Air India’s operations could be disrupted again from November 1 with a section of employees threatening action over non-payment of productivity-linked incentive (PLI) dues. This could gather momentum with the erstwhile Indian Airlines workforce now contemplating following suit.
Incentive issue
The spokesperson for the Indian Commercial Pilots Association (ICPA), Capt R.S. Otall, said on Wednesday, “If our PLI dues are not paid by November 1, we will take any action from the book.”
He added that these were pending since August this year. The ICPA represents 1,000 former Indian Airlines pilots.
Late last month, executive pilots of Air India went on a five-day strike on the same issue. The airline then had to roll back its decision of 50 per cent cut in PLI. This was to have translated into savings of Rs 20 crore a month had it been enforced on 7,000 of the total 31,500 employees.
Grappling with loss
Air India is still grappling with losses of Rs 7,200 crore accumulated in the last two years. The current fiscal could see it slip deeper into the red with losses of Rs 5,000 crore.
As a result, it is looking at ways and means of cutting costs and reducing wage overheads. The Centre has made it clear that any financial aid would have to be preceded by cost-control.
The Minister of Civil Aviation, Mr Praful Patel, had said this month that Air India was not only looking at reducing costs by Rs 3,000 crore but also increasing revenue by Rs 2,000 crore.
Pre-delivery payments
Sources have said that the airline is expected to get Rs 3,000 crore from the Centre towards pre-delivery payments for a part of the 111 aircraft ordered. In all, it needs Rs 9,000 crore over the next three years.
Last week, the Group of Ministers headed by the Finance Minister, Mr Pranab Mukherjee, said Air India needed to evolve a concrete plan on savings.
Source: The Hindu Business Line
Thursday, October 29, 2009
Monday, October 26, 2009
Paramount Airways in talks to buy Star Aviation
Wants to expand within the country and outside, while Star Aviation, yet to begin operations, has three aircraft ready. Chennai-based Paramount Airlines has sent feelers to a south-based regional carrier, Star Aviation, for a possible acquisition of the airline. Star Aviation got an operating license in 2007, but has yet to start any flights. “We are looking at acquisitions to expand and we are talking with Chennai-based Star Aviation,” said a senior executive of Paramount Airways. Star Aviation Pvt Ltd, part of a Dubai-headquartered conglomerate, the ETA Star group, could not be spoken to for comments.
Paramount is the only airline in India to offer full business class service at prices comparable to the normal economy class fares of other airlines. It flies to 16 destinations in the country. The airline, which started operations in October 2005, operates five planes — two Embraer 170 and three Embraer 175. Established by the Madurai-based textile company, the Paramount Group, it has ordered 10 A321-200 aircraft for short-haul international routes to be launched next year, when it completes the mandatory five year pre-requisite to fly abroad.
The source added that acquisition made sense for the airline, as Star Aviation has a fleet of three Embraer aircraft, which will add to Paramount’s existing strength. There were reports that Paramount was buying GoAir, which has eight aircraft and 5.8 per cent market share, in a cash and equity deal, paying Rs 100-150 crore in cash and a stake of 7-8 per cent in the Paramount Group to the Wadias, who own GoAir. But GoAir has denied all such reports of talks.
Source: Business Standard
Paramount is the only airline in India to offer full business class service at prices comparable to the normal economy class fares of other airlines. It flies to 16 destinations in the country. The airline, which started operations in October 2005, operates five planes — two Embraer 170 and three Embraer 175. Established by the Madurai-based textile company, the Paramount Group, it has ordered 10 A321-200 aircraft for short-haul international routes to be launched next year, when it completes the mandatory five year pre-requisite to fly abroad.
The source added that acquisition made sense for the airline, as Star Aviation has a fleet of three Embraer aircraft, which will add to Paramount’s existing strength. There were reports that Paramount was buying GoAir, which has eight aircraft and 5.8 per cent market share, in a cash and equity deal, paying Rs 100-150 crore in cash and a stake of 7-8 per cent in the Paramount Group to the Wadias, who own GoAir. But GoAir has denied all such reports of talks.
Source: Business Standard
Thursday, October 22, 2009
Air travel picks up again, cheers bleeding airlines
Indications from latest air travel bookings suggest that airlines saddled with losses totalling Rs 10,000 crore in 2008-09 and desperately short of funds could be looking at a revival.
The first fortnight of October witnessed a 35 per cent jump in online air ticket bookings compared with the same period last year and experts believe the uptick may extend to two or three quarters ahead. It was 28 per cent in the previous fortnight. "Growth would be sustainable this time. We are quiet upbeat about the future," said Ankur Bhatia, managing director, Amadeus India, the platform that handles more than 60 percent online air reservations in India.
Increased demand could help capacity utilisation in Jet Airways and Kingfisher Airlines, Bhatia said.
A rebound in business confidence, a revival in the stock market and a rise in industrial growth are among factors spurring increased air travel, in addition to festival season travel. Civil Aviation Minister Praful Patel told reporters in Mumbai last week that sentiments had improved to suggest recovery, but added that the pace may be slower than during the earlier rebound.
