Friday 18 January 2013

Air India awaits report on Dreamliner


New Delhi: The grounding of six Air India Boeing 787 dreamliners has put the spotlight on the total order for 27 of these aircraft placed by the national carrier in 2005. 

Air India had acquired six of these aircrafts while 21 are yet to be delivered. When asked whether Air India could cancel the orders for the 21 aircraft following the global controversy over the battery systems of these aircraft, civil aviation minister Ajit Singh said, “no decision would be taken in haste” and that one would have to wait for some more time before some clarity emerges. He pointed out that Boeing has 800 orders world-wide for these aircraft.

Highly placed civil aviation ministry sources have already indicated that Air India would seek compensation for the grounding. 

The aircraft were grounded following an airworthiness directive issued on Thursday by the US Federal Aviation Agency (FAA). AI may receive an interim report soon on the status of the aircraft and its battery systems from the manufacturer Boeing.



Air India to get benefit of Rs 480 cr from ATF purchase

Discount on aviation turbine fuel offered by oil companies is Rs 5,000 a kilolitre

Air India has struck a deal with oil companies to buy aviation turbine fuel (ATF) at a discount of about seven per cent. This would help the airline save Rs 480 crore on fuel consumption annually.
According to a senior civil aviation ministry official, the discount offered by the oil companies is about Rs 5,000 a kilolitre. The discount offered to Jet Airways is about Rs 3,000 a kilolitre. The official added only German airline Lufthansa was offered a hefty discount.
Discounts by oil companies depend on factors such as customer loyalty and timing of payments. In the last five months, Air India has paid its dues to oil companies on time. It is expected the carrier would pay about Rs 4,000 crore of previous dues to oil companies in April.
“The oil companies were not offering us any discounts, as Air India was not paying its dues to them. Now, oil companies have re-negotiated ATF prices with Air India, as the airline’s performance has improved and we are committed to paying all arrears to oil companies by April,” the official said. Air India would clear all dues to airport operators, oil companies and pay performance-linked incentives to its employees by April, he added.
Air India meets 60 per cent of its annual ATF requirement of about 960,000 kilolitres from Indian Oil Corporation and the rest from Bharat Petroleum Corporation, Hindustan Petroleum Corporation and other private companies. Annually, Air India spends about Rs 6,700 crore on ATF.
The oil ministry has agreed to bring ATF under the ‘notified commodity’ list, and it is expected this would make the fuel’s pricing transparent. In India, sales tax on ATF is about 24 per cent, second only to Bangladesh (27 per cent). For international operations, no sales tax or value-added tax is charged on ATF consumption.

AI expects interim report on Dreamliners from Boeing, FAA


Air India expects an interim report from Boeing and US Federal Aviation Administration (FAA) in a day or two on their probe into the technical problems faced by Dreamliner aircraft, all 50 of which have been grounded across the globe.

Air India expects an interim report from Boeing and US Federal Aviation Administration (FAA) in a day or two on their probe into the technical problems faced by Dreamliner aircraft, all 50 of which have been grounded across the globe. "We expect at least a preliminary or an interim report from the manufacturer and FAA in a couple of days, which might show us the way ahead," airline sources said here.


Air India has grounded six of these planes in its fleet. Once a report is received, the corrective measures that need to be taken by aviation regulator Directorate General of Civil Aviation (DGCA) and the national carrier would become clear and "we can move forward to handle the problem", they said.

The entire 50-strong global fleet of Boeing 787 Dreamliners, including six of Air India, were grounded yesterday after US regulator FAA asked airlines to stop their operations temporarily till a battery fire risk was corrected. Asked whether Air India would be seeking compensation from the US aircraft maker regarding the losses it would suffer due to the grounding of these planes, the sources said compensation was an issue but the airline was not considering it right now.

Meanwhile, Civil Aviation Minister Ajit Singh said Air India would be entitled to "some compensation" but "this can be discussed with Boeing when the time comes... These problems will entitle Air India some reimbursement but first let us get some clarity on the problem." Asked whether there would be any move to prune the orders for 27 B-787s, he said, "No. First let us get some clarity as to what is the problem, how long it will take to rectify it." He said most of the orders of Boeing are for these planes, numbering around 800. "They have worked over ten years to develop this aircraft."


