Jet renews pact with ATR

Jet Airways and European turboprop aircraft manufacturer ATR have signed a new global maintenance agreement (GMA) for the supply of spare parts and maintenance services of Jet’s ATR fleet. The GMA, valued at $48 million, extends an earlier agreement for the next seven years.

Jet Airways, including its low-cost subsidiary Jet Konnect, at present operates a fleet of 17 ATRs, and will add four new ATRs soon.

The airline has been operating ATR aircraft since 1999, and has covered its fleet with GMAs since the beginning of its partnership with ATR.

“This new GMA will handle the complete management of the components, including the repair of line replaceable units (LRUs) and propellers, and the access to ATR advance standard exchange pool. The service package includes also an inventory of spare parts at Jet Airways premises. With the signature of this agreement, Jet Airways will mainly take advantage of guaranteed spares availability and a large reduction of maintenance costs. The airline will additionally benefit from simplified maintenance procedures, with ATR as single channel,” Jet Airways said in a statement.

http://www.thehindu.com/todays-paper/tp-business/jet-renews-pact-with-atr/article4380432.ece

Etihad moves closer to deal with Jet Airways

Gulf carrier Etihad, which is tipped to acquire 24 per cent stake in Jet Airways, on Monday said it would complete the procedures over the deal with the Indian carrier within a week and leave it to its board to take a final view on the matter.

In his first formal acknowledgment that the Abu Dhabi-based airline was interested in investing in Jet after several rounds of talks between the two carriers, President and CEO, James Hogan, said “we are undertaking due diligence” which would be completed in a week’s time.

The findings would then be presented to the Etihad Board for it to take a final view on the matter, he said at a post-financial results press conference in Abu Dhabi, which was beamed live across the world.

Etihad today reported 200 per cent jump in net profit for 2012 to USD 42 million.

Mr. Hogan said he had last week met Finance Minister P. Chidambaram, Commerce Minister Anand Sharma and Civil Aviation Minister Ajit Singh in Delhi to understand the new FDI rules and the regulatory requirements for buying equity in the Indian airline company.

Etihad is likely to buy 24 per cent equity in Jet Airways valued at about Rs.1, 800 crore. If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline.

Meanwhile, a senior Jet Airways official said in Mumbai that discussions with Etihad were still going on and nothing has been finalised as yet.

“It is too early to talk about all these things. The discussions are still going on. We have not finalised anything,” Jet Vice President (Commercial Strategy and Investor Relations) K G Vishwanath told financial analysts without directly referring to Etihad.

The statements came days after Jet announced a net profit of Rs. 85 crore in three months to December in its Q3 results.

A deal with Etihad would expand Jet’s equity base, which now stands at 8.63 crore shares valued at Rs. 5,370 crore.

Etihad has in the past two years picked up stake in several international carriers like Virgin Australia, Airberlin, Air Seychelles and Irish carrier Aer Lingus.

Keywords: Etihad-Jet deal, James Hogan, Jet Airways

http://www.thehindu.com/business/companies/etihad-moves-closer-to-deal-with-jet-airways/article4378904.ece

Plans to provide spa facilities at airport

BHUBANESWAR: A host of new facilities can greet fliers to and from the city airport.

While those getting prepared for or returning after a long journey can have the rejuvenating experience in a spa centre, those willing to treat their taste buds would be able to do so at a food joint.

The airport authority at Biju Patnaik airport here is planning to open a spa massage centre near the security lounge (first floor) of the new domestic terminal, which is likely to be operational by the second week of February.

Sources said the airport invited applications from private parties for opening the spa massaging centre.

"There will be a tender process and the highest bidder will be allowed to open the spa centre. Opening the centre is part of a new initiative being taken to provide a host of new facilities for the passengers," said airport director Sharad Kumar.

He said that details about the facilities to be provided there would be known after the opening of the centre. "Normally, the international terminals have spa massage centres. It is not such a common feature in domestic terminals," said the director.

Besides the spa centre, there would be food kiosk, which will serve continental, Indian and local food items.

Gift shops, beauty and personal care clinics, books and periodicals and stationery shops would also be opened there.

