Airlines around the region are leasing additional aircraft to cater for expected increase in Hajj pilgrims travelling to Saudi Arabia this season.
Flynas, Saudi Arabia’s first low-cost airline, expects the number of Hajj passengers using the airline this year to rise almost 10 percent to 200,000, according to an airline spokesperson, , up from 175,000 in 2018.
A Flynas spokesperson said that Hajj passengers will be flown from 17 countries using 13 additional leased aircraft.
Among the aircraft being used to transport pilgrims to Saudi Arabia are two Airbus A380s, which were recently used to transport Malaysian pilgrims from Kuala Lampur to King Abdulaziz Airport in Jeddah and Prince Mohammed bin Abdulaziz airport in Madinah.
Flynas is the first Saudi airline to utilise the A380.
Other leased aircraft used by Flynas this season include Boeing 747 and 767s, as well as – for the first time – Airbus A330neo aircraft.
Flynas signed a memorandum of understanding (MoU) with Airbus to purchase 20 A321XLR and A4321LR aircraft which have a long-range operational performance of up to 11 hours – 8,700 kilometres – in addition to fuel consumption savings of 30 percent.
Flynas said that the aircraft will allow the airline to take better advantage of upcoming Hajj and Umrah seasons as it works to realise its long-term goal of transporting 5 million pilgrims annually.
Airlines have announced additional aircraft for the Hajj season as pilgrim numbers rise.
In July, Saudia announced that it had added 17 aircraft to its 165-aircraft fleet to help transport 1.2 million domestic and foreign pilgrims from approximately 100 destinations for Hajj season.
According to Saudia, the number of pilgrims it expects to transport this year has risen by about 10 percent compared to 2018.
In the UAE, Abu Dhabi-based Etihad Airways said it will operate 15 extra flights between July 28 and August 25 to transport pilgrims to Madinah, in addition to six charter flights dedicated to the General Authority of Islamic Affairs, Sheikh Zayed Foundation and Abu Dhabi police.
This year we expect 25,000 Hajj travellers on our flights, with most originating in Australia, Pakistan, Morocco, United Kingdom, India and Indonesia, Houssam Weiss, head of UAE sales at Etihad Airways said recently.
Dubai carrier Emirates airline has expanded its services to Jeddah and Madinah with an additional 46 flights between July 27 and August 22, running in parallel to scheduled services to the two cities.
Although the airline declined to give expected passenger numbers, it has said it expects thousands from destinations including Pakistan, the United States, Senegal, the UK, Nigeria, Indonesia, South Africa and Ivory Coast.
In Bahrain, national carrier Gulf Air has announced 38 extra flights in addition to its regularly scheduled 3 to 4 daily flights to Jeddah and 7 weekly flights to Madinah.
In nearby Kuwait, Director General of Civil Aviation Yousif Al-Fawazan told local media that six Kuwait Airways aircraft are expected to transport 1,336 passengers for the Hajj season.
Emirates has announced that it will add 46 flights to facilitate pilgrims travelling to Saudi Arabia for Haj.
The expansion of flights will operate from July 27 to August 22 to support the Haj journey to the city of Mecca.
Adil Al Ghaith, Emirates’ Senior Vice President, commercial operations for the Gulf, Middle East and Iran said: Haj is one of the most significant events in the Muslim faith, and every year, Emirates’ primary focus is to help facilitate seamless travel for our Haj passengers as they converge on the Holy city of Mecca for this once in a lifetime journey.
The services will run in parallel with Emirates’ regularly scheduled services to Jeddah and Medina, and will be available to travellers holding a valid Hajj visa.
With the substantial increase of inbound air travel into the Kingdom during this period, Emirates’ 46 extra flights will ensure that we can cater to that demand, as well as provide tailored onboard services in line with the tenets of Hajj, said Al Ghaith.
This year, Emirates expects thousands of pilgrims to travel on its services for Hajj, coming from top inbound destinations such as Pakistan, the United States, Senegal, the UK, Nigeria, Indonesia, South Africa and Ivory Coast.
To ease the journey for Haj passengers, Emirates has commissioned a dedicated team to manage check-in and transfers for the seamless movement of travellers leaving from and transiting in Dubai.
On flights from Jeddah, Haj passengers can also bring up to five litres of Zamzam holy water which will be placed in special areas in the cargo hold.
Once up in the air, Haj travellers will benefit from special services to performing ablutions and other cleansing rituals, and will also be notified when they enter Al Miqat zones to ensure readiness for Ihram, the point when pilgrims enter a state of purity.
Tourism Observer
Showing posts with label flynas. Show all posts
Showing posts with label flynas. Show all posts
Saturday, 3 August 2019
Thursday, 28 March 2019
SAUDI ARABIA: Flynas Commences Six New Routes From Saudi Arabia
Passengers Travelling out of Saudi Arabia over the summer period will have a host of new destinations to select from as low-cost airline Flynas is introducing new routes from across the country.
From June 13, the national airline will commence flights to six cities across Europe and Eurasia from four airports in the kingdom. While services will not start until June, booking is open now for any passengers wanting to plan ahead.
From Riyadh, two new direct flights to Georgia mean passengers can easily explore the Caucasus country.
The Black Sea resort and port city of Batumi is reachable in just three-and-a-half hours, while the capital of Tbilisi is only three hours and 45 minutes away.
Three new direct flights per week from Riyadh will be added servicing the Austrian city of Vienna, known for its beauty and architecture and reachable in less than six hours.
Azerbaijan’s Baku, Turkey’s Trabzon and Bosnia and Herzegovina’s Sarajevo will also be reachable direct from Riyadh King Khalid International Airport.
In Jeddah, new summer destinations from Flynas include Vienna, Baku and Sarajevo and from Dammam, travellers will be able to fly direct to Tbilisi and Baku.
From the smaller Prince Nayer bin Abdulaziz International Airport, formerly Qassim international Airport, new direct routes to Trabzon and Baku will commence.
Tourism Observer
From June 13, the national airline will commence flights to six cities across Europe and Eurasia from four airports in the kingdom. While services will not start until June, booking is open now for any passengers wanting to plan ahead.
From Riyadh, two new direct flights to Georgia mean passengers can easily explore the Caucasus country.
The Black Sea resort and port city of Batumi is reachable in just three-and-a-half hours, while the capital of Tbilisi is only three hours and 45 minutes away.
Three new direct flights per week from Riyadh will be added servicing the Austrian city of Vienna, known for its beauty and architecture and reachable in less than six hours.
Azerbaijan’s Baku, Turkey’s Trabzon and Bosnia and Herzegovina’s Sarajevo will also be reachable direct from Riyadh King Khalid International Airport.
In Jeddah, new summer destinations from Flynas include Vienna, Baku and Sarajevo and from Dammam, travellers will be able to fly direct to Tbilisi and Baku.
From the smaller Prince Nayer bin Abdulaziz International Airport, formerly Qassim international Airport, new direct routes to Trabzon and Baku will commence.
Tourism Observer
Tuesday, 24 April 2018
SAUDI ARABIA: Flynas To Buy Wide body Jets, Expand To Far East, West And Africa
Saudi Arabian low-cost carrier Flynas plans to operate wide-body aircraft for the first time in its 10-year history as part of a network expansion strategy that could see the airline service long-haul destinations such as Kuala Lumpur, Jakarta, Europe and Africa, its group chief executive said.
The airline is to commence talks with plane manufacturers Boeing and Airbus within the next two months with a view to placing a sizeable order for either Boeing 777s or Airbus A330s, plus Airbus’ long-range A321-ER neo, Bander Almohanna told The National on Monday.
We are starting now to study long-range A321-ER neos and wide-body jets, we’ll either go with A330 or B777, Mr Almohanna said.
We will launch in the next couple of months a campaign for wide-body jets, targeting destinations that cannot be reached by the existing equipment or fleet.
So this would be mainly the Far East – Jakarta, Kuala Lumpur –the far West, and Africa.
If a deal is reached, it is expected to be for a similar number of aircraft as Flynas’ order placed at the end of 2016 for 120 A320neos, which is due for delivery between the fourth quarter of 2018 and 2026 and intended to replace its outdated fleet of 30 aircraft, predominantly A320s.
We always think big, Mr Almohanna said at the ATM travel conference in Dubai.
Operating wide-body aircraft would be a wholly new strategy for the low-cost carrier as it seeks to grow its network in line with the kingdom’s plans to develop its nascent tourism sector.
The market size of Saudi Arabia is more than the airline so we are not competing with the national carrier Saudia, we are complementing it by trying to reach markets not served well by any Saudi airline, and to get people to come direct instead of through connecting traffic, Mr Almohanna said.
The discussions with Airbus and Boeing is a new project, he said, but our whole strategy is to get aligned with Vision 2030, which sets a target to attract 15 million pilgrims by 2020, and 30 million by 2030.
Those pilgrims will not be able to come in a convenient way without having an airline like Flynas pushing a strategy, frankly, to have wide-body aircraft and long-range 777-ER Max or the A321neo.
Pilgrims are only one segment of Flynas’ target market, he said.
Boeing’s under-development mid-size jet is another option.
Flynas, which is partly owned by Prince Alwaleed bin Talal’s Kingdom Holding, forecasts 10 per cent earnings growth this year after a flat 2016/17 due to sluggish conditions in the regional economy and the wider aviation industry, according to Mr Almohanna.
He said the market is starting to pick up.
The airline is targeting an increase in passenger numbers to 7.5 million in 2018 from 6.4 million in 2017, helped by an anticipated 5 per cent rise in Umrah and Haj pilgrims to the kingdom this year.
This summer it will launch five new destinations – Tbilisi in Georgia, Baku in Azebaijan, Vienna in Austria, Athens in Greece and Trabzon in Turkey. Flights will commence for sale this week.
