Air passenger traffic in H1 2009 down by about 8 per cent

New Delhi: The financial downslide took its toll on the Indian aviation sector with the passenger traffic recording a negative growth rate of about 8 per cent in the first half of this year.
Passengers carried by domestic airlines between January and June came down to about 21.1 million from 22.9 million in the same period last year, thereby registering negative growth of approximately 8 per cent, official traffic data released today said.
However, the total domestic passengers carried by the scheduled carriers in the second quarter of 2009 (April to June) was 10.94 million as against 9.82 million between January and March.
In the second quarter of this year, Kingfisher Airlines and its low-cost subsidiary Kingfisher Red topped the list of Indian carriers by flying 2.77 million passengers. It was followed by Jet Airways and its subsidiary JetLite, together carrying 2.59 million, and Air India (Domestic) with 1.92 million.
Among the no-frill carriers, IndiGo flew 1.5 million air travellers, followed by SpiceJet (1.36 million) and GoAir (534,000), while full-business class carrier Paramount carried 230,000 air travellers, the data showed.
The percentage market share of the carriers between January and June showed that Air India (Domestic) cornered 17.5 per cent, Jet Airways 16.3 per cent, Jet Lite 7.4 per cent, Kingfisher Airlines (including Kingfisher Red) 25.3, SpiceJet 12.4, Paramount 2.1, GoAir 4.9 and IndiGo 13.7. Kingfisher and its low-cost subsidiary bagged the highest percentage share in the first six months of this year, removing Jet Airways from the top position. Jet and JetLite together had last year (January-June) cornered 29.3 per cent of the market share. Both no-frill carriers IndiGo and SpiceJet had a lower percentage share in the first half of last year, which improved during the same period this year.
14/07/09 Press Trust of India/Business Standard

Flight goes missing on radar

Calcutta: Another flight disappeared for half an hour from the secondary radar screen of the city airport on Monday, sparking fears of a mid-air mishap. The authorities blamed the incident on a snag at the airport.
Metro had reported on May 4 how five flights had gone missing from the screen within a span of a few days though the city air traffic control (ATC) had confirmed that all were in the airspace covered by the secondary or the Area South radar in Berhampore, Orissa.
The Singapore Airlines flight from Milan to Singapore vanished from the screen around 1.15am, within Calcutta’s flight information range.
Sources said the Varanasi ATC had no problems tracing the aircraft till it left its flight information range to enter that of Calcutta.
According to the city ATC, radio communication with the pilot remained unaffected. There were around 20 international flights in the vicinity at the time and hence, ATC officials apprehended a mid-air collision. The aircraft reappeared on the radar after around 30 minutes, when it was near Bhubaneswar.
Senior officials, on condition of anonymity, blamed it on snags in the airport’s secondary radar in Berhampore.
The radar, with its monitor at Calcutta airport, covers a radius of around 200 nautical miles and gives the altitude and speed of overlying aircraft.
“Its functioning has never been satisfactory. There are dark zones in its coverage area, with obstacles like hills preventing proper transmission of signals,” said the airport official.
14/07/09 The Telegraph

AI set to start low-cost service from September

Realising that only a budget-airline model can ensure better passenger load factor these days, cash-strapped Air India has decided to begin low-cost domestic operations from September — to tap the peak October-December travel season. The airline will launch these flights under the existing brand of Air India Express that at present flies to global destinations.
"The premium class market has all but vanished. Domestic full service carriers have massive overcapacities and yields have dropped by 40%," said highly placed sources. While full fare carriers barely manage about 70% loads despite cutting capacity, LCCs (low-cost carriers) report over 80% occupancies.
Since LCC success largely depends on online sales, AI is aiming to revamp its online booking engine by August-end so that a user-friendly system is in place before the launch. It's also going to tweak its frequent flyer programme.
AI was the only full service airline that did not have a domestic LCC in its fold. On the other hand, both Jet and Kingfisher have shifted their planes from full service to their LCC arms on domestic and international routes.
Launching the LCC is part of AI CMD Arvind Jadhav's revamp plan for the airline. Jadhav, who puts in almost 16 hours a day — charting the survival and revival strategy for AI — has set two targets — increase revenue and lower costs.
AI is getting an audit of its inventories done. According to sources, it is aiming to raise up to Rs 1,000 crore from sale of some inventories.
14/07/09 Saurabh Sinha/Times of India