Source: Hindustan Times
The first fortnight of October witnessed a 35 per cent jump in online air ticket bookings compared with the same period last year and experts believe the uptick may extend to two or three quarters ahead. It was 28 per cent in the previous fortnight. "Growth would be sustainable this time. We are quiet upbeat about the future," said Ankur Bhatia, managing director, Amadeus India, the platform that handles more than 60 percent online air reservations in India.
Increased demand could help capacity utilisation in Jet Airways and Kingfisher Airlines, Bhatia said.
A rebound in business confidence, a revival in the stock market and a rise in industrial growth are among factors spurring increased air travel, in addition to festival season travel. Civil Aviation Minister Praful Patel told reporters in Mumbai last week that sentiments had improved to suggest recovery, but added that the pace may be slower than during the earlier rebound.
Source: Hindustan Times
Wednesday, October 21, 2009
Jet Airways, Air India line up holiday packages to woo customers
Private carrier Jet Airways and Air India (AI) have introduced attractive holiday packages at the onset of Diwali. While Jet has launched JetEscapes, which offer attractive packages to international and domestic destinations, Air India has 400 domestic and over ten international destinations on offer in their holiday packages this season. The move is aimed to spike up revenue figures for the airline. AI had raked in Rs 74 crore from sale of holiday packages in 2008.
Co-incidentally, both carriers had declining load factors in the previous months since their pilots struck work for four days. On the one hand, both the carriers want to improve yields and gain back customer confidence.
The move is termed as a marketing strategy to woo back fliers to the airline. JetEscapes offers attractive holiday packages beginning at Rs 13,000 onwards for destinations such as Alleppy, Leh and Shimla. Jet Airways chief commercial officer Sudheer Raghavan said, “JetEscapes is flexible, dynamic and assures instant co firmation of air and hotel arrangements.”
Meanwhile, AI has on offer over 400 comprehensive package options covering 150 cities in 22 states of the country and over 10 international destinations. A package normally includes return airfares, airport transfers, accommodation in standard 3-5 star hotels, meals and local sightseeing, all at economical prices.
Last year, AI sold 1,110 holiday packages in the first 20 days of May alone, fetching the airline Rs 8.5 crore. In April 2008, around 400 packages had been sold. In fiscal 2007-08, the airline earned a revenue of Rs 74.10 crore from the sale of 13,120 holiday packages.
Jet lost around $12 million in four days in the first week of September when it’s over 400 senior pilots struck work to protest against the dismissal of two of their colleagues for forming a union. Each passing day of the strike, the number of passenger came down to 22,000 from 24,000 to 7,000 on the last day of the strike. Similarly, even AI witnessed 10% dip in its passenger numbers in mid-September when its executive pilots went on ‘sick leave’ to protest against a cut in their salaries. The carrier flies nearly 25,000 passengers each day.
Industry observers said since most airlines have faced poor loads in the first quarter of this fiscal, other airlines may also announce attractive fares this season to gain load factors. The sector is also poised to post losses of over Rs 10,000 crore for the current financial year, according to industry estimates.
Source: The Financial Express
Co-incidentally, both carriers had declining load factors in the previous months since their pilots struck work for four days. On the one hand, both the carriers want to improve yields and gain back customer confidence.
The move is termed as a marketing strategy to woo back fliers to the airline. JetEscapes offers attractive holiday packages beginning at Rs 13,000 onwards for destinations such as Alleppy, Leh and Shimla. Jet Airways chief commercial officer Sudheer Raghavan said, “JetEscapes is flexible, dynamic and assures instant co firmation of air and hotel arrangements.”
Meanwhile, AI has on offer over 400 comprehensive package options covering 150 cities in 22 states of the country and over 10 international destinations. A package normally includes return airfares, airport transfers, accommodation in standard 3-5 star hotels, meals and local sightseeing, all at economical prices.
Last year, AI sold 1,110 holiday packages in the first 20 days of May alone, fetching the airline Rs 8.5 crore. In April 2008, around 400 packages had been sold. In fiscal 2007-08, the airline earned a revenue of Rs 74.10 crore from the sale of 13,120 holiday packages.
Jet lost around $12 million in four days in the first week of September when it’s over 400 senior pilots struck work to protest against the dismissal of two of their colleagues for forming a union. Each passing day of the strike, the number of passenger came down to 22,000 from 24,000 to 7,000 on the last day of the strike. Similarly, even AI witnessed 10% dip in its passenger numbers in mid-September when its executive pilots went on ‘sick leave’ to protest against a cut in their salaries. The carrier flies nearly 25,000 passengers each day.
Industry observers said since most airlines have faced poor loads in the first quarter of this fiscal, other airlines may also announce attractive fares this season to gain load factors. The sector is also poised to post losses of over Rs 10,000 crore for the current financial year, according to industry estimates.
Source: The Financial Express
Monday, October 19, 2009
Travel agents may get their pie from foreign airlines
The aviation regulator has ruled that foreign carriers should pay commission to ticketing agents, sounding the death knell for a fee-based system initiated by foreign airlines last November.
The decision by the Directorate General of Civil Aviation (DGCA) will benefit about 2,400 travel agents in the country as the 3% commission they used to receive from the airlines was much higher than what they charge travellers as transaction fee. This will also benefit the customer, who will escape paying the transaction fee, and may also force the agent to share a part of his commission.
