FARNBOROUGH HIGHLIGHTS SPOTLIGHT: AIR INDIA EXPRESS NEWS DIGEST AUGUST 2006
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EDITOR’S NOTE
One last chance
W
hat is the best way of modernising Chennai and Kolkata airports? One doesn't need to be a rocket scientist to know what Civil Aviation Minister Praful Patel wants: a complete break with the Airports Authority of India and a privatisation of the southern and eastern hubs of the country. In fact, privately, Patel has told anyone who is willing to listen to him that if the two cities want modern, state-of-the-art airports, then they must look at the Delhi-Mumbai model. In other words, dump the AAI and plump for the private sector. This when he has loudly proclaimed that the AAI would get Kolkata and Delhi as in lieu of losing Delhi and Mumbai to privatisation. The Communists have helped him plenty with their double speak. If Yechury is talking about modernising Kolkata with the support of the AAI, Chief Minister Buddhadeb Bhattacharjee is talking about a Greenfield airport in the city. Yechury said the AAI has already selected the design presented by French firm Aeroport de Paris, which designed the Charles de Gaulle airport, from a global tender. (Incidentally, it is one of the worst airports in the continent.) Bhattacharjee wrote a letter to Praful (which the minister proudly showed to the PM) lauding his modernisation drive. When the flak threatened to hit the ceiling, Buddha babu said that modernisation did not mean privatisation. Speaking with a forked tongue has its dangers, and in this case gave Praful the opportunity to air his views, sow confusion and ignite a whole new debate on the whole issue. Frankly, though, the debate really is not about the public or the private sector. It is about freedom to perform and deliver. I have said it time and again that the Airports Authority of India has plenty to blame itself for the predicament it is in. Much of its work is sloppy, there is no sense of commitment amongst a large section of its employees, and the manner in which they maintained the airports was atrocious (no Parliamentary committee stopped the AAI from maintaining clean toilets or a high level of sanitation
CRUISING HEIGHTS August 2006
and cleanliness at airports). For fifty years, it messed it up and there is a sense of hollowness when it says: give us a chance now. Should one give it a chance? Frankly, yes, if one looks at the arguments it has in its defence. It has never had a free hand. It is like an adjunct of the Ministry, and successive ministers use it as they like (remember the famous case during K. Roy Paul’s tenure as Secretary when over 150 boys from Bihar were employed in the AAI with Paul's address as their permanent address), it cannot take quick decisions and has the threat of the CVC and the CBI hanging over its head at all times. And it cites two classic recent cases to argue how it is treated differently than GMR or BIAL is. Both the airports in Bangalore and Hyderabad have gone for Chinese aerobridges; AAI, being sarkari, was stopped by the Home Ministry on security grounds. The result is that AAI is paying more for the same thing, having been forced to go to a more expensive manufacturer. In another case, Delhi International Airport Ltd recently took eight of its employees on a tour of Singapore and Malaysia on a familiarisation trip. It was the first time many of them had been overseas and many more employees would be taken soon, crowed a press release. Good for DIAL, but it must be mentioned that it took several board meetings for AAI to clear a $50 increase in the TA and DA of its senior staff when going abroad. Can anyone ever think of G.M. Rao being in such a tangle? He flies into Delhi by a private jet, inspects, reviews and jets off. The writ of habeas corpus is the fundamental instrument for safeguarding individual freedom against arbitrary and unjust state action. Sadly, there is no habeas corpus for institutions that suffer from unjust action. If Mumbai, Ahmedabad and Amritsar are any indication, the AAI has in it to deliver worldclass infrastructure. Maybe Kolkata and Chennai should be the test case. Free it of interference and incessant reporting to Rajiv Gandhi Bhawan. And if it still doesn't deliver, then bury it. Surely, it deserves one more chance.
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Off the cuff
Pricing transparency The era of Rs 500 tickets from Air Deccan could be soon over if the country decides to follow the example of the European Union (EU) and forces Messers Gopinath, Goyal, Trivedi and company to advertise ‘full’ rates rather than the base price of tickets that they now tout to lure passengers. In a landmark decision, the EU has decided to act against what one commentator described as the ‘lollipop’ practice. Airlines that advertise attractive fares but add extra charges once the customer has decided to buy will be acting illegally under EU proposals. Over the past decade, intense competition between low-cost carriers has greatly reduced the cost of flying around Europe. But many passengers still end up paying more than they bargained for. In order to attract customers, airlines frequently advertise very low ticket prices, only to add taxes and fuel surcharges later. But these seldom bear much relation to what the customer ends up paying. That is because extra costs, such as airport taxes, fuel surcharges, credit card fees, insurance and service charges, are routinely added onto the basic price. But these extra costs are usually revealed only at a late stage, when a customer may have already decided to buy a ticket. The EU draft legislation aims at forcing airlines to advertise full ticket prices, instead of an attractive base fare plus a string of supplements. Airfares should be understood inclusive of all applicable taxes, charges and fees, and airlines need to give comprehensive information on their fares and the conditions attached to the public. “Citizens must enjoy the benefits of the single market and have the possibility for more choice and quality. They must be able to easily compare fares between airlines,” says Jacques Barrot, EU transport commissioner. Some observers believe the proposals are intended to target the Irish carrier Ryanair in particular. Europe’s biggest budget carrier has attracted criticism in the past for publishing headline-grabbing fares as low as 99 p, when passengers would actually have to pay far more. Last year, the authorities in Britain fined the company for publishing misleading fares, though it denied any wrongdoing. But Ryanair says it will welcome the move. If indeed it arrives in India, one wonders what Mr Gopinath and Co will have to say to that.
contents INDIGO DREAMS
p26
Rahul Bhatia has finally taken to the skies. The 100-aircraft company, which stunned the world last year with its gargantuan Airbus order, launched its first flight on the fourth of this month. What are Messers Bhatia and company’s plans for the next 12 months, and what makes Rahul tick?
OFF THE RECORD
p6
What happened on the PM’s flight. CRUISING HEIGHTS August 2006
NEWS DIGEST
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ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS TRAVEL & TOURISM PROFILES NEWS DIGEST
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R. KRISHNAN Consulting Editor
A WORKABLE ALLIANCE?
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Will the Express-Alliance work? A special report.
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Sanjeev Kapoor cooks for Singapore Airlines
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Who has won the day? A special report.
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TOURISM NOTES
HELLO GOD! India’s hottest pilgrimage destinations
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p40
BACK PAGE Travelling in space
CRUISING HEIGHTS August 2006
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. Published and edited by K. Srinivasan 4C Pocket-IV, Mayur Vihar Phase 1, Delhi 110091 and printed by K. Srinivasan at Nutech Photolithographers, C-74, Okhla Industrial Area, phase-I, New Delhi 110 020 Vol 1 No 4
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“ PERISCOPE
Speed thrills
“The
middle-class is not interested in frills like food or drinks on a short-haul flight of about two-three hours. What they are looking for is a fast, safe and economical way of transit, which these airlines are providing.” SUBHASH GOYAL, President, Indian Tour Operators Association On the rising popularity of LCCs
Nice idea “I
suggest IATA put together a little group, a fuel-buying house... If you pool together, you get volume discounts... If three airlines get together, it could work, imagine 10 airlines getting together... My previous employer would probably not like this idea.”
LETTERS TO EDITOR
The focus on AAI was a real treat. After going through it, I came to understand why the organisation is referred to as the backbone of civil aviation operations in the country. The vast array of jobs performed by the AAI is really mind-boggling. Although I am a frequent flyer, I had not realised the role played by AAI. Thank you for enlightening me. Praveen Sahni, New Delhi
IDRIS JALA, Chief Executive Malaysian Airline System. Suggesting that airlines should team up to buy fuel to avail bulk discount. (Jala was formerly an executive with oil giant Royal Dutch Shell)
The truth “We all know India's air transport infrastructure is out-of-date. In fact, the overall situation is critical.” GIOVANNI BISIGNANI, Chief of IATA On the condition of India's aviation infrastructure
India is star
The cover story made a delightful read this time. Although this PSU is a low-profile one, it has done remarkably well. Hats off to its CMD Sridhar. I am sure, he will be as successful in his next endeavour. D.S. Mehra, via email
The column Off the Record is simply wonderful to read. The items—Perfect Timing and VVIP Flights—made nice reading. The column Buzzzzzzz also makes for snappy reading. Overall, I can say that the entire magazine is a good read. Do you have any plans to increase the page count? Sushil Kumar, via email
The news item “Is the Terminal a Reality?” was a real good piece. As a frequent flyer, I can very well understand the woes of travellers. I fully well agree with the writer when he writes, “Terminal buildings should offer easy access, provide an intelligent level of information, have a minimum of imposed controls, but offer a wide range of customer services and consumer related concessionaires.” Lalit Sethi, via email
“India, Russia and China are white spots on the Star alliance network that need to be filled.” JAAN ALBRECHT, CEO, Star Alliance On the inclusion of the countries in the alliance
Wait and watch “We
are studying the report and we will be initiating action against those found guilty of the pilferage incident within 2-3 days. Nobody found guilty will be shielded. There will also be a tighter screening of their bags at all points in the flight.” V. THULASIDAS, CMD, Air India On the pilfering of whisky bottles from the PM's aircraft
All correspondence may be addressed to Editor, D-11, Nizamuddin East (basement) New Delhi - 110 014 OR mail at newslinepublications@rediffmail.com
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CRUISING HEIGHTS August 2006
Welcome move “There will be two levels of investments, with a minimal initial investment on infrastructure and bigger investments on research and development for developing the products.” SATISH KAURA, CMD, Samtel Commenting on the first public-private partnership in the area of Defence Avionics, with HAL
Welcome to India
Jet in the red
earnings rose 6.9 per cent, to $401.23 million, in June from $375.47 million in June 2005. The first six months of 2006 saw 2.15 million foreign tourists arrive, compared with 1.89 million in the same period last year. Numbers for June were up 10.6 per cent, to 2,86,257, from 2,58,822 the previous year. Passenger traffic grew to 52.12 million in the last fiscal, from 43.47 million in 2004-05, to register a growth of 19.9 per cent.
COLD STATS
The airline posted a loss of Rs 450 million in the first fiscal quarter ended June 30. Last year it posted a profit of Rs 953 million in the same period. It earned Rs 118 million in its domestic services and lost Rs 713 million on flights to London Heathrow, Kathmandu, Colombo, Kuala Lumpur and Singapore. The carrier’s revenues rose 25 per cent, to Rs 16.8 billion. The carrier flew 2.94 billion RPKs during the quarter, an increase of 39 per cent against a 44 per cent rise in capacity, to 4.04 billion ASKs.
India's foreign exchange
LOOKING GLASS
No way “I
will not re-negotiate the deal.”
VIJAY MALLYA, Chairman, Kingfisher Airlines On being named as a potential buyer of Air Sahara
Flying high “Live
TV will be in place before the cricket World Cup next year and passengers will not miss a single match. The aircraft will be fitted with a satellite dish linking up to the content provider.” VIJAY MALLYA
CRUISING HEIGHTS August 2006
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OFF THE RECORD
New Directors
Who will be the new Director (finance) at Indian? The PESB recently conducted interviews for this key job and has shortlisted two candidates: Regional Director (South) S. Chandrashekar (left), a chartered account, and Director (corporate affairs) R. Dayal. Amongst those on the interview panel were Secretary Ajay Prasad and CMD Vishwapati Trivedi. Minister Patel will make the final choice. Meanwhile, Indian will also be selecting a new Director (engineering) on August 17. Believe or not, the talent at the senior level runs so low at the jet shop that general managers, who aren’t even qualified to appear for the interview, have been given waivers to qualify them for appearing before the PESB. Indian had written to the Ministry asking for the post to be kept vacant for a year so that some of the juniors could be groomed in the meanwhile and to then fill the vacancy. But the Ministry turned down the suggestion and decided to go right ahead with the interviews. So, you now have a situation where the senior-most employees of Indian, Sushma Chawla and another IA veteran Manet Paes are not on the board, but those junior by a dozen-plus years will be right there in the select group. Doesn’t make much sense. For the record, Anita Khurana has taken over as the new Director (commercial).
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The
Glamour
Brigade THERE IS plenty of what is called ‘glam sham’ by the Page Three crowd in the tourism circuits these days. You have Kiran Chowdhary in Haryana, Usha Punia in Rajasthan and Geeta Reddy in Andhra Pradesh keeping the pot churning. Kiran is on record that her ambition is to put Haryana back on the tourist map of India as an innovative place for the visitor. Geeta is ballistic about the riches
CRUISING HEIGHTS August 2006
OUT OF OFFICE AIRPORTS AUTHORITY Chairman K. Ramalingam is out of the Air India and Indian Airlines Board. And Indian Chairman Vishwapati Trivedi is also out of the AAI Board. Apparently, the government move comes after a Department of Public Enterprises directive asking government nominees on PSU boards be limited to two each. The only exception to the rule is Trivedi in Air India and Thulasidas in Indian because of the ‘synergy’ required at the board level when the two airlines are right in the middle of merger procedures. Apparently, the Parliamentary Committee on Public Undertakings had taken exception to the sarkar overloading PSUs with their nominees left right and centre, and wanted them pruned down to two each. The AI and IA board already have two nominees
that Andhra Pradesh has to offer and how, combined with its hi-tech reputation as a silicon-chip gateway, it’s ideally poised to rightfully claim the Number One spot in the country. Usha has other ideas, though. Her logic is simple: Rajasthan is at the heart of the best selling golden triangle (Jaipur-Agra-Delhi) and, therefore, it should be Number One on every count. Well, each of them has a point, but the one most in demand at the moment is Reddy. The Convention Centre in Hyderabad has won rave reviews and every state capital in the country now wants to join the bandwagon and replicate the model. Only goes to show what good thing it is. A bit like the Delhi Metro, that’s got everyone acting!
each from the Ministry: Additional Secretary and Financial Advisor Prasanta Kumar Mishra and Joint Secretary R.K. Singh. So Ramalingam was axed. But the AAI board will have two extra government nominees—S.R. Mehra of the Bureau of Civil Aviation Security and Kanu Gohain of the DGCA. The government has insisted that Mehra be allowed to continue because of the security implications at the airports and the need for a close interaction with the AAI. And Kanu; well, Kanu is Kanu! This is in addition to P.K. Mishra and Sanjay Narayen. By the same yardstick, even the AAI needs to interface with AI and Indian and vice versa; so why keep Ramalingam out? That is a question only Messers Ajay Prasad and company can answer.
New Proposal THERE IS a move to set up a committee in the Prime Minister's office to oversee preparations for the 2010 Commonwealth Games. If reports are to be believed, the job may go to a serving Secretary, with two Joint Secretaries in Tourism and Civil Aviation working in close coordination with him to make sure the glitches are ironed out well in time. The only problem is that the JS in the ministries report to their respective bosses, who happen to be the Secretary of the Department. How will they report to someone in the PMO or the CabSec? Cabinet Secretary B.K. Chaturvedi is believed to be taking up the proposal. Dr Manmohan Singh is yet to say yes.
Bzz...zzz... Tough job Guess who has the toughest job on hand at the Ministry of Civil Aviation? Joint Secretary R.K. Singh, by a long mile. Apart from his routine chores as the JS at Rajiv Gandhi Bhawan, RK, as his friends better know, Singh happens to be on the board of both Indian and Air India. He is also the acting CMD of Pawan Hans, and, if all this is not enough, he is also the administrative and vigilance head of the Ministry. Phew, it is a long haul each day for RK!
Awards galore It was Indian that grabbed the honours at the Awaaz consumer’s choice awards, just weeks after winning the Reader’s Digest trusted brand award. Weeks later, it was the turn of Naresh Goyal, of Jet, to receive accolades from the Prime Minister at the NDTV Profit gala. Air India was the customers’ choice as the most trusted international carrier in a Reader’s Digest pool. Only goes to show that, like it or lump it, the PSU carriers continue to enthral the flying public.
Attention to detail The jet shop at Indian now has a regular visitor in Chairman and Managing Director Vishwapati Trivedi, who wants all the aircraft back on the tarmac ASAP. Reports are, post the detailed interaction with the Minister, Trivedi has drawn up a real tough timetable for maintenance of the national carrier’s A320. Clearly, he doesn’t want a C check (when an aircraft is stripped down to the barebones for overhauling) avalanche this winter, and the inspections will hopefully help set a manageable and achievable maintenance schedule.
