Jet fuel price up, airlines study impact on fares

New Delhi: Oil companies on Tuesday hiked aviation turbine fuel (ATF/jet fuel) prices by 10% or an average of Rs 2,750 per kilolitre.
And airlines, which did not pass on the benefit of 11 successive falls of ATF prices between August and January, will find it difficult to justify fares hikes this time as jet fuel is still at three-and-a-half-year low with prices at June 2005 level.
Only the national carrier, Air India-Indian Airlines combine, categorically ruled out any hike in fares due to Tuesday's hike. "Our low fares will continue," said AI spokesperson Jitendra Bhargava as airlines have again been forced to offer special schemes to get people back on board.
On the other hand, private airlines like Jet and Kingfisher said they would review the impact of the latest ATF price hike and then decide. However, even private carriers admit that hiking the already high fares would be difficult as passenger numbers are still not encouraging.
Now, ATF per kilolitre will cost Rs 29,926 and Rs 30,785 in Delhi and Mumbai respectively, still a far low from the August highs of Rs 71,028 and Rs 73,674 in these two cities. Riding on spiralling crude, ATF prices witnessed five successive jumps from last March and touched all time highs in August. Then oil suddenly cooled off and ATF touched three-to four-year lows by 2008-end. However, airlines which hiked fares after every fuel price increase did not pass on benefit to passengers despite the fact that the aviation ministry got them huge benefits from the oil ministry and Airports Authority for payment of dues.
01/04/09 Times of India

Oil firms raise ATF prices by Rs 2,750 per kl

State-owned oil firms today raised jet fuel or aviation turbine fuel (ATF) price by an average of Rs 2,750 per kilolitre or about 10 per cent, making it the second such hike in 15 days.
ATF will cost Rs 29,926 per kl, or 9.7 per cent higher, in Delhi from midnight tonight, against Rs 27,274.95, an Indian Oil Corporation official said.
"The prices have been raised as international rates have firmed up in March," he said.On March 16, the oil companies had raised jet fuel price marginally by Rs 158 per kl.
Prior to these increases, the public sector oil firms had reduced jet fuel prices 11 times since September last year. In between, the oil firms had raised ATF prices by 3.3 per cent on January 16.In Mumbai, home to the nation's busiest airport, ATF rates were raised to Rs 30,785 per kl from Rs 28,023.34 per kl.
The increase in jet fuel prices announced today varied from airport to airport depending on local taxes and levies and on an average worked out to be Rs 2,750 per kl.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August 2008, as international crude prices touched historic high of $147 a barrel. But subsequently they had fallen, slashed every month till October and twice a month from November.
31/03/09 Press Trust of India/Business Standard

CoS meet may decide on 49% FDI in airlines

New Delhi: The committee of secretaries (CoS) on foreign direct investment (FDI), slated to meet next week, may take up the proposal to allow 49% FDI in domestic airlines by their foreign counterparts.
The proposal, if cleared by the COS, and followed by a cabinet approval, would allow foreign airlines such as Singapore Airlines, British Airways and Lufthansa to pick up equity stakes in domestic carriers, a senior official told ET.
The department of industrial policy and promotion (DIPP)—the nodal department for framing FDI policy—has proposed that FDI up to 49% in the aviation sector be allowed on the automatic route, which implies foreign airlines would not have to take a prior approval from the foreign investment promotion board (FIPB) before investing in domestic carriers.
DIPP’s proposal is more liberal than the 20-25 % stake that the ministry of civil aviation has proposed for foreign airlines in domestic airlines. The change in the FDI rules, if approved, will help not only the 15 scheduled airlines like Kingfisher and Air India but also the 98 non-scheduled operators, including Ahmedabad Aviation and Aeronautics and Span Air.
At present, foreign airlines are not allowed to hold a direct or indirect stake in domestic airlines. However, foreign companies other than airlines are allowed to hold up to 49% stake in domestic carriers.
01/04/09 Rajat Guha/Economic Times

