cruising heights

CRUISING HEIGHTS June 2012

EDITOR-IN-CHIEF’S NOTE

3

In 2006, the globalconsulting badshahthat had TigerWoods as its facefor years in its

report on the two thennational carriers — Indian Airlines and AirIndia — said that the critical factor for their‘sub-optimal’ performance was the fact thatthe two existed as separate entities and theirfleet was old. Accenture said a merger wasbest because “consolidation can helpcompanies increase efficiency and scale andserve customers more effectively” and “thekey to realising these advantages, however,is planning for pre- and post-mergeractivities and integration”.

According to the Accenture report, if thetwo airlines were merged and a new fleetwas ordered, there would be a profit of`1,000 crore in year one of the merger andfor the rest the sky was the limit. What youhave instead is that the losses in the firstyear was slightly above the profits thatAccenture had suggested: it was `1,200crore. It went up to `2,600 crore in year twoand `5,500 crore in the third year. Today, thelosses are hovering around the `17,000 croremark.

Just around the time that Accenturebegan work on the Air India merger, theywere awarded and — to the shock of many— accepted with alacrity the plumassignment of managing and advising on themerger of the Kingfisher-Air Deccan saga. Itwas a conflict of interest of the worst kind:managing two mega mergers in the samesector in the same country at the same time!But Accenture didn’t bat an eyelid in takingon both assignments, and to the eternalshame of the government, no one put a footdown in the government and told Accenturewhere to get off. To be fair to Accenture,they kept a level playing field for bothmergers and both are ready to fall off thecliff almost back to back!

No one’s asking any questions about thepots of good money that were wasted on thisglobal consultant whose total result has beennought. The merger is on paper and if thereare red flags that Accenture has shown atevery corner — as some of them claim tohave done — one doesn’t find any evidenceof it in Rajiv Gandhi Bhawan.

In fact, time and time again, in the firstthree years of the merger as the lossesmounted, the anger and bitterness withinIndian Airlines and Air India had to be seento be believed. They simply laughed at the‘Johny-Tonies’ — an euphemism for thesuited-booted consultants who were ruiningtheir future with all sorts of fancy ideas.

There is much that the Maharaja’s menand women have to answer for. No doubtabout that. But the fact is that they were ledinto a merger that they never wanted andthey were forced into a marriage that wassimply unworkable from day one.

Maybe it’s time for Ajit Singh toacknowledge that the best way forwardwould be to bite the bullet and cut theGordian knot and follow the Qantas modelof separating the domestic and internationaloperations and create a holding company tomanage the two subsidiaries.

As for Accenture, their swing has beenwild and woefully off the mark. Like Tigerthey need plenty of repair before they canstart delivering again.

K Srinivasan

Accenture. Performance Undelivered

[email protected]

THE AIR INDIA STRIKE, A HEAVY BLOW TO THE MAHARAJA THAT WASRECUPERATING, HAS THROWN UP GRAVE QUESTIONS NOT JUST ABOUT AIRINDIA BUT ALSO ABOUT THE AIRLINES' PROFESSIONALISM. WHAT IS MOREIMPORTANT TO THE PILOTS AND THE GOVERNMENT: THEIR SELF-CENTREDINTERESTS OR THE REVIVAL OF THE NATIONAL CARRIER WHICH ISREPRESENTATIVE OF THE COUNTRY'S AVIATION HEALTH ON THE WORLD MAP?

contents


Off

the

cuff

NEWS DIGEST p20One of the greatest miracles of theIndian aviation industry is the cri-sis-ridden Kingfisher that managesto fly occasionally plus AAI unveilsLucknow terminal, CAPA estimatesfor 2012-13 and the crash of theSukhoi Superjet 100.

EBACE 2012 p38Demonstrating its value in the midstof a challenging economic situation,the 12th Annual European BusinessAviation Convention & Exhibition atGeneva was attended by around12,638 people from 99 countries. Areport on the show.

Push for safety from thecloudXerox recently announced it wasblending its cloud capabilities withthe data expertise of AvFinity toprovide airlines with an efficient,simpler way to communicate. Xerox’son-demand cloud infrastructurealong with the AvFinity’s patent-pending software technologyflawlessly shares important data andkey transmissions from airlines toother carriers and innumerableflight authorities. Thesetechnological advancements ofteninvolve the use of different orunsuited communication formats thatcan inhibit airlines from efficiently-sharing information with keyaviation agencies and airlinepartners around the world.

Xerox business cloud servicesare solving this problem by helpingairlines share critical information,such as their flight plans andpassenger details with aviationagencies such as the US’ FederalAviation Administration, theTransportation SecurityAdministration and Customs andborder protection of destinationcountries. This means critical flightinformation arrives withoutinterruption at its destination andmeets each receiving party’s formatand protocol requirements.

“There is no room for error inensuring safety in the skies,” saidKen Stephens, Xerox Senior Vice-President of cloud services.“Airlines can now leapfrog to thecloud to expedite theircommunications and do so at costsmuch lower than maintainingexisting mainframe systems.”

Stephens mentioned: “Airlineshave long depended upon legacycommunications systems to transportinformation. However, the skies areprojected to become busier asconventional, low-cost and regionalcarriers all increase in numbers. Tomanage that growth, the aviationindustry as a whole hopes toadvance the way key information isapportioned.

4

ZNB.

INDI

A.CO

M

EBAC

E.AE

RO

REVIVING THE MAHARAJA p29


Editor-in-ChiefK SRINIVASAN

Managing EditorTIRTHANKAR GHOSH

Group Consulting EditorR KRISHNAN

Consulting EditorNANDU MANJESHWAR

Assistant EditorJUSTIN C MURIK , NIDHI SHARMA

Copy EditorASHOK KUMAR

Senior Sub-Editor-cum-ReporterPUNIT MISHRASenior Designer RUCHI SINHA

DesignMODASSAR NEHAL, MOHIT KANSALNAGENDER DUBEY

Picture EditorPRADEEP CHANDRA

Photo EditorHC TIWARI

PhotographerHEMANT RAWAT——————————

Director (Admin & Corporate Affairs)RAJIV SINGH

Director (Marketing)RAKESH GERA

Senior Manager (Sales & Marketing)PRAVEEN SHARMA

Manager (PR)ASHUTOSH MISHRA

Sr. Executive (Coordination)ALKA GOSWAMI

SubscriptionASHNA PANDIT, ANJALI ALEX,CHARU SHARMA (9650433044)

Executive DirectorRENU MITTAL

For advertising and sales enquiries, please contact:+91-9810030533, 9810159332

EEddiittoorriiaall && MMaarrkkeettiinngg ooffffiiccee::Newsline Publications Pvt. Ltd., D-11 Basement, Nizamuddin (East), New Delhi -110 013, Tel: +91-11-41033381-82All information in CRUISING HEIGHTS is derived from sourceswe consider reliable. It is passed on to our readers without anyresponsibility on our part. Opinions/views expressed by thirdparties in abstract or in interviews are not necessarily shared byus. Material appearing in the magazine cannot be reproduced inwhole or in part(s) without prior permission. The publisherassumes no responsibility for material lost or damaged intransit. The publisher reserves the right to refuse, withdraw orotherwise deal with all advertisements without explanation. Alladvertisements must comply with the Indian AdvertisementsCode. The publisher will not be liable for any loss caused byany delay in publication, error or failure of advertisement toappear. Owned and published by K Srinivasan 4C Pocket-IV,Mayur Vihar Phase- I, Delhi-91 and printed by him at NutechPhotolithographers, B-240, Okhla Industrial Area, Phase- I,New Delhi-110020.

CRUISING HEIGHTS

CHOPPERS p47After a spate of chopper accidents, Air Marshal(Retd) Rajkumar reels out some shocking statisticslike none of the government-owned helipads beinglisenced by the Directorate General of Civil Aviation(DGCA). Only nine helipads operated by privatesector are licensed.

NET EXPRESS p41For gadget-happy Indians, smartphones and tabletsare becoming necessary accessories and taking thetravel experience to a new level. The youth is makingthe most of it: they are used in the planning processof trips as well as the actual travel for a variety ofpurposes.

Volume VII No 2

contentsARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGSPROFILES NEWS DIGEST

CRUISING HEIGHTSwww.cruisingheights.in JUNE 2012 I `90

NO ONE IS SERIOUS ABOUT AIR INDIA: AN ANGUISHED FORMER AIR INDIAN

� JAL Dreamlinerwoos Indian fliers

� Only 9 helipadsDGCA-licensed

� Chartered air cargoin take-off mode

Clear-airTurbulence

Just when a beleaguered Air India was raising its head, pilots struck work putting all chances of the national

carrier’s revival in jeopardy

Plus

A Swiss

trainer for

the Air

Force Pg 51

Cover Design: Ruchi SinhaCover Photo: Khaja Imaduddin Alipicasaweb.google.com

CARGO p58The South is rising. In these times of economicdistress, Air China Cargo and China Airlines'freighters have added new routes connectingChennai. These highlight the growing importanceof South India as an emerging market and cargohub that is developing by leaps and bound.

INTERVIEW p26The Dreamliner will beintroduced for the first time inIndia. For Yasushi Isomura,Country Manager, JapanAirlines, the introduction of theDreamliner reiterates thecarrier's commitment to theIndian market and alsoindicates the importance ofthis market.

AIR FORCE p51The government’s decision toinduct 75 Swiss-made trainerjets in the Indian Air Forcecomes as a grim reminder ofa serious question in defencepreparedness. How does Indiaproduce various state-of-the-art ballistic missiles andnuclear weapons, but fails toproduce a basic trainer aircraftfor its rookie combat fliers?

The total number of pages in this issue: 72+4

HEMA

NTRA

WAT

HEMA

NTRA

WAT

PILA

TUS

ARAB

IANS

UPPL

YCHA

IN.C

OM

8

PERISCOPE

The story No show (May, 2012)was interesting to read. It isheartening to know that India isworking on developing its own90-seater civilian aircraft withthe Council for Scientific andIndustrial Research (CSIR). Ihope that National Civil Aircraft(NCA-90) will give the much-needed fillip to the ailing civil

aviation scene in India. Dr Sudeep Kumar, Head ofCSIR’s Planning and Performance Division, was rightlyquoted, “It is a niche technology. India has its desiredexpertise through NAL to develop its very own nationalcivilian aircraft.”

Kumar Ranjan, Patna

I enjoyed reading the cover story (Fear of flying,May 2012). I think Business Aviation holds a greatpotential for India as the story mentioned. In thisscenario, India can well emerge as a leader as thecountry’s economic progress has fuelled the growthof General Aviation (GA). As a matter of fact, busi-ness jets are no longer seen as a luxury as they are indemand for chartered business, tourism and medicalpurposes.

Ram Krishnan, Surat

As a regular aviation watcher, I was amazed to read theextract, When Tatas had to say goodbye (May, 2012) andits revelations. First of all, I must congratulate MK Kawfor daring to write such a controversial book tearingapart the officialdom of the then Civil Aviation MinisterCM Ibrahim and his cronyism. In his book, An OutsiderEverywhere — Revelations by an Insider, he has rightlywritten, “The history of civil aviation in this countrywould have taken a different trajectory, if Tata-SIA hadbeen allowed to float an airline.”

Tejindar Sapra, Ludhiana

I have recently received three copies of CruisingHeights. I am impressed with the coverage, design andpresentation of the magazines. Very high quality indeed.

Air Marshal Rajkumar (Retd), Bengaluru

All correspondence may be addressed toEditor, Cruising Heights, D-11 Basement, Nizamuddin (East),New Delhi -13, OR mail to [email protected].

LETTERS TO EDITOR


Prestige issue“It’s been a David versus Goliathstory. Once we Gulf carriers) weresmall fry, but we are becoming theGoliaths.”QATAR AAIRWAYS CCEO AAKBAR AAL BBAKER onEuropean airlines’ claims that Gulf carriersunfairly grab market share.

Optimism unlimited “Reviving Air India would not be aneasy task but is not impossible andthat is why the government hasoffered all support.” AMRIT PPANDURANGI, SSENIOR DDIRECTOR AATDELOITTE TTOUCHE TTOHMATSU on therevival plans of Air India.

Befitting honour “The AAI is one of the very key organi-sations of the country and has beenplaying a vital role in providing efficientair transportation. AAI's contributionshave helped in increasing the potentialof our country.” CIVIL AAVIATION MMINISTER AAJIT SSINGH onAirports Authority of India's consistent perform-ance over the years.

Blurred vision“India lacks critical mass of aircraft.The Indian fleet is not too old, there-fore depending entirely on domesticrequirement is not an option for anMRO.” S RRAVINARAYANAN, CCEO, AAXIS AAEROSPACEon the feasibility of MROs in India.

Bold generalisation “The queen of the skies (Boeing747-8 Intercontinental) is the result ofgreat teamwork, of two great compa-nies working together.”LUFTHANSA CCHIEF OOFFICER CCARSTENSPOHR on the induction of Boeing 747-8Intercontinental into the Lufthansa’s fleet.

Chaotic plans “The government is looking at the issueof recent hike in airfares (on account ofhike in various charges) at the New DelhiInternational Airport. The matter hasbeen taken up with the Prime Minister'sOffice and Civil Aviation Ministry.” MINISTER OOF SSTATE FFOR TTOURISM SSULTANAHMED on the recent hike in Delhi airport charges.

“

9

COLD STATS


Braving the odds“I am determined to see theEmirates secure further landingrights in Germany, regardless ofopposition from domestic carrierLufthansa.”SIR MMAURICE FFLANAGAN, EEXECUTIVE VVICECHAIRMAN, Emirates Airline on the airline'slanding rights in Germany.

Sporting spirit“I am actually somewhat different frommy counterparts around Europe. I haveno problem with what Middle East carri-ers are doing.”WILLIE WWALSH, CCHIEF EEXECUTIVE,INTERNATIONAL AAIRLINES GGROUP, in his bid towoo Middle East carrier to join an alliance.

LOOKING GLASS

Unveiled: World’s best airports Skytrax, the UK-based air travel consultancy, recently unveiled the bestairports in the world in the annual World Airport Awards. Various factorswere taken into consideration, including ease of access (getting to andfrom the airport), terminal design and comfortableness, seating facilities,cleanliness, staff attitude, and customer perception of airport security andsafety standards to assess the airports’ ranking.

South Korea’s Incheon Airport was once again named the world’sbest, taking the top award for the second time after 2009. “Lookingacross the entire survey, Incheon International Airport achieved top fivefinishes in eight out of ten eligible categories, which is a remarkablevote of confidence by airline travellers in standards being delivered atIncheon International Airport,” said Edward Plaisted, Chairman ofSkyTrax.

Singapore’s Changi Airport was named the second best airport with

Hong Kong International Airport bagging the third position. Four of thetop five best airports were from Asia — Seoul, Singapore, Hong Kongand Beijing — while only three European airports — Amsterdam,Munich and Zurich — made it into the top ten. The world’s top 10 best airports were:

Incheon International Airport Singapore Changi Airport Hong Kong International Airport Amsterdam Schiphol Airport Beijing Capital International Airport Munich AirportZurich Airport Kuala Lumpur International AirportVancouver International AirportCentral Japan International Airport

”XYZ Airlines

But we thought we were flying low-cost!!

Welcome! I see you have cash to pay for Airportcharges, Checked baggage, Duplicate e-ticket,

Overweight baggage, Extra leg room, ‘Fat tax’ foroverweight passengers…


TRAFFIC DATA

January-April 2012 witnessed agrowth of 7.15 per cent in thenumber of passengers carried bydomestic carriers. The figure was203.6 lakh against 190.02 lakh duringthe corresponding period of theprevious year.

The domestic carrier that heldthe top position in the marketwas IndiGo with 23.8 percent. Jet Airways was nextwith 21.4 per cent. However, ifJet Airways’ figure wascoupled with JetLite’s 6.8 percent, it was the leaderwith 28.2 per cent. Theother carriers’ figureswere: SpiceJet (17.7 percent), Air India -Domestic (17.6 per cent), GoAir(7.3 per cent) and Kingfisher(5.4 per cent).

The passenger load factor in themonth of April 2012 increaseddue to the beginning of the peakseason, according to the figuresreleased by the Director Generalof Civil Aviation. IndiGo led thecarriers with a seat factor of 82per cent in April (it was 76.5 percent in March), GoAir’s was at80.8 per cent (80.2 per cent inMarch), SpiceJet’s was 80 per cent(March: 73 per cent), Kingfisher77 per cent (March: 69.5 per cent),JetLite 76.8 per cent (March: 74.1per cent), Jet Airways 77.3 percent (March: 75.8 per cent) andAir India 70.5 per cent (March:68.9 per cent).

The number of passengercomplaints recorded byscheduled domestic airlines inApril 2012 was 890. Thenumber of passenger-relatedcomplaints was 1.8 per 10,000passengers carried. GoAir hadthree complaints per 10,000passengers while IndiGo had 2,Air India (Domestic) and JetAirways both had 1.6, SpiceJetand JetLite had 1.5 andKingfisher had 1.1.

IndiGo led the airlines in theoverall on-time performance ofairlines in April 2012 at sixmetro airports — Delhi,Mumbai, Chennai, Kolkata,Bengaluru and Hyderabad —

with 86.8 per cent. The otherairlines that followed were: JetAirways and JetLite 86.5 percent, GoAir 86.4 per cent,Kingfisher 81.2 per cent,SpiceJet 80.7 per cent and AirIndia (Domestic) 79.7 per cent.

IndiGo’s on-time performanceat Bengaluru was 92.1 per cent.The carrier’s performance atDelhi was 90.1 per cent,Hyderabad (87.9 per cent),Chennai (87 per cent), Kolkata(82.3 per cent) and Mumbai(80.8 per cent).

Jet Airways and JetLite’s on-time performance at Chennaiwas 97.8 per cent. The twocarriers’ landings and take-offswere: Kolkata (82.3 per cent),Hyderabad (94.2 per cent), andBengaluru (87 per cent). Thecarrier’s performance was atDelhi (90.1 per cent), andMumbai (80.8 per cent).

GoAir flies to only four of thesix metro airports. The carrier’son-time performance atKolkata was the highestat 95.6 per cent. In the otherthree metros, it was: Delhi (91per cent), Mumbai (81.1 percent), and Bengaluru (79.6 percent).

Kingfisher also flew to fourmetros. Its on-time performanceat Chennai was 87.3 per centfollowed by Bengaluru (84.6 percent), Delhi (79.8 per cent) andMumbai (79.6 per cent).

SpiceJet’s on-time performanceat Kolkata was 89.5 per cent.The carrier’s performance atHyderabad was 88 per cent,Delhi (85.3 per cent),Bengaluru (83.5 per cent),Mumbai (73.6 per cent) andChennai (65.7 per cent).

Air India’s on-time performanceat Kolkata was 85 per cent. Thecarrier’s landings and take-offsat the other metros were:Hyderabad (84.7 per cent),Bengaluru (82.6 per cent),Chennai (81.2 per cent, Delhi(79.7 per cent) and Mumbai(73.9 per cent).

According to the data receivedby the DGCA, the overallcancellation rate of flights inApril 2012 was 1.5 per cent.Leading the carriers was AirIndia — Domestic (5.2 per cent)followed by Kingfisher (3.3 percent), Jet Airways (0.6 percent), JetLite (0.5 per cent),SpiceJet (0.4 per cent) andGoAir and IndiGo (0.1 percent).

The reasons for thecancellations: Miscellaneous36.3 per cent, Technical 24.1 percent, Operational 20.7 per cent,Weather 11.7 per cent andCommercial 7.1 per cent.

APRIL SAWBETTER TIMESONCE AGAIN

11

1.1

1.5

1.5

1.6

1.6

2

3

Kingfisher

JetLite

SpiceJet

Jet Airways

Air India (dom)

IndiGo

GoAir

0 0.5 1 1.5 2 2.5 3 3.5

No. of Complaints/10,000 Pax

190.02

46.71

203.6

50.91

YoY MoM0

50

100

150

200

250Pax Carried (in Lakhs)

2011 2012

Growth - YoY (+ 7.15%)- MoM (+8.99%)

p

0.1

0.1

0.4

0.5

0.6

3.3

5.2

IndiGo

GoAir

SpiceJet

JetLite

Jet Airways

Kingfisher

Air India (Dom)

0 1 2 3 4 5 6

Cancellation Rate (%)

Consec/Misc36.3%

Technical24.1%

Operational20.7%

W eather11.7%

Commercial7.1%

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Year over Year

0

10

20

30

40

-10

-20

-30

-40

% C

han

ge

ove

r M

on

th

Capacity (ASKM) Demand (RPKM)


PASSENGERS CARRIED BY SCHEDULED DOMESTICAIRLINES

PASSENGER COMPLAINTS OF SCHEDULED DOMES-TIC AIRLINES

REASONS FOR CANCELLATION

Passengers carried by domestic airlines during Jan-Apr 2012 were 203.6 lakh as against190.02 lakh during the corresponding period ofprevious year thereby registering a growth of + 7.15 per cent.

68.9

75.8 74.169.5

7380.2

76.570.5

77.3 76.8 7780 80.8 82

Air IndiaJet Airways

JetLiteKingfisher

SpiceJetGoAir

IndiGo0

20

40

60

80

100

Sea

t F

acto

r (%

)

Mar 12 Apr 12

PASSENGER LOAD FACTOR OF SCHEDULED DOMES-TIC AIRLINES

CAPACITY VS DEMAND

• Over Cancelletion Rate in April 2012—1.5 per cent

CANCELLATION DATA OF SCHEDULED DOMESTICAIRLINES

On time performance (otp)

The passenger load factor in the month of Apr 2012 has increased due to beginning of peakseason.

Misc 1.2%

Ramp 1.2%Pax 1.5%

W x 2.6%

ATC 4.0%

Tech 4.1%

Airport 4.7%

Ops 13.6%

Reactionary 67.1%

REASONS FOR DELAY• Total number of complaints (Apr 2012) — 890• Number of passenger-related complaints — 1.8 per 10,000 passengers carried

Air India (Dom)17.6%

Jet Airways21.4%

JetLite6.8%

Kingfisher 5.4%

SpiceJet17.7%

GoAir7.3%

IndiGo23.8%

Jet Airways + JetLite = 28.2%

MARKET SHARE OF SCHEDULED DOMESTIC AIRLINES

OTP AT SIX METRO AIRPORTS

79.786.5

81.2 80.786.4 86.8

Air India (Dom)

Jet Airways+JetLite

KingfisherSpiceJet

GoAir IndiGo0

20

40

60

80

100

OT

P (

%)

NEWS DIGEST

�Fifteen years ago an event tookplace which would forever change

the landscape of commercial aviation.Five forward-looking and like-mindedCEOs took the bold decision to createthe first-ever multilateral airlinealliance: the Star Alliance network.Founding carriers Air Canada,

Lufthansa, Scandinavian Airlines, Thaiand United all realised that with grow-ing globalisation, the need for moreinternational travel to a wider range ofdestinations would become increasinglyimportant. As no airline on its ownwould be able to achieve this, thesefive airlines established the Star

�Will Qatar Airways be theMiddle Eastern carrier that

will join an alliance? Perhaps, itwill be the firstone if whatCEO Akbar AlBaker saidrecently is to bebelieved. “Co-operating with

airlines and feeding traffic intoeach other's networks is alwaysbeneficial. We haven't beeninvited by anybody and if we areinvited, yes, we would consider itin a positive way,” said Al Baker.

He was obviously reacting toInternational Airlines Group(IAG) CEO Willie Walsh whosaid that he would be “amazed”if one of the Gulf carriers didnot join a global airline alliancein 2012. Walsh also said that “itwould be a healthy develop-ment” and “we have certainlydiscussed Gulf airline member-ship in oneworld at greatlength”.

Indeed, Walsh has been agreat defender of the Mid-Eastcarriers but he felt that competi-tion among themselves wouldnot support the three MiddleEastern majors and made thepitch for at least one of them tojoin an alliance like BA'soneworld. “I personally believethe industry has matured to apoint where we'll see MiddleEast carriers joining thealliances this year. I'd be amazedif this doesn't happen. Withinoneworld we have been debatingit. To my mind they are the keyplayers.”

Incidentally, Emirates, thelargest of the region's carriers,said that it was unwilling to joinan alliance since it wanted tofocus on keeping a uniformbrand across its own huge net-work even as Air France-KLMsaid that it was talking about apartnership with Etihad.

�SkyTeam has launched itsnew Go Russia pass offering

greater flexibility and cost savingson flights operated by Aeroflotwithin Russia. The pass is the lat-est in a series of Go Passes devel-oped by SkyTeam to provideglobal customers with economicaltravel to suit their needs whetherflying for business or leisure. TheGo Russia pass is available to passengerstraveling on flights originating outsideRussia with any of SkyTeam’s 15 mem-ber airlines or on a Go Round the Worldticket.

Aeroflot — Russia’s flag carrier anda SkyTeam member since 2006 — oper-ates an extensive network of domesticflights and more than 30 destinations areincluded from its hub at Moscow’sSheremetyevo Airport as part of the GoRussia pass. These include the famousfinancial, industrial and tourism centresof St Petersburg, the major energy pro-ducing regions of Surgut and Tyumen andthe industrial cities of Nizhny Novgorodand Vladivostok.

Customers purchasing a Go Russiapass can opt from a minimum of three toa maximum of 16 flight coupons. Fares

are calculated based on the number ofmiles flown non-stop, offering discountsof up to 20 per cent off standard fares,depending on the itinerary. Coupons haveno minimum stay, open-jaw itinerariesare permitted and passengers can stop ineach city multiple times — giving themcomplete flexibility to plan their trips.The Go Russia pass began selling fromMay 2.

SkyTeam members serving thealliance’s hub at Moscow’sSheremetyevo Airport include AirFrance, Alitalia, Czech Airlines, ChinaEastern, China Southern, Delta AirLines, KLM and Korean Air. Aeroflotoperates flights from Moscow to majorcities throughout Europe, Asia, theGreater China region, North America,Africa and the Middle East.

Star is a sprightly teen!

Qatar inoneworld?

SkyTeam launches Go Russia pass



Alliance network with the aim of becom-ing the “Leading global airline alliancefor the high value international traveller”.

In 15 years the Alliance has grownfrom five airlines offering a combinedtotal of 6,000 daily flights to 578 airportsin 106 countries to a network of 25 air-lines carrying more than 600 million pas-sengers on 20,500 daily flights to 1,293airports in 190 countries. To paraphrasethe CEO of one of the member carriers:“If Star Alliance doesn’tfly there, you probablydon’t want to go.”

