Monday, November 30, 2009
Air India flights to operate as usual from tomorrow
“The agreement involves some financial payout by the airline. The pilots have withdrawn the strike call issued earlier,” a senior airline official told Business Line without divulging details of the agreement reached. Sections of the airline pilots had threatened to go on strike from midnight Monday.
The pilots and management were to meet again on Monday (November 30) at the office of Chief Labour Commissioner here to resolve their differences.
Demands
The agitating pilots were seeking wage revision and parity in wages with other pilots and an inquiry into the mismanagement of the company. A major bone of contention between the agitating pilots and the management has been the proposal to stop paying Productivity- Linked Incentives (PLI) to its employees including pilots. PLI forms a large portion of the monthly salaries of employees.
The airline's annual PLI payout is about Rs 1,500 crore, almost half of which is paid to pilots and cabin crew, while the remaining is shared by about 26,000 employees of the airline. Air India has a total staff strength of 31,500 employees.
The pilots had gone on a four-day strike in September this year. At that time about 200 pilots had reported sick protesting against the decision to cut their PLI by 50 per cent and non-payment of flying allowances for three months. The agitation disrupted the carrier's operations with 240 flights being cancelled during the impasse. The financial loss to the airline was estimated at over Rs 100 crore.
Source:
Air India flights to operate as usual from tomorrow
The Hindu Business Line
Date- 30 November 2009
Edition- New Delhi http://www.thehindubusinessline.com/2009/11/30/stories/2009113050990300.htm
Tuesday, November 24, 2009
AI’s US flight may be scrapped
"The idea (of reducing flight to the US) is still in formulation stage, and is unlikely to be taken up in the airline's board meeting slated for later this week," said the executive, who did not wish to be identified, as he was not authorised to speak to the media.
The airline has four daily flights to the US, two each from Mumbai and Delhi, connecting New York, Washington, Chicago and Los Angeles.
Air India chairman and managing director Arvind Jadhav was not available for comments.
"An internal assessment is being made to find out which are the most loss making routes and only then a decision would be taken," the executive said.
The airline, has incurred a loss of Rs 5,548 crore in 200809. It has taken a series of measures to cut costs including rationalisation of wage structure of its 33,000 employees.
Air India's (AI) flights to United States could well turn out to be the next big casualty as the state-run carrier gropes for options to stay afloat in precarious financial health.A senior AI executive confirmed that the management was considering a drastic route rationalisation exercise. This could include removing a direct flight to New York, either from Delhi or from Mumbai.
"The idea (of reducing flight to the US) is still in formulation stage, and is unlikely to be taken up in the airline's board meeting slated for later this week," said the executive, who did not wish to be identified, as he was not authorised to speak to the media.
The airline has four daily flights to the US, two each from Mumbai and Delhi, connecting New York, Washington, Chicago and Los Angeles.
Air India chairman and managing director Arvind Jadhav was not available for comments.
"An internal assessment is being made to find out which are the most loss making routes and only then a decision would be taken," the executive said.
The airline, has incurred a loss of Rs 5,548 crore in 200809. It has taken a series of measures to cut costs including rationalisation of wage structure of its 33,000 employees.
Source:
AI’s US flight may be scrapped
The Hindustan Times
Date- 24 November 2009
Edition- New Delhi
Monday, November 23, 2009
Battle for mind space
As full-service carriers invade the no-frills space, SpiceJet is finding new ways to bond with customers.
If you visit a travel portal, and search for the best available air fares between Delhi and Mumbai, you will find that every airline is offering similar fares. That’s the biggest challenge facing budget carriers like SpiceJet since they began flying.
The fare differential they enjoyed with other airlines, which was their key selling point, has disappeared as full-service airlines (FSAs) like Jet Airways and Kingfisher shift more and more flights to their no-frills options like Jet Konnect and Kingfisher Red.
To understand the challenge faced by the low-cost carriers (LCCs), look at the passenger traffic numbers put out by the Directorate General of Civil Aviation (DGCA) for October. While Jet Airways increased its market share to 19.8 per cent on the back of its all-economy configuration Jet Konnect, SpiceJet ’s market share fell to 12.4 per cent from 13.2 per cent in September. Other LCCs showed a similar dip.
It’s a wake-up call for budget carriers like SpiceJet which now have no option but to reinforce their positioning, differentiate or find new ways to bond with customers. That’s what SpiceJet is trying to do through a brand campaign and other initiatives. ‘‘You need to differentiate on service, quality and create top-of-the-mind recall,’’ says SpiceJet CEO Sanjay Agarwal.
Anish Srikrishna, senior VP (marketing), SpiceJet , says the challenge for airlines is to start differentiating on factors other than price. “That’s where branding comes in; we are fighting for her mindspace, intangibles such as the likes and the dislikes of a customer,’’ he says.
Some consumers may like the colour of a plane, others may have heard about the service of another airline, some may have heard of an airline reputed to be serving food while others may associate an airline with hassle-free flight. These are subjective, experiences unique to a customer, or perceptions that may get built over time.
‘‘It’s a great time for a brand to reiterate what it stands for. SpiceJet stands for a warm, friendly, approachable, and efficient airline,’’ Srikrishna says.
To understand the intangibles, SpiceJet sifted through the feedback it collects in every flight, and other consumer surveys. For instance, a feedback revealed that people preferred to have a hot beverage on board. SpiceJet built the equipment needed, and offers hot beverages at a reasonable price of Rs 20 with two cookies.
Like this, it is trying to convert the feedback into many initiatives: for instance, unlike some airlines, it doesn’t charge extra to supervise unaccompanied minors; doesn’t charge for web check-in or preferred seats (next to emergency exits), doesn’t charge extra for sports kits, and offers Rs 1,000 less on return fares. It also ran promotions like Happy Hours, wherein it offered a buy-one-get-one-free offer.
For SpiceJet , the brand has been built over the last four years largely on word of mouth. Until recently, it did not do any mass advertising. With FSAs invading the LCC space, it thought it was time to think in terms of ‘‘brand intervention mode and put out a relevant marketing message that will help consumers identify what kind of an airline brand we are, why should they consider flying with us,’’ says Srikrishna.
‘‘People associated us with innovation, promotion. So, we said if we are looking at a differentiator, there’s a clear way we can offer ‘more’ with the brand. We began looking for attributes (from its operations, sales, in-flight or perception within the company) that could be our USP (unique selling proposition) which customers can see, touch or feel. We are saying this under a theme, 'Get more when you fly SpiceJet,’’ explains Srikrishna.
‘‘Those comfortable days are gone, when we said we are going to operate in our space (LCC); they are going to operate in their own space. Segments have morphed rather rapidly into each other,’’ says an airline official, who didn’t wish to be identified.
