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
Thursday, February 25, 2010
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
Friday, February 5, 2010
CCTV footage helps city cops crack whodunit
The incident was almost like a scene from a Hollywood whodunit — a man boards a plane, but finds costly jewellery missing when it lands. Initially, it looked like a pretty tough case but the Chennai suburban police were able to crack it, thanks to some diligent investigative work and long hours of gazing at CCTV footage.
The crime took place on December 4, when T Nagar resident WR Vasudevan (47) took the 9.30am Kingfisher Airlines flight to Mumbai. On reaching his destination, Vasudevan realized that the diamond jewellery, worth Rs 14 lakh, which he had kept in his hand baggage, was missing.
Vasudevan was confused as to whether he had forgotten the jewellery in the autorickshaw, which he took from his house to the airport. But after checking with his family, he was convinced that he had been robbed at the airport. He tried to lodge a complaint with the Mumbai airport police, who directed him to register the complaint at Chennai since the flight originated from the city.
V Varadharaju, deputy commissioner of police (St Thomas Mount), said a police team monitored video footage recorded by CCTV cameras at Chennai airport on December 4 between 5am and 10am. The CCTV footage showed that a three-member gang had targeted Vasudevan while he was waiting at the Kingfisher Airlines counter to collect his boarding pass around 8am.
After watching the video footage for over 10 hours, the police identified the accused. The trio had entered the airport at 5am and had randomly targeted Vasudevan, who was carrying jewellery his sister had ordered from a shop in Parrys. While two persons covered the hand baggage of the passenger, the third removed a bag containing the jewellery. The gang also wanted to catch the 9.30am flight to Mumbai but as no tickets were available, they took the Jet Airways flight at 10am.
Suburban police commissioner SR Jangid said that a team, headed by Central Crime Branch assistant commissioner S Jayakumar and inspector Pradeep, spent a week in Mumbai following up clues.
“The names on the boarding cards were fake and the cellphone numbers either did not belong to the trio or were not in use,” said an official.
Thanks to help from Mumbai police, the team narrowed in on the accused at Andheri in Mumbai, from where Ushakanth Janardhan and Dwarakesh Gowda were arrested on Wednesday.
They were brought to the city on Thursday, and remanded in police custody till February 8. A search is on for the third gang member, Joginder Singh.
Source: Times of India
The crime took place on December 4, when T Nagar resident WR Vasudevan (47) took the 9.30am Kingfisher Airlines flight to Mumbai. On reaching his destination, Vasudevan realized that the diamond jewellery, worth Rs 14 lakh, which he had kept in his hand baggage, was missing.
Vasudevan was confused as to whether he had forgotten the jewellery in the autorickshaw, which he took from his house to the airport. But after checking with his family, he was convinced that he had been robbed at the airport. He tried to lodge a complaint with the Mumbai airport police, who directed him to register the complaint at Chennai since the flight originated from the city.
V Varadharaju, deputy commissioner of police (St Thomas Mount), said a police team monitored video footage recorded by CCTV cameras at Chennai airport on December 4 between 5am and 10am. The CCTV footage showed that a three-member gang had targeted Vasudevan while he was waiting at the Kingfisher Airlines counter to collect his boarding pass around 8am.
After watching the video footage for over 10 hours, the police identified the accused. The trio had entered the airport at 5am and had randomly targeted Vasudevan, who was carrying jewellery his sister had ordered from a shop in Parrys. While two persons covered the hand baggage of the passenger, the third removed a bag containing the jewellery. The gang also wanted to catch the 9.30am flight to Mumbai but as no tickets were available, they took the Jet Airways flight at 10am.
Suburban police commissioner SR Jangid said that a team, headed by Central Crime Branch assistant commissioner S Jayakumar and inspector Pradeep, spent a week in Mumbai following up clues.
“The names on the boarding cards were fake and the cellphone numbers either did not belong to the trio or were not in use,” said an official.
Thanks to help from Mumbai police, the team narrowed in on the accused at Andheri in Mumbai, from where Ushakanth Janardhan and Dwarakesh Gowda were arrested on Wednesday.
They were brought to the city on Thursday, and remanded in police custody till February 8. A search is on for the third gang member, Joginder Singh.
