After stopping operations earlier this month, Jet Airways technically isn’t gone forever. There are still some who want to see the airline gain additional financing in order to resume operations.
While there are some indicators Jet Airways could fly again, it seems unlikely given the current situation.
Jet Airways had a lot of debt and very little cash. India’s all out price war, with fares as low as a few cents, meant that there was an incredibly slim margin for profit.
Unfortunately, the market just didn’t work for Jet Airways. They invested in new aircraft, including the 737 MAX, and broadened their international partnerships. With a robust route network, Jet Airways thought they could be India’s top carrier.
Also burdening Jet Airways were high fuel costs and high taxes. Jet Airways simply could not make a profit. They teetered and tottered for months before finally seeing their fleet depleted.
In the days prior to their official suspension, only a handful of aircraft were operating and zero international routes were scheduled.
There has been a movement to resurrect Jet Airways. Former Jet Airways staff engaged in protests to get the airline up and running again. Jet Airways had a sizeable staff who are now faced with major uncertainty.
While some crew members went off to rival carriers, like SpiceJet, others are still looking for opportunities.
Jet Airways relied heavily on Etihad Airways for investment. Etihad itself faces significant financial concerns, yet somehow found Jet Airways worth sustaining. Over the years, they have put millions of dollars into the airline.
However, after the collapse of the airline and Etihad’s ongoing losses, it doesn’t seem like Etihad would want to resurrect the carrier before they get on solid financial footing themselves.
Etihad could always partner with an Indian conglomerate as Singapore Airlines did with their investment in Vistara. This could give Etihad some additional security since they wouldn’t necessarily be the ones pumping in funding for Jet Airways.
Jet Airways seems to be running out of luck and time for a new investor. With rival carriers descending on Jet’s valuable assets such as planes and the valuable slots at crowded airports, Jet Airways would face significant headwinds if they restarted operations.
This would definitely worry investors, especially as Indian airlines continue to miss out on record profits that other carriers see.
This is the question that aviation analysts and investors are grappling with. Jet Airways has a lost a lot in terms of positive name recognition, reputation, and key assets.
A new Jet Airways would have to reassure travelers that they can trust the carrier with their travel plans.
India’s aviation market is already quite crowded. State run Air India doesn’t seem to need to focus on turning a profit and low-cost carriers account for a significant market share.
As a result, it would be necessary for Jet Airways to define themselves as something different to what India already has. The problem is that Jet Airways doesn’t really have anything new and unique to offer travelers that current carriers cannot provide.
Delta Airlines recently announced a return to India. Though still vague on a few details, Delta plans to fly from New York to Mumbai. Mumbai was a major hub for Jet Airways. Thus, it made sense for Delta to connect the cities since there would be strong connecting opportunities.
Jet Airways has closely worked with Delta and KLM.
In the aftermath of Jet’s collapse, it seemed highly unlikely that Delta would return to Mumbai. Previously, it was reported that Delta may have some interest in Jet Airways and had a codesharing partnership with the carrier.
However, now that Delta is returning to Mumbai, it could be possible that they will have a role in resurrecting Jet Airways. Now, while there are no official reports or even rumors indicating Delta is seriously considering this.
While many would like to see Jet Airways resume operations, it seems highly unlikely, it may be the end of Jet Airways forever.
Tourism Observer
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Showing posts with label SpiceJet. Show all posts
Showing posts with label SpiceJet. Show all posts
Thursday, 2 May 2019
Tuesday, 30 April 2019
INDIA: SpiceJet Overshoots Runway At Shirdi Airport, Taking Two And A Half Hours To Rescue Passengers.
Budget airline SpiceJet operating on the Delhi-Shirdi route, overshot the runway while landing at the Shirdi airport on Monday on April 29.
According to the airline, no harm was caused to either the passengers or the crew.
On 29 April 2019, SpiceJet B737-800 aircraft operated SG 946 from Delhi to Shirdi. While landing at Shirdi, the aircraft overshot the runway. Passengers and crew are safe and are being deplaned normally, the airline said in a statement.
After a few Indian runway incidents late last year, yet another near miss has occurred. A SpiceJet Boeing 737-800 overran the runway while landing at Shirdi airport. The incident occurred earlier today as the flight was arriving from Delhi.
There have been several close calls involving Indian aircraft during takeoff and landing during the past year.
One of these saw an aircraft land on an unfinished runway, while another resulted in a wall being struck during takeoff. Thankfully, none of these incidents have had serious consequences
The incident involved a Boeing 737 registered to SpiceJet as VT-SGJ. The aircraft was originally delivered to Air Berlin in 2005. It spent eight months serving for Blue Air in 2010, before joining the SpiceJet fleet in December 2010. As such, the aircraft is 14 years old.
The aircraft was operating flight SG-946 from Delhi to Shirdi in the South of India. Initial reports suggest that 164 people were on board the aircraft at the time.
The pilots overran the 2,500m runway by around 100 feet, resting the aircraft on soft ground.
While there were no injuries reported, both pilots have been grounded as is customary in these circumstances.
While the incident took place at 1630 local time, the aircraft’s occupants weren’t rescued until two and a half hours later.
It reportedly took two and a half hours to rescue those onboard.
Dhiren Bhosale is the airport’s director said a SpiceJet aircraft shot off the runway by about 50 meters and skidded off. There is no injury to any passenger and the crew, though. Our first priority is to evacuate passengers without compromising their safety.
This single incident is a worrying part of a much bigger problem. SpiceJet is not the only Indian airline which has been affected by takeoff or landing troubles of late.
In September of 2018, an Indian Airlines Boeing 737 landed on an unfinished runway being built at Male in the Maldives. The aircraft got caught in plastic debris on the runway.
A month earlier in August, a Jet Airways Boeing 737 attempted to take off from a taxiway in Mumbai. The aircraft came off the taxiway and got stuck.
Another incident saw an Air India Boeing 737 strike a wall during takeoff.
Interestingly, the pilots didn’t realise the extensive damage until they were warned on the ground. Other incidents have also taken place.
Tourism Observer
According to the airline, no harm was caused to either the passengers or the crew.
On 29 April 2019, SpiceJet B737-800 aircraft operated SG 946 from Delhi to Shirdi. While landing at Shirdi, the aircraft overshot the runway. Passengers and crew are safe and are being deplaned normally, the airline said in a statement.
After a few Indian runway incidents late last year, yet another near miss has occurred. A SpiceJet Boeing 737-800 overran the runway while landing at Shirdi airport. The incident occurred earlier today as the flight was arriving from Delhi.
There have been several close calls involving Indian aircraft during takeoff and landing during the past year.
One of these saw an aircraft land on an unfinished runway, while another resulted in a wall being struck during takeoff. Thankfully, none of these incidents have had serious consequences
The incident involved a Boeing 737 registered to SpiceJet as VT-SGJ. The aircraft was originally delivered to Air Berlin in 2005. It spent eight months serving for Blue Air in 2010, before joining the SpiceJet fleet in December 2010. As such, the aircraft is 14 years old.
The aircraft was operating flight SG-946 from Delhi to Shirdi in the South of India. Initial reports suggest that 164 people were on board the aircraft at the time.
The pilots overran the 2,500m runway by around 100 feet, resting the aircraft on soft ground.
While there were no injuries reported, both pilots have been grounded as is customary in these circumstances.
While the incident took place at 1630 local time, the aircraft’s occupants weren’t rescued until two and a half hours later.
It reportedly took two and a half hours to rescue those onboard.
Dhiren Bhosale is the airport’s director said a SpiceJet aircraft shot off the runway by about 50 meters and skidded off. There is no injury to any passenger and the crew, though. Our first priority is to evacuate passengers without compromising their safety.
This single incident is a worrying part of a much bigger problem. SpiceJet is not the only Indian airline which has been affected by takeoff or landing troubles of late.
In September of 2018, an Indian Airlines Boeing 737 landed on an unfinished runway being built at Male in the Maldives. The aircraft got caught in plastic debris on the runway.
A month earlier in August, a Jet Airways Boeing 737 attempted to take off from a taxiway in Mumbai. The aircraft came off the taxiway and got stuck.
Another incident saw an Air India Boeing 737 strike a wall during takeoff.
Interestingly, the pilots didn’t realise the extensive damage until they were warned on the ground. Other incidents have also taken place.
