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EDITOR-IN-CHIEF’S NOTE

Don’t be on time

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was in Bangalore in the last week of October and it was clear that the Janata Dal (United) and the BJP weren’t the only ones giving a red eye to fellow Kannadigas. Hogging equal space on the front page of most newspapers was BIAL (Bangalore International Airport Ltd). Like DIAL and MIAL in Delhi and Mumbai, respectively, BIAL is the other face of upgrading infrastructure in the civil aviation sector.

The only difference being that Bangalore is a hundred per cent Greenfield venture, while the other two were privatised and handed over to GMR and GVK. Now you may wonder what Albert Brunner was doing on the front pages with the likes of Kumaraswamy and Yeduriappa? Simple. Come March 30, 2008 and the new airport that’s being built under his leadership at Devanahalli, 39 kilometres outside Bangalore, will be commissioned and the present HAL (Hindustan Aeronautics Ltd) will be closed. And that’s something that’s giving Bangaloreans the jitters.

Their nervousness is not difficult to fathom. Just look at the ground realities: Devanahalli is 39 kms outside the city. There is no major highway connecting the city with the airport.

So, how does all the traffic move back and forth?

On an average, the journey one way could take you upto three hours. If you start construction today, it will take you a minimum of two years to get it going.

Close to 35000 passengers use the HAL airport each day. They will now have to make the trek outside the city.

The support staff that will include airport employees, ATC personnel, airlines staff, workers, labourers and the personnel who will man the sundry other services around the airport could total another 20000. They too, will have to travel back and forth each day.

For passengers that would mean leaving home five hours before departure for a domestic flight, and six to catch a flight overseas!

For staffers, it will be much worse. Unlike passengers, they have to do the drill six times a week! So, their working day could stretch from nine or ten to 13 or 14 hours each day, month after month, at least for the next three years.

Bangalore today is a choking city. Traffic is a

CRUISING HEIGHTS November 2007

nightmare. On an average it takes anywhere between 50 minutes to an hour-and-a-half to get anywhere in town including the present airport.

Even the HAL airport is choking. It’s virtually bursting at the seams (although they have added flights after threatening an embargo of no more flights last year). But somehow they are managing in the hope that BIAL is just around the corner. But it is a reflection of the times that even the AAI hasn’t really applied itself to handling the issue.

In the week that I was in the city, two high profile individuals were ramping up their own operations in Bangaluru. Airbus CEO Tom Enders announced that the European giant would expand its work in the country and inaugurated the engineering design facility. On the same day, Cisco Chairman John Chambers announced that the IT giant investments in the city would go upto several billion dollars in the next five years. Just some months ago, Jeff Immelt of GE was in the city to look at the US transnational’s largest R&D facility outside the US. No wonder Vijay Mallya is salivating and wants to launch a Bangalore-San Francisco non-stop in the next few months.

It was the danger of this expansion, the pressures on the city and the need to put the infrastructure in place that Infosys mentor N. R. Narayana Murthy had spoken about some years back leading to a public spat with former Prime Minister H. D. Deve Gowda.

At an open house in the city, Brunner made two telling points: that the Ministry of Civil Aviation is more interested in the gloss than the grind and that efficiency is not appreciated in our country. Brunner said that he had brought the infrastructure woes to the notice of the Civil Aviation Ministry. And he was assured that the matter would be taken up “at the highest level”. Of course, nothing happened. Nothing — even after Praful Patel’s much-publicised highprofile visit to inspect the airport’s progress some months back. (You can be sure, though, that things will move once Deve Gowda and Praful spend a couple of hours on the highway.)

And the other Brunner comment speaks for itself.

He said his problem was that he had completed the airport on time!

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Off the cuff

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Biking and flying!

According to one report, the name, “Super Sky Cycle” sounds like something out of a 1960s sci-fi short story. They are absolutely right. Anything that can run on a road and fly as well is just sci-fi material. Issac Asimov would be delighted. And it was Larry Neal's dream for years.

Now he is close to achieving the impossible. A motorcycle that can fly!

The first 30 Super Sky Cycle kits are under production at Neal's company, Butterfly LCC, and five have been pre-sold. The machine is a lightweight, tricycle-geared gyroplane with a roadworthy suspension and folding rotor. The kit, after assembly by the buyer, is registered for the air as an experimental amateur-built aircraft, and for the ground as a homebuilt motorcycle.

A 100-horsepower Rotax 912 ULS engine, running through a variable-speed, belt-drive transmission, powers the production version of the machine. It features disc brakes on the front and main gear wheels, and long, sleek wheel pants with integrated taillights inspired by classic Cadillacs. The top speed is 100 mph.

The Super Sky Cycle prototype first flew in December 2005. Neal says he received a US patent for his “Fly-Drive Vehicle” just days later. Neal acknowledges the checkered history of small companies developing machines that can negotiate both the sky and the highway. He observes, “Now, instead of just reading about them, you can buy one.

They're real! ...Almost unanimously, people tell me this is an idea whose time has come.”

The Super Sky Cycle kit lists for $37,195, including the Rotax engine, and is recommended for pilots under 280 pounds.

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contents MERGING

THE IDENTITY p24

With Air Deccan now becoming Simplifly Deccan, it is not just a meshing of a distinct identity into Kingfisher. In fact, it is a complete change in strategy. Is it the end of the common man airline as we all know it? R. Krishnan reports.

OFF THE RECORD

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What happened at the mother of all meetings in Mumbai when the Air India top brass deliberated on the future of the airline?

CRUISING HEIGHTS November 2007

FOCUS

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Airbus is on a song. Soon after the launch of the A 380, an upbeat Tom Enders, on his first visit to India, spoke about the immense business and technical opportunities in the country. It's time for a fresh beginning.

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ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS TRAVEL & TOURISM PROFILES NEWS DIGEST

SPECIAL REPORT p12 The Gulf sector is lucrative for everyone: Indian carriers and airlines from the region. Which airline is making the most of the opportunities?

CRUISING HEIGHTS K. SRINIVASAN Editor-in-Chief

TIRTHANKAR GHOSH Managing Editor

R. KRISHNAN

Consulting Editor

SUNIL BHASIN Editor (Quality)

NEWS DIGEST

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AALOK SRIVASTAV Copy Editor

Why should Asia suffer from Red Eye? Landing restrictions at airports in Europe have forced Indian carriers to schedule flights in the middle of the night.

Why can’t the Europeans get a taste of their own medicine? India asks for a level field.

SHIVANGI SHARMA Editorial Coordinator

RUCHI SINHA PRADEEP JHA Layout Artists

BHART BHARDWAJ Art Director

H.C. TIWARI

Co-ordinating Photo Editor

RAJIV SINGH

Gen. Manager (Admn.)

RENU MITTAL Executive Director

SNIPPETS

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Finnair wants to position itself as a major player in the growing traffic between India and North America. With demand expected to grow significantly, Finnair would like to cash in.

A MOVE TO IMPROVE EFFICIENCY

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Dwell time at metro airports has been brought down from five hours to three by the Civil Aviation Ministry in an effort to improve the efficiency of our airports and provide an impetus to the air cargo industry.

GLOBETROTTING

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Sports in the cockpit is a ‘no, no’. Ask Robbie Savage, a pilot with British Midlands and he’ll tell you why.

BACK PAGE

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It is the time to celebrate. The Maharaja lays out the red carpet for Mahi and the King of Good Times hires Deepika!

CRUISING HEIGHTS November 2007

Editorial & Marketing office: Newsline Publications Pvt. Ltd. C-15, Sector 6, Noida 201 301 Telefax.: +91-120-4257701-03 All information in CRUISING HEIGHTS is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part.

Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear.

Owned and published by K. Srinivasan 4C Pocket-IV, Mayur Vihar Phase-I, Delhi 110091 and printed by him at Nutech Photolithographers, B-240, Okhla Industrial Area, Phase-I, New Delhi 110 020 Vol II No 7

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We’ll fly

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We will restart the operations once we acquire bigger type of aeroplanes. We are planning to take Boeing B737 cargo planes on lease in the next three-four months.

R.K. SABOO, Deputy-Managing Director, First Flight on their desire to get back to shipping cargo by air.

LETTERS TO EDITOR

P THIAGRAJAN'S success story (Driving from the front, October ‘07) is indeed impressive. Paramount Airways started from small but is giving stiff competition to the bigger players in the southern airspace. My experiences of flying with Paramount Airways have always been good and this article makes me even more proud to be a regular user of its services.

K. Murlidharan, Bangalore

Illustrations: Rajeev Kumar

October 2007

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Big plans We are tying up with a South Indian company that will own and operate aircraft for us. This company will be carrying only our cargo. They are finalising the talks for taking three Boeing B737 cargo planes as well as securing a licence from the ministry of civil aviation. Nagpur will be the hub.

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PAWAN JAIN, Chairman and Managing Director of Safexpress on plans to expand business.

What’s the point Had infrastructure been in place, we would have launched our regional airline for the north immediately. Now, the airline should take wings in 2009. There’s no point having a 30-minute flight from some city to Delhi and then hover at IGI for about an hour.

BEING A REGULAR flier with Paramount Airways, it was a pleasant surprise to know that its young and dashing chairman is from my very own hometown.

Laxmi K, Madurai

Bird Group’s Executive Director, ANKUR BHATIA on their plans for an airline.

I WAS glad to read that Air New Zealand is starting the world’s first commercial airlines to run with bio-fuel (Globe Trotting, October ‘07). While the growth of Indian airspace is healthy for its economy, we should be careful about the environment too. I hope, this trial is successful and biofuel becomes the standard fuel for aircraft the world over.

Raj Singh Rathore, Bikaner

One has to accept that CSIA (Chatrapati Shivaji International Airport) is a constrained airport and will continue to be so due to physical limitations. Even after all modernisation work finishes at CSIA, the completion of Navi Mumbai airport on time remains critical for Mumbai. The government is doing its best to ensure that happens on time.

THE CHATRAPATI SHIVAJI AIRPORT has indeed become world-class now (Off the record, October ‘07).

It doesn’t feel embarassing anymore to come from Copenhagen or Heidelberg or Zurich and land at the dilapidated airports in India, which look more like government hospitals.

Krishna Madgaonkar, Pune

G. V. SANJAY REDDY, MD of the GVK-backed Mumbai International Airport (P) Ltd (MIAL).

HOPEFULLY as the FDI in the courier and cargo services increases (Cargo, October ‘07), the quality of courier and cargo services in India will also improve. I find the current state of affairs in this sector quite pathetic.

H. Verma, Allahabad All correspondence may be addressed to Editor, Cruising Heights, C-15, Sector 6, Noida 201 301 OR mail to newslinepublications@rediffmail.com

Plain truth

Prudent planning We find it much more prudent to be conservative. We will focus on improving our yields rather than getting an aircraft every month. The airline now plans to have a fleet of 34 aircraft by 2011 instead of 50 that was planned earlier. As long as issues connected with policy, infrastructure and taxation are not sorted out, we feel it is prudent to have a small fleet.

GoAir Managing Director JEH WADIA on the carrier’s strategy.

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The Indian-Air India combine is in third place with 19.8 per cent.

IndiGo has a marketshare of 8.4 percent compared to just 0.9 during the same quarter last year.

SpiceJet now has 8.3 per cent of the market.

Well, here are the figures, officially from the DGCA for the quarter ending September (July-September 2007).

The combined market share of Jet and Jet Lite is 29.4 per cent.

Kingfisher-Air Deccan combine stands at 28.9 per cent.

COLD STATS

So what’s the latest numbers from the market place?

LOOKING GLASS

“You have been a good learner. Do not quit the company or else...”

High hopes The liberalisation of aviation markets is bringing multiple benefits for both consumers and regional economies alike. I hope that Etihad Airways will be granted access to the emerging cities of India.

Etihad CEO JAMES HOGAN on India plans

Making money We are hoping an early break-even because of accelerated revenues and cost synergy of the combined entity (Kingfisher and Air Deccan).

UB Group Chief Financial Officer RAVI NEDUNGADI on the prospects of the airline business.

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Waxing eloquent

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ay what you like, but one thing that you have to grant Vijay Mallya is his ability to express himself with great felicity and clarity. He is passionate, funny, intense and arrogant in a unique sort of way. At the inauguration of the Airbus Engineering Centre, the King of Good Times had plenty to say.

For one, he was grateful to Tom Enders for bringing the Engineering Centre to Bangalore. “I had to use all my persuasive skills,” waxed Mallya and added: “After all, I am an MP from Karnataka.”

But that wasn’t the only reason for him to thank Tom. He was also grateful to the Airbus chief for standing by him in his hour of need (translate that to read as need for aircraft) and said that he was someone who “reciprocated and believed in the principle of reciprocity”.

No, no that wasn't the end. Mallya also thanked Enders for his passion for India and endeavour to bring in projects to the country irrespective of the order book, unlike the competition that was implementing projects riding on the back of its orders. Clearly the jibe alluded to the Boeing MRO in Nagpur that he felt was due to the orders it had got from Air India. Minutes later, Kiran Rao, the indefatigable Airbus super

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salesman who had plugged the A320 to Indian (Airlines) explained that the Engineering centre and its growing interests in India were a part of the process of investing in India to offset the orders!

Ketchup to engineering There was an emotional chord too, to the Airbus centre at the gleaming new Infinity Campus Tower on Old Madras Road.

CRUISING HEIGHTS November 2007

Apparently the new building had come up on what was once the Kisan factory— a brand owned by the UB group. As part of the UB restructuring, Mallya had sold off the business some years back. And now he was returning to the same site to see a new project take shape in, what is a passion for him: aviation.

Jetting in style Tom Enders has much to thank Mallya for. Apart from the fact that he plumps for Airbus aircraft, pecks them on both cheeks and takes unsolicited swipes at the competition, he also offers them his ACJ (Airbus Corporate Jet) — the luxurious flying apartment of the UB Chairman that many believe came courtesy his A380 orders. Enders used the aircraft to jet from Delhi to Hyderabad where he met the owners of Flyngton Freighters, before jetting into Bangalore for the inauguration. The next morning he flew to Mumbai as part of his whistle-stop experience (in the company of John Leahy and Kiran Rao) for a pow wow with Air India.

This was Enders’ first visit to India after taking over as CEO — in fact the first overseas — and what better than sell the A380 to the Maharaja. Has there been a deal before the deal?

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OFF THE RECORD

Why Accenture?

Rajeev Gandhi Bhavan

WHILE THERE IS no confirmation as yet, sources aver that Accenture, which seems to enjoy a special relationship with the powers-that-be, may get a couple of crore more for ‘holding the Maharaja’s hands and taking him through the merger process’. While no one seems to be grudging them the extra cash, what seems to have got the goat of many in AI, is the manner in which Accenture has accepted the offer to look at the Kingfisher-Deccan deal. Accenture has been asked to study

the integration of the two airlines, including the possibility of a merger.

AI elders are fuming at this blatant transgression by their consultants and one of them said: “For the last two years, Accenture has been privy to everything that's been happening at AI. In fact, they have been the catalysts for many of the changes. It seems completely immoral that they should now take on another merger process in the aviation industry. If this is not conflict of interests, what is?”

to North Block and the PMO before winding its way back and then onwards to Montreal. For sometime now, the IAS has claimed primacy over other claimants (from the AAI and the DGCA) to make sure that the job stays with them. At the time when Sanat Kaul was short-listed for the job, there were some objections raised from some other officers and it was finally intervention from the highest quarters — that keeping Kaul from the job would be unfair considering his record — that tilted the balance in his favour. The caveat at that time was that this was a one-time exception not to be repeated again. But when Kaul returned, Zaidi made it to Montreal. It was again a civil servant who found the way to get his way. What will happen this time? Who will get the top job? Watch this space for all the action.

Who after Zaidi?

WHO WILL REPLACE Naseem Zaidi as India's representative at ICAO (International Civil Aviation Organisation)?

Already the jockeying to succeed Zaidi has begun and the front-runners are the Joint Secretaries at the Ministry of Civil Aviation. Zaidi will complete his term sometime in May next year. Though a good six months away, the process must start soon. After all it takes a while for the file to lumber from Rajiv Gandhi Bhawan

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Rajiv Gandhi Bhawan that has so far maintained a studied silence on the issue may have to react sooner rather than later.

There are reports that some MPs have already been apprised of the matter and could well rake it up in the ensuing winter session of Parliament. We may add for the record that Vijay Mallya is himself an MP and a member of the Civil Aviation Committee. Now that's a conflict of interest that the Ministry has ignored for close to two years.

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OFF THE RECORD

More tales from Air India

Top brass has pow wow

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ll the AI Executive Directors and Directors of the company gathered at Mumbai's Hilton Towers for two days of pow wow on October 28 and 29. The idea was to review the working of the airline and infuse it with new enthusiasm and ideas to meet the challenges from the private sector.

As is the wont on such occasions, it was Civil Aviation Minister Praful Patel who flagged off the event with a speech that talked about the gargantuan airline, the immense possibilities and potential and how it is the leader-

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ship that the employees provide that will determine their future. “Bada aacha feel-good bhashan tha, bus aur kuch nahin,” said an employee sarcastically.

Interestingly, what was Accenture doing at an internal meeting of Air India is a mystery. The consulting multinational has come in for huge criticism from insiders. Appalled at the manner in which it handled the merger of Air India and Indian (Airlines), what irked them was the way Accenture kept chipping in with their own bits and pieces during the two-day meeting.

CRUISING HEIGHTS November 2007

But what really angered a majority of the officers present was the Accenture representative ‘supping with Mantriji’, so to speak. What happened was that at lunchtime, Praful retreated into a private dining room with all the whole-time directors and Civil Aviation Secretary Ashok Chawla for a closed-door pow wow, leaving the rest of the officers to have lunch amongst themselves. And this included EDs and Directors from all Air India offices worldwide and Indian officers from around the country, the Gulf and South-East Asia.

“It was appalling. Here was an opportunity for the Minister to interact with officials of an airline he says he is keen to resurrect. But he chose to spurn that moment and typically, like a politician went for a closed-door confabulation,” said one ED who was present at the two-day event. But what made it worse for most of them was the fact that the Accenture rep was the only outsider allowed into the closed door meeting. There are many who are also wondering what Accenture was doing at all at the two-day meeting.

After all, this was a confabulation to take stock of the merger and look at the road ahead.

Anyway, to come back to the show.

Did it serve any purpose? There are mixed reactions from those present.

Some felt that it was a wonderful opportunity to let the powers-that-be know what the status of the operations was. Others thought it was a complete waste of time with too much faffing and too little work.

And pray what were the main points of complaint? On-time performance, integration of schedules and answerability. The gentlemen from Tokyo and Toronto, for example, made it plain that there was no sense of joy amongst AI staffers overseas considering the fact that the Maharaja arrived usually an hour to five hours late throughout the year. There was not a single day when the plane had arrived on time and there was no questioning on why the flights were late.

We may also inform readers that senior directors have now got into the comfortable routine of operating between Delhi and Mumbai. Airlines House on Parliament Street has become a convenient office for them.

In fact, the other day Chairman V. Thulasidas held a meeting of the acquisition committee in the second floor boardroom at the former Indian Airlines headquarters.

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Splitting the job Why on earth is the Ministry of Civil Aviation keen to split the job of Chairman and Managing Director at Air India? The Ministry has moved a note on the subject and the Department of Personnel is believed to be taking a close, hard look at the proposal.