Lenders want Mallya to pump Rs 1k cr more into KFA


MUMBAI: Bankers have asked Vijay Mallya to pump at least Rs 1,000 crore fresh capital into the grounded Kingfisher Airlines as a large chunk of the Rs 650-crore proposed to be brought in by Mallya would go towards meeting the airlines' liabilities to state bodies.

Banks, which are owed close to Rs 8,000 crore from the beleaguered airline, had a meeting with
KFA executives in Mumbai on Friday. The meeting took place at State Bank of India's main branch — a heritage office of the bank, which was the headquarters of the erstwhile Imperial Bank.

From the promoter's side the meeting was attended by Sanjay Agarwal, chief executive, KFA, and Ravi Nedungadi, chief 
finance officer, UB group. Mallya was not present at the meeting. Besides what it owes to lenders, Kingfisher Airlines has dues to state bodies including the airport authorities and the revenue department. Mallya had proposed to revive the airline by infusing Rs 425 crore last year and in a subsequent communication promised to infuse Rs 650 crore. The airline has now sought additional guarantees from banks.
Bankers, however, said that until past dues are cleared and promoters bring in additional capital of at least Rs 1,000 crore, KFA cannot expect any guarantees. According to the lenders, the biggest security that they have against their loan is the Kingfisher brand. They also hold in pledge some shares in the liquor business besides a couple of properties — the Kingfisher building near Mumbai airport and the Kingfisher Villa in Goa. Liquidating assets would enable lenders to realize only a small fraction of their dues.

In addition, the lenders also hold a large chunk of shares in the airline as a result of an earlier loan conversion. 
SBI, ICICI Bank, IDBI Bank and Bank of India together hold around 9%.

American Airlines Reveals New Livery, New Logo, New Look


FORT WORTH, Texas, Jan. 17, 2013 – It’s a new year and a fresh new look for American Airlines as the company today unveils a new logo and exterior for its planes, including the already delivered Flagship Boeing 777-300ER aircraft set to fly on Jan. 31.  In addition, American plans to continue taking delivery of new planes this year as part of its historic orders for 550 new aircraft.  The unveiling of the new logo and livery is the latest step forward in American’s ongoing journey toward building a more modern travel experience for its customers.
“Since placing our landmark aircraft order in July of 2011, we’ve been building anticipation toward a moment in time when the outside of our aircraft reflects the progress we’ve made to modernize our airline on the inside,” said Tom Horton, American’s Chairman and CEO. “While we complete the evaluation of whether a merger can build on American’s strengths, we remain steadfast in each step we take to renew our airline, a step we take with great respect for our name American. Today marks important progress in that journey as we unveil a new and updated look for the first time in more than 40 years.”
American is preparing to take delivery of hundreds of new, lighter aircraft featuring composite materials that must be painted.  Since the polished metal look was no longer an option, the importance of the paint selection became critical to honoring American’s silver bird legacy. Silver mica paint was chosen as a way to maintain the silver heritage which American’s people and customers are passionate about, yet progress ahead with a clean new look.
American’s new logo.
“Our new logo and livery are designed to reflect the passion for progress and the soaring spirit, which is uniquely American,” said Virasb Vahidi, American’s Chief Commercial Officer. “Our core colors — red, white and blue – have been updated to reflect a more vibrant and welcoming spirit. The new tail, with stripes flying proudly, is a bold reflection of American’s origin and name. And our new flight symbol, an updated eagle, incorporates the many icons that people have come to associate with American, including the ‘A’ and the star.”
Since entering the restructuring process, American has made a series of strategic investments designed to place customers at the center of all it does and give employees the tools, training and leading technologies they need to provide customers with a uniquely American experience, while also creating growth and opportunity for its people.
Today’s news is a reminder that while there are still significant decisions that need to be made about the future of the company, American remains focused on continuing the forward movement of the many investments that have been announced in the past year, including:
  • Industry’s Most Modern Fleet: This year, American will take delivery of nearly 60 new aircraft, including the new Boeing 777-300ER which will enter into service on Jan. 31.  In July, American will begin taking delivery of Airbus aircraft made of lighter, more fuel efficient composite materials, which must be painted. The airline continues investments to offer state-of-the-art inflight Wi-Fi, in-seat entertainment, universal AC power outlets at every seat, and Main Cabin Extra seating on all mainline aircraft. In addition, American has plans to offer fully lie-flat premium class seats on all of the airline’s widebody aircraft and transcontinental fleet.
  • Expanded International Service: American strengthens its network this year with expanded service to more destinations worldwide, including more international and domestic routes from Dallas/Fort Worth, more European and domestic service from Chicago O’Hare, new service to Europe from New York, and new service from Miami to Latin America and the Caribbean.  This year, American also will begin the following international services: Dallas/Fort Worth ─ Seoul, South Korea; Dallas/Fort Worth ─ Lima, Peru; Dallas/Fort Worth – Bogota, Colombia; Chicago O’Hare ─ Dusseldorf, Germany; New York JFK ─ Dublin, Ireland; Miami – Pointe-a-Pitre, Guadeloupe; Miami – Fort-de-France, Martinique; Miami – Curitiba, Brazil; and Miami – Porto Alegre, Brazil.
  • Information in an Instant: The airline announced plans to supply flight attendants, pilots, and maintenance workers with their own tablet devices, designed to give them real-time information and better operational insights to do their job more efficiently. Beginning next month, employees will also be equipped with new technologies at the airport designed to make the travel experience easier and more convenient.
  • Top-Notch Onboard Experience: Earlier this month, the airline rolled out new enhancements in premium class cabins on international routes, including elegant new china, more menu choices, and a more personalized service similar to a restaurant. In addition, American will expand the availability of Samsung Galaxy tablets for entertainment use in the premium cabins to more routes later this year.
·         American Eagle and the AAdvantage® program also will get a new look as of today. The first American Eagle plane will fly the new livery beginning in February. Updating the new look across American’s network is a long process and will be rolled out over time to the airline’s airports, interiors and exteriors of aircraft, new uniforms, products and services, and technology platforms like AA.com and the American mobile apps.
·         American’s new look was created with input from our customers and our people, and in partnership with FutureBrand – a leading global brand consultancy. In addition, American today launches a new advertising campaign designed to showcase the new look. The advertising campaign was developed with agency partner McCann Worldgroup. (end of press release)

