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TAAI@Dubai: Showcasing India to the world

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Express Industry: Reform in regulations must

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EDITOR-IN-CHIEF’S NOTE

It happened this September

S

ome years ago, when Indian aviation was growing by over 30 per cent, the GDP was at an eight per cent growth chart, hoteliers across the country, particularly the big metros, suddenly hiked their rates. Nothing wrong with it, per se.

They were simply following the demand and supply principle. What was horribly wrong, though, was the refusal of many to honour bookings made in advance and creating such a bad reputation for themselves and incredible India and that their biggest benefactors — The Indian Association of Tour Operators (IATO) — roundly complained against them to the Ministry of Tourism. “They are giving a bad name to India, for heaven’s sake, do something,” operators told the Ministry. The feisty, Renuka Chowdhary, who was then, the minister gave the hoteliers a mouthful for their mercenary ways.

Two weeks back, in a bizarre replay, it was the airlines that upped their fares without a second thought for the paying passenger, caught in the quagmire of the Jet Airways strike. The airlines logic is again, the demand and supply story. But, was it the time for them to raise their ticket prices when desperate passengers were looking for the quickest and cheapest alternative to their destinations? Of course, passengers who were already booked, were not the victims, but that’s not the point. Is it fair to hike fares suddenly out of the blue simply because another airline is grounded temporarily?

CRUISING HEIGHTS October 2009

A consequence of the hike was Civil Aviation Secretary Madhavan Nambiar calling a meeting of all airlines and asking them to keep their prices at the pre-strike levels. Next, the Directorate General of Civil Aviation (DGCA) warned them to restore their fares to the pre-strike levels. And the Minister chipped in by saying that what the airlines were doing was intolerable. The only one to emerge with its honour intact in this entire episode was everybody’s favourite whipping boy: the Maharaja.

Air India declined to raise its fare, flew to capacity and only reiterated what a national carrier means.

There are two interesting fallouts of this entire episode.

First, all this talk about unity amongst airlines is a lot of hogwash. It’s a dog-eat-dog world and given a chance any of them are willing to turn the screws on the other. The fiasco of the August 18 was the first time that it was evident when several airlines broke rank and the strike call had to be called off!

More importantly, airlines that are constantly demanding less and less regulation have once again given ample proof that without regulation or the Ministry’s firm hand it would not be ‘open skies’ but a ‘free for all skies’.

Would that be good for the airline business?

Most certainly not. But if Big Brother is watching the proceedings, the airlines only have themselves to blame. In each of these instances, they have been the catalysts. When you behave like schoolboys, you will only get a headmaster! And in some instances, he could even have a cane in his hand.

It all happened this September!

October though is the time when the festive spirit envelopes the country. Season’s greetings!

Peace, prosperity and happiness!

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Off the cuff

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Sitting duck?

The recent incident of a delayed flight to Riyadh from Mumbai brings back memories of horror stories, which often happen at our airports. Airline passengers are often left trapped on the tarmac for hours waiting in vain for their flight to take off or for some kind soul to take them to the terminal.

Or, as it recently happened when flights were cancelled because the pilots decided to take the day off together. That brings up the question: Do passengers have rights?

In fact, passengers do have rights but they are never enforced. In 1995, over 87 signatories to the Montreal Convention (including the USA, Canada and the European Union) agreed to harmonise passenger rights and to provide compensation for delays and lost luggage. In 2005, the EU created a clear schedule of compensation and required airlines to notify passengers of their rights when a delay occurs.

The EU has since documented airlines' failure to comply with these regulations.

A move is on in the US, to term such delays on the tarmac as “imprisonment” and bring about a change in the way airlines think of passengers. Lawmakers think that decades after moving from mail routes to passenger service, airlines still continue to think of passengers as parcels. They feel that all that the airlines focus on is operations, not on the people sitting in their seats.

However, the situation is improving — at least in the US. Continental, for example, has a promise: it won't leave passengers sitting on the runway for more than three hours. We do not know of any such promise by any of our carriers.

What then is the solution? Perhaps, build more runways, taxiways and gates and above all improve the Air Traffic Control system.

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contents

BUILDING HOPE IN THE SKIES

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ICAO President Roberto Kobeh Gonzalez agreed that the global aviation industry was going through a serious crisis, he pointed out that his organisation handled thingsnot exactly fall in the realm of finances of the airline industry. Also, an analysis of IATA’s latest figures on the performance of international airlines and a forecast for 2010.

OFF THE RECORD

p6

A blow-by-blow account of the Jet strike and the manner in which Naresh Goyal tried to defuse the crisis; Capt Gopinath’s book is almost ready and how Air India may be down in its business but still flies high in cricket.

CRUISING HEIGHTS October 2009

NEWS DIGEST

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ICAO President visits Delhi airport. Plus domestic airlines continue to face major problems and a comparison of the market share of NACIL with domestic airlines.

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

CHOCKS OFF

p36

CRUISING HEIGHTS Volume IV No 6

Editor-in-Chief

K SRINIVASAN Managing Editor TIRTHANKAR GHOSH

Consulting Editor

TAAI

p69

TAAI’s Indian Travel Congress is all set to be held in Dubai. It will showcase the potential of the Indian tourism product and create opportunities for travel agents to woo travellers from the Gulf nations.

DIRECT DELIVERY

The recent symposium on cooperation in air transport saw stalwarts from the industry discussing regulation of the skies and airport charges. Do we follow the opinion of IATA and ICAO blindly?

R KRISHNAN

Reporter PUNIT MISHRA

Art Director BHART BHARDWAJ

Design RUCHI SINHA PRADEEP JHA

Photo Editor

GLOBETROTTING

p38

Sounds weird but two pregnant women gave birth prematurely after eating contaminated chicken wraps, sold on Virgin Blue flights.

p49

H C TIWARI

Director

RAVI SHARMA (Mob. 9650433900)

Gen Manager RAJIV SINGH (Mob. 9810030533)

Regional Manager (Mumbai) MADHURI REKHI (Mob. 9769439988)

Asst. Manager (Corporate Affairs) AMIT SINHA (Mob. 9650433099)

Asst. Manager (Advertising) PINTU WAHENGBAM

As the country moves rapidly towards globalization, there is urgent need to remove the restrictions that control the express industry. The relaxation of the rules would not only facilitate trade and investment but bring greater productivity.

(Mob. 9650433088)

Subscription JAYA SINGH (Mob. 9650433044)

Executive Director RENU MITTAL

BACK PAGE

p88

Air New Zealand has created a community to help North Americans and New Zealanders meet up online with people on the other side of the world.

SNIPPETS

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Kingfisher has started flights to Singapore while Air India has tied up with Singapore Airlines. Plus: Sri Lanka and a host of countries are going all out to woo Indian tourists. Each one launched road shows and agents’ meets to showcase their tourism products.

Cover photos: H. C Tiwari Cover design: Ruchi Sinha

CRUISING HEIGHTS October 2009

Editorial & Marketing office: Newsline Publications Pvt. Ltd., C-15, Sector 6, Noida 201 301, Tele: +91-120-4145555 Mumbai: Ms Madhuri Rekhi (Mob. 09769439988) Platina, 9th floor, C-Block, G-59, Next to Citibank Bandra Kurla Complex, Bandra (East), Mumbai 400051, Tel.: +91 22 3953 0528 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-91 and printed by him at Nutech Photolithographers, B-240, Okhla Industrial Area, Phase-I, New Delhi-110020.

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It's like Emirates

PERISCOPE

“

It’s the start of something. It is like when the first plane flew for Emirates (airline) and the first container ship arrived into port.

Dubai’s ruler, SHEIK MOHAMMED BIN RASHID AL MAKTOUM on the launch of Dubai Metro.

LETTERS TO EDITOR

MDLR has come a long way since its inception. In these times of downturn, the airline is re-evolving its strategies as illustrated in the story (MDLR: Lone ranger with high ambitions, September ’09). It is good that MDLR under the able leadership of Koustav M Dhar, COO & ED is looking to expand services to Tier-2 cities, which will further strengthen its base in the country. This positive ‘frame of mind’ will definitely help the airline to grow in the future. The airline’s desire to touch foreign destinations that well-established carriers have kept away from, will reap rich dividends.

Ram Singh, Jaipur

Illustrations: Rajeev Kumar

For the past two months, we have been working for betterment of the airlines, but the management is adamant on the 50 per cent cut in our salaries. It is not acceptable to us.

ACEU General Secretary J B KADIAN on the proposed pay cut at AI.

The cover story (Mission across the Marmara, September ’09) was interesting to read. The importance that the Sabiha Gokcen airport has received, is worthy of appreciation. Indeed, the airport has plans to leave an indelible impression with its growth trajectory. The infrastructure development that the airport has put up, is truly remarkable, thanks to infrastructure giants like Limak and GMR. It is also interesting to note that an Indian infrastructure company GMR has been involved in such a major project. I want to compliment GMR for achieving this rare feat and hope that the company would be involved in more international projects in the future.

Mahavir Gill, Ludhiana

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No go

Chennai gets a makeover (September ’09) analysed some very interesting facts about Chennai airport. As a matter of fact, the architectural grandeur as illustrated in the story will give the airport a complete facelift and would make the airport one of the finest after Bengaluru and Hyderabad airports. The Rs 2000 cr which will be infused into the airport would surely make the airport a name to reckon with. The airport has got its due after a long time (which I think, it should have got earlier), but I strongly believe it will surpass the expectations of travellers in the future.

K Ramadoss, Chennai

My role in AI Ideally speaking, it is not the job of the Government to run an airline.

But when the Government has decided that it will own and run Air India, it is our job to ensure that it runs. We are only wanting to give equity support and substitute their high-cost debt by low-cost debt.

Beyond that we are not going to write out a cheque.

Civil Aviation Minister PRAFUL PATEL on the sarkari role at Air India.

Tough scissors There is a natural advantage in operating aircraft of less than 40 tonne weight and having less than 80 seats as we don’t have to pay different charges like airport landing. We are ruthless on cost management too.

Paramount Chairman M THIAGARAJAN on the airline’s fiscal discipline.

Red angle Right now, we find that the four private-controlled airports have not come up to expectations and they seem mainly interested in real estate operations.

Airports Authority of India could build the low-cost airports near large cities.

CPI MP D. RAJA in a letter to Dr Manmohan Singh.

All correspondence may be addressed to Editor, Cruising Heights, C-15, Sector 6, Noida 201 301 OR mail to cruisingheights@newsline.in

CRUISING HEIGHTS October 2009

On the radar India will be operational. We are committed to operating (routes) to India. flydubai CEO GHAITH AL GHAITH on the India operations.

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Business class, anyone?

Swiss International Airlines is selling

upgrades to flat-bed berths for $460.

Singapore Airlines has reduced the

price of business tickets bought with air miles by half.

British Airways is offering two premium seats for the price of one.

Till the end of August this year, Swiss,a unit of Deutsche Lufthansa AG, was offering an upgrade from coach to business-class for 500 Swiss francs, or $460, on flights from Zurich to New York.

COLD STATS

Flying business class is no longer a luxury, according to Bloomberg News, and one that can be afforded only when your company is paying for the flight. So, how are airlines managing to woo business-class travellers?

First-class and business-class travel fell 21 per cent worldwide in June from the levels a year earlier. That has taken away a lot of profits from carriers like British Airways, which got 45 per cent of its revenue last year from premium travel that accounted for only 13 per cent of the seats it sold.

LOOKING GLASS

It’s tough keeping these flying machines in the air

Oye Baba!

They are behaving like terrorists.

Jet Airways Chairman NARESH GOYAL on the pilots when they struck work at his airline.

I think today the industry needs around a 20-25 per cent rise in fares because there is a need to cover costs and also to breakeven.

Jet Airways’ NARESH GOYAL on low fares in India.

CRUISING HEIGHTS October 2009

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OFF THE RECORD

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he Bangalore edition of Midday had a very interesting item on the LCC Guru who is busy giving finishing touches to his memoirs. Here is a peek into the magnum opus: As a young army man, budget airline guru Capt Gopinath was in love with a pretty Muslim girl, but her parents flew down from Kuwait and broke up the romance. The love blossomed in Thiruvananthapuram where he was posted as an army officer.

The girl had two friends who Gopi’s friends were seeing.

Gopi didn’t want to marry her but often went out on dates with her. Her parents, away in Kuwait, flew down

when they heard about the love. They locked her up. She called Gopi and pleaded with him to get her out. Gopi and his friends helped her escape in the middle of the night and sent her to Bangalore to stay with one of his friends.

When her parents landed at his door with the police the next morning, he meekly revealed his girlfriend’s whereabouts. “We were young,” Gopi recalled.

“I realise I was so immature.”

The book is titled: Simply Fly. This was the tagline of Air Deccan, the lowcost airline he founded. “The proofs are being read,” said Gopinath. “If all goes well, you will be reading my story in the third week of October.” Harper Collins is

The Gopinath

Photo: H.C. Tiwari

you didn’t know

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the publisher.

M K Shankar, freelance journalist, is editing the book, and Vishweshwar Bhat, editor of the daily Vijaya Karnataka, is translating it into Kannada.

“I want to inspire the new generation,” said Gopinath. “That’s the reason I set out to write my story.” He said, he offered no formula to make money, but did have some tips on how to overcome hurdles in the way of entrepreneurship.

It took a year and a half for him to complete 500 pages, and he believes the length will come down to 450 after editing. He spoke on a dictaphone and an assistant transcribed it all for editing. “I used to spend three hours a day on the dictaphone,” he said. “And, I did it regularly.” The story spans his childhood in picturesque Gorur, a village immortalised by the novelist Gorur Ramaswamy Iyengar, and the launch of Air Deccan in March 2003.

He also describes his stints in the army, and as a farmer and aspiring politician. “It was a nice experience to edit it,” said Shankar. “It is a unique book that has lessons about business, politics and the Indian psyche.”

Those who are interested in the cargo industry, are also looking forward to Simply Fly. Simply because Capt Gopinath who has, recently launched his Deccan 360, will tell the world, why he started his cargo service. One can expect Capt Gopi to recount the Airbus engine episode that sparked the imagination of the LCC pioneer to start the cargo airline.

Many people do not know that behind the formation of the cargo airline is Capt Gopi’s vision, which he once told CRUISING HEIGHTS was a “completely revolutionary, one of doing business in the Indian context wherein the cost of manufacturing any product and then, the cost of sending it to the shelves, will come down dramatically”. Future entrepreneurs should pick up the book for a lesson or two.

Capt G R Gopinath

CRUISING HEIGHTS October 2009

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OFF THE RECORD

Without comment

H

(Clockwise from top left) Mahendra Singh Dhoni, Harbhajan Singh, R P Singh, Yuvraj Singh and Suresh Raina (below left).

Blue or red,

AI is the best

T

here are, however, others areas where AI is doing, brilliantly well: as one newspaper heading said: Air India, the national carrier may not be flying high but Air India cricket is.

Two Air India teams were the two finalists of BCCI’s inaugural corporate trophy.

Air India Blue are the Mumbai side, which has a history in corporate cricket and whose original promoters were The Times of India. Incidentally, the Times Shield is older than the national championship for the Ranji Trophy. Air India Red are the erstwhile Indian Airlines side, headquartered in Delhi.

Some of the cricketers who played in the matches, were Mahendra Singh Dhoni, Yuvraj Singh, Harbhajan Singh, RP Singh and Suresh Raina. But they are not the only ones, there are others as well. That’s for you to find out. Arre, know your national carrier baba.

Interestingly, Air India Express did a special flight from Chennai to Bangalore and onwards to Colombo to get our cricketers to the Sri Lankan capital, in time for the tri-series between India, New Zealand and Sri Lanka. With Jet Airways on strike, there was no option but for the Maharaja to fly his cricketers.

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CRUISING HEIGHTS October 2009

ere is a gem from the DNA, written by former ONGC Chairman Subir Raha: My first flight was in 1962, by a private airline Dakota. My first experience of Indian Airlines (IA) was in 1965, in a Skymaster. My best inflight experience was in 1989, having caviar with Stolichnaya vodka in a crystal glass for brunch in an Air India 747, first class.

In all these years, there was one mess for which IA cannot be blamed: the decision by Prime Minister V P Singh to ground 19 brand-new aircraft to score a senseless political point. This, hardly helped Singh but the idling for nearly Subir Raha two years, ruined the financials of IA. But they had some 20 years to bounce back!

The chewing gum story: I boarded the ‘new’ Air India, to be ignored by the hostess who continued to chew gum as passengers boarded, doors were sealed, even during the safety demonstration.

She was sharing some jokes with two colleagues at the rear of the aircraft, oblivious of the customers in-between. One has experienced many frustrations on AI/IA, but a hostess chewing gum on duty was the limit.

It is unkind to generalise on the basis of this one incident, but the point is that she did not have any sense of pride in her work; she did not feel that she ‘belonged’; she did not care for the customer. Will anything change even if she is dismissed from service?

And, these are the same ladies who then go to court seeking relief.

How can you compete in such circumstances Mr Jadhav?

By the way, the whole piece is worth reading. Mr Raha has plenty else to say.

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OFF THE RECORD

A grounded

Jet!

“I

t is Naresh Goyal’s airline.

He can choose to shut it or run it. We are only trying to get justice for the commanders who have been terminated without reason. When the airlines threatened a nationwide strike to get their demands, it was all constitutional. Now, when we are demanding the most obvious right, the management is quick to deny it and strict action is being taken,” said Captain Sam Thomas, one of the sacked Jet Airways commanders, during the course of the first-ever strike in the country’s premier private sector carrier in September.

Naresh Goyal’s riposte to the telling comment from Sam, was to label all pilots as “terrorists” who were holding the country to ransom. If, he thought this comment would win him brownie points from the government, he was way off the mark. If anything, it only further queered the pitch with the airwaves raising the decibel on this new terrorist on the tarmac and the government, clearly embarrassed by the heat and dust of the show.

But that’s getting ahead of the story, Captain Sam Thomas and Capt D Balaraman were both active in the Society for Welfare of Indian Pilots (SWIP), the body of Jet Airways aviators that discussed issues with the management. When discussions between the two sides remained simply a discussion over the years and the Soci-

ety was told that their body was purely one that was advisory in nature and their demands “would be considered but not binding on the management”.

It’s at that point that the pilots decided that SWIP wasn’t helping them and they decided to get a legal status so that they could negotiate in a professional manner with the management. The National Aviators Guild (NAG) was set up and Captain D Balaraman and Captain Sam Thomas were given the task of getting it registered with the Labour Commissioner. Both were sacked on July 31 for reasons that were never specified and one thing led to another and finally, the sixday strike.

Lobbying in Delhi Once the pilots braced themselves for the long haul and decided that they had no option but to go on strike, Jet Airways Chairman Naresh Goyal did what he is best at: move to Delhi to lobby with the powers that be.

And, here is what happened when he met them: Praful Patel: Why are you coming for my help now, did you consult me before announcing your unilateral August 18 one day strike?

Sorry, it is not possible to ask for ESMA (Essential Services Maintenance Act) against the pilots.

Pranab Mukherjee: Apply ESMA in the private sector? Out of the question.

P Chidambaram: Good, you have met Gopal (Home Secretary Gopal Pillai) and briefed him. That should be enough.

Photo: H.C. Tiwari

T K A Nair: It isn’t advisable to call pilots terrorists. After all, they are fellow-Indians.

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Praful Patel

CRUISING HEIGHTS October 2009

Sharad Pawar: With so many problems in the aviation

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industry, it doesn’t make any sense to have a face-off with the pilots.

Mallikarjun Kharge: You must listen to the employees. After all, they have a right to form a union. That is a right guaranteed by the Constitution. How can you stop that?

When Goyal found that his fabled lobbying skills were not getting him anywhere — no one was willing to either invoke ESMA, nor was the government ready to issue a diktat in his favour — he did the next best thing. He pulled his Executive Director Saroj Dutta out of the TV studios into the negotiating room with the angry pilots. Finally, after three days of non-stop give and take, the pilots were reinstated, the NAG wasn’t dissolved and everyone went back to work.

One of the fallouts of the PR disaster that the strike saw, was the reinstatement of Adfactors. Jet has asked the agency to look after its media needs out of Mumbai. This, of course, does not detract from the work of the excellent PR personnel that Jet has in both Mumbai and Delhi. It is just that the issue was overwhelming and really getting murkier by the hour.

Mallikarjun Kharge with Naresh Goyal

P Chidambaram

Pranab Mukherjee

Curses the others But more that anyone else, it is the other airlines that finally stymied any ambitions that Naresh Goyal may have had of besting the pilots.

When the other private carriers hiked their prices by almost 60 to

Sharad Pawar

T K A Nair

CRUISING HEIGHTS October 2009

100 per cent in most sectors, the writing on the wall was clear: the strike had to end.

No one, really appreciated the demand and supply logic of the private airlines that, swiftly decided to make hay while the sun was shining on them. Excepting Air India, everybody upped their rate and the consequence was that they helped bring the strike to a swift end. No wonder, in his thank you statement to the people of India, Naresh Goyal thanked the government and Air India, but didn’t have a word for his other compatriots in the Federation of Indian Aviation who were all set to strike with him on August 18.

It’s a dog-eat-dog world, Goyal Saab! You should know, it better than the others.

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NEWS DIGEST

Photo Courtesy: www.fraport.com

Aviation sorrows and ‘Indian’ sorrow!

T

he sorrows of Indian aviation industry as elsewhere in the globe continues. According to the latest figures released by the DGCA for the first eight months (January-August 2009), the number of passengers carried by domestic airlines was 284.23 lakh about 1.83 per cent lower than 289.52 lakh passengers carried during January-August 2008. During the month of August ’09 alone, the number of passengers carried by domestic carriers was 29.22 lakh as against 36.76 lakh carried during August ’08.

It may be of interest to note here that jet fuel prices were much higher in August ’08 when it had just begun to fall, though the real fall did not begin seriously till September ’08.

Correspondingly, the fares were also higher as compared to what they are today. So, what happened to the travelloving middle class Indians. Not even the famous Naresh Goyal and Vijay Mallya know, as is evident from their mounting losses. We are not mentioning Air India because it has become customary for it to make losses. So, who is making money.

Obviously, the LCCs IndiGo andSpiceJet. This is evident from the rising market share of LCCs. From full 100 per cent monopoly about 17 years ago, when the private carriers were yet to come on board, the then state-owned domestic carrier Indian Airlines is today a pathetic patch of what it was. The situation has worsened, especially in the last two years after it merged with its foreign-going

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Maharaja cousin, Air India, and under whose name it has also got subsumed.

This is not to suggest that just because it merged, it is losing. This is only to suggest, even if united they are destined to fall as statistics show. This is also true of Jet Airways, which before the entry of Mallya/LCCs, had managed to corner 45 per cent domestic market share. Today, it has also fallen notwithstanding the excess baggage it acquired when it took over Air Sahara and renamed it JetLite.

Should we look at this whole situation slightly differently, then the picture will hit right in the eye of any discerning person. According to NACIL’s own website, NACIL(I) as it describes its domestic flying arm, Indian has 91 aircraft. It operates 54 domestic destinations and 18 international destinations in 15 countries. NACIL(I) had as on August 20, 2009 (the date it hosted on its website, a new tender inviting bids for providing software for its proposed MROs), 43 Airbus A320 aircraft comprising 30 owned and 13 leased aircraft, six Boeing 737-200s, 17 A319s comprising 12 owned and five leased, 12 A321s all owned, two leased A330s, four leased CRJs and seven leased ATRs. It is to receive 19 more Airbus A320 family aircraft as part of its acquisition plan of 43 Airbus aircraft.

These 19 will join in less than two years.

Indian or NACIL(I) operates 300 flights per day comprising approximately 500 departures daily.

Nearly, 18 per cent of sector flights CRUISING HEIGHTS October 2009

operate on international sectors.

The beauty of NACIL(I) is that all its aircraft are inter-operable, that is within the domestic sector should it want. This is not possible in the case of the widebody aircraft with its foreign-going cousin NACIL(A) of Air India or the widebodies with Jet and Kingfisher. So, when we superimpose this figure of NACIL(I) on the domestic sector, it is very shocking that it has managed to garner a market share of only 16.6 per cent. Even, if we should allow for its international operations which are largely domestic leg dominated, then it is really an even more scary story than Air India and a complete failure of its marketing and sales.

Look at Jet Airways, Jet Konnect and JetLite, Kingfisher including Kingfisher Red (erstwhile Air Deccan). Notwithstanding the losses, these two full service carriers have been able to tweak their fleet and aircraft configurations quicker to respond to market demands and largely increased their LCC offerings. However, Indian is still in the clouds not knowing what to do. The world was informed by its management that by September 2009, Air India would launch its LCC by transferring at least 10 of its A320s with uniform class — that is all-economy.

At a time when the Finance Minister Pranab Mukherjee, External Affairs Minister S M Krishna, Agriculture Minister Sharad Pawar and even UPA Chairperson Sonia Gandhi have taken to economy class, Indian is still fiddling

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Photo Courtesy: www.indianexpress.com

NEWS DIGEST with the reconfiguration of LCCs, IndiGo and Spice, its seating in A320. We may the impact on Indian has like to state here that in been even more these very columns in our devastating. With just 19 previous issues, we had aircraft, each IndiGo with stated how quickly Jet its A320 carrying 185 Airways reconfigured at passengers and SpiceJet least 12 of its Boeing 737with Boeing 737-800 also 800s to all-economy class carrying nearly 185 seating arrangement and passengers, were growing began flying them under Jet at super speed and Konnect as a new LCC clocking seat factors of offering. One could forgive 79.2 per cent and 73 per Pranab Mukherjee Indian if it had its top cent each in August 2009 quality offering business class. However, as against 70 per cent for Jet, 68.7 per this is not true as one had to compare its cent for Kingfisher. quality with that offered by the full Look at NACIL(I) or Indian: its seat service offering of Jet Airways and factor for August 2009 was only 59.8 per Kingfisher. cent (slightly better than 58.3 per cent it During August 2009, the market share registered in July 2009). If an IndiGo or of Jet Airways including JetLite was 26.4 SpiceJet managed a market share of 13.9 per cent, Kingfisher 22.6 per cent, IndiGo per cent and 12.3 per cent with only 19 13.9 per cent, SpiceJet 12.3 per cent, aircraft each in their fleet, how come Indian managed a seat factor of only 16.6 per cent with 91 aircraft and even if we make a provision of 18 per cent of this fleet being allotted to overseas flight operations even then with nearly 70 aircraft Indian failed miserably? During August 2009, Jet and JetLite combined carried 9.59 lakh passengers, Kingfisher 8.2 lakh, NACIL(I) 6.04 lakh, IndiGo 5.05 lakh, SpiceJet Shashi Tharoor (right) travelling “cattle class”.

4.47 lakh, GoAir 2.07 lakh and Paramount 74,000.

GoAir 5.7 per cent and Paramount 2 per DGCA statistics for August 2009 cent. The point to note here is that while it shows some more interesting is true that both Goyal and Mallya’s information. Compared to overall airlines are being hit by fast-growing cancellation of scheduled domestic

airlines of only 2.2 per cent in August 2009, the cancellation figures for JetLite was 4.8 per cent, Jet Airways was 3.9 per cent, IndiGo 2.1 per cent, Kingfisher 2 per cent and SpiceJet 1.1 per cent.

However, NACIL(I) or Indian had the lowest cancellation of only 0.7 per cent.

