Jet Airways cuts fares on select Gulf routes; adds 2nd flight to Dubai

MUMBAI: Jet AirwaysBSE -3.15 % today cut fares for a limited period on select Dubai flights as part of its New Year offering.

The airline will also add a second flight to Dubai from New Delhi from the middle of this month.

The special fares will be valid for five days from today on select Gulf routes. The new fares are part of the Dubai Shopping Festival, Jet said.

These special Economy fares will be applicable on flights operating from Mumbai to Abu Dhabi, Bahrain and Kuwait, while there will be attractive fares from Kochi to Muscat, Doha, Sharjah and Abu Dhabi.

These fares are also available from Delhi to Abu Dhabiand Thiruvananthapuram to Muscat, the airline said.

While a Mumbai-Abu Dhabi two-way ticket comes at as low as Rs 16,775, a one-way ticket is available for Rs 8,272, inclusive of all taxes.

Similarly, a two-way Kochi-Muscat ticket is priced at Rs 21,790, and a New Delhi-Abu Dhabi two way ticket is up for grabs for Rs 24,773.

As a part of its expansion into the Gulf sector, Jet will introduce a second daily frequency on the Delhi-Dubai route from January 18.

Passengers flying on the second flight can enjoy an additional baggage allowance of 10 kg in Premiere cabin and 5 kg in the Economy cabin for the in-bound journey.

The airline will deploy its new generation Boeing 737-800 on the route.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/jet-airways-cuts-fares-on-select-gulf-routes-adds-2nd-flight-to-dubai/articleshow/17928553.cms

Three reasons why Jet Airways India would benefit from 24% stake sale to Etihad Airway

MUMBAI: The proposed deal of acquisition of 24% stake in Jet Airways by Abu Dhabi-based Etihad Airways would help the Mumbai-based company in three distinct ways. First, it should provide immediate funds to either reduce its debt or expand its presence domestically.

At present, Jet has a debt of Rs12000 crore of which Rs7500 crore is a long-term lease loan, while the remaining Rs4500 crore include working capital loans and other non-lease debt. Considering 24% acquisition, the value turns out to be Rs1900 crore. These funds can be used in its domestic expansion especially tier-II and tier-III cities, where future passenger growth is expected.

This when seen in the light of the fact that the government is planning to upgrade 35 non-metro airports works well for Jet Airways India. Jet is already present in over 50 cities. Hence, an expansion in unexplored and emerging tier-II and tier-III cities should help Jet Airways IndiaBSE -3.22 % gain its lost market share to Indigo Airlines. Jet has market share of 25.2%, while Indigo has market share of 27.3% in November last year.

Also Jet would benefit from lower fuel costs. Many experts believe that if the deal works out, Jet can fill its planes in the UAE at cheaper rates. Back home, Jet, like many airlines companies has to pay high sales tax, which is in the range of 25-30%. In the September 2012 quarter itself, the company's fuel expenses as a percentage of its net sales is 45%. By filling its planes in the UAE, the company can save fuel costs by at least 10-12%.

Lastly, the synergy of operations with Etihad Airways strengthens and expands Jet's international operations. At present, 59% of total revenues of the company come from international operations. Internationally, Etihad Airways, which is present in 67 locations, has a strong presence in North America and Europe, while Jet Airways, on the other hand, flies to 21 destinations internationally having strong presence in ASEAN countries.

The proposed deal if worked should provide Jet the experience of opening new routes in a cost-effective way. Beside, considering most Indians travel to the Middle East, North America and Europe for job, business, travel and education, the synergy works well for Jet Airways India. For Etihad, getting entry into emerging market like India is a strong advantage.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/three-reasons-why-jet-airways-india-would-benefit-from-24-stake-sale-to-etihad-airway/articleshow/17927718.cms

Lenders to drag Kingfisher to Court for its failure to repay 7,000 crore debt

MUMBAI: Lenders to bankrupt Kingfisher AirlinesBSE -0.21 % have decided to take legal action against the airline company for its failure to repay over 7,000-crore debt despite repeated reminders. 

