Airport & Airline 2007 Expo

Ethiopian Airlines:
Ethiopia is considering a direct Ethiopian Airlines flight to connect Kolkata with the East African nation. Ethiopian Airlines, which operates flights from New Delhi and Mumbai, plans to include Kolkata in its India operations. The Indian companies could take advantage of Ethiopia's treaties with European and American countries to access their markets by setting up a base in Ethiopia. (14 August 2006)

Asia's Airline Industry:
Growth in the number of air passengers in Asia is likely to hit the upper end of analysts' forecast of between four and six percent for the full year. This is despite increased security restrictions and inconveniences arising from the failed plot to bomb planes in Britain last week. Analysts say, air travel demand in Asia is supported by strong economic growth, rising wealth and a growing number of retirees with spare time and cash. They're also seeing improving load factors and growing revenue in the aviation industry, leading to an upbeat outlook for the full year. Overall, the industry projects Asia to show a net profit of US $1.7 billion for the year, making it the most profitable region for the airline industry. (14 August 2006)

Indian, Air India Merger:
Indian, Air India merger now seems just around the corner. The Civil Aviation ministry is moving at top speed to merge the two entities before the end of 2006. A consultant has been appointed by the aviation ministry together with Air India to show the path forward in this direction. The merged entity would have staff strength of 34,200 employees and fleet size of over 125 planes. Collectively making a capital base of Rs. 260 crore, the new entity would have a turnover of Rs. 14,900 crore. (14 August 2006)

Safety Drill:
According to an assessment carried out by the Centre for Asia Pacific Aviation (CAPA), stricter controls on hand baggage could be bad news for the evolution of the low-cost carrier (LCC) model at a time when they were beginning to charge passengers for checked baggage, in order to encourage them to carry more in the cabin. LCCs, at least in Europe, may be worse affected, perhaps in the long term too. In India, people have taken this latest terror threat in their stride. There doesn’t seem to be any long term impact on the travel industry.
(11 August 2006)

Jet, Qantas:
Jet Airways and Qantas signed a codeshare arrangement to expand Qantas' network within India, subject to government approval. Qantas will offer enhanced frequency between Sydney and Mumbai when combined with the existing Qantas thrice weekly Airbus A330-300 services. In addition, Perth gains a daily codeshare connection to Mumbai. (11 August 2006)

MDLR Airlines:
MDLR Airlines, a new full service start-up airline, promoted by a real estate entrepreneur, will begin operations in the north and a few hill towns in the region by October. MDLR Airlines plans to acquire five RJ-70 aircraft from British Aerospace and an equal number of Mi-172 helicopters, and will launch flights from Delhi to Kullu, Dharamsala and Dehra Dun. It will not be a low-cost carrier but will cater for both business and economy segments. (11 August 2006)

Rising Fuel Prices:
All the major domestic airlines in the region are hiking their fares due to increase in prices of Aviation Turbine Fuel (ATF). This will be the third hike in air fares in four months. The rise in prices of ATF has led to increase in fuel surcharge in all domestic sectors. All the major airlines including the Jet Airways, Indian and Air Deccan have increased their fares by Rs. 150 in all domestic sectors. (10 August 2006)

Need for Quality People:
The boom in the Indian travel and tourism industry has created a need for quality personnel in the field. According to one estimate, there are around two crore professionals in the tourism industry who are working through direct employment. In the coming years, the industry estimates a further two lakh openings will be generated in this sector alone. (10 August 2006)

Infrastructure Costs:
Under-developed and ill-equipped small airports with good air-traffic potential are beginning to hamper the expansion plans of airline operators, who want to grab a bigger marketshare through higher volumes. However, airlines feel these problems are short term in nature.
(10 August 2006)

Lufthansa:
Lufthansa carried nearly five million passengers worldwide last month compared to the same time last year. The highest growth came in Europe as people took advantage of holiday time to visit destinations across the continent and to fly to Germany for the last week of the World Cup. The airline is expanding route network. Starting 13 September 2006, it will fly once a day from Munich to Sao Paulo, Brazil. On 1 December 2006, it would being flying from Germany to Kolkata, India, bringing its total number of flights from Germany to India to 45 per week.
(9 August 2006)

Indian:
Indian is planning to convert five of its Boeing B-737 aircraft, which are currently operated by its subsidiary Alliance Air, into freighter aircraft. The airline has is believed to have short-listed three global majors for conversion of these aircraft. The average cost of converting one aircraft into a freighter is Rs 80 million, taking total investment on conversion to Rs 400 million. Indian Airlines has firmed up plans to operate these freighter services with Nagpur as a hub, and Delhi, Mumbai, Kolkata and Chennai (via Bangalore and Hyderabad) as originating stations. (9 August 2006)

Airbus:
Airbus won 200 gross orders for new planes by the end of July, versus 525 for US rival Boeing. Airbus is still ahead on deliveries, which is when planemakers receive the bulk of their payment for each plane, with 253 planes delivered through the first seven months of the year versus 225 for Boeing. (9 August 2006)