To facilitate the network expansion, the carrier is in discussions with Airbus to fast-track a portion of its A320neo order, Mr Almohanna said.
He plans to add five new aircraft to Flynas’ fleet this year, including two A320s and three Boeing 737s.
We are negotiating with Airbus to advance more than what the slot has given to us, he said. “
We are also in talks with other lessors to maybe swap their slot with ours to accelerate the planned replacement and support our growth strategy.
Mr Almohanna declined to comment on the planned initial public offering of around 30 per cent of the company, reportedly targeted for early 2019.
The plans are still on the table, he said. Flynas was reported in February to have appointed Citigroup to advise on a potential IPO, alongside Morgan Stanley and NCB Capital.
Tourism Observer
The airline is to commence talks with plane manufacturers Boeing and Airbus within the next two months with a view to placing a sizeable order for either Boeing 777s or Airbus A330s, plus Airbus’ long-range A321-ER neo, Bander Almohanna told The National on Monday.
We are starting now to study long-range A321-ER neos and wide-body jets, we’ll either go with A330 or B777, Mr Almohanna said.
We will launch in the next couple of months a campaign for wide-body jets, targeting destinations that cannot be reached by the existing equipment or fleet.
So this would be mainly the Far East – Jakarta, Kuala Lumpur –the far West, and Africa.
If a deal is reached, it is expected to be for a similar number of aircraft as Flynas’ order placed at the end of 2016 for 120 A320neos, which is due for delivery between the fourth quarter of 2018 and 2026 and intended to replace its outdated fleet of 30 aircraft, predominantly A320s.
We always think big, Mr Almohanna said at the ATM travel conference in Dubai.
Operating wide-body aircraft would be a wholly new strategy for the low-cost carrier as it seeks to grow its network in line with the kingdom’s plans to develop its nascent tourism sector.
The market size of Saudi Arabia is more than the airline so we are not competing with the national carrier Saudia, we are complementing it by trying to reach markets not served well by any Saudi airline, and to get people to come direct instead of through connecting traffic, Mr Almohanna said.
The discussions with Airbus and Boeing is a new project, he said, but our whole strategy is to get aligned with Vision 2030, which sets a target to attract 15 million pilgrims by 2020, and 30 million by 2030.
Those pilgrims will not be able to come in a convenient way without having an airline like Flynas pushing a strategy, frankly, to have wide-body aircraft and long-range 777-ER Max or the A321neo.
Pilgrims are only one segment of Flynas’ target market, he said.
Boeing’s under-development mid-size jet is another option.
Flynas, which is partly owned by Prince Alwaleed bin Talal’s Kingdom Holding, forecasts 10 per cent earnings growth this year after a flat 2016/17 due to sluggish conditions in the regional economy and the wider aviation industry, according to Mr Almohanna.
He said the market is starting to pick up.
The airline is targeting an increase in passenger numbers to 7.5 million in 2018 from 6.4 million in 2017, helped by an anticipated 5 per cent rise in Umrah and Haj pilgrims to the kingdom this year.
This summer it will launch five new destinations – Tbilisi in Georgia, Baku in Azebaijan, Vienna in Austria, Athens in Greece and Trabzon in Turkey. Flights will commence for sale this week.
To facilitate the network expansion, the carrier is in discussions with Airbus to fast-track a portion of its A320neo order, Mr Almohanna said.
He plans to add five new aircraft to Flynas’ fleet this year, including two A320s and three Boeing 737s.
We are negotiating with Airbus to advance more than what the slot has given to us, he said. “
We are also in talks with other lessors to maybe swap their slot with ours to accelerate the planned replacement and support our growth strategy.
Mr Almohanna declined to comment on the planned initial public offering of around 30 per cent of the company, reportedly targeted for early 2019.
The plans are still on the table, he said. Flynas was reported in February to have appointed Citigroup to advise on a potential IPO, alongside Morgan Stanley and NCB Capital.
Tourism Observer
SAUDI ARABIA: Flynas Signs $6.3bn Maintenance And Service Deal For New Fleet
Saudi low-cost airline flynas has signed a $6.3 billion deal with DFM International to acquire new engines for its fleet.
Flynas’ agreement includes the acquiring of LEAP-1A engines to power the incoming fleet of 80 A320-neo aircraft ordered by flynas, scheduled to be delivered from 2018 onwards.
The agreement also comprises an associated long-term maintenance and service agreement for the A320 new aircraft fleet with CFM.
Ayed Al Jeaid, chairman of Flynas Company said It is highly gratifying to come into partnership with CFM in efforts to continue our strategic development.
CFM’s proven success and performance over the years, comes as an essential component of our agreement with Airbus to purchase 80 confirmed order and 40 optional of A320-neo aircraft.
Our ambitious vision for growth and expansion will be supported by this partnership and further enable our plans to push boundaries as the leading low cost carrier in the Middle East and the region.
Bander Al Mohanna, CEO, Flynas Company added, Equipping our incoming A320neo fleet with LEAP-1A26 engines offers incomparable efficiency and a low-cost structure for operating in environments with high temperatures in the region.
This partnership not only gives us the confidence in continuing to provide the best on time services to our guests but also enables us to strengthen our offerings domestically and internationally.
It is an honour to extend our partnership with Flynas by providing the LEAP-1A engine, said Philippe Couteaux, executive vice president of sales and marketing for Safran/CFM International.
We look forward to bringing them all the benefits of the advanced LEAP engine to its fleet as part of the airline’s continuous growth in the Middle East.
Flynas’ rapid growth saw it carry over 6.4 million passengers in 2017, a 17 percent annual increase since 2010.
Established in 2007, flynas operates over 1,100 flights weekly to 17 domestic destinations and 53 international destinations.
flynas formerly Nas Air, is a domestic and international low-cost airline based in Saudi Arabia, the country's first budget airline. The company's head office is located Riyadh.
Saudi Arabian Airlines was the only airline in the country until 2006, when budget carriers Nas Air and Sama Airlines got their licenses from the government.
Nas Air was founded in 2007. Operations started in February that year. In late 2007, Nas Air firmed up an order for the acquisition of 20 aircraft of the Airbus A320 family.
The company changed its name from Nasair to Flynas in November 2013.
The CEO position is held by Paul Byrne. Byrne was appointed in November 2014 and succeeded Raja Azmi, who had replaced Francois Boutellier in June 2013.
As of October 2014, Flynas was owned in its majority by National Airline Services Holding (63%); the balance was held by Kingdom Holding.
Assiut and Sharm el Sheikh in Egypt became served by the carrier for the first time in 2009, with flights to the latter initially operated on a seasonal basis.
In 2011, the airline started services to three cities in Turkey: Adana, Antakya and Istanbul.
Same year, Lahore in Pakistan became the second city served in the country, after Karachi. In February 2013, flights to Yanbu from Dammam were launched.
Also that month, the airline started flying from Dammam to Khartoum, with the Sudanese capital becoming the first international destination ever to be linked to the Saudi city.
In February 2014, Flynas introduced its Global Flight Routes program, aimed at offering affordable rates to passengers for flights between Jeddah and points in Africa, Asia and Europe, and at carrying religious tourists to Saudi Arabia.
In March 2014, Flynas incorporated the first of three Airbus A330s the carrier would lease from Portugal's Hi Fly.
These aircraft, including both the –200 and the –300 models, would be used to start long-haul services. The airline also planned to add the Airbus A350 to its fleet.
Flynas became the first low-cost carrier to serve the Saudi Arabia-UK market when it launched the Jeddah–London Gatwick service, its first European long-haul route, in April 2014.
Medium-haul routes to Karachi and Lahore were also planned, along with long-haul services to Jakarta, Kuala Lumpur, Casablanca, Manchester and Islamabad.
Flights to Iran were also due to commence by the same time. Manchester became the airline's second destination in the United Kingdom on 7 May 2014.
Cairo was made part of the route network in June 2014, making the Egyptian capital the carrier's seventh destination in the country.
The London-Gatwick–Riyadh sector would also be served from 27 July the same year.
A month later, it was informed that services to Manchester would be discontinued starting August 2014, just after three months of operations.
That month, the Indian market was expected to be served for the first time with flights to Hyderabad, followed by Calicut in September 2014.
Plans were also to serve France next as well as China, Philippines, Nigeria and South Africa later on.
Flynas also expected to serve the US market in 2015. Manchester was removed from the carrier's list of destinations in early August 2014.
In October 2014, Al-Qassim was incorporated to the route network. Also that month, the airline announced the cancellation of most of its long- and mid-haul services owing to poor performance.
At April 2015, Flynas' three top domestic routes in terms of available seats were Jeddah (JED)–Riyadh (RUH), Dammam (DMM)–RUH and JED–DMM. The carrier also performs Hajj services.
A codeshare agreement with Etihad that dates back to 2012 sees Flynas placing its code on a number of flights operated by Etihad that radiate from Abu Dhabi.
In May 2016 the airline signed a codeshare agreement with Pegasus Airlines.
Flynas fleet consists of the following aircraft:
- Airbus A319-100 - 02
- Airbus A320-200 - 29
- Total - 31
Orders
- Airbus A320neo - 80
Tourism Observer
Flynas’ agreement includes the acquiring of LEAP-1A engines to power the incoming fleet of 80 A320-neo aircraft ordered by flynas, scheduled to be delivered from 2018 onwards.
The agreement also comprises an associated long-term maintenance and service agreement for the A320 new aircraft fleet with CFM.
Ayed Al Jeaid, chairman of Flynas Company said It is highly gratifying to come into partnership with CFM in efforts to continue our strategic development.
CFM’s proven success and performance over the years, comes as an essential component of our agreement with Airbus to purchase 80 confirmed order and 40 optional of A320-neo aircraft.
Our ambitious vision for growth and expansion will be supported by this partnership and further enable our plans to push boundaries as the leading low cost carrier in the Middle East and the region.