"Around 26 different facilities will be available at the new terminal. We will go for a separate shop for sale of handicrafts and handlooms, since we have ample space for retail counters. We are also planning to open a jewellery shop as well. We want to make the fliers' experience wholesome," the director said.

He added that there would be facilities for a travel guide and taxi service. The shops will be of four to three meters length. The rent price will differ from shop to shop on the kind of product they sell.

After the start of international operations at the old domestic terminal, there would be a few duty-free shops for overseas passengers as well.

http://timesofindia.indiatimes.com/city/bhubaneswar/Plans-to-provide-spa-facilities-at-airport/articleshow/18343521.cms

Domestic air traffic dips for second month in a row

AHMEDABAD: Vacations have come and gone and they have failed to improve the fortune of airline companies. Popularity of air travelcontinues to nose dive among those affected by wanderlust in Gujarat.

Despite the Diwali vacation in the month of November last year, the number of domestic flyers has fallen by 18 per cent as compared to November 2011. It was in October 2012 that the Sardar Vallabhbhai Patel International Airport had registered its biggest fall of 32 per cent in domestic tourists.

Officials in the airport said that as against 3.65 lakh travellers in November 2011, in November 2012, the number of tourist was 2.97 lakh.

The data of AAI reveals that from April to November 2012, there was a drop of about 17.2 per cent which is the highest when it comes to international airports across the state.

Officials said that even Delhi and Mumbai airports registered a drop in the number of passengers during April-November 2012. While the drop was 10 per cent in Delhi, it was 7.3 per cent in Mumbai.

The once impressive growth in airline traffic at Ahmedabad airport seems to have hit rock bottom this year. The Sardar Vallabhbhai Patel airport, which recorded a rise of more than 35 per cent indomestic air traffic in 2011, is registering a dip of around 17 per cent currently.

The drop in the number of passengers is attributed to the number of falls in the flight movement from the state. There was also a drop of about 11 per cent in the aircraft movement in the month of November 2012 while the same during the period from April-November fell by 4.7 per cent. During the same period, there was a movement of 22,704 aircrafts which was 21,674 in 2011.

Airport officials say that the airport has been seeing a dip in domestic flyers because of the steep increase in airfare since September 2012.

The other reason was that one of the primary airlines withdrew its operations and hence, there was a considerable drop in domestic air travel. The officials were expecting the numbers to grow as the Diwali vacations were in the month of November and there was some consolation as the drop was not as high as 32 per cent but it was only 18 per cent.

An airline official refusing to be quoted said that they are studying the decline during vacations. High fares to Delhi and Mumbai have caused individuals and corporate executives to choose buses or trains.

He cited an example saying there were eight to ten corporate employees flying to Mumbai in a week, but now it had reduced to two or sometimes three.

http://timesofindia.indiatimes.com/city/ahmedabad/Domestic-air-traffic-dips-for-second-month-in-a-row/articleshow/18343999.cms

International flyer numbers increase by 15%

AHMEDABAD: While the domestic flyers registered a fall of 18 per cent, the international flyers have registered an increase of 15.5 per cent in the month of November 2012.

The number of non-resident Gujaratis (NRGs) who flew down to Ahmedabad was 81097, which was only 70227 in November 2011.

Officials said that while the domestic flyers were finding cheaper options to switch over, the overseas flyers had no other option but to fly.

Airport officials said that from April-November 2012, the number of overseas flyers had increased to 4,75,261 as against 4,68,108 from April-November 2011. This was an increase of 1.5 per cent as compared to the previous year.

Officials said that the only reason was that being Diwali, the NRGs had decided to come back home early.

"Usually they prefer to come back home in December but it has been generally been seen that ifDiwali is in November, the number of international tourists increase," says an official.

However, a senior officer said that there was an overall increase of just 7500 odd passengers and one can see that means there could be an increase in the number of foreign tourists as well.

http://timesofindia.indiatimes.com/city/ahmedabad/International-flyer-numbers-increase-by-15/articleshow/18343948.cms

Airports Authority of India scouts for foreign ties to run terminals

CHENNAI: Airports Authority of India (AAI) is gearing up to train its employees and terminal managers to manage and operate the swanky terminal buildings that were opened last week at Chennai airport. 