Staying home Believe it or not, Praful Patel hasn’t been out of India for a good month and a half. The good man is so tired of hopping from one city to another that he finally decided to rest his tired feet. So, it’s been the routine Mumbai-Delhi shuttle for close to six weeks now, with, of course, the usual detour to hometown Gondia once every two weeks or so. Temporary aberration. Surely Mantriji’s wanderlust couldn’t have waned!
CRUISING HEIGHTS August 2006
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OFF THE RECORD
Lohani returns REMEMBER ASHWANI LOHANI? This engineer from Jamalpur, who is a career officer in the Indian Railways and later served as the Chairman and Managing Director of ITDC, is now back in the saddle as the Managing Director of Madhya Pradesh Tourism Development Corporation. Lohani was ousted from his position when Babulal Gaur took over as the CM. But with Gaur’s ouster,
Lohani is back. One will have to grant it to him that he has the perseverance and the stamina to relentlessly pursue his objectives. At the moment it is simple— to put Madhya Pradesh in the top bracket as a tourism destination. Will he achieve his objective? In a way he is fortunate. The Minister for tourism is proactive, the CM is non-interfering and the civil servants in the tourism department are equally focused on their target. Can it get any better?
What’s happening
T
HERE IS plenty happening in the upper echelons of Air India. Chairman and Managing Director Vasudevan Thulasidas was away to the US on a tenday tour that took him coast to coast. First to New York for some finance work and then to Seattle to select the seats for the new Boeing 777s that will start rolling in later this year. Travelling with him was Director (Finance) S. Punhani, Veena Khambatta from the commercial section and officiating Director (engineering) Rajiv Kapoor. All hell broke loose while Thulasidas was away when Aaj Tak ran a huge story on the alleged gifts purchased by AI staffers for the Prime Minister’s party during his foreign jaunts. The gifts, the PMO said, had never been asked for and never been authorised. The man at the centre of the storm was, once again, Captain Naresh Beri, AI’s Regional Director in Delhi, who has been taken off key functions after an earlier story about pilferage aboard a PM flight. Beri, not surprisingly, was indignant about the story and proclaimed his innocence. In private conversations with colleagues he made it plain he hadn’t asked the airline’s Director (North America) to procure Montblanc pens, ipods and what have you, and didn’t know who had signed for the US $23,000-odd that had been spent on them. And had the gifts been distributed? Well, the PMO said no gifts had been asked for. But no one ever mentioned accepting any gifts. No surprise again. Any gift over Rs 2,000 to a government servant is to be reported to the authorities and turned over to the government. No one had turned in a Montblanc pen or an i-pod; so the presumption was no one had accepted it. The Ministry quietly told journalists that it was investigating the matter, but no one knows how or by whom. Meanwhile, AI’s Chief Vigilance Officer, Manjira Kakkar, is believed to have ordered an enquiry into the whole issue. But it apparently names no one and is general in nature. The big question everyone’s asking is the source of the leak? There are various villains according to the different characters in the episode. Some blame senior directors in Mumbai of a
‘vendetta’ to defame Air India and weaken the management. Others say it is AI’s former Director (Europe), Captain Sharma, of being the source for the story. Sharma was in Delhi a few days before the Aaj Tak telecast and putting two and two together, the leak has landed on his doorstep. Sources close to Captain Sharma say this is complete nonsense. After a long, hard battle to stay put in the UK (he was given a sixmonth extension on his job in early January on the explicit instructions of Praful Patel), Sharma was a Director without a job in London. After a messy squabble with headquarters, he was replaced by K.D. Rao, who heads the day-to-day operations in the UK. But Mantriji’s fiat ensured that he continued to stay in London. An embattled Sharma got a shot in the arm when the police dismissed all charges of sexual harassment against him and said there was no case even for a preliminary enquiry. The feisty captain also made it plain he would go back home to serve the Maharaja and denied news he had quit to take up the residency in England recently granted to him. He says he is quite prepared to take on all comers, including vigilance charges that he expects he will have to contend with. FoS (Friends of Sharma) are clear it is not the Commercial Department or others in Mumbai that are responsible for AI's present predicament, but a few individuals, who are claiming to be close to the PMO, in particular Principal Secretary T.K. Kutty Nair, who are responsible for this mess. This is hotly denied by his detractors, who say this is typical Sharma speak. Meanwhile, AI interviews for the post of director (engineering) will take place on August 17, and if reports are to be believed, the top candidate for the job is a man who has obtained two spectacular promotions in the last two years and will catapult to the board where members a dozen years senior to him are still jostling for space. That's what is called darn good luck. You never know with the Maharaja. Who’s up to what in the king’s durbar!
CRUISING HEIGHTS August 2006
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NEWS DIGEST
An unusual marriage
J
ET AIRWAYS and Air Deccan, which were often at each other’s throats, signed an agreement on July 25 to help one another breathe easy and jointly take on competition. According to the pact, the two airlines, one legacy and the other an LCC, will fly each other’s passengers when flights are cancelled. The agreement, which came into effect immediately, is the first of its kind for the airline industry in India. According to Air Deccan MD, Capt G.R. Gopinath, the arrangement would be a barter, wherein excess seats would be allocated to the airline that has a cancellation. An option would be given to the passenger for availing the seat available. The arrangement would help improve the performance of Air Deccan, which has often been forced to cancel its flights due to technical problems. While Air Deccan connects 56 destinations operating 265 daily flights, Jet operates 320 flights a day to cover a network of 44 destinations in the country. The synergy will help both. So how was it supping with the enemy? Gopi laughs, “Well, we aren’t exactly enemies. Let me put it this way, we are competitors with differing points of view. But I have always maintained that Jet Airways is Number One and has a world-class product, while we are the second largest airline in India.” Apparently, the two met first in Mumbai and spoke to each other about synergy. In fact, they had two long meetings and then set up their own teams to work out the nitty gritties. Considering that they offer two almost entirely different products at the front end, they have come to the simplest possible synergy—a straight barter of seats. Deccan will offer Jet a seat for each seat offered. Captain Gopinath said other areas of cooperation between the airlines included code sharing, by which the two carriers could carry passengers to destinations not touched by each other. But this is a complex operation, as Gopi explained, “The business model we follow ensures that we receive money before a transaction can be completed, That’s not the case with Jet Airways, where travel agents are free to do book-
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G. Gopinath
Warwick Brady
Gaurang Shetty
Naresh Goyal
CRUISING HEIGHTS August 2006
ings on credit. So we are in the process of reconciling the technology to ensure that we are able to have seamless ticketing from London to Kolhapur or Nashik, as the case may be.” Gopi said that the Jet-Air Deccan cooperation has been at the drawing board stage for a couple of months, with the Jet team being lead by its Vice President (Marketing), Gaurang Shetty, and the Air Deccan team by its COO, Warwick Brady, and included John Kuruvilla and Arvind. The alliance could enable a passenger to book a ticket from London to fly to Kolhapur, where Jet Airways is not flying. The first leg of the travel, London to Mumbai, would be by Jet, while the second leg would be by Air Deccan, from Mumbai to Kolhapur. Jet Airways is currently operating 43 classic and nextgeneration Boeing 737, three A340-300, one Airbus A330-200 and eight modern ATR 72-500. Air Deccan is operating 14 A320 and 21 ATR turboprop aircraft. Further, Air Deccan was also looking at sharing spares and tooling for ATR aircraft, which may take another six months. Shetty, however, discounted this and said the deal was so far limited to a simple barter. Significantly, the respective scrips of the two airlines are quoting far below par, also an indicator of the need to come together. Jet’s CEO, Wolfgang Prock-Schauer, remarked that as per the present arrangement the two airlines have entered into a seat swapping deal, valid for all flights across the country, for putting passengers stranded due to cancellation of flights on either carrier. This will be applicable to maintenance and repair also. What remains to be seen is, of course, the way the passengers of Jet and Air Deccan get adjusted in the carrier not of their choice. Jet is known for product and Air Deccan for utility value. Jet charges more and Air Deccan, less fare for the same destinations. In the past, Air Deccan, without naming Jet, used to accuse legacy carriers of killing competition when they also dropped fares. He argued how could they charge fares that were lower than cost of operation. But when your back is on fire you don’t mind rolling on ground or jumping into the river even if you don’t know swimming.
NEWS DIGEST
W
14
HAT INDIAN AIRLINES failed to do, Jeh Wadia has done. After talking for two years, from 2003 to 2005, spanning across NDA’s last year of shining India and early days of UPA’s Aam Aadmi that saw Indian Airlines sign an MoU with Singapore Airlines Engineering Company (SIAEC) to set up an MRO in strategic locations in the country, get IA Board to endorse it, obtain an NOC from CVC; the parent Ministry of Civil Aviation simply shoved the MRO project into deep freeze, from which it never came out. Considering that every other airline is opting for A320, with Indian being the leader not just with what it bought earlier but what it has now ordered, it could have become a separate profitable business unit. But that was not to be. Frustrated Singaporeans, who had waited for long, decided to go with Jeh Wadia, who owns GoAir. On July 26 GoAir and SIAEC signed an agreement to float a JV, in which SIAEC will have 51 per cent and will manage the Greenfield facility. In the proposed JV with Indian Airlines, Singaporeans were happy to
India, like Kingfisher, Air Deccan, Indigo and even Go, are brand new. They would require just line maintenance of the very early types and not major C checks, which may become due after a few thousand hours of engine cycles. So what the proposed MRO may have factored in could be the huge demand for such services from Indian Airlines, which already has a fleet of 48 A320, with 18 of them on lease. As on date, nearly 14 of its A320 are on ground requiring major maintenance before the end of 2006. The impact of this grounding is already being felt in curtailed services on some trunk routes. It is no longer every hour on the hour metro services between Delhi and Mumbai. Consider the other scenario in which Airbus is supposed to assist Indian private entrepreneurs to set up the MRO for Airbus aircraft. In September 2005, soon after the E-GoM cleared the Airbus deal for Indian Airlines, the Civil Aviation Minister Praful Patel announced that as part of the deal Airbus would offer to set up not just pilot training academy but also help in establishing the MRO. Therefore, why should Indian go to Go-SIAEC when it can do the job itself
hold 49 per cent, which is now being held by GoAir in the new JV. Interestingly, some of the guys, who were actively involved in the technical discussion during the negotiations with Indian Airlines, walked over to GoAir carrying all the creamy information to seal the deal on behalf of Go. The initial capital for the MRO would be US $30 million. The proposed JV will initially offer line maintenance services at eight major airports and expand to more airports subsequently. It will provide engineering services to both narrow and wide body aircraft in India. As per the current reckoning, the facility would be ready by November, while heavy maintenance would be ready in a year’s time. There are also plans to develop the JV into a centre of excellence for airframe maintenance of A320 and Boeing 737 next-generation airliners and the establishment of a leading aerospace training institute. Jeh Wadia said, “We have not yet finalised the location for heavy maintenance. This facility will offer services to foreign carriers as well as Indian planes. The MRO will result in substantial cost savings for GoAir.” SIAEC President and CEO, Tan Seng Koon William, said 500-600 aircraft would be joining fleets of domestic airline companies. “This would require the support of modern and world-class MRO facilities.” It may be nice to sign an MOU, but getting it to work is another ball game. At present, most aircraft acquired by airlines in
with the assistance of Airbus, of which it was also the launch customer for A320 in the mid-1980s. Having said that we must also acknowledge the fact that stateowned carriers are managed from Rajiv Gandhi Bhawan, housing the Civil Aviation Ministry, unlike the private airlines that are managed truly by their promoters. Jeh With an inevitable clash or conWadia flict of interest, it is the stateowned carriers that lose out. It may be recalled that when Indian Airlines’ new CMD Vishwapati Trivedi took over in January 2006 he told a group of newsmen at an informal gathering that he would take up the issue of both ground handling and MRO JVs with the government. Considering that the Prime Minister personally picked him up for the job it was widely believed that Indian would be able to overcome the obstacles in the fructification of the two JVs. But it was not to be. Singapore Airport Terminal Services (SATS), which had also signed an MoU with Indian and was well on its way to set up a Ground Handling JV, abandoned the project when an official barrier was raised by the Ministry. The same SATS successfully concluded a JV with Air India for providing Ground Handling services in the upcoming Bangalore International Airport Limited. It has already won the bid for it. Again Indian Airlines is left a sucker. Air India is already in an advanced stage to finalise the engine MRO with GE and airframe MRO with Boeing. Once Indian is merged into Air India, as it appears to be so, many of these decisions will no longer be in the hands of Indian management formally as it has been informally till now on engineering and ground handling JVs. So Go may have to wait. Yet another imponderable for GoAirSIAEC JV is the possible disinclination of Boeing to offer spares to the new MRO JV, as Go is not a Boeing customer. Considering all these we should be seeing lot of action on ground even though the players are in the business of flying.
SIA via Indian to Go
CRUISING HEIGHTS August 2006
Flyington gets going
SECUNDERABAD-BASED Flyington Freighters Private Limited, an air cargo company, has signed a deal to buy four Boeing 777F cargo aircraft at an estimated cost of nearly US $1 billion. According to company Chairman T. Venkatram Reddy, his company wants to be the biggest cargo airline in Asia. The company hopes to start cargo services with leased aircraft from April 2007. The company’s MD, Deepak Parasuraman, said the deliveries of 777-200 freighters would begin by the end of 2009. Flyington, in the interim, would lease six aircraft, which could be a mix of MD-11 and A330-600, for launching its cargo services. The company plans to carry out cargo operations to China, West Asia, the US and Europe. Meanwhile, CargoItalia, Italy’s international all cargo carrier has added Chennai and Delhi to its network. This is the second Italian carrier after Alitalia to operate out of Chennai after it started operations to Mumbai in June. Cargoitalia operates DC-10 aircraft with a capacity to carry about 65 tonnes. Currently, about 40 tonnes of cargo would be earmarked for Chennai. The aircraft would fly from its hub in Milan to Chennai and Delhi before returning to Milan and onward journey to New York. The cargo carrier will also operate two flights on the Milan-Mumbai-Dhaka-Milan sector. It will be a twice-a-week operation.
Tel Aviv link WHATEVER BE the reservations of the Left parties to Israel, they certainly cannot prevent Indian companies from doing business with Israel. Not even 100 per cent state-owned companies, like HAL, are willing to waffle in the ideological moorings of the Left when they have to focus in order to rake in the big money in a fiercely competitive aviation market. HAL has concluded deals with two Israeli firms to make flight simulators and airframe for transport planes and is in talk with Boeing for a long-term programme for supplying aircraft components. Bangalore-based HAL has bagged a US $30 million order for airframe structures from Israeli Aircraft Industries and another from Elbit, an Israeli defence firm, to make aircraft and helicopter simulators. HAL will set up a dedicated manufacturing and assembly line to execute the order.
Restless Vijay DR VIJAY MALLYA is becoming restless and has every reason to be so. As a Rajya Sabha MP he has free access to Central Hall of Parliament, where MPs come to relax or have a quick bite. It is not unusual to see MPs from ruling and oppositon parties having a hearty round of gup-shup. But the other day Mallyaji and friend Adi Keshavulu, of TDP, were seen getting MPs across party lines to sign a memorandum to the Prime Minister seeking a change in current civil aviation policy that restricted domestic private carriers from flying international routes till they completed five years of domestic flying, had the requisite ASKM and a minimum fleet of 20 aircraft. Mallya, whose Kingfisher is an excellent product but is sustaining huge losses notwithstanding deep pockets, wanted the five-year ban relaxed. Being also a member of the Parliamentary Consultative Committee of Civil Aviation Ministry as its permanent special invitee, Dr Mallya took up the same issue at its meeting recently. He was able to enlist the support of Akali MP Sukhdev Singh Dhindsa, Tapir Gao of Arunachal Pradesh, Abdul Wahab Peevee, etc. Kingfisher Airlines, which recently completed first year of its operations, ran up a total debt of Rs 950 crore, which is inclusive of Rs 327 crore that it raised in the first quarter of the current fiscal 2006-07. UB Holdings, which at present holds 83.53 per cent of the firm, executed guarantees in favour of banks that extended the loan to Kingfisher. We had earlier reported in the July issue of Cruising Heights that Vijay Mallya has postponed the move to go in for an IPO. Thus, in the absence of an IPO, Kingfisher has been forced to go in for the debt route to fund its massive aircraft acquisition plan. The airline, which has an average load factor of 70 per cent, has 14 operational aircraft—brand new A320s and ATRs—connecting 15 cities, which are set to increase very shortly. Vijay Mallya is also looking at tying up with an American carrier for inbound services from North America into India to get over Indian restrictions on flying foreign routes from India by private carriers till they complete, among other things, five years of domestic operations. In anticipation of his massive fleet expansion, Mallya has signed a US $24 million contract with Thales UK for the supply of three new full flight simulators, of which two will be for A320 and one for ATR. Kingfisher has also signed an agreement with Pratt & Whitney for supply of 10 engines to power its fleet of to-be-acquired A330. The deal is valued at US $300 million. It also has an option to buy another 10 engines. ATR and Kingfisher have also entered into an agreement for maintenance, supply of spare parts/services for its fleet of ATR 72-500. Meanwhile Vijay Mallya’s country cousin, Capt Gopinath, has signed an agreement with International Aero Engines to buy 30 V2500 engines for his A320 aircraft.
