has been interesting. What was a pleasant surprise was the airline reporting its lowest ever net loss in an operating quarter – of INR 19 Cr. This, despite Q4 being a season of low travel demand, and in the same quarter having had numerous delays and cancellations. It was also the first full quarter of three aircraft operations.
AirAsia India claims to have an attractive cost structure. In this piece, we analyse their figures for Q4 FY'15.
Operating Figures
In the months of January, February and March 2015, AirAsia India flew 222,502 passengers. No show passengers were 15,055. These two total to 237,557 seats that were sold. No show accounted for 6% of all sold seats. Total seats flown were 300,240, and flown passenger load factor was 74% for the quarter, while seats sold load factor was 79%.
The airline carried a total of 1,620 tonnes of cargo on 1,668 flights, which averaged to 971 kg of cargo per flight – a very good number.
A total of 2,260 hours were flown in the quarter. With three aircraft, this averaged to a daily average aircraft utilisation of 8:22 hrs per aircraft per day. This low average utilisation reflects the cancellations and delays in the quarter due to crew shortage. While the airline was originally scheduled to fly 22 flights a day, the average flights per day in the three months were lower due to the same reason.
12,155 of the airline's passengers were affected by cancellations and delays of more than two hours in the quarter.
Market share stood at a constant 1% throughout the quarter.
AirAsia India realised an operating expense of INR 95.3Cr in the quarter.
37% of AirAsia India's costs are due to fuel. The next biggest is staff salaries which make up 25%. Lease comes next at 19%. These three together make up 80% of the airline's costs. In this period, the airline had three aircraft: VT-ATF/ATB/RED. All three are new enough to have no maintenance issues or checks, and hence maintenance is only 3%.
Average lease cost per aircraft is INR 2 Cr per month.
AirAsia India realised an operating revenue of INR 74.4Cr in the quarter. Of this, 92% was due to passenger ticket sales, while 8% was due to ancillary revenue.
Unit Figures
The average fare per passenger (excluding taxes and fees) for the quarter was at INR 2,884. Revenue per available seat kilometre (RASK) was at INR 2.75/seat-km, while Cost per available seat kilometre (CASK) was at INR 3.53/seat-km.
At the same load factor, average fares could have been increased by INR 878 per passenger to operationally break even.
At the same average fares, operational breakeven load factor stood at 103%.
Both figures above assume constant ancillary revenue. Ancillary revenue per flight was INR 35,320.
Average operating cost per block hour was INR 421,311 (US$ 6,600).
Average cost per kilometer flown was INR 635/km.
Positive Trend
AirAsia's losses are on a steady decrease. With five aircraft operating in Q1'16, better routes, and the strong travel demand, the airline may spring a surprise with its Q1 performance.
A sixth aircraft is expected to join the fleet in June. Q2'16 – a lean season- will be an interesting quarter to watch, with a mild possibility of a break even. The airline may either break even or post profits in Q3'16.
The airline added Imphal to its booking engine on 28th May 2015.
AirAsia India posts a loss of INR 21 Crores for Quarter ending December 2014
Air, Asia, cancellation, CY, delays, Factor, Fleet, forecast, FY, India, Load, loss, profit, Q3, Q4, Quarter
In the quarter ending December 2014 (Q3FY'15 – India), AirAsia India, an associate of AirAsia due to the latter's share of 49% in the India venture, posted a net loss of INR 21.7 Crores.
In the same quarter, spanning the months of October, November, and December 2014, the airline faced a significant challenge. The airline was faced with a shortage of senior cabin crew, effects of which were largely seen in November and December – very significant delays of many flights (up to 5 hours and more) and the cancellation of some. The airline was forced to play around with its schedules to match the flight duty time limitations (FDTL) of its senior crew, which resulted in the delays and cancellations.
Cancellations at AirAsia India rose from 0% in October to 2.65% in November, and dipped to 1.92% in December. In the quarter, a total of 4,019 passengers were affected by delays more than two hours (2% of the passengers carried in the quarter), and 513 passengers were affected by cancellations (0.2% of the passengers carried in the quarter), as per DGCA data.
In the quarter, the airline flew a total of 201,000 passengers, out of 253,852 seats, resulting in a load factor of 79.2% for the quarter. In the month of November, passengers carried dropped to 61,000, down 5,000 passengers compared to October, while load factors increased to 79.8%, up from 76.2% in October, perhaps indicating that the loads in November were driven by servicing affected passengers.
December is a month of high domestic travel demand. December 2014 was AirAsia India's first month of operations in a high demand season, which resulted in domestic load factors rising to 81.5% – its highest since start of operations. Considering that the target customers for AirAsia India are leisure travellers, AirAisa India was expected to have recorded higher load factors. This figure was the lowest among all airlines in India for the month, either due to the airline's limited network or an image that was impacted by the high number of cancellations and delays that continued into December.
AirAsia India ended the quarter with a fleet of 3 Airbus A320 aircraft, of which two are used (from AirAsia Malaysia), and one is new (directly received from Toulouse). The third aircraft entered commercial operations on 18th December 2014.
In the quarter, the airline added only one destination to its network – Pune, on the 17th of December 2014, while doubling the frequency on the Bangalore-Jaipur sector, and halving the Bangalore-Chennai frequency. The airline presently services Chennai, Cochin, Goa, Chandigarh, Jaipur, and Pune from Bangalore, and Jaipur from Pune.
As per AirAsia, AirAsia India will receive just three additional aircraft in the year 2015, raising its total fleet to just six (6) aircraft by the close of calendar year 2015. All three aircraft will be used (older) airplanes from AirAsia Malaysia. In the same year, the group will receive only five new airplanes from Airbus, of which one will be for Malaysia AirAsia, two for Phillipines AirAsia, and two for Japan AirAsia which presently has no aircraft.
AirAsia India is forecasted to have a load factor of 81% in Q4 FY'15 (Q1 CY 2015). This may seem difficult considering the airline is entering another lean season, and its past performance in both lean and peak seasons hasn't been encouraging enough to support this forecast.
However, one tactic that the group may resort to is to feed traffic from Malaysia AirAsia and Thai AirAsia into Bangalore, which can then be picked up by AirAsia India to offer more connections in India, such as Jaipur, Chandigarh and Goa to passengers of the other two AirAsia associate airlines.
Says Tony Fernandes, AirAsia Group CEO, "For a new airline, the AirAsia brand is strong in India and the load factor of 80% recorded in 4Q14 speaks for itself. Looking at the growth potential there, an additional aircraft was added in India during the reported quarter hence it ended the year with a total of 3 aircraft. Though the associate, due to the local regulations, is only allowed to operate domestic routes in its first five years of operations, AAI has the advantage of getting traffic feed from MAA and TAA which also flies in to AAI's hub in Bangalore. This differentiates AAI from its competitors."
AirAsia's A320NEOs will be delivered only at the end of calendar year 2016. Further, in 2015 and the next few years, the group will not be taking in large number of aircraft every year like before, in an attempt to preserve cash.
For the quarter, Thai AirAsia was the only associate to record a net profit. Indonesia AirAsia, Malaysia AirAsia, Philippines AirAsia, AirAsia Japan and AirAsia India recorded net losses. Indonesia AirAsia and Malaysia AirAsia however recorded operating profits.
Air Costa realises an operating profit
Posted by theflyingengineer in Air Costa, Airline, General Aviation Interest
Air, Costa, profit
Air Costa, the Vijayawada based regional airline, has realized an operating profit in the month of December, 2014.
ATF sales tax at Andhra Pradesh, which was reduced to 1% from 16%, has positively benefited the airline. Three out of four aircraft rotation patterns have at least one stop at Andhra Pradesh, which allows the airline to tanker fuel out of the state. The Embraer E170s, which used to pay a flat sales tax of 4%, now pay only 1% within the state and 4% outside the state.
The airline's tie up with Sovika Group to carry a target of 500 tonnes of cargo a month in the unused belly space of the aircraft has also contributed to the airline's revenue stream via ancillary revenues starting December. It is estimated that the airline makes around INR 1 Cr per month for 500 tonnes of cargo.
The airline flies 34 flights a day between 15 city pairs, connecting 9 stations with four Embraer E Jets – two 112 seat E190s and two 67 seat E 170s. Of these, the airline enjoys a monopoly on three pairs: Jaipur-Chennai, Tirupati – Vishakhapatnam, and Vijayawada-Vishakhapatnam sectors, and a duopoly on five others. On the other sectors, the airline enjoys competition from just two other airlines. Two out of 15 routes are Tier II – Tier II city pairs, while just two city pairs are Tier I – Tier I. The other 11 are Tier I – Tier II city pairs : the market that has the highest growth potential. The airline stopped flying the Bangalore- Chennai sector – a short, crowded sector that is not suited for a 100 seat regional jet in the light of stiff competition especially from economical 70-80 turboprops and higher capacity Boeing 737-800 and A320 aircraft. While the turboprop is the right sized aircraft with favorable economics, for jet aircraft, this sector is unviable. However, deploying a Boeing 737-800 or an A320 on this sector can be commercially managed through low airfares that fill up an entire aircraft to break even. The E190 cannot compete due to its very significantly higher operating costs than an turboprop and its higher cost per seat compared to a mainline jet, on such a short, already crowded sector.
The network has been restructured to eliminate unprofitable routes and unfavourable patterns.
It is also possible that the disruptions faced by SpiceJet across its network could have benefited Air Costa. The airline shares two duopoly sectors with SpiceJet and three other sectors with SpiceJet and other airlines.