Bander Al Mohanna, CEO, Flynas Company added, Equipping our incoming A320neo fleet with LEAP-1A26 engines offers incomparable efficiency and a low-cost structure for operating in environments with high temperatures in the region.
This partnership not only gives us the confidence in continuing to provide the best on time services to our guests but also enables us to strengthen our offerings domestically and internationally.
It is an honour to extend our partnership with Flynas by providing the LEAP-1A engine, said Philippe Couteaux, executive vice president of sales and marketing for Safran/CFM International.
We look forward to bringing them all the benefits of the advanced LEAP engine to its fleet as part of the airline’s continuous growth in the Middle East.
Flynas’ rapid growth saw it carry over 6.4 million passengers in 2017, a 17 percent annual increase since 2010.
Established in 2007, flynas operates over 1,100 flights weekly to 17 domestic destinations and 53 international destinations.
flynas formerly Nas Air, is a domestic and international low-cost airline based in Saudi Arabia, the country's first budget airline. The company's head office is located Riyadh.
Saudi Arabian Airlines was the only airline in the country until 2006, when budget carriers Nas Air and Sama Airlines got their licenses from the government.
Nas Air was founded in 2007. Operations started in February that year. In late 2007, Nas Air firmed up an order for the acquisition of 20 aircraft of the Airbus A320 family.
The company changed its name from Nasair to Flynas in November 2013.
The CEO position is held by Paul Byrne. Byrne was appointed in November 2014 and succeeded Raja Azmi, who had replaced Francois Boutellier in June 2013.
As of October 2014, Flynas was owned in its majority by National Airline Services Holding (63%); the balance was held by Kingdom Holding.
Assiut and Sharm el Sheikh in Egypt became served by the carrier for the first time in 2009, with flights to the latter initially operated on a seasonal basis.
In 2011, the airline started services to three cities in Turkey: Adana, Antakya and Istanbul.
Same year, Lahore in Pakistan became the second city served in the country, after Karachi. In February 2013, flights to Yanbu from Dammam were launched.
Also that month, the airline started flying from Dammam to Khartoum, with the Sudanese capital becoming the first international destination ever to be linked to the Saudi city.
In February 2014, Flynas introduced its Global Flight Routes program, aimed at offering affordable rates to passengers for flights between Jeddah and points in Africa, Asia and Europe, and at carrying religious tourists to Saudi Arabia.
In March 2014, Flynas incorporated the first of three Airbus A330s the carrier would lease from Portugal's Hi Fly.
These aircraft, including both the –200 and the –300 models, would be used to start long-haul services. The airline also planned to add the Airbus A350 to its fleet.
Flynas became the first low-cost carrier to serve the Saudi Arabia-UK market when it launched the Jeddah–London Gatwick service, its first European long-haul route, in April 2014.
Medium-haul routes to Karachi and Lahore were also planned, along with long-haul services to Jakarta, Kuala Lumpur, Casablanca, Manchester and Islamabad.
Flights to Iran were also due to commence by the same time. Manchester became the airline's second destination in the United Kingdom on 7 May 2014.
Cairo was made part of the route network in June 2014, making the Egyptian capital the carrier's seventh destination in the country.
The London-Gatwick–Riyadh sector would also be served from 27 July the same year.
A month later, it was informed that services to Manchester would be discontinued starting August 2014, just after three months of operations.
That month, the Indian market was expected to be served for the first time with flights to Hyderabad, followed by Calicut in September 2014.
Plans were also to serve France next as well as China, Philippines, Nigeria and South Africa later on.
Flynas also expected to serve the US market in 2015. Manchester was removed from the carrier's list of destinations in early August 2014.
In October 2014, Al-Qassim was incorporated to the route network. Also that month, the airline announced the cancellation of most of its long- and mid-haul services owing to poor performance.
At April 2015, Flynas' three top domestic routes in terms of available seats were Jeddah (JED)–Riyadh (RUH), Dammam (DMM)–RUH and JED–DMM. The carrier also performs Hajj services.
A codeshare agreement with Etihad that dates back to 2012 sees Flynas placing its code on a number of flights operated by Etihad that radiate from Abu Dhabi.
In May 2016 the airline signed a codeshare agreement with Pegasus Airlines.
Flynas fleet consists of the following aircraft:
- Airbus A319-100 - 02
- Airbus A320-200 - 29
- Total - 31
Orders
- Airbus A320neo - 80
Tourism Observer
Saturday, 15 April 2017
NIGERIA: FlyNas To Fly Nigerian Pilgrims For Hajj
Nigeria risks losing $68million to the Kingdom of Saudi Arabia during the forthcoming 2017 hajj, following the allocation of 45 per cent of the total pilgrims to a Saudi Arabia-based airline, FlyNas, by National Hajj Commission (NAHCON).
Already, local stakeholders in the sector have raised eyebrow as they described the move as a “rip off that has the capacity to stunt growth in Nigeria airline industry.”
A source said that already “Airline business is mega box conducted in dollars and 45 per cent simply translated to a big minus to Nigeria because the country will lose so much money.”
In total, 95,000 Nigerian would be performing the 2017 hajj that attracted the lowest fee of N1,500,000 covering flight ticket, royalty, accommodation, intra and inter city travels and host of others.
Investigation revealed that NAHCON’s decision to engaged the services a Saudi Arabia-based airline Fly Nas for 2017 hajj was a lopsided policy that has further worsen unfavorable trade balance with the Saudis.
Commenting further on the implications of such policy, the aviation source said: “Instead of encouraging our indigenous airliners, NAHCON has ended up sending them away from the business circle in favour of a foreign airline. It is high time for the federal government to come to the aide of indigenous airliners before it is too late.”
But NAHCON Chief Media Relation Officer, Alhaji Adamu Hassan Abdullahi, in a telephone chat, confirmed the allocation of 45 per cent of total number of Nigerian pilgrims to Flynas, saying “it was a policy introduced by Saudi authority.”
He dismissed the anticipatory loss as ruse, stressing that “Nigeria is not going to lose $68million as claimed by the service providers.”
Similarly, there had been groundswell of protest across the 36 states pilgrims welfare boards over what they called “unilateral decision of NAHCON to impose carrier on them contrary to what was obtained in the past.
It was also learnt that in recent meeting held at Saudi Arabia by top Nigerian pilgrimage officials, they agreed among other things to fought and exert their independence and block overbearing influence of the regulatory agency.
the source said the process was still one but from the look of things, NAHCON would not do justice to the state pilgrims’ boards, as according to him if care is not taken, the commission will just allocate airlines to states without consulting the states as it does last year.
When contacted, the National Hajj Commission Chief Media Relation Officer, Alhaji Adamu Hassan Abdullahi in a telephone chat noted that the Hajj regulatory agency was not blame for the policy.
“the Saudi Authority imposed Flynas on countries participating in hajj operation, and according to the policy each country must allocate 50 per cent of its total pilgrims to Flynas.”
Speaking further, “NAHCON chairman insisted that it should not be 50/50 and because of the good relationship between Nigeria and Saudi, we are allowed to allocate 45 per cent instead of 50 per cent.”
He said “unlike Nigeria, Niger Republic and Senegal had to allocate all their pilgrims to Flynas because Kabo air that usually operates in the two countries was denied a chance for being a foreign airline, and to be honest with you, Nigeria is not going to lose $68million as claimed by the service providers” .
Consequently, NAHCON image Maker advised the service providers to blame Saudi Authorities and not the Hajj regulatory agency.
He said instead, NAHCON is fighting for Nigerian businessmen, as according to him the commission is in discussion with the Saudi Chamber of Commerce to see how Nigerian businessmen can import goods to Saudi during hajj.
Already, local stakeholders in the sector have raised eyebrow as they described the move as a “rip off that has the capacity to stunt growth in Nigeria airline industry.”
A source said that already “Airline business is mega box conducted in dollars and 45 per cent simply translated to a big minus to Nigeria because the country will lose so much money.”
In total, 95,000 Nigerian would be performing the 2017 hajj that attracted the lowest fee of N1,500,000 covering flight ticket, royalty, accommodation, intra and inter city travels and host of others.
Investigation revealed that NAHCON’s decision to engaged the services a Saudi Arabia-based airline Fly Nas for 2017 hajj was a lopsided policy that has further worsen unfavorable trade balance with the Saudis.
Commenting further on the implications of such policy, the aviation source said: “Instead of encouraging our indigenous airliners, NAHCON has ended up sending them away from the business circle in favour of a foreign airline. It is high time for the federal government to come to the aide of indigenous airliners before it is too late.”
But NAHCON Chief Media Relation Officer, Alhaji Adamu Hassan Abdullahi, in a telephone chat, confirmed the allocation of 45 per cent of total number of Nigerian pilgrims to Flynas, saying “it was a policy introduced by Saudi authority.”
He dismissed the anticipatory loss as ruse, stressing that “Nigeria is not going to lose $68million as claimed by the service providers.”
Similarly, there had been groundswell of protest across the 36 states pilgrims welfare boards over what they called “unilateral decision of NAHCON to impose carrier on them contrary to what was obtained in the past.
It was also learnt that in recent meeting held at Saudi Arabia by top Nigerian pilgrimage officials, they agreed among other things to fought and exert their independence and block overbearing influence of the regulatory agency.
the source said the process was still one but from the look of things, NAHCON would not do justice to the state pilgrims’ boards, as according to him if care is not taken, the commission will just allocate airlines to states without consulting the states as it does last year.
When contacted, the National Hajj Commission Chief Media Relation Officer, Alhaji Adamu Hassan Abdullahi in a telephone chat noted that the Hajj regulatory agency was not blame for the policy.
“the Saudi Authority imposed Flynas on countries participating in hajj operation, and according to the policy each country must allocate 50 per cent of its total pilgrims to Flynas.”