Lapses cost aviation PSUs Rs 74 crore

New Delhi: Public sector units under the ministry of civil aviation have together lost Rs 74.06 crore on account of various lapses last fiscal.
According to the latest Comptroller & Auditor General (CAG) report, there were discrepancies in various decisions taken by the Airports Authority of India (AAI), which accounted for a large chunk of this total loss.
The indictment of AAI assumes significance since it remains the largest airport operator in India with 125 airports (including civil enclaves at defence airports) under its management. Of these, only 86 are currently operational and only 15 were profit making till 2007-08!
To begin with, AAI delayed the tender process for duty free shops at Ahmedabad, Goa, Bangalore and Hyderabad and continued to operate on older contract rates, losing Rs 5.15 crore in the process. In another instance, it failed to incorporate the actual area occupied in the award letter for ITDC run duty-free shops at Kolkata airport, losing Rs 1.77 crore.
Failure to insure assets based on current valuation at the Chatrapati Shivaji International Airport, Mumbai led to a loss of Rs 1.07 crore while loss in purchase of spare parts for X-ray baggage inspection system machines for Mumbai and Delhi airports cost the Authority another Rs 65.58 lakh.
Not just AAI, the CAG report has also pointed out that Pawan Hans Helicopters' revenue loss of Rs 42.51 crore due to its inability to complete "mid life" upgradation of choppers needed by ONGC in the stipulated time period.
14/07/09 Sindhu Bhattacharya/Daliy News & Analysis

Domestic air traffic starts flying again

Bangalore: This June air traffic of domestic airlines flew high as they carried 1.98 lakh--or 5.66%--more passengers compared to the same month last year. The Directorate General of Civil Aviation (DGCA) released on Monday shows the local carriers flew 36.94 lakh passengers this June as against 34.96 lakh last June.
An industry expert said the spurt in the passenger numbers was mainly due to better fares and a slight increase in the capacity. "Airlines were able to carry more passengers this June because of better fares. Also, last June many airlines had cut capacity and that had also suppressed traffic. Yields, more or less, are at the same levels as last year's," he said.
Airlines were not only able to push up year-on-year traffic but sequentially also. From March quarter to June quarter, they flew 11.16 lakh, or 11.36%, more passengers as 109.38 lakh fliers got aboard local airlines in the June quarter compared with 98.22 lakh fliers in March quarter.
Though, the passenger numbers for the first half of the current calendar year have slipped with 18.46 lakh, or 8.05%, fewer fliers taking to the sky compared to first half of last year. During that period - from January to June - only 210.99 lakh flew as against 229.45 lakh in the corresponding period of 2008.
Number of fliers in June was down compared to May too, when 2.35 lakh - or 5.98% - more passengers travelled by air.
14/07/09 Praveena Sharma/Daily News & Analysis

All your fault, retd IA staff tell aviation ministry and minister

New Delhi: Retired employees of the erstwhile Indian Airlines, now part of Air India, have blamed the Civil Aviation Minister Praful Patel and top officials of the merged airline for the mess.
Grouped in the All-India Airlines Retired Personnel Association (AIARPA), they have sent a letter detailing their charges to Prime Minister Manmohan Singh.
Among the reasons they gave for the present crisis were ‘disproportionate’ access to/from India to foreign airlines, allowing ‘favoured’ private Indian carriers international routes, ‘forcing’ the airline to lease Boeing 777, even though new ones were delivered, creation of Air India Express, ‘destroying’ the Indian Airlines brand to allow Jet Airways to dominate the domestic market and privatisation of profitable Airports Authority of India airports at Delhi, Mumbai, Hyderabad and Bangalore.
The letter also questions the merger of AI and Indian Airlines and its timing. Plus favouritism in appointments and misuse of airline resources.
14/07/09 Business Standard

Government officials asked to travel by Air India

Mumbai: In a bid to help the distressed national carrier, the finance ministry has said in a note on 13 July that all government officials will now have to travel only by Air India.
This is a change from the government’s travel policy of at least three years that allowed officials to travel by private carriers as well.Air India, run by National Aviation Co. of India Ltd, is expected to post a loss of around Rs5,000 crore in the year ended 31 March.
The note, signed by deputy secretary Y.P. Sehgal of the finance ministry, said for travel to places not serviced by Air India, officials will have to fly to the nearest destination serviced by the airline firm and then could switch to another carrrier, which should preferably be an alliance partner of the troubled firm.
“This is a conscious decision taken by the government and it comes into effect immediately,” Sehgal told Mint. Air India is in the process of joining the largest operating grouping of global carriers called the Star Alliance, which has as members US Airways Inc, Deutsche Lufthansa AG, Singapore Airlines and South African Airways.
“The overall travel budget of the government is estimated approximately at Rs1,000 crore,” said Kapil Kaul, chief executive, Indian sub-continent and Middle East, Centre for Asia Pacific Aviation, an aviation consulting firm. “However, Air India’s problem is so deep and strategic that these measures alone cannot save the airline.” Kaul said that this would have impact on private carriers, such as Jet Airways (India) Ltd and Kingfisher Airlines Ltd, as many government officials who used to travel business and first class in these airlines will no longer do so.
“It will not make much of the difference (to us) when we shift towards Air India as the bills are paid by the government,” an official at a state-owned financial institution said on condition of anonymity.
13/07/09 Anirudh Laskar and P.R. Sanjai/Livemint