In a formal communi-cation to the flying publicand his colleagues, former UnitedAirlines Senior VP and current StarAlliance CEO Mark Schwab said:“Having grown from just five airlines in1997, we couldn’t be more proud to nowoffer our services across more memberairlines than any other network in theworld. On behalf of all its member air-lines, I’d like to extend a big thank youfor your custom and alliance loyalty.You’ve earned it... In order to reward allour frequent travellers for their loyalty,all Star Alliance member carrier FFPs(frequent flier programmes) are offering

their most active frequent travellers abonus of 15,000 miles/points. This willbe awarded to the 15 FFP members regis-tered in each programme who travel onthe most Star Alliance airlines betweennow and November 14. For exact details,please refer to the individual FFPs via thefollowing link:www.staralliance.com/en/benefits/fre-quent-flyer/.

Star Alliance is also rewarding cus-tomers with a selection of“once in a lifetime” trips.In a web-based competi-tion, participants have tofind an aircraft, which is

hidden somewhere on the Star Alliancenetwork. The lucky winner and 14friends can jet off to one of 27 global fes-tivals. Further prizes include a BusinessClass Round the World ticket for two and15 further round-trip air tickets to enjoyone of the 27 global festivals on offer.

As part of a special promotion, theStar Alliance network has offered a 15per cent discount on the Round the World(RTW) fares in Economy Class. Allapplicable taxes, fees and surcharges willnot be discounted. Full details are avail-able at www.staralliance.com

�oneworld has announced thatNew York-based full-service

advertising agencyDentsu America willbe its global agency ofrecord. The win comesafter a multi-agency pitch that washeld in New York in February.Under the new partnership, Dentsu

America will be responsible foroneworld’s strategic brand messag-ing and creative development aswell as media planning dutiesworldwide.The company is all set tolaunch integrated communicationactivities later in the year whichinclude multi-channel brand and

marketing initiativesadapted across multi-ple languages and cul-tures to reflect the 800

destinations in 150 countries servedby oneworld member airlinesaround the globe.

�In business class, you are allowedfour bags and a walking stick —

plus another bag if you have a child! Malaysia

Airlines has indi-cated that itsplans to join theoneworld airline alliance are firmly ontrack. MAS also highlighted that itsflights had been added to the oneworld

round-the-world fare and that it isadding codeshare partnerships withoneworld members Cathay Pacific and

Royal Jordanian. Butthere is no news aboutMalaysia Airlines’planning for a closer

partnership with Qantas, the airlinesponsoring MAS into the oneworldalliance.

Malaysia Airlines set tojoin oneworld

Dentsu Americawins oneworldaccount


NEWS DIGEST

Back inthe airPALESTINIANAIRLINES IS BACKIN THE NEWS.GROUNDED FORSEVEN YEARS, THETINY AIRLINE WITHONLY TWO 48-SEATTURBOPROPPLANES AND TWOWEEKLY FLIGHTSHAS STARTEDFLYING FROM ITSBORROWED HUB INCAIRO FROM MAY9. THE FLIGHTSBETWEEN EL-ARISHAND MARKAAIRBASE IN THEJORDANIANCAPITAL OF AMMANHAS HELPEDGAZANS, WHO DONOT HAVE TOTRAVEL 350 KM TOTHE EGYPTIANCAPITAL TO BOARDPLANES.THE STORY OF THE15-YEAR-OLDAIRLINE BEGAN INTHE LATE 1990SWHEN IT LOOKEDLIKE THEPALESTINIANSWERE ON THEVERGE OF ASTATEHOOD DEALWITH ISRAEL. ATTHAT TIME, ITOPERATED FROMGAZAAIRPORT.

Qatar's Middle East expansionQatar Airways is preparing for its 2012Middle East route expansion with Iraqbeing added to the airline’s growing

network.The northern Iraqi city of Erbil and capital Baghdadwill join the airline’s international portfolio of routes over aperiod of two weeks. The addition of Iraq marks yet another

move by the Doha-based airline to venture into highdemand, underserved markets. With the launch oftwo routes in Iraq in the space of just two weeks,Qatar Airways will take its new start-ups in 2012to six destinations, with a further seven routesplanned by the end of the year. Qatar AirwaysChief Executive Officer Akbar Al Baker said

Iraq had long been under the microscope bythe company’s planning team. “We

constantly evaluate numerous routeopportunities and taking into

consideration a number offactors, we feel that now isthe opportunity to ventureinto this market. Withinternational corporatehouses looking to dobusiness in Iraq, frequent airaccess will ease travel toand from the country via ourDoha hub,” said Al Baker.

There is aslug fest onfare inAustraliaand theicing on thecake is that it extendsnot just to moneysaved, but to who isgoing to entertainpassengers better. BothQantas and VirginAustralia are steppingup their efforts to boosttheir in-flighttechnology.

As Australia’s twolargest airlines headtowards an all-out pricewar on domestic routes,they have been doingtheir best to ensurethey will be able tooffer more than just anin-flight entertainmentsystem, especially forthose passengers sittingin business-classcabins. Virgin after around of exhaustivetrials has decided tooffer Samsung tabletdevices, which will bepre-loaded withmovies, TV and audioprogrammes, tobusiness passengers bythe end of June. It willalso be available toeconomy passengersfor a fee.

Meanwhile, Qantashas been handing outiPads to passengers,including those ineconomy, aboard one ofits Boeing 767-300aircraft since Januaryon a trial basis. It givesthem access to morethan 200 hours ofentertainment but notan internet connection.Qantas is still decidingwhether to make iPadsavailable on its widerdomestic fleet.

Clark on the Triple 7Emirates President Tim Clarke told Reuters TV: “The 777 andits derivative is of great interest to us because we started takingthe 777-300ERs in 2005 and they will start retiring in a 12year period.”

His comments came even as Boeing is considering arelook of its 777 with new wings and new engines that willbe ready for service by the end of the decade. According toClark, Boeing was “nearly there” in getting the revampright. “We’ve been working with them for quite a long timeand are a little bit exasperated by the time its taking,” hesaid.

“My view is that a significant number of carriers willsign up for this airplane. I believe the demand is there.Anybody who has a 777 today of size of ER will be auto-matically interested in its derivative,” said Clarke. But therewas a note of caution: “Well, I’m just saying we are watch-ing it very closely. We don’t want to get caught in the sameway as the 787s ... we can’t afford a three-year delay onthis,” he told the TV interviewer.”

Entertaining slugfest!

Akbar al Baker

CRUISING HEIGHTS June 2012 15

It was as if there was a huge stack offlights waiting to land. No, there was noair traffic glitch and there was nocongestion on the ground, it was justthat paper plane flyers from Lebanon,Czech Republic, Poland, Turkey and theUnited States were crowned worldchampions in Salzburg, Austria afterdefeating rivals from over 80 countriesin the first week of May.

Elie Chemaly from Lebanonachieved the longest flight time with10.68 seconds— the organisers of theRed Bull Paper Wings Worldtournament said in a statement.Chemaly, a student of Electro-Mechanical Engineering at SaintJoseph University in Lebanon, toppedcompetitors from 82 differentcountries. Chemaly had won the localcompetition, held at the Rafic HaririAirport, where he scored 9.90 seconds.Czech Tomas Beck won the longestdistance category at the finals with a50.37-metre (165.25-foot) throw. Butthis was far from the current worldrecords of 63.19 metres for distanceand 27.9 seconds for airborne time. For the aerobatics category, in whichthe construction, art and design as wellas flight performance of the paperplane are taken into account,two pilots received the topmarks of 50 points. US pilotRyan Naccarato and TomaszChodryra from Poland wereawarded maximum points inthe category by a jury led byAustrian Olympic ski jumpingstar Thomas Morgenstern.

Victory in the TeamEvent went to the highflyers from Team Turkey,whose three-teammembers finished in the topten in its respectivecategories. In all, 249 paperplane enthusiasts from 83countries took part in the two-day event, selected from among35,000 participants in some 600qualification rounds worldwide.Regulations required that theplanes be made out of a single A4sheet of paper using no tools—suchas scissors or glue—except in theaerobatics category.

Flyingpapermasterpieces

REDBULLPAPERWINGS.COM


NEWS DIGEST

Losingmoney —heavily

InternationalConsolidatedAirlines IAGswung to a net lossof €146 million($189 million) inthe quarter to end-March comparedwith a net profit of€33 million a yearearlier. “The rise inunit revenues hasnot been enough tooffset the risingfuel price,” IAGChief ExecutiveWillie Walsh saidin response to theannouncement. IAGowns BritishAirways and Iberia.

IAG's lossunderlines the esca-lating crisis amongEurope's flag carri-ers as stubbornlyhigh fuel priceshave left the sectormired in red inkdespite a reboundin passenger trafficas more efficientbudget carriers takemarket share onshort-haul routesand expandingMiddle East airlinesgrab an increasingshare of the long-haul market.

IAG's perform-ance was similar topoor first-quartershowings byLufthansa and Air France that also reported disappointing firstquarter earningswith net losses of€397 million and€368 million,respectively.

ISRAEL’S NATIONALCARRIER—EL AL—HASAPOLOGISED TOPRESIDENT SHIMONPERES AFTERATTEMPTING TOCHARGE HIM NEARLY$5,000 TO BRING ANOXYGEN TANK ON ANOFFICIAL TRIP TOCANADA. IN INDIA,OFFICIALS WOULDHAVE BEENSUSPENDED ANDCARGESHEETED FORTHE SUPPOSEDOUTRAGE, BUT PERESBRUSHED IT ASIDEAND COOLLY TOOK AIRCANADA INSTEAD FORAN OFFICIAL VISIT TOTHAT COUNTRY.ACCORDING TOPROTOCOL, AN OXYGENTANK AND OTHERMEDICAL EQUIPMENTIS MANDATORYWHENEVER AN ISRAELIPRESIDENT OR PRIMEMINISTER FLIESABROAD. AN EL ALSPOKESWOMAN LATERSAID THAT THE AIRLINEHAD SENT THE 88-YEAR-OLD PRESIDENTAN APOLOGY. BY THEN,PERES HAD ALREADYBOOKED HIS TRIP WITHAIR CANADA. PERESSAVED SOME MONEYFOR ISRAEL AS AIRCANADA DID NOTCHARGE PERES ANYFEE FOR THE OXYGENTANK.

Bombardier Q400 boomsBombardier Aerospace’s Q400 NextGen aircraft kicked off thefourth leg of its world tour in Russia and the Commonwealth ofIndependent States (CIS). Following successful demonstrationflights and static displays in Tblisi, Georgia and Saratov, Russia,the Q400 NextGen airliner — painted in its special “Get More”livery — is on its way to other regions of Russia. Russiancarriers have been utilising regional jet and turboprop aircraftproduced by Bombardier to access secondary or tertiary marketssince 2003 when the Dash 8 aircraft became the first Western-built regional aircraft to obtain Russian certification andregistration. Final certification for the 50-seat BombardierCRJ100/200 aircraft was obtained in 2006. Since then, there hasbeen a significant increase in the number of Dash 8/Q-Seriesand CRJ100/200 aircraft operated by Russian and CIS airlineslocated in Belarus, Georgia, Armenia and Kazakhstan.

Thai turbulenceThai Airways has sacked itsPresident because ofdisagreements over strategy.

Piyasvasti Amranand, a former energy minister, becamePresident in October 2009 when the opposition Democratparty was in power. In the last three years, he haslaunched cost-cutting measures, including salary

reduction. Thai Airways is 51 per centowned by the government. ChokchaiPanyayong, Vice-President in charge ofStrategy and Business Development, hasbeen appointed acting President. Theairline’s Chairman, Ampon Kittiampon,told reporters: “The board has agreed toterminate the President’s contract

because he cannot work in unity with the strategycommittee.” Jamsri Sukchotirat, Chairwoman of theairline’s union, told Reuters that she would ask the boardfor an explanation. “The board has to clarify the decisionbecause he met key performance targets, the airline’soperations have improved and he has no problem workingwith employees,” Jamsri said.

Peresdumps El Al for Air Canada

EGLO

BALT

RAVE

LMED

IA.C

OM.A

U

Shimon Peres

Piyasvasti Amranand

10%Qantas has slashedmore than 500 jobs,

hinting further joblosses are on thecards as the air-line attempts tocut costs andsave $100 mil-lion a year. CEOAlan Joyce said:“A decision like thisis never easy. I know therewill be disappointmentamong those workersdirectly affected, their fam-

ilies and their colleagues.We have sought to min-

imise the impact onour people, while

delivering thebest result forQantas. Ourcost base in

heavy mainte-nance is 30 per

cent higher than thatof our competitors. We

must close this gap tosecure Qantas’ future via-bility and success.”

NEWS DIGEST

Just eight Chinese airlines and two Indian carriers failedto submit carbon emissions data before the March 31

deadline stipulated in the Emissions Trading Scheme (ETS).With more than 1,200 international carriers adhering to thedeadline, the revelation suggests efforts spearheaded byChina, India and Russia to oppose the carbon trading system are faltering. “We have given them until mid-June toreport back their data,” EU climate commissioner ConnieHedegaard has said. Though oppo-sition to the ETS remains wide-spread — with more than20 countries attending a“coalition of the unwill-ing” conference inMoscow last February— the scheme’s detractorsappear to have been swayed by EU threats of punitive measures for non-compliance.

500The Middle East Business Aviation Association andFairs & Exhibitions are confident that the exhibition —

MEBA —will be 10 per cent bigger than the last one in 2010.This year, the event is being heldfor the first time at the city’s newDubai World Central airport. The2012 show will be held in the

DWC passenger terminal — currently unused, as the airportis handling only freight traffic — but will move in 2014 to apurpose-built exhibition hall at DWC that will be open intime for the Dubai air show in November 2013.

8+2= 10

18

OUT

UP

Boeing aimed to boost the inter-national portion of its defence

sales to 30 per cent of its total sales to counter loomingPentagon cuts. “Our sights are set on that 30 per centmark,” said Chief Executive Jim McNerney at the start ofBoeing’s annual investor day.

100CRUISING HEIGHTS June 2012

CAPA expects Jet Airways could place a large narrowbody order for over 100 aircraft in FY2012/13 to

meet both replacement and growth requirements. The airlineis understood to be actively evaluating the A320neo and it isalso likely to lease up to 10 A330s to support the expansionof its European route network.

UP30%

ADDING UP THE NUMBERS

BIGGER

EC.EUROPA.EUBUSINESS.BLOGS.STARNEW

SONLINE.COM


NEWS DIGEST

One of the greatest miracles of thepresent aviation industry is thatKingfisher Airlines (KFA) is still

flying — from where to where we don’tknow and for how long also we don’tknow. The view that it should have shutshop like the stunted Paramount Airwayswhose fleet size never grew beyond fivehas been held by many. Notwithstandingthis, Vijay Mallya has thus far managed tokeep his airline at least on the tarmac andfly his confused passengers once in a whileto retain his precious licence. Perhaps, thebest explanation of this phenomenon wasgiven by Minister of Civil Aviation AjitSingh the other day in Parliament when hesaid the DGCA rules said that a scheduleddomestic operator needs at least five air-craft and that too flying in order to remainin business!

Mallya claims he has twenty birds thatoccasionally chirp and flit around toremind others including those in the deci-sion-making business that he is very muchin business while for all practical part he isout of airline business. Kingfisher Airlinesbarely managed to survive being a sub-sidiary of United Breweries (Holdings)Limited. But on May 9, 2012, Vijay Mallyaannounced that Kingfisher Airlines hadceased to be its subsidiary even as UBHoldings had a significant exposure of

`12,000 crore to KFA. Announcing the results for financial

year 2011-12, the UB Holdings net profitplunged sharply by over 83 per cent to`2.10 crore and KFA ceased to be a sub-sidiary on February 18, 2012 according tohis statement made in the second week ofMay 2012. The airline ceasing to be a sub-sidiary happened after KFA allotted sharesagainst optionally convertible debenturesto certain entities. It may be recalled thatUB (Holdings) had given significant guar-antees on behalf of its subsidiary and asso-ciate companies. At the end of March 31,2012, the total exposure of UB (Holdings)to KFA was `12,215 crore which wereunder various accounts including corporateguarantees to banks. These included invest-ment in equity/preference capital of`2118.48 crore, corporate guarantees tobanks/aircraft lessors at `8925.86 crore.Besides, it also included “advances at`1029.50 crore and other receivables of`141.09 crore”. In its filing, UB (Holdings)said certain corporate guarantees had beeninvoked and KFA was under negotiation inthis regard with the relevant beneficiaries.At the end of December 2011, UB(Holdings) stake in KFA stood at 40.1 percent which declines to 34.55 per cent onFebruary 18, 2012,s after an increase in air-craft equity base pursuant to issue of shares

AAI celebrates anniversaryOn the occasion of the 17th anniver-

sary of the Airports Authority of India

(AAI), a cultural evening with the

theme — “Indralok se Indraprastha

— A Runway Yatra”, was organised

recently at Delhi. During the function,

distribution of awards for the various

achievements by the regions and air-

ports also took place. Over 150

employees and their wards participat-

ed in different presentations.

Civil Aviation Minister Ajit Singh

was the chief guest. Personalities such

as filmmaker Muzaffar Ali, Femina

Miss India Earth 2011 Hasleen Kaur,

Olympian (Boxing) Vijender Singh and

Shatrughan Sinha, Member of

Parliament (Lok Sabha), were the

guests of honour.

GAGAN to be set up at all airports bynext yearFor improving traffic management

through timely information of

aircraft movement, integration of met

data and aeronautical information, the

GPS-aided Geo Augmented Navigation

system (GAGAN) would be installed

across all airports in the country by

June 2013. “It is a joint venture

between AAI and the Indian Space

Research Organisation (ISRO). Once

implemented, India would be the

fourth country in the world to have a

satellite-based navigation system after

the USA, Japan and the European

Consortium,” said V Somasundaram,

Member, Air Navigation Services, AAI.

ABOVE GROUND LEVEL ¨¨ Kingfisher still flies— and how?

Civil Aviation Minister Ajit Singh (secondfrom left) and AAI Chairman V P Agrawal(fifth from left) along with other luminaries during the AAI anniversary cel-ebrations.

GAGAN is all set to usher in smoothair traffic operations in Indian airports.

FROM OUR FILES: A file photo of Kingfisher Chief Vijay Mallya cheering after launching the Kingfisher airlines.


to some entities in lieuof certain convertiblebonds. As per BSE, UB(Holdings) stake inKFA came down fur-ther to 29.39 per centon April 14, 2012.Significantly the entireholding of UB(Holdings) is pledged.So much so that UB(Holdings) that starteddevelopment of luxuryresidential buildings —Kingfisher Towers —at UB city has evenentered into agreementto sell part of this project.

If this is the fate of the principal, onecan well imagine the fate of KFA whichwas till about four months ago its sub-sidiary. It is an interesting coincidence,which just before KFA lost its subsidy sta-tus with UB (Holdings), or a month before,the employees of the airline entered thephase of ‘all work no pay’. With promoterholdings dropping below 50 per cent psy-chological barrier, even whatever little bar-gaining position Mallya began to be erod-ed. Interestingly, while the promoters heldthe same number of shares, their holdingsbegan to decline because of the increase inKFA shares to meet some of the convertibleoptions (into equity) exercised by holdersof instrument. This even impacted bankswhich had converted a part of their loansinto equity in January 2011 following thedebt recast.

An interesting moment could arisewhen the government puts the FDI policyin place when foreign airlines will beallowed to invest in domestic Indian carri-ers. The convoluted share structure of KFAis such that it seems banks and financialinstitutions may be holding a substantialpart of the airline directly or indirectly. Sowhat will be the bargaining position ofMallya to negotiate a win-win deal for him-self assuming his lobbying for FDI by for-eign carriers is accepted and implemented?The banks took 23 per cent of KFA equityand still have over `7000 crore of debtunpaid. Can that be converted into equity?If it does happen, then it will be for the firsttime that we will have a hilarious spectacleof commercial banks, a majority from thepublic sector, trying to revive a faileddomestic airline. Will we see the SBIChairman negotiating with foreign airlinesfor a stake sale? If one goes by the BSE(Bombay Stock Exchange) value of KFAshares, the scrip value leading to KFA’smarket value will be at least 10 times lessthan what the banks have to recover fromthe carrier. Why would any foreign carrier

pay a huge premium to acquire KFA? Perhaps, it could turn out to be an even

bigger fiasco than what it was when KFAtook over Air Deccan and Jet took overSahara. In addition, KFA owes `60 crore tothe Central Board of Excise and Customs(CBEC) in unpaid service tax which has ledto off and on freezing of its bank accounts.Other than what it owes to Delhi andMumbai airports, KFA has to pay up `280crore for landing, parking, navigationcharges, etc. to state-owned AirportsAuthority of India (AAI). The CentralBoard of Direct Taxes (CBDT) also con-ducted an IT survey to find out the extent ofnon-disclosure of Tax Deducted at Source(TDS) by the airline. This, according to theMinister of State for Revenue, S SPalanimanickam was in the range of `352crore of which the airline managed to pay`100 crore. This was the money the airlineallegedly collected as TDS but failed todeposit with the IT authorities. KFA alsoowes huge amounts to oil companies forfuel it bought. Though it is virtually on acash-and-carry basis for its daily flight fuelrequirement, it indeed seems to be a mostmodern global marvel that he is still man-aging to fly his aircraft albeit occasionally.

With its international flights virtuallyscrapped after an on-and-off tussle withIATA and its International Clearing House,Mallya is now seeing only a very smallpart of his A320 fleet and ATRs flying. Afew months ago, KFA announced suspen-sion of many of its services and evenadvised its unpaid staff to stay home till itmanaged fresh funding. It is interesting tonote that precisely a year ago on June 11,2011, Executive Vice-President of KFA,Manoj Chako, announced that the airlinewould launch new flights on its domesticnetwork connecting major metros withTier-2 and 3 cities. He said its new expan-sion plan would allow the airline to pro-vide first direct flights between Mumbaiand Kolhapur, New Delhi and Pantnagarand Jabalpur and Indore. Besides it also

Itemiser DX trace detector certified forair cargo screening

The next-generation Itemiser DX

desktop explo-

sives trace

detection

(ETD) system by Morpho Detection,

the explosives and narcotics detec-

tion business of Morpho, Safran

group’s security unit, was recently cer-

tified for air cargo screening by the

UK Department for Transport (DfT).

This certification from the UK is an

important recognition of the Itemiser

DX’s ability to protect the air cargo

supply chain.

“Morpho Detection is very

pleased that DfT has approved our

next-generation trace detection solu-

tion for use at air cargo facilities

throughout the UK,” said Emmanuel

Mounier, President and CEO, Morpho

Detection International, Inc., the inter-

national sales and service division of

Morpho Detection. “Morpho

Detection is committed to providing

the most advanced solutions to help

air cargo facilities meet current and

emerging security challenges with

minimal impact on the flow of com-

merce.”

Gujarat readies to start air servicesIn tune with the central government’s

concept of promoting intra-state avia-

tion, the Gujarat government has

identified five circuits and 11 airstrips

across the state for offshore and

onshore services, and invited compa-

nies to start intra-state passenger and

cargo aviation services.

Earlier, Deccan Charters’ Captain

Gopinath had taken an initiative to

start intra-state service in Gujarat.

However, the plan had to be shelved

in the face of non-approval from the

Director General of Civil Aviation

(DGCA), the regulatory body for the

aviation sector in the country. Now.

the state government has come out

with a bidding process and a policy.

A recent government bid man-

dates that the aircraft for intra-state

ABOVE GROUND LEVEL ¨¨

MUMB

AIDI

OCES

E.CO

M

LOW ON BUSINESS: A deserted counter of Kingfisher airlines in one ofthe Indian airports.


NEWS DIGEST

introduced direct flight between Mumbaiand Trivandrum. He said the new flightswould be operated on the company’s low-cost carrier Kingfisher Red (erstwhile AirDeccan) the booking for which had beenopened. Six months from that date ofannouncement, November 2011, KFAbegan mass cancellation of flights andeven saw Vijay Mallya himself blasting themedia on November 13, 2011, for beingresponsible for the so-called mis- and dis-information about Kingfisher’s health.After two months, the staff, pilots andengineers began to complain about non-receipt of salaries leading to a strike and

flight cancellations. On hindsight, it seemsthe decision to scrap the subsidiary statusto KFA of UB (Holdings) could be the firststep to prevent the mess engulfing VijayMallya’s 28 per cent holding in UnitedSpirits Limited (USL). From 89 aircraftfour years ago, the KFA fleet shrunk to 66and today it is just about 20 or even less.Mallya also does not have any aircraft onorder and whatever he had ordered earlierfrom the mighty A380s to smaller ATRshave all been cancelled — either by him-self or due to default. Did anyone say thatthe Indian aviation industry is on an expan-sion mode?

should be nine to 19 seater. “A study

conducted by the state aviation

department found operations feasi-

ble. We also studied similar services

operational elsewhere, and are now

working on a strategy to ensure long-

term sustainability of the service,”

state Tourism and Aviation Principal

Secretary Vipul Mitra said.

Scanners to detect ‘human bombs’ Giving a major push to airport securi-

ty in the country, the Cabinet

Committee on Security will soon

discuss an ambitious proposal to

acquire highly sophisticated state-of-

the-art equipment at all major air-

ports for scanning and checking both

passengers and baggage, for “human

bombs”, where explosive devices are

surgically implanted in a human body.

The move has come in the wake

of a recent alert issued by the

Intelligence Bureau through the

Bureau of Civil Aviation Security that

Indian airports could be targeted by

human bombs, where the explosive

can be implanted in the human body.

It may not be very easy for security

agencies and metal detectors to trace

such explosive material.

Once the CCS clears the proposal

in principle, a committee of experts

will be constituted to shortlist the

kind of hi-tech equipment that is

most suitable for the Indian scenario.

Nagpur airport bags awardThe Civil Aviation Ministry recently

conferred a special AAI Chairman’s

award to Nagpur’s Dr Babasaheb

Ambedkar International Airport for

successful installation and commis-

sioning of a new Air Traffic Control

(ATC) automation system ‘Indra’. The

new system, developed by Indra

Systems of Spain, was installed under

the guidance of Airport Director

ABOVE GROUND LEVEL ¨¨

State-of-the-art scanners at Indian airports can go a long way in reducing terrorism.

CBC.

CA

Lucknow and Varanasi airportsmight get international tag in thenear future. The announcement

was made by Civil Aviation Minister AjitSingh who inaugurated the new terminalbuilding at Lucknow airport. The twoairports, which though have internationalflights operating from them, are currentlyCustoms airport. Ajit Singh said, “UP hasonly two Customs airports — at Lucknowand Varanasi — which would be giventhe status of international airports soon. InUP, which has 16.1 per cent population ofthe country, only two per cent of totalflights operate and only 2.5 per centpeople fly. This situation needs to be improved.”

UP Chief Minister Akhilesh Yadavassured all possible help and said, “Thestate would be connected withinternational destinations as well asother cities.” Yadav asked the CivilAviation Minister to consider theelevation of airports in Varanasi andKanpur also. He said that the stategovernment had already chalked out adetailed plan for development ofairports in the state. “The new terminalbuilding at Lucknow airport withenhanced passenger facilities willcertainly attract and promote thetourism and will create the newopportunities of employment in thestate,” he said.

