'Air India loses over Rs 48 cr due to delay of flights in last 3 years'

National carrier Air India has lost over Rs 48 crore due to delay of its flights in last three years and its services on only 14 routes out of 202 were meeting the total cost of operations.
 "The estimated loss to Air India as a result of delays to its flight during the three years were Rs 13.44 crores in 2009-10, Rs 15.75 crore in 2010-11 and Rs 19.48 crores in 2011-12," Minister of State for Civil Aviation K C Venugopal informed the Rajya Sabha today.
 He said at times flights are delayed due to technical, operational, commercial, weather and miscellaneous reasons which are beyond the control of the airlines.
 While replying to a separate question, the minister said that out of 202 routes where AI is providing its services, only 14 were meeting the total cost of operations.
 Services on 12 routes were not meeting the fuel cost while 74 of them were meeting the fuel cost but not meeting the cash cost, Venugopal said.
 The national carrier's 102 routes were meeting the cash cost, but not the total cost, he said.
 The minister also informed the House that the government had infused equity of Rs 9,000 crore in the airline since 2009-10 till date.
http://www.indianexpress.com/news/air-india-loses-over-rs-48-cr-due-to-de.../1088062/
 

Jet Air joins fare war, offers discounts on advance bookings

Travellers planning to book train tickets for the summer holidays now have the option of flying either Air India or Jet Airways, which are offering discounted domestic fares.
 On Thursday, Jet Airways joined the fare war that Air India kicked off on Wednesday.
The airline sent out a mail to the travel community saying that it had launched a ‘Special 60-day advance purchase fares on domestic flights’ of Jet Airways and JetKonnect.
The level of discounts that Jet Airways and its low-cost subsidiary are offering was, however, not too clear.
 The airline’s Web site is offering a special one-way all inclusive fare of Rs 5,775 for travel between Delhi and Thiruvanthapuram, while a one-way trip between Kochi and Delhi is available for Rs 5,167, if the booking is made at least 60 days in advance. A JetKonnect flight on the same route, which will see a passenger travel Delhi-Bangalore-Thiruvanthapuram is available for Rs 8,852.
 Similarly, a Delhi-Hyderabad flight booked on the Web 60 days before the journey is available for Rs 4,978 on Jet Konnect, while on Jet Airways the same flight is available for Rs 5,513.
A Delhi-Chennai flight is priced at Rs 5,775 on Jet Airways.
 Meanwhile, IndiGo, the Delhi-based low-cost airline said it would not join the price war. Asked if IndiGo, too, would lower its fares, an airline spokesperson said, “We always provide affordable fares.”
Travel agents pointed out that the IndioGo booking model follows a system that provides the lowest fare to travellers booking well in advance.
http://www.thehindubusinessline.com/todays-paper/tp-logistics/jet-air-joins-fare-war-offers-discounts-on-advance-bookings/article4509770.ece

Air India discounts spark price war

Air India Ltd's decision to offer discount on 60 days advance ticket booking has triggered a fare war, with rival Jet Airways (India) Ltd launching a similar scheme. Low-cost carrier IndiGo, too, has slashed fares to match Air India's levels, but has not announced any scheme.
 Air India expects to increase its revenue by 10-15 percent and improve its loads by offering discount fares. On Wednesday, the airline introduced the discount fare to attract leisure travellers. Jet launched its scheme today.
 Air India, Jet and IndiGo are offering one-way ticket on the Mumbai-Delhi route for around Rs 4,200, about 15-20 per cent lower than normal fares. However, the particular fare could not be found on Jet’s site for travel in May.
 According to people aware of the development, poor loads in the last peak summer season have prompted the government carrier to get aggressive in pricing. Air India's passenger loads last May and June were 66.5 per cent and 69.5 per cent, respectively, far lower than other airlines. During the same period, IndiGo's loads were 86 per cent, while Jet and SpiceJet had loads of around 75 per cent and 80 per cent, respectively.
 A senior Air India executive confirmed that the scheme would help the airline increase its revenue by 10-15 per cent. "During the last summer, our loads were very poor. The scheme will help improve advance bookings. There is a market segment comprising train travellers which books tickets months in advance. We want to tap that segment,” said the official, who did not want to be named. “This is not a limited period sale offer. A limited number of seats will be available on all flights and all routes.”
 Sharat Dhall, chief operating officer of Yatra.com, which sells air tickets online, said the discount fares would enable airlines to expand their market and grow passenger demand that had been sluggish since last year.
 "The drop in fares would help the airlines in filling up their seats. On an average, Indian airlines have a load factor between 75-80 per cent, which reflects that at least 20 per cent of the capacity is left unused.  Through these discounts, the airlines are aiming to fill up a certain amount of seats and bolster traffic on the weaker routes,'' said Vikram Malhi, country head of online portal Expedia.
 In January, SpiceJet launched Re 1 base fare and offered 1 million seats at Rs 2,013 for travel between February and April. Jet had also introduced discount fares and offered 2 million seats for travel till December-end last year
http://www.business-standard.com/article/companies/ai-s-discount-fares-leads-to-price-war-113031400512_1.html

