The Directorate General of Civil Aviation released figures for domestic air traffic in January that showed that Air India’s domestic wing, the former Indian Airlines, has slipped to fourth place. Jet Airways, when figures for its low-cost wing JetLite are included, Kingfisher and IndiGo flew more people than Air India — by a significant margin. Air India flew 7.8 lakh flyers; Jet flew 12.2 lakh, Kingfisher 9.6 lakh and IndiGo 9.5 lakh. As a marker of the continuing decline and increasing irrelevance of what is still referred to in wistful sarkari circles as India’s national carrier, it doesn’t get clearer than this. Air India simultaneously reported the lowest on-time figures: barely a third of their flights were on time, well below the competition; occupation rates were similarly low. Its market share is now around 17 per cent. Were it purely a market decision, it’s beyond any doubt what Air India’s fate would be.
Tragically, it is not the market’s decision to make. Civil Aviation Minister Vayalar Ravi had barely settled into his new office after the recent reshuffle when he made it clear that he would be requesting a significant infusion of cash into the troubled airline — merely, he claimed to tide over what he seemed to think was a temporary crisis. These thousands of crores of taxpayer money will be on top of the Rs 2,000 crore that has already been made available to Air India in two tranches recently. Ravi’s estimate is that the company will need at least Rs 10,000 crore more. This comes, of course, at a time when a cash-strapped UPA 2 is desperately trying to reassure voters and international investors that it knows how to control spending; fiscal restraint is expected to be a crucial component of the budget exercise.
We live in a very different world from the world in which “flag carriers” were a necessity. India is a self-confident nation now, and much of that self-confidence comes from pride and faith in the efficacy of its vibrant private sector. The emotional kick that a “national carrier” is supposed to provide is hardly needed or wanted now. Nor is it the case, as the DGCA’s numbers eloquently argue, that it fulfils any conceivable market-supporting role. Whatever decisions have to be taken about Air India in the short- and medium-term should reflect these two, essential, long-term perspectives. Otherwise, those decisions, like so many taken about Air India in the past, will be self-defeating and expensive in a way we cannot afford.
Source: Indian Express
Wednesday, February 23, 2011
Tuesday, February 15, 2011
AI Chief Training Officer's flying licence withheld
Adding to the woes of Air India concerning appointments, the Directorate General of Civil Aviation (DGCA) has withheld the Foreign Aircrew Temporary Authorisation (FATA) licence of Stephen Sukumar, asking for papers supporting his flying hours' claim.
Sukumar is the Chief Training Officer of the government carrier and his appointment is being reviewed by a two-member committee formed by the airline board. “The DGCA has withheld the FATA licence of Stephen Sukumar and asked for papers supporting his flying and training hour claims,” said a civil aviation ministry official seeking anonymity. The carrier, however, has termed all this unfortunate and hampering the turnaround plan of the carrier.
“Such unnecessary issues will only impact the turnaround plan of the airline. Instead of focusing on revamping the airline, the professional guys are made to run to various organisations and committees for one reason or the other,” said a top Air India executive.
He said that Sukumar had informed the DGCA that his papers were with his earlier organisation. “Sukumar is in the process of getting his papers from his former company and will submit it to the DGCA,” said the executive.
Taking forward its turnaround plan, Air India hired four key officials from outside — Chief Operating Officer Gustav Baldauf, Chief Training Officer Stephen Sukumar, Chief Information Officer Kanwaljeet Ratan and Chief Operating Officer for AI Express Pawan Arora.
Two out of the four new appointments ratified by the airline board have landed into trouble. The management has dismissed Arora and ordered a review of the appointment of Sukumar.
Having worked with the Indian Air Force, Arora had worked with various airlines in the country and was with IndiGo before joining AI. Sukumar joined the airline from Lufthansa where he was working as chief flight instructor. Examining his appointment is crucial for the airline before it joins the Star Alliance.
From next month, representatives from all member airlines of Star Alliance will audit various aspects like finance, operational processes and training of employees. Air India will have to clear these audits to become a part of the network.
Star Alliance has 26 carriers as members and the entry will provide AI part of a network that operates around 19,500 flights every day from as many as 1,071 airports in 171 countries.
Air India is running under losses of over Rs 15,000 crore and working capital debt of over Rs 21,000 crore carries an interest burden of 12 per cent. The carrier’s annual interest payment is Rs 1,800 crore on a debt of over Rs 40,000 crore (Rs 21,000 crore is the working capital debt and the rest low-cost debt taken primarily to buy aircraft).
In an attempt to bail out the airline, the government recently injected two tranches of Rs 1,200 crore and Rs 800 crore in 2009-10, raising the equity base to Rs 2,145 crore. Air India has asked for another shot of Rs 2,000 crore to improve its financial condition and debt-equity ratio.