When compared to on-time perfor-mance, most airlines had done better than Indian which was at 81.5 per cent — slightly above Spice 81.3 per cent, JetLite 78.9 per cent and MDLR 75 per cent.

So, what is fundamentally wrong with domestic operations of NACIL(I) or Indian? It is not that Air India is better off but it is a different story. So coming back to Indian, despite much lower cancellation why are not passengers flocking to Indian?

We may recall here the statement made

by Air India CMD Arvind Jadhav at his first formal conference held S M Krishna in Delhi on August 7, 2009 where he said the mission of the entire airline over the next six months would be to ensure top priority to on time performance. What we want to know is that even if we take July ‘09 figures as stated above, on-time performance, though a very important magnet to attract passengers, cannot work in isolation. The Air India management must look at the big picture to decide if it should now voluntarily vacate the domestic space to other competing private carriers and take its own time to launch the sarkari version of LCC to woo back passengers who have been deserting Indian for many reasons.

What’s your OTP ?

T

here is yet another important sidelight given by the DGCA in its release on traffic statistics for August 2009. It said, though 70 foreign carriers are operating to and from India, information about 38 carriers’ on time performance had been compiled as per which OTP (on time performance) departure of Qantas was 100 per cent followed by Air Asia at 96.8 per cent, Swiss at 95.7 per cent, and Air France 94.6 per cent. As for OTP arrivals, Qantas topped with 100 per cent again, All Nippon 100 per cent, Air Asia 96.8

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per cent, Swiss 95.7 per cent.

We don’t know if the big foreign players in the Indian sub-continent like Emirates, Lufthansa, British Airways, Singapore, etc. were part of the 34 airlines whose statistics have been quoted above or not. But it would have made very interesting reading had DGCA given figures of Air India, Jet and Kingfisher’s overseas operations.

During the last five years, there has been a tremendous increase in air

CRUISING HEIGHTS October 2009

A Qantas A380 at Sydney airport

traffic into and out of India.

When UPA government and Praful Patel batted in their first innings, the

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percentage growth of aircraft movements, passenger traffic and freight traffic (both domestic and international) was as follows: Beginning 2004-05, the number of aircraft movement rose by 11.88 per cent, passenger traffic by 21. 53 per cent and freight by 19.67 per cent. In 2005-06, aircraft movement rose by 16.80 per cent, passengers by 23.71 per cent and freight by 9.29 per cent; in 2006-07, the figures were 28.60 per cent, 31.40 per cent and 11 per cent respectively; in 2007-08, the aircraft movement rose by 21.30 per cent,

Qantas Airlines

All Nippon Airways

passengers by 21.20 per cent and freight by 10.60 per cent respectively.

After the economic meltdown and sharp rise in fuel prices from the second quarter of 2008, the year 200809 witnessed the aircraft movement falling by -00.10 per cent, passenger movement fell by -06.80 and freight by -01.00, respectively. According to IATA, it may take a few years before the freight traffic begins to touch the levels it attained in 2007 globally with India being no exception. The same may be true of passenger movement as well as aircraft movement.

However, we feel that this will also be largely true in the case of India’s domestic aviation which attained great heights when the GDP on an average grew by nearly 9 per cent for the four years ending mid 2008. Now it is growing in the region of only 6 or slightly over 6 and sometimes even at 5.8 per cent. The impact of this has already been seen in terms of near full stop on new fleet expansion, new routes, cancellation of orders, disappearance of passengers even at lower fares! In the summer of

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2004, foreign airlines operated 711 services per week to and from India which was increased to 1315 services per week by the summer of 2009.

The increase was around 85 per cent over five years. Correspondingly, the number of passengers rose from around 14 million to 27 million to and from India in that five year period. The increase is around 90 per cent or one per cent increase in services bringing about slightly more than one per cent increase in passenger movement. Civil Aviation Minister informed the Lok Sabha early

Air Asia

August 2009 that traffic rights for operation of international air services are specified in bilateral air services agreement concluded with the various foreign countries and is part of an ongoing process, depending on traffic demand, balance of benefit to Indian carriers, overall interest of Indian economy together with diplomatic and political considerations.

‘These agreements are based on principles of sovereignty or nation and reciprocity in which a balance of opportunities and benefits are paramount’. The Minister of Civil Aviation while stating that liberalisation of international services is an ongoing process, which benefited the national economy as a whole giving a boost to the tourism and commercial sectors, it also addressed the need of the large NRI population working overseas. Also, he said, liberal exchange traffic rights helped in adding capacity on international routes for benefit of travelling public and also opening up commercial opportunities for Indian carriers. This statement is no exaggeration of the need to open up

CRUISING HEIGHTS October 2009

Indian skies to foreign carriers. Since it is a two-way process, carriers from within and outside India will benefit and the two together will jointly benefit the travel hungry Indians whether resident or non-resident.

To any supporter of a strong brand Air India this may seem to be a betrayal.

But is it also not true that while opening up India to foreign carriers, not just Air India but other private Indian carriers also got access to many more points abroad. It is a different matter that not just Air India but even the likes of Jet

Swiss

and Kingfisher have been made to eat dust notwithstanding their, undoubtedly superior product offering. The desperation is showing. After Jet entered into code-share/tie-ups with leading foreign carrier and also Kingfisher in a limited way, Air India which has been struggling seriously to mend its own house in order to enter Star Alliance, has finally seen light and got into a frequent flier arrangement with Singapore Airlines.

We do not know if it is a sweetner, SIA has offered so that Air India agrees to go ahead with its stalled tie-up for ground handling with SATS in India.

Whatever be the case, Air India seems to be waking up well after the sun rose and perhaps set. But, in comparison to Indian’s domestic performance, Air India’s international performance seemed better in terms of market share of passengers carried. Air India clocked an market share of 23.74 per cent in the financial year 2008-09 (peak period of global recession) followed by Emirates with 9.75 per cent, Jet Airways 9.06 per cent, Air Arabia 3.97 per cent and Lufthansa 3.97 per cent, respectively.

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It’s the Haj season

W

ith Haj season approaching, the time has come for review of who will fly these pilgrims.

All these years, it was a virtual monopoly of Air India with support from Saudi Arabian Airlines (SAA). This year 2009-10, there is a possibility that Air India may have to share its business with other

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Indian carriers even though the Maharaja is doing its best to retain this subsidy driven business which certainly gets good money which is hard to come by when passengers have otherwise disappeared.

NACIL ferried 64,247 pilgrims from different embarkation points in India for Haj 2008, as compared to 49,327 and 51,083 pilgrims in for Haj 2006 and 2007, respectively. SAA ferried 57,448 pilgrims from different embarkation points in India for Haj 2008 as compared to 59,191 and 58,917 pilgrims for Haj 2006 and Haj 2007, respectively. NACIL operated 278 flights for Haj 2008 as compared to 167 plus scheduled flights and 162 plus scheduled flights for the previous two years.

SAA operated 198

CRUISING HEIGHTS October 2009

flights for Haj 2008 as compared to 221 flights and 149 flights for the previous two years respectively. Each Haj pilgrim paid Rs 12,000 towards airfare for Haj 2008 and the same amount was paid for Haj 2006 and Haj 2007. The balance amount of airfare (subsidy) for each pilgrim was paid by the government for Haj 2008 was Rs 60,932 (subject to audit) as compared to Rs 35,495 and Rs 35,838 for Haj 2006 and 2007, respectively.

These figures were disclosed by Civil Aviation Minister Praful Patel in Parliament during August 2008. ( The increase in subsidy was not just because of increase in number of passengers but also rise in jet fuel prices globally). Overall, 1,21,695 Haj pilgrims travelled on subsidised air fare during Haj 2008 as compared to 108,518 and 1,10,000 Haj pilgrims in Haj 2006 and Haj 2007, respectively. The total amount of subsidy provided by the government for Haj 2008 was Rs 741.47 crore (subject to audit) as compared to Rs 385.14 crore and Rs 394.18 crore for Haj 2006 and Haj 2007.

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agreement with Air Livery Plc of UK for aircraft re-painting facility. The DGCA approval covers Air Works facility to offer Maintenance/Repair and Overhaul facility for ATR 42-500, ATR 72-500 upto four C/4 yearly inspection in the first phase and Boeing 737 series fitted with CFM 56-7 engines upto 18000 FE/14400 FH/ eight yearly inspection.

The Hosur MRO facility is situated in its airport, which is at an elevation of 3050 feet and currently has VFR 9 (landing lights are under installation), a run-

The proposed Air Works engine MRO services will initially cater to IAE V 2500 series, CFM 56 series, PW 120 and 127.

These facilities are likely to come up by mid-2011. Speaking to CRUISING HEIGHTS, Air Works Chief Ravi Menon said: “We are the first third party MRO and we are in talks with Jet and Kingfisher. Asked how many MROs will survive, he said perhaps three to four may survive as everything in a MRO depends on cost efficiency. If the MRO is located in a SEZ, then it gets certain tax exemption, crucially the service

Air Works saga

Engineers at work in Air Works MRO workshop

Photo Courtesy: www.airworks.in

ir Works — the first privately owned third party MRO in India — jointly owned by Punj-Lloyd, US based venture capital Global Technology Investment and Menon family, set up its MRO facility in December 2008 at Hosur (in Tamil Nadu) which is just about 40 km from Bengaluru.

Air Works has already signed up Kingfisher Airlines to handle the all the MRO requirements of its ATF fleet. As per a contract, it has signed with Kingfisher, Air works will carry out ‘C’ checks on ATR 72s of Kingfisher at its Hosur facility.

Air Works expects to service at least 28 aircraft in its first year of operation and with Indian carriers operating 340 aircraft in the domestic skies with 50 of them being ATRs, the new MRO is confident of making a good business.

Air Works was originally established in Mumbai way back in 1951 and still, has its facility at Mumbai airport. But like Air India, even Air Works has been asked to vacate the space by MIAL for its expansion project. Air Works has also claimed grand father’s right to exist at the airport, unlike Air India which is planning to sign a MoU with MIAL to come to a new arrangement. Mumbai airport was earlier, owned by AAI which has now handed it over to GVK, which as per the new OMDA signed, is seeking to requisition all this space for airport expansion.

Unlike Air India, which is yet to come up with any alternative plan, and also notwithstanding the offer from GVK that it will get its vacated space back which houses the hangar, the engine overhaul shop, etc in a renovated manner, Air Works entered into an agreement with Taneja Aerospace which had held this huge piece of airport like land at Hosur historically. The facility, currently has DGCA approval under CAR 145 for maintenance of ATR 42-500 and ATR 72500 besides Boeing 737-600/700/800/ 900. The service offerings include airframe maintenance, structural modifications, avionics upgrade and a paint shop.

The infrastructure is 24,500 square feet of hangar space capable of accommodating two lines of ATR or one line of narrow body aircraft like the Boeing 737. The Hosur based MRO has 13,000 feet of office space. Air Works has signed a JV

way 09/27 which is 7000 feet and 150 feet wide and currently, equipped with PAPI, DME and VOR. Air Works runway is awaiting CAT 3C certification from DGCA. Air Works MRO has also completed EASA approval requirements and European Aero Space Agency (EASA) team there is likely to complete the certification process soon. The MRO has under construction — four fully equipped Hangars including the dedicated paint hangar.

Besides specific airframe, heavy maintenance services are progressively being built for engine change and QEC build up facility including APU, landing gear replacement facility, any special requirement for end of lease inspections, Avionics upgrade facility, fuel tank leak detection and repair capability, pressure testing facility for hydraulic components and propeller balancing facility. The new MRO is also working to offer engine care solutions under Engine Maintenance Repair and Overhaul. It is also talking to prospective partners for providing in the near future facilities for repairing engine parts such as rotors, stators, combustors and engine casings.

CRUISING HEIGHTS October 2009

tax which is otherwise 10.3 per cent today and user/client has to pay. However, the high duties remain.”

Menon also said: “Air Works will win on costing as our manpower rates are very competitive compared to Air India or Indian. Instead of 20 persons, we will do the job with ten with much higher productivity and obviously, better pay. At the Mumbai facility, we have 227 persons working while at Hosur, as of now we have 63 persons. This will rise when more MRO facilities get set up. This MRO is located at the land of Taneja Aerospace who are making microlight aircraft. Their facility is spread over 180 acres in Hosur and our runway would soon be able to receive even a Boeing 777. As on date, we have been certified by DGCA for handling B 737 NGs and next year that is 2010, we will have permission to handle A 320s as well. EASA is done its audit. At our Mumbai MRO, we did C check on Jet Airways aircraft way back in 1994. Right now, we are adopting to two different cultural approaches as we do MRO for both airline and general aviation but as separate business units. We are trying to talk to Air India Express which has been sending its Boeing 737-800s to China for MRO work. Why should they do it when we can do it? The Hosur MRO of Air Works will involve a total investment of US $40 million.”

Now, what do you say to that?

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NEWS DIGEST FLYING RETURNS BA goes with LFW British Airways has launched its latest TV campaign in the UK with one of its nine 30second adverts being filmed in India.The new campaign’s concept, ‘Opportunity doesn’t always live on your doorstep’ seeks to encourage people to get out into the world and seize every opportunity, for business or pleasure. The 30-second advert is created

by BA’s retained advertising agency, BBH, and shot in a documentary style. It features Mumbai’s Lakme Fashion Week with a backdrop of the city’s fabric and pulse. Judy Jarvis, British Airways’ Regional Commercial Manager — South Asia, said: “Our decision to use Lakme Fashion Week as one of the themes for our latest TV advert, reinforces our commitment to India.”

Jet Airways plus Pantaloons

INFRASTRUCTURE NEWS

A first for an Indian frequent flyer programme and leading national fashion retail chain, the Jet Airways’ Jet Privilege, frequent flyer programme has entered into a retail partnership with Pantaloons effective this September.

It is the very first partnership of its kind in India — between an airlines frequent flyer programme and a national fashion retail chain. The move will enable Jet Privilege members to double dip i.e., enjoy benefits of two programmes, Jet Privilege and Pantaloons Green Card. Jet Privilege members will be able to earn JP Miles and enjoy attractive discounts for shopping at Pantaloons.

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Nitish’s initiatives in aviation

B

ihar Chief Minister Nitish Kumar is keen to develop and modernise the existing airport facilities in the state. Well aware of the revenue-generating potential of the state from domestic and foreign tourists, the CM probably knows that it can only happen when there are good aviation facilities in the state.

In Bihar, there are two major airports Gaya International Airport and the Patna airport — that attract large number of visitors. The Gaya airport attracts Buddhist tourists from Japan, Sri Lanka and several other countries because it is the closest airbase to adjoining Bodh Gaya. Gaya itself, attracts a good number of NRI Hindu pilgrims and others from within the country every year, who come to the city to perform pind-dan at the world famous Vishnupad temple in the city. Due to these religious and cultural centres at Gaya, Nalanda and Rajgir, the revenue earning from tourism has multiplied manifold in recent years.

In a recently held meeting between the Chief Minister Nitish Kumar and AAI chairman V P Agrawal, the former reportedly expressed his willingness to extend all possible cooperation in modernising aviation facilities in the state.

Following this meeting, the Bihar government is, reportedly committed to

MIAL’S CAMERAS TO CHECK H1N1

M u m b a i International Airport Pvt Ltd (MIAL), in its ongoing and continuous efforts to contain the spread of swine flu, has deployed four thermal cameras for The new camera to detect H1N1 at CSIA screening of arriving passengers at the international terminal at the Chhatrapati Shivaji International Airport (CSIA) in Mumbai.

These cameras, handed over to government doctors, conducting the screening process, are mounted on a tripod, each connected to a 32 inch LCD screen.

On detecting a person with a body temperature above normal, the camera gives a beeping alarm, and captures the image, which is flashed onto the screen.

hand over 100 acres of land, which it is in the process of acquisition, to the Airports Authority of India (AAI) for extension of the international airport at Gaya. Operating international flights would be possible once the Gaya Airport’s runway is extended to 9,000 feet. Also, regular Haj flights may be introduced from Gaya after the runway extension is done.

Chief Minister Nitish Kumar

The extension of the Jayaprakash Narayan International Airport at Patna is a bit problematic owing largely to the adjacent railway line and the Sanjay Gandhi Biological Park. Its existing runway length is merely 5,500 feet as against the 9,000 feet required for operating international flights. To overcome this issue, the state government is, reportedly planning to approach the Defence Ministry to develop the IAF air-

HP EYES HELI-TAXI SERVICES

When you have a range of mountains as in Himachal, the best way to get access to the far flung areas is through helicopter services.

Having tested tourists needs for helicopter services in providing easy and faster access to scenic and remote valleys, including high altitude ones, the tourism department is in the process of finalising contracting out helitaxi services to private operators for attracting high-end tourists.

The technical bids for the service had been opened and four operators had been shortlisted. Among the companies shortlisted, are state owned operator Pawan Hans, a private operator from Chandigarh and another from Mumbai.

MYSORE AIRPORT READY

Mysore will soon be on the air map. The link to the City of

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NEWS DIGEST FLYING RETURNS Mukesh’s helipad takes-off The Maharashtra Coastal Zone Management Authority (MCZMA) has cleared the decks for a helipad atop Seawind, the Ambani residence at Cuffe Parade. The Mukesh Ambani-led Reliance Industries Limited proposed a helipad atop Seawind and sought permission from the government. Around the same time, many other industrialists and builders also approached the government seeking permissions for their helipads. The state government changed the DC regulations last year to permit helipads atop buildings. This cleared the way for RIL’s helipad plan.

Da Milano opens at Mumbai airport Da Milano, the premium brand of leather accessories opened its first exclusive store at the Mumbai domestic airport at terminal 1B. The store spread over an area of 200 square feet houses Da Milano’s range of premium leather accessories for both men and women.

At present, this new outlet has an impeccable collection of ladies handbags, men’s bags, briefcases, portfolio and computer bags, wallets, belts, small accessories and luggage. As part of its retail expansion plans, Da Milano is targeting retailing at key airports across India. This would include both duty free shops at international airports as well as domestic airport retail spaces.

PATNA AIRPORT: No space for growth.

base at Bihta into a civil enclave on 300 to 500 acres of land. The Bihta air base has a 8,200 feet runway which can be extended up to 9,000 feet.

Under the leadership of Nitish Kumar, the state government is keen to develop aviation facilities in other parts of the state as well. Altogether, there are 29 airports, aerodromes and airstrips in Bihar. Of them, 18 are under the state government, five under the Defence Ministry and the rest five under the AAI. There is also a private aerodrome at Kursela. According to reliable sources, there was a proposal for an airport in Bhagalpur which has been shelved due to congested inhabitation. The state government is also reported to have asked the AAI to develop its Raxaul, Muzaffarpur and Jogbani airports which were abandoned for commercial operation.

Palaces will soon become operational with the first phase of work completed at Mandkali Airport. While the operation of commercial flights might take time, as the finishing work tends to get stretched. Non scheduled chartered flights make regular visits and scores of such flights have taken off and landed here in the last couple of weeks.

NO SHOPPING IN SKIES

he DGCA has said no to shopping in the skies. Domestic flyers will have to wait for some time before they can buy gifts items like aircraft models, pens or watches while flying to their destinations. The Directorate General of Civil Aviation (DGCA) has for “safety reasons” asked domestic airlines to stop onboard merchandise sales with immediate effect. This order does not cover food and non-alcoholic drinks and their sale will continue as usual. Low cost carriers are up in arms against this order. They point out that while safety duties of cabin crew are common to both LCCs and full service carriers, their crew just sells food, drinks and merchandise. “On the other hand, cabin crew of full service carriers will first give a cold or hot towel and soft drinks to passengers immediately on boarding. After takeoff too, some snacks may be given before the main course. Some domestic

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The AAI is willing to take up the Raxaul and Muzaffarpur airports gradually after additional land was acquired. There is also a new proposal of developing a fresh airport at Punpun near Patna.

It’s not that these infrastructural facilities in the state were not available earlier but the credit for recognising the potential must go to the present Chief Minister. Nitish Kumar ought to be congratulated for his farsightedness, vision and courage to take bold steps to develop international aviation facilities in Bihar to enable the state to attract foreign capital for the development of the state which, thus far has remained backward. The wily Chief Minister has, tactfully used the traditional tourist potential to enhance the state’s revenues.

airlines even have the crew brew fresh coffee on aircraft. So it's wrong to say that merchandise sale eats the cabin crew's time for safety duties,” said a top official of an LCC. DGCA Chief Nasim Zaidi has clarified: “Onboard sale has not been banned. We just want the correct procedures to be in place for this. A meeting has been called on Friday and the safety rules for this will be in place very soon. Then domestic airlines can have onboard merchandise sale on their flights,” Zaidi said.

BIAL EXTENDS CONTRACT WITH NORTEL

Bangalore International Airport Ltd (BIAL) has extended its endto-end managed services contract with Nortel for three more years. Nortel will manage BIAL’s entire IT infrastructure, which includes data and wireless network systems, and will oversee network security.

Bangalore International Airport This network will be managed remotely through Nortel’s Network Operations Center (NOC) in India, which will continue to ensure the high level of reliability and dependability the airport

CRUISING HEIGHTS October 2009

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A former Mumbaikar in Mumbai

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s we reported in the last issue of Cruising Heights, the Airport Economic Regulatory Authority Chairman Yashwant Bhave had begun his job with gusto. The body that the retired IAS officer heads is a watchdog body which will go into issues like tariff for various ground operations and landing fees for airlines.

To understand the civil aviation business — as it is conducted in the country — he started visiting the international airports.

Bhave began his 'Bharat darshan’ by visiting the Indira Gandhi International

This is the way Mumbai airport is run: Sanjay Reddy shows AERA chief Yashwant Bhave photos and diagrams of the development taking place

the modernization process.

We also reported that the AERA chief had plans to take trips to the other major airports and that included MIAL Managing Director Sanjay Reddy takes AERA chief Yashwant Bhave around Mumbai airport. G V K Reddy (between Sanjay Reddy Chennai, Bangalore, and Bhave) and AERA Secretary Sandeep Prakash (extreme right) can Hyderabad and Mumbai.

At be seen in the photo all the airports, Bhave made it Airport (IGIA) at Delhi to get an insight into a point to see everything he could. not only the functioning of the airport but Additionally, he also listened to what the airalso the numerous problems that its promot- port officials had to tell him. Unlike most ers — GMR — have been facing as a part of other IAS officials, the AERA chief has requires. BIAL leases the data and voice network to its various tenants, including airlines, restaurants, cargo handlers and other groups which manage their own, round-the-clock operational applications. All passenger-centric critical business applications such as baggage handling and tracking, ticketing, passenger handling and free WiFi Internet connectivity at BIAL, run on Nortel’s communication infrastructure.

ADAG: 5 AIRPORTS FOR RS 63 CRORE

The Anil Ambani led Reliance Airport Developers Ltd has picked up five airports in rural Maharashtra on a 95-year lease for a total of only Rs 63 crore from the Maharashtra Industrial Development Corporation. MIDC has passed the proposal and recommended to the state that Yavatmal, Nanded, Latur, Osmanabad and Baramati airports be leased.

MIDC officials said they could have got a higher price in a better economy, but added that the government was satisfied with the price it was getting.

CHOPPER FOR SIKKIM TOURIST SPOTS

With a view to cater to high-end tourists, Sikkim government has decided to launch commercial chopper services to five most

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shown a keenness to learn and understand civil aviation. Incidentally, his trip to Mumbai was like going back home since the bureaucrat held different positions in the government of Maharashtra: he was the chief executive of Maharashtra Industrial Development Corporation and managing director of Small Scale Industries Development Corporation.

Well, we are certain that the trip was an educational one and if the photos are any indication, indeed it was!

frequented destinations in the state, a tourism official said. Helipads would be constructed at Rangpo, Mangan, Hiley, Uttarey and Chemchey and Bagdogra with Pawan Hans, operating Enchey Monastery in Sikkim. its chopper on daily basis between three to six times. The Sikkim Tourism Development Corporation (STDC) has already hired a fiveseater Pawan Hans helicopter to provide air service between Gangtok and Bagdogra.

AIRNETZ INTO AIRPORT DEVELOPMENT

Aviation services provider, Airnetz Aviation, plans to raise around Rs 250 crore to invest in the development of alternative and rural airports in the country. The company has announced its foray into the airport infrastructure development space in India and said its investment will undertake projects on buildoperate-transfer model. The development of alternative and rural airports will help to decongest India’s metro airports in

CRUISING HEIGHTS October 2009

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DIAL gets an appreciative visitor

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t first glance, the International Civil Aviation Organization (ICAO) President Roberto Kobeh Gonzalez could very well be mistaken for a distinguished professor or even a successful businessman. He has a touch of both.

An optimist, he made it clear during his recent visit to Delhi that the aviation industry which was affected by the global economic slowdown would recover in two years' time. It was in keeping with what he told Cruising Heights (see Cover Story — I) and at other fora: “ICAO”, he has often said, “has formulated a medium-term forecast which points to an industry recovery by 2010.” Many airlines had taken steps to counter the rapid increase in oil prices, such as retiring older, less

Roberto Kobeh Gonzalez with DIAL MD Kiran Kumar Grandhi and others taking a look at the construction work of the new terminal.

energy efficient aircraft, abandoning nonproductive routes, reducing the workforce and contemplating mergers, he mentioned.

He also pointed out that the industry would face the shortage of a highly skilled workforce in the next few years.

While at Delhi, the ICAO chief found

Mumbai, Chennai and New Delhi, Airnetz said in a press release. “There are over 300 airports in India with paved runways and only about 30 of them are utilised for commercial operations...There is a huge need for alternative airfields in these cities,” the release added. The investment will be largely focused on the development of already existing airstrips and new airports in the radius of 200-250 kilometers from congested metro cities, the release said. The company has entered into an agreement to develop a private airstrip in Navi Mumbai to provide an alternative airport to passengers travelling between Mumbai and Pune, it added.

dled nearly 1.12 lakh passengers. In view of growing traffic, sometimes aircrafts have to remain in mid-air for a long time due to lack of parking space.

Increased passengers in Guwahati Airport the airport are, apparently due to its proper connectivity. The airport is now connected to all major locations in the country, probably due to which more and more people opt to fly from LGBI.

LGBI AIRPORT 6TH BUSIEST IN COUNTRY

Guwahati’s Lokapriya Gopinath Bardoloi International Airport is now one of the sixth busiest airports in the country in terms of passenger volume. The airport accommodates about 84 scheduled movements daily. The figure, of course, shoots up sometimes depending on the flow of passengers. All the major private airliners have already expanded their wings to the airport to harness the North East market. The airport handles nearly 8,000 passengers daily. But, in the peak season, the figure goes up to over 10,000. In the month of April 2009, it alone han-

26

time to visit the Delhi airport. As always, the President showed his keenness to get into the nitty-gritty of the airline industry in the country. ICAO is in the process of putting in place the world’s first attempt to win global acknowledgement of the need for universal standards in air traffic services.

Gonzalez’s visit to Delhi airport, perhaps, provided him the opportunity to take a look at the present standards and metrics being followed by India. After all, his team had given its thumbs up to the new runway at the IGI Airport and had even recommended that the lessons learnt from completion of the project should be shared with other countries. This was the ICAO chief's way of saying that he was interested in what Delhi airport had achieved.

