Jet gameplan to get bigger share of global passengers

Jet Airways plans to increase capacity on international routes by reconfiguring existing aircraft and adding new ones

Jet Airways will ramp up capacity on international routes through a mix of aircraft reconfiguration and deployment the Airbus A330-300 planes, which have about 30 extra seats compared to A330-200. The move will enable Jet Airways to take on competition on the London and US routes, without increasing its fleet size.

International operations constitute about 60 per cent of Jet Airways’s revenue. Currently, it operates a mix of Boeing 737s (on Gulf routes), Airbus A330-200 (to the US, Singapore and Hong Kong) and Boeing 777-300s (to London).

Next month, Jet will add an Airbus A330-300 on lease, the first of the four such planes, which will be delivered till next April. Jet Airways has 11 Airbus A330 planes in its fleet, each seating 220 passengers. The new version will have about 30 extra seats.

The airline is also reconfiguring five Boeing 777 planes by adding more seats in the economy section. The economy section in the Boeing 777 has nine seats in a row and the airline will be adding an extra seat in each row, making it 10 seats in a row. The reconfiguration exercise will be complete by January. The airline has leased out its five 777s to Thai Airways.

Jet Airways posted a consolidated loss of Rs 166 crore in the second quarter FY13.

Although losses narrowed down from Rs 713 crore in same period last year, the airline continued to bear the brunt of high operating costs.

In the past few months, it scaled back capacity and withdrew from loss making sectors such as Johannesburg and New York. In the second quarter, the load factor on international routes dropped, but yields improved 28 per cent. However, with the cost structure remaining high, the unit costs increased 16 per cent. International operations recorded a pre-tax profit of Rs 45 crore, the airline said in its investor presentation.

Jet Airways will retain the existing fleet size as it is planning to sell or lease the Airbus A330-200s in its fleet.

The A330-300s will give us better economics with more seats at almost the same costs. The planes will be deployed on the India-Brussels-US routes. We are in the process of selling and leasing out the excess capacity of the Airbus A330-200s,” said Jet’s CEO Nikos Kardassis.

According to Kardassis, the airline is still to finalise the new routes for the next summer, but sources indicated that it may deploy the A330-330s on new sectors such as Munich. The airline has secured the civil aviation ministry’s permission to launch flights to Munich and Frankfurt, to expand its European network. These flights would help Jet align itself with German airline Lufthansa with which it proposed a code-sharing alliance and join the Star Alliance. However, Jet is yet to receive the government’s nod to join the alliance.

According to Kapil Kaul, CEO - south Asia, Centre for Asia Pacific Aviation (CAPA), International operations continue to be Jet’s strength. “The Q2 international results were better than expectation,” he said. CAPA expects the airline to do code-sharing with Lufthansa and join the Star Alliance before end of this fiscal year.

http://www.business-standard.com/india/news/jet-gameplan-to-get-bigger-shareglobal-passengers/491714/

Diwali air fares will burn a big hole in your wallet

MUMBAI: With Diwali less than a fortnight away, air fares are already at their peak. While seats are fast running out due to last-minute bookings, no direct flights are available on some sectors. So, if you are planning to travel weekend-to-weekend (from November 10-18), a round trip to any of the metros or some Tier-II cities would cost you nothing less than Rs 13,000-18,000. In some instances, the lowest available fares are as high as Rs 20,000. Although the demand, according to tour operators, has been lower than last year, the proximity to the festival of lights and limited seats in the market have combined to push the fares to new heights.

According to tour operators and travel portals, a round trip ticket to Delhi is priced between Rs 16,000-19,000. Delhi, one of the most well-connected cities in the country, is already one of the most expensive destinations by air. During Diwali, the national capital is one of the most popular destinations in the country-which, said operators, pushes up prices. Kolkata, another hot favourite during the festival, is also the most expensive this season.

A return fare to the city now costs anywhere between Rs 20,000 and Rs 23,000. Also, only a couple of direct flights are now available for Kolkata; the rest go either through Vishakapatnamor Bangalore.

Mumbai-Chennai, a sector that remains more or less unaffected by the steep fluctuations in fares, has also seen a jump in fares. A round trip to Chennai would set travellers back by at least Rs 12,000-13,000. No direct flights are available to the most travelled Tier-II cities during Diwali-Jaipur and Lucknow. A return fare to Jaipur is now pitched at Rs 15,000-17,000; tickets to Lucknow are even dearer at Rs 21,000-25,000.

"The rise is in anticipation of a Diwali rush. Many people book one or two weeks in advance, hence fares always soar as the festival approaches. The demand has suddenly gone up closer to the festival. Also, since most people had booked in advance, there are few seats available, causing a natural rise in fares," said Rajesh Rateria, managing director, Cirrus Travels.

Rateria said that the fares have been generally high this season compared to previous years. "The fares peak during Diwali; however, this year there has been a general hike in prices due to factors like the hike in airport charges and fuel costs, which have cumulatively added to the cost of operations."