Tourism Observer
Monday, 15 April 2019
INDIA: SpiceJet Luring Jet Airways Pilots And Engineers At Lower Pays
Spicejet is now hiring engineers and pilots at much lower pay than their current salaries at the financialy-troubled Jet.
Pilots from Jet Airways are being asked to take salary cuts of 25-30 per cent, while engineers have been advised to settle at 50 per cent of their current pay package.
Not long ago, many airlines including SpiceJet were luring the same pilots and engineers with joining bonuses and better perks.
The prospect of closure is certainly one of the reasons for professionals agreeing to take salary cuts. But average salaries at Jet Airways have also been higher than the industry level, a top aviation source said.
A senior aircraft maintenance engineer who has applied to SpiceJet and Air India Express for a job said that he has got an offer in the range of 150,000 to 200,000 a month while his current cost to company (CTC) at Jet Airways is nearly 400,000 a month.
The offer is much lower. It will certainly be a forced choice. We are hoping that some investor would take over Jet and our salaries will remain protected, he said.
A SpiceJet executive said that the budget carrier was offering salaries based on their own structure and not the highly inflated one paid by Jet Airways.
Pilots with 4-5 years of experience are going to other airlines as they are feeling the pinch of salary delays.
They have loans and other financial commitments so they are looking for places where there is certainty of jobs and timely salary payment.
Not many senior level pilots have so far left Jet Airways. They are reluctant to go to either SpiceJet, IndiGo or Air India Express as they feel their seniority and salary will be impacted. They do not want to sign 3-5 year bonds, he said.
The flying veteran noted that many co-pilots who do not have much experience generally get about 2.9 lakh salary month at Jet Airways, and they are willing to join other airlines for even less than 2 lakh a month.
Among various domestic airlines, only Air India Express and SpiceJet operate Boeing fleets, apart from Jet Airways.
Those operating Airbus aircraft fear huge conversion costs for both pilots and engineers and are, thus, reluctant to hire the technical personnel from Jet.
We will have to train them for flying and maintenance of Airbus aircraft. In case of pilots, it will need six months of training, while for engineers the reskilling would take 3-4 months.
This means the salary for entire training period will be a huge cost for us, said an executive of a private airline operating Airbus planes.
But aviation experts feel that the current situation is temporary and it will normalise once Jet gets back on its feet.
This is an unusual situation because Jet Airways remains almost grounded. Normally, supply and demand have been in favour of pilots and engineers. Now, it depends on how quickly Jet restarts again.
If that happens things will stabilise. I won't be surprised if many pilots and engineers go back to Jet, said Rajan Mehra, a veteran aviation professional and Chief Executive Officer Club One Air.
Saddled with mounting debt and losses, Jet Airways is fighting for its survival.
The airline is in gradual descent and staring at closure with nearly 90 per cent of its fleet on the ground.
Tourism Observer
INDIA: SpiceJet To Commence New Direct Flights From Mumbai to Colombo, Dhaka, Riyadh, Hong Kong and Kathmandu
The no-frills airline would start the services from the end of May.
In a release, the carrier said it would be the first Indian budget carrier to launch daily direct flights on the Mumbai-Colombo, Mumbai-Dhaka, Mumbai-Riyadh, Mumbai-Hong Kong and Mumbai-Kathmandu sectors.
Boeing 737 NG aircraft would be deployed in the new routes.
We are delighted to connect a large number of popular international destinations from Mumbai, a city that has always been a key and integral part of our network, SpiceJet Chairman and Managing Director Ajay Singh said.
Riyadh and Kathmandu are two upcoming international destinations for the airline.
The airline already operates flights to Colombo from Chennai and Madurai, Dhaka from Kolkata, Dubai from Delhi, Mumbai, Ahmedabad, Pune, Kochi, Kozhikode, Mangalore, Amritsar, Jaipur and Madurai, Hong Kong from Delhi and Jeddah from Hyderabad; besides an upcoming flight from Kozhikode, the release said.
SpiceJet is a low-cost airline headquartered in Gurgaon, India. It is the fourth largest airline in the country by number of domestic passengers carried, with a market share of 13.3% as of October 2017.
The airline operates 312 daily flights to 55 destinations, including 47 Indian and 7 international destinations from its hubs at Delhi, Kolkata, Mumbai and Hyderabad.
Established as air taxi provider ModiLuft in 1994, the company was acquired by Indian entrepreneur Ajay Singh in 2004 and re-christened as SpiceJet.
The airline operated its first flight in May 2005. Indian media baron Kalanidhi Maran acquired a controlling stake in SpiceJet in June 2010 through Sun Group which was sold back to Ajay Singh in January 2015. The airline operates a fleet of Boeing 737 and Bombardier Dash aircraft.
The origins of SpiceJet can be tracked back to March 1984 when the company was established by Indian industrialist S. K. Modi to provide private air taxi services.
On 17 February 1993, the company was named as MG Express and entered into technical partnership with the German flag carrier Lufthansa. The airline provided passenger and cargo services under the name of Modiluft before ceasing operations in 1996.
SpiceJet is headquartered in Gurgaon, India. Ajay Singh serves as the Managing Director of the airline since January 2015.
The airline's logo consists of 15 dots arranged in three rows of five each in the order of their reducing sizes on a red background.
In June 2015, the airline unveiled its current logo with a new tagline Red. Hot. Spicy. SpiceJet names all its aircraft with the name of an Indian spice.
SpiceJet is listed on the Bombay Stock Exchange
As of April 2019, SpiceJet operates 306 flights daily to 35 Indian and 6 international destinations. It operates hubs at Delhi and Hyderabad, which is the primary base for its fleet of Bombardier Q400 aircraft.
After completing five years of flying, SpiceJet was allowed to commence international flights by Directorate General of Civil Aviation on 7 September 2010.
SpiceJet launched flights from Delhi to Kathmandu and Chennai to Colombo and the first international flight took off on 7 October 2010 from Delhi.
SpiceJet operates the following aircraft:
28 - Boeing 737-800
03 - Boeing 737-700
04 - Boeing 737-900ER
13 - Boeing 737 MAX 8
22 - Bombardier Dash 8 Q400
05 - Bombardier Dash 8 Q400 NG
01 - Boeing 737-700BCF/BDSF
76 Total Operating Aircrafts
SpiceJet has pending orders for the following aircraft:
193 - Boeing 737 MAX 8
045 - Bombardier Dash 8 Q400 NG
019 - Boeing 737-700BCF/BDSF (Cargo Plane)
257 - Total Pending Orders
SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in March 2005, with deliveries scheduled up to 2010.
In November 2010, the airline ordered 30 Boeing 737-800s. On 9 December 2010, Bombardier Aerospace announced that SpiceJet had placed a firm order for fifteen Q400 NextGen turboprop airliners with options for another fifteen. SpiceJet used its fleet of Q400s for short-haul operations.
In March 2014, the airline signed a US$4.4 billion deal with Boeing for the procurement of 42 737 MAX 8 aircraft.
In 2015, SpiceJet was in talks with both Boeing and Airbus for a possible order of more than 100 single aisle aircraft, either Airbus A320neo or the Boeing 737 MAX with the same being confirmed by Managing Director, Ajay Singh, in a conference in Dubai.
In January 2017, the airline placed a firm order for 100 737 MAX 8 aircraft, and revealed itself as the airline behind the 13 MAX 8 aircraft previously attributed to an unidentified customer, taking its total order to 155 MAX 8 aircraft with purchase rights for 50 additional MAX 8 and wide-body aircraft.
The budget carrier plans to grow its operational fleet to 200 airplanes by the end of the decade and expand regionally with the new 737 MAX family of airplanes.
In June 2017, the airline signed a letter of intent with Bombardier at the 2017 Paris Air Show, to purchase up to 50 Q400 aircraft, catering to growth in passenger traffic arising from its participation in the Indian government's UDAN regional connectivity scheme.
It is announced to induct 16 737-800 NG in response to fulfil demands in local and international expansion. It was ordered due to the fleet of 737 max being currently banned and the downfall of Jet Airways.
SpiceJet has moved away from the typical low-cost carrier service model of economy class-only seating.
The airline offers premium services under the name SpiceMax, whereby passengers can obtain additional benefits including pre-assigned seats with extra legroom; meals on board; priority check-in and boarding; and priority baggage handling; at a higher fare.