SpiceJet plans acquisition

Hyderabad: Low-cost airline SpiceJet will plan to acquire another airline company after a year, according to its CEO Sanjay Aggarwal.
Mr. Aggarwal said consolidation in the airline industry would certainly happen after 12-18 months. “If and when it happens, SpiceJet would be rather a buyer than a seller,” he said.
The company registered 12.5 per cent growth in February, against less than eight per cent in September last. Low-cost carriers had a growth potential of 1.5 times of gross domestic product (GDP) growth rate.
Mr. Aggarwal said the company commenced a detailed analysis of the potential in connecting Tier-II cities and acquiring smaller aircraft for the purpose. It was also extending its services on international routes for which the company would become eligible from May 2010.
Explaining that the smaller aircraft might have 40, 70 or 100 seats, Mr. Aggarwal said 1.3-lakh passengers were being carried by all airlines in the country every day. He said there was a potential for growth, as at least 8-10 per cent of the 15 million train passengers could be attracted to use airlines.He said the company was trying to become more passenger-friendly by addressing the needs of travellers. At present, the company was operating 115 flights with 19 aircraft. Two more flights to Ahmedabad and Bangalore were being introduced from Hyderabad.
01/04/09 The Hindu

Flight takes a U-turn

Mumbai: It took twice the expected time for the 98 passengers on board a Hyderabad-bound Indian Airlines flight to reach their destination on Tuesday.
The flight, which took off from the airport Mumbai at 10 am, had to return to the city after being airborne for a while. According to officials, the flight returned after the pilot noticed a technical snag with the aircraft and decided to "take a u-turn''. The passengers were later accommodated on another aircraft, which took off an hour later.
"When the aircraft was barely 10 minutes in the air, the pilot contacted the traffic controller to ask if he could return,'' said an airport source. "He cited a technical problem as reason. Since he didn't demand priority or specify the nature of the problem, no emergency landing was made.''Airport sources said the flight, IC 617, had already been 30-minute late. The delay was lengthened due to the return.
01/04/09 Times of India

Airnetz Aviation to Open 200 Franchise outlets in India and Abroad

Mumbai: Private Jet and helicopter services provider Airnetz Aviation will open over 200 Franchise outlets in India and abroad to simplify the private jet booking process with the help of local entrepreneurs. This move by Airnetz is to promote and facilitate on-demand and private flying to remote regions in India.
"Most people do not know that they can afford a private aircraft if they are traveling in a group. People will now be able to deal with our local franchise representatives to know more about the aircrafts in our network, pricing and travel flexibility." said Atul Khekade, CEO of Airnetz Aviation. "We have over 80 franchise applications pending with us and our first 4 franchise will be up and running by the end of current financial year." he added.
There are over 400 airfields in India and only around 30+ of them are utilized by schedule airlines. People can fly to any destination of their choice if they are traveling in a group and charter a private aircraft. Cost effective aircrafts such as Turbo prop planes can accommodate 5 people and cost about Rs. 10-15K per person for 1 hour journey.
31/03/09 IndiaPRwire.com

Volunteers line up for 'no frills' Gopinath election bid

Bangalore: From new economy leaders to young volunteers, all are pledging support to Captain G.R. Gopinath, who pioneered India's low-cost airline Air Deccan, as he prepares to contest the Lok Sabha polls from the high profile Bangalore South constituency.
The 54-year-old former army officer-turned sericulturist and aviation entrepreneur is taking on Bharatiya Janata Party (BJP) general secretary H.N. Ananth Kumar, who is seeking re-election from Bangalore South for the fifth time in a row.
Gorur Ramaswamy Iyengar Gopinath, Gopi to his friends and colleagues, is not deterred by BJP's organising capacity or the conspiracy theories surrounding his intention to jump into the poll fray.
Among the theories making the rounds is that Gopinath is being propped up by Karnataka Chief Minister B.S. Yeddyurappa to scuttle Ananth Kumar's chances. Yeddyurappa, BJP's first chief minister in south India, and Ananth Kumar are competing to control the state party unit.
Talking to IANS, after announcing he will contest from Bangalore South, Gopinath rubbished this speculation.
"I am fighting to win and bring change to society. I am not for any party. Otherwise I would have joined some known political party. I am joining politics to bring good governance and social harmony," he said.
The election is his second attempt at the hustings. He contested on a BJP ticket for the Karnataka assembly in 1994 from a constituency in his home district Hassan. He lost.
Gopinath said that he zeroed in on the Bangalore South constituency after hours of discussions with his close friends, including Biocon chairperson Kiran Mazumdar-Shaw, Infosys Technologies director T.V. Mohandas Pai, and fashion designer Prasad Bidapa.
Gopinath's wife Bhargavi and daughters Pallavi and Krithika will join the campaign. He intends to target all sections of Bangalore, from IT professionals to slum dwellers.
Gopinath exited the no-frills, low cost airlines business last year selling his controlling stake in Air Deccan to liquor baron Vijay Mallya, who runs Kingfisher airlines. He is now busy launching a cargo service which is scheduled to take off May-end.
01/04/09 IANS/Economic Times

