Friday 30 March 2012

Aviation may be down, but training institutes still fly high


An instance is Vijay Mallya's Kingfisher Academy. His aviation business is hitting the headlines for all the wrong reasons, but students from the aviation academy are in demand. "Our academy is doing much better than our aviation business. World over, bulk carriers like Emirates, Qatar, Etihad are all growing and recruiting. Besides, many cabin crew members have resigned from India, as international players offer a better salary. Once we train students, it is not mandatory for them to join Kingfisher. So, there is continuous demand for air hostesses," said a senior official from the Kingfisher Airhostess Academy.
Industry sources say the Kingfisher Academy has shut shop at various centres but the latter denied this.
For some others, things have not been that rosy. The Air Hostess Academy, for instance, shut shop in 2009-10 and has had several complaints filed against it for failing to refund student fees. Flying Cats, another institute, recently shut down; a 'Fashionista School of Fashion Technology' is now available on the earlier contact number of Flying Cats.

In-house Training is another flying school whose present whereabouts are not known. Though their website still exists, the contact numbers on it could not be reached. A few numbers dialled by Business Standard at some centres said the institute had shut down.

Issues
"Cabin crew academies are not regulated in India and therein lies the basic problem. Unlike Pilot Training Academies, the DGCA (Directorate General of Civil Aviation) does not regulate air hostess academies, so anyone with available infrastructure can open one. Therefore there could be dozens of fly-by-night operators in large and small cities, without anyone having a finger on the actual number," says Rajan Mehra, co-founder and executive director of Asia Pacific Academy.

The boom in the airline business in 2006-2009 led to a huge requirement of cabin crew for airlines. Sector experts say many saw this as an opportunity to make big money. "Neither were these academies equipped to handle so many students, nor were a majority of these students the cabin crew material. They were all promised lucrative jobs in airlines. But after the course, most students were without jobs," added Mehra.
India has over half a dozen branded aviation training institutes. Most of these offer a one-year diploma after the higher secondary (+2) examination, which prepares the candidates (age between 17 and 24 years) to join cabin crew of airlines. Most academies charge Rs 1.5-1.75 lakh for a year's course and Rs 70-75,000 for a six-month course. Fly-by-night operators sometimes charge much less to build up volumes, say experts.
Air hostess training requires specialised courses in grooming, etiquette, communication skills, aviation, safety and handling emergency situations. Hence an academy requires highly qualified instructors, with experience gained from roles in aviation and hospitality. Most academies, however, cut costs by hiring inexperienced faculty, lacking qualifications or expertise to be able to teach and guide students, according to industry players.

The anchored ones
But some like Frankfinn Institute of Air Hostess Training, Aptech Aviation and Hospitality Academy, and Universal Training Academy are going great guns.

Frankfinn has set up around 200 centres, with more in the offing. Samir Walia, its president, marketing, says the institute got jobs for at least 5,000 students in the past year.
Universal Aviation Academy, based in Chennai, has had a fairly good placement season. Sarita Singh, placement in-charge, said demand for ground staff at airlines had not diminished.The institute offers 70-75 per cent placements every year.
At Kompass Aviation, though there was a standstill in placements three months earlier, the situation is back on track, says Amrutha Lily Jathanna, senior HR professional at the institute looking after these. The institute offers 85 per cent placement and Jathanna expects the situation to bounce back after April. Cabin crew placements are doing better than others at the institute.
Industry insiders say institutes which had only concentrated on air hostess training had to face the brunt of a hiring crisis and eventually shut down.
"The big players have an array of courses that help them overcome aviation crises, as a slowdown is witnessed in cabin crew recuitment and not ground staff hiring and similar areas," said a placement official of an aviation institute.
Head-hunters say the aviation sector may be going through a rough patch, but it's too early to panic. "Every sector has its business cycle of ups and down. The sector is not hiring rapidly. But in the next three to four months, we expect the situation to stabilise," said E Balaji, MD & CEO, Ma Foi Randstad.
Aptech Aviation and Hospitality Academy, earlier known as Avalon Academy, says the aviation industry's situation has not impacted it.
"At our institute, we are also seeing smaller private airports sending their employees for skill training. Further, we are focusing on airport managment and ground handling, apart from courses for air hostess training. This makes us well diversified," said Shrutidhar Paliwal, vice-president (corporate communications and media relations).
He said Air India Singapore Airport Terminal Services had recruited from them this year. The institute has a placement record of 85-90 per cent and has both national and international airlines coming for placements.