Domestic airlines carry 4% less passengers in Dec


In December, the industry paid a compensation of Rs 1.4 crore to over 1.09 lakh passengers affected by denied boarding, cancellation and because of delays in flight operations.
NEW DELHI, JAN 18: 
The year 2012 has ended on a despondent note for the domestic airline industry.
The latest data released by the Directorate General of Civil Aviation show a decline of four per cent in the number of passengers carried by the domestic airlines in December 2012 compared with the same period last year.

7 AIRLINES

The seven airlines carried 54 lakh passengers in December 2012, against 56 lakh flown in the same month last year.
On an annualised basis, too, the number of passengers carried by the industry saw a decline.

INDIGO ON TOP

The data reveal a three per cent decline in the number of passengers flown during January-December 2012 at 5.88 crore compared with 6.06 crore last year.
In December 2012, the Delhi-based low-cost airline, IndiGo, maintained its position as the market leader with share of 27 per cent.
On a stand-alone basis, Air India took the number two spot with a market share of 20.6 per cent. However, if the passengers flown by Jet Airways and JetLite are combined, they had a market share of 25.6 per cent.
The DGCA data, however, count the two airlines as separate entities while showing market share.
December was the eighth straight month in calendar 2012 that saw a decline in capacity in terms of seats being offered by the industry and passenger demand for seats.
However, in a break from the preceding months, in December, the capacity and passenger demand were registered at four per cent.
In comparison, in November, passenger demand declined by 7.3 per cent, while capacity declined by about six per cent.
In October, the capacity declined by seven per cent while demand slipped by 12 per cent.
During December, the industry paid compensation of Rs 1.4 crore to over 1.09 lakh passengers affected by denied boarding, cancellation and because of delays in flight operations.
Over 82,000 passengers were affected by delays and were paid a compensation of over Rs 43 lakh, while the over 26,000 passengers, whose flights were cancelled, were paid a combined compensation of over Rs 61 lakh.
http://www.thehindubusinessline.com/industry-and-economy/logistics/domestic-airlines-carry-4-less-passengers-in-dec/article4320140.ece

Justice eludes Air India staff booked under IT Act


Eight months after two Air India employees, K.V. Jagannath Rao and Mayank Sharma, were arrested under section 66A of the Information Technology (IT) Act and imprisoned for 12 days, they are yet to get justice.
The two have been running from pillar to post seeking action against the errant policemen and the complainant who allegedly registered a complaint against them “maliciously”.
“We have written more than 30 letters to various senior police officers pointing out the illegality of the police action against us. Niket Kaushik (Additional Commissioner of Police) promised us two months ago that departmental action will be taken against the policemen responsible for illegalities. But no action has been taken till now. If the police have not erred, why have they not filed a charge sheet against us even eight months after the FIR (First Information Report) was registered?” asked Mr. Sharma.