Otherwise SpiceJet does not provide complimentary meals in any of its flights. It does sell full in-flight meals on some flights. SpiceJet does not operate any frequent-flyer programme and does not provide any in-flight entertainment options.
SpiceJet has partnered with Tripfactory for selling holiday packages on its platform.
SpiceXpress is the air cargo division of SpiceJet. The cargo airline was launched in September 2018 and commenced services on the Delhi-Bengaluru-Delhi route with a Boeing 737-700.
SpiceXpress began services between Guwahati and Hong Kong on 19 January 2019 becoming the first airline to operate freight services between Northeast India and Southeast Asia.
Tourism Observer
Monday, 31 December 2018
INDIA: SpiceJet Required To Pay Rs 28.5 crore
The Airports Authority of India (AAI) has asked SpiceJet to make quick payment of around Rs 28.5 crore immediately in order to reduce the outstanding dues, which currently stand at nearly Rs 115 crore.
SpiceJet's outstanding towards landing, parking and route navigation charges increased to a large extent between September and October when oil prices went sharply up and rupee depreciated rapidly.
In November the airline was asked to deposit Rs 20 crore by November 30 to bring its dues under the 80 percent threshold of the security deposit. The AAI had asked the airline to deposit Rs 2.5 crore per day in addition to the Rs 20 crore.
Rs 20 crore amount was paid. They have been making a payment of Rs 2.5 crore every day, out of which Rs 2 crore will cater to their regular monthly payment and balance to reduce the outstanding dues. We are hopeful that by March, this outstanding amount will come down substantially.
SpiceJet said that all its payments to the AAI are being made as per the schedule agreed upon by the two. There has been no default. SpiceJet remains firmly committed to all its obligations, a SpiceJet spokesperson said.
The airline will make another fast payment by the end of December, however, the exact figure will be decided considering the shortfall at that point of time.
The airline's billings on an average amount to Rs 60 crore on a monthly basis for these services. As per the normal operations at the AAI, officials said that an airline can maintain dues equivalent to half of its security deposit. For SpiceJet, this would come to around Rs 60 crore against a security deposit of Rs 120 crore.
The AAI manages a total of 125 airports, which include 11 international airports, 8 customs airports, 81 domestic airports and 25 civil enclaves at defence airfields.
On an average, SpiceJet operates 416 flights daily to 57 destinations, of which 49 are domestic and eight are international. The airline’s fleet consists of 37 Boeing 737 MAX and NG jets and 23 Bombardier Q-400s.
Tourism Observer
Sunday, 30 December 2018
INDIA: Tatas’ Love For Air India
In 2013, after staying on the sidelines for over six decades, the salt-to-software conglomerate returned to India’s aviation sector through two joint venture (JV) partnerships with Malaysia-based AirAsia Bhd and Singapore Airlines.
The Tata group had founded Air India (AI), then Tata Airlines, in 1932, which the Indian government took control of in 1953. Ever since, the group had stayed out of the airline business.
Now, it is eyeing a bigger slice of India’s aviation pie. On Oct. 10, chairman N Chandrasekharan said that his group would consider acquiring the beleaguered national carrier Air India.
This isn’t the first time that the Tatas have shown interest in AI, currently India’s fourth-largest airline by market share. In 2000, the group partnered with Singapore Airlines to bid for a 40% stake in the company, but the plan didn’t materialize as Singapore Airlines withdrew.
We will definitely look at it (AI), Chandrasekaran said. We still don’t have all the details. Every business proposal will be very seriously looked at and we will look at that (AI). Definitely.
But currently we don’t have the data there are so many different groups within Air India, and then there is real estate, there is debt, there is liabilities, and we got to look at all of that but we will definitely look at it.
The $103 billion Tata Sons’ interest in AI could have stemmed from the lacklustre showing of AirAsia and Vistara. Together, they have a domestic market share of only 7.6% with a fleet of 29 aircraft. This is significantly lower than market leader IndiGo’s 38% with 138 aircraft.
We need to look at aviation as a whole, Chandrasekaran said. We are subscale. We got two airlines both are subscale. Any decision that we take—Air India or otherwise—we have to have a story because we can’t be operating with 15 aircraft or 20 aircraft.
The Tata group owns 51% of Vistara, with Singapore Airlines in control of the rest. In AirAsia India, it owns 49%, while the rest is held by Malaysia’s AirAsia Bhd.
Over the past few years, both Vistara and AirAsia India have been looking at international operations but have been held up by regulatory hurdles, hampering business and profitability.
India’s aviation norms require an airline to deploy 20 aircraft, or 20% of its fleet, on domestic routes before it can take off on international routes. Vistara and AirAsia India have only 16 and 13 aircraft respectively.
You have got to give them time as far as their investments in AirAsia India and Vistara goes, Mark Martin, founder of Martin Consulting, an aviation consultancy based in Dubai, said about the Tata group’s investments in the aviation sector.
But, if and when Air India is bought out by Tata, it would be one massive and mega monolithic turnaround for the airline because the Tatas are the only people capable of turning around such an airline.
Buying AI will give the Tata group access to a sizeable fleet that can operate both at home and abroad. The government airline flies to nearly 41 international and 72 domestic destinations.
It is also India’s single largest international carrier with a 17% market share of the overseas routes from the country and operates 119 aircraft. But, bogged down by debt following an ill-advised merger in 2007, it has been struggling for survival.
The Tata group’s core strategy currently involves building a strong brand globally. And what better than an airline that flies to every part of the world, particularly the Americas and Africa? That’s the opportunity Air India brings to the table for the Tatas, Martin said.
India is currently the world’s ninth-largest aviation market. Domestic air travel is expected to grow 9.5% annually between 2011 and 2031, according to aircraft maker Airbus. Currently, only about 2% of India’s population uses airlines, providing a massive opportunity to expand the market.
The prospects for Air India’s privatization seem to be going from bad to worse.
Days after India’s largest airline IndiGo declared that it lacks the capability to turn the country’s state-run airline around, the private player’s closest competitor by market share, Jet Airways, pulled out of the race.
We welcome the government move to privatise Air India. It is a bold step. However, considering the terms of offer in the information memorandum and based on our review, we are not participating in the process, Amit Agarwal, Jet Airways’ deputy CEO said
Earlier this year, Ajay Singh, chairman of low-cost carrier SpiceJet, had also told CNBC-TV18 that it is too small to bid for the Maharajah.
With three heavyweights out, few aviation space players remain in the race for Air India. And all eyes are now on the airline’s founder itself: the Tata Group.
Last year, Tata Sons chairman N Chandrasekharan had made his group’s interest known when he said it would definitely look at buying Air India.
I do not think any player in India, apart from the Tata group, has the management ability to turn around an airline like Air India. Tata also has the strategic leadership, financial foresight, and consumer connect to drive traffic, said Mark Martin, head of aviation consultancy firm Martin Consulting.
The group, he said, can either individually bid for Air India, or form a consortium with a foreign airline.
The Tata group, India’s largest diversified conglomerate, had total revenues of around Rs673,350 crore ($100 billion) as of financial year 2017.
It went into aviation in the 1930s with the launch of Tata Airlines, which was later nationalised and rebranded as Air India. In 2014, it partnered with AirAsia Behrad to launch AirAsia India. A year later, its joint venture with Singapore airlines, Vistara, took flight.
If the Tatas, too, opt out, government will have to look for alternatives.
One option could be one or more foreign airlines teaming up with Indian financiers, Martin explained. Airlines like Qatar airways can partner with private equity firms, for instance, and bid for Air India, he said.
A foreign airline can only have up to a 49% stake in Air India, with ownership and effective control of the airline resting with an Indian entity.
However, some experts believe the sale terms need to be overhauled.
The government may have to reconsider separating the domestic operations from the ground-handling services and international operations, Dhiraj Mathur, partner at PwC India said.
Additionally, low-cost players do not necessarily want to enter the full-service airline business, Mathur said. Therefore government will likely have to change the terms if it wants Indian players to participate.
Air India is the flag carrier airline of India headquartered at New Delhi. It is owned by Air India Limited, a government-owned enterprise, and operates a fleet of Airbus and Boeing aircraft serving 94 domestic and international destinations.
The airline has its hub at Indira Gandhi International Airport, New Delhi, alongside several focus cities across India. Air India is the largest international carrier out of India with an 18.6% market share.
