After being in trouble for more than a year and losing Rs 10,000 crore, the Indian aviation industry is looking up.
It should continue doing so if airlines refrain from adding ‘unnecessary’ capacity and getting into another fare war.
The losses of three listed airlines — Jet Airways, Kingfisher Airlines and SpiceJet — in the third quarter of this financial year fell by 37 per cent to Rs 205 crore from Rs 645 crore during the same period last year.
SpiceJet and Jet Airways improved their financials and incurred profit but Kingfisher increased its losses. SpiceJet had a loss of Rs 17.96 crore during the same period last year and Jet Airways then had a loss of Rs 214.18 crore.
Kingfisher increased its losses to Rs 420 crore from Rs 413 crore during the same period last year.
The airlines that managed a profit did so because of constant effort to cut flab. “The airlines have been cutting flab for around a year and it has paid. Kingfisher has made operational profit and losses might have come from international operations, which they started recently,” said Kapil Kaul, India head of the Cen-tre for Asia Pacific Aviat-ion.
“Jet and Kingfisher need to service the huge debt they have or that will create a huge problem in their revival,” he added.
It is also felt that ‘cutting flab’ has its limitations and the airlines should now concentrate on increasing the yields.
“Increasing their yields will be the key to growth,” said Rajeev Batra, executive director, KPMG, the financial and business advisory agency.
“This is the best time that Indian aviation is seeing and the next six months will be critical. The airlines should monetise this growth without getting into unnecessary capacity addition,” said Nikhil Vora, managing director, IDFC-SSKI, a financial services group.
“If the airlines keep some restraint and jet fuel prices are under control, the industry will recover in the next financial year. And, the airlines would see expansion in the 2010-12 financial year,” said Kaul.
Source: Business Standard
Wednesday, January 27, 2010
Monday, January 25, 2010
Uncertainty prevails over recovery by domestic carriers
Despite expectations of financial improvements for some domestic carriers in the three months ended December, civil aviation executives and experts are wondering if the industry has flown past cloudy weather.
With all its festivals and holidays, the December quarter forms the peak travelling season—and that is expected to reflect in the account books of a number of airlines affected by the aviation downturn of the past year and a half. But worries over volatile jet fuel costs and price competition have dampened some of the exuberance.
On Thursday, Kingfisher Airlines Ltd kicked off the earnings season with an operating profit of Rs11 crore for its domestic operations, although it posted a net loss of Rs419.96 crore.
SpiceJet Ltd posted a record profit of Rs108.9 crore for the same quarter. Jet Airways (India) Ltd, which will announce its results on Monday, is expected to post a profit of around Rs10 crore.
While analysts who track the industry are upbeat, airline executives remain cautiously optimistic. Some are downright sceptical about whether the numbers are an indication of better times to come. They warn that even minor changes in the business environment could scuttle any hopes of recovery.
“The airline sector is exhibiting strong recovery, with an increase in passenger traffic and bottoming of yields. This, along with stable oil prices, is expected to lead to (the) sector turning profitable by next year,” wrote S. Arun, senior director at global brokerage DSP Merril Lynch, in a report on 5 October. This was a turnaround from his earlier position.
A December report from Nikhil Vora and Shweta Dewan, senior analysts at domestic brokerage IDFC-SSKI Securities Ltd, said that “the worst for aviation is clearly over”.
On 18 January, they wrote, “Indian aviation, too, is set to take off with domestic segment reporting peak passenger traffic.”
India is the ninth largest aviation market in the world, and fourth in terms of domestic passengers volume. The Directorate General of Civil Aviation (DGCA), India’s airline regulator, said on 13 January the domestic market expanded 7.5% in 2009 from 2008.
Nearly 3.07 million additional passengers took to the skies in 2009, taking the total number of fliers to 43.84 million, up from 40.77 million in 2008 and 42.85 million in 2007. December 2009 alone recorded 4.48 million fliers, a 35.02% increase over the 3.32 million in December 2008.
