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Deccan's
chopper service to Vaishno Devi a great hit
By Sushma Arora
KATRA
(Jammu and Kashmir), Jan 29: A pilgrimage to Mata Vaishno
Devi shrine has become quick and comfortable, thanks to reliable
helicopter service provided by Deccan Aviation from Katra
to Sanji Chhat. In its over two-year uninterrupted service,
Deccan has made the pilgrimage possible for those devotees
who could not have darshans either due to old-age and infirmity
or lack of time.
"Our
chopper service is popular with all the age groups. But, of
course, the aged and businessmen and the non-resident Indians
(NRIs) who are hard pressed for time make use of our package
that includes darshans and return to the base the same day,"
said Major Yoginder Kandhari, Chief of the helicopter operations
at Katra in Jammu and Kashmir.
Ashwani
Narula, a businessman from Delhi, was in concurrence with
sentiments of Major Kandhari. "I have been wanting to
visit the shrine and pay obeisance for a long time but could
not do so for lack of time. But thanks to the Deccan Aviation's
chopper service, I have had Mata Vaishno Devi's darshans,"
said Ashwani. Complimenting
Deccan Aviation, he said "the staff is courteous and
assists the passengers in having a quick and orderly darshans."
He said, "For me pilgrimage was a comfortable and memorable
one."
Nine-year-old
Noyanika, who as a child was thrilled with the additional
advantage of a chopper ride, echoed similar sentiments. A
visually thrilled Noyanika said she took the helicopter, as
she had to return to school on Monday. "I, along with
my parents, made best use of the weekend to have darshans
of Mata Vaishno Devi, which I have been wanting to do for
a long time." Noyanika said she walked the three-km stretch
from Sanji Chhat to Mata Vaishno Devi Darbar but took a pony
ride on return.
Major
Kandhari informed that Deccan Aviation was invited by the
Sri Mata Vaishno Devi Shrine Board to commence its Katra -
Sanji chhat operations in November 2002. "The service
has been running uninterrupted for over two years to the delight
and satisfaction of thousands of devotees."
He
said the company has performed with admirable professionalism
towards its commitment to provide a service to match the very
best. "We have also been meeting the highest flight safety
standards by following rigorous maintenance and operations
of the highest order to match the trust of people. For this
we have picked up the very best pilots and engineers from
the industry."
In
its first year of operation ending November 2003, Major Kandhari
said "Deccan carried 27,935 devotees. This figure jumped
to 38,683 in the second year ending November 2004 showing
a growth of 38.48 per cent. With a view to further enhance
its carrying capacity the company replaced its Bell 206 L
3 with two state of the art and more effective Bell 407 helicopters.
It is visualized that in current year there will be further
increase in passenger traffic by 25 per cent."
At
the outset, he said Deccan Aviation had to contend with indefinite
passenger response as earlier attempts by other operators
had failed to establish credibility as a dependable and worthwhile
means of visiting the shrine. "Deccan Aviation meticulously
analyzed the follies of the past and made quick amends to
arrive at an effective customer friendly formula, which to
date is working to the entire satisfaction of all concerned."
The
erstwhile passenger waiting area has been transformed into
a modern, air-conditioned waiting lounge. The ticketing and
reservation system has been streamlined to near perfection
with the appointment of a vast, countrywide network of agents.
"Today you can book your pilgrimage from the comforts
of your home, on the Internet," informed Major Kandhari.
Deccan
has also introduced a number of packages in conjunction with
some of the best hotel properties in Jammu and Katra. In addition,
the company has also formalized a seamless package with the
Shrine Board that covers the entire ambit of requirements
of the Yatris, including air bookings, to and from Jammu,
hotel accommodation, helicopter flight to the shrine helipad
and return, night stay at the shrine and special darshan at
the shrine.
To
further improve the infrastructure at Katra Heliport, Deccan
Aviation, under the aegis of the Mata Vaishno Devi Shrine
Board, is working on a project of constructing a hangar for
servicing and maintenance of the helicopters. "This facility
will obviate the requirement of ferrying the helicopters to
Delhi for their periodic maintenance," said Major Kandhari.
Mr
Rohit Kansal, Additional CEO of Mata Vaishno Devi Shrine Board,
said "our endeavor is to provide all level of facilities
to the devotees to make his pilgrimage comfortable and memorable
one. The helicopter service is an endeavor towards that."
Deccan
Aviation is India's largest and most versatile helicopter
charter operator in the private sector with a fleet of nine
helicopters and two fixed wing aircraft. Besides having a
nationwide presence with six bases, Deccan is also the first
Indian aviation company to have an ongoing joint venture overseas,
in Sri Lanka.
Deccan
aircraft have been and are currently deployed to perform an
array of multifarious tasks from conveyance of political and
corporate VIPs, evacuation of casualties, geophysical surveys,
heliskiing, aerial photography, flower dropping at religious
functions, tourism to conveyance of pilgrims to places of
religious interest.
India
gets ready to receive world's largest plane A380
By Deepak Arora
NEW
DELHI, Jan 20: India is getting ready to receive the world's
largest aircraft, Airbus A380, when it takes to the skies in
the middle of next year. Over 60 airports in the world, including
four Indian metropolises, are busy with preparations to receive
the biggest bird made by man.
"The
runways at Mumbai, Delhi, Chennai and Kolkata airports will
be modified to be able to handle 550-seater Airbus A380. Similarly,
modifications to taxiways will be undertaken to cater for the
wider wheel-base of the aircraft," said Mr K Ramalingam,
Chairman of the Airports Authority of India. The AAI maintains
and operates 126 airports in the country.
Mr
Ramalingam informed that adequate fillets would be provided
on the turning points of the taxiways to cater to these widened
wheelbases. "Parking stands are being provided at all the
four metro airports to provide for the A380 that has a wing
span of 80 meters." The AAI Chairman said "few clearances
between runways and taxiways, which are mandatory, will be provided
to be able to handle Airbus A380 at these airports."
With
its larger wingspan giving greater lift and its new-generation
engines, the A380 can take off and land in less distance than
other large aircraft. This makes it capable of using existing
runways.
Major
world hubs, which have already geared up to take the A380, include
San Francisco and Singapore. Besides the Indian metros, others
that would be ready in 2006 include Sydney, London's Heathrow,
New York's John F Kennedy International, Los Angeles, Tokyo,
Seoul, Hong Kong, Bangkok and Frankfurt.
The
super jumbo's entry into service next year is a challenge to
already stretched airport infrastructure. Research group Frost
& Sullivan says Airbus' biggest problem isn't the demand
for the super jumbo, which it sees as potentially even higher
than Airbus' own estimates. ``This is all very nice, but if
you don't have airports that can handle the A380 it won't work,''
said Johan Orsingher, a senior consultant with the group.
London's
Heathrow airport says it is spending over US $800 millions (euro
640 millions), providing everything from double-decker passenger
ramps to enlarged baggage conveyors capable of processing 555
passengers on one flight. Other airports are spending billions
more on similar improvements, but there is concern that some
may not be ready in time.
Even
Paris Charles de Gaulle, home to A380 customer Air France, has
just two A380-ready gates. Operator Aeroports de Paris insists
its airport will be ready for the plane despite last year's
partial collapse of the new terminal where they are both situated.
Airports in the United States are also thought to be behind,
although Orsingher said major airports in New York, Los Angeles,
Chicago and Atlanta would have no choice but to catch up quickly.
``We've
put some friendly pressure on two or three airport authorities
that we consider to be a bit behind,'' Forgeard told France's
La Tribune newspaper.