Over 60 international destinations are served by Air India across four continents. Additionally, the carrier is the third largest domestic airline in India in terms of passengers carried after IndiGo and Jet Airways with a market share of 13.5% as of July 2017.
The airline became the 27th member of Star Alliance on 11 July 2014.
The airline was founded by J. R. D. Tata as Tata Airlines in 1932; Tata himself flew its first single-engine de Havilland Puss Moth, carrying air mail from Karachi to Bombay's Juhu aerodrome and later continuing to Madras currently Chennai.
After World War II, it became a public limited company and was renamed as Air India. On 21 February 1960, it took delivery of its first Boeing 707 named Gauri Shankar and became the first Asian airline to induct a jet aircraft in its fleet.
In 2000–01, attempts were made to privatise Air India and from 2006 onwards, it suffered losses after its merger with Indian Airlines.
Air India also operates flights to domestic and Asian destinations through its subsidiaries Alliance Air and Air India Express. Air India's mascot is the Maharajah (Emperor) and the logo consists of a flying swan with the wheel of Konark inside it.
Tourism Observer
INDIA: Parliamentary Panel Criticizes Airlines For Overcharging, Misbehavior, Long Ques, And Poor Food
A parliamentary panel on Dec. 27 criticised aviation firms for overcharging, staff misbehaviour, unsatisfactory check-in, and poor luggage collection services, among other things.
What the passenger wants is a quick check-in, without long queues, and a smooth process of security check. Despite the huge claims of airlines regarding the check-in process, the committee is compelled to observe that the check-in counters are in a mess, especially those of low-cost airlines such as IndiGo, said the parliamentary standing committee on transport, tourism, and culture in a report (pdf) tabled in the Rajya Sabha, the upper house of Indian parliament.
It mentioned incidents of a few private airlines deliberately creating long queues at check-in counters to ensure that passengers miss their flights, and then persuading them to buy exorbitantly priced tickets for the next available ones.
The report recommended that the number of check-in counters and people deployed at the counters must be directly proportional to the number of flights each airline operates from an airport.
However, responding to the panel’s observations, the government indicated it may not be able to do much about it.
Check-in process, check-in counters, and collection of luggage are commercial issues and the government does not interfere with the commercial activities of the airlines.
Further, there is no regulation issued by the aviation regulator, DGCA or directorate general of civil aviation in this regard, the ministry of civil aviation was quoted in the report.
The parliamentary committee had other complaints, too.
It came down heavily on low-cost airlines for providing unsatisfactory food, even when passengers are charged for it. Every airline should maintain the highest quality of food and they should also change the menu occasionally instead of keeping a cold sandwich in their menu throughout the year, the report said.
It noted that since there are no uniform standards for imposing charges for rescheduling, cancellation, and no-show, such levies by airlines are often arbitrary today. Airlines should not charge over 50% of the base fare as cancellation charges, it suggested.
The committee pulled up IndiGo, India’s largest airline by market share, for staff misbehaviour.
Our committee is very clear that the worst performing airline for consumers is IndiGo. They haven’t responded in spite of many complaints. IndiGo even charges for 1-2 kg overweight, this has not been taken very well and the committee is looking into the matter seriously, chairman of the committee, and member of parliament, Derek O’Brien said at a press conference after the report was tabled in parliament.
IndiGo, however, defended itself. We evaluate every complaint/feedback rigorously and develop training modules keeping the customer sentiment in mind, IndiGo responded.
The report comes at a time when most major airlines in the country are trying to cut corners and squeeze the last penny out of their various services, struggling as they are on multiple fronts.
Profitability in the industry has taken a severe beating as companies battle high fuel prices and unfavourable currency exchange rates. Airliners like IndiGo, SpiceJet, and Jet Airways have seen their finances worsen in the past two quarters.
The lawmakers’ criticism is something the industry could have dealt with before, to avoid such critisism.
However, the commitee The Committee is happy to note that the heliport at Rohini has been operationalized.
The Committee is of the view that the helicopter industry has tremendous potential to provide services in the tourism sector, disaster management etc.
The Committee desires that more such heliports may be set up throughout the country. The Committee reiterates its earlier
recommendation that Air India and Pawan Hans can work together to ensure seamless travel on hub and spokes basis- bringing passengers from smaller places to various tourist spots.
The Committee feels that the development of un-served and under-served airports would give a major boost to air connectivity to various small cities and towns.
It will further give a fillip to the economic development in these areas in terms of job creation and infrastructure development.
There should not be any unreasonable restriction on the allocation of fund to the demands of the Ministry of Civil Aviation as the money spent will spur the overall growth of the country especially in view of the Regional Connectivity Scheme UDAN.
The Committee takes note of the initiatives taken under RCS. Air connectivity is the main mode of transport for majority of the population of North East to other parts of the country and these States are demanding overall economic development.
The Committee feels that better air connectivity is the only solution to opening up the economy of North Eastern States. Therefore, the Committee notes that it is very essential to give a preferential treatment to the North Eastern States as far as air connectivity is concerned.
Tourism Observer
Friday, 3 August 2018
INDIA: Passengers Complain About Flight Delay At Hyderabad Airport
The two airline officials said the flights failed to take off due to technical reasons.
Airlines authorities pressed into service, aircraft maintenance engineers and sorted out the problems.
The SpiceJet flight SG 511 bound to Bangalore from RGIA was supposed to depart around 10.40 am on Wednesday but it took off at 2.55 pm.
The Saudia airlines flight bound to Jeddah was scheduled to depart from the Shamshabad airport at 12.50 pm on Tuesday.
However, it took off around 12 am on Wednesday, airport sources said.
The airline officials provided proper accommodation to the passengers till the aircraft departed from RGIA, the sources added.
Tourism Observer
Friday, 23 June 2017
United Airlines Paris Air Show Ordered 100 Boeing 737 MAX 10
United Airlines made a blockbuster announcement Tuesday at the Paris Air Show, shifting 100 of its outstanding 737 MAX orders to Boeing’s newly launched 737 MAX 10.
United also announced an incremental order for 4 Boeing 777-300ER widebodies, growing its 777-300ER order book to 18 frames, just two short of rival American Airlines and one short of Air Canada for the biggest fleet of 777-300ERs in North America.
The 737 MAX 10 is the newest and largest variant of Boeing’s re-engined 737 MAX family and was launched Monday at the Paris Air Show in a brief press conference. The 737 MAX 10 adds two additional rows of seating relative to the 737 MAX 9 (the previous largest member of the MAX family).
It seats as many as 230 passengers in a single class configuration and will seat approximately 188 passengers in a typical two-class configuration. For United, the aircraft will probably be configured in a three-class configuration with Economy Plus so the seating capacity might be smaller.
United currently has 161 737 MAX jets on order; 100 from an order placed back in July 2012 for 100 737 MAX 9s, and 61 conversions from United’s multiple orders for the 737-700 placed under prior management teams. Its order book now consists of 61 737 MAX 9s and 100 737 MAX 10s. United expects to take delivery of its first MAX 10 in 2020.
With the announcement, Boeing has now revealed 290-310 orders and commitments for the 737 MAX 10 from 11 customers. Both figures are actually higher than the 240 from 10 customers promised by Boeing at the opening of the show.
The order was announced at a press conference featuring Boeing’s Global VP of Sales Ihssane Mounir, Boeing Commercial Airplanes CEO, and Gerry Laderman, United’s SVP of Finance and Procurement.
Once again, Mounir kicked off the press conference with a half-attempt at humor:
Apologies the room is a little hot, but the announcement makes it a little hotter. Jerry is the godfather of economics, and their order is all about economics. They have elected to purchase 100 MAX-10s and four additional 777-300ERs.
McAllister also spoke fondly of the deal.
This is a very special day for all of us at Boeing, and I have to say on bahalf of all, this means a lot to us. This order is not only a launch customer, it makes them the largest MAX-10 customer in the world. They have a very talented team who participated in this assessment. We are simply honored with the confidence United places in the MAX-10. This makes United’s 11th launch with Boeing, beginning in the 1920s.
Laderman was similarly nostalgic:
When I first joined the airline, we [United] were flying 737-100s, and now we’re very excited about the 737 MAX. We have had great success with the stretched models of aircraft, including the 757-300. Today we launch the MAX-10 which we hope will be as successful as those other models.