HC rules out fresh attachment of Jet Airways

The tussle between Jet Airways and Sahara has intensified. The Bombay High Court said today that the warrant of attachment to Jet Airways shall not be executed, but what has been attached so far will not be affected. Earlier, Sahara had moved court over part default of annual instalments by Jet Airways.
In the first half of the day, we learnt that the Bombay High Court had issued a warrant of attachment against Jet Airways which involved alleged part defaults from their hands. What we learnt from sources after this notice was issued that this warrant could also mean attachment to immovable property belonging to Jet including aircrafts and office equipment, this could then come under the control of the Bombay High Court.
Jet Airways responded by saying that they couldn’t comment on the matter as it was currently sub-judicious and they cannot comment on the merits of the case ,so that was the status in the first half of the day.
Close to about 5 pm, Jet's lawyers approached the Bombay High Court seeking a stay on this execution application. While they were arguing in the court, the attachments already happened in the registered office of Jet.On the argument front, Sahara was very clear. It said the installments that are due from last year on Jet were not paid fully as per the terms of the consent award which was arrived at way back in April 2007 between both the parties. In response, Jet said according to them there was no default in the payment of installments under the consent award. Jet's counsel categorically said they were entitled to deduct tax installments under the consent award. These are the sets of arguments which were passed. After the arguments got over, the Bombay High Court ruled that there will be no fresh execution of attachment of warrants against Jet.
31/03/09 Ashwin Mohan and Swati Khandelwal/ CNBC-TV18/Moneycontrol.com

Last VVIP flight by `Tanjore’

Onboard Air India One: As Prime Minister Manmohan Singh boards the last commercial jet commissioned by Air India for VVIP flights, one can’t help but get nostalgic.
Called Air India 001, this is just another Boeing 737-400 operated by the national carrier. The 20-year-old aircraft is modified whenever the Prime Minister or President travel overseas. The Prime Minister has a small cabin to himself which has a double bed, a table and some chairs. It is also equipped with office facilities.
The official delegation comprising of his staff, officials, security detail, reporters are seated in the business and economy class. The aircraft also carries a huge amount of cargo which includes communication and security related equipment as well as catering goods.But, all this will soon be history. After the Prime Minister returns from the G-20 summit on Friday (April 3), this aircraft will go back into commercial service.
The Prime Minister and President will hence forth use three special jets bought from the United States at a cost of Rs.734 crores.
These latest aircraft of the Boeing 737 series are equipped with Self Protection Suites (SPS) for electronic warfare integrated onto the aircraft to provide greater security from enemy missiles.
SPS include radar warning receivers, missile-approach warning systems and counter-measure systems. The aircraft would have the capability to shoot metal chaff and flares to deviate radar-guided missiles and heat-seeking missiles off the track. The first of the three jets landed in India in August last year, with the other two following subsequently. Since then, the aircraft have undergone extensive flight trials and the crew has been trained for handling the IAF’s latest induction.
31/03/09 Smita Prakash/Thaindian.com

Pantnagar airport to get ready for Boeing, Airbus

New Delhi/Dehra Dun: The Uttarakhand government on Tuesday said the Pantnagar airport in the Kumoan region would be expanded further for the operation of Boeing and Airbus aircraft in view of heavy industrialisation and tourism potential in the area.
This follows completion of work on the new runway, which is now 4,500-feet long. The Airports Authority of India carried out the modernisation work at a cost of Rs 75 crore.
The town came into prominence last week with the launch of Tata Motors’ Nano, the world’s cheapest car. Companies like Nestle and Bajaj Auoto already have operations here.
“The first phase of the work has been completed and now under the second phase, the Pantnagar airstrip would be expanded to 7,000 feet,” said a top official. The government has already acquired the land for the purpose.
01/04/09 Shishir Prashant/Business Standard