Another important factor that would have contributed to Air Costa's profit is the high demand for domestic air travel in December. Tirupati, for instance, is preferred by many in December due to the favorable weather and the coincidence with the holiday season.
Route Deletions
When compared to the 2014 Summer schedule, the airline has stopped flying five city pairs and added four city pairs. The most notable change has been in the drop in the number of Chennai connections. Connections to Chennai from Coimbatore, Bangalore, and Vijayawada have been snapped. Madurai as a destination was dropped soon after opening. The connection between Hyderabad and Jaipur has been snapped. The frequency of flights between Hyderabad and Chennai have dropped from 3 flights a day each way to just one.
Route Additions
Tirupati was opened towards late September. Direct Hyderabad – Coimbatore, Hyderabad – Tirupati, and Tirupati – Visakhapatnam sectors were commenced, and the Hyderabad – Vijayawada frequency was doubled.
Route Modifications
Air Costa has stopped its three / four way routes : Bangalore – Jaipur – Hyderabad – Chennai (and the return), and Bangalore – Ahmedabad – Chennai (and the return), replacing these with direct Bangalore – Jaipur-Bangalore, Bangalore – Ahmedabad – Bangalore, Chennai – Ahmedabad – Chennai, and Chennai – Jaipur – Chennai routes.
Flights & Utilisation
From 40 planned flights a day in summer '14, the airline today flies 34 flights a day, dropping routes that were unprofitable.
Compared to the Summer schedule, the aircraft utilisation has dropped, from an average of 12:53hrs to 11:42hrs per aircraft, a drop of 1:11hrs. E170s, which were planned for 11:00 -11:25hrs in summer presently are utilised to 9:45hrs-10:00hrs a day. E190s, which were planned for 14:30hrs -14:40hrs a day in summer today fly for 12:50hrs – 14:15hrs.
Chennai, from 10 departures a day as per the summer'14 schedule, has reduced to just three. Bangalore and Hyderabad have the highest departures – seven a day. It may be prudent for Air Costa to shift its E190 aircraft base from Chennai to Bangalore both in light of its importance and the benefits handed out by Bangalore Kempegowda International Airport for operators who station 50% or more of their fleet in the city and fly more than a million passengers annually through the airport.
Presently, Air Costa flies a total of about 26,000 passengers into and out of Bangalore, every month. The E190s contribute to about 17,500 passengers per aircraft per month. Should 4 additional E190s be stationed at Bangalore to fly point to point routes out of Bangalore, then the airline will cross 1 million passengers movements per annum at Bangalore.
According to earlier plans, the airline was to have received the 5th E190 (7th aircraft) in December 2014.
Could SpiceJet spring a surprise with its Q1 Results?
Posted by theflyingengineer in Airline, Analysis, SpiceJet
13, 14, FY, loss, performance, profit, Q1, Spicejet
It is widely believed in the industry that SpiceJet may post a Q1 loss. Some were convinced, based on personal estimates. Others heard whispers. But, there could be some hope. The Flying Engineer redoes some numbers to show how SpiceJet could (but not a guarantee that it will-this is purely an academic exercise) spring a surprise on a nation that is so used to seeing the red airline in the red.
The turning point
The airline started steering a different course with Chief Operating Officer Sanjiv Kapoor: the classy man heading SpiceJet at the operational front. The bigger turning point was when he restructured his top management, and bringing on board the new Chief Commercial Officer Kaneshwaran Avili, who is ex-AirAsia and ex-Tiger. To some of us who watch the industry, we are in absolute awe of Avili, not only for what he's done, but for what he's doing. There were other posts that got a fresh nameplate, but the biggest changes are the COO and the CCO.
Sanjiv, with his legacy experience, is all set to change the brand (image and offering) of SpiceJet, positioning itself as not a low cost carrier but a classy low cost carrier that caters, however limited, to the business crowd. Not surprising, as corporate flyers make most of SpiceJet's bread and butter.
Avili, on the other hand, is keen on aligning the low cost carrier with global best practices for such airlines.
In short, Sanjiv caters to the first few rows of the aircraft, while Avili tries to work with the later rows in the cabin.
A great combination, in our humble opinion.
You could have the best team, but in the end, all that ever matters are results. This is where the optimists and the pessimists are divided. For one, media reports (and verified true) of employees not receiving their form 16 from the airline is making most wonder if the airline has only sunk deeper, exhibiting the symptoms that plagued Kingfisher just before its downfall. These are the whisper driven crowd.
The optimists-some of whom (and who are just a handful) have reason to believe that the airline's results – numbers – may have a different story to say, and maybe even spring a surprise on everyone.
To the numbers we March.
Load Factors
Beyond March-and before July make up the first quarter of the financial year. As shown in a previous analysis of SpiceJet by The Flying Engineer, there is a strong correlation between the passenger load factors and operational profits. April was a disappointing month for Spicejet (and few others), with domestic load factors that slumped compared to the previous year-for all carriers except Jet Airways and its low cost arm JetLite. In May, SpiceJet recorded and increase, and in June, displayed the best load factor increase performance, while IndiGo has been the only carrier to be in the negative for all three months of Q1.
Overall Market Demand
The second month of Q1-May-is typically the peak season for domestic travel. Yet, all carriers except Jet, Jet Lite, and SpiceJet reported a drop in load factors. Was there a slump in the demand for travel?
Year on Year (YoY), the Q1 of FY2014-15 recorded a 7% growth in domestic passenger traffic, while international recorded a 10% growth in traffic. Air Costa has grabbed less than 1% of market share, making us disregard the airline as a contributor to capacity increase. Overall, among the legacy full service and LCC carriers, capacity has increased far greater than demand, leading to low load factors.
But SpiceJet has done the opposite of IndiGo-it has slashed capacity in terms of seats, and ASKs. By pulling out six aircraft from its fleet, and with one Q400 temporarily grounded, it has deployed lesser capacity, but has managed an interesting result.
Efficiency of Commercial & Operations
SpiceJet's fleet has shrunk from Q1 FY13 – sending off 2 Boeing 737s, and preparing six to be sent back to their lessors: 2 scheduled, and four early return, while adding 5 new 737 aircraft, including the latest 737- the infamous 'Red Chilli' with a special livery. Compared to Q1 FY13 SpiceJet seems to have had 3 more airplanes on its books, but three less operational aircraft (as six were being prepared for return). One Q400 may have been down for a fairly long period.
While the available fleet has shrunk, very interestingly, SpiceJet has performed positively with respect to a YoY growth when it comes to domestic passengers and cargo carried. These are sources of revenue. It has also shown a negative growth as far as flights, seat capacity, and available seat-kilometers are concerned. These three are sources of costs, which means the costs have reduced. These are numbers from the airline.
Overall, revenue indicators have grown, while cost indicators have shrunk. This can only mean one thing as far as direct operations are concerned: profits. And a similar encouraging trend is also seen in its international operations, which are just 10% of the airline's overall deployed capacity (ASK). There, the fall in the number of passengers is small compared to the reduction in international ASK.
Overall, in Q1 FY14, SpiceJet flew just 23,400 passengers lesser than Q1 FY13, or just 0.7% lower. Which is impressive, in the face of a much higher airline capacity reduction.
Cargo carried in Q1 FY14 is much higher than Q1 FY13, showing an increase of 10%, or 1,868 tonnes extra.
Ticket Sales & Promos
Of those direct operation figures, as far as passengers are concerned, some seats are low yield seats, as these were promo seats sold across five sale campaigns: 'Super Summer Sale', 'Super Holi Sale', and three 'Fly New Network' promos.
The Summer sale was more an early sales drive, not exactly a 'sale'. The 'Super Holi Sale' offered INR 1,999 tickets in Q4 FY13 for travel mid June onward (bookings 90 days in advance) – or just 1/6th of Q1-in June. Three 'Fly New Network' sales in Q1 FY14 were for flights in June, July and August, of which two were for travel only in 2/9th of Q1-in June. Since April and May are peak domestic travel seasons, no significantly low 'promo' seats were offered in those two months. Which means that the higher load factors in the month of May are largely a result of normal sales.
But in June, SpiceJet recorded incredible domestic load factors, making it the second highest (after Go Air), allowing the red airline to lead IndiGo in occupancy. Compared to Q1 FY13, the June domestic load factor in Q1 FY14 rose by 8.1% – or 107,466 passengers. If we assume all these passengers paid around INR 1,999, which means the airline took home a minimum of INR 1,500 (After UDF and ST), then the airline's average yield (domestic) may have fallen by around INR 120, assuming an average passenger yield of INR 5,000 for regular sales. If one is to disregard the 10-lakh seats SpiceJet offered at INR 2013, which included travel in April 2013, then the promos in 2014 may have translated to a passenger revenue reduction of INR 37Cr, compared to Q1 FY13.
This does not mean the airline is losing money because of promo sales. Had these promos not been in place, the airline may have flown lesser passengers, taking a larger hit on its direct passenger revenue through lower sales and lesser stimulation. IndiGo, for instance, carried 687,000 more passengers in Q1 FY14 compared to last year, but added 1.24 million seats, leading to seat capacity deployment that was beyond demand. But considering SpiceJet has managed to fly more passengers with lesser capacity, probably in part because of the changes within the airline- new service, better cleanliness, better service, improved frequency, better timings, and better on-time-performance, the airline may not have sold as many promo tickets as estimated, but probably sold more regular fare tickets, bettering the 37Cr estimate.