The
delay in some of the major airports worldwide has forced Virgin
Atlantic that has ordered six A380s with options for a further
six, worth a total of $3 billion to postpone acquisition of
the super jumbos to later date. Virgin was originally scheduled
to take delivery of the aircraft in 2006 but delayed the plans
due to concerns that some major airports, particularly Los Angeles,
would not be ready to accommodate the plane in time, as well
as delays in sourcing components for some design innovations.
The first aircraft is scheduled for delivery in May 2008, according
to the airline's half-owner Richard Branson.
Branson
said Virgin Atlantic was now confidant that airports were prepared
and suggested the company would take up its options for a further
six planes sooner rather than later. "The chances are we
are going to want more than six," he said.
How
the plane's extra space is used will be left up to airlines,
whose A380 cabin designs have remained closely guarded. In the
future, low-cost carriers could operate the A380 with a single
economy class configuration accommodating as many as 800 passengers.
Virgin's
Branson said his airline would offer private double beds for
first-class passengers and gambling area offering blackjack
and roulette for both economy and business class passengers.
Besides, he said the super jumbos would have gyms and beauty
parlours. He said "since you have gaming and you have private
double beds maybe there are two ways of getting lucky on a Virgin
plane." Virgin Atlantic, which already offers seats that
convert into double beds on some of its existing aircraft, plans
to install 35 private double beds on each A380.
The
Chairman of Dubai-based carrier Emirates, which is so far the
largest A380 customer with 45 orders, said the plane was a ``key
element in our future growth'' and offers ``the widest cabin
of any aircraft in the world.'' ``It provides lower seat-mile
costs and carries more passengers further and consumes less
fuel than its competitors,'' Sheikh Ahmed bin Saee Al Maktoum,
said.
Chew
Choon Seng, CEO of Singapore Airlines, said the A380 would increase
passenger and cargo capacities ``without increasing aircraft
movements and without congesting the skies and adding to congestion
on airport taxiways and runways.'' Singapore Airlines will begin
using the plane for services to London and Sydney when it becomes
the first carrier to carry commercial passengers aboard the
A380 in 2006, he said.
Airbus
hopes to sell 750 of these jumbos to airlines operating services
between the busiest airports, mainly in Asia, which serve as
hubs, or stopovers between connecting flights.
Airbus
unveils world's largest aircraft
By Deepak Arora
TOULOUSE
(France), Jan 18: Amidst pomp and show, the European aircraft
manufacturer, Airbus, on Tuesday unveiled the world's largest
aircraft referred to as the super jumbo A 380. The double-decked
aircraft that could seat from 500 to 840 passengers is expected
to revolutionize long-haul flying.
The
super jumbo has an 80-meter (262-foot) wingspan and a tail as
tall as a seven-story building. It cost euro10 billions (US$13
billions) to develop. In a three-class cabin layout, the A380
will seat 33 per cent more passengers than Boeing's veteran
747 and offers 49 percent more floor space -- leaving additional
room for features such as on-board shops, bars, casinos or even
nurseries.
The
French President, Mr Jacques Chirac, the British Prime Minister,
Mr Tony Blair, the German Chancellor, Mr Gerhard Schroeder,and
the Spanish Prime Minister, Mr Jose Luis Rodriguez Zapatero
along with 5,000 guests from the world's aviation sector and
media including and CEOs from the 14 airlines and freight companies
that have so far ordered the A380 attended the elaborate unveiling
at company headquarters in Toulouse, southern France.
"Under
the name Airbus, Europe has written one of the most beautiful
pages in its history," Airbus chief Noel Forgeard told
the packed hall.
"In this great aircraft, there is a mixture of determination
and of dreams, which is, and always has been, at the heart of
the wealth and splendid complexity of our European culture,"
he said, standing in front of the plane.
The
A380 has wingspan of 80 metres (262 feet), overall length of
73 metres (239 feet), height of 24 metres (79 feet) and maximum
take-off weight of 560 tonnes.
It
far exceeds the 747 by US rival Boeing by being able to transport
between 500 passengers in a typical first-business-economy class
configuration and 840 passengers in an all-economy set-up on its
two full decks. The 747, which had ruled the commercial skies
since 1975, typically carry 416 passengers in comparison.
Mr
Chirac said the "big success" of the A380 project showed
that Europe should cooperate further in other industrial domains,
notably in high technology. "We can, and we must, go further
on this path of European construction so essential for growth
and employment," he said.
Mr Blair called the A380 "simply stunning". "Today
is the culmination of many years of hard work," he said,
congratulating the workers in Britain and in the other European
countries involved for their contributions.
Mr
Schroeder took the opportunity to make a barely-veiled jab at
the United States, whose secretary of defence, Donald Rumsfeld,
dismissed France, Germany and other countries as "Old Europe"
for opposing the Iraq war. "Good
old Europe has made this possible," the German leader said,
hailing Europe's leading position in civil aviation.
Airbus
has already taken 149 orders for the US$280 million planes, ``which
for a plane of this size that has not yet flown is an extraordinary
commercial performance,'' said Noel Forgeard. The
A380 will take to the skies next year. Airbus says companies have
options on dozens more and that the programme will break even
after 250 sales -- an objective it hopes to reach within three
years. In all, the company expects to sell 700-750 aircraft. ``It
is a plane that will fly for 30 to 40 years,'' Forgeard said.
Airbus
trailed Boeing until 2003, when it delivered more planes than
its US rival for the first time -- a feat it matched last year,
with 320 deliveries to Boeing's 285, and is likely to repeat this
year.
How
the plane's extra space is used will be left up to airlines, whose
A380 cabin designs have remained closely guarded. In the future,
low-cost carriers could operate the A380 with a single economy
class configuration accommodating as many as 800 passengers. Virgin
company chief Richard Branson, said his airline, which has ordered
six A380s, will offer private double beds for first-class passengers
and casinos.
The
Chairman of Dubai-based carrier Emirates, which is so far the
largest A380 customer with 45 orders, said the plane was a ``key
element in our future growth'' and offers ``the widest cabin of
any aircraft in the world.'' ``It provides lower seat-mile costs
and carries more passengers further and consumes less fuel than
its competitors,'' Sheikh Ahmed bin Saee Al Maktoum, said.
Chew
Choon Seng, CEO of Singapore Airlines, said the A380 would increase
passenger and cargo capacities ``without increasing aircraft movements
and without congesting the skies and adding to congestion on airport
taxiways and runways.'' Singapore Airlines will begin using the
plane for services to London and Sydney when it becomes the first
carrier to carry commercial passengers aboard the A380 in mid-2006,
he said.
India,
US sign open skies aviation agreement
WASHINGTON,
Jan 16: The United States and India have reached open-skies aviation
agreement that will lead to more flights, lower fares and stronger
economic ties between the two countries, US Transportation Secretary
Norman Y Mineta has announced. The announcement came on Saturday
after three days of negotiations between Mineta and Civil Aviation
Minister, Praful Patel.
Mineta
said the agreement means the two countries "will be closer
than ever before" and begins "a new era where American
and Indian consumers, airlines and economies can reap the rewards
of cheaper flights, more choices and faster air service." He
said the agreement would strengthen commercial aviation in a number
of ways, including more direct flights to serve the approximately
two million passengers a year travelling between the two countries.
The
agreement allows airlines from both countries to select routes and
destinations based on consumer demand, providing for open routes,
capacity, frequencies, designations, and pricing as well as opportunities
for cooperative marketing arrangements. That includes code sharing
with domestic Indian carriers to aid in making reservations and
giving a greater choice of flights.
The
deal also allows all-cargo operators to operate in either country
without directly connecting to their homeland. India and the United
States are the world's two largest democracies and two of world's
fastest growing economies, Mineta noted in a statement.