But doubters remain.
It is not real growth, said Charles Dhanaraj, associate professor of management at the Kelley School of Business at Indiana University, Indianapolis, an expert on the Indian aviation industry.
Source: Mint
With all its festivals and holidays, the December quarter forms the peak travelling season—and that is expected to reflect in the account books of a number of airlines affected by the aviation downturn of the past year and a half. But worries over volatile jet fuel costs and price competition have dampened some of the exuberance.
On Thursday, Kingfisher Airlines Ltd kicked off the earnings season with an operating profit of Rs11 crore for its domestic operations, although it posted a net loss of Rs419.96 crore.
SpiceJet Ltd posted a record profit of Rs108.9 crore for the same quarter. Jet Airways (India) Ltd, which will announce its results on Monday, is expected to post a profit of around Rs10 crore.
While analysts who track the industry are upbeat, airline executives remain cautiously optimistic. Some are downright sceptical about whether the numbers are an indication of better times to come. They warn that even minor changes in the business environment could scuttle any hopes of recovery.
“The airline sector is exhibiting strong recovery, with an increase in passenger traffic and bottoming of yields. This, along with stable oil prices, is expected to lead to (the) sector turning profitable by next year,” wrote S. Arun, senior director at global brokerage DSP Merril Lynch, in a report on 5 October. This was a turnaround from his earlier position.
A December report from Nikhil Vora and Shweta Dewan, senior analysts at domestic brokerage IDFC-SSKI Securities Ltd, said that “the worst for aviation is clearly over”.
On 18 January, they wrote, “Indian aviation, too, is set to take off with domestic segment reporting peak passenger traffic.”
India is the ninth largest aviation market in the world, and fourth in terms of domestic passengers volume. The Directorate General of Civil Aviation (DGCA), India’s airline regulator, said on 13 January the domestic market expanded 7.5% in 2009 from 2008.
Nearly 3.07 million additional passengers took to the skies in 2009, taking the total number of fliers to 43.84 million, up from 40.77 million in 2008 and 42.85 million in 2007. December 2009 alone recorded 4.48 million fliers, a 35.02% increase over the 3.32 million in December 2008.
But doubters remain.
It is not real growth, said Charles Dhanaraj, associate professor of management at the Kelley School of Business at Indiana University, Indianapolis, an expert on the Indian aviation industry.
Source: Mint
Friday, January 22, 2010
SpiceJet posts record profit, Kingfisher Air ops in the black
India’s second largest low-fare carrier by market share SpiceJet Ltd on Thursday reported its biggest profit since inception.
The country’s second largest full-service airline Kingfisher Airlines Ltd also announced on Thursday that it had turned profitable at the operating level in the third quarter on higher passenger traffic and lower costs.
SpiceJet, which started operations in 2005, posted a profit of Rs108.9 crore in December quarter, compared with a loss of Rs17.9 crore a year earlier. Revenue from operations rose 37% and the number of passengers increased by more than half in the period, while the cost per available seat kilometre fell by 22%.
“The aviation industry has taken a turn for the better,” said chief executive officer Sanjay Aggarwal. “We are looking forward to a good quarter ahead.”
Kingfisher Airlines reported a wider net loss in the three months ended 31 December, but swung to an operating profit as it cut costs. Net loss rose to Rs419.96 crore from Rs413.39 crore a year ago. Revenue fell 6.58% to Rs1,352.45 crore.
At the operating level, the carrier reported a profit of Rs11 crore, compared with a Rs122 crore loss in the year-ago period.
Passenger traffic increased 30.5%.
The operating profit came largely on reductions of employee costs, aircraft lease rentals and aircraft fuel expenses.
In an investor presentation, the airlines said that excluding aircraft lease rentals operating profit would have been Rs185 crore.
Source: Mint
The country’s second largest full-service airline Kingfisher Airlines Ltd also announced on Thursday that it had turned profitable at the operating level in the third quarter on higher passenger traffic and lower costs.