DIAL MAY HIKE USAGE FEE

The global financial crisis could well end up raising airport usage charges at Delhi. Even as the GMR-promoted Delhi International Airport (DIAL) races to complete a brand new airport before the scheduled deadline that expires seven months from now, a clutch of foreign and domestic banks that had agreed in December 2007 to finance DIAL’s external commercial borrowing of $350 million, are now baulking at the agreed rate of 185 basis points over the London Inter-Bank offered rate (Libor). While DIAL is exploring alternative options, it is

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In the midst of the great Indian Thar facing the fortress of Jaisalmer lies the magnificent Fort Rajwada, created in tune with the ancient vedic science of “Vaastu”, set amidst gardens in a six acre area. Original balconies as old as 450 years with intricate carvings adorne the walls of its grand lobby where tradition and modernity blend seamlessly.

The 98 well appointed rooms reflect the luxury of a bygone era complimented by the most modern amenities whose interiors are designed by the well-known opera set designer Ms Stephnie Engeln and is home to celebrities from the world over . Its unmatched serenity coupled with traditional Rajasthani hospitality of “Padharo Mahre Desh” transports one to the era of Rajwada ThakursMajestic, Royal and Elegant. The royal experience continues at the wellstacked Paatu Bar and for the gourmets the fine dining experience at the multicuisine Sonal and Fort View.

The open-air restaurant. Roopal, the 24 hour coffee shop offers a variety of snacks and minimeals. The business heads could come together at the 300-seater conference hall and for smaller groups there is a mini conference hall seating sixty supported by a business center. For relaxation there is the crystal clear pool and a well-set billiards lounge.

FORT RAJWADA No. 1, Hotel Complex, Jodhpur-Barmer Link Road, Jaisalmer (Rajasthan)-345001 Tel.:91-2992-253233, 253533, 254608, 254609, 254862, 254863, Fax.:91-2992-253733 Direct Reservation Jaipur Office: 09828149555, Telefax: 0141-2786835, Jaisalmer Office: 02992-255433/255633 Delhi Office: 91-124-4223360/61, Fax: 91-124-4223363, Mumbai Office: 91-22-40032924 Email: sales@rajwadafort.com, sales@fortrajwada.com, reservations@fortrajwada.com, delhi@fortrajwada.com www.fortrajwada.com

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NEWS DIGEST

Turbulence, synergy and other issues at Jet-Kingfisher

Photo Courtesy: Businesswireindia.com

T

here is a gale force that the Kingfisher brand has acquired. Alas! that isn’t coming from Force India, rather it is the shock and awe of the large scale desertions at the top of Kingfisher Airlines. The latest to quit was the airline’s Vice-President for global sales, Siva Ramachandran.

That he decided to put in his papers just days before the King of Good Times, was to start flights to new destinations in South-East Asia shows how serious and endemic is the issue. “There is simply no light at the end of the tunnel. We are groping from one disaster to another and no one seems to care,” said one senior official. Ramachandran is the fourth senior official to quit this year.

Others, who have packed their bags include Vikram Malhotra, VicePresident of marketing, was also overseeing much of the Royal Challengers branding and marketing in early August. In June, Ramki Sundaram who came over to Kingfisher after handholding the Deccan acquisition quit along with D D Gandhi, VicePresident of domestic and international operations.

If that was not enough, the airline

Siva Ramachandran

unlikely to get a rate lower than 300 basis points over Libor, raising its cost of capital. Since the airport tariffs are to be fixed taking into account the weighted average cost of capital, a rise in tariffs is on the cards. DIAL has increased the project cost by Rs 1,250 crore to Rs 10,225 crore from original projection of Rs 8,975 crore, which is funded through equity contribution by all the existing shareholders including Airport Authority of India (AAI) on pro-rata basis.

NEW AIRPORT ON JAIPUR HIGHWAY

It’s a project that promises to change the fortune of this desert state. Talks are at an advanced stage for a greenfield airport on the Jaipur-Delhi highway. The project is a bid to help decongest the Indira Gandhi International Airport. As per rules, no airport can come up within a distance of 60 km from Jaipur and 120 km from Delhi. Therefore, the proposed site had to be on the Jaipur-Delhi highway, at a place, called Shahpura which is about 65 km from Jaipur.

The airport is being promoted by a private player. The state government will sign the Memorandum of Understanding with the party soon. The proposed investment for the airport is around of Rs 4,500 crore. The official said, primarily, the airport

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had the ignominy of the public sector Bharat Petroleum Corp Ltd (BPCL) filing a winding up petition in the Karnataka High Court on September 2. This is perhaps the first ever case of a supplier filing a winding up petition against an airline in India. Unlike the sympathy they have for other airlines, there is little for Vijay Mallya or Kingfisher, thanks to the high profile marquee appearances that the owner makes across the world at FI circuits and elsewhere. “He doesn’t seem like a man who is short of cash,” said one official.

Kingfisher owed Rs 950 crore to the petroleum companies — Indian Oil Corp Ltd (IOC), BPCL and Hindustan Petroleum Corp Ltd (HPCL) — as of August 2009. Of this, BPCL’s dues were Rs 314 crore, IOC’s dues were Rs 26.18 crore while HPCL’s stood at Rs 587 crore. The oil marketers and the airlines had reached an understanding requiring them to pay their dues in six equal installments. Kingfisher Airlines, Jet Airways and Air India were a party to this agreement, but it seems Kingfisher reneged on it. While BPCL appro-ached the Mumbai High Court for arbitration proceedings,

will be used for cargo and chartered flights. The proposed airport will also cater to the industrial belt of Neemrana, Bhiwadi, Pathedi, where several industrial units have shifted operations from Haryana, Chopanki, Dharuhera, Kushkhera and Gurgaon.

SHRAWASTI-KUSHINAGAR AIRPORTS SOON

Now, Uttar Pradesh wants to boost tourism and regional development.

As a first step, the state government has proposed to set up an international airport in Shrawasti and Kushinagar districts to cover the Buddhist circuit of Sarnath, Kushinagar, Sankisa, Kaushambi, Dhamekha Stupa at Sarnath Shrawasti and Kapilvastu that attracts pilgrims from all over the world — particularly, Japan and other South East Asian countries. Bids have been invited from consultancy firms for preparing a comprehensive project report for the development of international airports in Shrawasti and Kushinagar and integrated development of the Buddhist circuit under public-private partnership (PPP) on a design-build-finance-operate-transfer (DB FOT) basis.

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NEWS DIGEST they, simultaneously moved a winding up petition to put more pressure on Kingfisher Meanwhile, Jet Airways Chairman Naresh Goyal acknowledged that the strategic alliance forged almost a year ago between his company and Kingfisher Airlines, has still not achieved the results that they were hoping for.

“I can’t really tell you when it (strategic alliance) would be fully operational. We have been discussing, but Naresh Goyal Vijay Mallya nothing much has been done yet,” Goyal told reporters in cially in engineering,” he said.

Mumbai just days before his own airline Goyal also advocated a 20-25 per collapsed in a heap when the pilots went cent increase in fares across the board to on strike. The two airlines had bridge the gap between input costs and announced a strategic alliance in October revenue. The industry has been faced last year to trim costs. “We have done with a situation in which the former has certain things. We are co-operating in been increasing while the latter has been engineering and (sharing) some other falling. Jet-Kingfisher alliance is yet to facilities in order to improve our bottom gather momentum, he said. He also said lines. We have been looking at how we the industry is on an average losing Rs can improve our cost structures, espe- 800-900 crore due to a 20-25 per cent gap

30

CRUISING HEIGHTS October 2009

between revenues and costs, which he attributed to irrational pricing by air-carriers. “Everyone is doing irrational pricing. Everyone is selling below prices. We don’t want to sell below cost,” Goyal said.

Meanwhile, both the airlines will raise $500 million (around Rs 2,500 crore) between them to meet expansion plans and working capital requirements.Of this, Jet will account for a lion’s share with $400 million (Rs 2,000 crore) and will explore various financing options such as QIP (Qualified Institutional Placement), GDRs (Global Depositary Receipts), ADRs (American Depositary Receipts) and FCCBs (Foreign Currency Convertible Bonds). The company has schedule an extraordinary general meeting in Mumbai on September 24 to seek shareholder approval for this move. Kingfisher plans to raise $100 million (Rs 500 crore). Earlier in July, the Kingfisher board had already decided to raise Rs 500 crore through a right issue.

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AAI: Special Focus TAKE

OFF V P AGRAWAL Chairman, AAI

eing a Mini Ratna Public Sector Enterprise (PSE), Airports Authority of India (AAI) is not only striving hard but, in fact, is cruising to attain the Navratna status.

We have realised that since we came into being, we have indeed taken long strides but even now, we have many miles to cover.

I don’t think, however, there is any scope for complacency to set in due to current economic downturn and particularly, the worsening financial market which in turn, has had a strong impact on development activities. As a result of this tense economic situation, air traffic growth and revenue receipts have been affected adversely. As has been wellestablished, airports not only contribute towards overall development of the country but also, play a vital role in reviving the economy. Development of airports, therefore, is inevitable. It will then, be not wrong to say that airports’ infrastructure development is essential for the aviation industry which in turn, will lead to the economic growth of the country.

In the fast-changing scenario, we at AAI, are no exception, and thus

B

Continued on page 34

AT THE JOINT VENTURE SIGNING CEREMONY: (L-R) Mr V P Singh, Chief Administrator, GMADA,Punjab Government, Mr V P Agrawal, Chairman AAI, and Mr T C Gupta,Chief Administrator HUDA, Haryana Government.

AAI signs MoU for Chandigarh Airport AI Chairman V P Agrawal signed a Memorandum of Understanding (MoU) on September 17, paving the way for the formation of the joint venture to establish the Chandigarh International Airport Pvt Ltd. The JV agreement was signed in the presence of Civil Aviation Secretary, Mr Madhavan Nambiar by Mr Agrawal, Mr V P Singh, Chief Administrator, GMADA (Greater Mohali Area Development Authority) and Mr T C Gupta, Chief Administrator, HUDA(Haryana Urban Development Authority). The JV is a follow-up of the MoU entered into between AAI, Government of Punjab through GMADA and Government of Haryana in January 2009.

The JV Company will have an initial paid-up capital of Rs10 cr and the share capital could be shared between AAI, GMADA and HUDA in the ratio of

A

51:24.5. The Punjab Government has agreed to transfer 300 acres of land free of cost to the company, wherein, AAI would be responsible for creating the terminal building and other associated airside facilities to meet world standards.

Other officials who graced the signing ceremony were Mr Viswajeet Khanna, Secretary, Civil Aviation, Mr Arun Goel, Secretary, Housing & Urban Development and Capt Abhay Chandra, Civil Aviation Advisor, Government of Punjab, Mr D S Dhesi, Government of Haryana Financial Commissioner and Principal Secretary, Town and Country Planning and Mr S C Kansal, Chief Controller of Finance, HUDA, Mr Alok Sinha Joint Secretary, Ministry of Civil Aviation, Government of India, Mr S C Chhatwal, Member (Finance), Mr M C Kishore, ED (CA&CS), AAI, Gp. Capt D C Mehta, Advisor (PR), AAI and Mr Suneel Dutt, Airport Director, Chandigarh Airport, AAI.

AAI’s agreement with Nepal Civil Aviation Authority he Airports Authority of India (AAI) has launched a series of initiatives to revamp, so as to enhance air/flight safety. Mr V P Agrawal, Chairman, AAI, said that AAI was also committed to take initiatives to make the Indian sky safer. Accordingly, an agreement was signed on September 9, 2009 between Mr Keshab R Khanal, Director General, Civil Aviation

T Mr V P Agrawal, Chairman, AAI, welcomes the Civil Aviation Authority of Nepal (CAAN) officials.

CRUISING HEIGHTS October 2009

Authority of Nepal (CAAN) and Mr V P Agrawal, Chairman, AAI, to streamline and define the procedures relating to separation standards level assignments and coordination procedures between the AAI and CAAN. It has been agreed to standardise and define procedures as applicable between the ATS units of both the authorities Continued on page 34

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AAI: Special Focus ost independence, the then CAD (Civil Aviation Department), also referred to as DGCA (Directorate General of Civil Aviation), inherited most of the aerodromes across the length and breadth of the country, barring a few, especially in the North, West, North East and some in Central India, which were taken over by the Indian Air Force for purposes of military aviation. As is known, at that point of time, civil aviation per se was conspicuous by its absence and, moreover, the infrastructure was catered for small/medium size piston engine aircraft with negligible navigation / landing aids. Therefore, it was obvious that CAD/DGCA got war, torn airports in its share and thus, the scope for infrastructure improvement was enormous.

With the advent of technology and civil aviation getting popular/being accepted as a mode of travel/transportation, more so India having come on the global aviation map upgradation of infrastructure, became imminent.

Accordingly, in 1972, IAAI (International Airports Authority of India) was carved out of CAD/DGCA and came into existence, through an Act of Parliament with the sole aim to develop the four International Airports at Delhi, Bombay, Madras and Calcutta, so as to meet the laid down by ICAO (International Civil Aviation Organisation) for air transport operations. With passage of time, civil aviation having got its rightful place in our country, it was felt that the remaining 124 airports also require to be developed to meet the aspirations, the aviation fraternity in particular and the air travelling population at large. Accordingly, yet once again in 1985, by an Act of Parliament NAA (National Airports Authority) was carved out of CAD/DGCA with the responsibility to maintain / develop all civil airports in the country. In 1994, yet through another Act of Parliament, AAI was formed with the merger of both NAA and IAAI. The aim being to ameliorate the ground situation as prevailing, as an outcome of two authorities functioning in the same area. Therefore, it may not AAI is the be incorrect to state that “A main stay of civil aviation”.

Before one ventures into gambit of the airport infrastructure, it would be appropriate if, one has a fair idea with regards to the functions and responsibilities of AAI. The functions can be broadly classified in two categories of development as under: Air Traffic Management and CNS

P

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The AAI saga Entrusted first with the responsibility of developing the nation’s four international airports soon after Independence, writes Group Captain Devinder. C. Mehta, the AAI has become the backbone of the country’s move to go global.

Infrastructure Control and management of the

Indian air space and Air Traffic Management. Total area of Indian Airspace(Land + Ocean) is 2.80 Million NM (Land 1.05 and Oceanic 1.75 MF) Plan, provide, operate and maintain communication, navigational and surveillance aids.

Construction and Management of Airport Infrastructure Plan, design, develop, operate and maintain passenger/cargo terminal’s.

Plan, develop, construct, operate, maintain operational areas viz., runways, aprons and taxiways.

AAI Operations AAI manages 124 airports, including civil enclaves, the details of which are

CRUISING HEIGHTS October 2009

as follows: 12 international airports.

8 custom airports.

23 civil enclaves.

81 domestic airports.

In addition, CNS ATM Services are being provided at Delhi, Mumbai, Bangalore, Hyderabad and Cochin.

AAI provides air navigation infrastructure and air traffic services in the designated airspace.

PLANNING AND EXECUTION OF DEVELOPMENT On the anvil of AAI, are the plans to modernise air traffic services and develop the other infrastructure. In order to meet the demands, arising from the rapid growth in air traffic in and around the airport, a scientific and rationale “gate-togate” approach has been adopted, so as to ensure safety, regularity and efficiency,

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Surat, Hubli, Belgaum, Cooch Behar, Akola, Gondia, Pant Nagar.

Works under progress Rajahmundry, Vijayawada, Mysore, Jodhpur, Cuddapah, Shillong, Tezu, Jaisalmer, Puducherry, Leh, Jorhat, Bhavnagar.

Cargo terminals too, demand continuous monitoring for appropriate upgrades. Accordingly, all efforts are being made to improve our cargo-handling capabilities. In keeping with the modern times, Kolkata airport has been provided with a full-fledged, modern cargo handling facility equipped with ASRS (Automatic Storage Retrieval System). Similar plans in respect of cargo modernisation at the upcoming new terminal building at Chennai airport are on the anvil.

In AAI, EDI (electronic date interchange) has since been introduced at all the metro airports. As regards increasing capacity at major airports, we already have surplus capacity at Kolkata, and on completion of Phase-III in Chennai, there too, we would have ensured surplus capacity.

through strategic planning and programming of various capacity constraints.

AAI has identified 35 non - metro and 23 other airports for development and these airports are being developed in two phases. The non-metro development is being undertaken in two phases. Phase 1, consists of 24 airports, whereas the balance 11 airports, were to be taken in phase II with the target date of completion being March 2010. As on date, work has since been completed at 9 airports and work is in progress at various stages at the remaining 26 airports. As regards, the other 23 airports work has been completed at 11 airports and work is in progress at the remaining 12 airports.

Appended below are the names of the non-metro and other airports: Non-Metro Works completed Amritsar, Aurangabad, Agra, Dehradun, Jaipur, Nagpur, Trichy, Udaipur and Visakhapatnam.

Works under progress Ahmedabad, Agatti, Agartala, Baroda, Bhopal, Bhubaneswar, Chandigarh, Coimbatore, Dimapur, Goa (Dabolim), Guwahati, Imphal, Indore, Jammu, Khajuraho, Lucknow, Madurai, Mangalore, Patna, Port Blair, Pune, Rajkot, Ranchi, Raipur, Trivandrum and Varanasi.

Other Airports Works completed Dibrugarh, Srinagar, Calicut, Kullu,

CNS ATM The AAI has been entrusted with the responsibility of providing CNS/ ATM services that extend beyond the territorial limits of the country. The AAI has been forever in the modernizing mode, with respect to its CNS/ ATM services, as it is expected to keep pace and abreast with the ever changing technology. AAI is, gradually shifting from ground-based CNS to satellite-based CNS. The development of GPS-aided Geo Augmented Navigation System (GAGAN), is part of this plan. Accordingly, it has planned an outlay of more than Rs1,700 crore for CNS/ ATM during the Eleventh Plan period. For the year 2008-09, it is about Rs 380 crore, which is more than five times the outlay for 2006-07.

The road map to develop CNS/ATM infrastructure has been drawn up. This includes implementation of GAGAN, which is being, jointly developed by the AAI and the Indian Space Research Organisation. The technology demonstration has been successful. Once fully developed, the overall capability of the GAGAN system includes the equatorial ionosphere spatial and temporal variability.

GAGAN will be capable of meeting the ICAO’s GNSS (Global Navigation Satellite System), SARPs (Standards and Recommended Practices) and it is scheduled to be in operation by 2011-12.

Other initiatives include integration of 11

CRUISING HEIGHTS October 2009

Area Control Centres into four or two main enroute control centres, networking of radars, networking of VHF (very high frequency) and HF, establishment of integrated ATS (air traffic service) automation system, and Advanced Surface Movement Guidance and Control System (ASMGCS).

As part of the Performance-based Navigation (PBN) programme of the AAI, RNAV [area navigation] and RNAV Procedures (RNP) have since been implemented at Delhi, Mumbai and Ahmedabad airports.

SUMMING UP For easy and better comprehension of the challenges, involved in developing airport infrastructure to meet the aspirations of the ever-demanding air travelling population. The quantum increase in the number of passengers travelling can be gauged from the overall passenger handling capacity of AAI airports. During the year 2003-04, it was 71.4 million and whereas, in 2008-09, it rose to 101.2 million. It is on the anvil to further increase the capacity to 178.3 million, once the ongoing projects are commissioned, say by 2010. It would, indeed be apt for one to visualise the magnitude of resources required, be it men, material and finance.

It may be prudent to restrict ourselves for the time being to the finance aspect only and highlight that the envisaged capital outlay for the current Five Year Plan (XI Plan) is Rs 124,340 million, which in fact, is 300 per cent more than the last Five Year Plan (X Plan). During the period 2004-09, AAI had undertaken projects valuing more than Rs100 million each at 51 airports. Further, during the same period, expenditure on communication, navigation and surveillance equipment was to the tune of Rs 8000 million. The Capital Expenditure for FY 2008-09 was Rs 266, 70 million.

From the above, it would be evident that AAI is in the true sense, is not only committed but, totally engrossed in doing tremendous work across the length and breadth of the country. To substantiate the statement, attention is drawn to the tremendous excitement generated in the recent past, wherein, record number of terminals was inaugurated all over India during the months of February and March. Post independence, there must be a few parallels to further the cause of aviation and connectivity in the sub-continent.

Group Captain Devinder. C. Mehta is Advisor(PR) at the Airports Authority of India.

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AAI: Special Focus in respect of aircraft operating on routes under control of Kolkata/Varanasi/Delhi ACC and Kathmandu ACC to ensure safe, orderly and expeditious flow of air traffic. That will ensure judicious use of routes, wherein substantial savings in respect of ATF could be achieved.

The procedures contained in the agreement supplement or detail, where so required in the vicinity of common FIR boundary those prescribed by ICAO Annex 2, Annex 11, PANS/ATM Doc 4444, regional supplementary procedures (Doc 7030) and respective national AIPs. The agreement stipulates the control procedures in respect of airspace within the FIRs of the respective countries and the area of responsibility of the respective area control centres in both the countries i.e. Kolkata ACC, Varanasi ACC and Delhi ACC in India and Kathmandu ACC in Nepal to ensure optimum safety. The separation both vertical and longitudinal in all modes i.e. reciprocal tracks and crossing tracks have also been defined. This also includes the coordination procedures with regard to

nts with Mr Keshab agreement docume AAI, exchanges the rity of Nepal (CAAN) n, ma air Ch al, on Autho Mr V P Agraw General, Civil Aviati R Khanal, Director

the various ATS routes and transfer of control points between the two authorities.

It is envisaged that with signing of the agreement between the two authorities many issues/irritants

which were prevailing during the recent past, have since been eradicated and appropriate action, has since been initiated to ameliorate the grey areas thus enhancing flight safety.

had to take the option of cost cutting, crore in 2007-08, Rs 2547.52 crore in substantiate my statement, I would like review our planned projects and 2008-09 and Rs 3244.96 crore in to suggest that the slowdown is a manpower deployment. AAI has been 2009-10. At present, we have two temporary phenomenon. Certainly, forced to look for ways to enhance mega plans underway: Modernisation the future of the aviation industry in the cash flow from various untapped of Kolkata and Chennai airports the emerging markets would not get sources. Viewed from a short-term wherein, the cost of the projects as any worse. Even, AAI has got into perspective, the overall condition of planned is Rs 1,920 crore and Rs serious business and is exploring aviation industry seems to be getting 1,808 crore, respectively. various avenues of revenue grimmer by the day.

Despite the present grave generation including prospects of cityIn the last decade, a phenomenal situation, I would like to close on an side development as well as gainful surge has been experienced by the optimistic note. The only way to and optimum utilisation of terminal aviation sector, which demanded of successfully steer through these buildings. AAI is also deciding to AAI to take several development turbulent times is to accept it as an venture into ground handling at works at almost 50 airports in the ‘exciting and challenging phase’. To airports and some other associated country, ahead. The work entails areas such as Maintenance, huge expenditure and most of it, Repair and Overhaul (MRO) and has been done from in-house training, as we anticipate some sources. We would like to potential in these fields. Airports highlight the quantum of money are considered to be solid involved in the Five Year Plans. investments, in comparison to The outlay of the 10th Five Year others in the infrastructure Plan (FYP) was to the tune of Rs sector. Certainly, our capacity 5,909 crore whereas the actual coupled with continuous expenditure was Rs 3,535 crore. In planning would not only prove our current FYP i.e., 11th plan to be handy but also, stand us (2007-12), the outlay is Rs 12,434 in good stead when the crore and the current economy revives and air traffic A view of Chennai International Airport which is undergoing modernisation expenditure has been Rs 1980.23 gets into an ascending mode.

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Why did the IATA chief say that India should be on the wall of shame when airport charges in India were hiked in 2009?

Strangely, our private airport developers did not react nor straighten the record 36

t was a useful symposium on air transport organised by the Directorate General of Civil Aviation in collaboration with the Foundation for Aviation and Sustainable Tourism (FAST), Airport Authority of India (AAI), Air India and Pawan Hans Helicopters Limited. The two-day meet — September 16 and 17, 2009 — saw bigwigs of the global aviation industry like ICAO President Mr Roberto Kobeh Gonzalez, DGCA (Director General of Civil Aviation) Nasim Zaidi, Mr Carlos Grau Tanner, Director, Government and Industry Affairs of IATA (International Air Transport Association), Advisors to FAA (Federal Aviation Administration) and EU (European Union), economists from ICAO (International Civil Aviation Organization) and ACI (Airports Council International), Chairman of AERA (Airport Economic Regulatory Authority), and leading industry experts exchange ideas.

I must mention the presence of Vijay Poonoosamy, Vice-President, International Affairs Etihad Airways, Tom Wright of Cathay Pacific and other important officials from airlines, airports and regulatory bodies. While Civil Aviation Minister Praful Patel graced the occasion, what

There was no representative of Air India, one of the five sponsors of the conference. Nor did any representative of Jet Airways, SpiceJet make their presence felt, leave alone present their views. There was an official from Kingfisher who asked questions to check the mood of panelists mainly sarkari babus. The air transport symposium titled, “India-Asia: Civil Aviation Cooperation” deliberated on three issues — Opening up of skies; Common approach to sky; and, Airport economic regulation.

As luck would have it, before the conference commenced the newspapers carried banner stories that there would be no respite for global aviation from the impact of the continuing economic crisis and that their losses this year, could exceed US $11 bn. But what remained unsaid was that Indian aviation industry like in the previous year may continue to hold the top slot (not the one airlines fight for in airports) among the loss makers.

Hence, this suggested that the problems plaguing the Indian aviation scene were far more serious than what the world is experiencing since the economic meltdown from early 2008.

This, at least, blew off in my opinionthe-frequently-touted theory of a correlation

A crowd must be

regulated

It is time we stood up and stopped following blindly what IATA and ICAO may want us to. did not emerge at the end of the two-day session was a hazy pointer to the way out of the present crisis that has engulfed the global aviation industry including Indian aviation.

The discussion especially on regulation of the skies and of airports/airport charges seemed to suggest that such issues would become increasingly controversial once the Indian economy limped back to normalcy — say a year from now.

The chief of the state-owned AAI did not know how to meet both ends especially when he no longer managed the cream of airports in India. The private airport developers continued to struggle as their business model built at the beginning of the aviation boom four years ago no longer held relevance. The Chairman of AERA and his colleague Secretary of the regulatory body still await the appointment of two crucial members to handle critical issues concerning finance, technical, etc.

CRUISING HEIGHTS October 2009

between GDP growth and performance of the airline industry. Normally, it is not supposed to be more than one-and-a-half times the GDP growth.

This is what former Aviation Secretary Ashok Chawla, now Finance Secretary, had said at a FICCI conference two years ago. He had then said it was unsustainable for the Indian aviation industry to grow three times the GDP growth, or say at 25 per cent. In fact, aviation in India grew by 38 per cent or more than four times the GDP growth.

So, if we keep this rule of one-and-half times the GDP growth, then, perhaps, India should have done better than what it is now showing. For instance, while the GDP during 2008-09 is reported to have grown by 5.8 per cent or say 6 per cent, the aviation industry actually contracted. The number of aircraft movement compared to the previous year shrunk by 0.1 per cent, that of passenger growth by -06.80 per cent and freight carried by -01.00.

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This sorry state seemed to be continuing till date or September 2009 even though some light is visible, or is it just a mirage — the appearance of green shoots in the form of August 2009 traffic figures being slightly higher year-on-year basis.

