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INDIAN AVIATION NEEDS MORE POLICY INITIATIVEs: TONY TYLER

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ready to

rumble It is now Etihad's turn to suck Indian traffic with plenty of help from Naresh Goyal

Mallyaâ&#x20AC;&#x2122;s curtain call? As all doors close, chances of Kingfisher flying again vanish

Heli-hop tourism

Choppers are being used for adventure and religion

Spoilt for choice

Novel in-flight ideas to enhance the flying experience James Hogan President and CEO Etihad Airways

may 2013 I `90

editor-in-chief's note

Thank you, Mr Goyal!

on’t be surprised if the routes to London, Paris and even Hong Kong and Australia are through the K Srinivasan ports of Dubai, Abu Dhabi and Doha. After spending hundreds of crores of rupees in creating spanking new airports, the government has decided that it is not for them to help in creating hubs, it is for them to do what is best for Naresh Goyal. Of course, Mr Goyal will easily win a Nobel for being the finest lobbyist in this country. Like the Etihad deal that he scripted, enacted and

He does have a point when he says Air India doesn’t have the muscle to create a hub anywhere. But, I beg your pardon, where does your balance sheet allow you to buy even two planes to mount the serial flights that you want to put into Abu Dhabi? How is it that Indians will suddenly wake up to the potential of flying through the UAE capital of Abu Dhabi? And, by the way, you wouldn’t be going on bended knees to Etihad if you had the moolah to become a global giant that was expected of you a decade back. Now that the seats have been granted, Naresh Goyal will get the money from James Hogan and it is unlikely that Jet will become

flights of the future : The new routes to Europe, US and Australia will be through Dubai, Abu Dhabi and Doha, courtesy Jet Airways presented, Mr Goyal had done a similar arm-twisting deal some years back when he got a Chinese cargo company’s blacklist into India removed so that he could fly into Shanghai and onwards to the West Coast of America. It’s another matter that the flight was terminated some months later when it bled his balance sheet badly. There are many who compare Naresh Goyal to Willie Walsh, the maverick former British Airways (BA) CEO who is now the head of IMG (International Management Group). They must be kidding; Willie is in a different league altogether. All he did all the time was in the greater interest of British Airways and maybe not good for Virgin and Co. But at no time did he undermine the British Aviation business to build BA. Can the same be said of Naresh Goyal?

Cruising Heights May 2013

the great airline we all wanted it to be. It will become a first rate subsidiary of Etihad. Like Air India’s AI Express, Mr Goyal’s will be the Janata Express for the brash Australian’s global ambitions. Unfortunately, I can’t say good luck to them. I don’t want Jet to wither away and I don’t want James Hogan to succeed. The Australian should find a better model and not be a clone of Emirates.

srini@newsline.in

contents

For angry birds

Air Offensive from the gulf

p26

In what could be termed as redrawing the boundaries of the airlines' business, Etihad has asked for a whopping 40,000 seats every week from India. Helping it in its demand for more seats is Jet Airways. The move has been opposed by all other Indian carriers and major airports in the country. Will this move have a detterent effect, or will it be proven effective? A detailed report.

h c tiwari

This is good news that all airport managers would love to read. A unique innovation to ward-off airport bird strikes has been unveiled. It does not use any sort of weapon or sound but, strangely, a type of endophyteinfected grass: Avanex. The grass is a double-edged weapon of sorts: it lowers the amount of insects it harbours and makes birds that eat it sick enough so that they do not return. The artificial grass enables the growth of a symbiotic organism that birds and insects can't stand. The grass was developed after decades of trials funded by the Foundation for Arable Research, PGG Wrightson, Christchurch International Airport and AgResearch through its subsidiary Grasslanz. PGG Wrightson’s Seed and Grain General Manager David Green who has been working on the project said, “We probably wouldn't get very wealthy if we only had New Zealand as a market, but we see this has good application in many temperate areas around the world and this is the first step in taking it to these markets. The feedback from the visitors was 'fantastic' and there was a genuine interest in using the grass at airports overseas.” The grass has been on trial at Christchurch International Airport, New Zealand and has produced remarkable results. Christchurch International Airport Chief Operating Officer Andy Leste while acknowledging the significance of the grass said, “The airport has been involved in the project from the start because it realised the benefits of such a product. About one-fifth of the grass around the airport's runway — roughly 35 hectares –— was bird repellent. The effect was noticeable with flocks of birds landing on neighbouring paddocks, but rarely on the Avanex grass.”

hemant Rawat

Off the cuff

cover story

news digest

p18

After the financial debacle, Kingfisher Airlines is planning a fresh start. The airline has too many hurdles to cross. Will it sail through? AI again finds itself in the dock after an audit report disclosure.

Cruising Heights May 2013

Special REPORT

p24

Tony Tyler, IATA’s Director General and CEO, advised those who were at the helm of Indian aviation to bring about policy changes. Only then would the sector survive and see better days.

contents

cover story

articles news views edits interviews clippings profiles news digest

CARGO

Cruising Heights

p57

Volume VII n No 12

Air France-KLM has, in fact, increased cargo capacity to/from India vis-à-vis European airlines. The cargo carrier sees India as the next big thing in air cargo. An interview with Rene Peerboom, Director, AF-KLM/Martinair. Plus: Tuna connects Vizag to the world.

Editor-in-Chief

K SRINIVASAN Managing Editor

TIRTHANKAR GHOSH Group Consulting Editor

R KRISHNAN

net express AERO-ENGINES

p45

Etihad Airways signs a $125 million agreement for the financing of five GE90 and six RR Trent 500 engines while Embraer unveils the PurePower Geared Turbofan engine for its E-Jet aircraft family. Plus, more news from the world of aero-engines.

p49

Technological innovations in the online air travel industry are coming in a big way. Arzoo.com introduces innumerable travel solutions for their Preferred Sales Agent (PSA) while US Airways ushers innovative baggage tracking application. Plus exclusive interview of David Brett, President, Amadeus Asia Pacific.

SNIPPETS

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Consulting Editor

Nandu manjeshwar Senior Sub-Editor-cum-Reporter

punit mishra Correspondent

trishit rai Chief Visualiser

ajay negi Designers

Mohit kansal, nagender dubey, chanderjeet Design Consultant

artworks Picture Editor

Pradeep chandra Photo Editor

HC Tiwari Staff Photographer

hemant rawat Director (Admin & Corporate Affairs)

Rajiv Singh Director (Marketing)

Rakesh gera Manager (PR)

Ashutosh Mishra Sr. Executive (Coordination)

Alka goswami

back page

p74

Gatwick Airport wants to redefine the future of public transport by introducing ‘robo-taxis’ and a train, according to a report based on emerging and future technologies in 2030, it unveiled recently.

GoAir starts direct flights from Mumbai to Srinagar while Deccan Charters closes down operations in Gujarat and IndiGo bags the NDTV Profit Business Leadership award. In the international, British Airways commences sixth direct service to Hyderabad from London. INDIAN AVIATION NEEDS MORE POLICY INITIATIVES: TONY TYLER

CRUISING HEIGHTS www.cruisingheights.in

MAY 2013 I `90

READY TO

RUMBLE It is now Etihad's turn to suck Indian traffic with plenty of help from Naresh Goyal

MALLYA’S CURTAIN CALL? As all doors close, chances of Kingfisher flying again vanish

HELI-HOP TOURISM

Choppers are being used for adventure and religion

SPOILT FOR CHOICE

Novel in-flight ideas to enhance the flying experience JAMES HOGAN President and CEO Etihad Airways

cover

design: artworks

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

Cruising Heights May 2013

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+91-9810030533, 9810159332 Editorial & Marketing office: Newsline Publications Pvt. Ltd., D–11 Basement, Nizamuddin (East), New Delhi –110 013, Tel: +91-11-41033381-82 All information in Cruising Heights is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/ views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket-IV, Mayur Vihar Phase–I, Delhi–91 and printed by him at Nutech Photolithographers, B–240, Okhla Industrial Area, Phase–I, New Delhi–110020.

“ periscope

Bridging the gap “In ten years time, we will link everywhere to Istanbul. We are competing against ourselves. It's about giving the passenger the best option to travel. ” Temel Kotil, Turkish Airlines CEO, on connecting Istanbul to the rest of the world

Futuristic in approach “The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers.”

letters to editor

The cover story Job with a View (April 2013) was written in the right perspective. Indeed, the ATC operations in India have gone through a paradigm shift over the years, thanks to the right initiatives taken by the Airports Authority of India. It is heartening to know that the new Ground based Augmentation System (GBAS), being introduced by Honeywell Aerospace in association with the Airports Authority of India (AAI), will replace a system developed in the 1920s. With these innovations, India will surely go a long way in the ATC operations thereby creating quality benchmarks for others to follow. Shivam Pandit, Jammu

Bombardier Shoots to Hurt (April 2013) was interesting to read. Bombardier CSeries' CS300 aircraft will surely prove a game changer. The aircraft is perfectly poised to take on Boeing 737 and Airbus A320 aircraft boasting of features that could give them a tough fight. The aircraft combines advanced materials, leading-edge technology and proven methods to meet commercial airline requirements in 2013 and beyond. As a matter of fact, the aircraft with these features will prove worthy to the aircraft operators all over the world who would be looking to induct these planes for better efficiency and operational viability. Santosh Dayal, Patna

The recent controversy surrounding the new airline being launched by AirAsia as mentioned in the story Trampled Egos Over AirAsia-Tata JV (April 2013) provided some very interesting insights about the deal. AirAsia which is gearing up to launch services in partnership with the Tatas has not gone down well with the naysayers of the aviation industry. The Indian domestic aviation sector will gain the maximum with the entry of the new airline to be launched by AirAsia. No doubt, the new airline will compete with rivals Jet Airways, GoAir, IndiGo, SpiceJet and Air India thereby creating more competition in the aviation market. Priyanka Roy, Vellore

Ajit Singh, Civil Aviation Minister on the future prospects of Indian aviation industry

Spilling the beans “Some airlines seem to think that size, by amalgamation, will automatically bring economies of scale. It just does not work in that way. A monster like that is bound to be inefficient.” Sir Maurice Flanagan, Executive VC, The Emirates Group, on the combination of US Air and American Airlines

Taking a jab “Our policies are not oriented to make India an aviation hub, although we are better geographically positioned than Dubai or Singapore to do that..” Kapil Kaul, CAPA South-Asia CEO, on the repercussions of the Jet-Etihad deal

Preparing the ground “We are still considering setting up a domestic airline (in India). But we are studying what's happening in India and one day hopefully we will get a domestic airline set up.” Richard Branson, Chairman, Virgin Group on the future possibilities in the Indian domestic airline industry

All correspondence may be addressed to Editor, Cruising Heights, D-11 Basement, Nizamuddin (East), New Delhi -13, OR mail to cruisingheights@newsline.in

Cruising Heights May 2013

One step ahead "Regional connectivity has been a focus area for us. We do 110 flights a day now on our Bombardier Q400 fleet and we have seen a lot more traffic in the tier II and tier III cities" Neil Mills, SpiceJet CEO, on how his airline is beefing up operations in the regional areas in India

Singapore Changi Airport was recently adjudged the World's Best Airport at the 2013 World Airport Awards by Skytrax. This is the fourth time Changi airport has got the top prize. Skytrax World Airport Awards are based on 12 million passenger surveys conducted in airports around the world. Appreciating the performance of Changi Airport, Edward Plaisted, Chairman, Skytrax said, “The vast array of leisure and entertainment facilities really stands out at Changi and serves to highlight the extent to which the airport management has gone to ensure maximum levels of passenger satisfaction. We only have to look at the fact that Changi served more than 50 million passengers for the first time during 2012, to see that it continues to attract customers and maintain its place as one of the world's leading hub airports.” After Singapore Changi Airport; Incheon International Airport, South Korea bagged the second spot while Amsterdam Schiphol Airport,

Netherlands stood at third position. At fourth was Hong Kong International Airport, Hong Kong followed by Beijing Capital International Airport, China. The top ten were: 1. Singapore Changi Airport, Singapore 2. Incheon International Airport, South Korea 3. Amsterdam Schiphol Airport, Netherlands 4. Hong Kong International Airport, Hong Kong 5. Beijing Capital International Airport, China 6. Munich Airport, Germany 7. Zurich Airport, Switzerland 8. Vancouver International Airport, Canada 9. Tokyo International Airport (Haneda), Japan 10. London Heathrow Airport, UK

cold stats

The sky’s the limit

Looking glass

It’s Mine

Pushing the agenda “We have submitted a plan which includes the schedule that we plan to operate, the air traffic plan and the number of people we have. We have requested that our licence be renewed.” Sanjay Aggarwal, Chief Executive Officer, Kingfisher Airlines on submitting the plans for the revival of the airline

I doubt it “Kingfisher is yet to communicate with us regarding the NOC (no-objection certificate). AAI will not permit them to fly till they clear the dues. The airline has fooled everybody for long now..” V P Agrawal, AAI Chairman, quashing the rumours behind Kingfisher Airlines' revival plans

Cruising Heights May 2013

news digest

Hogan slams legacy airline alliances E

tihad Airways’ President and Chief Executive Officer, James Hogan once again stirred up a hornet's nest by slamming the legacy airline alliances: they have outlived their usefulness he said. Speaking at the International Aviation Club in Washington, DC, he said that Etihad Airways’ unique business model, which is a combination of organic growth, codeshares and minority equity investments, is proving very effective in building passenger numbers, revenue and profit for all its partners. Hogan said, “The traditional airline alliances have evolved into slow-to-respond, bureaucratic organisations which struggle to deliver added value to their member airlines, many of which are no longer compatible with each other.” He went on to point out that “if we look at the consolidation currently occurring throughout the airline industry, we are also seeing more fragmentation within the alliances. This is going to continue as

members seek ways to operate profitably in a very competitive environment with high fuel costs and generally slower global economic growth. This month we will report our strongest ever first quarter results. Our

codeshare and equity partners have made a major contribution to that financial success,” Hogan stated. Hogan said that it was “easier, faster and far more cost effective to grow through

SkyTeam hits back at Hogan

Michael Wisburn

kyTeam Managing Director Michael Wisburn hit back at the Etihad CEO James Hogan's attack on legacy airline alliances while stressing the fact that his group (oneworld) has delivered in service as well as reaped global presence. Wisburn said that the established alliance approach delivered broad benefits. “While gaining global presence is a key driver, airlines derive multiple

benefits from being part of an alliance. We are moving our focus from growing network scale to increasingly developing customer services that deliver seamless travel while lowering costs through synergies,” he emphasised. Citing the example of SkyTeam's new SkyPriority service, he said that SkyPriority now guaranteed a “red-carpet” experience for high-value customers at 70 per cent of the alliance’s airports. Other service gains through the alliance included the SkyLink common IT platform, shared ticketing offices and checkin facilities, and SkyTeam branded lounges soon to open in Istanbul, Sydney and Beijing, following Heathrow T4, he added.

one-on-one partnerships with established, respected carriers than it is to rely totally on our own resources, and to start from scratch in every market we serve. We have hand-picked like-minded partners with whom we can work collaboratively to build revenue across a broader network and reduce operating costs. We focus on our partners’ profitability as much as our own, because we are not dealing with competing interests. When the five CEOs sit down to make decisions, we have a shared commitment to make things happen,” he said. “An example of innovation is the way we are now working with our equity alliance partners to develop ‘centres of excellence’ in which operational and commercial expertise is pooled to deliver best practice across the group. Cooperation includes fleet and engine acquisition, maintenance, recruitment and training. This is real value-add for our equity alliance and I am confident it is the way forward,” Hogan added.

Star receives best alliance award

he readers and jury of industry specialist Air Transport News voted for Star Alliance as the best airline alliance. “It is a pleasure for me to accept this award on behalf of our 27 member airlines,’’ said Mark Schwab, CEO Star Alliance. “We are honoured that the readers of Air Transport News have given us this accolade

Cruising Heights May 2013

two years in a row.” In addition, Star Alliance member carrier Turkish Airlines received the award for Airline of the Year. Two Star Alliance hub airports were honoured. Istanbul Atatürk Airport received the best Airport of the Year award with Geneva Airport taking the 10-30 million passengers per year airport accolade.

Codeshare Etihad codeshares with JAT

tihad Airways recently signed a memorandum of understanding for its codeshare agreement with Belgrade-based JAT Airways in April. “We want JAT to become a profitable company and the pride of Serbia,” said Mladjan Dinkic, Transport Minister of Serbia said. JAT is close to bankruptcy and Serbia plans to take over about 170 million euros ($216 million) of its liabilities, reduce its workforce

of 1,300 and add six new aircraft to its fleet as part of the company’s overhaul, added Mrkonjic. The partnership would witness a complete upgrading of JAT's fleet and the purchase of new planes, enabling Etihad to take over 49 per cent of Serbian carrier while turning JAT into a member of the Etihad-led alliance, along with Air Berlin, Aer Lingus, Virgin Australia and Air Seychelles.

Jet and SAA signs codeshare

et Airways and South African Airways (SAA) recently announced a codeshare agreement enabling seamless connectivity between India and South Africa. Under the codeshare arrangement Jet Airways will codeshare S Raghavan on South African Airways’ flights between Mumbai and Johannesburg and beyond to Cape Town and Durban. SAA will codeshare on Jet Airways’ operations between Mumbai and Delhi, Bangalore, Hyderabad,

Chennai and Thiruvananthapuram. The agreement will effectively enhance flight choices for customers, whether originating in India or Africa, through seamless and convenient connections and frequent flyer mileage opportunities. Sudheer Raghavan, CCO, Jet Airways said, “Jet Airways is delighted to enter into a codeshare partnership with SAA, South Africa’s national carrier. Besides its global popularity as a tourist destination, South Africa, in its capacity as Africa's largest economy, is also a strategic trade and investment destination.”

Blunt ‘no’ to Don Mueang

neworld recently made clear its intentions that Suvarnabhumi Airport would remain its base and for its member airlines and that it was not interested in shifting its base to Don Mueang. The decision was taken up after Airports of Thailand Plc (AoT) had suggested to oneworld that its operation should be relocated to Bangkok's Don Mueang airport

for greater efficiency. Michael Blunt, oneworld’s VP for corporate communications, referred flight connectivity constraints and service quality for premium flyers as prime deterrents. “Don Mueang does not offer anywhere near the same level of flight connectivity as Suvarnabhumi and lags far behind in terms of services geared towards the premium passengers,’’ he said.

CAL tie-up

aribbean Airlines Ltd (CAL) and Air India are gearing up for a code sharing agreement with Air India. CAL Chairman Rabindra Moonan recently said that the talks with Air India officials are being held and London and New York destinations are being looked to be included in code-share. “These trade talks are taking place and we at Caribbean Airlines would want to be on board to make it easier for business and for other types of travel between T&T and India,” Moonan was quoted as saying. “It (the talks) are still at the exploratory stages. It may take some time before we actually come to an agreement but we thought that we should not allow it to linger, despite having gone there more than a year and a half ago.”

Walsh: ‘Alliances good for revenue synergies’

illie Walsh, the Chief Executive of British Airways and Iberia owner IAG recently said that aviation rules limiting foreign ownership of European airlines were ridiculous and a fresh bout of consolidation was needed in the sector to boost revenue. Walsh, in an international aviation conference, said that airline alliances such as Oneworld, of which IAG was a leader, existed only because of restrictions on mergers for which the three main global groupings were a poor substitute. “The alliance gives you good revenue synergies, but consolidation gives you cost and revenue synergies,” Walsh said. “The big concern I would have with competition policy in the EU is it is looking at the European

Cruising Heights May 2013

Willie Walsh

market, rather than at a global basis,” he said. “That is a huge mistake.” Citing the example of Air France-KLM Group’s code-share deal with Etihad of Abu Dhabi and their talks about a deeper accord, he said, “That for them is like talking to the devil. It's a true reflection of the change our industry is going through.”

news digest

Hijack a plane, thank you Android

If you think that plane can be hijacked through physical force, then think again! An Android phone can be potentially used to hijack a plane. A German security researcher recently unveiled in a security conference that a protocol used to transmit data to commercial aeroplanes can be hacked, turning the hacker into a full-fledged hijacker. Hugo Teso, the Researcher said, “You can use this system to modify approximately everything related to the navigation of the plane. That includes a lot of nasty things.” With the Android app he created, Teso said, he could remotely power a plane by simply tapping preloaded commands such as “Please Go Here” and the ominous “Visit Ground”. While Federal Aviation Administration (FAA) stated that it is conscious of Teso’s claims, but said the hacking method does not pose a threat on real flights because it does not work on certified flight hardware.

