The country’s first amphibious aircraft, which will start services in the Andamans by the end of this week, will later be introduced in the other two tourist hotspots as well.
The seaplane has been procured by helicopter company Pawan Hans. The plane can take off from and touch down on both land and sea. Civil aviation minister Praful Patel inaugurated the service on Monday to promote tourism and passenger service. By the end of the week, the plane will have started services to three spots on the islands. The plan to operate seaplanes in India is about three years old.
The seaplane service will connect Port Blair with Havelock and subsequently other islands in North Andaman to promote tourism. In Port Blair the seaplane is proposed to operate from the airport and in Havelock and Diglipur in the identified waterdrome. To facilitate safe operations, facilities for ferrying passengers from the shore to the pontoons, sanitization of the waterdrome before take off and landing, speed boat of ten passenger capacity and one stand-by boat (inflatable Gemini boat) and one floating jetty (pontoon) each in the above locations have been placed.
The seaplane operations are being introduced as a major tourist attraction. Seaplanes will also be introduced in other areas of India such as Lakshadweep, Goa, Odisha, etc. Government of India has allowed 100 per cent FDI in this sector.
Source: Travel Techie
Tuesday, December 28, 2010
Monday, December 13, 2010
Storm strands Israel-bound passengers in Cyprus
The winter storm engulfing Israel today has disrupted air travel to Israel. A Lufthansa flight from Frankfurt to Tel Aviv was diverted to Larnaca in Cyprus when winds at Ben Gurion Airport prevented the plane from landing.
Lufthansa said that if the plane cannot continue to Israel within the next few hours, it will have to return to Germany with its passengers, until weather conditions at Ben Gurion Airport permit safe landing.
As a consequence, this afternoon's return Lufthansa flight from Tel Aviv to Frankfurt has been cancelled.
El Al Israel Airlines Ltd. (TASE: ELAL) said that its flights are operating as scheduled, despite the severe weather.
Source: Globes
Lufthansa said that if the plane cannot continue to Israel within the next few hours, it will have to return to Germany with its passengers, until weather conditions at Ben Gurion Airport permit safe landing.
As a consequence, this afternoon's return Lufthansa flight from Tel Aviv to Frankfurt has been cancelled.
El Al Israel Airlines Ltd. (TASE: ELAL) said that its flights are operating as scheduled, despite the severe weather.
Source: Globes
Thursday, December 9, 2010
WestJet, British Airways become partners
WestJet Airlines Ltd. has struck a strategic partnership with British Airways PLC that will be implemented in early 2011, the company said Wednesday.
The Calgary-based carrier has had a preliminary deal in place with BA since 2009.
But both sides said Wednesday that they have hammered out the fine details of the new inbound interline agreement.
"Yes, we do have a deal with BA -- but seats won't go on sale until early (in the) new year," Robert Palmer, WestJet spokesman, said in an email.
The agreement will allow BA to seamlessly transfer its passengers and luggage onto WestJet aircraft and carry them on to destinations in Canada using one ticket. West-Jet will not be able to sell tickets to Britain initially, and the marketing and sales would be BA's responsibility.
WestJet has a similar arrangement with Air France/ KLM, American Airlines, and China Airlines.
It also has a full code-share agreement with Cathay Pacific Airways,
WestJet said it did not expect the near-term revenue generated from its partnership with BA to be "material."
Separately, WestJet denied on Wednesday it had entered into talks with Dubai-based Emirates on an alliance.
The Calgary Herald reported earlier this week that WestJet was in discussions with Emirates as part of plans by Canada's No. 2 carrier to expand globally.
The report came at a time when relations between Canada's Conservative government and Emirates' home country, the United Arab Emirates, are strained because of a dispute over airline landing rights.
Source: Ottawa Citizen
The Calgary-based carrier has had a preliminary deal in place with BA since 2009.
But both sides said Wednesday that they have hammered out the fine details of the new inbound interline agreement.
"Yes, we do have a deal with BA -- but seats won't go on sale until early (in the) new year," Robert Palmer, WestJet spokesman, said in an email.
The agreement will allow BA to seamlessly transfer its passengers and luggage onto WestJet aircraft and carry them on to destinations in Canada using one ticket. West-Jet will not be able to sell tickets to Britain initially, and the marketing and sales would be BA's responsibility.
WestJet has a similar arrangement with Air France/ KLM, American Airlines, and China Airlines.
It also has a full code-share agreement with Cathay Pacific Airways,
WestJet said it did not expect the near-term revenue generated from its partnership with BA to be "material."
Separately, WestJet denied on Wednesday it had entered into talks with Dubai-based Emirates on an alliance.
The Calgary Herald reported earlier this week that WestJet was in discussions with Emirates as part of plans by Canada's No. 2 carrier to expand globally.
The report came at a time when relations between Canada's Conservative government and Emirates' home country, the United Arab Emirates, are strained because of a dispute over airline landing rights.
Source: Ottawa Citizen
Thursday, November 18, 2010
Goa film fest boosting our brand, says Kingfisher
International Film Festival of India (IFFI), held at Goa every year, has given respectability to 'Brand Kingfisher', a senior company official said Wednesday.
'We are market leaders in Goa. IFFI, in turn, adds respectability to 'Brand Kingfisher',' divisional vice president of UB (United Breweries) Group Govind Tiwari said.
Kingfisher has been associated with IFFI ever since the festival was shifted to Goa six years ago.
'We have been associated with the IFFI for the last six years and we are very happy with our partnership. We want to take it to the next level. It is a very decent branding,' Tiwari said.
Kingfisher is one of India's largest selling beers, with a market share in excess of 30 percent.
As an associate sponsor for the IFFI, 'Brand Kingfisher' will not only showcase its spirits at numerous lounges at the venue in Panaji, but also have a special 'Kingfisher Village'. It will also chip in with domestic air travel sponsorships.
'Domestically, we have tied up with Kingfisher Airlines. They will be flying in delegates from different parts of the country to Goa,' said Manoj Srivastava, chief executive officer of Entertainment Society of Goa (ESG), one of the hosts of the film festival.
The group provided nearly Rs.50 lakh in sponsorship, he added.
A popular tourist destination, Goa has over the years emerged as a high profile showcase destination for various lifestyle brands.
UB Group's chairman Vijay Mallya also owns a bungalow - christened 'Kingfisher Villa' - in the beach village of Candolim, 20 km from here.
The 41st edition of IFFI will be held from Nov 22 to December 2.
Source: Sify News
'We are market leaders in Goa. IFFI, in turn, adds respectability to 'Brand Kingfisher',' divisional vice president of UB (United Breweries) Group Govind Tiwari said.
Kingfisher has been associated with IFFI ever since the festival was shifted to Goa six years ago.
'We have been associated with the IFFI for the last six years and we are very happy with our partnership. We want to take it to the next level. It is a very decent branding,' Tiwari said.
Kingfisher is one of India's largest selling beers, with a market share in excess of 30 percent.
As an associate sponsor for the IFFI, 'Brand Kingfisher' will not only showcase its spirits at numerous lounges at the venue in Panaji, but also have a special 'Kingfisher Village'. It will also chip in with domestic air travel sponsorships.
'Domestically, we have tied up with Kingfisher Airlines. They will be flying in delegates from different parts of the country to Goa,' said Manoj Srivastava, chief executive officer of Entertainment Society of Goa (ESG), one of the hosts of the film festival.
The group provided nearly Rs.50 lakh in sponsorship, he added.
A popular tourist destination, Goa has over the years emerged as a high profile showcase destination for various lifestyle brands.
UB Group's chairman Vijay Mallya also owns a bungalow - christened 'Kingfisher Villa' - in the beach village of Candolim, 20 km from here.
The 41st edition of IFFI will be held from Nov 22 to December 2.
Source: Sify News
Tuesday, November 2, 2010
Air India now flies non-stop to Canada
With the introduction of its daily, non-stop Toronto-Delhi flight from October 31, Air India now flies non-stop to India from all its destinations in North America.
While India's national carrier introduced non-stop flights from three US destinations - Newark, New York and Chicago - last year, Toronto was put on the non-stop route Sunday. The 14-hour, non-stop flight will depart from Toronto's Pearson International Airport at 11.50 a.m. and arrive in Delhi's Indira Gandhi International Airport at 11.45 am the next day.
Previously, four Toronto-Amritsar flights and three Toronto-Delhi flights used to stop over in London for over two hours.
"With Air India introducing the phenomenal Boeing 777-300ER planes and making New Delhi as its international hub, introduction of non-stop flights from Canada is part of new policies,'' an Air Indian representative in Toronto told IANS Monday.
From Delhi's new terminal, which will serve as Air India's new hub, passengers from Canada will have connecting flights to major Indian cities, including Mumbai, Chennai, Hyderabad, Bangalore and Kolkata.
"Whereas previously passengers from Canada had connections to only two Indian cities (Delhi and Amritsar), now they will have connections to many major cities in the country. Their baggage will be checked in Toronto and quickly shifted to connecting flights in Delhi so that they reach their onward destination quickly,'' the representative said.
Air India expects a jump in its traffic from Canada because of the convenient departure and arrival time of its non-stop flights.
The introduction of daily non-flights to India is another milestone for the national carrier which resumed its Canadian operations in 2005 after a break of two decades.
Air India had suspended its flights to Canada in June 1985 after the bombing of the Kanishka Flights 182 from Montreal to Delhi.
The bombing, which was plotted by Khalistani militants who wanted to avenge the Indian army action at the Golden Temple to flush out Bhindranwale and his men, killed all 329 passengers on board.
Jet Airways is another Indian carrier which operates Toronto-Delhi flights via its European hub at Brussels.
Source: NDTV
While India's national carrier introduced non-stop flights from three US destinations - Newark, New York and Chicago - last year, Toronto was put on the non-stop route Sunday. The 14-hour, non-stop flight will depart from Toronto's Pearson International Airport at 11.50 a.m. and arrive in Delhi's Indira Gandhi International Airport at 11.45 am the next day.
Previously, four Toronto-Amritsar flights and three Toronto-Delhi flights used to stop over in London for over two hours.
"With Air India introducing the phenomenal Boeing 777-300ER planes and making New Delhi as its international hub, introduction of non-stop flights from Canada is part of new policies,'' an Air Indian representative in Toronto told IANS Monday.
From Delhi's new terminal, which will serve as Air India's new hub, passengers from Canada will have connecting flights to major Indian cities, including Mumbai, Chennai, Hyderabad, Bangalore and Kolkata.
"Whereas previously passengers from Canada had connections to only two Indian cities (Delhi and Amritsar), now they will have connections to many major cities in the country. Their baggage will be checked in Toronto and quickly shifted to connecting flights in Delhi so that they reach their onward destination quickly,'' the representative said.
Air India expects a jump in its traffic from Canada because of the convenient departure and arrival time of its non-stop flights.
The introduction of daily non-flights to India is another milestone for the national carrier which resumed its Canadian operations in 2005 after a break of two decades.
Air India had suspended its flights to Canada in June 1985 after the bombing of the Kanishka Flights 182 from Montreal to Delhi.
The bombing, which was plotted by Khalistani militants who wanted to avenge the Indian army action at the Golden Temple to flush out Bhindranwale and his men, killed all 329 passengers on board.
Jet Airways is another Indian carrier which operates Toronto-Delhi flights via its European hub at Brussels.
Source: NDTV
Friday, October 1, 2010
Kingfisher Airlines hints at job cuts
Kingfisher Airlines is in the process of pruning workforce and the number of expat pilots to offset mounting costs. However, the airline said it would hire more Indian pilots.
"Reducing workforce is an attempt to bring in structural changes without any large-scale layoffs. There are several employees on our rolls whose presence in the organisation will be reviewed," said Vijay Mallya, chairman, UB Group.
As part of the cost reduction exercise, Kingfisher had cut non-fuel costs to the extent of Rs 530 crore during 2009-10 , compared to the previous fiscal. Kingfisher plans to fly more flights on international routes to take on competition.
"We are looking at applying for more routes. SpiceJet is eligible to fly overseas while Indigo will get the eligibility next year. Before they come in and grab additional bilateral rights, we want to make sure Kingfisher has already secured these rights," said Mallya at the company's AGM here on Thursday.
Sanjay Aggarwal is the new CEO for Kingfisher Airlines
Sanjay Aggarwal has been appointed CEO of Kingfisher Airlines. Aggarwal had quit as chief executive of SpiceJet after media baron Kalanithi Maran bought a 37.7% stake in the low-cost airline.
Source: Times of India
"Reducing workforce is an attempt to bring in structural changes without any large-scale layoffs. There are several employees on our rolls whose presence in the organisation will be reviewed," said Vijay Mallya, chairman, UB Group.
As part of the cost reduction exercise, Kingfisher had cut non-fuel costs to the extent of Rs 530 crore during 2009-10 , compared to the previous fiscal. Kingfisher plans to fly more flights on international routes to take on competition.
"We are looking at applying for more routes. SpiceJet is eligible to fly overseas while Indigo will get the eligibility next year. Before they come in and grab additional bilateral rights, we want to make sure Kingfisher has already secured these rights," said Mallya at the company's AGM here on Thursday.
Sanjay Aggarwal is the new CEO for Kingfisher Airlines
Sanjay Aggarwal has been appointed CEO of Kingfisher Airlines. Aggarwal had quit as chief executive of SpiceJet after media baron Kalanithi Maran bought a 37.7% stake in the low-cost airline.
Source: Times of India
Wednesday, September 1, 2010
Airlines may not reduce fares despite ATF cut
Domestic air carriers do not plan to lower air fares despite state-owned oil companies slashing rates of jet fuel by 4% on Tuesday. The aviation turbine fuel (ATF) rates in Delhi will come down by Rs 1,715 per kilolitre (kl), or 4.09%, to Rs 40,138 per kl from midnight Tuesday, said an official of Indian Oil — the nation’s largest fuel retailer.
In Mumbai, the price of jet fuel will come down by Rs 1,800, or 4.16%, to Rs 41,388 per kl. Jet fuel constitutes about 40% of an airline’s operating cost. “We will not cut air fares at this point of time because it just negates the last rises,” said SpiceJet’s chief commercial officer Samyukth Sridharan.
This is the first reduction in rates since July, on softening of international oil prices, and follows two successive rise in prices on August 1 and August 16. ATF rates have gone up on 10 occasions since March. Jet fuel in Delhi was priced at Rs 37,982 per kl in the second half of February before international oil rates started firming up, resulting in an increase in domestic rates.
When contacted, a spokesperson of Kingfisher Airlines said: “We will evaluate the impact and then take a call.” National-carrier Air India, also ruled out any cut in air fares with the dip in ATF prices. “ATF will keep moving up and down. If airlines don’t increase prices when ATF rates go up, how can we reduce now,” said an official spokesperson.
Sector analysts also think it is unfair to expect airlines to pass on the ATF rate cut to passengers. “If they are not cutting down ticket prices in line with the ATF prices, it is fair because the industry is just coming out of the red. It is not feasible for them now,” said global consulting firm KPMG’s director (Aerospace and Defence) Amber Dubey.
IOC, BPCL and HPCL revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight. Tuesday’s price cut is only the third this fiscal, the previous reductions being on June 1 and July 16.
In Kolkata jet fuel price will come down by Rs 1,799 to Rs 48,462 per kl, while in Chennai, it will dip to Rs 44,397 per kl from Rs 46,255 per kl.
Source: Economic Times
In Mumbai, the price of jet fuel will come down by Rs 1,800, or 4.16%, to Rs 41,388 per kl. Jet fuel constitutes about 40% of an airline’s operating cost. “We will not cut air fares at this point of time because it just negates the last rises,” said SpiceJet’s chief commercial officer Samyukth Sridharan.
This is the first reduction in rates since July, on softening of international oil prices, and follows two successive rise in prices on August 1 and August 16. ATF rates have gone up on 10 occasions since March. Jet fuel in Delhi was priced at Rs 37,982 per kl in the second half of February before international oil rates started firming up, resulting in an increase in domestic rates.
When contacted, a spokesperson of Kingfisher Airlines said: “We will evaluate the impact and then take a call.” National-carrier Air India, also ruled out any cut in air fares with the dip in ATF prices. “ATF will keep moving up and down. If airlines don’t increase prices when ATF rates go up, how can we reduce now,” said an official spokesperson.