In addition, SpiceJet held 11 sales campaigns in Q1 FY- thanks to Avili who took over the role of CCO in Q1 FY14- of which all included flights in Q2 Fy14, and only three included few flights in Q1 FY14 (The Fly New Network sales). Since statistically, demand in Q2 of any FY is weaker, more seats were up for sales. With an approximate 3.75 million seats flown (offered) in each quarter, and conservatively assuming 10% of it was up for promo sales, more than 500,000 tickets may have been sold at an average price of INR 1,777, leading to an additional revenue of INR 100 Crore.
That 100CR sales were for tickets that need to be serviced in Q2 FY14 and beyond. This only means that the airline has sold more tickets than it has serviced in Q1 FY14, leading to more revenues from operations, while not incurring the costs associated with servicing those ticket sales.
With the flash sales triggering a market stimulation, approximately INR 10-50 Crore or more worth tickets may have been sold purely through stimulation.
Pushing the Demand Season
The flash sales have had two effects: shoring up capital, and destroying the notion of a season, proving that seasons are in the hands of the airline. June, which was to have been the onset of the off-season for domestic air travel, has recorded the best load factors, making it a lucrative month, and carrying fuller airplanes (on domestic) than IndiGo in the June of Q1 FY13.
The advent of Ancillaries
Part of SpiceJet's rebranding was the commercial interest involved with the introduction of preferred seats (where passengers may pay higher for 'Max' seats which are the first few and emergency exit seats which either offer better legroom or promise faster boarding and deplaning), and the hot meals with TAJ SATS and CCD. The ancillaries from these introductions are pronounced in June 2014, as the hot meals were introduced towards the end of May of 2014. With these introductions, and the higher number of passengers flown, SpiceJet could have realized higher in-flight ancillary revenue in Q1 FY14 compared to Q1 FY13.
For the Q1 of FY13, SpiceJet reported a profit of INR 50 Crores. One of the largest disproportionate expenses for the airline, in FY13, was maintenance: INR 993Cr, most of which was contributed to in H1 FY13. Over quarters, the maintenance cost averages to INR 250Cr. In Q1 FY13, the maintenance cost was INR 200 Cr. If the maintenance costs prevail, due to activities associated with aircraft being configured to lessor-return conditions, then compared to Q1 FY13, the maintenance cost overrun is INR 50Cr.
Although six Boeing 737s were withdrawn from operations, there were three extra 737s on the books, compared to Q1 FY13, which together add about INR 12Cr in lease over the three months, over Q1 FY13.
Compared to Q1 FY13, fuel prices in Q1 FY14 have risen by an average 10%, while ASKs have fallen by about 7%, resulting in a net fuel price increase of INR 17Cr.
Overall, flights in Q1 FY14 have fallen to 95% of that in Q1 FY13, resulting in airport charges reducing by about INR 5 Cr.
Flight crew salary hikes were not effected in Q1 FY14.
Cargo carried has gone up by 10% in Q1 FY14, contributing to INR 4 Cr of revenues over and above that in Q1 FY3.
Passengers in Q1 FY14 have dipped by 23,400 when compared to Q1 FY13. Assuming these passengers could have been regular fare paying passengers, the airline may have lost INR 11Cr. In addition, due to the promo fares, the airline may have lost INR 37Cr in the form of average yield reduction.
The lesser flights but higher passengers and cargo per flight translate to an average 500kg increase in payload, per flight, which introduces an average 0.65% fuel burn penalty, which translates to INR 5 Cr.
However, the airline may have shored up to around INR 150Cr from the sales in Q1 for services in Q2, and the market stimulation drive. With this, the airline may report a two digit profit (though we'd love to see three), and a single digit profit or a very modest and negligible loss, at worst. It must be noted that proceeds due to ancillaries haven't been considered, which will increase profits. These profit/loss projects are very approximate, conservative, and willfully skip few other factors that influence cost, and may not hold true in case the airline paid off certain dues from previous quarters (if such rumors of unpaid dues are true) in Q1 FY14, in which case the airline may slip into losses against the above projection.
If the company's declared results are as analysed above, SpiceJet is on its way to a positive transformation. With all it's heart.
SpiceJet: Crushed Pepper?
Posted by theflyingengineer in Operations
Indigo, loss, performance, profit, Q2, Spicejet
This post briefly compares SpiceJet and IndiGo, and talks of SpiceJet's financial performance and cost breakup, the Q400 woes, the airline's route and fleet expansion between end Q2 12 and end Q2 13, the new COO, and also: graphically showing the ATF price trend in India.
SpiceJet, which commenced operations in 2005, is unique. It's a low cost carrier that flies to 55 destinations (45 Domestic and 10 International), has a dual fleet of 55 airplanes : Boeing 737NG (Boeing 737-800 and Boeing 737-900s), and the turboprop Q400: The only operator of the type in Middle East, South and South East Asia. The 737s have a good market resale value, while Q400s are not in demand. Its 737 fleet has ovens on board, some of its airplanes could be cleaner, and its ground vehicles could be parked better. All its Q400s are fully owned, and the airline is gradually moving away from 737 ownership to leased airplanes. It has mulled a narrow body jet fleet switch to Airbus A320NEOs, and is presently without a CEO since Neil Mills left the airline and went to Philippine Airlines. Spicejet posted the worst ever Q2 loss, ending September 2013, of INR 559 Crores (INR 5.59 Billion), and reported a reported a loss of INR191 Crore during 2012-13 (INR 1.91 Billion). Since the Jan of 2013, till September end 2013, the airline has flown on domestic(international) routes 8.6Million(0.7Million) passengers on 82,569(6,216) flights, and has experienced its best load factor of 81%(78%) in the month of May(June), and 68%(69%), its worst in the month of September(July). Over this 9 month period, the airline had an average load factor of 74.7% (74.2%).
IndiGo, which commenced operations in 2006, is very unique. It's a low cost carrier that flies to 35 destinations (30 Domestic and 5 International), has a single fleet of 71 airplanes : Airbus A320 airplanes only (not even A319s and A321s): The only operator of a single type and single variant fleet in the country. The A320s have the highest market resale value. Its airplanes have no ovens on board, all its airplanes are clean, and its ground vehicles parked in an organised manner. All its airplanes are leased through a profitable sale-leaseback practice. As part of natural fleet expansion, it has ordered Airbus A320NEOs, and is presently with the same, apparently satisfied CEO since 2008: Aditya Ghosh. Indigo reported a profit of INR 787 Crore (INR 7.87 Billion) during 2012-2013. 2012-2013 was its 5th consecutive year of profits. Since the Jan of 2013, till September end 2013, the airline has flown on domestic(international) routes 13.2 Million (1.1 Million) passengers on 103,439 flights, and has experienced its best load factor of 90%(88.9%) in the month of May(Jan), and 70.3%(73.3%), its worst, in the month of September. Over this 9 month period, the airline had an average load factor of 80%(82.8%).
And yes, SpiceJet is publicly listed, and IndiGo isn't.
The financial quarter ending September was very challenging for SpiceJet, as for other airlines. Statistically, the months of July, August and September witness a lower domestic demand. Adding to its troubles was the weak rupee, rising fuel prices, increased maintenance costs due to "bunching up of engines sent for shop visits", the start up costs associated with two new destinations: Muscat and Bangkok, and, as per airline insiders, an operationally troublesome Q400 that lead to a recent cancellation of many flights in October. The aircraft, according to one captain, isn't probably suited for Indian conditions, but "maintenance could do better". Few maintenance personnel feel internal issues in the airline management are partly responsible for the Q400s maintenance and operational reliability that "can actually be better". Some in the airline believe that the Q400s are "wretched aircraft". In the December of 2010, Bombardier announced that SpiceJet had placed a firm order for 15 Q400s, with an option for another 15. Exercising the option for the other 15 hasn't yet happened, and very likely, won't.
Operational costs in the airline have understandably increased, with SpiceJet's addition of almost 22 new routes, and addition of 8 Boeing 737-800s and 3 Q400s to its fleet, between October 2012 and September end, 2013. Despite this, and the increased fuel prices, fuel costs haven't increased much. Maintenance, and depreciation and amortisation expenses have been the most significant increases compared to the same period last year, which has had the effect of reducing the fuel cost's share in the airline's expenses.
SpiceJet stated, "In order to improve its competitive position, the management is putting in place a strategic plan to refine the network, enhance revenues, rationalize costs and further improve reliability to deliver better value to customers."
Question is, are the dual fleet and aggressive route expansion helping the airline? Or is something more needed?
On November 1st, Sanjiv Kapoor joined the SpiceJet as the Chief Operating Officer. Sanjiv started his airline experience with Northwest in 1996, where his role spanned across corporate finance, business planning, procurement and operations. He later joined a world renowned consulting firm, leading their business that caters to airline consultancy. He's been an advisor to a Bangladeshi airline, as well. How Mr. Sanjiv helps transform the airline is to be seen. But that also depends on how much the airline allows him to implement changes.
Truth be told, unless the top management steps out onto the apron and spends days with operations, many decisions may be based what may not be reflective of ground reality. And it's on the ground, that most issues are seen, as felt by many of the airline's staff.
Quoting Firstpost Business' Sindhu Bhattacharya, with regards to plain survival, "…one or two months of better performance alone may not be enough for SpiceJet to survive — it needs funding and needs them urgently."