Source: Business Standard
Sukumar is the Chief Training Officer of the government carrier and his appointment is being reviewed by a two-member committee formed by the airline board. “The DGCA has withheld the FATA licence of Stephen Sukumar and asked for papers supporting his flying and training hour claims,” said a civil aviation ministry official seeking anonymity. The carrier, however, has termed all this unfortunate and hampering the turnaround plan of the carrier.
“Such unnecessary issues will only impact the turnaround plan of the airline. Instead of focusing on revamping the airline, the professional guys are made to run to various organisations and committees for one reason or the other,” said a top Air India executive.
He said that Sukumar had informed the DGCA that his papers were with his earlier organisation. “Sukumar is in the process of getting his papers from his former company and will submit it to the DGCA,” said the executive.
Taking forward its turnaround plan, Air India hired four key officials from outside — Chief Operating Officer Gustav Baldauf, Chief Training Officer Stephen Sukumar, Chief Information Officer Kanwaljeet Ratan and Chief Operating Officer for AI Express Pawan Arora.
Two out of the four new appointments ratified by the airline board have landed into trouble. The management has dismissed Arora and ordered a review of the appointment of Sukumar.
Having worked with the Indian Air Force, Arora had worked with various airlines in the country and was with IndiGo before joining AI. Sukumar joined the airline from Lufthansa where he was working as chief flight instructor. Examining his appointment is crucial for the airline before it joins the Star Alliance.
From next month, representatives from all member airlines of Star Alliance will audit various aspects like finance, operational processes and training of employees. Air India will have to clear these audits to become a part of the network.
Star Alliance has 26 carriers as members and the entry will provide AI part of a network that operates around 19,500 flights every day from as many as 1,071 airports in 171 countries.
Air India is running under losses of over Rs 15,000 crore and working capital debt of over Rs 21,000 crore carries an interest burden of 12 per cent. The carrier’s annual interest payment is Rs 1,800 crore on a debt of over Rs 40,000 crore (Rs 21,000 crore is the working capital debt and the rest low-cost debt taken primarily to buy aircraft).
In an attempt to bail out the airline, the government recently injected two tranches of Rs 1,200 crore and Rs 800 crore in 2009-10, raising the equity base to Rs 2,145 crore. Air India has asked for another shot of Rs 2,000 crore to improve its financial condition and debt-equity ratio.
Source: Business Standard
Monday, February 7, 2011
Lufthansa new online application lets travellers rate destinations
Thanks to the new online City Ratings application, Lufthansa customers can now rate the airline’s worldwide destinations, share their personal recommendations with other passengers or find inspiration for their next holiday based on other people’s experiences, ideas and travel tips.
They can find answers to questions like: Which city offers a fascinating range of cultural events and activities? Which sights and tourist attractions make the hearts of young and old alike beat faster? Which major city has the most tempting array of shopping options? And where can the best culinary highlights be enjoyed?
The new application, which can be accessed via www.lufthansa.com, will enable users to share their first-hand experiences and impressions – a valuable source of information for travellers before they embark on their journey.
In order to use this function and give Lufthansa destinations worldwide a star rating, all you have to do is log on to www.lufthansa.com and submit a brief personal profile.
One can then be awarded up to five stars in each of the 10 categories listed, which include Sightseeing, Family, Eating & Drinking and Nightlife. Users are free to decide whether they wish to award a star rating for just one category or for all ten.
The ratings are added together and then automatically averaged out to produce the city rankings, which provide further orientation for anyone planning a trip. Moreover, if passengers have special tips or personal recommendations for other travelers, they can also submit a text that can be easily passed on to other users.
Source: Times of Malta
They can find answers to questions like: Which city offers a fascinating range of cultural events and activities? Which sights and tourist attractions make the hearts of young and old alike beat faster? Which major city has the most tempting array of shopping options? And where can the best culinary highlights be enjoyed?
The new application, which can be accessed via www.lufthansa.com, will enable users to share their first-hand experiences and impressions – a valuable source of information for travellers before they embark on their journey.
In order to use this function and give Lufthansa destinations worldwide a star rating, all you have to do is log on to www.lufthansa.com and submit a brief personal profile.
One can then be awarded up to five stars in each of the 10 categories listed, which include Sightseeing, Family, Eating & Drinking and Nightlife. Users are free to decide whether they wish to award a star rating for just one category or for all ten.
The ratings are added together and then automatically averaged out to produce the city rankings, which provide further orientation for anyone planning a trip. Moreover, if passengers have special tips or personal recommendations for other travelers, they can also submit a text that can be easily passed on to other users.
Source: Times of Malta
Subscribe to:
Posts (Atom)