The move comes after AAI seniors felt their employees are not equipped to handle the technology-heavy operations at the modern terminals. "We are in talks with a few foreign airports for possible tie-ups to manage and operate Chennai's new terminals and to train our staff abroad. Over the years, operation of terminals has become technology-intensive. Training will equip AAI staff to manage the terminals efficiently because we are planning to boost passenger capacity and make Chennai a major hub like Mumbai and Delhi," said AAI chairman V P Agrawal. 

The AAI has started scouting for joint venture partners to run the new terminals. The airports in Changi, Zurich airport and Kuala Lumpur have expressed interest in collaborating with AAI. "We've had informal talks. This is a separate policy aimed at operating terminals to match the high standards expected from passengers without privatising the airport," the AAI chairman said. Till partnerships are firmed up, airport officials are planning to outsource operations like conservancy and baggage handling. 

An airport official said the terminals are mostly made of glass and steel which need frequent cleaning and maintenance which cannot be done manually. "We will need specialists in airport conservancy. Such firms or airport-specific equipment are not available in India. AAI staff does not have the expertise to identify such firms because we have never had such requirements before". 

The Planning Commission had earlier suggested that Chennai and Kolkata airports should be privatised. The AAI has now suggested this joint venture proposal to avoid privatisation because these two are the only major airports left with the cash-strapped public sector airport operator. "We are not getting a favourable response for financing options from the government. So, joint ventures and outsourcing are the only way to provide better services at less cost," said a senior officer. 

Some of the the technology-assisted facilities at the airport would be the inline baggage scanner that will screens and segregate bags at five levels, the common use terminal equipment which allows any airline to use any of the 52 counters to check in passengers, flight information services, and others. In addition to this, the airport will require sophisticated machines to clean glass walls and floors of the terminals spread over 1,33,462sqmt. 

http://timesofindia.indiatimes.com/city/chennai/Airports-Authority-of-India-scouts-for-foreign-ties-to-run-terminals/articleshow/18342313.cms

Kingfisher Airlines staff to move court for wind-up, salary dues

NEW DELHI: The employees of grounded Kingfisher Airlines (KFA) on Monday decided to move court for winding up the nearly bankrupt company to recover their salary dues. While they plan to move court as soon as Wednesday, some staffers are also planning to hold agitation at the upcoming IPL matches where KFA promoter Vijay Mallya's Bangalore team plays. 

Late last year a similar threat by employees to agitate at the Greater Noida F1 track where Mallya was supposed to be for his team had led to a promise from the management to pay three months' pay, out of which salary of two months were paid. This time, however, employees are not issuing this threat to strike a bargain. 

"All section of employees met at IGI Airport's terminal 2 on Monday to decide the future course of action. The meeting was held there as many employees have not got the airport entry pass now. The management has gone silent and there is just no word on what they plan to do for clearing our dues," said a senior employees, who is spearheading the agitation now. 

http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-staff-to-move-court-for-wind-up-salary-dues/articleshow/18341935.cms

Kingfisher Airlines staff to move court for wind-up, salary dues

NEW DELHI: The employees of grounded Kingfisher Airlines (KFA) on Monday decided to move court for winding up the nearly bankrupt company to recover their salary dues. While they plan to move court as soon as Wednesday, some staffers are also planning to hold agitation at the upcoming IPL matches where KFA promoter Vijay Mallya's Bangalore team plays. 

Late last year a similar threat by employees to agitate at the Greater Noida F1 track where Mallya was supposed to be for his team had led to a promise from the management to pay three months' pay, out of which salary of two months were paid. This time, however, employees are not issuing this threat to strike a bargain. 

"All section of employees met at IGI Airport's terminal 2 on Monday to decide the future course of action. The meeting was held there as many employees have not got the airport entry pass now. The management has gone silent and there is just no word on what they plan to do for clearing our dues," said a senior employees, who is spearheading the agitation now. 

http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-staff-to-move-court-for-wind-up-salary-dues/articleshow/18341935.cms

Air cargo complex caught between two agencies?

Lack of understanding and coordination between two government agencies is said to be coming in the way of development of the proposed integrated air cargo complex at Visakhapatnam Airport.