Indus
Airways: Reasonable fares with best of frills
By Deepak Arora
NEW
DELHI, Jan 16: With liberalization and opening of the Indian skies
and friendly policies, more and more entrepreneurs with resources
are seeking to venture into the aviation market this year. The latest
to join the bandwagon is Indus Airways. "The airline will make
Chandigarh and Delhi as its hubs. We plan to launch operations in
April by leasing three 50-seater Embraer ERJ 145 aircraft,"
said Brig (Retd) Dr. Kapil Mohan, honorary Chairman of the airline.
To
start with, Brig Kapil Mohan said the Indus Airways would connect
cities such as Chandigarh, Amritsar, Delhi, Varanasi, Kolkata, Chennai,
Mumbai, Goa and Srinagar. "We plan to connect the hitherto
uncovered sectors and also connect the metros and other major cities."
To
expand its connectivity, the Chairman said the airline would purchase
five Embraer ERJ 145 aircraft in 2006 taking its strength to eight.
These five aircraft would arrive in February, April, May, July and
December of 2006. In three years ie by 2007, the airline would acquire
12 more aircraft to take the total fleet strength to 20. He informed
that the type and size of these aircraft has not yet been decided.
He
said the airline would provide "very reasonable fares with
best of frills." On the long-haul flights, he said the airline
would provide good quality food for which we have hired some specialists.
He said "it will be service with a smile."
Brig
Kapil Mohan, who is known is known as a doer, said he is talking
of the project today, as "I feel good about it. Had it not
been so I would not have talked about. We have hired professionals
to make sure that all the talks has to be airworthy."
Brig
Kapil Mohan of the Mohan Meakins heads the Board of Indus Airways.
Three Directors on the Board are Mr Krishan Gopal Beri, who is Managing
Director of M/s Beri and Beri Cold Storage and General Mills (P)
Ltd; Mr Parminder Lakhanpal, a London-based NRI; and Mr Baldev Seth,
a garment exporter. Mr Amarjit Sangha, a Toronto-based NRI, is one
of the investors in the airline that has a starting equity base
of Rs 10 crore.
Mr
Krishan Gopal Beri said the emphasis would be on quality - be it
food, service or inflight comforts. He said there would also be
emphasis on on-time performance and intelligent schedules. "In
other words, a passenger could catch a flight early morning and
return home by night after completing his task. That will also save
him on his hotel bills."
Mr
Parminder Lakhanpal said ERJ 145 a pressurized jet for regional
transport and has a good turnaround that would help us meet our
on-time targets. The ERJ 145 is also characterized by its high performance
and low operating costs. It is equipped with quiet, fuel-efficient
turbofan engines.
He
said the leased aircraft that airline is initially taking would
be only one to two years old. He said the passengers would get attracted
to Indus for the great comfort ERJ offers.
Mr
Baldev Seth said ERJ 145 cabin has a maximum pressure differential
of 7.8 psi, offering passengers the comfort of a smooth, relaxed
flight above bad weather. Since first delivery in December of 1996,
more than 700 of these successful Embraer jet aircraft have been
delivered to airlines around the world.
Mr
Ricardo Pesce, Diector, Business Development, Asia Pacific, Civil
Aircraft Market of Embraer Group, stated that by launch of RJ 145,
the airline will have an upper hand in comparison to airlines running
on turbo-prop ATRs in terms of time duration and facilities to passengers.
Mr
Beri said the airline had submitted the proposal to the Indian Government
on April 22 last year and the high-level committee of the Civil
Aviation Ministry approved it in December and the company was now
waiting for a final nod from the Civil Aviation Minister. He said
the airline meets all the stipulated guidelines for floating and
running a scheduled private carrier.
He
said the airline has hired two best aviators for its operations
in Northern and Central and Southern India. Capt A P C Kapoor, ex-Director
(operations) Air India and a senior Commander and instructor of
Boeing 747-400, would be based in Mumbai and head the operations
of Central and Southern India. Similarly, Capt M S Sandhu, ex-General
Manager, Air India and Boeing 747 instructor, would be based in
Chandigarh and head the operations of Northern India.
Other
airlines that are planning to launch operations in 2005 include
Vijay Mallya's Kingfisher Airways, the Wadia family's Go Air, Royal
Airlines (former ModiLuft) and East West.
The
civil aviation ministry has granted its no-objection certificate
to Kingfisher, Go and Royal that would enable them to launch scheduled
flight operations this year. The launch of the several new airlines
is expected to unleash a fresh round of fare wars in the domestic
aviation market with all the players promising to introduce services
at fares that are about 25 to30 per cent cheaper than existing rates.
Go
Air is expected to take to the skies in the next couple of months.
While Mallya plans to launch his airline venture by April next year,
Royal Air is slated to take off a month later in May. "We will
be starting our airline operations with a fleet of leased aircraft
and substantial investments will be made in the venture," said
Jehangir Wadia, director of the Wadia group, which also includes
Britannia and Bombay Dyeing. "Though we have named the venture
Go Air for now, we are conducting consumer studies to finalise the
brand for the airline."
Nair
takes over as Member AAI Board
By
Deepak Arora
NEW
DELHI, Jan 1: Mr P S Nair has been appointed as the Board Member
(Personnel and Administration) of the Airports Authority of India
(AAI), the mainstay of civil aviation in the country. Besides HR
development, Personnel and Industry Relations, he oversees Commercial
Activities and Land Management at the AAI's 126 civil airports in
the country.
Speaking
to this correspondent, Mr Nair said his endeavor in the new position
would be to bring in desired efficiency in the organization. "Though
we have excellent technical talent we need to harness and come up
to everybody's expectations and achieve corporate excellence,"
he added. The Corporate Mission of the AAI is "Progress through
excellence and customer satisfaction with world-class airports and
air traffic services fostering economic development."
Mr
Nair stated that though the physical integration of erstwhile International
Airports Authority of India (IAAI) and National Airports Authority
of India (NAAI) took place in April 1995, but still we do not have
a common policy towards employees. He said he would ensure common
recruitment and promotion policy and common seniority of the employees
of the two organizations that were merged to create AAI.
The
new Member also stated that his endeavour would be increase the
non-traffic revenue from 40 per cent of total revenue at Rs 4,500
crore to 60 per cent that is a global standard.
Mr
Nair joined the erstwhile IAAI in 1977 as the first professional
manager, when the country's maiden international cargo terminal
was commissioned at Mumbai airport. Since then he has held various
key positions in the erstwhile IAAI, including a stint in the National
Dairy Development Board where he was responsible for major port
operations and nationwide distribution of dairy commodities donated
by EEC countries under "Operation Flood" programme.
Since
1996, Mr Nair has been an Executive Director of the AAI, holding
key positions such as Airport Director, Trivendrum and Mumbai airport's
Commercial, Cargo and Key infrastructure Development. Prior to his
elevation as Member (P&A), Mr Nair was the Director of Capital's
Indira Gandhi International Airport for nearly three years.
Widely
traveled, Mr Nair has represented AAI in various high-level delegations
and working groups and has also presented several papers in national
and international levels, seminars and workshops. Mr Nair has undergone
12 weeks Public Enterprise Management training at Ilkley Management
Centre, UK under the Colombo Plan and six weeks intensive training
in Airport Handling Systems under the aegis of Frankfurt Airport
Authority at Frankfurt, Germany.
ATR inks deal with Air Deccan for 30 aircraft
BANGALORE,
Jan 6: European aviation major Avions de Transport
Regional (ATR) on Thursday bagged a multimillion-dollar
deal with Air Deccan, India's low-cost no-frills airline,
to provide 30 aircraft. Of the 30 ATR 72-500 aircraft,
15 will be brand new and the remaining 15 will be
leased aircraft that are five years old. The delivery
schedule is spread over a five-year period at the
rate of six to eight aircraft a year.