Pradip Lulla, director, Cupid Travels, pointed out that the absence of Kingfisher Airlines inventory in the market has caused a serious drop in the number of available seats, and consequently sent fares northward. Lulla said that the number of flyers in general has come down this year compared to the last few years, but a paucity of seats has kept the fares high.

Agents, however, pointed out that travellers can cut down on the cost of fares if they choose to travel back before November 18. Air fares right after Diwali are at least 20% lower than those on the weekend. For instance, if one chooses to travel back on November 16 or 17, a ticket from Delhi to Mumbai would cost Rs 5,500, thereby bringing down the round trip expenses by at least Rs 2,000. Similarly, a ticket from Jaipur to Mumbai on these dates is available for Rs 4,500, bringing the total trip cost down by at least Rs 3,000.

"The fares are low right after Diwali as many people won't travel till Bhaubeej. Most travellers are set to return by Sunday, November 18. Hence, those who want to cut down on the travel expense a bit can opt for those days and get better deals," a Fort-based agent said.

http://timesofindia.indiatimes.com/business/india-business/Diwali-air-fares-will-burn-a-big-hole-in-your-wallet/articleshow/17012545.cms

Air fares soar during Diwali high

MUMBAI: As demand for air travel is expected to peak during the Diwali week, fares on flights scheduled for the next week are comparatively cheaper than those departing the week after that. 

In short, because of the festive season , a seven-day advance purchase ticket has become cheaper than a 14-day one on routes to the Middle East and South East Asia. The difference in airfare is in the range of 20-40 %. 

Diwali falls on November 13 and airfares on flights departing that week are sky-high and continue to climb. The highest airfares are being quoted on the Delhi-Singapore direct flights. The cheapest return fare, taxes included, on direct flights between these two cities for travel around mid-November was in the range of Rs 36,000 on Friday. However, if you are planning to fly toSingapore next week, you can buy a return ticket on a direct flight for Rs 31,000. 

"With Kingfisher Airlines pulling out from international routes, the supply has gone down and with increase in demand brought by the festive season, the fares are high,'' said Bathija Travels director Anoop Kanuga. 

"The high airfares are a result of increasing cost of operations into Indian airports , shortage of seats, and peak season demand,'' said Air Passenger Association of India president Sudhakara Reddy. 

The other expensive route this Diwali is the Delhi-Kuala Lumpur one. Return air fares on non-stop flights between Delhi and Kuala Lumpur, scheduled around mid-November , are in the range of Rs 40,000. 

But for flights departing next week too it is Rs 40,000, though the return leg is not a direct flight. For to-and-fro direct flights, the fare is Rs 50,000. Similar trend in fares were seen on direct flights from Delhi to Dubai, Singapore, Bangkok . "Since supply has gone down greatly, the effect can be seen on airfares,'' said Travel Agents Association of India president Iqbal Mulla. 

http://timesofindia.indiatimes.com/business/india-business/Air-fares-soar-during-Diwali-high/articleshow/17071590.cms

Notification according international status to Tiruchi airport issued

Ministry of Civil Aviation has issued a notification declaring Tiruchi airport an international airport. The notification has been issued following the Centre’s decision to confer international status on airports in Tiruchi and a few other cities across the country. The move is expected to lead to better infrastructure at the airport and attract some of the major air operators to introduce their services to the city.

The Airports Authority of India had already drawn up a master plan for airport development, which includes a proposal for doubling the passenger handling capacity. The terminal building has a capacity to handle 400 passengers at a time now. However, the pace of development at the airport would depend on the completion of the land acquisition process for expanding the airport runway from 8,000 feet to 12,500 feet so as to handle wide-bodied aircrafts.

Meanwhile, speaking at the valediction of the Vigilance Awareness Week observation at the airport organised by the Airports Authority of India (AAI) on Saturday, Airport Director S.Dharmaraj said that the notification has been issued fulfilling a long-pending demand from the people and industry.

Mr.Dharmaraj emphasised the need for revisiting school curriculum to inculcate values of honesty and integrity into the younger generation as corruption could retard the country’s progress and development.

Shailesh Kumar Yadav, City Police Commissioner, who gave away the prizes to winners of various competitions organised as part of the observation, said that lack of vigil could lead to the twin evils of corruption and crime. Those in the government sector should stick to the procedure and make written records of all their actions to reduce the scope for corruption.

A.Radhakrishnan, deputy general manager (engineering-civil), AAI, S.Subramaniam, manager, cargo, S.Sandeep Kumar, deputy commandant, Central Industrial Security Force, and A.R.Kumaran, junior executive, AAI, spoke.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/notification-according-international-status-to-tiruchi-airport-issued/article4063633.ece

AI decision to withdraw two flights draws flak

The Odisha Chapter of Indian Association of Tour Operators (IATO) here on Sunday criticised the decision of Air India to withdraw two of its flights connecting Bhubaneswar with Kolkata and Chennai from Monday.

“The decision has been taken just before the beginning of the tourist season and will badly hamper not only the tourism sector but also the trade, commerce and industry of the State,” IATO State unit president J.K. Mohan said in a letter to Union Civil Aviation Minister Ajit Singh. The letter was released at a press conference here on Sunday.