Lucknow, Varanasi to gointernational

STALEMATE CONTINUES: A file photo of Kingfisher airlines’ staff shouting slogans during one thestrikes.


The Centre for Asia Pacific Aviation(CAPA)’s annual outlook for the fis-cal 2012-13, released recently stated

that Indian aviation was facing its mostuncertain phase in more than a decade.After reporting an estimated record loss ofjust over $2 billion in the year endedMarch 31, 2012, the country’s carrierswere facing “an equally challenging yearahead. Weak balance sheets, increasingcosts, regulatory uncertainty, a sluggishIndian economy and a difficult globalenvironment will continue to pile the pres-sure on airlines, especially the poorer performing carriers”.

With the country’s carriers addingaround 24 aircraft during the year includingeight Q400s by SpiceJet, CAPA has esti-mated that there will be 7-8 per centdomestic capacity growth in FY2012/13.At the same time, domestic passenger traf-fic is expected to grow by 8-10 per cent inFY12/13. However, a lot will depend onfuel prices and other input costs on airfares.

Commenting on the performance ofthe carriers, in the 12 months endingMarch 2013, it said that Air India wouldonce again be the worst performer in theindustry and report a loss of `70 billion($1.3 billion). Kingfisher Airlines is pro-jected to lose `12-14 billion ($220-260million). However, the remaining four pri-vate carriers combined could post a mod-est profit of approximately `11 billion($200 million).

CAPA has also pointed out that AirIndia could face a temporary shutdowndue to human resources issues. The mainhurdle that Air India has to overcomeemanates from the merger between AirIndia and Indian Airlines. “The integra-tion of human resources has been ineptlyhandled and almost willfully ignored,with nobody within the airline seniormanagement or at the level of the govern-ment having taken responsibility,” com-ments CAPA and goes on to mention that“this has been a constant source of tensionwithin employee ranks and after years ofneglect a committee was established in2011 under Justice Dharmadhikari to lookinto staff grievances. The committee sub-mitted its report to the Ministry of CivilAviation in early 2012. In the absence ofany strategy of its own to deal with theissues at hand, the government is left withvirtually no option but to implement thereport’s recommendations.”(See alsocover story, page 29)

Additiionally, CAPA has warned thatthe “outcomes (of the JusticeDharmadhikari report) will meet with amixed response from the unions and indus-trial action is likely”. It has also mentionedthat though the government has taken afirm stance, “limiting discussions with theunions”, it may take the step of bringingabout “a temporary shutdown of the air-line” in the next two to three months afterthe report is accepted by the Government.

Ashok Kumar Verma, who claimed

that it would increase efficiency,

reduce chances of mishaps and

human error and ensure complete

radar coverage.

The fact that the city is centrally

located and guides the movements

of over 650 aircraft that pass over

Nagpur-controlled airspace from

Europe, Middle East and Africa to

South East and East Asia and most of

the domestic traffic from North to

South and East to West, made it a

good choice for the system’s debut.

Advanced ATS automation system atTiruchi AirportAn advanced ATS Automation System

,developed by Indra Systems, has

been installed at Tiruchi airport for

enhancing air traffic management

and improving safety and efficiency.

The system facilitates automatic

exchange of flight information

between Tiruchi and adjacent Air

Traffic Control units, including

Chennai and Thiruvananthapuram

area control centres, besides improv-

ing air traffic management through

timely information on aircraft move-

ments and integrating meteorological

data and aeronautical information.

Flight data processing, situation

data display, flight data display, con-

trol and monitoring display; data

recording facility and database man-

agement constitute the key compo-

nents of the system that ensures inte-

grated traffic flow management

between different phases of flight

besides providing safety nets to

enhance air safety.

UK award for Sikkim airport projectBelfast-based geotechnical company

Maccaferri recently won the

‘International Project of the Year’ prize

at the Ground Engineering Awards for

the challenging work of constructing

reinforced soil walls and slopes at the

ABOVE GROUND LEVEL ¨¨Troubled times ahead: CAPA

An outside view of the terminal at Nagpurairport.

DAWN OF THE NEW ERA: Officials during the inaugaration of new integrated terminal building atLucknow airport.

24

NEWS DIGEST

The crash of Sukhoi Superjet 100 inIndonesia on May 9, 2012 came asthe bolt from the blue to those in

the flying profession and the airlineindustry as it left many questionsunanswered. The Superjet crashed duringan exhibition flight with 45 people onboard included 8 Russians, 35Indonesians, a Frenchman anda US national — all of themdied — and it has left a bigquestion mark on the efficiencyand performance of the aircraft.Apparently, Russia waspinning its hopes on the SukhoiSuperjet 100 becoming a majorplayer in the modern aviationmarket and improving itsimage in an industry that hasbeen marred by recurrentcrashes of Soviet-era jets.

The Superjet was in Indonesia as partof a promotional tour of six Asiancountries and was planning to stop in Laosand Vietnam before heading home. Thedemonstration flight in Indonesia was partof the plane’s first-ever promotional touraiming to build excitement about the planewith top test pilots in the cockpit.

According to the media reports, thepieces of wreckage found on the slopes ofMt. Salak in Indonesia left a strongimpression that the crash came from ahead-on collision rather than the planeswiping the mountain and crashing.“Indications of the failure of the aircraft’ssystems and components were notdiscovered,” United Aircraft, themanufacturer of the 90-seat plane, said ina statement. Though the investigations tofind out the real truth behind the crash arestill on, the enigma continues.

It is not the first time that the SukhoiSuperjet 100 plane has been caught onthe wrong foot. It has had a number ofminor mishaps while being flown byRussia’s Aeroflot. Aeroflot’s first SukhoiSuperjet spent several weeks groundedafter its delivery due to an airconditioning problem.

On the face of it, the Russian planemaker found buyers in Russia’s Aeroflotand Armenia’s Armavia. Its firstcommercial flight was operated byArmavia in April 2011 and Aeroflotfollowed later that year. Interestingly, untilthe latest incident, Indonesia was set tobecome one of Sukhoi’s largest clients forthe aircraft. In August last year,Indonesian regional carrier PT SkyAviation agreed to buy 12 of the planesand in 2010, Kartika airline of Indonesiaagreed to buy 30 Superjets. The airlinealso approached Indian buyers byparticipating in India Aviation 2012.“India is one of our priority markets. Wesee a good potential here,” Vladimir SPrisyazhnyuk, President, Sukhoi CivilAircraft Company (SCAC), had saidduring the India aviation meet. Thecompany had also signed a preliminaryagreement with India’s Aviotech Pvt Ltdfor sale of 10 aircraft.

The officials of the company thoughare quite optimistic about the future ofSukhoi Superjet 100. SuperJetInternational (SJI) CEO NazarioCauceglia told reporters at the RegionalAirline Association (RAA) annualconvention in the US soon after thecrash, “The crashed aircraft made its first

flight in July 2009 and hadaccumulated more than 800 flighthours. No serious technical issuesever arose during previous flights.Every effort is being made to

determine what went wrong andwhy. It does not alter our belief

in the aircraft or its safety. Thesadness we feel … will

remain with us forever.”

new airport at Pakyong in Sikkim.

Maccaferri worked with partners Mott

MacDonald and Punj Lloyd on the

£31 million project that featured a

550 metre wide, 1.7-km long corridor

in which the runway and airport

buildings are constructed for the

Airports Authority of India.

Bengaluru airport turns playport In order to make flying a memorableexperience for children, BengaluruInternational Airport recently came upwith Playport, an activity specificallydesigned for young passengers whovisit the airport in larger numbers dur-ing summer holidays. It offers a host ofinteractive exercises, fun-filled games,storytelling, magic shows, contests andmuch more to help children explore.“As the Gateway to South India, we tryto see how the airport’s offering canbe unique to the South Indian experi-ence for every traveller. While thisactivity is for the passengers, weencourage the city dwellers to comeand spend time here and make it adestination that they can visit duringthe summer holidays,” explained SanjayReddy, Managing Director, BIAL.

New food outlets at RGIA

The Rajiv Gandhi International Airport

(RGIA), which already has an exhaustive

list of shopping and dining options for

passengers, has added a Taste of India

and Idli Factory outlets at the domestic

departures of Hyderabad Airport’s pas-

senger terminal building.

Managed by the F&B operator HMS

Host, the Taste of India and Idli Factory

outlets meet international standards

and facilitate fast and efficient services

such as multiple billing counters to

easy away queues, LCD menu display,

etc, ensuring speedy service to trav-

ellers. The passengers can enjoy an air-

side view at the spanking new food

outlets, which boast of imported fixture

and furniture of international taste,

design and comfort.

ABOVE GROUND LEVEL ¨¨ Sukhoi conundrum

An outside view of the facade atHyderabad airport.

TOUCHING THE SKY: An Aeroflot Sukhoi Superjet 100 plane.

Vladimir SPrisyazhnyuk,President, SukhoiCivil AircraftCompany (SCAC)


28

INTERVIEW

Now we are only flying into Delhi… Ofcourse, we are studying which destina-tions we can fly to. India has big poten-tial and we are trying to see which mar-ket we can fly to. In fact, India is one ofour most profitable routes. Right now,we don’t have any particular destinationin mind but we are looking for somedestination in the future. We are veryhopeful about our India operations as wehave growing business ties with India

India is a big destination and that iswhy we started the Dreamliner fromhere and the second reason is that the787 is smaller and good for mid-haulflights. At the same time, the flight toJapan is quite a long one and the airlinecan benefit from the efficiency of theplane.

In the passenger demand, which cate-gory — business or economy — ismore?The corporate demand is more than theleisure. In fact, we are trying to promotethe regional market in Japan. After thetsunami, we are trying to bring intourists to the country. We are organis-ing a number of road shows and famtrips for agents and the media.

From India, around 60,000 passengerstravel to Japan every year of which only20,000 are leisure. In fact, more peoplecome to India from Japan. In 2009,140,000 people came to India from Japan.

How is Japan Airlines doingfinancially?We are doing well. This year we areexpecting more profits than in last year.Despite the bad conditions — the tsuna-mi, earthquake, etc were there — we arehoping to do well. We came out of government control last year. We aretrying our best to relist within this fiscalyear that is by March next year. We arenow part of the government and out ofthe bankruptcy.

Within this fiscal year, the government and the banks will sellJapan Airlines stock to general public.(Japan Airlines went bankrupt in 2010with debts of about $28 billion and hasrecently filed preliminary documents torelist on the Tokyo Stock Exchange,according to a report. The move wouldcomplete an astonishing turnaround forthe carrier.)

Quite some time ago, you had yourhotel business — the Nikko — in Delhi,which you have discontinued. Are youplanning to start the hotel business inIndia again?I can say that there is a plan. ActuallyJapan Airlines sold a lot of stocks of theNikko hotel brand to another hotelgroup.

But we still have a certain percent-age of stocks of Nikko hotel and we areplanning to come back again.

We are doingwell. This year we are expectingmore profits thanin last year.Despite the badconditions — thetsunami,earthquake, etcwere there — weare hoping to do well


What is so special about the JAL Dream-liner? The new B787 has unique Japan-ese touches that can be seen in the cabinlighting scheme. The state-of-the-art

LED system has 15 hues that reflect thechanging seasons and these differentcolours are prevalent during inflightoperations such as the meal service andwinding down for the night. Japaneseculture, known to adapt lifestyle activi-ties, including meal presentations (kaise-ki) or clothes, to certain periods duringthe year, is highlighted in the plane.

Green, dubbed Wakaba, symbolisinga young leaf that follows the briefbloooming of the sakura (cherry blos-som), will be seen in use in May andJune while blue or Natsuzora will signalthe coming of summer and orange orMinori, reflecting autumn and harvesttime, will be used from September toNovember.

Japan in all its colours on

the B787CLOLOURS OF LIGHT: An inside view of the B787, where lighting will play an important role in passenger comfort.

2005Air India orders 21 Boeing B-737-800, 23Boeing B-777 and 27 Boeing B-787 air-

craft. For long term planning, the fleet composi-tion included four Boeing B-747-400 for VVIPflying. Fleet to have 21 basic aircraft and 54advanced aircraft.

Likewise, Indian Airlines orders 43 AirbusA-320 family aircraft to replace ageing fleet ofA-320 aircraft. Additionally, the board approvesleasing 12 Airbus A-330 aircraft for long hauloperations. Fleet to have 43 basic aircraft and12 advanced aircraft. However, only 2 Airbus A-330 joins the fleet. Rest cancelled due to themerger on the table. Therefore, on long term

basis, there were only 43 basic aircraft and 2advanced aircraft.

DECEMBER 22, 2006Despite the merger on the table, Air Indiapilots get a lucrative wage agreement

from 01/01/1997. This agreement was signedby individual pilots as IPG was not recognisedat the time of the offer. Subsequently, all thepilots were paid arrears from 01/01/1997 whichran into crores of rupees to each pilot.Salient features of the wage agreement:


COVER STORY

THAT IS EXACTLY WHATOUR NATIONAL

CARRIER AIR INDIA IS

EXPERIENCING,THANKS TO

PILOTS OWINGALLEGIANCE TO

THE INDIANPILOTS GUILD.

CRUISINGHEIGHTS BUREAU

DETAILS THETWISTS AND

TURNS OF THEAIR INDIA SAGA.

Turbulencein the time of

The Air India

strikesaga

clear weather

On May 7, 2012, the govern-ment warned of actionagainst Air India pilotsbelonging to the Indian PilotsGuild (IPG), if they went

ahead with their strike on issues whichcould be amicably resolved. The fourissues on which the Air India pilots (fly-ing wide bodies) decided to strike workwere:

Exclusive flying rights on Boeing 787Dreamliner aircraft - that is, no shar-ing with Indian Airlines pilots;Payment of arrears from the time ofAir India-Indian legal merger in 2007;Travel on first class when not flying;and,Right to be promoted as commanderswithin six years of joining flyingduties in Air India. The Civil Aviation Minister, Ajit

Singh, threatened that the governmentwould cancel Air India’s internationalflights if the agitation snowballed. Disre-garding the Minister’s pleas, the pilots,owing allegiance to IPG, dealt a bodyblow to the ailing carrier’s internationaloperations, leaving thousands of passen-gers during the current busy/holiday sea-son stranded.

Subsequently, the Delhi High Courtheld the Air India pilots strike as illegal.Even so, the pilots, in clear disregard ofthe court ruling, continue with their strikeeven as we go to press. The more-than-two-week-long strike has highlighted theissue of who actually owns Air India - TheAir India Pilots, or the government, thatseems to be bent upon wasting thousandsof crores of tax-payers’ money to save AirIndia, when a section of Air India does notwant it to be saved.

The IPG suddenly struck work, afterthe Supreme Court backed the manage-ment decision to follow a one-to-oneratio of training pilots on the

Dreamliners: one Indian Airlines pilotfor one Air India pilot. True, there werepending issues which were exclusive notonly to the pilot community, but also tomany non-crew members of the Air Indiacommunity. However, these could havebeen raised at a different time. Somehow,the Air India pilots chose to strike whenthe judicial ruling was not in theirfavour. The IPG demanded that thistraining be given only to the pilots oferstwhile Air India. Unwilling to movefrom their stand, the IPG members start-ed reporting sick and stayed away fromwork, disrupting the whole network ofinternational long-haul and ultra long-haul operations. Air India lost `300 crorein revenues in the first 16 days of strike.

The management cracked down onthe striking pilots by derecognising theIPG, and also terminating the services ofnearly 100 pilots, including the executivecommittee members of the union. Eventhis action by the management cut no icewith the striking pilots who continuedtheir agitation, despite the Delhi HighCourt order terming their strike “illegal”and restraining them from reporting sick.

For long, Air India has been in newsfor all wrong reasons. It appears that atleast one section of the carrier’s employ-ees has been on strike every year in therecent past.

The government recently approvedthe turnaround plan of Air India, whichincluded equity infusion, conversion ofshort-term loans to long-term ones,issuance of non-convertible debenturesfor restructuring working capital, etc.The bailout package of `42000 crorecame with riders, setting certain mile-stones detailed in the plan, which hadto be met by the airlines over a periodof 10 years. It included the promise to

increase load factors in Air India, bothdomestic and international.

30

COVER STORY

Civil AviationMinister Ajit Singhthreatened thatthe governmentwould cancel AirIndia’sinternationalflights if theagitationsnowballed.

——


50 per cent of the flying allowance to bepaid in US dollars either in India or in over-seas accounts Boeing B-737 becomes the basic aircraft forAir India Pilots The first command to all the pilots to be onbasic aircraft only The company will deploy pilots from oneaircraft to other as per the requirement ofthe company The agreement does not give any exclusivi-ty on any aircraft to any individual pilot orany group of pilots. IPG very conveniently hides the fact that itis legally bound to fly B-737 as much as itis bound to fly B-777/787

2007Scheme of Amalgamation merging twoairlines is adopted merging all the assets

of both the companies into one. According to the scheme, the merged com-

pany is to honour all the agreements pre-merg-er. Further, any new agreement should not bedetrimental to other affected party. For example,agreement signed with ICPA should not be detri-mental to IPG.

APRIL 2007Indian Airlines Ltd. comes out with anadvertisement to hire pilots keeping in

mind the future requirement and induction ofproposed 12 A-330 (advanced widebody air-

craft). Such a step leads to excess number ofpilots on Airbus fleet as 2 A-330 are inducted.

AUGUST 22, 2007The Ministry of Corporate Affairs issuesorder to merge the two airlines. National

Aviatin Company of India Ltd (NACIL) is bornmerging all the assets and to reap the benefitsof the merger. V Thulasidas becomes the firstCMD of the merged entity. Capt. N VChandhoke (erstwhile Indian Airlines) becomesfirst Executive Director (Operations).

Neither ICPA nor IPG made any represen-tation to the ministry of civil aviation or to theministry of corporate affairs against merger orissues rising out of merger.

31

Despite the government efforts to res-cue the national carrier, the move wasseverely criticised by many in the mediaand the industry and it was said that itwould be better to privatise the carrier thanbailing it out. It was argued that giving therelief package to Air India alone was notjustified, while the entire aviation industrywas reeling under financial stress due tohigh fuel costs and high airport charges.

Air India’s credibility has come underdoubt following the unprofessional andselfish attitude of the pilots and other sec-tion of employees, on different occasions.The falling market share of Air Indiadomestic has become a cause for concern.

It may be mentioned here that AirIndia is overstaffed, if we take intoaccount the staff on the rolls, as well asthose who work on contract and are out-sourced. The employees to aircraft ratioin Air India is 258, compared to 150 in JetAirways, 118 in Kingfisher, 102 in Indi-Go, 202 in Lufthansa, 169 in British Air-ways and 138 in Cathay Pacific Airways.Air India’s combined losses over the lastfour years are touching `25,000 crore.According to a senior ministry official,stopping long and medium-haul flightswill help prevent 80 per cent losses of AirIndia, as they could not meet the operat-ing costs resulting in heavy losses.

However, it will be unfair to singleout the employees for the chaotic condi-tion Air India is in. Much has been talkedand written about the lack of management- forget professional management - in AirIndia. The employee groups, on manyoccasions, have made public their fearsthat various management decisionsappeared to favour the private players inthe industry. They had listed a set ofroutes from which Air India withdrew itsoperations, even though the flights weredoing well. These routes, incidentally,were immediately grabbed by the private

players as soon as Air India stoppedflights. The employees have been won-dering whether this was a design to elimi-nate the national carrier, after maligning itas being non-performing. Perhaps, theIPG has played into the hands of theseforces. Is it not a coincidence that a topoffice-bearer of IPG is a politician whobelongs to the political party that is a partof the UPA?

When the Open Sky policy wasannounced in the early 90s, there was fearthat the private sector participants wouldnot have a level playing field against thewell-established national carrier, whichhad the advantage of a well laid-out infra-structure, highly-skilled manpower, net-work connecting almost all major cities inIndia including the remote North-East,etc. The private players depended on theirhigh level of service standards and punc-tuality and finally left the national carrierbehind — in terms of market share — andbecame the leaders. Moreover, the repeat-ed strikes in both Air India and erstwhileIndian Airlines were instrumental in theirdeterioration.


NOVEMBER 21, 2007In the policy meeting for command on B-777, moving Commanders from erstwhile

Indian Airlines to fly B-777 is discussed.

JANUARY 14, 2008Standardisation Committee meeting takesplace. A proposal is put forward to imme-

diately release 40 Commanders from A-320 fleetto undergo command training of B-777 due tolack of pilots to command B-777 aircraft.

FEBRUARY 5, 2008In its letter to the CMD, IPG states, “Asyou are aware, prior to merger, the erst-

while Air India has placed an order for a number

of B-777 and B-787. It has come to our knowl-edge that you may be inducting a huge numberof pilots from erstwhile India Airlines to fly the B-777, in the capacity of Commanders. You willappreciate that (this was done) unilaterally, with-out even consulting or negotiating with the IPG,the only pilots’ union existing in the erstwhile AirIndia. Inter alia, the service conditions includecareer progression of the pilots.”

While opposing, IPG did not take intoaccount that the pilots who were proposed to flyB-777 were already commanders. In the truespirit of merger, instead of asking for commandslots on A-320, IPG choose to stop lateralmovement of pilots.

JUNE 9, 2008Staff Notice is issued asking for volun-teers for command upgrade for B-777.

Those eligible were mainly from erstwhile IndianAirlines. IPG objects to the staff notice.

JULY 2008IPG moves Bombay High Court to stopthe lateral movement of pilots (Writ

Petition No. 1615 of 2008). ICPA was not madeparty. ICPA did not follow the matter or raisedany objections to IPG’s objection.

FEBRUARY 26, 2009IPG signs “Deed of Recognition” with themanagement giving recognition to the

In a move that seems a virtualreplay of the Air India saga, halfway across the world, Australia’sQantas Group recently confirmedthat the hitherto Qantas Airlineswould now comprise two distinctbusinesses: Qantas Internationaland Qantas Domestic.

Effective July 1, in a majorrestructuring move, the Australianairline confirmed changes to itsexecutive team, in the next phaseof the five-year transformationplan, launched in August 2011.

After the restructuring process,Qantas International and QantasDomestic will have their own chiefexecutives, as well as operationaland commercial functions. Eventhe financial results will be report-ed separately. Alan Joyce, ChiefExecutive, Qantas Group, said therestructure would strengthen theQantas Group’s portfolio and helpdeliver its strategic goals.

Qantas replays AI sagaEMPTY COUNTERS: With no flights taking off,fliers also stayed away.

32

COVER STORY

In 2001, the government merged thetwo national carriers, Air India and IndianAirlines, with the belief that this wouldresult in a big and powerful airlines inAsia. It was also felt that there wasunhealthy competition between the twocarriers on certain routes. The govern-ment hoped the merger would give them alot of advantages in terms of synergies -of manpower and equipment - thus mak-ing it a force to reckon with.

Five years after the merger was for-malised, the then Civil Aviation Ministerinformed that 70 per cent of the processhad been completed and the remaining30 per cent issues would be addressedby the report of Justice DharmadhikariCommittee.

All-out efforts by the five Chairmenand Managing Directors, who took chargeduring the post-merger period and thepresent incumbent, have failed to preventthe fortunes of Air India from nosediving.

A reality check of the merger reflectsa different picture. A unified single codefor its entire operations, unification ofreservation offices in different cities,award of contract for various flight activi-ties, etc. are some of the areas where themerger has moved ahead. However, thereis hardly any unification of the two enti-ties on manpower and cross-utilisation ofmanpower and equipment happens rarely,at least at the major airports.

Air India has the state-of-the-art air-craft for ultra-long-haul flights and itsnon-stop operations to the US and Canadaare a product unmatched by any other car-rier. There is no doubt that there are cus-tomers who are still loyal to the Maharajafor its ethnic flavour or nostalgia.

The arrival of the 787 Dreamliners isexpected to change the financial equa-tions in favour of the carrier. The air-craft used in the short-haul journeys arealso comparatively new. Despitethese advantages, the air-

line is unable to exploit the market as apreferred carrier.

We are faced with various questions.Are the sales and marketing units doingenough to sell their products? Is there asystem in place to monitor various routesand analyse their profitability? Are theyable to discontinue a service if foundunviable? Are their operations guided bycommercial results or the mandarins ofpower?

The airline spends nearly `20 croremore than its earnings every day. What isalarming is that very little is being done toaddress this serious issue. Either itsendeavour to bring down costs has notworked, or no genuine effort has been putin to achieve that goal.

Prior to the merger, both the carriershad registered meagre profits. Post-merg-er, their financial condition is deplorable.The airlines has an outstanding debt ofaround `60000 crore. Struggling toimprove its revenues and yields, it hasexhausted all its options of more bor-rowings for the working capital.

It is high time the employeesrose above their self-interestsand acted more professional-ly to save the national carrier, which is indica-tive of the country’saviation health onthe world map.


guild. The salient features of the deed:The company agrees to recognise theguild for a period of two years.“The Indian Pilots’ Guild assures full coop-eration in the maintenance of operationsand agreed not to resort to any action thatmight in any way cause inconvenience tothe passengers or disruption of flights...” “It is agreed that in view of the merger oferstwhile Indian Airlines and Air India intoNACIL, the Company is at the liberty tolook at ways and means to reduce themultiplicity of Unions. Indian Pilots’ Guildwill extend its cooperation in this regard.”IPG will not hold political funds. However,

according their constitution the Presidentcontinues to be nominated by NCP, a polit-ical party. ICPA did not object to the recog-nition of IPG at any stage despite multiplic-ity of the unions and IPG being led by apolitical party.

FEBRUARY 25, 2010IPG keeps option to go back to the courton the lateral movement of pilots if the

need arises. The management provides themwith this option in the deed of recognition.

JULY 25, 2010The Board of Directors call a meeting ofall the unions detailing the turnaround

plan of the airline.

JULY 26, 2010Air India advertise-ment for hiring of B-

777 pilots appears in newspa-pers. This was contrary to the turn-

around plan as spelt out by the Board ofDirectors. Air India hires 100 pilots through

this ad.

JULY 27, 2010ICPA writes a letter to the CMD objectingto the advetisement and offering their

services for B-777/737/787 to bring in synergiesand take advantage of economies of scale.

SEPTEMBER 22, 2010The company invites applications from theCommanders of erstwhile Indian Airlines

having command experience of 1000 hours onBoeing to fly 737-800 with Air India Express.

OCTOBER 12, 2010In a letter to the CMD, IPG opposes lateralmovement of erstwhile Indian Airlines

commanders to B-737 aircraft in AI Express.

NOVEMBER 16, 2010IPG writes a letter to the CMD saying,“The HR issues related to seniority of

pilots in the merged entity must be addressed

All-out efforts by the fiveChairmen andManagingDirectors, whotook chargeduring the post-merger periodand the presentincumbent, havefailed to preventthe fortunes of Air India fromnosediving

POLITICAL CLOUT: IPG PresidentJitendra Ahwad (extreme left) during theinteraction with the press.


prior to moving pilots from theBoeing fleet (Boeing 777/787) to the

Airbus fleet (Airbus 319/320/321) orvice versa.”