An
agreement for delivering the new-cum-leased aircraft
was signed here Thursday by ATR CEO Filippo Bagnato
and Air Deccan's managing director G.R. Gopinath. "The
ATR 72-500 aircraft have the lowest seat-mile costs
in their category and a high degree of commonality with
ATR 42, which leads to major cost savings and flexibility,"
Bagnato said.
In
addition to the 30 aircraft, ATR will deliver six second-hand
aircraft, including three 42-500 models and three 72-500
models. These aircraft will replace six of the existing
fleet of ATR aircraft operated by Air Deccan. Currently,
Air Deccan operates nine ATR-42s on its feeder routes
and three Airbus A-320s on trunk routes across India.
The airline is acquiring three more ATR 42-500 this
month and February to expand its feeder service.
"The
sticker price for each ATR 72-500 aircraft is $17.6
million. The exact price will be negotiated in consultation
with export credit agencies like Sace Bank of Italy
and COFAS of France, who will stand guarantee for 80-85
percent of the cost," Bagnato said.
As
part of the deal, ATR has agreed to set up a training
facility in Bangalore with a simulator to train rookie
pilots. The first of its kind in India, the centre will
have well-advanced, integrated product support. According
to Gopinath, Air Deccan will acquire 15 ATR aircraft
on a monthly lease of 0.75-1 percent of the total cost
of the aircraft. Though
five years old, these aircraft will join the fleet after
overhauling and refurbishing by the manufacturers. ATR
is owned by the European Aeronautic Defence and Space
Co. NV based in France and Germany, and Italy's Alenia.
IA
to lease 6 more ATRs
NEW
DELHI, Jan 6: The Indian Airlines board on Thursday
approved leasing of six more ATR-42 aircraft for its
subsidiary Alliance Air in a bid to enable it to serve
more short sector regional routes. The board's clearance
came as part of its approval of recommendations of the
Committee of Officers, which studied the feasibility
of extending domestic operations to regional routes.
The
committee recommended 50-seater operations to 18 new
destinations that include stations as diverse as Cooch
Behar, Agatti, Gwalior, Ludhiana, Kanpur, Dehra Doon,
Nasik, Simla, Surat and Jaisalmer. The hub and spoke
pattern of operations will have bases in Delhi, Mumbai,
Chennai and Kolkata. The board considered it appropriate
that Alliance Air should undertake these operations
with similar aircraft type as was currently in use -
ATR-42-320.
THE
`IN' THING: The Communication and Information Technology
Minister, Dayanidhi Maran, presenting a certificate
to Ratan Tata, Chairman, Tata Group, to mark the extension
of the .in domain name registry services by the National
Internet Exchange of India, at a function in New Delhi
on Thursday.
IA
launches Guwahati-Bangkok flight
TTO
News Service
NEW
DELHI, Jan 1: Indian Airlines on Saturday launched a
twice weekly A320 flight between Guwahati and Bangkok.
The Airbus flight (IC 293) will operate out of Guwahati
every Saturdays and Thursday departing at 12.30 pm and
out Bangkok (IC 295) on Mondays and Fridays at 2.20pm,
according to an IA spokesperson.
The
airline has offered a special inaugural fare for two
months besides a six month excursion fare in economy
class. The economy class one way inaugural fare from
Guwahati, which is the eighth station in India to be
linked to the Thai capital, is Rs 7,645 (round trip
Rs 14,300) and business class fare of Rs 9,940 (Rs 18,590),
the airline said. The six month excursion fare is Rs
13,655. Guwahati was earlier linked to Bangkok by a
twice a week A310 flights of Air-India, which were subsequently
withdrawn.
India
allows private airlines to fly overseas
NEW
DELHI, Dec 29: India will allow domestic private airlines
to fly on lucrative international routes as a part of
its drive to strengthen and expand the nascent sector,
according to Mr Praful Patel, Civil Aviation Minister.
Until last year, only India's two state-owned carriers
-- international flag carrier Air-India Ltd. and the
mostly domestic Indian Airlines Ltd. -- were allowed
to fly on money-making international routes.
"The
cabinet today approved domestic private airlines to
fly overseas, apart from the Gulf countries," Patel
told newsmen after a cabinet meeting in New Delhi. The
move will boost the prospects of private airlines such
as Jet Airways and Sahara Airlines.
A
ministry statement said domestic airlines planning to
fly overseas needed to have been in the business for
five years and have a fleet of at least 20 aircraft.
But Patel said the two state-owned carriers will be
allowed to retain their monopoly to fly to the Gulf
region for the next three years to protect their businesses.
"Most
of their operational revenue and profit on international
routes accrue from these routes," a ministry statement
said. A large number of Indian professionals, most of
whom travel regularly to the country, are working in
Gulf countries such as Saudi Arabia, Kuwait and the
United Arab Emirates.
India's aviation sector is growing on the back of rising
domestic air travel in Asia's fourth-largest economy.
A cut in government taxes and increased competition
has resulted in lower fares that are boosting business
and tourist travel in the country.
Domestic
air travel market expanded 26.5 percent in the first
half of the fiscal year to March to 18.52 million passengers.
As a result, almost all airlines have chalked out ambitious
expansion plans and some corporates have rushed to start
budget carriers as well.
The
Cabinet also approved the Ministry's proposals and course
of action suggested for strengthening Air India and
Indian Airlines and for establishing the improved operational
synergy between Air India and Indian Airlines. Further
the Cabinet has approved the proposal to discontinue
the practice of mandating commercial agreements on all
new services, to review the existing commercial agreements
and phase them out over the next five years.
Request
of all eligible airlines for additional entitlements
will henceforth be taken into account in bilateral negotiations.
Efforts will be made to obtain traffic entitlements
commensurate to the requirements of all eligible airlines.
However, in case the total entitlement fall short of
requirements projected by the eligible airlines, inter-se
allocation of entitlements among eligible airlines will
be in the ratio of Available Seat Per Kilometer (ASKM)
deployed by them on domestic routes over the last five
years. Due consideration will be given to the operational
plan of Air India/Indian Airlines while allotting entitlements
to Indian Scheduled Carriers. The Ministry of Civil
Aviation will draw detailed guidelines in this regard.
With a view to encouraging greater connectivity, creating
a level playing field, reducing passenger tariffs and
ensuring viability of operations, the practice of demanding
compensation from foreign airlines by way of commercial
agreements mandated by the government will be discontinued.
All new operations by foreign carriers, both on new
destinations as well as on existing routes, will be
free from the obligations of the mandated commercial
agreements. All existing government mandated commercial
agreements will be reviewed and phased out over the
next five years. However, the airlines will be free
to enter into such cooperative marketing arrangements
as are mutually agreed upon by them.
Air
Deccan seeks new heights
By
Deepak Arora
NEW
DELHI, Dec 27: In its endeavor to 'empower every Indian
to fly', Air Deccan, India's only budget carrier, has
connected Jaipur, Amritsar and Agra to the Capital city
of Delhi from Monday. From January 10 next, the airline's
Managing Director, Capt G R Gopinath, said the low fare,
no frills carrier would be connecting Delhi to Bhopal,
Jabalpur, Chandigarh, Jammu, Dehradun and Kanpur and another
flight to the pink city, Jaipur and the city of Taj, Agra.