Speaking further, “NAHCON chairman insisted that it should not be 50/50 and because of the good relationship between Nigeria and Saudi, we are allowed to allocate 45 per cent instead of 50 per cent.”
He said “unlike Nigeria, Niger Republic and Senegal had to allocate all their pilgrims to Flynas because Kabo air that usually operates in the two countries was denied a chance for being a foreign airline, and to be honest with you, Nigeria is not going to lose $68million as claimed by the service providers” .
Consequently, NAHCON image Maker advised the service providers to blame Saudi Authorities and not the Hajj regulatory agency.
He said instead, NAHCON is fighting for Nigerian businessmen, as according to him the commission is in discussion with the Saudi Chamber of Commerce to see how Nigerian businessmen can import goods to Saudi during hajj.
Tuesday, 6 December 2016
MALAYSIA: AirAsia has been named the World’s Leading Low-Cost Airline
AirAsia has been named the World’s Leading Low-Cost Airline for the fourth year in a row and its maiden title as the World's Leading Inflight Service at the 23rd World Travel Awards (WTA) Grand Final held in Male, Maldives.
Asia's largest low-cost carrier beat contenders from five continents to secure the award, including Ryanair, easyJet, Jetstar Airways, Southwest Airlines, JetBlue Airways, Norwegian, Kulula, Mango, fastjet, flydubai, Air Arabia, flynas and West Air. "What a thrill to win World’s Leading Low-Cost Airline for the fourth straight year.
It's a great honour to round out what has been a great year for AirAsia, not just financially but in terms of recognition from the industry," Group Chief Executive Officer, Tan Sri Tony Fernandes said today. AirAsia also won the World's Leading Inflight Service title for the first time ever, beating full-service carriers Etihad Airways, Japan Airlines, Singapore Airlines, Thai Airways, Qantas Airways, Lufthansa, American Airlines and Air Canada.
The win builds on AirAsia's success earlier this year when it secured Asia's Leading Inflight Service award from WTA for the first time. "I’m also super proud of our first World’s Leading Inflight Service award. I've always said we have amazing crew and amazing inflight products, and we've proven it by beating not one, not two, not three, but eight full-service carriers for the prize," he said in a statement.
He said there are more to come for AirAsia as the airline is always working on more innovations, and not just for inflight. "Right now, we are exploring ways to make the airport experience better. One thing we're looking at is fast-tracking guests who share their travel profile with immigration authorities.
We expect to run the trial at selected airports in Asean in the not-too-distant future, so keep an eye out for it," he said. The WTA serves to acknowledge, reward and celebrate excellence across all sectors of the travel and tourism industry, as chosen by thousands of travel professionals and high-end tourism consumers.
Airlines are judged on customer satisfaction and service quality, overall business performance, product innovation, staff relations and development, corporate social responsibility and contribution to local community, commitment to sustainable policies and fulfillment of long-term corporate vision. AirAsia is Asia's leading low-cost carrier, with an extensive network of more than 120 destinations in Asia, Australia and New Zealand, the Middle East and Africa.
It is also the only airline to fly direct to all 10 Asean countries, including some 60 unique routes in the region. AirAsia was also named World's Best Low-Cost Airline for the eighth year in a row at the 2016 Skytrax World Airline Awards in July. --Bernama
Asia's largest low-cost carrier beat contenders from five continents to secure the award, including Ryanair, easyJet, Jetstar Airways, Southwest Airlines, JetBlue Airways, Norwegian, Kulula, Mango, fastjet, flydubai, Air Arabia, flynas and West Air. "What a thrill to win World’s Leading Low-Cost Airline for the fourth straight year.
It's a great honour to round out what has been a great year for AirAsia, not just financially but in terms of recognition from the industry," Group Chief Executive Officer, Tan Sri Tony Fernandes said today. AirAsia also won the World's Leading Inflight Service title for the first time ever, beating full-service carriers Etihad Airways, Japan Airlines, Singapore Airlines, Thai Airways, Qantas Airways, Lufthansa, American Airlines and Air Canada.
The win builds on AirAsia's success earlier this year when it secured Asia's Leading Inflight Service award from WTA for the first time. "I’m also super proud of our first World’s Leading Inflight Service award. I've always said we have amazing crew and amazing inflight products, and we've proven it by beating not one, not two, not three, but eight full-service carriers for the prize," he said in a statement.
He said there are more to come for AirAsia as the airline is always working on more innovations, and not just for inflight. "Right now, we are exploring ways to make the airport experience better. One thing we're looking at is fast-tracking guests who share their travel profile with immigration authorities.
We expect to run the trial at selected airports in Asean in the not-too-distant future, so keep an eye out for it," he said. The WTA serves to acknowledge, reward and celebrate excellence across all sectors of the travel and tourism industry, as chosen by thousands of travel professionals and high-end tourism consumers.
Airlines are judged on customer satisfaction and service quality, overall business performance, product innovation, staff relations and development, corporate social responsibility and contribution to local community, commitment to sustainable policies and fulfillment of long-term corporate vision. AirAsia is Asia's leading low-cost carrier, with an extensive network of more than 120 destinations in Asia, Australia and New Zealand, the Middle East and Africa.
It is also the only airline to fly direct to all 10 Asean countries, including some 60 unique routes in the region. AirAsia was also named World's Best Low-Cost Airline for the eighth year in a row at the 2016 Skytrax World Airline Awards in July. --Bernama
Tuesday, 1 November 2016
SAUDI ARABIA: Nesma Airlines Starts Flights To Northern Saudia
Saudi-Egyptian carrier Nesma Airlines has begun services from Hail, in the north of Saudi Arabia, as domestic competition in the country intensifies.
The desert kingdom’s regulator, the General Authority of Civil Aviation (GACA), has overseen the issue of licenses to several new airlines, including Nesma, in the past year. For years, traffic in the country has been largely monopolized by national carrier Saudia, with around 10% going to hybrid carrier flynas.
Foreign carriers have also noticeably increased services to Saudi Arabia in an attempt to win a part of the rapidly growing air travel market in the most populous of the Gulf states.
Nesma intends to use Hail as a hub to a network of eight smaller northern Saudi cities: Turaif, Qaisumah, Arar, Rafha, Aljouf, Tabuk, Qaseem and Madinah under the local equivalent of essential air service (EAS) contracts. Nesma also plans to start services to the Saudi capital, Riyadh, the country’s main commercial center Jeddah and the oil-rich Eastern province city of Dammam.
Details of services to the last three cities will be announced in November.
Commenting on the start of Nesma’s services, GACA DG-northern airports Hamad Alkhemaish said the flights marked the start of a national project for hub airports. ATW understands flynas has been given authority to launch a similar series of EAS routes to smaller cities, based on a hub at Abha, in the far southwest of the country.
Nesma Airlines CEO Faisal Alturki said the airline would build up a fleet of six ATR 72-600 turboprops over the next three years. It also intended to acquire single examples of the Airbus A320 and A319 for services from Hail to Riyadh, Jeddah and Dammam. Two larger A321s are also planned to operate services between the latter three cities.
Partly because of the start of Nesma services, GACA is looking to expand Hail airport. A study is underway that will look at the existing terminal and expansion of the apron area to allow for more aircraft to be parked.
The desert kingdom’s regulator, the General Authority of Civil Aviation (GACA), has overseen the issue of licenses to several new airlines, including Nesma, in the past year. For years, traffic in the country has been largely monopolized by national carrier Saudia, with around 10% going to hybrid carrier flynas.
Foreign carriers have also noticeably increased services to Saudi Arabia in an attempt to win a part of the rapidly growing air travel market in the most populous of the Gulf states.
Nesma intends to use Hail as a hub to a network of eight smaller northern Saudi cities: Turaif, Qaisumah, Arar, Rafha, Aljouf, Tabuk, Qaseem and Madinah under the local equivalent of essential air service (EAS) contracts. Nesma also plans to start services to the Saudi capital, Riyadh, the country’s main commercial center Jeddah and the oil-rich Eastern province city of Dammam.
Details of services to the last three cities will be announced in November.
Commenting on the start of Nesma’s services, GACA DG-northern airports Hamad Alkhemaish said the flights marked the start of a national project for hub airports. ATW understands flynas has been given authority to launch a similar series of EAS routes to smaller cities, based on a hub at Abha, in the far southwest of the country.
Nesma Airlines CEO Faisal Alturki said the airline would build up a fleet of six ATR 72-600 turboprops over the next three years. It also intended to acquire single examples of the Airbus A320 and A319 for services from Hail to Riyadh, Jeddah and Dammam. Two larger A321s are also planned to operate services between the latter three cities.
Partly because of the start of Nesma services, GACA is looking to expand Hail airport. A study is underway that will look at the existing terminal and expansion of the apron area to allow for more aircraft to be parked.
Tuesday, 10 May 2016
OMAN: New Airline To Be based In Salalah
Oman’s airport operator wants new airline Salam Air to set up its base at Salalah International Airport, a move it believes would increase the profile of the country’s second largest airport.
A new 2 million-passenger capacity terminal opened at Salalah International in June replacing the old 500,000-passenger terminal. Meanwhile, Oman awarded a licence to state-owned Muscat National Development and Investment Company (ASAAS) in January to establish budget carrier Salam Air, the country’s second airline.
“We are pushing them to go to Salalah but I think they are pushing back to stay in Muscat,” Oman Airports Management Company chief executive Aimen Ahmad Sultan Al Hosni said at an exhibition in Dubai on Monday.
The budget airline will start operations by early 2017 as per an agreement with Oman’s aviation authority and plans to fly medium and short-haul flights, according to Salem Awad Saeed Al Yafaey, Salalah International general manager. It will operate the narrow body Boeing 737 aircraft, Al Hosni said.
Oman is investing in five airports across the country, including building a new passenger terminal at main airport Muscat International that is facing further delays.