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Ernie Ball Music Man 5150 | Dan Herron's Say "Cheese" Austin!
I thought I would show you my 5150 because I just put a new Frankenstraat neck on it.
Music Man 5150 EVH Guitar.
~ by danherron on September 26, 2007.
Very cool. I just finished work on a Franky, you just gotta love the red and white, such a great combo to the eye.
thats not the ernie ball music man,thats the kramer 5150.
Eddie Van Halen has the best guitars in the whole frickin' universe! I have been a fan for many years, and have a guitar painted like the guitar god himself, but nothing beats having a certified guitar replica. KEEP AT IT EDDIE!!!


It's an unexpected, but welcomed friendship.
"And I remember him and his wife Mila Kunis, which is crazy, invited me and Lauren to dinner one night in L.A.. And we're sitting there going, 'Are we seriously about to go to dinner with them?'" Rhett expresses.
A longtime fan of the That 70s Show actor, Rhett admits that he and Lauren went into the dinner cautiously, hoping their perception of the famed actors wouldn't be shattered getting to know them on a personal basis. But the country singer ensures that the pair are as down-to-earth as fans would hope.


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West Buechel police chief resigns after suspension for taking wife to shooting scene
West Buechel Police Chief Jim Sherrard has resigned after being suspended for bringing his wife with him as he responded to a high-speed chase and a shooting.
"It is with deep regret that I will be resigning my position as the Chief of Police for the City of West Buechel," Sherrard wrote in a letter to West Buechel Mayor Brenda Moore. "It was the highlight of my numerous years in Law Enforcement to be able to lead such a great group of Officers and serve a City government that was doing the right thing."
His resignation was effective May 7, according to the letter.
Related:KSP releases footage of Louisville officer shooting armed man by a Walmart
More:Hundreds march in downtown Louisville to support Palestinian freedom
In a previously obtained disciplinary letter to Sherrard, Moore said Sherrard allowed his wife to ride with him as he responded to a chase initiated by Louisville Metro Police on March 9. The incident ultimately ended with a LMPD officer shooting a man near the Bashford Manor Walmart.
After arriving at the Walmart, Sherrard left his wife in his police car while he followed the man into the store, according to the letter obtained by The Courier Journal.
"Additionally, while you were inside the Walmart, your wife, without your knowledge, moved your city-issued police vehicle from the location you left it and moved the vehicle directly to the scene of an active police-involved shooting of the suspect involved in the LMPD pursuit," the letter states.
The letter also says Sherrard attempted to influence witnesses at the scene after finding out his wife moved the city-issued vehicle by telling them "this will never be discussed."
Courier Journal reporter Emma Austin contributed to this article.