CRUISING HEIGHTS August 2006
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NEWS DIGEST
Who is Crowning number two? the consultant
EXECUTIVE DIGEST
INDIAN, FORMERLY Indian Airlines, has reacted angrily to suggestions that it has slipped to Number Three in the aviation sweepstakes. In a no-holdbarred press release, the airline emphatically and unequivocally states that it continues to be the second largest airline in the country. The release said: “Indian’s market share in June 2006 was 22 per cent and has been constant despite the shortage of aircraft due to a maintenance backlog, operation of flights on international sectors and operation of special domestic evacuation flights for Lebanon returnees.” With the planned increase in aircraft availability, leasing of aircraft and induction of the new fleet of 43 aircraft, Indian expects to substantially increase its passenger capacity and market share in the coming months. The reaction came, thanks to an Air Deccan news release proclaiming that it was Number Two, behind market leader, Jet Airways. The release said: “Air Deccan, India’s No 1 low cost airline, today upstaged its nearest competitor and government owned airline, Indian Airlines (established 1953), to become the second largest airline in the country. Air Deccan has garnered a market share of 21.2 per cent in June, a rise of 1.8 per cent since May 2005 while the market share of Indian dipped to 20.8 per cent in the month of June.” Gopi said, “Air Deccan, with its unconventional business model, brought the luxury of flying to the common man in India. Dynamic pricing coupled with wide connectivity, rapid expansion of fleet and several other innovative steps enabled us in becoming the second largest airline in the country in such a short period of time.” But IA says it’s unfair. For one, the DGCA chops off all passengers on its overseas sectors and then releases the numbers. “We have the numbers and the network. Do we need to comment further?” said one Indian official curtly.
A CONSORTIUM led by Accenture with Ambit Corporate Finance has been appointed as the consultant for the proposed Air India-Indian merger. A high level panel appointed by Ministry of Civil Aviation decided recently that Accenture-led consortium will get the job, under which it will also do the handholding job for a year after the merger process is initiated. According to an Air India spokesperson, the consortium has already been given the terms and conditions of the mandate. Following this the consortium will begin its role as the consultant to the merger. Accenture consortium will chalk out the roadmap for the operational merger between the two state-owned carriers. Besides it will also suggest when the two airlines should enter the capital market to raise resources through an IPO. The merger will result in a US $3.5 billion company with a fleet size of 130 aircraft and a workforce of 35,000. Others that bid for the mandate were ICICI Securities and financial institution Deloitte Touche Dohmatsu, investment bank N.M. Rothschild and law firm MV Kini & Co and the Centre for Asia-Pacific Aviation. Sources said the Rothschild consortium lost the mandate as it had quoted at least Rs 3 crore to Rs 4 crore more in the financial bid. Accenture’s presentation showed it had employed more than 3,000 people to handle its aviation business consulting and it was also involved, among others, in the merger between Air France and KLM, America West-British Caledonian, and had prepared the business plan of Jet when it launched and again when it began international operations. We hope the new venture, to be designed by Accenture consortium, does not go the way the business plans prepared in the past by A.T. Kearney and other internationally known consulting companies went. What the proposed Air India-Indian merger would require is a top class HR firm, as this is one issue that will continue to bother the merger managers, both on the ground and in the sky.
Jet plays blame game The airline has said that the
delay in meeting all conditions specified in the share purchase agreement (SPA) had led the deal to fall flat. The company said that the SPA between Jet Airways and Sahara Airlines was based on certain conditions such as government permission as well as policies relating to mergers and acquisitions of airlines being in place. Meanwhile, the airline has said that it plans to file a transfer petition before the Supreme Court in view of the ongoing litigations in the Bombay High Court and Lucknow District Court.
New India-led group bags AI insurance cover A consortium of public sector insurance companies, led by
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New India Insurance, has bagged the insurance cover for Air India, which will pay a premium of $15 million for insuring its fleet during the current year. The insurance payout this year is more that the $13.9 million paid last year, mainly due to an expected increase in the number of passengers flown and number of aircraft in the fleet. The private sector companies in the fray were IFFCO-Tokio, Reliance General Insurance and ICICI-Bajaj.
First Flight on its own wings
The courier company is all set to take to the skies with its own aircraft. At the moment the company uses belly space in passenger aircraft for its courier business. The first aircraft, an
CRUISING HEIGHTS August 2006
Airport News Status of airports Praful Patel, Minister for Civil Aviation, informed Parliament about the upgradation status of the various airports in the country. He informed that Nagpur Airport is being taken up for upgradation in a phased manner by the Airport Authority of India (AAI), and that discussions with the Government of Maharashtra have been initiated for the development of Nagpur Airport as a national cargo and passenger hub. In the meanwhile, AAI is carrying out various upgradation works in Phase I, including expansion and modification of terminal building and construction of a new arrival hall for handling international operations, expansion of existing apron to create two more parking bays for B747, B777 and B767 types of aircraft and the construction of a new apron with six parking bays for AV-321/B737-900 class of aircraft. The above works are expected to be completed by the end of 2007. In addition, AAI also has plans to start construction of a Haj Terminal. Although the modalities of implementation of the modernisation plans of Kolkata and Chennai airports are yet to be decided, AAI, in the interim, has drawn up plans for both the airports. In Kolkata, AAI envisages the construction of a new international departure block with car parking facilities, etc., at an estimated cost of Rs 225 crore. After this a new international arrival block will be constructed. AAI has already initiated work to extend runways and to develop plans for construction of a new domestic terminal building and 11 additional bays. Construction of an Integrated Cargo Complex is likely to be completed soon. At the Chennai airport, AAI has already started construction to expand and modify the International Terminal Block at an estimated cost of Rs 23.47 crore, 20 additional parking bays are being constructed. Further, AAI has plans for constructing a new domestic terminal building, for which the State Government of Tamil Nadu has been asked to hand over 583 hectares of land to the AAI. As far as the Mangalore airport is concerned, a new runway, of dimension 2450 metres x 45 metres for operation of A310-300 class of aircraft has already been constructed. There are plans to construct a new integrated terminal building complex with all modern facilities for handling 500 passengers at a time. This can be done only when the required additional land is handed over to the AAI by the State Government of Karnataka. Meanwhile, AAI has taken up renovation/modification of the existing terminal building and has initiated action for providing space for customs and immigration. Instrumental Landing System (ILS) has already
been installed, and its promulgation is contingent on completion of flight trials, nominated checkpoints, evaluation of letdown procedure and approval by the Directorate General of Civil Aviation. On completion of all the above works and when all relevant requirements are met, the Ministry of Civil Aviation will examine the possibilities to upgrade Mangalore airport into an international airport.
Revenues and dues of AAI at Delhi and Mumbai airports
Praful Patel informed the Rajya Sabha that the revenue earned by Airports Authority of India (AAI) from the Delhi and Mumbai airports was Rs 569.52 crore and Rs 586.75 crore in 2004-05 and Rs 673.41 crore and Rs 665.54 crore in 2005-06, respectively. He further informed that details of dues outstanding, as of March 31, 2006, to the AAI from certain private airlines at Delhi and Mumbai airports were as follows: Jet Airways—Rs 687.40 lakh and Rs 90.52 lakh; Sahara Airlines—Rs 221.24 lakh and Rs 12.52 lakh; Air Deccan—Rs 223.61 lakh and Rs 164.67 lakh; Spice Jet— Rs 32.81 lakh and Rs 0.00; Kingfisher—Rs 79.38 lakh and Rs 96.20 lakh; Go Airlines—Rs 0.00 lakh and Rs 14.86 lakh; East West Airlines—Rs 32.82 lakh and Rs 407.43 lakh; NEPC—Rs 7.69 lakh and Rs 6.98 lakh; Skyline NEPC—Rs 14.72 lakh and Rs 34.94 lakh; Archana Airways—Rs 39.62 lakh and Rs 0.00; Elbee Air—Rs 11.86 lakh and Rs 0.00; Continental Aviation—Rs 0.10 lakh and Rs 16.45 lakh; and Jagson Airlines—Rs 131.26 lakh and Rs 0.00. Dues are monitored regularly by the AAI and action through legal/arbitration/Public Premises Eviction (PPE) Act are taken wherever necessary. Besides, interest is levied for the overdue period from defaulting airlines, and they are put on operation on cash-and-carry basis.
CRUISING HEIGHTS August 2006
17
NEWS DIGEST
GMR goes public
EXECUTIVE DIGEST
“THE CHALLENGE is to meet the current traffic, which is already so high. Another challenge is building a world-class airport before the Commonwealth Games, scheduled for 2010. Besides, we would like to build an airport that every Indian should feel proud of. It should give a brand to the country. We would also have to ensure that the service standards are kept at the stipulated levels. All these are big challenges. Within a month, after discussing with our partners and stakeholders, we will come out with a plan of action,” said GMR Infrastructure Chairman, G.M. Rao, on the plans ahead for Delhi airport, which his group is now remodelling at a tearing pace. Rao spoke these words to a Rao spoke these words to a Hindu Businessline correspondent “Minutes after stepping off a private jet from Delhi Airport Mumbai to Delhi.” This only goes to show the frenetic pace at which the company is going ahead with its infrastructure plans, with the two major jewels in the crown being Delhi and Hyderabad airports. As a first step in that direction, the company entered the capital markets on July 31, 2006, with a public issue of 38,136,980 equity shares of Rs 10 each, comprising 5,00,000 equity shares reserved for the eligible employees and a net public offer of 37,636,980 equity shares. The net offer to public constituted 11.37 per cent of the fully diluted post G.M. Rao issue paid up capital of the company. The price
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band had been fixed at Rs 210 to Rs 250 per equity share of Rs 10 each. The issue opened on July 31 and closed on August 4. The IPO of GMR Infrastructure Ltd was oversubscribed by 6.52 times. Bids were received at the lower end of the price band, of Rs 210-Rs 250. However, the retail category of the IPO was heavily undersubscribed. The retail portion for GMR Infrastructure had been subscribed 0.06 times. The QIB portion for both the IPOs had been oversubscribed. Investment in GMR Infrastructure will be relatively long term and hence there had not been a very good involvement from the retail segment, was the argument of a dealer from a top broker firm. He added that the shares of the company should open in the price band range, at the lower end. Meanwhile the company has moved into higher gear in Delhi. Recently it took an eightmember team on visit to two world-class airports in Asia—Kuala Lumpur International Airport and Singapore’s Changi International Airport. “The idea was to give them global exposure. This is one of the few trips we have planned and was for people above the rank of manager. We intend to take many more employees to international airports so that they can see how other airports are managed. Since some of them have had experience only in the airports in India, this will go a long way in seeing how successful airports are run,” said a senior official.
advanced turboprop freighter that has been leased for seven years, is parked at a private airfield at Hosur, near Bangalore. The aircraft that the company is acquiring has a capacity of eight tonnes. The funding for the project is to be entirely through internal accruals and the company plans to use each aircraft for 175200 hours per month. The routing of the aircraft would depend on the infrastructure available at the airports around the country.
maintenance rights of one such garden to a wholly owned subsidiary of its. The shareholders had already cleared the company’s venture into the new business in the last annual general meeting. Incidentally, one of Gupta’s group companies is BMG Enterprises Ltd, which operates as an aviation consultant and also exports aircraft parts.
Rossell Tea eyes aviation Rossell Tea Ltd,
has revised fuel surcharge to Rs 500, from the existing Rs 300, on all fares on all routes with effect from July 7. The new charge will be applicable to all bookings made on or after July 7 and will not be applicable to tickets that have been booked before that date.
belonging to the Delhi-based Harsh M. Gupta, is eyeing the aviation sector. The company owns five tea gardens in Assam and has recently transferred the running and
Air Deccan hikes fuel surcharge The airline
CRUISING HEIGHTS August 2006
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The 1st IPC Congress - The International Congress for Personnel Certification will bring together organizations and professionals from personnel, product and system certification, standardization and accreditation markets. You will have the opportunity to meet professionals from different countries, exchange views, present findings and plan for the future.
Congress Sessions (in brief) 22 August 2006 Morning Session
: Personnel Certification and Accreditation
Afternoon Session
: Definition of competence and examination methods
23 August, 2006 Morning session
: Personnel certification and standardisation
Afternoon Session
: Personnel certification as a statutory requirement
24 August 2006 Morning session
: Testing and examination
Afternoon session
: Training as an integral part of personnel certification
For more information regarding the Congress, you may visit the Congress website at www.ipc2006.gr or contact the International Personnel Certification Association (IPC) Secretariat at:
346A, Vouliagmenis Avenue, Ag, Dimitrios, GR 17342, Greece Tel: +30 210 9952577/9952276 Fax: +30 210 9937225 Email: secretary@ipcaweb.org.
Supported by National Registration Board for Personnel & Training C/o Quality Council of India Institution of Engineers Building, 2nd Floor, Bahadur Shah Zafar Marg, New Delhi 110002, Tel /Fax: +91 11 23370567/2337 9260 Email nrbpt@qcin.org
SPECIAL REPORT
WILL IT BE AN
‘EXPRESS’ ALLIANCE WITH AIR INDIA? With the merger of Air India and Indian moving one notch higher by the appointment of Accenture to lay down the roadmap, questions are being raised about the future of Air India Express and Alliance Air. R. Krishnan offers a perspective. 20
CRUISING HEIGHTS August 2006
R
ECENTLY THERE was news that the government may consider merging Air India’s LCC, Air India Express, and Indian’s subsidiary, Alliance Air. The idea, according to official sources, was to have an exclusive state-owned lowcost carrier operating on both domestic and international routes in addition to one single legacy carrier that will be formed with the merger of Air India and Indian Airlines, or Indian. The modalities of the merger to launch an LCC will be worked out by the consortium, led by Accenture, which was recently given the mandate to handle Air IndiaIndian merger. On the face of it, it seems to be a good idea to mesh the identity of Alliance Air and AI Express. Air India Express is already up and running and is registering record loads, while Alliance Air has gone through much turbulence in recent times and has been now limited, more or less, to the Northeast. Looked at it separately or individually, their merger may prove to be a Herculean task. For one thing, Air India Express has a plan of fleet acquisition, routes, etc., while Alliance Air seems to be waiting only to be shut down
(at least that’s the inference at Airlines House, unless the government quickly tells it what roadmap to follow). Let’s look at the two carriers separately to get an idea. Air India Express: There is no company known as Air India Express. It is only the name of the flying arm of the company Air India Charters Limited, itself a subsidiary of Air India. Currently it has a fleet of seven Boeing 737-800, all on lease. Besides, it is proposing to buy an additional 18 Boeing 737-800 from Boeing Commercial Airplane Company, taking the total fleet of Air India Express to 25. The delivery schedule of the 18 Boeing 737-800 is as follows: one aircraft each in November and December 2006 (two aircraft); three aircraft in January, one each in February and May, two in August, and one in October of 2007 (eight aircraft); one aircraft each in February, May, July and October of 2008 (four aircraft) and one aircraft each in January, May, July and October 2009 (four aircraft). Thus over the next 38 months, or three years and two months, Air India Express would have acquired all the 18 purchased aircraft. It is learnt that the Air India management is working with the manufacturer to expedite the deliveries so that all the 18 aircraft
It is learnt that the Air India management is working with the manufacturer to expedite the deliveries so that all the 18 aircraft are acquired and deployed on Air India Express schedule by mid-2008 CRUISING HEIGHTS August 2006
are acquired and deployed on Air India Express schedule by mid-2008. According to a revised schedule, Air India hopes to get two Boeing 737-800 in November and December 2006, one aircraft each month in the whole of 2007 and the remaining four aircraft by mid-2008. A team of Air India’s top officials recently visited Washington DC to negotiate with the US EXIM Bank to facilitate the acquisition of its planned 50 wide body aircraft, comprising 27 Boeing 787 Dreamliners, eight Boeing 777-200 LR Worldliners and 15 Boeing 777-300 ER. These deliveries will be staggered, and scheduled to come after the narrow body Boeing 737-800. Air India will face a serious capacity shortage considering that it has to return at least three of its leased Boeing 747-400 by end December 2006. The Maharaja is, therefore, seriously thinking of taking on lease from its subsidiary, Air India Charters, at least six Boeing 737-800 of the 18 meant for Air India Express for its Gulf, Southeast and near Far East operations, especially Hong Kong. As on date, Air India Express has seven Boeing 737-800 on lease for five years (likely to end between 2010 and 2011) on a monthly lease payment of US $350,000.