Jet Airways:
Jet Airways plans to launch services ahead of the 2008 Olympics, to China, from where it plans to fly to the US next year. The airline plans to connect Mumbai and Delhi to Shanghai and Beijing and from there to different US destinations. Once operational, Jet would be the second Indian carrier after Air-India to offer services to the eastern neighbour. The airline is also planning a slew of direct flights to various European destinations this year and next year.
(8 August 2006)

LCC Market Share in India:
Centre for Asia Pacific Aviation predicts the LCC market share in India will reach 70 percent by 2010, making it one of the world’s leading LCC markets in terms of total market penetration. Given the growth potential of the market and penetration levels already achieved by LCCs, the Centre predicts that within the next five years, India could see the establishment of a home-grown LCC with the size and scale approaching that of easyJet or Ryanair today.
(8 August 2006)

Air India, Indian Merger:
The proposal for merger of Air India and Indian is under active consideration of the government and a private consultant, Accenture India Pvt. Ltd, has been appointed to look into the issue. About Rs. 3.25 crore has been spent on re-branding as a part of budgeted promotion expenditure, which is an ongoing exercise. No additional expenditure is being incurred on the painting of aircraft in the new colours as this is being done only when the aircraft is due for its normal repainting. (8 August 2006)

Rise in Travellers:
A record number of travellers passed through UK airports last month despite fuel surcharges, consumer spending cuts and concerns over the world economy. BAA, which operates seven UK airports including Heathrow, handled 15 million passengers in July. Traffic leapt 50 percent, which helped to boost longhaul routes except North Atlantic by 8,4 percent overall.
(7 August 2006)

Bajpe Airport:
The new concrete runway built by the Airports Authority of India (AAI) at Bajpe Airport was recently opened for aircraft operations under visual flight rules (VFR). However, the new runway is yet to be formally commissioned. The new runway will also help in increasing the movement of cargo between Mangalore and other destination, both domestic and international. Bajpe has become a customs airport. (7 August 2006)

Jet Airways:
Jet Airways will soon start morning flights from Chandigarh to Delhi. Currently, it operates from Chandigarh airport in the afternoon. The airline is also planning to start the Chandigarh-Mumbai flight from next month. The current infrastructure at Amritsar International Airport is ready to tackle the traffic. With the operation of a new terminal, it can handle almost double traffic. The airline would be investing US $ 2.5 billion for various expansion programs. It plans to take the aircraft tally to 90 by the end of 2009. (7 August 2006)

Rise in Flights to India:
Air service from Newark to India has followed the dramatic growth of the Indian population in New Jersey, up 189.5 percent from 1990 to 2004. Air India began offering flights from Newark in 2002, and Houston-based Continental Airlines followed with non-stop service last year. According to available data, more people fly Air India from Newark than Kennedy. The Air India flight from Newark makes a brief stop in Paris, but passengers don't get off the plane before landing in Mumbai. The flight continues to Ahmedabad in Gujarat state. The non-stop Continental flight is to Delhi. Jet Airlines is also in discussions with transportation and airport officials to begin its own service from Newark next year. (5 August 2006)

Shortage of Pilots:
Airlines are scrambling to recruit, hire and train enough pilots to keep planes in the air and maintain reasonable safety standards and profit margins. The sector is considering increasing the retirement age of pilots from 60 to 65, setting up more flight-training schools, and involving more foreign pilots in training and in flying commercial aircraft as preliminary measures to control the situation. The Directorate General of Civil Aviation (DGCA), the industry regulator, allows foreign pilots to be hired for not more than a 12-week stretch. Technically, they are in the cockpit to train Indian pilots. The government plans to establish flying institutes, including the proposed Rajiv Gandhi National Flying Training Institute at Gondia, Maharashtra state. Estimates say that 4,000 more captains will be needed to feed airline expansion plans up to 2010. (5 August 2006)

Jet Airways:
Jet Airways has started its flights directly between Amritsar and London. This is the first direct flight from here to London. Earlier, there was an Air India flight from Amritsar to Birmingham. The flights are likely to help the Punjabi diaspora settled in Britain and other European countries. Earlier, they had to go to Delhi to take flights to Britain. The new flights would also attract tourists wanting to see the city's famous Sikh religious shrine - the Golden Temple. (5 August 2006)

Aircraft MRO Outsourcing:
Estimated at $49 billion, the global aircraft maintenance, repair and overhaul (MRO) market is highly fragmented with over a hundred participants. Inclusive of military aircraft MRO, the total amount spent on MRO exceeds the value of new aircraft production. The North American aircraft MRO market is outsourcing almost 55 percent of commercial aircraft MRO work. The figure is closer to 100 percent for business and regional jets. Frost & Sullivan reveals that revenues totaled US $20.09 billion in 2005 and can reach US $26.08 billion in 2010. At over seven percent, the fastest growing sector is the engine MRO segment, followed by the heavy maintenance segment. (4 August 2006)