The idea is that the Managing Director will in real terms be a CEO and the Chairman, a non-executive head of the board.

One line of argument is that once Thulasidas retires in March, it will be difficult to offer him further extension in an executive capacity... Therefore, split the job and make him the non-executive Chairman so that he can oversee the continuity at the board level.

If the government accepts this argument, then all that the search committee has to do is look for a Managing Director.

Insiders state that it will be hugely difficult for the Committee to overlook the case of Vishwapati Trivedi, considering the fact that he has spent two years at the helm at Indian (Airlines) and was appointed for five years by the PESB. Moreover, he is the Joint Managing Director of the merged entity. How then do you overlook him?

Civil Aviation Ministry sources state that that can't be the keen driver. The only driver is whether Praful Patel wants him. If PP says yes, then Trivedi will have the job.

Will the Airlines move to the 60-year regime or continue with the present 58 years stipulation. Frankly, there have been plenty of murmurs that the airline could go back to 60 “soon, very soon”.

But Praful hardly seems to moving on the matter. Apparently, he has been unable to resolve internal issues on the “huge amount of deadwood” that would get retribution and a further twoyear lease of life. Even Thulasidas is believed to not be in favour of the

Photo: H.C. Tiwari

Sixty or not

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move to up the age although as a civil servant he has the benefit of retiring at 60. There are two issues that were the prime drivers for a fallback to 60 — shortage of pilots and the danger of losing some bright people at the top. On both these issues there have been a dramatic change in attitude. As far as pilots go, everyone is hiring expats and actually preferring them. Naresh Goyal, who at one time used to personally call pilots when they quit, to persuade them to stay back, no longer bothers when a resignation comes in. It's the same attitude at AI. If they retire and don't want to be reemployed, hire fresh ones, seems to be the motto.

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SPECIAL REPORT

The Gulf tangle There is money in and out of the Gulf. Air carriers from India and the Gulf have been adding flights to cash in on the business opportunities.

R. Krishnan analyses the Gulf market and what it means for the Indian carriers.

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HE INDIA-GULF sector generated revenues of Rs 1,591.04 crore in 2005-06, making it the second largest revenue generator for Air India. Interestingly, this level of revenue generation was lower than Rs 2,021.46 crore revenue earned by Air India in 2004-05. The revenue dropped by nearly 25 per cent because of three factors: More number of Gulf carriers, including those based around the Middle East, flying far higher frequencies to and from India, thus eroding the market share of Air India; Shrinking fleet of both Air India and Indian Airlines; and, Great connections offered by Gulfbased carriers to Indians travelling out of India to the US, Europe and even Australia.

It may be worthwhile to mention that Emirates has 98 weekly connections to India, and all important cities — New Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Ahmedabad, Thiruvananthapuram and Kochi are connected daily.

Besides, Kolkata, and Amritsar are also on the cards. Etihad, the other important carrier from Abu Dhabi in UAE operates 28 flights a week and the airlines CEO James Logan was in New Delhi a few days ago seeking more rights. Etihad currently flies to New Delhi, Mumbai, Trivandrum and Kochi. The carrier wants rights to fly to Hyderabad, Bangalore, Amritsar, Chennai, Jaipur and Kolkata besides Kozhikode which will be a third point in Kerala that has Thiruvananthapuram and Kochi already in its time table.

Besides Emirates and Etihad, there are other big full service carriers — Qatar and Oman Air — that are wooing the Indian market to tap potential passengers wanting to fly to the US and Europe. Interestingly, Emirates charges a lower fare should a passenger fly from India to Sydney via Dubai than a passenger flying directly from Dubai

to Sydney. A host of Gulf-based LCCs have also entered the Indian skies. These include Sharjah-based Air Arabia and Kuwaitbased Jazeera Airways. Their load factor is upwards of 88 to 92 per cent. There are also other Gulf-based carriers like Gulf Air and Kuwait Airways.

According to bilateral Air Services Agreement (ASA) between India and UAE (that would mean just Dubai) the total number of seats entitled in each direction and each week is 21950. Of this, Air India and Indian Airlines utilize 19150 seats and Emirates with other UAE carriers flying to Dubai 21776 seats. Thus, we find UAE (Dubai-based) carriers ferry 2600 passen-

CENTRE OF ATTRACTION: The Dubai Airport which sees the maximum number of Indian passengers

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CRUISING HEIGHTS November 2007

gers more, week after week.

If UAE includes only Abu Dhabi, Al Ain, Al Fujaira and Ras-el-Khaima, the total seat entitlement each week as per ASA is 5565 against which Air India and Indian Airlines utilize 5011 while Gulf-based carriers carry only 4770, covered by 18 flights a week. If UAE includes only Sharjah, the total seat entitlement each week is 7938 against which Air India and Indian Airlines exceed the entitlement at 8690 while the Sharjah-based carriers use 6318 seats. The numbers are greater for the Indian carriers because Sharjah is a stopover.

When it comes to UAE that includes only Bahrain (operator Gulf Air), the weekly total seat entitlement is 11186 of which Air India and Indian Airlines utilize only 1433 seats compared to 11100 seats by Gulf Air. In the case of Oman, the total number of seat entitlement is 7546 of which Air India and Indian Airlines utilise only 5607 while Oman Airways utilises all the 7546 seats. In the case of Qatar (operator Qatar Airways), the total weekly seat entitlements, either way, is 10892 for each side. Of this, Air India and Indian Airlines utilize only 1433 seats as against 8673 by Qatar Airways.

There is, thus, a great imbalance in the frequencies/seats utilised by Indian carri-

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More the merrier Two months back, the Ministry of Civil Aviation gave its approval to the grant of traffic rights to Jet Airways on the India-Gulf/Middle East routes from January 1,2008.

The traffic rights that have been granted to Jet Airways are: 3682 seats to Kuwait per week of which 1582 seats are on the Delhi-Kuwait route, 1050 seats on Trivandrum-Kuwait route and 1050 seats on Kochi-Kuwait route 3150 seats to Oman of which 1050 seat are on the Kochi-Muscat route, 1050 seats on the Trivandrum-Muscat route, and 1050 on Calicut-Muscat route 2100 seats to Qatar of which 1050 are on Mumbai-Doha route and 1050 on the Calicut-Doha route 2100 seats to Bahrain of which 1050 are on the Mumbai-Bahrain and 1050 on Kochi-Bahrain route Jet Airways had applied for traffic rights on the India-Gulf/Middle East routes on July 18, 2007. It had asked for rights on routes to Kuwait, Oman, Qatar, Bahrain, Dubai and Abu Dhabi. The request for grant of traffic rights on India-Dubai and IndiaAbu Dhabi routes is under the consideration of the Government.

Even Simplifly Deccan has applied for rights to fly to Middle East minus UAE. Hitesh Desai, Executive Vice President of Kingfisher is on record stating that Deccan’s A 320s were fit enough to carry out the Middle East operations.

The total entitlement for Indian carriers on the Gulf routes at present is 85481 seats per week of which 21950 are for Dubai, 7420 for Abu Dhabi, 10206 for Sharjah, 8000 for Kuwait, 10892 for Qatar, 7546 for Oman, 10967 for Bahrain and 8500 for Saudi Arabia.

The utilization by Indian carriers of the available Gulf routes is 49348 seats per week of which 20002 are for Dubai, 3313 for Abu Dhabi, 8690 for Sharjah, 3475 for Kuwait, 1526 for Qatar, 3475 for Oman, 1526 for Bahrain, and 7341 for Saudi Arabia.

ers. It may be pointed out that at the Paris Air show held in June 2007, Qatar Airways placed orders for 80 of Airbus A 350 XWB. Though the aircraft is still on drawing board stage and in all likelihood may enter commercial service by 2013, the placement of such a large order by Qatar most certainly includes Indian traffic in the reckoning.

The disproportionate rise in passengers carried by UAE, Oman and Qatar carriers is evidence enough for taking the Indian traffic beyond to US and Europe.

Yes, one of the losers could also be the UK-based carriers: BA, Virgin and British Midland that withdrew from India early last year as they found yields falling steeply in a very competitive market. The enigma is how Gulf, Qatar and Oman carriers carry traffic beyond their shores without an eye on costs. Naturally, they end up offering a very superior product in terms of service inside the aircraft. We are yet to hear of carriers like Emirates, Etihad, Qatar and Oman Airways ever cutting costs, which is quite normal for any European or American carrier.

The Gulf-based carriers then are using the Indian market to carry traffic to Europe and the US that would have otherwise been carried by India’s own carriers as well as those like Air France, Lufthansa, BA and American carriers. It, therefore, remains to be seen how the non-stop and more pointCRUISING HEIGHTS November 2007

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Scramble for the Indian cake A list of carriers operating flights to and from the country.

Emirates: Currently operates 98 flights per week to eight Indian gateways: Mumbai, Delhi, Chennai, Hyderabad, Kochi, Thiruvananthapuram, Kolkata, Bangalore and Ahmedabad.

Etihad Airways: The Abu Dhabi-based airline plans to add flights to eight cities in India. It presently operates 28 flights a week. The airline, which is besieged by an intergovernment bilateral air treaty to operate only 28 flights a week from the UAE to India, hopes that the situation will change and it will be able to operate flights from Abu Dhabi to Bangalore, Chennai, Hyderabad, Kozhikode, Ahmedabad, Amritsar, Jaipur and Kolkata. Etihad currently operates from Abu Dhabi to Mumbai, New Delhi, Thiruvananthapuram and Kochi.

Qatar Airways: Has 44 flights a week to seven cities: Mumbai, Delhi, Chennai, Thiruvananthapuram, Kochi and Hyderabad. The airline is now looking forward to December 12 when it will start daily operations between Doha and Ahmedabad, which will take the number of flights to 51 flights a week.

Air Arabia: PJSC connects nine Indian cites to the Middle East through 58 flights a week: Ahmedabad, Chennai, Jaipur, Kochi, Mumbai, Nagpur, Thiruvanathapuram, Coimbatore and Bangalore. The airline has applied for rights to operate flights from Hyderabad as the 10th Indian destination.

Air India: At present, Air India and its subsidiaries are allowed to operate flights from Dubai, Sharjah, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia to Indian destinations. Air India Express operates 15 direct flights from Abu Dhabi and one from Al Ain to Mumbai, Delhi, Thiruvananthapuram, Kochi and Calicut. Air India operates 8 flights per week from Dammam to Mumbai, Delhi, Kochi, Calicut, Thiruvananthapuram and Hyderabad. From Al Ain, the Garden City of UAE, Air India operates two services to Kochi/Thiruvananthapuram/Kozhikode. From Bahrain, the carrier currently operates three flights between Bahrain and Mumbai and one flight between Bahrain and Kochi per week. While there are ten flights a week to/from Doha, the largest number of flights are from/to Dubai: 40 per week to nine Indian destinations. These apart, Air India operates three flights to Bangalore, one to Lucknow, one to Goa and one to Chennai, in addition to nine codeshare operations with Emirates.

There are five flights a week to Muscat from Mumbai, a flight each from Delhi and Thiruvananthapuram and four flights from Kozhikode. The carrier operates nine flights a week to Riyadh. Today, Air India operates seven flights per week from Kuwait to western and southern India with connections to all major Indian destinations. In the coming summer, this will be increased to nine, with an additional destination of Ahmedabad.

(There are other airlines like Jazeera, Kuwait Airways and Oman Air in the list but they are not big-ticket players.)

At the Paris Air Show held in June 2007, Qatar Airways placed orders for 80 of Airbus A 350 XWB. The large order most certainly includes Indian traffic in the reckoning 14

CRUISING HEIGHTS November 2007

to-point connections that will be offered with the availability of the Dreamliner 787 will change the very face of Indian market.

At present, Gulf, Oman and Qatar carriers use A 330-200, Boeing 777 while LCCs like Air Arabia and Jazeera fly the A 320s.

Only Saudi and sometimes Kuwait Airways use Boeing 747-400s.

Emirates never use Boeing 747-400 Jumbo for its Indian run. Though it has also placed huge orders for the Super Jumbo A 380, it is not likely to use it on the Indian route and reduce its frequency, as one A 380 may be able to carry twice the capacity of Boeing 777 or A 330. Or, will they use the A 380 capacity to seek higher frequencies from India? Politically, it may be seen that the maximum rights were given by Congress-led UPA government, which is at

the helm of the country now.

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Jetting to the Big Apple!

H.C. Tiwari

J

et Airways is really jet setting. It finalised its order for 20 New Generation (NG) Boeing 737-800 aircraft valued at US $1.5 billion at list prices. All these aircraft will be equipped with performance-enhancing blended winglets that improve fuel efficiency and reduce carbon emissions by four per cent. Jet also announced the launch of its New Delhi-New York (JFK) flights immediately and plans to launch flights to Shanghai from Mumbai and another to San Francisco from Mumbai/Delhi via Hong Kong in 2008. Obviously, these moves will put pressure on the carrier to hire more cabin crew and pilots. To address the pilot issue, Jet has imported two more flight simulators and got them installed at its training school in Mumbai. While it already has two simulators for Boeing 737s—of which one came in 2000 for the classic version and the

JETTING TO THE US: Jet’s Chairman Naresh Goyal with David Mulford, US Ambassador to India, at the press meet

second in 2005 for the NG version— Jet Airways has now acquired two more, of which one is for training pilots on the Boeing 777 series and another for Airbus A 330-340 versions. The four simulators are valued at US $60 million. Jet expects to save annually US $10 million on pilot training and will not send its pilots abroad for training. Jet has a total of 850 pilots and sending them abroad for simulator

INFRASTRUCTURE

NEWS More airports in Tripura As part of India’s Look East Policy, two airports in Tripura are being revamped and made operational soon. The two airports are located at Kailashahar in North Tripura district and at Kamalpur in Dhalai district. The North Eastern Council (NEC), the planning body for the region, has already provided funds for the purpose to the Airports Authority of India (AAI). There are 22 airports in the entire North Eastern region but half of them are not in use. At least 12 of them, are likely to be made operational by the end of 2008. Meanwhile, the AAI plans to develop two new airports at Kokrajhar in Assam and Tawang in Arunachal Pradesh as part of its efforts to expand air connectivity to the northeastern states.

The AAI is also planning to develop an airport at Cheithu in Nagaland and upgrade infrastructure at Pakyong airport in Gangtok.

Wall demolition a serious setback: AAI 16

training will cost US $1000 per hour per pilot including US $500 for boarding/lodging. Jet trained 107 first officers and 54 captains on simulators in 2006-07 and plans to offer 10000 hours training time on the B 737 simulator and 5000 hours each on its new simulators for 777 and A 330-340 during the current fiscal 2007-08. The simulators have been supplied by Canada-based CAE.

Agitated people of Telipukur, Jahajfield, Kuladip Misra Colony and adjoining areas demolished a part of the wall of the Airport at Malda, in protest against the closure of a road. At least 7000 people of the area alleged that they would have no alternative road with the closure of the road by the airport authority. People had earlier expressed fear that the wall would block their roads. The AAI reacted sharply against the demolition of the wall and termed it as a serious setback to the resumption of operations. Residents state that they will have to travel more than seven kilometers to get to town and the closure of the road is a no-no as far as they are concerned.

Air cargo complex at Patna A memorandum of understanding (MoU) has been signed between the AAI, and the Bihar Industrial Area Development Authority (BIADA), for setting up a cargo complex at the Jai Prakash Narayan International Airport in Patna. A joint venture company would be floated which would undertake the development work of the com-

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Slotting to fly Talking about congestion, there has been some increase in the flight slots sought by airlines in the winter of 2007-08 (from end-October to end-March). In the case of Delhi airport, the number of daily aircraft movements have been increased from 780 to 820 and in Mumbai from 720 to 768. Earlier, the winter schedule for Delhi was based on hourly aircraft movement of 28, including international airlines, for Mumbai hourly aircraft movement was slotted at 25 and for Chennai at 16 aircraft per hour. In Delhi airport, operations should be planned commensurate with the airlines capability to operate under Category II/III conditions. Strict adherence to the approved flight schedule and maintenance of on-time performance will be expected of airlines.

Defaulter airlines may even lose historicity of their slots in the next season. Schedules were filed by 10 scheduled airlines for 81 airports and these approximately comprised 3500 daily movements or 24500 movements a week.

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FIA as regulator When the Ministry wants to be seen as being thorough, it does make sure of its homework. If it were not so, why would it have conducted a countrywide study covering the on-time performance of airlines and suggest fines for the ‘habitual offenders’? May be, it is the way the Ministry would like to get back at the airlines which, without heeding Mantriji’s advice, went ahead and imposed congestion surcharge.

Minister Praful Patel feels the government has every right to impose ‘congestion fine’ on the airlines for actually causing congestion by not taking off at the allotted time and thus delaying those behind in the queue. Slots are allotted to airlines based on runway and aircraft handling capacity of different airports.

If an airline is unable to operate its flight on time, it will reach the destination airport at a slotted time for another aircraft and cause a cascading effect. According to Civil Aviation Secretary Ashok Chawla (in the photo), it is necessary for the airlines to have an industry regulator on the lines of the Institute for Chartered

Accountants or Engineers. This is because AERA (Airports Regulatory Authority of India) will only attend to complaints against the airports mainly from user airlines, individuals and others. The existing scheduled airlines have already formed a Federation of Indian Airlines (FIA) that seeks to resolve the common problems of airlines. Maybe FIA itself can be turned into the kind of body Ashok Chawla would like to have.

plex. Both AAI and the state government representatives would be members of the joint venture. The proposed cargo complex at the airport would have, apart from a cold storage to be used for storing perishable items, modern facilities of handling goods meant for shipment.

A facelift at Juhu The AAI has plans to give a facelift to the Juhu airstrip (the country’s first civil aviation airport) within a year. AAI will be investing around Rs 75 crore to Rs 80 crore in this project. The authorities believe the move will help in decongestion of the Mumbai airport by 15 per cent to 20 per cent. Small aircraft, gliders and a heliport to ferry Oil and Natural Gas Corporation (ONGC) personnel currently use the airstrip. AAI will raise the height of the strip by 1.5 meters. As the strip is near the sea, this will avoid flooding during the monsoons. Initially, the strip will be allowed for the landing of small aircraft. Once 3000 more feet are added to the strip, larger aircraft too, can land.

CIAL plans airport-based SEZ Cochin International Airport Ltd (CIAL), that runs the airport in Kochi, is planning to set up an airport-based Special Economic Zone (SEZ) with an estimated cost of Rs 5,000 crore on 300 acres of land.

“For the various business projects planned at our airport, we have applied for an airport-based SEZ status from the govern-

The Cochin International airport

ment,” S. Bharat, Managing Director of CIAL was quoted as telling the media. “A proposed maintenance, repair and overhaul centre for aircraft, IT/ITES park and other knowledge processing based projects will be coming under this airport-based SEZ,” Bharat added. If approved, Kerala will have the third airportbased SEZ in India. Meanwhile, CIAL is also planning to develop an Aerotropolis or an airport city, which will have luxury hotels, golf course, convention centre, logistics centres, amusement parks and cultural villages. The Aerotropolis, which will also focus on medical tourism centres, is a part of the proposed SEZ.

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NEWS DIGEST cargo firms, besides SARAS project of the National Aeronautical Laboratory.

Global News

DAE’s first casualty Dubai Aerospace Enterprise (DAE) Airports, Chief Executive Officer, Kjeld Binger has quit DAE. The announcement came weeks after the company’s $1.8 billion bid to buy Auckland International Airport Limited was rejected. Binger had left Denmark’s Copenhagen Airport to join DAE’s airport unit.