Electric aircraft off to a flyer

SportStar EPOS, the electronic aircraft made a first flight. The SportStar EPOS is fitted with an X90 RE-7 electric motor which was developed by Rotex Electric. The two-seater electric aircraft was aerodynamically optimised and is equipped with new trapezoidal wing of extended span. It is powered by a 50 KW electric motor, which is also reportedly suitable for gliders, motorised rogallos or powered paragliding. Martin Drštička, who developed the aircraft said, “In that field,

Business class scrapped Scandinavian airline, SAS, is mulling to phase out its business class on European flights. SAS will tender all-economy cabins and two fare packages: SAS Plus, a higher fare which includes two checked bags, lounge access, early boarding and extra air miles and SAS Go, which includes a checked bag, a tea or coffee on board and mobile check in. “We want to make travelling easier for our customers. And this includes SAS Go and SAS Plus. For SAS simplicity is when customers receive exact-

More teeth to in-flight innovation Honeywell-Boeing recently announced a new technical services agreement to research and develop high-speed in-flight wireless connectivity. Under the agreement, the two companies will develop technologies for Boeing aircraft, including the 787,

777, 737 Next-Generation and 747-8. The joint research team will test and develop hardware, software and potential services that will use GX Ka-band satellites, powered by Inmarsat’s GX Aviation constellation. The agreement was formed to address demand from commercial airline passengers for faster and more reliable in-flight connectivity on personal wireless devices. “Boeing is working with Honeywell to develop and ultimately apply Ka technology on Boeing platforms as an offering which can be selected and brought to market by our airline customers worldwide,” said Dan Murray, Chief Engineer of electronic systems, Boeing. Cruising Heights May 2013

electromobility also struggles for its place on the market, which it deserves, but in doing so it must overcome a number of technical problems. I am convinced that the range of potential of electric driven sport aircraft is very wide.” “Through the development of electrically powered aircraft we have proved our developmental potential and enthusiasm of our employees for new technologies and design concepts,” said Managing Director Václav Zajíc of Evektor.

ly what they need. When we were developing this new concept, we based our work on our customer needs rather than on industry standards. Traditional airline food will be replaced, and a new range will be offered to all customers on board,” said Rickard Gustafson, CEO and Group President of SAS.

Rickard Gustafson

iata regions rejigged IATA announced an organisational restructuring of its main divisions and regional operations to even better address the needs of its 240 member airlines. Senior management changes were also announced to support the new structure. All changes will take effect from July 1, 2013. IATA’s regional operations will be consolidated from seven regional structures into five. These will be based around the five hubs (Amman, Beijing, Madrid, Miami and Singapore) where IATA has already been amalgamating activities associated with its industry financial systems.

Weighty issues Here is bad news for overweight people. Samoa Airlines of New Zealand introduced its pay-by-the-pound policy thereby becoming the world’s first airline to charge passengers by their weight rather than per seat. The airline’s Chief Executive, Chris Langton said, “Doesn’t matter whether you’re carrying freight or people. We’ve amalgamated the two and worked out a figure per kilo.” He further added that he believed his airline’s

new payment policy will promote health and obesity awareness. “When you get into the Pacific, standard weight is substantially higher (than south-east Asia) but it can be quite diverse. People generally are becoming much more weight conscious. That’s a health issue in some areas. It has raised awareness of weight. It’s a new concept. As any airline operator knows, airlines don’t run on seats, they run on weight. People generally are bigger, wider and taller than they were 50 years ago. It is an area the industry will start looking at,” he explained.

Copenhagen Airport adjudged the ‘safest’

processing ahead of Taoyuan International Airport in Taiwan, Narita International Airport in Tokyo, Japan, Incheon International Airport in Seoul, South Korea and Tokyo International Airport Haneda in Tokyo.

Copenhagen Airport recently adjudged the world’s best airport in security. The airport claimed the distinction of ‘World’s Best Airport Security Processing’, in a survey by aviation research organisation Skytrax, in which 12.1 million passengers were asked to rate 395 airports. No other European airports made it to the top of the list, and the Skytrax award was given to Copenhagen Airport ahead of four Asian airports. Copenhagen Airport received the award for best security

Qantas-Emirates tie-up spells business With the official start of the Qantas-Emirates partnership, Qantas has been receiving bookings like never before. According to the press release from Qantas, customers have already responded very strongly to the partnership, with over 210,000 sectors booked till the time of filing the report on the joint network. Qantas has seen a sixfold increase in bookings to Europe on the joint network in the first nine weeks of sales compared to the same period last year. The press release stated that the number of Emirates customers booked to travel on Qantas’ domestic network is almost seven times higher than under Qantas’ previous partnership arrangement in the same nine week period. Cruising Heights May 2013

100 aircraft in no time Jetstar recently celebrated the induction of 100 aircraft into its fleet. The airline became the fastest airline group in Asia Pacific to build its fleet to 100 aircraft. Group Chief Executive Officer Jayne Hrdlicka said this milestone was only possible because of the 400,000 passengers who choose to fly with the Jetstar Group each week. “With the benefit of our common fleet, we’re able to carry more people, to more places, more often than any other low cost airline in Australia,” Hrdlicka said. “While many airlines have tried their hand in the Australian low fares market, Jetstar has been the mainstay for the best priced fares since launching in 2004.” To commemorate this milestone, Jetstar applied a special 100th aircraft livery on the newest of its Sharkletequipped A320s. The livery featured 132 people doing the Jetstar star jump including passengers and ambassadors from across Asia Pacific representing the five Jetstar branded airlines. “This aircraft also celebrates the huge achievement of carrying more than 100 million passengers in our nine year history,” Hrdlicka added. “In that time we have brought millions of people together and connected families and friends across Asia Pacific. The delivery of this new A320, with its remarkable wing-tip technology, reflects our on-going commitment to invest in modern aircraft and innovation to benefit our customers.”

news digest

$25

retail centre at airport

uthep

planes in scrapyards

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Add

s ber

num

Christchurch International Airport Ltd is planning to start a $25 million retail centre to be known as Spitfire Square. “The whole idea of this is to provide services and amenities to those people working on the campus so we'll have things like a post office, a bookstore, maybe a flower shop…there will be provision within the development for over 200 car parks,” said Chief Commercial Officer, Blair Forgie, Christchurch International Airport. “We're very close to finalising an agreement with an anchor tenant for Spitfire Square.”

Defunct Kingfisher Airlines' 15 leased planes could soon land up in junkyards. While 13 aircraft leased to the airline have been de-registered from the airline's name and will now be flown out of India, leasegivers of 15 planes have learned that their Airbus planes are not in a position to fly.

`120

crore default

A travel firm has created a record of sorts after defaulting on a payment of about `120 crore for ticket sales. Mandeep Singh Anand, Chairman, Spring Travels, admitted

`34

"These lessors have discovered that aircraft parts have been so badly cannibalised that it is very difficult to restore the planes. In its last few months of operation, the airline kept taking parts from its fleet to keep a handful of planes airworthy," an Airports Authority of India (AAI) official said.

to the default. “Everything will be fine …,” he was quoted as saying. Sources indicated that the IATA had stopped Spring Travels from selling tickets till it made the payment. IATA gathers the sum of money from agents and disperses it to airlines. Therefore, for tickets sold between the first and 15th day of each month, the payment has to be completed by the 30th day and so on.

crore spent on airports

aviation deals in FY13

A whopping `34 crore was spent on the maintenance of 31 non-operational airports in the last three years by Airports Authority of India, K C Venugopal, Minister of State, Ministry of Civil Aviation, informed the Rajya Sabha. Apart from the 31 non-operational airports, there are 45 defence airports, 83 state government airports and five private airstrips lying unused, he said. The 31 nonoperational airports are located in 16 states and AAI had spent a total of `34.43 crore since 2009-10 on their maintenance. In 2009-10, AAI spent `8.07 crore, in 2010-11, `19.23 crore and in 2011-12 `11.46 crore, he added.

During the last financial year, Ramco Systems signed 10 aviation deals, becoming a major global aviation software service provider. The company said in a BSE filing that it bagged projects from projects from airline service provider Emirates, GoAir, Air Tahiti, Caribbean Airlines among others. Commenting on the success, Virender Aggarwal, CEO, Ramco Systems, said, “It has been a remarkable year for our aviation business. Adding ten customers from across the globe is a testimony to the product strength, integration capabilities, deep domain knowledge and customer experience gained over the years.”

Cruising Heights May 2013

59 7

km of free space In the run-up to the construction of Mopa airport, Goa Chief Minister Manohar Parrikar has issued instructions that area within a 7-km radius from the centre of Mopa airport would be frozen and no commercial development will be allowed. He emphasized that Mopa was in the interests of Goa and that operations at Dabolim airport would not be stopped. Parrikar said, “Nobody should be under any illusion that construction activity will be allowed near the airport that could destroy vegetation in the surrounding areas. We intend to give compensation to farmers who have lost their land to airport at the rate of `150 to `300 per sq m.”

more parking bays

It would be the first for a Tier-II city airport. Birsa Munda Airport in Ranchi will get three more parking bays. The planning division of the Airports Authority of India (AAI) has okayed construction of the three bays. AAI will soon float tenders for the purpose. The cost of constructing three bays is likely to be `10 crore. Each bay is likely to cost above `3 crore. The bays which will be based on power-in and

per cent nod against obese

An independent online poll of 1,000 adults conducted between March 26 and 28, 2013 by leading global travel search site Skyscanner revealed that a majority (59 per cent) of international travellers were in favour of an airline ‘Fat Tax’, which would see airlines charging more for their seats to overweight passengers. The poll followed a call by Norwegian economist Dr Bharat P Bhatta, Associate Professor at Sogn og Fjordane University

per cent more passengers

With the signing of a new MoU to enhance the bilateral air traffic agreement, Airlines of India and Singapore would now be able to fly ten per cent more passengers. An official statement stated the agreement would enhance by ten per cent the capacity entitlements with Indian carriers now entitled to operate 29,400 weekly passenger seats from India to Singapore and the designated airlines of Singapore flying 28,700 weekly passenger seats from Singapore to India. The MoU was signed by Civil Aviation Minister Ajit Singh and Singapore's Transport Minister Lui Tuck Yew in Singapore. The common pool rights to the extent of 5160

power-out system and big enough to house Airbus-320, Airbus 321 and Boeing 767 type of aircraft. Ranchi Airport Director R R Kumar said a proposal for the construction of parking bays was deliberated sometime ago. “The proposal was sent to the AAI headquarters for its approval,’’ said Kumar.

Cruising Heights May 2013

College, Norway who said that airlines should follow other transport sectors and charge by space and weight. He was of the opinion that ‘a pay as you weigh’ airline pricing model could bring benefits to airlines in the form of cheaper fares and reduced carbon emissions. However, 41 per cent of travellers in the study were against the introduction of the so-called ‘Fat Tax’ stating that it was unfair to discriminate.

seats was earlier available to Singapore, which provided greater operational flexibility to Singapore carriers at major metro centres viz Chennai, Delhi and Mumbai, have now been withdrawn. The designated airlines of Singapore can operate with any aircraft type except A-380.

$257

mn airport contract

Larsen & Toubro (L&T) recently bagged a $257m contract from Abu Dhabi Airports Company PJSC for the development of the Midfield Terminal Complex. In a statement, Larsen & Toubro (L&T) said that work on the Midfield Terminal Complex (MTC) was part of the major expansion programme of Abu Dhabi International Airport. It consisted of a Midfield Terminal Building (MTB) and related airside and landside work. The MTB would serve as the new gateway to Abu Dhabi. L&T will build concrete hard stands for aircraft parking around the new Midfield Terminal Building, including contact and remote stands.

news digest

No way out for Mallya but to take the final bow K

ingfisher Airlines shut down operations in October 2012 and its Air Operators Permit (AOP) was suspended on December 31, 2013. Technically this means the airline is in existence but cannot fly unless it is able to assure and guarantee authorities — in this case the Ministry of Civil Aviation and the regulator DGCA that it can operate commercial flights safely and securely. Kingfisher Airlines has a timeline of two years within which it can reapply and revive its licence and start operations subject to fulfilling number of conditions and settling an equally large number of issues — primarily creditors. Technically, therefore, Kingfisher Airlines has only a suspended licence and it has not been cancelled. During the recent Routes Conference in Mumbai from March 17 to 19, 2013, Civil

Aviation Minister Ajit Singh, when asked about the possibility of Kingfisher Airlines taking to the skies again, said KFA had not given a revival plan even as its employees were agitating for non-payment of salaries for nearly 10 months in many cases. Ajit Singh said: “All they have to do is to satisfy DGCA that they can do safe sustained operations. They have to give a rather financially viable plan. He (Mallya) has not given so far.” Ajit Singh said that while the government had no role to play, the airline’s licence validity ended in December 2012 and it had two years to get its scheduled operator’s permit to be revived and restart operations. Earlier this year, Kingfisher Airlines CEO Sanjay Agarwal met with the DGCA seeking permission to start some kind of skeleton service. However, this request was

Cruising Heights May 2013

rejected. On April 10, Kingfisher Airlines made yet another attempt and formally filed its new plan with the DGCA to restart operations with about seven aircraft. According to Sanjay Aggarwal, his airline shared the funding and traffic plans with the regulator. He said the initial funding for relaunch of the operations would come from the UB Group and the licence should be revived. Though the DGCA did not reveal its view other than saying that the proposal was being examined, the state-owned Airports Authority of India (AAI) immediately rejected the request stating it would not issue a ‘No Objection Certificate’ to enable Kingfisher to fly again. AAI’s bone of contention was the nearDESERTED: Kingfisher Airlines check-in counters at one of the Indian airports

ly `400 crore that Kingfisher Airlines owed it and unless this was cleared it would not allow the airline to restart operations. AAI even rejected the request of Kingfisher Airlines to allow it to fly on the basis of cash and carry as private airport operators had agreed. As if this was not enough, the biggest creditors of the carrier, namely the consortium of 17 banks led by the State Bank of India besides issuing legal recovery notice to Kingfisher Airlines, also began exploring all means to recover its loans that has now nearly touched `8000 crore, inclusive of accumulated and still accumulating penal interest. Kingfisher chief Vijay Mallya tried a number of times to get a new investor from within and outside India. But no one — industrial house or airline from anywhere in the world — showed any interest as it made more sense to go for a new airline tie-up than get bogged down by Kingfisher because of its huge debts. The entry of Air Asia India has to be seen in this context. According to a serious estimate, Kingfisher Airlines owes nearly Rs 9300 crore which is higher than the normally publicized `7300 crore it owes banks for the loans it took to remain in operation. In fact, SBI has already sold shares of United Spirits Limited (USL) it had as collateral for the loans it had given for `100 crore. The Bank is contemplating sale of shares of UB Holdings that may help it recover about `500 crores. There is speculation that another lender, United Bank of India, may have filed a winding-up petition against UB Holdings Limited in the Karnataka High Court. Talks with the Kingfisher boss’s close associates who still continue to swim with him against heavy headwinds say that the flamboyant Vijay Mallya has become a loner these days and ready to sell the airline lock stock and barrel along with his prized — perhaps, not anymore — Kingfisher brand. Obviously there are no takers. In early January 2011, Mallya managed to get his corporate debt restructured and palmed off nearly 23 per cent of KFA holdings to these banks at a premium. When the market price of the shares was `22, he managed to get part of his loans converted into equity in favour of these banks at `60 per share. In less than two years, the shares have plummeted to below `10. Obviously, the once-bitten-twice-shy banks do not want to deal with him anymore. After the recent instruction from Finance Minister P Chidambaram — issued in late March 2013 — that banks should immediately recover loans from defaulting companies where promoters remain affluent but their companies sick, Lead Bank SBI engaged a legal firm to recover its money. SBI Chairman

“We are blazing all guns and taking all steps to recover loan from Kingfisher Airlines. There is a core group. They are assessing what are the securities that can be disposed of quickly then there are some which can be put on auction.” Pratip Choudhury SBI Chairman

“What about loan recovery from those other than KFA? I serioiusly wonder what motivates the bank chairman to constantly speak to the media on loan recovery from KFA. What about others?” Vijay Mallya

Chairman, Kingfisher Airlines

Pratip Choudhury after the meeting of PSU banks and FIs with the Finance Minister said: “We are blazing all guns and taking all steps to recover loan from Kingfisher Airlines. There is a core group. They are assessing what are the securities that can be disposed of quickly then there are some which can be put on auction. That is how it goes.” According to informed sources, the United Spirit Limited shares held as collateral by SBI alone can bring in `500 crore but even this is not the full story, say those who know Mallya. In reply to SBI Chairman, Vijay Mallya tweeted: “What about loan recovery from those other than KFA?” Taking a dig at him, Mallya said: “I serioiusly wonder what motivates the bank chairman to constantly speak to the media on loan recovery from KFA. What about others?” Mallya even said that Kingfisher too was blazing all guns and “taking all steps to recover (the airline)”. In a way it has become a battle of wits and no one knows when the money will be recovered on the one hand by the banks and when fresh money will come to Mallya to restart the airline. What then are the problem areas of Mallya and his KFA.  He owes Banks ` 7300 crore, a figure which is not the final figure.  He owes ` 300 crore to Airports Authority of India.  He owes ` 330 crores to various aircraft leasing companies, among who are the US-based ILFC and Germany’s DVB. Cruising Heights May 2013

He owes ` 180 crore in all to his 3000 employees by way of salaries, arrears, etc.  He owes nearly ` 200 crore to the CBEC by way of unpaid Service Tax and the CBDT of the TDS which was deducted from the salaries of his employees but not deposited with the IT department. While the Banks have engaged legal help to fight a long battle with Mallya to recover their loans and interest besides penal interest, the state owned AAI is in the process of filing a case to recover its money from Kingfisher by way of unpaid airport charges, etc. It may be pointed out here that Mallya/KFA had issued a cheque in the past to the AAI that bounced. The leasing companies have gone to the Karnataka High Court seeking recovery of dues. The leasing and foreign vendors who have not been paid by Mallya also include International Aero Engines (IAE), Rolls Royce & Partners, RRPF Engine Leasing, BNP Paribas, ATR, SM 6, Wells Fargo Bank and Aerotron. All these companies had approached the High Court seeking winding up of the company for recovery of their dues. Karnataka High Court then urged the UB Group, comprising UB Holdings and KFA to come up with a concrete plan on how it intends to pay dues worth `330 crore to the clutch of aircraft lessors. In case Mallya, UB, KFA fail to submit a workable response, then the High Court will proceed with the winding up petition. 

news digest

ABOVE GROUND LEVEL   AAI and MITRE join hands

GLOBAL CONNECT: V Somasundaram, Member (ANS) (right) exchanging the MoU with Gregg Leone, International Director, MITRE Corporation of USA (left) in the presence of AAI Chairman, V P Agrawal

Airports Authority of India (AAI) took the big step in CNS/ATM (Communications, Navigation, Surveillance/Air Traffic Management) infrastructure modernisation by signing two agreements with MITRE Corporation which will usher a technological centre with a host of laboratory capabilities for CNS/ATM research and development in the country. The proposed technical centre will provide comprehensive laboratory capabilities to support AAI’s daily ATM operations and maintenance, performance analysis and research and development. The technical centre will pave way for AAI to ensure inter-operability among diverse systems, financial, technical and operational feasibility of new CNS/ ATM solutions and proper return on investment. V P Agrawal, Chairman, AAI, speaking on the occasion said, “Having made substantial improvements in CNS-ATM infrastructure to cope with the growing traffic demands, MITRE’s professional expertise and support to AAI will go a long way in AAI developing and strengthening the muchneeded research base for AAI.”