“We are targeting 2017 and inshallah we can deliver,” Al Hosni said.
Oman said in January the new terminal would open by the end of 2016, around a year behind its last target opening date. It was originally set to be completed in 2014 but issues with illegal workers and technical difficulties have contributed to delays.
Al Hosni declined to say when in 2017 the terminal could open, saying it is up to the Ministry of Transport to “set the timing.”
Salalah, a popular regional holiday destination, handled 1 million passengers between January 1 and December 17, up from 840,000 in 2014, Al Yafaey said, adding that Oman Airports has approached Bahrain’s Gulf Air and Saudi Arabia’s budget carrier flynas to fly to the airport.
“I hope they Salam Air take the base in Salalah because that definitely will add value to the airport,” Al Yafaey said.
Oman Airports will issue a request for proposal (RFP) by the end of the year to establish aircraft maintenance services at Salalah International, he added.
Construction on terminal buildings for new airports in Sohar, in the country’s north, and Ras Al Hadd in the country’s east, will start this year and in late 2017, respectively, Al Hosni said, adding that Air Asia’s Thailand joint-venture Thai Air Asia will start flights from Bangkok to Muscat in late July or early June.
A new 2 million-passenger capacity terminal opened at Salalah International in June replacing the old 500,000-passenger terminal. Meanwhile, Oman awarded a licence to state-owned Muscat National Development and Investment Company (ASAAS) in January to establish budget carrier Salam Air, the country’s second airline.
“We are pushing them to go to Salalah but I think they are pushing back to stay in Muscat,” Oman Airports Management Company chief executive Aimen Ahmad Sultan Al Hosni said at an exhibition in Dubai on Monday.
The budget airline will start operations by early 2017 as per an agreement with Oman’s aviation authority and plans to fly medium and short-haul flights, according to Salem Awad Saeed Al Yafaey, Salalah International general manager. It will operate the narrow body Boeing 737 aircraft, Al Hosni said.
Oman is investing in five airports across the country, including building a new passenger terminal at main airport Muscat International that is facing further delays.
“We are targeting 2017 and inshallah we can deliver,” Al Hosni said.
Oman said in January the new terminal would open by the end of 2016, around a year behind its last target opening date. It was originally set to be completed in 2014 but issues with illegal workers and technical difficulties have contributed to delays.
Al Hosni declined to say when in 2017 the terminal could open, saying it is up to the Ministry of Transport to “set the timing.”
Salalah, a popular regional holiday destination, handled 1 million passengers between January 1 and December 17, up from 840,000 in 2014, Al Yafaey said, adding that Oman Airports has approached Bahrain’s Gulf Air and Saudi Arabia’s budget carrier flynas to fly to the airport.
“I hope they Salam Air take the base in Salalah because that definitely will add value to the airport,” Al Yafaey said.
Oman Airports will issue a request for proposal (RFP) by the end of the year to establish aircraft maintenance services at Salalah International, he added.
Construction on terminal buildings for new airports in Sohar, in the country’s north, and Ras Al Hadd in the country’s east, will start this year and in late 2017, respectively, Al Hosni said, adding that Air Asia’s Thailand joint-venture Thai Air Asia will start flights from Bangkok to Muscat in late July or early June.
Wednesday, 27 April 2016
SAUDI ARABIA: Flynas rEJECTS Bombardier CS300 Among Possible 100-jet Order
Saudi Arabia's Flynas is in talks with Boeing and Airbus for a potential 100-jet order, chief executive Paul Byrne told a conference in Dubai on Wednesday, adding it had ruled out Bombardier from its considerations.
The kingdom's low-cost airline had requested proposals from the two rival aerospace giants to buy 60 planes with an option for 40 more, he said.
Byrne told reporters on the sidelines of an industry event in Dubai that it had decided against a potential order of Bombardier's CS300 aircraft because the plane had not been flown by a Middle Eastern carrier in the region's harsh climate.
"We just didn't want to be the launch customer for its C Series jet," he said without elaborating.
The kingdom's low-cost airline had requested proposals from the two rival aerospace giants to buy 60 planes with an option for 40 more, he said.
Byrne told reporters on the sidelines of an industry event in Dubai that it had decided against a potential order of Bombardier's CS300 aircraft because the plane had not been flown by a Middle Eastern carrier in the region's harsh climate.
"We just didn't want to be the launch customer for its C Series jet," he said without elaborating.
SAUDI ARABIA: Flynas Acquire Boeing vs Airbus By June
Saudi Arabia's Flynas will decide whether to order Boeing 737MAX or Airbus 320NEO planes before the start of the holy month of Ramadan in early June, the airline's chief executive said on Wednesday.
The low-cost carrier is considering an initial order of 60 planes, with the possibility of a further 40, as it seeks to replace its existing fleet and expand.
Flynas currently leases Airbus A320s so choosing Boeing would create complications such as retraining staff to work on the U.S. firm's aircraft, Paul Byrne told reporters on the sidelines of an industry event in Dubai.
"To switch ourselves, they (Boeing) have to do a phenomenal deal for us. That deal will have to cover that pain of transition, as it will be painful," said Byrne.
"We are open to that argument, we see them as a player and what we want is something that will see the long-term future of Flynas. That door is wide open to both."
Ultimately, with Flynas in the process of phasing out its leased Airbus fleet, whichever manufacturer it chooses will over time become the sole supplier.
Byrne was quoted earlier this year as saying the airline was also considering Bombardier for the potential order.
However, on Wednesday, he said it had decided against the Canadian manufacturer as its new CS300 aircraft had not been flown by a Middle Eastern carrier in the region's harsh climate.
Flynas, which turned a profit for the first time in 2015, was expected to do so again this year, Byrne said.
But while he welcomed increased competition in the regional airlines industry, he said the firm was feeling its impact.
"The optimism of 4-5 months ago has dampened down as we're seeing a lot of extra capacity in the market, a lot of state carriers flexing their muscles and dumping capacity with no real plan," said Byrne.
Competition is expected to increase as Saudi Arabian Airlines launches its new low-cost carrier, Flyadeal. Beginning services in mid-2017, it could have up to 50 planes flying by 2020, a senior executive said on Monday.
Flynas, 65-70 per cent of whose flights are domestic, also faces caps on fares imposed by the Saudi government. These would remain in place for at least the next five years, Byrne said, although the limits would be eased on an annual basis.
He argued these charges were unfair on Flynas as, unlike flag-carrier Saudi Arabian Airlines, it was not subsidised by the state.
The low-cost carrier is considering an initial order of 60 planes, with the possibility of a further 40, as it seeks to replace its existing fleet and expand.
Flynas currently leases Airbus A320s so choosing Boeing would create complications such as retraining staff to work on the U.S. firm's aircraft, Paul Byrne told reporters on the sidelines of an industry event in Dubai.
"To switch ourselves, they (Boeing) have to do a phenomenal deal for us. That deal will have to cover that pain of transition, as it will be painful," said Byrne.
"We are open to that argument, we see them as a player and what we want is something that will see the long-term future of Flynas. That door is wide open to both."
Ultimately, with Flynas in the process of phasing out its leased Airbus fleet, whichever manufacturer it chooses will over time become the sole supplier.
Byrne was quoted earlier this year as saying the airline was also considering Bombardier for the potential order.
However, on Wednesday, he said it had decided against the Canadian manufacturer as its new CS300 aircraft had not been flown by a Middle Eastern carrier in the region's harsh climate.
Flynas, which turned a profit for the first time in 2015, was expected to do so again this year, Byrne said.
But while he welcomed increased competition in the regional airlines industry, he said the firm was feeling its impact.
"The optimism of 4-5 months ago has dampened down as we're seeing a lot of extra capacity in the market, a lot of state carriers flexing their muscles and dumping capacity with no real plan," said Byrne.
Competition is expected to increase as Saudi Arabian Airlines launches its new low-cost carrier, Flyadeal. Beginning services in mid-2017, it could have up to 50 planes flying by 2020, a senior executive said on Monday.
Flynas, 65-70 per cent of whose flights are domestic, also faces caps on fares imposed by the Saudi government. These would remain in place for at least the next five years, Byrne said, although the limits would be eased on an annual basis.
He argued these charges were unfair on Flynas as, unlike flag-carrier Saudi Arabian Airlines, it was not subsidised by the state.
Friday, 12 February 2016
SAUDI ARABIA:Aviation Industry Very Competetive
SaudiGulf Airlines was doing more than just showing off its new Airbus A320 aircraft at the Bahrain International Airshow. The new carrier’s presence was the surest sign yet that Saudi Arabia’s domestic aviation market is finally about to take off.
The privately-owned airline and soon-to-be rival Al Maha Airways, a subsidiary of Qatar Airways, have been awaiting final approval and their operating licences from the kingdom’s regulator, General Authority of Civil Aviation (GACA) under a historic decision to open up the domestic market. After several delays, both airlines are expected to launch imminently.
“We’re in the final stages of obtaining our AOC,air operator’s certificate. We provided our main submission of the manuals and all of the systems last year,” SaudiGulf president Samer Majali said, on the sidelines of the airshow at Sakhir Airbase.
“Part of the delay was waiting for the airplane. We got it a month ago. At the beginning of February, we’ll start doing the emergency evacuation simulations and we’ll do the route-proving flights under the supervision of the civil aviation. Hopefully we will finish some time at the end of February-early March, and they will give us the licence.
“We will then commence some soft operations and hopefully we should start commercial operations anywhere between April and June.”
The former head of Bahrain’s state-backed Gulf Air and Royal Jordanian Airlines also blames some of the delay in launching the “boutique airline” — owned by Dammam-based Abdulhadi Al Qahtani Group — on the kingdom’s thorough regulations, which are being implemented for the first time.