Source:Battle for mind space
Business Standard
Date- 23 November 2009
Edition- New Delhi
http://www.business-standard.com/india/news/battle-for-mind-space/377276/
Monday, November 16, 2009
Swiss Intl focuses on India fliers
A measure of how India-centric its’ plans are, can be viewed from the fact that Swiss International has chosen to introduce its all-new Airbus A330-300 aircraft on the five flights a week to Zurich from Mumbai and Delhi.
The airline has also introduced a fully pneumatic comfort system in its business and first class seats. Designed by Lantal, a leading textile company, these one-of-a-kind seats can have their firmness adjusted to the personal preference of passengers and convert into a complete lie-flat two-metre bed.
“The system, a first of its kind anywhere in world, works from both management and customers’ point of view. There is no doubt, with other things being equal, passengers — especially on long-haul flights — will opt for the carrier that offers them an unprecedented seating experience,” says Marcel Biederman, head of sales and marketing, Swiss Airlines (intercontinental).
“Traditionally, aircraft seats have imbalance in firmness, but we at Lantal, in collaboration with Swiss Airlines, want passengers to feel well — not by making them aware of the new technology — but only by increasing comfort level,” says Roland von Ballmoos, V-P, pneumatic systems.
Besides, the airline offers adjustable sidewalls for as much individual privacy as desired and the biggest inflight entertainment screen (23”) for its first-class passengers. “We also offer passengers in first- and business-class a kit which has a toothbrush, ear plugs, sleeping mask, among other knick-knacks. The passengers can slip into complementary pajamas. Also, for our Indian passengers we have a range of Hindi movies to choose from,” says Bierderman.
And for those who want a familiar face to turn to at 35000 feet, the aircraft has three flight attendants from India on every flight. The airline has already hired 47 flight attendants. “In India, we still have a long way to go. I hope the new steps will help us attract more customers,” says Biederman.
Contrary to expectation, its been money well spent for Swiss. Thanks to the lighter seats, its fuel efficiency improved 13% and its overall costs are down 32%. “Since weight is a prime consideration in cost management, the light interior textiles save a lot of money for the airline,” says Biederman. Little wonder that with such innovation, Swiss has bagged the Skytrax 2009 World Airline Award for ‘Best Airline Europe’.
Source:
Swiss Intl focuses on India fliers
The Times Of India
Date- 16 November 2009
Edition- New Delhi
http://timesofindia.indiatimes.com/biz/india-business/Swiss-International-focuses-on-Indian-fliers/articleshow/5233712.cms
Tuesday, November 10, 2009
Air India’s low-cost service yet to take off
The aviation regulator has refused to approve the launch of the low-cost service under the Air India Express brand on Indian routes because the integration of the four state-owned airlines under Nacil hasn’t been completed yet, said two Air India officials familiar with the development.
Nacil also doesn’t have the funds to complete the makeover of old aircraft into an all-economy configuration, said the officials, who spoke separately and didn’t want to be named because they aren’t authorized to speak with the media.Air India, Indian Airlines, Alliance Air and Air India Express, which flies on some international routes, merged under Nacil in 2007, but they still operate under four different licences and four different firms.
The launch of an all-economy domestic service by Nacil had been expected to reduce airfares and help the state-run airline firm compete better with rivals Jet Airways (India) Ltd and Kingfisher Airlines Ltd that operate low-fare affiliates, besides full-service airlines.
Air India is struggling with losses running up to Rs7,200 crore for fiscal 2009 and debt of Rs16,000 crore. It has sought about Rs5,000 crore in equity and loans from the government in return for cost-cutting measures. The request is to be taken up by a group of ministers meeting on Thursday.
Nacil had been planning to convert old Airbus SAS-made A320 aircraft belonging to Indian Airlines to an all-economy configuration to fly under the Air India Express brand. However, the Directorate General of Civil Aviation has objected to moving the aircraft because the two airlines operate under separate licences, known as air operator’s permit (AOP), said the Air India official cited above.
Air India said the low-cost domestic service would be launched soon. “Air India does have a plan for launching low-cost services under the Air India Express brand. This is part of our turnaround strategy,” said an Air India spokesman in response to emailed queries. “The issue of AOP will be resolved by getting an arrangement in place between AI and AI Express.”
Some of the aircraft have already been configured to an all-economy version, said one of the two Air India officials cited earlier. After regulatory permission wasn’t forthcoming, the word Express that had been painted on the aircraft tail was erased. Some aircraft aren’t airworthy for lack of engine spare parts.“We do not have engine spares as the finance department has not released funds to the vendors, who have stopped supplying spares on credit,” the official said.
A Mumbai-based analyst said this isn’t the right time to start a low-cost carrier and Nacil should first fix Air India’s problems, which include threat of a pilots’ strike from 24 November over pay-related issues.“The whole issue is more to do with cash in hand. There are lots of problems so the main focus is getting things right within the existing structure rather than starting a new venture right now,” said the analyst.
Source:
Air India’s low-cost service yet to take off
Mint
Date- 11 November 2009
Edition- New Delhi
http://www.livemint.com/2009/11/10215001/Air-India8217s-lowcost-ser.html
Monday, November 9, 2009
Airfares up as KF, Jet hike fuel cess
From Friday, fuel surcharge on domestic routes stands revised upwards by Rs 100 for sectors below 1,000 km and by Rs 200 for sectors above 1000 km, a Kingfisher statement said. Possibly to avoid charge of hiking fares in a cartel, similar hike on all domestic flights operated by Jet, JetKonnect and JetLite was implemented from Thursday. Now fuel surcharge ranges from Rs 1,600 to Rs 3,000.
While airline hiked surcharge following a recent 9% hike in fuel price, fare hike was on cards. Industry sources said the recent economic recovery has led to revival of passenger numbers with the negative growth of past few quarters reversing and numbers actually registering a rise in past couple of months. However, airlines were complaining that their yields were still low as this growth was accompanied with low fares.
Because of huge accumulated losses, almost every airline is looking at raising yields by hiking fares. In the past few quarters of slowdown, airlines focussed on cutting costs, which led to trimming fleet size, wage bills and even layoffs. "Maximum cost cutting has already been done and we have to raise revenue now," said an airline CEO. The big three, especially Kingfisher and AI, have run up thousands of crores as dues to oil companies and airport operators. So unless fares are hiked and cash generated to start paying the old dues, the aviation industry will be on a shaky footing.