Airports Authority of India (AAI), a Central Government organisation, is the owner of the land and buildings on which the airport is located. AP Trade Promotion Corporation (APTPC), a State government organisation, is the custodian of international cargo operations.

It’s learnt that the APTPC, which has a lot of experience and expertise in the design and construction of air cargo complexes, had offered to take up the construction of a new integrated cargo complex in place of the old terminal building at the airport. The APTPC had even expressed its readiness to invest funds in construction of the building and procurement of scanning machines but the AAI was not willing to take up the offer.

The AAI had planned to develop an integrated cargo complex by making certain modifications to the old terminal building and setting up cold storages.

This is being delayed reportedly due to paucity of funds. Then, what’s preventing AAI from entrusting the development of the integrated cargo complex to the government agency which has expertise in it? The AAI is said to be averse to giving the contract to APTPC as it owed some dues.

The APTPC Manager Srimannarayana Rao was overheard telling the Airport Director K. Srinivasa Rao that the APTPC had cleared its dues payable to the AAI at the Hyderabad Airport, at a round table of air exports, convened by the Airports Travellers Association (India), in Visakhapatnam on Monday. GSEC Limited Director Samir Mankad underlined the need to design and construct a new integrated cargo complex with all the required facilities so that the export requirements could be taken care of for the next 10 years. “As a State government organisation, we can represent to the Government of India and secure grants for construction of the integrated cargo complex,” Mr. Srimannarayana Rao told The Hindu when asked after the meeting as to how the APTPC could raise funds for construction of a modern integrated cargo complex.

http://www.thehindu.com/todays-paper/air-cargo-complex-caught-between-two-agencies/article4381178.ece

Etihad Airways posts 200% rise in 2012 net profit

ABU DHABI, FEB 4: 

Etihad Airways, the fast-growing carrier of Abu Dhabi, posted a 200 per cent rise in net profit in 2012 and a 17 percent increase in revenues, the airlines said in a statement today.

Etihad posted a net income of $42 million last year compared to $14 million in 2011 when it made its first ever profit, said the statement which attributed the rise to strong improvements in revenues, passengers and cost control.

The flag carrier of the Emirati capital Abu Dhabi said revenues increased to $4.8 billion in 2012 compared to $4.1 billion the previous year.

The number of passengers grew a healthy 23 percent to 10.3 million compared to 8.4 million in 2011, significantly boosted by Etihad’s partnerships which delivered more than $600 million in total revenue.

“This has been a game-changing year for Etihad Airways,” James Hogan, the airline’s president and chief executive officer said.

“We have delivered improved net profit, the second consecutive year we have been in the black, a remarkable achievement given the youth, ambitious growth and ongoing investment made by this airline in a challenging global economic environment,” he said in the statement.

Etihad said it succeeded in building the first “equity alliance” with investments of 40 per cent in Air Seychelles, 29.2 percent in Air Berlin, 9.0 per cent in Virgin Australia and about 3.0 percent in Air Lingus.

“We have taken great strides in building the industry’s first equity alliance which (is) contributing significant value to our business,” Hogan said.

Earnings before interest and tax (EBIT) rose 24 per cent to $170 million, while EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to $753 million, up 16 per cent, Etihad said.

Hogan said more than 50 institutions have provided around $6.8 billion in cumulative funding for the airline’s ongoing expansion.

Planned fleet upgrades for 2013 include 14 aircraft, with 11 passenger aircraft deliveries and three freighter deliveries, Etihad said.

The orders are for nine wide-bodied Boeing and Airbus aircraft and five narrow-body Airbus aircraft. These will meet Etihad Airways’ immediate growth requirements.

At the end of 2012, the company had 10,656 employees, 18 percent more than in 2011, representing more than 125 nationalities.

Etihad Airways, which began operations in 2003, serves 86 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and the Americas.

http://www.thehindubusinessline.com/industry-and-economy/logistics/etihad-airways-posts-200-rise-in-2012-net-profit/article4378413.ece?homepage=true&ref=wl_home

Wage negotiations still on with employees, says Jet Airways

MUMBAI, FEB 4: 

Jet Airways, which recently faced labour unrest from a section of its technicians on wage issues, today said it was in discussion with the employees for wage revision.