“We have found that the foreign airlines’ decision to withdraw the commission system is not in compliance with the law,” said an official with the regulator. “In the past, Air India and Jet Airways had introduced zero-commission systems, but they had to reinstate the 3% commission to agents,” he said, requesting anonymity. In all, 14 foreign airlines, including Lufthansa, Air France, British Airways and Qatar Airlines, had resorted to a zero-commission regime last year and introduced a transaction fee-based model wherein the traveller pays a fee of Rs 250-Rs 5,000 per ticket to the agent, depending on the relative bargaining power of the parties.
More than 85% air travellers in the country book their tickets through travel agents. The percentage is even higher in the lucrative international air travel segment. The shift to the transaction fee model had, therefore, significantly reduced travel agents’ earnings.
Source: Economic Times
The decision by the Directorate General of Civil Aviation (DGCA) will benefit about 2,400 travel agents in the country as the 3% commission they used to receive from the airlines was much higher than what they charge travellers as transaction fee. This will also benefit the customer, who will escape paying the transaction fee, and may also force the agent to share a part of his commission.
“We have found that the foreign airlines’ decision to withdraw the commission system is not in compliance with the law,” said an official with the regulator. “In the past, Air India and Jet Airways had introduced zero-commission systems, but they had to reinstate the 3% commission to agents,” he said, requesting anonymity. In all, 14 foreign airlines, including Lufthansa, Air France, British Airways and Qatar Airlines, had resorted to a zero-commission regime last year and introduced a transaction fee-based model wherein the traveller pays a fee of Rs 250-Rs 5,000 per ticket to the agent, depending on the relative bargaining power of the parties.
More than 85% air travellers in the country book their tickets through travel agents. The percentage is even higher in the lucrative international air travel segment. The shift to the transaction fee model had, therefore, significantly reduced travel agents’ earnings.
Source: Economic Times
Thursday, October 15, 2009
SpiceJet plans to fly overseas next year
Low-cost carrier SpiceJet Airlines, promoted by a group of investors led by the Kansagra family and Delhi-based Ajay Singh, is working on a plan to start international operations next year, making it the third private Indian carrier after Jet Airways and Kingfisher to fly overseas.
The airline qualifies for international operations from June next year after it completes five years of domestic operations, the minimum stipulated by the government.
The airline plans to fly mainly to Saarc countries, south-east Asia and select west Asian routes, rather than long-haul routes such as London and New York as Jet and Kingfisher have done. "We are planning our international launch carefully and will fly only on routes that we think are under-served or have potential for more flights," says Sanjay Agarwal, chief executive officer, SpiceJet in an interview to Business Standard. "Agarwal explained that the airline would start operations in sectors in which SpiceJet's Boeing 737 fleet can fly. ’We do not plan have to lease aircraft exclusively for international operations," he said.
Source: Business Standard
The airline qualifies for international operations from June next year after it completes five years of domestic operations, the minimum stipulated by the government.
The airline plans to fly mainly to Saarc countries, south-east Asia and select west Asian routes, rather than long-haul routes such as London and New York as Jet and Kingfisher have done. "We are planning our international launch carefully and will fly only on routes that we think are under-served or have potential for more flights," says Sanjay Agarwal, chief executive officer, SpiceJet in an interview to Business Standard. "Agarwal explained that the airline would start operations in sectors in which SpiceJet's Boeing 737 fleet can fly. ’We do not plan have to lease aircraft exclusively for international operations," he said.
Source: Business Standard
Wednesday, October 14, 2009
SpiceJet says overseas flights depend on market condition
SpiceJet, the New Delhi-based low-cost carrier, is reviewing its overseas flight plans. The airline will be eligible for flying overseas in May 2010. According to the airline, the plan to go international will depend on the market scenario.
“We are more concerned about the yields and are still evaluating the viability. We will begin international operations only if it makes economic sense and not just because we become eligible to fly international from next year,” Mr Sanjay Aggarwal told Business Line. The Directorate General of Civil Aviation (DGCA) rule states that an airline should complete five years of domestic operations before it becomes eligible to fly to foreign destinations.
“We have filed an application with the DGCA for the regulator’s record that we will be completing the mandatory five years on May 23, 2010. May be in the next 2-3 months we will take a firm call on when to begin operations,” said Mr Aggarwal. Also, SpiceJet will get its 21st aircraft in June 2010, which will also meet the regulation of having a fleet of 20 aircraft before going overseas, he said.
SpiceJet stock closed 1.34 per cent down, at Rs 40.35, on the BSE on Monday. All will be Boeing 737s and it has no plans of ordering wide-body planes for international operations. Mr Aggarwal maintained that as and when the carrier flies overseas, it will retain its no-frill model.
On the routes the carrier is looking at, he said “wherever a Boeing 737 can fly”. Earlier, the airline had said it was examining options of going to Gulf and South-East Asian destinations.
He also said SpiceJet may not require additional funding for the expansions. “We are current on all our payments and have maintained costs at the lower side. Plus, we still have money in the bank, so there is no immediate requirement for cash,” he said.
Source: The Hindu Business Line
“We are more concerned about the yields and are still evaluating the viability. We will begin international operations only if it makes economic sense and not just because we become eligible to fly international from next year,” Mr Sanjay Aggarwal told Business Line. The Directorate General of Civil Aviation (DGCA) rule states that an airline should complete five years of domestic operations before it becomes eligible to fly to foreign destinations.
