Kannur airport work in 2 months

Thiruvananthapuram: Construction activities at the Kannur International Airport would begin within a couple of months. The project’s master plan was approved by the director board of the Kannur International Airport Limited on Wednesday.
Announcing this, ports minister K. Babu said in the assembly on Thursday that the environmental clearance for the project was awaited.
Replying to submission by A.P. Abdullakutty (Cong), the minister said seven firms have been shortlisted by the director board for participation in the financial bid for the air-side construction activities. Sanjos Gammon JV, Larsen and Toubro, TAV-Essar, EKO – Unity JV, OJSC Sibmost – Gayatri JV, GMR Infrastructure, and ITD Cementation India were the firms.

The master plan was prepared in consultation with agencies like the Director General of Civil Aviation, the Airports Authority of India and the Bureau of Civil Aviation Security, the minister said.
Babu said the defence ministry had extended the no-objection-certificate for the project by five more years and accepted the state’s plea to take ten acres of land on lease. The Kerala Road Fund Board would be constructing the green-filed roads to the airport.
http://www.deccanchronicle.com/130322/news-current-affairs/article/kannur-airport-work-2-months
 

Aircraft purchase freed from red tape

NEW DELHI: Indian carriers are now free from bureaucratic red tape that surrounded import of aircraft for fleet augmentation. Aviation minister Ajit Singh on Thursday disbanded the aircraft acquisition committee (AAC) where airlines' requests for getting aircraft have historically remained stuck for indefinite periods. Both schedule and non-schedule airlines and flying institutes can now induct planes as per their business plans, without seeking any nod from the ministry.
"Airlines decide their fleet size on commercial grounds. No airline will import planes if it does not feel the need to do so and there is no point in coming to us for seeking the nod to do so. I have decided to cut the bureaucratic red tape surrounding aircraft acquisition that only used to cause delays. The directorate general of civil aviation checks planes for airworthiness, safety and there is no need for any other approvals from the ministry as far as fleet is concerned," Singh said.
Airlines had been up in arms over the delays caused in the AAC. Airlines decide fleet size based on dynamic ground realities and hurdles in getting planes often meant airlines missing good business opportunities. The Prime Minister's Office had last year objected to Singh being the final approving authority of AAC after airlines conveyed fears that such a structure would only add to delays. The AAC has traditionally been headed by an additional secretary but Vayalar Ravi as aviation minister two years back had decided to have the minister as the approving authority, a practice continued by Ajit Singh.
In recent months, AAC was accused of sitting on requests from a leading low-cost carrier to import planes and the approval came after the ministry drew flak for this. The PMO is learnt to have pushed for smoother aircraft imports for airlines, especially in the wake of FDI rule change, which allowed foreign airlines to invest in desi ones or launch startups with Indian companies as majority stakeholders. Aviation industry insiders say the change in rules may have come after a nudge from the PMO.
After Thursday's move, airlines will only need the initial no-objection certificate from DGCA and an in-principle approval to import planes. "The in-principle nod is needed for meeting RBI norms that mandate some sort of government clearance before allowing a commercial entity to make payments to a foreign company," Ajit Singh said.
The impending Jet-Etihad deal and the soon-to-be-launched Air Asia India will now see more planes coming to Indian skies without any trouble from the ministry. Between December 2011 and March 2013, nine airlines that operate in India sought permission to import 97 planes and all were granted permission.
http://timesofindia.indiatimes.com/business/india-business/Aircraft-purchase-freed-from-red-tape/articleshow/19116639.cms

Delta in Talks to Buy Jets from Boeing, Airbus, Sources Say

Delta Air Lines is in talks to purchase small and wide-body jets from Airbus and Boeing in deals potentially worth about $6 billion at list prices, two people familiar with the matter said.
 Potential orders involve about 20 each of the planemakers' most popular families of jets -- the Airbus A320 or Boeing 737 in the medium-haul, narrow-body class and the Airbus A330 or Boeing 777 in the long-range, wide-body category, the people said.
 None of the parties involved agreed to comment.
 The sources confirmed a Bloomberg News report that Delta Air Lines Inc. (DAL) was considering buying planes including 10 to 20 of the A330 or the 777 wide-body aircraft worth $4.3 billion.
 Delta told an investor conference on March 4 that it needed to evaluate its needs for wide-body jets, but played down the possibility of a large order because of recent investments in its relatively young fleet.
 The airline said it saw "opportunities in the marketplace" to add selectively to its wide-body fleet and would be talking, for example, to Airbus. Airlines typically engage both major aircraft makers in any discussion to seek the best prices.
 Delta already operates all four of the aircraft types involved in the talks at both ends of the spectrum, making it possible for the plane-makers to offer aircraft without having to shoulder the heavy costs of helping the airline switch suppliers.
 The talks come on the heels of an exceptionally busy two weeks for aircraft orders as airlines chase fuel savings while trying to grow or replace their fleets. Industry body IATA earlier edged up its forecast for airline profits this year.
 On Tuesday, budget Irish airline Ryanair handed Boeing Co. (BA) its largest European order ever, a deal for 175 Boeing 737 jets worth $16 billion at list prices. The deal came a day after Indonesia's Lion Air on Monday picked European rival Airbus for a $24 billion order.
http://www.dailyfinance.com/2013/03/21/delta-boeing-airbus-aircraft-order-jets/

