Air India flights will operate as normal from Tuesday. This follows the airline management and pilots reaching an agreement in Mumbai on Sunday.
“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 The pilots have withdrawn the strike call issued earlier,” a senior airline official told Business Line without divulging details of the agreement reached.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
Monday, November 30, 2009
Tuesday, November 24, 2009
AI’s US flight may be scrapped
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.
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
"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
It’s a dogfight in the Indian skies for every passenger. In a market overflowing with choices, Swiss International Airlines is looking tostand up and be counted. It’s betting big on India and the Indian travellers need to be pampered.
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
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
Plan by National Aviation Co. of India Ltd (Nacil) to launch a low-cost affiliate of cash-strapped Air India, the national flag carrier, to compete on domestic routes with private carriers has been tripped up by regulatory and financial hurdles.
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
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
Airfares are going up. Following a recent sharp rise in jet fuel price, full service carriers — Jet and Kingfisher — have hiked fuel surcharge on short and medium haul domestic flights by Rs 100 and Rs 200 respectively. Budget carriers like SpiceJet have also introduced a similar hike. National carrier Air India (domestic) is yet to take a call on raising this surcharge.
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
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
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