Mr. Mohanty said, “Various hotels have been booked for a large number of conferences during the months of November and December 2012 and January 2013. All these conferences in Odisha will be badly hit as delegates from Chennai, Hyderabad, and Kolkata are supposed to arrive in Bhubaneswar through the Air India flights.”

“Earlier, Air India withdrew flights to Bangalore, Raipur, Varanasi, and Hyderabad from Odisha. We deeply regret the decision of the Air India which says this is a business decision,” he said.

Mr. Mohanty pointed out that all the flights connecting Bhubaneswar were full as the number of corporate and business travellers to the State was largely increased due to the heavy industrialisation.

Besides, the State was aggressively planning to promote the Buddhist tourist sector and for this the IRCTC would be extending its Mahapari Nirvan Express and two trains were scheduled for December and January. Many of these tourists decided to go back from Bhubaneswar to Chennai towards their onward journey to Sri Lanka and other places, and even they would be badly affected, he said.

Moreover, the State government also accepted a proposal to lead a delegation of entrepreneurs to have a meeting with the Singapore Chamber of Commerce in the last week of November 2012, he said, adding the cancellation would result in affecting investment flow to the State.

http://www.thehindu.com/todays-paper/tp-national/tp-otherstates/ai-decision-to-withdraw-two-flights-draws-flak/article4066284.ece

International status for Tiruchi airport

The Ministry of Civil Aviation has issued a notification declaring Tiruchi airport an international airport.

The move is expected to lead to better infrastructure at the airport and attract some of the major air operators.

The Airports Authority of India had drawn up a master plan for airport development, which includes a proposal for doubling the passenger handling capacity.

However, the pace of development at the airport would depend on the completion of the land acquisition process for expanding the airport runway from 8,000 feet to 12,500 feet to handle wide-bodied aircrafts.

Meanwhile, speaking at the valediction of the Vigilance Awareness Week observation at the airport organised by AAI on Saturday, Airport Director S.Dharmaraj said that the notification has been issued fulfilling a long-pending demand.

Mr.Dharmaraj emphasised the need for revisiting school curriculum to inculcate values of honesty and integrity into the younger generation.

Shailesh Kumar Yadav, City Police Commissioner, who gave away the prizes to winners of various competitions, said that lack of vigil could lead to the twin evils of corruption and crime.

Those in the government sector should stick to the procedure to reduce the scope for corruption, Mr. Yadav said.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/international-status-for-tiruchi-airport/article4066297.ece

Dragonair launches 4 times-a-week Kolkata-Hong Kong service

Kolkata, Nov 3:  

Dragonair, a sister concern of Cathay Pacific airlines, has announced a four-times-a-week service from Kolkata. The carrier will offer direct services between Kolkata and Hong Kong. It operates the Airbus A320 aircraft. The first flight from Hong Kong to Kolkata came in on Saturday. Flights from Kolkata to Hong Kong will be available on Monday, Thursday, Saturday and Sunday. For the airline, Kolkata is the second Indian destination after Bangalore.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/dragonair-launches-4-timesaweek-kolkatahong-kong-service/article4065242.ece

Madhya Pradesh plans air cargo hub

The country’s air cargo sector, it appears, is set for an upswing. Reports have said that in partnership with private firms, the Madhya Pradesh Government is mulling to set up an air cargo hub either at Bhopal or at Indore on over 500 hectares being identified close to the existing airports.

The decision comes close on the heels of the proposal to have a huge multimodal cargo hub at Nagpur, signifying that the country’s central part is holding out much promise for such facilities.

It is learnt that Chennai, too, is waiting for the commissioning of the new air cargo complex. Spread over 58,000 sq mt, the new facility, to be complete with automatic storage and retrieval system, is expected to handle 60,000 tonnes annually, up from the present 25,000 tonnes or so.

The jump in present capacity, it is hoped, will help serve more carriers, including exclusive freighters better. The new complexes will certainly address the vexed issue of warehousing capacity constraint.

However, unless other issues like the seamless inter-modal connectivity, standardisation and rationalisation of processes and procedures also receive due attention, mere construction of some buildings and installation of some equipment will not yield the desired benefits.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/madhya-pradesh-plans-air-cargo-hub/article4065218.ece

More AirAsia flights from S. India

AirAsia, a low cost airline, is increasing its flight frequency from Tiruchi (Tamil Nadu) and Kochi (Kerala) to Kuala Lumpur. Three additional flights have been added from Kochi and Tiruchi to the Malaysian capital. The flight frequency from Tiruchi has increased to 14 times a week from 11 times. The flight frequency from Kochi has increased to ten times a week from seven times.

The new flights from Tiruchi will begin from December 2, while those from Kochi will start from December 1. AirAsia is offering a special promotion to celebrate the increase in the number of flights, which include an offer to fly from Kochi to Kuala Lumpur with all-in-fares starting at Rs 3,339 and from Trichy to Kuala Lumpur for as low as Rs 3,899. Guests can book this special promotion offer from Friday till November 11 for the travel period of December 11 to February 5.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/more-airasia-flights-from-s-india/article4065214.ece