Source: Times of India
Thursday, February 4, 2010
SpiceJet sees aviation capacity shortfall by end-2010
India's aviation industry will run out of capacity in the second half of the next fiscal, pushing up yields, if demand improves at the current pace, the chief executive of low-cost carrier Spicejet said on Wednesday.
"We (industry) will run out of capacity by July. But if we are less optimistic (about demand growth), then also we will run out of capacity by the end of this calendar," Sanjay Aggarwal told Reuters in an interview.
India's domestic air passenger demand went up 35% but capacity increased only 10% in December, as per data from industry regulator Directorate General of Civil Aviation.
Aggarwal says continued improvement in demand will boost yields, or average fare per customer, to "mid Rs 3,000" level from the current "low Rs 3,000" level for low-cost carriers in second half of next fiscal.
SpiceJet reported a profit of Rs 108 crore in Oct-Dec against a loss a year ago. Strong demand, capacity reduction, lower fuel cost and cost rationalisation helped Jet Airways also to post a profit of Rs 105 crore but rival Kingfisher Airlines posted a loss of Rs 419 crore on exceptional items and expenses incurred on grounded aircraft.
A tight demand-supply situation though will not encourage airlines to order new planes, Aggarwal said. "All the lessors out there are bearish when it comes to increasing exposure to India."
Airlines usually buy and sell new planes to aircraft lessors to lease it back for operations.
"If capacity addition doesn't go beyond 10% and Air India slashes capacity by the planned 30%, there will be a capacity crunch in the third quarter of next fiscal," Kapil Kaul, chief executive, Indian subcontinent and Middle East, Centre for Asia Pacific Aviation (CAPA), an aviation consulting firm, said.
CAPA forecasts a 15% passenger growth in Indian avaition and 5%-7% rise in yields for next fiscal.
SpiceJet saw passenger growth rise 55% in the December quarter. It also improved market share in the quarter to 12.5% from 10.5% a year ago.
For 2009, SpiceJet had a market share of 12.4% and Jet Airways 25.4% while Kingfisher Airlines' share was 23.9%.
"Market share improvement now will be marginal because we are already filling up our planes as much as we can," Aggarwal said.
SpiceJet plans to add 5 planes and hire 200 staff, including 50 pilots, in a year, to protect and boost market share.
Aggarwal said there was no fare war being fought at the moment, but some airlines' pricing action reflected that "they were either trying to shore up cash position or were chasing market share."
The company plans to build a war chest of USD 50-75 million next fiscal year to power its growth and meet any spike in operational cost. Aggarwal didn't specify the mode of fund raising.
The airline has been looking for inorganic growth and was speculated to be in talks with a domestic airline last year for a possible acquisition.
"I wouldn't say that if nothing happened in a downturn, nothing will happen now. Even in downturn, no one was desperate (to sell out)."
Source: Money Control
"We (industry) will run out of capacity by July. But if we are less optimistic (about demand growth), then also we will run out of capacity by the end of this calendar," Sanjay Aggarwal told Reuters in an interview.
India's domestic air passenger demand went up 35% but capacity increased only 10% in December, as per data from industry regulator Directorate General of Civil Aviation.
Aggarwal says continued improvement in demand will boost yields, or average fare per customer, to "mid Rs 3,000" level from the current "low Rs 3,000" level for low-cost carriers in second half of next fiscal.
SpiceJet reported a profit of Rs 108 crore in Oct-Dec against a loss a year ago. Strong demand, capacity reduction, lower fuel cost and cost rationalisation helped Jet Airways also to post a profit of Rs 105 crore but rival Kingfisher Airlines posted a loss of Rs 419 crore on exceptional items and expenses incurred on grounded aircraft.
A tight demand-supply situation though will not encourage airlines to order new planes, Aggarwal said. "All the lessors out there are bearish when it comes to increasing exposure to India."
Airlines usually buy and sell new planes to aircraft lessors to lease it back for operations.
"If capacity addition doesn't go beyond 10% and Air India slashes capacity by the planned 30%, there will be a capacity crunch in the third quarter of next fiscal," Kapil Kaul, chief executive, Indian subcontinent and Middle East, Centre for Asia Pacific Aviation (CAPA), an aviation consulting firm, said.