These 100 737 MAX 10s will be used by United to grow domestic capacity, whether through direct capacity growth or through United’s typical cascade of replacing regional jets indirectly with large narrowbodies.
In this model United uses smaller narrowbodies (the 737-700/800 or Airbus A319/A320) to replace regional jets, and then uses larger narrowbodies (the 737-900ER mostly) to replace the routes that had been flown by the smaller 737 and A320 family jets.
Sometimes the first step in this chain is actually to replace a small, 50-seat regional jet with a larger 76-seat one in which case the cascade just moves down a level.
In particular, the MAX 10 will be very useful for United at its space constrained Newark and San Francisco hubs, as well as for high-density routes from the Denver hub. It may also fly to Hawaii and other leisure destinations. Essentially it will play the same role that the 757-200 used to domestically and a similar role to the 737-900ER.
Another role will be to perhaps replace the 21 757-300s in United’s fleet. While these aircraft about 25 seats larger than the MAX 10, they are also getting up there in age, and the MAX 10 should have comparable seat mile economics as it is basically two generations newer.
Another almost certain replacement role will be for United’s transcontinental fleet of premium service (p.s.) Boeing 757-200s. Rival American Airlines has already switched to the Airbus A321, and retiring the MAX 10s would allow United to isolate the 757 fleet to purely a trans-Atlantic mission either replacing these aircraft with the 737 MAX 8 or with a new mid-sized airplane NMA from Boeing.
The 737 MAX 10 was already in good shape after the massive surge of orders announced over days one and two of PAS, but the order from United is validation on a different level even than Lion Air or SpiceJet.
Obviously, one piece of this is the size of the order, but United is a tier 1 global carrier in a way that those two Asian ULCCs simply cannot match. United is the world’s third largest airline (by RPKs) and that gives Boeing’s attempt to address the middle of market (MOM) space real weight from day one.
Between the 737 MAX 10 and the 737 MAX 9, Boeing has now closed the gap to perhaps 2:1 or 2.5:1 in favor of the Airbus A321neo. That still isn’t great but it is much better than the 3-4:1 before the show.
One underrated aspect of this order is the incremental top-up of United’s 777-300ER fleet, growing that subfleet to 18 aircraft by the end of 2018. Three of the four additional orders will be delivered before summer 2018, while the fourth will be in place by the end of 2018.
United has apparently seen strong success with its existing 777-300ER fleet which features the carrier’s new Polaris Business Class product and seats 366 passengers in a three-class configuration (60J / 102Y+ / 204Y).
The 777-300ERs are being used to replace the Boeing 747-400 and in the current environment are highly economical. Boeing no doubt gave United a spanking deal on these 777-300ERs to help bridge its production gap in 2018 as it seeks to transition from the 777 Classic to the re-engined 777X.
The one question that this does bring up for Boeing’s rival Airbus is whether United will further defer at least a portion of its order for Airbus A350-1000s. We are hearing further chatter about delays to United’s order for 35 A350-1000s, and United is no doubt being pitched by Boeing on more 777-300ERs on the cheap followed by 777Xs in the mid 2020s.
United also announced an incremental order for 4 Boeing 777-300ER widebodies, growing its 777-300ER order book to 18 frames, just two short of rival American Airlines and one short of Air Canada for the biggest fleet of 777-300ERs in North America.
The 737 MAX 10 is the newest and largest variant of Boeing’s re-engined 737 MAX family and was launched Monday at the Paris Air Show in a brief press conference. The 737 MAX 10 adds two additional rows of seating relative to the 737 MAX 9 (the previous largest member of the MAX family).
It seats as many as 230 passengers in a single class configuration and will seat approximately 188 passengers in a typical two-class configuration. For United, the aircraft will probably be configured in a three-class configuration with Economy Plus so the seating capacity might be smaller.
United currently has 161 737 MAX jets on order; 100 from an order placed back in July 2012 for 100 737 MAX 9s, and 61 conversions from United’s multiple orders for the 737-700 placed under prior management teams. Its order book now consists of 61 737 MAX 9s and 100 737 MAX 10s. United expects to take delivery of its first MAX 10 in 2020.
With the announcement, Boeing has now revealed 290-310 orders and commitments for the 737 MAX 10 from 11 customers. Both figures are actually higher than the 240 from 10 customers promised by Boeing at the opening of the show.
The order was announced at a press conference featuring Boeing’s Global VP of Sales Ihssane Mounir, Boeing Commercial Airplanes CEO, and Gerry Laderman, United’s SVP of Finance and Procurement.
Once again, Mounir kicked off the press conference with a half-attempt at humor:
Apologies the room is a little hot, but the announcement makes it a little hotter. Jerry is the godfather of economics, and their order is all about economics. They have elected to purchase 100 MAX-10s and four additional 777-300ERs.
McAllister also spoke fondly of the deal.
This is a very special day for all of us at Boeing, and I have to say on bahalf of all, this means a lot to us. This order is not only a launch customer, it makes them the largest MAX-10 customer in the world. They have a very talented team who participated in this assessment. We are simply honored with the confidence United places in the MAX-10. This makes United’s 11th launch with Boeing, beginning in the 1920s.
Laderman was similarly nostalgic:
When I first joined the airline, we [United] were flying 737-100s, and now we’re very excited about the 737 MAX. We have had great success with the stretched models of aircraft, including the 757-300. Today we launch the MAX-10 which we hope will be as successful as those other models.
These 100 737 MAX 10s will be used by United to grow domestic capacity, whether through direct capacity growth or through United’s typical cascade of replacing regional jets indirectly with large narrowbodies.
In this model United uses smaller narrowbodies (the 737-700/800 or Airbus A319/A320) to replace regional jets, and then uses larger narrowbodies (the 737-900ER mostly) to replace the routes that had been flown by the smaller 737 and A320 family jets.
Sometimes the first step in this chain is actually to replace a small, 50-seat regional jet with a larger 76-seat one in which case the cascade just moves down a level.
In particular, the MAX 10 will be very useful for United at its space constrained Newark and San Francisco hubs, as well as for high-density routes from the Denver hub. It may also fly to Hawaii and other leisure destinations. Essentially it will play the same role that the 757-200 used to domestically and a similar role to the 737-900ER.
Another role will be to perhaps replace the 21 757-300s in United’s fleet. While these aircraft about 25 seats larger than the MAX 10, they are also getting up there in age, and the MAX 10 should have comparable seat mile economics as it is basically two generations newer.
Another almost certain replacement role will be for United’s transcontinental fleet of premium service (p.s.) Boeing 757-200s. Rival American Airlines has already switched to the Airbus A321, and retiring the MAX 10s would allow United to isolate the 757 fleet to purely a trans-Atlantic mission either replacing these aircraft with the 737 MAX 8 or with a new mid-sized airplane NMA from Boeing.
The 737 MAX 10 was already in good shape after the massive surge of orders announced over days one and two of PAS, but the order from United is validation on a different level even than Lion Air or SpiceJet.
Obviously, one piece of this is the size of the order, but United is a tier 1 global carrier in a way that those two Asian ULCCs simply cannot match. United is the world’s third largest airline (by RPKs) and that gives Boeing’s attempt to address the middle of market (MOM) space real weight from day one.
Between the 737 MAX 10 and the 737 MAX 9, Boeing has now closed the gap to perhaps 2:1 or 2.5:1 in favor of the Airbus A321neo. That still isn’t great but it is much better than the 3-4:1 before the show.
One underrated aspect of this order is the incremental top-up of United’s 777-300ER fleet, growing that subfleet to 18 aircraft by the end of 2018. Three of the four additional orders will be delivered before summer 2018, while the fourth will be in place by the end of 2018.
United has apparently seen strong success with its existing 777-300ER fleet which features the carrier’s new Polaris Business Class product and seats 366 passengers in a three-class configuration (60J / 102Y+ / 204Y).
The 777-300ERs are being used to replace the Boeing 747-400 and in the current environment are highly economical. Boeing no doubt gave United a spanking deal on these 777-300ERs to help bridge its production gap in 2018 as it seeks to transition from the 777 Classic to the re-engined 777X.
The one question that this does bring up for Boeing’s rival Airbus is whether United will further defer at least a portion of its order for Airbus A350-1000s. We are hearing further chatter about delays to United’s order for 35 A350-1000s, and United is no doubt being pitched by Boeing on more 777-300ERs on the cheap followed by 777Xs in the mid 2020s.