Sector analysts also think it is unfair to expect airlines to pass on the ATF rate cut to passengers. “If they are not cutting down ticket prices in line with the ATF prices, it is fair because the industry is just coming out of the red. It is not feasible for them now,” said global consulting firm KPMG’s director (Aerospace and Defence) Amber Dubey.
IOC, BPCL and HPCL revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight. Tuesday’s price cut is only the third this fiscal, the previous reductions being on June 1 and July 16.
In Kolkata jet fuel price will come down by Rs 1,799 to Rs 48,462 per kl, while in Chennai, it will dip to Rs 44,397 per kl from Rs 46,255 per kl.
Source: Economic Times
Tuesday, August 17, 2010
Growth before rain for Jet Airways in July
Jet Airways has posted strong growth in both international and domestic passenger traffic for July 2010, the airline recently announced.
According to the airline, the growth is due to an improvement in global business and holiday passenger traffic to overseas destinations. Jet Airways achieved seat factors of over 83.1 percent for its international operations, with 27.8 percent growth in international revenue passengers - equating to 389,000 people - in July 2010 compared to the same period in 2009.
Similar growth was posted in the airline's domestic operations, with 782,000 domestic revenue passengers in July 2010 at a seat factor of 73.8 percent. This is particularly strong growth and augurs well for the remainder of the year, given the impending monsoonal season.
"The organisation's strong performance for the tenth consecutive month highlights that we are the preferred airline carrier both internationally and in India for our guests," Jet Airways CEO Nikos Kardassis said.
"Jet Airways has retained the leadership position in an increasingly competitive market thanks to several initiatives such as constant product and service innovation, newly introduced codeshares, improved On-Time Performance, all of which has manifested itself in superior service quality, greater reliability and enhanced connectivity for our guests."
JetLite, the wholly-owned subsidiary of Jet Airways, posted a 16 percent growth in revenue passengers, carrying over 327,000 passengers in July 2010. Improved services and timing reliability contributed to an encouraging seat factor of 76.8 percent, and continued the offshoot's penetration into the value carrier segment.
Jet Airways currently operates a fleet of 90 aircraft, with one of the youngest aircraft fleet in the world.
Source: eTravelBlackboard
According to the airline, the growth is due to an improvement in global business and holiday passenger traffic to overseas destinations. Jet Airways achieved seat factors of over 83.1 percent for its international operations, with 27.8 percent growth in international revenue passengers - equating to 389,000 people - in July 2010 compared to the same period in 2009.
Similar growth was posted in the airline's domestic operations, with 782,000 domestic revenue passengers in July 2010 at a seat factor of 73.8 percent. This is particularly strong growth and augurs well for the remainder of the year, given the impending monsoonal season.
"The organisation's strong performance for the tenth consecutive month highlights that we are the preferred airline carrier both internationally and in India for our guests," Jet Airways CEO Nikos Kardassis said.
"Jet Airways has retained the leadership position in an increasingly competitive market thanks to several initiatives such as constant product and service innovation, newly introduced codeshares, improved On-Time Performance, all of which has manifested itself in superior service quality, greater reliability and enhanced connectivity for our guests."
JetLite, the wholly-owned subsidiary of Jet Airways, posted a 16 percent growth in revenue passengers, carrying over 327,000 passengers in July 2010. Improved services and timing reliability contributed to an encouraging seat factor of 76.8 percent, and continued the offshoot's penetration into the value carrier segment.
Jet Airways currently operates a fleet of 90 aircraft, with one of the youngest aircraft fleet in the world.
Source: eTravelBlackboard
Monday, August 16, 2010
Praful Patel, aviation minister, doesn't fly Air India?
This would definitely not be music to the ears of the cash-strapped Air India.
Union Civil Aviation Minister Praful Patel, who had been making a strong case for reviving the national carrier, has been patronising the number one rival of the airlines instead.
Patel chose to fly Kingfisher Airlines about 70 per cent more than Air India for all domestic air travels during the last one year, it has been learnt.
The loss-making national carrier has been struggling to pay salary to its 31,000 staff. It posted a net loss of Rs. 5,200 crore in 2008-09 and is expected to lose another Rs. 5,400 crore in the fiscal ended March 2010.
In fact, in July 2009, the Finance Ministry had ordered all Central government employees to fly only on the state-owned flag carrier for their official travel - both domestic and international.
The order was issued to shore up revenue streams for the cash-strapped Air India and to lend confidence to a clutch of lenders the airlines had planned to tap for medium term loans.
"For travel to stations not connected by AI, officials may travel by AI to the point closest to their eventual destination, beyond which they may utilise the services of another airline, which should also preferably be an alliance partner of the national carrier," the order stated.
Patel, however, chose to fly the number one private airlines for most of his domestic travels undertaken during the period June 1, 2009 to July 2, 2010.
"I am the Union Civil Aviation Minister and not the minister in-charge for Air India. As a minister, it is not bounding upon me to fly only one particular airline. I fly according to my convenience," said Patel.
When asked about his claims of reviving ailing airline, he said, "I'm not only minister for Indian Airlines, but for the entire Indian aviation industry. So I can fly any airlines depending on my schedule and availability of flight."
The details were revealed by the Ministry of Civil Aviation in response to a Right to Information plea filed by Jagjit Singh, a Central government employee himself.
Singh had sought to know the full details of the air travels undertaken by Patel - both domestic and international.
Out of the total 41 domestic flights between Delhi and Mumbai, Patel has flown Kingfisher 26 times. "It is intriguing that the minister who stresses the need for revival of the national carrier himself chooses to ignore it," said Singh.
He pointed out that Patel incurred Rs. 5.97 lakh on his travels by the airlines owned by Vijay Mallya's UB group. "Only Rs. 2.36 lakh went to the Indian Airlines," he added.
Patel also undertook five international travels during the period for which information was sought. Out of the five flights that the minister took to Paris and London, Istanbul, Dubai, USA and UK and Germany and UK, he flew by Air India on two occasions. The details of the other three were not given by the ministry, stating bills for the same were yet to be cleared.
The National Aviation Company of India Ltd (Nacil), which runs AI, is facing a financial crisis after its borrowings rose sharply to Rs. 15,241 crore in June 2009 from Rs. 6,550 crore in November 2007. A part of the borrowings was for buying new aircraft.
The merged company inherited an order placed in 2005 for 111 planes -- 68 Boeing and 43 Airbus --valued at nearly $15 billion at list prices.
The central government in February this year had approved an equity infusion of Rs. 800 crore for the ailing carrier in two instalments to tide over the cash flow problem and finance fleet acquisition plans.
The airline was also waiting for a Cabinet nod to raise its working capital by Rs. 1,000 crore. Currently, the airline's working capital is Rs. 17,000 crore.
Source: NDTV
Union Civil Aviation Minister Praful Patel, who had been making a strong case for reviving the national carrier, has been patronising the number one rival of the airlines instead.
Patel chose to fly Kingfisher Airlines about 70 per cent more than Air India for all domestic air travels during the last one year, it has been learnt.
The loss-making national carrier has been struggling to pay salary to its 31,000 staff. It posted a net loss of Rs. 5,200 crore in 2008-09 and is expected to lose another Rs. 5,400 crore in the fiscal ended March 2010.
In fact, in July 2009, the Finance Ministry had ordered all Central government employees to fly only on the state-owned flag carrier for their official travel - both domestic and international.
The order was issued to shore up revenue streams for the cash-strapped Air India and to lend confidence to a clutch of lenders the airlines had planned to tap for medium term loans.
"For travel to stations not connected by AI, officials may travel by AI to the point closest to their eventual destination, beyond which they may utilise the services of another airline, which should also preferably be an alliance partner of the national carrier," the order stated.
Patel, however, chose to fly the number one private airlines for most of his domestic travels undertaken during the period June 1, 2009 to July 2, 2010.
"I am the Union Civil Aviation Minister and not the minister in-charge for Air India. As a minister, it is not bounding upon me to fly only one particular airline. I fly according to my convenience," said Patel.
When asked about his claims of reviving ailing airline, he said, "I'm not only minister for Indian Airlines, but for the entire Indian aviation industry. So I can fly any airlines depending on my schedule and availability of flight."
The details were revealed by the Ministry of Civil Aviation in response to a Right to Information plea filed by Jagjit Singh, a Central government employee himself.
Singh had sought to know the full details of the air travels undertaken by Patel - both domestic and international.
Out of the total 41 domestic flights between Delhi and Mumbai, Patel has flown Kingfisher 26 times. "It is intriguing that the minister who stresses the need for revival of the national carrier himself chooses to ignore it," said Singh.
He pointed out that Patel incurred Rs. 5.97 lakh on his travels by the airlines owned by Vijay Mallya's UB group. "Only Rs. 2.36 lakh went to the Indian Airlines," he added.
Patel also undertook five international travels during the period for which information was sought. Out of the five flights that the minister took to Paris and London, Istanbul, Dubai, USA and UK and Germany and UK, he flew by Air India on two occasions. The details of the other three were not given by the ministry, stating bills for the same were yet to be cleared.
The National Aviation Company of India Ltd (Nacil), which runs AI, is facing a financial crisis after its borrowings rose sharply to Rs. 15,241 crore in June 2009 from Rs. 6,550 crore in November 2007. A part of the borrowings was for buying new aircraft.
The merged company inherited an order placed in 2005 for 111 planes -- 68 Boeing and 43 Airbus --valued at nearly $15 billion at list prices.
The central government in February this year had approved an equity infusion of Rs. 800 crore for the ailing carrier in two instalments to tide over the cash flow problem and finance fleet acquisition plans.
The airline was also waiting for a Cabinet nod to raise its working capital by Rs. 1,000 crore. Currently, the airline's working capital is Rs. 17,000 crore.
Source: NDTV
Friday, July 30, 2010
SC refuses to stay Kingfisher Airlines' plea against CCI probe
The Supreme Court today declined to stay the Bombay High Court order that directed Vijay Mallya-promoted Kingfisher Airlines to co-operate with the fair trade regulator CCI.
A bench headed by Chief Justice S H Kapadia said that they are hearing a petition by the Competition Commission of India (CCI) regarding its powers to initiate an investigation against a company on the complaints of a rival.
Kingfisher Airlines had moved the Supreme Court against a probe into its two-year-old strategic alliance with Jet Airways.
The CCI began the probe last year to examine if the alliance was a case of cartelisation.
Kingfisher, however, approached the Supreme Court arguing that the alliance was formed before the Competition Act came into force, and therefore, it couldn't be probed under it.
Justice Kapadia said that the court would lay guidelines for such an investigation and it would hear Kingfisher's plea after that.
Meanwhile, Additional Solicitor General Parag Tripathi appearing for CCI informed the court that Kingfisher was not co-operating in the investigation.
The matter would be heard after four weeks.
Source: Economic Times
A bench headed by Chief Justice S H Kapadia said that they are hearing a petition by the Competition Commission of India (CCI) regarding its powers to initiate an investigation against a company on the complaints of a rival.
Kingfisher Airlines had moved the Supreme Court against a probe into its two-year-old strategic alliance with Jet Airways.
The CCI began the probe last year to examine if the alliance was a case of cartelisation.
Kingfisher, however, approached the Supreme Court arguing that the alliance was formed before the Competition Act came into force, and therefore, it couldn't be probed under it.
Justice Kapadia said that the court would lay guidelines for such an investigation and it would hear Kingfisher's plea after that.
Meanwhile, Additional Solicitor General Parag Tripathi appearing for CCI informed the court that Kingfisher was not co-operating in the investigation.
The matter would be heard after four weeks.
Source: Economic Times
Thursday, July 29, 2010
AI, Jet suffered loss of Rs 127 crore due to strikes: Patel
Air India and Jet Airways suffered a loss of Rs 127 crore due to the three strikes by their employees since last year, Civil Aviation Minister Praful Patel informed the Lok Sabha on Thursday. Ailing national carrier, Air India has suffered a loss of Rs 77 crore in the strikes by executive pilots last year and by employees this May, Patel said in a written reply.
In order to prevent any strike, Air India Board has constituted a Human Resource Sub-committee to consider various issues and grievances of its employees.
In September last, Air India's executive pilots had stopped the work by reporting sick en-mass after the airline management proposed a cut in their flying allowance. The five-day strike started on September 26.
Again, in May this year, employees associated with two of the unions, All India Aircraft Engineer's Association (AIAEA) and Air Corporation Employee's Union (ACEU), went on flash strike in protest of alleged gag order by the airline management restricting union office-bearers not to go to media and other issues.
Also, in September last year, Jet Airways pilots simulated strike by reporting sick for five days.
To a separate question, Patel said that prior to merger of erstwhile Indian Airlines and Air India, both the airlines suffered a loss of Rs 240.29 crore and Rs 447.43 crore respectively.
But after the merger, Air India suffered a loss of Rs 2226.16 crore and Rs 5548 crore in 2007-08 and 2008-09 respectively.
"The national carrier is supposed to post a loss of Rs 5,400 crore in last fiscal (2009-10)," Patel said, adding losses were incurred due to prevalent economic recession, higher fuel prices, low yields and load factors.
The government has proposed to infuse Rs 2,000 crore, in five equal instalments, to help the ailing national carrier.
"An amount of Rs 800 crore has been released in February and March and provision Rs 1,200 crore made in the current financial year. The amount would be released after considering the company's achievement of their turnaround plan," Patel said.
Source: Hindustan Times
In order to prevent any strike, Air India Board has constituted a Human Resource Sub-committee to consider various issues and grievances of its employees.
In September last, Air India's executive pilots had stopped the work by reporting sick en-mass after the airline management proposed a cut in their flying allowance. The five-day strike started on September 26.
Again, in May this year, employees associated with two of the unions, All India Aircraft Engineer's Association (AIAEA) and Air Corporation Employee's Union (ACEU), went on flash strike in protest of alleged gag order by the airline management restricting union office-bearers not to go to media and other issues.
Also, in September last year, Jet Airways pilots simulated strike by reporting sick for five days.
To a separate question, Patel said that prior to merger of erstwhile Indian Airlines and Air India, both the airlines suffered a loss of Rs 240.29 crore and Rs 447.43 crore respectively.
But after the merger, Air India suffered a loss of Rs 2226.16 crore and Rs 5548 crore in 2007-08 and 2008-09 respectively.
"The national carrier is supposed to post a loss of Rs 5,400 crore in last fiscal (2009-10)," Patel said, adding losses were incurred due to prevalent economic recession, higher fuel prices, low yields and load factors.
The government has proposed to infuse Rs 2,000 crore, in five equal instalments, to help the ailing national carrier.
"An amount of Rs 800 crore has been released in February and March and provision Rs 1,200 crore made in the current financial year. The amount would be released after considering the company's achievement of their turnaround plan," Patel said.
Source: Hindustan Times
Friday, July 16, 2010
Domestic skies get 22% more traffic in Jan-June
After the two-year long global economic downturn, the domestic airline has shown marked signs of growth with domestic air traffic growing 21.86 per cent during first two quarters (January to June) this year where carriers ferried over 2.57 crore passengers against 2.11 crore during the same period last year, government data showed on Thursday.
Domestic airlines carried about 1.35 crore passengers during the second quarter (April- June 2010), up from 1.18 crore during the first quarter (January-March 2010) this year.
In terms of percentage share of the carriers in the second quarter this year, Jet-JetLite bagged 26.2 per cent, Kingfisher 21.1 per cent, Air India (domestic) 17.6 per cent, IndiGo 15.9 per cent, Spice-Jet 13 per cent, Paramount 0.3 per cent and Go Air 5.8 per cent.
Jet Airways and its subsidiary JetLite together garnered the largest chunk of passengers flying 35.28 lakh, followed by Kingfisher at 28.42 lakh and Air India (domestic) 23.69 lakh, according to statistics made available by the civil aviation ministry.
No-frill carriers IndiGo carried 21.48 lakh passengers while SpiceJet ferried 17.57 lakh fliers, GoAir flew 7.88 lakh passengers and Paramount 45,000-primarily due to lack of aircraft in its fleet.
But the maximum number of complaints lodged by passengers was against Jet Airways and JetLite, which topped the list in this regard with the maximum number of complaints at 9.2 and four per 10,000 passengers in June. The lowest number of complaints was received by Air India at one for per 10,000 passengers.
In all, eight domestic airlines together received 1,617 complaints from passengers against their services in June with an industry average of 3.7 complaints per 10,000 passengers.