SpiceJet, which started operations in 2005, posted a profit of Rs108.9 crore in December quarter, compared with a loss of Rs17.9 crore a year earlier. Revenue from operations rose 37% and the number of passengers increased by more than half in the period, while the cost per available seat kilometre fell by 22%.
“The aviation industry has taken a turn for the better,” said chief executive officer Sanjay Aggarwal. “We are looking forward to a good quarter ahead.”
Kingfisher Airlines reported a wider net loss in the three months ended 31 December, but swung to an operating profit as it cut costs. Net loss rose to Rs419.96 crore from Rs413.39 crore a year ago. Revenue fell 6.58% to Rs1,352.45 crore.
At the operating level, the carrier reported a profit of Rs11 crore, compared with a Rs122 crore loss in the year-ago period.
Passenger traffic increased 30.5%.
The operating profit came largely on reductions of employee costs, aircraft lease rentals and aircraft fuel expenses.
In an investor presentation, the airlines said that excluding aircraft lease rentals operating profit would have been Rs185 crore.
Source: Mint
Monday, January 18, 2010
SpiceJet shortlists four foreign destinations, to shift to GDS
India’s second largest low-cost carrier by passengers flown, SpiceJet Ltd, has applied for permission to fly abroad and hopes to land in one of four neighbouring nations it has shortlisted for expansion by July this year.
Analysts, however, say SpiceJet should focus on stabilizing its domestic operations before venturing into the highly competitive foreign market.
SpiceJet is already taking the first steps towards running international flights—including registering with a global distribution system of ticketing and seeking the membership of the International Air Transport Association (Iata), the global lobby for airlines.
“We will have 21 planes when we go international. We are looking at a June-July time frame,” said chief executive Sanjay Aggarwal.
Any carrier requires a fleet of at least 20 aircraft before it can be considered for an international licence. Aggarwal said SpiceJet would meet the requirement by March. “We are working with the (aviation) ministry and the DGCA (directorate general of civil aviation) to get everything going. That’s where we are until we get the approvals,” he added.
DGCA is checking SpiceJet’s international preparedness, including the capability and maintenance of its aircraft and the training levels of its pilots and engineers, an aviation ministry official said on condition of anonymity.
SpiceJet wants to fly to Sri Lanka, Bangladesh, Nepal and the Maldives in the first phase of its international operations. If approved, SpiceJet will become only the fourth Indian carrier to fly internationally—after National Aviation Co. of India Ltd-run Air India, Jet Airways (India) Ltd and Kingfisher Airlines Ltd.
It will also be the first domestic budget airline to do so, and will compete with regional giants such as Air Asia, Tiger Airways, Air Arabia, Jazeera Airways, and FlyDubai.
The Gurgaon-based airline, known as ModiLuft when it closed down in 1996, was relaunched in 2005. It currently has a 12.4% market share and a fleet of 19 Boeing 737 aircraft capable of flying to South-East Asia and West Asia.
Four new Boeing 737s will join its fleet starting March under an earlier order. Aggarwal said the carrier was not looking at placing a fresh order, but considering leasing new aircraft depending on how its market grew.
“Our initial interest has been in four countries. And then, we may choose to go to one or all four. We have not decided on the point from which cities in India we will connect them to,” said Aggarwal, who took over SpiceJet in 2008 after an equity infusion by US-based private equity investor Wilbur Ross.
Aggarwal said 98% of the carrier’s ticket sales came from India. Until late last year, the firm was in two minds about flying abroad. International operations take longer to break even, and SpiceJet seemed to be concentrating on becoming profitable domestically.
“The carrier has indicated plans to take up this opportunity (to fly abroad),” said consulting firm Centre for Asia Pacific Aviation (Capa) in a recent outlook report for 2010. “However, it may be better advised to concentrate on stabilizing its domestic operations first before embarking on international (routes), which can be extremely complex and place additional pressure on management.”