“We are still in negotiations with the employees. We have not completed that (exercise) but hope to get it completed shortly,” company’s Vice-president for Commercial Strategy and Investor Relations K G Vishwanath said at a post-earnings conference call.

Vishwanath’s assertion comes a day ahead of the airline management inviting its pilots for a meet on the issue.

The airline is in the final stages of sealing a stake sale deal with the Gulf carrier Etihad Airways.

The pilots have long been demanding wage hike besides payment of arrears running into crores of rupees, pending since 2011.

The airline had recently given hike of up to Rs 18,000 per month to a section of its ground staff.

On attrition, Vishwanath said the airline has seen exodus of 1,139 employees year-on-year till the December quarter, mainly from cabin crew and ground handling, adding, “these segments traditionally have higher attrition rate.”

Stating that the current quarter has seen some “robust bookings” mainly on the international sectors, Chief Commercial Officer Sudheer Raghavan said, “we are comfortable what they (the bookings) are today.”

“On the domestic routes, we are now into the traditionally weaker quarter. However, we don’t see any room for concern at this stage,” he said.

Jet Airways will be receiving back all its wide-body 777 planes, which are on lease currently, Vishwanath said.

“But we have not yet decided whether we should operate them or put on lease again,” he said.

On the debt repayment plan, Vishwanath said the airline will retire $400 million of debt in the next financial year while it had already repaid around $400 million this year.

The airline’s total debt stood at $2.16 billion as of December against $2.6 billion as of M

march last year.

The Naresh Goyal—owned domestic private carrier last Friday reported a net profit of Rs 85 crore for the quarter ended December against a net loss of Rs 101.22 crore in the year ago quarter.

Meanwhile, the airline in a statement said it has signed a global maintenance agreement with the European turboprop aircraft manufacturer ATR worth $48 million.

This new agreement extends the existing pact by another seven years and covers the supply of spare parts and maintenance services for its fleet of ATRs.

http://www.thehindubusinessline.com/industry-and-economy/logistics/wage-negotiations-still-on-with-employees-says-jet-airways/article4379116.ece?homepage=true&ref=wl_home

Jet Airways pulls out of loss-making routes

MUMBAI, FEB. 5: 

Jet Airways, which posted a net profit of Rs 85 crore for the quarter ended December 31, 2012, has pulled out of loss-making routes to increase profitability, Sudheer Raghavan, Chief Commercial Officer, told analysts in a conference call on Monday.

The airline gets 56 per cent of its revenue from international operations and the rest from domestic operations, Raghavan said.

When asked about competition from other Indian carriers in the international route, he said that currently Indian carriers carry only about 35 per cent of travellers from abroad to India.

“In any other mature market, it is the opposite. India is a huge travel generating market and hence, we are not at all perturbed by the presence of other Indian carriers in the international routes,” he said.

Jet Airways plans to add five to six narrow-bodied aircraft to its fleet in the next one year. The airline will also receive 12 to 13 B-777 aircraft, which it will either deploy on its network or lease them out.

“We cut down 10-12 per cent of our capacity in the current fiscal. Our strategy will be to get back to the capacity levels of 2012. Our strategy will be to drive yields up,” Raghavan added.

http://www.thehindubusinessline.com/industry-and-economy/logistics/jet-airways-pulls-out-of-lossmaking-routes/article4379032.ece?homepage=true&ref=wl_home

Plea to allow Vizag airport to handle export, import cargo

VISAKHAPATNAM, FEB. 4: 

The Airports Authority of India, the Navy and other Government agencies and departments should take immediate steps to facilitate handling of exim cargo at Visakhapatnam airport, as already the city is connected to two international destinations (Singapore and Dubai), according to local trade and industry sources.

The view was expressed at a roundtable on the issue organised here on Monday in the Vizagapatam Chamber of Commerce and Industry (VCCI) by the chamber in association with the Confederation of Indian Industry and the Air Travellers’ Association.

The chamber President K. Ramabrahmam said the issue brooked no delay as it would impart a great impetus to the growth of Visakhapatnam. The infrastructure should be upgraded and 24-hour operations should be made possible at the airport for the purpose.