Lenders had been pursuing a soft approach so far in the hope that the company, which has not paid interest on its loans for more than a year now, can be persuaded to come out with a revival plan. But their patience seems to be running out now. 

"On Friday, it became clear that banks are running out of patience," said a banker who attended last week's meeting between lenders and the company in Bangalore. "The meeting was called to give a final hearing to the borrower before lenders decided pull the plug," he said. 

This is the first time that lenders are discussing recovery measures. Officials who attended the meeting said that lenders' initially step would be to issue a legal notice to the airline. 

"In the past some banks, including the lead bank,State Bank of IndiaBSE 1.02 %, felt that the airline could be given a second chance since lenders have anyway waited for a year," a senior bank official said. 

The company began showing signs of weakness in November 2011 when it ran out of money to operate most of its flights and started reducing its flights to cut cost. The airline, which has never made a profit, also failed to pay salaries to its employees for a long time following which the employees went on an indefinite strike. Its flying licence was finally suspended in October 2012 

Lenders have declined to provide additional loan to the airline until it repays its dues and infuses fresh equity in the company. Kingfisher agreed to infuse 425 crore to restart the operations but said that this would be conditional on banks providing guarantees, which the banks have refused. 

Lenders gave Kingfisher Airlines close to 7,500 crore and acquired 20% stake in the company on account of conversion of part debt into equity in 2010. However, banks have limited collateral making it imperative for them to write-off a huge portion of loan. The collateral include a Goa Villa, Kingfisher House in Mumbai and some shares of United SpiritsBSE -0.69 %.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/lenders-to-drag-kingfisher-to-court-for-its-failure-to-repay-7000-crore-debt/articleshow/17932340.cms

Jet cuts fares on select Gulf routes, adds 2nd flight to Dubai

The special fares will be valid for five days from today on select Gulf routes

Jet Airways today cut fares for a limited period on select Dubai flights as part of its New Year offering.

The airline will also add a second flight to Dubai from New Delhi from the middle of this month.

The special fares will be valid for five days from today on select Gulf routes. The new fares are part of the Dubai Shopping Festival, Jet said.

These special Economy fares will be applicable on flights operating from Mumbai to Abu Dhabi, Bahrain and Kuwait, while there will be attractive fares from Kochi to Muscat, Doha, Sharjah and Abu Dhabi.

These fares are also available from Delhi to Abu Dhabi and Thiruvananthapuram to Muscat, the airline said.

While a Mumbai-Abu Dhabi two-way ticket comes at as low as Rs 16,775, a one-way ticket is available for Rs 8,272, inclusive of all taxes.

Similarly, a two-way Kochi-Muscat ticket is priced at Rs 21,790, and a New Delhi-Abu Dhabi two way ticket is up for grabs for Rs 24,773.

As a part of its expansion into the Gulf sector, Jet will introduce a second daily frequency on the Delhi-Dubai route from January 18.

Passengers flying on the second flight can enjoy an additional baggage allowance of 10 kg in Premiere cabin and 5 kg in the Economy cabin for the in-bound journey.

The airline will deploy its new generation Boeing 737-800 on the route.

http://business-standard.com/india/news/jet-cuts-faresselect-gulf-routes-adds-2nd-flight-to-dubai/201863/on

Civilian flight takes off from Kargil airport

New Delhi, Jan 7:  

Kargil has become the latest airport in the country to get connected.

The first flight with a number of dignitaries, including Jammu and Kashmir Chief Minister Omar Abdullah, completed the journey between Jammu-Kargil and back on Monday.

According to sources, the flight is to be operated by Mantra Airways and is likely to be a daily service.

aircraft

The flight is operated with a 17-seater aircraft and regular commercial operations are expected to begin in the next few days.

The Kargil airfield is at a height of 9,600 feet, only nine km away from the international border.

service prospects

The work to begin the flight started in early 2011 with the Civil Aviation Ministry, setting up a Committee to look at the prospects of this service.