DECEMBER 31, 2010CMD orders to send 40 sets ofpilots from erstwhile Indian Airlines

for B-787 training.

FEBRUARY 1, 2011Capt. Subodh Nigam with instructionsfrom the CMD offers command slots on B-

777 to the Commanders of erstwhile IndianAirlines having a minimum command experi-ence of 1000 hours on Airbus A-320: 137 erst-while India Airlines commanders apply.

MARCH 7, 2011Email from CMD to all the pilots of erst-while Indian Airlines raises the concern of

falling flying hours on Airbus A-320 fleet. Onecan very well infer that there has been shortageof pilots for B-737 and B-777. On the other handthere were more pilots for Airbus A-320 fleet.

MARCH 22, 2011A meeting between IPG and erstwhile AirIndia management pilots is held. It was

assured and documented by the managementpilots to IPG that erstwhile Indian Airlines pilotswill only be trained on B-787/777 aircraft onlyafter the junior most pilot of erstwhile Air India istrained as commander on B-787/777 aircraft.

No pilot from erstwhile Indian Airlines waspart of the said meeting. Furthermore, by notinvolving ICPA, the management violated provi-sions of the scheme of amalgamation.

MAY 11, 2011The Government of India, Ministry of CivilAviation issues a notification constituting

Justice Dharmadhikari Committee to look intomerger issues.

MAY 18, 2011Capt Subodh Nigam, Executive Director,Flight Safety, opposes direct command on

B-777 raising flight safety concerns.

OCTOBER 8, 2011Historic day in the merged company. Thefour parties — a Management Pilot of

erstwhile India Airlines Capt. R S Dhillon, aManagement Pilot of erstwhile Air India Capt.Amitabh Singh, representatives of ICPA Capt. A.S. Bhinder, Capt. Rishabh Kapur and Capt. AAhuja, and representatives of IPG, Capt. E.Kapadia, Capt. J Menon and Capt. Rohan Singhwere signatories to the Record Note ofDiscussion. In the Record Note of Discussion,ICPA and IPG expressed their concerns andagreed on one issue:

Concerns of IPG:Pulling out all Air India pilots from Expressflying B-737-800 in time-bound manner toB-777/787 (this meant IPG does not wantto fly a basic aircraft before moving to anadvanced aircraft)Seniority of co-pilots be resolvedEqual number of command slots be givento IPG on Airbus A-320 (this is first timeIPG expresses its desire to come on Airbusfleet)Career progression linked to the seniority

ICPA’s views:Career progression cannot be linked withthe seniority as the case is worldwide. Onlyexperience and aircraft manning require-ment should be the considerationSeniority and parity is looked by JusticeDharmadhikari Committee; ICPA would liketo wait for the report.

Agreement:Both unions agreed to continue to talk abouttheir issues. In the meantime equal number ofsets from narrow body and wide body aircraft isagreed upon. The agreement takes care of thescheme of amalgamation and promise made toIPG to involve it for lateral movement of pilots.

OCTOBER 18, 2011IPG writes to the CMD objecting to theagreement of October 8, 2011 suggesting

changes in the agreement.

NOVEMBER 2011IPG moves Bombay High Court againstthe agreement of October 8, 2011 and

prays that erstwhile Indian Airlines pilots shouldnot be trained till all erstwhile Air India pilots aretrained as commanders on B-787.

DECEMBER 2011Air India starts command training on B-777 of first officers who do not have any

previous command experience on basic aircraft.

DECEMBER 19, 2011Ajit Singh takes over as the Minister ofCivil aviation.

ICPA writes a letter to the CMD with a copy toAjit Singh, Minister of Civil Aviation, Dr NasimZaidi, Civil Aviation Secretary and E K BharatBhushan, Director General of Civil Aviation. Inthe letter ICPA objects to direct command on B-777 due to flight safety reasons. The examplesof various accidents and incidents are quoted.

JANUARY 2012ICPA moves Delhi High Court to stopdirect command training of co-pilots. ICPA

also prays to the court to consider 137 volun-teers for training on B-777.

JANUARY 12, 2012

The DGCA sends Safety Audit report ofAir India Express to operator. The report:

Co-pilots who failed to qualify asCommanders on B-737 who are now beingtaken up for command on B-777 withouthaving previous command experience.“It is pertinent to note that without any poli-cy in place such an exercise of first com-mand on B-777 a/c is being done withoutapprovals from DGCA.”

Essentially, this meant that pilots of erstwhile AirIndia were given command without keeping theinterest of the company in mind.

MARCH 13, 2012Bombay HC interim order in B-787 casestopped the training of erstwhile Indian

Airlines pilots and did not recognise the letterdated March 22, 2011.

APRIL 20, 2012ICPA moves Supreme Court against theorder of March 13, 2012.

APRIL 23, 2012Supreme Court’s order in B-787 case:“Operation of the impugned order shall

remain stayed pending further orders from thiscourt.” This vacated the stay and paved the wayfor erstwhile Indian Airlines pilots to commencetraining on B-787 aircraft. However, Air India’soperations department does not commencetraining of erstwhile Indian Airlines pilots.

MAY 2, 2012ICPA goes back to the Supreme Courtcomplaining against Air India.

MAY 4, 2012IPG pilots start reporting sick.

MAY 11, 2012Delhi High Court order in B-777 case:“44. Though, the domain of the courts are

not to step into the domain of the Governmentpolicies; however, if the Government policycauses harms to the rights of the citizens, andthe decision is arbitrary, then the courts certainlycan interfere with. Therefore, if at this stage, it isinterfered then the seniority of the petitioners(ICPA) would definitely be disturbed.

46. Therefore, in view of the discussion andsubmissions of the parties, I am of the consid-ered opinion that till the report submitted byJustice Dharmadhikari Committee is implement-ed, the imparting of training on advance aircraft,in this manner, shall remains stayed.

47. I hereby make it clear that the pilots ofAir India those who are already on training onadvance aircrafts, they shall not be disturbedand those who already taken the training onadvance aircraft shall be subject to the outcomeof the instant petition.”

34

COVER STORY


From 2002-2003 onwards, boththe airlines with plans of induc-tion of new airplanes to their fleetstarted hiring pilots.Requirement of number of Com-manders increased in both theairlines when new airplanes wereinducted. Hence, the promotionof Co-Pilots to Commandersbecame faster, which reducedthe duration as a Co-Pilot signifi-cantly from approximately 10 to12 years as Co-Pilot to 4 to 5years in both airlines.

1. The number of Co-pilots whomeet the qualifications criteria forpromotion to Commanders wasmore in erstwhile Indian Airlinesthan Air India basically for two

reasons: The flying allowance oferstwhile Air India was fixed at 80hours and did not depend on theactual hours flown whereas foran Indian Airlines’ Co-Pilot flyingallowance was not fixed and itwas as per the number of hourshe had actually flown in themonth. So, to get a bigger shareof the cake, an Indian AirlinesCo-Pilot flew more and heachieved required 2750 hours offlying experience as Co-pilotfaster then his counterpart in AirIndia.

2. The fear of losing the seniority tohis junior motivated Co-Pilots toclear the ATPL licence examsconducted by DGCA within 3

Difference between Commander and Co-Pilot

Steps for a Co-Pilot to be a Commander

1)During flight Commander issupreme and sole responsi-

ble authority for operation of flightwhere as Co-Pilot is Second inCommand assist Commander todischarge his duties.

2)As far as flying an airplaneboth of them are equally

qualified only difference is seatingin cockpit where Commander sitson Left seat as he is trained tohandle aircraft from left hand seatsimilarly a Co-Pilot sits on Right

seat as he is trained to handle theaircraft from Right hand seat.

3)It is Commander’s authorityto give flying to a Co-Pilot

and in the event when Co-pilot isflying the airplane ultimate respon-sibility for the safety of flight lieswith Commander.

4)The last and final line ofdefense for any flight is

COMMANDER of that flight who issolely responsible for safety of theaircraft and its passengers.

From a Co-pilot to a Commander

Requirement of Commanders in any airline basically depends upontwo factors: one, the airline is adding airplanes in its fleet; and,

second, retirement of serving commanders.Both airlines promote Co-Pilot to Commander whenever airline hasrequirements for Commanders and it has nothing to do with the

maximum number of years of service in both the Airlines.Both the airlines inducted airplanes to existing fleet from 2007 to2011: Erstwhile Indian Airlines has a total of 45 planes (Basic aircraft:

43 from Airbus 320 family + Advanced aircraft like Airbus 330: 2) anderstwhile Air India has a total of 41 planes (Basic aircraft: 18 Boeing 737s +Advanced aircraft Boeing 777: 23).

This addition of airplanes increased the requirement of Commandersin both the airlines. The requirement of Commanders was more in

erstwhile Air India as the number of advances airplanes inducted was morethan the basic airplanes. Advanced airplane requires 10 Commandersagainst 5 on basic airplanes because of different kind of operations. Therequirement of commanders in both the airlines: Erstwhile Indian Airlineshas a requirement of 235 Commanders (Basic aircraft: 43x5+Advancedaircraft 2x10=235) and erstwhile Air India needs 320 Commanders (Basicaircraft: 18x5+Advanced aircraft 23x10=230).

It is evident that Air India required more Commanders than IndianAirlines but Air India did not have enough qualified Co-pilots to be

promoted as Commanders for its planes. To meet the shortfall, Air Indiahired expat Commanders.

Till date, there is a shortfall of Commanders in Air India, which isevident from the fact that there are 30 Expat Commanders and 63

Indian Commanders on contract as per crew list of March 2012.

Erstwhile INDIAN AIRLINES Erstwhile AIR INDIA

Airline Transport Pilot’s Licence(by DGCA).

Airline Transport Pilot’s Licence(by DGCA).

Total 2750 hours of flyingexperience as Co-Pilot onCompany Aircraft.

Total 2750 hours of flyingexperience as Co-Pilot onCompany Aircraft.

Minimum 3 years 2 months ofservice in company after releasedas Co-Pilot.

No such requirement.

No Maximum limit of years ofservice for promotion tocommander it is subject torequirement of company.

No Maximum limit of years ofservice for promotion tocommander it is subject torequirement of company.

If a Co-Pilot fails to clear ATPLlicence exams conducted byDGCA within 3 years 2 months ofservice in company after releasedas Co-Pilot then he loses hisseniority to his juniors.Subject to company

requirements, his juniors whohave cleared the exam within thestipulated 3 years 2 months ofservice in the company after beingreleased as Co-Pilot and hasattained ATPL would be taken upfor command.

No such clause in their servicebut whenever company doesrequire Commander and a Co-Pilot’s turn comes and he has notqualified ATPL then he looses hisseniority to the junior. This juniorwho has ATPL Licence would betaken up for command.

The Indian Commercial Pilots

Association (ICPA) has a lot to

say on the strike...

Cry forlevel playing field


At the time of the 2007 merger, following were the basic andadvanced aircraft as per COPU report:

At present following are the basic and advanced aircraft:

Requirement of Pilots today (10 pilots per Basic Aircraft and 20 pilotsper Advanced Aircraft): Erstwhile Indian Airlines: 600 (Basic56x10+Advanced 2x20) and erstwhile Air India: 700 (Basic18x10+Advanced 26x20). At present, the total surplus pilots strength is: Erstwhile Indian Airlines:185 (785 on rolls) and erstwhile Air India: 25 (725 on rolls including 69trainee cadet pilots).Erstwhile Indian Airlines has 185 surplus pilots until they receive all

allocated 13.5 Boeing 787s whereas erstwhile Air India has 25 surpluspilots. Note: 725 pilots on the rolls of erstwhile AI includes 69 trainee cadetpilots on Boeing737.Indian Airlines does not have any trainee cadet pilots.

After distributing 50:50 of the new Boeing 787 airplanes between thetwo cadres, the total strength of airplanes will be:

Requirement of Pilots after dividing Boeing787 50:50 considering 10pilots per Basic Aircraft and 20 pilots per advanced aircraft:

At present total pilots strength including contract and expat pilots is:

Expected shortage of pilots on receiving 50:50 Boeing 787 is:

Erstwhile Indian Airlines pilots should be allocated more airplanes inmerged Air India for three reasons:

a. To replace expensive Expat pilots presently employed on advancedairplanes.

b. Post-merger due to the replacement of IA routes by Air India Expressairplanes mainly flown by erstwhile Air India pilots has resulted inunder-utilization of erstwhile Indian Airlines pilots to 60 hrs a monthagainst optimum utilisation of 90 hrs a month.

c. By allocating more advanced airplanes to erstwhile Indian Airlines, thecarrier will be doing justice to the Pilots as they are equal employeesin a merged entity and have a legitimate right of career progression inthe new company.

years 2 months of serv-ice in the companyafter his release asCo-Pilot. Failing toclear the examwithin stipulatedduration would havelet his juniors be promotedas Commanders before himwhenever the company hadrequirement for Commanders. AirIndia Co-Pilots were required tohave ATPLs whenever their turnfor Commanders arrived.As per the policy, Co-Pilots ofboth the airlines are required to

be promoted as first Com-mander on Basic Aircraft,which presently is Boeing737. As per the wageagreement of erstwhile

Air India, all the Co-Pilotswere given an opportunity to

get promoted as Commanderson Basic Airplanes: 44 of themare still Commanders on Boeing737s and many after havingflown as Commander on BasicAirplanes are promoted as Com-manders on advanced airplanesas per their career progressionpattern.At present, there is a shortage ofCommanders on Boeing 737fleet which continues to employ

19 expat Commanders and 48Indian commanders on contract.The present demand of erstwhileAir India Co-Pilots is like a bikiniwhich conceals all the essentialsand reveals only the non-essen-tials i.e. they want to be promot-ed as Commanders withoutbecoming a commander on thebasic aircraft as they fear thatpost-merger their counterpartswho are more experienced thanthem will become Commanderson advanced airplanes.Reasons for giving first com-mand on basic airplanes

1. Pilots are professionals and theirskill is involved in takeoffs andlandings. So before taking any

Co-Pilot for Commander’s train-ing, all the airlines ensure thatCo-Pilots have sufficient flyingexperience as well as sufficienttake off and landing experience.

2. Take off and landing techniqueremains same. Landing atadvanced airports such as NewYork is easier compared to a lessadvanced airport such as Man-galore because advanced air-ports have better facilities fortakeoff and landing.

3. By the nature of the operationsof basic aircraft i.e. smaller air-planes, smaller sectors, moretakeoffs and landings areinvolved enhancing and maturingpiloting skills.

WHYAIR INDIA CO-PILOTS

TAKE LONGER TO BE PROMOTED AS COMMANDERS?


Basic aircraftBoeing 737 = 11Airbus 320 family = 57

Advanced aircraftAirbus 300 = 03

Basic aircraftBoeing 737 = 18Airbus 310 = 16

Advanced aircraftBoeing777 = 07

Total airplanes = 71 Total airplanes = 71


Basic aircraftAirbus 320 family = 56

Advanced aircraftAirbus 300 = 02

Basic aircraftBoeing 737 = 18

Advanced aircraftBoeing777 = 20Boeing747 = 06

Total airplanes = 58 Total airplanes = 44


Airbus 320 = 56Airbus 330 = 02Boeing 787 = 13.5

Boeing737 = 18Boeing747 = 06Boeing777 = 20Boeing787 = 13.5

Total airplanes = 71.5 Total airplanes = 57.5# 3 Boeing 777 yet to be delivered


Basic 56 x 10 = 560Advance 15.5 x 20 = 310

Basic 18 x 10 = 180Advance 39.5 x 20 = 790

Total Pilots required = 870 Total Pilots required = 970# On receiving 3 Boeing777 another 60pilots will be required


On Rolls = 785On Contract = 09Expat = 00

On Rolls = 725On Contract = 15Expat Air India = 11Expat AIE = 19

Total Pilots = 794 Total Pilots = 856


Total shortage = 85 Total shortage = 245

BRIEF STATISTICS

36

COVER STORY

For the second time in ten years,the Indian Pilots Guild (IPG) hasfaced the ignominy of being de-recognised by the Air India man-

agement. In 2003, when the IPG went ona strike on the issue of SARS — refusingto operate to destinations in the SARS-affected countries and flights to any otherdestination if it had on board a passengeror crew who had travelled to any of theSARS-affected Asian countries in the pre-ceding ten days. The demand wasabsolutely absurd as pilots of airlineseven of the SARS-affected countries hadnot reacted in this manner.

The then Air India management wasthus left with no alternative but to strikehard at the agitating union; de-recognis-ing the IPG and suspending over a hun-dred pilots. Capt. Vikrant Sansare, thegeneral secretary of the IPG who led thestrike was eventually dismissed fromservice. But Air India pilots haven’t beenany different from their global communi-ty because pilots of various airlinesworldwide have gone on strike one timeor the other as they have the maximumpower to paralyse the flights in the short-est possible time, which is what they didby reporting sick.

IPG can be faulted for the current agi-tation on two counts. First, going on astrike without notice and second in pur-suance of demands that did not merit a

strike at this juncture when the govern-ment was still in the process of complet-ing formalities for infusion of the firsttranche of the `30,000-crore bailout pack-age. It is for these factors that the IPG isat the receiving end of public angerthough the issues raised by IPG — notfirst class travel — do warrant a seriouslook.

The strike is a direct fallout of the ill-conceived, poorly implemented mergereven five years after it was given effect.As the Comptroller and Auditor Generalof India (CAG) report on Air India haspointed out, HR issues arising out of dif-ferent work culture, varied promotionpolicies, pay structure, etc. were flaggedprior to the merger but those pushing themerger agenda had hoped that the issueswould be sorted out once the airlinesmerged. With no plans formulated toaddress the issues, as is very often thecase in the government sector, the HRissues have been allowed to simmer. If itis pilots on agitation today, there can beno guarantee that another set of employ-ees will not go on an agitation a month ortwo later, unless, of course, some expedi-tious action is initiated to set things right.

Whilst there has been a tendency toput the entire blame on the doorsteps ofIPG this time around, the problem runsmuch deeper, if one takes a dispassionateview of how the airline has been run since

The governmentneeds torecognise thefact that if AirIndia has failedto perform overthe years it isowing to severalfactors, not justlabour issues.


The present strike by pilots owing allegiance to the IPG is only a part of a bigger malaise that is affecting Air India, comments Jitender Bhargava. It is indeed high time professionals took over the operations of Air India.Only then will Air India and the Maharaja live and flourish.

NO ONEIS SERIOUSABOUTAIR INDIA

DOWN BUT NOT OUT: Agitating Pilots shouting slogans during the strike.

OUTL

OOKI

NDIA

37

the merger. The HR issues haven’t beenaddressed, and if they have been, then notvery fairly. A question that needs to beposed is: What have the successive man-agements done since the merger to inte-grate the manpower, working conditionsand to ensure that airline functions as oneentity? At the time of merger, two execu-tive directors — one from erstwhile AirIndia and the other from erstwhile IndianAirlines — were designated to look afterintegration matters. What have they done?What have the chief executives who havedonned the positions since the mergerdone? Are they not accountable for lackof performance?

Likewise, the Ministry of Civil Avia-tion was expected to guide Air India in res-olution of HR issues, to quote the CAGreport again. What has the Ministry done?Even the simple act of getting a committeeof experts constituted to look into theentire gamut of principles of integrationacross various cadres, level mapping andseniority issues of post-merged entitybesides the principles of pay/wage ratio-nalisation and restructuring between all theemployees of erstwhile Air India and Indi-an Airlines took them 3-1/2 years. Theirony of it all is that it was a threat of strikeby ICPA that prodded the Ministry to con-stitute the committee in February 2011.

The current strike, howsoever illegiti-mate, should, therefore, be seen as a man-ifestation of employees seething anger attheir issues not being addressed. The gov-ernment also needs to recognise the factsthat if Air India has failed to perform overthe years it is owing to several factors, notjust labour issues. The blame for many ofthe critical failures will, in fact, fall in thedomain of the management or the govern-ment, in its capacity as the 100 per centowner of the airline. The experiment onthe constitution of the Board by inductingstalwarts from the private sector hasfailed to make any worthwhile difference.The chief executives, appointed since themerger, have had to be summarily sackedfor non-performance unless, of course,the chief executive has been deft at man-aging the political environment in Delhi.Gustav Baldauf, who was appointed withenormous fanfare, lasted no more thannine months.

If the recognition of Air India’s consis-tent failure over the years is there, why arethe experiments on the same lines continu-ing endlessly in the hope that the resultswill be different this time around? Appoint-ing chief executives of Air India is not akinto buying lottery tickets and hoping thatsome incumbent will hit the jackpot some-time. The management will have to striveto make that happen by managing the

airline professionally. It is as simple as that!What is ironical in the current scenario

is the lack of transparency? If the IPG andother erstwhile Air India employees have aperception, right or wrong, that the man-agement is dominated by erstwhile IndianAirlines officials who are not being impar-tial in their dealings, the onus is on Chair-man and Managing Director Rohit Nandanto allay such fears. Allowing such a per-ception to breed will only create greaterhurdles in ensuring harmony. If today,most people have given up on Air Indiathey have reasons for it, not borne out ofcynicism but ground realities.

Civil Aviation Minister Ajit Singh hasbeen constantly and frequently articulat-ing that government funds approvedunder the bailout package will be infusedin Air India only on attainment of certainperformance standards and milestones. Ifthe recent past is any indication, the taxpayers’ money shall most likely remainsecure with the government because AirIndia has slipped to the fourth position inthe domestic skies, and GoAir is on theverge of forging ahead to relegate AirIndia still further. There is thus anurgency for the management issues hin-dering improved performance to be put onthe front burner for the minister and justnot the pilots strike, which should be bestleft to the management to deal with, andAjit Singh only providing the necessaryinsulation to the management from extra-neous pressure.

The unfortunate part is that no one isserious about Air India because no one isaccountable. The most recent example isthe way the airline is going about appoint-ing the Chief Operating Officer of AirIndia. After first inviting applicationsfrom all eligible candidates cutting acrossmanagement disciplines, as should be thecase, it has now been amended to inviteapplications only from pilots with a cer-tain number of flying hours, age, etc.How can a pilot run an airline when theyhave failed to successfully manage eventhe operations department, if the discon-tentment amongst pilots is any indication?Further, it is being openly speculated thatthe amended conditions have been tailor-made for a particular pilot currently rulingthe roost.

Rohit Nandan, let professionalismdrive Air India for improved results andnot personal prejudices because even if asection of employees wins the currentround, the loss ultimately will be for all ofthem — irrespective of whether theybelong to the erstwhile Air India or the erstwhile Indian Airlines.

(Jitender Bhargava was ExecutiveDirector of Air India)

Appointing chiefexecutives of AirIndia is not akinto buying lotterytickets andhoping thatsomeincumbent willhit the jackpotsometime


38

SPECIAL REPORTAL

LPH

OTOS

:EBA

CE.A

ERO


GENERALLYCONFIDENTTHE GENERALAVIATION MARKETAROUND THE WORLDIS STILL WALLOWINGTHROUGH THE RIPPLEEFFECTS OF THERECESSION. EVEN SO,THE RECENTEUROPEAN BUSINESSAVIATIONCONVENTION &EXHIBITION, SPELTOPTIMISM ANDCONFIDENCE. AREPORT.

Despite the gloomy economy,the 12th annual European Business Avia-tion Convention & Exhibition (EBACE2012) in Geneva “was one of the strongestEBACE shows yet, demonstrating its val-ue”, the organisers claimed. The showattracted over 12,500 attendees from 99countries — both compared favourablywith the 2011 show. The show’s static dis-play area — 10 per cent larger than thatlast year — had a record 60 aircraft.

While the numbers were good, thegeneral mood was one of concern andcautious optimism. Overshadowed byproblems in the European financial mar-kets, it was well attended but there wasno great buzz. Cessna and Bombardierboth launched new models but these didnot capture the imagination of many visi-tors to the show.

Latin America remains active, whileRussia and Eastern Europe show “posi-tive signs”. Brazil and Australia remainin the “good activity” group. However,there is overall disappointment in West-ern Europe due to a depressed pre-ownedmarket. Another mature market, the US,has been disappointing. In India, saleshave “stalled” for three years due to aweak currency and strong inflation. TheMiddle East remains relatively quiet.African activity is concentrated in oil-producing countries like Nigeria.

Hawker Beechcraft was the onlymanufacturer that announced orders.This was partly to convey that it is stillfunctioning as a company whilst in Chap-ter 11 (something that Europeans withstrict bankruptcy laws often struggle tounderstand) and the future of the

LOOKING UP: The General Aviationbusiness made a valiant stand at therecent EBACE expo; vigenettes fromthe expo this year.

company was regularly discussed. The biggest story of the show was

the announcement by Fred Hochberg,Chairman and President, Export-Import Bank that he is committed tosupporting US business jet manufac-turers. It announced a new $350-mil-lion facility for Cessna Finance andalso a new way to simplify and speedup applications from customers ofother companies building businessjets and helicopters in the US. Underthe new scheme, qualified adviserswill work with Ex-Im to reduceapproval times for deals to fewer thanfour weeks. The first qualified adviserwas Airfinance. Hochberg said thatEx-Im wanted to finance business jetsand helicopters worth $1 billion by2014.

There were a number of advancedaircraft on display. Among them were:

Gulfstream Aerospace Corp’sultra-large-cabin, ultra-long-rangeGulfstream G650 made its firsttrans-Atlantic crossing to Ebacesquawk-free and non-stop in just6 hours and 55 minutes.Bombardier announced that itwould phase out its Learjet 40 andLearjet 45 and replace them next yearwith revamped versions: the Learjet 70and Learjet 75.But the plane’s avionics, the systems

that fly the airplane, will be brand new. Itwould be the same Garmin G5000 digitalavionics developed by Rockwell Collins forthe upcoming Learjet 85, as will be theergonomics of the cockpit that will also beredesigned with the same general look andfeel as the passenger cabin.

The Vision Flight Deck is being rolledout across Bombardier’s various aircraftplatforms in future corporate aircraft suchas the Learjet 85, Global 7000 and 8000, aswell as airliners like the CSeries.

The changes, however, will be morethan cosmetic. The new aircraft’s Hon-eywell engines will be 10 per cent morepowerful, the winglets will be angledtwo additional degrees for improvedaerodynamics, range will increasebetween four and five per cent to 2,000nautical miles and runway length neededfor takeoff and landing will be reducedbetween 500 feet and 700 feet, increas-ing the choice of airports for therevamped planes.

Dassault’s in-development Falcon2000S large-cabin business jet is beat-ing its initial performance objectives,said Charles Edelstenne, CEO of Das-sault Aviation. He was bullish aboutprospects for sales and told journalistsat the company’s press conference at

EBACE that the market was in “a slowtransition to recovery”.