In June, the total domestic passengers carried by the scheduled Indian airlines were 45.04 lakh, the figures showed. Of this, the Jet-JetLite combine alone flew about 12 lakh people.
No-frill airlines carried the highest number of passengers.
IndiGo and SpiceJet had 90.7 per cent and 88.5 per cent of its total seats occupied in its flights, respectively.
These were followed by Paramount with 86.8 per cent, Kingfisher 85.1 per cent, GoAir 84 per cent and JetLite 83.6 per cent, Jet 80.5 per cent and Air India 72.3 per cent.
The lowest on-time performance (OTP) for departures of airlines operating from India include Iran Air, Kenya Airways and Aeroflot, while the OTP for arrivals, include airlines like Kenya Airways, Asiana and United Airways.
Five airlines having highest OTP (departures) are United Airways, Silk Air, Air Astana, Austrian and Mihin Lanka. Similarly, highest OTP (arrivals) include airlines like Turkmenistan, Silk Air, Singapore Airlines, Air Astana and Austrian Airlines.
There are 70 foreign carriers operating to and from India.
According to the civil aviation ministry, OTP data was available for only 41 carriers while preparing this report.
The overall OTP of these 41 carriers for the month of June 2010 was 73.3 per cent in departures and 74.1 per cent in arrivals.
Source: India Today
Domestic airlines carried about 1.35 crore passengers during the second quarter (April- June 2010), up from 1.18 crore during the first quarter (January-March 2010) this year.
In terms of percentage share of the carriers in the second quarter this year, Jet-JetLite bagged 26.2 per cent, Kingfisher 21.1 per cent, Air India (domestic) 17.6 per cent, IndiGo 15.9 per cent, Spice-Jet 13 per cent, Paramount 0.3 per cent and Go Air 5.8 per cent.
Jet Airways and its subsidiary JetLite together garnered the largest chunk of passengers flying 35.28 lakh, followed by Kingfisher at 28.42 lakh and Air India (domestic) 23.69 lakh, according to statistics made available by the civil aviation ministry.
No-frill carriers IndiGo carried 21.48 lakh passengers while SpiceJet ferried 17.57 lakh fliers, GoAir flew 7.88 lakh passengers and Paramount 45,000-primarily due to lack of aircraft in its fleet.
But the maximum number of complaints lodged by passengers was against Jet Airways and JetLite, which topped the list in this regard with the maximum number of complaints at 9.2 and four per 10,000 passengers in June. The lowest number of complaints was received by Air India at one for per 10,000 passengers.
In all, eight domestic airlines together received 1,617 complaints from passengers against their services in June with an industry average of 3.7 complaints per 10,000 passengers.
In June, the total domestic passengers carried by the scheduled Indian airlines were 45.04 lakh, the figures showed. Of this, the Jet-JetLite combine alone flew about 12 lakh people.
No-frill airlines carried the highest number of passengers.
IndiGo and SpiceJet had 90.7 per cent and 88.5 per cent of its total seats occupied in its flights, respectively.
These were followed by Paramount with 86.8 per cent, Kingfisher 85.1 per cent, GoAir 84 per cent and JetLite 83.6 per cent, Jet 80.5 per cent and Air India 72.3 per cent.
The lowest on-time performance (OTP) for departures of airlines operating from India include Iran Air, Kenya Airways and Aeroflot, while the OTP for arrivals, include airlines like Kenya Airways, Asiana and United Airways.
Five airlines having highest OTP (departures) are United Airways, Silk Air, Air Astana, Austrian and Mihin Lanka. Similarly, highest OTP (arrivals) include airlines like Turkmenistan, Silk Air, Singapore Airlines, Air Astana and Austrian Airlines.
There are 70 foreign carriers operating to and from India.
According to the civil aviation ministry, OTP data was available for only 41 carriers while preparing this report.
The overall OTP of these 41 carriers for the month of June 2010 was 73.3 per cent in departures and 74.1 per cent in arrivals.
Source: India Today
Thursday, July 8, 2010
Delhi T3 out of bounds for LCCs till March
Domestic passengers flying out of the Delhi airport in a low-cost carrier may have to wait till next March before they could use the new Terminal 3 (T3).
On the other hand, Air India and Jet Airways, Kingfisher Airlines and their low-cost subsidiaries will be shifting to the new terminal next month. International operations will shift to the new terminal from this month end.
“The Delhi International Airport Ltd (DIAL) has conveyed to us that we will be shifted to the new terminal by March next year,” said a senior executive at a low-cost airline. SpiceJet, IndiGo, GoAir and Paramount Airways are the low-cost carriers (LCCs).
LCCs said apart from higher charges, which they had to fork out, there was also fear they might lose their on-time performance records. “All of us (LCCs) do not want to shift to the new terminal because of various reasons, one of them being the high cost of services. Also, shifting to a swanky terminal may impact our on-time performance because of the extra check-in procedure time at the new terminal,” said a senior GoAir Executive on condition of anonymity.
A senior SpiceJet executive said charges for using the new terminal were much more than the existing ones and they would be forced to use aerobridges and pay more for the new airport service systems.
The full-service carriers and their low-cost subsidiaries will start operating from the new terminal from August 27 and the LCCs will continue to operate from Terminal 1D. GoAir, which operates from Terminal 1A, will also shift to terminal 1D.
However, sources at full-service airlines said there were issues with the terminal. “There was no proving flight, airline offices are not ready and above all, the lounges are also not ready,” said a senior executive at a full-service carrier.
The executive also said that it was very unlikely that T3 would be able to start operations on the new date.
Sources in DIAL agreed that many full-service airlines had opposed the steep cost of most of the services, which would be provided. “I can’t say how much increase in operating an aircraft it will mean, but it is substantial. You have to pay for better facilities. So, negotiations are on.”
On July 14, the earlier date of starting international operations, only seven arrivals and departures, led by AI 102 from Washington, will take place. The next day, the world’s biggest passenger aircraft, the Airbus 380, will arrive at the airport for a trial flight, a first for India.
Source: Business Standard
On the other hand, Air India and Jet Airways, Kingfisher Airlines and their low-cost subsidiaries will be shifting to the new terminal next month. International operations will shift to the new terminal from this month end.
“The Delhi International Airport Ltd (DIAL) has conveyed to us that we will be shifted to the new terminal by March next year,” said a senior executive at a low-cost airline. SpiceJet, IndiGo, GoAir and Paramount Airways are the low-cost carriers (LCCs).
LCCs said apart from higher charges, which they had to fork out, there was also fear they might lose their on-time performance records. “All of us (LCCs) do not want to shift to the new terminal because of various reasons, one of them being the high cost of services. Also, shifting to a swanky terminal may impact our on-time performance because of the extra check-in procedure time at the new terminal,” said a senior GoAir Executive on condition of anonymity.
A senior SpiceJet executive said charges for using the new terminal were much more than the existing ones and they would be forced to use aerobridges and pay more for the new airport service systems.
The full-service carriers and their low-cost subsidiaries will start operating from the new terminal from August 27 and the LCCs will continue to operate from Terminal 1D. GoAir, which operates from Terminal 1A, will also shift to terminal 1D.
However, sources at full-service airlines said there were issues with the terminal. “There was no proving flight, airline offices are not ready and above all, the lounges are also not ready,” said a senior executive at a full-service carrier.
The executive also said that it was very unlikely that T3 would be able to start operations on the new date.
Sources in DIAL agreed that many full-service airlines had opposed the steep cost of most of the services, which would be provided. “I can’t say how much increase in operating an aircraft it will mean, but it is substantial. You have to pay for better facilities. So, negotiations are on.”
On July 14, the earlier date of starting international operations, only seven arrivals and departures, led by AI 102 from Washington, will take place. The next day, the world’s biggest passenger aircraft, the Airbus 380, will arrive at the airport for a trial flight, a first for India.
Source: Business Standard
Friday, July 2, 2010
SpiceJet CEO Aggarwal quits
Less than a month after Sun TV founder Kalanithi Maran acquired a 37.7% stake in SpiceJet, the budget carrier saw its first top level change. Airline CEO Sanjay Aggarwal, who took over after Wilbur Ross pumped in about Rs 345 crore two years back, has quit from the position. Widely seen as a Ross man,
Aggarwal's exit was seen as imminent when Maran and his aviation firm Kal Airways agreed to buy stakes from promoter Bhupendra Kansagra and the US investor and made an open offer for a further 20% stake. The move will give the new owner a free hand to revamp the management.
Sources said Kishore Gupta, who has been on the airline's board for a decade, may be made the interim CEO till Maran finalises the new management team. Among the big moves expected now are a possible change in the airline's name as well as shifting of the LCC's headquarters from Gurgaon to Chennai.
Aggarwal, who was SpiceJet's COO and chief strategy officer, was appointed the CEO in October, 2008 — three months after Ross pumped in Rs 345 crore in the desperate-for-cash-LCC. SpiceJet, which till Maran's entry has had a rather fluid ownership pattern, has witnessed top level changes in the past too. Aggarwal had taken over the position from Siddhanta Sharma who then moved over to InterGlobe that runs, among other businesses, leading LCC IndiGo.
SpiceJet has a fleet of 20 aircraft and will get five more single aisles this year. With a market share of 12%, the LCC is planning to launch international flights from this month.
Source: Times of India
Aggarwal's exit was seen as imminent when Maran and his aviation firm Kal Airways agreed to buy stakes from promoter Bhupendra Kansagra and the US investor and made an open offer for a further 20% stake. The move will give the new owner a free hand to revamp the management.
Sources said Kishore Gupta, who has been on the airline's board for a decade, may be made the interim CEO till Maran finalises the new management team. Among the big moves expected now are a possible change in the airline's name as well as shifting of the LCC's headquarters from Gurgaon to Chennai.
Aggarwal, who was SpiceJet's COO and chief strategy officer, was appointed the CEO in October, 2008 — three months after Ross pumped in Rs 345 crore in the desperate-for-cash-LCC. SpiceJet, which till Maran's entry has had a rather fluid ownership pattern, has witnessed top level changes in the past too. Aggarwal had taken over the position from Siddhanta Sharma who then moved over to InterGlobe that runs, among other businesses, leading LCC IndiGo.
SpiceJet has a fleet of 20 aircraft and will get five more single aisles this year. With a market share of 12%, the LCC is planning to launch international flights from this month.
Source: Times of India
Wednesday, June 16, 2010
Sydney home to new Kingfisher office
Kingfisher Airlines has opened a new office in Sydney as part of its efforts to step up its presence in the Australian market.
The Indian carrier, which only started flying internationally 18 months ago, flies to Singapore, Bangkok and Hong Kong.
Pricing & Distribution Manager Ian Turpin told e-Travel Blackboard the new office would offer a raft of fares to Australian agents and travellers and assist in selling connecting fares on carriers which Kingfisher has agreements with.
He added that the soon-to-be-oneworld-member carrier was "keen" to expand its network into Australia, but had no plans as of yet.
Source: Etravelblackboard
The Indian carrier, which only started flying internationally 18 months ago, flies to Singapore, Bangkok and Hong Kong.
Pricing & Distribution Manager Ian Turpin told e-Travel Blackboard the new office would offer a raft of fares to Australian agents and travellers and assist in selling connecting fares on carriers which Kingfisher has agreements with.
He added that the soon-to-be-oneworld-member carrier was "keen" to expand its network into Australia, but had no plans as of yet.
Source: Etravelblackboard
Thursday, June 10, 2010
Kingfisher moves SC against CCI probe into tie-up with Jet Airways
Kingfisher Airlines has moved the Supreme Court seeking quashing of an order by the Competition Commission of India (CCI) directing a probe into its strategic alliance with Jet Airways. In August last year, the CCI had restarted the investigations to examine the alliance to rationalise the fares of the two leading private airlines. The commission is investigating if the deal created a monopoly in the aviation sector.
Kingfisher is challenging the authority of CCI to reopen the case that was closed by former anti-trust regulator Monopolies and Restrictive Trade Practices Commission (MRTPC) on September 4 last year or even to investigate the same.
If the case of cartelisation is made out, CCI can impose a heavy fine amounting to three times the profit or 10% of the individual turnover of the firms for the period of cartelisation.
The Kingfisher appeal is against a Bombay High Court judgment of March 31 that dismissed the airlines' plea against the inquiry. The airline headed by Vijay Mallya has contended that the Competition Act was amended after the alliance was formed and as such, the new rules can not have a retrospective effect. The impugned August 4, 2009 notices under the Act which “purported to commence investigation in respect of the proposed alliance were ex-facie illegal and without jurisdiction since the provisions under which the inquiry was sought to be conducted viz., Sections 3, 4, 19, 42 and 43 of the Act came into force only on May 20, 2009 and ex-facie these sections are prospective and not retrospective, and can apply only to agreements entered into after May 20, 2009, ” the petition stated.
“What is prohibited by Section 3 is the entering into of the agreement and not the continuation of preexisting agreements,” it added. While the high court had dismissed Kingfisher's plea on March 31, the authorities on April 15 had asked the airline and Mallya to subject themselves to the “ex-facie illegal proceedings.”
Seeking stay of all the proceedings, the airline said that it apprehended the authorities would initiate coercive steps including imposition of penalty and the same would cause “grave and serious harm, loss and prejudice which cannot be compensated in terms of monies.”
Source: Financial Express
Kingfisher is challenging the authority of CCI to reopen the case that was closed by former anti-trust regulator Monopolies and Restrictive Trade Practices Commission (MRTPC) on September 4 last year or even to investigate the same.
If the case of cartelisation is made out, CCI can impose a heavy fine amounting to three times the profit or 10% of the individual turnover of the firms for the period of cartelisation.
The Kingfisher appeal is against a Bombay High Court judgment of March 31 that dismissed the airlines' plea against the inquiry. The airline headed by Vijay Mallya has contended that the Competition Act was amended after the alliance was formed and as such, the new rules can not have a retrospective effect. The impugned August 4, 2009 notices under the Act which “purported to commence investigation in respect of the proposed alliance were ex-facie illegal and without jurisdiction since the provisions under which the inquiry was sought to be conducted viz., Sections 3, 4, 19, 42 and 43 of the Act came into force only on May 20, 2009 and ex-facie these sections are prospective and not retrospective, and can apply only to agreements entered into after May 20, 2009, ” the petition stated.
“What is prohibited by Section 3 is the entering into of the agreement and not the continuation of preexisting agreements,” it added. While the high court had dismissed Kingfisher's plea on March 31, the authorities on April 15 had asked the airline and Mallya to subject themselves to the “ex-facie illegal proceedings.”
Seeking stay of all the proceedings, the airline said that it apprehended the authorities would initiate coercive steps including imposition of penalty and the same would cause “grave and serious harm, loss and prejudice which cannot be compensated in terms of monies.”
Source: Financial Express
Friday, June 4, 2010
Two tragedies, but a world of difference in compensation
In a week, we have seen two major tragedies — the Air India Express flight crash in Mangalore last Saturday and the Maoist attack on Gyaneshwari Express in West Bengal on Friday. While one might assume that the loss of life should hold the same importance, whether a train or an air accident, the compensations announced tell a different story.
The government announced a compensation package of Rs 5 lakh each to families of the victims of the Maoist attack on the Gyaneshwari Express. The same government has awarded Rs 10 lakh each to the families of those who died in Saturday's air crash. This is an interim package, and the total relief amount can go up to Rs 72 lakh, according to the provisions of the Carriage by Air (Amendment) Act.
The injured in the air crash will get Rs 2 lakh, whereas the injured in the train attack will get Rs 1 lakh. Historically too, train accident victims are handed out lesser ex gratia. Consider the three train accidents that took place in Uttar Pradesh on January 2 earlier this year in which 10 people were killed and 45 injured.
The compensation in this case was Rs 5 lakh for the dead, Rs 1 lakh for the critically injured and Rs 10,000 for those with minor injuries.
The real issue is insurance. In India, railway passengers are not insured by Indian Railways and various bodies of the government take responsibility in case of an accident. "As for flight passengers, the onus of safety lies on carriers, so they go for large insurance," says Tarun Singh, MD-CEO of Finexure Financial Services, a management company catering to retail and HNI clients.
Source: Times of India
The government announced a compensation package of Rs 5 lakh each to families of the victims of the Maoist attack on the Gyaneshwari Express. The same government has awarded Rs 10 lakh each to the families of those who died in Saturday's air crash. This is an interim package, and the total relief amount can go up to Rs 72 lakh, according to the provisions of the Carriage by Air (Amendment) Act.
