But first . . . economic perspective from Paul Krugman:
. . . [W]hy are interest rates so low? The answer basically comes down to a global excess supply of saving: around the world, people want to save more than businesses are willing to invest in new factories, office parks, and so on. This leaves the world awash in savings that are all dressed up with nowhere to go, which is in turn a world in which bond markets are effectively begging governments to borrow and spend.
And governments should take them up on the offer. The sensible, prudent thing to be doing now would be to borrow at these low, low rates and use the money for public investment: rebuilding our creaking infrastructure, subsidizing new technologies (especially green energy), and making sure that children have adequate health care and nutrition.
Of course, we’re not doing that in America: the Trump administration is borrowing vast sums, but squandering the money on tax cuts for corporations and the wealthy. . . .
And now . . .
As BOREF subsidiary WheelTug inches toward the hoped-for promised land, it took two inches forward this week with the signing of IndiGo and what could eventually be 1,084 WheelTug leased systems, roughly doubling the order queue.
Big news in India. One of many press clips:
How do you grow a world-class airline in a market constrained by infrastructure, capacity, competition, regulatory and emissions limitations?
IndiGo has found the answer.
The Indian aerospace market is unlike any other. The market is extremely promising from a demand perspective. Commercial air services at the ten busiest airports have grown between 50% and 160% over the last five years. While that market demand is extremely attractive, other aspects of the region are far more challenging.
Indian airlines face:
- Limited airport capacity as airport tarmac space is often severely limited by surrounding, densely populated, urban areas.
- Emissions constraints in a country striving for a significantly cleaner future.
- Regulatory pressures on on-time performance that result in schedule padding and lower effective utilization.
- And a brutal competitive space that has bankrupted multiple airlines
The winners in this market will be those airlines that find solutions to these challenges. IndiGo, an airline projected to be the largest in the world by fleet size, will be one of them.
IndiGo recently signed a Letter of Intent reserving a large number of WheelTug® systems. WheelTug provides onboard electric motors, mounted into the nosewheel of aircraft, that will revolutionize ground operations. These simple systems enable aircraft to travel on the ground without tugs or engines. They will enable far more manoeuvrability and independence for aircraft in the ramp area.
To complement the e-taxi system, IndiGo pilots will also have access to the WheelTug Vision camera/sensor array installed alongside the e-taxi system. Panoramic views displayed in the cockpit will provide pilots with the situational awareness required to manoeuvre aircraft quickly and safely.
This is a game-changer for the Indian market.
By moving aircraft in and out of gates faster (and in some cases, shortening time at the gate as well), IndiGo will be uniquely situated to make the most out of Indian airports limited tarmac availability.
By significantly reducing emissions for aircraft and eliminating emissions from pushback tugs, IndiGo will be able to run cleaner and more efficient ground operations than any other airline.
By reducing delays caused by ground equipment (particularly pushback tugs and congestion delays caused by jet start procedures and jet blast safety margins), IndiGo will be able to schedule their operations more tightly and realize far greater utilization than their competition – without concern for the financial penalties that prevent other airlines from doing the same.
And by increasing efficiency, utilization and improving the passenger experience, IndiGo will be able to edge out their competition, offering prices and services that cannot be matched by any other airline in the Indian market.
IndiGo has shown its leadership in the market and its dedication to serving the Indian market with ever more efficient, comfortable and affordable commercial air services.
None of this matters unless and until the company successfully completes the FAA certification process. But having secured what the company believes will be adequate funding to do so, it seems to be worth a great deal more than the $30 million market cap the market currently assigns its publicly traded grandparent (well, barely publicly traded), BOREF. I know, I know. But you know, too: only to be bought with money you can truly afford to lose. (And use “limits” — the other day it dropped 50% on a sale of 2,000 shares, and then nearly doubled on a small purchase!)