Source:
Airfares up as KF, Jet hike fuel cess
The Times of India
Date- 7 November 2009
Edition- New Delhi
Thursday, October 29, 2009
Air India may hit air pocket again from Nov 1
Incentive issue
The spokesperson for the Indian Commercial Pilots Association (ICPA), Capt R.S. Otall, said on Wednesday, “If our PLI dues are not paid by November 1, we will take any action from the book.”
He added that these were pending since August this year. The ICPA represents 1,000 former Indian Airlines pilots.
Late last month, executive pilots of Air India went on a five-day strike on the same issue. The airline then had to roll back its decision of 50 per cent cut in PLI. This was to have translated into savings of Rs 20 crore a month had it been enforced on 7,000 of the total 31,500 employees.
Grappling with loss
Air India is still grappling with losses of Rs 7,200 crore accumulated in the last two years. The current fiscal could see it slip deeper into the red with losses of Rs 5,000 crore.
As a result, it is looking at ways and means of cutting costs and reducing wage overheads. The Centre has made it clear that any financial aid would have to be preceded by cost-control.
The Minister of Civil Aviation, Mr Praful Patel, had said this month that Air India was not only looking at reducing costs by Rs 3,000 crore but also increasing revenue by Rs 2,000 crore.
Pre-delivery payments
Sources have said that the airline is expected to get Rs 3,000 crore from the Centre towards pre-delivery payments for a part of the 111 aircraft ordered. In all, it needs Rs 9,000 crore over the next three years.
Last week, the Group of Ministers headed by the Finance Minister, Mr Pranab Mukherjee, said Air India needed to evolve a concrete plan on savings.
Source:
Air India may hit air pocket again from Nov 1
The Hindu Business Line
Date- 29 October 2009
Edition- New Delhi
http://www.thehindubusinessline.com/2009/10/29/stories/2009102951322000.htm
Tuesday, October 27, 2009
Qatar Airways links Doha and Goa ahead of holiday season
The first full-service long-haul scheduled international airline flying to Goa will be using an Airbus A320 in a two-class configuration of 12 seats in business and 132 seats in economy. The carrier will be flying four times a week on this route.
As Goa sees a huge influx of travellers between October and March, the airline plans to cash in on the demand, especially from European countries. Also, Qatar aims to facilitate travel for a large section of Goan population that resides in the Gulf region.
Flight for Expats Mr Akbar Al Baker, Chief Executive Officer, Qatar Airways, told newspersons, “With a huge Goan community living and working in the Gulf, our new route has been long awaited and will help facilitate travel for expatriates between our two regions and beyond. Furthermore, being the start of the winter holiday season, Goa will see a huge influx of holidaymakers from across the world, especially Europe.”
The Goa route takes Qatar Airways’ capacity across India to 64 flights a week spread across 10 cities. The airline operates daily non-stop services from Doha to Delhi, Mumbai, Chennai, Hyderabad, Ahmedabad, Trivandrum, Cochin and Kozhikode and four flights a week to Amritsar and Goa. Mr Baker added that the airline has plans of extending daily services from Goa and Amritsar.
Qatar Airways operates a fleet of 71 aircraft to 84 destinations across Europe, West Asia, Africa, South Asia, Far East and North America.
Source:
Qatar Airways links Doha and Goa ahead of holiday season
The Hindu Business Line
Date- 28 October 2009
Edition- New Delhi http://www.thehindubusinessline.com/2009/10/28/stories/2009102850291500.htm
Monday, October 12, 2009
Air India to fly daily to Washington from Dec 1
The flight from India will arrive at 9.30 a.m. and depart from Dulles International Air-port at 12.10 p.m. between December 1 and December 14. The timings change from December 15 when flights would arrive at 8.10 a.m. and depart at 1.10 p.m.
The decision by Air India has been welcomed by the members of the fast growing Indian-American community in Washington and adjoining areas, who have been demanding such a flight for several years."There was a demand for this flight from Washington DC and we are happy that our efforts have had a positive impact," said Mr Devashish Ray, Executive director of US Asian, a body of Asian communities.
"Air India wishes to thank USAsian for their sustained campaign in bringing this long-awaited need for flights from Dulles to India to a fruit-ful conclusion," the Chief of Air India in Washington DC. Mr Shrikant Gholt: said.
Source:
The Hindu Business Line
Date- 11 October 2009
Edition- New Delhi
Air India to fly daily to Washington from Dec 1
The flight from India will arrive at 9.30 a.m. and depart from Dulles International Air-port at 12.10 p.m. between December 1 and December 14. The timings change from December 15 when flights would arrive at 8.10 a.m. and depart at 1.10 p.m.
The decision by Air India has been welcomed by the members of the fast growing Indian-American community in Washington and adjoining areas, who have been demanding such a flight for several years."There was a demand for this flight from Washington DC and we are happy that our efforts have had a positive impact," said Mr Devashish Ray, Executive director of US Asian, a body of Asian communities.
"Air India wishes to thank USAsian for their sustained campaign in bringing this long-awaited need for flights from Dulles to India to a fruit-ful conclusion," the Chief of Air India in Washington DC. Mr Shrikant Gholt: said.
Source:
The Hindu Business Line
Date- 11 October 2009
Edition- New Delhi
Thursday, October 1, 2009
AI plans to woo back passengers
The national carrier is working on special discount offers to woo back its lost passengers. “Yes, we are going to announce special discounts for our passengers. We are working on the details as in to what extent and which routes these discounts should be offered. The minimum discount will be 10 per cent,” a senior AI official, who did not wish to be named, said.
The carrier has lost over 50 per cent of its passengers in the five days of strike. It had stopped bookings from Monday night which opened only on Wednesday afternoon.
The focus is now to add new passengers. “People who were planning to travel immediately must have cancelled their bookings and must have got tickets of some other carriers. The discounted fares will help us gain back passengers who are going to fly in the next few days,” the AI official said.The passenger traffic for AI has come down to about 14,000 from about 33,000 in the normal days. The offer – likely to be announced by Thursday – will not have much impact on international bookings though.
“The international bookings are done much in advance. Once a passenger has cancelled his booking, it is unlikely that he will book his tickets before a month. So, it is difficult to win back those passengers,” he said.
The carrier has lost about Rs 130 crore in the last five days due to pilots strike. The huge cancellations in the booking have give equally significant traffic to the private carriers. While the usual seat factor for these airlines varies between 70-80 per cent during festival season, this went up to 90 per cent due to AI cancellations. “AI will have to offer special fares to attract customers. The carrier has lost about 70,000 passengers in the last five days. They will have to take initiatives to win them back,” Ankur Bhatia, executive director of Bird Group said.