The injured in the air crash will get Rs 2 lakh, whereas the injured in the train attack will get Rs 1 lakh. Historically too, train accident victims are handed out lesser ex gratia. Consider the three train accidents that took place in Uttar Pradesh on January 2 earlier this year in which 10 people were killed and 45 injured.
The compensation in this case was Rs 5 lakh for the dead, Rs 1 lakh for the critically injured and Rs 10,000 for those with minor injuries.
The real issue is insurance. In India, railway passengers are not insured by Indian Railways and various bodies of the government take responsibility in case of an accident. "As for flight passengers, the onus of safety lies on carriers, so they go for large insurance," says Tarun Singh, MD-CEO of Finexure Financial Services, a management company catering to retail and HNI clients.
Source: Times of India
Monday, May 24, 2010
Air India Probe May Take Two Weeks to Unlock Fatal Crash Data
Investigators may spend as long as two weeks analyzing data before they can say what caused India’s deadliest air disaster in 14 years.
The fire-damaged cockpit voice recorder recovered from the hillside crash site yesterday should yield the necessary clues, the government said in a statement. The aviation regulator will seek to determine how a 2-1/2 year old Air India Express Boeing Co. 737-800 flown by experienced pilots overshot the runway and burst into flames, killing 158 passengers and crew.
Air travel has doubled in the past six years as rising disposable incomes in the world’s second-fastest growing major economy encourage people to shun trains and take a plane for long-distance journeys. The government plans to spend as much as $2.6 billion on modernizing the nation’s airports and aviation infrastructure, including 35 facilities in smaller cities.
“Before clearing aircraft orders, we need to think whether we have the infrastructure,” said A. Ranganathan, a Chennai, south India-based aviation consultant and a former commercial pilot. “Proper planning is required for infrastructure development.”
India needs 1,030 aircraft worth $138 billion over the next 20 years, and will be the fastest-growing air travel market for the next decade, Airbus SAS, the world’s largest planemaker, said in March. Civil Aviation Minister Praful Patel said the same month that India needs to more than quadruple the number of airports from the current 90 to meet the increased traffic.
Traffic Jumps
Domestic air traffic in India jumped to more than 35 million passengers in the year ended in March 2009 from less than 15 million six years ago, according to the Centre for Asia Pacific Aviation. Seven carriers operate 11 different brands in India, compared with four airlines in 2003, it said.
“When you have such high levels of growth, it creates enormous stress on the system,” said Peter Harbison, chairman of the industry consultancy. “It is going to be a big issue for India because the traffic potential is so vast.”
India’s airports reported as many as 70 “near misses” in the last three years, according to minister Patel. The reasons include “co-ordination failures” and stress and fatigue due to heavy traffic, he told Parliament in March.
Flight IX-812 from Dubai to Mangalore crashed at about 6:05 a.m. on May 22. All the bodies of the dead have been removed from the wreckage of the Boeing 737-800, Harpreet Singh, Air India’s emergency response coordinator, said yesterday in Mumbai. Of those, 87 have been identified. There were eight survivors.
Investigators from India’s Directorate General of Civil Aviation are leading the probe into the crash.
Refinance Loans
National Aviation Co. of India Ltd., Air India’s owner, is seeking to raise as much as $1.15 billion to refinance loans that funded the purchase of 21 Airbus SAS planes.
The accident was the worst in India in 14 years, according to the Aviation Safety Network website. Houston, Texas-based disaster management company Kenyon International Emergency Services has been asked to assist in the rescue operation, Air India’s Singh said. The airline will also conduct an internal inquiry. The airline and India’s aviation regulator have declined to comment on what may have caused the accident.
Since India’s last major air disaster in 2000, Kingfisher Airlines Ltd., SpiceJet Ltd., IndiGo, GoAirlines (India) Pvt. and Paramount Airways Ltd. have started services, as the world’s fastest expanding major economy after China saw demand surge.
Technical Assistance
Boeing is sending a team to provide technical assistance to the investigation at the invitation of Indian authorities, the Chicago-based manufacturer said in a statement. Air India said the crashed 737 was about 2 1/2 years old.
Both pilots were experienced and had flown into Mangalore together on May 17, Air India’s director for personnel, Anup Srivastava, told reporters in Mumbai May 22. The civil aviation ministry said in a statement the plane had landed “slightly beyond” the runway’s “touchdown” zone at a time when visibility was about six kilometers (four miles).
Both the pilots were “well rested” before the flight, Air India Chairman and Managing Director Arvind Jadhav said yesterday in Mangalore.
The crash on May 22 was the worst in India since a Saudi Arabian Airlines flight collided with a Kazakhstan Airlines jet in November, 1996, killing all 349 on board.
In the South Asian country’s last major air disaster, a Boeing 737-200 crashed into a residential area while approaching Patna airport in the eastern Bihar in July 2000.
International air travel has rebounded from last year’s slump as the global economy expanded. Indian airlines carried 16.82 million passengers between January and April this year, 22 percent more than a year earlier, according to the Civil Aviation Ministry.
Source: Business Week
The fire-damaged cockpit voice recorder recovered from the hillside crash site yesterday should yield the necessary clues, the government said in a statement. The aviation regulator will seek to determine how a 2-1/2 year old Air India Express Boeing Co. 737-800 flown by experienced pilots overshot the runway and burst into flames, killing 158 passengers and crew.
Air travel has doubled in the past six years as rising disposable incomes in the world’s second-fastest growing major economy encourage people to shun trains and take a plane for long-distance journeys. The government plans to spend as much as $2.6 billion on modernizing the nation’s airports and aviation infrastructure, including 35 facilities in smaller cities.
“Before clearing aircraft orders, we need to think whether we have the infrastructure,” said A. Ranganathan, a Chennai, south India-based aviation consultant and a former commercial pilot. “Proper planning is required for infrastructure development.”
India needs 1,030 aircraft worth $138 billion over the next 20 years, and will be the fastest-growing air travel market for the next decade, Airbus SAS, the world’s largest planemaker, said in March. Civil Aviation Minister Praful Patel said the same month that India needs to more than quadruple the number of airports from the current 90 to meet the increased traffic.
Traffic Jumps
Domestic air traffic in India jumped to more than 35 million passengers in the year ended in March 2009 from less than 15 million six years ago, according to the Centre for Asia Pacific Aviation. Seven carriers operate 11 different brands in India, compared with four airlines in 2003, it said.
“When you have such high levels of growth, it creates enormous stress on the system,” said Peter Harbison, chairman of the industry consultancy. “It is going to be a big issue for India because the traffic potential is so vast.”
India’s airports reported as many as 70 “near misses” in the last three years, according to minister Patel. The reasons include “co-ordination failures” and stress and fatigue due to heavy traffic, he told Parliament in March.
Flight IX-812 from Dubai to Mangalore crashed at about 6:05 a.m. on May 22. All the bodies of the dead have been removed from the wreckage of the Boeing 737-800, Harpreet Singh, Air India’s emergency response coordinator, said yesterday in Mumbai. Of those, 87 have been identified. There were eight survivors.
Investigators from India’s Directorate General of Civil Aviation are leading the probe into the crash.
Refinance Loans
National Aviation Co. of India Ltd., Air India’s owner, is seeking to raise as much as $1.15 billion to refinance loans that funded the purchase of 21 Airbus SAS planes.
The accident was the worst in India in 14 years, according to the Aviation Safety Network website. Houston, Texas-based disaster management company Kenyon International Emergency Services has been asked to assist in the rescue operation, Air India’s Singh said. The airline will also conduct an internal inquiry. The airline and India’s aviation regulator have declined to comment on what may have caused the accident.
Since India’s last major air disaster in 2000, Kingfisher Airlines Ltd., SpiceJet Ltd., IndiGo, GoAirlines (India) Pvt. and Paramount Airways Ltd. have started services, as the world’s fastest expanding major economy after China saw demand surge.
Technical Assistance
Boeing is sending a team to provide technical assistance to the investigation at the invitation of Indian authorities, the Chicago-based manufacturer said in a statement. Air India said the crashed 737 was about 2 1/2 years old.
Both pilots were experienced and had flown into Mangalore together on May 17, Air India’s director for personnel, Anup Srivastava, told reporters in Mumbai May 22. The civil aviation ministry said in a statement the plane had landed “slightly beyond” the runway’s “touchdown” zone at a time when visibility was about six kilometers (four miles).
Both the pilots were “well rested” before the flight, Air India Chairman and Managing Director Arvind Jadhav said yesterday in Mangalore.
The crash on May 22 was the worst in India since a Saudi Arabian Airlines flight collided with a Kazakhstan Airlines jet in November, 1996, killing all 349 on board.
In the South Asian country’s last major air disaster, a Boeing 737-200 crashed into a residential area while approaching Patna airport in the eastern Bihar in July 2000.
International air travel has rebounded from last year’s slump as the global economy expanded. Indian airlines carried 16.82 million passengers between January and April this year, 22 percent more than a year earlier, according to the Civil Aviation Ministry.
Source: Business Week
Friday, May 14, 2010
SpiceJet gets nod to fly to 3 foreign destinations
Indian discount carrier SpiceJet Ltd has been cleared to fly overseas in June, starting with Dhaka, Kathmandu and the Maldives, after the airline completes five years of domestic service later this month.
The aviation ministry has, however, turned down its request to start flights to Sri Lanka for now, said two officials with knowledge of the matter.
The Gurgaon-based low-cost airline had shortlisted four overseas destinations for the first phase of its international operations, Mint reported on 18 January. The government requires that airlines complete a minimum five years of service before being eligible to fly abroad.
One of the civil aviation ministry officials cited above said the carrier has been granted rights for daily flights to Dhaka and Kathmandu starting 1 June. The Mumbai-Maldives service will start in the winter, he said.
SpiceJet, with a 12.6% domestic market share and 19 aircraft, plans to confine flights to the South Asian Association for Regional Cooperation (Saarc) region only, CEO Sanjay Aggarwal had said in January.
It is not clear when the carrier will actually launch the operations. Aggarwal could not be reached for comments and an email sent to him remained unanswered.
While “in-principle” approval has been granted, it has yet to be issued in “black and white”, said a SpiceJet official who did not want to be named as he is not authorized to speak with the media.
It may take the airline all of June to prepare for international operations, depending on clearances from aviation regulator, the Directorate General of Civil Aviation.
The country’s carriers that fly overseas are Air India, Jet Airways, Kingfisher Airlines and JetLite, making SpiceJet the fifth to do so.
It will also be the first domestic budget airline to fly abroad, pitting it against regional carriers such as FlyDubai, AirAsia and Air Arabia among others.
The airline’s ability to profit from overseas services will depend on how it operates the low-cost model, an analyst said.
“Every service comes at a price and not everybody wants all the services,” said Mahantesh Sabarad, analyst at Mumbai’s Fortune Equity Brokers India Ltd, referring to competition from full-service carriers. Apart from picking less-crowded time slots, “the challenges could be on the operational side in their ability to turn around the aircraft for other operations,” he said.
Given that the airline is not entering mature markets, it may not have to contend with the difficulties that carriers such as Jet and Kingfisher faced when they started long-haul European and US operations in the past four years.
“What happened with Kingfisher or Jet was that they went into mature markets which are difficult to make profits in,” Sabarad said. “I tend to believe if they use the same set of aircraft and work them around, then they are essentially utilizing their fleet more efficiently so it would mean for the same fixed cost all they need is the variable expense of flight, primarily fuel. If they are able to attract passengers with cheaper fares that cover their variables they should be adding to the profits.”
Source: Livemint
The aviation ministry has, however, turned down its request to start flights to Sri Lanka for now, said two officials with knowledge of the matter.
The Gurgaon-based low-cost airline had shortlisted four overseas destinations for the first phase of its international operations, Mint reported on 18 January. The government requires that airlines complete a minimum five years of service before being eligible to fly abroad.
One of the civil aviation ministry officials cited above said the carrier has been granted rights for daily flights to Dhaka and Kathmandu starting 1 June. The Mumbai-Maldives service will start in the winter, he said.
SpiceJet, with a 12.6% domestic market share and 19 aircraft, plans to confine flights to the South Asian Association for Regional Cooperation (Saarc) region only, CEO Sanjay Aggarwal had said in January.
It is not clear when the carrier will actually launch the operations. Aggarwal could not be reached for comments and an email sent to him remained unanswered.
While “in-principle” approval has been granted, it has yet to be issued in “black and white”, said a SpiceJet official who did not want to be named as he is not authorized to speak with the media.
It may take the airline all of June to prepare for international operations, depending on clearances from aviation regulator, the Directorate General of Civil Aviation.
The country’s carriers that fly overseas are Air India, Jet Airways, Kingfisher Airlines and JetLite, making SpiceJet the fifth to do so.
It will also be the first domestic budget airline to fly abroad, pitting it against regional carriers such as FlyDubai, AirAsia and Air Arabia among others.
The airline’s ability to profit from overseas services will depend on how it operates the low-cost model, an analyst said.
“Every service comes at a price and not everybody wants all the services,” said Mahantesh Sabarad, analyst at Mumbai’s Fortune Equity Brokers India Ltd, referring to competition from full-service carriers. Apart from picking less-crowded time slots, “the challenges could be on the operational side in their ability to turn around the aircraft for other operations,” he said.
Given that the airline is not entering mature markets, it may not have to contend with the difficulties that carriers such as Jet and Kingfisher faced when they started long-haul European and US operations in the past four years.
“What happened with Kingfisher or Jet was that they went into mature markets which are difficult to make profits in,” Sabarad said. “I tend to believe if they use the same set of aircraft and work them around, then they are essentially utilizing their fleet more efficiently so it would mean for the same fixed cost all they need is the variable expense of flight, primarily fuel. If they are able to attract passengers with cheaper fares that cover their variables they should be adding to the profits.”
Source: Livemint
Friday, April 30, 2010
Jet Airways inducts Boeing jets, to introduce biz class seats
Jet Airways has decided to induct two B737s to its fleet in May, indicating that Indian aviation is on a strong comeback trail. The airline will also gradually introduce business class in all its JetKonnect airplanes as the demand from its premium card holders — silver, gold and platinum members — for the business class has grown.
"We will lease two Boeing aircraft from leasing company BOC Aviation. It would be deployed on domestic and short-haul international routes," two persons familiar with the development said.
The country's largest private airline had been very quick to respond to recessionary trend in the sector. It leased out jets to foreign carriers and converted its flights into alleconomy class called JetKonnect. "Shortly, we will introduce eight business class seats in all JetKonnect aircraft except ATRs. We have seen healthy trend in booking after introduction of business class seats in eight aircraft," the official said.
Domestic airlines flew 39.67 lakh passengers in March, up 23% over the corresponding month last year. Airlines posted robust growth during this period in spite of the fact that March is traditionally a lean month.
Source: Economic Times
"We will lease two Boeing aircraft from leasing company BOC Aviation. It would be deployed on domestic and short-haul international routes," two persons familiar with the development said.
The country's largest private airline had been very quick to respond to recessionary trend in the sector. It leased out jets to foreign carriers and converted its flights into alleconomy class called JetKonnect. "Shortly, we will introduce eight business class seats in all JetKonnect aircraft except ATRs. We have seen healthy trend in booking after introduction of business class seats in eight aircraft," the official said.
Domestic airlines flew 39.67 lakh passengers in March, up 23% over the corresponding month last year. Airlines posted robust growth during this period in spite of the fact that March is traditionally a lean month.
Source: Economic Times
Monday, April 26, 2010
Jet Airways to ramp up local, international networks
Jet Airways, the country’s top private airline, is recasting itself as a network carrier by fortifying its international and domestic connectivity to make the most of the global economic recovery.
“Jet is looking to explore new destination strategies,” said Jet Airways chief commercial officer Sudheer Raghavan, adding that the carrier will target routes that do not have a traditional gestation period of 18 months to turn profitable.
Jet is likely to add flights on routes like Delhi-Hong Kong, Singapore-Delhi as well as destinations like Bangkok and the Gulf. It will also increase the connectivity to Europe in the coming months. Jet’s strategy is a sign that it is shedding the caution necessitated by the slowdown.
Airlines across the globe have struggled in recent years against surging fuel prices and the slowdown. As costs ratcheted up, the number of passengers fell sharply. But with economies improving, passengers are slowly returning and their numbers grew 20% in 2009 from a year ago.