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SPECIAL REPORT Lease cost of new aircraft is typically one to 1.5 per cent of the list price of the aircraft. To operate these seven Boeings normally an airline would require six sets of pilots for each aircraft, which means it should be having 84 pilots comprising the right mix of commanders and co-pilots. But Air India Express has only 79 pilots, who include some expats and also some trainees. Pilot shortage has, therefore, severely hit its full-blown operations. Currently, Air India Express operates from five points in India to six points in the Gulf. The Indian points are Delhi, Mumbai, Thiruvananthapuram, Kochi and Kozhikode. The six points in Gulf are Dubai, Abu Dhabi, Salala, Al Ain, Muscat and Sharjah. As per the current bilaterals, Air India Express does not have the rights to fly to either Singapore or Kuala Lumpur. To overcome this, Air India is using Air India Express planes under Air India numbers to operate commercial flights. Thus, we have Air India Express Boeing 737-800 flying to both Singapore and KL from Chennai. It was in May 2006 Air India withdrew some of its own A310 services and deployed Air India Express aircraft to ferry passengers from India to Singapore and Malaysia. It is also one of the reasons for Air India not being in a position to fulfil its commitment to launch Air India Express flights to Dubai from Amritsar and Mangalore, made in April-May 2006. But the company officials are confident these services will be started soon with the induction of new aircraft and also pilots. Coming back to Air India, since it is going to face capacity constraint, at least six of the yet-to-arrive Boeing 737-800 will be reconfigured to seat between six and 12 business class passengers and the remaining 120 in the economy class. At present a single economy class configuration seats 181 passengers. The business class seats in the reconfigured (six) aircraft of Air India Express, to fly under Air India numbers, will have a seat pitch of 58 inches, similar to what Jet Airways’ Boeing 737-800 offer on their flights to Singapore. These aircraft will be returned to Air India Express once Air India’s own aircraft start coming in. The capacity shortage of Air India would not have been so severe had the lessors of some of the leased A310 not refused to renew the lease. These special six Boeing 737-800 will be flown on the Middle East, Southeast Asia and some Far East routes. Boeing 737-800, according to an Air India official, is capable of flying without payload penalty for five-and-a-half hours, and thus would easily cover Hong Kong and perhaps even Shanghai. But the issue it has to answer: how does Air India propose to
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The numbers FIRST, AIR INDIA EXPRESS recorded revenue of Rs 342 crore between April 2005 and March 2006. The airline was launched on April 29, 2005. Between April 29, 2005, and March 31, 2006, its load factor on India-Gulf sector was 83.6 per cent and GulfIndia sector was 73.3 per cent. In the first quarter, April-June 2006, or the first quarter for the current financial year 200607, the load factors on the same two sectors was 90.3 per cent and 89.9 per cent, respectively. Its services are now exclusively from Kerala to Gulf, which it services with a fleet of seven aircraft and operates 38 flights a week between Kerala and Gulf. Air India Express, which earlier used to fly from Delhi and Mumbai to Abu Dhabi and Muscat, has now been taken over by Air India itself until such time new aircraft
Since Air India is going to face capacity constraint, at least six of the yet-to-arrive Boeing 737-800 will be reconfigured to seat between 6 and 12 business class passengers and the remaining 120 in the economy class. CRUISING HEIGHTS August 2006
start rolling in. Air India officials said this was only short-term arrangement and soon other cities in other states will also get the facility of Air India Express after the fleet acquisition becomes a reality. fight competition from much sleeker, bigger and roomy wide body A340-300 and Boeing 777 flown by competitors, like Cathay Pacific, China Airlines, Thai, etc. Air India is inviting bids for reconfiguration of the six Boeing 737-800 in two class, along with provision of in-flight entertainment (IFE). Air India Charters Limited is already paying 25 per cent royalty to Air India, which is extremely significant to Air India to set off losses it is incurring in other sectors. What has not been stated so far is the strategy to meet pilot shortage, indicated earlier in this story. Air India management has put in place a new system. Since the pilots recruited by AICL felt insecure, it has been decided that henceforth pilots will be recruited directly by Air India, trained by it and then deputed to fly Air India Express. This will ensure that they are able to retain their seniority, pay scales, etc. They enter 737-800 as co-pilots and after sufficient experience, they come back to train and return as co-pilots in Boeing 777/747-400. This gives them an assurance they have not been cut off from career
progression of flying bigger aircraft. After completion of this process, they once again go back to the flight academy for further training to return as commanders of Boeing 737-800 and then return to only go back as commanders of Boeing 777 and 747-400. Air India board has already approved that new entrant pilots will be given Rs 1 lakh and increments on annual basis of Rs 15,000 per month for the first year, Rs 20,000 a month for the second year and Rs 30,000 a month for the third year. The system of contract employment in Air India Express has been abolished for Indian pilots and is applicable only to expats. All this is fine. But how does it still make Air India Express an LCC. An Air India official said the company has to match competition and needs to pay competitive wages to engineers. The cost management can be done only with cabin crew, catering, meal cost, etc., where it can use its discretion. At the most, only 50 per cent of the cost is controllable, which it now proposes to do with greater seriousness. For instance, none of the cabin crew of Air India Express is given hotel accommodation. The roster is so made that they start their duty and return to the base the same day and get home. The cabin crew of Air India Express do not get paid the same flying allowance as Air India’s, as in the latter the flights are much longer—practically covering a day’s work on one-way flights. As for pilot shortage, the official said Air India is shortly going to invite bids from specialist HR companies that supply crew, including commanders and co-pilots. The two top-class and world-class agencies in this regard are Sigmar, of UK, and Rishworth Aviation, of New Zealand. These companies have already indicated they will be able to supply Boeing 737-800 commanders and co-pilots for one-year placement with Air India/Air India Express. In any case, bids are being invited from accredited agencies to supply pilots of the required type rating. If one looks at the operations of Air India Express, it appears it has taken a leaf out of Alliance Air’s arrangement. Alliance Air recruits the entire cabin crew and cockpit crew on contract. Today, it has stopped recruiting when most of its ageing Boeing 737-200 pilots quit to join new airlines after being retrained on more modern aircraft, be it Boeing or Airbus narrow body aircraft. According to a recent presentation Alliance Air made to the Ministry of Civil Aviation, its current problems include poor operational reliability, severe pilot shortage, no way forward movement and totally de-motivated staff. Compared with Air India and Air India Express, where the same aircraft type is
If one looks at the operations of Air India Express, it appears that it has taken a leaf out of Alliance Air’s, arrangement
being used with the exception of A310 and which may go out of the radar in due course, in Indian the story is different. While the national carrier has gone for an all-Airbus fleet, its subsidiary, Alliance Air, is still saddled with at least 10 Boeing 737-200, which are nearly 25 years old, the turbo prop ATRs and a shrinking route map. The entire fleet will have to be scrapped and as per plans it was hoped that at least five of these planes would be converted into freighters, for which global tenders have just been received and opened. It is a tough call for Alliance Air. What really is its future and what should it do? (Cruising Heights will carry a detailed Alliance Air perspective in the next issue). Merger, therefore, is an option that is being seriously viewed by the Ministry. Having said that, what is left in Alliance Air for merger with Air India Express except for technical staff. The non-technical staff has nothing to contribute and the forced merger would weigh only on Air India Express. Perhaps it would be better to rationalise the staff, many of which came from the defunct Vayudoot and add the leftover to Indian before the merger with Air India happens. Let’s see what the Accenture-led consortium does?
Carrying cargo WITH AIR CARGO traffic expected to outpace passenger air traffic in the next two decades, Indian is planning to convert five of its Boeing aircraft into freighters and intends to operate them on a hub-andspoke pattern, with Nagpur as the hub. The five Boeing aircraft, currently being operated by Alliance Air, are expected to be converted to cargo planes as soon as the global bids are processed and finalised. Alliance Air is expected to induct an Airbus A319 aircraft on lease for its winter schedule, and together with the converted planes, it hopes to become a mighty cargo airliner in India. “The Rs 25 billion air express cargo market is witnessing a 20 per cent growth year on year. This is a growing market that Indian plans to enter and expand over the next few years,” the company said in a statement last year. The air cargo service will cater to six major cities—Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad, with Nagpur as the hub. Hub-and-spoke is a pattern where one airport act as a hub, with all planes returning to it from spokes (oth-
CRUISING HEIGHTS August 2006
er destinations). This method has proved to increase the connectivity from even remote locations to the main feeder line. Nagpur airport has been selected as the hub due to its geographical positioning, so that air cargo from all corners would be brought to a central point for onward distribution to different destinations. The dedicated freighter aircraft operations will enable Indian to service the courier market even at the retail end, offering a reliable, round-the-clock, doorto-door, value-for-money operations, Indian said, adding this would help in optimal utilisation of the five B-737. The timings of the freighter flights will be set to suit the express cargo market, and all kinds of cargo, including perishable goods and medicines, would be ferried.
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DIP/0677/2006-07
DIP/0677/2006-07
COVER STORY
TAKING OFF!
IndiGo, India’s 13th airline and the new kid on the block took off on August 4. Low-profile promoter Rahul Bhatia, of Interglobe, believes he will end up setting the best LCC in the world. K. Srinivasan takes a look at the IndiGo world and the IndiGo dreams.
I
T WAS a low-key launch for a 100aircraft venture. No hoopla, no band baaja and no Page Three paparazzi! But friends and associates say it’s typical of the man. There was Jeh Wadia, there was Captain Gopinath, there was Commerce Minister Kamalnath and there was Civil Aviation Minister Praful Patel. As for the rest, well they were all FoB (Friends of Rahul Bhatia). Patel summed it up perfectly with a small but witty speech, “It’s a low-cost launch by a low-cost airline.” IndiGo took to the skies on August 4, fulfilling a long, long ambition of Bhatia’s to create a world-class low-cost airline that could be a model for others around the globe to emulate. It’s been a long trek, though, for the 47-year-old electrical engineering graduate (University of Waterloo, Ontario, Canada) from the time he set up Interglobe Enterprises in 1989 as a multi-dimensional travel company. But the real break came in 1994 when Galileo, one of the two best-known CRS (computer reservation systems) in the world, joined the Interglobe portfolio and there has really been no looking back since then. (See box: The Empire). But Rahul has plenty to thank his father, Kapil, still the Executive Chairman of Interglobe and the self-made travel insider, who gave his son the crucial financial and
IndiGo took to the skies on August 4, fulfilling a long, long ambition of Rahul Bhatia’s to create a world-class low-cost airline that could be a model for others around the globe to emulate
strategic muscle to straddle the chasm from a small-time player into a national giant. One of the pioneers in the travel trade, Kapil Bhatia worked for years at Ambassador Travels as its Sales Manager. He founded Delhi Express Travels in 1964, which slowly evolved over the years to become Interglobe. Today, the company, worth over Rs 1,700 crore, continues to be privately held, with Rahul at the helm. The father quite clearly is proud of his son’s success, but takes a backseat and can be seen more often in the cosy environs of the Delhi Golf Club. With Galileo and the clutch of general sales agencies of the likes of United and Virgin, Rahul was able to leverage the business across a wide spectrum and rapidly expand his portfolio. “The travel business has usually been one-dimensional. If you are an IATA-approved travel agent, you think you have arrived. Interglobe in that sense is the first company to go for a complete integration of products and processes going for backward and forward integration as in manufacturing with the final piece in the jigsaw being the airline,” said one industry veteran, who declined to be named. Strangely, nine out of ten people one spoke for this story wanted to remain anonymous. When the 100-aircraft story broke on the fourth day of the Paris Show last year, there was an absolute sense of incredulity all around. One hundred A320 in the Indian market! It was the biggest single order for any one model and the biggest, by a long mile, from an Indian company. What made the Interglobe announcement even more baffling was the fact that just months prior to that, in the spring of 2005, Rahul had
indicated a ‘serious rethink’ on starting an airline. His argument: there were too many players in the sky. When journalists quizzed him on his u-turn, Rahul was quoted as saying, “I was pushed to say that. My plans were not ready and other issues were being finalised. I did not want to make a big announcement without all the plans. That is the reason why I took that stand.” Pretty uncharacteristic of the man! Anyway, in the 13-14 months since that seismic announcement, Rahul Bhatia has taken a backseat. His co-promoter, Rakesh Gangwal, has helped him pick a team that, in the words of the US-based former US Airways CEO, is “world class” and probably the best of all the airlines operating in India. Bruce Ashby, the company’s affable CEO, is, if one may be permitted to use the word, a chela of Gangwal’s. Ashby saw it all as Gangwal ordered the A330 for US Air, started Metrojet, increased market capitalisation from $800 million to $8 billion and gave the company a new profile. As he openly admits, he didn’t want to “miss the opportunity and kick myself later” when “my former boss” offered me the chance to head a start-up. In the close to a year that he has been here, Ashby has put together a formidable talent pool (See box: Who’s Who) of diverse
individuals who will now run this company. Almost every key position is held by an ex-pat—barring the CFO, a dyed in the wool, Mumbai-born chartered accountant, who is a legend in the Middle East. But will they work in the Indian context when you need to run every other minute to the DGCA or stand in the queue at AAI for your slots or curry favour with the bosses at Rajiv Gandhi Bhawan? It is here that the team of vice presidents—all veterans of the Indian aviation scene—comes into play. Shakti Lumba and S.C. Gupta are Indian Airlines veterans, who can tell the weather at the DGCA or the AAI with their eyes closed. And if they fail, Rahul is there. It happened last month at the first Air Operator’s Certificate (AOC) preparedness meeting
COVER STORY
The empire
Galileo India Controls 48 per cent of the CRS system nationwide, which translates into over 12,000 terminals. An undoubted asset for IndiGo.
Interglobe Technologies Integrated IT and BPO solutions. State-of-the-art offices in Gurgaon, with a client list that includes United Airlines, Air Deccan and now Kingfisher.
Hospitality Interglobe Includes cruises, holidays and hotels. Along with Accor of Dubai, it is pursuing the Ibis brand across the region.