 Indigenously built aircraft in the pipeline At the FAA/Asia-Pacific Bilateral Partners Meeting–2013, Civil Aviation Minister Ajit Singh said that India would soon be working on a civil aircraft in future. Speaking on the sidelines of the meeting, he said, “We also have a national civil aircraft development programme for 100-seat medium transport aircraft. Some of the country’s leading aeronautics and space scientists are spearheading the project and I hope this takes shape.”

A CLOSE CALL: Flie picture shows Kingfisher Airlines CEO Sanjay Aggarwal speaking to media about the revival plans of the airline

(With so many entities filing and/or wantPending all this, DGCA re-allotted some of ing to file cases, it has become very diffiKFA’s slots/rights to other carriers like Incult to keep track of who filed what.) diGo which got three for flights to Chennai. Due to non-payment of salaries for Further, Jet, Spice and Air India got a flight nearly 10 months, the employees of KFA each into Pune, etc. The foreign rights have have also decided to approach courts of law also been redistributed among the existing for winding up and recover their salaries carriers. and back wages. This position has arisen DGCA said they want Kingfisher Airafter Mallya promised a number of times lines to get a ‘no objection certificate’ from that he would pay salaries but did not all creditors and at least letters of comfort do so. In fact many of his pifrom some banks, etc. before it can lots, engineers have joined be allowed to fly — subject of IndiGo and many are course, to the airline fulfilling The CBEC and waiting to join the proall safety and security condiCBDT have also posed Air Asia India tions. as both these carriers This is where the airline filed cases against use Airbus A 320s that stands today. Mallya is yet to Mallya/KFA seeking reveal his mind. But he has KFA was flying. The CBEC and to recover the statu- told close associates that he CBDT have also filed was desperate for any suitor tory dues cases against Mallya/ who may want to buy the airKFA seeking to recover the line along with the brand name. statutory dues which was colThe brand name Kingfisher has got lected but not deposited with the tax so badly bruised that any new investor will authorities. This is supposed to be a crime have to think many times before commitand could hurt persons responsible and acting to buy out Mallya’s pain. Till he has an countable for it. answer for his pending dues or liabilities, Despite these, Mallya and his CEO Vijay Mallya will find it difficult to get Sanjay Agarwal have been meeting the suitors: a foreign suitor for 49 per cent of DGCA regularly seeking to start the airthe shares and an Indian who can share his line. In fact, the last time such a meeting 51 per cent or alternatively a foreign suitor happened was when they went to seek refor 25 per cent (if the foreign airline wants assurance that their domestic slots at varito avoid SEBI regulation triggering the ous airports — Delhi, Mumbai, Chennai, takeover code with the mandatory 20 per Bengaluru, etc.— should be restored to cent public offer) and get another domestic KFA once it started operations with six airpartner to share the remaining stakes even craft moved up to 11 in a few months. But as Mallya decides to retain 51 per cent. at that time, the DGCA said unless KFA That looks like a remote possibility. It is gave a financially-sound plan for revival, high time for Mallya to state in unequivoit would be difficult to consider its case. cal terms that he has lost the battle. n Cruising Heights May 2013

IN THE FIRING LINE: Air India's headquarters 'Airline House' at New Delhi

ABOVE GROUND LEVEL 

HUGE GATHERING: The international participants with the Civil Aviation Minister, Ajit Singh, at HAL’s Ghatage Convention Centre in Bengaluru

Testing times for Air India A ir India has come under fire for understating its losses by `2842 crore in 2011-12 following an audit report. The report was prepared by the C&AG appointed auditors who said Air India actually made a loss of `10,402 crore and not `7559 crore as reported for the financial year 2011-12. The Air India management, however, differed with the auditors over the interpretation of confident of realising the deferred tax assets based on its turnaround trips”, as per news reports. The three auditors engaged in the exercise were R Devendra Kumar and Associates, Kapoor Tandon & Company and PKKG Balasubramanian & Associates. The three were appointed by the CAG to review Air India’s accounts for 2011-12. As per the report, Air India had been carrying the net balance of deferred tax asset amounting to `2842 crore which was found in 200708, the year of merger and a year later in 2008-09. The auditors said in the subsequent years that the differed tax asset was recognised only to the extent of deferred tax liabilities as a prudent measure. The report, a part of the 2011-12 annual report of Air India, said “since virtual certainty as stipulated under accounting standard has not been established in the year 2009-10, the carrying forward of the deferred tax asset should have been changed in 200910 itself. Consequently, the loss for 201112 was understated by `2842 crore”, the

auditors said in their report. In its reply, the Air India management said in the financial year 2012-13, that the state-owned carrier took several steps to improve its financial and operational performance. Air India was even targeting Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) positive in 2012-13 as a result of these measures. Therefore, reversal of deferred tax asset created in 2007-08 and 2008-09 would be incorrect at the present juncture following the improved performance. It would mean a lack of confidence in the implementation of the turnaround plan which seeks to return Air India to profitability in a reasonable period of time. It may be recalled that the government approved a ten-year `30,000 crore turnaround plan for Air India which among other things seeks to make the airline profitable and also shed its extra baggage in the form of employee strength through voluntary retirement, hiving off engineering and ground handling units into separate business units leaving core flying business intact with fewer number of wage-allowance-no work kind of employees. The Air India management further noted that in the first half of 2012-13 on-time performance improved to 85 per cent, plane load factor to 70.9 per cent, yield to `4.31 per kilometre, increased fleet utilisation to 10.5 hours for narrowbodies and 12.5 hours for Cruising Heights May 2013

R K Tyagi, Chairman, HAL, said the HAL had been focussing on military aviation but now planned to diversify to the civil market. “We have made a humble beginning with the Dhruv civil variant as an offshoot of the military programme. We now propose to play a leading role in India’s national civil aircraft development programme as we have dedicated facilities at our transport division in Kanpur,” he said. The three-day meet was organised by Directorate General of Civil Aviation (DGCA) with the main focus on the aircraft certification, provides an opportunity for partner Civil Aviation Authorities (CAAs) from 11 countries to share methods for strengthening bilateral airworthiness relationships through enhanced resource sharing, communications and procedural improvements. Apart from the delegates from the USA, the participating Asia-Pacific countries included Australia, New Zealand, Singapore, China, Chinese Taipei, Hong Kong, Indonesia, Japan, Korea, Malaysia and India.

 EDs for AAI

To boost air navigation, CNS Planning and Air Traffic Management (ATM), AAI recently promoted three new Executive Directors: S Bhattacharya, ED (CNS-OM), P K Bandopadhyaya, ED (CNS-P) and P K Mishra, ED (ATM). Earlier they were working as General Managers in their respective field. These officers have rich experience in the field of Air Navigation, Communication and CNS Planning while working at various airports in different capacities.

 Nagpur Airport salutes B R Ambedkar

AAI recently installed a statue of Dr

news digest

ABOVE GROUND LEVEL 

AN ODE TO a LEGEND: Ajit Singh, Union Minister of Civil Aviation and Prithviraj Chavan, Chief Minister of Maharashtra, lighting the lamp at the unveiling of the statue of Dr B R Ambedkar at Dr. Babasaheb Ambedkar International Airport, Nagpur. Seen in the picture are Bhadhant Arya Nagarjun Surai Sasai and V P Agrawal, Chairman, AAI and other diginitaries

B R Ambedkar which was unveiled by Ajit Singh, Union Minister of Civil Aviation in the presence of Prithviraj Chavan, Chief Minister of Maharashtra, Bhadhant Arya Nagarjun Surai Sasai and Anil Sole, Mayor, Nagpur. Speaking on the occasion, V P Agrawal, Chairman, AAI, while paying tribute to B R Ambedkar said that Information Security Management System ISO 27001 was implemented at Nagpur Airport and “it is first airport which has successfully implemented a prestigious international standard. Also at this airport, ADS-B System is successfully integrated with INDRA Automation System. This system has been implemented with a view to securely manage the information in the CNS/ATM System.”

 Ludhiana airport ushers VOR equipment Ludhiana airport recently got VOR (VHF Omni directional range) equipment. The equipment will be instrumental in streamlining the operations of flights to and from Ludhiana airport. Union Minister for Information and Broadcasting Manish Tewari said on the occasion that “the airlines find it very difficult to operate in a limited space. However, by improving upon the technology at the airport particularly after the commissioning of the VOR, the visibility will improve to a great extent. No flight will get cancelled for poor visibility, the main reason for the cancellation of the flights. Now the passengers coming to and flying out of Ludhiana will not have the uncertainty looming about the operation of the flights.”

MINIMISING THE LOSSES: The Cost Cutting Committee of Air India submitting its report to the Union Minister for Civil Aviation, Ajit Singh

its widebody planes. All of these led to a reduction in cash losses during the first half of 2012-13. The Maharaja was, therefore, confident of utilising the net deferred tax asset to the extent of `2842 crore already recognised during the initial two years of merger (2007-08 and 2008-09) against future tax liability. Even as Air India maintains optimism on these fronts, its story of a turnaround plan measured in terms of what it was supposed to achieve has fallen far short of expectation. Air India has been given a target of raising `5000 crore from the sale of its property in 10 years. In the first year, 201213, it was supposed to raise `500 crore through asset sale. This did not happen for various reasons. Air India has, therefore, now decided to garner `1200 crore through its realty sale and also lease in some cases

during the current fiscal, 2013-14. Of this `800 crore is expected to come from the sale of a four-acre plot of land in prime New Delhi zone and the rest from sale of flats and land in Mumbai, Chennai, Coimbatore, and sale of its own apartments in Honk Kong and Nairobi. Air India’s headquarters in Delhi, which was the erstwhile headquarters of erstwhile Indian Airlines called ‘Airline House’ on Baba Kharak Singh Marg in the so-called Delhi Imperial Zone (meaning a part of the seat of Central Government) is also being offered for lease only to government-owned companies as the airline feels the property should remain with the government-owned land bank. Already LIC, ONGC, etc. have shown keen interest to get it. Only if the rates are not attractive will Air India go in for an e-auction (as it has proposed all its

Honours for GMR airports

elhi International Airport Ltd. (DIAL), the operator of the country’s busiest airport, achieved yet another milestone when the Indira Gandhi International Airport (IGIA) was ranked second in the 25-40 million passengers per annum (MPPA) category in the world in the Airport Service Quality (ASQ) Awards announced by the Airports Council International (ACI) for 2012. Commendably, Hyderabad’s Rajiv Gandhi International Airport, operated and managed by GMR Hyderabad International Airport, was also adjudged as the second best airport in the world for the same year, in the 5-15 MPPA category by ACI. With that, the airport improved its

Cruising Heights May 2013

last year’s ASQ score as well. IGIA has made uninterrupted progress in terms of quality levels and rankings over the last six years since DIAL was appointed as the operator. The airport scored 4.83 on the ASQ scale out of 5 points and was recognised as the fourth best airport in the world among 199 participating airports across all categories and the second best airport in its category in 2012 — an advance from its earlier ASQ score of 3.02 in 2007, ranking last in an universe of 101 airports. Said I Prabhakara Rao, CEODIAL: “This recognition is a testimony to all our employees and partners who have consistently met the expectations of the industry and have delivered an altogether

property sales which will eliminate agents been taken to increase the occupancy and coming in between) related lease. Air India revenues per flight in view of the high load has 106 properties in India and abroad and factors being achieved in the economy currently has a debt of `43,000 crore and class. During the years, 2010, 2011 and accumulated losses of `22,000 crore. 2012, the daily utilisation of A 319 aircraft Air India is now in an upbeat mood with with Air India was 8.05 hours, 7.65 hours the Boeing 787 receiving complete clearand 8.55 hours, respectively. That of the A ance from the FAA for its battery related 320s was 8.40 hours, 7.86 hours and 9.23 problems and the Maharaja is planning to hours and that of A 321s was 9.21 hours, launch new, long haul destinations from the 9.43 hours and 9.93 hours. The utilisation second or third week of May 2013. Air Inof these aircraft particularly the A 320s may dia is planning to connect new international seem to be rising for Air India, but it was stops like Birmingham, Moscow, Rome, far lower than what its counterparts in the Milan, Melbourne and Sydney in the next private sector have seen. In fact, the utilizasix months or before the end of 2013. tion of A 320s by IndiGo is as high as 14 Air India has argued that if it did hours. The widebody Boeing 777 not get to new destinations, of Air India saw a daily utiliIndian traffic would have to Air India is now sation of 12.83 hours, 12.74 pass through Dubai or even and 10.17 hours in in an upbeat mood hours Abu Dhabi if the governthese three years which ment cleared the demand with the Boeing 787 was far lower than what of Jet Airways for more other international carriers receiving complete have seats to Abu Dhabi. Paralbeen using on a daily lely, Air India has reconfigclearance from the basis. The fact that Air India ured 14 of 18 of its old A 320 is now using its Boeing 777FAA aircraft from the two class cab300 ERs for its direct India-US in configuration to a single class (Chicago) seems out of place in configuration of 168 all economy seats. the context of daily utilisation statistics, The carrier has also decided to reconfigure as revealed in the Lok Sabha by the minis24 new narrowbody aircraft, namely 20 ter. Now comes news that the government Airbus A 321s and 4 Airbus A 320s which may well opt for three Boeing 777-300 ERs are part of the 43 newly acquired aircraft. whose deliveries were deferred by Air InThese 24 aircraft will be reconfigured to redia when it could not utilise what it already duce the business class cabin compartment had. Air India has 12 Boeing 777-300 ERs. by two rows and proportionately increase Whether the aircraft of Air India fly long the economy class seating by two or three haul or not it is going to be indeed a very rows. long haul for Air India whether Abu Dhabi Responding to a question in the Lok becomes a hub, courtesy its proximity to Jet Sabha, the Minister of State for Aviation Airways whose closeness to power centres K C Venugopal said these decisions had is too well known to be reiterated here. n memorable and distinct experience for foremost responsibility is to improve faour customers.” cilities for passengers and offer them a Keeping up with the laurels for the convenient and comfortable transit. We GMR Group-led airports, RGIA has also are happy that RGIA excelled in all major consistently raised its standards in terms parameters under ASQ ratings. This is no of facilities and services for passen- ordinary achievement and would not have gers and has made significant progress been possible without the active involvesince 2009, when ment of all memthe score was 4.44 TOPPING THE CHARTS: bers of the RGIA Inside view of Terminal 3 and subsequently at Delhi Airport family.” the 2011 score led RGIA recently RGIA to 4.58 in the has completed its 5-15 MPPA category. second phase of For 2012, RGIA has modification of the been placed second terminal building in the overall rankand has consistenting with a score of ly been enhancing 4.71, and very close passenger facilities to the first position by 0.004 points away. and exploring new avenues to escalate the Speaking on the occasion, Vikram Jais- ‘feel good factor’ for passengers transitinghani, CEO-GHIAL, said, “An airport’s ing through RGIA. n

Cruising Heights May 2013

ABOVE GROUND LEVEL   Fire-fighting drills at AAI

In order to sensitise fire personnel working at various fire stations in India, AAI celebrated fire service week. A full fledged fire drill was organised at the Fire Service Centre of AAI at New Delhi. During the day, mock up

SALUTING BRAVEHEARTS: G K Chaukiyal, Member (Operations), AAI inspecting the fire personnel at fire training centre, New Delhi

fire drill, evacuation of passengers from dummy aircraft, buildings, and offices was organised including extinguishing fires of various kinds. The fire crew displayed various other activities such as rescue of trapped live casualties from smoke logged rooms and of smoke clearance using smoke extraction equipment.

 Indian airports gets ERP push

AAI recently took a leap when it decided to implement ERP in HR, Finance, Material Management and project system functions to improve productivity, efficiency and transparency under the project named PARIVARTAN. The SAP ERP implementation by KPIT Cummins covers 125 airports across India and is being synchronised with the new financial year. The system will handle payroll accounting for nearly 19000 employees of AAI at various airports across the country. V P Agrawal, Chairman, AAI said that the new enterprise software implementation would not only improve productivity, efficiency and cost effectiveness but would also bring a high level of transparency in the HR and finance functions within the organisation. The ERP implementation will enable standardisation of processes across all the AAI operations in India and will become an accurate and single source of information.

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“Indian aviation needs more policy initiatives” Tony Tyler, IATA’s Director General and CEO, spelt out the priorities and challenges for Indian aviation at the annual India Aviation Day. Excerpts from his speech:

irst, India is a great potential market that has only just begun to realise its enormous promise. Second, to realise that potential some huge issues must be overcome. There have been some remarkable developments (in the eight months since my last visit). Air India seems to have come back from the brink. It is starting to address cost and personnel issues while solidifying its domestic market position. It may even be headed for a small operating profit in this fiscal year. Jet Airways has attracted the interest of a suitor and could be the first Indian airline to benefit from the relaxation of rules on foreign direct investment, an initiative for which the government deserves congratulations. This is also spurring developments in the point-to-point sector as we see Tata group looking to team-up with AirAsia to start a new competitor in the sector. That follows, of course, the strong performance of existing carriers in the sector such as IndiGo and SpiceJet.

The Indian agenda

To be successful in such a difficult environment my previous speeches in India have presented an agenda based on: • Improving infrastructure: The most urgent need is to move forward with Navi Mumbai to provide India’s financial capital with the connectivity that it will need for continued success. • Reducing costs: Indian infrastructure in general is expensive. Our concerns over the charges increases in India are well-known. And there seems to be a growing list of airports asking for what can only be viewed as unreasonable increases. • Lowering the tax burden: Taxes on aviation in India are an onerous drain on competitiveness. State taxes on fuel can be up to 30 per cent. Globally, fuel averages a third of an airline’s cost. In India it accounts for 45 per cent. And on top of that India imposes a service tax on international travel which goes against International Civil Aviation Organisation (ICAO) policies. A similar tax on air navigation services is in direct contravention of the Chicago

efforts have seen the Petroleum and NatuConvention to which India is a signaral Gas Regulatory Board now deliberating tory. on a policy allowing a competitive aviation Solutions to these must be coordinated fuel market with third party access to pipeacross all ministries and levels of governlines that supply airports. ment. That is why I have called for India The interventions on the airport develto formulate a national aviation policy. The opment fee have provided some relief to the call was not for special favours or preferenpassengers as well. But there is, of course, tial treatment. But rather for a coordinated a need to do more. And I also congratupolicy framework that would facililate the Minister on his disbandtate growth. Sadly, once again ing of the aircraft acquisition the Finance Minister did not Aviation committee last week, givinclude the aviation indusand aviationing airlines in India contry in his plans, as a strong related tourism in trol over a critical comcatalyst for economic mercial decision. growth — continuing to India supports: 1.5 Each of these is see it only as a source of per cent of GDP and significant and moves taxation. 1.8 per cent of the in the right direction. workforce — which Benefits of aviation But they have by no It must be recognised that means or measure solved is 8.8 million aviation is an important all of India’s problems. jobs contributor to India’s econoWithout losing sight of the my. Aviation and aviation-related overall critical agenda items tourism in India supports: 1.5 per cent of improving infrastructure capacity of GDP — that’s over 900 billion rupees of and quality, reducing costs and achieving business and 1.8 per cent of the workforce reasonable levels of taxation, today I will — which is 8.8 million jobs. propose a series of measures that industry And these are good jobs. For those 1.7 and government could take on as near- to million directly employed in transport, each medium-term projects to deliver tangible generates about 1.3 million rupees in value benefits. added to the Indian economy — or about Safety ten times the Indian average. So, the MinThe first concerns safety. Safety is the top ister of Finance would have a huge stake priority for aviation. And industry and govin a coordinated national aviation policy. ernments are aligned on this worldwide. But the impact would spread much more And it is no different in India. As a result broadly. External Affairs, Home Affairs, of this common focus, the safety record of Human Resources Development, Comcommercial aviation is excellent and conmerce and Industry, Rural Development, stantly improving. In 2012, there was an Urban Development and Agriculture are average of one Western-built jet hull loss only the most obvious of cabinet responfor every 5 million flights. And there was sibilities that are in some way enabled by not a single hull loss with Western-built jets aviation connectivity. among the IATA members or among the Going forward airlines on the registry of the IATA OperaA few weeks ago many long discussions tional Safety Audit (IOSA). with the Indian military by the civil aviaSafety regulation falls squarely within tion ministry resulted in an agreement on the remit of government. And India is in the flexible use of airspace that will shave the process of moving from the DGCA to millions of dollars in fuel costs. Airports a Civil Aviation Authority (CAA) allowing Authority of India has spearheaded efforts more functional and operational autonomy that included 14 countries to introduce user to the regulator. The terms of reference for preferred routes in the Indian Ocean and the CAA reflect the priority on safety for Arabian Sea airspace. airlines, airport operators, air navigation The civil aviation ministry’s continued service providers and other stakeholders. Cruising Heights May 2013

The industry fully supports the move to establish a CAA for India based on global standards. The skill sets of the regulator will need to be built. I fully recognise that the regulator must maintain a healthy distance from the regulated. But there is a lot that the industry can share.