The government of Dubai has earmarked investments exceeding $82 billion for airlines and aerospace to create a Gulf transport hub. DAE Airports, which does not operate any terminals today, plans to run airports in the Middle East, India, China and Central Europe to tap growing passenger traffic and a booming aviation industry. The Emirate created DAE Airports in the April 2007 split-up of its aviation regulator. The government set up Dubai Aerospace, with interests in plane leasing and manufacturing, in 2006. The state-owned company now has six units.

Dubai Aerospace terminated a $1.8 billion agreement to buy at least 51 per cent of Auckland Airport last month after two city councils with a combined 23 per cent holding objected, clearing the way for a Canadian asset manager to acquire a stake in New Zealand’s largest airfield.

P&W to invest $30 m in India US-based aircraft engine manufacturer, Pratt and Whitney (P&W), plans to invest about $30 million in the infotech and spare parts manufacturing sector in India.

“We are planning $30 million investments in businesses relating to infotech and spares. We expect this number to double or more than double in the next three to five years,” P&W President Steve Finger was quoted as saying. In India, about 285 P&W engines are fitted in aircraft owned by erstwhile Indian (now Air India), Kingfisher, Air Deccan, Jetliner, Go Air, Indigo and other air

New airports in West Bengal Behala Airport: Praful Patel is keen on developing the Behala Flying Training Institute or Behala Flying Club (BFC), as it is popularly known, on the outer limits of Kolkata, into a full-fledged commercial airport to facilitate movement of small aircraft. “This will ease pressure on the city’s ‘over-burdened’ Netaji Subhash International Airport.” Praful Patel said this in Kolkata after laying the foundation stone for the upgradation of the BFC, which was idle and non-operational for more than two decades. The AAI has already allocated Rs 10 crore for upgrading the BFC runway, installing ground lights and setting up a boundary wall. “Such small airports are essential for easy movement of air-traffic. But to convert BFC into a full-fledged commercial airport, we need an additional 30 acres of land. The land is required to extend the runway,” the Union Civil Aviation minister pointed out.

Ondal Airport: A new airport is to be built at Ondal near Durgapur in Burdwan district of West Bengal. The proposed site is 175 kilometres from Kolkata. The proposed airport, which will be built over an area of 2300 acres would entail an initial investment of Rs 10,000 crore. The airport itself, covering 1000 acres, will initially have one terminal with two cross-runways and will accommodate 50-seat to 70-seat aircraft. Sources indicate that a consortium of private companies and government undertakings—consisting of Asansol Durgapur Development Authority (ADDA) and Airports Authority of India (AAI)—will execute the project on a turnkey-basis.

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Expedia, Travelocity gung ho on India The world’s largest online travel provider, Expedia Inc., which makes online bookings worth $20 billion (Rs 79,400 crore) a year on its Expedia.com travel portal, will start its Indian operations early next year.

They are starting an exclusive website for India to facilitate online purchases of tickets for domestic and international travel. The company offers a choice of more than 80000 hotels across the globe. Expedia’s plans for the Indian online travel space, already crowded by struggling domestic start-ups, coincides with the consolidation by another international player, Travelocity.com LP, here. Travelocity.com, which had started hotel bookings in India in March, will start selling airline tickets on the Internet by December, a month before Expedia.com.

Cooch Behar Airport: The Minister said that the existing ‘nonoperational’ airport at Cooch Behar is being revamped thoroughly and commercial operations will start shortly. In a related development, an agreement was also signed between BFC and Camelia Group, which has taken it over to train pilots at its aviation institute.

Rs 220 crore upgrade for Pune The Pune International Airport is set for a complete makeover within the next two years with the AAI preparing to pump in Rs 220 crore for an overhaul. Civilian air operations are however, likely to remain severely affected during this timespan.

Parallel taxiway, aircraft hangars, airport complex expansion, cargo complex and various other minor projects are expected to begin during the next six months for which huge investments have been approved. The airport is already undergoing runway re-carpetting, due to which daily flying hours have been curtailed. Over Rs 70 crore on the expansion of the passenger lobby and other facilities at the airport have already been spent.

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Hello Sabena, bye bye CTE? BELGIUM’S SABENA Flight Academy— one of the world’s leading flight academies, is planning to invest € 80 million (Rs 450 cr) to set up an aviation academy at the new Hyderabad International Airport Limited being developed by GMR group. The Brussels academy will offer training packages for aviation-related activities covering pilot and cabin crew training, engine engineers, technicians and aviation consultants.

According to the MoU, Sabena will establish necessary infrastructure including accommodation for 200 trainees per year,

six flight simulators, cabin trainers and engineering/tooling centre. This is a welcome development as earlier GHIAL had entered into an agreement with Lufthansa Technik for setting up a state-of-the-art MRO at its upcoming airport at Shamsabad, about 22 km from the existing Begumpet airport.

If all goes well, promoter GMR can carve out an exclusive space for both the MRO and Training Academy. But what will happen to the Central Training Establishment (CTE) of Air India? The CTE may simply close down. It will be a great

Striking a deal IT HAS BEEN a break with the past. Earlier, when Air India purchased aircraft it only managed to get a comfort letter from the Government of India. This time round, however, while entering into an agreement with the US EXIM Bank, Air India managed to get a sovereign guarantee from the Indian Government — of course, for a fee.

In October 2007, the US EXIM Bank stood surety, or should we say guarantee for US $1.23 billion loan to help Air India buy 17 Boeing aircraft and four spare engines, as part of Air India’s 68 aircraft fleet renewal plan. The US entity signed a US $862.6 million guarantee for an ABN-AMRO long-term loan to back the sale of Boeing 777-200 LR, Boeing 777-300 ER and GE 90 spare engines. The US EXIM Bank also signed a US $363.5 million guarantee for an ABN-AMRO long-term loan to support

the sale of Boeing 737-800 aircraft and CFM 56 spare engines from CFM International.

The agreement was reached with the National Aviation Company of India Limited (which holds the Air India brand). This marked the completion of the financing documentation for the 17 aircraft and spare engines, with a couple of more such agreements waiting to be initiated and executed as Air India has ordered 68 Boeing aircraft.

The deal was concluded a rate below LIBOR and was clinched through two SPVs (Special Purpose Vehicles) set up in the US and Ireland to benefit from lower tax rates.

The sovereign guarantee from the Indian government came at a fee of 0.5 per cent per annum. Of the total amount raised, the US EXIM Bank has guaranteed about US CRUISING HEIGHTS November 2007

tragedy should that happen because as per agreement between GoI and GMR, the existing airport at Begumpet will have to be closed once the new airport at Shamsabad becomes operational from March-April 2008.

Why would anyone want to train at the Begumpet simulator and drive down to Shamsabad for actual real time flying training? And once the CTE shuts shop, why will anyone go to Sabena Academy at all?

The key to survival of all lay in retaining the Begumpet airport. Already, employees of AAI and many MPs cutting across party lines have petitioned Prime Minister Dr Manmohan Singh that Begumpet airport be retained at least for domestic operations.

If that happens, then even the CTE of Indian can hope to breathe and train. $1.2 billion and another US $200 million has been raised through commercial borrowings from SBI and ICICI. The commercial part has been raised above LIBOR, sources said. Air India expects further reduction in the exposure fee once India signs the Cape Town Treaty, which is a treaty of international agreement that aims to create consistency in cross-border financing and leasing of high value moving items like aircraft, etc. Air India paid an Exposure Fee of three per cent to the US EXIM Bank that would be reduced by one per cent when India signs and joins the Cape Town Treaty.

As per the details of the deal, an SPV has been set up at Delaware, US, that will acquire the aircraft as well as be the actual borrower. This Delaware-based company will then lease the aircraft to another SPV set up at Ireland. From thereon, both Air India and Air India Express will sub-lease the planes from the Irish entity. India has a double taxation avoidance treaty with Ireland that will help reduce the tax on lease payment.

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Completely unfair EVERYONE KNOWS that it is not easy when it comes to seeking the clearance of the Ministry of Civil Aviation to start a new scheduled airline. The babus ask hundred questions and the political leadership a few thousand more, often putting off even those who are genuinely Indian and within the clearly laid-down rules to launch a new domestic airline in India. Though it is true that no applicant has been rejected outright, but all have been delayed beyond patience and in the process, truncating the very business plan, which was supposed to guide their business of running an airline in the first place. The stock answer has been, "there is no infrastructure to allow new scheduled operators" — at least in the metros.

The Ministry found a viable media and announced its famous regional airlines that are supposed to operate within their region. It is more than three months

and many airlines are awaiting clearance to start operations. As for Full and LCC type scheduled carriers, all the 13 whose applications were pending continue to wait because there is no infrastructure. In contrast, the Ministry finds absolutely no problem in quickly granting clearances to the existing carriers to acquire more and more aircraft.

In October 2007, the Aircraft Acquisition Committee in the Ministry of Civil Aviation gave in-principal approval to Kingfisher Airlines to import 50 Airbus aircraft that included 15 A 350s, 20 A 320s, 5 A 340s and 10 A 330s. This

fisher Airlines is planning to launch international flights like direct Bangalore-San Francisco from mid-2008, with the acquisition of A 340-500.

The 20 additional A 320s being acquired will help to spread Kingfisher’s network and reach within India that will ultimately serve the airlines upcoming hub in Bangalore. A similar acquisition by Jet Airways, of 10 firm Boeing 737-800s and 10 options, has been given an in-principal approval by the Ministry of Civil Aviation. This comes on top of the approval given earlier for Boeing 787s and 777-300 ERs. Clearly, this is a deliberate disturbance of the level playing field by putting up artificial entry barriers to new players. If there is no infrastructure available for new

approval was based on the application Kingfisher made after it entered into a MoU with Airbus Industrie, for the purchase of these aircraft at the Paris Air Show in June 2007. The value of the order was US $7 billion. The first of the 50 aircraft will arrive in March 2008 but its first A 350 will have to wait till 2014. King-

entrants who may, in the first two years of operations, bring in not more than, say, 7 to 8 aircraft, how can the same infrastructure sustain induction of more than 40 widebody and narrowbody aircraft in the same time frame? This distortion of competition has been unchallenged, as coalition politics does not allow scrutiny.

out by MMRDA, said a spokeperson of MIAL. Sources add that the survey figures would be available in a few weeks time and that over 2.5 million sq ft of built up area would be needed to accommodate the slum dwellers.

HDIL gets slum rehab project

AAI, AHA join hands to impart training The Airports Authority of India (AAI) and Air Hostess Academy (AHA) have signed an agreement, under which AHA students will undergo a training programme at the Pune International Airport. Pune Airport Director terms it a pilot project as part of its endeavour to offer training to aviation career aspirants. This is also part of the Ministry of Civil Aviation’s policy decision to allow students in the aviation sector to avail on-site work experience at airports. The training of the first batch of 30 AHA students is already underway at Pune.

MORE SAFE: The new Bangalore Airport would be most secure

The Mumbai-based real estate developer Housing Development and Infrastructure Ltd (HDIL) has been awarded the contract for resettlement and rehabilitation of Mumbai airport slums spread over an area of 276 acres. HDIL was chosen from among five players in a competitive bidding called by Mumbai International Airport Ltd (MIAL), which runs the Chhatrapati Shivaji International Airport. Under the contract, HDIL would need to resettle about 80000 slum households. However, the official figures would be ascertained on the completion of a survey being carried

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Mohali fastracks airport project A site near the Chandigarh airport has been identified for an international airport at Mohali. The airport, a joint venture between the Airports Authority of India (AAI) and Greater Mohali Area Development Authority (GMADA), will be the second international airport in Punjab after the one at Amritsar. The state government will start acquiring land for the project from December after an agreement is signed next month. The state government wants equity or joint venture in the project, as the government

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Red Eye business During October 2007 two issues were raised and both had to do with “red eye” for flights out of India to foreign destinations and absence of “red eye” for flights within India.

If the sauce is sweet for the goose, then how can it be sour for the gander? At a recent meeting of ICAO (International Civil Aviation Organisation), India requested that the night curfew restrictions imposed by some countries on the operations of airlines should be reviewed. India argued that imposition of night curfew created a mismatch in utilising infrastructure round the clock and hampered the growth of airlines.

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Curfew at some airports during the night caused congestion at other times of the day ,leading to an adverse impact on the environment that of late has been impacted by noise and emission from jet engines. Though the manufacturers have been addressing this issue, a sharp increase in the number of aircraft and passengers has accentuated this problem in the perception of Europeans.

However, statistics shows that Frankfurt’s share of noisy aircraft dropped from 49 per cent to 9 per cent after it imposed a ban on aircraft flying in and out of the airport at night. Night curfew generally exists for about 8 hours beginning, say at 10 pm.

In Europe alone, night curfew affects flights operated by Air India and Jet to Birmingham, London, Paris, Frankfurt and Brussels. This has forced airlines to take off from their home base at unearthly hours so that they land in the night-curfew-bound airports in the early morning or in non-curfew hours. That is why we are often forced to take flights two hours past midnight from India. This is an unwritten rule of “red eye” flights. Once India signs the “horizontal agreement with EU” virtually ushering an Open Sky regime, will Indian carriers not be at a disadvantage as they will continue to operate “red eye” flights while the European carriers will take off fresh in the morning?

While the ICAO plea has reverberated in European capitals, what we are now hearing is a formal request from the Ministry of Civil Aviation to have “red eye” flights

would be acquiring land for the project. About 300 acres of land will be acquired by the state government for the purpose. Sources said the state government estimates that it will have to shell out some Rs 500 crore to acquire the proposed 300 acres of land as it costs around Rs 1.5 to Rs 2 crore per acre in the area. Since the SAD-BJP government had changed the Land Acquisition Policy of the state, it now has to pay the market price for the acquired land.

JCDecaux wins BIAL deal Outdoor advertising agency JCDecaux, with presence in Europe and in the Asia-Pacific region, has won the advertising contract for Bangalore International Airport Ltd (BIAL), which will open its doors to passengers on March 30, 2008. This exclusive contract, for a period of seven years, was secured following a competitive tender process. JCDecaux will be BIAL’s exclusive partner for all advertising inside and outside the airport,

between 11 pm and 5 am on the domestic sector to ease congestions at large airports.

For this to happen, the Ministry is even ready to offer incentives like waiver of landing, parking and navigation charges at airports. Red Eye flights are popular and cheaper in the US where it takes about six to seven hours to fly from west coast to east coast and vice versa. Earlier this year, airlines were offered differential tariffs for landing at Delhi, Mumbai and Bangalore airports during non-peak hours. However, the airlines were not enthusiastic.

Now we hear the likes of Jet, Kingfisher, Air India, etc., may look at it seriously.

But what is not factored into is the 25 per cent extra (at least in Delhi as night surcharge from 11 pm to 5 am) taxi charge passengers will have to pay for either catching a flight or reaching home after a flight, respectively, as red eye flights are only between metro airports or where there is full night facility available. But what will the consequences be when the December-January fog sweeps across airports in Delhi, Kolkata and Bangalore? No one knows what will be the impact of new airports at Bangalore, Hyderabad, Sri Perumbudur, Navi Mumbai, and Greater Noida, etc.—when they become operational—for passengers living far away, notwithstanding the planned expressway and metro rail connections? Even if airfares become competitive, passengers will end up paying more for surface transportation that will surely cause them a red eye.

including the approach road to the airport.

Autogrill enters India Italian catering giant Autogrill has won a €70 million ($99 million) contract to provide food and beverage services at the new international airport near Hyderabad. The contract runs for seven years starting March 1, 2008. Autogrill operates at 230 airports in 34 countries around the world.

GHIAL ties up with HMSHost GMR Hyderabad International Airport Limited (GHIAL) has awarded the contract of setting up, operating and maintaining F&B outlet to HMSHost, a world leader in travel dining and shopping. As per the contract, HMSHost will be responsible for setting up, operating and maintaining the major part of the F&B outlets at the new international airport. The locations would be on the airside at departure level (both International and Domestic) and at the bus gates.

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GLOBETROTTING

AT A GLANCE

Fear of flying

Pilot Pablo Mason is now without a job after he allowed Blackburn Rovers foot-

Violent mother creates baller Robbie Savage into the cockpit, in an attempt to ease Savage's fear of flying.

Mason believes the cockpit visit helped Savage feel a little more comfortable in an airplane. As far as Mytravel is concerned, however, the ends did not justify the means. “We have a zero tolerance policy towards any action which could endanger the safety of our passengers and employees,” a spokesman said. Mason plans to appeal the airline's decision.

The saga of a toe

L

ONDON’S DAILY Mail has reported a woman’s elderly father was “lost in transit” by British Airways last month. It all began when Zafer Ghadban, 83, arrived at Heathrow the morning of July 22, for an eight-hour layover. His daughter Mimi said he had been visiting relatives in Jordan, and airline workers were under orders to treat the frail man — who recently had a toe amputated—with special care.

Upon noticing what appeared to be blood on the man’s bandaged foot, a BA employee deemed the man unfit to fly, and sent him to the hospital. As it turns out, the stain was actually red dye, used by doctors in Jordan.

However, things started to turn when Ghadban returned to the airport shortly before 11:00 pm—no one, including British Airways workers, has figured out how he got back there—and airline employees discovered he had missed his 7:45 pm connecting flight to Montreal.

No arrangements had been made for a place for Ghadban to stay while waiting for the

22

next flight out. He wound up sleeping on a bench in Terminal Four.

When Ghadban awoke the next morning, he suffered a stroke and fell from the bench, breaking his hip. He is now back in the hospital... where he is expected to stay for several months, awaiting hip replacement.

“My father speaks very little English and is clearly vulnerable,” she said. “But when he missed his flight, nobody thought to contact his family to tell us what had happened or where he was. Neither had anyone thought to book him on another flight home, help him find a hotel or even check that he was okay. He just got lost in the system.”

Adding insult to literal injury, a spokesman for British Airways claims the airline’s “duty of care” for the elderly Ghadban ended when he was declared unfit to fly, and sent to the hospital.

So far, Mimi Ghadban says she has yet to receive an apology from British Airways... or any information on her father’s luggage, which was sent on to Canada without him.

CRUISING HEIGHTS November 2007

He was just trying to be a good samaritan

WELL, THIS IS certainly embarrassing. The Jacksonville Aviation Authority Police Department is investigating a Mesa Airlines pilot who has been accused of taking a passenger’s iPod while going through a security checkpoint at Jacksonville International Airport.

The sad part is, he was caught on camera and admitted he’d done it to police... but reportedly said, it would have been taken by airport employees, anyway. A review of the security tape showed pilot Christopher Newton placing an empty container over the container holding a passenger’s belongings, apparently as a cover, then removing an item from the lower container.

The pilot then placed the item he’d removed in his computer bag.

When Newton was located by police, already on board United Express Flight 7332 getting ready to go, he admitted he did indeed have the iPod in question. He said he took it because it was just going to be confiscated by airport employees. After Newton gave the iPod to police, he was allowed back in the cockpit because the incident made the flight 15 minutes late.

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THE MOTHER of a two-yearold and a four-year-old was arrested at Denver International Airport for striking both children on a Frontier Airlines flight. An FBI affidavit says, passengers reported Freeman appeared intoxicated, was using profane language and was abusive to her children prior to boarding the plane. She then

Multipurpose passport allegedly hit and yelled at them repeatedly during the flight to the point they were cowering and crying on the floor. Freeman also allegedly threw a drink at a flight attendant when she intervened and followed her onto the aisle yelling, so Freeman is also facing a felony charge of interfering with the flight crew.