It restarted operating long haul flights including Delhi-Frankfurt-Chicago, Mumbai-Franfurt-Newark, Mumbai-London, Delhi-London, Amritsar-London-Toronto and Ahmedabad-Frankfurt. For domestic routes, it has drawn up a flight restoration plan. It cancelled 111 flights on Wednesday in advance due to non availability of pilots. The flights will be gradually reinstated.
Source:
ChronicleDate- 1 October 2009
Edition- New Delhi
http://www.mydigitalfc.com/industrial-policy/ai-plans-woo-back-passengers-219
Tuesday, September 29, 2009
Air India calls strike dud but ready to talk
The senior had pilots gone on indefinite strike on Friday in protest against salary cut and a reduction in productivity linked incentives, approved by the A- I board a few days ago. The Indian Commercial Pilots Association (ICPA) extended its “moral support” to the striking pilots on Saturday. The ICPA is a body comprising more than 600 junior non- executive pilots the erstwhile Indian Airlines.
Addressing a press conference, ICPA president Captain Shailendra Singh said: “We have extended moral support to the executive pilots and request the A- I management to resolve the issue amicably.” An ICPA office- bearer said the decision to join the strike would be taken in two- three days, but “it is non- cooperation” for now. “We have already written to the Directorate General of Civil Aviation (DGCA) about pilots being under mental pressure due to salary cuts,” Singh said.
A senior A- I official said in the event of ICPA pilots joining the strike, domestic flight operations would come to a halt. An A- I spokesperson said the airline’s chairman and managing director ( CMD) Arvind Jadhav had called the agitating executive pilots for talks on Sunday.
But Captain V. K. Bhalla, spokesperson of the agitating pilots, said there was no question of going for negotiations till the time the order regarding the salary cut was withdrawn. Bhalla said none of the pilots was in a fit state of mind to fly and this had a direct bearing on passenger safety.
“We are also being subjected to racism, Expat pilots are getting more salary than their Indian counterparts,” he alleged. The CMD “has issued a Talibani order of cutting our salaries by 50 per cent,” Bhalla said. In fact, with productivity linked incentives also reduced, it will actually be a 70 per cent cut, he added.
On being asked about the inconvenience being caused to flyers because of the strike, he said: “We have been forced to go on strike and the CMD is responsible for it. Call it by whatever name, but it is a strike and the pilots are refusing to fly.” Bhalla said about 400 executive pilots had not reported for work and the ICPA may also join the agitation. The A- I rejected the claim as wrong. The airline’s spokesperson, Jitendra Bhargava, said only 28 pilots had reported sick.
He also said the strike had not affected flight operations. Only 13 of the 200 domestic flights were cancelled. Three of the affected flights were from Delhi to Lucknow, Srinagar and Kabul. The affected passengers were transferred to other A- I flights, he said. From midnight till 5 pm on Saturday, all the 58 international flights operated normally, Bhargava said.The agitating pilots are expected to meet the A- I management in Mumbai on Sunday to discuss their demands. Though the airline claimed the agitation has had no effect on its operations, the management will meet the representatives of the protesting employees in Mumbai on Sunday to address their concerns. CMD Jadhav, is scheduled to meet the agitating executive pilots and discuss the reduction in their productivity- linked incentives, the main reason for the strike.
Source:
Mail Today
Date- 27 September 2009
Edition- New Delhi
Thursday, September 10, 2009
Global air travel getting back on track, but full recovery only after ’11
Source:
The Economic Times
Date-10 September 2009
Edition- New Delhi
Wednesday, September 9, 2009
AI to shut 22 offline stations to save costs
Offline stations are ticketing and administrative offices set up in cities where the airline has stopped flying or has minimal network. Each of these stations have a minimum of eight officials and use expensive office space. The carrier had set up offices at Seoul, Jakarta and Auckland in Australia, among others, to operate on these sectors profitably, but failed to generate business on these routes.
AI's CMD Arvind Jadhav has also asked its executive directors posted in foreign cities, where there is marginal business, to return to India. He has asked top AI officials to prepare a detailed report on savings generated by shutting these non-profit stations.
The closing down of these offline stations will, however, have minimal impact on the airline's operations globally, as it is set to become a member of the Star Alliance by 2010. After joining Star Alliance, AI would benefit by partnerships with other member carriers for marketing, sourcing of spares and long-term contracts for fuel. As the full integration happens with Star Alliance, the flying returns scheme of AI would also be integrated with the frequent flier programmes of member carriers, where miles earned on one carrier can be redeemed with any of the other member airlines.
Joining the alliance would also mean sharing of airport lounges and synchronisation of Air India flight schedules for the national carrier. Passengers would be able to undertake seamless travel on a single air ticket, even if it requires flying several carriers on a single journey.
The carrier is reeling under losses of Rs 7,200 crore for FY09 and is taking steps to stay afloat at a time when its debt is Rs 16,000 crore. It is looking to infuse equity of over Rs 2,500 crore and is also seeking a loan of Rs 10,000 crore. Arvind Jadhav had recently told the media, "We will turn around the carrier within three years. Efforts are on to bail it out of dire circumstances."
Simultaneously, the carrier has taken other cost-cutting measures like hiving off its cargo section into a separate subsidiary, which would again churn revenues of Rs 1,200 crore from the existing Rs 800 crore. AI's team of officials is already studying newer markets in South-East Asia, far and Middle East and Europe to increase their capacity from 1,500 tonnes to over 5,000 tonnes within 36 months.
Source:
The Financial Express
Date-9 September 2009
Edition- New Delhi
http://www.financialexpress.com/news/AI-to-shut-22-offline-stations-to-save-costs/514626/
Monday, September 7, 2009
BA redeploys planes to tap luxury leisure routes
"Initial bookings are very encouraging, Richard Tams, head of UK sales," said in an interview. "We chose the routes carefully where we think demand will hold up," Tams said by telephone. "We don't normally have the aircraft available, so this has given us the opportunity to build some business there."
Passenger numbers fell 2.8 per cent in the five months through August, prompting British Airways to park 16 aircraft and cut capacity by 5 per cent for the coming October-March timetable. The carrier's new routes are targeted at upscale resorts catering to wealthier clients who are less likely to rein in spending in the recession, Tams said. "There is still a very healthy market in premium leisure," the executive said in the September 4 interview. The passengers are high-end travellers who not only want comfort at the resort but also on the way there. British Airways will deploy widebody Boeing 777 aircraft for the new routes. The service to Las Vegas will leave from London Heathrow and others from the UK capital's Gatwick airport. The flight to Montego Bay in Jamaica is being revived after a four-year gap, while services to Sharm El-Sheikh in Egypt were dropped last year when the company sold its GB Airways subsidiary to EasyJet. British Airways will this month also begin an experimental business-class-only service from London City airport to New York using two Airbus SAS A318 narrowbody planes.