·  Mayank Sharma and K.V. Jagannath Rao were booked for uploading lascivious and defamatory content against a local politician and for threatening him with death
·  The charges were prima facie slapped with a malafide intent and under political pressure to settle scores: Mr. Sharma

Will Air India’s fortunes soar or remain grounded?


If Dreamliners don’t take to the skies soon, AI’s finances may be hit further
The grounding of Boeing 787 Dreamliners could not have come at a worse time for Air India. If the technologically most advanced aircraft, described as the game changer for the airline, do not take to the skies at the earliest, it could mean financial implications for AI, which is struggling to work its way out of a financial mess.
The six Dreamliner aircraft were deployed to operate on middle-haul routes, under nine hours, to replace AI’s ageing fleet of Boeing 777s and A-320. The Dreamliner is the mainstay of AI’s plans to not only fly on long-haul routes but also cut down on costs, thanks to the fuel efficiency of the state-of-the-art aircraft
Air India has already made known its ambitions to focus on new markets like West Asia, South-East Asia and Europe. Among the other destinations lined up are China, Australia, Vietnam, Italy and Spain, where it would like to operate and ensure a major inflow of revenue in the next three or four years. Africa is also another lucrative market where no Indian carrier is operating and which is emerging as a hub of economic activity.
According to AI, replacing 777s with 787s will save 25 per cent of the cost, while substituting 787s for the short-haul A-320 will lead to 50 per cent saving.
The grounded Boeing 787s are said to be consuming 20 per cent less fuel than competing aircraft, and their maintenance cost is also 26 per cent lower. In AI, there is a mismatch between the kind of aircraft used and the sectors in which in which they are flying, resulting in a high cost of operation per revenue km, almost 50 per cent more than what is incurred by its rivals. For AI to break even, a higher passenger load factor is required.
The airline has deployed long-haul Boeing 777s on middle-haul routes, including to Tokyo, London, Seoul and Shanghai. Due to the delay in the delivery of the Dreamliners, AI pushed into service 20 new 777s it had just received. The 777 is typically a long-haul aircraft optimised for flights of over 15 hours, about 112 tonnes heavier than a Dreamliner, consumes more fuel and is patently unsuitable for middle-haul routes. On the other hand, the Dreamliner is made of composite materials. Its newly-developed engine and advanced flight technologies make it highly fuel-efficient. The plane can fly up to 16,000 km non-stop.
AI’s turnaround plan rests on its regaining the market share in those segments where this aircraft is suited to fly — South East Asia, West Asia, Africa, Europe and London. The airline already has permission to fly to Melbourne but does not have an aircraft to fly there. With the Dreamliner, it can fly non-stop to Melbourne from Delhi and can even link Chennai to Melbourne, with a direct flight. The Chinese market is also not well connected. The Central Asian market, which includes Kazakhstan and Uzbekistan, has a strong business potential but is completely off the AI radar.
The Dreamliner has also large cargo capacity. As AI has already prepared plans for a separate cargo business, the new aircraft would play a key role in enhancing revenues.
Of the 27 Boeing 787s ordered in a mega deal in 2006, the airline has so far received six aircraft. It is supposed to get seven more in 2013, five in 2014, six in 2015 and the remaining three in 2016. The airline has been operating these aircraft from Delhi to Bangalore, Chennai, Dubai, Paris and Frankfurt.

·  Replacing 777s and A-320s with 787s will save cost for airline
·  AI’s turnaround rests on regaining market share in segments where Dreamliner is suited to fly
http://www.thehindu.com/todays-paper/tp-national/will-air-indias-fortunes-soar-or-remain-grounded/article4321777.ece