Now that’s a new one!

WATCHDOG GROUPS that keep a sharp eye on public spending are saying that the National Aeronautic and Space Administration fails to exercise “effective control” over $35 billion worth of property, reported in its financial statements.

The groups allege, NASA employees have “lost” $94 million worth of stuff during the past 10 years.

Some of the items were located in audits. There are, however, some perfectly ‘reasonable’ explanations as to where some of the rest went.

A June General Accounting Office report lists some of the reasons submitted to missing stuff. Some employees played it safe and employed some classic excuses like, “I lent it to someone but forget who” and “I borrowed it for my wife and never got a receipt when I gave it back.”We think the best one was used by an employee who’d misplaced a laptop computer worth some $4,000. He or she gave an excuse only a NASA employee could give—and possibly get away with.

“This computer, although assigned to me, was being used on board the International Space Station. I was informed it was tossed overboard to be burned up in the atmosphere when it failed.”

It’s feasible. After all, haven’t we all wanted to do just that at one time or another?

There’s a monkey on you, sir SCREENERS IN LIMA, Peru have some explaining to do, after a man smuggled a tiny monkey onto a Spirit Airlines flight bound for the US. Multiple news reports state, the man purchased the pygmy marmoset off the streets of Lima, before catching the flight to Fort Lauderdale, FL and on to New York. CBS-2 in Chicago reports the man was able to dupe security in Lima, by keeping the monkey under his hat... and once again at FLL, as he waited several hours for his connecting flight to LaGuardia.

Passengers on the FLL-LGA flight said, once onboard the man made no attempt to hide his monkey. The marmoset

AS A FLYGLOBESPAN jet was in the process of taxiing to the runway for takeoff at Edinburgh Airport, a teenager apparently thought it was time to party.

As his fellow passengers looked on, a 19 year-old guy casually flipped down his tray table and proceed to snort cocaine— using his passport.

When the cabin crew was notified, the pilot promptly returned to the gate, according to the Scotsman.

Once back at the gate, police boarded the flight and questioned passengers for an hour before removing them all, so narcotics dogs could search the aircraft.

reportedly spent much of the flight clinging to the man’s ponytail—prompting some to ask ‘if he knew he had a monkey on him.’

Hurry up with the apple juice A DELTA CONNECTION flight from LaGuardia to Greensboro, NC was forced to make an unscheduled stop at Philadelphia International Airport, after a passenger got upset because his apple juice was too slow in coming.

Around 5:00 pm, an altercation occurred between a male passenger, complaining about slow service, and the flight attendant who was preparing the drink, according to Fox News.

The juice was reportedly requested for a crying child and the man “used profanity” and “threw the drink in an angry outburst” causing the flight attendant to feel threatened. The passenger caused a big enough ruckus that the pilot chose to err on the side of caution and land at PHL to make sure the passenger sufficiently calmed down.

Can screeners with light sabres be far behind?

THE US DEPARTMENT of Homeland Security will soon arm federal agents—including air marshals, border patrol agents, and customs officials— with a non-lethal weapon that emits a blinding strobe light to subdue criminals.

“The light could be used to make a bad guy turn away or shut his eyes, giving authorities enough time to tackle the suspect and apply the cuffs, all while sparing the lives of passersby, hostages or airline passengers,” according to a description from the Homeland Security Department’s science and technology division. DHS hopes to have the LED Incapacitators in the hands of agents by 2010.

CRUISING HEIGHTS November 2007

23

Illustrations by Rajeev Kumar

a ruckus

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From Air Deccan to Simplifly Deccan. Ever since the marriage of sorts with Vijay Mallya’s Kingfisher, Captain G. R. Gopinath's baby has undergone a change in the distinct identity it had carved out for itself. Will the common man now be ready to fly the good times, asks R. KRISHNAN.

FLYING IN

FORMATION I

t is no longer a secret. The pioneer of Indian aviation who brought the joy of flying to the common man may soon become uncommon himself as would the mascot of his airline: Cartoonist R.K. Laxman’s famous common man.

Yes, of course, we are talking of the great Captain G. R. Gopinath, affectionately called Gopi. No doubt Gopi revolutionised India’s aviation industry and in a very short time of four years built up a network that was larger than the half-a-century old connections offered by Indian (now part of Air India).

The lightning pace at which Air Deccan grew was truly a miracle. It was a pace that set the benchmark, brought the prices tumbling down, fuelled the growth and produced a slew of comments from his competitors and rivals that this was no miracle and that Gopi was ruining the industry. In the process of flying everywhere Gopi bled and bled and bled.

His fares could never cover costs and it finally came to such a pass that there was no moolah in the kitty. And, in sheer desperation he had to sell stock to keep the airline afloat. There was pressure too, from many of his promoter friends.

They too, wanted Gopi to bring in some longterm stability. So he had to choose between several suitors till he finally settled for the man with whom he had quarreled all the years he had been in aviation. In came UB Group and Vijay Mallya.

But no institution is big enough for two fiercely independent thinking individuals wanting to do the same thing in different ways. On the one hand, you have Gopi — very middle class, sedate and for whom every penny matters — and

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From Air Deccan to Simplifly Deccan. Ever since the marriage of sorts with Vijay Mallya’s Kingfisher, Captain G. R. Gopinath's baby has undergone a change in the distinct identity it had carved out for itself. Will the common man now be ready to fly the good times, asks R. KRISHNAN.

FLYING IN

FORMATION I

t is no longer a secret. The pioneer of Indian aviation who brought the joy of flying to the common man may soon become uncommon himself as would the mascot of his airline: Cartoonist R.K. Laxman’s famous common man.

Yes, of course, we are talking of the great Captain G. R. Gopinath, affectionately called Gopi. No doubt Gopi revolutionised India’s aviation industry and in a very short time of four years built up a network that was larger than the half-a-century old connections offered by Indian (now part of Air India).

The lightning pace at which Air Deccan grew was truly a miracle. It was a pace that set the benchmark, brought the prices tumbling down, fuelled the growth and produced a slew of comments from his competitors and rivals that this was no miracle and that Gopi was ruining the industry. In the process of flying everywhere Gopi bled and bled and bled.

His fares could never cover costs and it finally came to such a pass that there was no moolah in the kitty. And, in sheer desperation he had to sell stock to keep the airline afloat. There was pressure too, from many of his promoter friends.

They too, wanted Gopi to bring in some longterm stability. So he had to choose between several suitors till he finally settled for the man with whom he had quarreled all the years he had been in aviation. In came UB Group and Vijay Mallya.

But no institution is big enough for two fiercely independent thinking individuals wanting to do the same thing in different ways. On the one hand, you have Gopi — very middle class, sedate and for whom every penny matters — and

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Air Deccan will always be close to Captain Gopinath

T

on the other there is the flamboyant Mallya for whom a lifestyle statement is more important than the bottomline. But it doesn’t really matter. The liquor business makes sure that at some time he will amortise his investments.

The statements by Mallya and his men over the past few weeks point to a new plan of action. Mallya wants to make Air Deccan — rechristened Simplifly Deccan — a subsidiary of UB, and do all those things that he is unable to do with Kingfisher (because the airline is under-age in civil aviation parlance and still two years away from the ‘five years in existence’ rule for airlines wishing to fly overseas).

As a prelude to this, the board of Deccan Aviation (promoter of Air Deccan) at its meeting held in Bangalore on October 31, 2007 inducted Dr Vijay Mallya, as Vice-Chairman of the board and two of his trusted officials — Ravi Nedungadi, CFO UB Group and Hitesh Harshad Patel, Executive Vice President Kingfisher — as members of the Deccan Aviation Board. These developments took place in October 2007, nearly five months after Mallya first acquired 26 per cent in Deccan and later topped it up with another 20 per cent purchased through SEBI mandated open offer route. Though Mallya was offered many more shares, he decided to stop at 20 per cent thus taking his stake in Deccan to 46 per cent, or single largest by any one entity. It is only a question of time before he takes his stakes to 51 per cent or more. He is reported to have spent

26

over Rs 1,000 crore to buy 46 per cent stake in Deccan Aviation.

In the full financial year 2006-07 (July-June) Deccan Aviation posted a turnover of Rs 2,142.30 crore, a net loss of Rs 419.57 crore and carried 6.8 million passengers. In the first quarter of the new fiscal 2007-08 (July-June) Deccan’s losses rose nearly six times to Rs 253.18 crore as against Rs 42.9 crore in the same quarter of the previous year. In terms of numbers, the losses in the first three months of 2007-08 have reached nearly 68 per cent of the total losses made in the previous full year. In a way, the business has become just unsustainable. All this was happening when the airline recorded nearly 25 per cent rise in net sales.

Obviously, there was something fundamentally wrong in the business model just as there is a serious flaw with Mallya’s beloved Kingfisher Airlines that has never revealed its true financial health to outsiders. Those in the know, however, say that Mallya has made even bigger losses. Why is it that the two models are not working and is there any possibility of softening the blow? To illustrate the point, let’s take a close look. In May 2007, while attending CANSO Conference organised

by AAI at Kochi, Mallya was telling some leading lights of aviation that neither Gopi was making money, despite more than 82 per cent load factor nor Kingfisher with 70 per cent load factor. For Gopi, he said, the more Deccan carried the more it lost. As for himself he simply could not make CRUISING HEIGHTS November 2007

more as the fares had come to be pegged to the new low benchmark established by Gopi. In the very next month, Mallya took 26 per cent stake in Gopi’s airline and five months later 20 per cent more and entered the Deccan Board with his confidants Ravi Nedungadi and Hitesh Patel, who is reportedly an Airbus aircraft buff.

Since taking over, Mallya has already hiked Deccan fares but it is yet to make a difference. He is confident that both his own Kingfisher and Deccan would begin making profits from the next fiscal 200809 — hopefully. For all of this to happen he needs to run Deccan as per his wishes and not as desired by Gopi, currently Executive Chairman of Deccan. It was ‘perhaps’ in line with this thinking that Mallya has been making statements, both in India and abroad, to convey the message to would-be investors everywhere.

No one seems to have got the essence of this message more clearly than Tom Enders, CEO of Airbus, who at a recent press conference in Bangalore looked to his right to tell Mallya that he was doing a great job. As he apologised for coming late to the press conference in Bangalore because of the messy traffic, he looked left at Gopi to tell him that the traffic congestion on ground offered him a new opportunity to do brisk helicopter ferrying business. So, the message was clear: fixed wing for Mallya and hopefully rotor business, should Gopi want it.

In fact, Gopi had himself said in July 2007, that he wanted to restructure his hel-

o say that Captain Gopinath and Vijay Mallya are like chalk and cheese would be to stress the obvious. One of his team members summed it up succinctly by stating, “if Captain Gopi had to host a party he would probably plump for a piano recital by Dr L. Subramanium, but Dr Mallya will go for Beyonce or Shakira”. That’s the difference.

As long as it was limited to the music business, the notes wouldn’t be jarring. Unfortunately, it is now slowly but surely creeping into the Kingfisher alliance — something which began as a purchase of stake but has turned out to be a full-fledged takeover.

Take, for example, the business of the relationship between Simplifly Deccan and Kingfisher Airlines. Is it a synergy? A collaboration? or one being the subsidiary of the other in a prelude to a takeover? According to Captain Gopinath it is simply a matter of integrating operations. “We have appointed Accenture to study and advise us on the matter,” he said. The study would look into areas like integrating the manpower and elimination of duplication of manpower or services. It will also go into effective deployment of personnel and look at the services offered at various points.

Ravi Nedungadi, Chief Financial Officer of the UB Group, told the Business Standard: “Accenture has been told to look at different ways of integration of the two airlines including the option of a legal merger.” Gopinath’s reaction to this was simple: “The mandate to Accenture is clear — it is about suggesting ways to integrate the operations of the two airlines. However, if it decides to recommend a merger, I will consider it at that time. I will do whatever is good for the company.”

In an interaction, Gopi was candid that come what may, it will be impossible to undo what he has already done: “Forces unleashed by me are irreversible. More than four years ago I started Air Deccan and offered DelhiBangalore at Rs1,200. Earlier there was a tacit and cozy cartelisation between Jet, IA and Sahara to ensure prices remained high. The travelling public had no choice. Those were the days when oil prices were one-third of what they are today and salaries were half and fares three times of today’s. So I want to know, how can there be profits today? This defies logic. On a full service you can get a Bangalore-Delhi for Rs5,000, which LCCs — three days in advance — are offering at Rs4,000 and you are making profits.”

“Vijay Mallya and Naresh Goyal said where is low

cost in India? And alluded to low fares. But you can offer low fares only if the costs are low. Look at Easy Jet and Ryan Air. Vodafone is sending its managers to India to understand the low cost model. I am proud to say today that it is Air Deccan and not Indian Airlines (now Air India) that is the national carrier. If IA touches 44 stations, I connect 66.

“The other day Praful Patel sitting with West Bengal CM called me on phone and said: ‘Gopi can you do a flight to Cooch Behar?’ The Chattisgarh CM met me seeking flights in his state. All of this because of my model, and it also implies the need for integrating smaller airports.”

On Integration, Gopi was confident. If the two companies put their heads together it was achievable. He pointed out that the two airlines now have “an Air Deccan man who is heading the logistics of the two airline. It only proves that we are very good in many areas. They are good in marketing, so they are driving the marketing.”

But there is still a certain romanticism in Captain Gopinath and his vision. He says he made it a mission to break the price barrier in flying, even if his balance sheet suffered. Air Deccan embarked on a furious expansion spree to inject capacity into the industry. The expansion rate at a point peaked at 18 new aircraft in just nine months. He is sanguine about it. “You need to scale up your business. If your top line remains constant your business will collapse. You need to create a carrier profile.

You need the numbers to reduce your overall costs. But profit is sacred. I don’t think anything can survive today if there is no profit. You need taxes and only people who make profit pay taxes. But for having profit you need topline growth.”

On the sale to Kingfisher, there is a bit of realism in his argument. “If I was not big and vulnerable, I would have been small and vulnerable. If you are small, you are finished, killed. Why were people queuing up for us? In four years we overtook Indian’s market share, which is 53 years old.”

The initial approach by Vijay Mallya to buy the airline was met with nothing but open hostility. Capt. Gopinath says that was because he was not in favour of losing the Air Deccan identity.

For the moment it is Air Deccan, but Captain Gopinath is honest that he is looking at new ideas. Something he doesn’t wish to discuss in any detail.

But one thing is clear: He will always be ‘emotionally’ attached to Air Deccan.

CRUISING HEIGHTS November 2007

27

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Air Deccan will always be close to Captain Gopinath

T

on the other there is the flamboyant Mallya for whom a lifestyle statement is more important than the bottomline. But it doesn’t really matter. The liquor business makes sure that at some time he will amortise his investments.

The statements by Mallya and his men over the past few weeks point to a new plan of action. Mallya wants to make Air Deccan — rechristened Simplifly Deccan — a subsidiary of UB, and do all those things that he is unable to do with Kingfisher (because the airline is under-age in civil aviation parlance and still two years away from the ‘five years in existence’ rule for airlines wishing to fly overseas).

As a prelude to this, the board of Deccan Aviation (promoter of Air Deccan) at its meeting held in Bangalore on October 31, 2007 inducted Dr Vijay Mallya, as Vice-Chairman of the board and two of his trusted officials — Ravi Nedungadi, CFO UB Group and Hitesh Harshad Patel, Executive Vice President Kingfisher — as members of the Deccan Aviation Board. These developments took place in October 2007, nearly five months after Mallya first acquired 26 per cent in Deccan and later topped it up with another 20 per cent purchased through SEBI mandated open offer route. Though Mallya was offered many more shares, he decided to stop at 20 per cent thus taking his stake in Deccan to 46 per cent, or single largest by any one entity. It is only a question of time before he takes his stakes to 51 per cent or more. He is reported to have spent

26

over Rs 1,000 crore to buy 46 per cent stake in Deccan Aviation.

In the full financial year 2006-07 (July-June) Deccan Aviation posted a turnover of Rs 2,142.30 crore, a net loss of Rs 419.57 crore and carried 6.8 million passengers. In the first quarter of the new fiscal 2007-08 (July-June) Deccan’s losses rose nearly six times to Rs 253.18 crore as against Rs 42.9 crore in the same quarter of the previous year. In terms of numbers, the losses in the first three months of 2007-08 have reached nearly 68 per cent of the total losses made in the previous full year. In a way, the business has become just unsustainable. All this was happening when the airline recorded nearly 25 per cent rise in net sales.

Obviously, there was something fundamentally wrong in the business model just as there is a serious flaw with Mallya’s beloved Kingfisher Airlines that has never revealed its true financial health to outsiders. Those in the know, however, say that Mallya has made even bigger losses. Why is it that the two models are not working and is there any possibility of softening the blow? To illustrate the point, let’s take a close look. In May 2007, while attending CANSO Conference organised

by AAI at Kochi, Mallya was telling some leading lights of aviation that neither Gopi was making money, despite more than 82 per cent load factor nor Kingfisher with 70 per cent load factor. For Gopi, he said, the more Deccan carried the more it lost. As for himself he simply could not make CRUISING HEIGHTS November 2007

more as the fares had come to be pegged to the new low benchmark established by Gopi. In the very next month, Mallya took 26 per cent stake in Gopi’s airline and five months later 20 per cent more and entered the Deccan Board with his confidants Ravi Nedungadi and Hitesh Patel, who is reportedly an Airbus aircraft buff.

Since taking over, Mallya has already hiked Deccan fares but it is yet to make a difference. He is confident that both his own Kingfisher and Deccan would begin making profits from the next fiscal 200809 — hopefully. For all of this to happen he needs to run Deccan as per his wishes and not as desired by Gopi, currently Executive Chairman of Deccan. It was ‘perhaps’ in line with this thinking that Mallya has been making statements, both in India and abroad, to convey the message to would-be investors everywhere.

No one seems to have got the essence of this message more clearly than Tom Enders, CEO of Airbus, who at a recent press conference in Bangalore looked to his right to tell Mallya that he was doing a great job. As he apologised for coming late to the press conference in Bangalore because of the messy traffic, he looked left at Gopi to tell him that the traffic congestion on ground offered him a new opportunity to do brisk helicopter ferrying business. So, the message was clear: fixed wing for Mallya and hopefully rotor business, should Gopi want it.

In fact, Gopi had himself said in July 2007, that he wanted to restructure his hel-

o say that Captain Gopinath and Vijay Mallya are like chalk and cheese would be to stress the obvious. One of his team members summed it up succinctly by stating, “if Captain Gopi had to host a party he would probably plump for a piano recital by Dr L. Subramanium, but Dr Mallya will go for Beyonce or Shakira”. That’s the difference.

As long as it was limited to the music business, the notes wouldn’t be jarring. Unfortunately, it is now slowly but surely creeping into the Kingfisher alliance — something which began as a purchase of stake but has turned out to be a full-fledged takeover.

Take, for example, the business of the relationship between Simplifly Deccan and Kingfisher Airlines. Is it a synergy? A collaboration? or one being the subsidiary of the other in a prelude to a takeover? According to Captain Gopinath it is simply a matter of integrating operations. “We have appointed Accenture to study and advise us on the matter,” he said. The study would look into areas like integrating the manpower and elimination of duplication of manpower or services. It will also go into effective deployment of personnel and look at the services offered at various points.