“Landing performance will be 10 percent better than targeted numbers,” saidOlivier Villa, Senior V-P for civil air-craft. Better than hoped-for low-speedperformance was obtained with newinboard slats that “work together” withwinglets.

The improved landing distances shouldthus expand the number of secondary air-ports the aircraft can serve. Although the2000S has a larger cabin, its target competi-tors are in the super-midsize category likethe Gulfstream G280. Dassault claims to

have significantly better landing per-formance. So far, the landing dis-tance that appeared on the 2000S’performance sheet has been 2,600feet at sea level for a “typical landingweight”.

The Falcon 2000S prototype hasundergone 300 hours of flight testsin about 130 flights. Still to come istesting the integration of the EASy IIcockpit.

Although he did use the word“recovery,” Edelstenne appearedcautious about the business aviationmarket. Sales are strong in the FarEast, with 12 Falcon deliveriesscheduled this year in China alone.The opponents in China businessaviation have encouraged Dassaultto plan to set up a Falcon service sta-tion in Beijing in 2013, possibly witha local partner.

Other announcements atEBACE were:

Cessna announced the supermid-size Citation Longitude.

Flexjet will be the first companyto offer fractional ownership of theLearjet 70 and Learjet 75 with deliv-

eries scheduled for 2013.NetJets Europe launched a new aircraftmanagement business.Work has begun on the design andmanufacture of the first full-flight sim-ulator for the HondaJet.Hawker Beechcraft will open a newparts and distribution warehouse inBengaluru, India. The warehouse willbe stocked in the next few weeks andoperated by Airworks India Engineer-ing.Sky Dragon Pacific launched a newiPad app — Sky Dragon — whichhelps independent project managers orcompletion facility managers keepclients informed about the progressionof their aircraft build or large aircraftrefurbishment project.CAE acquired the Oxford AviationAcademy for $314 million.Eurocopter announced two deals atEBACE in Geneva.The first was a contract signature for

six Eurocopter AS350 B3e helicopters andone EC130 T2 to Eurocopter’s Swiss-baseddistributor, Europavia. Second, Eurocoptersigned an agreement with Koçoglu Aviationfor the first approved maintenance centre tobe located in Turkey.

Qatar Airways and fractional jetownership provider Flexjet are toform an alliance to offer the MiddleEast airline’s passengers a seamlesscharter service throughout NorthAmerica.

40

SPECIAL REPORT


Fred Hochberg,Chairman andPresident, Export-Import Bank inEBACE 2012announced that heis committed tosupporting USbusiness jetmanufacturers

HUGE GATHERING: EBACE expoattracted a large number of businessvisitors this year.

EBAC

E.AE

RO


D I G I T A L T R E N D S F O R T R A V E L L E R E X P E R I E N C E

eeN tExpressCRUISING HEIGHTS

Indians are becoming gadget happy.According to a survey byTripAdvisor, the world’s largest travelplanning site, smartphones and tablets

are becoming essential travel accessoriesfor Indians. The trend is clearly reflected inthe survey of over 1000 respondents acrossthe metro cities: while 65 per cent peoplesaid that they possessed a smartphone, 22per cent were owners of a tablet.

The ‘Mobile Device Travel Survey’found that these smart devices weretaking the travel experience to thenext level and were utilised fortaking/sharing photos, navigation andgames, besides calls and messaging.

Nikhil Ganju, TripAdvisor India’sCountry Manager, believed that for tech-savvy Indians, “mobile devices arebecoming an integral part of theirholidays”. Starting from pre-trip researchon destinations, attractions, hotels to actualbooking of accommodation or flights forthe trip, to location - based services at theholiday destination; “the mobile fits all inthe palm of your hand”, said Ganju. Hefurther added, “The versatile mobile todayserves as a navigation tool, camera,

gaming device, local directory… the list isexhaustive.”

The use of mobiles in the travelprocess had to be understood in twophases: the first while planning the trip,where booking/researching foraccommodation, flights and reading aboutdestinations, city guides or walking toursare the three mains tasks the device is usedfor, and the second phase comprising

travel. Here the mobile phone servedthe tasks of providing informationabout the destination, looking forgood restaurants and bookingthem, and knowing the reviews of

travellers. The six most downloadedtravel applications were TripAdvisor,Google Maps, Make My Trip, Blackberrytravel, IRCTC and Cleartrip.

Young Indians have made themaximum use of technology as 77 per centsmartphone owners were in the age groupof 25-35 years, and 28 per cent tabletowners were in the age group of 18-24.Moreover, 61 per cent respondents in theage group of 18-24 claimed to have used amobile device to plan their trip.

TOPSTORY

Continued on Page 44

INSIDE>

Gadget-happy gen arehappy travellers

Unique travel net-working site launched

There is a good news for travelenthusiasts. A group of techies and

Indian Institute of Management (IIM)graduates has launched JoGuru.com, aunique travel social networking site,which comprises the features of both, asocial networking site and a travelsearch engine.

Under this portal, all travel-relatedinformation will be custom-madeaccording to the user’s requirements.Besides, the site will help the userconnect with those who have alreadytravelled to the chosen destinations orpeople living there.

Praveen Kumar, Chief ExecutiveOfficer, JoGuru.com, said, “Peoplespend hours on search engines lookingfor relevant travel information. Howcool would it be if someone whoknows more about my destinationhelps me search the Internet and planfor my trip? In return, I would like tohelp others plan their trips. This iswhat we at JoGuru call collaborativesearch and planning. Unfortunately,none of the search engines try tounderstand the context of the searchbefore throwing millions of searchresults. JoGuru will change this.”

SUCCESS MANTRASocial media’s powerin deciding airportsposition.

46 ¨̈

INTERVIEWVarun Chadha, COO,JourneyMart.com ononline travel trends.

42¨̈

BOARDINGGET’S TECHIEJAL’s NFC basedboarding passes.

46 ¨̈

GADGET EMPOWERED: Tech-savvy traveller capturing one of Delhi’s monument on smartphone.HEMA

NTRA

WAT

Q: Tell us a little about the companyand how it came about.

A: In 2000, we saw this opportunity, anexciting model in the online space.

Conceptually, it started off as a platformwhere we would connect buyers andsellers, a sort of a mall for travel concepts.Buyers would come, set up shop, and wewould track sellers and let them meet andinteract directly. We launched officially in2001, when online travel was still a newconcept.

Was it not a big risk to get intosomething like this? It was, and we had to evolve with thetimes. We developed a lot of information,which is helping us now. Essentially, wepositioned ourselves as the informationprovider. That’s what differentiates usfrom the other Online Travel Agents(OTAs). They are transaction driven. Wefocus on the informative platform oftravel, travel guides, holiday ideas,inspiring people, and catching them earlyin their travel planning stage. We try toretain them through the process by gettingthem products, helping them with ourpartnership with the fraternity, whichincludes OTAs, tour operators, andsmaller operators. We back ourinformation with a product so that there issome form of gratification for our users.

Do you think the market was ready forthis concept? It wasn’t in 2001. Today, we have grownleaps and bounds because all the action ishappening online; retail is happeningonline, travel is happening online. I guesswe still have a long way to go in terms ofonline travel-related information. Therewas a study, which came out a couple ofmonths back, where they looked attravellers, typically someone who wouldtravel more than twice a year for leisurepurposes, and found that they were usingthe Internet for social media and planningtravel. Again, being online was a closesecond. So, online is definitely emergingas the number one source of planning andbooking.

With so many sites out there, how areyou different? We are trying to put our foot in the door tobe that credible source of information,especially in the Indian context. The ideais to add value to the consumer. We areproviding information like others but weare giving it differently. We are backedwith an efficient and affective meta-searchtechnology for online flights and hotelsand offer a repertoire of travel productsserviced by multiple travel service

providers to discover, plan and book yournext holiday. It is the way we aredelivering the information to them. Thefront where we are unique is holidayideas. We have developed a very smartleisure search, which responds to thetraveller’s preferences in terms of naminga destination, as each individual hashis/her own preferences and tastes for aholiday. A person can play around with thesearch, put his/her details, and we willthrow up destinations in India and abroad.We back that information with our travelguide section plus travel-relatedinformation, travel news, features, articles,and images. Holiday ideas are where weare unique. We are trying to be verycomprehensive there, be offbeat. Whilewe have run-of-the-mill sort of ideas,which include adventure, family holidays,we have tried to mix it up with music andculture, food and drinks, cosmopolitan,and offbeat spa. So, there is somethingfor everyone. Product wise, wehave the mall concept — 20-30different providers use ourplatform to generate lease.So, essentially, we aretrying to capture thetravellers early in theirplanning, discoverystages, and then retainthem through thebooking process, throughtheir life cycle of actuallyplanning and booking thetrip. In all this, we are tryingto address the grievance thatthere is too much out thereand someone needs to simplifythings. How do I know that theinformation I am getting withGoogle search or Yahoo search iscorrect? That’s where we come in. Weactually search 150 different sites forthe result. So, if you’re searching fora hotel in Goa, we would check up 150different sites, that include OTAs,some big tour operators, aswell as hotels directly.In this way theuser gets the bestdeal. We do thesame with thepackages.

You talk about giving a review of thedestination and information. Where is thisinformation coming from?That is developed in-house. We usemultiple sources. We actually visit thosedestinations, we read about them and talk topeople. That’s how we bring in thecredibility.

Who is your target audience?We are targeting the 25-45-age bracket,typically. We like to classify them as theurban contemporary traveller. The onelooking for the extraordinary, beyond thebeaten tracks, who is done with Goa andKerala, and we offer them somethingdifferent. Our packages appeal to a largeraudience because we are offering manychoices, all in one place.

42

eeN tExpress D I G I T A L T R E N D S F O R T R A V E L L E R E X P E R I E N C E

HEMAN

T RAWAT

How much have you grown? 100 per cent for the month of March thisyear from last year in terms of uniquevisitors.

So what is next?We are also going to launch a TVcommercial. We will use some of our ideasand try to inspire people and get them to usfor finding destinations, gettinginformation and booking them. It will helpus increase our audience space. This waywe are actually focussing on growth interms of visitation right now and we areletting our sites sort of take care of therepeat visitors. Our focus today is actuallydrawing a lot more traffic than trying toretain it. Being content heavy, informativeand developing this search has helped usretain our users.

What has been your greatestchallenge?Information content, generating goodquality content; I think that has been achallenge. What is going to remain a

challenge is sourcing of content. It isdifficult and challenging to keep up-to-date information. You have to beconstantly fresh. You must have the pulseof every place that you are covering.

With so many sites available, how doyou retain your clients? You have to keep innovating. You haveto keep adding. That’s the game now.Loyalties are being challenged at everystage. We have to keep capturing theimagination of the person to keepdrawing them back. Now whether it’s byproviding a cheap flight ticket orcontent that’s user friendly and fun —you have to add value. The Internet isbridging the gap between the end-service provider and the consumer. So,the middleman is challenged to providethat extra bit of value.

What about the other middleman, thetravel agent? Will he become non-existent?He is severely challenged. Today,

airlines prefer to promote web-onlyfares. Hotels are doing it. They are alldiscounting on their sites. So themiddleman is challenged. He has toeither offer value, good rates or beinnovative and provide information. ButI don’t think he will become non-existent because there are values thatonly he can bring to the table —convenience and expertise. He’s a one-stop shop who simplifies the wholeprocess, something that sometimes end-service providers can’t. While peoplesearch and plan online, bookings interms of actual online transactions arenot rising as fast. There are multiplefactors for this. One is that people wanttangibility. They want someone to speakto, to bargain with, and to customise.Also, credit cards become an issue,where the circulation of credit cards isnot that high. So that’s where portalsand providers are coming out withalternative modes of payment such asnet banking, debit cards, etc.

Tell us a little more about yourinnovation.Absolutely. Our search is based on anin-house property called DestinationExplorer, which is our travel guides —travel guides on 1,000 plus destinationsin India and across the world, plus ourlogic of reason and season.

I think we’ve got more than 17reasons to travel because seasons takeover as the months to travel. So it’s ourexpertise working, where we are givingrecommendations to users, based onuser preferences and giving a name totheir destination. So, either you knowwhere you want to go, and we give youthe information, a product that iscoming from multiple sources. Or, youdon’t know where you want to go andwe help you plan, based on yourchoices. We throw out options and it’svery user friendly. You can actually goand play around with it. Rather than itbeing static, it is dynamic to the extentthat you can change your preferencesand it will keep refreshing and throwingresults. This is then backed withinformation and products.

What is the newest trend that isemerging in India now? City-getaway is big, especially for thetypical middle class and upper middleclass, where the disposable income hasgone up. We cover nine major metrosand travel-recommend destinations.People are challenged for time so this isa very emerging trend, especially withthe youth.

JourneyMart.com’s innovative destinationsearch tool provides the basis for choosing aswell as discovering an ideal destination. Varun Chadha, COO, JourneyMart.com, talks toMeghna Bhaduri about the company’s ‘Unique& Innovative Holiday Search’ and what’s next.


eeD I G I T A L T R E N D S F O R T R A V E L L E R E X P E R I E N C E

“Innovation is thename of the game”

N tExpress



The new-age traveller was addicted tothe mobile. This can be judged from thefact that 55 per cent respondents said theycould not live without their mobile on aholiday, while only a meagre 16 per centwere unsure if they could manage withoutit. 58 per cent respondents said they oftenused their phone for tasks other thanmaking calls when travelling and 61 percent said they connected either often orsometimes to Facebook on mobile whiletravelling.

Mobile check-in appeared to be thenew trend with 31 per cent respondentsclaiming to use their device regularly forthe purpose. This number swelled to 52per cent in the age group of 18-24. Thegood news is that there was hardly anygender divide when it came to utilisationof mobiles for travel purpose. The reportclaimed that women were turning out‘equally social’ on trips.

Even though the picture appearsbright, there were stumbling blocks, whichneed to be overcome. For more than 60 per

cent travellers, poor connectivity androaming charges remain the majornuisance while travelling, followed by thediscomfort of navigating on a small screen.A whopping 42 per cent claimed that theywere hit with an unexpectedly large billafter using their mobile device while oninternational travel. This was probably thereason for 44 per cent people switching tothe use of country-specific SIM cards mostof the time while abroad. In the age groupof 18-24 years, 29.03 per cent respondentsinformed that the biggest irritant was poorapplication functionality compared to awebsite.

Bengaluru was the clear leader withthe highest number of smartphone users(74 per cent), followed by Delhi (72 percent) and Mumbai (70 per cent).Surprisingly, despite its position as animportant IT hub, Hyderabad finished lastwith 57 per cent respondents possessingsmart mobile devices.

In the case of tablets, Chennai was farahead of others with 34 per centrespondents claiming to own one, followed

by Delhi (27 per cent) and Bengaluru (21per cent). Kolkata lagged far behind withjust 18 per cent tablet owners.

Chennai and Bengaluru comprisedthe maximum number of tech-friendlytravel enthusiasts with 59 per centrespondents in both these cities claimingto have at least one travel applicationdownloaded on their mobile device, thehighest among all metros. This wasfollowed closely by Mumbai (58 percent), Hyderabad (57 per cent), Delhi (56per cent) and Kolkata (40 per cent). 61per cent Chennaites claimed to have useda mobile device to plan a trip followed byDelhi (52 per cent), Bengaluru (50 percent), Mumbai (49 per cent), Hyderabad(46 per cent) and Kolkata (39 per cent).

Delhiites emerged as the biggestFacebook addicts with 37 per centinforming that they often connect toFacebook on mobile while travelling.Bengaluru came a close second followedby Kolkata, Mumbai, Chennai andHyderabad.

— Nidhi Sharma

6 most downloadedtravel apps

Chennai has highesttablet phone owners

TripAdvisorGoogle MapsMake My TripBlackberry travelIRCTCCleartrip

77% smartphoneowners in the age group of25-35

28% tablet ownersin the age group of 18-24

Top 3 cell uses for travel planning tasks

Woes of a Mobile Traveller:The mobile travel revolution is not without itsmoments of frustration.

respondents own a smartphone;22% possess a tablet

60%

42%

29.0

3%

42% claimbeing hit with

massive internationalroaming bills

60%travellers say poor

connectivity,roaming chargesmain pain points

29.03%in the age group of18-24 say appfunctionality poorerthan web

Techie Youngistan

Metro mobile mania

65%

used mobile to bookflight or accommodation

37%used atleast 1 travelapplication

53%

GRAP

HIC:

RUC

HI S

INHA

HEMA

NTRA

WAT

Pre-trip planning While travelling

Book/researchaccommodation

Read aboutdestinations, cityguides or walking tours

Book/research flights Book/researchrestaurants

Read aboutdestinations, cityguides or walking tours

Read traveller reviews

Bengaluru has maximum smartphone users

34%

74%

Mobile — Bestfriend during travel

Can’t live withoutmobile on a holiday

Use Facebookon mobile

Use it forcheck-in

“Often” use it formultiple tasks

55%

58%

61%

31%

Continued from Page 41

TRAVEL GOES TECH LEVEL


46 CRUISING HEIGHTS June 2012

On May 11, Global air transportIT provider SITA celebrated the

fifteenth anniversary of the launchof its self-service check-in kioskswhich have been providing fast andeasy check-in to millions ofpassengers. More than 5,200 SITAkiosks have helped reduce queuinglines at 200 airports around theworld since 1997, when Air Alaskawas the first one to receive it.

SITA’s first common use self-service (CUSS) kiosks made theirappearance at Toronto PearsonInternational Airport in 2003, as part of the Greater TorontoAirport Authority’s $4.4 billiondevelopment programme. Then in 2009, SITA launchedAirportConnect S3 Kiosk, theworld’s most compact freestandingmodel, with the smallest footprintof any fully functioning check-inkiosk. These have rapidly becomethe ‘kiosk of choice’ for airlines andairports and this month the 1,000thAirportConnect S3 will bedelivered by SITA.

There has been a 20 per centrise worldwide in the number ofpassengers who check-in at a kiosk.This is expected to continue to rise.

Matthys Serfontein, SITA VicePresident Airport Solutions, said:“Kiosk usage is part of a multi-channel service offering fromairlines and airports. SITAcontinues to work with ourcustomers to develop newfunctionality to make kiosks evenmore useful. We’ve added securepayment processing for additionalsales such as upgrades, localtransport and meals and ourindustry survey shows that 70percent of airlines plan to use kiosksfor sales by 2014. Also, servicessuch as self-baggage tagging andbag check at kiosks now allowpassengers to experience true end-to-end self-service check-in.”

An airport’s position/reputationdepends on communication through

social media, Internet and mobiles. Thatis the result of the Airports CouncilInternational (ACI) Europe recentlyreleased ‘Digital Report 2012’.According to the report, 77 per cent ofEurope’s air passengers now travelthrough airports that are active in socialmedia channels such as Facebookand Twitter. Comparing thesefigures to 2011’s ‘Airports2.0’ report, social media useamong Europe’s airportsincreased by 43 per cent year-on-year.

The report points out that one-third of Europe’s airports either haveor are currently developing a smartphoneapplication. 98.7 per cent of Europe’sairports currently offer Internet access totheir passengers, over half of whichprovide some form of free Internetaccess. The growth trends point that thefuture is bright towards Eastern Europe.In Central Eastern Europe alone, socialmedia usage grew phenomenally — awhopping 800 per cent — over a 12-month period.

The report also highlights the fiveways in which airports are using socialmedia as a communication tool: corporatecommunications, crisis communications,customer service, informal relationshipbuilding and commercial promotion.

Commenting on the latest figures,Olivier Jankovec, Director General, ACIEurope, said: “These latest figures reflectjust how much more direct therelationship between the airport and thepassenger has become. Europe’s airportsare making a wide variety of informationimmediately available on a smartphone orsimilar device, empowering passengers tomake their experience of the airport asinformed and hassle-free as possible.”

Among the various social networkingwebsites, the research makes it evidentthat there is a strong preference for

Facebook over Twitter. It states that 91per cent of airports or airport groups witha social media presence have a Facebookpage while only 65 per cent have aTwitter feed. 45 per cent of Europeanairports on Facebook have moved to thenew ‘Timelines profile’. However, amajority of users see the value in bothmedia, with 56 per cent of airports opting

to have a presence on bothplatforms.

Other social medialplatforms like YouTubehave a wide audience as

2,113,083 verified airportYouTube have been viewed

over two million times. The reportalso informs that an average Google+

user spends 3.3 minutes a month on theplatform, compared to 7.5 hours forFacebook.

Airports across the globe are doingmajor experimentation with technologyand putting more power in the hands oftheir customers through various digitalweapons. Moscow Sheremetyevo airportis a striking example in the sense that inNovember 2011, the airport launched aservice allowing passengers to check-infor their flight, via Skype. The service hasalso been extended to include mobiledevices.

Stuttgart airport in Germany is usingblogs in a unique interactive manner forboth internal and externalcommunication. Helsinki airport inFinland made use of the experience ofeight individuals who were made to traveland report on different airports andairlines. Zurich Airport Observation Deckhas special telescopes that bring in liveuseful information about airport facilitiesand aircraft in view.

The information provides passengersa glimpse of the future and brings to lightthe fact that the value of social media,smartphones and tablet computers,enhancing interaction between airportsand passengers cannot be undermined.

Fly in and out with Facebook, Twitter for company

SUCCESSMANTRA

15 yrs of SITA Kiosksand growth continues

RU D

AGON

/WIK

IPED

IA

It was indeed a miracle for JharkhandChief Minister Arjun Munda to havesurvived the deadly crash at the Bir-sa Munda Airport in Ranchi on May

9, 2012. Technical snags are believed tohave developed in the rear rudder of thechopper that presumably rendered thepilot incapable of ensuring a normal land-ing. Consequently, he opted to expend thefuel in the chopper by hovering in the airbefore descending violently.

But the pertinent question is: howlong could such a threat to life be wardedoff with callous neglect by a section of theauthorities entrusted with the safety meas-ures of VIPs in the state?

VIPs like Dr APJ Abdul Kalam, BJPstalwart Sahnawaz Hussain, MLA Band-hu Tirkey have also had miraculousescapes in the past in Jharkhand whiletraveling in the same chopper.The chop-per, an AgustaWestland 109, was 21 yearsold and, contrary to set norms, was ill-maintained and thus in a deplorable condi-tion. Well-placed sources in the statepolice headquarters pointed out that

before boarding the chopper recently atDumka, the Deputy Chief Minister ofJharkhand, Hemant Soren, had made aterse remark about the deplorable condi-tion of the chopper and questioned itssafety. Senior police officials confided thatthe body of the chopper had developedminor cracks over the years and in thegarb of maintenance these were pluggedby using crude methods.

As recently as April 27, the choppercarrying the Chief Minister had to forceland at Jamshedpur due to inclementweather. But neither the remarks made bythe Deputy CM, nor the threat of a possi-ble mishap, during inclement weather,forced the civil aviation officials fromperforming their duties. The recurrence oftechnical snags, time and again, in theonly chopper hired by the Jharkhand Gov-ernment and its forced landings whiletransporting VIPs on different occasionsis indicative enough of the lapses on thepart of the authorities who are entrustedwith the maintenance of the chopper.

47

P47 P48Only nine helipads inthe country are licensedby the DGCA

UNLICENSED HELIPADSThe Jharkhand CM was luckyto survive e a crash from anill maintained chopper

CHOPPER WOES

FOCUS ON ‘COPTERS


Jharkhand’scopter gambitChief Minister Arjun Munda ofJharkhand was the latest in aline of high-profile victims tohave survived a crash in adecrepit and badly-maintainedchopper, reports DP Sharan.

LUCKY ESCAPE : (Above)A picture of thecrash site and (left) Chief Minister ArjunMunda recuperating in hospital.

Continued on Page 50


FOCUS ON ‘COPTERS

The reason was to reap optimum ben-efits by both the chopper’s provider AryanAviation and authorities concerned —albeit at the cost of precious lives. Thechopper was hired on wet-lease for fiftysecured flying hours at the rate of `1 lakhper hour and hardly ever sent for mainte-nance for want of a stand-by, allegedly toreap the maximum pecuniary benefitsfrom its undisrupted operation.

The Jharkhand government thathired the chopper aimed to ensure itsoptimum utilisation. So each mainte-nance regime, which takes at least 3 to 5days, neither suited the aviation agency,nor the state government, in terms ofcost and time. The non-availability of asecond chopper in Jharkhand and con-straints of time provided enough excusesto the agency for not sparing the chopperfor maintenance. On the issue of buyingits own chopper instead of having a wet-leased one, officials concerned, howev-er, contended that the maintenance costswere high and the state governmentwould have to pay for a permanent crew.The state police, with its own Dhruv hel-icopter, spends around `3 crore on main-tenance annually.

As part of its Legacy of Heroes tour,Sikorsky recently gave 200 underpriv-

ileged children joyrides in its S-92 heli-copters. The women pilots of the chop-pers interacted with the kids and also atewith them. The company also gave thechildren scholarships and health insur-ance. The cities visited by the Legacy ofHeroes tour in India included Hyderabad,Chennai, Bengaluru, Mumbai and Delhi.Before this the tour had been to Malaysia,Thailand, Indonesia and Singapore.

The six-member crew of the S-92conducted briefings to highlight the mul-ti-mission capability of the aircraft duringthe tour, which includes search-and-res-cue (SAR) missions as well as a varietyof transportation missions for accessingoffshore oil and gas rigs, coastal surveil-lance, emergency medical transport andVIP transportation. The S-92 Legacy ofHeroes tour to India had a special signifi-cance, as cabins for the S-92 helicopterare manufactured in Hyderabad.

Sikorsky gives underprivileged kids joyrides

Bell honours heroes of aviation Jharkhand’s copter gambitContinued from Page 47

The American Helicopter Society(AHS) International awarded its annual

recognition for helicopter technologyimprovement to the Eurocopter team thatdeveloped its X3 hybrid demonstrator air-craft. Eurocopter plans to present the X3this summer to civil and military clientsduring a US tour.

The Howard Hughes award is recog-nition of Eurocopter’s successful imple-mentation of the hybrid helicopter con-cept, which uses two turboshaft enginesto power a main rotor, along with twopropellers installed on the tip of short-span-fixed wings. This advanced costeffective, Vertical Takeoff and Landing(VTOL) aircraft has the speed of a turbo-prop-powered aircraft with the abilitiesof a helicopter.

Eurocopter’s X3 bagsHoward Hughes Award

Boeing has won a $486 million contract for low-rate initial produc-

tion of 51 Apache helicopters, accord-ing to the American Department ofDefense. The Apache choppers will beremanufactured in the new Block IIIconfiguration according to the firmfixed price contract. The new choppersare scheduled to be delivered to the USArmy by the end of November 2014.

The Block III modernised Longbowswill be designed and equipped with thelatest communications, navigation, sen-sor, and weapon systems. A Taiwanesedeal worth $172 million to deliver anunspecified number of Apache Block IIIhelicopters was also won by Boeing.This fixed-price contract is scheduled torun through the end of 2014.Interestingly, the Apache is also thefrontrunner for the Indian armed forces’tender for attack choppers. AH-64DBlock III deals are projected to be ablend of re-manufacture and new-buildorders globally.