The new service was announced on February 1 last year. The airline will scrap short-haul flights from Gatwick to Malta, Krakow in Poland, and to Alicante, Palma, Madrid and Barcelona in Spain. British Airways will also screen its first UK television commercial for two years this month. The airline said it's taking advantage of a drop in advertising prices.
Source:
Financial Chronicle
Date-8 September 2009
Edition- New Delhi
Air Astana organises FAM trip for Indian travel trade to Astana and Almaty from September 7-12, 2009
The airline is taking 10 representatives from major tour companies and OTAs like SOTC, Cox & Kings, Raj Travels, Kesari Tours, Makemytrip etc. According Chander Mulchandani, Manager (Sales & Marketing), Air Astana in New Delhi, the main aim of the FAM trip is to create awareness about beautiful places in Kazakhstan and promote it as a MICE destination in India. As reported earlier by TravelBiz Monitor, the airline in association with Kazakhstan Tourist Association (KTA) will also organise a FAM trip for the Indian media in November this year.
Source:
Travelbizmonitor.com
Date-4 September 2009
Edition- National
http://www.travelbizmonitor.com/air-astana-organises-fam-trip-for-indian-travel-trade-to-astana-and-almaty-from-september-712-2009-8108
Wednesday, September 2, 2009
Jet starts Kochl Sharjah daily flight
Source:
The Hindu Business Line
Date-2 September 2009
Edition- New Delhi
Monday, August 31, 2009
Airlines roll out the red carpet for travellers
With the International Air Transport Association (IATA) pointing out in its latest report that global passenger demand for travel fell by close to three per cent in July this year as compared to the same period last year, international carriers are looking at wooing fliers back with a variety of sops. Discounts of up to 50 per cent for business and first class fliers and creating new zones within the economy class are some of the schemes being tried.
The Air France-KLM combine, for instance, is soon going to offer a new travel option product for its customers. “On the Air France aircraft, we will have a new class between economy and business called Premium Voyager. In terms of pricing, it will be positioned between the economy and business class tickets. On KLM aircraft, there will be no separate class but there will be a separate zone within the economy class,” said Mr Erik F. Varwijk, Executive Vice-President, Air France KLM.
The separate zone will come with wider seats and more privacy for fliers. The new product will roll out in November on Air France aircraft, while the entire KLM fleet will be converted to accommodate the new zone by December.
Through this move, the Air France-KLM combine is hoping to target two segments of its fliers. The first is the corporate customer who wants to save costs and the second is the leisure traveller who, according to Mr Varwijk, “desires a bit more luxury than economy.”
Malaysia Airlines is wooing passengers through its Economy Plus scheme and business class “buy one, get one free” offer. The Economy Plus scheme allows a passenger to travel in business class on a confirmed basis at fares which are 30-50 per cent lower than what a normal business class fare will cost. “This product has been specifically designed to promote travel during these bad times,” Malaysia Airline’s Regional Manager, Mr Azahar Bin Hamid, South Asia, told Business Line.
British Airways, on the other hand, is offering a discount of 25 per cent to its business and first class travellers. Bookings for this scheme are open only till the end of the month and out-bound travel must be completed by December 31. The tickets, however, are valid for a year.
Source:
The Hindu Business LineDate-31 August 2009Edition- New Delhi http://www.thehindubusinessline.com/2009/08/31/stories/2009083151680100.htm
British Airways offers discount to travelers
Source:
The HinduDate-29 August 2009Edition- New Delhi http://www.hindu.com/2009/08/29/stories/2009082951821400.htm
Friday, August 28, 2009
Air traffic shows improvement in July
Source:
The Indian Express
Date-28 August 2009
Edition- New Delhi
Tuesday, August 25, 2009
Air India plans low-cost flights in high-density domestic sectors
The airline is likely to deploy its older fleet on these routes, said Bhargav. Air India had earlier announced its plans to launch domestic low-cost operations through its international low-cost arm, Air India Express. The carrier will launch its low-cost domestic operations with 27 per cent of the domestic capacity from mid-September and increase it to 80 per cent later. “This will improve our bottomline. We expect to benefit by Rs 180-200 crore,” Arvind Jadhav had said earlier. The airline currently offers between 37,000 and 40,000 seats daily on the domestic sector. The low-cost services will be started with 10 aircraft. These measures are part of the turnaround plan that the company has chalked out for itself to come out of the red and increase revenues.
Low-cost flying has become the new buzzword in the aviation industry as flyers turn to lower fares after a global slowdown hit the industry and pulled down traffic figures. Currently, low-cost carriers carry 53 per cent passenger load on the domestic sector. Internationally too, low-cost flying has seen an upsurge as carriers like Air Arabia, Lion Air and the UAE government-backed Fly Dubai have entered the market.
Source:
The Indian Express
Date-26 August 2009
Edition- New Delhi
http://www.indianexpress.com/news/air-india-plans-lowcost-flights-in-highdensity-domestic-sectors/507065/
Friday, August 21, 2009
Air India to convert several business class flights to all-economy
Business class travel has been declining globally amid an economic slowdown, according to numbers released by the International Air Transport Association, an airline lobbying group. Global travel on premium tickets declined 23.8% in May from a year earlier; economy travel was down 7.6% in the same month.
“There is hardly any business class required (in West Asia),” said an Air India official, who didn’t want to be named. The carrier’s low-cost affiliate, Air India Express, operates 186 flights a week between India and West Asia and South-East Asia. The airline will increase its services to West Asia to make up for the flights Air India plans to pull, said a government official who asked not to be named.
Mint couldn’t immediately ascertain the number of flights and destinations involved in the route rationalization plan. Air India has committed to undertake an overhaul of its business operations, restructure its massive Rs15,241 crore debt, raise funds through a public offering in fiscal 2011 and convert three out of four of its flights into low-fare services.
Air India Flights and the erstwhile Indian Airlines were united under Nacil in 2007. The flag carrier continued to fly several sectors in West Asia and South-East Asia with Indian Airlines’ IC code. Some of the West Asian sectors will be now serviced by Air India Express. Flights such as Amritsar-Sharjah, Lucknow-Sharjah and those from Kochi and Kozhikode connecting destinations in West Asia may be handed to the low-cost carrier to operate.
Air India Express will also return three leased aircraft from its existing fleet of 22 Boeing 737-800 jets. With the same number of new aircraft to be delivered by Boeing Co. over the next three months, the fleet size of the subsidiary will remain at 22. The discount carrier is also set to start domestic discount services from next month with 10 Airbus SAS-made A320 aircraft.