But what happened and happens to the so-called correlation between GDP growth and aviation growth? Perhaps, we in India should not blindly follow the economic model of what IATA or ICAO suggest on the basis of study of more developed/mature markets.

At the symposium,a case study of liberalising air transport in Europe by Mr Klaus Geil, Director General for Energy and Transport of EU pointed out that the European Union, indeed, had one sky and one ATC system. Unlike India, if one travelled one-and-a-half hours in the EU, he would have overflown a few member countries. Statistically speaking, he said during 2007, EU and other carriers carried 790 million passengers or 520 million was intra-EU. This passenger figure was five times of what was carried into and out of India in 2008. Could we then accept this premise and make similar comparisons and draw similar conclusions? Perhaps, not.

There were some really good educative presentations. The one by the Airport Council International said airport user charges were under four per cent of the global airline industry expenditure.

So, the aviation industry’s problems today were not due to airport charges. Though this is a global study, why did the IATA chief say sometime ago that India should be on the wall of shame when airport charges in India were hiked in 2009 and he quoted the hikes in Mumbai and Delhi airport?

Strangely, our private airport developers did not react nor straighten the record and it was only when our domestic airlines complained of high airport charges did the newly-formed body of private airport developers in India correct the picture.

It must be pointed out here that airport charges mainly comprising parking, landing and navigation charges were hiked in early 2009 after eight years (last hiked in 2001). The hike was only 10 per cent. IATA’s official dealing with industry charges, fuel, taxation, etc. in his presentation said that any regulator including AERA should issue regulatory orders for each individual airport separately and not issue a blanket order when it came to regulating charges. I questioned how AERA would deal with Indian airports? If any airline made profits, it was supposed to be a good airline and if it made losses then it was bad. A similar yardstick is not available for airports as it is always looked upon as a monopoly in the place it is situated.

But then, we have fixed IRR for the fertilizer industry and few others where the government does all kinds of homework to study the capital expenditure so that there is no gold-plating.

Speakers referred to the possibility of gold-plating by airport developers and, therefore, distort airport charges. When asked about this, AERA Chairman Yashwant Bhave, who was present at the symposium, said these were significant issues

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Planes at Delhi airport: One of the low-charging airports.

and needed to be studied. What I would like to suggest is: why not get independent auditors to study the capex so that neither IRR is distorted nor is their any reason to charge excessively for airport use by airlines?

But if the airlines have graded charges for passengers for the class of travel, perhaps, airports in India at least deserve some right to levy differential rates between airlines if, for example, an airline wanted prime slots all round the year. It is not done in India but is treated differently abroad. AAI Chairman V P Agrawal admitted to the audience at the symposium that AAI was loosing Rs 100 crore annually for managing the airports in the North-east. Rather, it was being subsidised: a task, which has become even more difficult after the creaming off of more profitable airports like Delhi, Mumbai, Hyderabad and Bengaluru.

So, this is my second objection to following blindly what the IATA and ICAOs of the world may want us to follow. Of course, there has to be no compromise on safety and security. But, certainly economics needs to be tackled differently.

There are many other issues that call for serious mulling and which I will mention in subsequent issues. Till then, I wish good luck to our airport economic regulator in trying to balance the interest of airport developers and airlines. However, who will voice the opinion of consumers or passengers I do not know. As always, one is fine, two is company and three is a crowd. And a crowd does require regulation.

(Veteran journalist and long time aviation watcher R Krishnan is Consulting Editor at CH. He can be reached at rkrishnanji@yahoo.com.)

CRUISING HEIGHTS October 2009

By the rule of oneand-half times the GDP growth, India should have done better than what it is showing… while GDP in 08-09 grew by 5.8%, the aviation industry actually contracted 37

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GLOBETROTTING

AT A GLANCE

Chicken wraps for births UNBELIVABLE but true! Two pregnant women gave birth prematurely after eating contaminated chicken wraps that were sold in their thousands on Virgin Blue flights from Brisbane and the Gold Coast. Both women and their babies survived. Virgin Blue said the tainted chicken wraps were offered on services along the east coast of Australia, to New Zealand and Bali, and out of

Are you the one in 10?

Brisbane and the Gold Coast. “It appears the likely source of the contamination was an ingredient supplied to the manufacturers of the wraps and not Virgin Blue or other companies who received the affected products,” the airline said. Listeriosis symptoms include fever, headache, tiredness, aches and pains, diarrhoea, nausea and abdominal cramps.

A recent survey has found that one in 10 Australian men have had a relationship or romance with someone they sat next to on an airline flight. The online survey of 1000 respondents, by online travel specialist Expedia.com.au, found that the front of the plane was the most popular seating place among 37 per cent of respondents. Women were half as likely to admit to a high-altitude fling. The survey also found 70 per cent of respondents nominated their seat location as the most important factor contributing to the

Fat means two

Shortest delays

seats or no seat

PASSENGERS at Britain’s busiest airports experienced the shortest delays for 14 years this spring, with marked improvements at Edinburgh and Glasgow. Average hold-ups for scheduled flights at Scotland’s two main airports were cut by one-third to nine and ten minutes, respectively, in April to June compared with a year ago.

The improvement has coincided with a 9 per cent reduction in flights — to the lowest level for six years — and a 6 per cent cut in passengers. The vast majority of delays are caused by problems like bad weather, air traffic control restrictions and delays from inbound aircraft.

Fly ’em to the cleaners

S

outhwest Airlines has been attacked by a man who was refused a seat on one of their flights simply because he was told that he was too fat. Emery Orto and his wife flew Southwest from Chicago to Vegas to celebrate her 62nd birthday. Getting there was fine, but on the way back, Orto says he was stopped on the ramp and told he couldn't get on the plane.

The 350-pound, 6-foot Orto was then asked if could sit in his seat with the armrests folded down and when he said he could, the Southwest agent on the ramp did not believe him.

Orto is supposedly into the morbidly obese category and Southwest wanted

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him to buy an extra seat. Incidentally, Southwest isn't the only airline with a policy like this.

In another case easyJet was recently sued by a passenger, 15½ stone-weighing Anna Delluci after the check-in staff refused to let her board a flight because she was 'too fat', according to Italian press reports. Staff handling the internal Italian flight from Bari to Rome asked the passenger to stand on scales in front of a queue of other travellers and said she could only fly if she bought two tickets. La Repubblica newspaper said that the check-in worker added: “I'm sorry, but you're too fat and if you want to fly with us, you have to buy two tickets.”

CRUISING HEIGHTS October 2009

US airline Delta is flying empty jumbo jets thousands of miles to be disinfected in the UK. Delta has sent its planes from America to Heathrow where they are sprayed with insecticide. They are then flown back to the US, again empty, so they can fly to Australia.The planes have been to countries with a risk of malaria and dengue fever and Australia insists planes operating there are treated. But US rules mean the planes must be fumigated in approved areas outside America. According to the Mirror, 15 Delta planes have been flown to and from Heathrow to be sprayed in the past two months.

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Pamela Anderson ad too sexy for airport

JetBlue hates granny video MARILYN Parver filmed an altercation between two passengers on a JetBlue flight. When she refused to delete the footage from her video camera, she says the airline threatened to blacklist her and accused her of interfering with a flight crew, which is a federal crime.

Parver is reported to have said that she was a 56-year-old grandmother who had never had so much as a speeding ticket.

However, she was taken by armed officers, in handcuffs, off a JetBlue flight for refusing to delete a video she had taken of a minor altercation between passengers over a screaming kid. The flight crew made up a charge of interfering with the crew. The recording, however, proved that she did nothing wrong.

Marilyn was also threatened that she would never be able to fly on JetBlue again. It was a complete misuse of power and what happened to her could happen to anyone. Parver said the JetBlue crew specifically told her they didn’t want the material posted on YouTube, which is why they were so insistent that she delete the videotape. Instead, Parver took her case to ABC News, where its legal department can fend off any attack from JetBlue.

AN animal rights advertisement featuring former Playboy centrefold Pamela Anderson has been deemed too ‘hot’for US airports. The ad features Anderson as a scantily clad airport security guard who strips passengers of leather, fur and other skins.

Senior officials from People for

the Ethical Treatment of Animals (PETA) said the CNN Airport Network had barred the advertisement because it could be seen by children.

The ad had been scheduled to go on air from September 10 in New York airports, targeting attendees from the fashion industry descending on the city for New York Fashion Week.

Illustrations by Rajeev Kumar

enjoyment of their journey. Nearly 30 per cent nominated an exit row, 19 per cent said over the wing, while only 15 per cent said the back of the plane.

The survey found about 20 per cent of travellers felt safer with a male pilot, although around 80 per cent expressed no gender preference. Less than one per cent of respondents said they felt safer in the hands of a female pilot. Among the irritations on a flight, 65 per cent complained about cramped seats, 24 per cent cited crying babies, poor in-flight entertainment scored six per cent and five per cent said preferred food options not being available.

sad — and apparently unsolvable — case raises some important questions about the use of credit cards.

The young lady recently visited New York City by herself, and had a bad taxi experience. After the driver took her to JFK airport to catch her flight home, she tried to pay using her credit card.

She had been using her credit card to pay for all her taxi cab rides.

This time, the card was not approved. She knew that she had enough money on the card to pay for the ride, so she called up the bank to find out what was wrong. They agreed that she had enough to pay for it but the driver’s machine used for the credit cards, was not working. All the numbers were not going over either due to an equipment malfunction or a bad signal near the airport.

The driver got mad and called the Port Authority. When they got involved, they told her that if she couldn’t pay, then they would have to “book” her.

She was humiliated and scared that she was going to be arrested. They told her that she would have to give him something and she was forced to give the driver her $140 iPod to pay for a $50 cab ride.

Stop! That’s a grenade — a dud one Pilot killed testing ‘flying taxi’ PITTSBURGH International Airport briefly closed its security checkpoints and an internal commuter train after an inert hand grenade was found in a passenger’s bag. A bomb squad determined the grenade was inert.The passenger told police the grenade was present for his son.

She says the man from the Pittsburgh suburb of Beaver Falls used poor judgment but was released after police determined he wasn’t a threat. The man’s name wasn’t released. He was travelling to Philadelphia.

NY taxi driver swipes iPod LYNNE Lenhart’s daughter had her $140 iPod taken from her on a recent visit to New York. The thief was a taxi driver who remains at large, with the apparent blessing of the government and the New York City Taxi and Limousine Commission. This

A British pilot has been killed in a fiery crash in Malaysia while conducting a test flight of his Jetpod “flying taxi”. Aviation entrepreneur Michael Robert Dacre, 53, died recently when the prototype aircraft crashed and burst into flames shortly after take off from a landing strip in the northern town of Taiping, Malaysian police said.

Dacre was an inventor and the Managing Director of British-based Avcen, which planned to have the Jetpod eightseater flying taxi in production by 2010.The aircraft attempted to take off several times before soaring into the sky and then abruptly veered to the left and crashed to the ground. The Jetpod was designed to have a cruising speed of 550 kilometres per hour, be quieter and quicker than a helicopter and require just 125 metres to take off and 300 metres to land. In interviews when plans for the dual jet engine aircraft were unveiled, Dacre had said he hoped the Jetpod would transform inner-city transport.

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“INDIA WILL BE BACK… AIR TRANSPORT WILL

I

nternational Civil Aviation Organisation (ICAO) President Roberto Kobeh Gonzalez is a very affable person with deep understanding of the aviation business. Unlike the Italian origin International Air Transport Association (IATA), Chief Giovani Bisignani who does not mince words and chose to describe the airport charges hike in India as one that had to be hung on the Wall of Shame, Gonzalez of Mexican origin, is calm and believes in conveying his point with great care.

While he agreed that the global aviation industry was indeed going through a serious crisis as stated by IATA’s Bisignani, the ICAO boss said his organisation handled things which did not exactly fall in the realm of finances of the airline industry as was the case with IATA. ICAO had more to

ICAO Chief Roberto Kobeh Gonzalez hopes to bring about a higher degree of regional cooperation between nations, as he told R. Krishnan and K. Srinivasan.

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GROW AS IT IS VERY SENSITIVE TO THE ECONOMY” The economic downturn is a very difficult crisis, we recognize that.

There is a reduction in the number of passengers… but we are confident that the aviation (industry) will get past the crisis

do with charting plans for single sky, model air services agreement, safety standards, etc.

Gonzalez said the other side of the global aviation crisis was the consequential serious pressure on human resources.

“When the going is good,” he said, “you get HR guys but when it gets tough you cannot wish HR away and more so when it is expected that the aviation industry may come back on track in, say, two years from now, you cannot be seen looking everywhere to get the right HR. This is one of the key challenges facing the industry — be it for airports or airlines.”

The ICAO Chief is of the opinion, that there has to be greater collaborative efforts between regulators and airline operators. He said ICAO operated on the basis of performance-based activity and result-oriented approach. These include HR/technical and regulatory issues. ICAO can bring about substantive improvements at both national and international levels.

At the same time, he also hinted at certain gaps in cooperation. In this context, he said, despite a remarkable increase in regional cooperation with the Asia-Pacific being no exception, there was a need to avoid duplication of efforts. It should, therefore, be understood that there has to be greater sharing of information on a global scale. He gave some examples: accident information, flight safety issues, analysis of the same, etc. It is true that the IATA has huge data base as does the Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA).

But the problem is that such data banks operate independently despite knowing that accident information is time-sensitive and needs to be shared at the earliest during crises. Understanding the importance of this, ICAO has planned to have this subject on the agenda for its March 2010 ICAO conference where there will be great emphasis on global safety information exchange. Excerpts from the interview: C RUISING H EIGHTS : In ICAO’s view, has IATA exaggerated the impact of the global economic meltdown? They have forecast that the losses this year could be in excess of $ 11 bn. Would you agree with this assessment?

R OBERTO K OBEH G ONZALEZ : Well, we don’t think so. They have figures and we do not have access to the financial situation of each one of the IATA member

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COVER STORY - I airlines. Then, if these are the figures they are providing, well then we think these are, certainly reliable ones.

We don’t tell any institute to wait if this is the financial situation of each one of the airlines.

India included — it has disastrous consequences for HR. In such a situation, how does HR adjust and how do you plan for the future?

I do not recommend to any state or airline or the aviation industry, in general, to take action to drastically reduce human resources because this is a very important capital of the airline industry.

You cannot prepare fresh workers in a short time. We are confident that in 2010, the economy will be back to the global level. These figures come from international financial institutions like the World Bank, the International Monetary Fund (IMF). And in 2011, we are expecting a boom in the growth of the aviation industry by about 5.5-6 per cent, more than what has been seen in the past. And then, we will continue with the growth as expected. This is the forecast.

It is very difficult to come up with a very precise forecast in the actual situation.

But we have to have some information.

What is the view of ICAO on the present crisis in aviation?

It is a very difficult crisis, we recognise that. There is a very important reduction in the number of passengers. In character, more (or less) passengers are a part of the business (cycle), but we are confident that the aviation (industry) will get past the crisis and get back into business as some signals are already evident of small recovery by some of the airlines. We know that.

But the crisis is real.

When you say signals, you mean all over the world or selected areas of the world?

Air transport is very sensitive to the economy. If the economy grows, air transport will grow. This is the rule. I feel that India, in the next year, will be back and have a growing GDP of 7 to 9 per cent, something like that … this is the figure that I have. If this happens, I can assure you that air transport will grow, as it is very sensitive to the economy.

Suppose, one were to reverse this question to you in terms of Europe. Most countries like Britain, France and Germany, their economies actually shrank, their GDPs were negative. Yet their carriers did not suffer as much as Indian carriers, where the GDP growth was 5.6 per cent. How do you explain this?

I am not sure that the airlines in Europe are not suffering. I think they are suffering a lot, much more than what we first expected. IATA is saying that their losses are $9-10 bn or more. This is not (happening) in India but (affecting) big airlines in Europe, in USA and in some other parts of the world. Now, India is growing very fast and any change in the growth of the GDP will affect the growth of the (aviation) industry. But, the growth of this industry has been spectacular, one of the highest in the world. So, when something changes in the economy, then it will also affect the transport industry. It is bound to happen.

You had made a point in your keynote address (at the recent Air Transport Symposium) about GDP and the impact on human resources. When the GDP is rising very fast, it has a certain positive impact on human resources… you try and use them very well. But when there is a global economic crisis —

42

The boom that you are expecting in 2011 will be as big or even bigger than what we saw in 2006 or 2007?

Yes. 4.5 per cent was the traditional growth in the last seven years after September 11.We expect (an addition) of more than one per cent to this growth this year. It does not mean that we can keep this growth. We expect that there will be a boom and we will continue growing at the rate of 4-4.5 per cent on a global basis.

But in countries like India, the growth has been much more, much higher.

And you expect it to continue being higher in India?

Yes. Because the economy is growing faster (here) than in many other parts of the world.

I do not recommend to any state or airline or the aviation industry in general to drastically reduce human resources because this is a very important capital of the airline industry CRUISING HEIGHTS October 2009

You had made a point about regional cooperation and said it has had a very good impact. Can you quote any example of regional cooperation that can work in a crisis situation like this?

I spoke about regional cooperation mainly related to safety. This is the most important part of regional cooperation. Maybe, this is not applicable to India, but some small states do not have the resources to have a strong civil aviation authority. So, five or six states share the resources. And, this has been working very well. States that do not have a very satisfactory level of safety, have increased (their safety record), tremendously with this kind of regional advancement and also with a liberalisation principle. We had a very interesting discussion about liberalisation and the role of the regulator (at the

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symposium). But the spectacular growth of aviation in the last, let’s say 20 years, is the result of this liberalisation.

In the debate on opening up of the skies, you have the situation of countries like Dubai, Hong Kong and Singapore with a single gateway and huge airlines, while you have examples like India having many gateways and many small airlines. So, when you talk about opening up of the skies, there are some who benefit more than others.

What is the best way out for a more equitable arrangement?

Someone asked (this afternoon at the symposium): What is the policy of the state on air transport? I will expand it and say, what is the policy of the state for tourism, air transport, commerce and all the related activities? That is the key point.

I can tell you — I know cases from my experience — of so many states which developed very important tourist areas but the airline was very weak. The government said that tourism is the priority — we invite anyone to fly into the country. And, they developed the resources very well and after that, the airline became stronger and stronger because it was working on a very competitive basis working with the others.

But efficiency is important; not only in airlines but in any type of business. People don’t want to pay for inefficiency but for efficient service.

I am not saying Indian airlines are not efficient: I think they have good services and capacity. There are huge airlines here and that means huge responsibilities. The Director General of Civil Aviation (DGCA) has a huge responsibility to open a number of airlines and airfields. It is a huge industry here with so many mechanics, so many licenses. The situation is that you have a very high internal demand. Singapore, Hong Kong or USA does not have that.

One important priority in India that I know is to integrate the country by air. Singapore does not have this priority and even if it had it, they have not tried to implement it.

So, since (different countries have) different policies, it is important to (assess) the impact of the air transport in the general economy. This is the way I see the situation in countries like India. I think each (economy) is different. It is difficult to say that this is the medicine for all the space in the world.

You have issues like climate control, Kyoto Protocol, United Nations Climate Control, dominating any discussion on aviation these days. Now, suppose the developed countries, the EU and others decide tomorrow on certain emission

ICAO Chief and Aviation Minister Praful Patel at the recent symposium.

4.5 per cent was the traditional growth in the last seven years after September 11.

We expect (an addition) of more than one per cent to this growth this year CRUISING HEIGHTS October 2009

standards and say that aircraft more than five years old will not be allowed into their territory while pushing for more and more open skies, what will countries like India do. We may have the rights but we may not have the planes. After all, it took 20 years for Air India to acquire its aircraft. It’s a serious concern. How do we operate in such a scenario?

Very good question. ICAO, in its history, has developed standards that have been implemented by all international players, particularly the governments. We have a standard for noise. Maybe you remember, about 8-9 years ago, there was a big discussion between Europe and the US relating to noise. There are no standards for CO2. The G8 has recommended that in the short-term, ICAO establish the standards for CO2. And. when we talk about the standards, we are talking about the obligation of all the states to implement these standards.

Better and more efficent routes is one way of getting over this issue? Any work on that Absolutely. We are not doing very well. I have to recognise that. We have to have more communication with you-the media, because we have very important achievements in this area. We don’t publicise this (smiles). On Polar routes, from here to the US you use that, there are tonnes and tonnes of CO2 saving and we do not measure that. All Asia to US, East Asia to Europe… You can measure this. We have to evaluate what is the impact in the climate change of this region. In Asia, there is a big potential to reduce the flight time. And, this is not only good for the environment but also for the economy of

air transport.

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Photo Courtesy: www.fraport.com

“The global economic storm may be abating, but airlines have not yet found safe harbour. The crisis continues.”

T

hat’s Giovanani Bisignani, the feisty, no-holds barred Director General of the International Air Transport Authority.

Bisignani, though, isn’t far off the mark. It’s been one of the gloomiest years ever for the airline business and if one were to use the Queen’s expression it has to be Annus Horribilis Plus.

Take a look at the projections: Revised global financial forecast predicting airline losses totaling $11 bn in 2009.

This is US $2 bn worse than the previously projected US $9 bn loss due to rising fuel prices and exceptionally weak yields.

TOUGH CONDITIONS: A panoramic view of the Frankfurt international airport.

Meltdown

cometh The global aviation scenario is depressing though the new green shoots of growth have started to make an appearance. Despite the gloom, airplane manufacturers Airbus and Boeing remain optimistic. A detailed report.

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Industry revenues for the year are expected to fall by US $80 bn (15 per cent) to US $455 bn compared with 2008 levels.

IATA also revised its loss estimates for 2008 from a loss of US $10.4 billion to a loss of US $16.8 billion.

Three main factors are driving the expected losses: Demand: Passenger traffic is expected to decline by 4 per cent and cargo by 14 per cent for 2009 (compared to declines of 8 per cent and 17 per cent, respectively in the June forecast). By July, cargo demand was -11.3 per cent and passenger demand was -2.9 per cent. While both are improvements over the lows of -23.2 per cent for cargo (January) and -11.1 per cent for passenger (March), both markets remain weak.

Yield: Yields are expected to fall 12 per cent for passenger and 15 per cent for

Larger carriers have built-up cash reserves of $15 billion — a war chest that is warding off a major cash crisis

Bisignanispeak “T

Photos: H.C. Tiwari

he bottom line of this crisis — with combined 2008-9 losses at $27.8 billion — is larger than the impact of 9/11. Industry losses for 2001-2002 were $24.3 bn. This is not a short-term shock. $80 bn will disappear from the industry’s top line.

That 15 per cent of lost revenue will take years to recover. Conserving cash, careful capacity management and cutting costs are the keys to survival.

“The optimism in the global economy has seen passenger and freight volumes rise, but that is the only bright spot. Rising costs and falling yields have squeezed airline cash flows. The sharp decline in yields will leave a lasting mark on the industry’s structure. And, revenues are not likely to return to 2008 levels until 2012 at the earliest.

“With cash flows substantially

46

down over the first half of the year, the situation is critical. Larger carriers have built-up cash reserves of $15 billion — a war chest that is warding off a major cash crisis. But the outlook for small

Photo Courtesy: www.airliners.net

and medium-sized carriers — with limited options to raise cash — is much more severe.

“This is not an airline-only crisis.

There is less cash coming into the industry and the entire value chain must be prepared for change. All our business partners — including airports, air navigation service providers, global distribution systems — must be prepared to cut costs and improve efficiencies. Some airports have delivered cost reductions, but not in line with the magnitude of the changes to the industry cash flow.

“Governments need a wake-up call to create a policy framework that supports a competitive air transport sector capable of driving economic expansion. But European governments are fixated on using environment as an excuse to squeeze more taxes out of the industry. And the US is not moving fast enough to deliver the critical advantages to competitiveness that NextGen air traffic management will bring.”

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POSITIVE PREDICTIONS

A

irbus has increased its 20-year forecast for aircraft, citing the impact of emerging countries, low-cost air travel and demand for more fuel-efficient planes. Here are the key ingredients of their forecast:

Vacant seats in international carriers continue.

cargo, compared to declines of 7 per cent and 11 per cent, respectively in the June forecast. The fall in passenger yield is led by the 20 per cent drop in demand for premium travel. Cargo utilisation remains at less than 50 per cent, despite the removal of 227 freighters from the global fleet.

There is little hope for an early recovery in yields in either the passenger or cargo markets.

Fuel: Spot oil prices have been driven up sharply in anticipation of improved economic conditions. Oil is now expected to average $61 per barrel (Brent) for the year (up from US $56 per barrel in the June forecast). This will add $9 bn in cost for a total expected fuel bill of $115 bn.

The regional picture is varied:

North American carriers are expected to post losses of US $2.6 bn, more than double the previously forecast loss of US $1.0 bn. Early resizing of capacity matched the slump in demand. But yields remain weak and recovery in travel demand is being held back by high levels of debt and unemployment.

European carriers are expected to post the largest losses: US $3.8 bn. This is also more than double the previously forecast US $1.8 bn loss. Key longhaul markets were hit by the world trade collapse and delays in relaxing slot regulations prevented a timely reduction in capacity.

Asia-Pacific carriers will post losses of US$3.6 bn, similar to the US$3.3 bn previously forecast. Worst hit by

25,000 passenger and cargo planes will be sold for a total of 3.1 trillion dollars between 2009 and 2028.

Passenger traffic will rise 4.7 per cent and cargo 5.2 per cent annually through to 2028, led by growth in Asia-Pacific and emerging markets.

Long-haul carriers such as the A380 superjumbo and Boeing’s 747 will account for seven per cent of the anticipated sales by number but represent 19 per cent by value.

Smaller long-haul carriers such as the A350 and Boeing’s 787 Dreamliner carrying 250-400 people will account for 25 per cent of the sales and 42 per cent of the revenue.

Short-haul aircraft — the A320 and Boeing 737 which are favoured by low-cost carriers — will account for 68 per cent of all aircraft sold and generate 39 per cent of the revenues.

Replacement of about 10,000 older passenger aircraft will double the world’s fleet of aircraft with at least 100 seats, from about 14,000 today.

Airbus, last year estimated that 24,300 planes would be sold over the 20-year period between 2007 and 2026.

“Air transportation is a growth industry, and an essential ingredient in the world economy,” John Leahy, Airbus’ Chief Operating Officer-Customers, said in a news release accompanying the report released on September 17. “Technology and innovation are key drivers for an eco-efficient aviation sector, and Airbus is at the forefront of both.”

“Air traffic growth, increased frequencies, cost reduction, environmental responsibilities and airport congestion are increasingly influencing airlines to capitalise on the benefits of larger aircraft,” Airbus wrote. “In the last 10 years

CRUISING HEIGHTS October 2009

aircraft have increased in size by three per cent and Airbus predicts that by 2028, the average aircraft will be 26 per cent bigger than today,” the release added.

In its latest forecast, released earlier this month, Boeing predicted Airlines would buy 26,900 passenger planes (not counting regional jets), making it slightly more optimistic than Airbus.

The Asia-Pacific region will be the world’s largest aviation market over the next two decades, requiring 8,960 new commercial jets, worth approximately $1.1 trillion, according to a forecast Boeing released at the Asian Aerospace Expo in Hong Kong recently.

“Twenty years from now more than 40 per cent of the world’s airline traffic will begin, end or take place within the Asia-Pacific region,” Randy Tinseth, Vice President of Marketing for Boeing Commercial Airplanes, said in a news release. “That’s a big leap for a region

Airbus’ A 380 assembly line

that was not even mentioned in our earliest Boeing market forecasts back in the 1950s.”