Loud and clear: Tony Tyler, IATA's Director General and CEO at the annual India Aviation Day

Security

As an important global player, I encourage India to be a strong participant in two key programmes. Secure freight is a supply chain security programme that is a ready-made template for governments. And Checkpoint of the Future is an initiative where we are working to evolve and enhance passenger security with advanced technology and better use of passenger data to drive risk-assessments—data that is already collected for border control purposes. Before that can happen however, we have an important issue to address. Both these programmes are underpinned by global standards. And India is unfortunately well known across the industry for the nonstandard Advance Passenger Information (API) that it requires airlines to transmit — and in a non-standard format I should add! API standards were established through the ICAO and the World Customs Organisation. Since 2008 we have had promises that India will bring its requirements in line with the standards. It’s time to deliver the long-promised result.

E-freight

It is incredible that in the Internet age the 50 million tonnes of air cargo shipments still rely largely on paper-based processes — even more incredible for India which has tremendous IT experience and skills. India has ratified the Montreal Convention 1999 which recognised electronic invoicing. It has also ratified the Kyoto Convention 2005 which has recommendations for paperless e-Customs procedures. India Customs has agreed in principle to creating a paperless environment. That’s encouraging. But progress is too slow. To be blunt we need a show of political will to kick-start the process. IATA is ready and willing to provide resources to help. And one of the goals of this visit is to secure the commitment of authorities at the highest level to support implementation of e-freight. So my proposed agenda of relatively quick wins is: • Cooperation to ensure the successful launch of the CAA by making use of IOSA and ISAGO • Standardising API requirements • Taking a leadership role in secure freight and Checkpoint of the Future • Clearing-up policy confusion on ground handling

• And, moving forward with e-freight within 2013 And of course, I will remind you again that these will take place within the context of an overall agenda focussed on ensuring adequate infrastructure, reducing costs and easing the tax burden.

Environment

I would like also to extend whole-hearted appreciation to the leadership of India in its opposition to the EU’s misguided attempt to include international aviation extra-territorially in its emissions trading scheme. The EU has stopped the clock. This averted a trade war and created the space for governments to agree on a global approach for managing the 2 per cent of global carbon emissions attributed to aviation. Environmental sustainability is the aviation industry’s licence to grow. As I have described today, the sustainable growth of aviation has much to contribute to India’s future development and prosperity. But whatever support is given by industry, an agreement at ICAO can only be achieved if governments are focussed with a common purpose in a sincere effort to find a solution. That includes India. That means follow-up on the important role that India played in Cruising Heights May 2013

steering Europe towards ICAO for a global solution by being a strong leader among the BASIC countries with a genuine effort to make the ICAO process work. The stakes for India in the climate change debate are high. And it is a persistent defender of the common but differentiated responsibility principle which accommodates developed and developing nation needs within the United Nations Framework Convention on Climate Change (UNFCCC) process. But there is good reason for ICAO having the responsibility for aviation’s international emissions. ICAO has a successful track record of facilitating global agreements and standards which take into account the needs of developed and developing nations—even on difficult issues such as noise. I conclude my remarks with a reminder of how important it is that India gets its aviation policy correct. Aviation is a force for growth and prosperity that can positively contribute to the development of this incredible country. IATA is committed to being a strong partner in moving the industry forward. And I look forward to celebrating some quick wins on my next return…. as well as setting the stage for further industry-government partnership progress. n

C o v e r S t o r y

THE NEW HOTSPOT: The Abu Dhabi International Airport terminal could become the next hub for Indian fliers

â&#x20AC;&#x153;There are markets like India, where there are 300 million middle class, which present a huge opportunity for us.â&#x20AC;? James Hogan, CEO, Etihad

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Cruising Heights May 2013

Protests from airlines, airports and even politicians notwithstanding, Jet’s demand for a hike in seats and destinations from India has been granted coming as it does on the heels of the conclusion of the Jet-Etihad deal. What do the deal and the hike in seats mean for the Indian aviation sector? R Krishnan pieces together the story

the beginning: Etihad Airways’ President-CEO James Hogan and Jet Airways Chairman Naresh Goyal after a meeting with Commerce and Industry Minister ahead of Etihad-Jet deal. The two airline chiefs also met Aviation Minister Ajit Singh

Cruising Heights May 2013

emember the story of the camel and the Arab? The camel slowly pushes the Arab out of the tent and occupies it exclusively. The way to total occupation of the tent was the camel’s plea that it was too cold outside in the night in the desert. In the story of the Jet Airways-Etihad Airways deal, the theme — or, rather the under current — was somewhat along these lines, notwithstanding the occasional hiccups. In the Jet-Etihad deal, Indian partner Jet Airways sought nearly 400 per cent increase in bilateral entitlement to Abu Dhabi carrier Etihad from the current 13350 seats each week to nearly 53400 seats a week, apparently to enable India among others to attract a huge number of tourists — a situation that did not happen with the higher number of entitlements each week enjoyed by Emirates which is Dubai’s national carrier. It may be pointed out that Dubai is one of the seven emirates like Abu Dhabi forming the UAE. In the story the Arab got pushed out. In the aviation deal those who are likely to be pushed out include Air India, owned and run by the Government of India, the private Indian carriers and airports in India, primarily Delhi, Mumbai and other metro airports.

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strategic tie-up: Prime Minister Dr Manmohan Singh and the Emir of the State of Qatar, Sheikh Harnad Bin Khalifa Al Thani, witness the signing of the air services agreement between India and Qatar in 2005 (File photo)

Should the government approve the request for a massive increase in bilateral seat entitlement was the question that was being asked by many and which was articulated by Dinesh Trivedi, Rajya Sabha Member of the Trinamool Congress (TMC) and member of the Parliamentary Standing Committee on Tourism and Transport headed by CPM Member of Rajya Sabha, Sitaram Yechuri. What is interesting to note is when Jet Airways announced that it would enter into a deal with Etihad which agreed to pick up 24 per cent stakes in Jet at an estimated value of `1650 crore during the last week of January 2013, everything seemed hunky dory. The teams of Jet and Etihad led by their respective bosses met Civil Aviation Minister Ajit Singh and it seemed the deal would be inked sooner than one could have imagined. Following this, Jet Airways Chairman Naresh Goyal often camped in Delhi for days to get the deal going as occasional hiccups resulted in speculation that the deal would go sour. To keep the deal going, Jet Airways took the first step in February 2013 and offered its three landing and departure slots at Heathrow in London to Etihad for a consideration of $70 million. Then came the after-thought when Etihad Airways bosses and Abu Dhabi ruling family members responsible for the airline, raised legitimate fears as to what would transpire if a situation similar to the one faced by Etisalat happened. It may be recalled that Etisalat had invested nearly a billion dollars in DB Realty which managed to corner a pan-India licence for 2G services in January 2008. The Supreme Court cancelled all the 122 licences under the 2G spectrum that also hit Etisalat. Not wanting to be placed in a similar

“India is a huge market for Emirates, but the number of cities to which we are allowed to operate are constrained” Tim Clark, President, Emirates situation, Abu Dhabi wanted the Indian government to sign a Bilateral Investment Protection Agreement (BIPA). In fact, Prime Minister Manmohan Singh’s scheduled trip to the United Arab Emirates (UAE) in March this year had to be pushed back because of the UAE’s insistence that India sign the BIPA, without which the Etihad-Jet deal would not go through. Incidentally, there has already been a delay of two months in signing the BIPA. Now the deal is through without the BIPA being signed. Even as Jet Airways Chairman Naresh Goyal was lobbying to get it done, he took two more steps to get closer to the UAE in general and Etihad in particular. After signing the deal for transferring its slots at Heathrow to Etihad, Jet Airways signed a wet lease agreement with Etihad in March 2013. According to the agreement, Jet Airways has transferred one of its Airbus A330-200s to Etiahd along with a compliment of 60 crew members comprising pilots/engineers, etc. This was the aircraft which Jet used to deploy on the ChennaiBrussels route (Brussels has been Jet’s European hub for some years). As Jet progressed in its talks with Etihad it also began to slowly disengage from the Brussels hub. Jet, which had earlier got permission to start 34 flights a week to Munich as part of its effort to make it a second European hub also decided to pull back and wait. Even Cruising Heights May 2013

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Munich airport authorities said Jet had suddenly gone silent. This was more or less confirmed by Jet Airways CEO Nikos Kardassis — though not in so many words. The Germans were keen to get Jet both into their Munich hub and also facilitate Jet Airways’ entry into the Star Alliance. It remains to be seen what they will do now. It may be recalled when Air India was negotiating to get into Star Alliance and fell off course, one of the airlines that made life difficult for the national carrier was Jet Airways which was trying then to get into Star Alliance. After the Etihad talks got warm, it not only put Munich on hold but even slowed its efforts to get into Star Alliance. Jet Airways has changed course midday and has now wet-leased its A 330-200 along with the crew to Etihad which has begun official re-training of the cabin crew in Mumbai. This will be some kind of prelude to full integration even though the stake picked up by Etihad is only 24 per cent. Separately, Jet Airways has also signed an agreement with Dubai-based dnata, a leading ground handling, airport services and other airline related services company. The Chief Commercial Officer of Jet Airways, Sudheer Raghavan, told the media that dnata would provide UAE visa services to Jet’s guests at Dubai, Abu Dhabi and Sharjah besides a range of other services on arrival and departure. In a way Jet

TRIPLE CHOKE HOLD

The present entitlements of the three major carriers from the UAE total 13,330+ seats per week



Amritsar



New Delhi

  Dubai Dubai



Kolkata



Abu Dhabi

Doha



Ahmedabad

Doha



Abu Dhabi

Mumbai



Hyderabad



Goa 

 Bengaluru 

Chennai

Legend

  

 Kozhikode

Etihad Airways

Kochi  

Qatar Airways

 Thiruvananthapuram 

Emirates Airline Map is not to scale and meant for graphical representation

Etihad Airways: 63 Flights a week to 9 destinations (Ahmedabad, Bengaluru, Kozhikode, Chennai, Kochi, Delhi, Hyderabad, Mumbai, Thiruvananthapuram)

Qatar Airways: 95 Flights a week to 12 destinations (Ahmedabad, Amritsar, Bengaluru, Chennai, Kochi, Delhi, Goa, Hyderabad, Kolkata, Kozhikode, Mumbai, Thiruvananthapuram)

Emirates Airline: 185 Flights a week to 10 destinations (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kochi, Kolkata, Kozhikode, Mumbai, Thiruvananthapuram)

Airways has moved forward to make Abu Dhabi its hub with its important presence in Dubai through dnata. Meanwhile, it would do away with Brussels as its present European hub and leave Munich as a virtual non-starter. Let’s look at the interesting piece of

the whole story. In early April, Jet Airways wrote a letter to Ministry of Civil Aviation seeking a huge increase in the bilateral entitlements in favour of Abu Dhabi from the present 13300 seats to nearly 54000 seats each week along with connection to 23 more Indian cities. Jet Airways Senior Cruising Heights May 2013

Vice-President Ragini Chopra wrote: “As capacity requirements are larger than those currently available under the existing bilateral arrangements, we request for the initiation of bilateral talks with Abu Dhabi Continued on Page 31

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‘Air India will certainly perish’ MP and former Minister Dinesh Trivedi’s letter to the Prime Minister clearly detailed the consequences that would follow the nod to Etihad’s demand for more seats. Excerpts: Respected Prime Minister Sir,

write this with a sense of concern and sadness, looking at the hampered by the competition posed by these well-established hubs bleak future of our national carrier Air India. I am sure you and their aggressive mega carriers. Allowing Abu Dhabi to come up will agree with me that our national carriers, erstwhile Indian as another hub which is only about three hours flight away from the Airlines and Air India, have so far stood the test of time in major Indian metros will kill all aspirations that we may nurture as spite of going through so much of turbulence on and off and have a nation, to establish a world class hub. provided tremendous national service. The establishment of hubs not only needs time, it also needs I understand from recent newspaper reports that the Govern- a home carrier with a critical size to be able to support the hub to ment is holding bilateral civil aviation consultations with Abu Dha- blossom. It is only of late that Air India has laid down a clear hub bi, and that the purpose of these talks is to enhance exponentially strategy with Delhi as its chosen hub, which needs to be given time the number of flights that Etihad Airways, the national airline of to bear fruit. In the case of Delhi and Air India, by allowing another Abu Dhabi, can operate to/from India. I also understand, from vari- hub to emerge at Abu Dhabi, we are denying them both the time they ous sources, that the demands of the Abu Dhabi Government are need as well as the ability to acquire the required critical mass for being tacitly supported by one of the private airlines of India as Air India to emerge as a network airline and for Delhi to emerge as they have asked for the seat capacity to be increased by a hub that can compete with other hubs in the neighbouran additional 40,000 seats per week, to support a similar hood of India. demand by Abu Dhabi. If such an increase is allowed to The other, more important impact will be that on Air happen, the total seat entitlement between India and Abu India. Air India is already struggling to service its masDhabi will go up to a whopping 110,000 seats per week. sive aircraft order, as Indian passengers prefer to travel I wish to place the above demands of Abu Dhabi in the via the foreign hubs that we have allowed to be created to context of the overall flight capacity scenario that exists serve the Indian market. As a result, the Government has between India and UAE, of which Abu Dhabi is a part. been forced to bail out Air India, and `30,000 crores of Dinesh Trivedi I understand that air service access and capacity entitletaxpayers’ money is being pumped into Air India to keep it ments are typically defined at a country level, that is, between India afloat and to give it the time it needs to get its act together(signs of on one hand and other countries as a whole on the other. certain turnaround is already visible). But Sir, instead of giving Air Accordingly, India has exchanged air access and capacity rights India the time it needs to consolidate as well as expand its network with more than 100 countries. UAE, however, seems to have been to more points, and to develop Delhi as its hub, the proposal of the accorded a special status as India has exchanged access and capac- Government to enhance Abu Dhabi’s entitlements will only hasten ity rights with each Emirate of the UAE, viz., Dubai, Sharjah, Abu its demise or the Government will be forced to pump in more and Dhabi and Ras Al Khaimah. more money into Air India to keep it afloat. The creation of Emirate’s specific capacity entitlements, couAlso, by allowing more hubs that will service the Indian interpled with unbridled access to all major cities in India for the airlines national travel market to come up, we will be denying Air India the of the UAE, has already resulted in Dubai establishing itself as the ability to establish direct services to long haul destinations with the primary hub for Indian traffic. Already Emirates Airline is being B787 Dreamliner that they have ordered for this very purpose. I called the ‘national airline’ of India, as it operates more flights and have in fact learnt that Air India have categorically stated that they carries more passengers to/from India than Air India, our national will be forced to withdraw direct flights to Europe and USA if the carrier. More than 70 per cent of the passengers carried by Emirates increase goes through. Parallels can be drawn with the fact that Air Airlines, however, travel to points beyond Dubai, on Emirates’ net- India has in fact shrunk its network over the years, in tandem with work. Now, Abu Dhabi is also keen to emulate the success of Dubai the growth of hub airports such as Dubai, Doha, Singapore, Bangand Emirates Airline, and is keen to establish Abu Dhabi as another kok, Hong Kong and others — having withdrawn operations from hub airport on the back of Etihad Airways, and for this reason is ag- Rome, Sydney, Melbourne, Perth, Geneva, Amsterdam, Zurich, Los gressively seeking an increase in capacity entitlements. Angeles, Washington, Birmingham, and other destinations. Already, India is struggling to create a world class hub at Delhi, I therefore urge you Sir, to kindly intervene and keep these talks faced as it is with competition from airports like Dubai and Doha in abeyance. If the Government is, however, constrained to hold in the Gulf and Bangkok, Hong Kong and Singapore in South East the planned civil aviation consultations with Abu Dhabi, we should Asia and despite leading airports like Delhi and Mumbai having offer them only a token increase in capacity entitlements. been privatised. While Delhi and other private airports along with With kind regards, the Government of India have made huge investments in upgradDinesh Trivedi ing infrastructure and building new, world class terminals, they are

Cruising Heights May 2013

A WIDEning GULF

Gulf carriers take away a hefty chunk of passengers from India International airlines marketshare 2011-12 Air India 11.91%

Gulf Carries 29.94%

Others 58.15%

Gulf Carriers' marketshare: Emirates 13.04% Qatar Airline 11.91% Air Arabia Airlines 04.41% Oman Airline 02.75% Etihad Airways 01.95% Fly Dubai 00.07% Total 29.94% Air India includes: Air India 06.83% Air India Express 05.08% Total 11.91% Others include international carriers touching Indian destinations Others 58.15 %

Source: News reports

Continued from Page 29 to enhance capacity to meet these requirements”. It was stated that Jet Airways had evaluated the business, tourism and travel potential of the Indian market and the request had been made keeping that in mind. The letter, written on April 4, 2013, came within weeks of an earlier request that was reported in the media and not denied by Jet then. In the third week of March 2013, as per media reports, Jet Airways applied for an increase in the quota of seats from Delhi and Mumbai and also sought new flights from Bengaluru, Chennai, Hyderabad, Thiruvananthapuram, Ahmedabad to Abu Dhabi. Jet wanted an additional 10,000 seats between India and Abu Dhabi each week. As per the existing bilateral rights between the two, Indian carriers have 13,300 seats available per week of which only 12,650 seats are being used. Jet Airways had a share of 30 per cent of these 12,650 seats and its request was for 10,000 more seats every week between India and Abu Dhabi. This meant an increase of 75 per cent in total seat quota available. While some of this enhancement was for the summer schedule that began in April 2013, most of it was for its winter schedule beginning end-October 2013. If news reports are to be believed, then something serious must have happened between March and April resulting in a rocket-like increase in request for seat entitlements. In support of this contention, aviation

sources said, soon after doubts were raised by Abu Dhabi about the safety of its investments and the need to conclude an early BIPA. Commerce and Industry Minister Anand Sharma, who was on a tour to Abu Dhabi in February 2013, said it would be decided soon. Later, reports appeared that Prime Minister Dr Manmohan Singh would be visiting the UAE and the BIPA could be signed then. But, for some reason, the trip of the Prime Minister did not materialise and later External Affairs Minister Salman Khurshid, in an interview to an economic daily, stated that Finance Minister P Chiadmbaram would be visiting UAE and the BIPA could be signed then. The trip is scheduled to happen at the time of our going to press. In the intervening period, Jet Airways stepped up pressure on the Indian Government to get the deal signed and as part of its strategy brought in the concentrated sweetner by seeking an enormous increase in bilateral seat entitlements in favour of Abu Dhabi — a virtual repeat of Emirates-Dubai which has 185 frequencies a week to India connecting practically every town and city that has a long runway in its airport!