Boeing to deliver aircraft worth $17 bn to India

Bangalore: Aircraft maker Boeing on Friday said the company was not seeing any big impact of the global economic slowdown in the Indian aviation market in the form of cancellation of orders. The US-based aerospace major, which had earlier projected that there would be a requirement of aircraft worth $105 billion in India in the next 20 years, said the company was planning to deliver 100 planes to India worth $17 billion over the next five years.
"Whatever forecast we had made regarding the demand for aircraft by the airlines in India, still stands good despite the economic slowdown. We want to extend our footprint in India," Dinesh Keskar, president, Boeing India, said during the launch of Boeing's research and technology centre in Bangalore.
He said Boeing had not seen any cancellation of its orders for civilian aircraft from Indian airlines. Last year, Jet Airways had deferred the order of two aircraft.
Other than the civilian market, Boeing is also actively pursuing some large orders in the defence sector in India, including the supply of 126 medium multi-role combat aircraft by the Ministry of Defence, RFPs for which have already been issued.
The research and technology centre opened by Boeing in Bangalore is the third by the company outside the US. The other two centres are located in Europe and Australia. The company said the centre would work in close collaboration with R&D organisations, universities and other companies to help sustain Boeing's competitive technological edge.
01/04/09 Business Standard

Boeing: Don't Expect Indian Carriers to Defer, Cancel Orders

Bangalore: Boeing Co. reiterated Tuesday that it doesn't expect any Indian carriers to defer or cancel orders already placed with the U.S. plane maker despite a slowdown in the air travel sector.
Boeing has to deliver 100 planes worth $17 billion to Indian carriers over the next five years, Dinesh Keskar, president of Boeing India said.
"We have had zero cancellations in India" despite the economic downturn, Mr. Keskar told reporters on the sidelines of a news conference held to open Boeing's research and technology center in the southern Indian city of Bangalore.
"We managed our order book and that's why today we are reaping the benefits (of no cancellations)," Mr. Keskar said.
Boeing is due to deliver 44 aircraft to flag carrier Air India, while Jet Airways (India) Ltd. and its low-fare unit JetLite are expected to take delivery of about 35 planes by 2014.
Budget carrier SpiceJet Ltd. said last month it doesn't plan to defer or cancel any orders and plans to take delivery of nine aircraft from Boeing by March 2012. It will then have a 30-plane strong fleet.
A slowing economy and higher fares induced by oil price have damped demand in the Indian air travel market, forcing several carriers to cut costs via pruning routes, reducing staff and deferring aircraft orders.
Kingfisher Airlines Ltd. has already been forced to defer taking delivery of 32 of 48 Airbus A320 planes that were due for delivery in late 2008 and in 2009.
31/03/09 The Wall Street Journal

Expansion of Chennai airport runway put on hold

Chennai: The expansion and renovation plans for the main and secondary runway at Chennai airport, with appended link and taxiways that was to begin in the first week of April have been postponed due to approval delays by airport authorities in Delhi.
On March 16, The New Indian Express reported on the proposed expansion that would go on for four months.
The Airports Authority of India had decided to close the main runway and secondary runway alternatively, between April and July, owing to runway expansion work. The main runway 07/25, was to be closed to accommodate linkways and taxiways work that was to commence at the beginning of April.
Following this, airline operators in Chennai had reportedly made a representation at the central level stating that the project was not viable owing to huge penalties on their load factor and the new summer schedules that were planned in coordination with all agencies.
Following this, the project was postponed until further discussions with the AAI chairman.
Senior AAI officials in Chennai told The New Indian Express that work on the project would begin once the planning authorities in New Delhi gave the necessary approval. From then on a NOTAM-notice to airmen has to be served at least one week prior to the beginning of this expansion.
01/04/09 Mamta Todi/ExpressBuzz