To
extend his support for the growth of aviation in the country,
the Civil Aviation Minister, Mr Praful Patel, had gone
to the Delhi airport to flag off the inaugural flight
to Dehradun. Mr Patel along with Capt Gopinath and Mr
Jean_luc Establie, Sales Director, ATR, had addressed
the newsmen to mark Air Deccan's launch to smaller cities
in Northern India.
Capt
Gopinath said the airline's endeavor is to connect the
unconnected routes. "In the past we connected unconnected
cities like Hubli, Belgaum and Vijaywada with the metros
of Bangalore, Chennai, Hyderabad and Mumbai. Now we are
connecting cities like Dehradun, Amritsar, Kanpur and
Jabalpur to Delhi."
He
said "our aim is also to make air travel affordable
for the common man." He said the airline would continue
to follow dynamic fares that would function with demand
and supply on any given route. On the lines of Western
zero-frill carriers like Ryan Air and Easy Jet, Air Deccan
has introduced dynamic pricing on its fares. Here the
meter starts ticking at just Rs 500 for early buyers and
climbs up to 45 per cent of the regular airline fare at
the top end of the spectrum.
For
example, he said a Delhi-Bangalore ticket on a conventional
airline like Jet Airways cost Rs 11,400 per ticket, in
Air Deccan the highest price of the ticket is Rs 6,400.
"Passenger buying tickets closer to the date of the
flight, running as close an hour before take off from
the airport will pay such fares. Total number of tickets
sold at Rs 500 is Rs 64,000," he added.
Capt
Gopinath said "for India to attain 8 to 9 per cent
GDP growth and for economic prosperity of the nation,
it is very important to integrate the regional cities
in backward areas to the metros not only with TV, Internet
and highways but also with air."
He
said air connectivity to interiors and 'low fares' across
the country would increase mass travel, give fillip to
trade and commerce, and boost tourism as all the major
tourist destinations and wild life parks are in remote
areas and tourism being the largest employer of people
in the world and also the largest foreign exchange earner
would generate employment in rural areas.
From
operating a modest four flights a day in August 2003,
Air Deccan has grown today into a reliable and efficient
airline flying over 80 flights a day connecting 28 airports.
The airline is presently operating a modern fleet of nine
ATR 42 500 aircraft and three Airbus A320s. Two of the
ATRs are based in Delhi to connect seven States to and
from Delhi.
Capt
Gopinath said three more 48-seater ATRs would be joining
the in January and February. Only a few days ago, Air
Deccan had announced plans to buy 30 A320 planes from
Airbus. Air Deccan said the deliveries of the aircraft
are to begin in 2007. Airbus chief commercial officer
John Leahy said "the deal is worth $1.8 billion at
catalog prices."
The
purchase by Air Deccan, owned by Bangalore-based helicopter
charter firm Deccan Aviation Private Ltd., is part of
an ambitious plan to quadruple its fleet from 15 to 60
planes in five years. Capt Gopinath said the Airbus deal
would be financed partly from $40 million raised earlier
this month from ICICI Venture Funds and US-based Capital
International. He said Air Deccan also had options for
an additional $10 million from the two firms.
Mohan
Kumar, director of finance at Air Deccan, said that 85
per cent of the funds was expected to come from a consortium
of banks comprising France's Coface, German credit insurer
Hermes and Britain's Export Credits Guarantee Department
(ECGD) which would provide guarantee support or direct
funding. The rest would be from equity financing or funds
from banks.
IA
evacuates record number of people
NEW
DELHI, Dec 29: Indian Airlines has evacuated a record
1,117 passengers from Port Blair on a single day on Wednesday.
It operated 11 flights to and from Port Blair. Seven flights
were operated from Kolkata and four from Chennai.
According
to a press release, Indian Airlines will operate three
flights to Port Blair tomorrow - two from Kolkata and
one from Chennai - in view of a decrease in the demand
for evacuation of passengers. Indian Airlines has, since
the day of the tragedy, operated 26 relief flights to
Port Blair.
Regional
Directors of Indian Airlines can be contacted for transportation
of relief material on the following numbers: Northern
region (Delhi): 25672800; Eastern region (Kolkata): 22116953;
Southern region (Chennai): 22561070 and Western region
(Mumbai): 26156788. Special cells have also been set up
to disseminate flight information. The telephone numbers
of these are: Kolkata: 22116869 and 22110041; Chennai:
22560022; Delhi: 25674270 and 25672226; Mumbai: 26256986.
Jet
evacuates over 1,300 from Andamans
NEW
DELHI, Dec 29: Over 1,300 people have been successfully
evacuated from the tsunami ravaged Andaman & Nicobar
Islands by Jet Airways on its 15 Boeing 737 flights from
Port Blair to Chennai and Kolkata since Sunday. Jet Airways
also carried over 200 passengers from Chennai and Kolkata
to Port
Blair after the Islands were hit by tsunami.
The
Airline's flights from Chennai and Kolkata to Port Blair
have flown over 13,000 kgs of relief supplies comprising
packaged drinking water, foodstuffs, clothing and medicines
for relief efforts in the beleaguered Islands. Sensing
the shortage of drinking water the Airline purchased over
6,000 bottles of water and also 360 boxes of meals, 30
kgs each of samosas and kachoris and flown to Port Blair
from Kolkata. Jet Airways will operate one Boeing 737
flights to Port Blair from Chennai and another from Kolkata
on Thursday.
Air
India to ferry relief material free for Tsunami victims
MUMBAI,
Dec 28: Air-India will transport relief material, donated
by various agencies and NGOs, for the victims of the
tsunami floods, free of cost to India from various points
on its global network. Organisations wishing to donate
relief material may contact state-owned carrier's offices
in their city, an AI spokesman said here today.
The
airline would give priority booking in return travel
to those who may have curtailed their visit to Thailand
after being affected by the tragedy, he said. The AI
employees would also contribute one-day's salary, including
Productivity Linked Incentive, to the Prime Minister's
Relief Fund in the wake of the tragedy caused by tsunami
floods in the southern states of the country, he added.
IA flies 952 people out of Port Blair
NEW
DELHI, Dec 28: Contributing to relief operations in
Andaman and Nicobar Islands, Indian Airlines on Tuesday
flew nearly 1,000 people out of the tsunami-hit territory.
The airline operated five flights from Kolkata and three
from Chennai to Port Blair which evacuated 952 stranded
passengers today, an Indian Airlines spokesman said
here.
The
planes also carried water from Kolkata and medicines
from Chennai to the island group where an estimated
4,000 people were killed by tsunami waves on Sunday.
As a large number of people are still stranded, the
airline planned to operate 15 relief flights to Port
Blair on Wednesday - seven from Chennai and eight from
Kolkata - which are expected to evacuate 1,785 people.
As a result, many scheduled flights of Alliance Air
will be cancelled, the spokesman said.
On
Monday, Indian Airlines had operated five relief flights
and evacuated 593 passengers and on Sunday it had operated
two relief flights.
Jet
operates 5 relief flights
NEW
DELHI, Dec 28: Jet Airways on Tuesday announced that it
would operate six flights to Port Blair from Chennai and
Kolkata on Wednesday to evacuate stranded tourists and
residents of the archipelago. These flights will also
ferry relief and medical supplies, mineral water and essential
food items for the stranded passengers at the Port Blair
Airport.
Jet
Airways also operated five Boeing 737 flights in all from
Chennai and Kolkata on Tuesday to and from Port Blair.
Two flights each were operated on Chennai-Port Blair-Chennai
sectors and three each on Kolkata-Port Blair-Kolkata sectors.
These flights have also been carrying relief and medical
supplies from Governmental and other recognised voluntary
agencies to Port Blair from Chennai and Kolkata free of
charge.