The Asia-Pacific region, which includes Japan, Korea, China, Australia and India, currently accounts for more than 8,300 flights and 1.2 million travellers daily. It will become the world’s largest air travel market in fewer than 10 years, with travel in the region expected to grow at an average annual rate of 6.5 per cent over the next 20 years, bringing the region’s share of the world’s market from 32 per cent now to 41 per cent in 2028, Boeing said.

“This is clearly a difficult time in the aviation market, and today’s challenges are reflected in the Boeing forecast, but we do expect the growing Asia markets to lead the industry into recovery,” Tinseth said.

Boeing predicted 5,600 of the deliveries would be single-aisle planes, thanks to strong domestic growth in China, India and other emerging Asian nations. It said the Asia Pacific fleet would surge from 3,910 airplanes now to 11,170 in 2028.

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COVER STORY - II

What IATA wants

B

isignani is clear: “We don’t want bailouts. But we need governments to look more seriously at this sector.” And what is his mantra?

Invest in efficient infrastructure.

Replace the proliferation of environmental taxes with a global solution for the environment.

Although aviation was not included in the targets agreed at Kyoto, airlines will be forced to sign up to the EU emissions trading scheme (ETS) in 2011 and could face a bill of more than €1bn ($900m) as a result. The Aviation Global Deal (AGD) Group is an industry coalition that brings together leading international airlines, aviation sector companies and international NGO, The Climate Group. The goal is to contribute towards a pragmatic, fair and effective policy solution that incorporates international aviation CO2 emissions into a new global climate change deal.

Give airlines normal commercial freedoms to merge where it makes sense and to access markets and global capital like any other business.

At the moment few governments are willing to approve such mergers. A facetious argument is that bilateral rights must be enjoyed by national carriers run by national airline companies and not foreigners. In countries like India, security is cited as a major concern although upto 74 per cent FDI has been allowed in sectors like telecom that are even more complex and security-driven.

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CUTTING EMISSIONS IS THE WAY FORWARD FOR AIRLINES: Chinese President Hu Jintao addresses the opening ceremony of the United Nations Climate Change Summit at the UN headquarters in New York.

IATA July statistics add to flickering signs of recovery in the economy, but offer little relief for the battered finances of airlines themselves as average fares remain weak CRUISING HEIGHTS October 2009

the recession and fuel hedging losses at the end of 2008, the region’s carriers are the first to benefit from reviving Asian economic growth and the modest restocking of inventories in the West.

Latin American carriers are expected to break even, an improvement from the previously forecast loss of US$0.9 bn and the best performance among the regions. Airlines in this region are benefiting from more robust economies and less of the consumer debt headwind seen in North America.

Middle East carriers will also see an improved outlook, from a loss of US$1.5 bn to a loss of US$0.5 bn. Airlines continue to gain long-haul market share with expanded capacity and hub connectivity. The weakness of economic recovery, however, could mean continued excess capacity and further losses.

The outlook for Africa’s carriers is unchanged with an expected loss of US$0.5 bn. In spite of many economies on the continent continuing to grow during the global recession, African airlines were not able to benefit and lost market share.

Further, losses are expected in this region next year.

Perhaps, the only silver lining is that airlines are at last beginning to fill vacant business-class seats in a sign that a slump in cross-border trade is easing.

IATA July statistics add to flickering signs of recovery in the economy, but offer little relief for the battered finances of airlines themselves as average fares remain weak.

In July, the number of first or business-class travellers on international markets fell, 14.1 per cent from the same month last year, less than the 21.3 per cent decline seen in June. “Premium travel on international markets, which is mostly for business, is closely correlated to world trade which bottomed out in May and started to turn up in June,” IATA said.

“This improvement in cross-border trade is boosting business travel but demand is still very weak compared to the recent past and there remains much excess capacity, producing intense competition.”

2010 IATA expects losses to continue into 2010 with the industry expected to report a US$3.8 bn net loss. This is based on a limited revival of growth in traffic volumes of 3.2 per cent for passenger and 5 per cent for cargo; very little increase in yields of 1.1 per cent for passenger and 0.9 per cent for cargo and oil at US$72 per barrel.

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AIR CARGO & LOGISTICS

EXPRESS CONCERNS RAM SEES CHANGES IN AIR CARGO BUSINESS

ASA WITH NEPAL TO BOOST AIR CARGO

The air cargo industry has undergone changes in the last few years and the future driver of globalization will be electronics.

Historic agreement will allow any number of all-cargo services between India and Nepal with full third, fourth and fifth freedom traffic rights.

Commerce & Industry Minister Anand Sharma at Express industry symposium

AIR CARGO WILL REVIVE WORLD ECONOMY

INDIA IS A COMPETITOR AND A PARTNER

The Asia Pacific region and that includes India would be the centre of growth for the world economy, according to a forecast by Boeing.

Global Express Association chief hopes that the regulations governing the Indian express sector will keep pace with the changing times.

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LAST IN/FIRST OUT

TRENDS THE ENTIRE air cargo industry has changed in the past seven to eight months, as the cost of inventory management has shifted to vendors. Inventory management has evolved in such a way that shippers do not want to hold inventory on their books. So, they are opting for vendor-managed inventory, which helps them shift the cost of the inventory on the vendor.

They can then draw on it when they require.The main commodity you will see in the future, which will be a driver of globalisation, is electronics.The life cycles are shorter and the advancement in technology is such that everything has to be replenished. Suddenly time becomes a critical part of the supply chain management.And this is why air cargo is growing at the pace that it is.

This crisis is a blip in the growth trend of air cargo.

Actually, we have lost three years in actual growth terms.

We rely a lot on the automotive industry. Unfortunately, it is taking a hit, which has also affected our traffic levels — they use a lot of semi-conductors, and components traffic is huge.

There is also a huge debate going on between the forces of globalisation and localisation.

Hopefully, the globalisation process, which started a few decades back, would be strong enough to continue.And the current crisis will not have much of an impact on the globalisation of the manufacturing process.

North America is basically the consumer; Europe is more for design, services and marketing, while the factories are east of Dubai.The two major economies that we benefit from are next to us: India and China. I don’t think anybody can match them in terms of cost efficiencies that they can bring into the manufacturing process.

Ram C Menen DIVISIONAL SENIOR VICE PRESIDENT, CARGO, EMIRATES in a recent interview

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IATA cargo market analysis Massive monetary and fiscal stimulus starting to turn economies around, particularly in Asia. But 2010 upturn likely to be weak and uneven; Air freight volumes led world trade improvement by several months and are now 10 per cent above December low point, although still down on last year; Leading indicators such as purchasing managers confidence point to further improvement in volumes ahead; However, continued excess capacity forced

yields down 21 per cent in Q2 leading to first half revenues shrinking some 40 per cent; 227 freighters taken out of service this year reducing capacity by 3 per cent but new deliveries sustain risk of excess capacity worsening; Air freight benefiting from shippers now requiring more timely transport — air freight price competitiveness falls against 39 per cent decline in ocean freight rates; Losses worsened during the first half of 2009. Heads of cargo expecting revenues to pick up but rise in fuel costs may prevent benefit to profits

Indian air cargo to grow by 8.3%

Our existence would be threatened, if absolutely no night flights were to be permitted in Frankfurt...

Apparently, some of the political and legal authorities have simply no idea of what a ‘threat to our existence’ really means.

Not only Lufthansa Cargo but the complete logistics location of Frankfurt would be pulled into an irreversible downwards spiral…

Carsten Spohr

CEO LH Cargo after a German court outlawed nearly all night traffic at Frankfurt airport as of October 2011

A RECENT Frost & Sullivan forecast mentions that the Indian air cargo market will grow by 8.3 per cent per annum to 2013 as a result of an expanding economy and aviation liberalisation.

In 2007-08, the total Indian air cargo traffic (international and domestic) was 1.77 million tonnes. “Increasing globalisation, integration of the world economy, and the strengthening of India in the IT service provider space has resulted in a booming Indian economy, supporting a thriving global economy,” said F&S analysts Arun Narayanan and Chethan Kambi. “This has increased the aggregate demand and is an important driver for air cargo services.”

Ratan Shrivastava, Director Aerospace and Defence Practice for F&S added, “Although international air cargo traffic is much higher than the domestic traffic, the latter offers greater potential for Indian investors, since regulations prevent foreign airlines from competing in the domestic air cargo market.This is the segment to watch for growth, given the current robust growth in Tier 2 towns...”

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AIR CARGO

Air cargo to lead recovery The centre of growth for the economy would be the Asia-Pacific region.

According to aircraft giant Boeing, the global air cargo market would receive a big boost from countries like China, India, Japan and Australia.

A report from Tirthankar Ghosh. ews about the revival of the economy has been gaining momentum — ever so slowly. Now comes some heartening news from aircraft manufacturer Boeing. The US-based plane major has forecast that the global air cargo market will play a major role in the next few years.

Speaking in Hongkong recently while releasing the outlook for 2009-10, Jim Edgar, Regional Director, Cargo Marketing, Boeing Commercial Airplanes mentioned that despite an unprecedented contraction during 2008 and 2009, the manufacturer was confident “in the strength of the global air cargo market over the long haul”. He had his reasons: Asian carriers will be adding a whopping 750 freighters to the region’s fleets to accommodate growth and airplane retirements.

That figure would be about 27 per cent of the world requirement and second only to the North America market.

The Asia Pacific region comprises countries like India, Japan, Korea, China and Australia. Flight-wise, the region generates more than 8,300 flights and 1.2 million travellers daily.

According to the Boeing forecast, between now and 2030, the region will boast of largest air travel market in the world with an average annual rate of growth of 6.5 per cent over the next 20 years.

Talking about air cargo,

N

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Edgar mentioned that the sector almost always leads economic and passenger traffic growth by at least a half year. This despite the fact that the sector will be seeing “a deeper decline and it’ll be the first time in history that we’ll have two years of decline back to back”, according to the Boeing official. He went on to add that the “decline is slowing ... things are improving and we’re hopeful, but there’s a way to go yet”.

According to Boeing, the Asia Pacific region would be the largest market for new aircraft in terms of both units required and market value.

According to Randy Tinseth, Boeing Commercial Airplanes Vice President — Marketing, in 20 years, more than 40 per cent of the world’s airline

traffic will begin, end or take place within the Asia Pacific region.

The US plane maker has focused on the domestic growth in India, China and other Asian nations. These

would increase to 3,890 airplanes from 1,950 over the 20-year period and large freighters like the 747s and 777s will ultimately represent 35 per cent of the fleet, versus the 26 per cent today.

According to Boeing, the AsiaPacific region would be the largest market for new aircraft in terms of both units required and market value countries would pick up most of the single-aisle airplanes and in so doing would triple the Asia Pacific fleet from 3,910 to a total of 11,170 airplanes. Boeing has stated that the world freighter fleet

LEADING THE CHARGE: Capt.

Gopinath with his Deccan360 is connecting India with the Asia Pacific region.

CRUISING HEIGHTS October 2009

In the latest Boeing Current Market Outlook (CMO) for 2009-2028, the very large freighter airplane market will require 490 new built freighter airplanes and 340 converted freighter

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airplanes over the next 20 years; or, in other words, an additional 830 airplanes. The air-freight revenue tonne/kilometre (RTK) is expected to increase at 5.4 per cent per annum, with large freighter airplane deliveries taking up a significant part of the 710 new freighter airplane deliveries forecast over the next 20 years.

Prior to the latest CMO release, Boeing had predicted that the large freighter market would require 1,102 additional airplanes. Of these 1,102 airplanes, 641 would have been new freighters.

With 78 Boeing 747-8Fs sold and 71 Boeing 777Fs sold, Boeing is gunning to secure an additional 341 orders for new-built very large freighter airplanes with the 777F/7478F combination over the next 20 years, unless a viable competitor emerges. Whilst that essentially sounds positive, Boeing has also “lost” an additional 151 orders in that category due to their downward revision of that market from the initial 641 airplane requirement, but Boeing remains firm that does not negatively effect the business case for the -8F or 777F as both models have also attracted significant appeal in their short time since their respective program launches.

Boeing has already received requests for deferrals from some customers for the 777F and 747-8F, but Boeing has been quick to point out that no cancellations have been booked for the -8F. Clearly, the freighter market has taken a tremendous blow in this global financial crisis, and the appetite for all-new production freighters such as the 747-8F has been slowed, for now. Both the 747-8F and 777F offer class leading economics, capabilities and performances, and are without a doubt, the pinnacle of air-freight

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excellence in the very large airplane market. Their business cases and long-term market potential remain solid and bright despite the near term market conditions.

However, what may queer Boeing’s freighter sales is a new annual fee for technical support to owners of its aircraft that have been converted to freighters by shops other than Boeing.

Earlier, the technical support was free. But now, conversions delivered on or after April 15 this year would attract an annual support cost of $150,000 or $250,000 for a widebody.

For operators of aircraft converted by non-Boeing licensed converters, the fee would be per aircraft.

According to Flight International, operators of aircraft converted by Boeinglicensed supplemental type certificate holders fall under a special regime that sets fees

GIANT FREIGHTER: A prototype of Boeing’s 747 cargo carrier.

Boeing’s European rival Airbus, which has had an equally difficult time, also predicted that there would be a recovery in freight as well as passenger traffic by 2010.

Recent figures from the International Air Transport Association (IATA) bear out that: while Asia-Pacific airlines reported a 15.8 per cent drop in June, it was an improvement compared to

Despite an unprecedented contraction during 2008 and 2009, Boeing is confident in the strength of the global air cargo market over the long haul ...it’ll be the first time in history that we’ll have two years of decline back to back... the decline is slowing ... things are improving and we’re hopeful, but there’s a way to go yet.

Jim Edgar

Regional Director, Cargo Marketing, Boeing Commercial Airplanes.

at $200,000 per major type per year, or $50,000 a aircraft for fleets of three or fewer aircraft.

Quoting Carl Brandenburg, Boeing Commercial Aviation Services customer support regional vice-president for the Middle East, Africa and South Asia, Flight International mentioned that the fee for third-party conversions had been set “to be able to continue providing the level and quality of support our customers expect”.

last year’s year-to-date figure.

Air freight, which is considered a leading indicator of the health of world trade, has been picking up slowly, but continues to be lower than 2008 volumes. In fact, airlines carried 11.3 per cent less cargo in July than a year earlier, according to IATA data.

Preliminary figures released recently by the Association of Asia Pacific Airlines (AAPA) reported that AAPA member airlines carried lower volumes of air

CRUISING HEIGHTS October 2009

cargo. Air cargo traffic volumes remained weak but showed a more moderate decline compared to previous months. For the month of July, AAPA international cargo traffic in freight tonne kilometres (FTK) terms was 11.4 per cent lower than the same month last year.

However, this represented a significant improvement compared to the cumulative 20.8 per cent decline recorded for the first seven months of 2009. Cargo capacity in July was reduced by 12.1 per cent, resulting in a slightly improved average international cargo load factor of 66.9 per cent for the month.

Commenting on the results, Andrew Herdman, AAPA Director General said that the Asia-Pacific air transport industry continued to experience weak demand for both passenger and freight traffic and was still well below the levels of last year, “despite some encouraging signs of a broader economic rebound taking shape across the region”. Airlines are still under enormous pressure, with sharp falls in revenues as a result of lower fare levels. In managing their way through the crisis, airlines remain focused on further cost-cutting measures, whilst offering highly competitive fares and travel packages aimed at winning back more passengers”.

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CARGO JOTTINGS Transport expo in France THE first-ever Euro India Transport Systems (EITS), the largest IndoEuropean event dedicated to the transportation industry, is scheduled to take place from November 17-19, 2009 in the city of Metz in eastern France.

EITS is being organised by Moselle General Council in association with Moselle Development Agency and The exhibition grounds at Metz where EITS ’09 will take place.

Proximum Group. With five complementary trade shows, one-to-one business meetings and 40 sector-focused conferences, it aims to cater the needs of European and Indian companies in terms of development, technical and R&D partnerships as well as search for new markets in the transportation systems. EITS aims to bring together for the first time, 1500 representatives from Indian and European companies in six sectors of activity namely automobile, aeronautics and aerospace, rail, truck/bus, shipbuilding, transport and logistics industries, to kick off new strategic partnerships in their core business and related industries.

Till date, more than 600 European companies and 200 Indian companies have already signed up for the event and EITS aims to provide its participants with opportunities to generate industrial partnerships and strategic alliances. With rapidly growing international exchanges, the bilateral trade flow between India and Europe is estimated to be €70.7 billion in 2010 and is expected to rise up to €160.6 billion in 2015. With EITS ’09, Moselle aims at being identified as an entry door for Indian companies in the transportation systems interested in the European market.

DHL- Balmer Lawrie tie up DHL Express India recently announced a Memorandum of Understanding with Balmer Lawrie, a public sector undertaking with diversified business interests in manufacturing and services sector and a major player in air consolidation. The tie-up will offer Balmer Lawrie customers an enhanced service portfolio of international and domestic express solutions, courier requirements and movement of temperature sensitive cargos.

DHL Express India will provide Balmer Lawrie customers a one-stop-shop solution for international and domestic express solutions. Offering a market leading transit time of 1-3 days through a network of several air freighters and more than 45 international commercial flights arrangements from India, the customer will be assured of faster connectivity. In addition through Blue Dart, part of Deutsche Post-DHL, Balmer Lawrie customers will also have access to over 21,000 domestic locations in India and can also avail of specialised services such as air charter and road express.

Nepal-India agreement to boost air cargo THE Nepalese cargo industry, which was in a disorganised state, till a few years ago, can now look forward to more business from India. In a move that can be described as historic, India and Nepal recently signed two instruments including a Memorandum of Understanding (MoU) for a revised Air Services Agreement (ASA) and a technical accord.

The newly-agreed India-Nepal ASA

allows both nations to offer 30,000 seats every week from the earlier figure of only 6,000 seats with 63 weekly services between the two countries. From the cargo perspective, the agreement is very

M Madhavan Nambiar (extreme left), Secretary, Ministry of Civil Aviation, India and Nagendra Prasad Ghimire, Secretary, Ministry of Tourism and Civil Aviation, Nepal, exchanging the signed documents of an MoU on Air Services Agreement (ASA) between India and Nepal, in New Delhi, recently.

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CRUISING HEIGHTS October 2009

Kale develops IATA's SIS platform LEADING provider of solutions to the airline, logistics and travel industry, Kale Consultants recently announced that it has been chosen as the prime technology supplier for the development of the International Air Transport Association’s (IATA) interline settlement platform, Simplified Interline Settlement (SIS) initiative.

Speaking on the occasion, Tom Murphy, IATA’s Senior Vice President for Industry Distribution and Financial Services noted that “modernising the interline settlement platform is an important step in our mission to simplify industry processes. The US $500 million annual savings that SIS will generate is critical for the industry. As our technology partner and outsourced solution provider, we will be counting on Kale to deliver high quality solutions on time and on budget. At its steady state three years from today, SIS will handle over 1 million invoices per year, be used by over 300 airlines, support over 3,000 users around the globe and facilitate settlement of approximately US $50 bn per year for the industry.”

Vipul Jain, CEO & Managing Director, Kale Consultants Ltd., said the SIS project had added to the existing partnership with IATA on the First & Final billing initiative and reinforced Kale’s position as a premier solutions provider to the airline industry. The initiative was also in line with Kale’s constant endeavour to provide the industry with innovative solutions, in the face of the current economic conditions.

important. The designated airlines of each country have been entitled to operate any number of all-cargo services between each other’s territory with any type of aircraft with full third, fourth and fifth freedom traffic rights. These all-cargo services could also be operated under co-operative marketing arrangements such as code sharing, blocked space, etc.

Incidentally, India remains Nepal's biggest trading partner. According to figures available, a little over 70 per cent of the total exports from Nepal was to India while imports comprised 60 per cent of the country’s total imports in 2006-07.

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Express CONCERNS Saddled with infrastructural and other constraints, the express industry wants the government to come forward and facilitate effective functioning of its delivery services, reports Tirthankar Ghosh. recent article in India Knowledge@ Wharton summed up the state of the logistics industry in India in just two words: inefficient and expensive. The article noted that industry players

A

O

and analysts maintained that logistics costs in the country were among the world’s highest. Quoting a report by KPMG, the article said that logistics accounted for 13 per cent of the GDP, much higher than in the United States (estimated at 9 per cent),

n the sidelines of the seminar, Ilse Wilczek, Chairperson, Global Express Association (GEA), and Group Director Public Affairs of TNT, the Dutch-based mail and express company, found time to talk about India, the express industry and more to CRUISING HEIGHTS. The GEA, she informed, was the global trade association of the express delivery industry that serves over 215 countries, carrying over 30 million packages each day, all of them guaranteed to be delivered within a specified time frame.

“This guarantee has

made express delivery unique in the global transportation industry,” said Wilczek.

She pointed out that there was one thing that “unites us all: the competitiveness of the Indian economy”. India, she emphasised, has always attracted foreign trade partners and investments and “is one of the most crucial strategic markets to TNT, as it is for the entire express sector. That says a lot. In less than 15 years India has

developed into one of the most attractive economic partners in the world.”

As head of the GEA, Wilczek felt that “the maritime shipping routes of the past are the express delivery networks of today”.

Comparing today's jet speeds to the days of old, she said, “In the seventeenth century, international contacts proceeded at a speed of seven knots. Nowadays, millions of shipments are sent around the

“We are competitors and partners” Ilse Wilczek, head of the Global Express Association believes that regulations governing the express sector in India need to keep pace with the economic aspirations of developing markets.

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Europe (10 per cent) and Japan (11 per cent). It is with this background that a recent symposium on the express sector in the country — “Facilitating Trade and Global Competitiveness: Express Delivery Sector in India”— brought forth a flurry of complaints about infrastructural constraints. The meet was, incidentally, timed with the release of a study by ICRIER on the express services in the country.

The study called for greater support from the government to facilitate effective functioning of express delivery services in the country.

On the sidelines of the SYMPOSIUM ON EXPRESS INDUSTRY HIGHLIGHTS CONSTRAINTS: (L-R) Minister of Commerce and Industry Anand Sharma, Dr Rajiv Kumar of ICRIER, Ilse Wilczek, Chairperson, Global Express Association and R K Saboo, Chairman of the Express Industry Council of India.

globe every day. New Delhi is no more than a guaranteed two-day delivery network away from Amsterdam.”

Providing her vision to the express industry, she said that the single most important message that she wanted to project was: “Openness and free trade are not dangerous. Protection and isolation are. The history of economic relations proves that. Market access and legal guarantees are essential conditions, also for the development of the Indian economy.”

As members of the GEA, she emphasised: “We are proud of our contribution to creating a modern global economy and making it accessible to all. Express delivery services are facilitators of industry and trade…the express sector enables manufacturers and traders — whether they are big or small — to engage competitively in international trade and to deal with the demanding time frames of the global economy.”

However, the efforts of the international express industry would be defeated “if government policies

R K Saboo, Chairman of EICI, made it clear that till the infrastructure was provided for the express industry, the situation would not improve meet, R K Saboo, Chairman of the Express Industry Council of India (EICI), representing a cross section of members drawn from international and domestic express companies, made it clear that till the infrastructure was provided within the country for the express industry to work, the situation would not improve. “While the express industry is poised for a significant leap forward in the coming years, we are faced with challenges that need the kind attention of the Govern-

and restrictions undermine the ability of express delivery companies to facilitate trade, investment and productivity across the wider economy”. She trotted out some examples of the restrictions imposed by countries — and that included India — like the unclear definition of postal monopolies; complex licensing requirements; inefficient customs procedures; restrictions on access to aviation markets and ground handling systems and/or restrictions on foreign investment.

She then went on to say that “steps to remove restrictions on the express industry would encourage increased trade, investment and productivity. I would like to stress that the natural migration of international express handling goes far beyond the constraints of traditional courier and mail type products and includes fast freight and logistics in response to business needs.”

On her part, “GEA is of the opinion that customs regulation and practice needs to keep pace with the economic aspirations of strongly developing markets such as India.”

CRUISING HEIGHTS October 2009

ment of India. The broad issues are regulatory, amendment to the Indian Post Office Act, customsrelated barriers and infrastructure-related concerns.

The amendment to the Indian Post Office Act that was proposed earlier has been a matter of deep concern for us in particular.

We would like the Department of Posts to enter into a dialogue with the express industry before any amendment is proposed. In fact, the express industry and Post can go together and complement each

She pointed out the importance of the WCO models to the development of existing partnership opportunities between administrations and the express industry throughout the world.

A strong advocate of the liberalisation process — especially one that is going on in India today — Wilczek mentioned that the “sustainable development of the Indian economy really took off when the Indian Government adapted the market economy, and, under the leadership of your Prime Minister Dr Manmohan Singh opened its doors to the world and linked its markets to the world economy.”

Given the fact that India was more open today, Wilczek said, “We are competitors and partners at the same time. But, that makes us both stronger. By challenging each other and keeping each other alert, we can maintain and boost economic growth.”

The GEA, she said, has a strong track record in working closely with regional and national associations and what she wanted to bring about were strong partnerships, operating at the world level.

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Research points out

constraints to growth

T

he study based on a research conducted

by ICRIER on the impact of express delivery services on the Indian economy, opportunities and constraints to the growth of the industry found that the global slowdown had affected the country’s manufacturing and services sectors. In addition, the study also found that in the absence of a well-developed logistic chain, Express Delivery Services (EDS) providers would not only have to invest in 3PL and 4PL logistics.

In the process, these providers can bring about a change in the mindset of those who use these services. The EDS industry can turn into logistic service providers facilitating the country’s trade from mere courier companies.

The EDS industry provides services which include integrated door-to-door transport and quick delivery of time-definite shipments of documents, parcels and merchandise goods. In more formal terms, EDS can be defined as services which involve collection, transport, and delivery of documents, printed matter, parcels, and/or other goods on an expedited basis, while tracking and maintaining control of these items throughout the supply of service.

With the rapid growth of the world economy and with increased trade and financial transactions among countries, the industry has emerged as a vital cog in the functioning of the global economic system. In recent years, this industry has become more important because of the emergence of global value chains and relocation of international production networks. Also, increased off-shoring to low-cost countries and further outsourcing of in-house transportation, value-added services and logistical activities have furthered the growth of this industry in emerging markets.

EDS is a big and growing market worldwide. Estimates suggest that by 2008, the global turnover of the industry reached around US$ 175 billion. In India, the market size is estimated to be around Rs 7000 crore. In spite of the global recession, the market is expected to grow at 10-15 per cent in terms of revenue; in fact, the rate of

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growth is likely to reach 20-25 per cent once the recessionary trends in the major developed countries subside.

In spite of the importance of the sector, there is little existing research work in this sector. Also, there is no organised system of data collection. To overcome these problems, an extensive primary survey was undertaken which covered 133 EDS/courier service providers in the country.

The courier/EDS market in India is highly fragmented with around 20-30 large/medium sized companies. A number of the companies (about 2400) is in the unorganised segment. The survey results show that, in the EDS/courier industry, as a company grew in size, not only did its international coverage increase, but also its domestic presence in terms of states/cities covered and the number of branches, offices and collection centres.