T. Subbarami Reddy member of the Rajya Sabha, said he would use his good offices to provide the right infrastructure for handling of exim cargo at the airport, as he had done in the past in facilitating international flights from here to Dubai and Singapore.

He said the Navy had been given permission to recruit the necessary staff for 24-hour operations at the airport, but it may take sometime.

He would request the naval authorities to expedite the process. K.V Raju, Executive Director of Hospita India, spoke about the exim cargo to be generated by his company, once it begins commercial operations in a year or so.

He said there were several such pharma units coming up in the special economic zones as well as the pharma city and therefore the air cargo complex should be made ready as soon as possible.

Jayaraj, station manager of Air India, Sameer Mankhad, Director of GSEC, handling agent, K.S. Rao, Director of Airports Authority of India, Varada Reddy, and several others spoke in the same tenor, highlighting the potential of Visakhapatnam and the need for upgrading the infrastructure at the airport.

http://www.thehindubusinessline.com/industry-and-economy/logistics/plea-to-allow-vizag-airport-to-handle-export-import-cargo/article4379143.ece?homepage=true&ref=wl_home

Plea to allow Vizag airport to handle export, import cargo

VISAKHAPATNAM, FEB. 4: 

The Airports Authority of India, the Navy and other Government agencies and departments should take immediate steps to facilitate handling of exim cargo at Visakhapatnam airport, as already the city is connected to two international destinations (Singapore and Dubai), according to local trade and industry sources.

The view was expressed at a roundtable on the issue organised here on Monday in the Vizagapatam Chamber of Commerce and Industry (VCCI) by the chamber in association with the Confederation of Indian Industry and the Air Travellers’ Association.

The chamber President K. Ramabrahmam said the issue brooked no delay as it would impart a great impetus to the growth of Visakhapatnam. The infrastructure should be upgraded and 24-hour operations should be made possible at the airport for the purpose.

T. Subbarami Reddy member of the Rajya Sabha, said he would use his good offices to provide the right infrastructure for handling of exim cargo at the airport, as he had done in the past in facilitating international flights from here to Dubai and Singapore.

He said the Navy had been given permission to recruit the necessary staff for 24-hour operations at the airport, but it may take sometime.

He would request the naval authorities to expedite the process. K.V Raju, Executive Director of Hospita India, spoke about the exim cargo to be generated by his company, once it begins commercial operations in a year or so.

He said there were several such pharma units coming up in the special economic zones as well as the pharma city and therefore the air cargo complex should be made ready as soon as possible.

Jayaraj, station manager of Air India, Sameer Mankhad, Director of GSEC, handling agent, K.S. Rao, Director of Airports Authority of India, Varada Reddy, and several others spoke in the same tenor, highlighting the potential of Visakhapatnam and the need for upgrading the infrastructure at the airport.

http://www.thehindubusinessline.com/industry-and-economy/logistics/plea-to-allow-vizag-airport-to-handle-export-import-cargo/article4379143.ece?homepage=true&ref=wl_home

Ahead of stake sale, Jet Airways cuts costs, trims debt

MUMBAI, FEB. 4: 

Jet Airways, whose promoters are in talks with Eithad Airways for a strategic stake sale, said it will continue with its cost-cutting plans and pay off $400 million (about Rs 2,200 crore) of loan in the next fiscal.

The airline had a total debt of $2.16 billion (about Rs 11,800 crore) as of December 31, down from $2.6 billion (about Rs 14,300 crore) at the end of March 2012.

Jet Airways is steadily paying off debt and has got commitments from banks for working capital loans, K. G. Vishwanath, Vice-President, Commercial Strategy and Investor Relations, told analysts in a conference call on Monday. The average cost of debt for the airline is around 6 per cent and its cash position stands at Rs 740 crore, Vishwanath added. The airline is also taking up active steps to reduce employee costs by cutting down on the number of expat pilots. “The number of expat pilots by the end of March 2012 was 230. We have reduced these numbers by not renewing the contracts of these pilots. Our focus will be to train Indian pilots,” said Sudheer Raghavan, Chief Commercial Officer.