Boeing bags Apachedeals worth $668million

EURO

COPT

ER

BOEI

NG

Bell Helicopter hasannounced the second

of the Bell Helicopter“Heroes of Aviation”series painting whichpays tribute to the menand women who pre-serve freedom and savelives while using BellHelicopters. The paint-ing was unveiled at theBell Helicopter exhibitduring the annual Marine Corps AviationAssociation (MCAA) 2012 Symposium

and Reunion and theMarine AviationCentennial Celebrationin the USA by JohnGarrison, president ofBell Helicopter. Thepainting pays tribute toMarine Capt. Casey“Porch” Blasingameand his unit who werecalled to help rescue agroup of US Marines

pinned down by the Taliban inAfghanistan in November 2010.


Swiss-madePilatus aircrafthas beenpurchased by anumber ofcountries for itsefficiency andgood performance

AIR FORCE

A SWISS PLANE

TOTRAIN

THEBOYS IN

BLUE

A CLOSE LOOK AT THEGOVERNMENT’S DECISION TOBUY 75 PILATUS TRAINERAIRCRAFT FOR THE INDIAN AIRFORCE BRINGS A NUMBER OFISSUES TO THE FORE, WRITESABHIJIT BHATTACHARYYA, THEFIRST AMONG THEM BEINGOUR INABILITY TO LEARNLEARNING LESSONS FROMUSA, RUSSIA, CHINA ANDEVEN PAKISTAN.

PILA

TUS

52

The Government of India’sdecision to induct 75 Swiss-made trainer jets in the Indian Air Force must havecome as music to the ears of

the pilots of the Indian Air Force whohave been going through a rough patchowing to paucity of basic trainers for thelast few years. Hopefully, things arebound to look up for trainee pilots now.In the long run, however, a serious prob-lem is bound to be addressed andredressed. How does India produce vari-ous types of sophisticated and state-of-the-art inter-continental, short-range andmediu-range ballistic missiles andnuclear weapons but fails to produce abasic trainer aircraft for its rookie combatfliers? Indeed, the very selection of theSwiss trainer once again comes as a grimreminder to the nation of its fault lines indefence preparedness. It is a bad omenfor the nation. Because no country canever dream or aspire to be a superpower by depending wholly andsolely on imported military hardwarethereby giving leverage to alien arms pro-ducers to arm-twist the consumer (likeIndia) during wars or similar crises. Nev-ertheless, it is not the case of this writerto stop the deal but to make an assess-ment of the world scenario as on date.

The “new aircraft” PC-7 Mk-II builtby Pilatus Aircraft Ltd, Stans, Switzer-land, also has three subsidiaries based atthe USA, Australia and Switzerland.Launched in November 1998 with “21stcentury technology”, PC-7 II actually isthe successor of Pilatus PC-21 basic tur-boprop trainer. With its maiden appear-ance on July 22, 2002 (where this writerwas also present) at Farnborough AirShow, the “second development air-craft” unfortunately was “destroyed in acrash at Buochs, Switzerland, on Janu-ary 13, 2005”.

However, according to Jane’s All theWorld’s Aircraft 2011-2012, 25 PilatusPC-21/7 Mk II have been ordered by theUAE on November 17, 2009; and theusers include Singapore (19) andSwitzerland (6). Pilatus Switzerlandfeels that there exists a market for 1000aircraft over a 20-year period and it isconfident of capturing 50 per cent sharethereof. Further, with a reported “30- year life-cycle support cost” itwould be interesting to follow the trajec-tory of the flight of this “basic turboproptrainer” of Swiss origin.

Today’s focus being on the Indian AirForce let us begin with the position inNew Delhi’s western neighbourhood:Pakistan. The comparison is quite stark.

The “new aircraft”PC-7 Mk-II builtby Pilatus AircraftLtd, Stans,Switzerland, alsohas threesubsidiariesbased at theUSA, Australiaand Switzerland


AIR FORCE

Pilatus PC-9

� SEATING CAPACITYOne or two pilots

� MAX TAKEOFF WEIGHT3,200 kg

� RANGE1,537 km

� POWERPLANT1 × Pratt & Whitney Canada PT6A-62turboprop

� FIRST FLIGHT1984

� MANUFACTURING COMPANYPilatus Aircraft Ltd

� PURCHASING COUNTRIESAustralia, Bulgaria, Croatia, Chad,Ireland, Mexico, Myanmar, Oman, SaudiArabia, Slovenia, Switzerland, Thailand,Germany and United Kingdom.

KAI KT-1

� SEATING CAPACITY2 in tandem


� RANGE1,333 km

� POWERPLANT1 × Pratt & Whitney Canada PT6A-62

� FIRST FLIGHTNovember 1991

� MANUFACTURING COMPANYKorea Aerospace Industries

� PURCHASING COUNTRIESIndonesia, Republic of Korea,Turkey and Peru

Beechcraft T-6 TexanII

� SEATING CAPACITYTwo (1 student pilot, 1 instructor pilot)


� RANGE1,667 km

� POWERPLANT1 × Pratt & Whitney Canada PT6A-68turboprop

� FIRST FLIGHT1992

� MANUFACTURING COMPANYHawker Beechcraft Corporation(HBC)

� PURCHASING COUNTRIESCanada, Germany, Greece, Israel,Mexico, Iraq, Morocco and UnitedStates

WIKIPED

IA

WIKIPED

IACO

MPET

ING

CONT

ENDE

RS

53

The Pakistan Aeronautical Complex,Kamra (District Attock), has so far built327 “Mushshak three-seat light plane”with initial production version havingbeen “used for training, communicationsand observation” and logged more thanhalf a million flying hours by 1999.Although initially licence-built version ofSweden’s “Saab MFI-17 Supporter”, Pak-istan appears to have adopted and adaptedwell as “at least half of surviving Pak-istani Air Force Mushshaks have beenupgraded to Super standard by 2009”.

Pakistan first revealed its SuperMushshak at the Dubai Air Show inNovember 1997. The most interestingand important part of Pakistani militaryaviation is that Islamabad has succeededin training its pilots with its own traineraircraft. Thus, 92 aircraft are in use atRisalpur by Pakistani Air Force/Army;36 by Pakistani Air Force and 117 by theArmy. Besides, Islamabad has also suc-cessfully exported 26 craft to the IranianAir Force; eight to the Omani Air Force;20 to the Saudi Arabian Air Force and sixto the Syrian Air Force, thereby enhanc-ing its diplomatic and defence initiativein the user countries. And, that is nomean achievement for a “terror and ter-rorist-epicentre” state of the world.

India’s bigger and stronger neigh-

bour Beijing too appears to have goneahead with its initial foray into basictrainer aircraft 6A in 1957, notwith-standing a disappointing trial thereof.Hence, the modified version followed,with a total of 1796 (all types) built bythe end of 1986 mainly for the PLA AirForce, included in which were over 200for foreign military customers (such asAlbania, Bangladesh, Cambodia, NorthKorea, Sri Lanka, Tanzania, Vietnamand Zambia). And, today unlike theIndian Air Force, the Chinese do nothave to depend on imported machines totrain their rookies in the air.

China aside, South Korea too hascome up with its “basic turboprop train-er/attack light plane” to reduce depend-ence on foreign suppliers, howsoeverfriendly they are. That comes as a signalto India to concentrate on “time-manage-ment” and a “technology-demonstration”formula to take care of the time and costover-run, which constitutes the bane ofIndia’s defence project managementwhich in turn makes the country cease-lessly and sorely dependent on foreignsupplier/manufacturer at the expense ofits own “inefficiency and inferiority”.Thus, Seoul’s Korea Aerospace Indus-tries Limited built KT-1 and KA-1 pro-gramme, launched in 1988, rolled out its

The PakistanAeronauticalComplex, Kamra(District Attock)have so far built327 “Mushshakthree-seat lightplane”. Pakistanfirst revealed itsSuper Mushshakat the Dubai AirShow in 1997

� SEATING CAPACITY2


� RANGE1916 km

� POWERPLANT1 × Pratt & Whitney Canada PT6A-25C turboprop

� FIRST FLIGHTAugust 16, 1980

� MANUFACTURING COMPANYEmbraer

� PURCHASING COUNTRIESAngola, Argentina, Brazil, Colombia,Egypt, Honduras, Iran, Kenya,Kuwait, Mauritania, Paraguay, Peru,United Kingdom, Venezuela

PZL-130 Orlik

� SEATING CAPACITY2


� RANGE2,200 km

� POWERPLANT1 × Pratt & Whitney Canada PT6A-25C turboprop

� FIRST FLIGHTOctober 24, 1984

� MANUFACTURING COMPANYPZL Warszawa-Okecie

� PURCHASING COUNTRIESPoland

TAI Hürku

� SEATING CAPACITYone

� MAX TAKEOFF WEIGHTNot available

� RANGE1,478 km

� POWERPLANT1 × Pratt & Whitney Canada PT6A-68T turboprop aircraft engine

� FIRST FLIGHTForecast for 2012

� MANUFACTURING COMPANYTurkish Aerospace Industries

� PURCHASING COUNTRIESTurkey

Inputs by: Punit Mishra

Embraer EMB 312 Tucano

BRAZILIAN

AIR FO

RC

E

PRZEM

YSLAW “BLU

ESHAD

E” IDZKIEW

ICZ

2.BP.BLOG

SPOT.C

OM


54

AIR FORCE

first craft on December 12, 1991, andmade the first delivery of its products onNovember 7, 2000, thereby keeping thegestation period of the machine wellunder a healthy and manageable 13 years.The South Korean achievement is morepraiseworthy because of the subsequentdevelopment of an improvedversion/model in 2000 and rolling it outin October 2009. Understandably, theKoreans have not only produced for itsown air force but have also exported toAnkara (Turkey) and Djakarta (Indone-sia) thereby enabling it to broaden to athree-dimension expansion of its coun-try’s military, money and technologymarket, apart from flying the flag.

Beyond Seoul, another Japanese avia-tion enterprising is rising. As Tokyo doesnot export its defence hardware (not yet,as on date), the entire inventory is con-sumed domestically. Thus began thedevelopment of Fuji Jukogyo KabushikiKaisha (Fuji Heavy Industries Limited)made T-5 two/four-seat primary trainer in1984 with delivery to the Japan MilitarySelf Defence Force in August 1988.Another interesting and intriguing aspectof Japan’s aviation enterprise is that theFuji F-7 basic turboprop trainer, whichwas intended to replace the earlier versionof its own country’s company, is beinginducted into the Japanese defence forces“in preference to Pilatus-7”, which todayis on its way into the Indian Air Forcehangars as the trainer jet for rookie fliers.

A few words on the past performanceand record of the PC-7 may be in order tounderstand the future possibility, utility,performance and limitations during oper-ational deployment of an imported air-craft by a big user (like India). The air-craft was used for close-air-support by

Iraqi Air Force in the Iran-Iraq war of the1980s and reportedly delivered chemicalweapons against Iranians. In Africa, theAir Force of Chad used the plane to bombrebel hideouts. In Latin America, theMexican Air Force used it to confront theZapatista Army of National Liberation.

The aircraft, however, faced severalmission failures in the past which broughtto the fore a question mark about its qual-ity from time to time. Thus, the SouthAfrican Air Force grounded its entire fleetof PC-7s following a fatal crash on Janu-ary 5, 2008. Apparently, “structural prob-lem” caused the crash. Similarly, theMalaysian Air Force experienced its fifthaccident involving the PC-7 aircraft inMarch 2010 when it exploded in mid-airduring an air show. Mexico and Botswanaair force too appear to have had fatalcrash. Although nothing much can be readabout these mishaps owing to inherentdangers in an air operation, what doescause concern is the inexplicably high rateof air crash in peace times. India, there-fore, will have to be prepared to face andforestall any such eventuality in future.

What then is the solution to theimport-afflicted Air Force of New Delhi?The answer partly lies in learning lessonsfrom the USA, Russia, China and evenTurkey. Ankara, which till recently didnot have much to show off its indigenousaircraft industry, has successfully goneon to make its own basic turboprop train-er “TAI Hurkus”, to at least partly replacethe US-built Cessna T-37 operated by theTurkish Air Force. One must also appre-ciate the fact that the Turkish plannersmade it very clear that the trainer manu-facturing programme was to start with an“eight-month conceptual design phase ofan overall 59-month programme toreplace its SF-260Ds”. The Governmentof India will have to shell out a lot ofmoney for time-bound research anddevelopment projects and may avoidbanking on the “goodwill” or “goodenterprise” of private operators or theforeign suppliers.

Amidst this world scenario, India didmake a fresh beginning with the designproposal for HPT-32 Deepak replacementas revealed at Aero India, Bengaluru, inFebruary 2009. However, as usual, wewere slow to take off as the conceptualdesign had still not been launched offi-cially by 2010. To make matters not-too-bright, the latest adverse media report onHAL’s initiative and enterprise makesthings look as if India is in for a long-haulbefore achieving its self-reliance goal, atleast in basic trainer manufacturing for itsrookie pilots. And that is the crux of theIndian handicap in the air. �

Amidst this world scenario,India did make afresh beginningwith the designproposal for HPT-32 Deepakreplacement asrevealed at AeroIndia, Bengaluru,in February 2009

PROUD POSSESSION: (Above) HPT-32Deepak trainer aircraft; and (top) Pakistan'sSuper Mushshak trainer aircraft.


KUR

USH

PAW

AR/F

LIC

KR

B H

ARR

Y/AC

IG.O

RG

A I R C A R G O & L O G I S T I C S

China links with Chennai

CRUISING HEIGHTS

Opportunities exist for non-

scheduled aircraft operators to

transport goods that are not readily

accepted by regular air operators.

www.cruisingheights.in I June 2012

China Airlines’ Chennai stopemphasizes the rise of the south

Nagpur’s hub was chosen by theUS as part of an export initiative

First Flight is now in Middle EastFrom Bahrain to Saudi Arabia,Kuwait and Qatar

MIHAN gets a firm push

Page>60

Special

Delivery

56 CRUISING HEIGHTS June 2012

LAST IN/FIRST OUT

PRELIMINARY FINANCIAL performancefigures released recently by the Association ofAsia Pacific Airlines (AAPA) showed that AsiaPacific-based carriers in aggregate recorded$4.8 billion in net profits in 2011, 47 per centlower than the record $9.0 billion achieved inthe previous year. The surge in oil prices, and aweak cargo market, contributed to the fall inearnings. Total revenues for the region’s carriersreached $162 billion, 10 per cent highercompared to the $147 billion reported in 2010.Cargo revenues fell by 1.4 per cent to $22 billionin 2011 while passenger revenues grew by 15 percent to $121 billion. Operating expensesincreased by 15 per cent to $155 billion.

The main cause of the increase was a 28 percent surge in fuel costs, to $52 billion. The share

of fuel costs as a percentage of totalexpenses rose by 4 percentage points to34 per cent, from 30 per cent in theprevious year. Non-fuel expendituresgrew by 9.6 per cent to $103 billion.For 2011, Asian airlines’ internationalinternational cargo traffic, expressed infreight tonne kilometres, fell by 4.8 percent. Commenting on the 2011 financialresults, Andrew Herdman, AAPADirector General said, “Asia Pacificcarriers continued to outperform theoverall industry in 2011, with continued

growth in passenger numbers, but profitmargins were squeezed by high oil prices, aswell as the impact of a weak air cargo market.Overall, Asian airlines in aggregate madecombined profits of $4.8 billion, but onrevenues of $162 billion, that represents only a3 per cent profit margin and a poor return oninvested capital.”

Looking ahead, Herdman said, “Airlinesaround the world are still facing a number ofsignificant challenges in 2012, including theeffects of persistently high oil prices, and slowereconomic growth in the major developedmarkets. So far this year, Asian airlines havecontinued to benefit from stronger economicgrowth within the region, seeing further growthin international passenger numbers.”

TRENDSCHAPMAN FREEBORNAirchartering hasstrengthened its specialistOn Board Courier (OBC)product with theintroduction of a newonline tool for trackingshipments globally. Inaddition to receiving regularupdates directly from thecompany’s Cologne-basedOBC team, clients can nowlog in and view real-timeupdates on the status oftheir cargo — wherever itis in the world.

Carsten Volk, ChapmanFreeborn’s global productmanager for OBC services,said: “Our innovativetracking tool has beendeveloped in cooperationwith Awery AirlineSolutions and affords clientsthe opportunity to followurgent OBC shipmentsonline - from the sender tothe recipient, detailing everyarrival and departuremovement in between.Thetechnology helps to makeour high quality and safetransportation service evenmore transparent for thecustomer.”

Chapman Freeborn’sOBC service is a specialisedtransportation solutiontailored to clients’ specificrequirements, including themovement of time-criticalspare parts, automotivecargo, important documents,pharmaceutical products andother urgent shipments.The company has speciallytrained couriers strategicallylocated around the globeand a dedicated On BoardCourier accompanies eachshipment every step of theway, from pick up todelivery direct to therecipient - providing anentirely new standard ofsafety. The entire process isnow fully trackable, withclients receiving continuousupdates regarding theirshipment’s status directlyfrom the OBC team, as wellas via the new onlinetracking tool.

Weak cargo market troubles Asia Pacific carriers

“A trade war over theissue of CO2 trade willdemote the European

aviation industry to thethird league…Refusingthe Frankfurt airport afew night-time takeoffs

comes close to self-mutilation”

Juergen WeberLufthansa supervisory board Chairman

and former Chief Executive at thecarrier's Annual General Meetingcommenting on the night ban at

Frankfurt and the EU-ETS.

THE INTERNATIONAL Air Transport Association(IATA) announced that Michael Vorwerk has resignedand will end his term as President of Cargo NetworkServices Corporation (CNS), an IATA company,

effective 31 July.At the sametime,Vorwerkwill also beleaving hisconcurrentposting as

Executive Director of Cargo 2000 (C2K) which is anIATA special interest group. Both announcements weremade at the CNS Partnership Conference whichopened today in Miami, Florida.

Vorwerk has led CNS and C2K since 2009 whileon a four-year secondment from Lufthansa Cargo. Hewill be returning to Lufthansa Cargo to take up newduties as Director Sales Development Germany &Board Representative Air Cargo Gateway Frankfurt.

“I thank Michael for this three-and-half years ofleadership contributions to the success of CNS andC2K. During that time he has enhanced thestakeholder relationships in both groups to hit manychallenging targets in very difficult economic times.Wewish Michael well in his future role. Michael leavesbehind big shoes to fill,” said Des Vertannes, IATA’sGlobal Head of Cargo.

Change of guard at CNS andCargo 2000

Michael Vorwerk and Alex Popovich

CRUISING HEIGHTS Jne 201258

CARGO

The China AirlinesB747-400F thatdebuted at Chennaion May 16 marked

the beginning of the twiceweekly freighter service byTaiwan’s national carrier onthe Taipei-Kuala Lumpur-Chennai-Luxembourg-Taipei route. The firstLuxemburg-bound flightcarried nearly 50 tonnes ofcargo, comprising electronicitems, automotive parts andconsumer goods while thereturn flight also hadelectronics in addition tomachinery and components.Like many carriers, ChinaAirlines is eager to cash inon the India-China trade. Inthe year of 2010, thevolume of trade betweenChina and India grew to$61.8 billion.

At hand to welcome thefirst China Airlines freighterwere a host of senior stafffrom China Airlinesincluding Brian Chou,Senior Vice President, KKWu, Vice President, Salesand Marketing, Paul Hseuh,General Manager, CargoMarketing and Planning,and HoJo Chang, CountryGeneral Manager, India. It

was amply clear that thecarrier’s management waskeen to ensure the successof the Chennai connection.

Among others, who were atthe launch of the ChinaAirlines services, weredistinguished visitors from

the expatriate community,including David Hsu,Economic Counsellor andDirector, Taipei Economicand Cultural Centre, GeorgeLin, Director, Taipei WorldTrade Centre, Keng Lee,Director, Institute ofInformation Industry. Hsuwas quick to point out thatTaiwan had built up asignificant level ofinvestment in India, despitevery few Taiwanese actuallyresiding here.

Just a few months ago -in March this year - China

Brian ChouSenior VicePresident

The new route viaChennai is veryvaluable for us. If thevolume increases, theairline mightconsider having threeservices in a week toChennai,” .

China linkswith ChennaiTaiwan’s China Airlines is the last of the carriers to touchChennai - barely a couple of months ago Air China toostarted services to the city — and emphasizes theimportance of the south Indian metro as an industrial andmanufacturing hub. A report.


Airlines withdrew its Delhiservices. The $3.5 billionairline with a freighter fleetof 21 aircraft, the carrierhad to stop its freighterservices to the Indiancapital due to poor volumesalthough it continued tocarry belly cargo in itsregular passenger flightscoming from Taipei.Commented Brian Chou,"In the past, Delhi was thehub for us. However, today,it is Chennai which hasemerged as a strong hubdue to the presence of largemanufacturing units,including mobile phones.The new route via Chennaiis very valuable for us. Ifthe volume increases, theairline might considerhaving three services in aweek to Chennai,”he added.

For Chennai AirportDirector, E PHareendranath, the ChinaAirlines services was anindication that the recently-revamped metro airportoperated by the AirportsAuthority of India beingnoticed. Hareendranathpointed out that "thisfreighter service to Chennaifrom Taipei is mainly tocater to the growing airshipment in electronic itemsto the city from Taiwan andmainland China.”

Early indicators pointout that the Chennaitouchdowns augur well forChina Airlines. Said Chou,"The allocation fromChennai was 40 metrictonnes on each flight. Theexport’s focus would beprimarily on electronics,mobiles, pharmaceuticals,leather, textiles, etc. Theimports into Chennai wouldmainly consist ofelectronics goods.”He wenton to add: "This service willprovide shippers morechoices for cargo in/out ofIndia and decrease cargotransit time between EastAsia to India, as well asIndia to Europe.”

In India’s burgeoningcargo market, Chennaioccupies the third position,

trailing behind Delhi andMumbai in annualshipment volumes.However, in terms ofshipment growth, ChennaiInternational Airport is thecountry’s fastest-growingairport for exports andimports, predominantlycomprising electronics,automotive parts, textileproducts and ready-madeclothes and leatherproducts.

Chennai airport handled19,843 tonnes of cargo inthe month of February thisyear. Of the 8,321 tonnes ofimport cargo, 3,131 tonnescomprisedelectronics/electrical items.

Exports were to the tune of11,523 tonnes. A substantialportion of electroniccomponents come fromTaiwan and mainland Chinato serve the needs ofcompanies located in areassuch as the electronicmanufacturing hub ofSriperumbudur.

The initiative highlightsthe importance that is beingattached to the SouthIndian city as a cargo hub.The airport has beenreceiving 36 freighters in amonth and China Airlines isnot the only carrier that waskeen to land in the city. Inthe middle of March thisyear, a B747-400 cargoaircraft of Air China CargoCompany landed in Chennaifrom Shanghai’s Pu DongInternational Airport. Thatwas the first cargo aircraftroute to South Asia andSoutheast Asia launched byAir China Cargo.

The operation of thefreighters have enhancedthe transport capacity of AirChina Cargo into the AsiaPacific market while linkingfirst the two importantindustrial cities of Chennaiand Chongqing andChennai with NorthAmerica, Europe, andJapan and Asia Pacific

destinations using theShanghai hub.

The entry of ChinaAirlines and Air ChinaCargo comes at a verycrucial juncture. A numberof carriers have beeninterested in enhancingflights to the country’ssouthern cities. CathayPacific cargo, for example,has recently started servicesto nearby Hyderabad afterstarting freighter flightsfrom Bengaluru last year.

ACC started the servicesto Chennai as a part of itsplan to fill some of its newmain-deck capacity. Itobtained approval for theShanghai-Chennai sectorand aimed to fly the routethrice a week. Titus Diu, AirChina Cargo’s COO wasquoted saying that ACC hadplanned to send theChennai flight toChongqing. Indeed, thereturn leg of the flight fromIndia to Shanghai doestouch Chonqing. "We cancarry cargo from India, pluswe can feed traffic fromChongqing to ourintercontinental departuresout of Shanghai,”Diu said.Elsewhere in Asia, ACC hasbeen looking at Dhaka,Singapore and Ho Chi MinhCity.

ADDING NEW ROUTES: Brian Chou, Senior Vice-President, China Airlines, while unveiling the carrier’s weeklyfreighter service on the Taipei-Kuala Lumpur-Chennai-Luxembourg-Taipei route.

The Chennaiairport has been

receiving 36freighters in a

month andChina Airlinesis not the onlycarrier making

a beeline for thecity.


CARGO

Over the last fewyears, whilehome-grown aircargo outfits have

started and virtuallywithered away - the mostrecent example being Capt

G R Gopinath’s Deccan 360and Capt Mukut Pathak’sAryan Cargo Express (ACE)— the role of non-scheduledair cargo operators, whooperate chartered flights, isgaining importance.

At the recent IndianBusiness Aviation Expo,Dhiraj Mathur, ExecutiveDirector and Leader ofAerospace and DefencePractice atPricewaterhouseCoopers

India (PWC) pointed outthat India was ready towitness rapid growth in thebusiness aviation sectorprimarily due to thecountry’s geographiclocation and economic

Specially deliveredWith the growth in the economy, non-scheduled aircraft operators have found aniche: they are ready to transport goods that are not readily accepted by regularair operators. A report by TIRTHANKAR GHOSH.

LEAPING FORWARD: AirCharter Service recently flown25 armour-plated cross-countryvehicles from Leipzig/HalleAirport to Damascus.


growth. India’s geographyoffered an opportunity forgrowth of general and non-scheduled aviation due tothe rising demand from thebusiness houses in thecountry. India, according toDirectorate General of CivilAviation records, has seen awhopping rise in thenumber of non-scheduledairline operators: from 36in 2000 to more than 200in 2011.

The number of jets andhelicopters is estimated tojump from 600 in 2011 toabout 1,800 aircraft by2020, according to CaptKaran Singh, CEO of Indo-Pacific Aviation and MD of

BusinessAircraftOperatorsAssociation(BAOA).

While nofigures existof how manyof thisnumbertransportcargo, thosein thebusinessestimate that quite a fewdo. In 2010, for example,cargo traffic by NSOs fromKolkata Airport was highestin the country [9. 6 per centof the total freight upliftfrom the airport, followedby Delhi (7.9), Hyderabad(7.1) and Bengaluru (6.7)].Simply put, there is ademand for more cargothan that carried by regularcarriers. According to CaptKaran Singh, the mindset ofthe cargo industry in thecountry has to change. Theidea of using businessaircraft for air cargo is stilla growing one. However, anumber of companies havestarted using business jetsto transport sensitiveequipment, spares,documents, etc. especiallythose that are time critical.