But SpiceJet has been moving determinedly towards becoming an international carrier. For instance, it has appointed general sales agents in regional countries, including Sri Lanka, to sell its tickets to locals. Aggarwal added: “We are now participating in the Sabre GDS (global distribution system of ticketing), but it is only for point of sale outside India. Our low-cost model sells in domestic market and you have to have a presence there. I think we will be pretty soon on Sabre now.”
Participating in the GDS makes international carriers more easily noticeable to foreign flyers. But it comes at a price. The head of a domestic travel portal, which sells SpiceJet tickets, said this meant “for agents outside the country, SpiceJet will be available just like Jet, Kingfisher, Air India”, but it will increase running costs for the carrier.
“The cost per ticket goes up and leads to more dependence on indirect versus direct sales thereafter,” said the portal head, who requested anonymity as he deals with the carrier. Most low-cost carriers, therefore, abstain from the GDS route. Another senior domestic airline official, who also asked not to be named, said ticket sales through the GDS will cost an additional $4 (around Rs182), even though the cost of joining a GDS was not steep.
Besides, SpiceJet will also undergo the Iata Operational Safety Audit (Iosa), which assesses the operational management and control systems of an airline and is considered to be a key requirement for entering code-sharing alliances with international carriers. The Iosa audit will also allow SpiceJet to become a member of Iata. “We are working on Iosa (audit) as it is a perquisite for Iata membership,” said Aggarwal. “We would like to be on it prior to that (going international).”
Source Mint
Analysts, however, say SpiceJet should focus on stabilizing its domestic operations before venturing into the highly competitive foreign market.
SpiceJet is already taking the first steps towards running international flights—including registering with a global distribution system of ticketing and seeking the membership of the International Air Transport Association (Iata), the global lobby for airlines.
“We will have 21 planes when we go international. We are looking at a June-July time frame,” said chief executive Sanjay Aggarwal.
Any carrier requires a fleet of at least 20 aircraft before it can be considered for an international licence. Aggarwal said SpiceJet would meet the requirement by March. “We are working with the (aviation) ministry and the DGCA (directorate general of civil aviation) to get everything going. That’s where we are until we get the approvals,” he added.
DGCA is checking SpiceJet’s international preparedness, including the capability and maintenance of its aircraft and the training levels of its pilots and engineers, an aviation ministry official said on condition of anonymity.
SpiceJet wants to fly to Sri Lanka, Bangladesh, Nepal and the Maldives in the first phase of its international operations. If approved, SpiceJet will become only the fourth Indian carrier to fly internationally—after National Aviation Co. of India Ltd-run Air India, Jet Airways (India) Ltd and Kingfisher Airlines Ltd.
It will also be the first domestic budget airline to do so, and will compete with regional giants such as Air Asia, Tiger Airways, Air Arabia, Jazeera Airways, and FlyDubai.
The Gurgaon-based airline, known as ModiLuft when it closed down in 1996, was relaunched in 2005. It currently has a 12.4% market share and a fleet of 19 Boeing 737 aircraft capable of flying to South-East Asia and West Asia.
Four new Boeing 737s will join its fleet starting March under an earlier order. Aggarwal said the carrier was not looking at placing a fresh order, but considering leasing new aircraft depending on how its market grew.
“Our initial interest has been in four countries. And then, we may choose to go to one or all four. We have not decided on the point from which cities in India we will connect them to,” said Aggarwal, who took over SpiceJet in 2008 after an equity infusion by US-based private equity investor Wilbur Ross.
Aggarwal said 98% of the carrier’s ticket sales came from India. Until late last year, the firm was in two minds about flying abroad. International operations take longer to break even, and SpiceJet seemed to be concentrating on becoming profitable domestically.
“The carrier has indicated plans to take up this opportunity (to fly abroad),” said consulting firm Centre for Asia Pacific Aviation (Capa) in a recent outlook report for 2010. “However, it may be better advised to concentrate on stabilizing its domestic operations first before embarking on international (routes), which can be extremely complex and place additional pressure on management.”