 

Inducting new aircraft just got easier

Under pressure from the airline industry and in the face of criticism about delays in inducting new aircraft, the Civil Aviation Ministry has disbanded the Aircraft Acquisition Committee.
 The six-member AAC, headed by the Additional Secretary in the Ministry, was vested with the power of clearing aircraft purchases for existing airlines as well as deciding on proposals for those wanting to enter the domestic industry. The newly constituted AAC was set up on October 31 last year.
 Now, aircraft import requests will be processed “administratively” by the Ministry. A request for aircraft import is likely to be denied only on grounds of safety and other regulatory compliance, Ministry sources said.
 The move is expected to facilitate setting up of new airlines and import of aircraft by airlines, private aircraft operators and institutes that offer flying training.
 The AAC has been mired in controversy with allegations early this year that it was delaying the import of aircraft that which domestic airlines like IndiGo planned to induct.
The move could facilitate starting of operations by airlines like AirAsia, which has tied up with Tata Sons and Telestra Tradeplace. The joint-venture company will still have to approach the Ministry of Civil Aviation for an initial No-Objection Certificate for starting an airline.
But unlike in earlier times, now the Domestic Transport (DT) Department in the Ministry of Civil Aviation will receive and process applications for new airlines.

“The DT department is a permanent part of the Government and will receive and process the application in normal course of its work. This will cut down the time taken to give clearance for a new airline,” a senior official of the Ministry of Civil Aviation said.
For import or replacement of aircraft, airlines will have to go to the Directorate-General of Civil Aviation rather than first seeking clearance from the AAC and then approaching the aviation regulator.
Ministry officials said that the five existing scheduled airlines, including Jet Airways, IndiGo, SpiceJet and Air India, will still need to get an initial NoC for acquiring an aircraft as this was a requirement of the Reserve Bank of India. Officials indicated that no proposal for aircraft import is likely to be rejected on the grounds that it could lead to over capacity in the domestic market. This was one of the reasons put forward for not allowing airlines like IndiGo to import more aircraft.
Terming the decision as “progressive,” IndiGo President Aditya Ghosh said it was a “significant step towards unleashing the true potential of aviation in India whereby the demand-supply anomaly may be addressed over time and millions more may be able to fly one day at lower fares.”
 Welcoming the decision, Amber Dubey, Partner and Head, Aviation, KPMG, felt that airlines were mature enough to decide on issues of aircraft import.
. http://www.thehindubusinessline.com/industry-and-economy/logistics/inducting-new-aircraft-just-got-easier/article4534818.ece
 

Indigo launches 6 new flights on domestic sector

IndiGo has launched six new flights on its domestic network as of March 20. The airline will now operate its fifth daily and direct flight between Mumbai and Kolkata, a third daily and direct flight between Mumbai and Nagpur and a third daily and direct flight between Mumbai and Jaipur.
 IndiGo currently operates 405 flights connecting 33 destinations across the nation.
 On the international sector, IndiGo launched its first daily and direct flight between Thiruvananthapuram and Dubai, a second daily and direct flight between Mumbai and Dubai and a new daily and direct flight between Chennai and Singapore.
 The airline also launched its fifth daily and direct flight between Delhi and Chennai and a second daily and direct flight between Delhi and Kochi
http://www.thehindubusinessline.com/industry-and-economy/logistics/indigo-launches-6-new-flights-on-domestic-sector/article4533471.ece

Chennai’s new airport terminal gets going, finally

At 1.12 p.m. Kathirvel, a carpenter, was the first passenger to exit Gate 1 at the new Chennai airport terminal, which was opened for arrivals today.
 Clad in a white dhoti and a blue shirt, 55-year-old Kathirvel arrived at the terminal in a GoAir flight (G8 302) from Port Blair.
 “The terminal looks really beautiful. I would love to talk more but I am in a hurry. My mother has died and I need to buy a flight ticket to go to Madurai,” said a tired-looking Kathirvel, who had to run to the old terminal, about 500 metres away, where flights depart from for now.
For the 93 passengers in the GoAir flight, the new terminal gave a feel of Chennai’s latest pride. The passengers also included a couple of tourists from Greece, traders and residents who were delighted to land at a spanking new terminal.
 The GoAir flight parked in its allotted bay, and the passengers walked in to the terminal building through a new aero bridge. Battery operated tugs of Bhadra International, the private contactor in charge of the ground handling service, were used to transport the baggage from the flight to the terminal.
 Satish Deshmukh, Vice-President (Operation), Bhadra International, said the baggage was delivered in double quick time. By the time passengers reached the belt, the baggage was on it.
Clean terminal
“It’s very clean; and we were offered mango juice on arrival,” said Anastasios Sagris, a Greek national, who could not stop grinning ear to ear. Along with a friend, Sagris was looking through a Lonely Planet travel guide to go to the Koyambedu bus stand, the city’s main terminal, to catch a bus to Goa.
 “You have to go to the old terminal and take a city bus to Koyambedu,” a journalist told them helpfully. The media was not allowed inside the terminal and mediapersons hung around outside the terminal talking to passengers.
 Soft launch
GoAir was the only domestic flight to arrive at the terminal for the soft launch. The terminal will handle one flight a day for the next four days starting SpiceJet on Friday followed by IndiGo, Jet Airways and Air India in the subsequent days.
 No match to Delhi
While highly impressed with the new terminal, 85-year-old Hussain, a resident of Port Blair, felt the Delhi airport was far better. Hailing from Ambur, a famous leather cluster in Tamil Nadu, Hussain said compared to the old ‘stinking’ terminal, the new one was clean. “However, we need to get to the size and standards of Delhi.”
 Friends and relatives of the arriving passengers were griping as they were not informed of the arrival in the new terminal.
“We were waiting at the old terminal without realising that our people had already arrived at the new terminal,” said John Jacob, who was waiting for his girlfriend.Arriving passengers had to walk quite a distance to take a cab home. Auto-rickshaws were even farther away, outside the airport complex.