IndiGo
Interglobe Air Transport General Sales Agent (GSA) for an eclectic group of airlines, which includes Star Alliance members, such as United and Varig. with the DGCA when it looked that IndiGo’s August 4 launch would be delayed. Finally, it took a meeting between Rahul and Praful for the process to be fast tracked. But it isn’t just some magic chemistry with Praful that works in favour of Rahul Bhatia. He obtained the licence to start an airline when Rajiv Pratap Rudy was the Civil Aviation Minister. The two are still very good friends. His friendship in the bureaucratic circle runs deep, and it’s no surprise those officers who have served in the ministry have a special equation. Yogesh Chandra and Anil Baijal are just two names amongst the dozens who are friends with him. Time and again he has told associates that they should separate the running of the airline from managing the ‘atmosphere’. That’s a job that’s naturally assigned to him. Interestingly, before he obtained his licence, for close to two years, Rahul was hoping to take over Royal Airlines, the rechristened Modiluft, and was in talks with Bulu Kansagra, the South Africa born London-based commodities tycoon. It was
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Before Rahul obtained his licence, for close to two years, he was hoping to take over Royal Airlines, the rechristened Modiluft, and was in talks with Bulu Kansagra, the South Africa born London-based commodities tycoon. CRUISING HEIGHTS August 2006
Interglobe Aviation services The most ambitious and the latest of Rahul’s projects—a 100aircraft world-class LCC that got a low-key launch on August 4. a time when Siddanth Sharma, the Chairman of SpiceJet (which is how Modiluft was finally christened), was literally working out of the Interglobe offices in Gurgaon. Somehow, Royal didn’t happen, Rudy arrived on the scene, and Rahul got his licence to start an airline. Bulu left to collaborate with Ajay Singh on SpiceJet and Rahul partnered with Rakesh in the IndiGo adventure. No one knows the exact nature of their investment. Gangwal is cagey about it and Rahul isn’t talking. If insiders are to be believed, IndiGo investments chipped in with 40 per cent of the initial investment (one reason for the name IndiGo for the airline) and Rakesh and Rahul have brought in the rest. Talking to the media, Rahul was circumspect and said that amongst all airline companies it was the best capitalised at the moment. But no one is talking numbers, though the general chat is between US $25 million and $40 million. “I have known Rahul since early 1990s. He is a tremendous individual and a great entrepreneur,” Gangwal said in a brief reply to his partnership. It’s clear that the
‘NO GIMMICKS LIKE RS 1 FARE’ IndiGo CEO Bruce Ashby is to the point in a long interview with R. Krishnan and K. Srinivasan. Excerpts. Q: IndiGo is famous for its 100-aircraft deal. Could you deal us the deliveries over the next five years? A: It is a 100 airplanes over 10 years, so it’s an average of 10 every year. By the end of 2006, we will have six aeroplanes; by the end of 2007, we will have 15; and by the end of 2008, we will have 23. On an average, we will have a new aeroplane every four to six weeks in the foreseeable future. And they are coming steadily, not in bunches. It is always one every couple of months. It’s pretty regular. Q: What is your seat configuration and the seat pitch? Is it the same as your competitors’? A: It is 180 seats, single-class configuration. The pitch is about 30 inches, but we do have a well-designed seat. When we were putting together, we went to our manufacturer—Weber—and got a seat that is specially designed for a short-haul flight. And it has a hollowed-out back component that gives more room for your knees, and the thin design on the back gives you and the people behind you more legroom.
but we have to finance them. We are not paying cash. In a sense, we do not own any of them. Unlike borrowing it from someone who owns it, we are going to finance them from operating sale-leasebacks and finance leases. Q: But the leasing companies may not approve your specs? A: We have had to go to the leasing companies and share our specifications, and they have approved them. We have had no issues attracting financing. Q: If there are manufacturing delays, you may have to go for a leased aircraft without the same specs. A: We wouldn’t want that. We have had opportunities to take other A320 with other specs and we have declined them. We could have started operations a few months ago, but to do that we would have had to take aeroplanes that did not match our specifications in a lot of ways, and that, unfortunately, has the result of raising costs—different spare parts, different training, there would be so many things different.
Q: Is it the first time this is being tried? A: It is not the first time that it has been designed or it has been used, they have been improved gradually over the years. Unfortunately, I am not sure which airlines in India use them. Generally, lowfare carriers use them, specifically targeting short hauls. One of the advantages of what IndiGo did was to design its own aeroplane and order in quantities. You sift through these things and pick them without taking someone else’s aeroplane.
Q: Are your engines, too, different? Aren’t they the usual V2500 or CFM? A: We have IAE engines. We have the A5 engine, which is an improved version of the A1, which is what Indian has. In every aspect, we have gone for the latest technology. When you do the leasing, it is a lot more than the seats; they want to check everything, the radios, the galleys… The seats are one of the least important—they can be easily changed.
Q: So you are ruling out using leased aircraft, if at all it will be sale-leaseback. A: We designed every aircraft,
Q: How are you really different from Air Deccan? It is the same single-class, no-frills approach.
A: We don’t think it is the same. There are so many things that are different. When you talk about low-fare carriers, there is often a lot of confusion about what that means. There are models and models of LCCs. The first principle of the IndiGo model is always offer affordable fares and no gimmicks. One thing that we wouldn’t do is have one seat for free and every other seat for Rs 14,000. Q: So no one-rupee fares? A: I am not saying we won’t have a sale, but it is not going to be a gimmick like two seats or five seats for one rupee. When we offer fares, we want to offer it for a significant per cent of the aeroplane, and want to leave it out there for people to buy. When we raise the fares, it is not going to go up a lot. So, it will always be affordable. The other thing we do is spend a lot of time thinking what it means to fly short
CRUISING HEIGHTS August 2006
distances. What it means is that you spend probably a lot more of your time getting to the airport, going through check-in, going through security and waiting for the plane to leave, if there is a bit of delay. So one thing we have tried very hard to do is see how we can do everything we can in trying to minimise delays and cancellations, make sure all the information is available, keep the lines short and make that as hassle-free as possible. So, we have invested a lot of money and software in process and training. I don’t want to say no other airline does that, but we focused on that really, really hard. And, I think, it will show in the results, because in India there will be a lot of people who want to fly. The challenge is not finding flyers. Q: Where are the roadblocks? A: Roadblocks can happen
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anywhere; the one place certainly is the check-in. We have tried to design several ways to check in that will speed people through the airport. Probably, it is the simplicity of our operations, all of our bookings are made in one system, our records are kept in one place, and so it is easy to process. And we have invested some money in technology, bar coding and the like to make sure we don’t have to type out information. I don’t think there is any one thing that we are doing now that is completely different, but we will be announcing a few things that will be truly different. Q: Today both legacy carrier like Jet and LCCs like Air Deccan, Spice, Go are making losses. Therefore, what gives you confidence that your setup is different from others’ when pilot salaries, fuel cost, parking, landing and navigation charges are same for everyone? A: Well they are start-up carriers, and you would expect that for at least 18 months to two years. I have spent a fair amount of money building IndiGo. It is going to take nearly two years to amortise that money, so I don’t see it as surprising that airlines operat-
ing just for a couple of years making operating losses. These are not big losses; their flights are pretty full. We know we will be making operating losses. The alternative to charge more is not with us; that will beat the whole purpose of IndiGo. Q: No Delhi-Mumbai for you? A: We are not flying DelhiMumbai for a long time. We talked about it quite a bit… Everywhere we fly, we have looked at waiting-in-the air time. It is very expensive. It is so expensive that when you look at margins and our cost structure, it doesn’t make sense. So we are trying to find places where we don’t have to wait in the air… There are lots of opportunities, so it’s not that we have to fly to Mumbai. In fuel terms, it is 13-14 gallons per minute to hold an A320. So if you did a revenue calculation, it’s probably one passenger per minute of holding time. So if you hold for 40 minutes that’s 40 seats given up. That’s a lot of money. It makes it so unattractive that we would be better off flying to a smaller place with fewer people, charging the same price and actually making more profit.
two first met when Gangwal was in the thick of the airline business and the friendship has blossomed over the years. “Rahul has picked Gangwal’s brains on every aspect of aviation. It is a friendship fuelled by their mutual passion for the business,” said one insider. It is no surprise that Airbus confirmed the 100-order deal—as rule, manufacturers are notorious for giving short shrift to new entrants—for Gangwal was part of the deal. During his stint at US Air, he had created waves by becoming the first one to get Airbus into the US market. It gave him the sort of leverage and respect at Toulouse that is hardly available to a newcomer. If that was one asset, the other was the huge experience that Rahul had in the backend of running an airline business and Gangwal on the operational side. It is no surprise, therefore, that the duo, along with Bruce Ashby and his team, are creating
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Q: Have you worked out your route strategy? A: We have worked it out for the next five years. We have actually plotted out five years of flying and what works. Of course, we will adjust it constantly as we go forward. There are a lot of blanks. If you look at the total numbers, there aren’t very many lowfare jet planes operating in India. There is SpiceJet and Air Deccan, and each of them has only a handful of aircraft. If you look at other countries, there are hundreds and hundreds of low-cost planes flying around with a similar population and travelling demographics. So there is opportunity for lots and lots of growth. There are 30-32 cities in India that have a population of more than a million people that handle A320 and 737 today and are, relatively to other places, woefully under connected by low-fare carriers. Q: New airport developers in Delhi and Mumbai, besides those at Bangalore and Hyderabad, are reportedly seeking much higher charges for parking and other aeronautical side charges. How will you keep your costs down?
The ARA TRIO: ARA Enterprises is the foodie side of Rahul’s. Along with friends Anil Chanana (Ameera Exports) and Arun Khanna (exClaridges), he has set up an enterprise to celebrate good food and drink. They say his knowledge of food and drink is unparalleled. Piccadelhi and Sola Topee are their first two ventures. Arun (centre) is the nuts-and-bolts man, while Rahul and Anil take a backseat. CRUISING HEIGHTS August 2006
A: Airport improvement projects cost money, and it is not surprising that charges would be raised. Obviously it depends on a number of factors, and we will need to see specific numbers, but if the result was less congestion, more parking, better runway utilisation, etc., then the savings achieved in reduced fuel consumption and throughput may more than offset the costs of upgrading as well as improving the passenger experience. Q: Why have you chosen to not sell foodstuff on board your aircraft? A: I have done that before in other airlines and found that it was very expensive or else very bad tasting. I wasn’t happy with the product. Aeroplanes are really bad restaurants. But they will get water, for free. Q: What is your cabin crew going to do; especially on a three-hour flight to Guwahati when there is no food and drinks on board? A: Well they will do the safety procedures and serve beverages…they’ll probably have some free time in the middle if nobody is asking them anything.
several benchmarks that will be first for any aviation company in India. Just take a look at some of their innovations: The entire maintenance of the wheels and brakes has been outsourced to Horizons. The entire avionics (spare parts and maintenance) has been outsourced to Thales. They are believed to have done the same for the APU (auxiliary power units) with Hamilton Sundstrom. They have set up a centralised departure that will ensure remote dispatch of aircraft by faxes and email, which will finally move to videoconferencing. The back office BPO has been outsourced to parent company, Interglobe. Interestingly, this is the only piece of action that Interglobe enjoys with IndiGo. Bhatia is categorical that he doesn’t want his other companies to feed off IndiGo, and
anyone wanting business with the airline will have to compete for it. For example, Interglobe competed and lost to Navitaire when it came to its Internet-based reservation system. That has, however, not stopped competitors of being queasy about doling business with a direct competitor, and one of them said that it is well possible that IndiGo went with Navitaire simply to avoid talk of conflict of interest. Air Deccan, for example, has been using Interglobe, but in a recent move decided to shift to Navitaire. The only one using its system at the moment is Air India Express. More recently, Kingfisher, too, has shifted from a competitor to Galileo, and in this shift lies a Kane-and-Abel story that no one is willing to talk about. It is also in a sense Galileo versus Amadeus. Ankur Bhatia and his family run Amadeus, which controls close to 52 per cent of the Indian market. Although Ankur isn’t related to Rahul, the Bhatia families apparently were together as partners in the earlier generation, and the parting had some bitterness to it. No one wants to talk about it, though it is evident that the wound runs deep. Both in Air Deccan and later in Kingfisher the original contract was with Bird and Company, which runs the Amadeus brand in India. On both occasions, Ankur lost the deal to Rahul Bhatia. Finally, will IndiGo work? Even the skeptics agree the Interglobe work ethics is exceptional, and Rahul is a fine leader of men. As one staffer said, “His rejection rate is quite high and he interviews every candidate personally. His philosophy is simple: the customer comes first. Treat him with grace and dignity. It is a philosophy he has extended to his staff.” Naturally the attrition rate at the company is one of the lowest in the industry. If human component is one asset, he must also thank his stars that the Jet-Sahara deal floundered when he was almost ready to take off. Their pilots, cockpit and cabin crew and ground staff were also ready for plucking and IndiGo lost no time in recruiting them. He is also lucky in the sense that his is the country’s 13th airline to takes off just as the infrastructure is being put in place. And with over 12,000 terminals across the country, he will surely leverage the strengths of the Galileo network to bring in the reservations for IndiGo. Nonetheless, it is a long, hard slog in an industry where leaders and LCCs are all making operating losses. But Rahul is optimistic and so are his men and women. Next time you see them digging into their noodles at China Club or having a Mulligatawny soup at Sola Topee at the Global Business Park, don’t be surprised. They are dining at his restaurant and he offers no discount. But those who have enjoyed the experience, say it’s full value for money.
WHO’S WHO Messers Bhatia, Gangwal and Ashby have put together a top quality team, drawn from such diverse companies like Emirates, South African Airways, Air New Zealand and, of course, Indian Airlines and Air Sahara Adrian HamiltonManns (Chief Commercial Officer): A native of New Zealand, he is responsible for marketing, pricing, revenue management, distribution and network planning at IndiGo. He joined late last year after a controversial exit from South African Airways—some reports suggested his contract was not renewed, while he told reporters he hadn’t renewed it. An airline industry veteran, he has worked earlier with Seabury Airline Planning Group, Qatar Airways and Air New Zealand. He is a key member of Bruce Ashby’s team pricing and network planning are key ingredients in the IndiGo gameplan and HamiltonManns is a a master in this business.
the first step toward achieving its reducedpaper vision. This will include operational performance calculations and a transition from paper-based aviation charts to eCharts, depending upon regulatory approvals, conversion of all of its paperbased operational manuals and procedures into digital format for finally moving it into day-to-day operations. The overall goal will be more efficiency with less cost than a traditional paper-based operation— translating into a more nimble airline in the domestic market. Not surprisingly, the Airports Authority of India, DGCA and Indian Airlines have provided a major recruiting ground for IndiGo. Its key players are from the public sector, with each of them having over a quarter century of experience.
Riyaz Peermohammed (Chief Financial Officer): Ask anyone in Emirates and they’ll tell you what a legend Peermohammed is in the Dubaibased airline giant. A master in crafting worldscale financial deals, he raised pots and pots of it for Emirates to finance its mega plans from a wide range of regional and international sources, including conventional export credit agency and commercial asset-backed debt, and non-conventional sources, such as Islamic funding and equity from Japanese investors. Hopefully, he’ll do the same for IndiGo’s 100-aircraft dream.
Captain Shakti Lumba (Vice President, Flight Operations): An A320 commander, he was the head of operations when Indian Airlines began Alliance Air. A blunt speaking, no-nonsense workaholic, he will have his work cut out as the aircraft arrive one by one.
Steve Harfst (Chief Operating Officer): He will be responsible for all of the operational functions at IndiGo. In charge of worldwide operations of North American Airlines as its COO, he helped the company maintain profitability in the midst of a challenging industry environment; he was also involved in aiding the carrier to triple its size. Apart from the day-to-day operations, he has put underway an ambitious multimillion-dollar multi-year initiative as
CRUISING HEIGHTS August 2006
S.C. Gupta (Vice President, Engineering): He joined IndiGo late last year and is responsible for maintenance and engineering. He superannuated from Indian Airlines as its Director (engineering) and prior to that was the director of the national carrier’s Jet Engine Overhaul Division. Like Lumba, he, too, is a public-sector veteran with oodles of experience. Captain K.P.S. Nair (Chief of Flight Safety): Former DGCA and AAI official, he knows the regulatory system inside out. Having spent time both at DGCA and AAI, he, along with Lumba, will be the key to the airline’s interface with the regulators. Suman Chopra (Vice President, Inflight Services): The Air Sahara-Jet slugfest saw her move to IndiGo. Again, former IA cabin crew personnel, she later worked for Emirates before moving on to Air Sahara and now to the new kid on the block. She has been over a quarter century in the business.
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SPECIAL REPORT
The Farnborough Air Show was once again a Boeing versus Airbus show. An embattled Airbus trying to regain the spotlight and Boeing basking in the glory of the Dreamliner 787. A special report.
A
S USUAL it was the Boeing versus Airbus story at the 2006 edition of Farnborough. No surprise really the competition between the two aeroplane giants has intensified over the past few years, and Boeing, which was buffeted and battered for years, has finally emerged without doubt as the clear winner in the new generation aircraft sweepstakes. The A380 may have been more in the news, but there is no doubting that the 787, or the Dreamliner, as it is better known, is the killer aircraft of the next generation. Farnborough only reaffirmed this reality.
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The commitment from SIA provided a big boost for the Airbus 350 programme CRUISING HEIGHTS August 2006
Embattled Airbus ended the Air Show announcing that Singapore Airlines had signed a letter of intent for up to forty A350-900 XWB and up to fifteen A380, for which SIA is the launch customer. The LoI covers 20 firm plus 20 options for the A350 XWB and nine new orders for the A380 plus six new options. The A350 will be delivered in 2012, and as an interim measure SIA will lease 19 A330-300 for delivery in 2009-10. The first of the newly ordered A380 will be delivered in mid-2008. The commitment from SIA provided a big boost for Airbus, which spent the weeks before the show attempting to recover from delays to the A380 programme and contending with airlines’ concerns over the original A350 design as well as a political firestorm that led to the resignation of CEO Gustav Humbert.