AI may seek compensation


Civil Aviation Minister Ajit Singh on Friday indicated that Air India could seek “some kind of compensation” for the grounding of six Boeing 787 Dreaminers. However, he said, the matter would be taken up later as the priority was to get a clarity on the problem faced by the aircraft across the globe that led to the suspension of its operations.
“I guess Air India would be entitled to some compensation but this could be discussed with Boeing when the time comes. These problems will entitle Air India some reimbursement, but first let us get some clarity on the problem,’’ he said.
At the same time, he ruled out a rethink of taking further delivery of the state-of-the-art aircraft. Asked if there would be any move to prune the orders for 27 B-787s, Mr. Singh replied with a firm “no.” “First, let us get some clarity on as to what the problem is, how long it will take to rectify it. Most of the orders with Boeing are around 842 for these planes. They have worked over 10 years to develop this aircraft,” he noted.
Air India said it expected an interim report from Boeing and the U.S. Federal Aviation Administration (FAA) in a couple of days on their probe into the technical problems faced by the Dreamliner. Following detection of battery-related defects, all the 50 Dreamliners across the globe were grounded on Thursday.
“We expect at least a preliminary or an interim report from the manufacturer and the FAA in a couple of days, which might show us the way ahead. Once a report is received, corrective measures that need to be taken by the Directorate-General of Civil Aviation (DGCA) and Air India would become clear and we can move forward to handle the problem,” a senior Air India official said.
Technical checks on the lithium ion battery, which powers the Dreamliners, are being carried out in by Boeing and the FAA. “If the lapses cannot be corrected, replacing the battery could be looked into. The new batteries would also have to be certified and approved by the FAA and the DGCA,” informed sources said. Air India had been informed that the batteries were undercharging. This was leading to them heating up and swelling up, affecting the electrical and wiring systems and, thereby, causing sparks and fire. According to preliminary reports, the batteries are produced by Japanese firm GS Yuasa Corp, which has also begun working with the investigators probing the technical glitches.
This is the first time that the powerful lithium-ion batteries are being used on a passenger jet. Their capacity is considerably larger than the nickel-cadmium batteries that are otherwise used in planes. These batteries, which are used in the International Space Station, F-22 and F-35 fighter aircraft and battery-powered cars like Tesla and Chevy Volt, generate more electricity required by the Dreamliner, including powering the compressor that provides cabin air and the electro-thermal heater mats which prevent its wings from icing.
http://www.thehindu.com/todays-paper/tp-national/ai-may-seek-compensation/article4321605.ece

Advanced radar system to be installed at Kochi airport soon


Kochi, Jan. 18:  
The much-awaited radar facility at Cochin International Airport Ltd will soon become a reality with the radar system procured by the Airports Authority of India from Eldis Radar Systems, Czech Republic, having reached Nedumbassery. 
CIAL had completed the construction of the NAV-AID Building to house the radar and was waiting procurement of equipment by the Airports Authority of India.  The radar system to be installed at CIAL is a combination of Approach Surveillance Radar (ASR) and Mono-pulse Secondary Surveillance Radar (MSSR). 
The approach surveillance radar tracks aircraft approaching the airport within a range of 20 nautical miles. Secondary surveillance radar (SSR) is a system that not only detects and measures the position of aircraft, its range and bearing, but also requests additional information from the aircraft itself such as its identity and altitude.
Unlike primary radar systems that measure only the range and bearing of targets by detecting reflected radio signals, SSR relies on targets equipped with a radar transponder that replies to each interrogation signal by transmitting a response containing encoded data. This radar has a longer range of 200 nautical miles.
Installation of the radar at CIAL will tremendously improve the safety of the airport as well as optimise runway utilisation, A.C.K. Nair, Airport Director, said. 
This will also reduce the landing time from the present 6 to 9 minutes to approximately 3 minutes. Once the full-fledged operations are commenced, the aircraft landing and take-off will be totally under the control of the radar controller, thereby minimising the need for any judgment by the pilot during these procedures, even under conditions of very limited visibility. 
This will vastly enhance the safety of operations besides minimising the holding time of aircraft for landing, thereby saving fuel and also cutting down emissions.
The installation, calibration, testing etc of the radar system may take about three months, he added.