Gulf Air suspends Bangalore and Hyderabad operations till October 24, 2009

Mumbai: Gulf Air, the national carrier of Kingdom of Bahrain suspended its operations from Bangalore and Hyderabad effective March 29, 2009 till October 24, 2009. The airline operated daily flights from Bangalore and five times a week from Hyderabad. However, the airline is keen on expanding its operations in other parts of India considering the growing demand in the market. Talking to TravelBiz Monitor, Richard Hirsch, Regional General Manager – Indian Subcontinent, Gulf Air said, “We have temporarily suspended our services to two cities in India due to prevailing adverse market conditions, but our future plans for India remain the same. We see a real growth opportunity in working closely with eight or nine traditional international airports, investing on the possibility of developing services to some of the new international designated airports.”
Passengers who purchased the airline tickets for travel during the suspension period have been given various options by the airline. Passengers can choose to travel to/from another destination in the Gulf Air network (Any additional fare and taxes for the new journey will be payable.
01/04/09 Anita Jain/Travel BizMonitor

Singapore Airlines, ICICI launch co-branded card

Mumbai: Private sector lender ICICI Bank, in association with Singapore Airlines, on Tuesday launched ‘ICICI Bank Singapore Airlines Visa Platinum Credit Card’.
Singapore Airlines, which carries over 10-15 per cent of outbound traffic from India, would be targeting ICICI Bank’s premium credit card holders and its own frequent flyer programme customers.
“We will be deepening our relationship with existing premium card holders and members of Singapore Airlines frequent flyer programme, KrisFlyer, to market this card,” Sachin Khendelwal, head of Retail Assets Group at ICICI Bank, said.
At a time, when ICICI Bank is offering titanium credit card free to its customers, it would be charging Rs 6,000 for the Visa Platinum Card. By purchasing this card, customers will get complimentary membership to Singapore Airlines KrisFlyer Club and sliver-tier Hilton Honors Programme.
The credit card customer will also earn 5,000 KrisFlyer miles when the card is used for the first time and 12 miles for every Rs 200 spent on the card. Also, benefits like 50 per cent discount to golf courses across the airlines destinations and discounts on international duty-free shops. For promoting the platinum credit card, Singapore Airlines will be targeting over 80,000 KrisFlyer customers, while ICICI would be focusing on 10 per cent of 7.5 million premium credit cardholders. A promotion campaign will also be undertaken online and at the airlines counters at Indian and Singapore airports.
The airline’s general manager (India), Chai Woo Foo, rejected the point that the card is launched to counter the decline in passenger traffic from India.
31/03/09 mydigitalfc.com

Emirates announces new package on Kochi-Dubai sector

Kochi: Emirates Airlines Tuesday announced a "companion offer" that extends a complimentary return ticket in the same class for a companion for a passenger travelling from here to Dubai.
In a press statement, the airlines said the offer was valid on flights EK533 departing from Kochi 4.20 am and EK532 departing from Dubai at 9.35 pm.
Travellers can avail of an economy class return ticket for Rs.27,000 from Kochi till June 25.
The companion is required to take the Dubai-bound flight along with the passenger but can return to Kochi independently.
31/03/09 IANS/Economic Times

Rule twirl over moustache right

New Delhi: Former flight steward Victor Joynath De has lost his last legal battle against Indian Airlines (now Air India) which had sacked him for sporting a handlebar moustache.
The Supreme Court on Tuesday rejected De’s petition, challenging the airline’s decision which he claimed was based on rules that violated Article 14 (right to equality) of the Constitution and were discriminatory.
A two-judge bench turned down his plea, saying: “Article 14 does not apply to anything and everything.” Rules, the bench observed, are a “management prerogative” and courts have limited powers of review over administrative decisions.
The resident of Circus Avenue joined the airline in 1968 sporting the now famous moustache. He was grounded in October 1998, when he ignored an airline circular banning moustaches “beyond the upper lip” and was sacked in January 2001, one-and-a-half years before he was to retire.
In response to a submission by De’s lawyer Sanjeev Sen that rules allowed Sikhs to retain their turbans and beards at their workplace, the bench said: “Keeping beards and turbans are an indispensable part of their religion. You can’t compare yourself with a Sikh.”
The bench also dismissed De’s plea that it was a family custom to keep handlebar moustaches.
The court also expressed its annoyance at having to deal with such arguments. “You tell us if you were violating the rules or not. You can’t argue that someone else was being permitted to keep it (the moustache).”
01/04/09 Samanwaya Rautray/The Telegraph