The Naresh Goyal-owned airline wants to be at the forefront of the revival. The carrier will utilise the sixth freedom right under the aviation freedom rights that allows an airline to use its domicile as a transit point. Jet already uses destinations like Thiruvananthapuram to connect to Mumbai and Dhaka and Kathmandu.
Jet will use its current hub at the Mumbai airport for souping up the network, but as its international operations expand, it will also turn the Delhi airport into a hub, said Mr Raghavan. “We are in talks with GMR Holdings (the Delhi airport operator) for establishing facilities,” he said. Jet’s international operations contribute about 60% of revenues with passenger occupancy levels of up to 84%.
For strengthening its regional connectivity, the airline will add four ATRs to its fleet in six months. Jet will also ask the government to allow immigration and custom clearances at airports in non-metros as well. “Foreign carriers are allowed to offer these facilities,” a Jet official said.
Jet is also revamping its fleet to make the product portfolio more flexible, as more Indian carriers get permission to fly abroad. The airline plans to offer eight business class seats on its low-cost carrier, Jet Konnect.
“We have already reconfigured seven of the 18 Jet Konnect 4aircraft,” said Jet Airways commercial strategy and investor relations vice-president KG Vishwanath, adding that the so-called Jet Select cabin gives the airline an advantage over competition.
Source: Economic Times
“Jet is looking to explore new destination strategies,” said Jet Airways chief commercial officer Sudheer Raghavan, adding that the carrier will target routes that do not have a traditional gestation period of 18 months to turn profitable.
Jet is likely to add flights on routes like Delhi-Hong Kong, Singapore-Delhi as well as destinations like Bangkok and the Gulf. It will also increase the connectivity to Europe in the coming months. Jet’s strategy is a sign that it is shedding the caution necessitated by the slowdown.
Airlines across the globe have struggled in recent years against surging fuel prices and the slowdown. As costs ratcheted up, the number of passengers fell sharply. But with economies improving, passengers are slowly returning and their numbers grew 20% in 2009 from a year ago.
The Naresh Goyal-owned airline wants to be at the forefront of the revival. The carrier will utilise the sixth freedom right under the aviation freedom rights that allows an airline to use its domicile as a transit point. Jet already uses destinations like Thiruvananthapuram to connect to Mumbai and Dhaka and Kathmandu.
Jet will use its current hub at the Mumbai airport for souping up the network, but as its international operations expand, it will also turn the Delhi airport into a hub, said Mr Raghavan. “We are in talks with GMR Holdings (the Delhi airport operator) for establishing facilities,” he said. Jet’s international operations contribute about 60% of revenues with passenger occupancy levels of up to 84%.
For strengthening its regional connectivity, the airline will add four ATRs to its fleet in six months. Jet will also ask the government to allow immigration and custom clearances at airports in non-metros as well. “Foreign carriers are allowed to offer these facilities,” a Jet official said.
Jet is also revamping its fleet to make the product portfolio more flexible, as more Indian carriers get permission to fly abroad. The airline plans to offer eight business class seats on its low-cost carrier, Jet Konnect.
“We have already reconfigured seven of the 18 Jet Konnect 4aircraft,” said Jet Airways commercial strategy and investor relations vice-president KG Vishwanath, adding that the so-called Jet Select cabin gives the airline an advantage over competition.
Source: Economic Times
Monday, April 19, 2010
Domestic airlines to lose Rs 20 cr a day as ash cloud spreads
Indian carriers flying to European destinations are likely to lose Rs 20 crore a day owing to flight cancellations due to the huge ash cloud from an Icelandic volcano that has precipitated the worst air travel chaos since the September 11 attacks. Air India, Jet Airways and Kingfisher Airlines have cancelled over 50 flights in the last four days, as airports in Europe remain shut, hitting travel to the US and Canada as well.
Meanwhile, Air India has scheduled flights on the India-US route for Monday. Jet Airways operated flights via Athens to US and Canada on Saturday.
According to the International Air Transport Association, airlines across the world are collectively losing $200 million a day due to cancelled flights.
Says Ankur Bhatia, MD, Amadeus India, “ Over 28,000 flights operate in European airports but the number has reduced to 11,000 due to the volcanic disruptions. Indian carriers are also impacted financially since there are no take-offs and landings on the network. The revenues of airlines will descent.” He further added European authorities believe that northern and eastern European air space will remain closed for the next several days, at least.
Industry analysts say on long-haul destinations, the employee to aircraft ratio is over 200 per aircraft. In such a scenario, airlines will have to pay their employees despite no operations on the sector.
This incident comes at a time when Indian carriers were trying to cash in on the peak outbound travel season from India. Generally, carriers earn around 50% of the total annual revenues from international operations.
Jet Airways, which cancelled four flights on the India-London and London-India sector, said it is monitoring the situation and has worked closely with relevant authorities in evaluating and mounting flights to and from the US and Canada.
Jet Airways has ensured that the chosen route via Athens is one that would avoid the volcanic ash-affected air space.
The carrier, which majorly flies to most destinations in Europe, the US and Asia among others, had 27,073 departures in the December quarter of FY2010 with 75%-plus load factors.
Kingfisher too has cancelled its regular flights on the sector like Air India.
Meanwhile, International Air Transport Association’s (IATA) initial estimates of the financial impact is in excess of $200 million per day for the industry, but this figure does not take into account factors like additional costs for re-routing aircraft, care for stranded passengers and stranded aircraft...
Source: Financial Express
Meanwhile, Air India has scheduled flights on the India-US route for Monday. Jet Airways operated flights via Athens to US and Canada on Saturday.
According to the International Air Transport Association, airlines across the world are collectively losing $200 million a day due to cancelled flights.
Says Ankur Bhatia, MD, Amadeus India, “ Over 28,000 flights operate in European airports but the number has reduced to 11,000 due to the volcanic disruptions. Indian carriers are also impacted financially since there are no take-offs and landings on the network. The revenues of airlines will descent.” He further added European authorities believe that northern and eastern European air space will remain closed for the next several days, at least.
Industry analysts say on long-haul destinations, the employee to aircraft ratio is over 200 per aircraft. In such a scenario, airlines will have to pay their employees despite no operations on the sector.
This incident comes at a time when Indian carriers were trying to cash in on the peak outbound travel season from India. Generally, carriers earn around 50% of the total annual revenues from international operations.
Jet Airways, which cancelled four flights on the India-London and London-India sector, said it is monitoring the situation and has worked closely with relevant authorities in evaluating and mounting flights to and from the US and Canada.
Jet Airways has ensured that the chosen route via Athens is one that would avoid the volcanic ash-affected air space.
The carrier, which majorly flies to most destinations in Europe, the US and Asia among others, had 27,073 departures in the December quarter of FY2010 with 75%-plus load factors.
Kingfisher too has cancelled its regular flights on the sector like Air India.
Meanwhile, International Air Transport Association’s (IATA) initial estimates of the financial impact is in excess of $200 million per day for the industry, but this figure does not take into account factors like additional costs for re-routing aircraft, care for stranded passengers and stranded aircraft...
Source: Financial Express
Wednesday, April 14, 2010
Ludhiana-Delhi flight fails to take off
The much-awaited Ludhiana-New Delhi test flight has been put on hold for the time being. The operations, which were to start on Tuesday, were cancelled at the eleventh hour.
Airport officials claim the operations, hanging fire for the last eight years, will start around April 17. But sources in the Shiromani Akali Dal (SAD) claim the test flight will take off only after April 25, when Deputy Chief Minister Sukhbir Singh Badal returns from his week-long trip to the US. The Junior Badal is expected to launch the operations in the city.
Sources said Air India will be replaced by a private airline company to set up the operations.
VP Jain, incharge, Sahnewal Airport, though, is still optimistic. “The operations will start very soon. We received the cancellation information in the morning and now the same has been scheduled for April 17. It is just a delay in the test flight but the residents should not feel discouraged as we are ready to initiate regular flights as per the previously announced schedule of May 1. There would be no further delay.” Sources, meanwhile, said the hitches in the take off of the project included the choice of airline and the timings. The Punjab government wants the flight to take off at nine in the morning so that a person has the entire day in hand. The authorities, however, have scheduled these flights either too early in the morning or towards the noon. Apart from this, MPs and MLAs want Indian Airlines to run the flight for they get to fly free, authorities, though, are more interested in the private players. Along with Kingfisher Airlines, Indigo and Spice Jet are other key players who could run the flight. MLAs and MPs have to get their tickets re-imbursed in case they fly in private airlines.
Source: Indian Express
Airport officials claim the operations, hanging fire for the last eight years, will start around April 17. But sources in the Shiromani Akali Dal (SAD) claim the test flight will take off only after April 25, when Deputy Chief Minister Sukhbir Singh Badal returns from his week-long trip to the US. The Junior Badal is expected to launch the operations in the city.
Sources said Air India will be replaced by a private airline company to set up the operations.
VP Jain, incharge, Sahnewal Airport, though, is still optimistic. “The operations will start very soon. We received the cancellation information in the morning and now the same has been scheduled for April 17. It is just a delay in the test flight but the residents should not feel discouraged as we are ready to initiate regular flights as per the previously announced schedule of May 1. There would be no further delay.” Sources, meanwhile, said the hitches in the take off of the project included the choice of airline and the timings. The Punjab government wants the flight to take off at nine in the morning so that a person has the entire day in hand. The authorities, however, have scheduled these flights either too early in the morning or towards the noon. Apart from this, MPs and MLAs want Indian Airlines to run the flight for they get to fly free, authorities, though, are more interested in the private players. Along with Kingfisher Airlines, Indigo and Spice Jet are other key players who could run the flight. MLAs and MPs have to get their tickets re-imbursed in case they fly in private airlines.
Source: Indian Express
Wednesday, April 7, 2010
Spicejet better buy than Jet Airways & Kingfisher Airlines: KSEMA Fincon Ltd.
Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd. in an interview to ET NOW said that Spicejet is a better buy compared to Jet Airways or a Kingfisher Airlines. Airlines has the highest load factor of more than 82% apart from that the company also is profitable last quarter they had operating profit of 110 Crores. Very few airlines in the world are profitable and Spicejet is among one of the very few airlines that is profitable.
Most people that we speak to speak about investing in a Spicejet or suppose to a Jet Airways or a Kingfisher would you one look at the aviation pack and two would you choose a Spicejet over the other two?
I agree that Spicejet is a better buy compared to Jet Airways or a Kingfisher Airlines reasons are very clear the airlines has the highest load factor of more than 82% apart from that the company also is profitable last quarter they had operating profit of 110 Crores. Very few airlines in the world are profitable and Spicejet is among one of the very few airlines that is profitable and there is lot of PE interest to buy stake in this company which would keep the stock interest alive in the markets.
Source: Economic Times
Most people that we speak to speak about investing in a Spicejet or suppose to a Jet Airways or a Kingfisher would you one look at the aviation pack and two would you choose a Spicejet over the other two?
I agree that Spicejet is a better buy compared to Jet Airways or a Kingfisher Airlines reasons are very clear the airlines has the highest load factor of more than 82% apart from that the company also is profitable last quarter they had operating profit of 110 Crores. Very few airlines in the world are profitable and Spicejet is among one of the very few airlines that is profitable and there is lot of PE interest to buy stake in this company which would keep the stock interest alive in the markets.
Source: Economic Times
Monday, March 29, 2010
Air India may soon appoint an expat COO
Air India is likely to appoint a foreigner as chief operating officer (COO) in a bold attempt to turn around the beleaguered national carrier. A sub-committee of the board headed by civil aviation secretary M Madhavan Nambiar on Saturday interviewed three candidates, all expatriates.
According to Air India sources, the three are Gustav Baldauf, currently executive vice-president, flight operations, Austrian Airlines; Brock Friesen, COO, Air Malta, and George Reeleder, managing director, Rapidair, which is Air Canada’s domestic airline. The new COO, sources said, would have the task of salvaging Air India’s fortunes in three years. The three were chosen from 140 applicants for the post.
Air India’s chairman and managing director, Arvind Jadhav, and recently-appointed corporate bigwigs on Air India’s board such as Anand Mahindra, vice-chairman and managing director, M&M, Sajjan Jindal of JSW Steel and Uday Kotak of Kotak Mahindra Bank were part of the team interviewing the prospective COOs.
Of the three, Mr Baldauf has had an India stint in 2005 when he was with Jet Airways as its vice-president for flight operations. Austrian Airlines is also a member of a group of airlines called Star Alliance, which Air India is to formally join soon.
Air India brass feels that Mr Baldauf will be helpful in this because the airline is facing trouble becoming a member of the alliance over quality issues. A final decision will be taken after necessary government approvals are in place, the sources said. Some aviation experts, however, feel the entire exercise is pointless.
“For Air India to hire a COO without a business plan in place does not make much sense. In any case, high calibre people do not apply through advertisements for jobs like these. Air India is not very sure what kind of organisational and management structure it is going to be in the next three to five years’ time,” said Kapil Kaul, CEO (India and Middle East), Centre for Asia Pacific Aviation. Air India does not have a COO. Last month a panel was appointed to fast-track the process.
Air India is in the process of changing its routes as well as its organisational structure. It has incurred heavy losses projected to be over Rs 5,000 crore for the financial year ending March.
The airline has also cut excess capacity and is currently carrying out an exercise to pare loss-making routes. It recently received the government’s sanction for an equity infusion of Rs 800 crore with a provision of an additional Rs 1,200 crore in the next fiscal.
The airline has also raised over Rs 700 crore from bonds for aircraft acquisition and is slated to announce cost-saving and manpower rationalising measures soon.
Source: Economic Times
According to Air India sources, the three are Gustav Baldauf, currently executive vice-president, flight operations, Austrian Airlines; Brock Friesen, COO, Air Malta, and George Reeleder, managing director, Rapidair, which is Air Canada’s domestic airline. The new COO, sources said, would have the task of salvaging Air India’s fortunes in three years. The three were chosen from 140 applicants for the post.
Air India’s chairman and managing director, Arvind Jadhav, and recently-appointed corporate bigwigs on Air India’s board such as Anand Mahindra, vice-chairman and managing director, M&M, Sajjan Jindal of JSW Steel and Uday Kotak of Kotak Mahindra Bank were part of the team interviewing the prospective COOs.
Of the three, Mr Baldauf has had an India stint in 2005 when he was with Jet Airways as its vice-president for flight operations. Austrian Airlines is also a member of a group of airlines called Star Alliance, which Air India is to formally join soon.
Air India brass feels that Mr Baldauf will be helpful in this because the airline is facing trouble becoming a member of the alliance over quality issues. A final decision will be taken after necessary government approvals are in place, the sources said. Some aviation experts, however, feel the entire exercise is pointless.
“For Air India to hire a COO without a business plan in place does not make much sense. In any case, high calibre people do not apply through advertisements for jobs like these. Air India is not very sure what kind of organisational and management structure it is going to be in the next three to five years’ time,” said Kapil Kaul, CEO (India and Middle East), Centre for Asia Pacific Aviation. Air India does not have a COO. Last month a panel was appointed to fast-track the process.
Air India is in the process of changing its routes as well as its organisational structure. It has incurred heavy losses projected to be over Rs 5,000 crore for the financial year ending March.
The airline has also cut excess capacity and is currently carrying out an exercise to pare loss-making routes. It recently received the government’s sanction for an equity infusion of Rs 800 crore with a provision of an additional Rs 1,200 crore in the next fiscal.
The airline has also raised over Rs 700 crore from bonds for aircraft acquisition and is slated to announce cost-saving and manpower rationalising measures soon.
Source: Economic Times
Tuesday, March 23, 2010
We have one of the lowest cost structure in aviation sector: Sanjay Agarwal, CEO, Spicejet
Sanjay Agarwal , CEO, Spicejet, spoke to ET Now on a trend in shifting of the load factor in aviation stocks, expansion plans and more. Excerpts:
We have of course seen a very strong load factor in the month of February as well as a business traffic especially the industry business traffic having gone up 15% but now we have seen a slight market share decline for carriers like yourselves and Indigo while Kingfisher and Jet have again so once again its sees discount carriers that have seen a little bit of market share lost do you see this trend continuing over the next few months now?
I wouldn't say there is a trend in shifting of the load factor. I think its only due to the fact that for example I can speak for Spicejet we have not taken delivery of an airplane in over 14 months now and next week we are taking delivery of one airplane on top of it we have had one airplane that is undergoing the maintenance checks; so there was a slight reduction in capacity and hence difference in load factor but for most part I don't see a major shift in the market share. However, if you look at the overall industry load factor for the month of February was almost 77% which is very healthy for this time of the year.