THE MAGIC OF AEROPLANES: A panoramic view at Farnborough International Air Show as a visitor walks past a giant sized poster
FROM THE AIR SHOW
SPY IN THE SKY: The RQ-4 Global Hawk unmanned plane on display at the Air Show CRUISING HEIGHTS August 2006
Overall, Airbus announced firm orders and commitments from 12 customers for 182 aircraft, valued at $21.5 billion, at Farnborough. “This air show clearly demonstrates the confidence our customers are placing in Airbus to deliver the product they need,” new President and CEO Christian Streiff said. Appearing before the international aerospace community for the first time, Streiff declared that the company is in the middle of a crisis but pledged “to do everything to turn this crisis into opportunity,” including “change our bad habits” and “learn humility.” He added, “The Number One priority for me is very clear: we need to regain the confidence of both our customers and shareholders.” According to the parent company EADS, neither the delay in the delivery schedule of A380 nor the changes it has been forced to incorporate in its proposed A350 wide body aircraft programme will affect the deliveries of other aircraft from the Airbus stable. It hopes to deliver a record 430 aircraft in the calendar year 2006. However, this has not eased the setback because of the problems faced by A380 super jumbo and A350, both of which will still be bought by the launch customer, Singapore Airlines. Besides retaining its order for the super jumbo, SIA has also signed an MoU with Airbus to buy 20 of the redesigned A350 XWB (Extra Wide Body). The A350 is supposed to compete with Boeing’s Dreamliner 787, and in all probability will be available four years after the first Dreamliner is delivered. In a way, this only confirms that A320 has continued to remain and will remain the mainstay of Airbus Industrie’s cash cow. Boeing opened the Farnborough Air Show with the staggering news that its order book could extend for up to a thousand planes and it was in negotiations with 30 customers. Commercial Airplanes CEO, Alan Mulally, delivered “Boeing’s good news” just moments before Airbus unveiled its remade A350 XWB (extra wide body). According to Mulally, Boeing has a record high backlog that at the end of the first quarter topped $132 billion, almost over double of what it was just three years ago. The 787 is leading the charge with 28 customers for 403 aircraft. He admitted supplier’s delays and weight issues on the 787, but told journalists that things were in place to address them. “We have never missed a guarantee to a customer,” he said, “Everything looks real good.” The 787 and 777 account for 61 per cent of Boeing’s backlog, with the 737 at 32 per cent, the 747 at seven per
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TRUE CHAMP: A US Marines BellBoeing MV-22B Osprey. The aircraft taxied onto the runway when the props were slowly lowered into position for the extremely short take-off run.
IN THE SPOTLIGHT: The A380 was again the cynosure of all eyes at the Air Show, the delay in production being the talking point cent and the 767 making up the balance. Mulally declared that the 767 will continue to make a contribution to the backlog for “some time yet.” He explained that as demand for 787 outstrips supply, airlines are seeking 767 to fill capacity shortfalls. He added that despite fuel prices, yields and productivity are rising and load factors are at all-time highs as the industry continues to restructure and liberalise. Meanwhile Boeing posted a US $160 million loss in the quarter ending June 30, 2006, due to more than US $1 billion in
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Boeing is now better placed than rival Airbus to deliver more number of wide body aircraft to customers CRUISING HEIGHTS August 2006
previously disclosed charges stemming from a legal settlement with the federal government and delays with development of international surveillance aircraft. Boeing hopes that the US $615 million settlement with Justice Department would finally set at rest its major defence contract scandal. As an additional cost cutting mission, Boeing is closing down its Internet division Connexion for want of business. However, it is now better placed than rival Airbus to deliver more number of wide body aircraft to customers around the world based on record number of bookings in the first half of 2006. These will see Boeing re-emerge as Number One aircraft supplier in the world, a position it lost four years ago to Airbus. This will also propel Boeing into good profits in the very near future. In another major development, seven major European aerospace companies— Airbus SAS, Dassault Aviation, Eurocopter SAS, Liebherr-Aerospace Lindenberg, Rolls Royce, Safran and Thales—signed a letter of intent in a Joint Technology Initiative “to radically improve the impact of air transport on the environment and... deliver innovative technologies and solutions.” The initiative, which is being launched jointly with the European Commission (EC), is budgeted at an estimated €1.7 billion over the seven-year programme. Half of the funding will come from the EC and half from the signatories to the LoI and other parties. Goals to be met by 2020 are those set by the Advisory Council for Aeronautics Research in Europe and include a 50 per cent reduction of carbon dioxide emissions through drastic lowering of fuel consumption, an 80 per cent reduction in NOx emissions and a 50 per cent reduction in exter nal noise.
SPECIAL REPORT
HELLO, IT’S
GOD H CALLING!
GOD’S ABODE: Badrinath and Kedarnath continue to attract pilgrims through every season
Um, Kedarnath or Badrinath? Perhaps the arduous Kailash Mansarovar? How about Tirupati, Haridwar or Vaishno Devi? If you’d rather spike your pilgrimage with a foreign flavour, well, then, there’s Nepal’s Pashupatinath Temple, too. Neeta Lal reports.
CRUISING HEIGHTS August 2006
ELLO AND welcome to the brand new world of religious and pilgrimage (R & P) tourism, where salvation seekers are hotfooting to their favourite religious hotspots with the help of savvy travel agents. Ergo, from the snow-swathed Amarnath mountains to the cavernous Vaishno Devi shrine, the world-renowned Tirupati temple to monastic tours in Himachal Pradesh, there’s nary a divine destination that’s not on offer to a zealot. No wonder, R & P packages are flying off shop shelves faster than you could say Tirupati Tirumalai. In fact, according to a Domestic Tourism Study (DTS), conducted by the National Council of Applied and Economic Research (NCAER) in May 2006, eight crore domestic
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SPECIAL REPORT
BUDDHIST TOURISM
CHAR DHAM COTTAGES: Private developers have taken big strides in providing top quality accomodation to visitors tourists in India visit religious places every year, generating a whopping Rs 10,531 crore annually from R & P tourism alone! While Tirupati tops the list, with annual revenue of over Rs 1,000 crore, Vaishno Devi isn’t far behind in the income sweepstakes, with annual revenue of Rs 750 crore. The Char Dham Yatra (comprising the quartet of Kedarnath-Badrinath-Yamunotri-Gangotri) grosses Rs 500 crore annually. However, according to the DTS, Ajmer Sharif, in Rajasthan, and Bodh Gaya, in Bihar, are relatively tepid earners, with Rs 25 crore each. In percentage terms, Maharashtra gets the highest R & P tourists, followed by Karnataka, Andhra Pradesh, Uttar Pradesh
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Launched in 2004 by the erstwhile tourism minister Renuka Chowdhury, Buddhist Tourism was aimed at steering Bihar out of a protracted spell of economic under development, coupled with 2,550 years of Buddha’s Mahaparinirvana and the growing popularity of Bodh Gaya—the seat of Buddha’s enlightenment—as a UNESCO World Heritage Site. The circuit traces the main sites associated with Lord Buddha’s life, from Bodh Gaya and Rajgir to Nalanda and Vaishali. Spiritually, too, this circuit has a lot of significance for the whole of Southeast Asia, while internationally, this area has been attracting scholars as a seat of learning for ancient texts and manuscripts. Realising its immense potential as a revenue generator, recently Tourism Minister Ambika Soni, too, visited some points on the circuit to emphasise the need for a world-class infrastructure here. She prodded Bihar’s state
CRUISING HEIGHTS August 2006
BUDDHA’S TRAIL: The Buddhist pilgrim circuit has a huge following, with visitors from China, Japan and Thailand increasing each year machinery to augment the tourist infrastructure in the state, considering the Buddhist circuit already receives about 3.5 lakh visitors annually. It is projected that with world-class facilities in place, the circuit can easily touch the figure of 15 lakh visitors annually. The state government, too, realises that having lost its lucrative and mineral resources to Jharkhand, after separation in 1999, tourism is one sector that can fill its empty coffers once again.
and Tamil Nadu. According to Dr R.K. Shukla, project leader of DTS, southern states account for the highest number of R & P tourists, while business tourists dominate the profile of the north. Similarly, while 30 per cent people tour the south for religious purposes, the figure for north stands at 20 per cent, while northeast and central India contribute 10 per cent each. What explains this sudden devotion for R & P tourism? According to trade pundits, though religious tourism has always existed in India, with sages and seers travelling through swathes of countryside in search of inner peace, its packaging is what’s a new phenomenon. However, the basic difference between tourism per se and R & P tourism, according to experts, is that the latter becomes a reality only when ‘believers’ participate in the journey with an intensity of conviction. Or, when the aim isn’t merely touristy interest in a site, but a mission of faith. Says Vibhas Prasad, Director (Marketing), Leisure Hotels, pioneers of the immensely popular Char Dham Yatra, which was launched four years ago in the Indian market, “People have always visited religious places in India, but it’s just that now the sector has gotten more organised after waking up to the market’s tremendous potential.” And that they have. In fact, spurred by the exponential market demand, even Nepal Tourism Board (NTB) has got into the act by recently launching a nationwide
PRAYING AT TRIPUPATI: Tirupati and Lord Venkateshwara are like magnets that attract devotees from all over India. There is a certain magic about the destination that is Number One amongst all religious piligrimage sites in India.
While Tirupati tops the list, with annual revenue of over Rs 1,000 crore, Vaishno Devi isn’t far behind in the income sweepstakes, with annual revenue of Rs 750 crore CRUISING HEIGHTS August 2006
print media campaign—Unleash Yourself—to sell its religious hotspots to India. The assorted tours—Holy City Tours, Mahakal Poojas, Ashram Stays, Hindu Temples, Buddhist Stupas, Manokamna Darshan, Holy Festivals and Teerth Yatras—are getting to be hugely popular. Neeraj Dhawan of NTB, New Delhi, explains, “We’ve received excellent response to our product in the Indian market. The Pashupatinath Temple, in Nepal, has always been a big draw for the Indians. But now we’re broadening our spectrum by offering tourists more choices.” The Unleash Yourself tours have been launched in synergy with Nepal’s local hotels and airlines to offer seamless travel and stay to the visitors. According to Dhawan, even in Nepal’s newly forged brand identity—Naturally Nepal–Once is Not Enough—religious tourism has been given a special push because of its demand in the Indian market. To reinforce its R & P tourism message, and cater to the religious tourism traffic from South India, NTB had even conducted two seminars in January in Kochi and Coimbatore for travel agents. Last year, too, NTB was part of Travel Trade Fair (TTF) in Bangalore and Chennai, where the key areas of promotion were religious and pilgrimages sites. Another reason for the success of the R & P packages, point out connoisseurs, is that they are pretty high on EQ (Emotional Quotient). Marketed as balm for the mind,
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SPECIAL REPORT
Top spots for R & P tourism
Haridwar: Situated 214 km from Delhi, Haridwar is the base of the mighty Ganga, which hulks down to the plains from the mighty Himalayas. Amongst the many pilgrimage towns situated along the length of the river, Haridwar is arguably the holiest in the land. The town symbolises the gateway to the Himalayan pilgrimage shrines of Badrinath and Kedarnath. Haridwar means the ‘gateway to the abode of the gods’ and its history dates back to pre-historic times. In Hindu mythology, it was referred to as Kapilsthan. Rishikesh: On its mighty journey through the Himalayas, the Ganges rushes through the foothills in the gorges of Rishikesh. Surrounded by hills on three sides, Rishikesh is located on the right bank of the Ganga, 40 km from Dehra Dun, at the confluence of the Ganges with the Chandrabhaga stream. One of the many pilgrimage destinations in the Himalayas, Millions of Hindus congregate here every year to bathe in the Ganges. Rishikesh can be defined by three areas: the spot where the famous Laxman Jhoola bridge spans the river and lends its name to the locality; Muni-kiReti (literally Sands of the Sages), where yogis meditate, and the expanding township on the river’s banks. Legends abound here of renunciation, meditation, penance and salvation. The town has also devel-
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oped into one of the betterknown centres for schools of yoga and meditation. It is also well known for several Himalayan Ashrams and for the availability of treatment for a variety of stress-induced ailments using meditation practices and ancient herbal techniques. Char Dham: This is a term coined for the four most revered Hindu pilgrimage shrines. According to the Puranas, the Char Dham Yatra is of a very high religious significance. Pilgrims from all over the world brave severe topographical and weather conditions to visit the shrines. These four shrines are: Badrinath: Considered to be the abode of Lord Vishnu, it is situated at an altitude of 3,130 metres at the banks of Alaknanda. In the backdrop is the Neelkanth mountain peak, ensconced between the twin peaks of Nar and Narayan. The name is derived from wild berries, called Badri. Adi Shankaracharya established the idol of Vishnu in the temple. The main temple, Badrinathji, is dedicated to Lord Vishnu, who is said to have done penance in the mythical forest that once covered the mountains of Uttarakhand. Legend dates the origins of the temple back to the Vedic age. The present temple dates back to the time of Sri Shankaracharya, who also
founded a Math here in the eighth century. Near the temple is a thermal spring, known as Tapta Kund. Other famous thermal springs are the Narad Kund and the Surya Kund. Kedarnath: Dedicated to Lord Shiva, the shrine is revered and visited by thousands of pilgrims every year. It is perched at an altitude of 3,580 metres amidst snow covered mountain peaks and swathes of green. The temple is built of large, heavy and evenly cut grey slabs of stones and is more than a thousand years old. It has a garbha griha (sanctum sanctorum), where a conical rock formation is situated and a Mandapam for seating pilgrims and visitors. A large statue of the Nandi bull is situated outside the temple door. The nearest bus stop is Gaurikund, and pilgrims have to trek 14 km to reach the temple. Gangotri: The shrine is situated at an elevation of 3,200 metres, surrounded by deodars and pines. The original temple was constructed by the Gorkha General Amar Singh Thapa. Every year, people from all over the world visit the shrine. A number of ashrams and dharamshalas are located on the other side of the river. A natural Shivling is submerged in the river, where, according to mythology, Lord Shiva sat when he received the Scene at Har ki Pauri
CRUISING HEIGHTS August 2006
Goddess Ganga in his matted locks. A day’s trek takes one to Gaumukh, the source of the mighty Ganges. Yamunotri: The shrine lies in the western region of the Garhwal Himalayas. It is situated at a height of 3,235 metres. Goddess Yamuna is worshipped here and has special significance in Hindu scriptures. The idol is made of black marble. The river Yamuna emerges from the Yamunotri glacier, which is at a height of 4,420 metres near the Kalind mountain. This was the home of Sage Asit. The temple was constructed by Maharaja Pratap Shah of Tehri Garhwal. A hot sulphur spring pond is situated at Yamunotri close to the temple. Nearby places of interest include Surya Kund, Divya Shila, Sayanachatti, Janakichatti and Hanumanchatti. Vaishno Devi: The shrine is one of the most visited pilgrim sites in India. Situated at a height of 5,300 feet, the site is located inside a cave at a hilltop. It is sited amidst the folds of the Trikuta Bhagwati hills in the state of Jammu and Kashmir. At the entrance of the cave, the path turns into a narrow tunnel, with a cold stream, called Charan Ganga, running through it. The pilgrims have to wade through this to get to the sanctum sanctorum. Tirupati: The ancient and sacred temple of Sri Venkateshwara is located on the seventh peak, Venkatachala (Venkata Hill), of the Tirupati Hills, and lies on the southern banks of Sri Swami Pushkarni. It is by the Lord’s presidency over Venkatachala that He has received the appellation Venkateshwara (Lord of the Venkata Hill). The temple of Sri Venkateshwara has acquired a unique sanctity in Indian religious lore. The Shastras, Puranas, Sthala Mahatyams and Alwar hymns unequivocally declare that in the Kali Yuga, one can attain mukti (salvation) only by worshipping Venkata Nayaka, or Sri Venkateshwara.
body and soul, they are customised to appeal to the stressed-out, time-scrunched clients keen on achieving a triple whammy—a break from work, family holiday and salve for the mind. Raminder Negi, who rooted for the Char Dham Yatra en famille last year, is all praise for such packages. “We were thrilled to discover that even on a pilgrimage we could enjoy fivestar boarding/lodging. Earlier, religious yatras for Indians would usually be haphazard affairs, full of hardship. The organisation of this sector has been a big boon for the travellers.” Indeed. Leisure Hotels’ Char Dham camps, for instance, provide accommodation in luxurious, weatherproof camps with attached modern toilets, comfortable beds, hot/cold showers and a décor that matches with an individual yatra’s spiritual theme. The resident chef also rustles up gourmet meals as per an individual’s requirement. Gujarati, Maharashtrian, South Indian, Continental, take your pick. Apart from guided visits to the shrines and first aid at the camps, Ayurvedic massages are on offer for the bone-weary travellers. Similarly, for its Haridwar ‘Spiritual Quest’ packages, Leisure Hotel organises stays at its exclusive property (a heritage haveli)—Haveli Hari Ganga—on the banks of the Ganges, consultation with an astrologer/Yogacharya, Ayurvedic/ therapeutic massage/steam bath and a sumptuous vegetarian food spread. But while tugging at the punters’ heartstrings, these packages tug at his purse strings as well. For instance, NTB’s 17-day Kailash Mansarovar package (including heli transfers) is priced at around Rs 1 lakh, while a four-day Muktinath Dham Yatra is pegged between Rs 14,500 and Rs 30,000. Similarly, charges for Leisure Hotels’ Char Dham Yatra are pegged at Rs 2,000 per person per night, inclusive of meals, though excursions are charged for separately. Club Nine, another Delhi-based travel agency, which has got a ‘phenomenal’ response to its R & P packages to Amarnath, prices its five-day Amarnath Yatra (with air and heli transfers to the shrine) at Rs 29,500 per person. The package includes transfers from Delhi, accommodation, all meals and sightseeing. A spokesperson for Club Nine says, “When we launched these trips five years ago, there were few takers, but now we’re fully booked for the entire season within a week of advertising the packages in the print media. In fact, such is the interest in our product that we’ve launched four websites just on R & P tourism!” While the R & P tourism field is ostensibly dominated by private players, it’s not as if the state government tourism departments are lagging behind. However, there’s
BRAVING THE CHILL: Thousands do the Amarnath yatra each year braving the chill and the cold. It’s a cleansing of the soul for most of these pilgrims.