“We have filed an application with the DGCA for the regulator’s record that we will be completing the mandatory five years on May 23, 2010. May be in the next 2-3 months we will take a firm call on when to begin operations,” said Mr Aggarwal. Also, SpiceJet will get its 21st aircraft in June 2010, which will also meet the regulation of having a fleet of 20 aircraft before going overseas, he said.
SpiceJet stock closed 1.34 per cent down, at Rs 40.35, on the BSE on Monday. All will be Boeing 737s and it has no plans of ordering wide-body planes for international operations. Mr Aggarwal maintained that as and when the carrier flies overseas, it will retain its no-frill model.
On the routes the carrier is looking at, he said “wherever a Boeing 737 can fly”. Earlier, the airline had said it was examining options of going to Gulf and South-East Asian destinations.
He also said SpiceJet may not require additional funding for the expansions. “We are current on all our payments and have maintained costs at the lower side. Plus, we still have money in the bank, so there is no immediate requirement for cash,” he said.
Source: The Hindu Business Line
Monday, October 12, 2009
Jet Airways announces tour packages
Jet Airways has come out with all inclusive holiday packages starting Rs 13,000 per person to enable holidaymakers avail value for money deals. Jet Airways under its travel wing JetEscapes has announced over 650 packages to over 100 domestic and overseas destinations.
A tour package to Goa starts from Rs 13,000 per person for four days three nights while a trip to Colombo for three days and two nights would cost Rs 14,900 onwards per person on a twin-sharing basis.
Similarly, a six days five nights package to Kerala starts from Rs 20,500 per person and a three days two nights package to Kuala Lumpur starts from Rs 15,425 per person. These packages include airfare, air taxes, hotel accommodation, airport transfer, sightseeing and travel insurance. It does not include meals during the tour, the airline said.
“The new JetEscapes is flexible and real-time with instant confirmation of air, hotel and related land arrangements. This enables us to offer travellers complete holiday packages at very competitive prices across a range of price points,” said Sudheer Raghavan, Chief Commercial Officer, Jet Airways.
Raghavan said these packages offer travelers the flexibility to customise their travel and packages can be booked with hotel check-in - check-out dates that do not necessarily correspond with their flight dates, at no additional cost.
Source: Hindustan Times
A tour package to Goa starts from Rs 13,000 per person for four days three nights while a trip to Colombo for three days and two nights would cost Rs 14,900 onwards per person on a twin-sharing basis.
Similarly, a six days five nights package to Kerala starts from Rs 20,500 per person and a three days two nights package to Kuala Lumpur starts from Rs 15,425 per person. These packages include airfare, air taxes, hotel accommodation, airport transfer, sightseeing and travel insurance. It does not include meals during the tour, the airline said.
“The new JetEscapes is flexible and real-time with instant confirmation of air, hotel and related land arrangements. This enables us to offer travellers complete holiday packages at very competitive prices across a range of price points,” said Sudheer Raghavan, Chief Commercial Officer, Jet Airways.
Raghavan said these packages offer travelers the flexibility to customise their travel and packages can be booked with hotel check-in - check-out dates that do not necessarily correspond with their flight dates, at no additional cost.
Source: Hindustan Times
Friday, October 9, 2009
Jet Airways CEO resigns, old hand Kardassis back at the helm
India’s largest private airline, Jet Airways, has undergone top-level changes with its Chief Executive Officer (CEO) Wolfgang Prock-Schauer quitting the airline to join British Midland Plc (BMI) airline as its CEO.
Prock-Schauer who led Jet for nearly six years and helped in making it an international airline will be leaving the airline on October 15. Naresh Goyal, Jet’s chairman has appointed his old friend, advisor and Jet’s former CEO Nikos K Kardassis (52) as the acting CEO.
“We need to bring financial stability to the airline. In the coming months we will restructure the debt and increase the capital base by raising more funds. We have a good product and I need to continue what ever has been done in the past months,” Kardassis told Hindustan Times.
Kardassis was the airline’s CEO during its infancy, between 1994 and 1999. He had then left the organisation to be with his family. Kardassis, formerly with Merrill Lynch and General Electric joined back Jet 18 months ago and has been heading the Americas operations of the airline as senior vice-president. In addition, he has been advising Goyal on finance and strategy.
Kardassis takes over at a time when the 16-year-old airline is passing through a severe financial crisis amid a price war, a demand slump and a pilots’ unrest.
A confident Kardassis said that his immediate priority would be to bring financial stability and maintain continuity
Source: The Hindustan Times
Prock-Schauer who led Jet for nearly six years and helped in making it an international airline will be leaving the airline on October 15. Naresh Goyal, Jet’s chairman has appointed his old friend, advisor and Jet’s former CEO Nikos K Kardassis (52) as the acting CEO.
“We need to bring financial stability to the airline. In the coming months we will restructure the debt and increase the capital base by raising more funds. We have a good product and I need to continue what ever has been done in the past months,” Kardassis told Hindustan Times.
Kardassis was the airline’s CEO during its infancy, between 1994 and 1999. He had then left the organisation to be with his family. Kardassis, formerly with Merrill Lynch and General Electric joined back Jet 18 months ago and has been heading the Americas operations of the airline as senior vice-president. In addition, he has been advising Goyal on finance and strategy.