“This is the first time that an airline has started up in Saudi Arabia and had to go through the entire certification process. We went through the whole certification and it’s a learning process for all of us,” Majali says.
Saudi Arabia has had one of the most highly regulated aviation markets in the world and limited foreign involvement. But rising population and affluence has led to a demand for more services. GACA expects annual passenger traffic to soar from 65 million in 2012 to 100 million by 2020, including almost a doubling of domestic traffic to 28.5 million.
It agreed in 2013 to allow two foreign airlines to operate domestic services only, while it is also part-way through privatizing state-owned Saudi Arabian Airlines (Saudia).
In another sign of the newcomers’ imminent launch, Al Maha Airways livery also has been added to four planes still being operated by Qatar Airways and staff for the new airline are being trained.
While the regulators have borne much of the blame for delays in the launch of the two new carriers, according to local media, Majali says his Eastern Province-based airline also had been waiting to make an impact by launching with its own aircraft.
“The biggest delay was due to us requiring new airplanes because normally a start-up carrier uses old airplanes by dry leasing and starts up within three to six months, and that’s it. We wanted to make an impression within Saudi with a very high quality carrier, full service, and the whole shebang.
We bought new airplanes from Airbus according to our specifications for the inside, and that normally takes 18 months. That was the major part of the delay,” Majali says.
Curiously, he adds that the carrier has only taken delivery of one of its four aircraft for licensing purposes, with the other three remaining at Airbus’ headquarters in Toulouse, France, “because of the weather”.
“This is the only one required for the AOC process. Once we finish the AOC process, the other three will come,” Majali says.
Initially, the airline plans to launch four routes: Dammam-Riyadh, Dammam-Jeddah, Riyadh-Jeddah, and Dammam-Dubai, with domestic flights offering first class and economy fares, and international flights providing business class and economy class service.
“Then in 2017, which will be our main expansion year, we will increase within Saudi Arabia itself and we will increase within the region,” he says.
The expansion will be fuelled by the 16 Bombardier CS300 jets on order, at a cost of $2bn with an option for a further ten, which Majali says will be delivered in 2017-18.
“It’s an airplane very similar to the A320, slightly smaller — probably ten seats less — but it’s a small, narrow body,” he says.
As a ‘boutique airline’, SaudiGulf will target the luxury market. While there are no plans to explore the business class-only configuration that has previously been unsuccessfully trialled in the kingdom, the model is definitely high specification, and will target the top end of the market.
However, Majali says he will be partly hamstrung by the kingdom’s fare cap.
“With the pricing, we are limited to an extent by the current fare cap and the modifications of the fare cap within Saudi Arabia, but obviously we have flexibility with first class and other things,” Majali says.
“But definitely the market in Saudi Arabia is opening up — you now have three airlines, and another one is coming up. Once you open up the market, there is no reason to have a fare cap any more. Hopefully, in the future, you will pay for the services that you get.”
Majali, who left Gulf Air in 2012, says starting the project from scratch allowed the carrier to order the aircraft to its own specifications and introduce the company ethos from the outset.
“Our advantage is that we’re started from the ground up, and so we can build it right from the start. There’s no excess baggage. Obviously a start-up also has lots of challenges but the upside is that as a start-up carrier we can build systems and procedures, employee attitudes and service right from the start,” he says.
Once the initial 20 aircraft are in operation, Majali says the airline will start thinking about expansion, including looking at a possible large, narrow body aircraft capable of serving longer-range markets.
“The plan in five years is to be a major player within the Saudi Arabian market domestically, and we expect to be a very strong regional player,” he says. “We’ll start thinking of expanding after that. But initially, with the 20 airplanes, we will doing Saudi Arabia domestic, we will be doing regional and a bit more beyond that — India, Pakistan, probably Turkey, Egypt, all destinations within a four or five-hour flying radius from Dammam.”
Al Maha Airways, which had also planned to commence operations in 2015 but was also held up by licensing issues, will initially operate routes to main cities in the kingdom, starting with flights between its hub in Riyadh and the west coast city of Jeddah, before moving to second-tier cities. The airline has already taken delivery of four A320, with plans to add another six by the time it starts operations.
According to reports, the carrier will add a further ten to 15 each year until it reaches a total 50 narrow and widebody aircraft.
When they are up and flying, both of the new airlines will face fierce competition from Saudia and Riyadh-based Flynas, the kingdom’s only low-cost airline, which is owned by National Airline Services Holding (63 percent) and HRH Prince Alwaleed Bin Talal Al Saud’s Kingdom Holding.
Flynas CEO Paul Byrne has helped turn around the airline and is expected to report its first ever profit since launching in 2007 when its latest figures are released within months.
“The advantage for me was that when I came to Flynas I went in as a consultant, so I could see from the outside what was working and what wasn’t. Long haul wasn’t. One of the things we were fantastic at was getting an A320 from point to point on time,” he says.
“You start with a strength like that and build upon it. It’s not rocket science, we know what we do well, we know what people want, and we improved pretty dramatically on what they didn’t want. It was costing us a lot of money in 2014, and we took that particular cost out of the system and we’ve increased our A320 flying.”
The airline has plans to expand from 26 Airbus aircraft and to replace its all-leased fleet with up to 100 new aircraft over the next five years.
Byrne, who entered the aviation industry with Ireland’s Aer Lingus and has worked all over the world, says 70 percent of Flynas’ flights are in the kingdom’s domestic market.
“There’s still plenty of room in there for more flying and that’s where we’re concentrating most of our effort,” he says.
Byrne admits that despite there being only two operators in the country, the Saudi market remains “very tough”.
“Look at how long it has taken for any competition to actually get in there. Before us, you had a low-cost carrier called Sama that didn’t survive the rigours of trying to set themselves up. Nasair the airline’s former name and Flynas as it is, just barely stayed through that whole set-up period, but now we’ve established ourselves it’s still tough to make money,” he says.
Flynas’ potential profitability also has been limited by the kingdom’s fare cap.
“We’re being restricted on what we can charge on a day-to-day basis on our flights. We don’t receive a subsidy on our fuel, the same way as Saudia. If you want to subsidise an airline and then fare-cap them, I’ve no problem with that, but we get fare-capped as well, and don’t receive a subsidy. I don’t know where this equation came from,” he says. “But within ten days of departure, I can increase my prices by up to 80 percent.
“That said, I think GACA are expanding their thinking. They are no longer the political wing of Saudia, so they’re starting to become more and more of a regulator. I think they’re recognising that the kingdom needs to be served better by efficient airlines. We’re one of them. We’re hoping to see more people come in because competition is good; it will be good for us.”
That seems to be the common thinking in Saudi aviation circles — that once more operators come into the market, the regulators will be forced to loosen up and create a more business-friendly attitude.
“There was a heavy hand in the past. It was there for protectionist reasons,” Byrne says. “That is changing, but these attitudes never change overnight, so even though the senior people are changing their thinking, and are focussing on the industry by breaking things up, it’s a big organisation and that has to filter down. It has had 70 years of doing something one way.”
So when SaudiGulf Airlines and Al Maha Airways eventually launch, it will represent the start of not only new services, but a new era in Saudi aviation.
Regeneration of Bahrain’s aviation sector
A generation ago, Bahrain was a key hub in the Middle East, attracting the likes of global logistics company DHL to open its regional base there. For various reasons, the island kingdom’s infrastructure and airline service fell behind its GCC neighbours. But both are being addressed, according to the kingdom’s Ministry of Transport and Telecommunications.
The country’s recent airshow was used to relaunch what has been described by many as a new era for aviation in Bahrain.
The modernisation of the airport, described by the minister as “one of the most important strategic projects for the Kingdom of Bahrain”, will see a $1.1bn new terminal built over the next three years, by which stage national carrier Gulf Air will have taken delivery of the first of its new Airbus A320/A321s and Boeing Dreamliner 787-9s.
While the airline has not yet decided how to deploy the 29 aircraft that make up a $7.6bn order, Acting CEO Maher Salman Al Musallam says the aircraft will enhance the carrier’s offering and create opportunities to expand through the acquisition of longer range aircraft.
Reclaiming home ground
Kuwait Airways is looking to reenergise its operations, with significant additions to its fleet expected in the coming years, including ten Boeing 777-300ERs and 25 Airbus aircraft.
The national carrier’s appearance at the recent Bahrain International Airshow was its first representation at such an event in a generation. Arriving with its new A330, it was a sign the carrier is finally getting its act together.
“In Kuwait, the opportunity that we clearly have and not fully exploited is the fact that we have one of the largest home markets in the area,” says Kuwait Airways chief commercial officer Philip Saunders, speaking at the Bahrain Airshow.
“The truth is that many of our natural customers have preferred to travel with Qatar Airways, or Air Arabia, or many other carriers in the region, but that’s already beginning to change, because we’re putting the right schedules in place; we’re putting our market first.
“We have announced major investments in our fleet and also in our products. From this November, when we receive our Boeing 777, our customers will be in for a surprise, because we will have suites in first class and lie-flat beds in business class, and wonderful product in economy. We’re excited and confident about the future.”
Saunders says Kuwait Airways aims to recover its position as the carrier of first choice in its home market, supported by sixth freedom traffic.
The privately-owned airline and soon-to-be rival Al Maha Airways, a subsidiary of Qatar Airways, have been awaiting final approval and their operating licences from the kingdom’s regulator, General Authority of Civil Aviation (GACA) under a historic decision to open up the domestic market. After several delays, both airlines are expected to launch imminently.
“We’re in the final stages of obtaining our AOC,air operator’s certificate. We provided our main submission of the manuals and all of the systems last year,” SaudiGulf president Samer Majali said, on the sidelines of the airshow at Sakhir Airbase.
“Part of the delay was waiting for the airplane. We got it a month ago. At the beginning of February, we’ll start doing the emergency evacuation simulations and we’ll do the route-proving flights under the supervision of the civil aviation. Hopefully we will finish some time at the end of February-early March, and they will give us the licence.
