Air Deccan:
Air Deccan is changing focus from market share to revenues. As a corollary, route rationalisation and yield management become the buzzwords. The airline is planning to protect revenues through innovative marketing campaigns, route rationalisation and a sound revenue management system. It has recently hired two executives from Ireland’s state-owned carrier Aer Lingus to manage revenues. Presently, the airline’s average load factor is 78 percent. However, on Airbus routes, it manages to register a higher load of over 85 percent. The airline, which will be operating 60,000 flights from now to March, 2007 (on existing and new aircraft), is looking at a market share of 25 percent by the middle of 2007.
(30 September 2006)

RAK Air:
The UAE-based full service carrier RAK Airways is planning to fly to five Indian destinations. The yet-to-be launched carrier is currently in talks with Delhi-based low-cost carrier SpiceJet for a possible interline agreements. The carrier is planning to launch operations in Q1-07 with two Boeing 757-200 aircraft. It has also applied for the rights to operate in Mumbai, New Delhi, Kochi, Thiruvananthapuram and Chennai. The airline will shortly secure regulatory approvals for flying into India. (30 September 2006)

Bajpe Airport:
The first International flight, Air India Express IX 801, will land at the Bajpe airport at 6 pm, on 3 October 2006, fulfilling the long felt aspiration of the people of this region. Union minister of civil aviation Prafful Patel, deputy chief minister Yediyurappa, Air India chairman Thulsidas, Airports Authority of India (AAI) chairman Ramalingam will receive the first International flight in Mangalore. (30 September 2006)

Pilot Training Facilities:
The central government has decided to revamp and upgrade its pilot training institute, the Indira Gandhi Rashtriya Uran Academy (IGRUA), to overcome shortage of pilots in the country. The government is soon going to invite major global aviation players in flight training to manage the IGRUA. Eventually the IGRUA, which is registered as a society, would be converted into a company so that a joint venture partner with equity participation could also be brought in. These steps would help the IGRUA to increase its existing capacity of training 40 pilots a year to more than 200. The government is planning to pump about Rs.600 million for the modernisation and upgradation of the existing infrastructure and other facilities at the IGRUA. (29 September 2006)

Jagson Airlines:
Jagson Airlines entered a price war recently by fixing its airfare to any Himachal Pradesh destination from the national capital to as low as Rs.1,000. The decision comes barely days after budget carrier Deccan Airways announced trial flights before starting regular flights next month to Kullu and Dharamsala from Delhi. Until Deccan announced its entry in the skies of the hill state, Jagson was the sole carrier with airfares one of the highest in northern India. But the invitation price will not apply to return tickets, which will be higher. Until now the air ticket from Delhi to Shimla was Rs.2,875 and from Delhi to Kullu, it was priced at Rs.4,150. Jagson does not rule out starting more flights to three centres in the hill state from Delhi and Chandigarh. (29 September 2006)

Low Fares:
The Civil Aviation Ministry is trying to make up for massive losses incurred by domestic carriers this year. According to industry sources, a proposal could put an end to unviable low cost tickets and take budget airlines off the runway. Domestic airline heads met with the Aviation Minister to discuss mounting airline losses pegged at over Rs 2200 crore for this year. It is looking at certain measures to stop the sector from being so badly hit. Predatory pricing could be the first to go. The ministry is looking at a proposal to put an end to low fares that are not viable. If it is accepted airlines will have to submit three-month cash flows, which will be scrutinised. Fares found to be below cost price could be disallowed. In the US, this method is used to stop predatory pricing. (28 September 2006)

Indian:
Cruising forward on plans to acquire 43 mint-fresh Airbus jets, Indian Airlines has secured a loan of US $540 million from the German national bank, KFW to pay for the delivery of fist lot of 10 new Airbus aircraft. The loan, for a period of 15 years, covers only those aircraft that the airline will be receiving till early 2008. The airline has already signed an agreement with the European aircraft manufacturer to purchase 43 Airbus aircraft at an estimated cost of $2.2 billion. In May this year, the airline signed an MoU with ICICI Bank for funding of the pre-delivery advancement payment for the aircraft being purchased. The airline is also chalking fresh plans to increase its non-aeronautical revenue by hawking to private sector rivals its surplus available seat kilometres earned by operating flights on economically unviable and socially important routes. (28 September 2006)