Kardassis takes over at a time when the 16-year-old airline is passing through a severe financial crisis amid a price war, a demand slump and a pilots’ unrest.
A confident Kardassis said that his immediate priority would be to bring financial stability and maintain continuity
Source: The Hindustan Times
Thursday, October 8, 2009
Airlines get rap for safety shortfalls
India's aviation regulator has asked Jet Airways (India) ite, Chennai-based Paramount Airways Pvt. Ltd and Gurgaon based MDLR Airlines Pvt. Ltd to explain the lack of proper safety infrastructure and procedures followed by them during operations.
The show-cause notices by the Directorate General of Civil Aviation (DGCA) were issued after several surveillance checks by the regulator since the start of the year as part of an audit by the US aviation regulator, the Federal Aviation Administration (FAA).
FAA completed its audit last month and maintained the highest safety level for India, abstaining from a downgrade that could have led to a complete freeze on the expansion of services to the US by Indian carriers.
The three carriers have been asked to explain various safety-related lapses, said a government official, who asked not to be named because of the sensitivity of the matter. Mint has also reviewed documents that list the infractions.
Paramount Airways confirmed the DGCA notice and said it was moving to address the anomalies.
"Whatever DGCA has identified, majority of them we have complied with and we have also given them a schedule of specified completion dates," a Paramount Airways spokesman said.
JetLite denied receiving any notice, while MDLR said it had sought time to make rectifications.
The show-cause notices don't necessarily make the airlines unsafe to fly, but show that mandatory safety procedures, a key part of their functioning, were not followed as per stated guidelines when the checks were conducted.
"We have been very very lucky," said Mohan Ranganathan, a Chennai-based air safety consultant.The audits show airlines were taking advantage of DGCA's manpower shortage to bypass rules, he said.
"These things will have serious ramifications from an insurance and legal point of view," Ranganathan said. "For example, if there is an incident or an accident and there is an American citizen on board who's life is involved, that airline is liable for serious lawsuits in US. And even for the others...the insurance policies say very clearly if any rule and regulation of the respective country is not followed, the policy is invalid." The regulator has asked JetLite to explain deficiencies in air safety infrastructure. Paramount Airways has been found wanting in around 69 areas of aircraft maintenance and lacking a proper permanent investigation board for airline incidents and accidents.
JetLite said no "show-cause notice" had been issued to it, and rejected the contention that there were deficiencies in the air safety infrastructure. "DGCA has officially accepted the JetLite Flight Safety infrastructure. All airlines are subject to audits and inspections in relation to surveillance and oversight by DGCA in the interest of safety," the carrier said in an email. "Minor observations pertaining to JetLite during audits have been cleared by DGCA."
Two separate checks on MDLR, which operates a single aircraft currently, found at least 10 deficiencies. DGCA found there were "no authorized trim staff, no despatch at the airport, no fluorescent jackets for walk around, no Jeppesen updates with pilots, no single-page checklist on board, no manuals available, no emergency procedures/response plan, inadequate knowledge of staff in ops (operations)".
"Yes we have been given a show-cause notice, several lacunae have been found. There was a lot of documentation (safety manuals and records), which were washed out when we moved terminals" in Delhi, said Koustav M. Dhar, chief operating officer of MDLR.
"We have requested 45 days' time to bring up our standards. We have asked DGCA to do a re-inspection after 45 days."
Jeppesen charts are required for aeronautical charting, navigation and flight planning. They are, for instance, used to identify the path and altitude to be taken when there's bad weather.
Ranganathan said the show cause notices disclosed "blatant violations", which can't be "given a waiver" by DGCA. "If they lack trained manpower, the safety department is non-functional and DGCA has to act," he said. "The extreme step is to ground the airline or, temporarily, permit them to outsource the safety operations with a definite time scale to implement the DGCA requirement," Ranganathan said.
DGCA found during its check of Paramount that only part of the Jeppesen updates were available on the flight. They were instead available only at the flight despatch department of the airline.
"What will they (pilots) do if there is a hijack, if there is a flight diversion due to bad weather?" Ranganathan asked. "You have to pay for every plate (of Jeppesen charts), so they are perhaps cutting costs."
Paramount didn't have a permanent investigation board, which is meant to inquire into accidents and incidents, report on their causes and identify methods to prevent recurrence. In the case of JetLite, one of the checks disclosed that a pilot was flying after his instrument rating expired. The instrument rating check is key for flights above 15,000 feet and is granted on a yearly basis.
Pilots cannot fly if their rating has expired. On another flight, a cabin crew member's dangerous goods training had expired.
Other carriers, including Air India, Kingfisher Airlines, GoAir, IndiGo, SpiceJet and Jet Airways, have also been asked to rectify procedural issues found during the DGCA checks.
Ranganathan said DGCA should make the implementation of regulations stricter and penalize carriers. "The threat of FAA downgrade does not exist now, but that is no reason to relax," he said. "It is up to new director general Nasim Zaidi to take proactive action."
Source: Mint
The show-cause notices by the Directorate General of Civil Aviation (DGCA) were issued after several surveillance checks by the regulator since the start of the year as part of an audit by the US aviation regulator, the Federal Aviation Administration (FAA).