Some glory at last for BIA

Bangalore: Bengaluru International Airport (BIA) has bagged the Routes Asia Airport Marketing award. Five airports competed for this award in the Indian sub-continent and the award is judged by the airports’ primary customers - the airline network planning community.
The airlines within Asia nominated five airports whose marketing efforts during 2009 made a real impact on their future network development plans.
The airlines considered the efficient and useful marketing activities of the airports on their network, by geographical region, irrespective of their size.
The award was based on how creatively an airport has made the most of its available resources and the winner was chosen on the basis of how best an airport tried to develop airline relationships, keep existing routes and secure new ones. In the last 10 months, BIA has been able to successfully attract seven new airlines.Important criteria like initiatives taken to improve the airport’s infrastructure, the terminal and runway were taken into consideration. Key initiatives that airports have undertaken to attract new airlines, launch new routes and develop relationships with existing airline partners were also taken into account.
01/04/09 ExpressBuzz

Kingfisher launches five new routes in summer schedule

Mumbai: Private air-carrier, Kingfisher Airlines on Tuesday said it has commenced flights on five new routes, including two from Mumbai, as a part of its summer schedule.
The summer schedule of the airlines began from March 29, a Kingfisher Airlines press release said.
The new sectors launched by the airline are Mumbai-Vadodara, Mumbai-Thiruvanthapuram, Hyderabad-Bhubaneshwar, Hyderabad-Aurangabad and Bangalore-Kozhikode, the release said.
Kingfisher is the first airline to operate a flight between Hyderabad and Aurangabad and aims at providing direct connectivity to south India, Kingfisher Airlines said.
31/03/09 Economic Times

New Delhi terminal to open in two phases

New Delhi: Delhiites will have to wait for a few more days before they are able to use to the new departure terminal 1D.
The terminal will be made operational in two phases, starting reportedly on April 11. A few minutes after midnight on the earmarked dates, the entire operations of the airlines that will be shifting to the new terminal will be transferred from the old one. All airlines from the old departure terminal 1B, with the exception of GoAir, will move to 1D and will be joined by Kingfisher Airlines from terminal 1A. GoAir will take Kingfisher's place in 1A.
According to sources, the first phase of shifting will have only Jet Airways and Jetlite move to the new terminal. A week later, when the airlines would have settled down in the new space and all operations would have stabilised, the other airlines will also be shifted. The proposed date for the second phase is April 18.
Sources said that the last departure from the old terminals is around 10.30 pm, so airlines will have close to six hours to move base to 1D before the first flight will take off just before 5am.
The shifting of airlines from one terminal to the other is a highly complex procedure and a team from Munich Airport has been assisting the developers Delhi International Airport (P) Ltd (DIAL) with the operational readiness and airport transfer (ORAT).
01/04/09 Neha Lalchandani/Times of India

Was Worth profiteering from dodgy Indian trip?

Internal Affairs minister Richard Worth may be running out of lives, as another overseas gaff saw him hauled over the coals in parliament for his controversial trip to India which Labour now claims he may have profited from personally.
Mr Worth says there was no conflict of interest over his six day trip to India last month, where he allegedly spoke on behalf of the government while brokering business deals for the India Trade Group.
Mr Worth is chairman of India Trade Group, and a director in the Indian Overseas Group and New Zealand Aviation.
Mr Worth spoke at a formal ceremony in his role as government minister, extolling the virtues of New Zealand as a location for aviation training, specifically referencing the Southern Institute of Technology which wants to train Indian pilots - and has links to New Zealand Aviation.
Mr Worth has now resigned the position after drawing the ire of the Prime Minister who has said that he has “little patience” for perceived conflict of interest issues.
Labour has been running attack lines ever since, including suggestions in parliament yesterday suggesting that Mr Worth had not only abused his ministerial privileges by allowing fellow shareholders to use ministerial facilitation at Auckland Airport, but may have benefited from the trip materially.
01/04/09 Allan Swann/The National Business Review, New Zeland