Raise limit of liquor allowance for air passengers: Assocham


New Delhi, Jan. 18:  
Aimed at making Indian airport hubs more ‘happening’, Assocham has written to the Government to consider increasing the limit of liquor allowance to four litres a passenger.
In a letter to Finance Minister P Chidambaram, the industry body said that this would stimulate industry buying on international arrivals. Pointing out that many countries had higher duty-free quota for travellers, the chamber said the enhanced limit would add approximately Rs 300 crore to the exchequer.
India currently allows two litres of liquor purchase at international airports. Compare this with Dubai Airport, which allows a passenger to carry four litres, provided the buying is done at the airport, while Singapore, Sri Lanka and the European Union permit three litres, 4.5 litres and four litres, respectively.
According to data by Centre for Asia Pacific Aviation (CAPA), liquor accounts for 63 per cent of total sales across airports compared with 17 per cent globally.
The traditional duty-free segment, liquor is projected to remain the largest single category, although its share is expected to decline to 43 per cent from 63 per cent in the next 10 years. Combined with a large share of duty paid revenue, Indian airports could see liquor sales of over $800 million a year by 2021.
CAPA estimates the value of airport-based duty-free sales in India in 2010-11 at $215 million or less than one per cent of the global sales of $23 billion. This is despite the fact that India accounts for around three per cent of global airport passenger traffic.
Liquor industry players, however, remained non-committal about sales. Duty-free buying is still low in India and it may not have major revenue impact, they said.
When contacted, ABD Vice-Chairman Deepak Roy said, “We are not aware of any such proposal being sent. But it could be a positive move for the liquor industry.”

Kingfisher, bankers meet inconclusive


Mumbai, Jan. 18:  
Lenders want the beleaguered Kingfisher Airlines to clear a part of its overdues before considering any support for its revival plan.
The airline owes about Rs 7,500 crore to a consortium of banks led by State Bank of India. Of this overdue, loan servicing payments of the airline alone amount to over Rs 2,000 crore, said a banker on condition of anonymity.
A consortium meeting will be held in a week to 10 days time to consider the way forward on their exposure, including possible recovery measures to be initiated.
The lenders’ meet with the management of Kingfisher Airlines remained inconclusive on Friday as the airline failed to submit a revival plan to repay its dues.
Incidentally, the airline promoter and Member of Parliament, Vijay Mallya, in a recent communication to employees, had indicated that Kingfisher Airlines would take to the skies in a phased manner during the summer schedule.
For this, the airline needs funding of around Rs 650 crore which was committed to be provided by the UB Group and associates, Mallya had mentioned.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/kingfisher-bankers-meet-inconclusive/article4320515.ece

Air India should be compensated for Boeing 787 grounding: Minister


New Delhi, Jan. 18:  
Air India would be entitled to compensation from Boeing for the grounding of the six Boeing 787 aircraft (Dreamliner) in Air India’s fleet, Civil Aviation Minister Ajit Singh said on Friday.
“The problem will entitle Air India to some compensation but we need some clarity on the issue before anything can be said,” the Minister told newspersons a day after Air India grounded its entire fleet of Boeing 787 aircraft. Air India is already seeking compensation from Boeing for the over three-year delay in delivery of the aircraft.
Asked if there was any move to prune the number of aircraft ordered or cancel the deal, the Minister said no decision had yet been taken. Air India has ordered 27 Boeing 787 aircraft. The first six entered commercial service in September 2012, while the last six joined the fleet just three days before the grounding.
Air India had ordered the Boeing 787, the latest civilian aircraft in operations, with a view to turning around the airline’s fortunes. In the October-December 2012 quarter, the Boeing 787 earned a revenue of Rs 172.7 crore, including Rs 88.3 crore from domestic operations and Rs 84.4 crore from international operations.
http://www.thehindubusinessline.com/todays-paper/tp-economy/air-india-should-be-compensated-for-boeing-787-grounding-minister/article4320555.ece

Steady growth in global air traffic in Nov: IATA


Downward pressure on air travel markets now showing signs of easing in the months ahead, says airlines’ body
New Delhi: Global air traffic saw a steady growth in November last year, with airlines’ body IATA predicting easing of pressure on the air travel markets across the world in the coming months.
“The downward pressure on air travel markets seen throughout 2012 is now showing signs of easing in the months ahead,” the International Air Transport Association (IATA) said in its Traffic Monitor for the month.
It, however, said, “This growth may not translate to acceleration in air travel growth, but it could provide enough support, particularly to premium markets, to prevent a further slowdown in growth.”
While the premium (first and business class) traffic was 4.4% higher in November compared to a year ago, economy travel was up 5.8% in November year-on-year.
Premium travel within the Far East was the key driver of year-on-year growth in November, with the market 13.7% higher than a year ago, it said.
A majority of the growth in premium travel was driven by demand within the Far East. This was marked by China’s economic recovery and increased Asian trade growth which supported air travel in the region, the study said.
Improvements in Asia’s economic backdrop have also offered support to demand for air travel segments that connect to the region.