Entry Barriers for Airlines:
With the airline industry cruising deeper into red zone and losses mounting, government is planning to erect a host of checks and balances read entry barriers to permit only serious and financially sound aviation ventures to take off. Under these fresh regulations, government intends to make it mandatory for all wannabe aviators to first tie-up finances, aircraft leasing deals and recruit pilots and engineers before seeking a scheduled airline licence. Also, the ministry plans to hold quarterly reviews of airlines' business plans, which will include checking cash-flow position for the following quarter. (28 September 2006)

Boeing:
Boeing has announced an expansion of its management team in India by relocating two senior executives to New Delhi, as demand for new jets soars in the South Asian country. Larry Coughlin, who was a director of strategic projects, has been named managing director of India operations for Boeing's commercial airplanes. Mike Devers, currently a director for Asian markets, has been appointed vice president of Boeing's defense-related business in India. The changes will help the U.S. aircraft maker pursue new business opportunities and interact more closely with the government and industry groups in India. (27 September 2006)

Jetfleet, Europcar:
Jetfleet, a Jetair promoted entity, inked an agreement with Europe’s leading car rental firm Europcar, to provide a unique personal mobility solution targeted at the Indian and expatriate corporate and leisure travel business in India. Jetfleet has entered into an exclusive tie-up with Europcar to provide exclusively tailored personal mobility solutions that respond to specific market needs. Customers will also be able to avail of Europcar’s global network, expertise and a frequent flyer program akin to those run by Airlines. Jetfleet plans to equip every vehicle in its fleet with a state-of-the-art advanced GPS system. Other value-add services will include a first aid kit, a mini-fridge, laptop and mobile phone chargers, wet tissues, newspapers and magazines. (27 September 2006)

No-frills Airports:
India’s bleeding no-frills airlines will soon have airports that charge them lower fees so that their business model has a better chance of succeeding. Consortia working on revamping and modernising airports at the two metros - Delhi and Mumbai - are planning to include low-cost terminals in their master plans, which should be ready by October. While the GMR-Fraport consortium is looking at converting the existing two terminals at Delhi airport into no-frills terminals after the new airport is ready by 2010, the GVK-Airport Company of South Africa is considering the option in Mumbai. (27 September 2006)

Crowded Sky:
The government is introducing technology to reduce the flying distance between two aircraft from 50 nautical miles to 15 so that more planes can land sooner. Even the height separating two aircraft is being halved from 2,000 ft to 1,000. This means double the number of planes can fly in the same airspace. The government is trying to go high-tech. It is building communication networks and implementing new satellite-based communications systems.
(26 September 2006)

Open Skies:
With the peak winter travel season just a month away, India is planning to adopt a limited-period Open Sky policy allowing foreign carriers to increase flight frequencies or operate larger aircraft, to clear the rush of overseas travellers. The Open Sky policy, which is expected to come into force from November, will be in place till February next year — which are peak months of overseas travel to and from India. (26 September 2006)

E-ticketing Growth:
With almost 100 million tickets being sold online annually, new players are being enticed by the play. Cox and Kings plans to launch an online travel marketplace for service providers, tour operators and travel agents to sell their products online. The online travel sector may comprise a mere 2.2 percent of the domestic travel market, but it is set to grow from US $796 million in 2006 to around US $2 billion by 2008. The online travel industry grew at 126 percent from a base of US $295 million in 2005 to US $796 in 2006. (26 September 2006)

Deccan Aviation:
Deccan Aviation intends to target a market share of 25 percent to 28 percent by FY08. The company is raising $100 million in this financial year, which will give it a cash flow for about 15 months. It also plans to build up a sizeable network in the country on a low cost basis. "Our target is to reach a break-even level within the next 15-18 months. Depending on the market situation, it is possible to achieve it even earlier," said Mohan Kumar, director - finance, Deccan Aviation. The airline intends to take delivery of about seven airbuses and about eight ATRs in the next 15 months. (25 September 2006)