Aviation sector passing through turbulent times


NEW DELHI: The aviation sector in the country is facing many challenges like decrease in passenger movement, high fuel costs, high airport charges and inadequate fares recovery due to intense competition. Industry sources have placed `26,000 crore as the operational losses for 2007-2010 period and anticipated `10,000 crore for 2011-12 alone.

While the passenger movement has decreased from 16.6 per cent to 9.3 per cent in January-February this year as compared to last year, the aircraft movement reduced from 19.7 per cent to 11.2 per cent.

The setback is largely attributable to high fuel costs.

The sector had also suffered from inadequate fares recovery due to intense competition. Almost all the airline were operating below the cost-meeting margins, bringing the sector down as a whole.

Alarmed by the sudden losses that all the airline (except Indigo) incurred, the Aviation Ministry woke up to gathering key details. Apart from understanding whether these losses were making airline cut corners and not operate mandatory routes as per the Route Dispersal Guidelines, the ministry also set up an inter-ministerial group to analyse factors causing the problem.

Airline were asked to submit a recovery plan in order to avail further relaxations from banks. Recently, the ministry also gathered data from the airline on the extent of the External Commercial Borrowings that they would want when the sector is opened up. One airline, Air Asia, had informed about suspension of its services from Mumbai and Delhi.

Court seeks info on airport clearances


A Division Bench of the Kerala High Court on Thursday directed the Centre and State governments to provide details of clearances given for constructing a greenfield airport in Aranmula.
The Bench comprising Acting Chief Justice Manjula Chellur and Justice V. Chitambaresh gave the directive on a writ petition filed by poet Sugathakumari and two others challenging the sanction given by the State government for constructing the airport.
According to the petitioners, the proposed airport did not have the requisite environmental clearance. It was being constructed after filling paddy fields. Therefore, it was against the provisions of the Kerala Conservation of Paddy and Wetland Act and Rules. The clearance had been granted under the provisions of the Kerala Industrial Single Window Clearance Board and Industrial Township Areas Development Act.
They said that the Act did not empower the State government to notify a particular area as industrial and accord clearance for the project in the area. It was applicable only to projects coming up in declared industrial areas. They contended that the project would damage the area's ecosystem. They also pointed out that there was no need for another airport in Aranmula as three airports - Thiruvananthapuram, Nedumbassery, and Navy airport - were located within 150-km radius of Aranmula.

Kingfisher, among several airlines whose cheques to AAI have bounced


During 2011, Kingfisher Airlines presented five cheques totalling Rs 122.07 crore to the Airports Authority of India (AAI), which could not be encashed due insufficient funds in the accounts of the airline.
This has been revealed in an RTI filed by a Pune-based RTI activist, Mr Sanjay Ramesh Shirodkar.
Three cheques worth Rs 65 crore were drawn on Axis Bank, Mumbai, while the remaining two were on ICICI Bank, the data provided by AAI in the RTI reply shows.
The RTI reply also shows that Kingfisher is not the only airline whose cheques to AAI bounced. Between January 1, 2000 and February 14 this year, several domestic and international airlines gave cheques to AAI that bounced.
The domestic airlines include IndiGo, Jet Airways, JetLite while the international airlines include Emirates and Qatar Airways.
Interestingly, the cheques that bounced have been those that have been presented at the Ahmedabad and Pune airports only. The State-owned AAI owns and manages 92 airports and 28 civil enclaves at defence airfields and provides air traffic services over the entire Indian airspace and adjoining oceanic areas.
While the law allows a person or institution who presents a cheque which bounces to file a suit for recovery of funds, it was not immediate clear what action AAI initiated against these airlines.
Meanwhile, Jet Airways maintained that there had been no instance of payments due to AAI.