But SpiceJet has been moving determinedly towards becoming an international carrier. For instance, it has appointed general sales agents in regional countries, including Sri Lanka, to sell its tickets to locals. Aggarwal added: “We are now participating in the Sabre GDS (global distribution system of ticketing), but it is only for point of sale outside India. Our low-cost model sells in domestic market and you have to have a presence there. I think we will be pretty soon on Sabre now.”
Participating in the GDS makes international carriers more easily noticeable to foreign flyers. But it comes at a price. The head of a domestic travel portal, which sells SpiceJet tickets, said this meant “for agents outside the country, SpiceJet will be available just like Jet, Kingfisher, Air India”, but it will increase running costs for the carrier.
“The cost per ticket goes up and leads to more dependence on indirect versus direct sales thereafter,” said the portal head, who requested anonymity as he deals with the carrier. Most low-cost carriers, therefore, abstain from the GDS route. Another senior domestic airline official, who also asked not to be named, said ticket sales through the GDS will cost an additional $4 (around Rs182), even though the cost of joining a GDS was not steep.
Besides, SpiceJet will also undergo the Iata Operational Safety Audit (Iosa), which assesses the operational management and control systems of an airline and is considered to be a key requirement for entering code-sharing alliances with international carriers. The Iosa audit will also allow SpiceJet to become a member of Iata. “We are working on Iosa (audit) as it is a perquisite for Iata membership,” said Aggarwal. “We would like to be on it prior to that (going international).”
Source Mint
Thursday, January 14, 2010
Kingfisher Airlines Revamps King Club
Kingfisher Airlines, India's most preferred Airline, today revamped King Club, the frequent flyer programme of Kingfisher Airlines and unveiled yet another innovation with the launch of King Platinum, a brand new and exclusive tier of membership for King Club.
Commenting on this unique initiative Ms. Anshu Sarin, General Manager, King Club said, "King Club is India's most rewarding frequent flyer programme and we wanted to take this experience to the next level by upgrading the features and introducing King Platinum, the pinnacle of King Club. With this new addition to the King Club program, Platinum members can now avail many first-of-their-kind benefits. The card is designed to compliment discerning lifestyle and needs of highly successful individuals who will settle for nothing but the best in every sphere of their lives. The King Platinum card provides members with personalized recognition and privileges befitting their exclusive status."
The new King Club has exclusive features like the innovative Daily Status Review system which ensures that one enjoys quick and flexible tier upgrades, Fast Track Earning, Family Club, Air Boutique ONLINE the premium online reward shop that allows the member to redeem their King Miles for attractive rewards.
The new King Platinum tier has been loaded with exclusive features like:
* 5 upgrade vouchers
* 35% tier bonus miles,
* Unlimited lounge access for member and two additional lounge vouchers for their companions,
* Lounge vouchers which can be used by family members
* A complimentary King Gold card for their companion,
* Waivers on select administrative charges
* Exclusive Lifestyle privileges
* A dedicated Concierge desk for member assistance and more.
Kingfisher Airlines has introduced a range of market-firsts that have completely redefined the whole experience of flying. By elevating its customers to a level of being 'guests' and not just passengers, Kingfisher Airlines has endeared itself to consumers. Today it has again initiated another milestone by revamping King Club and introducing the Platinum membership - King Platinum
Source: India PRWire
Commenting on this unique initiative Ms. Anshu Sarin, General Manager, King Club said, "King Club is India's most rewarding frequent flyer programme and we wanted to take this experience to the next level by upgrading the features and introducing King Platinum, the pinnacle of King Club. With this new addition to the King Club program, Platinum members can now avail many first-of-their-kind benefits. The card is designed to compliment discerning lifestyle and needs of highly successful individuals who will settle for nothing but the best in every sphere of their lives. The King Platinum card provides members with personalized recognition and privileges befitting their exclusive status."