Ravi Nedungadi, Chief Financial Officer of the UB Group, told the Business Standard: “Accenture has been told to look at different ways of integration of the two airlines including the option of a legal merger.” Gopinath’s reaction to this was simple: “The mandate to Accenture is clear — it is about suggesting ways to integrate the operations of the two airlines. However, if it decides to recommend a merger, I will consider it at that time. I will do whatever is good for the company.”

In an interaction, Gopi was candid that come what may, it will be impossible to undo what he has already done: “Forces unleashed by me are irreversible. More than four years ago I started Air Deccan and offered DelhiBangalore at Rs1,200. Earlier there was a tacit and cozy cartelisation between Jet, IA and Sahara to ensure prices remained high. The travelling public had no choice. Those were the days when oil prices were one-third of what they are today and salaries were half and fares three times of today’s. So I want to know, how can there be profits today? This defies logic. On a full service you can get a Bangalore-Delhi for Rs5,000, which LCCs — three days in advance — are offering at Rs4,000 and you are making profits.”

“Vijay Mallya and Naresh Goyal said where is low

cost in India? And alluded to low fares. But you can offer low fares only if the costs are low. Look at Easy Jet and Ryan Air. Vodafone is sending its managers to India to understand the low cost model. I am proud to say today that it is Air Deccan and not Indian Airlines (now Air India) that is the national carrier. If IA touches 44 stations, I connect 66.

“The other day Praful Patel sitting with West Bengal CM called me on phone and said: ‘Gopi can you do a flight to Cooch Behar?’ The Chattisgarh CM met me seeking flights in his state. All of this because of my model, and it also implies the need for integrating smaller airports.”

On Integration, Gopi was confident. If the two companies put their heads together it was achievable. He pointed out that the two airlines now have “an Air Deccan man who is heading the logistics of the two airline. It only proves that we are very good in many areas. They are good in marketing, so they are driving the marketing.”

But there is still a certain romanticism in Captain Gopinath and his vision. He says he made it a mission to break the price barrier in flying, even if his balance sheet suffered. Air Deccan embarked on a furious expansion spree to inject capacity into the industry. The expansion rate at a point peaked at 18 new aircraft in just nine months. He is sanguine about it. “You need to scale up your business. If your top line remains constant your business will collapse. You need to create a carrier profile.

You need the numbers to reduce your overall costs. But profit is sacred. I don’t think anything can survive today if there is no profit. You need taxes and only people who make profit pay taxes. But for having profit you need topline growth.”

On the sale to Kingfisher, there is a bit of realism in his argument. “If I was not big and vulnerable, I would have been small and vulnerable. If you are small, you are finished, killed. Why were people queuing up for us? In four years we overtook Indian’s market share, which is 53 years old.”

The initial approach by Vijay Mallya to buy the airline was met with nothing but open hostility. Capt. Gopinath says that was because he was not in favour of losing the Air Deccan identity.

For the moment it is Air Deccan, but Captain Gopinath is honest that he is looking at new ideas. Something he doesn’t wish to discuss in any detail.

But one thing is clear: He will always be ‘emotionally’ attached to Air Deccan.

CRUISING HEIGHTS November 2007

27

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IN HIS OWN EMPIRE: Vijay Mallya doing the rounds during a Kingfisher flight

icopter business by exploring the possibility of forming a JV with French aviation company SCE to explore business in mining, geophysical survey and aerial mapping, etc. As the plot began to unfold, Mallya also began to articulate his views.

In an interview to a news agency in London recently, Mallya said it is a question of time before Deccan becomes a subsidiary company and UB may further increase its stake in Deccan by buying shares in smaller lots that will not require the company to once again make a public offer to purchase more shares. As for his own Kingfisher, he said it should close financial year 2008-09 with profits and only at that time will he think of selling equity or an IPO. But before all that, Deccan will have become a subsidiary with Mallya’s UB holding 51 per cent stake. All that will happen before mid-2008 when Mallya’s big birds, the A 330s and A 340s begin flying overseas riding on the rights of Deccan.

For starters, Mallya has already begun repainting Deccan planes in red with the UB emblem along with the flying horse on the nose cone of the Deccan’s aircraft — both A 320 and ATRs — and the Kingfisher bird prominently on the tail of the aircraft. The upper part of the fuselage that is along and above the windows is painted prominently “Simplifly Deccan” with the first word in a hide mode and ‘Deccan’ in bold letters.

Mallya’s own survey showed that Deccan was a solid and prominent brand and he could ride on it, which he is now doing both figuratively and legally in the context of his planned international

28

CRUISING HEIGHTS November 2007

flights. Besides, he has also asked Deccan to abandon its ‘No Refund Policy’ and substituted it by allowing passengers to roll over their ticket for 180 days from the date of booking to fly Deccan anywhere during that time. Therefore, the ticket does not get wasted and for a small payment, the customer can hold on to his ticket and fly later; Deccan will now allow tele-check in and thus its customers can get the seat they want. This will be available to all passengers as Deccan has only a uniform economy class. Passengers are now given a free bottle of drinking water and if they wish they can get even two, with Mallya picking up the tab (after all, its Kingfisher drinking water!).

Soon Deccan will also introduce the option of serving hot meals with a varied menu as against the present policy of selling only sandwiches and coffee/tea. Yes, perhaps hot meals will be sold but at least a choice will be made available at the insistence of Mallya. Already the outsourced staff at Deccan counters in airports have been replaced by Deccan’s own staff. Many other changes have been planned. Obviously, all this will cost money and is bound to upset the low cost model Gopi had introduced. To compensate, fares have already been hiked once and they could be hiked again, over and above the fuel price hike, which has led to an increase in fares.

Ravi Nedungadi announced at a recent meeting of CFOs that Kingfisher would need at least Rs 1,200 crore to tide over some immediate expenses including to welcome and settle the big birds for their planned overseas flights. Ravi feels the combined strength of Kingfisher and Deccan would help the combined entity to earn a total revenue of Rs 20,000 crore by 2011. Mallya, in line with this, has already sent a message across the two companies that both the airlines should focus clearly on the defined objective rather than competing with each other.

Mallya paid for Deccan because of its vast domestic network and its international flying rights that will become due in early 2008. For that to happen, he needs to have complete control over Deccan that he is now moving towards, with the entry on the board, of his two confidants.

It is obvious that there is no consultation and Gopi would have never done all the things that Mallya has done. Deccan, in fact, has lost its original moorings. The differences in views are indeed stark.

While Mallya often debunked the concept of a Low Cost Carrier and instead preferred to call it Low Fare Airline, Gopi maintained that you couldn’t have ‘Low Fare’ unless you had ‘Low Costs’. As for

Low-cost airline Outsourced airport staff Limited menu Paid water Blue and yellow crew uniform Barehand logo Cotton upholstery Normal coaches No refund for cancellation

Value-based low cost carrier Deccan employees Enhanced menu (soon hot meals to be provided onboard) Complimentary water Red and white crew uniform Kingfisher (bird) logo Leather upholstery Luxurious coaches Customer-friendly cancellation policy has been rolled out recently

Mallya we don’t know how to describe his airline — whether it is really excellent. On the face of it, it is certainly a high cost airline but the fares (economy class) suggest it may be hybrid. As a Kingfisher official put it, the airlines could be in profits if fares are tweaked to rake in more revenue.

Deccan’s average yield per seat was Rs 2,600 and Kingfisher’s was Rs 4,400. If Deccan’s average yield can be increased to Rs 3,200 then the two can be in profits.

One may well ask why Mallya is not taking over Deccan fully and merging it with his own baby, Kingfisher. He is no fool given his desire to hit Jet and Naresh Goyal where it hurts most. Mallya perceives Jet Airways as not just competition but also most responsible for aborting his dreams of flying overseas on the Kingfisher brand. In the process, he was forced to buy Deccan just to fly abroad.

All this has made it expensive for Mallya.

But to answer the main question, his men say why did Jet not merge Sahara when it took over the latter? Simple: rights and slots.

No airline will like to lose additional foreign rights. For instance, Jet Airways has already got foreign rights and it is utilizing each one of them. Its subsidiary Jet Lite (erstwhile Air Sahara) has also applied for rights to fly overseas and cannot be denied them as it had those rights in its earlier avatar. The new rights Jet Lite has applied for is to the Gulf, which is being dereserved from Jan-

uary 2008. For Mallya, the journey will be the other way – first on the back of its new acquisition, Deccan, and later on its own strength when Kingfisher completes five years and is itself entitled to foreign rights.

How can Gopi figure in any of these plans that has nothing to do with him or the common man he had got prominently painted on Deccan planes? With the repainting of Deccan aircraft as per Mallya’s wishes in red and complete disappearance of Cartoonist Laxman’s common man, including the advertisements like that of NDTV, Sun Microsystems, etc., it is only a question of time before Gopi also vanishes from the scene.

Mallya wants to rewrite aviation history by getting into every activity that is even remotely connected with the business of flying. He wants to be in flying — short, medium and long-haul — both domestic and overseas, MRO, Ground Handling, Pilot and Cabin Crew Training, aircraft manufacturing — on the back of the US firm Epic Aircraft, which he took over for Rs 460 crores and set up with the help of Airbus Industrie — an assembly plant, which will be a new one in India, etc. Normally, pure airlines do not get into all these. You either go in for horizontal integration or vertical integration. The new story being written by Mallya has even diagonal integration. Good luck to

Mallya and bye-bye to Gopi.

CRUISING HEIGHTS November 2007

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IN HIS OWN EMPIRE: Vijay Mallya doing the rounds during a Kingfisher flight

icopter business by exploring the possibility of forming a JV with French aviation company SCE to explore business in mining, geophysical survey and aerial mapping, etc. As the plot began to unfold, Mallya also began to articulate his views.

In an interview to a news agency in London recently, Mallya said it is a question of time before Deccan becomes a subsidiary company and UB may further increase its stake in Deccan by buying shares in smaller lots that will not require the company to once again make a public offer to purchase more shares. As for his own Kingfisher, he said it should close financial year 2008-09 with profits and only at that time will he think of selling equity or an IPO. But before all that, Deccan will have become a subsidiary with Mallya’s UB holding 51 per cent stake. All that will happen before mid-2008 when Mallya’s big birds, the A 330s and A 340s begin flying overseas riding on the rights of Deccan.

For starters, Mallya has already begun repainting Deccan planes in red with the UB emblem along with the flying horse on the nose cone of the Deccan’s aircraft — both A 320 and ATRs — and the Kingfisher bird prominently on the tail of the aircraft. The upper part of the fuselage that is along and above the windows is painted prominently “Simplifly Deccan” with the first word in a hide mode and ‘Deccan’ in bold letters.

Mallya’s own survey showed that Deccan was a solid and prominent brand and he could ride on it, which he is now doing both figuratively and legally in the context of his planned international

28

CRUISING HEIGHTS November 2007

flights. Besides, he has also asked Deccan to abandon its ‘No Refund Policy’ and substituted it by allowing passengers to roll over their ticket for 180 days from the date of booking to fly Deccan anywhere during that time. Therefore, the ticket does not get wasted and for a small payment, the customer can hold on to his ticket and fly later; Deccan will now allow tele-check in and thus its customers can get the seat they want. This will be available to all passengers as Deccan has only a uniform economy class. Passengers are now given a free bottle of drinking water and if they wish they can get even two, with Mallya picking up the tab (after all, its Kingfisher drinking water!).

Soon Deccan will also introduce the option of serving hot meals with a varied menu as against the present policy of selling only sandwiches and coffee/tea. Yes, perhaps hot meals will be sold but at least a choice will be made available at the insistence of Mallya. Already the outsourced staff at Deccan counters in airports have been replaced by Deccan’s own staff. Many other changes have been planned. Obviously, all this will cost money and is bound to upset the low cost model Gopi had introduced. To compensate, fares have already been hiked once and they could be hiked again, over and above the fuel price hike, which has led to an increase in fares.

Ravi Nedungadi announced at a recent meeting of CFOs that Kingfisher would need at least Rs 1,200 crore to tide over some immediate expenses including to welcome and settle the big birds for their planned overseas flights. Ravi feels the combined strength of Kingfisher and Deccan would help the combined entity to earn a total revenue of Rs 20,000 crore by 2011. Mallya, in line with this, has already sent a message across the two companies that both the airlines should focus clearly on the defined objective rather than competing with each other.

Mallya paid for Deccan because of its vast domestic network and its international flying rights that will become due in early 2008. For that to happen, he needs to have complete control over Deccan that he is now moving towards, with the entry on the board, of his two confidants.

It is obvious that there is no consultation and Gopi would have never done all the things that Mallya has done. Deccan, in fact, has lost its original moorings. The differences in views are indeed stark.

While Mallya often debunked the concept of a Low Cost Carrier and instead preferred to call it Low Fare Airline, Gopi maintained that you couldn’t have ‘Low Fare’ unless you had ‘Low Costs’. As for

Low-cost airline Outsourced airport staff Limited menu Paid water Blue and yellow crew uniform Barehand logo Cotton upholstery Normal coaches No refund for cancellation

Value-based low cost carrier Deccan employees Enhanced menu (soon hot meals to be provided onboard) Complimentary water Red and white crew uniform Kingfisher (bird) logo Leather upholstery Luxurious coaches Customer-friendly cancellation policy has been rolled out recently

Mallya we don’t know how to describe his airline — whether it is really excellent. On the face of it, it is certainly a high cost airline but the fares (economy class) suggest it may be hybrid. As a Kingfisher official put it, the airlines could be in profits if fares are tweaked to rake in more revenue.

Deccan’s average yield per seat was Rs 2,600 and Kingfisher’s was Rs 4,400. If Deccan’s average yield can be increased to Rs 3,200 then the two can be in profits.

One may well ask why Mallya is not taking over Deccan fully and merging it with his own baby, Kingfisher. He is no fool given his desire to hit Jet and Naresh Goyal where it hurts most. Mallya perceives Jet Airways as not just competition but also most responsible for aborting his dreams of flying overseas on the Kingfisher brand. In the process, he was forced to buy Deccan just to fly abroad.

All this has made it expensive for Mallya.

But to answer the main question, his men say why did Jet not merge Sahara when it took over the latter? Simple: rights and slots.

No airline will like to lose additional foreign rights. For instance, Jet Airways has already got foreign rights and it is utilizing each one of them. Its subsidiary Jet Lite (erstwhile Air Sahara) has also applied for rights to fly overseas and cannot be denied them as it had those rights in its earlier avatar. The new rights Jet Lite has applied for is to the Gulf, which is being dereserved from Jan-

uary 2008. For Mallya, the journey will be the other way – first on the back of its new acquisition, Deccan, and later on its own strength when Kingfisher completes five years and is itself entitled to foreign rights.

How can Gopi figure in any of these plans that has nothing to do with him or the common man he had got prominently painted on Deccan planes? With the repainting of Deccan aircraft as per Mallya’s wishes in red and complete disappearance of Cartoonist Laxman’s common man, including the advertisements like that of NDTV, Sun Microsystems, etc., it is only a question of time before Gopi also vanishes from the scene.

Mallya wants to rewrite aviation history by getting into every activity that is even remotely connected with the business of flying. He wants to be in flying — short, medium and long-haul — both domestic and overseas, MRO, Ground Handling, Pilot and Cabin Crew Training, aircraft manufacturing — on the back of the US firm Epic Aircraft, which he took over for Rs 460 crores and set up with the help of Airbus Industrie — an assembly plant, which will be a new one in India, etc. Normally, pure airlines do not get into all these. You either go in for horizontal integration or vertical integration. The new story being written by Mallya has even diagonal integration. Good luck to

Mallya and bye-bye to Gopi.

CRUISING HEIGHTS November 2007

29

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Page 2

FOCUS

Photos: H.C. Tiwari

(Clockwise from top left): Singapore Airlines A380 speeds down the runway as the control tower of Changi International Airport is seen in the background; Passengers on the inaugural flight; Check-in counter at Changi; Media gather as the SIA inaugural passenger flight from Singapore arrives at Sydney; Australians Tony and Julie Elwood share a romantic moment on the double bed in the exclusive suite aboard the A380 from Singapore to Sydney; Members of the press file their stories aboard the flight; Airport staff wave from under an aerobridge as they watch the A380 taxi for its takeoff; and, an unidentified woman asks Capt.

Robert Ting for his autograph on board the Airbus A380

With A380 in the air

Airbus gets going Tall as a seven-story building and weighing 276.8 tons, the A380 is impressive both in the air and on the ground. A showpiece from Airbus, the airliner is rewriting history. The first commercial flight of the Superjumbo was a precursor to the inauguration of Airbus’ engineering centre — the first by any aircraft manufacturer — in the country and the first-ever visit abroad

by Airbus CEO Tom Enders.

30

CRUISING HEIGHTS November 2007

T

HE HYPE and the hoopla connected to the Airbus 380 seem to have just begun.

Now that the “big fella” — as it was dubbed by Sydney’s air traffic controllers when it made its first flight from Singapore to the Australian city — has started commercial operations, the travelling public could expect a lot more from airliners and their manufacturers.

The $300-million super jet could well turn out to be the new face of airlines around the world. Handed over to Singapore Airlines (SIA) a few weeks ago after a two-year delay, Airbus is committed to delivering 13 planes in 2008, 25 in 2009 and 45 in 2010 to the airline.

Whatever the delivery schedules, a ride on the jet will certainly not be for budget travellers. Reports suggest that a return ticket from Sydney to London on a deluxe seat would cost around 10 times the economy fare. (The tickets

The $300-million super jet could turn out to be the new face of airlines. Handed over to Singapore Airlines recently after a two-year delay, Airbus is committed to delivering 13 planes in 2008 CRUISING HEIGHTS November 2007

for the first commercial flight by SIA were, however, auctioned for charity on eBay. Most economy-class tickets sold for an average of $1,000 and the cheapest went for $560, the airlines said. The auction raised about $1.3 million.)

Watched by a whole lot of airport staff and aviation enthusiasts, the SIA A380 swooped down effortlessly on the Sydney runway. The ride was an experience. Said Michael Sim to Reuters television, “It was great being a part of history.” He was one of the 471 passengers of SIA Flight 380 which took off seven-and-a-half hours earlier from Sydney International Airport for Changi. He also clapped and cheered with all the others when the plane landed at Changi International Airport. Another passenger, Thomas Lee of California, was quoted by the International Herald Tribune: “The flight was spectacular.

I’m thrilled beyond words actually. Just extremely excited. On a scale of 1 to 10, I’d put it at 12.” He should know

31

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2:27 PM

Page 2

FOCUS

Photos: H.C. Tiwari

(Clockwise from top left): Singapore Airlines A380 speeds down the runway as the control tower of Changi International Airport is seen in the background; Passengers on the inaugural flight; Check-in counter at Changi; Media gather as the SIA inaugural passenger flight from Singapore arrives at Sydney; Australians Tony and Julie Elwood share a romantic moment on the double bed in the exclusive suite aboard the A380 from Singapore to Sydney; Members of the press file their stories aboard the flight; Airport staff wave from under an aerobridge as they watch the A380 taxi for its takeoff; and, an unidentified woman asks Capt.