There was a time when the Ministry of Civil Aviation used to be very strict in granting liberal bilaterals and it was the airlines that were at the forefront seeking hikes in seat entitlements. All that changed: when Praful Patel was Civil Aviation Minister, he turned it upside down and granted huge entitlements to Dubai followed by Abu Dhabi and then to Qatar which had been crying hoarse seeking more rights. After Jet shot off its letter to Rajiv Gandhi Bhawan, the Ministry of Civil Aviation responded on April 18, 2013 by convening a meeting of all stake-holders comprising domestic airlines and airport operators, both state-owned and privately-managed. To start with, domestic airport operators particularly GMR operating Delhi and Hyderabad and GVK operating Mumbai and Bengaluru, conveyed their very strong objections to the move. They said it would severely compromise the position of Indian airports as possible hubs — mainly Delhi and Mumbai. They said together they had invested $7 billion dollars on these airport upgrades and modernisation and intended to spend more on the second and, perhaps, third phases. All this would frustrate their

“India is a potentially lucrative market. Qatar Airways will be interested once the laws are liberalised” Akbar Al Baker, CEO, Qatar Airways

Cruising Heights May 2013

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cover story

Alliance shows government foresight: Naresh Goyal The release from Jet and Etihad sent out on April 24, 2013, was clear. It stated that the two carriers had forged a strategic alliance under the FDI policy of the government of India. According to the alliance, the UAE national carrier has agreed to subscribe for 27,263,372 new shares in Jet Airways at a price of `754.74 per share. The value of the equity investment totals $379 million and would result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways. Etihad Airways’ wider overall commitment to Jet Airways included the injection of $220 million also to create and strengthen a wide-ranging partnership between the two carriers. As part of this, Etihad Airways paid $70 million to purchase

efforts and completely neutralis e their finances. They reminded the Ministry of Civil Aviation of what Prime Minister Dr Manmohan Singh had stated in July 2006 while inaugurating the modernised Delhi International Airport. He had said: “We created a hub for India in Dubai allowing Emirates so many rights to India”. If the demand for seats was granted, they said, Abu Dhabi would become the second hub for India. The Prime Minister had then said India must develop its own airport hub in Delhi. What the Ministry of Civil Aviation wanted to do was exactly the opposite of what the Prime Minister had said earlier. Even the C&AG (Comptroller and Auditor General of India) had, in its report, severely criticized the liberal bilaterals granted to Emirates and underlined the importance of protecting India’s interest. This was what

Jet Airways’ three pairs of Heathrow slots through the sale and lease back agreement announced on February 27, 2013. An amount of $150 million would be invested by Etihad Airways by way of a majority equity investment in Jet Airways’ frequent flyer programme ‘Jet Privilege’, subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months. Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their

— and is still being done in most countries. It said there should be no further bilaterals till India had its own hub. Delhi and Hyderabad airports operator GMR told the ministry that state-owned Airports Authority of India (AAI) as well as private airport operators had invested heavily in the modernisation of India’s gateway airports and they were well established to handle transfer traffic on a large scale. In the meeting chaired by Civil Aviation Secretary K N Srivastava, the airport operators said, “Delhi and Mumbai currently account for 50 per cent of international capacity. The development of a hub at closer proximity would adversely impact further growth of these gateways as hubs. There will be an adverse impact on the recovery of investment growth of these airports as well as benefits associated with gateway airports.”

network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways’ growing global network. The release pointed out that passengers from 23 cities in India would benefit from direct connections to international destinations. New flights from Jet Airways’ home hubs and metro airports would further strengthen its current operations from these airports. Details of the investment were unveiled by Etihad Airways President and Chief Executive Officer, James Hogan, and the Chairman of Jet Airways, Naresh Goyal. Hogan said: “We are certain the partnership (with Jet) will bring significant benefits and opportunities for global

Mumbai and Bengaluru airport operator GVK also opposed the Etihad request for direct flights to Pune from Abu Dhabi because of its close proximity to Mumbai airport. Air India too, pointed out that if the seat entitlements to Etihad was raised to 55000 seats a week as it was for Emirates, then the government of India could forget about Air India or its recovery, since it would be forced to cancel all long-haul flights to the US within a month of officially permitting access to Etihad to more bilaterals. In anticipation of such a development, engineered by Jet Airways, Air India CMD Rohit Nandan warned the government and the Ministry of Civil Aviation in a letter dated January 10, 2013. Reacting to the 49 per cent FDI (Foreign Direct Investment) by foreign carriers in Indian domestic carriers, Nandan said if the government did not penetrate new destinations, agree to demands for Sixth Freedom rights or ferry Indian passengers onwards from hub airports, Dubai and Singapore would logically rise (Sixth Freedom traffic rights refer to the right of any foreign airline to carry passenger and cargo from India to a third country via its own country as is being done by Emirates through Dubai and now will be done by Etihad through Abu Dhabi). Incidentally, the government did not respond to the Air India chief’s note. HOLDING TALKS: External Affairs Minister Salman Khurshid meeting with the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Sheikh Mohammed Bin Zayed Al Nahyan, during his recent visit to Abu Dhabi

Cruising Heights May 2013

HOLDING TALKS: Salman Khurshid meeting with the Crown Prince of Abu Dhabi and Deputy SupremetoCommander of the UAE Forces, growth both airlines. It isArmed expected to Sheikh Mohammed Bin Zayed Al Nahyan, bring immediate revenue growth and cost during his recent visit to Abu Dhabi

synergy opportunities, with our initial esti-

mates of a contribution of several hundred million dollars for both airlines over the next five years.” He also said that the Indian market was fundamental “to our business model of organic growth partnerships and equity investments. This deal success at last: (LR) Captain Hameed Ali, Acting CEO Jet Airways; James Hogan, President and CEO, Etihad Airways; Naresh Goyal, Chairman, Jet Airways; and James Rigney, CFO, Etihad Airways, seen here after the announcement of their strategic equity alliance

Foreign airlines are not coming to India to invest and hence the government must watch carefully that the FDI for them does not become merely a way to increase their share of bilaterals as was sought for Etihad by Jet in mutual concert. That is why it has become extremely important for Indian carriers to invest in new destinations that Air India is seeking to do (see News Digest, Page 21). Coming back to our current story, as per current estimates, 40 per cent of the total Indian international traffic is routed through the Gulf — with Emirates, Etihad and Qatar handling the king’s share of traffic. During 2011-12 Emirates’ market share of passengers from India to foreign destinations was 13.04 per cent. Both GMR and GVK said that by providing sweeping access to Etihad would mean India would never have an airport hub of its own — now or in the future. Jet Airways in its request to the Ministry of Civil Aviation had also asked that it be allowed flights from 23 Indian destinations as origin points under codeshare with Etihad; simply put, that which means connecting the whole world from 23 more Indian destinations in addition to whatever it is flying to Abu Dhabi at present. When asked for specific comments, Air India said the current entitlement of 13,300 seats could be increased by 2,400 while IndiGo said it would go up by 5,000 and SpiceJet by 5900. None said it should go up by a whopping 40,000. The government went a step further than the 40,000 and enhanced the number of seats between India and United Arab Emirates to 50,000. The UAE had urged

India to allocate an additional 40,000 seats per week, and grant Goa, Pune, Amritsar and Lucknow as additional points of calls, remove the maximum cap prescribed from each point of call in-term of seats/frequency per week and allow third country/domestic code share facility. The government press release also stated that India was looking at the negotiations in the “overall economic interest of India and government’s policy of liberalisation for attracting foreign investment in India, including the civil aviation sector”. India had requested the UAE side to grant change of gauge facility at Abu Dhabi to Indian carriers in addition to ensuring full Fifth Freedom rights (the right to put down and to take on, in the territory of the first State, traffic coming from or destined to a third State) from UAE. As per the present Air Service Agreement, the designated carriers of both sides have an existing entitlement of 13,330+ 2 per cent flexibility (total 13,600) seats per week with 11 points of call available to UAE. As of April 24, 2013, both sides agreed to allocate an additional entitlement of 36,670 seats per week spread over a period of three years: 11,000 seats per week in year 2013, 12,800 seats per week up to the winter schedule 2014 and 12,870 seats per week up to the winter schedule 2015. Both sides also agreed to extend third country and domestic codeshare facility. The release went on to point out that the Indian side had not agreed to the request of the UAE for any additional point of call and removal of cap in terms seats/ frequency from each point of call. “The additional 2 per cent flexibility on total enCruising Heights May 2013

will allow us to compete more effectively in one of the largest and fastest-growing markets in the world”. On his part, Jet chief Naresh Goyal thanked the government of India, especially the Ministries of Civil Aviation, Commerce and Industry, and Finance, “for having the foresight to introduce the historic reform of allowing foreign direct investment into civil aviation in India. Infusion of FDI in the domestic sector will result in the improvement of the economics of aviation, grow traffic at our airports, and create job opportunities”. The deal with Etihad, said Goyal, would “further strengthen the balance sheet of Jet Airways and, more importantly, underpin future revenue streams, which will accelerate our return to sustainable profitability and liquidity.”

titlement has been done away with. Both sides have agreed to extend third country codeshare and domestic codeshare of designated airlines of either side,” the release said. The UAE also agreed to the Indian request of change of gauge facility and both sides agreed to allow designated airlines of each side to have the option to change the aircraft in the territory of the other party. The enhancement in the present capacity spread out over three years would allow the carriers of both the countries to plan their future operations. The change of gauge facility will provide operational/ commercial flexibility to Indian carriers to enable deployment of equipment corresponding to the market demand. This would help to enhance international connectivity for Indian passengers and also facilitate local and international route networking. The deed then has been done. We will have to wait and see if the move would lead to the immediate closure of Air India for which Civil Aviation Minister Ajit Singh had lobbied hard to get a `30,000 crore turnaround plan and of which `5000 crore has already been spent. In the nine years since the UPA has been in power, the Indian aviation sector has seen many ups and downs — perhaps, more of the latter. If Emirates can take away 13+ per cent of India’s international traffic, Etihad too could shave off another 17 per cent — what with the huge number of widebodied planes on order — with more than a little help from Jet Airways. What will be left for Air India will be jobless Air Indians and, of course, a new ‘pick-up’ point for the UAE. n

special report

Bizjets get a window of opportunity Business aircraft manufacturers are hoping to turn the corner this year after the couple of years of slow business. The sense of optimism was apparent at Geneva, where the business aviation community from around the will gather for Europe’s premier business aviation event at EBACE this year

uropean Business Aviation Convention & Exhibition (EBACE 2013), Europe’s premier business aviation event comes at a crucial time. As the world economy recovers, the business aviation sector is hoping to stage a comeback. And if attendance and participation is any yardstick, the sector can look forward to a better future. In fact, past business aviation events like the ABACE 2013 (Asian Business Aviation Conference and Exhibition) held recently at Shanghai Hongqiao Airport, China, closed with smashing records. Atmarketplace of bizjets: A look at one of the previously-held EBACE events

tendance was up more than 20 per cent from ABACE 2012, with 7,714 people walking through the door at this year’s show. It is not without reason that the show organisers are hoping for full houses on the three days (May 21 to 23) of EBACE 2013. Located at the Palexpo Convention Center and Geneva International Airport, there will not only be large aircraft static display but also education sessions. Even as we go to press, EBACE 2013 promises to showcase products from nearly 500 exhibiting companies to the over 12,000 attendees

from around the world. ‘Business Aviation: Making the Difference in Europe’, the topic of the keynote session this year, will feature presentations by several of Europe’s top transport leaders, comprising Matthew Baldwin, Director of Air Transport for the European Commission’s Directorate General (DG) for Mobility and Transport, and Jacek Krawczyk, Vice President of the European Economic and Social Committee (EESC). Said Ed Bolen, NBAA president and CEO, which co-hosts EBACE along with the European

Business Aviation Association (EBAA), “This is a unique opportunity for EBACE delegates to hear from several of Europe’s top aviation experts.” All eyes at EBACE will be on Pilatus, which is planning to take the wraps off its PC-24 twin-engined business jet at the event. The announcement comes less than a year after the company's board of directors gave the go-ahead to develop what it calls "the biggest, fastest and most complex aircraft that Pilatus has ever built". Incidentally, the PC-24 will be the first jet to be produced in Switzerland after the ill-fated P-16 fighter. Though that fighter programme was cancelled before the aircraft went into production because of two fatal accidents involving the prototypes, the aircraft’s design created business aviation history. Bill Lear used the multi-spar wing structure concept from the aircraft and incorporated it into the design of the first of the LearJet Family. Furthermore, taking safety as priority and considering that eight of 10 air accidents are caused by human failure, not equipment failure, the EBACE Safety

Workshop, will be an effort to provide critiSymposium will have the same success as cal information and training that is directly the NBAA Flight Attendant’s Symposium related to human performance. The workin the US. shop sessions will be presented by subject An expected shortage of business airmatter experts and will provide insight, craft pilots was one of the reasons behind knowledge, critical information and trainthe Student Day at EBACE, which will ing directly related to human performance. feature a panel of industry leaders who will The recently formed European speak about career opportunities Corporate Flight Attendant in business aviation. Students Pilatus Committee (ECFAC) will from aviation schools around hold its first symposium Europe have been invited to plans to take at the show. Involvement ‘Business Aviation the wraps off its attend has already been conas a Career: Build Your PC-24 twinfirmed by TAG Aviation, Future Now’. “We’ve orUniversal Aviation, Gama ganised this seminar so engined bizjet Aviation, International Jet that students can get curat the Club, Eyelevel, and Alison rent and reliable information event Price on Air. The committee’s about our industry,” said Befocus is to provide a new alllarmino Paradela, Senior Manencompassing educational resource ager of Economics and Operational for the Corporate Flight Attendant sector. Duties at the European Business Aviation With this in mind, the Symposium will adAssociation (EBAA), who will be moderdress key issues including: passenger and ating the event. “One of our goals is to let crew safety, on-board catering issues, and them see the opportunities that our field can service delivery standards. It is expected offer them. We want business aviation to be that this first European-based ECFAC one of their top career choices.” n

blog.globalair.com/

business aviation

Bizjets flights get a big boost After an illegal weapons drop by a low-flying turboprop cargo plane in the Purulia district of West Bengal in 1995, India had imposed restrictions on the flexibility of landing permit time for business jets. This however, is now about to change. In a milestone move, the advance application requirements for foreignregistered aircraft for a landing permit will be reduced from seven working days to three, and for an overflight from three days to one. “We welcome this decision,” said Rohit Kapur, President of India’s Business Aviation Operators Association, which for the last two years has been advocating the adoption of clear guidelines on access to Indian airspace and airports for foreign-owned business aircraft. The legislation, which has been cleared by the state cabinet, is now awaiting amendment to the civil aviation requirements by India’s Directorate General of Civil Aviation (DGCA) to enable it to be enforced, a process which is likely to take around two months. The implementation of faster approval times is taking place on a trial basis for six months and it is likely that after this,

the waiting period which would come under review could be abolished altogether, leading to instant approvals. The waiting period will also be waived during the trial for operators meeting three specific requirements: making at least three flights to India in the past 365 days; the flight is by a non-resident (Indian) of any of the 192 contracting ICAO states; and if approval is endorsed by an official of the rank of Deputy Secretary of India. The move was also welcomed by other business aviation stakeholders. Lex den Herder, Divisional Vice President for government and industry affairs at Universal Weather and Aviation, a flight services company that has spearheaded industry efforts to change the rules since late 2010, said: “This is a huge benefit to the whole of the business aviation industry. The restrictions have been a big stumbling block to doing business in India,” he added. “Seven working days for a landing permit meant it could take up to two weeks to arrange a change in schedule. The result was that businessmen with a sudden need to visit would take the airlines instead of their private jet, or wouldn’t go at all.”

Embraer delivers Level D for FlightSafety’s Simulator The full flight simulator by FlightSafety The new Legacy 650 simulator, located at 12 Exec Jets International for the Embraer Executive Jets FlightSafety’s Learning Centre in St. Louis, Embraer delivered 12 jets to the business aviation market during the first quarter of 2013. On March 31, 2013, the firm order backlog totalled $13.3 billion, an increase of $800 million over December 31, 2012. As previously announced by the company, this backlog included an order for 47 E175 jets from Republic Airways Holdings Inc., and also a contract signed by Embraer Defence and Security to supply 20 A-29 Super Tucano aircraft for the Light Air Support (LAS) programme for the US Air Force (USAF).

Legacy 650 aircraft has been qualified to Level D by the United States Federal Aviation Administration; Agência Nacional de Aviação Civil in Brazil; and European Aviation Safety Agency. “Pilots and maintenance technicians who operate and support the Embraer Executive Jets Legacy 650 will benefit from the highest level of fidelity, quality, and reliability this new simulator provides,” said Bruce Whitman, President and CEO. “The Level D qualification of the Legacy 650 simulator by the FAA, ANAC, and EASA demonstrates our ability to design and manufacture advanced technology training devices that qualify to the highest standards.”

Cruising Heights May 2013

Missouri, is equipped with the company’s advanced VITAL X visual system. It will enable FlightSafety to begin Legacy 650 training during the second quarter of 2013. “Providing the Legacy 650 simulator illustrates our continued commitment to meeting customer needs,” said Edson Carlos Mallaco, Vice President, Customer Support and Services, Embraer Executive Jets. “Embraer Executive Jets and FlightSafety have built an important partnership in order to serve our mutual customers. The new simulator confirms our continuous efforts to provide the best possible customer experience.”

business aviation

Pilatus PC-24 poses competitive threat to Embraer After Swiss aircraftmaker Pilatus’ recent release of the silhouette of the PC-24 twinjet which indicates that it is aimed at the class of light jets, Embraer is closely scrutinising it as a new competitive threat to the Phenom 100 and 300 aircraft. “Any aircraft that wants to enter into this market we at Embraer want to take seriously,” said Ernest Edwards, Executive Vice-President of the Embraer Executive Jets division. Although little is known about the project, but the

twinjet marks a strategic leap from Pilatus’s background as a turboprop aircraft manufacturer. Till the time the 2008 global financial crisis had hit the light jet sector, Cessna and Beechcraft were the primary rivals of the Phenom. In addition, a new entrant is expected to enter the market later this year: the HondaJet. “It’s still left to be seen how successful the HondaJet will be, (and) what the PC-24 is, but we must take everybody seriously,” said Edwards. Ernest Edwards

New jet cabin air system

China’s own Biz aircraft

The development of a downsized version of its ‘Cair’ air humidifying equipment for business jets is being planned by Swedish cabin climate specialist CTT Systems. Peter Landquist, Vice Pesident, Sales, Marketing and Customer Support, said that a number of business jet operators had shown interest in respective equipment for their medium-sized Bombardier, Embraer and Gulfstream aircraft and the new system would be available as both line and retrofit equipment.Till now, the system has been installed only on transport category aircraft to improve the air quality in the premium cabins and crew areas on jetliners or on VIP variants of the same types. While the company’s zonal dryer — which would be necessary to avoid condensation and extract the added water — could be fitted to the aircraft without difficulty, the bulkier humidifier needs to be redesigned for the sleek jets.

China is all set to establish itself as an active manufacturer of business jets. Moving in this direction, China’s Avic group has started work on its own design for what it calls the China New Generation Business Jet. In addition, other new domestically developed general aviation aircraft are starting to take shape as well. Till now, China had been partnering with foreign airframers to achieve this goal. Embraer had signed a framework agreement two years back to start assembling Legacy 600 and 650 jets in China. The partnership already is backed by 10 commitments from a Chinese leasing group, covering five firm orders and five options. Avic and Cessna have signed a framework that will see Avic’s Chengdu Aircraft division involved in joint manufacturing of several of the US company’s aircraft. By year-end, the Chinese factory is due to deliver the first locally assembled Citation Sovereign jet.

Asia orders keep Lufthansa Technik busy Lufthansa Technik’s completions division has been preoccupied with the strong demand from

Asia and the company’s orderbook for the region had stretched out until 2014. A total of eight Airbus Corporate Jets and Boeing Business Jets (BBJ) were delivered by the company to Asian customers between January 2012 and February 2013. Lufthansa Technik also informed that a BBJ will be handed over to China's Nanshan Group in the second quarter of 2013 and there are three additional narrowbody completions — two BBJs and one ACJ318 — on order from Asian customers. “The Asian — especially the Chinese — VIP aircraft market is significantly increasing every year,” said Walter Heerdt, Senior VP, Marketing and Sales at Lufthansa Technik. Cruising Heights May 2013

Challenger 605 warranty extended Bombardier Aerospace recently announced that it will be extending the warranty of its Challenger 605 aircraft. Specifically, the basic warranty of its Challenger 605 business aircraft will be enhanced from the current three years or 3,000 hours to five years or 5,000 hours. “Customer satisfaction is our top priority,” said Michel Ouellette, Vice President and General Manager, Challenger, Bombardier Business Aircraft. “We listened to our customers’ feedback and by improving our Challenger 605 aircraft warranty, we are confident that we will further enhance our customers’ experiences.”