CAPA forecasts a 15% passenger growth in Indian avaition and 5%-7% rise in yields for next fiscal.
SpiceJet saw passenger growth rise 55% in the December quarter. It also improved market share in the quarter to 12.5% from 10.5% a year ago.
For 2009, SpiceJet had a market share of 12.4% and Jet Airways 25.4% while Kingfisher Airlines' share was 23.9%.
"Market share improvement now will be marginal because we are already filling up our planes as much as we can," Aggarwal said.
SpiceJet plans to add 5 planes and hire 200 staff, including 50 pilots, in a year, to protect and boost market share.
Aggarwal said there was no fare war being fought at the moment, but some airlines' pricing action reflected that "they were either trying to shore up cash position or were chasing market share."
The company plans to build a war chest of USD 50-75 million next fiscal year to power its growth and meet any spike in operational cost. Aggarwal didn't specify the mode of fund raising.
The airline has been looking for inorganic growth and was speculated to be in talks with a domestic airline last year for a possible acquisition.
"I wouldn't say that if nothing happened in a downturn, nothing will happen now. Even in downturn, no one was desperate (to sell out)."
Source: Money Control
Tuesday, February 2, 2010
It’s turnaround time for Airlines
Early last year, when the economy was still in a downturn, it appeared that airlines wouldn’t be out of the red in a hurry. But the Delhi-based low-cost carrier, SpiceJet, has managed a smart turnaround in the December 2009 quarter, posting a net profit of Rs 109 crore. That’s way better than the losses, in the September 2009 quarter, of Rs 101 crore.
It’s true that the improving economic environment has resulted in an upswing in passenger traffic-airlines in India collectively carried 445.13 lakh passengers in 2009 against 412.71 lakh passengers in 2008, up 8%. SpiceJet’s planes are now fuller than they were at this time last year-load factors in December 2009 were far higher at 88%, compared with loads of 70%in December 2008.
And it has managed to grow market share. From 7% at the end of March 2009, the carrier now commands a share just under 13%. It’s possible that some of the gain has come at the cost of GoAir whose share has dropped by 80 basis points to 4.5% from 5.3% in March last year.
What’s also helped is the better utilisation of its aircraft. SpiceJet has been able to increase the number of flights per day per aircraft from 5.3 last year to 6.4 in the first half of the current year. Says Sanjay Agarwal, CEO, Spicejet, “We have increased the number of flights daily from around 101 in 2008-09 to 122 currently by making better use of our existing fleet of 19 aircraft.” By using its assets better, the airline has managed to improve its financial performance.
Not surprisingly, SpiceJet’s revenues in the December quarter were up 36%, at Rs 642 crore. More important,, it has been helped by lower fuel costs, which were down 19%, at Rs 888 crore. This has helped the airline post a positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) margin of 31% in the December 2009 quarter.
The carrier hasn’t really played around with its route map and continues to operate daily flights on the metro routes of Mumbai-Delhi and Mumbai-Bangalore, which are the busiest in the country. Says Aggarwal, “We do not have any immediate plans to grow the network or curtail any routes and continue to operate to 18 destinations.”
Currently, the airline operates 125 flights daily and has logged an on-time performance of 75.5% during December 2009, compared with archrival Indigo’s performance of 73%.
Source: Financial Express
It’s true that the improving economic environment has resulted in an upswing in passenger traffic-airlines in India collectively carried 445.13 lakh passengers in 2009 against 412.71 lakh passengers in 2008, up 8%. SpiceJet’s planes are now fuller than they were at this time last year-load factors in December 2009 were far higher at 88%, compared with loads of 70%in December 2008.
And it has managed to grow market share. From 7% at the end of March 2009, the carrier now commands a share just under 13%. It’s possible that some of the gain has come at the cost of GoAir whose share has dropped by 80 basis points to 4.5% from 5.3% in March last year.
What’s also helped is the better utilisation of its aircraft. SpiceJet has been able to increase the number of flights per day per aircraft from 5.3 last year to 6.4 in the first half of the current year. Says Sanjay Agarwal, CEO, Spicejet, “We have increased the number of flights daily from around 101 in 2008-09 to 122 currently by making better use of our existing fleet of 19 aircraft.” By using its assets better, the airline has managed to improve its financial performance.