The airline has lowered staff costs by reducing the numbers of cabin crew and ground staff. On year-on-year basis, there were 1,139 job cuts. However, the airline has not given any increment or bonus to its employees this past year. Currently, labour trouble is brewing with pilots unhappy with proposed salary hikes. “We are negotiating with the employee groups on bonus and increment issues, which we expect to complete in the next one or two months,” Raghavan added.

Jet Airways stock closed 2.87 per cent down at Rs 604.80 on the BSE on Monday.

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Qantas plans to increase flights to India, other Asian nations

MELBOURNE, FEB 4: 

Australian Airline Qantas today said it is planning to increase flights to India and other Asian countries using longer range Dreamliner planes in the next three years.

Rolling out its new four phase strategy for the Asian Market, it said direct destinations under consideration include Beijing, Seoul, Mumbai, Delhi and Tokyo-Haneda.

This is proposed to be undertaken through local partners such as Japan Airlines, China Eastern, Jet Airways, Cathay Pacific and Malaysia Airlines, a statement by the airline said.

Qantas said a series of improvements to its international network, as part of a phased approach, was aimed at delivering the best offering between Australia and Asia.

“The improvements — the first of which take effect from 31 March 2013 — will be rolled out in four phases and go towards the Qantas Group strategy of ‘growing with Asia’,” it said.

Chief Executive Officer of Qantas International, Simon Hickey, said Asia remained a key pillar for the airline.

“Through a combination of Qantas, Jetstar and our partners we aim to provide the best travel options between Australia and Asia, all linked to one of the world’s leading frequent flyer programmes,” he said.

“Our first step has been to restructure existing services to Asia now that they are no longer tied to onward links to Europe.

“The number of dedicated seats on Qantas services to Hong Kong and Singapore is increasing significantly because capacity previously set aside for customers going to Europe via these hubs can be freed up.”

The airline, however, said Qantas and Emirates still need final approval for their alliance from the Australian Competition and Consumer Commission. It is expected to make its decision next month.

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Board will take final call on Jet stake buy: Etihad CEO

NEW DELHI, FEB 4: 

The Abu Dhabi-based Etihad Airways has confirmed that it is carrying out due diligence to possibly acquire a stake in Jet Airways.

“We are doing our due diligence…. in the next week we will present it to the Board and take it from there,” Etihad’s Chief Executive Officer James Hogan said at a press conference in Abu Dhabi on Monday.

Separately, in an analysts’ conference call in Mumbai, the Vice-President of Commercial Strategy and Investor Relations at Jet Airways, K. G. Vishwanath, said the airline was still in talks with Etihad for a stake sale. “It is too premature to talk about it,” he added. Neither Hogan nor Vishwanath gave details of the proposed stake sale.

In a recent report, the Centre for Asia Pacific Aviation had said that Etihad was expected to acquire 24 per cent stake in Jet Airways, which could result in an inflow of $330 million into the Indian airline. The report valued Jet Airways at $1.3-1.4 billion (about Rs 7,000 crore).

At the Abu Dhabi press conference, Hogan said that a delegation from Etihad had visited India recently and met with the Ministers for Commerce, Civil Aviation, and Finance. He added that the delegation wanted to understand what was affecting Indian civil aviation and how they (senior Ministers) thought things would change in the coming years.

200% RISE IN PROFIT

During the presentation on the financial results for 2012, Hogan said that the airline had taken great strides in building the industry’s first ‘equity alliance’, with investments in airberlin, Air Seychelles, Virgin Australia and Aer Lingus, which were contributing significant value to the business. Etihad posted a 200 per cent rise in net profit in 2012.

“Equity and codeshare (an agreement where multiple airlines share a flight) partners delivered more than 1.2 million passengers onto the Etihad Airways network. airberlin, in which Etihad Airways holds a 29.21 per cent stake, made a very strong contribution, with more than 3 lakh passengers shared between their networks, delivering more than $130 million in total to the two airlines,” Hogan said.

Etihad’s Chief Financial Officer James Rigney said the airline was able to recover the $105 million equity investment made in airberlin in about seven months through a variety of measures including contract renegotiation.

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