Michel Ouellette

The new warranty will be standard on all Challenger 605 aircraft delivered after April 1, 2013. The basic warranty includes: systems and components coverage, which has been increased to five years or 5,000 hours, avionics remains unchanged at five years with no flight hour limitations; APU coverage is now at five years or 5,000 hours. In addition, primary structure will remain at 10 years or 10,000 hours, while engine remains unchanged at five years or 2,500 hours directly from the original equipment manufacturer and completion work warranty unchanged at two years, however the flight hour restriction has been completely removed.

Focus on ‘Copters P43

P44

NEW INNOVATION

most advanced

Sikorsky will be providing highlevel research in the fields of Aerospace and Technology

Choppers usher a groundbreaking new system in fly-by-light control system

Choppers for change The country’s tourism sector would get a major boost when heli-tourism takes off. While the first steps were taken with transportation of pilgrims and devotees to religious destinations, today a number of private operators have started services that range from the extreme sport of heli skiing to joyrides over heritage sites. A report

he buzzword doing the rounds in tourism circles is chopper tours. Hitherto, hopping around in helicopters was limited to the jet-set. Not anymore. Today, tourists — both foreign and domestic — want to visit destinations that remain relatively untouched or try out something new like watching the Himalayan ranges from a

different perspective or even visit a religious place in a short time. It is for these reasons that heli-tourism is becoming popular. The opportunities in the sector led Bell Helicopters to expect a rise in chopper sales in the Indian market, according to a report from Reuters, some time ago. Bell, the report said, could tap the potential for’copters in heli tourism, emergency medical services,

news coverage, fire-fighting and law enforcement. “An emerging middle class wants to see scenic sites,” the Bell official was quoted. While heli-tourism is still not as popular as it should be, choppers for religious tourism have been making their mark for quite a while. The journey to Badrinath, Kedarnath, Katra-Vaishno adrenaline rush: Passengers rushing to take a chopper ride in Trivandrum by Air Tours of Kerala

Hareesh Jayakumar

Cruising Heights May 2013

Focus on ‘Copters

Devi and Amarnath was not too long ago difficult and time-consuming. Now, it has been made easier; thanks to the helicopter services. Taking a cue from these services, many religious destinations are now on the radar of chopper providers: Puttaparathi, Tirupathi, Shirdi, Guruvayoor in the south and Deoghar in the East. Reports from Ranchi indicate that Jharkhand’s Civil Aviation department has sent out a proposal that will help old and infirm pilgrims reach Shiva’s temple at Baidyanath Dham fast

around the proposed chopper services would make a difference. Although the final call on the proposal is still awaited, the State Government has started negotiating with different aircraft operators to engage two Russian-made 24-seater Mi-172 choppers for the purpose. The State’s Civil Aviation glam quotient Secretary, Sajal Chakravarty, personified: (L-R) Actor Pooja Bose and said that the Jharkhand Mimi Chakraborty at Government would neither buy the launch of the joythe aircraft nor would it hire the ride services by Prayag services of chopper operators. Aviation in Kolkata What the government would do would be to facilitate the services by allowing the operators to use the aerodromes at Sultanganj and Deoghar, Chakravarty said. He said that he had held talks with his counterpart in Bihar about the proposal and the Governments of the two States had agreed to allow airlines operators to use the respective aerodromes. and at an affordable price. The government In addition, the aviation-savvy Chakravarty will be introducing a 24-seater chopper that has also decided to use the Mela and would ferry pilgrims from Sultanganj in provide joyrides to devotees at Deoghar. Bihar to Baidhyanath Dham in Jharkhand The Civil Aviation department has at least during the ensuing Shravni Mela that takes three under-utilised gliders that would place every year in July-August. be operative during the season to provide About 50 lakh devotees bring in holy visitors with an aerial view of the temple water from the Ganges at Sultanganj to city. Incidentally, Chakravarty has proposed offer to Lord Shiva at Baidyanath Dham to develop similar chopper services for during the spring season every year. The pilgrims to Parasnath in Giridih district of 100-km long journey — usually done on the State too. foot — takes quite a while but this time During the recent Kumbh Mela at

“Our approach is different” Eurocopter has a lot more to offer to the booming Indian heli-tourism industry, said Benoit Terral, Customer Operational Marketing Manager at Eurocopter On helicopters for tourism

We have two main competitors in the market. First, we would see how many variants these two have to offer? Both of them do not have more than six variants. Eurocopter Benoit Terral can offer upto 12 variants of choppers for tourism. We have enough models for various segments and we tune helicopters as per the requirement of the country. Second, our helicopters range from

1.50 tonnes to 11 tonnes to match the requirements of the country and our helicopters are more advanced and cheaper compared to the range of other two manufacturers. Before offering the products we ask the customers about the intended purpose and then we suggest the appropriate helicopters. If we take the case of EC 130 (light, single engine, wide-body helicopter); it is a perfect example in today’s world. One of the biggest tour operators (Blue Hawaiian, in Hawaii) who was using choppers (from another manufacturer) said he was not happy with the performance that was Cruising Heights May 2013

resulting in the loss of revenue. He then mentioned his requirement and the need for return on investment. By doing so, our customer becomes our partners. In a sense most of our customers are our designers who shape and design our basic fundamentals. In the initial design stage, the customer can ask for what he or she desires. In 1997 we asked one of the tour operators, Grand Canyon, what they wanted and they replied that they wanted a single engine helicopter because it was costeffective and if possible with more seats (because profitability was directly linked

Focus on ‘Copters Allahabad — this time around it was a special occasion since it was the Maha Kumbh that occurs once in 144 years — helicopter services were in great demand. A travel operator started a Delhi-AllahabadDelhi service that allowed visitors to get a glimpse of the teeming humanity. The package — up, above the costing around `1.05 lakh — skies: Foreign countries like US, Auspicked up visitors from Delhi tralia have dedicated for an hour-and-a-half flight to services to promote Allahabad, took them around heli-tourism the Mela site and got them to take a holy dip before flying back to Delhi. Pilgrimages apart, heli-tourism is finding more takers. Recently, West Bengal Chief Minister Mamata Banerjee signed a MoU with Pawan Hans Helicopters to avail services of their sea-planes and helicopters to boost its tourism in the state. Following her was private operator Prayag Aviation, Starting from the Behala Flying a business unit of the Prayag Club or the Dum Dum Airport, Group. With an investment of Helicharter services will cost `100 crore, Prayag Aviation tourism approximately `90000 an has decided to offer high is finding more hour. Commenting on net worth individuals, takers... Prayag the launch, Avik Bagchi, corporates and other Managing Director, institutions charter Aviation offers Prayag Group said chopper services across chopper services that the introduction of locations in Bengal. across chopper services was the The company kickstarted Bengal “need of the hour”. There its operations with a new are also plans to expand the six-seater Bell 407 helicopter.

to the number of seats). Finally EC 130 model (with the same base from AS 350 called A Star) was developed based on the inputs from our customers. A number of helicopters that we have sold to the tour operators justify the development. We really look for “what is the need and the purpose”. Our approach is different from our competitors: one concentrates on military use and the other on corporate clients. What is a tour operator looking for? Number of seats and single engine with proper safety and that is where EC 130 comes in the picture. Our ’copters are customised and we have already sold 450 EC 130 B4 worldwide. Let’s take a look at AS 350 which need inspections after every 12 years and we ask the customer well in advance what they would like to do. If they opt for inspection and if the inspection is successful they can operate for another 12 years. During the inspection process, we ask several questions and the major concern

was vibration. As you know, flying at 110 knots there will be vibration and it is not good so we introduced the “active antivibration control system”. This is usually put on large helicopters and we installed it on EC 130. Then the operators wanted better air-conditioning and better performance so we introduced better engine (that was used in AS 350 B3 which has almost 1,000 HP). We have developed EC 130 T2 — an upgraded version of the earlier model of EC 130 — and have already sold more than 100 helicopters. EC 130 is the only example in heli-tourism where manufacturer asks the end-user what and how the helicopter should be. In heli-tourism you require good visibility and the tourists should be able to clearly see the ground below and operator should also be able add more revenue to his kitty. For fliers, who may be flying for the first time, the heli-ride ought to be a good experience. EC 130 is successful because we answer the market (operators) and take care of Cruising Heights May 2013

charter services to North Bengal and North East along with tourist and religious destinations like Digha, Chandrakona, Mandarmoni, Sunderban, Tarapith, Mayapur, Joyrambati and Kamarpukur. Prayag Aviation also has plans to extend its services to North Bengal through joy rides for Himalaya Darshan. For the people of Kolkata, the company has plans to launch joy rides. The services have become quite popular in a short time. As Bagchi pointed out, “Post our launch of corporate services

their concerns. I would like to clarify that heli-tourism is not meant for transportation. You fly around where tourists are able to see the beautiful countryside, beaches, landscapes, etc. for 15-20 minutes and return to the base. Another important aspect in heli-tourism is that the pilot should also be a guide, providing a running commentary about landmarks over which copter would be flying. This improves the flying experience of tourists. According to reports, Kerala gets around one million tourists, of which 90 per cent are domestic tourists and the rest are overseas tourists and I am sure we will have lot of opportunities in heli-tourism in Kerala. Heli-tourism in India, however, would not be easy because of too many rules and regulations and would deter prospective operators. This is what I have perceived from my talks with Rotary Wings of India. We are prepared for any challenges that lie ahead.

Focus on ‘Copters H

Prospects and challenges of heli-tourism

elicopters have generally been perceived as means of transport for the armed forces, political leaders and corporate honchos in the country. The trend however, is witnessing a gradual change and helicopters are now being used for leisure and religious tourism. Though heli-tourism in the country is in its infancy, its growth in the coming years is inevitable. The country’s diverse culture and geographic spread coupled with its rich flora, fauna and wildlife, makes it one of the top heli-tourism destinations in the world. The use of choppers is not only convenient but also saves time for travel to remote and far flung destinations like the North East region that have remained relatively untouched but have the potential to become new tourist destinations. All this has led to an increase in demand for civilian use by helicopters. The importance of the sector can be gauged from the fact that three national level seminars on helitourism have been held since 2008. The seminars emphasised the need for infrastructural facilities and promotion of the sector. Heli-tourism has not kicked off for a variety of reasons, the main being fiscal and regulatory bottlenecks. Tourism being a multi-sectoral activity, the government, as the nodal agency, will have to ensure inter-governmental linkages and coordination as well as play a pivotal role in promoting the sector. Basic infrastructural facilities

such as heliports/helipads with safety services in the initial stages will need to be provided at major travel circuits and destinations that have been identified for development through the efforts of central and state governments along with other stake holders. The second important aspect will be to reduce the cost of operations in order to make heli-tourism viable both for the operator and the consumer. This would involve exemption of the present heavy customs duty on import of helicopters and spare parts for private operators or alternatively permit import of pre-owned helicopters in good and serviceable condition to reduce cost of acquisition. Another major step towards reducing operational costs would be by making helitourism attractive and affordable for tourists by providing fiscal incentives in terms of lowering taxes on aviation turbine fuel and waiving off landing / parking charges as well as radio navigation facility charges initially. Significantly, most of the suggestions are with the concerned government agencies. To resolve the bottlenecks and give an impetus to the growth of the heli-tourism sector, there is an urgent need to establish a task force under the Ministry of Civil Aviation with representation from all stakeholders. — Lt Gen B S Pawar (The author was former Director General, Army Aviation Corps.)

promoting faith: Helicopters lined-up at a base at Baltal in Jammu and Kashmir during the Amarnath yatra

in December 2012; we have seen a surge in demand from this region. In fact, our first helicopter has completed over 100 hours of flying in three months which is a feat.” In the south too, heli-tourism recently received a boost when Air Tours of Kerala launched its tourism package. CEO Shoby T. Paul mentioned that “the first package includes a 15-minute ride over Mulanthuruthy, Aroor, Willingdon Island, Fort Kochi, Bolgatty Palace, Vallarpadam, Vypeen, Chittoor and Tripunithura and would cost `5,800 per tourist.” He has also lined up a second package that includes Tripunithura, Vaikom, Kumarakom, Pathiramanal, Mararikulam Beach, Kumbalangi and Cherthala for `8,800 per person. “The advantage of helicopter tourism is that it is highly flexible in terms of height. You can go up to 1,000 metres and also brush past the sea water. Paragliding and parasailing and other larger packages will be introduced later,” he said. Other than visiting religious destinations and sight-seeing, helicopters are being used for sports, particularly heliskiing. The chopper is used to take skiers to the top of a mountain from where they ski down to the plains. It is an extreme sport and the Himalayan ranges offer immense opportunities for heli-skiing. Manali in Himachal Pradesh is the ideal location for heli-skiers. Helicopters fly up to peaks as high as 6,500 meters (about 21,000 feet). On the east, in Sikkim, choppers provide a bouquet of flights to suit tourists’ interests: from viewing the natural scenery to spiritual enrichment. Among the flights available are a 20-minute flight of Gangtok and a 90-minute trip to Kanchenjunga to see the world's third highest peak at 8,600 meters (more than 28,000 feet). In addition to these tourism initiatives, helicopter services have started in Kashmir for tourists to visit unexplored areas. Among these are eight destinations. The tourism authorities have worked out 10-day trips to visit these areas where one can trek, fish or raft. Heli-tourism would get a boost if the government pushes through the decisions taken around two years ago. At that time, the Civil Aviation Ministry worked on a policy to usher in chopper operations in a big way by 2020. The policy dictated the creation of infrastructure to cater to 5,000-odd from the 300-odd helicopters at present. A task force was created to give its recommendations on infrastructural requirements and regulatory mechanism needed to spur expansion of helicopter services in the country, according to official sources. n With inputs from D P Sharan in Kolkata and Ranchi

Cruising Heights May 2013

Focus on ‘Copters imparting knowledge: Sikorsky’s Seahawk chopper and (inset) Sikorsky Blackhawk chopper of Brazil

Sikorsky

Sikorsky to teach rotorcraft tech

ikorsky has announced that it has signed a Letter of Interest (LoI) with the Brazilian Instituto Tecnológico de Aeronáutica (ITA) to establish a Rotorcraft Innovation Team. Rated as one of the top universities in Brazil in engineering and related fields, ITA is a federal government institution dedicated to provide high level education and research in the fields of Aerospace, Science and Technology. The collaboration will accelerate the development of rotorcraft technologists in Brazil, whose military already flies both Black Hawk and Seahawk helicopters, and will increase student and faculty exposure to rotorcraft. Sikorsky will provide mentoring to assist with these classes at the gradu-

ate and undergraduate levels. It also will support the procurement of relevant hardware and software to enable rotorcraft research. As part of the collaboration, ITA will augment its already robust aerospace engineering programme to provide curriculum related to rotorcraft, including experienced staff to instruct this new material, and provide faculty and student support for research related to rotorcraft. “We are very pleased to collaborate with Brazil’s Instituto Tecnológico de Aeronáutica and to assist in the training of the next generation of aerospace leaders. As Sikorsky celebrates its 90th anniversary of aviation innovation,

Bell focuses on safety in India B

Bell

ell Helicopter has announced that it will concentrate on regional safety symposium for rotorcraft pilots and technicians from across India. It is a new initiative from Bell Helicopter in which the safety symposium will educate maintainers and operators on key safety practices and applications to implement into their daily operations for a safer flight as Bell Helicopter's participation in the International Helicopter Safety Team's mission is to achieve an 80 per cent reduction in the international civil helicopter accidents by 2016. Bell Helicopter has a very aggressive

internal safety campaign founded on the basis of best-in-class practices. Initiated at the customers’ request, the safety symposium will be led by experienced instructors from the Bell Helicopter Training Academy. The session will cover a variety of topics, including human factors, environmental factors and procedural c o m p l a c e n c y. Through interactive discussions, case studies and presentations, participants will impart greater awareness of the personal and cultural changes necessary to adopt safety modules. More than 80 participants from 25 organisations within India will attend the session. Cruising Heights May 2013

we are excited to further encourage and enable rotorcraft innovation growth with a recognized academic leader in Brazil,” said Sikorsky President Mick Maurer.

Sikorsky’s new simulators S ikorsky Aircraft and Flight Safety International have jointly announced the development of eight Level-D full flight simulators for Sikorsky’s S-92, S-76 and S-70i helicopter platforms. Currently in production, the simulators will expand access to OEM approved comprehensive aircraft training to Sikorsky customers in the USA, Brazil, Norway and Asia. Sikorsky Aerospace Services (SAS), the company’s aftermarket business which implements and manages all training programmes for Sikorsky’s military and commercial platforms.

Sikorsky

Focus on ‘Copters

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higher version: Upgraded Chinook of US Army

Upgraded Chinook good for passengers and cargo

odern helicopters could be significantly faster and more manoeuvrable — if aerodynamics did not impose limitations on them. Researchers at the German Aerospace Centre (Deutsches Zentrum für Luft-und Raumfahrt; DLR) in Göttingen have now discovered and flight-tested a way to increase manoeuvrability using an idea they got from observing humpback whales. Experiments conducted in the wind tunnel were promising, enabling a test flight using the DLR Bo 105 research helicopter in Braunschweig, as part of the DLR SIMCOS (Advanced Simulation and Control of Dynamic Stall) project. “The pilots have already noticed a difference in the behaviour of the rotor blades,” says Richter. The main objective of the initial test flight was to demonstrate the safety of this new technique.

hinooks are a valuable tool for commanders because they can move personnel and supplies to outlying bases without using risky convoys along boobytrapped roads. However, when missions change, as they in a combat zone, crews must spend two hours bolting or unbolting the rollers needed to easily load palletised cargo into a CH-47. All that will change with the latest upgrade. The upgrade will incorporate the $450,000 Cargo On/Off Loading System (COOLS) — a set of rollers that can be pushed into the aircraft's floor in a matter of minutes, allowing crew to reconfigure in flight if the mission gets changed. The new system can handle three large aluminum

New fly-by-light system for choppers T

seats for a safety pilot, the test pilot and the flight test engineer. A comprehensive equipment line-up with sensors and systems for onboard data recording and processing is used to record the data from the flight tests. The

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he fly-by-light control system is a groundbreaking new system where the flight management computer and the actuators for rotor blade control are transferred optically via fibre optic cables instead of electrically. The research was carried on EC 135 chopper. The advantages which are provided with electrical data transfer are the high transmission bandwidth, which results in high reliability and low weight. The flyby-light flight control system consists of a quadruple redundant computer and is designed in such a way that the stringent safety criteria of the European aviation authorities are met in full. FHS will be the first helicopter in the world with this kind of flight control system. The cockpit layout provides

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Making choppers more manoeuvrable

Cruising Heights May 2013

Air Force pallets or several smaller pallets — the same load that the old system could handle. The Chinook upgradation will also include an under-floor ballistic protection system to shield passengers or troops from small-arms fire. It will replace awkward bulletproof blankets being used on some aircraft at present. The US Army will also fit the Chinooks with monitors that will alert mechanics to vibration issues or when parts need to be replaced — something that will lead to fewer breakdowns. Engineers are also designing a new rotor blade made with composite materials that allow for a more efficient shape that should increase the aircraft's lift capacity by a ton or so.

following modifications will provide latest technology to the on-board computer system that enables simulation of the flight characteristics of other — real (existing) or virtual — aircraft. In this way, it provides important information for the operational assessment of a helicopresearching ahead: ter at an early stage of DLR research being its development. These carried on EC135 capabilities are also used in basic flight research. Conversion of the ACT/FHS was planned and implemented with help of Eurocopter and DLR, a German helicopter research company.