In
view of the national catastrophe, Jet stated that it would
not collect any cancellation charges for tickets issued
for travel on Chennai-Port
Blair-Chennai, Kolkata-Port Blair-Kolkata and Chennai-Colombo-Chennai
sectors until December 31. This gesture is also extended
to tickets issued separately on domestic sectors in conjunction
with onward journey on these routes. Moreover, tickets
purchased for travel on the services of Jet Airways and
Indian Airlines on the Chennai-Port Blair-Chennai or Kolkata-Port
Blair-Kolkata sectors can be endorsed on Indian Airlines
or vice versa.
Jet
Airways has also contributed Rs 50 lakhs to the Prime
Minister's Relief Fund for rehabilitation of the tsunami
victims of India. A cheque for the amount was handed over
to the Principal Secretary to the Prime Minister, Mr TKA
Nair, late Monday evening by Jet Airways' Executive Vice
President, Lt. Gen (Retd.) Inder Varma on behalf of the
airline.
Jet
Airways also made another contribution of USD 55,000 for
similar efforts in the Island Nation of Sri Lanka. The
cheque to the President's
Fund for Rehabilitation was handed over to the President
of Sri Lanka, Mrs Chandrika Bandaranaike Kumaratunga at
the President House,
Colombo by Lt Gen Varma on Tuesday. Additionally,
around 7,000 employees of Jet Airways will contribute
a day's salary for relief efforts of the tsunami victims
of the coastal areas of India.
IA
evacuates tourists from Andaman
By
Deepak Arora
NEW
DELHI, Dec 27: Indian Airlines on Monday launched an evacuation
operation to airlift more than 2000 stranded tourists
in the Andaman and Nicobar islands which had been devastated
by a powerful earthquake and resultant tsunami tidal waves.
The IA dispatched five aircraft since early Monday morning
to bring back 593 stranded passengers from Port Blair,
an IA spokesman said.
On
Sunday, Indian Airlines had operated two flights and brought
back about 293 tourists. On Tuesday, the airline would
send nine flights from Kolkatta and Chennai to bring back
over 1,000 stranded tourists.
Most
of these flights went almost empty with only a small number
of residents of Andaman and Nicobar, who were in the mainland
and wanted to return following reports of the catastrophe,
said the spokesman. Some relief materials were also despatched
by these flights.
The
IA management under the supervision of a high powered
team had taken the decision to arrange for special flights
to evacuate the stranded tourists in the islands, the
spokesman said.
Meanwhile,
Jet Airways also announced that it will fly medical and
relief supplies from Governmental or other recognized
voluntary agencies free of charge for rescue and rehabilitation
work, from Chennai to Port Blair with immediate effect.
Jet Airways operates one Boeing 737 flight daily between
Chennai and Port Blair. On Monday Jet Airways operated
two Boeing 737 flights between Chennai and Port Blair.
Jet
Airways also operated its special seasonal flight Kolkata-Port
Blair-Kolkata as scheduled on Sunday and also on Monday.
"This flight will continue to be operated daily till
tomorrow. Medical and Relief supplies can also be sent
in the Kolkata-Port Blair sector," Jet spokesperson
said.
Air
India poised to regain top slot
By Deepak Arora
NEW
DELHI, Dec 19: The Air India Chairman and Managing Director,
Mr V Thulasidas, is a man with a mission. His priority
is to ensure that Maharaja regains its past glory in the
least possible time. To ensure this he has set his targets
and is keeping an eagle eye over them. One of his top
priorities in restoring the health of the airline is to
ensure that Air India gets new aircraft, a decision that
has been pending for over a decade. Mr Thulasidas, who
completes his one year as CMD on December 21, has reasons
to be happy. During his short tenure, the national flag
carrier has taken decisions on pending issues of the past
several years. The airline is set to launch a low-cost
carrier, Air India Express, in April next year. It is
also set to launch a cargo carrier next year. And
to top it all the Air India Board has approved acquisition
plan for 50 aircraft. Its subsidiary, Air India Charters
Limited, has decided to acquired 18 Boeing 7367-800W aircraft
for use by Air India Express.
In
an interview with this correspondent, Mr Thulasidas said
that this fleet acquisition plan, which covers a period
up to 2012-2013, provides for an increase in fleet size
from the present 34 to 74 - a net addition of 40 aircraft.
Air-India proposes to increase seat capacity by 12 per
cent annually over this period.
In
a passionate interview with this correspondent in Kuala
Lumpur, he said "our country is one of the largest
and strongest and I don't see why we cannot do well in
the world. Today I have been given the responsibility
to get Air India on the top. And I don't see why we cannot
achieve this target."
In
plain words he has made this very clear to the Air India
staff too. Perform or perish. Either you all go up or
you all will go down. The choice is yours. But he adds
in the same breath that there was no reason why Air India
cannot achieve its past glory of becoming one of the top
airlines of the world. He said "the unions are supporting
the management. We also are receiving excellent support
from the Minister of Civil Aviation, Mr Praful Patel,
and the Government."
Mr
Thulasidas said "Indian travel market is booming.
Five millions are traveling abroad. Three millions foreign
tourists are coming to India. That makes it a total of
8 million air traffic. At present all foreign airlines
are taking away traffic. But if national airlines get
a good part of this traffic it is good for the national
economy."
The
Chairman and Managing Director said "we are not against
foreign airlines. Let them also come. But let there be
competition and let us all make our national carrier strong
to face the competition." Today, Mr Thulasidas said
"Air India is poised at a very decisive moment. It
needs to grow in size to meet the competition from the
large international airlines. It has to be profitable.
The service has to be top class and productivity has to
be good."
The
CMD said "This is a mission. It is not just my mission.
There are people who are proud to see an Air India aircraft
in their own country. People plead to us to give them
a chance to fly Air India."
He
said "right now the airline is increasing its fleet
strength through the lease route. We hope to get approvals
from the Government for 50 aircraft for Air India and
18 aircraft for Air India Express next year." With
this, he said, Air India would have more flights and more
network. "We are also in the process of upgrading
our existing aircraft with internet and telephone facilities
and better seats."
On
December 7, the Board of Air-India Charters Limited, a
subsidiary of Air-India, at its meeting held in Delhi,
had approved the project report for acquisition of 18
Boeing 737-800W aircraft for use by Air India Express.
These aircraft on induction will replace the ones being
taken on lease by AICL for Air-India Express for commencing
operations effective April 2005. While a firm price for
the entire order is yet to be fixed, the deal will be
worth close to $1 billion at the current list price of
$60 million per aircraft.
The
project report revised on the basis of low cost and low
fares was later submitted to the Ministry of Civil Aviation
for securing Government's approval. It may be recalled
that Air-India Board had last year approved the purchase
of these aircraft for its own use but consequent upon
the creation of Air-India Express, which will serve destinations
in the Gulf and South East Asia, the project report was
revised.
On
November 24, The Air-India Board approved the floating
of tenders for inviting offers for acquisition of 50 aircraft
- of which two-third will be on firm basis and one-third
on option. Air-India proposes to acquire three types of
aircraft for its fleet, viz. Medium Capacity Ultra Long
Range aircraft (A340-500/B777-200LR); Medium Capacity
Long Range - 350 seater in three-class configuration (A340-600/B777-300ER);
and Medium Capacity Long Range -- 250 seater in two class
configuration (A330-200/B7E7-8). The airline has now invited
offers from Aircraft and Engine manufacturers and subsequently
undertakes a techno-economic review of the offers received.
Mr
Thulasidas informed that Air India is now connected with
Los Angeles five times a week. Air India that commenced
flight to LA in June this year added two more frequencies
effective December 2. With five flights now available
to passengers per week, travel between Mumbai and Los
Angeles will become more convenient as Air-India is the
only airline to offer direct connectivity between the
two cities, without change of aircraft en route.