FAA completed its audit last month and maintained the highest safety level for India, abstaining from a downgrade that could have led to a complete freeze on the expansion of services to the US by Indian carriers.
The three carriers have been asked to explain various safety-related lapses, said a government official, who asked not to be named because of the sensitivity of the matter. Mint has also reviewed documents that list the infractions.
Paramount Airways confirmed the DGCA notice and said it was moving to address the anomalies.
"Whatever DGCA has identified, majority of them we have complied with and we have also given them a schedule of specified completion dates," a Paramount Airways spokesman said.
JetLite denied receiving any notice, while MDLR said it had sought time to make rectifications.
The show-cause notices don't necessarily make the airlines unsafe to fly, but show that mandatory safety procedures, a key part of their functioning, were not followed as per stated guidelines when the checks were conducted.
"We have been very very lucky," said Mohan Ranganathan, a Chennai-based air safety consultant.The audits show airlines were taking advantage of DGCA's manpower shortage to bypass rules, he said.
"These things will have serious ramifications from an insurance and legal point of view," Ranganathan said. "For example, if there is an incident or an accident and there is an American citizen on board who's life is involved, that airline is liable for serious lawsuits in US. And even for the others...the insurance policies say very clearly if any rule and regulation of the respective country is not followed, the policy is invalid." The regulator has asked JetLite to explain deficiencies in air safety infrastructure. Paramount Airways has been found wanting in around 69 areas of aircraft maintenance and lacking a proper permanent investigation board for airline incidents and accidents.
JetLite said no "show-cause notice" had been issued to it, and rejected the contention that there were deficiencies in the air safety infrastructure. "DGCA has officially accepted the JetLite Flight Safety infrastructure. All airlines are subject to audits and inspections in relation to surveillance and oversight by DGCA in the interest of safety," the carrier said in an email. "Minor observations pertaining to JetLite during audits have been cleared by DGCA."
Two separate checks on MDLR, which operates a single aircraft currently, found at least 10 deficiencies. DGCA found there were "no authorized trim staff, no despatch at the airport, no fluorescent jackets for walk around, no Jeppesen updates with pilots, no single-page checklist on board, no manuals available, no emergency procedures/response plan, inadequate knowledge of staff in ops (operations)".
"Yes we have been given a show-cause notice, several lacunae have been found. There was a lot of documentation (safety manuals and records), which were washed out when we moved terminals" in Delhi, said Koustav M. Dhar, chief operating officer of MDLR.
"We have requested 45 days' time to bring up our standards. We have asked DGCA to do a re-inspection after 45 days."
Jeppesen charts are required for aeronautical charting, navigation and flight planning. They are, for instance, used to identify the path and altitude to be taken when there's bad weather.
Ranganathan said the show cause notices disclosed "blatant violations", which can't be "given a waiver" by DGCA. "If they lack trained manpower, the safety department is non-functional and DGCA has to act," he said. "The extreme step is to ground the airline or, temporarily, permit them to outsource the safety operations with a definite time scale to implement the DGCA requirement," Ranganathan said.
DGCA found during its check of Paramount that only part of the Jeppesen updates were available on the flight. They were instead available only at the flight despatch department of the airline.
"What will they (pilots) do if there is a hijack, if there is a flight diversion due to bad weather?" Ranganathan asked. "You have to pay for every plate (of Jeppesen charts), so they are perhaps cutting costs."
Paramount didn't have a permanent investigation board, which is meant to inquire into accidents and incidents, report on their causes and identify methods to prevent recurrence. In the case of JetLite, one of the checks disclosed that a pilot was flying after his instrument rating expired. The instrument rating check is key for flights above 15,000 feet and is granted on a yearly basis.
Pilots cannot fly if their rating has expired. On another flight, a cabin crew member's dangerous goods training had expired.
Other carriers, including Air India, Kingfisher Airlines, GoAir, IndiGo, SpiceJet and Jet Airways, have also been asked to rectify procedural issues found during the DGCA checks.
Ranganathan said DGCA should make the implementation of regulations stricter and penalize carriers. "The threat of FAA downgrade does not exist now, but that is no reason to relax," he said. "It is up to new director general Nasim Zaidi to take proactive action."
Source: Mint
Wednesday, October 7, 2009
Air India mid-air brawl: Pilot, flight purser suspended
State-run Air India on Tuesday suspended a pilot and a flight purser who were involved in a midair scuffle on Saturday aboard an international flight from Sharjah to Delhi, and put off duty the co-pilot and air hostess concerned.
"Yes, we have suspended the pilot and the flight purser and derostered the co-pilot and the air hostess concerned," a spokesperson of the airline said on Tuesday, adding an internal inquiry into the incident was still on.
The incident took place aboard the IC-884 flight that was also reportedly left unmanned during the mid-air scuffle that broke out between the pilots and cabin crew Saturday. But Air India Monday denied the flight remained unmanned during the scuffle.
The four were identified as Ranbir Arora, commander, Aditya Chopra, co-pilot, Amit Khanna, flight purser and air hostess Komal Singh.
The state-run airline grounded the pilots and the cabin crew, who were involved in the incident, after the Delhi Police registered a case of molestation against the pilots on a complaint by the air hostess.