Autorickshaw drivers Pandiyan and Saravanan said, never mind the new airport, they were still waiting for over an hour to find a passenger. “Everybody is booking call taxis,” they grumbled.
The Airports Authority of India, which claimed to have constructed the new terminal at a cost of Rs 2,015 crore, will put to test the new terminal with arrival of domestic passengers only. The departure will continue in the old terminal.
 After streamlining all processes related to arrivals, departures will start soon, said an official of the Airports Authority of India, who did not want to be named, standing outside the terminal.
http://www.thehindubusinessline.com/industry-and-economy/logistics/chennais-new-airport-terminal-gets-going-finally/article4533674.ece

User charges may rise by 75% at Haldia port

User charges may increase by nearly 75 per cent at Haldia port with the exit of ABG-LDA and the appointment of a new contractor for mechanised cargo handling.
According to sources, the two interested bidders – T.M. International Logistics Ltd (a Tata Steel joint venture and Mumbai-based J. M. Baxi and Co) – quoted average per tonne mechanised cargo handling charges of Rs 247 and Rs 259, respectively, at berth No 2 and 8. These rates are at least three times higher than the Rs 75/ tonne charged by ABG.
If KoPT now demands the same amount offered by ABG, the final user charge in the mechanised berths is likely to skyrocket to Rs 399 a tonne. When ABG was the contractor, users paid Rs 227/tonne. Out of the total, KoPT was paid Rs 152.
“The bidders have quoted a much higher rate than the previous contractor. Since KoPT did not mention any rear price while re-tendering for the contract, the bidders quoted unrealistic handling fees. The burden may be passed on to the users,” a KoPT official told Business Line requesting anonymity.
 He pointed out that any further increase in user cost at Haldia port would hit its cargo flow badly.
 But that’s not all. KoPT will now engage in a negotiation with the bidders to determine its share of revenue from the berths.
At a recent seminar, R. P. S. Kahlon, Chairman, KoPT, said, TMILL quoted around Rs 240 for mechanised operations at these two berths and the port trust was negotiating with the company to bring it down to around Rs 200. At present, TMILL operates at berth No 12 and it is also in the fray for mechanisation of berth No 4B. The KoPT Chairman, however, did not respond to repeated calls and a message asking for a comment in this regard on Wednesday. On an average, HBT handled five million tonne cargo annually at berths 2 and 8 .
It may be recalled that HBT and TMILL quoted Rs 75 and Rs 100 as handling charges in 2009when the tender was floated for the first time.
http://www.thehindubusinessline.com/industry-and-economy/user-charges-may-rise-by-75-at-haldia-port/article4534483.ece

Jet seeks to operate more international flights

Jet Airways plans to expand its European operations by flying to Amsterdam. The airline is also looking to increase the number of flights that it currently operates to Bangkok, Abu Dhabi, Dubai and Singapore.
 The request for allowing the airline more flights was sought in a letter the airline Chairman, Naresh Goyal, presented to the Ministry of Civil Aviation at a meeting here on Wednesday.
The request for operating more international flights comes within three weeks of the Ministry seeking requests from other airlines to fly on the international routes earlier operated by the now-grounded Kingfisher Airlines.
The Government move opened an opportunity for the domestic airlines to operate an additional 25,000 seats to Singapore, Dubai, Nepal and Bangkok. Kingfisher Airlines was allowed to operate 140 weekly lights to eight international destinations, including London, Hong Kong, Thailand, Nepal and the UAE.
At present, Jet Airways’ network in Europe is limited to London, Milan and Brussels. The airline has already been given Government permission to operate flights to Frankfurt, Paris, Dusseldorf, Barcelona and Zurich.
The issue of Etihad acquiring a stake in Jet Airways was also discussed at the meeting, although details of the deal and by when it is likely to be concluded were not revealed at the meeting, the Civil Aviation Ministry officials claimed.
http://www.thehindubusinessline.com/companies/jet-seeks-to-operate-more-international-flights/article4530310.ece