Ahead of Air India Express’ September launch of its domestic services, Jet Airways (India) Ltd said on Thursday that its all-economy service, Jet Konnect, would increase flights on domestic routes from 135 to 180 daily between 3 September and 1 October.
The additional flights would be those operated previously by Jet Airways with aircraft that offered business class seats, besides economy. Jet Airways chief executive officer Wolfgang Prock-Schauer said in a statement that the move was in response to “strong demand for Konnect services on these domestic routes”.
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Source:
Mint
Date-21 August 2009
Edition- New Delhi
http://www.livemint.com/2009/08/20232026/Air-India-to-convert-several-b.html?h=B
Wednesday, August 19, 2009
Domestic airlines see rise in biz class travellers
“The number of passengers being flown in business class in the domestic skies is growing. When we compare July over June, we see an increase in the number of passengers carried in business class. But it is still too early to say that a recovery is taking place,” said Mr Sudheer Raghavan, Chief Commercial Officer, Jet Airways.
Air India (domestic) too has seen an increase in domestic business class travel which in some sectors is almost 50 per cent higher than what was being flown earlier, senior airline officials said.
“On the long haul domestic sectors such as Delhi-Chennai, Delhi-Coimbatore and Delhi-Bangalore, there has been an increase in the number of passengers flying in business class during the past few weeks,” an airline official said.
The increase in business class travellers is being attributed to several schemes such as ‘Spouse flies free’ and the ongoing ‘Monsoon magic’ promotion by the airline which offers a business class ticket for as low as Rs 9,500, sources indicated.
Jet Airways, which in a shift of focus to all-economy class low cost sub-brand Jet Konnect, had reduced its business class seats by 25 per cent in July. However, the airline has seen a 10 per cent increase in the number of passengers flying in business class on its full service brand Jet Airways.
Airline officials say that increase in business class passengers will have a positive impact on the bottomline. Jet primarily uses the Boeing 737 aircraft to operate domestic flights.
It has 48 such aircraft in which the business class seats vary from 16 of the 112 seats offered on the Boeing 737-700 to 24 of the 144 seats offered on the Boeing 737-800. The airline also operates the Boeing 737-900 aircraft which has 28 of the 160 seats in the business class. Air India’s domestic operations are largely carried out on the Airbus A-320 family with the Airbus A-320 having 24 business class seats out of the total capacity of 144.
Source:The Hindu Business LineDate-17 August 2009Edition- New Delhihttp://www.thehindubusinessline.com/2009/08/17/stories/2009081751330100.htm
Tuesday, August 18, 2009
Jet Airways to add to low-cost operation
Private carrier Jet Airways will be converting about 70 per cent of it overall fleet size into its low-cost arm, Jet Konnect, company officials said. It's also planning a fare hike by the end of the year.
“At present one-third of our overall fleet is being used for Jet Konnect but we plan to convert two-thirds of it to Jet Konnect by October,” said K G Vishwanath, Senior General Manager, MIS & Investor Relations. Jet’s AGM was held at the carrier’s Mumbai headquarters on Monday. According to Vishwanath, the carrier is also looking towards re-leasing its Boeing 777s whose leases are about to be expired in the near future. Of the 10 Boeing 777s that Jet currently has, seven have been leased out to different carriers (four to Gulf Air and three to Oman Air) from which Jet earns about $2.2 million annually, sources said. “The carrier is also looking at a price hike by end of this year, although the quantum of the price hike has not yet been decided,” a Jet Airways official said not wishing to be named.
Officials said that the carrier’s chairman Naresh Goyal emphasised on reduction in input costs and as a result a renegotiation of contracts with the airline’s vendors. Jet’s reported annualised figures mentioned costs savings of between Rs. 350-400 crore for financial year 2008-09 and the carrier is currently aiming at reducing its input costs by Rs. 300 crore for the current financial year.
A Jet official also said at present if the number of combined seats being sold under the Jet Airways and JetLite brand are to be taken into consideration then the figure is already touching the 70 per ent mark. The carrier has a total fleet size of 85 aircraft. It had launched Jet Konnect in May this year with a capacity of 20 per cent of its overall existing seats (excluding JetLite). The airline has dedicated two of its 175 seater Boeing 737-800 and six ATRs to initiate initial operations with Jet Konnect
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Source:Indian ExpressDate - 18 August 2009 Edition - New Delhi
Tuesday, August 11, 2009
Air India unveils turnaround plan
“Ground-handling subsidiaries of Lufthansa and Singapore Airlines account for almost 40 per cent of revenue of the parent company, whereas we currently earn only two per cent,” Jadhav informed. The national carrier will not only be launching a domestic low-cost airline from mid-September, but also re-evaluating aircraft purchase and financing processes.
“Air India Express will launch its low-cost domestic operation from mid-September on 27 per cent of Air India’s existing routes, that were not profitable and ten additional aircraft would be deployed for this purpose,” said Jadhav, adding, “Air India would gradually shift 70-75 per cent of its existing domestic operations to Air India Express.” The airline is expected to earn Rs 180-200 crore through its low-cost operations on the domestic sector, which would improve its bottomline.
Global aviation industry is passing through a very difficult phase owing to recession and India is no exception. Air India, which has over the year lost its market share, is expected to lose over Rs 7,000 crore this year. The carrier is also overburdened by its working capital borrowings worth Rs 17,000 crore.
Jadhav said that the airline would have to go for cost-saving measures, which will be painful. “We have got into a cash-flow problem. We are unable to service our interest and debt liabilities with our internal resources,” Jadhav added.
Air India has made a presentation to the Government on the need for equity infusion and soft loan as the airline is facing Rs 60,000 crore debt. “We have made a presentation to the Government and it is carrying out a financial analysis. It is up to them to decide as to how much money we need,” he said. The airline also said it would go for an IPO in the next 18 months.
Source:The PioneerDate-8 August 2009Edition- New Delhihttp://dailypioneer.com/194505/Air-India-unveils-turnaround-plan.html
Thursday, August 6, 2009
Air India Express to launch low-cost domestic operations from September
The low-cost service would initially be operated from 24 cities with a mix of both metro and non-metro routes, the official said, adding the service will have 161 flights a week.
Air India Express is the budget arm of national carrier Air India which operated on routes from cities in India to South-East Asia and the Middle-East. Though a low-cost service, light refreshment would be served to passengers on board, the official said.
Source:
The Pioneer
Date-7 August 2009
Edition- New Delhi
Appeared on Pg 10
Air India to convert 10 jets for low-fare flights
Air India, run by National Aviation Co. of India Ltd, currently operates Air India Express as its international low-fare carrier. Its entry into the domestic low-fare aviation market could further lower ticket prices.