The survey results also indicate that smaller companies are more focused on providing basic courier services. As companies grow, they tend to offer more valueadded services like express delivery and logistics. Secondly, smaller companies are more dependent on local customers for their business. As a company grew, its business with the corporate sector and the government increased.

The study also found that “express” was a competitive service and any reservation in the segment would be detrimental to Indian industry. The survey of clients showed that India Post had performed badly as compared to the most preferred express companies of clients in respect to many indicators like reliability, efficiency, flexible timing, pick-up on calls.

The survey results showed that there was a difference in the way the various segments of the EDS/courier industry faced barriers.

For the bigger players (the ‘large’ companies), inadequate airport and infrastructure emerged as the most problematic issue. For smaller companies, the most important barriers were corruption at government offices and roads, bureaucratic hassles and unhelpful government policies.

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other in their approach.”

India’s spend on logistics activities, said Saboo, was higher than that of the developed nations. The key reason for this was the relatively higher level of inefficiencies in the system, with lower average trucking speeds, higher turnaround time at ports and high cost of administrative delays.

Saboo then went on to mention that the ‘Express Delivery Services’ industry provided services which included integrated doorto-door transport and quick delivery of timedefinite shipments of documents, parcels and merchandise goods. In a series of photos, Saboo provided examples of the infrastructure — or rather the lack of it — at the country’s major airports.

Pointing out the potential of the market, Saboo said that size of the global express market was around US $175 billion; however, the size of the Indian express industry was small (less than US $ 2 billion).

It has been, however, estimated to grow at around 2.5 times the GDP. The sector had been growing at around 20-25 per cent prior to the global slowdown.

Coupled with the decrease in the international trade, the sector was predicted to grow at around 10-15 per cent, which would put it amongst the fastest growing sectors in India.

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However, it was the study that got a lot of attention. Pointing out the findings of the research, Dr Rajiv Kumar, Director and Chief Executive, ICRIER, mentioned that the government needed to facilitate better trade opportuSOME OF THE SPEAKERS AT THE SEMINAR: Blue Dart’s Anil Khana, nities. “While the counDr Arpita Mukherjee of ICRIER and Steven R Okun of UPS. try gets into free trade agreements with nations and Industry, Dr Kumar try, the minister said that across the world, it is essenhoped that the sector the “express sector is tial for the government to would receive the status it predicted to grow at around give a serious thought deserved. On his part, the 10-15 per cent which is towards inter-state agreeminister pointed out that amongst the fastest growing ments for assisting the “we are meeting at the sectors in India and has industry to build a single backdrop of challenging attained a size almost integrated market.” times when the global equivalent to that of the The ICRIER study prospects are not particuIndian shipping industry. found that the global slowlarly bright. We have There is a huge potential for down has had an impact on witnessed a slowdown in growth in this sector and as Indian manufacturing and exports as traditional this sector facilitates growth the country’s service sector markets in the West are in other sectors of the econ(see box). The study pointwitnessing negative omy, it would also have a multiplier effect of the overall growth in India’s share of global trade”.

Perhaps, what was important is that the study found that express operators in the country were often treated merely as courier companies.

Instead, these operators should be treated as logistic service providers facilied out that express service growth. However, this has tating Indian trade considproviders should now be resulted in the attention of ering the kind of activity termed as logistic service the world being diverted to they perform in the 3PL providers facilitating Indifocus on emerging and 4PL areas. The express an trade. In fact, said Dr economies to provide the industry in the country, it Kumar, India needed to necessary momentum of EXPRESSING ITS WOES: The lack learn from the experiences growth to the world”. of infrastructure at (left-right) Delhi, Mumbai and Pune airports of other countries.

Commending the that the express industry has to Sharing the research nationwide survey focusing battle with everyday, can be clearfindings with Anand Sharon the macro concerns of ly seen from the exposed packets and parcels at the three airports. ma, Minister of Commerce the express delivery indus-

Anand Sharma said that the express sector is predicted to grow at around 10-15 per cent and is almost equivalent to the Indian shipping industry

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was urged, must learn from the experiences of other nations. In the EU, the difference between express and logistics was getting blurred and logistic clearances were done faster than express clearances in India. China’s example was cited. The country was in the process of designing a postal act that will reserve letters in the domestic market and has completely opened up the external trade sector in its bilateral agreements.

After the bilateral agreement with the US, China has allowed self-handling, single window custom clearance. This has prompted US companies like UPS to shift its hub from Philippines to China. India also needs to evaluate its negotiating position in the WTO and FTAs: its current position is that the country cannot undertake commitments in courier services since the regulatory regime is evolving.

However, commitments in the WTO do not prohibit a country from ushering in domestic reform whereby partial commitments can be carried out in courier services. The commitments would also provide security to service providers and ensure that the country will not roll-back on the FDI regime and will facilitate investments in the logistic chain. On the other hand, it will enhance India’s bargaining position.

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IATO DIARY

Rejuvenation at 25 The recent Bangalore convention of IATO turned out to be a showcase for Karnataka’s tourism products and also witnessed the 25-year young association taking a global step when it signed a MoU with the US-based NTA. The Bangalore convention of the Indian Association of Tour Operators (IATO) was a landmark achievement. To begin with, the travel operators’ body was celebrating 25 years of existence. No mean feat considering the ups and downs, the travel industry has experienced through the years.

The inaugural show was, indeed the right moment for stalwarts of the association to come forward and recount those early days. IATO had started in 1982 with seven members — Ram Kohli, Pawan Khanna, O Karnik, Sunil Poddar, Narinder Sibal, Avinash Kohli and D R Talwar — coming together. Their vision was to encourage and promote a friendly feeling among tour operators and travel agents on all subjects, involving their common good and benefit. The founding fathers also decided to undertake steps to promote, encourage and assist in the development of tourism in the country and also, take initiatives to secure the welfare of the trade.

Today, after all these years, the association has developed strong links with the Ministry of Tourism (MoT) and works closely with airlines to connect to new tourist destinations, more accommodation facilities beyond metro cities and diversification of tourism products offered.

Downturn? Let’s beat it Held in the backdrop of painful circumstances — the sudden demise of Andhra Pradesh Chief Minister Y S R Reddy — the conference seemed to have lost its initial hype and many important personalities who were scheduled to make an appearance, did not come. However, that did not diminish the enthusiasm of the organisers, and that was clearly evident from the attendance at the inaugural session. It was, indeed worth noting that almost all the sessions at the conference were well attended — yes, even the ones after lunch when most participants take it easy.

Bangalore, perhaps, worked its charm on the IATO members. In the first session, the auditorium at Lalit Ashok was choca-bloc with eager listeners. And the galaxy of speakers ranged from the dapper economist Sanjeev Sanyal to Lisa

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Simon, President Certified Tour Professional (CTP), National Tour Association (NTA) of the USA. Between the two, were Ministry of Tourism Secretary Sujit Banerjee, Indian travel veteran Arjun Sharma, aviation professional Kamal Hingorani and cricket commentator Charu Sharma. Each one spoke about how the downturn could be managed. There were varied opinion and a whole lot of recipes.

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And, at the end of it all an audience that kept on asking for more.

Ties for business The Bangalore convention also signalled the fact that IATO had moved out of its India moorings into the world. At the convention, IATO Chief Vijay Thakur signed a Memorandum of Understanding (MoU) to be a strategic partner of the

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US-based NTA. Lisa Simon who signed the MoU with Thakur explained what the new relationship between the two association would mean and how it would bring value to members. “The signing of the MoU begins a partnership between the two travel organisations that will help to facilitate business between the associations’

No coffee in Karnataka

Karnataka Governor H R Bharadwaj, who came with his wife, on the second day of the convention, made it clear that the state had a number of tourist facilties. He complimented the officials of the tourism department of the state and said, “Between the Karnataka tourism, Karnataka State Tourism Development Cor-

Recounting his travels by road within the state, the Governor said that he had often felt that “we can do better” in providing high quality food to our travellers. “Karnataka,” said the Governor, “has a very good countryside, but we do not find many roadside facilities. During a trip to Sringeri, I could not get a cup of coffee though I travelled through coffee estates.

More attention should be given to having wayside amenities at a reasonable distance.”

Showcasing Karnataka

VIGNETTES FROM THE CONFERENCE: (Clockwise from top left) Karnataka Governor with IATO President Vijay Thakur (extreme left) Arjun Sharma and Arun Anand being escorted to the convention venue; the Governor receiving a memento; NTA President Lisa Simon is all smiles after the signing of MoU with IATO; K Viswanath Reddy, Director, Department of Tourism, Karnataka receives a memento from IATO's Arun Anand; IATO office bearers with Karnataka tourism officials pose for a photograph; and, Arvind Singh Mewar inaugurates the travel exhibition which took place during the convention.

While the Governor’s visit to the convention brought out the cultural extravaganza of Karnataka, the event provided the state’s tourism department to publicise the destinations, facilities and infrastructure.

As Principal Secretary, Tourism, K Jothiramalingam, said, “Today, Karnataka is among the top destinations in the country being considered for a holiday. After doing much groundwork in terms of developing destinations and attracting new players into the industry over the years, this is a welcome opportunity for us to showcase the destination in a new light to the prime tourism consultants and opinion makers in the country. This will help us connect better with the consumer in times to come.”

Giving him adequate support was the state’s Tourism Director, Viswanatha Reddy: “The IATO members together account for about 85 per cent of all incoming international arrivals into the country. This is our opportunity to showcase Karnataka and present to them the various opportunities that are there for travellers today.”

Announcements aplenty

members. Both IATO and NTA members service inbound and outbound travel, making this partnership broadly advantageous,” Simon said.

The MoU had come, Simon said, because IATO members were interested in building relationships with NTA members. “We are confident that this partnership will reap new business to and from India,” the lady pointed out.

poration and the pioneering Jungle Lodges and Resorts, interesting tourism properties and facilities have been established across all major tourist destinations.” He did not forget to mention the Golden Chariot, Karnataka Tourism’s first super-luxury train.

However, there was something missing, he said. What the state lacked were places for quality food and coffee.

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The convention was the perfect forum for announcements. So, while Air India Chief Arvind Jadhav made it a point to announce that the carrier planned to increase its flights to the North-East to around 1,000 a week in three years from the current level of around 65. “We want to accord special focus to the North-East region, as part of our programme to provide better connectivity to tier-II towns in a manner which is affordable,” Jadhav said.

Meanwhile, Karnataka’s tourism officials announced that a southern permit for tourist taxis on the lines of the national permit could come about on one condition. If the other southern states — Tamil Nadu, Kerala and Andhra Pradesh — agreed to issue such a permit for a specified number of tourist taxis, Karnataka would accept such a proposal.

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DOMESTIC AIRLINES SpiceJet privilege pass programme launched SpiceJet has launched the SpiceJet Privilege Pass Programme under which travellers can now avail special benefits from partner hotels on presentation of their SpiceJet boarding pass.

With the launch of this unique programme, guests travelling on SpiceJet can avail either complimentary meals worth Rs 1,500 or a discount of Rs 500 on their total billing during the

SpiceJet woos passengers with special benefits.

stay. The partner hotels for this programme include Trident Hotels, Ista Hotels, Keys Hotels, Pride Hotels, Maidens Hotels, Rain Tree Hotels, JHM Interstate and The Park.

Announcing the programme, Anish Srikrishna, Senior Vice President, Marketing, SpiceJet Limited, said that the move was yet another value-added offer for the carrier’s guests. “Reserva-

O2 Spa is new star attraction at Mumbai PASSENGERS departing from the International Terminal of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai, can now look forward to getting their trip off to a relax-

O2 spa at CSIA, Mumbai is a treat for the senses.

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tions can be made in the normal way on the respective hotel’s reservation page. Guests can avail the exclusive offers by presenting their SpiceJet boarding pass on arrival at the participating hotels.”

Enhanced customer experience remains the core of all programmes at SpiceJet. Various customer initiatives have been recently introduced — complimentary supervision of unaccompanied minors; complimentary web check-in; hot beverage and combo meals available for sale; two-bag waiver for guests connecting on SpiceJet within 24 hours of international travel; and waiver of additional charges on sports kits.

Survey puts SpiceJet in big leagues: SpiceJet has been recognised among the top ten budget airlines in Asia, based on the results of “Best in Travel Poll 2009”, an online survey on budget airlines conducted by Smart Travel Asia magazine, which is a online travel magazine for Asia read by over 10,00,000 visitors annually.

This is the second successive year that SpiceJet has received this recognition.The consumer poll was conducted from May to July this year amongst the readers of Smart Travel Asia, travellers with the knowledge and passion to make critical judgments.

More Goa touchdowns by SpiceJet: SpiceJet has introduced more flights into Goa from Mumbai and Bangalore before the festival season. From September 11, 2009, new flights connecting Goa and Mumbai have started, while those from Bangalore to Goa will start operating from October 25, 2009.

With these new flights, SpiceJet’s daily departures will increase from 125 to 129 by the end of October. Samyukth Sridharan, Chief Commercial Officer, SpiceJet Limited, said: “We have been getting encouraging loads between Mumbai and Goa and hence, we have enhanced our connectivity by adding an extra flight. Bangalore-Goa connection is being reintroduced based on customer feedback. These additional flights into Goa will give the festival season an additional boost.” ing start with renewed energy levels. In line with providing passengers with new and exciting options to keep themselves busy while waiting for their flight, Mumbai International Airport Pvt Ltd (MIAL) has now opened the new O2 Spa. Conveniently located in the departure area of the international terminal, passengers can now look forward to some rejuvenating massages and therapies for the feet, neck and back, skin and body post completion of both immigration and security formalities. With this, passengers can also pamper their feet, tingle their senses and relax those tired muscles at the spa by treating themselves to a beautifying manicure, pedicure and facial. They can also opt for the immensely popular and traditionally therapeutic fish foot therapy, which will be introduced shortly. Meanwhile, the spa is wellequipped with five comfortable chairs for foot massages and five specially designed chairs for neck and body massages.

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IndiGo expands to Dibrugarh

GoAir’s gifts for every booking

IndiGo has recently expanded its network with the launch of Dibrugarh as a new sector. The new round trip services from Dibrugarh to Kolkata and New Delhi came into effect from September 16, 2009. With this expansion, IndiGo will operate 147 daily flights connecting 20 destinations.

Speaking on the launch of the new destination, Aditya Ghosh, President IndiGo said, “Dibrugarh holds a lot of Aditya Ghosh promise for us. We are happy to expand our network to the city and immediately connect it to key sectors like New Delhi and Kolkata. We are also fulfilling our promise of a fourth flight between New Delhi and Kolkata.”

GoAir recently announced a reward programme for its customers with an option of an assured free gift worth Rs 3000 for every booking. The offer, under GoPromo, has become effective from September 2, 2009 and was available for booking till September 20, 2009. GoAir gave its customers, under this offer, the leisure of choosing their travel date upto March 31, 2010. Keeping in tune with the festive season, this offer was brought to the GoAir customers in association with Value4Money which is the airline’s onboard shopping partner.

Commenting on the offer, Jeh Wadia, MD GoAir said “Our promotional offers over the last few months have been much appreciated which can be seen in our growing load factors. In our

Award for Air India Air India’s Hindi magazine — Vimanika — was adjudged the Best House Journal of PSUs/Undertakings by the Ministry of Home, Government of India, for 2008-09. President Mrs Pratibha

endeavour to make travel by air an experience to remember, we announced another unique offer where every single booking through our website, call center or ticketing counter was assured a high value gift.”

Jet Konnect to fly to metros Jet Airways has plans to introduce its no-frills Jet Konnect on its off-peak hour flights on metro routes. The move has been initiated to contain losses.

According to Jet Airways, the move will come in the next few months. This had been done because there was very little demand for business-class even on busier metro routes.

Jet Konnect currently operates 130 flights across the country with a fleet size of 11 B737s. Six more aircraft will be diverted from Jet’s full-fare service to Jet Konnect taking the fleet size to 17. Jet Airways has experienced a 20-25 per cent increased load on flights operated by Jet Konnect.

DIAL contract for communication platform at new terminal Arvind Jhadav, Chairman and Managing Director, Air India, receiving the first prize for Best House Journal of PSUs/Undertakings from President Mrs Pratibha Patil.

Patil presented the first prize to Arvind Jadhav, Chairman and Managing Director, Air India, at a function in Vigyan Bhawan, Delhi recently. Last year, Air India had won the second prize in the same category.

Air India ties up with SIA: Air India has expanded its partnership with Singapore Airlines, by entering into an FFP agreement, in addition to the existing code share and interline arrangements. The frequent flyer programme members of both airlines will now be able to earn and redeem mileage points on flights operated by each other.

Effectively, it means that members of Air India’s frequent flyer programme — Flying Returns — will be able to earn mileage points when they travel on Singapore Airlines network, or can choose to redeem their mileage points on Singapore Airlines, which operates to over 65 destinations in 35 countries.

Likewise, members of Singapore Airlines’ frequent flyer programme — KrisFlyer, will have the option of using their miles on Air India flights or earning miles when they fly on Air India. “Air India is pleased to enlarge the scope of its partnership with Singapore Airlines, which will be of immense benefit to the FFP members of the two airlines. Members will now enjoy even greater opportunities of earning and redeeming their mileage, on a single FFP membership card”, said Arvind Jadhav, Chairman and Managing Director, Air India.

To offer airport visitors the best infrastructure in terms of connectivity, the Indira Gandhi International Airport is going to be the first in country to provide innovative telecom solutions, enabling all operators to provide coverage on shared infrastructure.

Infrastructure equipment company Quippo Telecom Infrastructure (QTIL) has bagged the contract with airport developer Delhi International Airport Ltd (DIAL) to provide a ‘neutral in-building communication solution’ at the airport’s upcoming integrated Terminal 3. The under-construction Terminal 3 will have WiMax and Wi-Fi technologies with the help of Quippo, in collaboration with Ericsson as technical partners, a DIAL spokesperson said.

Outside view of Indira Gandhi Internatinal Airport.

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INTERNATIONAL AIRLINES Changi welcomes Kingfisher THE passengers of the first Kingfisher Airlines flight from Mumbai to Singapore Changi airport were welcomed onboard the flight. The start of Kingfisher’s operations at Changi Airport signalled the airline’s confidence in the traffic growth potential between Singapore and India.

flight of Kingfisher Airlines out of Hong Kong, several dignitaries gathered at Hong Kong Chek Lap Kok Airport. Prominent among them were Stanley Hui Hon-chung, the CEO of Airport Authority Hong Kong, A K Ravi Nedungadi, Director, Kingfisher Airlines Limited, who is also President and CFO, The UB Group, and Siva Ramachandran, Vice President, Global Sales, Kingfisher Airlines Limited. The maiden flight of Kingfisher was welcomed by Howard Eng, Executive Director, Airport Operations, Hong Kong International Airport.

Kingfisher touches Bangkok from Kolkata: Kingfisher Airlines has expanded its international network with the launch of a new route connecting Kolkata with Bangkok. The inaugural flight was flagged off by a host of dignitaries —Manop Mekprayoonthong, Consul General of the Royal Thai Consulate General in Kolkata, R Srinivasan, Airport Director (Eastern) — Airports Authority of India, and Vijay Arora, Head of Sales All India, Kingfisher Airlines Limited.

The inaugural flight was welcomed at Bangkok Airport.

Bangkok is the fifth international destination of the airlines after London, Colombo, Dhaka and Dubai.

Malaysian drops fares The Mascarenhas’ family were the first to receive their boarding passes and one free return air-ticket for Kingfisher Airlines’ inaugural SingaporeMumbai flight. Photo shows the family being greeted by Rajesh Verma, Executive Vice President, Kingfisher Airlines Limited and Siva Ramachandran, Vice President, Global Sales, Kingfisher Airlines Limited along with Tan Lye Teck, Executive Vice President, Corporate, Changi Airport Group.

Dr Vijay Mallya, Chairman and CEO, Kingfisher Airlines Limited, thanked Changi Airport Group for the welcome, while Lee Seow Hiang, Chief Executive Officer of Changi Airport Group commented that the arrival of Kingfisher Airlines to Changi enhanced the strong air links between India and Singapore.

Kingfisher flags off inaugural flight to Hong Kong: Kingfisher recently flagged off services between Hong Kong and Mumbai with its inaugural flight taking off from Hong Kong’s Chek Lap Kok airport. To commemorate the departure of the first

MALAYSIA Airlines has introduced some enticing airfares with discounts up to 47 per cent to 35 cities worldwide. The airlines will woo travellers from August 16, 2009 to January 15, 2010.

Malaysia Airlines, Regional Manager, South Asia Region, Azahar Hamid said, “With worldwide discounts, we are confident that our tickets will be snapped up very quickly.”

Those travelling from India can take their flights from the five cities: Delhi, Mumbai, Chennai, Bangalore and Hydera- bad. The Delhi to Kuala Lumpur/ Penang fare has been kept at Rs 16,224, Langkawi at Rs 18, 625, Singapore at Rs 16,981 and Hong Kong at Rs 18, 146. Similarly, from Mumbai, travellers can take advantage of the seven weekly flights on return airfares to Kuala Lumpur at Rs 14,807, Langkawi at Rs 17,398, Penang at Rs 16,872, Singapore at Rs 15,544, Bangalore/Phuket at Rs 18,800, Bali at Rs 23,999 and Hong Kong at Rs 18,288.

Azahar added: “In line with our aim to be the world’s five-star value carrier, passengers can experience quality service onboard Malaysia Airlines flights with our award winning cabin staff, while enjoying affordable fares.”

SilkAir’s photo contest

The first guest to receive his boarding pass for Kingfisher Airlines’ inaugural flight from Hong Kong to Mumbai, Wong Kwan Lok, was greeted by A K Ravi Nedungadi, Director, Kingfisher Airlines Ltd and Airport Authority Hong Kong CEO, Stanley Hui Hon-chung.

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SILKAIR is calling photographers to take part in its international online photo contest: the SilkAir Destinations Photography Competition.

The online competition at www.silkairphotocontest.com invites entrants to submit photographs taken at any of SilkAir’s 31 exquisite destinations, among which are Kochi, Thiruvananthapuram, Coimbatore and Hyderabad along with Chiang Mai, Phuket and Singapore.

SilkAir wants to encourage participants to discover the beauty and uniqueness of all the destinations that it flies to. Entries

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should be submitted between August 24, 2009 and December 24, 2009. Photos can be in colour or black-and-white, shot either with a digital camera or with conventional film camera. Participants will be required to pay an entry fee of US $5 for entering one image; US $10 for entering up to three images; and US $15 for entering up to six images.

“We decided to launch this contest through an online platform, as it has the ability to reach out to a diverse international audience. We hope that while snapping photographs for the contest, participants will be able to enjoy and immerse themselves in the beauty of our destinations,” said SilkAir’s Vice-President Commercial, Alvin Seah.

Cathay Pacific launches CX mobile application CATHAY Pacific Airways has launched CX Mobile application on Blackberry and Windows mobile. This recently launched application has already proved a big hit among users. The service allows customers to check flight arrivals and departures, check-in for their flights, read about the place they are flying to using ‘city guides’, and access all mobile services at m.cathaypacific.com.

In addition, there is one new feature — ‘meet the team’ — specially designed for iPhone users, which provides profiles and pictures of the Cathay Pacific team that helps to deliver the kind of service that led to it being named “Airline of the Year 2009” in the latest Skytrax survey.

Cathay Pacific Manager Marketing Communication Celine Ho said, “We are the only airline to offer a mobile application for so many different platforms, enabling us to reach out to more customers. The application has already proved very popular and we are pleased that an increasing number of frequent business travellers are carrying the Cathay Pacific brand in their pocket. We intend to stay ahead of the game in offering the most relevant technology and mobile solutions to make our loyal customers’ journeys even more hassle-free.”

Continental co-hosts first-ever FAM trip to the US IN an effort to promote US as a top-notch luxury destination, NYC & Company, the official marketing, tourism and partnership organisation for the City of New York, and Walt Disney World Resort hosted a seven-day Familiarisation trip to New York City and Walt Disney World Resort with the support of Continental Airlines. Kuoni, Cox & Kings, Thomas Cook, Vacation Exotica, Riya Holidays, Yatra.com, FCM Travel Solutions, Dewan Holidays participated in the FAM. Representatives of AVIAREPS India and Continental Airlines escorted the FAM. The FAM arrived in New York City in August and spent three days in NYC, visiting prominent attractions, Hotels, restaurants, entertainment shows in the city absorbing the vibrancy and energy of New York City. Special tours like the NYC Movie and TV site were also undertaken to help tour operators experience and see the sites of various TV and Hollywood movies like Spiderman, Friends etc.

The FAM group later proceeded to Walt Disney World Resort for four days where they visited the four theme parks: Magic Kingdom, Epcot, Disney’s Hollywood Studios, Disney’s Animal Kingdom Park experiencing high quality entertainment, show, exhilarating rides and attractions.

SIA and Airbus agree to new A380 deliveries SINGAPORE Airlines and Airbus have agreed on a revised delivery schedule for eight A380 aircraft on firm order.

Under the new schedule, deliveries will take place between 6 months and 12 months later than originally planned. The revised schedule will see the twelfth aircraft delivered in October 2010 rather than April 2010, while the nineteenth aircraft will be delivered in January 2012 rather than January 2011.

SIA currently operates nine A380s twice a day to London, and daily to Sydney, Tokyo, Paris, Hong Kong and Melbourne.

Virgin Atlantic moves to boost global brand VIRGIN Atlantic has appointed Rainey Kelly Campbell Roalfe/Y&R and its affiliates to handle its global advertising account. Two other leading agencies, GyroHSR and OMD, have also been appointed to handle Virgin Atlantic’s below-the-line work and media buying on a global basis.

Paul Dickinson, Sales & Marketing Director for Virgin Atlantic, said: “We have conducted a thorough review of our global advertising needs and concluded that Rainey Kelly Campbell Roalfe/Y&R and its affiliates will continue to help build our global brand consistency. We have been very well supported by local agencies around the world for some years, but believe the time is right to focus our strategy as we plan for a new phase of growth.”

Rainey Kelly Campbell Roalfe/Y&R helped developing Virgin Atlantic’s successful 25th birthday campaign earlier this year and have won a string of awards for their work with the airline over the last fifteen years.

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SNIPPETS Emirates to partner Indian Open for third year in a row CONTINUING its commitment to sport in India, Emirates has announced its association with the 2009 Hero Honda Indian Open.

Emirates will be the official airline of the event for the third consecutive year, which will tee off at the DLF Golf and Country Club in Gurgaon — the satellite city to India’s national capital, New Delhi — from October 8-11, 2009. The Hero Honda Indian Open is the country’s longest-running and richest golf event with a prize purse of $1.25 mn.

China’s Liang Wen-chong will return to defend his title along with some of the leading players on the Asian Tour, including Indian star Daniel Chopra.

Bolstering an already impressive portfolio of leading international golf tournaments, in addition to the Hero Honda Indian Open, Emirates has also added the Thailand Open, Barclays

mal space to work, sleep or relax while enjoying the latest entertainment and exclusive amenities.

Once the entire modification is complete, customers can expect consistent lie-flat seating across the carrier's entire international fleet of B767, B747 and B777 aircraft. Passengers can experience this state-of-the-art product by United on flights connecting through Amsterdam, Frankfurt, Zurich, Geneva, London Heathrow, Bangkok, Singapore, Tokyo to name a few.