Government scraps aircraft acquisition committee

Barely five months after reconstituting it, Civil Aviation Minister Ajit Singh today scrapped the Aircraft Acquisition Committee, which used to grant permission to companies to import planes. Airlines, charter companies and flying clubs will now be able to import aircraft without the permission of the ministry.
 “Henceforth, only an initial no-objection certificate for operating air transport services and in-principle approval for acquisition of aircraft by scheduled operators will be required,” said the ministry.
 Singh told Business Standard, “There will be no unnecessary bureaucratic hurdles and now no one can complain that civil aviation ministry is favouring one airline over another. We are liberalising the system. Now, only an in-principle clearance from the ministry will be required for import of planes, as it is essential under the RBI (Reserve Bank of India) guidelines.”
 Experts and airlines hailed this as a positive move. “The committee was not required and served no purpose except adding to red tape. We welcome this decision and we will have to work towards reducing all regulatory barriers,” said Kapil Kaul of the Centre for Asia Pacific Aviation.
 IndiGo President Aditya Ghosh termed the decision “a significant step” towards unleashing the potential of aviation in India.
 According to Jet Airways’ CEO Nikos Kardassis, the move would help airlines plan and manage fleet requirement more effectively.
 This year, IndiGo plans to add 16 Airbus A320s, while Jet is inducting two ATR-72s and eight Boeing 737s. “Aviation is a competitive business. It is highly cost-intensive. Airlines are free to import planes according to their requirement. Let market dynamics dictate their decision. If any airline inducts more planes than actually required, it will go down the drain,” said Singh.
 The minister had reconstituted the acquisition committee in October 2012. H S Khosla, former director-general of civil aviation, was included in the revamped committee. The ministry also announced the procedure for the consideration and approval of applications are being streamlined.
 Questions were once again raised over the government controlling the imports of planes after IndiGo’s proposal for import of 16 planes met road block. The proposal was subsequently approved.
 However, reconstitution of the committee generated some controversy and there were media reports that the Prime Minister’s Office (PMO) ordered a stay on the committee.
 Singh denied that the decision to scrap the committee has anything to do with complaints to the PMO. “The allegation was that I have become chairman of the committee and usurped all powers, and all this was not correct.”
http://www.business-standard.com/article/economy-policy/ajit-singh-scraps-aircraft-acquisition-committee-113032100448_1.html
 

Jet seeks to operate more international flights

Jet Airways plans to expand its European operations by flying to Amsterdam. The airline is also looking to increase the number of flights that it currently operates to Bangkok, Abu Dhabi, Dubai and Singapore.

The request for allowing the airline more flights was sought in a letter the airline Chairman, Naresh Goyal, presented to the Ministry of Civil Aviation at a meeting here on Wednesday.
The request for operating more international flights comes within three weeks of the Ministry seeking requests from other airlines to fly on the international routes earlier operated by the now-grounded Kingfisher Airlines.
The Government move opened an opportunity for the domestic airlines to operate an additional 25,000 seats to Singapore, Dubai, Nepal and Bangkok. Kingfisher Airlines was allowed to operate 140 weekly lights to eight international destinations, including London, Hong Kong, Thailand, Nepal and the UAE.
At present, Jet Airways’ network in Europe is limited to London, Milan and Brussels. The airline has already been given Government permission to operate flights to Frankfurt, Paris, Dusseldorf, Barcelona and Zurich.
The issue of Etihad acquiring a stake in Jet Airways was also discussed at the meeting, although details of the deal and by when it is likely to be concluded were not revealed at the meeting, the Civil Aviation Ministry officials claimed.
http://www.thehindubusinessline.com/companies/jet-seeks-to-operate-more-international-flights/article4530310.ece

Chennai airport: User fee for overseas travellers put off for now

International passengers using the Chennai airport need not pay the user development fee (UDF). The levy has been deferred till further notice, according to the Directorate General of Civil Aviation.

From April 1, passengers purchasing a domestic flight ticket for travel from Chennai will have to pay a UDF of Rs 166. However, passengers buying a ticket for an international flight will be spared from paying Rs 667 as UDF till further orders.

The DGCA said that the UDF will be applicable to all domestic passenger tickets purchased on or after April 2, 2013 instead of March 10, 2013.
The Airports Economic Regulatory Authority has approved a UDF of Rs 166 on each passenger taking a domestic flight and Rs 667 on a passenger boarding an international flight. The authority regulates tariffs for aeronautical services rendered at major airports, determines other airport charges and also monitors the performance standards of such airports.

The collection of UDF was pushed to April 1 as the new terminal building was not ready for use. The new terminal building is likely to be partially operational from March 22 when the first domestic flight arrives. But there is still no clarity on when airlines will begin international operations from the new terminal.
Senior Government officials, including Additional Secretary and Financial Advisor, Ministry of Civil Aviation, S. Machendranathan, said that since the basic infrastructure at the new terminal was not ready there was no point in collecting the fee.
http://www.thehindubusinessline.com/industry-and-economy/logistics/chennai-airport-user-fee-for-overseas-travellers-put-off-for-now/article4530322.ece

IATA projects modest financial improvement in airline industry

Global airlines’ body IATA today projected a “modest” improvement in the financial performance of the industry this year, saying Asian-Pacific carriers were expected to deliver the “largest absolute” contribution.