Rival full-service carriers Kingfisher Airlines Ltd and Jet Airways (India) Ltd, India’s largest private airlines, have already shifted at least half their fleets to all-economy flights as they fight competition from discount airlines such as SpiceJet Ltd, InterGlobe Aviation Pvt. Ltd-run IndiGo and Go Airlines (India) Pvt. Ltd-run GoAir.
“A decision has been taken to convert old aircraft to all-economy class and they will fly under Air India Express,” an Air India official said, asking not to be named.
The 10 aircraft to be converted date back to between 1989 and 1994 and have 148 seats each. Over the next two months, these will be redesigned to have 168 seats, he added.
The conversions will take place at the Mumbai and New Delhi airports, two key bases for the carrier. To start with, seven aircraft will be converted and tickets can be purchased from the Air India Express website.
“It’s (launch) is aimed at middle of September,” said another official, adding that the exact date would depend on the time taken to reconfigure the aircraft.
Typically, aircraft that undergo a change in configuration or are retro-fitted have to be recertified by the manufacturer, in this case Airbus SAS, if there is a drastic change in the specifications, he said.
For the new domestic service, Air India will pull out its full-service domestic flights on some routes to accommodate the low-fare flights, the official said.
For example, an afternoon slot on the Delhi-Mumbai route, which may not be in high demand from business-class fliers, will be allotted to Air India Express.
Air India flies 57 of its 147 aircraft on domestic routes and has seen its passenger market share scroll down to 17% now from 20% in 2006-07.
But unlike Jet and Kingfisher, who are trying to regain corporate passengers who have migrated to low-fare airlines because of company policy, Air India can benefit from this model only if it cuts overall costs, said an analyst tracking the Indian aviation sector.
“If this is one element of a much more comprehensive revamp, then aggregate of all that may make a difference. But this move in itself may not have a big impact,” said Rishikesha T. Krishnan, professor of corporate strategy and policy, Indian Institute of Management, Bangalore.
“You are not going to see major expansion of the (passenger) market. Air India can only hope that they will get a slice of other LCCs (low-cost carriers).”
Source:
Air India to convert 10 jets for low-fare flightsMintDate-7 August 2009Edition- New Delhihttp://www.livemint.com/2009/08/07004207/Air-India-to-convert-10-jets-f.html?h=B
Etihad to fly to more Indian cities
ABU Dhabi-based Etihad Airways is looking at a major expansion in India. To begin with, the national airline of United Arab Emirates (UAE) will increase its weekly flight frequency to 45 by the year-end from the present 38 flights.
As part of this plan, the carrier has announced four flights per week from Hyderabad. The flights will begin from November and will operate daily beginning next year. The airline will also add more Indian cities to its list of six destinations.
"We are focusing on our network growth. The traffic growth from India is tremendous. The traffic in all segments including corporate, leisure and even students has grown significantly in the recent past," Neerja Bhatia, country manager (India and Sri Lanka), Etihad Airways, told Financial Chronicle. At present, Etihad operates 38 flights a week from Abu Dhabi to Mumbai, New Delhi, Thiruvananthapuram, Kochi, Kozhikode and Chennai.
The airline's expansion comes at a time when almost every airline in the world is struggling hard to manage load factor and margins. Bhatia said the carrier would further expand its operations depending on the aviation ministry's approval in India. "We have applied for the civil aviation ministry's approval to fly to more destinations from India. One city that we want to add immediately is Bangalore.
There are continuous talks with the Indian aviation authorities. We have got a lot of support from them,"Bhatia said. The airline, however, may have to wait before it adds more Indian destinations to its list. The ministry of civil aviation is going very slow on bilateral agreements to award additional traffic rights to foreign carriers to help domestic carriers who are having tough time with declining demand and high aviation turbine fuel (ATF) prices.
"We have received requests from several foreign carriers to increase frequencies from India. However, we will go slow on bilateral agreements. Our own carriers are struggling with the low traffic. Allowing more foreign flights will make it even tougher for them to fly," a senior ministry official, who did not want to be named, said.
The number of flights operated by foreign airlines has increased around 85 per cent in the past five years. While in 2004, foreign carriers operated 711 services per week to and from India, in 2009, the number touched 1,315.
Source:Etihad to fly to more Indian citiesFinancial ChronicleDate-7 August 2009Edition- New Delhi Appeared on Pg 6
Thursday, July 30, 2009
Airlines told to display fares properly on net
The regulator has asked all s domestic airlines to become s transparent in displaying tariffs by August 15 or face action. It s also wants the 70-odd foreign l airlines to follow this rule. DGCA chief Naseem Zaidi met representatives of these - airlines on Wednesday to discuss the issue. In an amendment of rule 135 of the Aircraft Rules on April 16, 2009, airlines were made to display tariff in a conspicuous manner to show the total amount with complete break-up.
The break-up should have had indicated the fare, tax, fees or any other charge separately. The airlines had also been asked to advise their travel agents to act accordingly. The airlines were given a deadline up to June 30 to comply with the rule. "(But) Instead of showing the total amount as one figure, the airlines split the basic fare and misled passengers," said a senior DGCA official who is not authorised to talk to the media.
"The fuel surcharge, for instance, is shown separately and it seems it is a charge levied by the government even when it is not," the official said. "We are pursuing the airlines to follow the law and plan to take serious action if they keep on doing this even after August 15. We can stop their flights right now but that would only inconvenience passengers," he said.
The DGCA has also asked airlines to stop using jargon that confuses passengers. "There is no uniformity of airfare display on websites and they are not fully in accordance with the rule," he said. The regulator has found 33 travel agents/portals book air tickets through their websites but are not following the rules.
Source:
Hindustan Times
Date-31 July 2009
Edition- New Delhi
Wednesday, July 29, 2009
Budget carriers fly high in downturn
Goyal, who has shifted a third of his capacity to an all-economy class service, Jet Airways Konnect (started in May), plans to shift 70 per cent capacity to this service by October. If you include Jet Lite, Goyal has already moved 50 per cent of his planes in the no-frills mart. Next, Air India plans to launch Air India Express’ low-fare service on domestic routes.
Low cost carriers (LCCs) have 55 per cent of the market, up from 45 per cent in Q1 last year, and 30 per cent two years back. Does it mean India really is an LCC market? The performance of the airlines also seem to suggest that. While budget carrier Spicejet announced a small profit for Q1, all the big boys in the industry seem to be in trouble.