The new King Club has exclusive features like the innovative Daily Status Review system which ensures that one enjoys quick and flexible tier upgrades, Fast Track Earning, Family Club, Air Boutique ONLINE the premium online reward shop that allows the member to redeem their King Miles for attractive rewards.
The new King Platinum tier has been loaded with exclusive features like:
* 5 upgrade vouchers
* 35% tier bonus miles,
* Unlimited lounge access for member and two additional lounge vouchers for their companions,
* Lounge vouchers which can be used by family members
* A complimentary King Gold card for their companion,
* Waivers on select administrative charges
* Exclusive Lifestyle privileges
* A dedicated Concierge desk for member assistance and more.
Kingfisher Airlines has introduced a range of market-firsts that have completely redefined the whole experience of flying. By elevating its customers to a level of being 'guests' and not just passengers, Kingfisher Airlines has endeared itself to consumers. Today it has again initiated another milestone by revamping King Club and introducing the Platinum membership - King Platinum
Source: India PRWire
Tuesday, January 12, 2010
Airlines fly to smaller cities for growth in passenger traffic
India’s airlines are charting new routes to connect neglected, smaller cities that have some tourist or business potential, as the economy brightens and passenger numbers rise. Airlines saw a spurt in passenger traffic, growing by 5.45% to 39.96 million between January and November, according to the regulator Directorate General of Civil Aviation (DGCA). The figure for December is not yet available. The number had contracted as much as 4.84% to 42.85 million in 2008. Kingfisher Airlines Ltd and regional airline Jagson Airlines Ltd are among those planning to harness the potential of smaller airports.“The bigger airlines have a focus on category I (metro) routes by default, but category II routes like smaller capital cities make a lot of sense,” said Jagson CEO Koustav M. Dhar.
Jagson plans to take to the skies from February with a 88-seater aircraft and subsequently increase its fleet to four by the end of the year. It will connect Srinagar to Leh with a daily flight starting April. So far, only Air India has a weekly flight between the two cities, an Airports Authority of India (AAI) official at Leh airport said over the phone.“Those (connecting state capitals and smaller cities) are the sectors to be in and they are consistent all year around at Rs4,000-4,500 (average fare),” said Dhar, comparing the average fare on the Delhi-Mumbai route, which can drop below Rs3,000 due to competition. “(However), if you put 180 seats on category II, they are not viable.” The AAI official said additional flights will help, but there was a limited potential. “Maximum tourists come from Delhi. Those who are coming from Srinagar are coming by road. The acclimatization is much better, being at a higher altitude, the body gets accustomed to it (by road),” he said on condition of anonymity. “But in the tourist season, it’s (plane seats) all full.”
Jagson will also connect New Delhi to Shimla and Dharamshala, and operate flights to Ranchi and Patna in summer on alternate days. Kingfisher Airlines, India’s second largest carrier by market share, has started flights between Chennai and the industrial town of Salem in Tamil Nadu, and Jharkhand’s capital Ranchi and Chhattisgarh’s capital Raipur recently.
It has also received permission to start services to Uttarakhand’s Pantnagar from New Delhi. Pantnagar, besides being close to several tourist destinations, is also a hub for many factories, including that of auto manufacturer Tata Motors Ltd. Also on the cards are flights to the hosiery and garments hub of Ludhiana in Punjab from New Delhi. A Kingfisher official said the airline is waiting for regulatory clearances before it can take off to Pantnagar and Ludhiana. “Since these are new airfields, DGCA is still to clear them,” he said. He declined to be named. National carrier Air India already flies between several small towns in the country.
Source: Mint
Jagson plans to take to the skies from February with a 88-seater aircraft and subsequently increase its fleet to four by the end of the year. It will connect Srinagar to Leh with a daily flight starting April. So far, only Air India has a weekly flight between the two cities, an Airports Authority of India (AAI) official at Leh airport said over the phone.“Those (connecting state capitals and smaller cities) are the sectors to be in and they are consistent all year around at Rs4,000-4,500 (average fare),” said Dhar, comparing the average fare on the Delhi-Mumbai route, which can drop below Rs3,000 due to competition. “(However), if you put 180 seats on category II, they are not viable.” The AAI official said additional flights will help, but there was a limited potential. “Maximum tourists come from Delhi. Those who are coming from Srinagar are coming by road. The acclimatization is much better, being at a higher altitude, the body gets accustomed to it (by road),” he said on condition of anonymity. “But in the tourist season, it’s (plane seats) all full.”