Friday, 24 March 2017
INDIA: Air India, IndiGo Cancel Shiv Sena MP Ravindra Gaikwad's Ticket
Moments after Shiv Sena MP from Osmanabad Ravindra Gaikwad refused to apologise for thrashing an Air India staff, the airline cancelled his return ticket from Delhi to Pune.
Shiv Sena Member of Parliament, Ravindra Gaikwad, in the news for slapping an Air India employee with his slippers, may be permanently barred from flying on the country's national carrier.
The Osmanabad MP has refused to apologise for his behaviour. According to latest reports, Air India has cancelled Gaikwad's return ticket from Delhi to Pune.
Following this, IndiGo too canceled Gaikwad's ticket.
The MP was booked on a 5pm flight, but the airline, which along with other private carriers has barred Gaikwad from flying with them, had cancelled the ticket.
The Federation of Indian Airlines, an industry body representing India's scheduled airline carriers, has blacklisted Gaikwad.
The FIA counts Jet Airways, IndiGo, Go Air, SpiceJet and JetLite as its members.
"Air India and FIA member airlines have decided to ban this Member of Parliament from flying on all our flights with immediate effect," FIA Director Ujjwal Dey, said in a statement.
Air India, meanwhile, has been mulling establishing a no-fly list of passengers with a history of bad behaviour while flying on the airline.
Once implemented, Gaikwad, who has remained defiant about the incident while admitting to assaulting the AI employee, would be on the list.
IndiGo and SpiceJet, meanwhile, have lent support to the idea of forming a nationwide no-fly list. "SpiceJet supports a no-fly list to bar unruly flyers who are a safety hazard for not just the crew but even the traveling public.
The government needs to act on this soon," SpiceJet CMD Ajay Singh said.
"In the interest of the safety and security of our colleagues and other customers we also propose the promulgation of a "no fly" list which shall include the names of all unruly passengers," Dey said in the FIA statement.
Gaikwad, in an interview remained unapologetic about the incident, saying he is not in the wrong. "I do not regret (beating up the employee) and I will not apologise," Gaikwad said.
He went on to dare Air India to blacklist from flying on the airline, adding that if AI employees misbehaved with him again in the future, he will repeat his actions.
The Shiv Sena, meanwhile, has asked Gaikwad to explain his actions.
The incident took place Thursday at Delhi's Indira Gandhi International airport on Air India flight AI 852 after it reached the national capital from Pune.
Gaikwad got into an argument with the flight's staff over not being given a business class seat, despite having a ticket for the same.
The MP refused to leave the aircraft, which was on the tarmac and which had to leave for Goa, until senior airline officials met him.
Finally, after intervention from the ground staff, Gaikwad agreed to deboard the plane. He, however, got into an argument 61-year-old Surendra Kundu, an Air India customer services officer, at the arrival gate.
On being told by Kundu that Gaikwad, being an elected representative, should not behave in this manner, the MP got agitated and started slapping Kundu with his slippers.
Later in the day, when questioned by the media, the unrepentant Gaikwad boasted about how he knows how to 'fix' people's ego and said that he had hit Kundu not once, but "25 times".
Meanwhile, a new video has surfaced showing Gaikwad scolding DSP of Osmnabad, the MP's constituency, over a case involving missing Shiv Sena workers.
The MP can be heard shouting at the DSP, Chandrakant Khandvi, in Marathi, asking him to explain why the case is unsolved and questioning the need for a written complaint.
The video depicts events from March 21, just two days before Gaikwad got into the scuffle with the AI
Shiv Sena Member of Parliament, Ravindra Gaikwad, in the news for slapping an Air India employee with his slippers, may be permanently barred from flying on the country's national carrier.
The Osmanabad MP has refused to apologise for his behaviour. According to latest reports, Air India has cancelled Gaikwad's return ticket from Delhi to Pune.
Following this, IndiGo too canceled Gaikwad's ticket.
The MP was booked on a 5pm flight, but the airline, which along with other private carriers has barred Gaikwad from flying with them, had cancelled the ticket.
The Federation of Indian Airlines, an industry body representing India's scheduled airline carriers, has blacklisted Gaikwad.
The FIA counts Jet Airways, IndiGo, Go Air, SpiceJet and JetLite as its members.
"Air India and FIA member airlines have decided to ban this Member of Parliament from flying on all our flights with immediate effect," FIA Director Ujjwal Dey, said in a statement.
Air India, meanwhile, has been mulling establishing a no-fly list of passengers with a history of bad behaviour while flying on the airline.
Once implemented, Gaikwad, who has remained defiant about the incident while admitting to assaulting the AI employee, would be on the list.
IndiGo and SpiceJet, meanwhile, have lent support to the idea of forming a nationwide no-fly list. "SpiceJet supports a no-fly list to bar unruly flyers who are a safety hazard for not just the crew but even the traveling public.
The government needs to act on this soon," SpiceJet CMD Ajay Singh said.
"In the interest of the safety and security of our colleagues and other customers we also propose the promulgation of a "no fly" list which shall include the names of all unruly passengers," Dey said in the FIA statement.
Gaikwad, in an interview remained unapologetic about the incident, saying he is not in the wrong. "I do not regret (beating up the employee) and I will not apologise," Gaikwad said.
He went on to dare Air India to blacklist from flying on the airline, adding that if AI employees misbehaved with him again in the future, he will repeat his actions.
The Shiv Sena, meanwhile, has asked Gaikwad to explain his actions.
The incident took place Thursday at Delhi's Indira Gandhi International airport on Air India flight AI 852 after it reached the national capital from Pune.
Gaikwad got into an argument with the flight's staff over not being given a business class seat, despite having a ticket for the same.
The MP refused to leave the aircraft, which was on the tarmac and which had to leave for Goa, until senior airline officials met him.
Finally, after intervention from the ground staff, Gaikwad agreed to deboard the plane. He, however, got into an argument 61-year-old Surendra Kundu, an Air India customer services officer, at the arrival gate.
On being told by Kundu that Gaikwad, being an elected representative, should not behave in this manner, the MP got agitated and started slapping Kundu with his slippers.
Later in the day, when questioned by the media, the unrepentant Gaikwad boasted about how he knows how to 'fix' people's ego and said that he had hit Kundu not once, but "25 times".
Meanwhile, a new video has surfaced showing Gaikwad scolding DSP of Osmnabad, the MP's constituency, over a case involving missing Shiv Sena workers.
The MP can be heard shouting at the DSP, Chandrakant Khandvi, in Marathi, asking him to explain why the case is unsolved and questioning the need for a written complaint.
The video depicts events from March 21, just two days before Gaikwad got into the scuffle with the AI
Friday, 27 January 2017
INDIA: SpiceJet To Buy 205 New Boeing Planes
A joint statement by the two companies Friday said the planes booked at the end of 2016 include 100 new Boeing 737 MAX 8s, 42 MAXs, 13 additional 737 MAXs as well as purchase rights for 50 additional planes.
SpiceJet is India's fourth-largest airline by number of passengers carried with a market share of 12.9 percent. It flies more than 300 daily flights to 41 Indian and international destinations.
"The Boeing 737 class of aircraft has been the backbone of our fleet since SpiceJet began (in 2005), with its high reliability, low operation economies and comfort," said Ajay Singh, Spicejet chairman and managing director.
Ray Conner, a top Boeing official, said the economics of the 737 MAXs would allow SpiceJet to profitably open new markets, expand connectively within India and beyond.
India's booming economy and growing middle class have helped to make it the world's fastest-growing air travel market. The number of passengers grew 20 percent last year, and airlines are announcing flights to new destinations in the country almost every week. Domestic air passengers are expected to jump from the current 70 million to 300 million by 2022, and to 500 million by 2027.
Monday, 16 January 2017
Boeing, SpiceJet Announce 205 Airplane Deal
Booked at the end of 2016, the announcement includes 100 new 737 MAX 8s, SpiceJet’s current order for 42 MAXs, 13 additional 737 MAXs which were previously attributed to an unidentified customer on Boeing’s Orders & Deliveries website, as well as purchase rights for 50 additional airplanes.
