8 2015

http://www.therakyatpost.com/newsTwo Hercules aircraft stationed in UAE to fly Malaysians out of Yemen

Two Hercules C-130 aircraft were deployed to the United Arab Emirates (UAE) to evacuate Malaysians in war-torn Yemen.Armed Forces chief General Tan Sri Zulkefli Mohd Zin, in a statement, said the planes departed from the Subang airbase last night along with 43 personnel.The statement was shared by Defence Minister Datuk Seri Hishamuddin Hussein on Twitter.The two aircrafts will be stationed at the UAE, ready for immediate deployment for the safe evacuation of our Malaysian citizens through neighbouring countries, Zulkefli said.He added that they had planned and coordinated the evacuation since the unrest in Yemen unfolded and had been waiting for the right moment for deployment.Earlier, Zulkefli said to date 154 Malaysians had been evacuated from Yemen.They departed from Jeddah, Saudi Arabia for Kuala Lumpur yesterday.We urge our citizens in Yemen to give their full cooperation and support our efforts in ensuring their safe return.The safety of all Malaysians at this moment remains our top priority.Zulkefli also thanked the UAE armed forces for their cooperation in accommodating Malaysian aircrafts and personnel for facilitating the evacuation.

http://blogs.wsj.comAir India Suspends Pilots As it Investigates Fight on Flight

A dispute in the cockpit of an Air India jetliner has resulted in the suspension of a commander and co-pilot, the countrys state-owned flag carrier says.The two officers were removed from duty pending an internal investigation after what the airline termed a minor argument before they flew an Airbus 320 loaded with passengers from Jaipur in northwest India to Delhi, the capital.An Air India spokesman said the pair decided to fly to avoid inconveniencing passengers. When the plane arrived in Delhi, the commander reported the squabble. The spokesman declined to describe the nature of the argument.AdvertisementIn 2013, Air India suspended a pilot and two flight attendants after local media reported that both pilots operating a Bangkok to New Delhi flight left control of the plane in the hands of two flight attendants so that they could take a nap. At the time, Air India had denied that the cockpit was left unattended by the pilots.Separately, in August last year, both pilots of an international Jet Airways flight were suspended after their aircraft suddenly dropped 5,000 feet over Turkish airspace.The flight from Mumbai to Brussels plunged from 34,000 feet to 29,000 feet as the commander of the flight was taking a nap and the co-pilot failed to notice the drop in altitude until contacted by air traffic controllers in Turkey, Indian newspaper reports said. Jet at the time said it had initiated an investigation. An airline spokeswoman said she did not have details about the latest status of the investigation on Monday.Loss-making Air India has been trying to improve its financial health and its image.Air India in June joined the Star Alliance, the worlds largest grouping of carriers, as part of its effort to cut costs and raise revenue. Last week, Air India added a 20th Boeing Dreamliner jet to its fleet. The 787 planes are considered more fuel-efficient than similarly-sized jets.

http://www.usmarketsdaily.comThe United Continental Holdings Inc (NYSE:UAL) Chief Expresses Solidarity with LufthansaThe recent German Wings crash was a tragedy that took the lives of about 150 people on board. The United Continental Holdings Inc (NYSE:UAL) CEO, Jeff Smisek, has expressed the solidarity of UAL with Lufthansa, the parent airline of German Wings. The CEO also expressed support of his company in the tough times. The UAL Chief continued to say that this cruel act by an isolated individual is one that has shocked everyone. The letter was one that reflected on the relationship between the two airlines that goes back to 1997. It was when the two airlines, combined with three more, to form the worldwide Star Alliance.Does this analyst foresee a long-term upside in UAL?The Lufthansa Airlines had a clean flight record before this crash took place in the French Alps. The letter also included a few acknowledgments covering the safety standards of Lufthansa Airlines, amongst others. There was also an acknowledgment of the training and safety standards of the airlines. The letter would serve as some good news for the company since the Lufthansa Airlines recently faced criticism for letting a mentally unstable person pilot the plane. The reassurances by the United Continental Holdings Inc (NYSE:UAL) Chief can well help them fight these waves of criticism.The two airlines have been in business with each other for quite a while now. They share joint ventures and business partnerships for flights between the continents of Europe and North America. They are amongst the five founding members of the Star Alliance frequent flier group, which now has up to 27 member airlines. The organization comprises of airlines from around the globe. Current members include: Singapore Airlines, United Airlines, Lufthansa Airlines, Adria Airways, Aegean Airlines, Air Canada, Air China, Air India, and others. It is believed that the co-pilot deliberately crashed the plane after locking the Captain out of the cockpit.