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Learn to Cure Your Own Country Ham November 8 | Joe Hayden Real Estate Team - Your Real Estate Experts!
The holiday season is here again, so do you know what you're going to serve at your big dinner? This year, learn how to cure your own country ham and learn the secrets of this traditional Kentucky treat. Go to the Hamcrafted Workshop at Copper and Kings, and become an expert on country ham.
This special seminar will tell you what you need to know about preparing a Kentucky Country Ham so it can be cured. You'll also practice some ham pairing, where you'll pair ham with American brandy. The workshop includes a welcome cocktail and a taste of the country ham and brandy pairing, not to mention the entire seminar.
Country ham is a time-honored Kentucky tradition, and the Hamcrafted Workshop is at Copper and Kings. This is one of Louisville's many distilleries, and it's carrying on the tradition of excellence in spirits that Kentucky is so famous for. Come here to learn how to make country ham like an expert, and bring something new to your holiday table this year.
Hamcrafted begins at 6 pm at Copper and Kings. That's at 1121 E. Washington Street in Butchertown. The evening includes a social hour, plus hands-on ham activities so you can practice making a perfect country ham. Tickets cost $15 per person.
Copper and Kings is just a couple blocks outside of Irish Hill, the beautiful historic neighborhood that stretches out next to Cave Hill, a national memorial that's full of rolling grass and beautiful stonework. Irish Hill is even older than the Civil War, and the neighborhood has been a vital part of Louisville from the earliest days of the city. Irish Hill is still full of interesting historic attractions, but there are plenty of modern ones, too. Irish Hill is famously home to Headliner's, where you can often find local performers and well-known musicians.
Mostly, Irish Hill was built to be a family neighborhood, and that's one thing that hasn't changed in over 100 years. Irish Hill is still full of amazing historic homes, including Craftsman and shotgun styles dating back to before the 1930s. The older homes in Irish Hill have been updated over the years, so they still have modern plumbing, electricity and all those other features that modern families need. Today, this neighborhood is home to young professionals, growing families and retired people, because Irish Hill is the type of neighborhood that appeals to everyone. See for yourself this November, and see how Irish Hill appeals to you.