“The Boeing 737 class of aircraft has been the backbone of our fleet since SpiceJet began, with its high reliability, low operation economies and comfort,” said Ajay Singh, Chairman and Managing Director, SpiceJet.
“With the next generation of 737 and the 737 MAX we are sure that we can be competitive and grow profitably.”
SpiceJet, all-Boeing jet operator, placed its first order with Boeing in 2005 for Next-Generation (NG) 737s and currently operates 32 737 NGs in its fleet.
“We are honored to build upon more than a decade of partnership with SpiceJet with their commitment of up to 205 airplanes,” said Ray Conner, Vice Chairman, The Boeing Company.
“The economics of the 737 MAXs will allow SpiceJet to profitably open new markets, expand connectively within India and beyond, and offer their customers a superior passenger experience.”
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
The new airplane will deliver 20 percent lower fuel use than the first Next-Generation 737s and the lowest operating costs in its class – 8 percent per seat less than its nearest competitor.
Tuesday, 20 December 2016
INDIA: Strong Demand In Domestic Air Travel, Airlines Offering Huge Discounts
Full service carrier Jet Airways under its "Year End Sale" is offering tickets starting as low as Rs. 899 (all-inclusive) on economy class travel on select domestic routes.
Jet Airways said under the offer travel must commence on or after December 14, 2016, and tickets must be purchased a minimum of 15 days prior departure.
Another domestic carrier SpiceJet in its "Spicy Annual Sale" is offering all-inclusive fares starting at as low as Rs. 737 for travel on select domestic sectors. SpiceJet's offer is applicable on travel between January 9 and October 28, 2017.
The offers from SpiceJet, IndiGo and Jet Airways end tonight.
The promotional offers by airlines have helped spur a strong demand in domestic air travel. Passengers carried by domestic airlines during January to October 2016 surged to 813.70 lakh, a growth of over 23 per cent over the same period last year.
Monday, 15 August 2016
UAE: Sharjah Airport Experiences 12% More Passengers
Commercial passenger traffic at Sharjah International Airport increased by 11.55 percent during the first half of this year, compared with the same period in 2015, according to Sharjah Airport Authority. A total of 5.35 million passengers passed through the airport from January to June 2016, compared to 4.79 million in the same period last year.
Aircraft movements at Sharjah airport increased by 5.74 percent from 34,270 take-offs and landings during the first six months of 2015 to more than 36,237 during the same period of 2016. The freight handled for the same period of this year recorded 92,000 tons.
Sharjah International Airport’s passenger growth is underpinned by the ongoing expansion of Sharjah-headquartered Air Arabia, the largest low-cost carrier operator in the Middle East and North Africa. The airline has expanded its route network to more than 120 destinations, launching five new international routes since the beginning of 2016, including two new routes from its Sharjah hub.
Sharjah International Airport is already a hub for a number of international passenger and cargo airlines including Air Arabia, Air India, Air India Express, Jet Airways (India), Qatar Airways, SpiceJet (India) and Sri Lankan Airlines. Turkish airline AtlasGlobal launched a new daily service between Istanbul Atatürk International Airport and Sharjah International Airport earlier this year, while Jet Airways, India’s premier international airline, will add a new daily route from Mangaluru (Mangalore) in southern India to Sharjah from 7 August 2016.
Business aviation services company Gama Aviation has also expanded its fixed base operation (FBO) at Sharjah International Airport, establishing its own executive aviation terminal and investing in a new maintenance hangar. The company’s private aviation services in Sharjah are highly competitive with other hubs around the region.
Sharjah airport added a new super-jumbo capable AED 500 million (US$ 136m) airport runway in 2014, significantly expanding the airport’s capacity, in line with its goal of handling 25 million passengers by the year 2025. Total passenger numbers passing through the airport topped 10 million for the first time during 2015, growing at a rate of 5.5 percent over 2014.
Aircraft movements at Sharjah airport increased by 5.74 percent from 34,270 take-offs and landings during the first six months of 2015 to more than 36,237 during the same period of 2016. The freight handled for the same period of this year recorded 92,000 tons.
Sharjah International Airport’s passenger growth is underpinned by the ongoing expansion of Sharjah-headquartered Air Arabia, the largest low-cost carrier operator in the Middle East and North Africa. The airline has expanded its route network to more than 120 destinations, launching five new international routes since the beginning of 2016, including two new routes from its Sharjah hub.
Sharjah International Airport is already a hub for a number of international passenger and cargo airlines including Air Arabia, Air India, Air India Express, Jet Airways (India), Qatar Airways, SpiceJet (India) and Sri Lankan Airlines. Turkish airline AtlasGlobal launched a new daily service between Istanbul Atatürk International Airport and Sharjah International Airport earlier this year, while Jet Airways, India’s premier international airline, will add a new daily route from Mangaluru (Mangalore) in southern India to Sharjah from 7 August 2016.
Business aviation services company Gama Aviation has also expanded its fixed base operation (FBO) at Sharjah International Airport, establishing its own executive aviation terminal and investing in a new maintenance hangar. The company’s private aviation services in Sharjah are highly competitive with other hubs around the region.
Sharjah airport added a new super-jumbo capable AED 500 million (US$ 136m) airport runway in 2014, significantly expanding the airport’s capacity, in line with its goal of handling 25 million passengers by the year 2025. Total passenger numbers passing through the airport topped 10 million for the first time during 2015, growing at a rate of 5.5 percent over 2014.
Thursday, 4 August 2016
UAE: Sharjah Airport Passengers Rise By 12%
Aircraft movements at Sharjah airport increased by 5.74 percent from 34,270 take-offs and landings during the first six months of 2015 to more than 36,237 during the same period of 2016. The freight handled for the same period of this year recorded 92,000 tons.
Sharjah International Airport’s passenger growth is underpinned by the ongoing expansion of Sharjah-headquartered Air Arabia, the largest low-cost carrier operator in the Middle East and North Africa. The airline has expanded its route network to more than 120 destinations, launching five new international routes since the beginning of 2016, including two new routes from its Sharjah hub.
Sharjah International Airport is already a hub for a number of international passenger and cargo airlines including Air Arabia, Air India, Air India Express, Jet Airways (India), Qatar Airways, SpiceJet (India) and Sri Lankan Airlines. Turkish airline AtlasGlobal launched a new daily service between Istanbul Atatürk International Airport and Sharjah International Airport earlier this year, while Jet Airways, India’s premier international airline, will add a new daily route from Mangaluru (Mangalore) in southern India to Sharjah from 7 August 2016.
Business aviation services company Gama Aviation has also expanded its fixed base operation (FBO) at Sharjah International Airport, establishing its own executive aviation terminal and investing in a new maintenance hangar. The company’s private aviation services in Sharjah are highly competitive with other hubs around the region.
Sharjah airport added a new super-jumbo capable AED 500 million (US$ 136m) airport runway in 2014, significantly expanding the airport’s capacity, in line with its goal of handling 25 million passengers by the year 2025. Total passenger numbers passing through the airport topped 10 million for the first time during 2015, growing at a rate of 5.5 percent over 2014.
Thursday, 14 April 2016
UAE: AtlasGlobal Launches Daily Sharjah Service
AtlasGlobal’s A320 fleet operates the daily 3,013 kilometre sector between Istanbul and Sharjah, from its home base at Istanbul Atatürk International Airport. The airline is now the only carrier flying the route, although Sharjah-headquartered Air Arabia offers a daily service from Sharjah International Airport to Istanbul’s Sabiha Gökçen Airport.
Sharjah International Airport handled 10 million last year and is already a hub for a number of international passenger and cargo airlines including Air Arabia, Air India, Air India Express, Jet Airways (India), Qatar Airways, SpiceJet (India) and Sri Lankan Airlines. Air Arabia, the region’s largest low-cost carrier, serves 100 destinations in the Middle East, North Africa, the Indian subcontinent, Central Asia and Europe.
Sharjah opened a new super-jumbo capable AED 500 million (US$ 136m) airport runway in 2014, significantly expanding the airport’s capacity, in line with its goal of handling 25 million passengers by the year 2025. The airport also recently announced a new automated baggage management system, based on SITA’s baggage management and communication technology.
Sharjah International Airport will soon begin to levy a AED 35 (US$ 9.5) exit fee towards the infrastructure and expansion of the airport.