Jagson will also connect New Delhi to Shimla and Dharamshala, and operate flights to Ranchi and Patna in summer on alternate days. Kingfisher Airlines, India’s second largest carrier by market share, has started flights between Chennai and the industrial town of Salem in Tamil Nadu, and Jharkhand’s capital Ranchi and Chhattisgarh’s capital Raipur recently.
It has also received permission to start services to Uttarakhand’s Pantnagar from New Delhi. Pantnagar, besides being close to several tourist destinations, is also a hub for many factories, including that of auto manufacturer Tata Motors Ltd. Also on the cards are flights to the hosiery and garments hub of Ludhiana in Punjab from New Delhi. A Kingfisher official said the airline is waiting for regulatory clearances before it can take off to Pantnagar and Ludhiana. “Since these are new airfields, DGCA is still to clear them,” he said. He declined to be named. National carrier Air India already flies between several small towns in the country.
Source: Mint
Wednesday, January 6, 2010
Air India to make Delhi new network hub
Loss-laden Air India plans to develop Delhi as an additional network hub as its main centre of operation Mumbai has become too congested. The move will help the carrier provide direct connectivity to international customers on its domestic network. The airline operates international flights to London, Frankfurt, New York, Tokyo and Singapore among others.
In a major operational overhaul, the carrier has decided to take a re-look at its international hub in Frankfurt, company CMD Arvind Jadhav is believed to have informed the civil aviation minister Praful Patel in a review meeting of airline in the capital on Tuesday.
The airline has said Frankfurt airport is very expensive and indicated that it would, for the time being, focus on point-to-point traffic. In a presentation to the Union minister Mr Jadhav said that the airline has achieved a higher load factor in the past few months. Air India also said that it will defer the delivery of three B777-300 ER (extended range) as part of fleet rationalisation plan. While the airline chief talked about cost cutting and revenue enhancement measures, the minister asked the company to improve its fleet utilisation.
“The minister has asked for a detailed report in the next 10 days on how it plans to improve capacity utilisation,” a person familiar with the development said. Mr Patel wanted to know as to why the airline’s average fleet utilisation was 8.5 hours while the private carriers managed to fly their aircraft for 12 hours a day. The aviation minister also sought to know the airline’s plan to clear off dues. The Air India top boss said it owed Rs 2,636 crore to oil companies, and its vendors among others. He, however, added that the company would clear the dues shortly. The government recently cleared a proposal to give Rs 800 crore as financial help to the national carrier.
Mr Jadhav said that the airline’s load factor had recently gone up and revenue improved.
“Passenger numbers went up because airline sold tickets at very low rate. The company sold 70% tickets at lower rate,” an airline official said on condition of anonymity. The airline is expected to lose nearly Rs 5,000 crore in the current financial year. It lost a similar amount in 2008-09.
Meanwhile, the Air India board is expected to meet in the next week to consider extension to its consultant Accenture.
Source: Economic Times
In a major operational overhaul, the carrier has decided to take a re-look at its international hub in Frankfurt, company CMD Arvind Jadhav is believed to have informed the civil aviation minister Praful Patel in a review meeting of airline in the capital on Tuesday.
The airline has said Frankfurt airport is very expensive and indicated that it would, for the time being, focus on point-to-point traffic. In a presentation to the Union minister Mr Jadhav said that the airline has achieved a higher load factor in the past few months. Air India also said that it will defer the delivery of three B777-300 ER (extended range) as part of fleet rationalisation plan. While the airline chief talked about cost cutting and revenue enhancement measures, the minister asked the company to improve its fleet utilisation.