The new United First Suite is nearly three inches wider than the existing United First Suite and reclines to multiple angles or serves as a fully flat 6-foot, 6-inch bed. Each suite offers a cutting-edge entertainment system providing a 15.4-inch widescreen flat panel monitor with an on-demand digital video and music system that offers multiple selections of movies, TV programmes and video games

Amadeus attains ISO Certification

Emirates is now the official airline of 13 golf tournaments, including the HSBC Champions in November which will feature Tiger Woods and a host of other star players.

Singapore Open and Australian Open Championships.

The airline now sponsors 13 tournaments across the six continents, it flies to non-stop from Dubai.

Emirates is also the title sponsor of the Kings XI Punjab, who are one of the eight cricket franchisees of the Indian Premier League, based in Mohali, representing a huge catchment area of Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir.

Orhan Abbas, Emirates’ Vice President, India and Nepal, said: “Emirates is a strong supporter of sporting events across the world. The alignment with the IPL team in India, presented us with the opportunity, to further penetrate into the market and create awareness for our brand through a sport considered to be a religion in India. Having tapped two of the most widely appreciated games, we hope to be able to connect with a wider audience in India and gain greater appreciation for the Emirates brand.”

United says the world is truly flat UNITED Airlines is upgrading its international First and Business Class products. This will provide passengers flying United Airlines with more privacy, personal space and added comfort on overseas flights. United currently has completed conversion of their entire B767 fleet, with 22 of the 24 B747 aircraft complete.

With this transformation, United Airlines will be the first US carrier to offer fully lie-flat beds in Business class on overseas flights. The new seats have been designed in order to be an opti-

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AMADEUS India Pvt Ltd has recently received ISO 9001:2008 certification from Det Norske Veritas (DNV), recognising the company’s dedication to a systematic approach to quality standards. Amadeus India is the first and only GDS in India to receive this certification.

Rakesh Bansal, Chief Executive Officer, Amadeus India Pvt Ltd said, “Amadeus has always been committed to serve its customers based on global standards and practices, offering unified services across our offices and complying with international standards and regulatory requirements. This certification is a step towards offering assurance to our customers and stakeholders in our products and services.”

The ISO 9001:2008 certification, released on November 10, 2008, is an upgradation of the ISO 9001:2000 certification that Amadeus India has been maintaining since 2001. The upgradation will assist Amadeus India in better service delivery and improve the root cause analysis and subcontracting processes of the company.

APPOINTMENTS Turkish’s new manager for Western & Southern India TURKISH Airlines has announced appointment of Amit Mathur, Manager Sales, for its Indian operations in western and southern region. He will be responsible for augmenting airline’s revenue and sales in India and in turn, establish Turkish Airlines as a leading network carrier out of Istanbul.

A management graduate, Mathur has over a decade long experience in selling GDS and airlines products prior to Turkish Airlines. He was with Jet Airways as Manager — Sales based in Mumbai and Amit Mathur before that he was working with Galileo as Manager Sales for Western India.

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SYMPOSIUM ON AVIATION COOPERATION Groundwork for cooperation The recent air transport symposium, organised by Foundation for Aviation and Sustainable Tourism (FAST), with the active support of Ministry of Civil Aviation, Airports Authority of India, Air India, Directorate General of Civil Aviation and Pawan Hans Helicopters Ltd saw the participation of industry movers like

1. (L to R) Praful Patel, Minister of State (Independent Charge) for Civil Aviation; V P Agrawal, Chairman, Airports Authority of India; Lt. Gen. K M Seth, President, Foundation for Aviation and Sustainable Tourism; Roberto Kobeh Gonzalez, President, International Civil Aviation Organisation; M Madhavan Nambiar, Secretary, Ministry of Civil Aviation; Dr Nasim Zaidi, Director General Civil Aviation; and R K Tyagi, Chairman and Managing Director, Pawan Hans Helicopters Ltd. 2.

(L to R) Klaus Geil, Directorate General for Energy & Transport, European Commission; Folasade Odutola, Director Air Transport Bureau, International Civil Aviation Organisation; M Madhavan Nambiar, Secretary, Ministry of Civil Aviation; Ajay Prasad, Former Secretary, Ministry of Civil Aviation; and Carlos Grau Tanner, Director - Govt. & Industry Affairs, International Air Transport Association. 3. (R to L) Gurcharan Bhatura, Director General, Foundation for Aviation and Sustainable Tourism; Dr Nasim Zaidi, Director General Civil Aviation; Dato Bashir, Managing

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ICAO, IATA, ACI, CANSO, FAA and European Commission.

The symposium’s objectives were to bring together all Asian airports, airlines and regulatory bodies, show the need and possible ways for the Asian aviation industry to move forward, with providing a global perspective on international air transport liberalisation.

Vignettes from the symposium.

Director, Malaysian Airports; and Vijay Poonoosamy, Vice President - International Affairs, Etihad Airways. 4. (L to R) Roberto Kobeh Gonzalez, President, International Civil Aviation Organisation; Dr Nasim Zaidi, Director General Civil Aviation; M Madhavan Nambiar, Secretary, Ministry of Civil Aviation; and Lt. Gen. K M Seth, President, Foundation for Aviation and Sustainable Tourism. 5. (L to R) M Madhavan Nambiar, Secretary, Ministry of Civil Aviation; Gurcharan Bhatura, Director General, Foundation for Aviation and Sustainable Tourism; Klaus Geil, Directorate General for Energy and Transport, European Commission; and Dr Nasim Zaidi, Director General Civil Aviation. 6. (L to R) V P Agrawal, Chairman, Airports Authority of India; Daniel Hanlon, Principal Representative, Asia-Pacific Region, Air Traffic Organisation, Federation Aviation Administration; Alexander Ter Kuile, Secretary General, Civil Air Navigation Services Organisation; and Roberto Kobeh Gonzalez, President, International Civil Aviation Organisation.

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2009 TAAI CONVENTION SPECIAL

TAAI

FITTEST TO FORGE AHEAD INDIAN TRAVEL CONGRESS

INDIA@ DUBAI To be held for the first time in the Middle East, the forthcoming Indian Travel Congress aims to showcase Indian tourism potential

TAAI President Rajji Rai speaks out on what the Dubai convention aims to achieve and the manner in which the travel sector will tackle the growth

FOREIGN NTOS

FOCUS ON INDIA

Keen to get Indian visitors, tourism organisations from USA, Britain, Ireland, Australia, Sri Lanka and many others are on a wooing spree

HOSPITALITY

HOTELS ON THE MOVE New software to enhance competitive edge and the first conference on hotel operations coming up in December

TRAVEL PROVIDER

GALILEO IS 15

Travel content provider and a technology leader serving travel companies, Galileo has spent 15 years in India helping the travel industry

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SPECIAL FEATURE

15

Galileo Marks its

th

G

alileo, the leading Global Distribution System (GDS) in India, marks its 15-year anniversary, officially distributed by InterGlobe Technology Quotient (ITQ) in India; Galileo commenced operations in 1994 and has grown to becoming one of the leading technology and content providers to the Indian travel industry.

From being the first GDS to launch a booking and reservation tool in India based on a Graphical User Interface (GUI), Galileo today, has have a vast network spanning over 333 cities with 23 dedicated offices.

The company boasts of establishing

Anniversary in India the first truly integrated content, covering more than 450 airlines, 52 low cost carriers, 23 car rental companies and 83,000 hotel properties worldwide which can be accessed on the Galileo Core System.

Celebrating this momentous occasion, Mr J B Singh President and CEO, Galileo in India, said, “Today marks a very important milestone for Galileo, having had a fifteen year long successful journey in India. Over the years, the company has

Galileo’s mSmart to allow instant payments via mobile Galileo has become the first Distribution System (GDS) in the country to implement mobile phone payment solution called the mSmart service which allows agents booking services like flight/rail/bus tickets, hotel rooms, holiday packages and more to collect payments from their customers from wherever they are. The service is powered by PayMate, one of India's leading mobile payments company and is available to more than 5,000 travel agents and a further 11,000 travel outlets. Some of the key benefits of using mSmart include:

Customers can now pay their travel agents using their credit cards over their mobile phones without having to be physically present to swipe the card.

Travel agents can collect payments almost instantly. It is also an inclusive service that works on the simplest mobile handset and across all operators with no GPRS required.

The Interactive Voice Response (IVR) based transaction platform makes it easy-to-use by entering credit card details over the secure IVR call through phone’s keypad to complete the transaction.

This product will be particularly relevant to customers living in remote areas who face the inconvenience of making cash or cheque payments to travel agents. mSmart service directly addresses the pain of cash and cheque collections, something small businesses can well do without. Electronic Payment collections are a boon to any business; they add much needed efficiencies and transparencies and lower operational costs in the near to long term, which ultimately reflects in the bottom line, apart from the huge convenience factor and customer delight.

This product will also empower consumers in Tier-3, 4 and 5 cities who have disposable income but lack the physical presence of travel agencies of choice.

With the launch of this new solution, Galileo continues with the legacy of providing truly innovative technology to facilitate convenience to its travel partners.

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innovated its technology offerings to meet the dynamic needs of the Indian travel industry. We have had many firsts to the company’s credit and would like to thank our customers and partners in showing consistent faith and encouragement over the years.”

“India has a continued growth in the domestic aviation sector, travel intermediaries and technologically-inclined travel agents; a reason, why Galileo sees India as a land of great opportunities to be a front runner in adoption of new technologies to enhance efficiencies. It is our constant endeavour to partner with our customers and help them use technology effectively to impact real time revenues,” he added.

Looking back at the past fifteen years of Galileo in India, there have been several milestones which have placed it as a preferred global distribution service.

In 1999, Galileo was the first global distribution system in India to offer domestic ticketing with Jet Airways airline.

Galileo was also the first to offer an automated ticketing solution in India, starting with Jet Airways. This eliminated the need to write tickets manually, saving travel agents in India an estimated 18,000 man-hours each year.

Over the years Galileo has constantly evolved its products and services to suite the local needs of Indian travel agents.

Products, like Galileo Budget Hotels and Galileo mSmart have been created, especially for the Indian market to enhance efficiencies and improve the service offerings of its partners.

With a strong lineage of Travelport and Galileo International, the localisation and global expertise put together create a unique and compelling proposition offered by Galileo India.

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F E A T U R E

Incredible India will create its magic in

Dubai

TAAI’S INDIAN TRAVEL CONGRESS IS ALL SET TO REVEAL NEW FACETS OF INDIA

Photo Courtesy: en.wikipedia.org

hose of us, who have travelled to Dubai in the past two decades, would come and tell a different story each time on return. Initially, it was nothing but the glittering Gold Souk.

Then it was about industries at Jebel Ali. High rises slowly started sprouting, including Media City and Internet City, in the vast desert plains that demanded numerous skilled and unskilled workers. The need arose for white-collar workers to manage all these frenetic activities.

In short, it was an El Dorado in the Middle East attracting hordes of people of all hues and nationalities. Not any more though. The economic meltdown has severely impacted the pace of growth.That said, one should not take away the credit from the rulers for transforming an obscure pearl fishing village astride the creek into a futuristic city.There has been vision and will in planning and execution of

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projects to be the world’s best.

A few old landmarks still exist: The Gold Souk is still there but has lost its lustre. The Spice Market in the next alley retains the old touch while struggling to keep pace with attractively packaged spices stocked in the malls. The first high rise, WTC tower, is now surrounded by modern glass-and-chrome towers. Apart from these, each year a new landmark is created. And this transformation is to be seen to be believed.

This year, the annual convention — Indian Travel Congress by Travel Agents Association of India (TAAI) is being held in Dubai. Why Dubai and why not in India? “Many have asked this question, including our own members. I counter questioned them why not Dubai?” says Rajinder Rai, President,TAAI.As a matter of practice,TAAI does not hold convention in the same city on two successive years. Last

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year, it was held in Hyderabad and this year, the convention committee had to select a new place.

“The logistics involved in holding a convention, where 2,000 or more are expected to attend, is mind-boggling. It is not merely the convention hall capacity, but accommodation, transportation of members from hotels to the hall, liaison with host city and many more things,” mentions R Sunil Kumar, Chairman, Convention Committee.

One Delhi-based travel agent says, “It does not matter where the convention is held.We have plenty on our plate.We have to discuss a number of important issues considering the recession is taking its toll.” TAAI members focus on outbound tourist traffic, while there are no signs of decline in outbound traffic from India. “Just because Indian tourists are travelling ever more each year, there is no place for complacency,” warns Rai. It is no secret that Indian tourist arrival in Dubai is declining each year, while it is growing to the Southeast Asian countries.

There is steady increase to the traditional port of call — the United Kingdom, the United States of America and Canada. “The traditional port of call, as you call it, is still the favourite destination and the reason perhaps, is friends and relative factor while Southeast Asian countries offer value-formoney travel experience,” opines Rakesh Lamba, Delhi-based travel agent.

“The friends-and-relatives factor alone is not an indicator for the steady growth of Indians travelling overseas.There is a desire to see new places and new countries amongst the first time passport holders”, said an executive of Thomas Cook, a major player in tourism sector. He adds,“Most of these countries have plethora of things - long history, historic monuments, jungles and wildlife, modern malls, entertainment et al - on offer to the first time

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TAAI ‘Discussions, planning and networking take place at the Convention’ Rajinder Rai, President, TAAI, on why Dubai was chosen as the convention venue.

TAAI President Rajinder Rai on the Dubai meet and the convention’s focus on foreseeing the travel sector’s growth.

Q A

: What is the consideration in selecting Dubai as the venue for TAAI Convention? : In fact, there were several factors which swung the needle to choosing Dubai as the venue for Indian Travel Congress. Of these several factors, the two most important were a convention hall large enough to accommodate 2,000 participants and lodging facilities for an equal number. The latter may be a bit less since many come with their spouses.

As you are aware, we do not repeat the same venue for successive years. We always look for new venues and a lot of homework goes in and a survey is carried out while selecting a city as the venue.

After Hyderabad last year, Jaipur and Delhi was on our radar. None of these two cities would offer us more than 300 and 400 rooms, respectively. Jaipur does not have a large convention hall, while the convention hall of Delhi’s Ashok Hotel is under renovation.

So, we explored Dubai and to our surprise the Department of Tourism and Commerce Marketing (DTCM), without any hesitation, readily agreed to help us out. I have to admit that DTCM has gone out of its way to make us feel that TAAI delegates are welcome. They are doing a slew of things that would save us enormous expenditure.

Dubai seems to be welcoming you with open arms. Is that the result of an economic meltdown?

It is not appropriate for me to comment on this, but I would like to mention another interesting factor. In the past, travellers holding Indian passports were looked down upon in many countries. That is not the case any more. In this period of recession, our inbound traffic has come down drastically while outbound traffic, from India, is growing steadily. No other country has shown this trend.

I have often been asked during my visit to

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the South-eastern countries — why the recession has not affected India? Countries like Thailand, Malaysia, Singapore or Sri Lanka are inviting Indian tourists with a lot of incentives thrown in. Some have even waived off visa fees to make travel attractive. This summer, these countries were flooded by Indian tourists. In another man-

Q What has been the response from TAAI members about Dubai?

I would be naïve to mention that there was whole-hearted support.

There were strong disagreements and opposition, too. It was my job, as the President of TAAI, to explain the reasons and appeal to their logic.

There is going to be a good response.

ner it also reflects India’s economic growth and power. In fact, our GDP is growing!

The economic meltdown is a reality and given this background, what does the TAAI convention plan to achieve?

First of all, let me assure you that the convention is not a jamboree. A lot of discussions, planning and networking do take place. The travel sector, undoubtedly, is the largest employer the world over and more so in India.There is a place for highly skilled and less skilled alike.

We cannot keep ruing about slackening inbound traffic. Think about domestic tourism. Do you know this financial year would touch double digit growth? There is always an opportunity to grow and it happens, if we can visualise and foresee the future.

Is this the reason for the slogan “the fittest will forge ahead”?

It, definitely is. As I mentioned earlier, we have to visualise and foresee the travel sector’s growth. I regret to mention that our way of working has not changed in the past several decades.We do airline ticketing and perhaps hotel reservations and then feel happy that we have done our job. Have we?

Today’s travel agent ought to be a travel consultant. Do we give our clients valued information for consideration? I would be honest to say that we don’t.

Many of our members have told me that their clients come with lot information which they are not aware of. What does this suggest? It means two things: First, we are not up-to-date with information needed in our profession. Second, clients feel that we are only capable of offering cheap tickets. It does not augur well for the profession’s integrity.

In today’s market, a travel agent has to be a full-fledged travel consultant - from drafting an itinerary, offering tickets, organising visas, hotel reservations, transportation, providing foreign exchange and insurance cover to cater to the special needs of the traveller.

I strongly believe in the resilience of our travel agents to meet these challenges.

— Nandu Manjeshwar

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visitors to experience.” The underlining message is that there is upward trend in disposal income, also a sign of growing GDP. Dubai may not have all these attributes, yet there is increase in tourist arrival, claims Department of Tourism and Commerce Marketing (DTCM). Their recent press release states “Dubai tourism bucked the global trend and rose by 4 per cent to 18, 57,724 in the second quarter of 2009 compared with the same period last year.”

“We consider India a very important market with tremendous potential. In the year 2008, the number of Indian guests in Dubai hotel establishments increased by 20 per cent to reach 4,93,318 compared to the year 2007,” mentions Saleh Mohammad Al Geziry, Director-Overseas Promotions, DTCM. Of the historical monuments in Dubai, Al Fahidi fort and Hatta fort are must-see sites.

The 200-year old Al Fahidi fort, now a museum, is within the city, whereas Hatta fort is 2hour drive away to the southeast. However, while visiting these forts, do not go with visions of Rajasthan forts or forts elsewhere in India at the back of your mind. Hatta is a quaint habitat and with number of food stalls offering local delicacies, is a nice place to have a picnic. If you are looking for antiques, including Hatta handgun with ivory handle, this is the place to bargain for.

Of the beaches, Jumeirah is still popular where anglers and sunbathers are a common sight. It is a delight to see unpolluted sands and azure blue waters. Tourists are taken in a 4wheel drive SUVs driving up and down the sand dunes, though going down the sand dune at times, is scary. The tour ends with “under the stars” barbecue meal and belly dancing entertainment. If one is averse to adrenalin pumping dune bashing, tryout buggy rides.

Earlier it was Dubai Shopping Festival, Indian tourists craved about till they gradually realised that same brands and products could be bought cheaper in Singapore and Thailand. Today, it has 40 malls, 23 in Bur Dubai and 17 in Deira respectively, perhaps offering same shopping experience to the tourists all round the year and one need not wait for the festival season.

In recent years, Dubai is emerging as sports destination in the region holding multimillion dollar tournaments attracting the big names in tennis and golf world, in particular, vying for fabulous prize money. It indeed, is pleasure to see their golf courses, lush green fairways and putting greens contrasting starkly with surrounding desert landscape. Of course, great amount of effort has gone into creating world class golf courses. For the golf enthusiasts of Dubai, the oldest golf course — Emirates is nothing short of St.Andrews or Augusta in stature.

Why go to Alps in Switzerland when you can ski in Dubai! Surprised? Yes, they have cre-

F E A T U R E

‘A new affordable Dubai for Indians’ Chairman, Convention Committee, TAAI, R Sunil Kumar on Dubai opening doors for Indian tourists

How difficult was it to select Dubai as convention city and what were the parameters?

As we explored the various options, we realised that the incentives, our delegates will be benefited by being at Dubai, were immense. It took several discussions with DTCM and their counterparts in Dubai and upon receiving assurances we wished, our managing committee decided that we must go for Dubai.

Our criteria was that our delegates must have the best of hotel options at well discounted prices.

Also, the quality of ambience must be the best Dubai can offer.

And of course, DTCM must be able to offer incentives that are substantial and that would mean good take-home experiences for our delegates, which they are currently honouring.

Surely, India was the option. But as we move forward with Dubai, we now realise that it would have been very tough in getting sponsorships in view of the impact, the recession has left behind.

What help has DTCM given TAAI for the convention?

DTCM has been cooperative. They have inspired us to decide in favour of Dubai and have been well supportive to our convention. They have got Department of Naturalisation and Residency Administration also involved.

How responsive are our travel agents?

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We have had a good response considering the troubled times our industry is going through. Dubai is a very common place which has been visited by Indian Agencies. Thus, our challenge will be to make them experience good sessions, good exhibitions, and great venues for evenings, like DICEC, Atlantis & Intercon Festival City Ball Room and Promenade — all three classy venues that we have got.

Adding to it, we are encouraging them to stay in hotels like Intercon or Crown Plaza Festival City, and The TAJ Palace.

Is there international participation too?

There is definitely some international participation. I keep getting mails and calls. You will find the presence of foreign travel operators there, for sure.

Do they really want Indian tourists to visit them?

Of course, they do want Indian tourists.

They have gone out of the way in ensuring that we have a great TAAI convention.Their desire to ensure our delegates are well taken care of, is in itself ample evidence of promoting Indian tourists to visit Dubai.

Q Finally, what would be the outcome?

The experiences, in my opinion, will be truly outstanding. Quality in events and sessions will be a hallmark.The extravagant offers from Government of Dubai and their support will be quite evident. The delegates will return back with plenty of memories that will go treasured for quite a while.

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TAAI ‘India and Dubai will be proved Good Partners’ M. Iqbal Mulla, Chairman, Marts & Special Events, TAAI hopes for stronger bilateral relations

Indians are treated badly by the Dubai’s Immigration Department. Have they changed their views about Indian visitors now?

I don’t think Dubai immigration is treating Indian tourist badly. Director of Immigration of Dubai office and TAAI has been sharing lots of understanding and co-operation. I also do not foresee any problem for Indian tourist to get a visa.

How was the decision arrived in selecting Dubai as the city for Indian Travel Congress?

Never in the history of Middle East, a travel association has conducted any convention. Therefore, TAAI decided to break the barrier with keeping some significance in glance. We have a wonderful opportunity to showcase India to most cosmopolitan population to attract inbound tourism.

Adding to this, Dubai is very proactive in the development of tourism and provides options of cheaper hotels, world class convention facilities, etc.

Is Dubai relevant in our scheme of things?

Dubai has a cosmopolitan city which attracts tourist from the Middle East countries for inbound tourism and vice versa. Dubai has also more potential to promote MICE, seminars, incentive markets to showcase for our outbound tour operators too.

Each year Indian tourists visiting Dubai has fallen considerably.

Will it improve by holding the convention in Dubai?

One of the primary reasons to hold the convention in Dubai was to attract more tourist form the Middle East and vice versa. We foresee an increase of 35 per cent more tourist visiting Dubai and the Middle East. It will also improve the bilateral relations of both the countries which will help the travel agents in a big way.

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Are Indian travel agents happy about going to Dubai for the convention?

The decision was taken looking at the support from region and chapter Chairman’s of TAAI. The response is slow, but good. I am sure the convention will be successful.

How does DTCM perceive this convention?

DTCM has been very receptive. They encouraged us to take the convention to their country and have also extended 1800 free visas.

Apart from this, they are also giving us support by providing full inaugural function and dinner, many more incentive to make this convention successful.

Q Finally what would be the outcome after this convention?

The outcome will surely strengthen bilateral relations between Indian and Dubai to promote inbound and outbound tourism. I am sure, there will be a 20 to 30 per cent increase of tourist from both the countries.

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PICK OF THE CITY OF MALLS Dubai has always been a shopping paradise.

In the past, it was standalone shops for electronics, audio and video equipments, textiles, readymade garments, spices and not the least, gold. In a matter of decades, the canvas has widened and shopping malls have mushroomed in an unprecedented manner.The count is 40 already. One would wonder why so many mega-sized malls for such a small resident population, after all, the malls would stock similar brands and products. Their target is obviously tourists.

The promoters and architects have veered off staid cubby-holed structures. Most of the recently built malls have unique themes and entertainment features.

The magnificent Dubai Mall, a flagship property of Emaar Mall Group has an aquarium, discovery centre, Olympic-sized ice rink in addition to 1,200 retail outlets. It boasts of the “world’s largest” indoor gold Souk.And, also parking area for 14,000 cars!

While Mall of the Emirates has ski slopes, complete with snow!!

ated Alps ski slopes, of course in controlled environment. It is admirable to notice such creative endeavours in a monochromatic landscape that is Dubai. Metro rail system and monorail would crisscross Bur Dubai and Deira by 2012, to reduce environmental impact from gas guzzling automobiles.

“In our profession, we have to see the plusses of a country than what it lacks.A family can have a wholesome vacation in Dubai and attractions that would satisfy adults as well as children. Our charter is to bring States or countries closer, to understand each other’s requirement so that tourism can grow both ways,” avers Rai.The markets, world over, are now realising that Indians are avid travellers and equally big spenders on shopping

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THE BEST Mall builders and retailers are unfazed by the economic meltdown and their mantra is it go can only get better now onwards!

SOLID FUN AND GAMES ON WATER WITH THRILLS

Dubai creek, that separates Deira and Bur Dubai, is a busy waterway. Even today, many of the passengers prefer boats to cross between these two sides of the city than getting caught in the nightmarish traffic snarls.

Apart from passengers, traffic creek is also a mooring place for dhows. Dhows are traditional wooden boats that still sail across oceans with merchandise.

Smart entrepreneurs now offer cruises in a dhow along the creek a la Thames or Rhine or Seine, but come closer to the canal cruises in Amsterdam.The slow and soothing pace of sailing gives chances to catch the views of past and present architecture on either side of the creek.

The evening cruises provide the most attractive travel-and-fun experience. The “romantic” evening cruises include a buffet dinner, cuisine has either continental or oriental items that come along with soft drinks and traditional coffee. Of course, alcohol is there that served on-demand. There is entertainment too with eye-catcher and expert belly dancers.A 3-hour cruise is well spent.

sprees. Then who wouldn’t want Indian tourists?

Expert travel gurus, economists, bankers, doctors, wellness spa specialists and stressbusters would be talking at the convention.

The invitation has gone to Sri Sri Ravi Shanker too as a few travel agents opine that convention proceedings would progress with a cool head. There is a general consensus amongst members, it is time to think out-of-the-box.“I have been telling our members that we have to embark on a new growth plan.The days of mere ticketing are over. It is time, we widen our horizon and learn to provide valuable inputs,” mentions Rai. Indian Travel Congress when held, especially in foreign shores, gives an opportunity to

GOLF ON THE SAND DUNES

Ever imagined of lush green golf courses amidst sand dunes? The golf courses in Dubai are a treat to watch. Emirates Golf Course is the first championship course in the Middle East.The publicity material eulogises “sparkling like an emerald inlaid with white gems, this flagship of Dubai golfing, appears like a green postage stamp on a very ornate Middle East postcard”. Even the clubhouse is styled in the shape of a Bedouin tent.

Emirates course has another distinction as part of European PGA tournament. Since then, Dubai Desert Classic tournaments has become household name for professional golfers’ world over.

In addition, there are four more golf courses and five more would be added in the next two years. Some clubs are “multi purpose” like Dubai Creek Golf and Yacht Club or Nad Al Sheba is known more for horse racing. Another unique feature here is that any golf enthusiast visiting Dubai can play in any golf course and mercifully, that snob tag that we have here as member of a golf course is not there.

F E A T U R E

A few wrecks, be it manmade or natural, are good sites for reef spotting. A working barge was deliberately sunk, 12 nautical miles offshore under the orders of His Highness Sheik Mohammad Bin Rashid al Maktoum to create an artificial reef. Since the reefs are at a depth of 20 feet or more, there is need for dive card.