Travel Trends:
According to recent data, bookings to India will increase as the flight capacity grows and airlines offer lower, and more competitive, prices. The country will become popular as both a holiday and short break destination, as will Dubai -- already proving to be a popular destination for the high-spending jet-setter. Anticipation of the 2008 Olympics will draw tourists to China, while the impending 2010 FIFA World Cup will lead to higher awareness of South Africa, enhanced further by a particularly strong Pound against the Rand. (4 August 2006)

SpiceJet:
SpiceJet declared an operating profit of Rs 71.52 crore. Revenues for the year stood at Rs. 453.15 crore, higher than expectations. The airline carried over 1.60 million passengers during the year with an average load factor of 86 percent. SpiceJet today has garnered a market share of 7.8 percent with a fleet of six aircraft. SpiceJet is expanding fast, and is also adding five additional aircraft by January 2007. These brand new Boeing 737-800 aircraft will nearly double SpiceJet's existing fleet. With this, the revenues in FY06-07 are expected to increase by 100 percent to approximately Rs. 910 crore in FY07 . (4 August 2006)

Etihad Airways:
Etihad Airways plans to double the number of flights between Abu Dhabi and India and also fly to new cities in the southern part of the country. Currently, Etihad operates a total of ten flights, seven connecting Abu Dhabi with Mumbai and three with Delhi. Apart from plans to increase the number of flights, the airlines is also in talks with new Indian carriers for an inter-line relationship for selling tickets through each other's network. Identifying India as a key market for its future growth, Etihad expects revenues from the country to contribute about 15 percent in future, up from the current 8 percent. (3 August 2006)

Off-Season Fares in India:
According to industry experts, the airlines should look into ways and means of promoting low fares and wooing passengers instead of holding on to the same fares. Inside sources note that some airlines are willing to lower, but a consensus is not being reached on this front yet.
(3 August 2006)

Indian Aviation:
GMR-led joint venture Delhi International Airport Limited (DIAL) has taken over the management of Delhi Airport, ending a three-month transition period. The Delhi and Mumbai airports account for almost 60 percent of Airports Authority of India's estimated 2005-06 revenue of Rs 3,352 crore. Even as GMR takes charge of the Delhi airport, it is running against time to complete the modernisation job by 2010. DIAL will not be able to start work on the main integrated terminal until design consultants Matt McDonald submit the master plan in September. (3 August 2006)

Domestic Air Fares:
Domestic air fares are set to go up for the third time in 2006 with airlines planning to increase fuel surcharge on tickets. This is after India’s largest aviation turbine fuel (ATF) producer Indian Oil Corp. announced a 2.4 percent hike in the jet fuel price. IOC has 90 percent market share in the domestic ATF business. Low-cost carriers are also planning a hike in fuel surcharge. (2 August 2006)

Indian:
Indian would expand its overseas network to fly to long-haul destinations like South Asia, Australia and China by February. The airline already flies to a few international sectors like West Asia and Singapore. The airline has floated a second global tender to lease wide-bodied aircraft to kick-start its international operations. The company plans to begin international operations even before it begins to take delivery of the 43 Airbus aircraft, some of which are wide-bodied and suitable for international operations. (2 August 2006)

Airports:
According to industry experts, Mumbai’s Chhatrapati Shivaji International airport will be a reflection of Singapore’s Changi Airport, one of the finest airports in the world. The airport is being designed by the GVK consortium, and has been drawn up on the lines of international airports abroad. The Mumbai International Airport Private Ltd (MIAL) will invest atleast Rs. 7,000 crore over the next 20 years to attain these standards. (2 August 2006)

IndiGo:
IndiGo plans to begin scheduled flights this week. The airline is planning to offer fares 50 percent to 60 percent below those of full-service carriers. IndiGo is the sixth airline to be launched since India's government further liberalised the skies in 2003. The airline plans to focus on routes that have been ignored by existing budget carriers. By the end of 2006, it will have six aircraft operating in 12 destinations. It aims to have 15 aircraft by the end of next year and carry 35 lakh passengers with over 25,000 departures. (1 August 2006)

Broadband in Indian Skies:
The ‘Broadband in the Sky’ concept is finding its way to India. Passengers aboard planes of several Indian carriers are expected to be able to access the Internet starting early next year. India’s private carriers including Kingfisher Airlines, Jet Airways and Air Sahara, plan to provide Internet connectivity at 35,000 feet. (1 August 2006)

Cargojet, Air India Cargo:
Cargojet has signed an alliance with Air India Cargo that will give Atlantic Canadian importers and exporters another link to one of the world’s largest markets. Through this alliance, Cargojet will provide sales, marketing and operational support to Air India Cargo in Western and Atlantic Canada. Cargojet will receive cargo sales, marketing and interline support from Air India Cargo, which serves more than 44 destinations in over 23 countries. The tie-up between the two airlines will include promotion of cargo to Europe as well as to destinations beyond India. (1 August 2006)