Robert Ting for his autograph on board the Airbus A380

With A380 in the air

Airbus gets going Tall as a seven-story building and weighing 276.8 tons, the A380 is impressive both in the air and on the ground. A showpiece from Airbus, the airliner is rewriting history. The first commercial flight of the Superjumbo was a precursor to the inauguration of Airbus’ engineering centre — the first by any aircraft manufacturer — in the country and the first-ever visit abroad

by Airbus CEO Tom Enders.

30

CRUISING HEIGHTS November 2007

T

HE HYPE and the hoopla connected to the Airbus 380 seem to have just begun.

Now that the “big fella” — as it was dubbed by Sydney’s air traffic controllers when it made its first flight from Singapore to the Australian city — has started commercial operations, the travelling public could expect a lot more from airliners and their manufacturers.

The $300-million super jet could well turn out to be the new face of airlines around the world. Handed over to Singapore Airlines (SIA) a few weeks ago after a two-year delay, Airbus is committed to delivering 13 planes in 2008, 25 in 2009 and 45 in 2010 to the airline.

Whatever the delivery schedules, a ride on the jet will certainly not be for budget travellers. Reports suggest that a return ticket from Sydney to London on a deluxe seat would cost around 10 times the economy fare. (The tickets

The $300-million super jet could turn out to be the new face of airlines. Handed over to Singapore Airlines recently after a two-year delay, Airbus is committed to delivering 13 planes in 2008 CRUISING HEIGHTS November 2007

for the first commercial flight by SIA were, however, auctioned for charity on eBay. Most economy-class tickets sold for an average of $1,000 and the cheapest went for $560, the airlines said. The auction raised about $1.3 million.)

Watched by a whole lot of airport staff and aviation enthusiasts, the SIA A380 swooped down effortlessly on the Sydney runway. The ride was an experience. Said Michael Sim to Reuters television, “It was great being a part of history.” He was one of the 471 passengers of SIA Flight 380 which took off seven-and-a-half hours earlier from Sydney International Airport for Changi. He also clapped and cheered with all the others when the plane landed at Changi International Airport. Another passenger, Thomas Lee of California, was quoted by the International Herald Tribune: “The flight was spectacular.

I’m thrilled beyond words actually. Just extremely excited. On a scale of 1 to 10, I’d put it at 12.” He should know

31

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2:27 PM

Page 4

FOCUS

‘We are counting on our loyal customers’

T

homas Enders was appointed Airbus President and Chief Executive Officer in August 2007. Previously, he was Chief Executive Officer of EADS. In the three months that he has been at the helm, 49-year-old Enders has been attempting to get things back on course.

Talking to journalists at the A380 handing-over ceremony in Tolouse, Enders said he “does not feel” there will be more delays to the programme, adding that “we have always said this would be a four-year recovery programme — the first delivery is right on target. Nobody believes delivering one aircraft does it all — this programme is our utmost priority.” But he is a pragmatist and said that accelerating the A380 production will be “no walk in the park”.

The planemaker is committed to delivering 13 planes next year, 25 in 2009 and 45 in 2010. “We have every confidence we can deliver, but what is guaranteed in life?” he said at that launch press conference. “I wanted to dispel the belief that everything else is a walk in the park, a piece of

cake. There is hard work ahead of us.” In India in late October on a whistlestop tour, Enders had some specfic answers: Why the A380 for India?

This is a high capacity aircraft with tremendous growth future. With the increasing number of international routes that Indian carriers like Kingfisher are planning to go, I think it is an ideal aircraft for India and the Asian market in general.

Air India will be getting the 777s and 787s through 2011.

By selling A380s to AI you could well be foreclosing sale of the A350 XWB? I don't think so. The growth in India is supposed to go further! By 2014 we should have a very good aircraft to offer. The response to the first year is already covered, probably around 200 aircraft. The answer really is that there is space for both types of aircraft. We are counting on our loyal customers in India.

because as an aviation enthusiast, he had been a passenger on the world’s first Boeing commercial flight, Pan Am’s “Clipper Victor,” from New York to London in 1970. Yet another passenger Julian Hayward, who had paid $1,00,380 for two Singapore Suites on the flight was ecstatic. He said, “It was like a rocking party at 40000 feet. We gave it top marks.”

The hoopla was for the luxurious

cabins, named the Singapore Suites — something lovebirds would revel in. It has got all the bells and whistles, and that includes a double bed. Situated on the lower deck, these premium cabins are partitioned-off areas with an extra-wide seat (around three feet) that becomes a fully-flat bed, another seat for visitors and a 23-inch TV. The partitions of the Suites can be dismantled to create two double cabins, each with their own double beds. However, the partitions do not reach up to the roof — for Airbus and Boeing have been competing with each other for the big plane market. safety reasons — The all-new Airbus A380 entered service with Singapore Airlines and will carry 471 prompting some firstpassengers, although it's certified to carry nearly 900 passengers and crew. Instead of timers to comment that developing a new plane of that size, Boeing plans to revamp its 747, which first entered lovers on the double service in 1970. beds would have to be AIRBUS A380 BOEING 747-400 BOEING 747-8 extra careful.

Typical However, it is the Typical seating, seating, three three class class 525 416 467 business class that is Range with max. passengers 8,200 7,260 8,000 (in nautical miles) different. The seat is wider than those in other Cruise 0.85 mach 0.85 mach 0.85 mach Cruisespeed speed airlines and, in fact, Cabin width 19 ft. 5 in (upper) some journalists even 21 ft. 7 in. (main) 20 ft.

20 ft. 1in. pointed out that they Max. takeoff weight 1,235000lbs.

875000lbs.

970000lbs.

Max. takeoff weight were actually too wide.

Max. fuel capacity 81,890gal.

57,285 gal.

64,225 gal These seats too, become flat beds with a mattress.

In addition, there is a 15-inch TV. The economy class, however, does not have any such features. *Singapore Airlines has configured its A380 to seat 471 Instead, there are passengers and its 747-400 to improvements.

The seat seat 372-375. pitch (the distance between your seat and

Super Jumbo Vs Jumbo

32

CRUISING HEIGHTS November 2007

the one in front) is a standard 32 inches but it is different because the seat backs are indented at the bottom giving it a feel that it is wider and with plenty of room for those with long legs. When you recline the backrest, the bottom of the seat slides forward, creating a more comfortable snoosing position and opening yet more space out for the passenger behind. There are power and USB ports for your laptop; a smart seatback reading light, which avoids disturbing your neighbours; and the seat is nearly an inch more than a standard 747 economy seat.

So much for the luxury and the interiors. Often referred to as the ‘Gentle Green Giant’ because of its low noise and low fuel consumption, the A380 could well turn out to be any airline’s delight.

It burns about 17 per cent less fuel, on a seat-km basis, than other similar aircraft. Its carbon dioxide emissions per passenger are the lowest of any aircraft. Using the latest innovations in aerodynamics, it reduces drag to a minimum and further improves fuel efficiency.

Its state-of-the-art technology, new design, airframe construction and powerful Rolls Royce Trent 900 engines make the A380 the quietest large passenger jetliner ever built. It produces half the noise energy at takeoff, reducing the area exposed to equivalent noise levels around the runway by half.

So, when do we see it in Indian airports? Not very soon. The country needs to improve its aviation infrastructure or else the A380 or the Boeing 787 Dreamliners would just fly by.

According to Huang Cheng Eng, Executive Vice-President (Marketing and Regions), Singapore Airlines, SIA was seriously thinking about whether to fly the superjumbo to India’s metro airports simply because the infrastructure was not upto it. “One day we would like to fly to India but we need to have the airports ready for aircraft like A380,” said Huang Cheng Eng. For double-decker aircraft like the A380, the runways as well as the passenger handling capacities of the airports in the country are limited. “One area of worry in

A partnership for the future

UPBEAT ABOUT INDIA: Airbus top brass (left-right) Kiran Rao, Tom Enders and John Leahy

T

he Airbus Engineering and Training Centre at Bangalore will be the biggest such facility outside its base in Toulouse, France. Although its engineering centre in Russia and China have been operational for several years and Airbus is going in for assembling its A320 in China, it believes that it is this new baby at the IT headquarters of the country that will really carry the torch forward.

The centre, formally inaugurated by Airbus President and Chief Executive Officer Thomas Enders, will be equipped with seven simulators and cater to 2000 aviation engineers by 2010, besides addressing the shortage of trained pilots in the country. Six simulators will be based on the A320 platform, and another on the A330 platform upgradable to A340. The training centre will eventually be shifted to a new location close to the Bangalore International Airport in Devanahalli.

Acknowledging India’s emergence as a strong aviation player, Enders cited Airbus’ partnership with Hindustan Aeronautics Limited (HAL), which now supplies about 50 per cent of A320 doors, with backlog of about 5000 more doors.

“The partnerships are now moving from parts manufacturing to information technology, engineering, information technology enabled services and research and development, besides the traditional sub assemblies,” he said. The company had selected five Bangalore-based private firms to work directly on Airbus projects as tier-1 suppliers.

While 100 engineers from Bangalore

CRUISING HEIGHTS November 2007

worked on the A380 project, over 1000 were working on various other Airbus programmes, said another top Airbus official.

The centre that has 30 employees will have a staff of 250 by 2010, when it will have an integrated technology park in place in the southern city, said Kiran Rao, president of Airbus India. Its investment of $600 million into various projects in India, including manufacture and design as a part of the offset for an order by Indian Airlines would generate revenues of $1 billion, Rao said.

In China, Airbus and China Aviation Industry Corporation II (AVIC II) have set up an engineering centre in the form of a joint venture in Beijing. The facility will in particular perform aircraft specific design work for the A350 programme. In Russia, the engineering centre of Airbus ECAR— has been created jointly with the Kaskol Group. This is Airbus’ first engineering facility in Europe outside its home countries. The primary function of ECAR is to promote cross-transfer of expertise, as well as to co-ordinate and enlarge the scope of activities, which Airbus is developing with Russian aerospace companies. ECAR works with the most modern Airbus technologies and standards, participating in both existing and future programmes. It specialises in disciplines such as fuselage structure, stress and installation system. In addition, ECAR co-ordinates and facilitates Airbus work packages amongst Russian aircraft design centres.

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Page 4

FOCUS

‘We are counting on our loyal customers’

T

homas Enders was appointed Airbus President and Chief Executive Officer in August 2007. Previously, he was Chief Executive Officer of EADS. In the three months that he has been at the helm, 49-year-old Enders has been attempting to get things back on course.

Talking to journalists at the A380 handing-over ceremony in Tolouse, Enders said he “does not feel” there will be more delays to the programme, adding that “we have always said this would be a four-year recovery programme — the first delivery is right on target. Nobody believes delivering one aircraft does it all — this programme is our utmost priority.” But he is a pragmatist and said that accelerating the A380 production will be “no walk in the park”.

The planemaker is committed to delivering 13 planes next year, 25 in 2009 and 45 in 2010. “We have every confidence we can deliver, but what is guaranteed in life?” he said at that launch press conference. “I wanted to dispel the belief that everything else is a walk in the park, a piece of

cake. There is hard work ahead of us.” In India in late October on a whistlestop tour, Enders had some specfic answers: Why the A380 for India?

This is a high capacity aircraft with tremendous growth future. With the increasing number of international routes that Indian carriers like Kingfisher are planning to go, I think it is an ideal aircraft for India and the Asian market in general.

Air India will be getting the 777s and 787s through 2011.

By selling A380s to AI you could well be foreclosing sale of the A350 XWB? I don't think so. The growth in India is supposed to go further! By 2014 we should have a very good aircraft to offer. The response to the first year is already covered, probably around 200 aircraft. The answer really is that there is space for both types of aircraft. We are counting on our loyal customers in India.

because as an aviation enthusiast, he had been a passenger on the world’s first Boeing commercial flight, Pan Am’s “Clipper Victor,” from New York to London in 1970. Yet another passenger Julian Hayward, who had paid $1,00,380 for two Singapore Suites on the flight was ecstatic. He said, “It was like a rocking party at 40000 feet. We gave it top marks.”

The hoopla was for the luxurious

cabins, named the Singapore Suites — something lovebirds would revel in. It has got all the bells and whistles, and that includes a double bed. Situated on the lower deck, these premium cabins are partitioned-off areas with an extra-wide seat (around three feet) that becomes a fully-flat bed, another seat for visitors and a 23-inch TV. The partitions of the Suites can be dismantled to create two double cabins, each with their own double beds. However, the partitions do not reach up to the roof — for Airbus and Boeing have been competing with each other for the big plane market. safety reasons — The all-new Airbus A380 entered service with Singapore Airlines and will carry 471 prompting some firstpassengers, although it's certified to carry nearly 900 passengers and crew. Instead of timers to comment that developing a new plane of that size, Boeing plans to revamp its 747, which first entered lovers on the double service in 1970. beds would have to be AIRBUS A380 BOEING 747-400 BOEING 747-8 extra careful.

Typical However, it is the Typical seating, seating, three three class class 525 416 467 business class that is Range with max. passengers 8,200 7,260 8,000 (in nautical miles) different. The seat is wider than those in other Cruise 0.85 mach 0.85 mach 0.85 mach Cruisespeed speed airlines and, in fact, Cabin width 19 ft. 5 in (upper) some journalists even 21 ft. 7 in. (main) 20 ft.

20 ft. 1in. pointed out that they Max. takeoff weight 1,235000lbs.

875000lbs.

970000lbs.

Max. takeoff weight were actually too wide.

Max. fuel capacity 81,890gal.

57,285 gal.

64,225 gal These seats too, become flat beds with a mattress.

In addition, there is a 15-inch TV. The economy class, however, does not have any such features. *Singapore Airlines has configured its A380 to seat 471 Instead, there are passengers and its 747-400 to improvements.

The seat seat 372-375. pitch (the distance between your seat and

Super Jumbo Vs Jumbo

32

CRUISING HEIGHTS November 2007

the one in front) is a standard 32 inches but it is different because the seat backs are indented at the bottom giving it a feel that it is wider and with plenty of room for those with long legs. When you recline the backrest, the bottom of the seat slides forward, creating a more comfortable snoosing position and opening yet more space out for the passenger behind. There are power and USB ports for your laptop; a smart seatback reading light, which avoids disturbing your neighbours; and the seat is nearly an inch more than a standard 747 economy seat.

So much for the luxury and the interiors. Often referred to as the ‘Gentle Green Giant’ because of its low noise and low fuel consumption, the A380 could well turn out to be any airline’s delight.

It burns about 17 per cent less fuel, on a seat-km basis, than other similar aircraft. Its carbon dioxide emissions per passenger are the lowest of any aircraft. Using the latest innovations in aerodynamics, it reduces drag to a minimum and further improves fuel efficiency.

Its state-of-the-art technology, new design, airframe construction and powerful Rolls Royce Trent 900 engines make the A380 the quietest large passenger jetliner ever built. It produces half the noise energy at takeoff, reducing the area exposed to equivalent noise levels around the runway by half.

So, when do we see it in Indian airports? Not very soon. The country needs to improve its aviation infrastructure or else the A380 or the Boeing 787 Dreamliners would just fly by.

According to Huang Cheng Eng, Executive Vice-President (Marketing and Regions), Singapore Airlines, SIA was seriously thinking about whether to fly the superjumbo to India’s metro airports simply because the infrastructure was not upto it. “One day we would like to fly to India but we need to have the airports ready for aircraft like A380,” said Huang Cheng Eng. For double-decker aircraft like the A380, the runways as well as the passenger handling capacities of the airports in the country are limited. “One area of worry in

A partnership for the future

UPBEAT ABOUT INDIA: Airbus top brass (left-right) Kiran Rao, Tom Enders and John Leahy

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he Airbus Engineering and Training Centre at Bangalore will be the biggest such facility outside its base in Toulouse, France. Although its engineering centre in Russia and China have been operational for several years and Airbus is going in for assembling its A320 in China, it believes that it is this new baby at the IT headquarters of the country that will really carry the torch forward.

The centre, formally inaugurated by Airbus President and Chief Executive Officer Thomas Enders, will be equipped with seven simulators and cater to 2000 aviation engineers by 2010, besides addressing the shortage of trained pilots in the country. Six simulators will be based on the A320 platform, and another on the A330 platform upgradable to A340. The training centre will eventually be shifted to a new location close to the Bangalore International Airport in Devanahalli.

Acknowledging India’s emergence as a strong aviation player, Enders cited Airbus’ partnership with Hindustan Aeronautics Limited (HAL), which now supplies about 50 per cent of A320 doors, with backlog of about 5000 more doors.

“The partnerships are now moving from parts manufacturing to information technology, engineering, information technology enabled services and research and development, besides the traditional sub assemblies,” he said. The company had selected five Bangalore-based private firms to work directly on Airbus projects as tier-1 suppliers.

While 100 engineers from Bangalore

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worked on the A380 project, over 1000 were working on various other Airbus programmes, said another top Airbus official.

The centre that has 30 employees will have a staff of 250 by 2010, when it will have an integrated technology park in place in the southern city, said Kiran Rao, president of Airbus India. Its investment of $600 million into various projects in India, including manufacture and design as a part of the offset for an order by Indian Airlines would generate revenues of $1 billion, Rao said.

In China, Airbus and China Aviation Industry Corporation II (AVIC II) have set up an engineering centre in the form of a joint venture in Beijing. The facility will in particular perform aircraft specific design work for the A350 programme. In Russia, the engineering centre of Airbus ECAR— has been created jointly with the Kaskol Group. This is Airbus’ first engineering facility in Europe outside its home countries. The primary function of ECAR is to promote cross-transfer of expertise, as well as to co-ordinate and enlarge the scope of activities, which Airbus is developing with Russian aerospace companies. ECAR works with the most modern Airbus technologies and standards, participating in both existing and future programmes. It specialises in disciplines such as fuselage structure, stress and installation system. In addition, ECAR co-ordinates and facilitates Airbus work packages amongst Russian aircraft design centres.

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FOCUS

‘Some things in life are worth waiting for’

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irbus Chief Operating Officer (Commercial) John Leahy would be a prime choice as a talk show candidate if he wasn't selling airplanes. He is smooth as scotch and has an answer to every question. In interview after interview he has plugged the A380. In one memorable quote he said: “It will be a bit like going to a relatively noisy office compared to a quiet restaurant for lunch that’s the difference in noise level between the 747 and this aircraft.”

Surprisingly even before the full commercial operations begin, Leahy is talking of stretching the A380.

“Imagine if you put in a 100 seat stretch, it looks nicely balanced,” he told reporters in Tolouse who had gathered for the handing over ceremony of the first aircraft to Singapore Airlines. The 380 uses 2.9 litres of fuel per hundred passenger kilometres compared with the aviation industry average of about five litres per one hundred passenger kilometres. But that figure is based on having about 470 passengers aboard the plane. “At 853, it would be unbelievably low in terms of fuel economy,” waxed Leahy.

In Bangalore, as part of Tom Enders whislestop tour of India, Leahy answered a few questions.

You have made a point about 853 people flying in a single class configuration. Can Air India fly that many from Delhi or Mumbai to say New York direct?

Not with 853 to NY City. With that many you would use it for more regional flights. On a one-class configuration, you might go to London or Europe with it. You can go to New York with 550 passengers. We are also looking at flights from Dubai to Los Angles and San Fransisco.

Is Emirates planning such a flight?

No, we only have estimates.

What is the status of your discussion with Air India?

We are running steady. We are showing them the capabilities of the airplane and they are looking at their networking and where they might use it or not use it. We are not negotiating price or anything of that sort but looking at how many they need.