These
flights, operated via Frankfurt, also provide seamless
hub and spoke connections from Bangalore, Chennai, Hyderabad
and Kolkata to Los Angeles and convenient connections
on Indian Airlines on the return leg. All the five flights
to Los Angeles will be operated with Boeing 747-400 aircraft,
the First and Executive Class cabins of which have newly
installed flat beds and slumberettes respectively. These
cabins have also been recently retrofitted to provide
personal video entertainment and a choice of popular movies.
The
United States has been a major growing market for Air-India.
To cater to the increased demand, Air-India has been gradually
increasing its presence in Europe and the USA. With the
introduction of the two new flights to Los Angeles, Air-India's
flights to the USA will be increased to 25 per week --
seven to New York via London, seven to Newark via Paris,
six to Chicago -- three each via London and Frankfurt,
and five to Los Angeles via Frankfurt.
By
April 2005 the national carrier is, in fact, proposing
to operate a daily service to Los Angeles and also to
Chicago. Air-India will thus have daily services to each
of its four online stations in the USA -- New York, Newark,
Chicago and Los Angeles by the summer 2005 schedule.
Air
China shares open higher at debut in Hong Kong stock exchange
HONG
KONG, Dec 16: Shares of China's biggest airline Air China
Ltd. opened 6 percent higher at their debut on the Hong
Kong stock exchange on Wednesday, in line with market
expectations. Air China, the third Chinese carrier to
list in Hong Kong, opened at 3.15 Hong Kong dollars, compared
with its initial public offering price of HK$ 2.98. Analysts
had expected the airline's shares to open 5 percent to
10 percent above its IPO price.
The
Beijing-based carrier was listed in London later on Wednesday,
making it the first Chinese company to have a dual listing
in Britain and Hong Kong in recent years. Air China Chairman
Li Jailing, said the airline chose London over New York
because it has a greater exposure to European destinations.
"The dual listing of Air China in Hong Kong and London
is a great milestone for the company,'' Li said.
Ma
Xulun, President of Air China, said: ``The listing enables
us to expand our fleet, strengthen our position as one
of China's largest commercial airlines.'' Air China raised
HK$8.36 billions (US$1.07 billions; euro 812 millions)
by selling 2.806 billion shares, or a 30 percent stake.
The
airline, which has a fleet of 136 aircraft, said the funds
raised from the offering will be used to buy 10 Airbus
and four Boeing jets and to repay debts.
Air
China said it expects a strong rebound in its full-year
earnings, with net profit rising to 2.29 billion yuan
(US$276.57 millions; euro 208.56 millions) _ from 159.60
million yuan in 2003 when the airline was hit hard by
the SARS outbreak. Last month, Hong Kong's flag carrier
Cathy Pacific Airways Ltd. signed a memorandum of understanding
with Air China to buy 9.9 percent of the Chinese airline's
IPO shares.
The
deal, which includes coordinated schedules and joint marketing
efforts, will give Cathay a bigger presence in the booming
mainland market from which the Hong Kong carrier has so
far been largely excluded. Two
other mainland Chinese carriers have already listed in
Hong Kong -- China Southern Airlines Co. and China Eastern
Airlines Corp.
Cosmic
Air launches India operations
NEW
DELHI, Dec 10: Cosmic Air, a leading private carrier of
Nepal, has launched its India operations, offering two
flights daily between Delhi and Kathmandu. The airline,
with a wide network within Nepal, is offering promotional
fare of "Buy One, Get One Free" on the Delhi-Kathmandu
sector. Capt. R. D. Pradhan, Executive Chairman of SOI
group, of which Cosmic Air is a subsidiary, said the airline
aimed at developing Indian market for tourism and business
traffic.
He
said that affordable fares and value for money would be
the hallmark of services of Cosmic Air. The airline plans
to fly to other cities in India such as Mumbai, Bangalore,
Lucknow, Varanasi and Bodh Gaya by early next year. It
is offering promotional fare of Rs. 2,700 plus taxes on
the Delhi-Kathmandu sector till December 31 but tickets
would be valid for a year.
Indian
Airlines posts Rs. 44 crore net profit
By
Sushma Arora
NEW
DELHI, Dec 3: After
a gap of four years, Indian Airlines has made a turnaround,
posting a net post-tax profit of Rs 44.17 crore in 2003-04
as against the net loss of Rs 196.6 crore the previous
year. The IA Board, which met in Mumbai on Friday, approved
the annual accounts of the public sector carrier, which
also made an operating profit of Rs 125.10 crore compared
with an operating loss of Rs 134.72 crore in 2002-03,
according to Mr Sunil Arora, Chairman and Managing Director
of Indian Airlines.
Mr
Arora said Indian Airlines increased its operating revenue
by over 13 per cent, which rose from Rs 4101.5 crore in
2002-03 to Rs 4649.8 crore last fiscal. Noting that the
last time Indian Airlines made profit was way back in
1998-99, he said the company earned profit despite major
hikes in prices of aviation turbine fuel (ATF), which
led to an increase in the operating expenses by 6.81 per
cent to Rs. 4,524.7 crores.
The
CMD attributed the turnaround to several cost-cutting
measures, better utilisation of aircraft, carrying more
passengers, improving overall load and seat factors. He
said the airline saved Rs. 73 crores in 2001-02, Rs. 102
crores and Rs. 190 crores in the next two years on several
counts.
Mr.
Arora said the company showed improvement in its financial
performance despite hike in average domestic ATF price
to Rs. 21,000 per kilolitre during 2003-04 as against
Rs. 19,900 in the previous year. ATF price is a major
cost component of the carrier, about 30 per cent of the
operating cost in India as against global norm of 15 to
18 per cent.
He
said advance purchase (APEX) fares and other discounted
schemes also accounted for 25 to 30 per cent of the seats.
"For all practical purposes APEX fares are here to
stay,'' he added. The public sector carrier recently got
the nod from the Public Investment Board for acquiring
43 aircraft from Airbus and it needs the Government's
approval to begin the price negotiations for the Rs. 10,000-crore
deal that would give it added capacity as well as renew
its aging fleet.
ACAAI
meet helps boost trade between India, Malaysia
By
Deepak Arora
KUALA
LUMPUR: The 32nd annual convention of Air Cargo Agents
Association of India (ACAAI) in Kuala Lumpur was a grand
success by all standards. The ACAAI President, Mr Sam
Katgara, had a beaming smile at the end of three-day fruitful
sessions. And why not? As many as 320 delegates from India
had attended the convention which was addressed by experts
and 'who is who' of the cargo industry. . "Mission
accomplished," he said.
The
convention succeeded in bringing India and Malaysia together
in seizing further opportunities to develop the trade
between the two friendly nations. It also helped in developing
bonhomie and comradeship between the freight agents and
the airlines.
The
Malaysian Deputy Transport Minister, Yang Mulia Tengku
Dato Sari Azlan Ibini Sultan Abu BaKar, opened the ACAAI
annual convention by lighting the tradition Indian lamp.
The Indian Civil Aviation Secretary, Mr Ajay Prasad, the
Indian High Commissioner, Mr R L Narayan, and the ACAAI
President also participated in lighting the lamp ceremony.
In
his key note address, Yang Mulia Tengku Dato Sari Azlan
Ibini Sultan Abu BaKar said "Malaysia has strong
historical links with India, and over the years the relationship
between these two friendly countries has strengthened.
India continues to be a valuable trading partner of Malaysia."