AirAsia might fly from Chennai to Bangalore, Kolkata and Kochi

AirAsia might launch flights to Bangalore, Kolkata, Coimbatore, Kochi, Nagpur and Bhubaneshwar from its Chennai base when the Malaysia-based low-cost airline begins its India operations by the end of this year, according to an aviation website.Airline Network and News Analysis, a website tracking route planning and network development news, has evaluated AirAsia's potential network in India before naming these cities. The website's predictions are based on the potential passenger market size, distance from Chennai and competition.
Tony Fernandes, the airline's group chief executive officer, has earlier said the carrier will link tier II and III cities from Chennai with three-four airbus A320s in its initial launch phase. Fernandes has also ruled out operations to Delhi and Mumbai, because of high aeronautical tariffs.
An email query sent to Air Asia seeking comments on this story remained unanswered till press time. 
However, an official  involved in the launch of the service in India said all these routes were possible. "It’s too early to say which routes AirAsia will fly and which will be the inaugural service,'' the official said, requesting anonymity. 
"As low-cost airlines typically like to ‘join-the-dots’, Bangalore and Kolkata would seem to be the most likely tier-I opportunities, as AirAsia already flies to both destinations from Kuala Lumpur. Competition on the Kolkata route will be against Jet Airways, SpiceJet, Air India and IndiGo – a combined 56 weekly flights – and it will be fiercer on Bengaluru, where the same four airlines fly 101 weekly services,'' the website says.
It also states AirAsia could look to start new routes from Chennai. Currently, there are no direct flights from Chennai to Guwahati, Lucknow, Jaipur, Srinagar, Nagpur, Bhubaneshwar and Indore. The website claims the airline could launch flights to Nagpur and Bhubaneshwar, which  have  connectivity with Mumbai and Delhi, but do not directly have air link to Chennai. Another possible route includes Chennai-Surat, according to the websites.
The routes which AirAsia will fly will also depend on whether it secures a national operating permit or regional permit. While civil aviation minister Ajit Singh said there would be no problem in AirAsia getting a national permit, a section of officials in the ministry believe the airline should first be granted a regional permit.
Other issues related to potential network will depend on route dispersal guidelines, which make it mandatory on airlines to fly certain routes, including those to the northeast or Andaman, and availability of slots.
http://smartinvestor.business-standard.com/market/story-165238-storydet-AirAsia_may_fly_from_Chennai_to_Bangalore_Kolkata_Kochi.htm
 

Govt Steps in to Check Flight of KFA Lessors

In a damage-control exercise to prevent Indias image from being dented in the international market,the civil aviation ministry is likely to issue a guidance to release all Kingfisher Airlines aircraft parked at various Indian airports to international leasing companies which own them.The move comes in the wake of growing disquiet among major leasing companies over Indias refusal to hand over the aircraft and fears that much-needed aircraft finance would be stopped to Indian airline companies.The civil aviation secretary KN Srivastava is in the process of issuing a letter to all airport operators in 3-4 days,directing airports to release aircraft that have been de-registered by the authorities and are no longer held by Kingfisher.This would happen very soon, Arun Mishra,director general of civil aviation (DGCA) told ET.The ministry decided on this step after a meeting with interested parties and stakeholders,including Airports Authority of India,or AAI,in Delhi about a week back.Kingfisher Airlines ceased operations last year,following defaults in loan repayment to lenders and failure to pay salaries.The airline buckled under in October-November 2011,running out of cash and was forced to suspend operations.The airline could not find investors and DGCA was forced to suspend its licence in October last year.The return and de-registration will also decrease the number of aircraft on Kingfishers air operating permit to 15,with more recoveries in the pipeline.Experts said it will not be easy for Kingfisher to restart operations any time soon.The Vijay Mallya-promoted airline owes Rs 450-500-crore to major airports in India.It has parked nearly 30 out of its 66 aircraft fleet in various airports,out of which,15 have been deregistered.Big leasing firms have been increasingly vocal in their complaints against Indian authorities for not letting them take their assets back.
http://mobileet.timesofindia.com/mobile.aspx?article=yes&pageid=3&sectid=edid=&edlabel=ETKM&mydateHid=15-03-2013&pubname=Economic+Times+-+Kolkata&edname=&articleid=Ar00301&publabel=ET