Despite the high figuresand the potential, the aircharter business as far ascargo is concerned has beenfacing headwinds.According to ShailendraSeth, Director, ChapmanFreeborn, there areopportunities enough inIndia with the rapid growthin the economy. However,the business requiresinfrastructuralsupport and anend to rules thatmake operators goaround in circles.The air charterbusiness betweenIndia and Africa,China and evenEurope and Russiawas growing.Chapman handlesa variety ofairplanes regularly

from the AN-124 to the A310. So fast has thebusiness been growing — in2010, the sector saw threetimes more growth fromIndia than in 2009 — thatChapman opened an officein Mumbai and is looking tostart one in Chennai.

Another internationalcharter service, Air CharterService (ACS), recentlystarted its first Indian officein Mumbai offering bothcargo and passengerservices. Said TonyBauckham, ManagingDirector, “India is a hugeemerging market and theninth largest economy inthe world. We have beenplanning this office openingfor some time now as wealready have a strong clientbase here and felt that alocal presence was essentialto further grow our marketshare... Mumbai is one ofthe top ten centres ofcommerce in the world, andso was the stand outcandidate for the office’slocation.”

Market-wise aircraftmanufacturers too, speak ofthe growth potential ofIndia. Said Jose EduardoCostas, VP-Sales andMarketing,

Embraer ExecutiveJets, Asia Pacific, onthe sidelines ofIndia Aviation 2012,the country’spremier airshowheld every otheryear at Hyderabad,“India, I would say,is the second mostimportant market inAsia and will drivethe growth over the

next ten years.”The constant refrain

from the handful of NSOshas been the lack of supportfrom government agenciesthat provide infrastructuralsupport. They have beendemanding that thefacilities provided toscheduled cargo operatorsshould also be provided tonon-scheduled operations.

Initiatives, however,have been seen over thepast few months. At the endof last year, for example,the first dedicated air cargoservice was started in theNorth-East of the country, aregion of low connectivity.The service, operated byRudra GTL Aviation Pvt.Ltd, started with flightsfrom Kolkata to Imphal.Incidentally, Rudra GTL’sroutes stretch from onecorner of the North-East tothe other connectingKolkata to Guwahati,Imphal, Agartala andBagdogra. The carrier haswet-leased two ATR-72aircraft for the flights, eachwith a capacity of seventonnes. According toManosij Roy, Director ofRudra GTL Aviation, “Themarket is a huge and

untapped one andto prove it we havegot bookings forthe next year.”

On the otherside is Naki AirCargo, from faraway Miami in theUSA. Based inFlorida, Nakiispreparing to startall-cargo airservice directlyfrom the southern

J Eduardo CostasVP-Sales & Marketing,Embraer ExecutiveJets, Asia Pacific

“India, I wouldsay, is thesecond mostimportantmarket in Asiaand will drivethe growth overthe next tenyears.”

Vadim FeldzerPublic Relations andCommunicationsManager, Dassault

Regulations andInfrastructureare the mainissues that arerestricting thegrowth of general aviationin India


coastal city ofVishakapatnam to Dubai.The new service, accordingto Capt Rajan Nair, COO,“will be of enormousbenefit to localmanufacturers, and othershippers, who currentlyhave to move their goodsthrough several distantairports in order to get tothe UAE, or to connectwith international aircargo flights todestinations in Europeand North and SouthAmerica.” Vishakapatnamis home to one of thecountry’s leading sectors,pharmaceutical, and theIT industry based inAndhra Pradesh. Inaddition, the region ishome to a large expatriatepopulation in the UAE.

Capt Nair informedthat Naki Air was aleading, innovative charteroperator that specialisedin establishing new cargoand passenger servicesthat were customised tomeet the needs of itscustomers. In India, it willbe offering services inconjunction with a UAE-based air cargo operator.It has the capacity toutilise either A300-600 orB 727-200 freighteraircraft, depending on the

cargo needs of customers.The carrier’s operationwill be able to connectwith major long-haulcargo carriers to provideseamless connections toEurope and NorthAmerica, and to provide aglobal reach for itscustomers.

According to HerculesAviation’s Sujeen Paulose,though there was a greatdemand for air cargocharters, these were goinglower because of theinfrastructure. He felt thatthere was a great need forX-ray machines that couldtake care of outsizedcargo. Also, goods couldnot be delayed at theairport — such delaysfrustrated NSOs. He alsomentioned that since mostof the airports in thecountry were slot-based, asmall delay of 10 minutescould lead to the diversionof flights.

Another manufactureralso at the India Aviationshow was the FrenchDassault showcasing itsFalcon 2000s. Giles Gautier,Vice President (Sales andMarketing) and VadimFeldzer, Public Relationsand CommunicationsManager, were vocal aboutthe issues restricting thegrowth of general aviation inIndia. They pointed out that“regulations andinfrastructure” were themain issues “becausecustomers will need a biggerinfrastructure… Chinastarted behind India butthey are progressing veryfast”.

There are 150 airportsin India, which arecapable of handlinggeneral aviation aircraft.However, there is asignificant variation in thelevel of infrastructure andfacilities available at theseairports. Aviationinfrastructure capable ofhandling big commercialjets is not readily availablein most of the Tier II andIII cities in the country.

India is ready towitness rapid growthin the businessaviation sectorprimarily due to thecountry’s geographiclocation andeconomic growth.

WITHOUT WINGS: Aryan Cargo Express, the domestic air cargo operator, had to close down its opera-tions due to various reasons.

Dhiraj MathurExecutive Director,PricewaterhouseCoopers

Specialised charter servicesEven as this issue ofCruising Heights wasgoing to press, the kindof specialised cargocharters mentioned inthe story were takingplace.

Air Charter Service(ACS), one of theleading operators ofcargo and passengercharter flights, recentlyflew out vehicles fromLeipzig/Halle Airportto the Syrian capital,Damascus.

With the work ofthe international UNobserver missionbecoming moredangerous in Syria, AirCharter Service tookdelivery of 25 armour-

plated cross-countryvehicles atLeipzig/Halle Airportand transported themto DamascusInternational Airport sothat the UN monitorscan move about assafely as possible in theprevailingcircumstances.

Two A300 cargoplanes and aMcDonnell DouglasMD-11 were used toship the items.PortGround, theground services andfreight- handlingcompany atLeipzig/Halle Airport,carried out the loadingwork.


After a period ofprolongedhibernation, theunder-construction

Multi-Modal InternationalHub Airport at Nagpur orMIHAN in the centre of thecountry has once againaroused interest among aircargo stakeholders. MIHAN isa mega project spread over4,354 hectares and comprisestwo parts: the internationalairport that would act as acargo hub and a SpecialEconomic Zone. The airport isbeing planned on 1364hectare. A parallel runway, 60metres wide and 400 meterslong is being built to facilitatelanding of large cargo andpassenger planes. The airportterminal will have a capacityof parking around 100 planesat a time. Once theinternational airport startsoperations, it will handle870,000 tons of cargo andcater to 14 million passengersa year.

The boost to the projecthas come from a ratherunexpected source: the USConsulate in Mumbai. In

2010, the US governmentdecided to focus on Nagpuralong with two other Tier-IIcities of Ahmedabad inGujarat and Chandigarh in thenorth as part of its NationalExport Initiative. Theinitiative’s aim is to doubleexports to the USA by 2015and was taken up following adirective from the WhiteHouse to explore markets inTier-II cities of the country.The cities were chosen aftertheir economic growth wasgauged. The US, according toconsulate officials, expectstrade with India to cross the$50 billion dollar mark in thecurrent year, a small leapfrom last year’s figure ofaround $48 billion.

Nagpur has assumedimportance as a destinationfor investments in logisticsand pharmaceuticals: in fact,the two sectors are beingprojected by the US consulatein Mumbai to Americancompanies for futureinvestments. According toRobert Carlson, US Consul forPolitical and EconomicAffairs, who was recently in

Nagpur with RichardRothman, US CommercialConsul from Mumbai,Nagpur’s geographicalposition and the fact thatMIHAN was underconstruction, were reasonenough for pharma units toset up manufacturing plants.According to the EconomicSurvey for 2010-11 ofMaharashtra, the MIHANproject will attractinvestments worth $20 billionin the next five years andgenerate 1,20,000 direct jobs.

The city could become thepharma hub in the nearfuture. In a recent move,pharma major Lupin has beenallotted land in the MIHAN-Special Economic Zone.Carlson was reported sayingthat the proposed cargo hubcould be ideal for shippinglow volume, high value goodslike pharmaceuticals. Drugscould be transported by airthrough the air cargo hub andthat would help the sector togrow in Nagpur. In addition,there were moves to set upcold storages in the area.

Lupin has already started

the process for setting up anew state-of-the-artformulation manufacturingfacility. Commenting on thelocation for the Greenfieldproject, Lupin’s ShamsherGorawara, Head - CorporateCommunications said thatNagpur was chosen“specifically because of itsstrategic proximity to keymetros as well as internationalaviation routes. We are happyto be here at MIHAN and tobe able to contribute to thedevelopment of the localeconomy”.

The interest in Nagpur’sMIHAN project by the USofficials came after the visit ofthe British Minister for TradeInvestment and Business wholed a business delegation tothe city in 2009. The minister,Mervyn Davies, pointed outduring his visit that Nagpurwas one of the engine roomsfor India’s growth. “UK firmsshould look beyond theobvious destinations of NewDelhi, Mumbai and Bangaloreand explore the potential ofemerging cities such asNagpur”.

MIHAN gets a pushNagpur's Multi-Modal Hub hasbeen chosen by theUS Consulate inMumbai along withtwo other Tier-IIcities ofAhmedabad andChandigarh as partof its NationalExport Initiative.

GREAT FUTURE AHEAD: The under-construction Multi-Modal International Hub Airport or MIHAN at Nagpur.


CARGO JOTTINGS

First Flight opens office in Bahrain Domestic and international courier company First FlightCouriers recently launched its Bahrain office. The decision tolocate in Bahrain reflects the kingdom’s established position as aregional logistics and transportation hub. Strategically located atthe heart of the Gulf, Bahrain has long been considered thegateway to the region, with easy access to the large economies of

Saudi Arabia, Kuwait and Qatar. Withexcellent transport infrastructure, andthe causeway linking Bahrain to Saudi

Arabia, Bahrain’s logistics industry has been growing fast inresponse to increasing demand from businesses. The Kingdomhas made, and continues to make, significant investments in itslogistics infrastructure, and the industry is set to flourish in thecoming years as cargo volumes in the Gulf increases.

Kamal bin Ahmed, Minister of Transportation and ActingChief Executive of the Bahrain Economic Development Board,said: “Transport and logistics play an important role in oureconomy, not just through the jobs that they create directly, butby the way that they facilitate trade across Bahrain and the widerMiddle East.”

Said Johnson Mooda Thomas, Managing Director of FirstFlight Couriers (Middle East) commented: “There is very strongpotential for growth in the Middle Eastern market, and inparticular the trillion-dollar Gulf economies. With the shortesttravel time between its seaport, airport and the logisticsprocessing zones of anywhere in the Gulf, we think that Bahrainoffers us the best location from which to access that opportunity.”

Naki Air Cargo unveils plans for India Naki Air Cargo is preparing to start all-cargo air servicedirectly from Vishakapatnam, India, to Dubai, the UAE. Thisnew service will be of enormous benefit to localmanufacturers, and other shippers, who currently have tomove their goods through several distant airports in order toget to the UAE, or to connect international air cargo flightsto destinations in Europe and North and South America. Thenew air-cargo service will be of major economic benefit to

exporters in Vishakapatnam, home to one of India’s leadingpharmaceutical industrial sectors, as well as the burgeoningIT industry based in Andhra Pradesh as well as the hugeexpatriate population living in the UAE, who regularly needto ship cargo home.

Naki Air Cargo will be offering this service in conjunctionwith a UAE based air-cargo operator, and has the capacity toutilise either Airbus A300-600 or Boeing 727-200 freighteraircraft, depending on the cargo needs of its customers. NakiAir Cargo’s operation will be able to connect with major long-haul cargo carriers to provide seamless connections toEurope and North America, and to provide a global reach forits customers.

Lufthansa Cargo: Best European cargo carrierLufthansa Cargo stood out once more as the best Europeancargo carrier at the “Cargo Airline of the Year Awards”. As inprevious years, thousands of international forwarders againvoted for the carrier as the best of Europe’s cargo airlines. Atthe Gala Awards night held in London, Thomas Egenolf,Director Italy & Malta, accepted the award on behalf ofLufthansa Cargo as well as additional accolade as best cargocarrier on Asia/Pacific routes.

The British Air Cargo Media Group has beenconferring the coveted awards for 29 years.

“This year Lufthansa Cargo has had tocontend not only with a general

market slump, but also thedamaging news of theintroduction of

SkyCargo moves horses for Queen’s jubilee Two Emirates SkyCargo special freighter charters toucheddown in the UK, carrying a record cargo of over 100 horses.The first shipment of 70 horses, which touched down at the endof April, was the largest number ever transported by EmiratesSkyCargo on a single freighter flight.The second flight arrived two dayslater carrying 42 horses.

The horses of the Royal Cavalry ofOman were flown from Muscat toStansted on the carrier’s Boeing 777freighter aircraft for the DiamondJubilee Pageant, which took place inMay at Windsor Castle. The DiamondJubilee Pageant is a major eventmarking The Queen’s DiamondJubilee.

“With our Dubai hub now a majorplayer in the world of horse racing, wehave gained considerable experiencein the care and transport of horses andfly hundreds across the globe every year,” said Hiran Perera,Emirates’ Senior Vice President - Cargo Planning & Freighters.

SkyCargo bucks the global trend and brings inprofits: The Emirates Group announced its 24th consecutiveyear of profit and companywide growth amidst unprecedentedeconomic pressures and record high fuel prices. The companyposted a AED 2.3 billion ($ 629 million) net profit.

Revenue contributed by Emiratesairlines reached a record high of $17bnup almost 15 per cent on the 2010-11financial year. This, despite the risingcost of jet fuel hitting the airline'sbottom line, with profit significantlylower than the previous year, at $409million.

However, bucking the industrytrend, 2011-12 has been a strong onefor Emirates SkyCargo with revenuesof $2.6 billion, an 8.4 per centincrease on last year on account of anincrease in freight tonnage and freightyield per Freight Tonne Kilometre(FTKM) which rose by 5.4 per cent.

SkyCargo's tonnage increased 1.7 per cent to reach 1796thousand tonnes.

THE TRANSPORTER: Horse stalls ready for loading onan Emirates SkyCargo Boeing 777F at Muscat for theflight to the UK.


TNT Express wins prestigious award TNT Express wasrecently selected bycustomers as thewinner for the “BestService LogisticsProvider’ of the yearat the LogisticsWeek Awards 2012.The award under the ‘Users Choice’category recognisesTNT for excellence in

operational performance, customer delight and changereadiness among other parameters.

Blue Dart ushers profits in Q1Blue Dart recently declared its financial results for the firstquarter (Q1) ended March 31, 2012, at its board meeting heldin Mumbai. The company posted `29.08 crore profit aftertax for the quarter ended March 31, 2012. Income fromoperations for the quarter ended March 31, 2012, stood at`410.91 crore, an increase of 22.17 per cent over thecorresponding quarter of the previous year.

Finnair connects to ChongqingFinnair, the first carrier to open a direct flight route betweenEurope and China, has started four flights a week toChongqing. The new route is a logical next step in thecarrier’s strategy of offering the shortest connectionsbetween Asia and Europe via Helsinki.

Finnair is flying Airbus A330 and A340 aircraft on theroute, which takes eight and a half hours. In addition to fourflights per week to Chongqing, in China Finnair flies daily toBeijing, Shanghai and Hong Kong from Helsinki, the mostgeographically logical transfer point for connecting withmore than 50 destinations in Europe.

Cathay starts freighters from Hyderabad Cathay Pacific has announced its expansion with a twice-weekly B747-400F service to Hyderabad’s Rajiv GandhiInternational Airport (RGIA). This development will makeCathay Pacific the first airline to offer air cargo serviceslinking Hyderabad with Asia, South Pacific and the westcoast of North and Latin Americas. RGIA’s cargo terminal is the country’s first modularintegrated cargo facility spread over an area of 14,330 sqmtrs with a capacity to handle 150,000 metric tonnes ofcargo annually. The terminal also has the only dedicatedpharmaceutical handling facility, “The Pharma Zone”, inIndia that offers a truck-dock to airside temperaturecontrolled environment for handling pharma products.

EARNING LAURELS : Members of TNTExpress receiving the award.

HEALTHY DEBATE: Panellists putting their views in the luncheon meet.

a night-time ban on its busy Frankfurt hub. Undeterred, theGerman carrier has continued to outpace its rivals,particularly in Asia and Europe,” stated Air Cargo NewsManaging Director Nigel Tomkins.

Thomas Egenolf emphasised that the award was aboveall an incentive to continue convincing customers bydelivering the topmost quality. At the London presentationceremony, he reaffirmed that the air cargo industry was andremained a highly competitive business. Lufthansa Cargo’squality has also won recent acclaim from HellmannWorldwide Logistics. The global logistics provider presentedits European Award to the Lufthansa airfreight subsidiary inWiesbaden. Hellmann branches across Europe hadevaluated cargo airlines on the basis of six criteria, on whichLufthansa Cargo outperformed its globalcompetitors.

Logistics will be the business of the future The Air Cargo Club of Delhi’s monthly luncheon meet wasunusual this time around. The occasion normally seesspeakers unrelated to the sector suggesting ways to enhancethe quality of life. This meet, however, saw industry stalwartsas guest speakers: Tushar Jani, erstwhile chairman of BlueDart Express and currently Group Chairman of Cargo ServiceCentre (CSC) and Radharamanan Panicker, Group CEO,CSC. They spoke on “How small, medium-sized freightcompanies can scale up”.

Tushar Jani provided an earthy flavour to his talkdwelling on the huge opportunities available in India, wherewe have over 1.5 million truck operators and more than15000 freight forwarders. He held out a few points of advicefor the Indian freight forwarding community:

Learn how to give up powers and delegate down the line.Understand the concept of ownership versusmanagementGet out of the old mindset and the fixation with big cities.Look at Tier-2 cities, like Amritsar, Indore, Patiala,Itanagar, Guwahati, etc. are going to become increasinglyimportant for the logistics business in the near future.He cited Shashi Kiran Shetty of AllCargo Global as aninspirational figure “having started as a clerk in ashipping line, his organisation today has presence in 98countries”.

APPOINTMENTSIBS GETS NEW CFOIBS Software Services,leading provider ofnew-generation ITsolutions to theglobal travel,transportation andlogistics industry,

has appointed VikashSureka as its Chief

Financial Officer. Hewill head the finance,legal, company affairsand administrationfunctions of IBSoperations worldwide.Vikash Sureka

66

GLOBETROTTING

In a bizarre incident, American Airlinessued a former Flight Attendant forreleasing confidential information aboutairline passengers on his blog. The com-pany filed the suit, NBC reported, alleg-ing that Gailen David, a former FlightAttendant for the airline, published pas-senger information — including names,dates of flight, and flight destinations —on his blog, which is a violation of Amer-ican Airline’s confidentiality policy.

Bruce Hicks, a spokesman for Amer-ican Airlines, told The Daily Caller thatDavid was fired in March for violating

the airline’s privacy policy. “The travelinformation of American Airlines’ pas-sengers is regarded both private and con-fidential, irrespective of their relation-ship to the company,” Hicks said in anofficial statement. David had also madeallegations that airline executives weregiven precedence over paying customers,even bumping passengers that hadalready purchased their tickets. The air-line denied these allegations.

A woman caused a health scare thatgrounded a Delta Airlines flight atChicago’s Midway airport. Lise Sieverswas on her way back home from Africawhen she noticed the rash. Consideringthe recent outbreak of monkeypox in theregion, Seivers thought that she hadcaught monkeypox. Following the inci-dent, The Center for Disease Controlwas alerted, giving officials enough timeto prepare for the ensuing investigation.After properly reviewing the case, it wasdetermined that nothing outrageouslyserious was taking place.

A pilot during a dismissal hearingadmitted that he put passengers’ lifein danger during a furious cockpitrow with his co-pilot. Under cross-examination, Captain Stephen Bird,who is in his 50s, was asked if theargument had potentially put his Fly-be passengers in danger, as his wholeattention was not on flying the plane.He replied, “Of course it did. It was adistraction.”

It all happened when CaptainStephen Bird allegedly called FirstOfficer Stephen Akers names andthreatened him — while Akers alsoabused him with ‘F’ word.

Captain Bird, of Northam,Devon, told the tribunal that banterwas common between Flybe pilots,many of whom are ex-military. Thecaptain said the comment was clearlyfull of beans and he did not realiseformer RAF Squadron Leader Akersfound it derogatory, but he later apol-ogised. When the flight encounteredturbulence, Akers urged Captain Birdto avoid dark clouds for safety rea-sons. Later, Flybe sacked the experi-enced pilots saying the massivebreakdown was a potential safetyrisk to crew and passengers on theExeter to Malaga flight.

CONFUSION ONBOARDPrivacy concerns

Playing havoc


Believe it or not, a man ofOrange County, US, alreadyfacing a charge of illegally car-rying a gun was arrested by

Federal Agents after he told JetBlueemployees that he sneaked a weapononboard the plane. Jomoy Stevens wasonboard a JetBlue flight that left Orlandoand was headed to Puerto Rico when aFlight Attendant pointed out his large

gold necklace and asked if he was afraidsomeone would steal it. Stevens then puthis hands by his waist and pointed that hehad a weapon.

The Flight Attendant told Stevens hecouldn’t bring arms on the plane, askinghim if he had one, and Stevens said,“Yes.” The Flight Attendant then toldStevens that passengers needed specialpermission to bring a weapon onboardand marvelled how he got a hold of theweapon on the flight. Stevens replied, “Ismuggled it through the Transportation

Security Administration (TSA).” The employee apprised the pilot,

who returned to Orlando because ofthe possible threat. When the air-

craft landed in Orlando, noweapons were found on

Stevens or in the plane.Federal prosecutors in

Orlando, US, filed acriminal complaintagainst Stevenscharging him withmaking false infor-mation or threatsconcerning an air-craft. Stevens didnot have a weaponspermit, a Sheriff’sOffice, OrangeCounty, US, said.

A maniac pretender


Former Spice Girl Victoria Beckhamlanded herself in trouble after she posedfor a picture in a crew-only seat on aCathay Pacific flight from Hong Kong.Victoria wrote, “Cabin crew preparefor landing! Welcome to Beijing!! Xvb.” She posted a photograph of her sit-ting in one of the crew seats and posingwith the phone for the public addresssystem while an air hostess sitting nextto her drew a goofy facial gesture.

A spokeswoman for Cathay Pacificairlines told the Associated ForeignPress, “It was inappropriate as the crew

seats are only forthe cabin crew andpassengers shouldnot be allowed totouch any of theaircraft equipment.” Sheadded that the picture was nottaken at any critical stage of the flight,such as take-off or landing. However,The Hong Kong Standard newspaperreported that Beckham, wife of Englishfootball star David Beckham, had beencriticised on Internet forums for puttingthe flight’s safety at risk.

Please don’t disturb! An Arizona man filed a complaint with police saying

a Flight Attendantrudely woke him up

by tapping hisknee with a mag-azine. KevinJohnson, 37, toldI n d i a n a p o l i sAirport police,US, that he wassleeping on achartered Mil-lion Air flightas it taxied tothe gate, when

the Flight Atten-dant struck him on the knee to wake him up, The Indi-anapolis Star reported. Johnson said as he slept and theplane taxied to the gate, he was rudely interrupted by aFlight Attendant, according to a police report. OfficerRicky Seconds wrote in the police report that Johnson hadno physical signs of injury, no complaint of pain and noparalysis from the magazine.

Acting — according to his ageA former flight attendant was arrestedafter police said hetried to steal an air-plane from theCompton/Wood-ley airport inLA county, US.According toKTLA website,Troy DanielLong is ind e t e n t i o nafter tryingto steal aplane at gunpoint some time ago.

Police stated that Long allegedly got into the office at

the Compton airport and took the keys for an airplane andwhen staff confronted him, he threatened them at gun-point. The staff at the airport then called the police, whoupon arrival noticed that the plane had not left. The two-seater Cessna 152 was still on the tarmac and lurchingback and forth, according to Lieutenant Hocking of theLos Angeles Sheriff’s Department.

In the meantime, deputies surrounded the plane andLong turned off the engine and exited without incident.Later on, he was taken into custody by the FBI, accordingto KTLA, on suspicion of airplane piracy and taken to theFederal Metropolitan Detention Center, US.

Saint in the making In a bizarre incident onboard, traveller RothsteinWilliams took offence during a BA trans-Atlantic flight

when thewoman flightattendant hewas working

with asked himto collect some

glasses. Following theincident, Williams

appeared before an employ-ment tribunal in Reading, Berks,

UK, where he sued BA for dis-crimination on religious grounds.

The story goes like this: AnEmployment Tribunal Judge found outthat the cabin crew member ended herinstruction with the kindness “Dar-ling” instead of using his name. And itcontributed to a bigger dogfight

between the two. Williams, aged 42 years,told the jury that he considered the term derogatory andadded that not using his name offended his religious belief.

However, Judge Hill told Williams that his claimscould not be heard by a tribunal because he could notprove that he had been discriminated against. During apre-hearing review of his case, Tribunal Judge JessicaHill ruled that his claim did not have any legal basis andshe rejected it.

A front-seat driver

As a result, passengers werefreaked out, particularly sinceofficials were tight-lipped aboutthe situation. However, after twohours of patiently waiting to seehow the scenario unfolded, theywere allowed to leave the planeand return to their monkeypox-free lives.


SNIPPETS

AI, Asiana Airways enters code-share AIR INDIA recently entered into a code-share agreement with

Asiana Airwaysto provide directc o n n e c t i v i t ywith Seoul. AirIndia presentlyhas code-sharewith 12 worldairlines and withAsiana, itproposes toexpand the code-share agreementto freely include

additional sectors on each other’s network, based onconnectivity needs and approvals from the regulatoryauthorities.

Code-share is a business arrangement where two or moreairlines share the same flight. A seat can be purchased on oneairline but the flight is actually operated by a cooperating airlineunder a different flight number or code.

“As per the agreement, which would be finalised forimplementation at the earliest, both Air India and AsianaAirways would share code on the flights operated by each otheron the India-South Korea (Seoul) and vice versa sectors on afree flow basis,” an Air India official said. The required testingsystem for such code-share cooperation would begin at an earlydate, he added.

Asiana Airways would also explore opportunities to fly tomore destinations in India, subject to regulatory approvals.Both carriers are also preparing to integrate their Frequent FlyerProgrammes (FFP) for mutual benefit to allow a passengerflying Asiana to earn points on his or her Air India FFP and vice versa. Asiana flights would also operate under an Air Indiacode and vice versa.