"Although the fig tree shall not blossom, neither shall fruit be in the vines; the labor of the olive shall fail, and the fields shall yield no meat; the flock shall be cut off from the fold, and there shall be no herd in the stalls; yet I will rejoice in the Lord. I will joy in the God of my salvation."
The great American statesman Benjamin Franklin wrote about his memories as a little boy. He remembered his father taking the daily meal out of the large barrel that sat next to the wooden table where the family always ate. Following a cherished routine, Ben Franklin's dad would put the food on the table and bless the meal, giving thanks to God for the sustenance for that day. He recalled asking him on one occasion: "Father, why don't you say grace over the whole barrel so we won't have to wait so long to eat?"
I can't imagine Ben Franklin's father being amused by that question, but it certainly amuses me when I think of what Thanksgiving has become for most of us. In reality, we do exactly what young <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Franklin had in mind when we wait until the fourth Thursday in November to pronounce our one blessing to God, although throughout the year we have been benefactors of God's daily blessings. We squeeze into a few short hours our gratitude for an entire year, while the other 364 days go by without a hint of true thanksgiving. And even on Thanksgiving Day, we are so preoccupied with friends, family, football and food that we often neglect to really honor the significance of that day.
What would happen if God decided to withhold His blessings and give them to us only one day of the year? I think you get my point.
As I write to you today, mindful of the great tragedies and staggering losses in our nation and around the world this year, I share a few words that may help us to understand what real thanksgiving is all about.
Out of the tiny Old Testament book of Habakkuk, a hymn of faith is given that helps me put everything in perspective. It is a hymn that sings a melody of loss; it utters words of total devastation, but its refrain is an affirmation of joy and thanksgiving.
The prophet says that "although the fig tree may not blossom, and no fruit be in the vines, and the labor of the olive shall fail, and the fields shall yield no meat, and the flock be cut off from the fold, and there shall be no herd in the stall," he still would rejoice and give thanks to God. What a witness! What a definition of real thanksgiving!
Habakkuk reminds us that his feelings of gratitude to God are not controlled by the events around him but by faith in God's ability to give him strength. When everything is gone, and nothing in life makes sense anymore, he will continue to praise God and remember God's great mercies.
Somehow, we have to arrive at that place where Habakkuk dwells. It is so easy to lift our prayers of gratitude when everything is going well, but when hard times and difficult problems invade our lives, it is not easy to give thanks. The calamities and hardships of life cannot be left outside the door this Thanksgiving. Somehow, we must learn to allow those trying moments to sit alongside the blessings at the table, and we must learn to give thanks to God for all the circumstances of life.
No one knew this better than (my hero) the Apostle Paul. Open the New Testament to any one of the letters of Paul, and you will not read long before you discover an expression of thankfulness. Again and again, the apostle interrupts the development of one of his great themes and breaks forth into praise and thanksgiving.
Paul is continually thanking God for the gift of the Gospel, for his co-workers in the service of the Word, for the fruits of the Spirit in his converts, and even for the opposition and suffering he has encountered in the furtherance of his message to the Gentiles.
In the midst of trials and sorrows that would break the spirits of weaker followers, Paul writes: "Give thanks in all circumstances... give thanks always for all things unto God." Somehow, Paul mastered the secret of giving thanks in all circumstances, and only when we are able to do as he did will we know the meaning of real thanksgiving.
You, too, can master the secret of continual thanks: Simply put, with the gift of gratitude. A thankful outlook on the world is the best way to face life. In the face of hardship and misfortune, gratitude helps us to keep perspective. A sense of gratitude is the most direct road to an awareness of God.
When our gratitude has its origin in Christ-in what Christ has done and does for us daily-we begin to understand how Paul could give thanks in all circumstances. The presence of Christ and the peace of Christ in the human heart are realities quite independent of outward events.
The high-water mark of our faith is to be able to sing a song of thanksgiving every day, no matter what.
May the blessings of God be with you and your family this Thanksgiving.