While Spicejet made a net profit of Rs 26.3 crore in the quarter ended June 30, 2009, Jet Airways and Kingfisher have reported a net loss of
Rs 225.31 crore and Rs 242.71 crore on declining yields at home, while Air India Flights has sought a Rs 20,000 crore bailout from the government, after totting up losses of Rs 7,000 crore till March 2009.
In fact, even Goyal’s JetLite has made a Rs 2 crore net profit in the quarter ended June against a net loss of Rs 135 crore in the same quarter last year. Budget carrier Indigo could be in the same league (it has notched up 13.7 per cent market share) but its numbers are not available as it is not a listed company.
Amitabh Malhotra, director of investment banking firm NM Rothschild & Sons said that India is a highly price-sensitive market. In times of downturn, consumers tend to shift from premium to economy, and the churn again favours LCCs. The downturn forced companies to curb travel. If travel is necessary, companies are asking executives to fly budget carriers. Spicejet saw its corporate business growing 65 per cent in Q1.
This shift in traffic also forced a reluctant-Goyal to launch Jet Airways Konnect in May. ‘‘People are willing to travel, so long as it is the lowest logical fare. Jet Airways is better-off being present in this segment,’’ said a company executive.
Source:
Budget carriers fly high in downturnBusiness Standard
Date-30 July 2009
Edition- New Delhi
http://www.business-standard.com/india/news/budget-carriers-fly-high-in-downturn/365334/
Americans top list of foreign visitors to India
Even as India reported just a marginal growth in the number of foreign visitors last year as compared to 2007, US citizens continued to be on the top of the list of those who found the country attractive enough to travel.
Latest figures, released by the home ministry, show that India received as many as 52,78,852 foreign visitors in 2008 against 50,96,990 in 2007, an increase of only 1.81 lakh, quite less than what the country witnessed during 2004-07 when it recorded an addition of over five lakh visitors every year. Nevertheless, the flow of visitors from the US remained quite high with the country along with UK accounting for nearly 30% of the total foreigners who visited India last year.
Other countries whose citizens visited India on different visas -- student, employment, business and tourist -- in relatively higher numbers are: Bangladesh, Canada, Sri Lanka, France, Germany, Australia, Japan and Malaysia. Though all those who visited India were not tourists, the statistics show that the majority of them came on short-term visa with single entry. There was a different trend as far as visitors from China were concerned. A large number of Chinese workers, including semi-skilled ones, came on business visa but stayed back to execute various projects in India.
Making the revelation in Lok Sabha during the ongoing Parliament session, minister of state for home Mullappally Ramachandran said: "The matter has been examined and it has been decided that all foreign nationals, including Chinese nationals, coming for executing projects/contracts will be eligible to come on employment visa."
Over 69,000 out of the 98,092 Chinese who visited India in 2008 came on business visa - unlike other countries which generally send ‘tourists’ in high numbers. Visitors from Bangladesh and Pakistan, on the other hand, showed a different trend. Thousands of them who entered India on valid travel documents did not show up after the expiry of their visas during 2005-07, posing a grave security risk with the agencies here not ruling out the possibility of the involvement of a few ‘missing’ ones in terror acts.
The statistics also revealed foreigners' attempt to enter India on the basis of forged travel documents. While 381 of them were caught at different international airports -- Delhi, Mumbai, Kolkata, Chennai and Amritsar - last year, 366 were arrested in 2007.
Source:
The Times of India
Date-26 July, 2009
Edition- New Delhi
Monsoon spa packages in Goa
Source: Mail Today
Date-26 July, 2009
Edition- New Delhi
Wednesday, July 22, 2009
Air India Introduces Special Fares
NAP-3 Fares The newly introduced NAP-3 fares available on 24 domestic sectors on Air India network comprises of basic fare and Passenger Service Fee (PSF). No fuel surcharge is applicable on these fares. The all inclusive one way fare on some of the sectors is as follows: Mumbai-Hyderabad--Rs 2,079 Mumbai-Bangalore--Rs 2,779 Mumbai-Kochi--Rs 3,279 Mumbai-Chennai--Rs 3,279 Mumbai-Delhi--Rs 3,279 Delhi-Chennai--Rs 3,779 AP-3 Fares The special AP-3 fares available on 70 select domestic sectors comprises of basic fare, PSF and fuel surcharge. The all inclusive one way fare of some sectors are: Mumbai-Udaipur--Rs 3,094 Mumbai-Goa--Rs 3,094 Mumbai-Kozhikode--Rs 4,499 Chennai-Goa--Rs 4,499 Mumbai-Trivandrum--Rs 5,399 Chennai-Kolkata--Rs 5,399 Delhi-Hyderabad--Rs 5,399 Mumbai-Kolkata--Rs 5,919 Delhi-Bangalore--Rs 5,919 These fares are non-refundable and would attract a fee of Rs 750 per coupon for re-booking. No frequent flyer points will accrue on these fares. User development fee, wherever applicable, will have to be paid extra by the passenger.
Source:
The PioneerDate-23 July, 2009Edition- New DelhiAppeared on Pg 14
Special fares on Air India
Source:
The Economic TimesDate-23 July, 2009Edition- New DelhiAppeared on Pg 16
Monday, June 22, 2009
Online air travel bookings fall post fuel surcharge hike
Jet Airways hikes fares by Rs 400National carrier Air India and low-cost carriers SpiceJet and GoAir increased the fuel surcharge by Rs 400. While the hike from SpiceJet and GoAir was effective from late Wednesday night, on Air India's domestic flights it will come into effect from Friday.
Jet Airways and Kingfisher Airlines also raised fuel surcharge on domestic routes on Wednesday by Rs 400. Airline officials, however, claim that the latest hike in fuel surcharge does not mean that air fares have increased.
Air India hikes fuel surcharge on ATF rise"If one were to compare prevailing domestic airfares with what they were in July last year, then the current fare levels are almost 25 per cent lower," said a SpiceJet official.
However, customers seem to think otherwise. Cleartrip's Noel Swain told Business Line, "We saw a 35 per cent surge in bookings last week when the airlines announced promotional fares."
Whether the sentiment is here to stay or is just an immediate reaction to the hike will be known in week, said Keyur Joshi of MakeMyTrip.
More India business stories: While Yatra's Ms Bhawana Agarwal does not see any immediate impact on the portal's booking scenario, she does concede that families would find air travel expensive. Aviation Turbine Fuel prices have risen by 33 per cent since March; however, the airlines did not hike charges till Wednesday.
Air India Rescheduled Monthly Salary
The senior official of Air India told that Air India is fighting of its survival. "We are in a low-fare regime. The fuel tax is going up. The number of passengers is not that high. There is excess capacity in the market," Air India spokesman said in an interview. "The situation is not peculiar to Air India. It goes across the board in India and globally."