Sacked Jet Airways staff seek MNS help

Mumbai: Nine months after the Maharashtra Navnirman Sena (MNS) intervened on behalf of sacked Jet Airways employees to get them reinstated, some 43 Jet Airways staff, who have been given termination letters, have again approached the party for help.
A delegation of the party’s aviation wing, Maharashtra Hawai Karmachari Sena, met the employees and sought to mediate with the management on Saturday. Another round of meetings is scheduled for Monday to seek the reinstatement of the employees.
On Friday, Jet Airways terminated the contracts of 43 technicians largely from its engineering department. The maintenance engineers were on fixed contracts and their contractual period with the company had been recently extended by the carrier by another year.
“We are of the opinion that they should be reinstated. Though they are trainee employees, they have been kept on board well beyond their training period for the company’s benefit. Now, they should not be suddenly removed,” said Gajanan Rane, vice-president, Maharashtra Hawai Karmachari Sena.
A spokesperson from the airline confirmed the development and said the airline was trying to provide them with alternative assignments.
12/07/09 Indian Express

Jet, Kingfisher look abroad to slash domestic losses

Mumbai: Jet Airways and Kingfisher Airlines are aiming at improving bottomlines by expanding their overseas operations to relatively profitable routes, which help them subsidise the ailing domestic business hit by a demand crunch and high costs.
The airlines have decided to divert a chunk of their full service capacity in comparatively profitable international sectors. Jet Airways is adding four new flights while Kingfisher is planning eight new overseas sectors.
Jet Airways is starting a flight from Mumbai to Jeddah in Saudi Arabia from Tuesday. A flight to Riyadh will be added soon, it said.Jet is also starting a second daily flight in the Mumbai- Bangkok sector and a flight linking Hyderabad and Dubai from mid-August.
Kingfisher is starting new international flights from Mumbai and Delhi to Singapore, Hong Kong and Bangkok.
13/07/09 Lalatendu Mishra/Hindustan Times

Domestic passengers carried by Indian scheduled airlines in the second quarter of 2009

The total domestic passengers carried by the Scheduled Airlines of India in the second quarter of 2009 - April to June 2009 - was 109.38 lakhs as against 98.22 lakh during January to March, 2009. The break-up for second quarter of 2009 (April to June, 2009) is as follows:
Air India (Domestic) – 19.18 lakhs, Jet Airways –17.80 lakhs, Jet Lite – 8.11 lakhs, Kingfisher – 27.72 lakhs, Spice Jet – 13.57 lakhs, Paramount – 2.30 lakhs, Go Air – 5.34 lakhs, IndiGo – 14.98 lakhs.
Passengers carried by domestic airlines in the first half of the year 2009 (Jan-June) were 210.99 lakhs as against 229.45 lakhs in the corresponding period of 2008 thereby registering a negative growth of 8.05%.
The total domestic passengers carried by the Scheduled Airlines of India in the month of June, 2009 were 36.94 lakhs. The break-up is as follows:
Air India (Domestic) – 6.45 lakhs, Jet Airways –6.12 lakhs, Jet Lite – 2.71 lakhs, Kingfisher – 9.01 lakhs, Spice Jet – 4.74 lakhs, Paramount – 0.73 lakhs, Go Air – 2.01 lakhs, IndiGo – 5.04 lakhs.
The percentage share of the carriers in the month of June, 2009 was:
Air India (Domestic) – 17.5%, Jet Airways – 16.6%, Jet Lite – 7.3%, Kingfisher – 24.4%, Spice Jet – 12.8%, Paramount – 2.0%, Go Air – 5.4% and IndiGo – 13.6%.
The percentage share of the carriers in the second quarter of 2009 was:
Air India (Domestic) 17.5%, Jet Airways – 16.3%, Jet Lite – 7.4%, Kingfisher – 25.3%, Spice Jet – 12.4%, Paramount – 2.1%, Go Air – 4.9% and IndiGo – 13.7%.
It may be recalled that the percentage share of the carriers in the second quarter of 2008 was:
Air India (Domestic) 15.4%, Jet Airways – 21.1%, Jet Lite – 8.2%, Deccan – 13.5%, Kingfisher – 14.3%, Spice Jet – 10.5%, Paramount – 1.2%, Go Air – 3.9% and IndiGo – 11.7%.
The seat factors of the domestic airlines in June 2009 were:
Air India (Domestic) – 67.9%, Jet Airways – 67.8%, JetLite – 74.4%, Kingfisher Airlines – 72.0%, Spice Jet – 77.3%, Paramount Airways – 88.2%, Go Air – 85.1% and IndiGo – 81.7%.
13/07/09 Press Information Bureau