Foster an environment that fully supports the professional advancement and clinical development of Physician Assistants working in emergency medicine.
Research and liaison with both the Membership Committee and AAEM on Physician Assistant memberships that will both enhance and maintain membership in AAEM. Make recommendations for membership levels for EMPA Fellows and certified EMPAs.
Develop and liaison with the Education Committee on how to best involve and/or invite Emergency Medicine Physician Assistants to educational opportunities.
Create an active and open communication with AAEM, other committees and Physician Assistants working in Emergency Medicine.
Support scholarly input from Physician Assistants working in Emergency Medicine.
Assist with legislative issues that affect both Emergency Medicine and Physician Assistants.
The Annual EMPA Challenge Bowl is held at AAEM's Annual Scientific Assembly each year. The bowl is a great success for the participating teams and appreciative audience.
3rd Emergency Medicine PA Fellowship Challenge Bowl - Thursday, February 18, 2016, at the 22nd Annual Scientific Assembly in Las Vegas, NV. Learn more.


In the fall, pumpkins are everywhere: in the garden, in the supermarkets, and on doorsteps. But do you know how they grow from a tiny yellow seed to a pumpkin? In this classic Level 1 Let's-Read-and-Find-Out picture book, Wendy Pfeffer's lively text combines with James Graham Hale's beautiful watercolors to bring readers into the pumpkin patch to show them how little seeds transform into big pumpkins.
Now rebranded with a new cover look, this book includes a find out more section with activities such as an experiment to show how plants use roots to drink water from the ground and a recipe for roasted pumpkin seeds. Both text and artwork were vetted for accuracy by Barbara J. Bromley, Mercer County Horticulturist.
This is a Level 1 Let's-Read-and-Find-Out, which means the book explores introductory concepts perfect for children in the primary grades and supports the Common Core Learning Standards and Next Generation Science Standards. Let's-Read-and-Find-Out is the winner of the American Association for the Advancement of Science/Subaru Science Books & Films Prize for Outstanding Science Series.


Made of white 100% cotton fabric. Measures about 10x10 inches and is printed with permanent textile inks (no embroidery or image transfer). Dry clean only. Packaged in a gift box with clear top and a white bottom with swirly pattern. Gift box measures 5x7x1.25 and is made in the USA.
Handkerchief will be ready to be shipped within 2-3 business days.
copyright 2016 Artful Beginnings LLC.


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Q: Declaring a 2-dimensional array of unknown size, C I have an array declared as a member of a struct in C. The array is declared as:
char        mValue[MAXROWS][MAXCOLUMNS];

where  MAXROWS and MAXROWS are 300. Is there a better way to do this? I mean, should I declare these as pointers instead?
Thanks!