Major blow to Maharaja’s McDreams


Air India’s plans to decrease its longstanding debt took a massive hit after the Directorate General of Civil Aviation (DGCA) ordered it to ground all its brand-new Dreamliner 787 aircraft on Thursday morning. Following a turbulent week for the Boeing 787 — that included the grounding of Dreamliners in Japan and the US — America’s Federal Aviation Authority (FAA) sent a global directive asking all airlines to ground the problem-prone planes. Shortly thereafter, a 787 with 153 passengers from Delhi was grounded as soon as it arrived in Chennai at 9.45 am. The directive, funnelled through the DGCA at 4 am, reached the airline when the Chennai flight was in the air. “As soon as the orders were passed, planes were grounded and parked in hangars in Chennai and Bangalore,” said an Air India official.
Luckily for passengers who were booked to fly to Delhi from Chennai and Bangalore on two Dreamliners, Air India managed to put all 227 of them on an A330 and send them to Delhi by late afternoon. The remaining four planes operated by Air India were reportedly heading back to Delhi from Dubai, Paris and Frankfurt, to be grounded.
Problems with 787s were first reported by Air Nippon in Japan, after a burning smell from a battery was noticed in the cockpit. A similar incident was reported in a parked plane in Boston, pushing the FAA to act.
Civil Aviation Minister Ajit Singh said the fleet would be allowed to fly only after the FAA and DGCA agreed on it.


Air India grounds all Dreamliners after US decision

FAA issued a global directive to stop operations of all Dreamliners


ndian regulator Directorate General of Civil Aviation ( DGCA) has directed Air Indiato ground all six Dreamliners following US aviation regulator FAA directing all US airlines to ground them.
Arun Mishra, DGCA told Business Standard, “ FAA provides air worthiness certificate to all Dreamliners as it is a US manufactured plane. Following FAA directive, we all grounded all the Dremliners at 3 in the morning.”
The four Dreamliners that are used for domestic operations have already been grounded and rest  two 787s are due to arrive from Paris and Frankfurt to Delhi around 9 and they will then be grounded, DGCA added.

Air India’s turnaround plan may go for a toss following the regulator's move. Already, the Dreamliner plane was delivered after a 4 year delay. Boeing had claimed it to be 20 per cent more fuel efficient and Air India intended to do away with route and type of plane mismatch by deploying these planes.

The grounding of the planes happens after two Japanese airlines-- 
ANA and JAL--grounded all 24 of their Dreamliner planes following a series of technical problems.

Air India grounds all six Dreamliners after US decision

FAA issued a global directive to stop operations of all Dreamliners


Air India today grounded all of its six Boeing-787 Dreamliner planes after a global directive by US regulator, Federal Aviation Administration, to stop operations of all the 50 such planes delivered so far to various airlines.
The FAA directive was immediately adhered to by aviation regulator of countries whose airlines have so far bought these latest aircrafts.
Yesterday, Japan had grounded 24 Dreamliner owned by two of its airlines-- ANA (All Nippon Airways) and Japan Airlines.
Air India officials said they have grounded all the six planes in its fleet with immediate effect following the FAA directive and the DGCA advisory.
They said that FAA has directed the grounding of the entire Dreamliner fleet till such time as the aircraft manufacturer Boeing "demonstrates compliance" of various measures the American regulator has asked it to carry out.
However, the officials maintained that its services will not be affected in any major way as flights to Paris and Frankurt operated by the Dreamliner will now be serviced by Boeing 777.

While one of the six planes is always on a standby, three are used on the domestic sector and two on international including Paris and Frankfurt, they said, adding that domestic services would be absorbed by the existing fleet of aircraft.
The American aircraft maker had last Friday jointly announced investigations with FAA after three of its aircrafts owned by the Japanese carriers suffered glitches this month -- an electrical fire, fuel leakage and a broken cockpit window.

In September last, Air India had also experienced a glitch in its Dreamliner's liquid cooling system and electrical power system, which had led to the grounding of all three of these planes at that time.

After the faults were rectified, these aircrafts have been flying regularly on select domestic and international routes.

Regarding the problem of fuel leaks, the Air India officials had said this was not something "unusual as it occurs in all aircraft types. Such problems have to be rectified immediately but these are not anything new or different."

Boeing had designated a team in Delhi for any trouble-shooting for Dreamliners.

Dreamliners, the latest and most technologically advanced offering from Boeing, is made of lightweight composite materials instead of aluminium.
http://www.business-standard.com/india/news/air-india-grounds-all-six-dreamliners-after-us-decision/202967/on