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RR Trent XWB engine certified fter 3,100 hours of engine testing, the Rolls-Royce Trent XWB engine has completed icing tests in Canada, altitude and crosswind tests in the USA, endurance tests in Spain, flight tests in France and test bed performance trials in the UK and is ready to be installed on the first A350XW test aircraft. More than 1,200 Trent XWBs already been sold to 35 customers. The engine has got its certification (Type Certificate — confirming the engine is cleared to fly and can be placed on the A350 XWB) in less than three years from the first time it was switched on in a test bed in 2010. Since then, 11 full engines have been put through a thorough round of testing including extremes of performance, measured and examined and also

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Well Certified: Rolls-Royce Trent XWB engine has cleared its certification (Type Certificate) and is ready to be incorporated on the A350 XWB

in a few deliberately tested to destruction. The next major step forward in the engine’s journey is actually powering the A 350’s first test flight, scheduled to take place later this year. Two engines for that test flight have already been delivered to Airbus and are ready to be installed on the aircraft. The Trent XWB is an evolution of the Trent family’s continual development. Every new engine delivers a small but vital and incremental improvement that includes enhancing aerodynamics, enable operations at greater temperatures and pressures, and reduce the number of parts and overall weight of the engine. The development would allow the engine to travel ten million miles before it needs replacing.

vergreen Aviation Technologies (EGAT) in Taiwan has received the new Boeing 747-400 flying testbed for installation of data racks, instrumentation wiring and instrumentation equipment. According to Aviation Week: “Reports are that the plane is also likely to undergo ‘wing structural modifications’ during the second half of the year in readiness for its first test flights in 2014. GE, which continues to operate its original Pratt & Whitney JT9D-powered 747-100, acquired the exJapan Airlines -400 in December 2010 as part of preparations for tests of a new wave of engines including the CFM Leap-1, Passport business jet engine, GEnx derivatives and the forthcoming GE9X for the proposed 777X.” The newer 747 will provide greater capability than the 1960s-era legacy testbed in terms of a larger flight performance envelope, greater range and payload and

improved integrated systems. Powered by CF6-80C2 engines, the 747-400 will have excess performance and better capability, says GE. The current aircraft is barely able to achieve the 43,000 ft required for 787 engine test points for sustained periods, whereas this will comfortably be achieved with the newer version, it adds. Aside from greater range and endurance, up to 15 hours of flight time versus the 8 to 9 hour flights normally flown by the current 747, the newer aircraft is also configured with contemporary Arinc 429-based digital avionics. Meanwhile, GE’s stalwart ex-Pan Am operated 747-100 flying testbed, the oldest example of the 747 still flying, is busy wrapping up tests of the upgraded GEnx2B Performance Improvement Package (PIP) at Victorville, California.

Combining Parts: (Above) The test engine, Pratt & Whitney JT9D, and (below) the Boeing 747-100 testing aircraft used to perform GE engine tests

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GE’s new 747-400 flying testbed delivered

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PurePower for Embraer E-Jets

New Installation: (Above) Embraer E- Jets which will install (below) new PW1900G engines that offers significant reduction in fuel burn

mbraer has announced it has selected Pratt & Whitney’s PurePower Geared Turbofan engine as the exclusive power for its new second generation of the E-Jet aircraft family. Planned to enter service in 2018, the Embraer E-Jets will be equipped with PurePower PW1700G and PW1900G engines which will offer significant reduction in fuel burn, emissions, noise and operating costs compared to today’s aircraft. With this announcement, Embraer has become the fifth aircraft manufacturer to select Pratt & Whitney’s PurePower engine. Till date, Pratt & Whitney

has completed more than 4,200 hours and 12,400 cycles of full engine testing for the PurePower engine family and has demonstrated the benefits and reliability of the engine architecture. Pratt & Whitney’s PurePower engine uses an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core delivers double-digit improvements in fuel efficiency and environmental emissions as well as a 50 per cent reduction in noise.

Testing continues on NextGen GE90 engine E Aviation is assembling the high pressure compressor (HPC) rig that will be tested this summer as part of the GE9X engine study for Boeing’s 777X aircraft. The high pressure compressor rig will be a 90 per cent scale of the full size HPC on the next-generation GE90 engine and is part of the $200 million GE will spend in 2013 on technology maturation programmes for the engine. “In 2013, GE is focussed on maturing advanced technologies for the fan, combustor, high pressure turbine and HPC as well continuing development on new material, such as ceramic matrix composites (CMCs), for the GE9X engine,” said Bill Millhaem, General Manager of the GE90 Programme at GE Aviation, in a news release. “The test will demonstrate the operability and efficiency of the compressor and refine clearance and bleed models. Test results will be used to make further enhancements to the HPC design.” The HPC rig test will occur at a GE Oil & Gas facility in Massa, Italy in July. The HPC rig will include more than 1,000 pieces of instrumentation. The new HPC design will significantly increase thermal efficiency and contribute a two per cent improvement in the engine’s fuel burn. GE Aviation’s engine study, called the GE9X, for the 777X aircraft has been underway for several years. The engine will be in the 100,000 lbs. thrust class with a 10 per cent improvement in fuel burn over today’s GE90-115B. Key features include a 132” diametre composite fan case and fourth generation composite fan

blades; next-generation 27:1 pressure ratio high pressure compressor; a third generation TAPS (Twin Annular Pre-Swirl) combustor for greater efficiency and low emissions; and Ceramic Matrix Composite (CMC) material in the combustor and turbine. GE Aviation has been conducting tests on new materials for the engine during the last few years. The first full core test is scheduled for 2015. The GE9X will follow the highly successful GE90-115B engine that entered service in 2004. At 115,000 pounds of thrust, the GE90-115B engine includes such performance-enhancing features as threedimensional aerodynamic (3-D aero) compressor and wide-chord, swept composite fan blades for greater efficiency. More

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than 1,500 GE90-115B engines have been ordered by customers for their Boeing 777300 ERs, 777-200 LRs and 777 freighters. In 2011, the GE90 engine experienced its most successful year and accumulated airline and freighter operator commitments for 400 engines, surpassing the 250 engine commitments record from 2007. Snecma of France, Avio SpA of Italy and IHI Corporation of Japan are revenue-sharing participants in the GE90 programme.

under Test: GE Aviation is assembling the High Pressure Compressor (HPC) rig that will be tested on GE90-115B engines

Etihad signs ten-year deal

PLA’s engine gains momentum

tihad Airways has signed a US $125 million agreement for the financing of five GE90 and six RR Trent 500 engines which consists of parts for Etihad’s entire fleet of passenger and cargo aircraft. The deal expands on a similar 2011 agreement. This new sale and leaseback transaction will provide the airline with a long-term financing solution for many of its key component spares while mitigating residual value risk and providing competitive cost of ownership.

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Financial Agreement: Etihad Airways has signed a $125 million agreement for the financing of Rolls-Royce Trent 500 engines

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Jet engine testing in Winnipeg T

Indigenous Effort: The Y-20 Chinese transport aircraft of the Chinese People’s Liberation Army (PLA) which have China’s independently homedeveloped engines

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he GE Aviation Engine Testing, Research and Development Centre (TRDC) in Winnipeg, Manitoba recently celebrated first year into the service with the completion of upgradation that will allow the facility to accommodate year-round operations. The 122,000 square foot facility was initially designed to test and produce jet engines for cold weather and ice-testing, but the site has expanded to include allweather development and test cycles for the engines. The facility will be used to run tests for three engines: GE Honda HF120 and GEnx engines, including 118 hours of testing on the GEnx-1B. A rigorous test schedule is also planned for CFM’s LEAP engine, which will power the Airbus A320neo, the Boeing 737 MAX and China’s C919.

Ice Testing: The ice-testing of GEnx- 1B engines being carried out at GE facility at Winnipeg

Taiwan’s AIDC signs up with RR erospace Industrial Development Corp. (AIDC), the largest aircraft maker in Taiwan, has won a 107 million contract to manufacture parts and components for RollsRoyce airplane engines. In 2004, Rolls-Royce contracted AIDC to produce parts and components for the V2500 engine and in 2009 they became strategic partners and, more recently worked together on the development of RollsRoyce’s XWB engine for the Airbus 350 aircraft.

Signing Contracts: Aerospace Industrial Development Corp. (AIDC) has won a $107 million contract to manufacture parts and components for Rolls-Royce and Pratt&Wittney aircraft engines

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he Y-20 transport aircraft of the Air Force of the Chinese People’s Liberation Army (PLA) will be mounted with China’s independently-developed engines. The research and manufacture project is currently on the right track and Chinese engineers and technicians are expected to develop and manufacture a new generation of Taihang engines. Taihang engines are significant because they not only marks the transformation of Chinese aero-engine research and development from the turbojet engine to the turbofan engine, but also realizes the progress of Chinese aero-engines from medium thrust to high thrust. Taihang engines are the power units of Chinese military aircraft. The improved engines will be used to drive other major combat equipment of the Navy and the Air Force of the PLA. The aircraft engine programme has given support to China’s path of independent development of aero engines and to realise the third generation power unit for Chinese aircraft. The Taihang engine has a thrust-weight ratio of eight, which means it can generate the thrust power eight times its own weight, which is now at an advanced stage. Although, the engine still needs a lot of improvement when compared with the US F-119 engine which has a thrust-weight ratio of 10, the Taihang engine programme is moving ahead positively, according to the People’s Daily.

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New Samanta equipment for engine health check A

ircraft engine safety and reliability around the world is going to be enhanced by new tools which will use realtime in-flight Engine Health Monitoring (EHM). Snecma whose commercial engines are used in most civil commercial jets, is using fault detection and condition monitoring data analysis algorithms with validation enabled by a software tool from IDBS, a global provider of innovative software. At present the aircraft engines are monitored by a ground-based scheduled maintenance programme. A Snecma proprietary research platform, Samanta, which is shared among

all companies within the Safran group has come up with a new database capitalising operational data for test and validation purposes. Once a prototype of the software is fully developed, the code is sent for fault detection and condition monitoring applications in aircraft engines.

The software takes inputs from the engine of the aircraft, analyses behaviour, identifies abnormality and links datasets with the algorithm hence ensuring persistence of experiments. It improves information analysis by ensuring that validation scenarios and key performance experiments can be carried out in realtime. The software provides a collaborative environment that structures the workflow process to ensure algorithms are developed and tested in a timely, efficient manner and all experimentation are carried within a single, secure location.

PW PurePower ground test completed FAA approves T GEnx-1B upgrades

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Maiden Test: The PW1100G-JM engine, rated up to 33,000 pounds of thrust, is the first engine model to enter service on the A320neo

will next undergo flight testing on the company’s experimental 747 airplane at the Mirabel Aerospace Centre in Quebec, Canada. Two additional engines are under test as part of the company’s eight engine test programme. A fourth engine is in its final assembly stage and will initiate testing in the immediate future. “We are extremely pleased with our test progress to date,” said Bob Saia, Vice President, Commercial Development Programmes. “We now have over 4,500 hours of engine testing with our geared turbofan programme family. The engine testing is going extremely well. We have leveraged our product line design strategy, common architecture and scaling to drive early engine maturity. Our first engine demonstrated performance better than our pre-test forecast.” The PW1100G-JM engine, rated up to 33,000 pounds of thrust, is the first engine model to be certified and enter service on the A320neo. Pratt & Whitney has been selected by 13 customers totaling more than 1,400 firm orders. Entry into service will begin in late 2015. The engines use an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core deliver double-digit improvements in fuel efficiency, environmental emissions and noise. Cruising Heights May 2013

E’s latest upgrades for the GEnx1B engine on the Boeing 787, has been approved by the FAA.Approval of the performance improvement came as Boeing completed its first week of flight testing for the improved engine since conducting a check flight on 787 development aircraft ZA005.The latest modifica-

ge aviation

he first Pratt & Whitney PurePower PW1100G-JM engine for the Airbus A320neo family of aircraft successfully completed ground testing at the company’s West Palm Beach, Florida, test facility. The engine completed over 120 hours of testing, validating overall engine operation and fuel efficiency. The engine

RE-PROGRAMMING: The latest upgraded GEnx1B engines have been approved to be installed on Boeing 787s

tion will bring the performance of the engine up to the original GE-powered 787 fuel burn specification. The development of a series of upgrades began following the discovery that the baseline version was around 3 per cent less has now resulted in betterthan-expected fuel burn on initial aircraft, according to reports.

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Travel solutions for PSAs by Arzoo.com

cbsnews

“2020 will see a lot more automation” As airlines in Asia pioneer future technologies for providing super-efficient facilities for its proliferating customer base, the journeys of the future have a lot to offer for passengers in terms of personalised experience

sia is where the future of the aviation industry lies. With an increasing population that is central to market penetration and growth, airlines in this region are working towards introducing innovative technology in a way never before. Especially India, which handles 2.5 billion passengers and has over 87 airlines flying to and from the country, has a huge potential for exploiting technology to become an aviation force to reckon with. IndiGo, one of India’s most popular no-frills airline, has developed a system in which, in addition to booking flights, seats

and onboard meals, customers can instantly arrange hotel stays, care hire and activities at their destination. Further, it has developed an affordable holiday package, ‘Get Packing’, that offers end-to-end travel services from flight and hotel booking to airport transfers and conveyance to local areas of interest. Aditya Ghosh, IndiGo President, has often emphasised that IndiGo’s biggest obsession has been to prove that low-cost does not imply low quality. “IndiGo offers web-check in, Q-Busters and self-check-in Continued on Page 52

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nline travel portal Arzoo.com has introduced innumerable travel solutions for their Preferred Sales Agent (PSA), giving them a chance to pick up prizes for the travel business this summer till July 31. Arzoo.com is offering exciting awards from Mobiles to Swift Dzire on its B2B network. The PSA’s can avail these gifts by selling select Indian and International Holiday Packages for 10 to 250 passengers. The reward includes Tab/Netbook, Sony Vaio/iPad, Bajaj Pulsar/TV/Refrigerator/AC/Microwave, Royal Enfield Classic 500, Hyundai Eon and Swift Dzire. Amal Purandare, Head India Operations, Arzoo.com, said: “Since beginning, B2B modules have received a tremendous response both from India and abroad.”

INSIDE

interview David Brett, President, Amadeus Asia Pacific, says growth continues for Indian Travel market

'Find my suitcase' by US AIRWAYS A bag tracking app that allows you to keep an eye on checked luggage

AI eyes kingfisher check-in kiosks AI wants to acquire Kingfisher’s unused kiosks at Mumbai airport

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“Indian travellers generally rely heavily on travel agents” David Brett, President, Amadeus Asia Pacific, is an optimist and believes that his company anticipated strong growth this year as it expected the Indian travel industry to continue its robust growth, he told Cruising Heights. Excerpts from the interview: Amadeus has become the first Global Distribution System (GDS) provider to launch Electronic Miscellaneous Document (EMD) functionality with Finnair in India. You take on the development and how do you plan to take it further? EMD with Finnair is an example of how we constantly work to offer innovative solutions to our travel agency and airline partners to improve productivity at the counter

staff level, while helping them maximise revenue opportunities. We always respond to customer and partner requirements, so will continue to develop this and any other products more as required to suit their changing needs. Recently, Cleartrip selected Amadeus as its long-term technology partner. What would you like to say about that partnership?

Amadeus and Cleartrip announced a multiyear technology agreement which will see Amadeus becoming the primary technology provider to Cleartrip. Under the agreement, Amadeus will provide the company with fare search technologies and access to global travel content through the Amadeus system. Cleartrip will also implement Amadeus Master Pricer, a cutting-edge low fare search tool. We will support Cleartrip’s ongoing strategy to achieve sustainable competitive advantage by offering greater choice and convenience to their customers in India, and beyond. As the dominant global distribution system in the Indian travel industry, Amadeus is able to deliver the level of customised technology solutions necessary to support Cleartrip’s needs as one of the leading online travel agencies in India. Amadeus targets major customers in Asia Pacific with key regional appointments. How will this impact the growth in regional markets? It’s a critical part of a successful strategy. We’ve built up a globally unique combination of people, experience and technology from around the world over the last 25 years, and we combine this, with international talent exchange layered with local market expertise so that our customers can be assured of getting all the benefits of working with a global company with knowledge specific to their industry and geography through key appointments. For example, with our airline business we’re creating clusters of skills in particular cities to match customer projects. Would you be coming up with a recipe for tackling those who are still reticent about the virtual platform and feel the need for person-to-person interaction? As you may know, we’ve been in the industry for the last 25 years, and with that in mind, it’s only relatively recently that virtual platforms have become more commonplace so we’ll continue to service both

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parts of the markets as best suits our customers’ needs. The main focus is to ensure our customers get the best technology to make their lives easier, run and grow their business efficiently and provide excellent customer service, regardless of whether they’re virtual or person-to-person. In terms of travel and technology solutions for travel industry, which section of the market is most interesting presently in these difficult times — aviation, hotels…? I don’t think there’s any part of the industry that’s immune to these changing times, and correspondingly, I don’t think there’s any business that doesn’t want to grow, whether that’s through the sale of ancillary services or the use of mobile solutions to provide better customer service and reduce costs. These are an example of opportunities that exist across the board, whether it’s for travel agencies or airlines, so all of them would be the most realistic answer! What are the problem areas in the Asia Pacific region and particularly India? I wouldn’t highlight problem areas as such, more that there’s a combination of factors, the internet, changing consumer behaviours, intra-Asian travel, emerging markets, price sensitivity (particularly in India) that are creating huge change and opportunity for the travel industry. We will continue to work closely with our customers to really understand their business and to offer specially tailored services that will allow them to seize the opportunities that the growing travel industry presents. We often have long sale cycles which means we have to understand our customer needs today and 12 months or more into the future. We will always focus on the areas we see that create opportunities or challenges for our customers, airline or travel agency. These areas for us in India currently are online travel, air and increasingly non-air content; low-cost carriers; mobile solutions; long-term content relationships; education about the Altéa platform. Is Amadeus witnessing a rise in business and profits in India? Asia Pacific has been a growth engine for the world for the past decade and we estimate it will continue to remain so with strong growth markets in the region like China, India, Indonesia and the Philippines. India is poised to emerge as the third largest aviation market in the world by the end of this decade, according to Ministry of Civil Aviation. Given the strong market fundamentals, the civil aviation market is expected to register a Compound Annual

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Growth Rate (CAGR) of more than 16 per incorporated into the search calculation and cent during 2010-2013. results. The solution´s algorithm blends Additionally, according to a more reboth price and business intelligence data cent industry report by CAPA, domestic to showcase the flight options most-often capacity growth is expected to booked from people who searched grow at 7-8 per cent while incity pairs for the same date, or, ternational traffic growth is at the request of the travel We will always expected to grow at 8-10 agent, promotes a specific focus on the per cent in FY 2012offer that is popular or 13. Taking this into relevant to the specific areas we see that account, we anticipate search. It also integrates create opportunistrong growth next year live registration data to ties or challenges as we expect the Indian flag search results with for our customers, travel industry to con´relevance signals´, tinue its robust growth. such as popularity of a airline or travel This shows huge potential given route, number of acagency for tourism to India and our tive reservations on a speciflocal team works very hard to ic flight, remaining seats, when ensure travel agents, travel managers the price was last booked, etc. and travel management companies have the It’s worth pointing out that Amadeus latest tools available to meet the growing Featured Results is part of the Amadeus demand. Search Portfolio which includes a range of solutions that cover the trip lifecycle, from Amadeus recently previewed the patentinspiration (discovery and learning) tools pending Amadeus Featured Results soluthrough to shopping and booking. tion that instantly delivers the four most By helping travellers navigate an overrelevant bookable travel options available whelming amount of information and de— fastest, cheapest, most popular and crease their search time, we can help online sponsored. Tell us about it. travel agents increase customer satisfaction We’re very excited about Featured Results, and conversion rates. Amadeus´ strong especially as it won a highly commended investment and focus on the online travel award at PhoCusWright in December! segment coupled with our unique travel Amadeus Featured Results platform technology competency will enable us to significantly improves leisure travellers´ successfully continue to serve the evolving online purchasing experience by making needs of our customers into the future. travel search simpler and more relevant. Using breakthrough technology, Amadeus Coming to travel agents — has there been has combined both sophisticated flight an increase or decrease in the power of the search technology and travel business intravel agents in India. What does Amadeus telligence data to deliver to the traveller a feel about the changing face of business? more relevant set of search results at the Indian travellers generally rely heavily top of the display screen. In fact, Amadeus on travel agents — the main change is in is processing more data than ever before in whether they’re online or bricks and mororder to return the most relevant, cheapest, tar. Yes more people are going online, but fastest, sponsored and most popular bookthe massive rise of the middle-class comable travel options in a tenth of a second. prised mostly of first-time travellers means The Featured Results solution was there’s still a huge requirement for the condeveloped thanks to various important sultative and assisted sell. technology components, highlighting the That said, online / mobile is a huge opbehind the scenes innovation. The solution portunity for travel agents in India. Led by leverages Amadeus´ Massive Computation double-digit online travel market growth, Platform which allows the computation of APAC will remain the fastest-growing huge amounts of data into live caches that travel region globally through 2013, when secure instant search capabilities, whilst it will reach $357 billion — an astounding securing data accuracy. The platform 64 per cent increase over 2009, according processes, stores and serves in a neutral to PhoCusWright's Indian Online Travel manner the data for Featured Results web Traffic Report. India is to enjoy a five-year services. Amadeus´ business intelligence Compound Annual Growth Rate (CAGR) platform stores and analyses live and hisof 30.6 per cent for online travel sales for torical global search and reservation data, 2011-2016, according to an eMarketer rein order to factor in price volatility and itinport ‘BRIC Travel Markets in Transition: erary popularity. It also includes Amadeus´ Trends Influence Overall Ecommerce'. n instant search technology to scan live reservations and extract relevant data that can be — Nidhi Sharma Cruising Heights May 2013

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Continued from Page 49 kiosks for an easy and faster check-in. In addition, we also offer purchasable FAST Forward check in facilities which provides enhanced convenience,” he said. A number of other airlines from Asia that operate in India are progressing in the line of technology advancement for excellent air travel experience. Zaman Ahmad, Malaysia based low cost carrier AirAsia’s Group Head of Customer Experience and Technology said that more automation will be seen in airports in 2020. As soon as a passenger goes into an airport terminal, who he is and where he is flying to will be known. They can go on to drop their bags at the bag drop facility. When they get to the gate they will be carrying a pre-approved identity card or a loyalty card. It will all be possible with Near Field Communication that incidentally will also be used to speed up airport processes too.