“The improvements in industry profitability are encouraging. But they must be kept in perspective. We are projecting that airlines will make a net profit of $10.6 billion on $671 billion in industry revenues.

“By comparison last year, Nestle, a single company, made over $11.5 billion in profit on revenues of about $100 billion,” said Tony Tyler, chief of the International Air Transport Association (IATA) while announcing the 2013 financial outlook for the global airline industry.

The IATA estimated the airlines to produce a combined net post-tax profit margin of 1.6 per cent, with a net post-tax profit of $10.6 billion.

“Chronic anaemic profitability is characteristic across most of the aviation value chain when compared to other sectors. It will require more than improving economic conditions to fix,” Tyler said.

The IATA estimated that jet fuel would average at $130 a barrel and the combined airlines’ fuel bill would grow to $216 billion, accounting for 33 per cent of airline costs.

Even though airline cash flows were showing better than expected performance, given high costs and weak growth it varied by region and airline size.

“Large Asian carriers have seen the most improvement. The trend in the US is flat but comparable with pre-recession levels, while European airlines are struggling with the lingering recession,” the IATA study showed.

The Asia-Pacific airlines were expected to deliver the “largest absolute contribution to industry performance” with a $4.2 billion net profit this year.

Asian carriers, which covered about 40 per cent of the air cargo market, would be the biggest beneficiaries of the expected upturn in cargo demand, it said
http://www.thehindubusinessline.com/industry-and-economy/logistics/iata-projects-modest-financial-improvement-in-airline-industry/article4529814.ece
 

Soon, photo must to buy air tickets

New Delhi: India’s aviation security establishment plans to set up a massive logistical exercise for domestic passenger profiling to create a database of passengers and enable their instant identification with photographs and other details.
If a passenger books a ticket on a travel portal or directly with an airline, he/she will soon be asked to upload or submit his/her photograph and other personal details.
This data will then be forwarded to the Bureau of Civil Aviation Security to be stored in the database. The ticket barcode will instantly display the passenger’s photo at airport entry points, sources said.
Profiling to help track passengers
Domestic passenger profiling in the civil aviation sector would make it easy for authorities to track which passenger has travelled where, and the number of times he/she has gone to a particular place. Noting that brainstorming is on to work out modalities, sources said, “A database will be created along with photo-identity (details) which could contain data of around 10 million passengers.”
The cost involved in creating such a database will not be prohibitive, whereas the benefits are tremendous, they say. It is also being debated if the database should have biometric details about passengers.
The creation of such a database is an ambitious exercise that will involve airlines, website portals and airport operators, besides government agencies. “Other aspects, like the software to be used, is yet to be discussed,” a source said.
http://www.deccanchronicle.com/130321/news-current-affairs/article/soon-photo-must-buy-air-tickets

Cool branding moves IndiGo from a budget airline to a preferred business carrier

NEW DELHI: In 2006, when global advertising agency Wieden+Kennedy took on the task of building a new, cool airline brand from scratch, their peers laughed. Indian passengers, the conventional wisdom went, cared only about price, and no amount of branding could change that. "Today, they don't ask us that question anymore," says Mohit Dhar Jayal, MD, Wieden+Kennedy Delhi.
 Despite launching squarely in the budget airline segment, IndiGo promoter Rahul Bhatia and his agency were clear about their goal: IndiGo would be the third cool international budget carrier after JetBlue and Southwest Airlines of the US.
 And it's got there. According to aviation expert Rajan Mehra, IndiGo now carries more corporate passengers than leisure travellers. "The mix of corporate and holiday travellers for IndiGo has increased to 60:40," he says.
 This transition in positioning and perception was the result of a very conscious plan put together by the brand and agency. At the time of launch, print and outdoor media were used to focus on launch markets, with the tagline "Ready for take-off".
 The airline's first TV commercial was clearly targeted on a first-time or at least infrequent traveller, describing how IndiGo made the process easier. But quite soon, focus was switched to customer touch points - everything from the design of the safety instruction card, to the availability of a boarding ramp instead of a staircase, to the packaging of in-flight snacks were aimed at being more engaging, while still on-brand. This was the crucial phase when the voice of brand IndiGo would speak directly to the passenger, drawing attention to the high standards of service.
 "The real challenge was the transition to the new ideology and clientele because low-cost carriers behave in a certain way. They wear the 'common-man' badge, like say Air Deccan. Once that was overcome, the position only evolved," recalls V Sunil, executive creative director, W+K.
 The next stage was a subtle switch to target the corporate passenger by emphasising on-time performance. One of IndiGo's most popular TV commercials in 2010 featured a musical-style depiction of the link between making its processes more efficient and getting its passengers to their destinations on time. A voiceover added: "When we get our work done on time we become the world's most powerful economy on time; on time is a wonderful thing."
 Indigo's outdoor advertising of new flights also emphasises their value to the business traveller, focusing on metro routes and frequency. Today, it has companies like Airtel, Coca-Cola, the Tata Group, GSK and the Aditya Birla Group signed up as corporate clients - giving them a premium seat allocation and on-board meal bundled with each ticket purchased. Global brand consultancy firm Wolff Olins feels that IndiGo's high service standards are the key to its share of the corporate travel market. "For a business traveller, IndiGo stands for reliability. It then stands for low cost," says Zia Patel, Wolff Olins India strategy head.
 But like all market leaders, there is now tremendous pressure of expectation. Anand Halve, founder of communications consultancy firm chlorophyll points out: "When you start slipping on things, people start noticing. They have a huge lead compared with rivals and so a margin of error too, but not for long." Fresh competition from AirAsia could mean trouble as well. "The biggest mistake that IndiGo could do is to ignore AirAsia. They should not let AirAsia prove that the latter could be better. The focus should be to enrich, extend and deepen the brand," Halve added.
http://articles.economictimes.indiatimes.com/2013-03-20/news/37872611_1_indigo-promoter-rahul-bhatia-business-traveller-brand