Jet wins travel award JET AIRWAYS was adjudged the Best Airline-Business/FirstClass (Indian) at the prestigious Lonely Planet Travel Awards2012 which were held at Mumbai. Vice-President-PassengerSales (India), Jet Airways, Sonu Kripalani received the awardon behalf of the airline.

This award, which is based upon reader’s response studyconducted through an online poll and magazine, seeks torecognise and honour the best in class destinations,organisations and service providers based on an objectivestudy conducted by Lonely Planet.

Fairmont ties-up with Jet: As part of a new marketingcampaign by Fairmont Hotels & Resorts and Jet Airways,guests and members of the hotel’s guest recognitionprogramme, Fairmont President’s Club, will have the optionof earning airline miles in Jet Airways’ frequent flyerprogramme, JetPrivilege. Under this launch offer, from May7 to August 6, 2012, guests at Fairmont can earn triple milesranging from 500 miles per night to a maximum of 2,000miles per stay.

“India is a dynamic, international market, and with ourentry into Southeast Asia with the upcoming opening ofFairmont Jaipur, we see this as both a timely and strategicaddition to our roll of airline partners,” said Serge Simard,

SpiceJet ushers in international routesLOW-COST carrier SpiceJet will now be expanding itsoperations in a big way and flying to six new internationaldestinations. The Kalanithi Maran-owned airlines, whichcurrently operates 14 international flights a week, willwitness a five-fold increase with the addition of 63overseas flights per week to its schedule this season.

The budget carrier, which currently flies to Kathmanduand Colombo, will soon add destinations such as HongKong, Guangzhou, Male, Kabul, Dubai and Bangkok to itsschedule.

“We have okayed SpiceJet’s requests for overseasflights. They are supposed to begin operations from thecurrent summer schedule as we understand,” a seniorofficial of the Civil Aviation Ministry stated. Flying tomore international destinations can help the airline

SPREADING ITS WINGS: SpiceJet will witness a the addition of 63 over-seas flights per week to its schedule.

DOMESTIC AIRLINES


Invision Air launches unique programme WITH the recentlaunch of InvisionAir, entrepreneurs,business executivesand other discerningflyers now haveaccess to theconvenience andcomforts of a fleet ofbrand-new businessjets equipped withthe latesttechnology and

safety features. Invision Air gives the privileged travellerfreedom from the schedules of commercial airlines, the gift ofprecious time saved and an opportunity to fly in completeprivacy, arriving refreshed and rested.

With an eye towards the fast-growing business aviationmarket and keeping the needs of modern high-end business andleisure travellers in mind, Invision Air now launches its JetCard membership programme. Invision Air’s Jet Cards allowmembers access to business jets at low initial investmentsvarying from `33.75 lakh for 25 hours to `1.2 crore for 100hours of flight time. The Jet Card membership programmeoffers flexibility and price advantages to regular committedfliers. It is also an excellent choice for owners of privateaircraft who need access to a high quality service while theirown aircraft are under maintenance or being used bysomeone else.

Commenting on the launch, Vinit Phatak said, “Using a JetCard provides all the primary benefits of owning a jet withoutthe high investment and headaches. We have structured ourprogrammes at a price point similar to a three-series BMW/C-Class Mercedes, five-series BMW/E-Class Mercedes, and aseven-series BMW/S-Class Mercedes; so if you can afford tobuy one of these cars, you can afford to fly in a private jet.”

Regional Vice-President, Africa andIndia, Fairmont Hotels & Resorts.

Commenting on the partnership,Sudheer Raghavan, Chief CommercialOfficer, Jet Airways, said, “Thispartnership positions us among the leadingairline frequent flyer programmes in Indiawith the high value it offers members andthe wide range of product choices. Thisalliance will allow JetPrivilege membersto enjoy several unique benefits in selectcities across the globe.”

Introduces fourth daily service toDubai from Mumbai: Jet Airwaysenhanced its connectivity with theUnited Arab Emirates, through theintroduction of a fourth daily servicebetween the two financial hubs ofMumbai and Dubai. This is the fourthdaily frequency being introducedbetween the two cities and is expected to

provide guests with the convenience of an additional noonservice. The new service will complement the three flightsalready being operated by Jet Airways on the high demandMumbai-Dubai route.

With four flights to operate between Mumbai and Dubai,business and leisure customers of Jet Airways now have awide choice of timings throughout the day. The flights areconveniently timed to connect with Jet Airways’ industry-leading domestic network and fast-growing network to SouthAsian Association for Regional Cooperation/Association ofSoutheast Asian Nations points. The airline also operatesdaily direct flights to the Emirate of Dubai from Chennai,Delhi and Hyderabad, which makes the additional flight fromMumbai to Dubai the seventh daily direct service on thissector. The introduction of this new additional daily servicefrom Mumbai to Dubai will further strengthen Jet Airways’presence in the Gulf.

Resumes flight bookings with MakeMyTrip: Jet Airwaysrecently resumed its services with online travel servicesprovider MakeMyTrip. “MakeMyTrip remains committed toproviding comprehensive product offerings to our customersand we are pleased to inform that Jet Airways has resumedsale of tickets on our portal,” MakeMyTrip COO and Co-founder Keyur Joshi said in a statement.

increase its aircraft utilisation time, which at present is at12 hours a day. In addition, SpiceJet will take delivery offive Boeing 737 aircraft this year increasing its fleet from32 at present to 37 by year end, which involves that itopens up more routes to deploy these planes.

Expands network in South: SpiceJet recently haslaunched direct flight services from Kozhikode to Chennai,Bengaluru, Hyderabad and Thiruvananthapuram.

The carrier has introduced flights from Calicut toBengaluru and Chennai, and also started services on theHyderabad and Thiruvananthapuram routes. “SpiceJet isdelighted to announce the addition of Calicut into itsexisting network of domestic destinations. Calicut is one ofthe major cities in Kerala and by connecting it with majorcities across the southern region, we try and give moreoptions for affordable and comfortable travel to the peopleof Calicut,” SpiceJet CEO Neil Mills said.

Director General Civil Aviation (DGCA), BharatBhushan, said that SpiceJet would be operating Boeingaircraft as well as the latest Q400 NextGen turbopropaircraft from Bombardier. Bhushan said, “SpiceJet is one ofthe most exciting entrances into the civil aviation sector inIndia. Apart from being a very successful airline it isindeed a gratifying fact that is reaching out to some of themost difficult area and to some of the less serviced areas.”

SpiceJet to perform better, says HSBC report:SpiceJet likely to perform comparatively better than itscounterparts, according to an HSBC research report.“SpiceJet has been the largest beneficiary of the troubles ofKingfisher. We expect this will continue,” the report said.

“Given our presumptions, we estimate FY 2013 to be afar better year than FY 2012, but still not bankable. Weexpect losses to continue in Q4 FY 2012. However, weexpect the yield performance to hold up better this timethan would have been the case with Kingfisher Airlinesoperating a full schedule,” the report said.

BUSINESS AS USUAL: Vineet Phatak of InvisionAir is all set to provide discerning flyers accessto brand-new business jets.

IN THE LAP OF COMFORT: Passengers seated ina jet airlines plane enjoying the comfort of beingwith an award winning airline.

VIMANAVARTA.COM

SNIPPETS


AirAsiaX creates record load factor AIRASIA X recently announced another load factor record in thefirst quarter of 2012 with the handling of 0.69 million passengers,a growth of 7.5 per cent over the same quarter in 2011. Thisexceeded a capacity increase of 5.5 per cent to 4.5 billionAvailable-Seat-Kms (ASKs), which was achieved with the sameaircraft fleet of nine Airbus A330s and two Airbus A340s, andtempered by the suspension of flights to Mumbai in February, andDelhi, Paris and London at the end of May.

In terms of passenger traffic, AirAsia X grew by 12.4 per centto 3.9 billion Revenue-Passenger-Kms (RPKs) for Q1-2012,resulting in a record-breaking quarterly load factor of 87 per cent.This is an increase of six percentage points from the same quarterlast year, where it registered a load factor of 81 per cent.

AirAsia X’s core markets in Australia, Greater China, andNorth Asia continues to deliver strong passenger growth, withcontinued positive increases in load factor, validating the airline’sstrategy of re-balancing its network from Europe and Indiatowards Australia and North Asia.

Azran Osman-Rani, CEO of AirAsia X, said, “Our continuedgrowth points to a clear positive demand trajectory for 2012compared to 2011, despite the continuous higher and more volatilefuel prices and uncertain global economies and competition. Theairline’s strategy is to establish an optimal network where there isscale, focussing on its core markets where AirAsia X is in aposition of strength.”

T5: BA’s home hub voted bestBRITISH AIRWAYS’ home hub T5 has been voted the world’sbest airport terminal by airline travellers at the World AirportAwards held at the Passenger Terminal Expo in Vienna.

Organised by independent survey company Skytrax, theawards are based on 12 million customer surveys completed over10 months, covering 388 airports. “Despite initial teethingproblems when Terminal 5 opened in 2008, it has become a firmfavourite with passengers,” said Edward Plaisted of Skytrax.

“The architecture, ambience and terminal layout wererepeatedly mentioned in the feedback in the survey, as well as theextensive range of shopping and dining options in the departuresarea,” Frank van der Post, British Airways Managing Director of

Brands and CustomerExperience said. “It’swonderful to seeTerminal 5 beingrecognised as theworld’s best airportterminal. The awardreally contributes toour brand promise ofproviding world-classcustomer service.”

“Terminal 5 is a great showcase of our vision of Heathrow’sfuture and the level of passenger experience we are working todeliver right across our airport. Together with a shoppingexperience, which responds to our customer’s demands, we areproud that our work towards becoming Europe’s hub of choice isbeing recognised by the most important judge, our passengers.”

Turkish Airlines takes green initiativeFOR ENSURING the health of Turkish forests for generations,Turkish Airlines has come up with the initiative of planting asapling for each child under the age of two flying on the airline.

General Director of Forestry, Mustafa Kurtulmu?lu, Turkeythanked Turkish Airlines for its role in preserving the preciousnatural forests through a programme with children, as they willbenefit the most from these trees in the years to come.

Turkish Airlines’ Chief Executive Officer, Temel Kotil said,“I believe that this cooperation and collaboration will make ourwork more efficient and effective, enabling more people toenhance awareness of the importance of keeping our nationgreen.”

Lufthansa offers special fares for studentsLUFTHANSA RECENTLY introduced a special offer for Indianstudents travelling abroad this summer for higher studies.Students can avail a discount of `2500 on ticket fares to over 30destinations in Europe and North America. All they need to do isdirectly book their tickets on www.lufthansa.com using thepromotional code available at the Lufthansa Student CentreMicrosite (www.lufthansa.com/students). Also on offer is

Kenya Airways starts flights to New Delhi Kenya Airways recently announced its commencement offlights to New Delhi starting May 16, 2012. The mucha n t i c i p a t e dservice marksKenya Airways'57th globaldestination and2nd in India.The launch ofthis new routehighlights KQ'sefforts to provideseamless traveland accessibilityto travellers fromAfrica to Indiansubcontinent and vice versa. The new route highlights Kenya Airways ambitious growthplans to expand its network as part of its 10 year growth

strategy. "New Delhi is the second city after Mumbai that wewill be flying to India, we intend to open four moredestinations in the subcontinent as part of our 10 year

e x p a n s i o nstrategy," said DrTitus Naikuni,Kenya Airways'Group ManagingDirector andChief ExecutiveOfficer. Dr Naikuninoted that thedestination hasgreat businessprospects asNew Delhi is

one of the largest cities in India, and the most preferred city interms of information technology, investments, healthcare andgovernment relations.

SIMPLY THE BEST: British Airways home hubT5, voted the world’s best airport terminal.

INTERNATIONAL AIRLINES

INDIAN ODYSSEY: (L-R) Marcel Hungerbuehler-Chief Operating Officer, DIAL and Kenya Airways ChairmanEvanson Mwaniki cutting the red ribbon while unveiling the flights to New Delhi; Flight Stewards of KenyanAirways greeting audiences by Namaste.

additional baggage allowance at no extra cost - students cancarry one extra piece of baggage (not weighing more than 23

kgs) while travelling with anEconomy class ticket onLufthansa operated flights to

US and Canada till October 31, 2012.The Lufthansa Student Centre has become extremely popular

with international students from India. An increasing number ofIndian students regularly use the vast bank of informationavailable on the microsite to find answers to their variousquestions — ranging from how to choose a university to how toenjoy a student’s life in a new city. Launched in April 2010, themicrosite has already welcomed over 117,300 visitors.

Malaysia simplifies cabin baggage allowanceIN PREPARATION for Malaysia Airlines’ entry into theoneworld alliance, the national carrier has streamlined its cabinbaggage rules for all its domestic and international flights.Guests travelling in Economy Class of Malaysia’s nationalcarrier will now be allowed one piece cabin baggage up to amaximum 7 kg instead of 5 kg. Guests in First and BusinessClasses have an allowance of two pieces of cabin baggage with amaximum weight of 7 kg each. Each cabin bag must not exceed56 cm height, 36 cm length and 23 cm width.

This new guideline is applicable for all air travel on or afterMay 15, 2012, and will be implemented across the airline’sextensive global network. Apart from the streamlined cabinbaggage allowance, each guest can bring onboard either anotebook/laptop or a briefcase or a binocular bag. In addition,guests can also bring a small handbag and a walking stick. Thosetravelling with infants (below 24 months old), may also bringone bag containing baby food and nappies weighing up to 5 kg, acarry cot and a fully collapsible baby stroller.

Cathay introduces more flights from Chennai CATHAY PACIFIC Airways announced that it would increasefrequencies between Chennai and Hong Kong from four flightsa week to daily, with effect from September 1, 2012. The latestincrease highlights the airline’s belief in the near and long-term potential of the Indian market and its ongoing work tostrengthen Hong Kong’s position as one of the world’s leadinginternational aviation hubs.

Chennai is an important market for Cathay Pacific, which hasbeen operating flights to the city since June 2008. Together withsister airline Dragonair, a total of 35 passenger flights and 35freighter flights per week between Hong Kong and the four majorgateways of Mumbai, Delhi, Chennai and Bengaluru are in service.

Virgin proffers a unique recording studio

THE WORLD’S first professional grade recording studio hasbeen installed in Virgin Atlantic’s Clubhouse at London’sHeathrow Airport because so many top class musicians andcreative professionals fly with the airline.

Airport departure lounges are often one of the few placeswhere artists have time to relax and can simply sit and think.Music lovers and composers flying Upper Class with Virgin fromNew Delhi to London who think of a new tune or need a lastminute radio edit to their latest single whilst waiting for theirflight can use the studio and record it immediately rather thanrunning the risk of forgetting it.

The Virgin Atlantic Avid Edit Suite has been custom designedand built exclusively for the Clubhouse by AKA Design in London.It is compact but powerful, offering the industry standardprofessional digital and editing and mixing system Pro Tools.

Greg Dawson, Virgin Atlantic Spokesman said, “As anairline we want to do all that we can to help every musician’scareer take off. After ‘Garage’ and ‘House’ music we can nowhave ‘Clubhouse’ music! Once again Virgin Atlantic is at theforefront of new innovations to make travelling an amazingexperience.”

00CRUISING HEIGHTS June 2012 71

Another year of profit for EmiratesTHE EMIRATES Group recently posted a $629 million netprofit, making it its 24th consecutive year of gain and company-wide growth amidst unprecedented economic pressure andrecord high fuel prices, withDnata marking its highest everprofit in 52 years of operation.The Group’s revenue reached arecord high, climbing to $18.4billion, which is an increase of17.8 per cent on last year’sresults. The Group’s cashbalance grew by 9.5 per cent,reaching a strong $4.8 billion.

“Achieving our 24thconsecutive year of profit andmaintaining an upward growthtrajectory is an achievementthat belies the industry norm,”said Sheikh Ahmed bin Saeed

Al Maktoum, Chairman and Chief Executive, Emirates Airlineand Group.

Introduces 777 on Dublin route: Surging demand has ledEmirates to introduce a larger aircraft, a 360-seat Boeing 777-

300ER, on its Dublin routetwo months earlier thanplanned. Just three weeks afterthe January 9 launch of flights,Emirates had announced that alarger aircraft would be fast-tracked from July 1 this year.However, after a furtherreview of passenger loadfactors and aircraftavailability, it was decidedthat the Airbus A330-200needed to be upgraded evensooner and so Boeing 777-300ER was introduced onMay 1.

MUSICAL TAKE OFF: Heathrow gets world’s first professional graderecording studio.

MAKING RECORDS: An Emirates’ Boeing 777-300ER in Dublin.Pharmaceuticals and seafood are amongst the exports carried by EmiratesSkyCargo.

TRIP

ERS.

NET

SNIPPETS


Asia holds busiest inter-city routesASIA LEADS the world’s growth in travel and holds seven outof the ten busiest inter-city routes. In addition to the BRIC

markets, Indonesia,the Philippines andChile showed animpressive growth,according to analysisby the market

intelligence solution Amadeus Total Demand. The review looksat trends in worldwide passenger demand between regions,countries and specific airports, comparing the full 2011passenger volumes with 2010 data. All figures relate topassengers travelling between a given origin and finaldestination airport, irrespective of the number of connectingstops.

The most important inter-regional growth patterns of lastyear are led by Asia. Traffic between Asia and Europe, andbetween Asia and North America, grew by 9 per cent. Trafficbetween Asia and the Middle East grew by 6 per cent reaching38 million travellers in the year.

David Brett, President of Amadeus Asia Pacific, said thatthe global findings were a striking reaffirmation of the rapidgrowth in the travel industry, which were are currently seeingacross were Asia Pacific.

“To hold seven of the world’s top ten inter-city routes allwithin the domestic borders of Asian countries is testament tothe significant role APAC plays within the global travel markettoday. Amadeus is committed to delivering world-classsolutions that help our customers get the most out of thisexpanding market and continue to grow their business.”

Commenting on the analysis, Ankur Bhatia, Director,Amadeus India, said, “The surge in passenger traffic in Asiaclearly states a tremendous growth the Asian economy haswitnessed in recent times. Amadeus Total Demand offerscomprehensive insights of the growing travel market in theregion, to its partners through this analysis, which will furtherassist them to widen their business horizon in the rising marketsand increase their business base.”

VFS opens Netherlands visa application centre THE CONSULATE General of The Netherlands in Mumbai hasrecently extended its service for collection of visa applicationsand delivery process to Chennai. This new facility will beoperated at the Joint Visa Application Centre (JVAC), set up byVFS Global. VFS Global will be responsible for accepting

applications for shortstay Schengen visasto the Netherlandsfrom applicants

residing in Chennai and neighbouring areas. All visa applicationswill continue to be assessed and processed by the ConsulateGeneral of The Netherlands in Mumbai. The key features of thecentre will be longer operating hours, dedicated website for easyaccess, visa information including visa types, applicable fees andapplication status, professional and responsive staff dedicated tohandle visa queries, dedicated call centre unit, email support anddoor-step delivery of passports.

Ambassador of The Netherlands to India, Bob Hiensch said,“We are happy to extend the cooperation with VFS Global toChennai. Over a period of many years, VFS Global proved to be areliable partner and we look forward to extend this not only to

TRAVEL & TOURISM

Tune opens hotel in Jakarta THE CHAIN of Tune Hotels is expanding in Indonesia withthe inauguration of its latest hotel in Pasar Baru, Jakarta, onJuly 12. The centrally located Tune Hotel at Pasar Baruwould represent the global brand’s third property inIndonesia and the first hotel in central Jakarta. It will have168 rooms in total, 117 doubles, 36 twin-sharing and aspecial needs room. The hotel is a short walk to South-EastAsia’s largest wholesale complex, Mangga Dua and a fewminutes drive to the Kemayoran Expo Centre.

According to Mark Lankester, Tune Hotels’ Group CEO,“Jakarta has been on our radar screen for a long time now,with many of our guests consistently asking about our plansthere. The wait is over and we are ecstatic with finallyopening the first hotel in the capital of Indonesia. Whatbetter place than to be in the heart of where the rich and deephistory of Jakarta came to be and being centrally located tofood, shopping and entertainment in this large widely spreadcity. We look forward to being able to spread the word to ourIndonesian neighbours and of course look after inboundtravellers from SE Asia and beyond.”

Philippines on the radar: Tune Hotels continues toexpand in the Philippines with the opening of its latest hotelin Makati, Manila, on July 17. Tune Hotel Makati will have213 rooms in total, 148 doubles, 63 twin-sharing and twospecial needs room. Makati has long been Metro Manila’smost prestigious business, shopping and entertainmentdistricts and the hotel is surrounded by the world-classshopping malls of Rockwell Centre, Glorietta and Greenbeltas well as the central business district of Makati and AyalaAvenues. In addition, the tourist attractions of the AlayaMuseum, Bonifacio Fort, Intramuros, Rizal Park andChinatown are all within easy reach.

Mark Lankester, Tune Hotels’ Group CEO, said, “Whenwe opened the Tune Hotels in Angeles City, Cebu City andErmita, many asked about Makati City. That question is nowanswered with the pre-opening sales of the Tune HotelMakati! We’ve always been vocal about the Philippines asbeing an outstanding tourist destination that has yet toreceive its due attention and part of what we aim to do isbring the due attention! Makati is a natural element of theTune roadmap of national expansion in the Philippines andour aspirations involve being able to cater to the needs of notonly leisure but business travelers both from within andinbound to the country.”

COMFORT STAY : An inside view of a room at Tune Hotel Pasar Baru,Jakarta.

00CRUISING HEIGHTS June 2012 73

Chennai but to other Indian cities as well in the future.”Also VFS inaugurated Thailand Visa Application Centre in

Chennai. VFS Global will manage and operate the Thai VAC atPrestige Atrium, Central Street. VFS Global will be responsiblefor accepting applications for Thai visas from applicants residingin Bengaluru as well as other parts of Karnataka. All applicationswill continue to be assessed and processed by the Royal ThaiConsulate General, Chennai. The key features of the centre willbe longer operating hours, dedicated website for easy access, visainformation including visa types, applicable fees and applicationstatus, professional and responsive staff dedicated to handle visaqueries, dedicated call center unit, email support and door stepdelivery of passports. The service would attract a nominal servicefee, payable at the Thai VAC at the time of submitting theapplication.

Popular Kashmir tourist spot opensIT WAS after 22 long years that Bota Pathri, a popular tourist spotin Jammu and Kashmir, recently opened its doors for visitors. Alsoknown as the Nagin Valley, the popular tourist spot is locatedmerely nine kilometres away from Gulmarg. It had been closed dueto militant-related threats. State Tourism Minister Nawang RigzinJora praised the Indian Army for restoring peace in the area andsaid that with the influx of the tourists in Bota Pathri, employmentopportunities would be created.

“Around 1.4 million tourists came here last year. The surge inthe tourists visiting Gulmarg resulted in it getting congested. Thevirgin and pristine Bota Pathri is a good place for tourists to visit.The infrastructure over here is environment friendly and eco-sensitive. Horse owners can earn their livelihood. I want thatmountain biking should also start here. So it is good news for thepeople who are working in the tourism sector,” said Jora.

The Tourism Department organised a ceremony formallyannouncing the opening of Bota Pathri, where Army men andtourist also participated.

BirdRes partners with Matrix BIRDRES RECENTLY partnered with Matrixto offer International SIM Cards to Birdrescustomers. Through this B2B partnership,travel agents registered with Birdres will nowbe able to sell Matrix SIM cards without anydocumentation or paper work. The cards will beavailable though a simple payment process via

customer-based credit cards and credit limiton their account. This will not only allow

them to have easy and quick access to booking but also providereal-time booking functionality. Moreover, travel agents will alsobe able to earn commission on every booking.

Commenting on the partnership, Ankur Bhatia, ExecutiveDirector, Bird Group said, “We are pleased that Matrix haschosen Birdres as its preferred B2B partner. This partnership willoffer Birdres customers an easy access to book Matrix SIM cardsfor its clients through a simple and hassle free payment process.It will further offer Matrix a large platform to offer its productsand services to a wide range of travel agents all over India. AtBirdres, we continue to offer flexible and user-friendly solutionsto our partners and customers. This partnership with Matrixfurther strengthens our group’s entity as a leading B2B contentdistribution channel for the travel industry.”

Speaking on the partnership, Gagan Dugal, ManagingDirector, Matrix said, “Through this partnership with Birdres, wehave entered the B2B space to offer our services and products toa larger customer base. We are hopeful that this collaborationwill enhance our sales and also benefit our partner by providing

it a hassle-free option to procure SIM cards for its clients.”

Accor ushers first Pullman hotel in India ACCOR UNVEILED its firstPullman hotel in India, the PullmanGurgaon Central Park. Located inthe National Capital Region (NCR)

of Delhi, the new hotel features 285 rooms, three restaurants— Sen5es, LA Riviera and Puducherry; two bars — Citriqueand Tiki Pool Bar; a spa — Mandara Spa, a saloon — RodAnker Hair Saloon, a fitness centre, and indoor and outdoorvenues for conference and meeting facilities. LA Riviera, RodAnker Hair Saloon and Mandara Spa will be operational bymid-June 2012.Speaking about the Pullman brand, Xavier Louyot, VP-GlobalMarketing, Pullman Hotels & Resorts, said that Accor had 65Pullman hotels worldwide including 21 in the Asia Pacific.Elaborating on its expansion plans, he added that Accor wasplanning to develop 150 Pullman hotels by 2015-2020 acrossthe globe. In India, the hotel chain is planning to unveil threePullman hotels in the northern and western regions in thecountry within three years’ time.

Scott Davies, General Manager (Delegate), Accor HotelOperations Delhi & NCR, said that Accor would targetcorporates, FITs, meetings and conference clients and leisuretravellers for the new property.

MTDC launches ‘Maharashtra Unlimited’ MAHARASHTRA TOURISM Development Corporation(MTDC) recently released a quarterly journal MaharashtraUnlimited, which aims at showcasing the state’s touristdestinations, culture, history and artefacts and providedomestic and international tourists with an insight into thevaried tourism offerings of Maharashtra. The magazine wasunveiled at Sahyadri Guest House in Mumbai by StateTourism Minister, Chhagan Bhujbal.

The tourism board has roped in Pune-based Heritage IndiaCommunications Pvt Ltd. to compile and print the magazine,which costs `150 per issue. MTDC will hold the publishingrights for the magazine. “The importance of marketing as atool has grown tremendously on a global scale. Nature hasblessed Maharashtra with immense beauty and MTDC shouldmake most of it and market Maharashtra on a global scale,”said Bhujbal.

Ankur Bhatia

MORE TEETH TO TOURISM: Maharashtra Tourism Minister ChhaganBhujbal (second from left) releasing the quarterly journal of MTDC.

HERITAGE-INDIA.COM

cruising heights

Documents

air india merger

merger andfor

accenture report

accenture didnt

air india strike

thetwo airlines

fact thatthe

year twoand