You have repeatedly said that 2011-12 is the earliest you can offer the A380 to Air India. That's around the time AI will be getting its Dreamliner 787. Aren't you foreclosing the options of the 350EWB? After all how many aircraft will AI order now?

No. No. No! I think the 350 will work extremely well for Air India. It is an ideal airplane. But you have to wait for it because you will get the Dreamliner before it. But some things in life are worth waiting for.

A380 ORDERS

Emirates

Captain Ting talking to passengers during the inaugural flight of the SIA A380

India is the holding area of the passengers and also the turn-around time, which cannot be more than 90 minutes for healthy economics,” Eng said. SIA, which has launched daily services of the A380 to Sydney, has considered only the airports with double-decker aerobridge boarding facilities for its next generation long-haul air travel.

“Delay in boarding and embarking time is one of the major concerns of any operator. We are looking at the airports with only the upper-deck availability for our flights, at least in the initial phases,” he said.

Even so, Airbus, which already has five A380 orders from Kingfisher,

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Qantas Airways 20 Singapore Airlines 19 Lufthansa 15 Air France 12 ILFC 10 Malaysia Airlines 6 Thai Airways 6 Virgin Atlantic 6 China Southern 5 Kingfisher Airlines 5 Korean Air 5 Qatar Airways 5 Etihad 4 Total: 165

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hopes to receive more orders from Air India. According to Air India sources, it could buy 10 to 12 A380 aircraft. If Air India orders in the next few months, they could probably take delivery by 2011. In fact, Chief Operating Officer (Commercial) John Leahy said: “The next one who is going to make a decision is probably Air India. We’ve been in discussions with them about the airplane… I would like to believe that we should have new orders by the middle of next year…If orders are placed within the next couple of months, Airbus will be able to start delivery of aircraft by 2011-12.”

If it does, what kind of airplane would the carrier go for? To begin with, there could be a stretch version, as Leahy put it. At the handing over ceremony of the A380 in Toulouse to Singapore Airlines, Leahy said: “Imagine if you put in a 100 seat stretch, it looks nicely balanced. It’s really up to the airlines themselves. Some are pushing us to do it sooner. Others say, no, this is the right size.”

Leahy went on to point out that the A380 could be a good buy for low cost airlines intent on saving fuel and ferrying a whopping 853 passengers at a time. “At 853, it would be unbelievably low in terms of fuel economy,” Leahy said.

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CARGO

Cargo dwell time:

YES, NO, MAYBE? In its efforts to improve the efficiency of our international airports and provide an impetus to the burgeoning air cargo industry, the Ministry of Civil Aviation reduced the “dwell time” at airports from five days to three days from October 1. Since then, there have been protests from the air cargo trade. Tirthankar Ghosh looks at why the industry is up in arms.

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BATTLE royale between freight forwarders and the airport administrators in most metros of the country is on the cards. The issue: cargo dwell time at airports.

Beginning this October, the cargo dwell time at Delhi and other metro airports in the country has been reduced effectively from five days to three days.

The move follows a notification from the Ministry of Civil Aviation restricting the free dwell time of cargo at airports. The dwell time — the free time allowed for cargo to be parked in any of the metro airports free of any charges — that has been reduced, has hurt importers who maintain that the cargo clearing processes at most of the airports were beyond their control.

According to reports from the Airports Authority of India (AAI), the average time taken to clear a shipment differs from airport to airport. In Chennai, for example, the average is 129.66 hours or 5.4 days while in Delhi it is about 160 hours or about 6.6 days. Compare this to the airports in the Gulf — Dubai, for example, is much busier than our busiest Mumbai or Delhi — which takes only seven hours to clear a shipment. However, according to Customs authorities, there are some consignments — connected to the IT or Auto industry — which are cleared within a day of their arrival.

These are generally exceptions and not the rule.

To understand the working of the airport’s cargo clearance procedures and why the reduction in dwell time has seen so many protests, one needs to look at the capital’s international airport. At Delhi, for example, importers complained that on any normal working day, it took about eight hours for an airline to hand over the cargo to ground handling agents. The agents in turn take the cargo to the Air-

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READY FOR THE WORLD: A freighter at Hongkong airport. Once all the infrastructure obstacles are resolved, Indian airports too would be as busy as any around the world

CRUISING HEIGHTS November 2007

ports Authority of India (the custodian of cargo at the airport), appointed by the Customs Department, to hold the cargo until all duties are paid. Importers maintain that it is very tough to clear cargo in the three days stipulated. From the time

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cargo lands at an airport to the time it is delivered to the consignee, the time limit of three days, therefore, is too little.

To add to their problems, the importers feel that the calculation of dwell time is not proper. Citing an instance, one of the importers said that if a cargo were to land at 11 pm, a day would have passed by midnight, barely an hour away. Often, Air India, which is the ground handling agent in Chennai, does not work between 10 pm and 8 am. So, who loses, the importers ask.

While those affected by the move to reduce dwell time at airports have protested about the many factors that lead to delays — all of which are not in their hands — it was not that the government was not aware of clearance problems at our international airports. Around seven years ago, the government set up a committee headed by K. K. Jain from the Federation of Indian Export Organisations (FIEO), to conduct a study to find out the reasons for the delays. In its report, the

The average time taken to clear a shipment differs from airport to airport. In Chennai, for example, the average is 5.4 days while in Delhi it is about 6.6 days

committee mentioned that the major bottlenecks were due to import and export clearances taking up a lot of time. Blaming the long-winded process, the committee also pointed out that the lack of infrastructure at our airports was also one of the major causes of delay.

The Jain Committee did not stop short of pointing out the causes. Instead, it also highlighted the steps that could be adopted to put the air cargo business on the fast track. To begin with, the committee stated that the dwell time for import and export cargo at airports had to be reduced by allowing airlines to take over cargo security. However, the problem with such a move is that the charges imposed by the AAI, which manages most of the airports in the country, are high.

Part of the blame for the delay, according to the Jain committee, lay with importers who did not fill out forms properly. This was the result of inadequate knowledge about customs rules, which brought about delays and a host of paperwork. Another important factor that caused the long dwell time was the congestion at warehouses brought about by importers unwilling to clear their goods soon after the assessment by the Customs.

According to the regulations, importers are allowed to pay an interest-free Customs duty within five days from the day of assessment. A large number of importers make it a point to wait for the full five-day period before paying the duty. The way out, said the Jain committee, was to reduce the period to two days.

The Customs in turn, the committee’s report stated, would have to upgrade its resources with adequate staff and equipment to process cargo shipments faster than usual. The committee mentioned that the Customs needed to work in two shifts on all days, except national holidays.

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ould all this be possible? Not in the very near future and not till the airports’ infrastructure improves. Perhaps, the best short-term course would be to allow the private sector to set up air freight stations near the Mumbai and Delhi airports. Till such time, the facilities provided for export cargo, the committee suggested, could be used to create warehouses that could be looked after by the airlines.

According to Ajay Sahai, Director General, FIEO, who is also a member of the consultative group on civil aviation, all the stakeholders were interested in the reduction of dwell time, “provided sufficient infrastructure is put in place”.

He went on to say that the government’s CRUISING HEIGHTS November 2007

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CARGO desire to reduce dwell time was understandable but it would have been infinitely better if the infrastructure issues — or rather the lack of them — were tackled head-on before the announcement to reduce dwell time was taken.

In Mumbai, for example, in a meeting, which was held to discuss ways to prepare the air cargo industry for the reduction in dwell time, almost all the concerned bodies — Air Cargo Agents Association of India (ACCAI), Confederation of Indian Industries (CII), Bombay Custom House Agents Association (BCHAA), Western India Shippers Association (WISA), Maharashtra Chamber of Commerce and Industry (MCCI), and Indian Merchants Chamber (IMC) — came out openly against the move. The BCHAA wrote to Robert Newsum, the General Manager of the Mumbai International Airport Limited (MIAL), stating that it was premature to implement “the reduction of free time for import cargo without improving and adding to the existing infrastructure”.

Commenting on the move, freight forwarders said that the airports were congested and the systems and procedures were slow. In such circumstances, the trade should not be made to pay penalties. On their part, the airport authorities — from Mumbai International Airport Limited (MIAL) and Delhi International Airport Limited (DIAL) — said that they were only implementing

In a meeting in Mumbai held to discuss ways to prepare the air cargo industry for the reduction in dwell time, almost all the concerned bodies came out openly against the move

IATA launches e-freight pilots

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s the 2010 deadline set by the International Air Transport Association approaches, the move is on to reduce the paperwork in air cargo across the world.

The International Air Transport Association (IATA), working with seven key cargo airlines: Air Canada, British Airways, Cathay Pacific, KLM, Martinair, SAS and Singapore Airlines; freight forwarders (DHL Global Forwarding, Panalpina, Kuehne+Nagel, Schenker, TMI Group - Roadair, Jetspeed), and ground handling agents kick-started the move to a paper-free air cargo environment with the launch of six e-freight pilot projects. Starting November 5, cargo on key trade routes connecting Canada, Hong Kong, the Netherlands, Singapore, Sweden and the UK will be processed electronically.

“The paper-free era for air freight begins today,” said Giovanni Bisignani, Director General & CEO of IATA. “This first wave of pilots will pave the way for a global rollout of e-freight that will eliminate the paper that costs this industry $1.2 billion every year. Combined, these documents could fill 39 B747 cargo freighters each year making e-freight a win for the business and for the environment.”

He also pointed out: “e-freight is a revolution for an industry that is absolutely critical to modern life. For airlines it is a US$55 billion business that generates 12 per cent of their revenues. More

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TIME-CONSUMING CLEARANCE: The cargo area at Delhi airport

broadly, air cargo transports 35 per cent of the total value of goods traded across borders. The potential impact of greater efficiency in

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Around seven years ago, the government set up a committee to conduct a study to find out the reasons for delays. In its report, it blamed the long-winded clearance process air cargo has very broad implications across the global economy,” said Bisignani.

E-freight pilots will systematically test for the first time common standards, processes, procedures and systems designed to replace paper documents that typically accompany air freight with electronic information. During the initial phase, selected shipments will travel without a number of key documents that make up the majority of the paperwork, including the house and master air waybills. Results from the pilots will be used to expand e-freight to other territories.

IATA e-freight requires that business, technical and legal frameworks are in place to allow airlines, freight forwarders, customs administrations and governments to seamlessly exchange electronic information and e-documents. The six pilot locations were selected based on their ability to meet these criteria along with offering network connectivity and sufficient cargo volumes.

At each location, cargo experts from

participating airlines, freight forwarders, ground handling agents, local customs administrations and airport authorities worked together closely over the past 10 months to prepare the pilots.

“High oil prices and cumbersome processing requirements are handicapping air transport’s competitiveness with sea shipping,” said Bisignani. “Sea shipping is expected to grow at 6 per cent annually over the next five years, compared to 4.8 per cent for air cargo.

E-freight makes a four-decade leap, bringing strengthened competitiveness by cutting costs and improving transparency and consistency throughout the supply chain. This good news for the customer will help shore-up air transport’s competitiveness with sea shipping and other modes of transport.” e-freight is one of five Simplifying the Business Projects being led by IATA to improve service and cut costs. The industry has set a deadline of the end of 2010 for the implementation of e-freight wherever feasible.

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what the government had enforced. For them, dwell time had more to do with enforcement of rules and regulations. The measures, the airports authorities said, that have been outlined by the government would help improve efficiency of all operators engaged in the exim trade.

In Delhi, DIAL too, is finding it very difficult to enforce the government’s decision to reduce the dwell time. With goods not being cleared in the three days and storage charges piling up, regular clashes have been taking place. The All India Garment Exporters’ Common Cause Guild (AIGECCG) and the Delhi Exporters Association — Delhi is the hub of the garment export trade — have been protesting the dwell time reduction move.

According to AIGECCG President Chand K. Anand, the processing of any consignment remained with the Customs Department. Unless the rules were changed, there was little that an importer could do.

Putting the onus on the Civil Aviation ministry and the government, the Delhi Exporters Association said that instead of penalising the exporters, there should be more efficiency to reduce the dwell time at airports.

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he move to reduce dwell time was taken after the fourth meeting of the Civil Aviation Core Group (CACG). The group — headed by the Secretary Civil Aviation and has representatives from AAI, Bureau of Civil Aviation Security, Customs and the Ministry of Commerce — has been specifically set up to find out ways to overcome the hurdles in the growth of the air cargo industry.

The government, obviously, has its reasons. Keeping in mind the growth of the economy and the pace of the march towards modernisation, government agencies like the Customs Department have become more tech-savvy. With such strides, there is a feeling that the problem to reduce dwell time for cargo at our airports can be solved. Airport authorities feel that when the Customs forms are available online and can also be submitted online, the question of cargo consignments sitting at the airport for long cannot exist. In the situation, all that the government authorities have tried to enforce is cut down on the free time allowed for clearance of cargo.

The CACG is not the only highlevel group entrusted to foster the growth of the air cargo. There is also an InterMinisterial Group (IMG), under the chairmanship of Secretary, Ministry of Civil Aviation, which has been constituted only

to look at dwell time at airports.

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Robert Strodel back in India to head Flyington Freighters ROBERT STRODEL has been named as the new CEO of the Hyderabad-based Flyington Freighters.

Austrian-born Robert Strodel hopes that Flyington would start flying by the end of this month, now that it has deployed an Airbus A300-600F as an interim measure, before it gets A330-220Fs from Airbus.

Before joining Flyington, Strodel had been the CEO of Etihad Airways and also at the helm of startup Liwa Air in Dubai after quitting Etihad in May 2005. With the Flyington assignment, Strodel comes back to his roots as airline manager. He served as Lufthansa’s Indian country manager for many years before seeking new job opportunities in the Middle East.

Deccan Holdings, the parent company of Flyington, will be the first to launch the new A330-200F that can carry between 64 to 69 tons over a distance of either 7400 km or 5930 km—depending on need. The first A330-200 freighters of a total order of 12 aircraft are set to be delivered in the second half of 2009 to Flyington. Incidentally, Flyington Freighters will be the country’s first international dedicated freighter airline.

MDLR Cargo to start by year-end THE MDLR GROUP, which operates MDLR Airlines, has chalked out plans for the launch of its cargo airline, MDLR Cargo, by the end of the year.

According to MDLR’s Vice President, Rajendra Dubey, the carrier will start operations with one aircraft and enhance its fleet to around 15 aircraft in the next few years. The aircraft being considered are the Airbus A-300 and the MD-8. MDLR Cargo would operate between India and South-East Asia and would fly four times a week, to begin with.

In the second phase, the carrier has plans to expand its operations to south India, including Chennai, Kochi and Bangalore.

Start-up Avicore has plans for cargo airline ONE OF THE companies which has applied to start a cargo airline is Avicore Aviation Pvt. Ltd, which has decided to invest about Rs400 crore. The airline would start operations around the middle of 2008 from Nagpur, the country’s first dedicated cargo airport.

Avicore is being started by Indians and US-based non-resident Indians through Avicorp Llc, with Abhay Lodha, the Managing Director of Mumbaibased Topworth Group, as its main promoter. Avicore Aviation’s Chief Executive is Shankar Devarajan.

The carrier chose Nagpur as its base because it intends to set up a hub in the city and serve other major cities, which will all be under two-hour flying distance. All other airlines can bring in cargo from all over the world and distribute them through Avicore to the respective locations. The firm is looking to lease or buy five Boeing B737 aircraft, capable of carrying about 15-17 tonnes of freight. The first of the aircraft will be those converted to freighters from passenger jets.

BAWC drives India and Nepal with new appointments BRITISH AIRWAYS WORLD CARGO has appointed Tarun Minocha as Customer Service Manager, North and East India and Nepal, and Ankush Chawla as Commercial Manager, Central India. Based in Delhi, Minocha will be responsible for championing Cargo 2000 in the area. Chawla’s responsibilities will focus on driving revenue and ensuring the effective delivery of BA World Cargo’s commercial plan in the central India market. Minocha and Chawla will report to Mat Burton, Area Manager, India and Nepal.

Emirates SkyCargo breaks weight record THE NINE-MAN Emirates SkyCargo Delhi unit has set a record within the cargo carrier’s global network that currently spans 94 gateways in 60 countries. The Delhi team of the award-winning cargo operator uplifted almost 42 tonnes of cargo on EK 4813 — a A310 freighter.

The Delhi team’s achievement — a significant milestone for Emirates SkyCargo worldwide — has bolstered its reputation as an innovative cargo carrier that can transport a variety of goods in various shapes and sizes. Delhi holds the first and second position across Emirates SkyCargo’s global network, having earlier uplifted 41.5 tonnes, and subsequently breaking its own record by uplifting 42 tonnes.

According to Pradeep Suri, Cargo Manager, Northern India their accomplishment was made possible due to a mix and match of both high density and volumetric loads.

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To boost its cargo services, Emirates SkyCargo recently started flights to Ahmedabad with its cool chain solutions. Now, vaccines, bulk drugs, liquid syrups, insulin, and bio-technological products from the pharma capital of the country would not have to wait for flights abroad. From Ahmedabad, Emirates SkyCargo will offer over 110 tonnes of capacity per week per direction, together with its specially-designed temperature-controlled air cargo containers that maintain stable interior temperatures throughout the journey.

Emirates SkyCargo would also be taking advantage of the huge supplies of denim — Gujarat’s apparel parks are the largest supplier of denim in Asia — and ethnic and contemporary gold ornaments to markets in North America, South Africa, and the Gold Souq in Dubai. The Gujarat State Export Corporation Ltd. estimates that Ahmedabad presently utilises a cargo capacity of 1100 tonnes to support its exports.

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NATIONAL A-I Express inducts 10th aircraft AIR INDIA EXPRESS has inducted the tenth owned aircraft into its fleet, which is to be used to operate flights between India and the Gulf region. The airline had ordered 18 Boeing 737-800 aircraft as part of the 68 Boeing aircraft order in December 2005.

Air India Express, a 100 per cent subsidiary of Air India, started operations in April 2005 with three leased Boeing 737-800 aircraft.

The airline now has a fleet of 10 owned and seven leased aircraft. Air India Express operates from 11 Indian cities, including Thiruvananthapuram, Kochi, Kozhikode, Mangalore, Chennai, Trichy, Mumbai and Delhi to Dubai, Abu Dhabi, Sharjah, Muscat, Oman, Bahrain, Doha, Singapore and Colombo, among others.

The airline has plans to start flights from Kolkata to Dhaka, Bangkok and Kuala Lumpur. Among the other flights that have been planned are from Chennai to Kuala Lumpur and Johar Baru, apart from operating from Lucknow, Jaipur and Ahmedabad directly to Dubai.

Deccan’s tele check-in facility DECCAN has started check-in facility for all its passengers at all its 65 destinations. Passengers flying to any destination on the Deccan network with one cabin bag only, can tele check-in from 24 hours up to two hours prior to the time of departure. Passengers who have tele checked in, however, must report to the airport at least 45 minutes before departure to collect their boarding cards.

In-flight promotions by SpiceJet SPICEJET HAS tied up with S&R Works for in-flight promotional activities. The tie-up is in line with SpiceJet’s strategy to increase its ancillary revenues to seven per cent by the end of financial year 2008. S&R Works will sell onboard advertising properties of SpiceJet. To start with, the points that have been identified are the space on headrest covers, tray tables, and the reverse of boarding passes and overhead bins of the aircraft. With an aim to boost its ancillary revenues, SpiceJet has also announced a whole host of initiatives, that would include sale of fast food and novelty items such as electronic gadgets, wallets, jewellery, etc. on all its 15 aircraft flying to 15 destinations.