Lion Mentari Orders 234 Airbus Jets to Challenge AirAsia

Feb. 27 (Bloomberg) -- Harald Wilhelm, chief financial officer of European Aeronautic, Defence & Space Co., talks about the company's earnings report today and a change in battery type in subsidiary Airbus SAS's passenger aircraft. Wilhelm speaks with Tom Keene on Bloomberg Television's "Surveillance." (Source: Bloomberg)
Lion Air needs more aircraft as it adds flights in a region where air travel is expected to grow more than 6.4 percent annually through 2031. Photographer: Adek Berry/AFP/Getty Images
Chief salesman of Airbus John Leahy said, “We’ve always wanted to be a big player in Indonesia, a country of 17,000 islands and 240 million people.” Photographer: Balint Porneczi/Bloomberg
.Lion Mentari Air, which serves more than 36 destinations, is establishing a low-cost carrier in Malaysia to challenge AirAsia Bhd. (AIRA), Airbus’s biggest A320 customer. The carrier, which ordered 230 Boeing Co. (BA) planes last year, needs aircraft as it adds flights in a region where air travel is expected to grow more than 6.4 percent annually through 2031.
Lion Air already has 700 planes on order and expects to have ordered 1,000 planes within “two to three years,” President Rusdi Kirana said yesterday.
Airbus said it may boost production rates for the single- aisle jetliners beyond 42 a month following the order, which includes 60 current-generation A320s, 109 A320neos and 65 A321neos worth about $24 billion at list prices.
“It’s getting tight for deliveries,”Leahy said in an interview yesterday. “I have only a handful of delivery slots left for 2019. We’re looking at whether we can increase the rate.”
Airbus had held off on plans to accelerate output because of concerns about suppliers keeping up, he said.
Leahy said no firm decisions will be required for two years or so, and that Airbus would prefer to accelerate output after the ramp-up to all-Neo production from late 2015 through 2017.
Budget Airlines
Leahy declined to comment on pricing for the Lion order yesterday. Customers typically buy planes at discounts. The order pushes the carrier into the ranks of the top five A320 operators, after AirAsia, Deutsche Lufthansa AG (LHA), India’s IndiGo and EasyJet Plc.
More than a dozen budget airlines began operations in Asia- Pacific in the past 15 years as economic growth in China, India and Southeast Asia enables more people to fly for the first time. Singapore Airlines Ltd. (SIA) started Scoot and Tiger Airways Ltd. and Qantas Airways Ltd. (QAN) started Jetstar Airways Pty.
AirAsia has grown into Asia’s biggest discount airline since its takeover by Tony Fernandes and partners in 2001. The carrier, based in Sepang, Malaysia, has since set up ventures in the Philippines, Japan, Thailand, India and Indonesia.
In 2011, AirAsia ordered 200 Airbus A320neo aircraft valued at $18 billion in the biggest order for the planemaker.
Lion vs AirAsia
Discount carriers have secured about a quarter of the region’s air travel market in the past decade. The region will account for 33 percent of global passengers in 2016, according to the International Air Transport Association, and HSBC Holdings Plc has said four out of five airports in Asia are operating at or above their designated capacity.
Lion Air started operations from Indonesia in 2000 with one aircraft, according to the airline’s website. The airline was the launch customer for Boeing’s 737-900ER, it said.
Lion Air-backed Malindo Airways will sell tickets at prices matching “or maybe lower” than AirAsia’s, Kirana, Lion Air’s founder, said last year. Malindo will draw its fleet from aircraft ordered by Lion Air Group, including 787s for possible Europe flights, Kirana said in September.
http://www.bloomberg.com/news/2013-03-18/airbus-wins-24-billion-lion-air-order-for-234-airliners.html