“We will then commence some soft operations and hopefully we should start commercial operations anywhere between April and June.”
The former head of Bahrain’s state-backed Gulf Air and Royal Jordanian Airlines also blames some of the delay in launching the “boutique airline” — owned by Dammam-based Abdulhadi Al Qahtani Group — on the kingdom’s thorough regulations, which are being implemented for the first time.
“This is the first time that an airline has started up in Saudi Arabia and had to go through the entire certification process. We went through the whole certification and it’s a learning process for all of us,” Majali says.
Saudi Arabia has had one of the most highly regulated aviation markets in the world and limited foreign involvement. But rising population and affluence has led to a demand for more services. GACA expects annual passenger traffic to soar from 65 million in 2012 to 100 million by 2020, including almost a doubling of domestic traffic to 28.5 million.
It agreed in 2013 to allow two foreign airlines to operate domestic services only, while it is also part-way through privatizing state-owned Saudi Arabian Airlines (Saudia).
In another sign of the newcomers’ imminent launch, Al Maha Airways livery also has been added to four planes still being operated by Qatar Airways and staff for the new airline are being trained.
While the regulators have borne much of the blame for delays in the launch of the two new carriers, according to local media, Majali says his Eastern Province-based airline also had been waiting to make an impact by launching with its own aircraft.
“The biggest delay was due to us requiring new airplanes because normally a start-up carrier uses old airplanes by dry leasing and starts up within three to six months, and that’s it. We wanted to make an impression within Saudi with a very high quality carrier, full service, and the whole shebang.
We bought new airplanes from Airbus according to our specifications for the inside, and that normally takes 18 months. That was the major part of the delay,” Majali says.
Curiously, he adds that the carrier has only taken delivery of one of its four aircraft for licensing purposes, with the other three remaining at Airbus’ headquarters in Toulouse, France, “because of the weather”.
“This is the only one required for the AOC process. Once we finish the AOC process, the other three will come,” Majali says.
Initially, the airline plans to launch four routes: Dammam-Riyadh, Dammam-Jeddah, Riyadh-Jeddah, and Dammam-Dubai, with domestic flights offering first class and economy fares, and international flights providing business class and economy class service.
“Then in 2017, which will be our main expansion year, we will increase within Saudi Arabia itself and we will increase within the region,” he says.
The expansion will be fuelled by the 16 Bombardier CS300 jets on order, at a cost of $2bn with an option for a further ten, which Majali says will be delivered in 2017-18.
“It’s an airplane very similar to the A320, slightly smaller — probably ten seats less — but it’s a small, narrow body,” he says.
As a ‘boutique airline’, SaudiGulf will target the luxury market. While there are no plans to explore the business class-only configuration that has previously been unsuccessfully trialled in the kingdom, the model is definitely high specification, and will target the top end of the market.
However, Majali says he will be partly hamstrung by the kingdom’s fare cap.
“With the pricing, we are limited to an extent by the current fare cap and the modifications of the fare cap within Saudi Arabia, but obviously we have flexibility with first class and other things,” Majali says.
“But definitely the market in Saudi Arabia is opening up — you now have three airlines, and another one is coming up. Once you open up the market, there is no reason to have a fare cap any more. Hopefully, in the future, you will pay for the services that you get.”
Majali, who left Gulf Air in 2012, says starting the project from scratch allowed the carrier to order the aircraft to its own specifications and introduce the company ethos from the outset.
“Our advantage is that we’re started from the ground up, and so we can build it right from the start. There’s no excess baggage. Obviously a start-up also has lots of challenges but the upside is that as a start-up carrier we can build systems and procedures, employee attitudes and service right from the start,” he says.
Once the initial 20 aircraft are in operation, Majali says the airline will start thinking about expansion, including looking at a possible large, narrow body aircraft capable of serving longer-range markets.
“The plan in five years is to be a major player within the Saudi Arabian market domestically, and we expect to be a very strong regional player,” he says. “We’ll start thinking of expanding after that. But initially, with the 20 airplanes, we will doing Saudi Arabia domestic, we will be doing regional and a bit more beyond that — India, Pakistan, probably Turkey, Egypt, all destinations within a four or five-hour flying radius from Dammam.”
Al Maha Airways, which had also planned to commence operations in 2015 but was also held up by licensing issues, will initially operate routes to main cities in the kingdom, starting with flights between its hub in Riyadh and the west coast city of Jeddah, before moving to second-tier cities. The airline has already taken delivery of four A320, with plans to add another six by the time it starts operations.
According to reports, the carrier will add a further ten to 15 each year until it reaches a total 50 narrow and widebody aircraft.
When they are up and flying, both of the new airlines will face fierce competition from Saudia and Riyadh-based Flynas, the kingdom’s only low-cost airline, which is owned by National Airline Services Holding (63 percent) and HRH Prince Alwaleed Bin Talal Al Saud’s Kingdom Holding.
Flynas CEO Paul Byrne has helped turn around the airline and is expected to report its first ever profit since launching in 2007 when its latest figures are released within months.
“The advantage for me was that when I came to Flynas I went in as a consultant, so I could see from the outside what was working and what wasn’t. Long haul wasn’t. One of the things we were fantastic at was getting an A320 from point to point on time,” he says.
“You start with a strength like that and build upon it. It’s not rocket science, we know what we do well, we know what people want, and we improved pretty dramatically on what they didn’t want. It was costing us a lot of money in 2014, and we took that particular cost out of the system and we’ve increased our A320 flying.”
The airline has plans to expand from 26 Airbus aircraft and to replace its all-leased fleet with up to 100 new aircraft over the next five years.
Byrne, who entered the aviation industry with Ireland’s Aer Lingus and has worked all over the world, says 70 percent of Flynas’ flights are in the kingdom’s domestic market.
“There’s still plenty of room in there for more flying and that’s where we’re concentrating most of our effort,” he says.
Byrne admits that despite there being only two operators in the country, the Saudi market remains “very tough”.
“Look at how long it has taken for any competition to actually get in there. Before us, you had a low-cost carrier called Sama that didn’t survive the rigours of trying to set themselves up. Nasair the airline’s former name and Flynas as it is, just barely stayed through that whole set-up period, but now we’ve established ourselves it’s still tough to make money,” he says.
Flynas’ potential profitability also has been limited by the kingdom’s fare cap.
“We’re being restricted on what we can charge on a day-to-day basis on our flights. We don’t receive a subsidy on our fuel, the same way as Saudia. If you want to subsidise an airline and then fare-cap them, I’ve no problem with that, but we get fare-capped as well, and don’t receive a subsidy. I don’t know where this equation came from,” he says. “But within ten days of departure, I can increase my prices by up to 80 percent.
“That said, I think GACA are expanding their thinking. They are no longer the political wing of Saudia, so they’re starting to become more and more of a regulator. I think they’re recognising that the kingdom needs to be served better by efficient airlines. We’re one of them. We’re hoping to see more people come in because competition is good; it will be good for us.”
That seems to be the common thinking in Saudi aviation circles — that once more operators come into the market, the regulators will be forced to loosen up and create a more business-friendly attitude.
“There was a heavy hand in the past. It was there for protectionist reasons,” Byrne says. “That is changing, but these attitudes never change overnight, so even though the senior people are changing their thinking, and are focussing on the industry by breaking things up, it’s a big organisation and that has to filter down. It has had 70 years of doing something one way.”
So when SaudiGulf Airlines and Al Maha Airways eventually launch, it will represent the start of not only new services, but a new era in Saudi aviation.
Regeneration of Bahrain’s aviation sector
A generation ago, Bahrain was a key hub in the Middle East, attracting the likes of global logistics company DHL to open its regional base there. For various reasons, the island kingdom’s infrastructure and airline service fell behind its GCC neighbours. But both are being addressed, according to the kingdom’s Ministry of Transport and Telecommunications.
The country’s recent airshow was used to relaunch what has been described by many as a new era for aviation in Bahrain.
The modernisation of the airport, described by the minister as “one of the most important strategic projects for the Kingdom of Bahrain”, will see a $1.1bn new terminal built over the next three years, by which stage national carrier Gulf Air will have taken delivery of the first of its new Airbus A320/A321s and Boeing Dreamliner 787-9s.
While the airline has not yet decided how to deploy the 29 aircraft that make up a $7.6bn order, Acting CEO Maher Salman Al Musallam says the aircraft will enhance the carrier’s offering and create opportunities to expand through the acquisition of longer range aircraft.
Reclaiming home ground
Kuwait Airways is looking to reenergise its operations, with significant additions to its fleet expected in the coming years, including ten Boeing 777-300ERs and 25 Airbus aircraft.
The national carrier’s appearance at the recent Bahrain International Airshow was its first representation at such an event in a generation. Arriving with its new A330, it was a sign the carrier is finally getting its act together.
“In Kuwait, the opportunity that we clearly have and not fully exploited is the fact that we have one of the largest home markets in the area,” says Kuwait Airways chief commercial officer Philip Saunders, speaking at the Bahrain Airshow.
“The truth is that many of our natural customers have preferred to travel with Qatar Airways, or Air Arabia, or many other carriers in the region, but that’s already beginning to change, because we’re putting the right schedules in place; we’re putting our market first.
“We have announced major investments in our fleet and also in our products. From this November, when we receive our Boeing 777, our customers will be in for a surprise, because we will have suites in first class and lie-flat beds in business class, and wonderful product in economy. We’re excited and confident about the future.”
Saunders says Kuwait Airways aims to recover its position as the carrier of first choice in its home market, supported by sixth freedom traffic.
Friday, 11 December 2015
SAUDI ARABIA: SaudiGulf Airlines
SaudiGulf Airlines is a proposed start-up carrier planning to commence domestic services in Saudi Arabia on 01-Nov-2015 with a fleet of four Airbus A320 aircraft.