Aircraft for Air India’s Haj operations: The airline has provided two Boeing 737-800 aircraft on wet lease to Air India to carry Haj pilgrims. The flights will be operated from Lucknow, Varanasi and Jaipur to Jeddah.

The flights would be operated with an Air India flight number, but the operating crew, the maintenance of the aircraft and the colours that the aircraft would fly would be of SpiceJet, according to Executive Chairman, Siddhanta Sharma.

Destinations at Tier II cities: SpiceJet is eyeing Tier II cities for possible expansion of its operational network. The airline has started operating daily flights from Coimbatore to Delhi, Mumbai and Hyderabad and twice daily to Chennai from October 25. The carrier had started daily flights from Coimbatore, its 17th destination. While the flights between Coimbatore and Mumbai, Hyderabad and Chennai were direct; the Coimbatore-Delhi flight was being operated via Hyderabad. SpiceJet plans to add three aircraft every year to its fleet, over the next three years.

CRUISING HEIGHTS November 2007

Kingfisher to Malabar Coast Kingfisher Airlines has started daily direct flights from Kochi to Thiruvananthapuram and Kozhikode and

from Kozhikode to Mangalore and Goa. With the launch of these services, Kingfisher Airlines now connects 32 cities with 200 flights a day. According to V. Raja, VicePresident - Sales, South East Asia, the flights would be the first of its kind hugging all the five airports on the entire Malabar Coast up to Konkan, and providing quick connectivity between all stations.

Tickets on the SMS: Kingfisher has tied up with PayMate to introduce an SMS-based service that will allow customers to search, book and pay for tickets on the mobile without any manual intervention. The ‘FlyBuySms’ service will not require a registration, or the downloading of any application. The service will work on any handset model and operator. The customer

will incur premium SMS charges of between Rs 2-3 for the service.

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GoAir doubles flights AS PART OF its expansion plan, GoAir has added two new aircraft to its fleet and doubled its flight operations from October-end. The airline has doubled the overall frequency of its network by increasing its flight operations from 259 flights to 561 commercial flights per week.

The new flights have started from October 28. The expansion programme has begun despite the fact that GoAir has no plan to add new destinations to its current network during this fiscal. GoAir’s operational strategy comes in the wake of the carrier consistently recording the highest load factor — in excess of 80 per cent — during the last few months.

Announcing GoAir’s winter schedule and first phase Jeh Wadia with Miranda Mills, Vice President, Sales roll-out of its frequency building programme, Managing Director, Jeh Wadia said that the airline would operate 177 operate 49 departures from Bangalore, 36 from Goa, 28 from departures from Mumbai, 130 departures from Delhi and 40 Jaipur, 21 from Ahmedabad, 27 from Chennai and 14 from departures from Hyderabad. In addition, the company would Cochin every week among others.

INTERNATIONAL BA launches new business class cabin BRITISH AIRWAYS is bullish on the prospects in the Indian market and as part of investing in the market, the airline has unveiled its new business class cabin. The airline’s Area Commercial Manager, Amanda Moss, said that the new business class product would be available on both the flights operating from Delhi. The product, however, would be rolled out in a phased

manner and would be available on all the 43 weekly flights that the airline operates from the five cities in India. The new seats are 25 per cent wider and offer more privacy and storage space apart from providing audio and video systems on demand.

China Eastern to connect Kolkata CHINA EASTERN AIRLINES has connected Kolkata to Kunming, the capital of Yunan province of China from October 30.

The three-days-a-week direct flight between Kolkata and Kunming is in addition to the airline’s services to Delhi. The carrier is

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planning to connect more cities in the future. The Mumbai flight, which was suspended two years ago due to technical reasons, could be started in the future.

Air France ready to fly out of Kolkata AIR FRANCE was keen to operate flights between Kolkata and Paris for which it had approached the Civil Aviation ministry, according to West Bengal Chief Minister Buddhadeb Bhattacharjee. The CM also said that Lufthansa had also expressed its desire to increase the frequency of flights connecting Kolkata and Frankfurt from thrice a week to daily.

Continental begins direct flights to Mumbai THE MUMBAI-US sector is gaining popularity. Continental Airlines has received 25 per cent to 30 per cent more bookings and expected the trend to continue on its newly-launched flights between Mumbai and New York, as compared to its existing Delhi to New York service, according to Senior Country DirectorIndia of Continental Airlines, Laurent Recoura.

The airline is offering attractive introductory prices such as Rs 36,000 return fare exclusive of taxes.

While the lowest business class ticket would cost Rs1.6 lakh, the higher-end business tickets would be around Rs 3.9 lakh.

Continental said it could add more routes to major Indian cities in two years’ time to cater to the growing demand for travel between India and the US. With the delivery of its first batch of Boeing 787 Dreamliners in 2009, the market for long-distance travel — especially to India, South-East Asia, Australia and China — would open. At that time, the carrier could look to add more destinations in the country.

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Malaysia Airlines starts extra flights from Bangalore MALAYSIA AIRLINES has increased its frequency from Bangalore by adding one more weekly flight from the city. It operated three weekly flights from Bangalore earlier. The airline has also enhanced frequencies from Chennai: adding two more weekly flights to the existing seven.

With these new flights Malaysia Airlines’ total seat capacity from Chennai and Bangalore gateway has increased to 3607 seats from 2920 seats. With the addition of the three new flights, the carrier now operates 30 weekly flights from its present five gateways in the country.

Swiss’ daily service between Delhi and Zurich SWISS INTERNATIONAL AIR LINES or Swiss will introduce a new daily service between Zurich and Delhi with Airbus A330 aircraft on November 25, 2007. Delhi will then become its second destination in India, along with Mumbai, and

Air Arabia Bangalore service begins UAE-BASED LOW-COST carrier Air Arabia is on a high.

Over a four-year period (2003-07), the carrier has seen rapid growth and increasing popularity on its routes. In the past year and a half alone, growth has been quite brisk. Passenger traffic through the first half of 2007 saw 1.23 million passengers flying on Air Arabia, a 57.9 per cent increase from the same period in 2006. Most recently, in July and August 2007, almost 500,000 passengers made Air Arabia their carrier of choice, up from 347,000 during the same period in 2006.

Recently, it launched its four times a week flights between Sharjah and Bangalore — its ninth destination in the country — from October 15. According to Kyle Haywood, Commercial Director, Air Arabia, the flights between India and the Middle East will answer the growing need for passengers travelling between the two economically vibrant regions.

The airlines seeks to give those who travel between these two regions “low-cost fares along with the highest quality of service possible, whether they travel for business, holidays or to see family and friends”.

In India, Air Arabia connects Ahmedabad, Chennai, Jaipur, Kochi, Mumbai, Nagpur, Thiruvanathapuram, Coimbatore and Bangalore to the Gulf and beyond. The airline has also received an extremely positive response from customers in India. For year 2006, the average number of passengers carried for India was 333,176 and for 2007, number of passengers carried by far is 293,026.

passengers would have a choice of 14 weekly flights between India and Switzerland.

Jean-Philippe Benoit, General Manager of the airline, while announcing the flight, said the carrier had come back after a gap of almost four years. The increased demand for travel to Switzerland had enabled it to add Delhi to its existing network. Combined with its partner Lufthansa, fliers would now have a choice of 59 weekly departures from India to its three European hubs at Zurich, Frankfurt and Munich.

Finnair eyes expanding India-North America traffic FINNAIR wants to position itself as a major player in the growing air traffic between India and North America, in the new vision the Finnish carrier has drawn up for itself. With demand between the two continents expected to grow significantly, Finnair would like to cash in on passengers changing aircraft in Helsinki and thereby dividing the trip into two pleasant sections.

The airline also said splitting a non-stop flight of 14 hours between India and the US also posed lesser burdens on the environment. It hoped to offer the Indian customer more choices when some countries adopt open skies policy. The

expected opening up of Russian air travel market in the future will offer new opportunities to complement the network, according to the airline.

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TRAVEL & TOURISM

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Grand Tour of India in 30 days

Oberoi celebrates success

ON OCTOBER 7, 2007, 72 foreign tourists comprising a group of influential persons with different professional backgrounds, gathered at the historic Gateway of India in Mumbai, with their four-wheel drive (4x4WD) vehicles, driven by their passion to embark on car tours to the remotest parts of the world. A spectacle line-up of 33 four-wheel drive beauties consisting of rugged Land Cruisers, powerful Pajeros, firm-footed Cherokees and other luxury SUVs were seen off by leading dignitaries, including Dr. J. M. Pathak, Municipal Commissioner of Greater Mumbai.

Amidst a flurry of waving and cheering crowd, the travellers set off on a Grand Tour of India, on a journey that would take them through one of the most colourful and fascinating places on planet earth, through 23 cities across 12 states in 30 days, covering a distance of over 7500 km.

The participants, mainly from the UK and other European countries, US and Mexico, are members of the UK-based driving club: the HERO (Historic Endurance Rallying Organisation) 4x4 Explorers Club. The Club enables and encourages owners of luxury 4-WD vehicles to travel on long distance journeys to specially selected destinations. In previous years, this luxury, self-driving, tourism event has taken place in South America, Africa, Russia, China and Mongolia.

The tourists will follow a meticulously planned route, driving along less frequented country roads away from the beaten track. “We won’t be taking the usual highway route. We will rather drive through the hinterland so that we get to see and experience the texture of the country better,” said John Brown, CEO of the Club.

The itinerary will take the travellers through the Western Ghats, including the Ajanta and Ellora, to Udaipur, Jodhpur and Jaipur in Rajasthan to Delhi and onto Dalhousie, Dharamshala, Shimla, Manali and Rishikesh in the Himalayas, to Agra, Gwalior and Khajuraho, through Kanha and Bhandavgarh national parks onto Hyderabad and Vijayanagar and back to Mumbai via Goa.

THE OBEROI GROUP invited its key trade partners to an informal evening.

It was an opportunity for senior members of the travel trade to meet the managers from The Oberoi Group and to discuss issues facing the industry.

Trade partners who significantly contributed to the summer business to Oberoi Hotels & Resorts were recognised. During the course of the evening, members of the travel trade was also briefed about the recent awards received by The Oberoi Group, which include The Oberoi Udaivilas, Udaipur, being rated the best hotel in the world by the readers of Travel + Leisure and Oberoi Hotels & Resorts being ranked the best hotel chain (outside the US) in a readers' survey of business travellers conducted by Condé Nast Traveler.

(Top)The Oberoi sales team and (below) Vivek Govil, Oberoi’s Executive VP - Sales, felicitates Himmat Anand, CEO of Kuoni Destination Holidays

ITB Berlin 2008 FOR YEARS ITB Book World and ITB Cultural Tourism have been major attractions with trade visitors and public at the ITB Berlin. In 2008, the ITB Book Awards will, for the sixth year, honour outstanding works and achievements from amongst travel guides, travel literature, illustrated travel books, travel cookbooks, tourist maps and innovative publications. The award-winning works will hopefully whet the public’s appetite for visits to selected countries and should also help in choosing the right travel guides. Likewise, ITB cultural tourism will showcase the best of international as well as city cultural tourism.

Established in 1966, the ITB Berlin is the largest trade show of the international travel industry, anywhere in the world. Around 11000 exhibitors are expected to participate in the ITB 2008 to be held between March 5-9, on the Berlin Exhibition Grounds.

Every year the ITB Berlin leads to conclusion of business deals worth around five billion Euros.

Jamaica has a new tourism minister EDMUND BARTLETT has been appointed the new Tourism Minister of Jamaica, following the third electoral victory by the Jamaica Labour Party. Bartlett assumes charge at a time when the island is experiencing substantial infrastructural development in its tourist industry. In 2006, Jamaica recorded over three million visitors for the first time. Bartlett is planning an aggressive tourism plan that includes promotion of more high-value luxury accomm odation, increased focus on Jamaica’s culture and heritage, the opening of resorts in non-traditional areas as well as expansion of cruise ship facilities on the island’s famous north coast.

Malaysia International Gourmet Festival FOOD CONNOISSEURS from around the world can now prepare to take a trip to Malaysia, during the Malaysia International Gourmet Festival, scheduled from November 2-30, 2007. This gourmet extravaganza will bring together culinary maestros presenting sumptuous gastronomic delights during the month-long festivity which will feature 30 of the country’s very best master chefs and restaurants. A highlight of the tour is a five-day cooking class categorised into Malaysian, Japanese and International cuisine.

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Yatra.com and Barclays launch Yatra Barclaycard YATRA ONLINE, India’s largest online travel services company and Barclays, the global financial services giant, are launching the Yatra Barclaycard, India’s first online-travel co-branded credit card and the only one with a multi-carrier frequent flier programme.

The Yatra Barclaycard is specially designed for the fast growing group of Indian travellers and offers wide global acceptability, flexibility on credit limits and billing dates, and a special Yatra Miles reward programme entailing travel-related benefits.

CNTO to host 30 Indian delegates at the CITM CHINA NATIONAL TOURIST OFFICE, Delhi, will host a 30-member strong Indian delegation at the forthcoming China International Travel Market (CITM). Asia’s largest professional travel show will be held in Kunming from November 1 to 3. Since India and China are celebrating 2007 as year of friendship through tourism, India will be ‘the guest country of honour’ at the CITM along with Greece. The delegation will comprise key travel trade members from the country and members of the media.

Karnataka Tourism appoints marketing partner for Golden Chariot THE LUXURY TRAINS, New Delhi, has become the worldwide marketing partner for the new luxury train in south India — The Golden Chariot — of the Karnataka State Tourism Development Corporation. The Luxury Trains has been pioneering the sales of Palace on Wheels, Heritage on Wheels and Deccan Odyssey through its global network to its travel industry partners and international members of PATA, ASTA and USTOA for many years. The Golden Chariot train, named after the famous stone chariot in Hampi, a world heritage site, will travel through timeless historical heritage sites, resplendent palaces, wildlife and golden beaches.

IHG announces relaunch of Holiday Inn brand

IHG (InterContinental Hotels Group) has announced a worldwide relaunch of the Holiday Inn brand family, which comprises the Holiday Inn and Holiday Inn Express brands. The relaunch will incorporate a new service promise, a redesigned welcome experience as well as refreshed guestrooms with signature bedding and bathroom products. The first new-look hotels are expected in China, Thailand and Australia by the second quarter of 2008. The brand relaunch programme incorporates insights from an IHG-commissioned consumer research, which gathered input from 18,000 travellers globally.

Rs 323 cr for tourism projects THE MINISTRY OF TOURISM (MoT) has sanctioned Rs 323 crore worth of projects to create highclass tourism infrastructure in selected tourist circuits and destinations in the country. The MoT extends Central Financial Assistance to state governments for this purpose. During the 9th Five Year Plan period, a double-pronged strategy of upgrading the tourism infrastructure and vigorous marketing under the banner of ‘Incredible India Campaign’ was followed to position India as a global brand. In the 11th Five Year Plan (2007-2012), MoT proposes to continue developing the infrastructure in the country to enhance the competitiveness of India as a tourist destination.

Fortune is 37; Indore gets 5-star rating FORTUNE PARK HOTELS, the wholly owned subsidiary of ITC Limited, now has 37 signed properties spread all over India. New categories of hotels, added to cover new identified segments, have served to expand the chain’s base. These include the top of the line ‘Select’ category, followed by ‘Park’, ‘Inn’, ‘Faith’, ‘Resort’ and ‘Residence.’

The newest addition to the chain is ‘Fortune Resort Grace’, which has been signed up at Mussoorie and is expected to open in April 2008. A centrally located hotel, it is spread over 30 acres of land overlooking the Doon Valley and has 75 rooms. It has a speciality restaurant, a coffee shop, a bar, a night club and a 4500 sq ft banqueting facility.

Fortune has also taken up another new category, the ‘Fortune Highway’, which focuses on road travel and the first new ‘spot’ is located on M G Road, Gurgaon. It will have a total of 32 rooms and is expected to begin operations by December 2008. A 5000 sq ft banqueting area, a business centre and a coffee shop, will be among its special features. According to Suresh Kumar, President Fortune Park Hotels Limited, “India now has a number of 8-lane and 6-lane highways connecting metros and improved and wider roads are also seen in mini-metros. Road travel is likely to become a very important segment in the future. With more disposable income these days, families take short breaks and enjoy driving to near by destinations. This is likely to increase as a large

Suresh Kumar, President, Fortune and a room of the Indore Fortune Park

number of global car brands have already entered the market, while others are vying for entry.”

The Fortune Park Landmark Indore, has recently received a 5-star rating. Owned by Suraaj Hotels & Resorts, the hotel became part of the Fortune chain in August 2003. Set in three and a half acres of landscaped gardens, Fortune Park Landmark Indore offers 78 rooms and suites. The chain’s superior brand of rooms, in the Fortune Club category, have been created by leading Mumbai designer, Prakash Mankad, who has also been commissioned to upgrade all the hotel’s other existing rooms and suites, within the next year.

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TAAI blooms in Chennai OVER a thousand delegates converged at the recently concluded Indian Travel Congress’ 56th Convention and Exhibition of Travel Agents Association of India (October 5-8, 2007) at Chennai, making it one of the largest attendances at a TAAI Convention. This year’s convention witnessed seven business sessions that took centrestage, touching on topical subjects inviting direct participation from delegates thus making the proceedings both very meaningful and educative, especially for first-timers.

The sessions ended with a special discourse on HRD that saw a full house. Dignitaries at the inauguration on October 5 included the Tamil Nadu Finance Minister Perasiriar K. Anbazhagan, the state’s Chief Secretary L. K. Tripathi and Tamil Nadu Tourism Minister N Suresh

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Rajan who also inaugurated the TAAI Travel Mart — a travel and tourism exhibition.

The Mart saw the participation of domestic and international tourism boards and airlines as well as hotels, tourist resorts, inbound and outbound tour operators, CRS companies and other allied services providers.

“Like every year this year too TAAI tried to bring in highly motivational and topical subjects for the various business sessions, keeping in mind the latest trends and policies in our travel and tourism industry that will ensure that the common travel agents can survive in the fast changing scenario. This is what makes us different from other associations,” said Rajji Rai, Convention Chairman.

The Convention ended with a trip to the famous Balaji Temple at Tirupati.

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Welcome to Cruising Heights CRUISING HEIGHTS has been part of the Indian aviation scene for many years now. In this period, we have established a name for quality reporting and analysis on issues relating to every aspect of the aviation business.

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Reaching for the stars I Good show, lads W

hat’s common between Mahi, Yuvi, Bhajji, Rudra, Robin and Irfan? Barring Robin, they all come from the hinterland, are national heartthrobs and work for the Maharaja. So, it was a mighty pleased Air India and its top bosses V. Thulasidas and Vishwapati Trivedi who laid out the red carpet and felicitated Messrs Dhoni and Company. Way to go, boys!

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f you know what a shuttler is, you sure know that Vijay Mallya has never been one. Yeh, we mean a badminton champion and not someone who shuttles between cities.

But let’s grant it to him. The guy certainly has an eye for the stars.

No wonder he spotted fellow Kannadiga, Deepika Padukone, from a mile. And he has now signed her as the face of Kingfisher Airlines. Well what can we say, but exclaim: the good times gets a bit more gloss!

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