Then in terms of the yield, how is the situation playing out for you, is there a pressure on yields as the crude price and ATA prices have been inching up or putting it a little differently what is the average cost of crude that you would need to ensure that yields are stable, would $80 a barrel be good enough for you to maintain margins?
I think the yields have been stable for the last almost six months now and this is the longest I have seen the yields to remain stable in my almost a year and a half in Indian aviation. Now coming back to your question about is $80 a barrel what is priced into the airlines pricing the yields I think $80 a barrel is a sustainable fuel price and the yield should remain stable provided there isn't a significant spike in crude from here on. So $80 a barrel is an acceptable price level for crude.
All eyes especially in the aviation space have always been on the bottom line because that's always been the big drag for them of course when scooting around that Spicejet is likely to breakeven by March can you confirm this for us?
See I have to refrain from making forward looking statement but all I can say is that it is a possibility because our quarter is running better than what we did in the same quarter last year and from here on the rest would be kind of arithmetic if the quarter does turn out to be better than last quarter to say that it is a good possibility that Spicejet might breakeven.
Can you tell us that on the conversion of the FCCBs by Goldman Sachs, Wilbur Ross, Istithmar as well, how much would their equities take be and would they have majority control of the company?
Just a little correction Goldman Sachs investment is not through FCCBs rather it is through warrants whereas Istithmar, WL Ross & Co. or through the bonds, however with all of them converted it would still be less than 50%..
Stake would be around 45%-46% wouldn't...
They will not have majority ownership..
Sure but I was just asking that only the stake would be 45%-46% wouldn't it?
That is about right, I think its about 45%-46% or might be a percent higher so somewhere in that neighbourhood.
The other bit and about international operations you launching them in June with flights to the nearby areas of course its Kathmandu, Colombo, Dhaka but how bigger plan eventually do envisage your international operations for Spicejet as a company because we have seen that Jet Airways for example shutdown a few of its international unviable routes and you were just starting off, how big would this be for Spicejet as a company?
We have very modest international expansion plans, we are not taking incremental aircraft deliveries to deploy them internationally all we are looking for is how do we better your lives our existing fleet and do these foreign destinations offer us an opportunity to better utilise our aircraft. So our international expansion plans are not driven by a desire to become a global airline but rather how do we become even more efficient than where we are right now, we have one of the lowest cost structure in the industry and how do we better it. So that's kind of the driving factor but we are not close to launching the operations because we have applied for permissions to DGCA and the Ministry and once we get the approvals then we will forum up our plans.
Well its clear that Spicejet actually has done well in the current market environment and in terms of capacity while we have seen most other airlines actually slash capacity some current capacity by even as much as 20% to 25% we have seen Spicejet on the other hand raising capacity so is there something that Spicejet is seeing that's different in terms of growth of the industry or are you being able to garner a larger share of the current plan?
See couple of things one the aviation demand is improving that's the trend we have seen for the last almost nine months now and that's what we expect to see for the next 12 months. For the next 12 months we expect the industry demand to improve by another 15% or so year over year and I think what Spicejet is seeing I think everyone has seen that the demand will be healthier going forward. However, Spicejet as I mentioned earlier has one of the lowest cost structures in the industry and it helps us to compete even more effectively and provide affordable travel options to our customers. The overall industry capacity even with Spicejet's addition of five new airplanes that we are planning on adding in the next 12 months the industry capacity will go only up by 7% or so versus a 15% increase in demand which means the overall health of the aviation industry not only Spicejet but for the whole industry should continue to look better.
Source: Economic Times
We have of course seen a very strong load factor in the month of February as well as a business traffic especially the industry business traffic having gone up 15% but now we have seen a slight market share decline for carriers like yourselves and Indigo while Kingfisher and Jet have again so once again its sees discount carriers that have seen a little bit of market share lost do you see this trend continuing over the next few months now?
I wouldn't say there is a trend in shifting of the load factor. I think its only due to the fact that for example I can speak for Spicejet we have not taken delivery of an airplane in over 14 months now and next week we are taking delivery of one airplane on top of it we have had one airplane that is undergoing the maintenance checks; so there was a slight reduction in capacity and hence difference in load factor but for most part I don't see a major shift in the market share. However, if you look at the overall industry load factor for the month of February was almost 77% which is very healthy for this time of the year.
Then in terms of the yield, how is the situation playing out for you, is there a pressure on yields as the crude price and ATA prices have been inching up or putting it a little differently what is the average cost of crude that you would need to ensure that yields are stable, would $80 a barrel be good enough for you to maintain margins?
I think the yields have been stable for the last almost six months now and this is the longest I have seen the yields to remain stable in my almost a year and a half in Indian aviation. Now coming back to your question about is $80 a barrel what is priced into the airlines pricing the yields I think $80 a barrel is a sustainable fuel price and the yield should remain stable provided there isn't a significant spike in crude from here on. So $80 a barrel is an acceptable price level for crude.
All eyes especially in the aviation space have always been on the bottom line because that's always been the big drag for them of course when scooting around that Spicejet is likely to breakeven by March can you confirm this for us?
See I have to refrain from making forward looking statement but all I can say is that it is a possibility because our quarter is running better than what we did in the same quarter last year and from here on the rest would be kind of arithmetic if the quarter does turn out to be better than last quarter to say that it is a good possibility that Spicejet might breakeven.
Can you tell us that on the conversion of the FCCBs by Goldman Sachs, Wilbur Ross, Istithmar as well, how much would their equities take be and would they have majority control of the company?
Just a little correction Goldman Sachs investment is not through FCCBs rather it is through warrants whereas Istithmar, WL Ross & Co. or through the bonds, however with all of them converted it would still be less than 50%..
Stake would be around 45%-46% wouldn't...
They will not have majority ownership..
Sure but I was just asking that only the stake would be 45%-46% wouldn't it?
That is about right, I think its about 45%-46% or might be a percent higher so somewhere in that neighbourhood.
The other bit and about international operations you launching them in June with flights to the nearby areas of course its Kathmandu, Colombo, Dhaka but how bigger plan eventually do envisage your international operations for Spicejet as a company because we have seen that Jet Airways for example shutdown a few of its international unviable routes and you were just starting off, how big would this be for Spicejet as a company?
We have very modest international expansion plans, we are not taking incremental aircraft deliveries to deploy them internationally all we are looking for is how do we better your lives our existing fleet and do these foreign destinations offer us an opportunity to better utilise our aircraft. So our international expansion plans are not driven by a desire to become a global airline but rather how do we become even more efficient than where we are right now, we have one of the lowest cost structure in the industry and how do we better it. So that's kind of the driving factor but we are not close to launching the operations because we have applied for permissions to DGCA and the Ministry and once we get the approvals then we will forum up our plans.
Well its clear that Spicejet actually has done well in the current market environment and in terms of capacity while we have seen most other airlines actually slash capacity some current capacity by even as much as 20% to 25% we have seen Spicejet on the other hand raising capacity so is there something that Spicejet is seeing that's different in terms of growth of the industry or are you being able to garner a larger share of the current plan?
See couple of things one the aviation demand is improving that's the trend we have seen for the last almost nine months now and that's what we expect to see for the next 12 months. For the next 12 months we expect the industry demand to improve by another 15% or so year over year and I think what Spicejet is seeing I think everyone has seen that the demand will be healthier going forward. However, Spicejet as I mentioned earlier has one of the lowest cost structures in the industry and it helps us to compete even more effectively and provide affordable travel options to our customers. The overall industry capacity even with Spicejet's addition of five new airplanes that we are planning on adding in the next 12 months the industry capacity will go only up by 7% or so versus a 15% increase in demand which means the overall health of the aviation industry not only Spicejet but for the whole industry should continue to look better.
Source: Economic Times
Tuesday, March 16, 2010
A year on, Jet, Kingfisher fail to fly in formation
In 2008, when full-service carriers Jet Airways and Kingfisher Airlines announced an operational alliance to improve efficiency and profits, it was supposed to change the dynamics of India’s aviation sector.
More than a year after their much-publicised partnership, industry insiders say the two have not been able to move beyond tactical alliance.
What this means is, while they have joined forces in the areas of sharing ground handling services, parts and airport equipments, they have failed to tie up for sharing of routes and customers.
So, what went wrong?
A senior executive with a rival airline, who did not want to be named, said one of the primary reasons is that the two carriers are competitors and their services are not complementary.
“In such a scenario, there is always the question of who gives up what and in which areas. Such alliances, where you need to enter into code-share and interline agreements, to drive cost efficiency can be tricky if you are competitors,” he said.
Some industry experts even blame the absence of “clear-cut policy” for code-sharing between domestic carriers as the reason for the delay in the deal.
“The DGCA (Directorate General of Civil Aviation) has a broad guideline for it (code-sharing policy). So, any approval for code-sharing is arbitrary. When Jet and Kingfisher asked for clearance, the DGCA did not even look into it,” said an airline executive in the know.
He said Jet-Kingfisher alliance also faced opposition from other carriers, who viewed it as an attempt to kill competition in an industry with only a handful of players. “It was seen as a move that would lead to monopolistic practices in the now competitive market.”
The two leading carriers by number passengers carried had said they would cooperate in eight areas that involved code-sharing pacts, interline agreements, jet fuel management, sharing of ground-handling, cross-selling of flight inventories, network rationalisation, cross-utilisation of crew and merging of loyalty schemes.
Guru Malladi, partner - advisory services, infrastructure, real estate and government, Ernst and Young, says India’s aviation sector had not yet reached the maturity for a strategic tie-up of the kind that jet and Kingfisher had envisioned.
“We (India) do have many players to pressurise airlines into alliance. These alliances can bring in immediate benefits to airlines but, it appears, Jet and Kingfisher have only gone for tactical alliance and not entered into any strategic relationship,” he said.
Malladi says the argument that there was no proper policy for code-sharing is weak. “A framework for it (policy) exists. Some operators may see it as inadequate but if they (airlines) want to connect on it they can do it,” he said.
Samyukt Sridharan, chief commercial officer (CCO) of SpiceJet, said, today most airlines were cooperating for spares, airport equipments and had informal arrangement to transfer passenger to each other in case of cancellation of flights.
“We do this to avoid any inconvenience to our passenger but we have never thought of anything beyond that,” he said.
Ernst & Young’s Malladi says, once domestic carriers become part of global alliances such as Star Alliance, OneWorld and Sky Team, they would gain from strategic relationship with not just overseas carriers but even the local airlines.
State-owned National Aviation Company of India Ltd (Nacil) has been invited to Star Alliance while Jet has evinced interest in being a member of the Sky Team. Kingfisher is also vying to be part of the OneWorld.
“It (global alliances) has helped airlines around the world to turnaround as it pushed up their revenues with widening reach,” said Malladi.
Source: DNAIndia
More than a year after their much-publicised partnership, industry insiders say the two have not been able to move beyond tactical alliance.
What this means is, while they have joined forces in the areas of sharing ground handling services, parts and airport equipments, they have failed to tie up for sharing of routes and customers.
So, what went wrong?
A senior executive with a rival airline, who did not want to be named, said one of the primary reasons is that the two carriers are competitors and their services are not complementary.
“In such a scenario, there is always the question of who gives up what and in which areas. Such alliances, where you need to enter into code-share and interline agreements, to drive cost efficiency can be tricky if you are competitors,” he said.
Some industry experts even blame the absence of “clear-cut policy” for code-sharing between domestic carriers as the reason for the delay in the deal.
“The DGCA (Directorate General of Civil Aviation) has a broad guideline for it (code-sharing policy). So, any approval for code-sharing is arbitrary. When Jet and Kingfisher asked for clearance, the DGCA did not even look into it,” said an airline executive in the know.
He said Jet-Kingfisher alliance also faced opposition from other carriers, who viewed it as an attempt to kill competition in an industry with only a handful of players. “It was seen as a move that would lead to monopolistic practices in the now competitive market.”
The two leading carriers by number passengers carried had said they would cooperate in eight areas that involved code-sharing pacts, interline agreements, jet fuel management, sharing of ground-handling, cross-selling of flight inventories, network rationalisation, cross-utilisation of crew and merging of loyalty schemes.
Guru Malladi, partner - advisory services, infrastructure, real estate and government, Ernst and Young, says India’s aviation sector had not yet reached the maturity for a strategic tie-up of the kind that jet and Kingfisher had envisioned.
“We (India) do have many players to pressurise airlines into alliance. These alliances can bring in immediate benefits to airlines but, it appears, Jet and Kingfisher have only gone for tactical alliance and not entered into any strategic relationship,” he said.
Malladi says the argument that there was no proper policy for code-sharing is weak. “A framework for it (policy) exists. Some operators may see it as inadequate but if they (airlines) want to connect on it they can do it,” he said.
Samyukt Sridharan, chief commercial officer (CCO) of SpiceJet, said, today most airlines were cooperating for spares, airport equipments and had informal arrangement to transfer passenger to each other in case of cancellation of flights.
“We do this to avoid any inconvenience to our passenger but we have never thought of anything beyond that,” he said.
Ernst & Young’s Malladi says, once domestic carriers become part of global alliances such as Star Alliance, OneWorld and Sky Team, they would gain from strategic relationship with not just overseas carriers but even the local airlines.
State-owned National Aviation Company of India Ltd (Nacil) has been invited to Star Alliance while Jet has evinced interest in being a member of the Sky Team. Kingfisher is also vying to be part of the OneWorld.
“It (global alliances) has helped airlines around the world to turnaround as it pushed up their revenues with widening reach,” said Malladi.
Source: DNAIndia
Friday, March 12, 2010
Kingfisher, Jet look to expand foreign routes
Debt-laden Kingfisher Airlines Ltd and Jet Airways (India) Ltd are growing their international presence after stalling expansion plans for a year due to the recession.
The civil aviation ministry has cleared Kingfisher’s proposal to join oneworld, an international grouping of airlines, while Jet has decided to increase its network in West Asia and Sri Lanka, two ministry officials said on condition of anonymity.
Joining an airline alliance has benefits such as code-sharing, use of lounges of member carriers and consolidation of frequent flyer miles. Code-sharing is a ticket-selling deal that allows travellers to connect seamlessly to destinations on flights of more than one airline.
Kingfisher Airlines' proposal was cleared this week, one of the officials said.
“Oneworld will do an audit soon as the next step for joining the alliance,” said a Kingfisher official, who also declined to be named because he is not authorized to speak to the media.
The carrier’s chief executive Vijay Mallya had said last month that the process of joining oneworld will take 12-18 months.
Kingfisher’s second proposal to have a code-sharing agreement with British Airways Plc.—for select domestic routes where it flies and on points beyond which British Airways flies—is yet to be cleared.
Jet Airways has sought permissions to fly to Saudi Arabian destinations such as Riyadh, Dammam and Jeddah using Boeing 737 aircraft from New Delhi, besides starting new flights to Colombo from Delhi, Mumbai and Chennai. It currently flies to Riyadh and Jeddah from Mumbai.
The airline has said it does not plan to expand using wide-body aircraft such as Boeing 777 or Airbus A330, and will only look at regional routes for international expansion this year.
“We will only look at adding short-haul routes, which will be operated on a (Boeing) 737, which is a smaller aircraft,” K.G. Vishwanath, vice-president, commercial strategy and investor relations, Jet Airways, had said in January.
Kingfisher is saddled with more than Rs6,000 crore in debt, while Jet was Rs14,000 crore in the red as of 31 December.
Source: Mint
The civil aviation ministry has cleared Kingfisher’s proposal to join oneworld, an international grouping of airlines, while Jet has decided to increase its network in West Asia and Sri Lanka, two ministry officials said on condition of anonymity.
Joining an airline alliance has benefits such as code-sharing, use of lounges of member carriers and consolidation of frequent flyer miles. Code-sharing is a ticket-selling deal that allows travellers to connect seamlessly to destinations on flights of more than one airline.
Kingfisher Airlines' proposal was cleared this week, one of the officials said.
“Oneworld will do an audit soon as the next step for joining the alliance,” said a Kingfisher official, who also declined to be named because he is not authorized to speak to the media.
The carrier’s chief executive Vijay Mallya had said last month that the process of joining oneworld will take 12-18 months.
Kingfisher’s second proposal to have a code-sharing agreement with British Airways Plc.—for select domestic routes where it flies and on points beyond which British Airways flies—is yet to be cleared.