Air India crew grounded for being in high spirits

New Delhi: Instances of pilots and flight crew, including air hostesses, getting high on spirits during pre-flight checks are on the rise. In the last 6 months, a dozen such cases were reported to the Directorate General of Civil Aviation (DGCA). On Monday morning a flight attendant of a Mumbai-bound Air India flight (IC-942) was grounded after he was found to have consumed alcohol during pre-flight check at the Hyderabad airport.
A senior DGCA official confirmed the incident but refused to name the attendant.
Industry insiders say there is a surge in such incidents during festive seasons. They also said that the airlines voluntarily report the incidents to DGCA. "All airlines have a zero-tolerance policy towards pre-flight alcohol checks. But yes, any increase in such instances is a cause for concern," an executive of a private airline said.
The DGCA keeps track of all erring pilots and crew members. This year, the airlines have already grounded over 12 crew members, including airhostesses and pilots. Not just the airlines, even DGCA officials carry out a series of random pre-flight checks at the airports.
A DGCA official said, "Those who are caught are grounded by the airlines. They then undergo a series of refresher courses at the airlines' training centres for two months."
14/07/09 Yogesh Kumar/Daliy News & Analysis

Chennai, Kolkata air travellers may have to shell out more

Mumbai:Fliers to and from Kolkata and Chennai will soon have to fork out more, with the Airports Authority of India (AAI) imposing a levy under the user development fund (UDF) on passengers using these two airports.
"It will be collected from passengers using airports where major development or expansion work has been undertaken by AAI. The proposed fund will be collected by AAI," Union civil aviation minister Praful Patel, told ET.
Planned on the lines of a road toll, where users contribute towards the construction cost, the UDF levy would be imposed on travellers to at least four more airports as per the plan.
Some of the other airports where UDF will be levied later are Jaipur, Udaipur, Thiruvananthapuram, Panaji and Ahmedabad. AAI has set aside Rs 12,000 crore for upgrading airports during the 11th Five Year Plan and needs substantial fund infusion.
According to an official from AAI, gradually some 35 small, medium airports would start collecting UDF. The economic slowdown and subsequent drop in air traffic seem to have forced AAI to look for a parallel, steady stream of revenues.
However, the delay, again due to the overall economic situation, has resulted in cost escalation.
For example, the cost of modernising Kolkata and Chennai airports has gone from about Rs 1,300 crore to Rs 5,000 crore. AAI needs over Rs 6,000 crore more to start work on 35 other airports across the country. UDF is expected to help AAI generate funds.
14/07/09 Girish Kuber/Economic Times

Rajasthan slashes sales tax on aviation fuel to woo carriers

New Delhi: In a decision that could reduce costs for India’s airlines if other states copy it, Rajasthan has become the fourth state to slash sales tax on jet fuel to 4% from 28%.
Fuel accounts for over 40% of operating costs at airlines in India and the tax reduction is being hailed by carriers. Airline firms, whose flights touch Rajasthan, could immediately take advantage of reduced spending on fuel while buying aviation turbine fuel (ATF) in the state.
Jitender Bhargava, executive director of National Aviation Co. of India Ltd-run Air India said the Rajasthan move should be followed by other states as well. “Mumbai and Delhi have to reduce it. Airlines account for half their flights,” he said.
Civil aviation minister Praful Patel has said in the past that he will try and persuade state governments to help airlines by reducing taxes on fuel.
Rajasthan, in its latest budget announced on 9 July, said it was reducing taxes to woo airlines to the state. “To attract the airline services to Rajasthan, tax rate on ATF has been reduced from 28% to 4%,” the state government said.
The state has three main airports at Jaipur, Jodhpur and Udaipur run by Airports Authority of India.
13/07/09 Tarun Shukla/Livemint