MRO Market:
According to an estimate drawn up by apex industry body Confederation of Indian Industries (CII), the size of the MRO business in India over the next five years is expected to be on average $400 million per annum. The exponential projected growth in the aviation sector will provide an impetus to the MRO activity in India and provides a unique opportunity to develop the segment. India is projected to add an additional 450 aircraft to its existing national fleet size of 215 domestic aircraft in the next 5 years, as per DGCA estimates which in turn provides an opportunity for building the avionics and aviation equipment capabilities of Indian industry. (25 September 2006)

Amritsar Airport:
The Rajasansi International airport will accept more flights in the next few months. According to sources, Transaero Airlines will start Amritsar-Toronto flight via Russia twice a week. An Air India Express flight will go to Dubai from Amritsar thrice a week. Jet Airways is also launching Amritsar-Delhi flight on daily basis. The Amritsar-Delhi flight has been designed to link connecting international flights from Delhi. These flights are expected to begin operation in first week of October. (25 September 2006)

Expat Pilots:
India has decided to scrap the norm that mandated domestic airlines to have at least one Indian pilot inside an aircraft cockpit. Domestic airlines can now have only expat pilots steering an aircraft in the domestic skies. However, airlines have been permitted to avail of this facility only as a stop-gap arrangement till such time as their trainee Indian pilots are awaiting certification and authorisation from the DGCA. (22 September 2006)

Boeing:
Boeing has announced new orders for 47 planes from unidentified buyers, worth more than $4 billion overall, including 16 for its new carbon and titanium 787 Dreamliner. The order pushes the US planemaker's tally to 632 firm orders so far this year, well ahead of European rival Airbus, which has confirmed only 222 firm orders this year, but picked up a prestigious 35 plane order from German carrier Lufthansa. (22 September 2006)

Jet Airways:
Jet Airways has deferred its proposal to raise US $800 million by way of FCCBs or GDRs to part-finance its capital expenditure programme, especially acquisition of 30 new narrow-body and wide-body aircraft. The company took the decision to defer this proposal on the ground of a downturn in the domestic equity market specifically and in the emerging markets as well. The company will be investing US $2.5 billion over the next three years to acquire 30 new aircraft. (21 September 2006)

Imported Aircraft:
The government has decided to ban import of aircraft that are over 12 years old. The move, aimed at ensuring newer fleets, will push up the cost of leasing and hiring aircraft by around 30 per cent, industry sources say. However, the rule will be applicable only on future deals. The cost of taking new aircraft on lease is around 40 percent more than the older aircraft. This cost has gone up by 40 percent in the last 12 months due to boom in global aviation market. (21 September 2006)

Emirates:
Emirates has been permitted by the Indian government to operate eight direct flights a week from Bangalore to Dubai and vice-versa. Beginning 29 Sep 2006, the airline will operate a daily flight in both directions from Monday to Saturday and an additional flight on Wednesdays and Fridays. Emirates hopes to achieve a passenger load factor of 80-90 percent to Dubai and onward destinations in Europe, North America and Africa. The additional flights will take the total number of flights to 71 from 63 a week. (21 September 2006)

Boeing:
Boeing will supply Web-based maintenance tool, maintenance performance toolbox, to three Asian carriers, namely Air China, Jet Airways and Nippon Cargo Airlines of Japan. The toolbox is a suite of software solutions designed to unify an airline's complete maintenance and engineering operations. Jet Airways has also signed up for tools that will help it generate and automatically track task cards, labor-intensive documents essential for airplane maintenance activities. (20 September 2006)

Kingfisher Airlines:
Kingfisher Airlines has introduced roving agent at the airport. Now guests with hand baggage need not wait at the check-in counter to collect their boarding pass. They can directly approach the security check-in counters. Deployed outside the Security check-in area will be Kingfisher Airlines’ Roving Agent who will attend to these guests personally and book them on their choice of seats. Specially trained Roving Agents will reach out to guests and check them in using a mobile digital device and printer. The airline's guests can also print their boarding passes sitting at home. (20 September 2006)