A: As the previous poster suggested, a good way is to create a linear array and then "convert it to 2D". Many times, caching the 2D pointers greatly increases the speed of programs that use this array, like so:
mystruct *p = (mystruct*)calloc(ROWS * COLUMNS, sizeof(mystruct));
mystruct **p2 = (mystruct**)calloc(ROWS, sizeof(mystruct*));
for (int i = 0; i < ROWS; i++)
    p2[i] = p + i*COLUMNS;

Then, you can simply access a 2D element with:
p2[row][column] = foo;

A: If all your rows are the same size, you should use a 1D array with the rows stored in sequence:
ABCDE
FGHIJ   --->  ABCDEFGHIJKLMNO
KLMNO

The element at row i, column j will be at index i * ROW_LENGTH + j in the 1D array.
You can allocate the array using malloc(ROW_LENGTH * NUM_ROWS).

A: Another technique is to create a linear array and then convert it to 2d:
char *p = malloc(ROWS * COLUMNS);

// To access x, y
// This is in row-major ordr
*(p + (x * COLUMNS) + y);

A: I find that, for this kind of code, its better to create helper functions for accessing the elements.  Depending on your profiling data, it may make sense to turn these into macros, but be extra careful.
#include <stdio.h>  /* For printf */

/* This is the bit that would go in a header, like char2darray.h */
#include <stdlib.h> /* For calloc */
#include <assert.h> /* For assert */

struct Char2DArray
{
   int rows;
   int columns;
   char *values;
};

/* This is the bit that would go in a source file, like char2darray.c */

void C2DA_initialize(struct Char2DArray *array, int rows, int columns)
{
    assert(array != 0);
    array->values = calloc(rows * columns, sizeof(char));
    array->rows = rows;
    array->columns = columns;
}

void C2DA_set(struct Char2DArray *array, int row, int column, int value)
{
    assert(array != 0);
    assert(array->values != 0);
    assert(row < array->rows);
    assert(row >= 0);
    assert(column < array->columns);
    assert(column >= 0);

    array->values[(row * array->rows) + column] = value;
}

char C2DA_get(struct Char2DArray *array, int row, int column)
{
    assert(array != 0);
    assert(array->values != 0);
    assert(row < array->rows);
    assert(row >= 0);
    assert(column < array->columns);
    assert(column >= 0);

    return array->values[(row * array->rows) + column];
}

void C2DA_free(struct Char2DArray *array)
{
    free(array->values);
    array->values = 0;
}

/* Here's a main.c to use it */
int main()
{
    struct Char2DArray a;
    C2DA_initialize(&a, 16, 16);
    unsigned char c = 0;
    int x, y;
    for (x=0; x<16; x++) {
        for (y=0; y<16; y++) {
            C2DA_set(&a, x, y, (char)c);
            c++;
        }
    }
    printf("Character with hex value 0x55 is %c\n", C2DA_get(&a, 5, 5));
    C2DA_free(&a);
    return 0;
}

A: If the array needs to have a dynamic size, then you either need to make it a pointer or make the array the last member of the struct and play games when allocating the structure size.
Relevant comp.lang.c FAQ entries:

*

*I came across some code that declared a structure like this...

*How can I dynamically allocate a multidimensional array?

A: I found that changing my approach was very useful when faced with a similar problem.
A vector of vectors filled the same task, avoided memory allocation obstacles, and kept the same familiar shorthand. There may be other pitfalls, but I have not encountered them yet.
//Declaration of mValues, undefined size:
std::vector< std::vector<char> > mValues;

//Filling of mValues:
    int max_x = 100 ;
    int max_y = 100 ;
    char char_foo = 'a';
    for ( int x = 0; x <= max_x; ++x ) {
        vector<char> temp;
        for ( int y = 0; y <= max_y; ++y ) {
             temp.push_back( char_foo );
        }
        mValues.push_back( temp );
    }

// Referencing with familiar index notation:
    mValues[a][b]; //The a-th row's b-th element

If you are struggling with arrays, but strongly desire the familiar indexing language, I have found this to be a good alternative.
Note that indexing order A then B is going to be critical for memory usage when recalling this data.  Failure to call the information in an A,B order will be deeply problematic if performance is an issue.

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Fashion as Design
Learn Fashion as Design from The Museum of Modern Art. Among all objects of design, our clothes are the most universal and intimate. Like other kinds of design, fashion thrives on productive tensions between form and function, automation and ...
Among all objects of design, our clothes are the most universal and intimate. Like other kinds of design, fashion thrives on productive tensions between form and function, automation and craftsmanship, standardization and customization, universality and self-expression, and pragmatism and utopian vision. It exists in the service of others, and it can have profound consequences—social, political, cultural, economic, and environmental. Fashion as Design focuses on a selection of more than 70 garments and accessories from around the world, ranging from kente cloth to jeans to 3D-printed dresses. Through these garments, we're going to look closely at what we wear, why we wear it, how it's made, and what it means. You'll hear directly from a range of designers, makers, historians, and others working with clothing every day—and, in some cases, reinventing it for the future. Studio visits, interviews, and other resources introduce the history and development of each garment and their changing uses, meanings, and impact over time. Course Learning Objectives: Develop critical tools to appreciate and contextualize fashion design—from everyday clothing to couture garments—through many different perspectives. Trace the history, development, and impact of garments over time, and explore how they may be reinvented. Investigate garments through multiple lenses including politics, identity, and economics. Understand more about the lifecycle of clothing, from its design and production to its marketing, distribution, and consumption. Better comprehend the choices you make about fashion with respect to the visual language of dress, individual and collective identities, and issues such as labor practices, sustainability, and body politics.
Master Fashion Retouching in Photoshop
Sewing Patterns 101: Learn to Read Sewing Patterns
Intro To Sewing: Leather + Canvas 'Oberlin' Tote Bag And Machine 101
Fashion Styling: TOP Fashion Trends Fall/Winter 2016-2017
Manage Quality Assurance in Textile and Fashion Industry