“The minister has asked for a detailed report in the next 10 days on how it plans to improve capacity utilisation,” a person familiar with the development said. Mr Patel wanted to know as to why the airline’s average fleet utilisation was 8.5 hours while the private carriers managed to fly their aircraft for 12 hours a day. The aviation minister also sought to know the airline’s plan to clear off dues. The Air India top boss said it owed Rs 2,636 crore to oil companies, and its vendors among others. He, however, added that the company would clear the dues shortly. The government recently cleared a proposal to give Rs 800 crore as financial help to the national carrier.
Mr Jadhav said that the airline’s load factor had recently gone up and revenue improved.
“Passenger numbers went up because airline sold tickets at very low rate. The company sold 70% tickets at lower rate,” an airline official said on condition of anonymity. The airline is expected to lose nearly Rs 5,000 crore in the current financial year. It lost a similar amount in 2008-09.
Meanwhile, the Air India board is expected to meet in the next week to consider extension to its consultant Accenture.
Source: Economic Times
Tuesday, January 5, 2010
Flights, trains in disarray, cold continues to bite
Chandigarh Dense fog continued to disrupt air and rail traffic on Monday. For the fifth consecutive day, all flight to and from the city were cancelled.
Spokesperson of a private airlines said dense fog made it impossible for flights to take off and they were waiting for the sky to clear up.
None of the scheduled flights of Air India, Kingfisher, GO Air and Jet Airways took off or landed in the city on Monday.
Kingfisher has announced cancellation of their Tuesday flights as well. Air India officials said they would take a decision on Tuesday itself.
Schedule of trains was also in disarray, with almost all trains running behind schedule.
Long distance trains were the worst affected — the Uchahar Express, scheduled to arrive at 9.55 am, reached 14 hours late around midnight. The same train departed the city one-and-a-half hour after its scheduled time of 4.25 pm.
The Howrah-Kalka Mail arrived three hours late at 6.15 am. The Sadbhawna Express (Chandigarh-Lucknow), scheduled to arrive at 10.15 am, reached 6 hours late. The train departed from Chandigarh at 1.45 am, against its scheduled time of 8.50 pm.
Though, the Chandigarh-Delhi Shatabdi and Jan Shatabdi Express left at their scheduled time, they continued to arrive late.
Delhi bound passengers, meanwhile, prefer Volvo buses over the popular Shatabdi Express. “The trains are running one to two hours late, which actually neutralises the advantage of Shatabdi. These days, it’s better to catch the bus,” Ramandeep Singh, a regular traveller, said.
Source: Express India
Spokesperson of a private airlines said dense fog made it impossible for flights to take off and they were waiting for the sky to clear up.
None of the scheduled flights of Air India, Kingfisher, GO Air and Jet Airways took off or landed in the city on Monday.
Kingfisher has announced cancellation of their Tuesday flights as well. Air India officials said they would take a decision on Tuesday itself.
Schedule of trains was also in disarray, with almost all trains running behind schedule.
Long distance trains were the worst affected — the Uchahar Express, scheduled to arrive at 9.55 am, reached 14 hours late around midnight. The same train departed the city one-and-a-half hour after its scheduled time of 4.25 pm.
The Howrah-Kalka Mail arrived three hours late at 6.15 am. The Sadbhawna Express (Chandigarh-Lucknow), scheduled to arrive at 10.15 am, reached 6 hours late. The train departed from Chandigarh at 1.45 am, against its scheduled time of 8.50 pm.
Though, the Chandigarh-Delhi Shatabdi and Jan Shatabdi Express left at their scheduled time, they continued to arrive late.
Delhi bound passengers, meanwhile, prefer Volvo buses over the popular Shatabdi Express. “The trains are running one to two hours late, which actually neutralises the advantage of Shatabdi. These days, it’s better to catch the bus,” Ramandeep Singh, a regular traveller, said.
Source: Express India
Subscribe to:
Posts (Atom)