Air India lures holiday travellers with low fare

As private airlines intensified low fare war, Air India on Wednesday launched a 60-day advance purchase fare scheme to woo vacation travellers on its domestic network offering prices close to air-conditioned train fares.
 The advance purchase fare (Apex) tickets are available for sale on various routes operated by Air India from today for travel commencing 60 days and beyond.
 Customers availing the offer can undertake travel from the middle of May, the airline said in statement.
 This latest Air India (AI) offer comes on the heels of the cash-strapped national carrier announcing 30-day and 7-day special fares recently.
 The Apex scheme targets vacation travellers during the peak holiday season luring them from train to air travel and is also an attempt to strengthen AI foothold in the leisure travel market, an Air India spokesperson said.
 The national carrier has priced the tickets matching closely with AC train fares.
 An all-inclusive 60-day advance purchase fare on Delhi-Mumbai sector would cost Rs 3,981 while on Delhi-Lucknow route it would cost as low as Rs 2,562.
 Similarly, an all inclusive Mumbai-Kolkata fare would be Rs 4,556, Mumbai-Bangalore Rs 2,930, Delhi-Chennai for Rs 4,852, Delhi-Kolkata and Delhi-Hyderabad would cost Rs 4,012. Kolkata-Hyderabad and Kolkata-Chennai would be Rs 3,798, according to airlines.
 The scheme is likely to invigorate a price war among the airlines, after budget carrier SpiceJet in January and Jet Airways last month came up with low priced tickets.
 The Chennai-based SpiceJet was the first one to slash air fares, after they sky-rocketed during the winter holidays, by introducing fares as low as Rs 2,013 in January, forcing the rivals to roll out similar schemes.
 Weeks after SpiceJet, full service carrier Jet Airways too put up two million seats on the domestic network up for sale as low as Rs 2,350 and IndiGo, GoAir and Air India too responded with similar offers.
http://english.samaylive.com/business-news/676525829/air-india-lures-holiday-travellers-with-low-fare.html
 

Maharaja bows, cuts fares for bookings done 60 days ahead

Book tickets enough in advance and the Maharaja will bow to your wallet.
Government-owned Air India is offering cheaper tickets if you book them 60 days ahead. The fare is comparable with I class AC train ticket cost.
So, a Delhi-Mumbai ticket will cost Rs 3,981 on Air India compared to Rs 5,590 for AC I class travel, but higher than the Rs 2,370 charged for an AC II tier ticket.
 Only, the Railways allows passengers to book tickets 120 days in advance and also doesn’t vary charges except for last-minute bookings under the Tatkal scheme.
 Almost 35 per cent lower than the regular fares, Air India is offering the discount on all the routes it flies on, but only on a limited number of seats.
 The fares are cheaper on the longer routes compared with that on the airline’s scheme of booking tickets 30 days in advance. That is, a Delhi to Kochi/Thiruvananthapuram ticket booked 60 days in advance costs Rs 5,062 compared to Rs 6,552 for a ticket purchased a month before the travel date. In contrast, the airline’s web site shows that the fares are the same for travel between Delhi and Bangalore regardless of whether the ticket is booked 30 or 60 days ahead.
 Air India’s new scheme, aimed at skimming away the cream of the Railways passengers, coincides with schools and colleges breaking for the summer.
 The airline is tailing its private sector competitors, SpiceJet and Jet Airways, that had come up with discounted fares for a limited period. However, none of the private sector airlines has responded to Air India’s latest initiative.
 Sharat Dhall, President, Yatra.com travel web site, feels Air India’s scheme could prompt some people to shift to flying.
http://www.thehindubusinessline.com/industry-and-economy/logistics/maharaja-bows-cuts-fares-for-bookings-done-60-days-ahead/article4503857.ece