While the R & P tourism field is ostensibly dominated by private players, it’s not as if the state government tourism departments are lagging behind. They have been swift to launch packages, but the infrastructure development has clearly not kept pace. CRUISING HEIGHTS August 2006
no denying that they lack the killer drive that fuels private outfits. According to O.J. Abraham, of Karnataka Tourism Development Board (KTDB), the state’s splendiferous temples have always been a popular haunt of religious tourists. However, ever since the state has been pushing them through packages—over the last four years—there has been a perceptible jump in the number of tourists visiting them. “But we mostly get families or the elderly visiting these temples,” he explains. Similarly, the Himachal Pradesh state government, too, has been actively promoting the remote valleys of Lahaul, Spiti and Kinnaur, which have strong Buddhist traditions. Exquisite gompas, Buddhist monasteries and ancient temples built along bare mountainsides are being woven into tourist packages. These are the repositories of Buddhist art and culture, while the monasteries—aglow with the brilliance of painted murals, stuccos and elaborate thangkas framed with rich borders of silk—attract droves of tourists throughout the year. In Dharamsala, where the Dalai Lama has settled in exile, is a marvellous Tibetan township, which is increasingly luring scholars, pilgrims and tourists. Similarly, Rewalsar, a beautiful spot from where the Dalai Lama spread his doctrine of dharma, is another favoured hotspot for R & P tourists. But while the state tourism departments have been swift to launch packages, infrastructure development has clearly not kept pace. This is evident in a state like Bihar where Buddhist Tourism (see box) was launched with a lot of fanfare in 2004 at the cost of Rs 7 crore by the erstwhile tourism minister Renuka Chowdhury. However, even two years after the launch of the project, well-equipped airports, hotel rooms and good roads are seriously amiss. The state requires 10,000 rooms in the peak season (October-March) for Buddhist Tourism, but only 400 currently exist, with only two hotels in the star category at Bodh Gaya and one in Rajgir, both of which are important points on the circuit. Apart from this, there’s absolutely nothing available (apart from tacky guest houses and inns, of course) at Nalanda and Vaishali, both of which are integral points along the Buddhist Tourism circuit. Ultimately, as a state government official put it, “While it’s all very well to tomtom about R & P tourism and its huge potential as a revenue earner for a state, the concept won’t realise its true potential till it is backed by solid infrastructure, good air/rail connectivity and safety for the tourists. In their absence, R & P tourism may well end up as a chimera that failed to live up to its devotees’ expectations.”
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TOURISM NOTES Tourism master plan for holy places: The Minister of Tourism & Culture told the Rajya Sabha that during 2002 and 2003, the Ministry of Tourism had commissioned 20-year perspective plans for the states/UTs with the objective of promotion of tourism and development of tourist infrastructure in all areas, including holy/religious places. The plans evaluated the existing tourism scenario of the states, identified tourism projects, destinations and circuits, along with requirements of infrastructures for their development. Besides evaluating the infrastructure requirement, the perspective plans have given an Action Plan for development of tourism in the states in the short and long terms. Ambika Soni further informed that as the development and promotion of tourist spots/places in states/UTs is primarily the responsibility of state/UT governments concerned, the 20-year perspective plans were forwarded to them for taking further necessary action for development of
Temples, Monuments and Japan
tourism. Central financial assistance is also given to the state governments to implement prioritised destination and circuit infrastructure improvement projects formulated by them. Year 2007 to be observed as IndiaJapan Tourism Year: The Minister of Land, Infrastructure and Transport of Japan, Kazuo Kitagawa, recently met Soni and the two discussed the plan for observing 2007 as India-Japan Friendship and Exchange Year. This is one of the key elements of the eight-fold initiative for strengthening India-Japan Global Partnership, as agreed to by the two prime ministers during the visit of the Japanese Prime Minister, Koizumi, to India last April. The plan aims at strengthening of people-to-people contact between India and Japan through promotion of tourism and is being drawn in consultation with the Japan Foundation. It envisages introduction of a number of package tours, to be implemented through greater cooperation and exchanges between the tour operators of India and Japan. Exhibition of Indian culture in Japan and vice versa and exchange of artistes between the two countries are also being planned. The need for enhancing air connectivity between India and Japan was also underlined during the discussions. Restoration of ‘Ta Prohm temple: After the successful completion of the Angkor Wat Project in Cambodia, the Cambodian government has assigned another important project for restoration to the Archaeological Survey of India (ASI)—the famous 12th Century “Prasat Ta Prohm” Temple complex, built by King Jayavarman VII. Soni and Minister of Tourism of Cambodia, Lay Prohas, reviewed the progress on this project recently during a luncheon meeting. The restoration work of Ta Prohm Temple complex, which is also situated in the Angkor region and ranks high amongst the most important monuments of that area, is quite a challenging task, as about 150 huge trees are growing in the complex
Completion of tourism projects: Tourism Minister Ambika Soni recently told Parliament that the Ministry of Tourism has so far extended central financial assistance for 904 tourism projects for implementation by various state/UT governments during the Tenth Five Year Plan. These sanctioned projects were at various stages of implementation and 285 projects had already been completed. She cited slow execution of the projects by implementing agencies as the reason for incomplete projects. 40
CRUISING HEIGHTS August 2006
BUSY SCHEDULE: The Minister of Land, Infrastructure & Transport of Japan, Kazuo Kitagawa, met the Union Minister for Tourism and Culture, Ambika Soni, in late July to discuss the roadmap for the forthcoming India-Japan Tourism Year. Soni was also in Kolkata, where she took out time to call on state Chief Minister Buddhadeb Bhattacharjee. and some of them are growing over the structures. Roots have penetrated the foundation and dislodged the stones of walls, vaults, towers, etc. Considering the complex nature of the conservation problems, ASI has carried out certain scientific studies and investigations related to soil mechanics, foundation, structural stability, hydrological, geotechnical, ground water aspects of this temple through experts in respective disciplines. A number of specialised agencies have been assisting the ASI in the project. Prohas also underlined the need for having direct air connections between
There has been a near 14 per cent increase in tourist arrivals in June
India and Cambodia. It is estimated that around 3,000 tourists and visitors come to India every year, while the number of Cambodians coming to India is around 600 per year. Statistically speaking: There has been a near 14 per cent increase in tourist arrivals in June. Foreign tourist arrivals in the country have registered an increase of 13.9 per cent in June. Total arrival during the month was 21,54,890, while in last June, it was 18,91,228. Foreign exchange earnings also recorded a growth of 15.7 per cent during the month, amounting to „ Rs 13,440.98 crore.
Taj report Refurbishing the surrounding of Taj: The Minister of Tourism & Culture, Ambika Soni, told the Rajya Sabha that the Ministry of Tourism, Government of India, and the UP State Tourism Department have taken an initiative for the revitalisation of Agra for improvement of area around the Taj Mahal. This is aimed to ensure a memorable experience to all the tourists and visitors to Agra, in general, and Taj Mahal, in particular, and to create and provide facilities and infrastructure of the highest order. Ministry of Tourism had commissioned HUDCO to prepare a project report and HUDCO’s project proposal of Rs 39.34 crore was submitted to the state government, which recommended the same for approval. In the first phase, the proposal for the Development of East Gate Entry to Taj Mahal, amounting to Rs 767 lakh, had already been sanctioned during the year 2005-06. CRUISING HEIGHTS August 2006
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INDIA INCREDIBLE
Airline checks in bag, not passenger Passing the buck
IN A potentially devastating security breach, an Indian flight took off from Kolkata with unaccompanied luggage on board. The elderly lady, who got left behind was furious, naturally; she was waiting in the security-hold lounge. What’s surprising is none of the cabin crew noticed the empty seat in the flight booked to capacity. Among the passengers was Union HRD minister Arjun Singh.
FIFTY-EIGHT-YEAR-OLD Surjeet Singh Gill’s trip to London ended with his being admitted to Nanavati hospital. At the Sahar airport, he slipped on accumulated rain water and fell face down on concrete floor while trying to board his Jet Airways’ flight. He recovered consciousness 10 minutes later, to find himself in a wheelchair, with a bleeding forehead and a swollen eye. He was unattended for nearly ninety minutes, till his wife, whom he called using his mobile phone, reached the airport and took him to Nanvati hospital, where he received six stitches on his forehead and was treated for the swollen eye. He was finally discharged after two days and advised ten-day rest. How was the buck passed? According to records of AAI, the airport medical officer attended to Gill and referred him to a hospital. The airport manager said an ambulance is available round the clock, but the onus of taking the passenger to hospital is on the airline. The airline’s station manager said that though the doctor referred the passenger to the hospital, she did not provide the ambulance. Gill is in the process of filing a case of criminal negligence against the authorities concerned. Incidentally, three other passengers had slipped at the same spot where Gill hurt himself. Fortunately, none were seriously injured.
All for a bottle of water RAKESH KWATRA, who was to fly to Chennai on an Air Deccan flight, was stranded, along with other passengers, for over seven hours at the airport due to a delay. All this in spite of his having checked-in in time and holding a boarding pass. When he asked for a bottle of water, he was cold-shouldered by the flight crew. After the long wait, the passengers were bundled into another flight early the next morning. Not the one to take things lying down, he moved the consumer court. The consumer court ordered India’s first low-cost carrier to pay Rs 30,000 as compensation to the Delhi-based businessman for inconveniences caused due to an undue delay in flight schedule and poor on-board customer service, noting that low budget service does not mean passengers should not be offered drinking water, and the repeated statement that they (Air Deccan) run a low-cost airline does not absolve them of their responsibility of supplying basic amenities to passengers.
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CRUISING HEIGHTS August 2006
Cash zaps airport AN UNCLAIMED leather bag full of cash and a signed blank cheque sent Mumbai airport into a tailspin recently. When the CISF personnel found no takers for the bag, containing Rs 4.6 lakh cash, at one of the X-ray machines at Terminal 1B, they handed it over to the airport authorities, who deposited it with the airport’s ‘lost and found’ section. Then came a twist to the tale. One Nadia Basak called up the airport and said he had lost his baggage at the airport. Although he described the bag correctly, he could not match the contents. The legal department was called in. It all ended when one Pradeep Korath called from Kozhikode, claiming he had taken a wrong bag and in place left behind his own. He had flown in a Jet Airways flight from Mumbai that day. He later arrived at the airport and claimed the baggage, after he correctly identified its contents.
Burqa lands youth in trouble
Ticketless traveller!!! ONE RAMACHANDRAN (19) of Tiruttani sent the security personnel in a tizzy when he boarded a Kolkata-bound flight without a ticket at the Chennai airport. All this in spite of beefed-up security after the Mumbai blasts. He reportedly entered the airport through the rear gate at Pozhichalur and occupied a seat in the Kolkata-bound Air Deccan flight. The presence of a person without a ticket inside the aircraft came to light only after the ticket holder for the seat arrived and took up the issue with Ramachandran. He was immediately arrested and later remanded to custody. Surprisingly, a boarding pass is issued to a passenger only after a series of checks by security personnel of the individual airlines.
Rs 1.22 crore painting lies unclaimed
CRUISING HEIGHTS August 2006
Illustrations by Zahid Ali
MUMBAI AIRPORT personnel went into a tailspin when they found S.H. Raza’s painting, Bhoomi, worth Rs 1.22 crore, lying amidst unclaimed parcels at the musty customs godown at the international airport, where it languished for over 10 days—at the mercy of Mumbai’s monsoon, a sure cause for fungus, canvas’ worst enemy. Luckily, the officer on duty did a double take when he saw the amount declared. As usual the blame game was played among the parties concerned—the exporters, the recipient and the customs. Finally, Bikram Anand, the importer, flew down from New York to process the paperwork and claim the masterpiece.
WHEN THE young man wanted to hand over a letter to his beloved, who was to visit the Chhatrapati Shivaji International Airport with her parents to receive her elder sister coming from abroad, he, scared of her parents, donned a burqa (veil) to meet her. Unfortunately, the security was very tight at the airport in the wake of the recent Mumbai blasts, and the police personnel got suspicious and asked women constables to check the credentials of the burqaclad person. When the person turned out to be a man, he was immediately detained and senior police officials interrogated him throughout the night. The police let him go only after checking his credentials.
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SNIPPETS
Jet News Revises free baggage allowance for students: The airline has revised free baggage allowance for students travelling to London from India up to September 30. Students can now avail 46 kg as total free baggage allowance, against existing 40 kg free baggage allowance. Revised baggage allowance is applicable only up to London on outbound journeys. Due to sizeable number of students travelling to London from India, the carrier has revised free baggage to facilitate students to carry extra baggage. To avail this free baggage allowance, passengers must present their student visa at the time of check-in. The revised free baggage allowance is offered to students on sale and purchase of tickets up to September 30. The offer is not valid on discounted group fares, and any one piece of baggage should not exceed 32 kg in total weight. Partners with Swiss: The airline and SWISS (Swiss International Air Lines) have entered into a reciprocal Frequent Flyer Programme alliance that will benefit frequent flyers of both airlines. All Jet Privilege members will be able to accrue and redeem JPMiles on all SWISS operated flights. This partnership will also allow members of Miles & More Frequent Flyer programme (managed by Lufthansa), of which SWISS is a fully integrated partner, to earn and burn Miles & More miles on Jet Airways. The new partnership aims to serve the frequent travellers of both airlines by way of extending the opportunity of earning frequent flyer miles while travelling across the network of both airlines. So while Jet Privilege members can enjoy the convenience and luxury of SWISS’ global connectivity to 69 of its worldwide destinations, members of Miles & More can also accrue and redeem miles on all Jet Airways flights, availing of better connec-
tivity and excellence in service across Jet Airways’ 48 domestic and international destinations. As a special launch promotion exclusively for Jet Privilege members, up to August 15, all Jet Privilege members on qualifying SWISS flights will earn double JPMiles on the basis of their class of travel on SWISS. Cabin baggage standards for london flights: The carrier has announced implementation of cabin baggage size in compliance with the International Aviation Transport Association’s (IATA) cabin baggage standards on all its flights between India and London Heathrow, to facilitate convenient cabin baggage storage. These stipulations will be applicable to all the carrier’s flights arriving at and departing from all terminals of London Heathrow Airport. According to IATA standards, individual dimensions of cabin baggage should not exceed 22 inches (56 cm) in length, 18 inches (45 cm) in width and 10 inches (25 cm) in depth. Any baggage exceeding the mentioned dimensions would not be allowed to pass through the Central Search area at London Heathrow Airport. Passengers, regardless of class of travel (First, Business and Economy) with cabin baggage exceeding dimensions will have to either repack or get the hand baggage checked-in. However, items that continue to be exempted from cabin baggage size restriction are human remains, baby buggies, strollers, car seats, wheelchairs, religious articles, wedding dresses and suit carriers, medical equipment, musical instruments, artwork, pictures, hat boxes, post tubes, pets and items that a passenger intends to reclaim VAT on when airside. Passengers carrying diplomatic passports using the State VIP lounges are also exempted from cabin baggage size restriction.