The airline was planning to launch in 1Q2015 but has encountered regulatory delays with Saudi Arabia’s General Authority of Civil Aviation.
The airline reportedly intends to initially operate three to four times daily between Dammam, Riyadh and Jeddah before expanding to Abha, Madinah, Qassim and Tabuk.
The carrier also plans to operate internationally to destinations in the Middle East and Africa.
The airline expects to take delivery of its first Bombardier CS300 aircraft in late 2015 or early 2016. SaudiGulf is owned by the Al Qahtani Group and will become the country's third domestic carrier, after Saudia and flynas.
The airline was planning to launch in 1Q2015 but has encountered regulatory delays with Saudi Arabia’s General Authority of Civil Aviation.
The airline reportedly intends to initially operate three to four times daily between Dammam, Riyadh and Jeddah before expanding to Abha, Madinah, Qassim and Tabuk.
The carrier also plans to operate internationally to destinations in the Middle East and Africa.
The airline expects to take delivery of its first Bombardier CS300 aircraft in late 2015 or early 2016. SaudiGulf is owned by the Al Qahtani Group and will become the country's third domestic carrier, after Saudia and flynas.
Sunday, 18 October 2015
INDIA: New Airlines Face Major Cash, Operational Challenges
A majority of India's new and aspirant airlines appear to be facing major cash and operational issues, delaying salaries, putting off aircraft induction, grounding planes and cancelling flights, leading to questions about whether they can cope in a sector that demands patience to deal with bureaucratic delays and the ability to overcome lobbying by incumbents.
Chennai-based Premier Airways is waiting for an air operator's permit and hasn't paid salaries for the past three months, said said four people, including ex-employees.
Regional airline Flyeasy, based in Bengaluru, is also waiting for a permit. The company has delayed salaries for two months and lost senior executives such as head of sales and marketing Mani Rayaprolu.
Three other south-based airlines that are operating flights have their own set of problems, with either aircraft being grounded or mass flight cancellations. Many of Premier's 150 employees are said to have quit and joined airlines such as SpiceJet and IndiGo. Earlier this year, the airline agreed to purchase 40 A320 Neos from Airbus but hasn't been able to get Reserve Bank of India approval to import the planes.
"I don't think they have the money. I won't be surprised if the project is dead," said a top executive at a supplier, who didn't want to be identified.
Flyeasy, owned by ABC Aviation and Training Services, planned to start operations with five Embraer planes and later cut it down to two to be leased from Saudi Arabian national carrier flynas. Sources said the airline hasn't sent pilots and engineers to test-fly and check the aircraft, following which the lease would start.
Both airlines are without a fleet and losing people. And they haven't even launched.
"Financial planning for a new airline means that you need budget operating costs up to the first three years. Not having money to make salaries within the first year of operation frightfully questions the very intent to manage a stable airline," said Mark D Martin, founder and CEO of Martin Consulting LLC.
"Adequate capitalization with a proven and qualified management team is key. Without fully funding the business plan, starting operations in this hyper competitive environment is foolish," said Kapil Kaul, CEO, South Asia at consultant CAPA-Centre for Aviation.
In both cases, the reason is said to be delays in getting investments. Sources said Premier's investors "didn't honour their commitments, which led to cash problems." Flyeasy has sought permission to raise foreign direct investment before it gets a flying permit, government sources said. It has been in talks with Middle East investors.
Umapathy Pinaghapani, Chairman and Managing Director of Premier Airways, acknowledged there had been hiccups, although he said the company is "progressing well towards its launch."
"There have been some delays in capping the investments and firming up the aircraft, which is already being addressed. Our team size has grown to 100-plus and in my 34 years of experience, I don't see any startup coming up without challenges," he told ET. "These are temporary hurdles and they won't get me down."
Flyeasy Managing Director Rajesh Ebrahim denied the company is facing a financial problem or attrition and also said it isn't looking to raise FDI.
"As long as the regulator is happy that we can sustain for a longer period of airline operations it explains our financial position...there's no point in discussing the FDI since we haven't approached anyone. Except the sales and marketing head, none of our senior executives or staff has resigned, nor will they," he said.
Carriers that are operational haven't been free of turbulence. Hyderabad-based TruJet had one of its three ATR 72-500 planes grounded due to "technical issues" recently, said Managing Director Vankayalapati Umesh. When that was sorted, another plane developed engine glitches and had to be withdrawn. The airline, which started in July, now operates two planes.
According to the Directorate General of Civil Aviation, Vijayawada-based Air Costa had the highest number of flight cancellations in July, followed by Bengaluru's Air Pegasus.
"Network and scale are crucial for an airline to compete with peers. But in the initial days, it is reliability which builds its brand image," said Habibullah Ubaidullah, a Trichy-based independent consultant who follows aviation in southern India.
Industry officials said the two Tata Group joint venture airlines are the only newcomers with a stable financial position, although they too have yet to make a dent in the market. Vistara is rethinking its strategy and configuration to push loads and AirAsia, with five planes in its fleet, is going slow on expansion. Both airlines have said they are waiting for the government to ease rules to fly overseas so they can align their networks with that of their global shareholders Singapore Airlines and AirAsia Bhd.
The five airlines that started flying since last year together controlled 4.5% of the market in July, as per DGCA figures.
Critics have questioned the government's open-handed giveaway of approvals to airlines. Between 2009 and 2014, the government issued 16 no-objection certificates, of which nine were given between 2012 and 2014. Several lapsed and the companies didn't renew them.
"When you know that so many airlines have fallen by the wayside in the past, it is critical to look at their financial viability in the initial stages itself," said Mohan Ranganathan, a consultant and member of the Civil Aviation Safety Advisory Council.
Chennai-based Premier Airways is waiting for an air operator's permit and hasn't paid salaries for the past three months, said said four people, including ex-employees.
Regional airline Flyeasy, based in Bengaluru, is also waiting for a permit. The company has delayed salaries for two months and lost senior executives such as head of sales and marketing Mani Rayaprolu.
Three other south-based airlines that are operating flights have their own set of problems, with either aircraft being grounded or mass flight cancellations. Many of Premier's 150 employees are said to have quit and joined airlines such as SpiceJet and IndiGo. Earlier this year, the airline agreed to purchase 40 A320 Neos from Airbus but hasn't been able to get Reserve Bank of India approval to import the planes.
"I don't think they have the money. I won't be surprised if the project is dead," said a top executive at a supplier, who didn't want to be identified.
Flyeasy, owned by ABC Aviation and Training Services, planned to start operations with five Embraer planes and later cut it down to two to be leased from Saudi Arabian national carrier flynas. Sources said the airline hasn't sent pilots and engineers to test-fly and check the aircraft, following which the lease would start.
Both airlines are without a fleet and losing people. And they haven't even launched.
"Financial planning for a new airline means that you need budget operating costs up to the first three years. Not having money to make salaries within the first year of operation frightfully questions the very intent to manage a stable airline," said Mark D Martin, founder and CEO of Martin Consulting LLC.
"Adequate capitalization with a proven and qualified management team is key. Without fully funding the business plan, starting operations in this hyper competitive environment is foolish," said Kapil Kaul, CEO, South Asia at consultant CAPA-Centre for Aviation.
In both cases, the reason is said to be delays in getting investments. Sources said Premier's investors "didn't honour their commitments, which led to cash problems." Flyeasy has sought permission to raise foreign direct investment before it gets a flying permit, government sources said. It has been in talks with Middle East investors.
Umapathy Pinaghapani, Chairman and Managing Director of Premier Airways, acknowledged there had been hiccups, although he said the company is "progressing well towards its launch."
"There have been some delays in capping the investments and firming up the aircraft, which is already being addressed. Our team size has grown to 100-plus and in my 34 years of experience, I don't see any startup coming up without challenges," he told ET. "These are temporary hurdles and they won't get me down."
Flyeasy Managing Director Rajesh Ebrahim denied the company is facing a financial problem or attrition and also said it isn't looking to raise FDI.
"As long as the regulator is happy that we can sustain for a longer period of airline operations it explains our financial position...there's no point in discussing the FDI since we haven't approached anyone. Except the sales and marketing head, none of our senior executives or staff has resigned, nor will they," he said.
Carriers that are operational haven't been free of turbulence. Hyderabad-based TruJet had one of its three ATR 72-500 planes grounded due to "technical issues" recently, said Managing Director Vankayalapati Umesh. When that was sorted, another plane developed engine glitches and had to be withdrawn. The airline, which started in July, now operates two planes.
According to the Directorate General of Civil Aviation, Vijayawada-based Air Costa had the highest number of flight cancellations in July, followed by Bengaluru's Air Pegasus.
"Network and scale are crucial for an airline to compete with peers. But in the initial days, it is reliability which builds its brand image," said Habibullah Ubaidullah, a Trichy-based independent consultant who follows aviation in southern India.
Industry officials said the two Tata Group joint venture airlines are the only newcomers with a stable financial position, although they too have yet to make a dent in the market. Vistara is rethinking its strategy and configuration to push loads and AirAsia, with five planes in its fleet, is going slow on expansion. Both airlines have said they are waiting for the government to ease rules to fly overseas so they can align their networks with that of their global shareholders Singapore Airlines and AirAsia Bhd.
The five airlines that started flying since last year together controlled 4.5% of the market in July, as per DGCA figures.
Critics have questioned the government's open-handed giveaway of approvals to airlines. Between 2009 and 2014, the government issued 16 no-objection certificates, of which nine were given between 2012 and 2014. Several lapsed and the companies didn't renew them.
"When you know that so many airlines have fallen by the wayside in the past, it is critical to look at their financial viability in the initial stages itself," said Mohan Ranganathan, a consultant and member of the Civil Aviation Safety Advisory Council.
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