The president of the Indian Commercial Pilot's Association (ICPA) Shailendra Singh spoke in favour of the pilots and said they were not at fault, and no person can barge into the cockpit and pick up a fight with the pilots.
"I have spoken to the pilot and the co-pilot. They had maintained there cool. There is a certain hierarchy in the cockpit that has to be followed," Singh told reporters here soon after the airline announced its action against the crew members.
The National Commission for Women has also formed a panel to probe the charges of assault levelled by the Air India air hostess against the two pilots after she filed a formal complaint on Monday.
"She came here and sat with me for six hours. She has filed a complaint with me. We have written to Air India to inquire into the matter and also informed them about the Supreme Court guidelines on sexual harassment at the workplace," commission chairperson Girija Vyas said.
The incident is understood to have originated in some verbal exchanges between the two sides during the pre-flight briefing session ahead of takeoff from Sharjah, the police said.
The Airbus A-320 from Sharjah was carrying 106 passengers and seven crew and had reached Lucknow when the matter was reported.
The case was registered here under Sections 323 (voluntarily causing hurt), 354 (assault or use of criminal force against a woman with the intent to outrage her modesty) and 34 (common intention) of the Indian Penal Code.
Source: The Times of India
"Yes, we have suspended the pilot and the flight purser and derostered the co-pilot and the air hostess concerned," a spokesperson of the airline said on Tuesday, adding an internal inquiry into the incident was still on.
The incident took place aboard the IC-884 flight that was also reportedly left unmanned during the mid-air scuffle that broke out between the pilots and cabin crew Saturday. But Air India Monday denied the flight remained unmanned during the scuffle.
The four were identified as Ranbir Arora, commander, Aditya Chopra, co-pilot, Amit Khanna, flight purser and air hostess Komal Singh.
The state-run airline grounded the pilots and the cabin crew, who were involved in the incident, after the Delhi Police registered a case of molestation against the pilots on a complaint by the air hostess.
The president of the Indian Commercial Pilot's Association (ICPA) Shailendra Singh spoke in favour of the pilots and said they were not at fault, and no person can barge into the cockpit and pick up a fight with the pilots.
"I have spoken to the pilot and the co-pilot. They had maintained there cool. There is a certain hierarchy in the cockpit that has to be followed," Singh told reporters here soon after the airline announced its action against the crew members.
The National Commission for Women has also formed a panel to probe the charges of assault levelled by the Air India air hostess against the two pilots after she filed a formal complaint on Monday.
"She came here and sat with me for six hours. She has filed a complaint with me. We have written to Air India to inquire into the matter and also informed them about the Supreme Court guidelines on sexual harassment at the workplace," commission chairperson Girija Vyas said.
The incident is understood to have originated in some verbal exchanges between the two sides during the pre-flight briefing session ahead of takeoff from Sharjah, the police said.
The Airbus A-320 from Sharjah was carrying 106 passengers and seven crew and had reached Lucknow when the matter was reported.
The case was registered here under Sections 323 (voluntarily causing hurt), 354 (assault or use of criminal force against a woman with the intent to outrage her modesty) and 34 (common intention) of the Indian Penal Code.
Source: The Times of India
Monday, October 5, 2009
Air India cuts fares up to 8% to woo flyers
With pilot strike coming to an end, Air India has come out with discounted fares to win back customers. The national carrier, which is limping back to normalcy after a four-day strike, said there will be a maximum of 8% cut in fares for three to six months, in different categories. The airline had lost around Rs 84 crore in cancellations during the strike period.
In a move similar to Jet Airways’ measures after its own pilots strike, Air India placed advertisements in national newspapers welcoming travellers back and offered discounts, where passengers can save up to Rs 3,000 in different plans.
Air India is offering schemes where a passenger can buy a four-coupon Economy class ticket for Rs 41,316 with a validity of three months for single user, a drop of 8% compared to the earlier fare. Similarly, an eight-coupon Economy class single user tickets can be bought for Rs 82,632 with a validity of six months.
The Maharaja, as the carrier is also called, has introduced different plans for corporate houses, where employees can buy corporate tickets in the Economy class with 12 coupons, for Rs 123,948 having six months validity, with multiple user facility. A 12-coupon Executive class multiple user ticket with a validity of six months will cost Rs 1,66,800. It means an employee can use at any date like an open ticket.
“A passenger can save around Rs 2,000-3,000 per coupon in the offerings,” said an AI spokesperson. “The tickets under these schemes are available for sale till October 31.” Lowest fares on domestic flights will be available to larger number of passengers, as the number of seats has been increased in the reservation system, he added.
Recently, Jet had offered a 50% discount on total fare (economy class) on all domestic flights across Jet Airways and Jet Konnect, too woo back customers who went to competition due to the pilots strike.
The measures, however are not likely to benefit the carrier in the long run, while they may increase load factor immediately, say analysts. The company posted losses of Rs 7,200 crore in the previous fiscal year. With borrowings of Rs 15,000 crore, the cash-strapped carrier has asked for loan and equity infusion from the government. Its current equity capital stands at Rs145 crore.
Source: The Economic Times
In a move similar to Jet Airways’ measures after its own pilots strike, Air India placed advertisements in national newspapers welcoming travellers back and offered discounts, where passengers can save up to Rs 3,000 in different plans.