Telecheck-in facility from any city: The airline has launched telecheck-in facility from any city on its network for its passengers with immediate effect. For example, the carrier’s Ahmedabad office can telecheck-in for a passenger travelling on the Mumbai-DelhiMumbai route. However, the return telecheck-in must be for the same day. This facility can be availed by Club Premier passengers and Jet Privilege (JP) members travelling on the domestic routes. Club Premiere passengers, Platinum and Gold Card JP members can telecheck-in 48 hours in advance, while Silver and Blue Plus Card JP members can telecheck-in 24 hours in advance. Telecheck-in can be done up to an hour prior to departure. Club Premiere passengers and Platinum, Gold and Silver JP members need to collect their boarding passes from the airport 30 minutes prior to departure, whereas Blue Plus JP members need to collect their boarding passes 45 minutes prior to departure. Economy passengers offered seat reservation on international flights: The carrier is now offering advance seat reservation facility for its Economy Class passengers with confirmed tickets travelling on the airline’s flights between India and London Heathrow, Singapore and Kuala Lumpur with immediate effect. This facility is available up to 48 hours prior to the departure time of the flight. Initially the airways will be offering about 60 per cent of its seats in Economy Class for selection at the time of booking. However, the first two rows in Economy Class, bassinet and emergency row seats as also seats reserved for wheelchair passengers are excluded from this facility.
Kingfisher Introduces Ticketing Via SBI ATMs THE AIRLINE has announced a special facility for its customers in Bangalore, Delhi and Mumbai—ticketing via any of the State Bank of India (SBI) ATMs or any of the SBI Group’s allied ATMs across these cities. All a customer need do is call up the airline’s call centre number and inform the executive about the desired sector, date and time of travel. The executive will give the guest a Booking Reference Number (BRN). The customer can then go to any of the SBI or allied ATMs, insert their ATM/debit card, follow the regular procedure by entering their PIN to access
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their account information. The screen will display an option requesting the customer to enter their BRN. After entering the BRN, the customer can access all the flight details and the amount payable on the screen. After checking the correctness of the information, the customer can confirm the booking by pressing YES option and the amount gets automatically debited from their account and the transaction is completed. The customer then carries along the transaction slip that is generated at the ATM to the nearest airline’s ticketing centre and on display of this transaction receipt, the executive at the centre will hand over the ticket to the guest.
CRUISING HEIGHTS August 2006
Art Camps at The Ashok Group
AS A new venture to promote Indian art and encourage young artists, India Tourism Development Corporation (ITDC) is organising a series of Art Camps in the Ashok Group hotels around the country. The objective of these Art Camps is to bring to the front talented young painters, who will get a chance to showcase some of their works. These Camps will also provide a platform to the artists to permanently display one of their paintings at The Ashok. The Art Camp at The Ashok was for one week, from 15th to 22nd June, and the artists who participated in these Camps were Akshaye Aggarwal, Monika Sood, Anil Sharma, Sushanta Guha, Uttam Kumar Basak, Debasish Das, Asim Pal, Satyasewak Mukherjee, Parvinder Kaur, Harvinder Kaur, Mani Kant, Vandana Rakesh, Rakesh Kumar Gupta, Santosh Verma, Ajay Kumar Samir, Saran Bhooi and Seema Pandey. These artists spent a week as guests of ITDC and made two paintings each. All the raw material was provided to them and they, at the end of the week, presented one of these paintings to the hotel and took one back as a memento of their stay at The Ashok. The artists were also given Certificates at the end of the Camp. Similar Camps will be held at destinations like Jaipur and Bhubaneswar.
New Appointments at Le Passage to India R A N J A N C H AT T E R J E E has joined as Regional Manager, South India, based at Kochi. He has over 20 years of experience in the travel and tourism operations and marketing. Naveen Rizvi has joined as General Manager of the Mumbai office. He has worked for six years with SITA Inbound and MICE Department as Dy. Manager and three years with Grand Hyatt Mumbai as Associate Director of Sales.
News
Air Deccan backs fleet expansion IAE INTERNATIONAL AERO ENGINES has announced that the airline had backed its fleet expansion of 30 V2500-powered aircraft with a 500SelectSM services agreement. V2500SelectSM is a combined engine upgrade and aftermarket support program that improves fuel burn, reduces operating costs and offers time-on-wing improvements. The agreement will be extended to cover the carrier’s existing fleet and an earlier, firm order of 30 Airbus A320 family aircraft. The latest engine order is valued at more than $500 million and brings the total firm V2500-powered A320 family aircraft on order to 60. Engine upgrades are planned to be released to production in 2008 and will be retrofittable to the in-service fleet. IAE is a multinational aero engine consortium, the shareholders of which comprise Pratt & Whitney, Rolls Royce, the Japanese Aero Engines Corporation and MTU Aero Engines.
Air News Expands fleet: The airline has signed a purchase agreement for 10 Airbus A320 family aircraft, with an option for a further ten at Farnborough air show. The aircraft will be powered by CFM International engines. All of the A320 aircraft on firm order will seat 180 passengers in an all-economy layout. The carrier currently operates a fleet of Airbus A320s with 24 flights covering 13 cities, including Jammu & Srinagar. New connections: The airline has announced its plan to start new direct flights connecting key cities: Delhi-Goa, Delhi-Pune, Delhi-Bangalore, Mumbai-Hyderabad, Mumbai-Chennai and Kochi-Coimbatore from this 22nd. As part of its marketing plan, the carrier has also put on offer 50,000 tickets at special fares starting from Rs 525 onwards. The tickets will be available to passengers who wish to travel between 19th July and 14th December 2006. These fares will be applicable to both the existing and the new sectors that will be launched this month. The airline has recently announced a slew of other offers, where extended allowance of up to 30 kg is available to all international (both inbound and outbound) passengers travelling on its flights. The carrier was also the first to launch a scheme that offered 10 per cent off on base fare to Central & State Govt. employees, Current and ex-Armed Forces officers, students and senior citizens. CRUISING HEIGHTS August 2006
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SNIPPETS GULF AIR NEWS Departure of James Hogan: The airline announced the planned departure of President and Chief Executive James Hogan in late 2006, following completion of the Project Falcon turnaround programme and the implementation of the airline’s new strategic plan, Smart Airline, Successful Business, which was endorsed by the Board earlier this year. The airline also announced it expects to appoint a new president and chief executive before Hogan’s departure, allowing for a smooth leadership transition. Hogan joined Gulf Air in May 2002, when he introduced the Project Falcon turnaround programme. Over the following three years, this cut the airline’s losses and returned it to profit, in 2004. In addition, Project Falcon saw a re-branding of the airline and the launch of unique services, including Gulf Traveller, Sky Chefs and Sky Nannies. The airline won many different awards over that period, including Most Improved Airline, Middle East Leading First Class Airline, MENA Platinum Best Airline and the prestigious Mercury Award for in-flight service. Expands code share agreement with Saudi Arabian Airlines: The airline has strengthened and expanded its cooperation with Saudi Arabian Airlines by adding new services between Riyadh and Bangkok by two flights a week via Muscat’s Seeb International Airport. The two carriers are working closely together to extend the integration levels for their networks. They will also add more services through their code share agreement. The newly added non-stop flights will complement the existing direct flights between Damman and Kathmandu, via Muscat and Bahrain/Al Medina Al Munawara, which are also expected to increase in the near future.
British Airways enhances its flight frequency from Bangalore BRITISH AIRWAYS plans to increase its flight frequency, effective 30 October, taking the number from six to seven per week from Bangalore to London. The new flight (BA118) will depart from Bangalore international airport at 06.45 hrs (LT) and arrive at London Heathrow airport at 12.30 hrs (LT). The return flight (BA 119) from London will depart at 1.30 hrs (LT) and reach Bangalore at 4.45 hrs (LT) the following day.
ETIHAD NEWS To fly non-stop to New York from October: The UAE’s national airline is continuing to expand its international network of destinations by flying daily to New York’s JFK airport from Abu Dhabi, effective 26 October 2006. New York is Etihad’s second North American destination, after Toronto, and is one of the most prestigious airports
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the Abu Dhabi-based airline can fly to. The airline will be flying its A340-500 aircraft on this new route to New York, and is one of the airline’s first aircraft to offer the luxurious revolutionary Diamond zone seat. The new direct service will also provide a significant boost for the carrier’s cargo division, Etihad Crystal Cargo. The airline’s cargo division has been selling cargo to the US since April 2004 when it appointed Platinum Air Cargo as its General Sales and Services Agent (GSSA) for the United States. So far, the shipments have been transported to/from the US with interline partners via London Heathrow, Gatwick, Manchester, Frankfurt, Toronto to the United States. The shipments being transported to/from the US and beyond, primarily to Asia and the Indian Subcontinent, consist of oil field parts, machinery, garments and all types of consumer goods. Revolutionary Diamond Seat on Airbus 340-500: The carrier has introduced the revolutionary Diamond Seat, which includes being able to rotate 180 degrees, enabling guests to hold meetings, dine and converse with one another in the Diamond zone’s luxurious surroundings. It also features a 23” personal LCD video screen. The new A340-500 is the first of the airline’s three-zone aircraft to arrive in Abu Dhabi, and forms part of the airline’s record $8 billion order, which was made in 2004 for 29 new Airbus and Boeing aircraft. Guests can conduct group meetings and discussions, and then turn away to relax in the luxurious seat in total seclusion. Each Diamond Seat is fitted with a privacy shell, and has direct access to the aisles, allowing guests to move freely around the aircraft with the maximum ease and convenience. The seat features a six-way movement headrest with built-in massage facility, and for guests wishing to stretch out and relax on the flight, each of the state-of-theart seats also reclines into a luxurious 6-feet-1-inch flat bed at the touch of a button. It is also equipped with fold-andswivel meal tables, an integrated personal mirror, pneumatic lumbar support and reading light and desk lamp. The surrounding furniture includes a coatroom and mini-bar. The aircraft can carry 240 guests with 12 in Diamond, 28 in Pearl and 200 in Coral zone. Pearl and Coral zone guests will also enjoy the unique levels of luxury on-board the new aircraft. The Pearl zone business-bed is fully flat, and guests can enjoy TV, radio and video games on the 15-inch personal LCD video screen. Each zone is also equipped with mood lighting, which adjusts subtly to the time of day, easing jetlag and helping them to arrive rested, refreshed and ready to make the best of their trip.
Sri Lankan partners with Amadeus AMADEUS HAS announced the launch of electronic ticketing for Sri Lankan Airlines, making the airline the latest to join the growing community of carriers to offer this service through Amadeus. With this implementation, the airline now offers e-ticketing facilities in
CRUISING HEIGHTS August 2006
20 countries throughout Asia Pacific, Middle East, Europe and North America. Amadeus was also chosen by the International Air Transport Association (IATA) as a preferred partner in its drive towards achieving 100 per cent e-ticketing by 2007. IATA estimates that the airline industry will save up to US $3 billion a year just by switching to e ticketing. Signs up for Amadeus’ Altéa Customer Management Solution: The airline and Amadeus have signed an agreement by which the airline will implement the complete Amadeus Altéa Customer Management Suite (CMS), to strengthen competitive differentiation and support its growth strategy. As part of the deal, the airline will use all three components of the Amadeus Altéa CMS comprising Altéa Reservation, including e-ticketing, Altéa Inventory and Altéa Departure Control System. The full suite, based on a next generation “community” IT platform, aims to provide the carrier with complete control over its distribution channels, inventory and seat planning, and the airport check-in process. This will enable the airline to maximise yield on every seat as well as identify the value of its “guests” at all stages of the travelling process, ensuring that service is targeted accordingly.
Singapore Airlines goes Indian with Sanjeev Kapoor
Malaysia airlines voted ‘best economy class’ in Skytrax Awards THE AIRLINE has clinched the Best Economy Class at the World Airlines Awards 2006, organised by Skytrax, the leading research advisors to the world airlines and air transport industry. The Malaysian national carrier took the top position in this survey, conducted between September 2005 and May 2006, based on quality of product and service standards supplied on long-haul, intercontinental routes. Focused on the onboard customer experience for a typical long-haul flight, the survey covered a number of factors of prime importance to the customer— seat comfort, standards of in-flight entertainment and onboard catering, and the general efficiency and quality of the staff service. The worldwide survey data, involving nearly 14 million respondents, representing over 90 different passenger nationalities, was collated from a variety of input sources.
Marsa Alam international airport expands MARSA ALAM INTERNATIONAL AIRPORT’S terminal is doubling in size and its runway, taxiways, ramp and aircraft parking stands are being expanded. The major expansion plan, announced by M.A. Kharafi Group of Kuwait, the developer, financier and concessionaire of Marsa Alam International Airport, is expected to be completed by the fourth quarter of next year. The Red Sea airport’s expansion, originally envisioned to take place in 2011, has been brought forward in response to the rapid growth of the neighbouring Port Ghalib resort and airport service area, which now has 7,000 rooms and a further 5,000 under construction. The new-look airport, which will see parking stands doubled to 10, will be capable of handling nearly 2,000 passengers per hour and contain expanded food, beverage and shopping facilities.
SINGAPORE AIRLINES has inducted the celebrated culinary personality, Sanjeev Kapoor, as the new member of its International Culinary Panel (ICP) of world-renowned chefs. The airline also announced the launch of the new Indian in-flight cuisine—Shahi Thali—a unique meal that features a dazzling spread of traditional Indian delicacies. Specially designed by chef Sanjeev Kapoor, Shahi Thali, available in both vegetarian and non-vegetarian versions, comprises a starter, two types of chutneys, up to four entrees, rice, Indian rotis, a dessert, and lassi and masala tea. It will be available to the airline’s First Class customers. Besides the Shahi Thali, which will be served in First Class, Indian meal options are available to both Business & Economy class passengers. The Indian meal option consists of North Indian as well as South Indian meals on the airline’s services ex India. In addition, special Indian meal option is available in all classes for passengers on request, including Asian vegetarian, Jain meal and Hindu meal (non-vegetarian Indian meal). Kapoor joins eight existing chefs of international acclaim on the airline’s ICP in designing distinct signature dishes for its customers in all classes and on all routes. These master chefs are: Georges Blanc (France), Sam Leong (Singapore), Matthew Moran (Australia), Yoshihiro Murata (Japan), Nancy Oakes (San Francisco, USA), Alfred Portale (New York, USA), Gordon Ramsay (UK) and Yeung Koon Yat (Hong Kong).
CRUISING HEIGHTS August 2006
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BACKPAGE
LESSONS LEARNT
FLOATING IN THE SKY: If Madonna or Celin Dion ever decide to accept Sir Richard Branson's invitation and hurtle into outer space aboard Virgin Galactic's Moonraker, then this is how they should look. The iconic British entrepreneur has launched a huge campaign to excite the public on the magic of floating weightless in the air up above the world so high! Over 60,000 people have signed up for the Virgin Galactic journey into space and over 200 have paid advances, which run into millions. No, we are not sure if Vijaypat Singhania has signed on for the adventure. GREAT COMPANY: So what were Pritish Nandy, Parmeshwar Godrej, Udayan Bose, Sunil and Marshneil Gavaskar and Avantika Birla doing in the company of AI chairman V. Thulasidas. Simple: telling him how to make the Maharaja's Business Class a bit exciting. What products to choose and what not to. The Air India chairman is a veteran at getting the A list to vet his choice: he has Deepak Parekh and Ratan Tata to look at the seat choices and he has roped in a second edition of the A list to look at the Business Class gifts. With due apologies to Mogambo, may we say Maharaja khush hua!
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CRUISING HEIGHTS August 2006
APPEARING BEFORE the international aerospace community for the first time, new Airbus President and CEO, Christian Streiff, declared that the company is in the middle of a crisis but pledged “to do everything to turn this crisis into opportunity,” including “change our bad habits” and “learn humility.” He added, “The Number One priority for me is very clear: we need to regain the confidence of both our customers and shareholders. I want this company to get back to its basics. Airbus' success has been based on the enormous courage it took to introduce the latest technologies, and on strong customer orientation with a spirit of always delivering more than expected. I want to keep this Airbus way of working, but on top be focused 100 per cent on orderly execution and reliability.”
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