SNOW AND SKIING IN THE DUBAI’S HEAT Now, one can enjoy skiing in Dubai. Ski Dubai’ located within Mall of the Emirates is spread in an area of 22,500 square metres having 80 m wide ski slope and descends 35 m with capacity for 1,500. It is operational throughout the year. It has five runs with varying difficulty levels.The longest run is 400 m and a drop 60 m.

The beginners can enjoy gentler slope and if that is a problem, try out snowboarding. The quad-chairlift will take to the top with your equipment.

THRILLING WATER SPORTS AMIDST SANDY EXPANSES Water sport has developed into a good degree of sophistication and competence. It offers wide variety activity options from sailing, parasailing, jet skiing, scuba diving, speed boating to snorkelling, though it has to be admitted that it is the Western tourist who is a keen participant in most of these events.

If one has adventurous streak, try out any of these without any fear since professionals guide you and safety measures are in place.

Waters around Dubai coast has minimal current and safe for beginners. In case of scuba diving and snorkelling, authorities demand recognised dive card or log book, while novices can try sailing or parasailing or speed boating without any fear.

showcase the country in general and the States in particular. Among the States, Karnataka has embarked on aggressive marketing spree and the delegation is led by their Tourism Minister Janardhana Reddy.There is a feel good factor as travel agents opine that there is lot to gain through this convention.

“I have been working closely with the Ministry of Tourism in promoting Incredible India and admit the present secretary is extremely proactive in supporting our endeavour.This time, the emphasis is on wellness spa, ayurveda and medical tourism,” avers Rai. The world has started recognising India’s medical expertise but “medical tourism”, as it is perceived, yet lags behind Thailand and Singapore. “We are yet to recognise as well as

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o

The temperature inside is around -1 C o and -2 C, so prepare for the chilling effect.

Snow Pro shop has the equipment as well as offer advice and instructor to provide first lesson in skiing or snowboarding. If the purpose of the visit is to take in the ambience, then enjoy hot cup of coffee in St. Moritz Café (of Swiss fame) or hot snack at Avalanche Café at mid-station.

Kempinski Hotel, within the mall complex, is a ski chalet type hotel having 400 rooms some of which overlook the slopes.

market our potential,” opined Dr Manoj Aron, medical specialist.

Even medical fraternity has started understanding efficacy of alternative medicines after long years of maligning the system.

Ayurveda, one of AYUSH, is India’s own and practised for centuries and yet not imitated world over like yoga.

We have showcased Himalayas, jungles and wildlife, deserts, beaches, culture, cuisines, forts, centuries old monuments et al. It is time to progress further. It is time to unveil country’s achievements in medicine and medical field. Could there be an ideal opportunity than Indian Travel Congress in unfolding these?

— Nandu Manjeshwar

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TRAVEL & TOURISM

Sri Lanka goes into overdrive to woo Indian visitors RARELY does one come across a destination that is so close to India, and has so much to offer. From the sun-kissed beaches brimming with a bounty of sea life along the coast, a veritable ecological museum further island, ‘the land of thousand dreams’ — Sri Lanka, has always been one of the most exotic global destinations of the world.

In a media conference, Sri Lanka Tourism announced its plans to accelerate its marketing focus on Sri Lanka as the most sought after destination for Indian tourists.With the consecutive growth of Indian tourists in three months — June (8.1 per cent), July (28 per cent) and August (32 per cent), the country is all set to project its unique features to Indian visitors through easy accessibility, state-of-the-art infrastructure and visa-on-arrival facility along with Sri Lankan hospitality. Moreover, Sri Lanka has planned many promotional initiatives, including a three-city road show in India, a move that is expected to attract and generate more Indian tourists to the island. During these road shows, Sri Lankan officials have interacted with nearly 150 travel agents in each city on a one-to-one basis.

Addressing the media, Dilip Mudadeniya, Managing Director, Sri Lanka Tourism Promotion Bureau said, “Our promotional campaign captures the essence of our country. When people see Sri Lanka or think of our country, we want them to be inspired to see a nation united after conflict. It takes our values to the nations beyond our shores, acting both as an invitation and an inspiration.”

“I see India as our biggest source market, as our product offering is very close to what the Indians want. We have some of the best beaches in the region, our cuisines are very much close to what Indians relish, our religious sites, including the 52 Ramayana sites are of tremendous spiritual and cultural interest to a majority of Indians,” added Mudadeniya.

Sri Lanka plans to target three main categories of individuals from India: the youth and young families, upmarket travellers and those seeking spiritual solace.

Sri Lanka Tourism Promotion Bureau (SLTPB) is currently working closely with

RED CARPET FOR INDIAN TOURISTS: At the press conference, to announce the launch of Promotional Campaign - Sri Lanka Tourism Three-city Road Show 2009 (L-R) Vipula Wanigasekera, General Manager, Sri Lanka Convention Bureau; Dileep Mudadeniya, Managing Director, Sri Lanka Tourism Promotion Bureau; and Lalith De Silva, Manager, SriLankan Airlines.

domestic operators as well as several Indian travel agents and tour operators, to come up with specific products, including enticingly priced holiday packages.

The Ramayana trail — identified by SLTPB and Sri Lanka Tourism Development Authority — also has a great value for many Indians. Sri Lanka boasts of over 52 sites that can be traced back through legend to the actual Ramayana, including Ashoka Vatika, where Sita was kept captive, Dunuvila is a place from where lord Rama fired the Brahmaasthram at King Ravana and killed him, all of which are of prime religious importance to a majority of Indians.

“Many religious missions have sent their scholars here and who left were convinced of its authenticity.What makes most of these sites all the more exciting is the accessibility from hotels and lodges, whereby even the elderly and the infirm of faith can easily reach these sites,” said Indrajith De Silva, Assistant Director, SLTPB. The country is also opening doors of its northern and eastern parts, which includes untouched beaches, idyllic villages and cultural treasures. Infrastructure is also being developed with the hope of attracting more tourists to these areas.

Government support for tourism sector and expansion of low-cost carrier services are important factors, which contribute to the growth of the industry. Speaking on this occasion, Vipula Wanigasekare, General Manager, Sri Lanka Convention Bureau, said, “India is our closest neighbour and SriLankan Airlines has a good connectivity from India. Over 75 flights operate a week from 11 ports across India. We are expecting 15 per cent increase in MICE traffic from India. In context to the current business scenario of globalisation, this intimacy proves to be a noteworthy connection with regards to the economic, trade and tourism ties.”

2011 has been declared as “Visit Sri Lanka Year” and for this, a series of activities and events have been planned for 2011 to lure in Sri Lankan sellers wooing Indian travel agents for their products; and (above) a view of Sri Lanka’s coast. more tourists to the island.

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TNSW lays the red carpet for Indian travellers THE worldwide economic meltdown may have restricted travellers from visiting foreign coasts but that has not deterred Tourism New South Wales (TNSW) from reinforcing its strategic commitment to India and launching its inaugural India Mission 2009 to promote Sydney and its surrounds.

A delegation of 23 NSW operators, recently promoted Sydney and its surrounds to over 400 travel agents in the key cities of New Delhi,Ahmedabad and Mumbai from September 14 to September 18, 2009.The mission provided great opportunity for the NSW operators to develop business relationships with key travel agencies and tour operators in India.

Chris Gough, Director, Visit Disney, Tourism New South Wales, said that the largest delegation had visited India to enhance the market for Sydney. He further acknowledged the growing prominence of India as a source market for tourism mentioning that NSW has received 59,175 visitors in March 2009 with an increase of 10.9 per cent from the last year.

To entice Indian travellers, the India Mission showcased new experiences and offerings by TNSW, which included the new range of Accor hotels and the restaurants, specially designed for Indian visitors; the Sydney seaplanes, which would provide a view of Sydney Harbour, Opera House and some other nearby attractions in its 15 minutes flight and the Sydney showboat, offering a panoramic view of Sydney’s amazing Opera House and Harbour Bridge. The showboat also offers an innovative a la carte dining experience with menus, featuring a delicious fusion of style and taste as well as an extravagant show ‘Voyage of Love’ that not only features Australian ballet talent but also shows Indian dances.

Tan Siew Hoon, Regional Director — South Asia, TNSW said that Sydney has a rare combination of excellent facilities with great leisure options. “Even many Bollywood movies like Heyy Babyy and Bachna Ae Haseeno have been filmed there, showcasing the city and its surrounds. In all, the city offers experiences for visitors, from captivating cultural performances to celebrations of fashion, food and wine and nonstop entertainment all day and all night long.”

A group photograph of TNSW team during the launch of India Mission 2009 to promote Sydney.

Stunning Sydney harbour

‘Eat, drink, shop America’ mission THE US Travel association, recently organised its third annual India Trade Mission in Mumbai and New Delhi. It was attended by almost double the number of senior executives from US destinations and travel suppliers as compared to the figures of last year. The executives were here to interact with Indian travel agents. Bryan Lewis, Chief of the Staff for the US Travel Association hoped that the exponential growth in the Indian travel market in recent years and ties between the travel industry of India and US through the mission, would attract more Indian visitors to America.

The purpose of the India Trade Mission was to extend the number of opportunities of coming together for both of the nations to the travel market. A rapid increase in number of Indian visitors to the US in 2008 by 44 per cent from that of 2006, put the efforts of the mission on a positive note.

In 2008, Indian tourists had contributed a sum of more than $4.3 billion to the US economy. Keeping that in the background, the prevailing activities shown by Indian travellers Having fun at sun-kissed beaches of US.

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included shopping (87 per cent), dining in restaurants (74 per cent), sightseeing in cities (43 per cent) and visiting historical places (35 per cent).The mission also focused on branding of easily accessible facility providers so that tours to the US would prove to be a comfortable experience.

The participants of the 2009 India Trade Mission were Las Vegas Convention and Visitors Authority, California Travel and Tourism Commission, NYC & Company, Empire State Building, Choice Hotels, Florida Space Coast Tourism, Kennedy Space Center Visitor Complex, Highgate Hotel, Gray Line Sightseeing, Hotel Beacon, Red & White Fleet, Santa Monica Convention and Visitors Bureau, Tour America and Tours Limited.

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Mauritius wants Indian travellers ENHANCING the Mauritius visibility in the southern and eastern region of India, MTPA organised Mauritius buyer-seller business interaction to woo Indian buyers in the city of Bangalore and Kolkata. A delegation of 20 Mauritius suppliers including tour operators and hoteliers, interacted with the local travel trade cultivating a mutually beneficial business partnership with them.

The business interaction was well received in both the cities with an encouraging response from more than 100 travel agents.

This was a constructive step ahead to build a mutually beneficial relationship with local Indian agents and offer value-for-money holiday options to travellers.

September 2008. the objective has been to promote Indonesia beyond these cities.

“Indonesia has 33 provinces and our target is to promote these provinces and provide more visibility to the Indian traveller to destinations that would hold more interest for them — encompassing shopping, culture, spa treatments and exotic beach destinations. In fact, we are already witnessing a lot more interest for destinations like Lombok and Yogjakarta amongst other destinations,” said Sanjay Sondhi, Country Manager, VITO — India.

Bali, of course has been globally recognised for its world class resorts and besides promoting Bali, which is attracting more and more Indians, the VITO office is also looking beyond.

The idea is to position the country as one where you can soak in the sun, enjoy shopping, rejuvenate in world acclaimed spas and all this in a safe family friendly atmosphere in an enchanting archipelago of 17,500 islands to explore.

Slovenia welcomes Indians

Mauritius suppliers interacting with local travel agents to cultivate their business relations.

Elaborating on the Indian market and future strategy, Kavi Ghei, Indian Market Representative for Mauritius Tourism said,“India is the seventh most prominent tourism source market for Mauritius. MTPA today is keen to invest, grow and open to alliances with our Indian trade partners. With an increased overall budget allocation for the Indian market, the destination marketing initiatives for Mauritius will be tactically driven by both product appeal and price, which is based on the new consumer branding of ‘Mauritius an affordable dream’, bringing to the Indian travellers an international holiday experience at affordable prices for this aspirational getaway.”

SMALL in size, yet brimming with personality, Slovenia is at the crossroads of Europe; where the north meets the south and the east meets the west; where the Mediterranean meets the Alps and the old meets the new.

Slovenia is an independent country, an active member of NATO, and in June 2008, celebrated the end of its term as holder of the ED Presidency.

Known as the bright young child of Europe, Slovenia proudly displays centuries of European customs and historic architecture. Its well travelled inhabitants can converse in English, German, Italian, or the native Slovene.

For the dedicated visitor, there are enough activities, attractions and experiences to keep visitors entertained.

Those planning an extended trip to Europe, will find Slovenia serving a convenient and affordable home base. Compared to its western neighbours — Italy and Austria — the Euro goes a little bit further. Venice, at just under two hours drive away, makes for an easy day trip

Vito-India upbeat about Indonesia INDIA has over the years emerged as an important source market for Indonesia. Initially, it was primarily Jakarta and Bali that the Indian market looked at, but with the opening of the VITO office in

(L-R) Carl Vaz, Chairman & CEO - Charson Advisory, Tone Matjasic, General Manager Panoromic Travel DMC and Rok Klanchik, Director - Slovenian Tourist Board.

Balinese dancers at the VITO-India road show.

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Britain and Ireland move to new collaborations with Indian travel trade VISITBRITAIN, in partnership with Tourism Ireland hosted the Britain and Ireland India Mission (BIIM) from September 7-10, 2009. Led by the new CEO, Sandie Dawe, the mission was organised in Mumbai, Bangalore and Delhi.

Attended by top 18 suppliers from Britain and 11 from Ireland, the B2B workshop, followed by networking dinner in each city, set a platform for the India travel trade to meet and extend business with UK suppliers, to learn about new regions and its products and weave new

Wining and dining in Hong Kong

itineraries to suit the ever-emerging needs of UK market.

The BIIM reflected the ongoing and continuous support to the Indian travel trade by VisitBritain and Tourism Ireland.

Sandie Dawe said that she was delighted after successfully conducting the first overseas trade mission as Chief Executive of VisitBritain. She believed that India was a key emerging market for inbound travel to UK and her team was committed to support the Indian travel trade. According to Dawe, the mission would play a crucial role in inspiring Indian travellers to visit and explore UK. In the BIIM, another key issue on how to retain and increase the number of tourists to Britain and Ireland was discussed. The mission was aimed to bring about a collaboration between the best of suppliers from Britain and Ireland and those in India.

RENOWNED as the ‘Culinary Capital of Asia’, Hong Kong is all set to launch the ‘Hong Kong Food and Wine Year Spotlight Events’, which kick off with a three-day wine and dine festival running from October 30, 2009 to November 1, 2009.This wine and dine celebration features wine appreciation classes, wine tours and walks and International Wine and Spirits Fair 2009. The celebration also highlights Street Carnivals in Lan Kwai Fong and SoHo from November 6 to November 8, 2009.

Wines will be showcased from national and international wineries paired with food from local restaurants and feature colourful culinary personalities. Moreover, events include food district promotion, Sai Kung Seafood Festival, special dining offers and wine promotion.

(Top) Ireland’s Connemara and London’s Big Ben; and, (left) Sandie Dawe, new CEO, VisitBritain.

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The Lalit shows its sporting spirit THE Lalit Suri Hospitality Group under the able leadership of Jyotsna Suri organised ‘The Lalit Suri Exhibition Polo 2009’ at Drass, J&K on August 18, 2009. The state’s Chief Minister Omar Abdullah inaugurated the event at the Viswanathan Stadium in which the local polo team played a match against the visiting team of The Lalit.

The Lalit team was captained by Jai Shergill. Among the others in the team were Angaad Kalhan, Pawandeep (Tony) S Kohli, Ransher Singh with coach Brig V P Singh and well-known polo expert from Delhi — Pradeep (Bogey) Rao. The Drass team was presided over by Mohammed Amin, President Polo PromoTeams playing polo during ‘The Lalit Suri tion Club, Drass.

Exhibition Polo 2009’ at Drass, J&K. The Lalit team won the match and Chief Minister presented the awards and the trophy to the winning team. Speaking on the occasion, he said “We are delighted to see such huge turn out for the game, we laud the efforts of The Lalit Suri Hospitality Group who organised this event.We believe that with the support of private participation, we can achieve development in the valley region.”

Sarovar opens Park Inn Gurgaon SAROVAR Hotels & Resorts has announced the opening of Park Inn, a premium 3-star hotel, in Gurgaon.This is Sarovar’s second property in the city and third in Delhi NCR, after Park Plaza Gurgaon and Park Plaza Noida.

Park Inn Gurgaon offers convenient options for corporate travellers.

Conveniently located in the heart of the city and just 10 km away from the airport, the hotel is an ideal option for business travellers to the city.

Commenting on the opening of Park Inn Gurgaon, Anil Madhok, Managing Director, Sarovar Hotels & Resorts said,“Park Inn Gurgaon

will address the new-age corporate guest’s need for comfort at a great value. Additional value-added services like airport transfers and office transfers within Gurgaon, will make Park Inn a preferred choice of accommodation for corporate travellers.”

Corbyn’s Cove gets a Sarovar: Nestled in the scenic settings of Corbyn’s Cove, the only beach in Port Blair, Sarovar Hotels has launche ‘Peerless Sarovar Portico’. The only beach resort in the city, Sarovar Portico will offer 50 guest rooms and premium cottages equipped with all modern conveniences and facilities ideal for discerning holidayers.

Conveniently located within 8 km from the city centre, the hotel offers 24 hours room service, LCD television, tea/coffee maker, private mini bar, laundry service and internet connectivity.

S K Roy, Chairman, Peerless Group of Hotels said, “Sarovar Hotels with its necessary expertise and pan-India presence, is an ideal choice for managing this hotel and will provide fine hospitality at a very competitive price.”

In addition, Peerless Sarovar Portico has on offer 3 nights/4 days package, featuring two-way airport transfers, welcome soft drink, buffet breakfast, lunch and dinner at Corbyn’s Delight, an evening of Sound & Light show at the Cellular Jail and two half-day sightseeing tours.

Yatra's 'Sabse Sasta’ holidays Yatra.com has rolled out ‘Sabse Sasta’ holidays, beginning at Rs 9,299.

This price is all inclusive of entrance fees, hotel accommodation, airport transfers, return airfares with taxes and buffet breakfast. Introduced as special theme holidays, these packages have been designed on the basis of competitive airfares and hotel rates.

Under this scheme,Yatra.com is offering 12 packages to popular destinations such as Sri Lanka, Malaysia, Dubai, and more at competitive prices.

Speaking on these lucrative packages, Dhruv Shringi, CEO & Co founder,Yatra.com said,“The launch of the Sabse Sasta packages have been primarily triggered by low airfares and hotel rates, a move that has been instrumental in increasing consumer confidence.This factor combined with the key dimensions of quality and affordability, has been the basis of designing these packages.”

Travelport opens solutions labs TRAVELPORT GDS has opened six solutions labs across Asia to better showcase its end-to-end product offering to travel agents, as well as provide customers with a facility to test their own solutions and software.

The Labs have been set up within Travelport offices in Hong Kong, Beijing, Singapore, Manila, Taipei and Kuala Lumpur and replicate a virtual agency, whereby travel agents can experience real time demonstrations of Travelport’s end-to-end soluDemonstrating Travelport’s products in the tions, including online solution lab. booking engines, low-fare shopping, e-pricing, custom viewpoint, Galileo instant messenger and many more.

George Harb, Commercial Director — Asia,Travelport GDS said, “The Travelport solutions lab provides a facility for our sales team to showcase the breadth of our product, offering to prospective customers. Our complete end-to-end capabilities can be demonstrated in real time, providing new agency partners with a more complete picture of our products, solutions and services, and how these can assist with their specific business needs.”

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Past meets luxurious present at WelcomHeritage WITH more than 100 years history, a present and convenient location: that’s Hotel WelcomHeritage Grand Imperial at Agra. Built around 1905, with biscuit bricks — commonly referred to as Lahori bricks, the hotel is a fine example of the colonial style of the early twentieth century. The building maintains the intrinsic character of the Mughal era and is now a fully renovated boutique hotel, with 30 large rooms and suites.

Located in the heart of the city of the Taj Mahal, the Grand Imperial is 2.5 km from the airport and 1.5 km from the railway station. It offers the ideal base for a visit to Agra’s most famous tourist attractions — the Taj Mahal and the Agra Fort — which though only 4 km away, can be viewed from the hotel terrace.

The hotel has spacious rooms with high ceilings, a pillared and arched verandah that runs the length of the L-shaped building.

There are special rooms, old mementos, photographs and macho stories of courage and valour. The carefully recreated interiors have period furniture, including comfortable sofas, antique cupboards and four-poster beds. The hotel has well-kept green lawns and a large swimming pool.

The hotel’s multi-cuisine restaurant is, particularly attractive with Mughal miniatures on the walls, antique wooden sideboards and tables draped to the floor in white damask. Known for its cuisine, a wide selection is served through buffets, a la carte menu and through 24-hour room service. The hotel offers an array of other facilities like conferences and banquets, health club and spa, an activity room and much more.

Exteriors and interiors of Hotel WelcomHeritage Grand Imperial, Agra.

Country Inn ready to celebrate Gandhi Jayanti COUNTRY Inn Hotels and Resorts is offering a special Gandhi Jayanti package that would be valid from October 2 to October 4.The package can be availed at five of its resorts at Bhimtal, Corbett, Sattal, Mussoorie and Kosi — all scenic destinations.

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The packages vary according to accommodation and places from Rs 4,999 to Rs 16,999.

Depending on the range and the places the resorts are located at, the packages include welcome a non-alcoholic drink on arrival, fruit basket and cookies in the room, tea/coffee maker in the room, two nights accommodation on twin sharing basis, buffet meals, treks, musical evenings and the works.

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Hotel prices drop, Mumbai ranks second ACCORDING to the latest Hotel Price Index from Hotels.com, the average price of a hotel room around the world fell by 17 per cent in the first six months of 2009.

While Moscow hotels registered the highest fall of 52 per cent, the prices for hotels in Mumbai registered the second highest decline of 42 per cent.The terrorist attack of November 2008 continued to deter tourists while business travel to the city dropped due to the economic downturn. Other cities that registered steep falls include Auckland (40 per cent); Warsaw (38 per cent) and Singapore (35 per cent). Hotel prices in New Delhi also declined sharply by 31 per cent.

David Roche, President, Hotels.com Worldwide, comments: “We were expecting 2009 to be a year of dramatic price reductions across the world, and so far, it has been. This is by far the most significant movement in prices we’ve seen in the five years of publishing the Hotel Price Index.”

New technology for Indian hotel market UK-headquartered Xn Hotel Systems Ltd, has on offer a range of leading business applications and electronic booking services for the global hotel industry. Entering the Indian market in 2008 through its Indian subsidiary Xn Hotel Systems (India) Pvt Ltd, the company has now established an Indian support office in New Delhi and is in the process of expanding its services in south India via a second support office being Greg Spicer Sanjay Verma set up in Chennai.

Greg Spicer, Managing Director, Xn Hotel Systems India, said “Global projects conducted by the company over the last seven years, have shown that centralisation is one of the most powerful ways to magnify the payback of new technology investments.”

“We have now successfully rolled out Protel Multi-Property Edition (MPE) to nine Lemon Tree Hotels with the data centre being hosted by Tata Communications. Recently, we received a commit-

ment from the Chennai based Raintree Group of hotels who will become our second Indian client. We are delighted to see Raintree adopting both Protel MPE and also our integrated Xn globalRES electronic reservations platform for their hotels,” he added.

Speaking on the initial success of the India operations, Sanjay Verma , Country Sales Manager , Xn Hotel Systems India said, “Successful ‘early adopters’ projects have now materialised into highly successful business and IT case studies. There are now working implementations in many countries, including India, that point to the possibility of delivering the hotel industry a stepped value change in hotel IT investments.”

APPOINTMENTS

Claridges new GM at Surajkund OLIVER C. Martin has been appointed General Manger for The Claridges, Surajkund, Delhi, NCR.The Claridges, Surajkund, Delhi, NCR is a luxury business hotel with a host of environment, friendly features.

He comes with a sound knowledge of hotel operations with over 20 years of experience in the hospitality industry. In his current position, Martin is responsible for the Oliver C. Martin smooth running of hotel operations besides overseeing the launch of Phase II of the hotel, which includes Dhaba, the Indian speciality restaurant, The Claridges Spa and an additional 135 rooms.

Travelport gets Marketing Director MICHAEL Yates has been appointed as Marketing Director,Asia Pacific for Travelport GDS on September 1, 2009.

Yates brings more than 20 years of experience in strategic marketing and communications.

He was previously Vice President for Operations of the Pacific Asia Travel Association (PATA) based in Bangkok. From 1987-2001, he held various roles with the Australian Tourist Commission (ATC) in Australia, New Zealand, Hong Michael Yates Kong and Japan.

First conference on hotel operations HVS, a fully integrated consulting and appraisal global firm focused on hospitality, recently announced a conference,’ Hotel Operations Summit — India (HOSI 2009) to be held on December 18-19, 2009 at Gurgaon.

Manav Thadani, Managing Director, HVS-India and founder of the Hotel Investment Conference South-Asia (HICSA) said,“Keeping in mind the fact that India currently does not have a well-organised conference focusing exclusively on hotel operations, HVS has decided to initiate a conference to serve as a platform for actual hotel operations.”

HOSI will feature discussions on current hotel operational issues, concerns, trends and industry best practices with hotel operational leaders, managers, corporates and hospitality professionals. In addition, it has been designed to provide networking opportunities, high-level operational solutions, content-rich sessions, international quality, qualified speakers and panelists.

In an effort to bring in additional expertise and benchmarks, HVS has created an exclusive association with Lausanne School for two workshops on December 18, 2009. The workshops will be

conducted by foreign faculty who will present sessions titled “Transformations Leadership” and “Developing New Business in a Moody Market”.

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Air New Zealand, Air New Zealand!

MAKE ME A MATCH…

N

ow, if you have a single romantic bone in your body, you will go straight to: www.thematchmakingflight.co m. As the website says: “Welcome aboard to the Matchmaking Flight. This is your chance to be part of history, linking the great North American culture with the natural vibes of pure New Zealand. …you take off on October 13, 2009 to the other side of the world on your amazing journey to find the one.

Air New Zealand have created this community to help North Americans and Kiwis meet up online with people on the other side of the world, that you may otherwise have never had the opportunity to meet. Chance, encounters with potential

dates, friends, travel buddies and even business contacts — that is the aim of this community.”

The bad news is that, the flight is sold out! And, here are the details of what the lucky ones will be doing: On October 13, 2009, Air New Zealand is sponsoring a bash in the LAX lounge before the inaugural take off of the Matchmaking Flight from LAX to Auckland international airport.

The Great Matchmaking Ball in Auckland on arrival And, for those, who are more down to earth, there is the heritage matchmaking trip or the cultural matchmaking trip or the adventure matchmaking trip.

Pick your choice!

MATCHMAKING AT ITS BEST: Snapshots from the website (www.thematchmakingflight.com) that have been posted on the website. The website is an initiative of Air New Zealand, which will enable North Americans and Kiwis to meet online.

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RNI No. DELENG/2006/16897 Posting Dt. 3-4/10/09 Reg. No. DL(E) 20/5294/2009-11