Saturday, 12 March 2016
INDIA: Airlines Owe Rs 3,030 Crore To Airports Authority Of India
"In the case of Kingfisher Airlines, recovery suit has been filed in the Mumbai High Court for the overdues and also criminal proceedings for cheques issued by Kingfisher Airlines amounting to Rs 136.22 crore in 2012 which was dishonoured by the bank," he noted.
Various airlines, including the defunct Kingfisher, owed Rs 3,030 crore to the Airports Authority of India (AAI) at the end of December last year, the government said today. ”The total dues from various airlines as on December 31, 2015 amount to Rs 2,793.04 crore towards aeronautical charges and Rs 236.60 crore towards non-aeronautical charges,” Minister of State for Civil Aviation Mahesh Sharma told the Lok Sabha in a written reply.
He was responding to a query on whether various Indian and foreign airlines owe dues to AAI for availing of fuel and other facilities. In a reply to a question on whether Kingfisher, SpiceJet and GoAir
on December 31, 2015, SpiceJet and GoAir had to pay Rs 78.87 crore and Rs 50.89 crore, respectively, Sharma said.
“In the case of SpiceJet, the party is paying Rs 1.50 crore every day against which Rs 1.10 crore is adjusted against current operations charges and the balance towards overdues. Bank guarantee of Rs 82.50 crore is available for adjustment/encashment in case of default,” the minister said.
With regard to GoAir, Sharma said the dues are centrally monitored on a weekly basis and notice is issued for settlement of overdues (in excess of bank guarantee).
“In the case of Kingfisher Airlines, recovery suit has been filed in the Mumbai High Court for the overdues and also criminal proceedings for cheques issued by Kingfisher Airlines amounting to Rs 136.22 crore in 2012 which was dishonoured by the bank,” he noted.
Various airlines, including the defunct Kingfisher, owed Rs 3,030 crore to the Airports Authority of India (AAI) at the end of December last year, the government said today. ”The total dues from various airlines as on December 31, 2015 amount to Rs 2,793.04 crore towards aeronautical charges and Rs 236.60 crore towards non-aeronautical charges,” Minister of State for Civil Aviation Mahesh Sharma told the Lok Sabha in a written reply.
He was responding to a query on whether various Indian and foreign airlines owe dues to AAI for availing of fuel and other facilities. In a reply to a question on whether Kingfisher, SpiceJet and GoAir
on December 31, 2015, SpiceJet and GoAir had to pay Rs 78.87 crore and Rs 50.89 crore, respectively, Sharma said.
“In the case of SpiceJet, the party is paying Rs 1.50 crore every day against which Rs 1.10 crore is adjusted against current operations charges and the balance towards overdues. Bank guarantee of Rs 82.50 crore is available for adjustment/encashment in case of default,” the minister said.
With regard to GoAir, Sharma said the dues are centrally monitored on a weekly basis and notice is issued for settlement of overdues (in excess of bank guarantee).
“In the case of Kingfisher Airlines, recovery suit has been filed in the Mumbai High Court for the overdues and also criminal proceedings for cheques issued by Kingfisher Airlines amounting to Rs 136.22 crore in 2012 which was dishonoured by the bank,” he noted.
Saturday, 19 December 2015
INDIA: IndiGo Most Googled Airline By Indians In 2015; SpiceJet Is 2nd
Low-cost airline IndiGo was the most searched carrier on Google by Indians in 2015.
This was followed SpiceJet and SriLankan, according to a Google spokesperson.
Among the other most-searched airlines were Jet Airways, Air India, AirAsia, GoAir, Qatar Airways, Etihad, British Airways, Vistara, Cathay Pacific and United Airlines.
Full service carrier Vistara, a Tata-Singapore Airlines joint venture which commenced operations in January, did not make it to the top five.
The company has just started rolling out nationwide services. It recently added one more aircraft to its fleet, taking the total strength to nine.
Emirates, which has the highest frequency of flights among foreign airlines in India, was not among the top searched in 2015.
This was followed SpiceJet and SriLankan, according to a Google spokesperson.
Among the other most-searched airlines were Jet Airways, Air India, AirAsia, GoAir, Qatar Airways, Etihad, British Airways, Vistara, Cathay Pacific and United Airlines.
Full service carrier Vistara, a Tata-Singapore Airlines joint venture which commenced operations in January, did not make it to the top five.
The company has just started rolling out nationwide services. It recently added one more aircraft to its fleet, taking the total strength to nine.
Emirates, which has the highest frequency of flights among foreign airlines in India, was not among the top searched in 2015.
Wednesday, 25 November 2015
INDIA: India Fines Carriers $38mn For Manipulating Fuel Surcharge Fees
Jet Airways
Type Scheduled Carrier
Base Mumbai Int'l
Aircraft 100
Destinations 71
Routes 204
Daily Flights 579
The Competition Commission of India (CCI) has found three local carriers guilty of colluding to artificially manipulate Fuel Surcharge (FSC) fees relating to cargo and freight. The motion was brought on by a complaint filed by the Express Industry Council of India.
The CCI said in a statement that Jet Airways (India) Ltd. had been fined INR1.5 billion (USD22.69 million), IndiGo Airlines parent InterGlobe Aviation Limited INR637 million (USD9.64 million), and SpiceJet Ltd INR425 million (USD6.43 million) for contravening Section 3 of India's Competition Act, 2002 which deals with anticompetitive practices. The fines represent 1% of each carrier's average turnover for the last three financial years.
"The Commission noted that the Airlines acted in parallel in collusion in fixing FSC rates," it said. "Such conduct was found to have resulted in indirectly determining the rates of air cargo transport and thereby in contravention of the provisions of section 3(1) read with section 3(3)(a) of the Act."
Other carriers named in the investigation - Air India and GoAir - were found not guilty.
Air India was found not to have colluded with any other carrier while GoAir's policy of selling belly-hold space to third-party firms exonerated it of any blame given its lack of control over their pricing structures.
Friday, 13 November 2015
INDIA: Spicejet Q2 Net Profit Up On Lower Fuel Expenses
Staying profitable for the third consecutive quarter, low-cost carrier SpiceJet on Thursday reported a net profit of Rs 23.77 crore in the three months ended September driven by a steep fall in fuel costs and other expenses.
The no-frills carrier, which saw the return of its original promoter Ajay Singh at the helm earlier this year, had a net loss of Rs 310.45 crore in 2014 September quarter.
The airline has flown into the black despite its total income from operations declining over 28% to Rs 1,040.13 crore in July-September of the current fiscal, according to a release.In a year-ago period, the same stood at Rs 1,449.94 crore.
SpiceJet benefited from over a 57% drop in jet fuel bill, which fell to Rs 337.78 crore in the quarter under review. In the same period a year ago, the bill stood at Rs 787.71 crore.
Besides, it managed to bring down overall expenses in the latest September quarter to Rs 1,068.05 crore from Rs 1,749.07 crore in the year-ago period.
"This is the third consecutive profitable quarter for SpiceJet. The airline recorded a load factor of 92.8% for the quarter, the highest in the industry," the release said.
In line with year-on-year capacity reduction of 34% that was driven by a smaller fleet in late 2014, SpiceJet said revenue for the quarter was down compared with the same period last year.
"Given that this quarter is the most challenging in the year, I am happy that the airline was able to demonstrate an encouraging performance."
"Our third consecutive profitable quarter since we embarked on the revival process shows that we are on the right track," SpiceJet chairman and managing director Ajay Singh said.
He also expressed confidence that the airline's performance would get better as it continues to focus on revenue maximisation, cost reduction and restoring operational reliability and on-time performance back to world-class standards.
On EBITDA (earnings before interest, taxes, depreciation and amortisation) basis, SpiceJet posted a profit of Rs 75.2 crore in the 2015 September quarter. In the comparable period, it was a loss of Rs 239.3 crore.
"On EBITDAR (earnings before interest, taxes, depreciation, amortisation and restructuring) basis, the company reported a profit of Rs 244.7 crore against a profit of Rs 20.3 crore in the same quarter last year. These results reflect a restructuring gain of Rs 65 crore and a currency re-evaluation loss of Rs 23 crore," the release said.
SpiceJet's chief financial officer Kiran Koteshwar said focus in the previous quarter was to ensure that it remained "cash positive in a traditionally weak quarter".
"We will continue to add capacity to take advantage of the strong growth in the sector, and we will work on measures to de-risk the business model," he added.
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