Jet Airways has sought permissions to fly to Saudi Arabian destinations such as Riyadh, Dammam and Jeddah using Boeing 737 aircraft from New Delhi, besides starting new flights to Colombo from Delhi, Mumbai and Chennai. It currently flies to Riyadh and Jeddah from Mumbai.
The airline has said it does not plan to expand using wide-body aircraft such as Boeing 777 or Airbus A330, and will only look at regional routes for international expansion this year.
“We will only look at adding short-haul routes, which will be operated on a (Boeing) 737, which is a smaller aircraft,” K.G. Vishwanath, vice-president, commercial strategy and investor relations, Jet Airways, had said in January.
Kingfisher is saddled with more than Rs6,000 crore in debt, while Jet was Rs14,000 crore in the red as of 31 December.
Source: Mint
Friday, March 5, 2010
Airbus delivers A320 aircraft to Air India, IndiGo
French aircraft manufacturer Airbus on Wednesday delivered one A320 aircraft each to flag carrier, Air India, and low-cost private carrier, IndiGo, in Hyderabad during the ongoing India Aviation 2010 airshow.
This delivery makes it a total of 74 out of a total of 111 aircraft ordered by Air India from Airbus and Boeing for its domestic and international operations. A merged Air India has on order 43 Airbus aircraft, of which 20 are A321, 19 A319 and four A320's. With the latest delivery the carrier now has received 19 A321, 19 A319 and one A320 Airbus aircraft.
"The remaining A320 and A321 aircraft are scheduled to be delivered by April," airline officials said.
The airline also has on order 68 Boeing aircraft of which 35 -- eight B777-200LR, nine B777-300ER and 18 B737-200 have been delivered. The 737-200's are meant for low cost operative Air India Express.
Currently, Air India flies to 51 international destinations across US, Europe, Canada, East Asia, Southeast Asia and the Gulf. It has 62 destinations on its domestic network.
The A320 delivered to IndiGo makes it that carrier's 25th aircraft. It has a total of 100 aircraft on order.
Source: Domain-B
This delivery makes it a total of 74 out of a total of 111 aircraft ordered by Air India from Airbus and Boeing for its domestic and international operations. A merged Air India has on order 43 Airbus aircraft, of which 20 are A321, 19 A319 and four A320's. With the latest delivery the carrier now has received 19 A321, 19 A319 and one A320 Airbus aircraft.
"The remaining A320 and A321 aircraft are scheduled to be delivered by April," airline officials said.
The airline also has on order 68 Boeing aircraft of which 35 -- eight B777-200LR, nine B777-300ER and 18 B737-200 have been delivered. The 737-200's are meant for low cost operative Air India Express.
Currently, Air India flies to 51 international destinations across US, Europe, Canada, East Asia, Southeast Asia and the Gulf. It has 62 destinations on its domestic network.
The A320 delivered to IndiGo makes it that carrier's 25th aircraft. It has a total of 100 aircraft on order.
Source: Domain-B
Tuesday, March 2, 2010
Food & beverage sales at Airports Zoom as Low Cost Airlines expand capacity
One industry doing well even in the current difficult times is the food and beverage franchise at all domestic airports. With the cost-cutting prevalent today, more travelers are opting for the LCCs (Low Cost Carriers) rather than the full service airlines.
Since food is not part of the ticket price at these airlines, passengers are opting to eat their fill at airports before boarding flights. In the last couple of years, the proportion of flights flown by LCCs has increased from 45:55 to 60:40 at present, and is expected to go up to 70:30 by the end of the year. Especially since all the LCCs including Spicejet, Indigo and Go Air are adding capacity. In these flights, food is available but the options are fairly limited with exorbitant rates sometimes charged.
As a result, the volume of business done by the retail chains and food outlets that have licensed or leased space has increased by over 30%. Cafe chain Barista that has outlets across metro airports in the country says it has seen a significant growth in F&B sales, with their outlets at the Bangalore and Mumbai airports registering 30% growth over the last year. This has also become a source of innovation. For example, BIA’s F&B partner, HMS Host, created a food offering called ‘Grab n fly’. This included a variety of light and easy packaged food products, at prices starting from Rs 50 that a passenger could carry onto the aircraft.
The business offers interesting options in terms of how airports as well as F&B outlets might shape the airport location as a retail destination in future. Pizza Corner for example has a concept called Pizza Corner Express which it offers at malls and has extended the same to its airport franchises as well.
Possibly a combination of retail lounge as well as coffee hangout might be possible in future, or a combination of coffee shop and bookstore as well as wi-fi center as is found in some of the Crossword outlets today. The possibilities are endless and only need initiative.
With airports working on the PPP model now, airport managements will be looking at alternative revenue sources to ensure adequate returns. This might be one of the ways they could add a lot of revenue while providing additional services and value to customers.
Source: TestFunda
Since food is not part of the ticket price at these airlines, passengers are opting to eat their fill at airports before boarding flights. In the last couple of years, the proportion of flights flown by LCCs has increased from 45:55 to 60:40 at present, and is expected to go up to 70:30 by the end of the year. Especially since all the LCCs including Spicejet, Indigo and Go Air are adding capacity. In these flights, food is available but the options are fairly limited with exorbitant rates sometimes charged.
As a result, the volume of business done by the retail chains and food outlets that have licensed or leased space has increased by over 30%. Cafe chain Barista that has outlets across metro airports in the country says it has seen a significant growth in F&B sales, with their outlets at the Bangalore and Mumbai airports registering 30% growth over the last year. This has also become a source of innovation. For example, BIA’s F&B partner, HMS Host, created a food offering called ‘Grab n fly’. This included a variety of light and easy packaged food products, at prices starting from Rs 50 that a passenger could carry onto the aircraft.
The business offers interesting options in terms of how airports as well as F&B outlets might shape the airport location as a retail destination in future. Pizza Corner for example has a concept called Pizza Corner Express which it offers at malls and has extended the same to its airport franchises as well.
Possibly a combination of retail lounge as well as coffee hangout might be possible in future, or a combination of coffee shop and bookstore as well as wi-fi center as is found in some of the Crossword outlets today. The possibilities are endless and only need initiative.
With airports working on the PPP model now, airport managements will be looking at alternative revenue sources to ensure adequate returns. This might be one of the ways they could add a lot of revenue while providing additional services and value to customers.
Source: TestFunda
Thursday, February 25, 2010
IndiGo, Spice expand fleet; Jet, AI, KF cut capacity
No-frills airlines IndiGo and SpiceJet are aggressively adding to their fleet while their full-service counterparts Air India, Kingfisher and Jet Airways are cutting capacity after tough couple of years, indicating a difference of opinion in the industry over future prospects.
The domestic airlines are estimated to have lost over $3 billion (Rs 14,000 crore) in the past two years mainly on account of sharp drop in demand growth, excess capacity, high fuel prices and at times irrational pricing by airlines to fill the excess capacity.
Delhi-based IndiGo has recently sought the government permission to import 10 Airbus 320 jets to be deployed on various domestic routes in the coming months. The airline recently launched Re 1 fare (exclusive of fuel surcharge and taxes) on several routes.
The Indian airline industry contributes over 20% to the global airline industry’s losses while having only 2% share in the world air traffic.
“We have allowed IndiGo to import 10 more A320s. They have proposed to station two aircraft each at Ahmedabad, Lucknow, Chennai and Hyderabad. In its proposal, the carrier has mentioned it will decide the routes for these jets based on traffic potential,” a senior civil aviation ministry official told ET on condition of anonymity.
In the past nine months, all the three full-service carriers have put in additional seats by converting their two-class configured jet into single class. This way they have managed to keep their operational cost and fleet size same while adding capacity in the market.
SpiceJet has submitted its application to import three B737s to the empowered committee on aircraft acquisition in the civil aviation ministry. The airline wants to add three more jets to its fleet by the end of next month.
Kapil Kaul, aviation expert and head of global consulting firm Centre for Asia Pacific Aviation (CAPA) in India, however, cautions against undue haste in adding capacity.
“When there is growth, airlines are tempted to add capacity triggering others to do same. There should be capacity and pricing discipline, otherwise the lessons learnt in the past five years would be meaningless,” he added.
The domestic air traffic has grown over 20% in the past few months, but on a low base of the past year. Demand is expected to soften in the coming lean season. The airlines are currently managing to fill only 75-80% of their seats, which means there is still additional capacity in the market.
Faced with cash crunch, SpiceJet had earlier roped in WL Ross &Co to invest in the company. After the financial crisis caused aviation growth to falter, state-owned Air India had decided to trim its fleet size to the extent of 30% to 105 jets by 2011. Kingfisher has already cut capacity reducing its fleet to 68 aircraft from 89 earlier. Besides deferring deliveries of aircraft, Jet Airways is negotiating with royal Brunei Airlines to lease out three B777s.
“All the three big boys of airline industry are sitting on the piles of huge debt and losses. Any move to gain market share at the cost of yield would shaken investor confidence,” an aviation analyst, who did not wish to be identified, said.
Source: Economic Times
The domestic airlines are estimated to have lost over $3 billion (Rs 14,000 crore) in the past two years mainly on account of sharp drop in demand growth, excess capacity, high fuel prices and at times irrational pricing by airlines to fill the excess capacity.
Delhi-based IndiGo has recently sought the government permission to import 10 Airbus 320 jets to be deployed on various domestic routes in the coming months. The airline recently launched Re 1 fare (exclusive of fuel surcharge and taxes) on several routes.
The Indian airline industry contributes over 20% to the global airline industry’s losses while having only 2% share in the world air traffic.
“We have allowed IndiGo to import 10 more A320s. They have proposed to station two aircraft each at Ahmedabad, Lucknow, Chennai and Hyderabad. In its proposal, the carrier has mentioned it will decide the routes for these jets based on traffic potential,” a senior civil aviation ministry official told ET on condition of anonymity.
In the past nine months, all the three full-service carriers have put in additional seats by converting their two-class configured jet into single class. This way they have managed to keep their operational cost and fleet size same while adding capacity in the market.
SpiceJet has submitted its application to import three B737s to the empowered committee on aircraft acquisition in the civil aviation ministry. The airline wants to add three more jets to its fleet by the end of next month.
Kapil Kaul, aviation expert and head of global consulting firm Centre for Asia Pacific Aviation (CAPA) in India, however, cautions against undue haste in adding capacity.
“When there is growth, airlines are tempted to add capacity triggering others to do same. There should be capacity and pricing discipline, otherwise the lessons learnt in the past five years would be meaningless,” he added.
The domestic air traffic has grown over 20% in the past few months, but on a low base of the past year. Demand is expected to soften in the coming lean season. The airlines are currently managing to fill only 75-80% of their seats, which means there is still additional capacity in the market.
Faced with cash crunch, SpiceJet had earlier roped in WL Ross &Co to invest in the company. After the financial crisis caused aviation growth to falter, state-owned Air India had decided to trim its fleet size to the extent of 30% to 105 jets by 2011. Kingfisher has already cut capacity reducing its fleet to 68 aircraft from 89 earlier. Besides deferring deliveries of aircraft, Jet Airways is negotiating with royal Brunei Airlines to lease out three B777s.
“All the three big boys of airline industry are sitting on the piles of huge debt and losses. Any move to gain market share at the cost of yield would shaken investor confidence,” an aviation analyst, who did not wish to be identified, said.
Source: Economic Times
Wednesday, February 24, 2010
Kingfisher overseas ops to turn profitable this year: Mallya
Kingfisher Airlines, which today announced joining the global airline grouping 'oneworld', expressed confidence that its international operations will turn profitable this year.
"International is still losing and it is not unexpected because it takes time to build international routes in face of foreign competition. Takes a bit of time," Kingfisher Airlines Chairman Vijay Mallya told PTI after the airline announced that it will join the oneworld alliance.
"During the course of the year, we should turn that (international business) profitable," he added.
The airline's association with oneworld would enable it to offer passengers an enhanced choice of routes serviced by 11 existing member airlines and vice-versa.
Kingfisher will become the first Indian carrier in the alliance that includes American Airlines, British Airways and Finnair. With around 400 daily departures, Kingfisher will bring to oneworld 58 new Indian destinations, enhancing the alliance's portfolio of routes.
"Kingfisher's joining oneworld means for Finnair a very extensive destination network within India. Kingfisher is one of the world's few five-star quality airlines and it complements Finnair service network in India very well," said Kari Stalbow, Director (Indian sub-continent), Finnair, a oneworld member which flies from Helsinki to Delhi.
Source: Economic Times
"International is still losing and it is not unexpected because it takes time to build international routes in face of foreign competition. Takes a bit of time," Kingfisher Airlines Chairman Vijay Mallya told PTI after the airline announced that it will join the oneworld alliance.
"During the course of the year, we should turn that (international business) profitable," he added.
The airline's association with oneworld would enable it to offer passengers an enhanced choice of routes serviced by 11 existing member airlines and vice-versa.
Kingfisher will become the first Indian carrier in the alliance that includes American Airlines, British Airways and Finnair. With around 400 daily departures, Kingfisher will bring to oneworld 58 new Indian destinations, enhancing the alliance's portfolio of routes.
"Kingfisher's joining oneworld means for Finnair a very extensive destination network within India. Kingfisher is one of the world's few five-star quality airlines and it complements Finnair service network in India very well," said Kari Stalbow, Director (Indian sub-continent), Finnair, a oneworld member which flies from Helsinki to Delhi.
Source: Economic Times
Friday, February 19, 2010
SpiceJet to raise up to $75 million
India's second largest low-fare carrier, SpiceJet Ltd, is seeking to raise USD 75 million by selling new shares as it prepares to start international services, the Mint newspaper reported on Thursday.
SpiceJet Chief Executive Officer Sanjay Aggarwal confirmed the development, without divulging details, the paper reported.
"We are in the process of raising capital anywhere between USD 50 and USD 75 million," Sanjay Aggarwal was quoted by the paper as saying.
"But it is too premature to comment about the fund-raising details," he added.
Source: MoneyControl
SpiceJet Chief Executive Officer Sanjay Aggarwal confirmed the development, without divulging details, the paper reported.
"We are in the process of raising capital anywhere between USD 50 and USD 75 million," Sanjay Aggarwal was quoted by the paper as saying.
"But it is too premature to comment about the fund-raising details," he added.
Source: MoneyControl
Thursday, February 18, 2010
SpiceJet takes off from Delhi, without using the runway
An aircraft is certainly a treat for the eyes, as it roars during takeoff, or soars through the sky. However, few would appreciate that an aircraft could also be used in a static outdoor innovation, creating hype and ensuring eyeballs.
Low cost carrier (LCC) SpiceJet, in association with its outdoor agency MOMS, has put up a 40-feet-long replica of Boeing 737-900ER, one of the latest additions to the company's fleet, on a green patch en route to Terminal 1D of Indira Gandhi International Airport in Delhi. The structure, put together over a period of two months, is made out of iron and covered with fibre glass to provide the desired finish. In order to achieve a better view, the agency has also carried out landscaping on the site.
Though a similar idea was executed by Kingfisher in 2008, where a 35-feet replica of the Airbus A340 was displayed at the Bangalore International Airport (BIA), the SpiceJet innovation is the first of its kind in Delhi.
Speaking on the innovation, Anish Srikrishna, senior vice-president and head of marketing, SpiceJet, says, "Considering the fact that we target the urban upper-middle class, outdoor works best for us; more so, when the innovation is as disruptive as this. A brand is an outcome of the product, the services offered and the way it speaks to its audience. Confidence in our brand is the key element of our communication."
The outdoor campaign is being rolled out in 18 cities where SpiceJet provides services, including Delhi, Mumbai, Kolkata, Guwahati, Bengaluru, Ahmedabad and Goa. Outdoor formats such as hoardings, neon signages, bus shelters and kiosks will be used for the campaign.
Without revealing the spends on the campaign, Srikrishna says that the company began advertising only in the year 2008-09. It relied on outdoor and print initially; and since then, outdoor continues to be a crucial part of the company's media plan.
Recently, the LCC came up with a set of TVCs, which spoke about the services provided by SpiceJet to its customers, such as taking care of unaccompanied minors for no extra charge; or carrying out Web check-ins amidst its wide network and reach. The use of television is yet another first for the company.
In the LCC category, SpiceJet claims to carry the maximum number of people per departure.