The Committee felt that there was a market potential of 100-150 passengers on the Srinagar-Kargil route on a weekly basis, and cargo requirement of about 750-1,000 kg on a daily basis.

smaller planes

Since Kargil is surrounded by mountains, only smaller planes (capacity up to 80 seats) with the ability to take off and land at high altitude could be permitted. The Kargil airport, which is under the jurisdiction of the Indian Air Force, was built by the Airports Authority of India with the Central budgetary support and handed over to the Air Force in 2003.

It has a civil enclave managed by the State Government.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/civilian-flight-takes-off-from-kargil-airport/article4284238.ece

Jet Airways offers special fares to Gulf

Mumbai, Jan. 7:  

Jet Airways has introduced special fares (valid for a sale period of 5 days) on select routes to the Gulf.

These special fares will go on sale from January 7 to January 11 and will be valid for travel from January 14.

These special Economy fares would be applicable on flights operating from Mumbai to Abu Dhabi, Bahrain and Kuwait.

Similarly, passengers can avail themselves of the same fares on flights operating from Kochi to Muscat, Doha, Sharjah and Abu Dhabi. The special fares are also available on flights from Delhi to Abu Dhabi and Thiruvananthapuram to Muscat. The return fares start from Rs 16,775.

Jet Airways has also introduced a second daily frequency on the Delhi-Dubai route. The flight will commence operations on January 18. Passengers on this flight can enjoy an additional baggage allowance of 10 kg in Premiere cabin and 5 kg in Economy cabin for the inbound journey.

The inaugural Premiere class fares start at Rs 39,760 on the Delhi-Dubai route and the inaugural Economy class fares on the same route starting at Rs 18,000. These fares are valid for sale until January 11 with travel effective from January 18.

Jet Airways currently operates four flights a day from Mumbai and a daily service from Delhi to Dubai. It also flies six times a week to Dubai from Mangalore.

http://www.thehindubusinessline.com/todays-paper/tp-economy/jet-airways-offers-special-fares-to-gulf/article4284211.ece

Government firm on Air Kerala project: Chandy

Chief Minister Oommen Chandy has said the government is determined to go ahead with the proposed Air Kerala project which will cater to Malayalis in West Asia.

Addressing a press conference on the sidelines of the Pravasi Bharatiya Divas, Mr. Chandy said the proposal was the baby of the previous United Democratic Front government. A study was conducted and the project had been found feasible.

The Union government’s condition that an airline should have five years’ experience in operating domestic services and a fleet of 20 aircraft was the main hurdle preventing the airline from taking off.

Mr. Chandy said if the new airline was to begin with domestic operations it would incur a huge loss. The airline could be launched with five aircraft and the Union government had been approached for ease in conditions.

The Chief Minister justified the demand citing how the budget carrier Air India Express, subsidiary of Air India, was allowed to fly internationally without operating domestic services.

He said the government would apply for the airline once the Union government granted necessary exemptions. Applying entails an initial financial requirement of Rs.100 crore, which could be arranged within a week.

A meeting held last year on the sidelines of the Emerging Kerala investors’ meet had decided to launch Air Kerala with an initial capital of Rs.200 crore as soon as it received the requisite exemptions from the Central government.

Of the total shareholding, the State government, Cochin International Airport Limited, and other public sector undertakings would collectively hold 26 per cent.

On the deliberations at a session on Gulf NRIs, which he sat through, at the first day of the three-day Pravasi Bharatiya Divas, Mr. Chandy said the government was determined to facilitate investments in the State by Non-Resident Indians.

---

·  Centre approached for relaxation in conditions

·  Initial capital of Air Kerala will be Rs.200 crore

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/government-firm-on-air-kerala-project-chandy/article4285497.ece

Air India takes a hit at meet

Transportation woes biggest issue faced by NRIs, says Chandy

In hindsight, Union Minister for Civil Aviation Ajit Singh and his deputy K.C. Venugopal displayed perfect judgement in staying away from the inaugural session of the three-day Pravasi Bharatiya Divas that began here on Monday.