Not surprisingly, SpiceJet’s revenues in the December quarter were up 36%, at Rs 642 crore. More important,, it has been helped by lower fuel costs, which were down 19%, at Rs 888 crore. This has helped the airline post a positive EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) margin of 31% in the December 2009 quarter.
The carrier hasn’t really played around with its route map and continues to operate daily flights on the metro routes of Mumbai-Delhi and Mumbai-Bangalore, which are the busiest in the country. Says Aggarwal, “We do not have any immediate plans to grow the network or curtail any routes and continue to operate to 18 destinations.”
Currently, the airline operates 125 flights daily and has logged an on-time performance of 75.5% during December 2009, compared with archrival Indigo’s performance of 73%.
Source: Financial Express
Monday, February 1, 2010
More Indians are discovering India now
The discovery of India by its citizens seems to be gaining momentum. From Jammu and Kashmir to Assam and from Orissa to Karnataka, almost all States are reporting an increase in Indian tourist arrivals.
The increase in domestic tourist footfall comes even as foreign tourist arrivals during 2009 fell 3.3 per cent to 5.11 million.
If it was the early snowfall in October-November last year that helped J&K almost double its monthly domestic tourist arrivals to 59,000 in December, then Assam has much to thank the Centre for amending its rules and allowing leave travel concession to its employees that saw the State welcome tourists in large numbers from Himachal Pradesh, Delhi and Punjab last year
J&K is tying up with SpiceJet to offer discounted airfares to passengers who book their tickets to the State in advance. Going by domestic tourist trends, the State is hoping to have arrivals equal to if not more than the 1988 record of 800,000, said Mr Shamim Ahmed, J&K Tourism Development Corporation.
And more people are also trying to discover their own States. “Domestic tourists keep us going. We are also seeing an increasing trend of people from the State travelling within the State. Bangalore is a major hub for such people. Besides we also get tourists from Kerala and Tamil Nadu,” said Mr Vinay Luthra, Managing Director, Karnataka State Tourism Development Corporation.
The State recently started seasonal charter flights to Hubli from Bangalore, Hyderabad and Chennai for the Hampi festival. Orissa is now looking at Buddhist tourism in a big way to attract not only more domestic but also international tourists, said the Director-Tourism, Mr T. Ao.
In 2008, tourist visits was provisionally recorded at 565 million against 527 million in 2007.
For most States the focus is on targeting domestic tourists from Maharashtra and Gujarat apart from West Bengal.
There are several reasons for concentrating on domestic tourists. As the Minister for Tourism, Kumari Selja, pointed out late last year, the volume of domestic tourists is large.
Source: Business Standard
The increase in domestic tourist footfall comes even as foreign tourist arrivals during 2009 fell 3.3 per cent to 5.11 million.
If it was the early snowfall in October-November last year that helped J&K almost double its monthly domestic tourist arrivals to 59,000 in December, then Assam has much to thank the Centre for amending its rules and allowing leave travel concession to its employees that saw the State welcome tourists in large numbers from Himachal Pradesh, Delhi and Punjab last year
J&K is tying up with SpiceJet to offer discounted airfares to passengers who book their tickets to the State in advance. Going by domestic tourist trends, the State is hoping to have arrivals equal to if not more than the 1988 record of 800,000, said Mr Shamim Ahmed, J&K Tourism Development Corporation.
And more people are also trying to discover their own States. “Domestic tourists keep us going. We are also seeing an increasing trend of people from the State travelling within the State. Bangalore is a major hub for such people. Besides we also get tourists from Kerala and Tamil Nadu,” said Mr Vinay Luthra, Managing Director, Karnataka State Tourism Development Corporation.
The State recently started seasonal charter flights to Hubli from Bangalore, Hyderabad and Chennai for the Hampi festival. Orissa is now looking at Buddhist tourism in a big way to attract not only more domestic but also international tourists, said the Director-Tourism, Mr T. Ao.
In 2008, tourist visits was provisionally recorded at 565 million against 527 million in 2007.
For most States the focus is on targeting domestic tourists from Maharashtra and Gujarat apart from West Bengal.
There are several reasons for concentrating on domestic tourists. As the Minister for Tourism, Kumari Selja, pointed out late last year, the volume of domestic tourists is large.
Source: Business Standard
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