European airports woo Indian airlines

European airports are wooing Indian airlines in the wake of intense competition from aviation hubs such as Dubai and Doha.
 According to civil aviation ministry data, 37 million passengers flew to or from India in 2010-11, of which 11.4 million were connected by hubs outside India. Dubai, Doha, Frankfurt, Sharjah and Singapore are the top aviation hubs preferred by Indians.
 Now, airports in Europe, including those in Amsterdam, Dublin, London, Gatwick and Munich, are luring Indian airlines to start direct services. Representatives from these cities met Air India and Jet Airways executives at the Routes Asia conference here over the past two days.
 "We are discussing with Indian airlines. Munich would be a logical choice for Jet Airways  in Germany,'' said Oliver Dersch, director (traffic development) of the airport. "Etihad owns Air Berlin, which has a wide network from Munich. Air Berlin flew four million passengers from Munich last year.” Munich airport is also expanding its terminal, to enable it to handle 65 million passengers a year, up from 50 million.
 Currently, only Lufthansa flies from Munich to India. Jet Airways had secured government approval to start flights to Munich and was evaluating plans to shift its European hub there, from Brussels, as a part of wider code share partnership with Lufthansa but the plan has not taken off.
 "The Indian market is important  with major potential for growth. We are in dialogue with Indian carriers,'' said Wilco Sweijen, director (aviation marketing) at Amsterdam's Schiphol airport. Traffic volume in 2012 between India and Amsterdam on direct flights was 372,00 and of these, 75 per cent was connecting traffic. "It is not the money which brings airlines to Schiphol but the market,'' he said, adding the development of an information technology hub in Amsterdam would boost traffic between the two countries.
 A few years earlier, Kingfisher Airlines had indicated plans to start a hub in Amsterdam. However, the airline's operating permit was suspended last year and it stopped flying on international routes 10 months earlier.
 Gatwick, one of the airports at London, is also making effort to attract Indian carriers. Air India, British Airways and Jet Airways have direct flights to London's Heathrow airport but Gatwick is not connected. "We have a lower passenger fee than Heathrow and utilise only 75 per cent runway capacity at the moment,'' said Simon Edwards, business development manager at Gatwick, noting Heathrow suffers from capacity constraints.
 "Between India and North America,  Heathrow is the second largest hub handling more passengers than direct flights. Heathrow works closely with airlines to identify and facilitate growth opportunities. For example, Jet Airways recently reconfigured its aircraft to facilitate an additional 100 seats per day. Air India has also announced that its 787s will begin flying to Heathrow in the very near future; although a smaller aircraft, the improved product on these new aircraft is likely to attract incremental passengers who value passenger experience,'' Chris Butler, Heathrow airport's airline  business director said in an email response.
 http://www.business-standard.com/article/economy-policy/european-airports-woo-indian-carriers-113031900284_1.html

Gulf Air plans to focus on India, West Asian routes

Gulf Air, the national carrier of Bahrain, plans to focus more on the Indian subcontinent, Gulf and West Asian countries.
 Kamal bin Ahmed Mohamed, Bahrain’s Minister of Transportation, said the existing route network was reviewed to provide a better arrangement.
“The focus will now be on the Indian subcontinent and West Asian destinations such as Egypt, Lebanon and Sudan, rather than European destinations,” he said.
Gulf Air today has the maximum number of inter-connecting flights in the Gulf Cooperation Council countries.
Restructuring process
The Minister, who holds the aviation portfolio, said the airline has embarked on a restructuring process, which would be completed in two years through a 185 million dinar package. The aim is to reduce the fleet size and prune staff strength.
With the ongoing restructuring process, he said the number of aircrafthas come down to 26 from 38. “We have developed a new strategy and are very optimistic,” he added.
The restructuring process has started yielding results and now the airline is on the right track to achieve overall cost savings, he said.
It laid off 15 per cent of its staff and cut four of its loss making routes since January as part of the restructuring process .
The Minister was in Kerala as part of a business delegation from the Gulf nation for mutual development and growth through better economic ties.
He pointed out that Bahrain does not subsidise the airlines like other countries. We cannot afford it, he said.
At present, Gulf Air operates six daily flights to India — two to Delhi and 2 to Mumbai and one each to Chennai and Kochi.
http://www.thehindubusinessline.com/industry-and-economy/logistics/gulf-air-plans-to-focus-on-india-west-asian-routes/article4526249.ece
 