They would have had a tough time, had they been present, as Air India emerged the punching bag for everyone from Ministers to delegates who attended the session - NRIs in the Gulf.

Union Minister for Overseas Indian Affairs Vayalar Ravi, who inaugurated the session, dropped more than a hint when he said he had a fair idea about what topped the list of complaints that the delegates were waiting to air.

“I know what it is. Your problems with the flight back home; the approach of Air India,” he stopped mid sentence with a smile.

Chief Minister Oommen Chandy, who spoke after him, was more forthcoming. Identifying transportation woes as the biggest issue of the NRIs, he held the beleaguered airline responsible for their plight.

Minister for Norka K.C. Joseph was the most acerbic as he made a no-holds-barred attack on Air India. “We cannot turn a blind eye to the hardships suffered by the NRIs because of the step motherly attitude of Air India. Therefore, the State government is determined to go ahead with Air Kerala at any cost,” he said to a wide round of applause.

Soman Baby, managing director of the Bahrain-based Daily Tribune , pointed out the absence of decision makers to resolve the complaints of delegates with regard to Air India. His poser about the absence of Civil Aviation Minister was met with an almost irritated response from Mr. Ravi, who said the Minister was from a different political party.

When it was pointed out that the Minister in question was his Cabinet colleague, Mr. Ravi said he cannot force Cabinet members to attend a meeting. He had invited Mr. Ajit Singh but he was not interested. Mr. Ravi, however, was candid enough to admit that he could have asked Mr. Venugopal to attend the meet. C.R.G. Nair, a delegate from Dubai, wondered what prompted Air India to withdraw its service between Dubai and Thiruvananthapuram some years back.

While Mohammed Kavungal, a delegate from Saudi Arabia, lamented the downward spiral of Air India services over the years, Siddique Hussain from Muscat hoped that the Pravasi Bharatiya Divas deliberations would bring about some change in the approach of Air India officials.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/air-india-takes-a-hit-at-meet/article4285498.ece

New flights on Chennai-Tiruchi-Chennai sector

Domestic air connectivity from the city is set to improve with SpiceJet announcing the introduction of flights on the Chennai-Tiruchi-Chennai sector from January 15.

The airline has already notified that bookings are open for the new flights.

The service would be available for four days a week on Mondays, Tuesdays, Wednesdays and Thursdays.

The flight would depart from Chennai at 10.30 a.m. and reach here by 11.40 a.m. and depart from Tiruchi at noon and reach Chennai by 1.10 p.m.

The airline offers connecting flights to Mumbai and New Delhi and in the return direction to Tiruchi via Chennai, sources at the airport said.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/new-flights-on-chennaitiruchichennai-sector/article4285362.ece

Soft-skill training for AIE staff

Close on the heels of the decisions to serve Kerala cuisine on flights of Air India Express and in-flight announcements in Malayalam, the low-cost carrier started imparting soft skill training to cabin crew and frontline staff from Saturday.

Being kicked off from Kochi, the two-day orientation workshop is part of the initiatives of Air India Express (AIE) to step up customer relations and reach out to the people. The cabin crew, check-in agents, and the reservation staff of the budget airline have been handpicked for the soft skill training programme, as they interact mostly with the flyers. Besides improving the communication and soft skills of the cabin crew and frontline staff, the attempt was to equip them to handle adverse situations like flight delays and embarrassing situations in flight and in mid-air, Head, Corporate Quality and Customer Services, Harpreet Singh told The Hindu .

The airline is taking up the orientation programme for the first time since it commenced operations in 2005 and the aim is to improve the interpersonal skills of the cabin crew and frontline staff. The modules for the training have been worked out by In-flight Services Training College of Air India and Quality Management Services.

The orientation programme will be held in Thiruvananthapuram in February and later to Kozhikode and Mangalore from where the airline mostly operates.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/softskill-training-for-aie-staff/article4278866.ece