http://www.thehindubusinessline.comHow the Gulf airlines are ruling the skies

Like all other sectors, aviation is also witnessing an intense battle between the haves and the have-nots, but with one difference: the West is powerless here, with airlines based out of Gulf countries ruling the skies. With their wide-ranging choices and unbeatable bargains, airlines such as Etihad and Emirates are becoming the Indian travellers first choice to fly to Europe and beyond. Gulf-based carriers have also made full use of bilateral agreements with India by operating multiple flights. Conversely, Indian operators have underutilised their bilaterals. According to a report by aviation consultancy CAPA, as a result of the expanded bilateral agreements that India has signed with Dubai and Abu Dhabi over the past 12 months, weekly entitlements for UAE carriers will increase to over 135,000 seats by 2015-16. This represents a massive increase from the 10,400 seats available to six cities in 2003-04. And it dwarfs the access offered to any other single country it is almost as much as all European countries combined. Further boost The Civil Aviation Ministrys latest proposal on international routes will tilt the scales further in favour of the Gulf carriers. The existing policy, called the 5/20 rule, had made it mandatory for all domestic airlines to complete a minimum five years of domestic operations and have at least 20 aircraft in their fleet to become eligible to fly international routes. Under the new proposal, domestic airlines need to accumulate 300 domestic flying credits (DFCs), instead of 200, for flying international routes. This means that an airline will now need another two years and in some cases up to four before it can qualify with a fleet of five to six aircraft. It doesnt end there. A new airline will also need to undergo stringent security and safety audit after one year of operations and even a minor issue can derail its plans to fly international routes. article was published on April 7, 2015)

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Besides, to fly short-haul international routes of less than six hours (read West Asia), an airline needs to accumulate 600 DFCs. The new proposal effectively shuts out airlines like Vistara as well as AirAsia India, which are perfectly capable of flying international routes because of their experience, says Ashvani Kumar Sachdev, former chief operating officer of GoAir. This will be advantageous to Emirates (Dubai-based), Etihad (Abu Dhabi) and Qatar Airways (Doha). Even European and US-based carriers are facing the heat from their Gulf rivals. They have accused Gulf-based airlines of unfair competition and claim that they received subsidies worth $42 billion since 2004. Subsidy allegations Western carriers claim that by doling out subsidies, and in some cases writing off the entire loans, Gulf countries are violating bilateral agreements, and putting their airlines at an advantage, allowing them to offer extremely low fares. For instance, a return economy-class ticket between Bengaluru and Frankfurt on Lufthansa sometimes costs nearly twice that of Emirates. Lufthansas Chief Strategy Officer, Sadiq Gillani, fears that over the next five-10 years, East-bound flights will disappear for most European carriers. The volume of capacity by 2020 will double for Gulf carriers, which means it is growing way beyond their local demand, says Gillani. He points out that Australias Qantas has already cut back on European flights and the same will happen to Asian carriers as well. According to him, lower taxes, virtually free infrastructure and a non-unionised environment give Gulf carriers a 25 per cent advantage in costs over the rest.

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Therefore, to compete on an even scale, Lufthansa plans to introduce long-haul low-cost Eurowings to Asian markets and the first destination it plans to touch will be Dubai. Gillani says Eurowings will have a completely different cost structure with new labour contracts for its employees. At the same time, Lufthansa will be positioned as an upmarket five-star offering. But Gulf airlines deny the accusations. In a statement, Emirates told BusinessLine that foreign airlines have launched a protectionist campaign against Gulf carriers. We are state-owned but do not receive government hand-outs and we categorically deny any allegation by the US carriers in respect of subsidy. We are transparent in our business practices and have published annual financial reports audited by PricewaterhouseCoopers for over 20 years, the statement said. Sir Tim Clark, president of Emirates, told a press conference in Washington in March that several of the new orders from Emirates were for Boeing aircraft as well as Airbus, indicating that the airline was responsible for creation of thousands of jobs across these two continents. I struggle with the allegation of market share and damaging the market when they dont fly to the points we fly to. I cannot see how manifestly we damage their financial position, he said. But Lufthansas Gillani disagrees. He points out that without fair competition rules, foreign carriers will shrink in size. Teaming up with Gulf carriers was not a possibility at all as American and European airlines have non-stop flights to cities in the East. Some of the Gulf carriers are not stopping at mopping up market shares across the globe. They are also buying up stakes in some of the European carriers. For example, Etihad has a 75 per cent stake in Italys Alitalia and wants to increase its interest in Air Berlin. It hasnt left India out of its ambit either. It has a 24 per cent stake in Jet Airways and there are indications that IndiGo might offer some of its own to either Qatar Airways or Emirates. (This was published on April 7, 2015)

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