Jet Airways:
Jet Airways has been conferred laurels by the World Airline Entertainment Association (WAEA) for its in-flight entertainment system with two coveted awards – Best Overall In-Flight Entertainment and Best Single In-Flight Entertainment. Jet Airways was judged the “best overall” airline for in-flight entertainment in the Small Fleet Category based on number of aircraft. Jet Airways also got the best in-flight Audio programme award and earned the distinction of second runner up for the best in-flight magazine. (20 September 2006)

Air India Express:
Air India Express has announced direct services to Mangalore, Amritsar and Delhi from 3 October 2006. With the commencement of services to the three cities, Dubai will now be linked to six destinations in the country by Air India Express, India's budget carrier. It already has services to Kozhikode, Kochi and Trivandrum. The Mangalore flight of Air India Express, will meet the long standing demand of passengers hailing from both north Kerala and from Karnataka. (19 September 2006)

Airfare in Gulf Sector:
Kerala government is putting pressure on the center to persuade Air India and Indian Airlines to reduce fare in the Gulf sector. The government has taken up the issue very seriously. A joint effort should be made by parties in the state as the problem concerned ordinary labourers going to the Gulf in search of better fortunes. (19 September 2006)

Bajpe Airport:
Bajpe airport will operate two more daily flights, one to Mumbai and another to Banglaore from 29 October 2006 if the Director General of Civil Aviation approves new proposals of two airline operators. If these two proposals are cleared the number of domestic daily flight operations (one way) at the airport will go up from eight to ten. The total number of flight movements (arrival and departure) will go up from 16 to 20. (19 September 2006)

LCC Traffic in Asia:
Asia is becoming a two-speed market, with high growth LCCs, Indian and Chinese carriers and slow growth full service carriers, according to Centre for Asia Pacific Aviation (CAPA). Asia Pacific LCCs differ from global carriers in two ways: with a high proportion of international operations – giving rise to the barrier just noted; and, the highest preponderance of LCC subsidiaries of full service airlines worldwide, with LCC units of Qantas, Singapore Airlines, Thai Airways, Air India, Air New Zealand and others established to participate in growth at the low end of the market, and to defend existing market shares. (18 September 2006)

Air Deccan:
Air Deccan wants to become the country's best carrier in all respects by March 2007. In this regard, the airline is launching a "No Rest Till We Are The Best" campaign. The message will be made loud and clear through a yellow T-shirt campaign by its employees right down from the COO to the Air Deccan staff at airports. The campaign begins from 19 September 2006. (18 September 2006)

HAL Airport:
Some leading private airline operators have called upon the state and central governments to re-examine the decision to close the HAL Airport to commercial traffic once the Devanahalli airport becomes functional. They contend that not only many global cities have more than one airport, certain flights are best operated out of a facility closer to the city. One way being suggested to get around this issue is for the HAL to spin off its airport as a separate company and get BIAL to partner it in the project. (18 September 2006)

Budget Airlines:
Airlines have been giving away tickets at ridiculously low prices to fight competition. In July, Indian aviation industry created history when 3.1 million seats were made available to the market. However, only 2.5 million passengers traveled on those seats. And out of this about 70 per cent travelled on discounted fares. Result, account books of all airlines are in deep red. (16 September 2006)

Modernising Airports:
The Civil Aviation Ministry has received techno-feasibility reports for modernising and upgrading 25 non-metro airports. The ministry is waiting to get reports for 10 others when it plans to invite expression of interest. To overcome the shortage of pilots, the Ministry would equip about 15 flying schools with trainer aircraft and also take the services of the Aero Club of India, a non-official body, to create a large pool of trained manpower. The Indira Gandhi Rashtriya Udan Academy, based in Rae Bareli, would increase its cadet intake from 30 to 50 and further raise it to 100 by October 2007. (16 September 2006)

Flying club:
An abandoned airfield near Nagpur would be equipped with facilities to start a flying club. Its annual intake would be 100 cadets from next year. These initiatives will reduce the time taken to train a pilot as more airlines look ahead for starting operations in the country. These would also provide an opportunity for the private sector to become an active partner in the aviation sector growth. (16 September 2006)