One crore Indians opt for air travel in April-June

New Delhi: Over a crore passengers travelled by air in the domestic sector in the April-June quarter, an increase of about 11 lakh compared to the previous quarter, according to official data released Monday.
About 1.09 crore passengers flew in April-June, up from 98.22 lakh in January-March, data released by the Director General of Civil Aviation showed.
Private carrier Kingfisher Airlines topped the list, scoring 25.3 percent in terms of passenger load share between April and June.
It was followed by Air India (domestic) at 17.5 percent and Jet Airways at 16.3 percent. Low cost carriers like IndiGo scored 13.7 percent, SpiceJet 12.4 percent and GoAir accounting for 4.9 percent.
13/07/09 Sindh Today

Kingfisher Airlines Includes HK, Not China, In Expansion Plans

Kingfisher Airlines, which markets itself as "India’s premier five star airline," has included flight services to Hong Kong - but not to mainland China - in its newly announced international route expansion plans.
From September, Kingfisher plans to launch two new flights, between Mumbai–Singapore and Mumbai–Hong Kong. Both services will be daily direct return flights using the new Airbus A330-200 aircraft.
Kingfisher Airlines has applied for approval from the Indian Ministry of Civil Aviation to start flights between New Delhi–London, which would be its first international flights out of New Delhi.
14/07/09 Gary Bowerman/BizChinaUpdate

Solid waste to close energy shortfall at Delhi airport

The operators of the Indira Gandhi International Airport in Delhi, India, have announced new plans that could have the triple effect of reducing energy shortfalls in Delhi, preventing the overflow of landfills, and reducing the demand for water.
Private-sector Delhi International Airport Limited (DIAL) was granted a contract in 2006 to operate and improve the airport for 30 years. DIAL is a joint venture of GMR Group, Airports Authority of India, Fraport, and Eraman Malaysia.
DIAL said it has established a partnership with GMR Energy and SELCO International to build a Rs 1.4 billion ($28.6 million) plant that generates energy using municipal waste. The plant, to be built on 5.7 acres, is expected to be commissioned in late 2010.
The operators say the plant could put an end to electricity blackouts at the airport, as well as provide excess power to the electric grid. The plant is expected to have a generating capacity of 10 megawatts, with about half to be sold to distribution company BSES, which is part of the Tata Group.
With about 4,000 MW of generating capacity, Delhi still has a shortfall of about 400 MW. Across India, the power grid can be intermittent and insufficient. It is estimated to have a 15 percent to 17 percent energy shortfall during peak demand.
13/07/09 cleantech

Blueprint to clear airport clutter

Kolkata: Even as construction of the integrated terminal at Kolkata airport goes ahead full-steam to hike domestic passenger capacity from 4.06 million per annum to 18 million by May 2011, officials have chalked out interim measures to decongest the airport by the year-end.
The domestic terminal handles 97 arrivals and departures daily. Disclosing a blueprint to ease bottlenecks in arrival as well as departure lounges, Netaji Subhas Chandra Bose International Airport director K Srinivasan said measures were being taken to bring much-needed relief to domestic passengers. The situation is particularly bad during the morning (17 flights from 6 am to 7 am) and evening peak hours (13 flights from 4.30 pm to 6 pm).
"At present, the domestic terminal is functioning way beyond capacity. While modernization will resolve the problem in 2011 and create adequate capacity to serve till 2015-16, we have to address the capacity issue before the new terminal is ready so that growth is not stunted," Srinivasan said.
Extension of the domestic terminal towards the city will increase the departure and arrival lounge space in a month. This will help airport officials re-orient facilities such as check-in counters and security check gates to offer greater mobility to passengers.
"The extension work is complete and floor glazing has been done. Altogether, 1,096 sq metre will be added to the floorpace within the terminal. This will increase space in both the departure and arrival lounge," Srinivasan said.
14/07/09 Subhro Niyogi/Times of India

Air Arabia offer round-trip tickets to Sharjah

Hyderabad: Air Arabia, a low-cost carrier (LCC) in West Asia and North Africa, has launched a special promotion scheme that offers round-trip tickets to Sharjah, UAE from any of the 13 destinations in India for Rs 12,999 (inclusive of surcharge and exclusive of airport taxes).
The offer, which is valid for travel to Sharjah till July 31 and from Sharjah between July 16 and September 10, also includes a one-month UAE tourist visa from the date of entry subject to approval from the General Directorate for Naturalization and Residence.
Currently, Air Arabia operates direct flights from Sharjah to Bangalore, Ahmedabad, Chennai, Jaipur, Kochi, Hyderabad, Mumbai, Nagpur, Coimbatore, Thiruvanthapuram, Kozhikode, Delhi and Goa.
14/07/09 ExpressBuzz