Chennai’s new airport terminal set to take off this Friday

Chennai’s new and much-delayed airport terminal will get off to a halting start when it begins operating this Friday.
 The new terminal will receive only arriving passengers and that too only on domestic flights.
 The use of the international terminal has been held up due to another glitch in a long list of problems – the shortage of customs and immigration officials.
 Passengers on the Friday morning flights of the Chennai-based low cost airline SpiceJet or GoAir could be among the first to get an experience of the glass-fronted modern terminal.
All five airlines – Jet Airways, SpiceJet, GoAir, Indigo and Air India – will start using it from Friday for their domestic arrivals, Chennai Airport Director H.S. Suresh told Business Line.
 Domestic departures will continue in the old terminal for at least a week. The one-week gap is to ensure that all the processes and systems are in place and it is not uncommon for airports to start operations in such a phased manner.
The decision to upgrade Chennai airport was taken in 2007 and a string of factors from land acquisition, power supply, delay in tendering for food and beverage stalls and, recently, a controversy over ramp design have held up the project. The new domestic and international terminals have a combined capacity of 1.33 lakh sq mt.
 Ramp glitch
The handling capacity will increase to 16 million domestic passengers and seven million international passengers from the present six million (domestic) and three million (international). Earlier this month, there was a controversy over the ramp used for baggage movement, which required the use of battery operated tugs that airlines felt were too expensive to rent.
The use of diesel operated tractors was prohibited since the terminal is a green building. Finally, the Airports Authority of India prevailed on the tug operator Bhadra International to provide the service at a lower rate.
 Two years ago, the Chennai airport was ranked as low as 153 in the Airport Service Quality survey by the Airports Council International in Asia.
 Now, there is a ray of hope that it will be in the top 100 once the modern terminal starts full fledged operations.
http://www.thehindubusinessline.com/industry-and-economy/economy/chennais-new-airport-terminal-set-to-take-off-this-friday/article4526413.ece

Resuming Boeing 787 flights in weeks is best-case scenario: ANA

Boeing Co's goal to have its grounded 787 Dreamliner jets back in the air within weeks is a best-case scenario and too uncertain for the aircraft's biggest customer to plan the plane's operational return to service.
 All 50 of the technologically-advanced 787s in service have been idled since mid-January following two battery incidents at a U.S. airport and on a domestic flight in Japan. Boeing last week unveiled a new battery system and predicted the 787 would fly again within weeks rather than months.
Asked whether Boeing was presenting a best-case scenario, Osamu Shinobe, the architect of All Nippon Airways' strategy to put the fuel-efficient 787 at the center of the airline's fleet planning, said "That's what we understand it to be."
"The problem is we don't know how long the Federal Aviation Administration (FAA) will take to finish its checks (on the new battery system)," he told Reuters in an interview. Shinobe, who joined ANA from college in 1976, will run the carrier from April following a switch to a holding company structure.
For Boeing to meet its target, Shinobe explained the planemaker needs to complete certification testing this week, gain quick FAA approval followed by an airworthiness directive soon after. It would then have to transport all the parts and equipment to 787s parked around the world to begin installing the new batteries. Boeing has said that could take a week per plane.
"If that happens, then what Boeing is saying is not a lie," said Shinobe, 60, noting it could take a month to put the new battery systems on all ANA's 17 Dreamliners, with Boeing likely to work on three jets at a time.
Twelve of ANA's 787 planes are parked in Tokyo, with another four at regional airports in Japan and one in Frankfurt. Each will be fixed at its current location. ANA has canceled more than 3,600 domestic and international flights since the 787 was grounded through to end-May.
BATTERY UPGRADE
On Friday in Tokyo, Boeing unveiled a new fire-proof battery packed with added insulation, heat-resistant material and spacers and encased in a steel box. The aircraft maker has also added a specialized pipe to vent gases produced by any overheating directly outside the aircraft.
The FAA last week approved Boeing's plan to test its new battery for certification. Boeing said it finished three tests of the new system and was performing three more in cooperation with the FAA, allowing it to estimate when the plane would be back in the air. The head of Boeing's commercial aircraft company, Ray Conner, briefed Shinobe on the battery fix in Tokyo on Thursday.
Boeing's prediction drew scepticism from some regulators and industry experts, who said it was too early to say when the Dreamliner would fly again with the root cause of the battery overheating still unknown.
Boeing also faces public hearings next month on the safety of its batteries. The U.S. National Transportation Safety Board is looking into what caused the battery failures and the original process used to certify the power packs.
Japan's Civil Aviation Bureau said it was "inappropriate" for Mike Sinnett, the 787's chief engineer, to have said the cause of the overheating may never be discovered.
Once regulators approve the battery fix, Boeing plans to install the new system in its 787s in the order they were delivered, with ANA heading the queue.
Shinobe said ANA has no plans to change its outstanding orders for another 66 Dreamliners, and expects to take delivery of 10 new planes in the next 12 months. Rival Japan Airlines Co has seven Dreamliners, with another 38 on order.
http://www.reuters.com/article/2013/03/18/us-boeing-dreamliner-ana-idUSBRE92H13J20130318
 

U.K. firm wins Maldives airport project

Maldives has chosen U.K.-based Lagan Construction to develop the Addu International Airport.
Managing Director of Maldives’ State Trading Organisation (STO) Shahid Ali said that Lagan Construction and Danish company MT Hojgaard had submitted bids for the project.
“Out of them, Lagan had submitted the most responsive bid in the bid evaluation process. So Lagan has been shortlisted,” Mr. Shahid was quoted as saying in local media.
Mr. Shahid said discussions were under way with Lagan to implement the project.
Maldives had last year terminated a $511-million project awarded to Indian infrastructure major GMR for upgrading and development of the Male International Airport.
 The termination had led to a row with GMR dragging the matter to an arbitration Court in Singapore. At present, Maldives and GMR are in the process of working out a compensation package
http://www.thehindu.com/news/international/uk-firm-wins-maldives-airport-project/article4526775.ece