The
Minister stressed on the need for consolidating the strengths
and pooling of resources by the freight forwarders in
the light of horizontal and vertical integration that
is taking place in the segments of airline industry. Therefore,
he said, the airlines and freight forwarders were in the
process of understanding and appreciating the need for
closer relationship.
The
Civil Aviation Secretary, Mr Ajay Prasad, assured that
the much-awaited new Civil Aviation policy would see the
light of the day some time early next year. He assured
better infrastructure in terms of ultra modern airports
and cargo hubs. He said the restructuring of Delhi and
Mumbai airports in collaboration with new private partner
would be completed by June next year.
Mr
Prasad assured the delegates that a new thrust is being
given to cargo in the country. He assured that many new
cargo complexes would be developed at many airports. He
informed that Indian Airlines and Air India would launch
dedicated freighter services sometime next year.
This
is the third convention in a row being held outside India
and it displays ACAAI's confidence in attempting to reach
out and expose to the trends and influences in the Cargo
Industry, beyond India's shores and skies. The 30th annual
convention was held in Colombo, Sri Lanka and the next
one in Dubai, UAE. The theme of this year's Kuala Lumpur
convention was "Airlines & Forwarder: Leveraging
their Strengths."
The
top people from the cargo and airline industry addressed
the six business sessions that helped the trade partners
in leveraging their strengths and move forward to a better
and brighter tomorrow. Some of the top names that were
present included the Indian Airlines Chairman and Managing
Director, Mr Sunil Arora; the Air India Chairman and Managing
Director, Mr V Thulasidas; the Senior General Manager,
Malaysia Airlines, Mr J J Ong; the FIEO Chairman, Mr Rafeeque
Ahmed; and the Coke Vice President, Mr Adil Malia.
The
convention also decided that ACAAI would play an active
role by recommending the views of the industry in the
formation of the civil aviation policy as advised by the
Civil Aviation Secretary. It also called for business
transparency and engaging in constructive dialogue with
the partners on issues concerning both to strengthen the
relationship.
In
his presidential address, Mr Sam Katgara said it was well-declared
policy of our two countries to co-operate with each other
under the Southeastern umbrella. This Convention, he said
would certainly strengthen the regional co-operation and
close relationship between the Air Cargo Industry in India
and Malaysia.
Mr
Katgara said in the global cargo scenario, cargo growth
outstripped passenger levels. "It is heartening to
know that cargo traffic growth improved by 12 per cent
in the first five months of this year compared to the
same period in the year 2003. The global cargo traffic
is 13.6 per cent higher and has outstripped passenger
traffic levels, which are 8.8 per cent."
He
said "traffic growth for the first five months of
2004 is testimony to the resilience of air transport.
Not only have we recovered from the impact of SARs and
war in Iraq, all major regions of the world are reporting
traffic levels above those of 2000 - the last normal year
for the industry. Despite the shocks that have rocked
the airline industry in recent years, the underlying industry
growth rate is 3.6 per cent. Efficiency gains and cost
cutting remain priorities to return the industry to health."
Highlighting
the tradition warm ties between the countries, the Indian
High Commissioner, Mr R L Narayan, the trade and economic
ties between India and Malaysia were growing in leaps
and bounds. He hoped that Malaysian Government would take
note of the tremendous opportunities being offered by
India in building its infrastructure network.
IA
en route to numero uno slot
By Deepak Arora
NEW
DELHI: One must congratulate the new Congress-led United
Progressive Alliance (UPA) Government for taking a quick
decision of allowing the public sector Indian Airlines to
acquire new aircraft. The move is right as Indian Airlines
had wanted to purchase new aircraft to meet the growing
competition from private carriers, Jet Airways and Air Sahara,
replace its ageing fleet and arrest the depleting market
share. However, the past non-Congress led Governments had
dithered in taking this bold decision. As a result the market
share of the public sector airline had been steadily falling.
Last
Wednesday, the Public Investment Board (PIB), comprising
Finance, Expenditure and Civil Aviation Secretaries, approved
the Indian Airlines plan to acquire 43 new Airbus aircraft
at a cost of Rs 9,475 crore. The Civil Aviation Secretary,
Mr Ajay Prasad, said the price of 43 aircraft had come down
from Rs 10,089 crores to Rs 9,475 crores. The PIB reduced
the projected amount approved by the Indian Airlines Board
in view of the exchange rate fluctuations and a stronger
rupee.
Welcoming
the PIB approval, the IA Chairman and Managing Director,
Mr Sunil Arora, said "the entire IA family is relieved
and elated. We are thankful to the Ministries of Civil Aviation
and Finance that they finally took cognizance of the long
felt need of the airline to replace and add capacity."
Mr Arora said "this would definitely mean a quantum
upgrade in terms of further improvement of the product.
If the competition has aircraft of three to five years of
age, it becomes difficult for us, despite our best efforts,
to cope up with aircraft of older vintage."
In
fact, he said, "its tribute to the entire operational
staff that they have been able to enhance the utilization
of Airbus aircraft from 2,800 to 2,900 hours per annum to
3,400 hours per annum in the last four years. However, if
they are given new equipment they can be reasonably expected
to do much better."
Mr
Arora said "in the absence of equipment, the comparison
of Indian airlines of Indian Airlines with the competitors
is almost like comparing apples with oranges. There are
other factors pertaining to product upgrade which are constantly
being looked into, but the matching equipment by itself
is almost 50 per cent of the battle won. The rest is to
enhance maintenance, cleanliness of the cabin, in-flight
service, cuisine and all other aspects related to passenger
traffic."
The
proposal has been hanging fire since March 2002 when the
Indian Airlines Board cleared it. Unlike the private carriers,
it needs government approval before placing orders for the
planes. This will be the first fleet acquisition by the
airline in 15 years. The last purchase took place when Rajiv
Gandhi was prime minister.
The
proposal would now be put up before the Cabinet Committee
on Economic Affairs (CCEA), according to Mr D Swarup, Expenditure
Secretary. The Finance Ministry has also agreed to provide
sovereign guarantees to help Indian Airlines raise funds
in the international markets for purchasing the aircraft.
Around
90 per cent of the deal will be funded through external
commercial borrowings and the remaining 10 per cent will
be funded by way of government equity infusion in Indian
Airlines. It is expected that the final Cabinet approval
would come through by January and the aircraft would start
arriving in the later half of 2006. All aircraft will be
fitted with CFM-56 engines made jointly by General Electric
Co. and Snecma, a state-controlled French aerospace company.
Indian
Airlines would now commence price negotiations with Airbus
for the planes. Under the deal, Airbus has agreed to invest
in India 30 per cent of the total value of the airframes
(the aircraft minus the engine). The investment would be
for buying aircraft doors from Hindustan Aeronautics (HAL)
and software from Indian firms. The Airbus Senior Vice-President,
Mr Kiran Rao, has welcomed the announcement.
India's
air travel market is small even though the country has one
of the world's fastest-growing economies. The air travel
market is small because of high fuel cost and high taxes
that inflate the air fares. It is for this reason, India's
billion-plus people use the subsidised rail network. Only
15 million people travelled by air in Asia's fourth-largest
economy in 2003-2004, a little more than the number who
use the much cheaper rail network in a single day.
Still,
air travel demand is expected to rise by nearly 9 per cent
annually for the next 20 years as incomes rise at a fast
clip, fuelling demand for 290 new jets valued at $22 billion,
according to Boeing. The Indian Airlines deal was crucial
to both Airbus and arch-rival American company, Boeing,
caught in a fierce battle for market share in a recovering
global aviation industry. Airbus overtook Boeing as the
world's biggest commercial jet maker in 2003.
Airbus
is 80-percent-owned by European Aeronautic Defence &
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