Source: AFAQs
Low cost carrier (LCC) SpiceJet, in association with its outdoor agency MOMS, has put up a 40-feet-long replica of Boeing 737-900ER, one of the latest additions to the company's fleet, on a green patch en route to Terminal 1D of Indira Gandhi International Airport in Delhi. The structure, put together over a period of two months, is made out of iron and covered with fibre glass to provide the desired finish. In order to achieve a better view, the agency has also carried out landscaping on the site.
Though a similar idea was executed by Kingfisher in 2008, where a 35-feet replica of the Airbus A340 was displayed at the Bangalore International Airport (BIA), the SpiceJet innovation is the first of its kind in Delhi.
Speaking on the innovation, Anish Srikrishna, senior vice-president and head of marketing, SpiceJet, says, "Considering the fact that we target the urban upper-middle class, outdoor works best for us; more so, when the innovation is as disruptive as this. A brand is an outcome of the product, the services offered and the way it speaks to its audience. Confidence in our brand is the key element of our communication."
The outdoor campaign is being rolled out in 18 cities where SpiceJet provides services, including Delhi, Mumbai, Kolkata, Guwahati, Bengaluru, Ahmedabad and Goa. Outdoor formats such as hoardings, neon signages, bus shelters and kiosks will be used for the campaign.
Without revealing the spends on the campaign, Srikrishna says that the company began advertising only in the year 2008-09. It relied on outdoor and print initially; and since then, outdoor continues to be a crucial part of the company's media plan.
Recently, the LCC came up with a set of TVCs, which spoke about the services provided by SpiceJet to its customers, such as taking care of unaccompanied minors for no extra charge; or carrying out Web check-ins amidst its wide network and reach. The use of television is yet another first for the company.
In the LCC category, SpiceJet claims to carry the maximum number of people per departure.
Source: AFAQs
Wednesday, February 17, 2010
SpiceJet mulls domestic capacity expansion
Low-cost carrier, SpiceJet, which has around 12% market share, is looking at expanding its capacity in the domestic market even as it is awaiting permission to fly on international routes from the civil aviation ministry. Samyukth Sridharan, chief commercial officer, SpiceJet said that the company will get delivery of four new aircraft by end of this year and three new planes by next year. “We are looking at adding more frequency in the routes already operated by us,” he said.
On the horizon could be busy sectors connecting major metros and mini-metros of the country like New Delhi, Mumbai, Hyderabad, Chennai and Bangalore. This is on back of recovery in the airline passengers, which recorded a jump of around 23% in January 2010 compared to the same period year ago. Sridharan added that the airline could also look at tapping into Tier II and Tier III cities, which are still not serviced by it. Though he said that the airline has identified gaps, Sridharan refused to indicate the cities where SpiceJet could start operations.
With the recovery in airline traffic, the company had recorded a profit of Rs 105 crore in quarter ending December 2009 compared to a net loss in the corresponding quarter last fiscal. Talking about the airline’s international expansion plans, Sridharan said that the company is expecting to get the go-ahead from DGCA in a month and a half. “We will possibly start our international operations in 2010,” he said.
Source: Financial Express
On the horizon could be busy sectors connecting major metros and mini-metros of the country like New Delhi, Mumbai, Hyderabad, Chennai and Bangalore. This is on back of recovery in the airline passengers, which recorded a jump of around 23% in January 2010 compared to the same period year ago. Sridharan added that the airline could also look at tapping into Tier II and Tier III cities, which are still not serviced by it. Though he said that the airline has identified gaps, Sridharan refused to indicate the cities where SpiceJet could start operations.
With the recovery in airline traffic, the company had recorded a profit of Rs 105 crore in quarter ending December 2009 compared to a net loss in the corresponding quarter last fiscal. Talking about the airline’s international expansion plans, Sridharan said that the company is expecting to get the go-ahead from DGCA in a month and a half. “We will possibly start our international operations in 2010,” he said.
Source: Financial Express
Monday, February 15, 2010
Bomb threat on SpiceJet flight
A bomb scare in SpiceJet flight SG323 sparked panic at the Netaji Subhas Chandra Bose International Airport, resulting in the cancellation of the flight to Bagdogra. Following a thorough check, the security agencies did not find anything suspicious on the flight.
On Sunday morning, when the plane took off from Chennai and was about to land at Kolkata airport, the cabin crew noticed a tissue paper in the toilet, with “Bomb on Board” written in bold.
Thereafter, the cabin crew immediately informed the pilot who brought the matter to the notice of the Air Traffic Control at Kolkata airport.
As soon as the plane landed at Kolkata airport around 12.50 pm, the CISF personnel surrounded the plane. The Bomb Disposal Squad along with the CISF personnel thoroughly searched the flight. The flight was searched twice by the security agencies but nothing suspicious was found.
The search went on for more than two hours. The ordeal of the 167 passengers on board ended around 3.30 pm when the passengers were finally released.
The flight was scheduled to leave for Bagdogra from Kolkata and of the 167 passengers around 30 were scheduled to fly to Bagdogra. The flight to Bagdogra was, however, cancelled due to the search operations. Later in the evening, the plane left for Bangalore.
“We are investigating the matter. No one has been detained so far but investigation will continue,” said a senior CISF official at the airport.
According to airport officials, it appeared to be a prank but with recent terror attacks in Pune, the authorities did not want to take any chance.
Source: Indian Express
On Sunday morning, when the plane took off from Chennai and was about to land at Kolkata airport, the cabin crew noticed a tissue paper in the toilet, with “Bomb on Board” written in bold.
Thereafter, the cabin crew immediately informed the pilot who brought the matter to the notice of the Air Traffic Control at Kolkata airport.
As soon as the plane landed at Kolkata airport around 12.50 pm, the CISF personnel surrounded the plane. The Bomb Disposal Squad along with the CISF personnel thoroughly searched the flight. The flight was searched twice by the security agencies but nothing suspicious was found.
The search went on for more than two hours. The ordeal of the 167 passengers on board ended around 3.30 pm when the passengers were finally released.
The flight was scheduled to leave for Bagdogra from Kolkata and of the 167 passengers around 30 were scheduled to fly to Bagdogra. The flight to Bagdogra was, however, cancelled due to the search operations. Later in the evening, the plane left for Bangalore.
“We are investigating the matter. No one has been detained so far but investigation will continue,” said a senior CISF official at the airport.
According to airport officials, it appeared to be a prank but with recent terror attacks in Pune, the authorities did not want to take any chance.
Source: Indian Express
Thursday, February 11, 2010
Airlines start recruiting again
After a year of turbulence, the aviation sector is now seeing a resurgence in hiring. Last year, during the peak of the downturn, the industry witnessed scenes of tears and mass protests by cabin crew personnel and pilots, as the sector went on a layoff spree.
But now, with passenger load factors having increased by 30% in the last quarter over the same quarter a year ago, and with further growth expected, some airlines, especially the low-cost carriers, are going in for an expansion.
Airlines that had downsized capacities last year are thinking of adding capacity. This has opened up the job market, as some airlines have begun hiring pilots, co-pilots, cabin crew and engineers.
Industry analysts call this a ‘quiet resurgence in hiring' as the aviation sector is still to fly out of the red. Besides, with foreign carriers poaching Indian talent, many vacancies have arisen that some airlines are trying to fill.
According to Kapil Kaul, of Centre for Asia Pacific Aviation (CAPA), hiring has been initiated by low-cost carriers like Spicejet, IndiGo and Go Air, as they have plans to add new aircraft and expand their services this year. Between the three low-cost carriers, around 12-15 new aircraft would be added by the end of this year.
A Spicejet official said it would be receiving 5 new aircraft this year and that the company had a hiring agenda. "We are extremely bullish on hiring pilots, co-pilots, and cabin crew, as we have aggressive plans to increase the network," said M Thiagarajan, MD, Paramount Airways.
A senior official of a full-service airline said the airline was hiring in order to fill vacancies that had arisen due to high attrition.
Source: Times of India
But now, with passenger load factors having increased by 30% in the last quarter over the same quarter a year ago, and with further growth expected, some airlines, especially the low-cost carriers, are going in for an expansion.
Airlines that had downsized capacities last year are thinking of adding capacity. This has opened up the job market, as some airlines have begun hiring pilots, co-pilots, cabin crew and engineers.
Industry analysts call this a ‘quiet resurgence in hiring' as the aviation sector is still to fly out of the red. Besides, with foreign carriers poaching Indian talent, many vacancies have arisen that some airlines are trying to fill.
According to Kapil Kaul, of Centre for Asia Pacific Aviation (CAPA), hiring has been initiated by low-cost carriers like Spicejet, IndiGo and Go Air, as they have plans to add new aircraft and expand their services this year. Between the three low-cost carriers, around 12-15 new aircraft would be added by the end of this year.
A Spicejet official said it would be receiving 5 new aircraft this year and that the company had a hiring agenda. "We are extremely bullish on hiring pilots, co-pilots, and cabin crew, as we have aggressive plans to increase the network," said M Thiagarajan, MD, Paramount Airways.
A senior official of a full-service airline said the airline was hiring in order to fill vacancies that had arisen due to high attrition.
Source: Times of India
Wednesday, February 10, 2010
Turbulence ends, airlines begin hiring pilots, crew
After a year of turbulence, the aviation sector is now seeing a resurgence in hiring. Last year, during the peak of the downturn, the industry witnessed scenes of tears and mass protests by cabin crew personnel and pilots, as the sector went on a layoff spree.
But now, with passenger load factors having increased by 30% in the last quarter over the same quarter a year ago, and with further growth expected, some airlines, especially the low-cost carriers, are going in for an expansion. Moreover, airlines that had downsized their capacity last year are now thinking of adding capacity. This has opened up the job market, as some airlines have begun hiring pilots, co-pilots, cabin crew and engineers.
Industry analysts call this a ‘quiet resurgence in hiring’ as the aviation sector is still to fly out of the red. Besides, with foreign carriers poaching Indian talent, many vacancies have arisen that some airlines are trying to fill.
According to Kapil Kaul, CEO for the Indian Subcontinent and Middle East, at the Centre for Asia Pacific Aviation (CAPA), hiring has been initiated by low-cost carriers like Spicejet, IndiGo and Go Air, as they have plans to add new aircraft and expand their services this year.
Between the three low-cost carriers, around 12-15 new aircraft would be added by the end of this year. A Spicejet official confirmed to TOI that the airline would be receiving 5 new aircraft this year and that the company had a hiring agenda . But he refused to give further details.
IATA, the international air transport association, in its latest quarterly business confidence survey of airline CFOs, states that though job cuts were still happening in the fourth quarter of 2009, for the first time since April 2008, a majority of CFOs now expect to increase or hold employment steady in the year ahead.
“We are extremely bullish on hiring pilots, co-pilots, and cabin crew, as we have aggressive plans to increase the network,” said M Thiagarajan, managing director, Paramount Airways. Paramount, the south-based full service carrier, currently operates around 72 flights a day. By the end of this calendar year it will increase its daily operations to around 120 flights, a growth of 67%.
A senior official of a full-service airline, who asked not to be named, told TOI that the airline was hiring in order to fill vacancies that had arisen due to high attrition. The attrition rate is pegged between 15% and 20%.
Kaul thinks that mass hiring, the kind that the Indian aviation sector had witnessed in its heydays, would happen post the third quarter of the next financial year.
Source: Economic Times
But now, with passenger load factors having increased by 30% in the last quarter over the same quarter a year ago, and with further growth expected, some airlines, especially the low-cost carriers, are going in for an expansion. Moreover, airlines that had downsized their capacity last year are now thinking of adding capacity. This has opened up the job market, as some airlines have begun hiring pilots, co-pilots, cabin crew and engineers.
Industry analysts call this a ‘quiet resurgence in hiring’ as the aviation sector is still to fly out of the red. Besides, with foreign carriers poaching Indian talent, many vacancies have arisen that some airlines are trying to fill.
According to Kapil Kaul, CEO for the Indian Subcontinent and Middle East, at the Centre for Asia Pacific Aviation (CAPA), hiring has been initiated by low-cost carriers like Spicejet, IndiGo and Go Air, as they have plans to add new aircraft and expand their services this year.
Between the three low-cost carriers, around 12-15 new aircraft would be added by the end of this year. A Spicejet official confirmed to TOI that the airline would be receiving 5 new aircraft this year and that the company had a hiring agenda . But he refused to give further details.
IATA, the international air transport association, in its latest quarterly business confidence survey of airline CFOs, states that though job cuts were still happening in the fourth quarter of 2009, for the first time since April 2008, a majority of CFOs now expect to increase or hold employment steady in the year ahead.
“We are extremely bullish on hiring pilots, co-pilots, and cabin crew, as we have aggressive plans to increase the network,” said M Thiagarajan, managing director, Paramount Airways. Paramount, the south-based full service carrier, currently operates around 72 flights a day. By the end of this calendar year it will increase its daily operations to around 120 flights, a growth of 67%.
A senior official of a full-service airline, who asked not to be named, told TOI that the airline was hiring in order to fill vacancies that had arisen due to high attrition. The attrition rate is pegged between 15% and 20%.
Kaul thinks that mass hiring, the kind that the Indian aviation sector had witnessed in its heydays, would happen post the third quarter of the next financial year.
Source: Economic Times
Monday, February 8, 2010
Kingfisher Air hires US' Seabury to advise on recast
Kingfisher Airlines Ltd has roped in US firm Seabury Aviation and Aerospace to advise on restructuring its operations and help the airline boost performance on the back of a reviving domestic industry.
"...Seabury has been hired to come in and assist us in sustaining long-term profitability by further strengthening the operational and financial performance of the company so that we are well poised to ride the upturn and capitalise on this opportunity ," the airline told Reuters in an e-mail.
Prakash Mirpuri, Vice President, Corporate Communications, told Retuers on Monday that fleet optimisation would be one of the areas the consultancy would advise Kingfisher on.
The airline has a fleet size of 66 aircraft. Mirpuri did not say how soon Seabury would come up with its recommendations. Seabury provides expertise to the aviation and aerospace industries in areas of strategy, business planning, network development and fleet optimisation.
The decision to rope in Seabury comes after Kingfisher reported a net loss of Rs 4.2 billion for the quarter ended December. Its listed peers Jet Airways and SpiceJet posted net profits for the same period, helped by an upturn in domestic air traffic.
"It is premature to say the mere appointment of a consultant is good news. Their topline is not much of a worry, what is of worry is the cost side that they have to start rationalising," an analyst from a local brokerage, who declined to be named, said. India's domestic air passenger demand went up 35 per cent while capacity increased 10 per cent in December, as per data from industry regulator Directorate General of Civil Aviation.
"Air travel is picking up now we just need ATF (aviation turbine fuel) to stay stable," Mirpuri said. ATF, which makes up about 40 per cent of an airline's operating costs, has risen about 5 per cent since October. At 12:17 p.m., shares of Kingfisher were up 0.68 per cent at Rs 52.15 in a weak Mumbai market.
Source: Economic Times
"...Seabury has been hired to come in and assist us in sustaining long-term profitability by further strengthening the operational and financial performance of the company so that we are well poised to ride the upturn and capitalise on this opportunity ," the airline told Reuters in an e-mail.
Prakash Mirpuri, Vice President, Corporate Communications, told Retuers on Monday that fleet optimisation would be one of the areas the consultancy would advise Kingfisher on.
The airline has a fleet size of 66 aircraft. Mirpuri did not say how soon Seabury would come up with its recommendations. Seabury provides expertise to the aviation and aerospace industries in areas of strategy, business planning, network development and fleet optimisation.
The decision to rope in Seabury comes after Kingfisher reported a net loss of Rs 4.2 billion for the quarter ended December. Its listed peers Jet Airways and SpiceJet posted net profits for the same period, helped by an upturn in domestic air traffic.
"It is premature to say the mere appointment of a consultant is good news. Their topline is not much of a worry, what is of worry is the cost side that they have to start rationalising," an analyst from a local brokerage, who declined to be named, said. India's domestic air passenger demand went up 35 per cent while capacity increased 10 per cent in December, as per data from industry regulator Directorate General of Civil Aviation.
"Air travel is picking up now we just need ATF (aviation turbine fuel) to stay stable," Mirpuri said. ATF, which makes up about 40 per cent of an airline's operating costs, has risen about 5 per cent since October. At 12:17 p.m., shares of Kingfisher were up 0.68 per cent at Rs 52.15 in a weak Mumbai market.
Source: Economic Times
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