Aviation - Can vaccine launch help daily flier count cross 230k mark? - ICICI Securities

As Indian drug regulator, Drug Controller General of India (DCGI), gives approval for emergency use of (1) Oxford/AstraZeneca's coronavirus vaccine called Covishield (manufactured by Serum Institute of India) and (2) Covaxin (designed and manufactured by Bharat BioTech in India), the focus now shifts on the implementation of the vaccination drive. However, the launch of vaccines can also lead to faster recovery of air travel, which stagnated at ~230k level during December 2020.

Weekly average daily fliers ('000) came in at 233 in the week ended (W.E) 2nd Jan'21 vs 235 in the W.E 26th Dec'20. For the W.E. 2nd Jan'21, average number of departures per day grew marginally to 2,147 compared to 2,130 in the W.E. 26th Dec'20. The number of fliers per departure also dipped marginally to 108 in the W.E. 2nd Jan'21 vs 110 in the W.E. 26th Dec'20.

SpiceJet seems to be well placed to participate in vaccine transportation programme on the basis of several partner agreements as reported in media. From specific cold storage logistic players to airports, from freight forwarders to manufacturers of specialised temperature control boxes, SpiceJet has done several agreements for effective vaccine transportation (as per media news). One wonders whether this will be a missed opportunity for IndiGo or it will also follow suit in terms of additional dedicated freight services for vaccine transportation.

Initial blueprint of Covid-19 vaccine transportation: As per media reports, special cargo planes with cold boxes storage space and refrigerated vans will carry the vaccine vials to different parts of the country to government-designated centres. State administrations will then distribute the vaccine vials to district authorities for delivery to designated inoculation centres. The initial vaccine lots will be administered to two priority groups of health care and other frontline workers such as police personnel. The quantum of vials sent in each destination will be decided by the national expert group through DGCA. The vaccines will be stocked at four Government Medical Store Depots in Karnal, Mumbai, Chennai and Kolkata and state and regional vaccine stores. Refrigerated vans will bring these vaccines to the last point in the cold chain in Primary Health Centres (PHCs) and Community Health Centres.

Source : Equity Bulls

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