Air India may resume Dreamliner flights by April-end

With the US aviation regulator approving Boeing’s plan to fix the battery-fire problem in the Dreamliner fleet, Air India (AI) today hoped to resume flights of this grounded aircraft by the later part of next month.
 As Boeing informed airlines in seven countries, which have grounded all the 50 Boeing 787s since January, about the FAA approval, sources said Air India could start operating these planes by the last week of April after tests on the lithium ion battery packages are successfully carried out by Boeing.
 A technical team from Boeing is expected to visit India soon to help resolving the problem, they said.
 The American aircraft manufacturer has developed new battery kits for the Dreamliners, which were now being tested by the US Federal Aviation Administration (FAA). The FAA would take 3-4 weeks to complete the tests and certify the kit.
 Once the kits are certified, these would be supplied to the airlines in seven countries, including India, by Boeing for being fitted in their planes.
 While it would take about a week for the new battery kit to be installed in each of the six Dreamliners which Air India has, the earliest time by which these planes would again be operational is April-end, the sources said.
 The 50 Dreamliners, which have been delivered so far to airlines in India, Chile, Ethiopia, Japan, Poland, Qatar and the US, were grounded after two battery-fire incidents in January.
 “Our top priority is the integrity of our products and the safety of the passengers and crews who fly on them,” Boeing chairman, Jim McNerney said, announcing FAA approval.
 “We’ve improved design features of the battery to prevent faults from occurring and to isolate any that do,” he said.
 Design feature improvements for the battery include addition of new thermal and electrical insulation materials and other changes, Boeing said, adding that the enhanced production and testing processes include more stringent screening of battery cells prior to their assembly
http://www.thehindubusinessline.com/industry-and-economy/logistics/air-india-may-resume-dreamliner-flights-by-aprilend/article4505082.ece?ref=wl_banking
 

Air India lures holiday travellers with train-to-air fare offer

With summer holiday season approaching, Air India has launched a 60-day advance ticket purchase scheme for vacation travellers with prices close to air-conditioned train fares.
 The advance purchase fare (Apex) scheme targets vacation travellers in the upcoming summer holiday season luring them from train to air travel and is also an attempt to strengthen the national carrier's foothold in the leisure travel market, an Air India spokesperson said.
 The advance purchase fare tickets are available for sale on various routes operated by Air India from today for travel commencing 60 days and beyond.The national carrier has priced the tickets closely with AC train fares. An all-inclusive 60-day advance purchase fare on Delhi-Mumbai sector would cost Rs 3,981 while on Delhi¿Lucknow route it would cost as low as Rs 2,566.
 The tickets can be bought through travel agents, online travel agents, Air India website and booking offices for travel commencing around the middle of May onwards, he said.
 The scheme is likely to invigorate a price war among the airlines, after SpiceJet in January and Jet Airways last month came up with low priced tickets.
http://www.indianexpress.com/news/air-india-lures-holiday-travellers-with-advance-fare-offer/1087447/

Boeing gets OK to test new 787 battery, wins big 737 order

SEATTLE — Boeing got approval from US transport regulators yesterday to start testing a redesigned battery for the 787 Dreamliner, putting it one step closer to getting the troubled airplane back into regular service.
Also yesterday, sources told Reuters the planemaker was close to signing a US$15 billion (S$18.7 billion) deal to sell about 170 single-aisle 737 planes to budget Irish carrier Ryanair.
Boeing’s shares closed up 1.5 per cent, hitting an almost five-year high, and extended gains in after-hours trade.
Late on Tuesday, the US Federal Aviation Administration said it approved Boeing’s battery certification plan and will permit two aircraft limited flights to test the new design.
Regulators grounded the 50 Dreamliners in use by airlines on January 16 after lithium-ion batteries burned aboard two planes, banning airlines from flying the 787 and stopping Boeing from delivering them. Although its factories continue to make the 787, Boeing is losing an estimated US$50 million a week while the planes are grounded.
“We won’t allow the plane to return to service unless we’re satisfied that the new design ensures the safety of the aircraft and its passengers,” US Transportation Secretary Ray LaHood said in a statement.
Boeing’s new battery — which it presented to the FAA in late February — is designed to minimize the chances of a short circuit, insulates the cells within the battery better and adds a new containment and venting system to prevent damage even if the battery catches fire.
The FAA said the new design must pass a series of tests before it is approved and that the agency will be “closely involved” in the certification process. The FAA has been criticized for delegating too much responsibility to manufacturers in certifying equipment.
The FAA’s decision was welcomed by Boeing.
“Today’s approval from the FAA is a critical and welcome milestone toward getting the fleet flying again and continuing to deliver on the promise of the 787,” Boeing Chief Executive Jim McNerney said in a statement.
Airline customers cautiously agreed. Steven Udvar-Hazy, chairman and chief executive of Air Lease Corp, which has 12 787s on order, called the FAA approval a “good step forward” during a panel discussion at an aircraft trading conference in Orlando, Florida.
“It is not flying yet. It is a first step,” said Udvar-Hazy, considered one of the world’s most influential airplane buyers. “I’m happy that the FAA has taken the constructive role in working with Boeing to address this problem.”
It remains to be seen whether or when the FAA, under political pressure to ensure no further mishaps, will approve Boeing’s redesigned battery.
The consensus among plane buyers and operators at the Orlando conference was that the 787 may be able to re-enter service in June, barring further surprises. However, that is not early enough for airlines to plan summer schedules. REUTERS
http://www.todayonline.com/business/boeing-gets-ok-test-new-787-battery-wins-big-737-order