Air India is offering schemes where a passenger can buy a four-coupon Economy class ticket for Rs 41,316 with a validity of three months for single user, a drop of 8% compared to the earlier fare. Similarly, an eight-coupon Economy class single user tickets can be bought for Rs 82,632 with a validity of six months.
The Maharaja, as the carrier is also called, has introduced different plans for corporate houses, where employees can buy corporate tickets in the Economy class with 12 coupons, for Rs 123,948 having six months validity, with multiple user facility. A 12-coupon Executive class multiple user ticket with a validity of six months will cost Rs 1,66,800. It means an employee can use at any date like an open ticket.
“A passenger can save around Rs 2,000-3,000 per coupon in the offerings,” said an AI spokesperson. “The tickets under these schemes are available for sale till October 31.” Lowest fares on domestic flights will be available to larger number of passengers, as the number of seats has been increased in the reservation system, he added.
Recently, Jet had offered a 50% discount on total fare (economy class) on all domestic flights across Jet Airways and Jet Konnect, too woo back customers who went to competition due to the pilots strike.
The measures, however are not likely to benefit the carrier in the long run, while they may increase load factor immediately, say analysts. The company posted losses of Rs 7,200 crore in the previous fiscal year. With borrowings of Rs 15,000 crore, the cash-strapped carrier has asked for loan and equity infusion from the government. Its current equity capital stands at Rs145 crore.
Source: The Economic Times
Thursday, October 1, 2009
Air India plans to woo back passengers
For air passengers who have been haggling with the travel agents over high fares and low seat availability for the last four days due to Air India (AI) crisis – it is time to breathe easy.
The national carrier is working on special discount offers to woo back its lost passengers. “Yes, we are going to announce special discounts for our passengers. We are working on the details as in to what extent and which routes these discounts should be offered. The minimum discount will be 10 per cent,” a senior AI official, who did not wish to be named, said.
The carrier has lost over 50 per cent of its passengers in the five days of strike. It had stopped bookings from Monday night which opened only on Wednesday afternoon.
The focus is now to add new passengers. “People who were planning to travel immediately must have cancelled their bookings and must have got air tickets of some other carriers. The discounted fares will help us gain back passengers who are going to fly in the next few days,” the AI official said.
The passenger traffic for AI has come down to about 14,000 from about 33,000 in the normal days. The offer – likely to be announced by Thursday – will not have much impact on international bookings though.
“The international bookings are done much in advance. Once a passenger has cancelled his booking, it is unlikely that he will book his tickets before a month. So, it is difficult to win back those passengers,” he said.
The carrier has lost about Rs 130 crore in the last five days due to pilots strike. The huge cancellations in the booking have give equally significant traffic to the private carriers. While the usual seat factor for these airlines varies between 70-80 per cent during festival season, this went up to 90 per cent due to AI cancellations. “AI will have to offer special fares to attract customers. The carrier has lost about 70,000 passengers in the last five days. They will have to take initiatives to win them back,” Ankur Bhatia, executive director of Bird Group said.
It restarted operating long haul flights including Delhi-Frankfurt-Chicago, Mumbai-Franfurt-Newark, Mumbai-London, Delhi-London, Amritsar-London-Toronto and Ahmedabad-Frankfurt. For domestic routes, it has drawn up a flight restoration plan. It cancelled 111 flights on Wednesday in advance due to non availability of pilots. The flights will be gradually reinstated.
Source: Financial Chronicle
The national carrier is working on special discount offers to woo back its lost passengers. “Yes, we are going to announce special discounts for our passengers. We are working on the details as in to what extent and which routes these discounts should be offered. The minimum discount will be 10 per cent,” a senior AI official, who did not wish to be named, said.
The carrier has lost over 50 per cent of its passengers in the five days of strike. It had stopped bookings from Monday night which opened only on Wednesday afternoon.
The focus is now to add new passengers. “People who were planning to travel immediately must have cancelled their bookings and must have got air tickets of some other carriers. The discounted fares will help us gain back passengers who are going to fly in the next few days,” the AI official said.
The passenger traffic for AI has come down to about 14,000 from about 33,000 in the normal days. The offer – likely to be announced by Thursday – will not have much impact on international bookings though.
“The international bookings are done much in advance. Once a passenger has cancelled his booking, it is unlikely that he will book his tickets before a month. So, it is difficult to win back those passengers,” he said.
The carrier has lost about Rs 130 crore in the last five days due to pilots strike. The huge cancellations in the booking have give equally significant traffic to the private carriers. While the usual seat factor for these airlines varies between 70-80 per cent during festival season, this went up to 90 per cent due to AI cancellations. “AI will have to offer special fares to attract customers. The carrier has lost about 70,000 passengers in the last five days. They will have to take initiatives to win them back,” Ankur Bhatia, executive director of Bird Group said.
It restarted operating long haul flights including Delhi-Frankfurt-Chicago, Mumbai-Franfurt-Newark, Mumbai-London, Delhi-London, Amritsar-London-Toronto and Ahmedabad-Frankfurt. For domestic routes, it has drawn up a flight restoration plan. It cancelled 111 flights on Wednesday in advance due to non availability of pilots. The flights will be gradually reinstated.
Source: Financial Chronicle
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