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Similarly, Jazeera Airways has for the last two years been focussing on the introduction of new services and technologies to transform the way travellers book flights and check-in. Technology-wise, the airline started its self-check-in facilities last year at Kuwait International Airport. They were the first kiosks of their kind in Kuwait and these offered web-check-in through jazeeraairways.com for all the carrier’s routes. “Selfcheck-in numbers have been climbing, and today form 20 per cent of total checkins. At the airport, the check-in counters are open 24/7, allowing passengers to checkin and obtain their boarding passes 24 hours before departure, according to Ali Fairooz, Jazeera Airways’ Vice President of Ground Operations and Products. flydubai, another low-cost carrier, has been making its fares as accessible as

‘Find my suitcase’ by US Airways U

S Airways is the second major US carrier after Delta to offer a bag tracking app that allows you to keep an eye on your checked luggage, just like you would track a parcel, even while you’re in the air. When you check in a bag, US Airways scans it and provides a bag tag receipt which you can use to track your bag by logging onto the airline’s dedicated site: baggagetracker.usairways.com. The system updates

every time the bag is re-scanned, for example, when it comes on and off an aircraft. If you’re using the airline’s WiFi, you can also log in for free and check that your bag hasn’t been left behind at any time, such as when you’ve just made a quick connection. While tracking systems won’t stop your bag from going missing, it showed a willingness from airlines to be more transparent with the way they handle bags and speed up claims.

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possible by offering passengers a number of booking and payment channels. Topping it all, the carrier has one of the most technologically advanced In-Flight Entertainment systems in the world, according to Ghaith Al Ghaith, flydubai’s CEO. When launched in 2010, flydubai became the first airline to show movies in high definition. Since then, the carrier has introduced the highest number of Hollywood movies, and recently, working with DTI Solutions to be the first airline to offering daily updated digital newspapers. Singapore-based Tiger Airways too, has been delivering a customer experience that, according to Ho Yuen Sang, Managing Director is “fuss-free, positive and convenient”. Fliers who do not wish to queue up to board the aircraft can go ahead of others with the purchase of boardmefirstTM. In addition, there are facilities to pre-book meals with the tickets online, with tigerbitesTM. Recently, in partnership with Changi Airport, the carrier launched tigerconnectTM, that enabled fliers transiting at Changi Airport from having to clear immigration, collect their baggage and check-in a second time for their connecting flight. It also allowed customers to buy two connecting flights via a single booking from the network of more than 50 destinations in 13 Asia Pacific countries.

mBELT for baggage handling M

ercator’s newly-developed baggage tracking and management technology, mBELT, an innovative technology designed for better handling of baggage and alleviate the industry’s baggage pressure, was unveiled at this April’s Passenger Terminal Expo Geneva, Switzerland. Andrew Price, IATA’s head of baggage services, underlined that “our focus is on enabling a customer experience that is a hassle-free end-to-end journey. For baggage, that means returning it to the passenger without damage or delay. But improved technology and faster passenger processes can mean that baggage is literally left lugging behind in some airports. The IATA InBag programme is addressing both quality and speed by driving efficiency and enabling innovation in baggage handling. We are pleased to have the cooperation of many of our Strategic Partners.” Not just a reconciliation system, but an end to end tool, which gives high visibility and transparency of baggage movement.

Net Express

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JAL switches to SITA’s Don’t lose your way at Copenhagen Airport technology A J

apan Airlines (JAL), one of Japan’s two flag carriers, is reducing passenger queues and increasing its flexibility with SITA’s common-use passenger processing platform, AirportConnect Open. SITA delivered the new platform to seven Japanese airports as part of a five-year agreement. SITA is also providing Japan Airlines with fully-managed services and a total of 169 integrated common-use workstations across Fukuoka, Sendai, Niigata, Komatsu, Hiroshima, Nagasaki and Okinawa airports.

Keiichiro Sato, Vice President and Deputy Manager, JAL, said: “SITA’s AirportConnect provides us with a platform to manage our applications effectively across all seven airports. This will help us provide more consistent passenger processing and give us the flexibility to cope with peaks in passenger traffic. With SITA’s fully-managed services, we can also better manage our costs and budgets.” Ilya Gutlin, SITA President Asia-Pacific, said: “Airlines, airports and governments have increasingly complex requirements. They need to improve passenger processing, reduce congestion, and better manage passenger flows. We are collaborating with JAL to support all these needs.”

ground-breaking way-finding solution has been developed by Copenhagen Airport that allows passengers to visualise their journey through the airport on computers and smartphones. The tool displays 360 degree photo panoramas of every passenger area in the airport and its grounds, allowing travellers to get an overview of their trip through the terminal from their PC at home, or on the move at the airport on their mobile, where the free CPH Airport app will then position them by means of the hundreds of WiFi access points in the ter-

minals. Passengers can select their starting point and where they want to get to from a drop down menu of airport locations. A metre-by-metre visualisation of their route is enabled. According to Copenhagen Airport, it is the first airport in the world to enhance the passenger experience with such a service. “I expect that other airports will soon follow suit and develop something like our wayfinding tool, as it will greatly benefit many passengers,” said Karen Bender, e-Commerce and Marketing Director.

AI eyes Kingfisher kiosks I

t is a case of one’s loss, another’s gain. National carrier Air India is negotiating for taking over of six of the 18 self checkin kiosks at Mumbai’s domestic airport lying unused due to the grounding of Vijay Malya’s Kingfisher airline in October last year. Air India and Kingfisher had been using the 36 self check-in kiosks in Terminal A. Mumbai airport said that other airlines are also looking at a few of them.

Finnair introduces ‘social seating’ F

innair, as part of its plans for ‘social seating’, is providing passengers the option to see who else is on board their flight and pick a seatmate using Facebook. The airline has introduced a new service that allows passengers to link their public Facebook profile with the seat map so they can see who else has checked in, where others are seated and view their social media profiles. After

choosing a seat using the seat map, passengers also have the option of sharing their flight details with friends on Facebook. Also, passengers can opt out of the service at any time. “Many people like telling their

Cruising Heights May 2013

friends on Facebook where they are travelling. We wanted to make this a little bit easier and also add some value in the check-in process for those who want to see who they are travelling with,” said Aku Varamäki, social media manager for Finnair. The airline says it plans to integrate other social networks into the seat selection process in future.

A i r C a rg o & Lo g i s t i c s

Cruising heights

www.cruisingheights.in | May2013

Summertime and freighting is easy

With summer temperatures going high, air cargo stakeholders are ready for transport of perishables

Wanted: Superior logistics infra With GDP forecast to grow to $3.6 billion by 2020, the movement of goods would require an improved logistics set up

Focus on India

AF-KLM Martinair Cargo has experienced good growth in India during the last years and is positive about growth opportunities in the future.

Last in/first out

Perishables to get a big boost

n a move that will benefit exporters of perishables — particularly agricultural produce — the Revenue Department has sent out a message to the Customs department to clear such cargo fast. It has also said that ‘routine’ checks should be done only in special cases. The note circulated by the Central Board of Excise and Customs (CBEC) to the Customs department said: “...Export consignments of perishable agricultural

goods should not be examined in a routine manner and should be examined only in cases of specific intelligence...” Even when examination is done — in case of specific intelligence — it has to be carried out with the prior permission of the concerned Assistant Commissioner/Deputy Commissioner of Customs. The CBEC has also made it clear that in cases of contravention of Customs laws, “necessary legal action shall be taken but, in this

case too, it shall be ensured that the perishable cargo is dealt with in such a manner...So that it is not unduly held up in ports/airports, etc”. The move comes on the heels of suggestions from a Parliamentary Standing Committee on Commerce. The committee was of the view that to promote export of agriculture and processed food products, the Customs authorities should be made aware to give priority clearance to perishable agro products. It may be mentioned that in 2011-12, the exports of fruits and vegetables was worth `4,801 crore while flower exports totaled `365.32 crore. While Bangladesh, UAE, Pakistan, Malaysia, Sri Lanka, UK, Saudi Arabia and Nepal have been the major destinations for Indian fruits and vegetables, the major importing countries for flowers are the US, Germany, the Netherlands, the UK, Japan, Canada and UAE.

Better times for Asian carriers

reliminary traffic figures for the month of February released recently by the Association of Asia Pacific Airlines (AAPA) showed a sharp fall in demand for air cargo, primarily due to the late timing of the Chinese New Year holiday period this year. International air cargo demand, measured in Freight Tonne Kilometre terms (FTK), fell by 13.2 per cent compared to the same month last year, due to factory closures during the Chinese New Year festive period. Offered freight capacity declined by 8.8 per cent, whilst the average international air cargo load factor was down 3.2 percentage points to 63.2 per cent for the month. Commenting on the results, Andrew Herdman, AAPA Director General said, “The results for the first two months of the year were distorted by the difference in timing of the Chinese New Year

holidays. Taken together, for the first two months of the year we saw a 4.6 per cent increase in international passenger numbers, but a 4.3 per cent decline in international air cargo demand, marking a continuation of the same general trends we saw over the past year.” Herdman also added, “Looking ahead, the ongoing recovery in the global economy should continue to drive further growth in passenger demand. At the same time, we remain hopeful that air freight demand will begin to pick up sometime this year, although surplus freighter capacity means that competitive pressures on rates are likely to persist.” Meanwhile, according to a report released recently by the IATA, 23 Asia-Pacific airlines made $1.73 billion compared with $590 million in the same period of 2011.

“Over the past years we have witnessed a modal shift from the traditional traffic flow along with transportation modes… But as long as oil prices remain at the level where they are now, we do not expect significant changes.”



Pradeep Kumar

Emirates SkyCargo VP, Cargo Revenue Optimisation & Systems

Cruising Heights May 2013

TRENDS The air cargo community in the country is in a quandary of sorts. Reason: the news about the state-of-the-art international airport at Nagpur appearing in WikiLeaks. The report mentions that the decade-old dream of making Nagpur’s airport the country’s cargo hub may never come true. Ever since it was conceived, the Nagpur project to develop the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN), the hype that it would attract international flights because of its geographically central location has grown. It was believed that the 250-odd transcontinental flights that overfly the city of Nagpur every day, would land and unload cargo for distribution around the country when the airport started functioning. However, according to Wikileaks, a team of US officials who visited the city in December 2006 had expressed doubts about the plans succeeding. The US officials were given the information by the Maharashtra Airport Development Company (MADC), the government agency responsible for developing MIHAN. The report mentioned, “It remains to be seen how much of the MADC vision will become realty in medium or long term. The integrated cargo hub should attract freight traffic as the economy grows. The international passenger airport, however, may remain a pipe dream. MADC could not give us a plausible reason why foreign airlines and their passengers already flying over Indian territory non-stop would stop in Nagpur.”

cargo

Europe opens up to India With its long history of operations in India, Franco-Dutch airline Air France-KLM has, in fact, increased cargo capacity. Tirthankar Ghosh found out the carrier’s plans

or AF-KLM/Martinair Cargo in India, 2012 was not an easy year and, even the beginning of this year, has been tough. Reports indicated that the cargo division experienced big losses in Asia-Pacific in February 2013, with traffic going down 14.6 per cent, year-on-year. This has, apparently, forced the division to lower capacity to the region by 12.7 per cent, year-on-year. In the latest figures released in April 2013, the Franco-Dutch carrier reported a rise in passenger traffic for March 2013. However, it also cargo traffic went down 12.1 per cent in March; capacity was down 6.6 per cent and load factor fell 4.1 points to 65.1 per cent. The company said its cargo business reflected lacklustre international trade, disruption due to snowy conditions as well as industrial action in Paris. Rene Peerboom, Director, AF-KLM/ Martinair Cargo, India, Nepal and Bhutan, however, is optimistic. He said that 2013 will not be too different. The most common outlook was “a relative flat compared to 2012 with some upswing in the second half of the year”. It is not that the carrier was the only one to suffer. “For all other major airlines,” said Peerboom, “2012 was not easy. Worldwide, the economy did not help us. We restricted our freighter capacity worldwide…” (see interview on Page 58)

The dampened situation notwithstanding, Indian forwarders and exporters saw Schiphol putting a lot of emphasis on pharma. Was that sector responsible for helping AF-KLM Cargo keep its head up in these difficult times? Peerboom mentioned that AF-KLM/ Martinair Cargo was one of the main pharmaceutical products’ carriers in the world and was thereby well-suited for expected growth in the Indian pharma business — both from the product and capacity perspective. He went on to point out that in view of the required conditions it was important that all participants in the supply chain were geared for product requirements and growth. Not only Schiphol but “Charles de Gaulle’s focus on pharmaceutical products helps us since customers express their preference for routing via these hubs”. Since there had been no reduction in capacity to and from India, it was obvious that AF-KLM Cargo had a lot of hopes from the growth of India. Pharma apart, exports from India had seen ‘robust growth’ and that was the prime reason for AF-KLM/Martinair Cargo to increase capacity in India. “We believe being in a market”, said Peerboom, “for the long term.” The Indian market, like the Chinese one, had an important and historic position for the carrier. “In India, Air France started flying freighters into India decades ago. As

aF-klm in action: Loading in progress in a KLM freighter

Cruising Heights May 2013

for KLM it has been flying its combis into India for decades as well.” In the last few years, the carrier has used the combination of the group — Air France, KLM and Martinair — to build a significant and steady freighter product in India. Carriers the world over have been troubled by the competition that has been built up by the Middle Eastern carriers, but that has not deterred AF-KLM cargo — at least in this part of the world. Peerboom agreed that it is “clear that the Middle East and South East Asia carriers play a significant role in the Indian market. It is a role which has grown over the last few years,” he said, but he was also quick to point out that “at the same time, the Indian export has been robust — apart from some soft patches”. As for competition, “there is room for multiple carriers in this market serving different segments. AF-KLM-Martinair Cargo,” said Peerboom, “has experienced good growth in India during the last years and we are positive about further growth opportunities in the years to come.” The carrier would only want to add frequencies “if we are confident that we can sustain them over a longer period. In the past years, we have built a reputation for our consistent freighter network. An example of that is our thrice a week Chennai freighter that has sustained over the years independent of fluctuating market circumstances. We are confident that that creates customer value,” he said. The constant complaint about India has been infrastructure and the lack of it. However, over the years, a lot of work has been done. Was it difficult to work in India, we asked, now that he had spent well over four years in Delhi? Peerboom agreed that in the last few years, “we have indeed seen improvement in the airport infrastructure in Delhi and Mumbai, which was very much needed”. At the same time, he said, “we will need to further build airport infrastructure at these airports and other airports in India. One of the aspects to look into is the infrastructure needed for the cargo to reach the airport in time. The challenge in logistics chains is that we need to grow infrastructure across the chain at a coordinated pace.” n

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“We grew our freighter capacity in India”

HEADY OPERATIONS: (Above) Ground handler loading ULDs into the freighter; (Left) a small car being carried away to a freighter

Rene Peerboom, Director, AF-KLM/Martinair Cargo, India, Nepal and Bhutan, on the year that has gone by and the importance of pharma for the carrier

How was 2012 for AF-KLM/Martinair cargo?

Like all other major airlines 2012 was not easy. Worldwide economy did not help us. We have restricted our freighter capacity worldwide (although not in India). The most common outlook for 2013 is a relative flat compared to 2012 with some upswing in the second half of the year.

In such a situation, we see Schiphol putting a lot of emphasis on pharma. How has that sector shaped up?

AF-KLM/Martinair Cargo is one of the main pharmaceutical products carriers in the world and is thereby well suited for expected growth in the Indian pharma business: both from product and capacity perspective. In view of the required conditioning, it is important that all participants in the supply chain are geared up for the product requirements and growth. Schiphol’s as well as Charles de Gaulle’s focus on pharmaceutical products helps us since

customers express their preference for routing via these hubs.

Surely AF-KLM has an advantage. I ask this because the news is that KLM started a second freighter flight from Mumbai, thanks largely to the pharma market?

I would say it has. Surely, we started the Mumbai-Amsterdam freighter service that, to a large extent, was to entertain the pharma business. Schiphol held a conference (to boost the pharma sector in Mumbai) around one year ago. They (the Schiphol airport management) were the ones who recognised that from the airport’s perspective. We recognised that as one of the carriers from India that the pharmaceutical business surrounding Mumbai, Hyderabad… that whole belt including even Bengaluru has seen more than double-digit growth in the pharmaceutical business. We are, as a carrier, very interested in that for two reasons; one is that it (the pharma business) can be developed and second, we have one of the Cruising Heights May 2013

— probably, or may be — best established pharma carrier in world which helps us to position ourselves.

Fine, it has grown. But has it helped the overall growth of air cargo?

I would say that a lot of the pharma products clearly helped Indian exports. That goal is independent of the cargo development in your accommodation. I would say that overall if you look at Indian exports, the growth has been robust compared to exports from other countries. One of the strong points for India is that exports have been robust. That is why we increased capacity.

For the moment, how many freighters are you operating?

At the moment, we have got three to Chennai, one to Delhi. We have got two Mumbai. On top of that, we have got an incoming Europe-Mumbai flight that lands in Mumbai on its way to Asia.

for the future or looking at the pharmaceutical business in a logic sense or are you looking at all the commodities which are going in the Indian market as well. It is not only pharma that we are looking at… I am monitoring what will be a good market to enter into.

“Our position is that we only want to add frequencies if we are confident that we can sustain them over a longer period.” Rene Peerboom but that, of course, also depends on fleet availability and route profitability. I see foresee opportunities in this area. Our position is that we only want to add frequencies if we are confident that we can sustain them over a longer period. In the past years, we have built a reputation for our consistent freighter network. An example of that is our three times per week MAA (Chennai) freighter that has sustained over the years — independent of the fluctuating market circumstances. We are confident that that creates customer value.

Is Air France-KLM or Martinair trying to develop new connections in India?

How advantageous will India’s growth picture be for you?

Air France-KLM has an important and historic position in both markets. In India, Air France started flying freighters into India decades ago, whilst KLM has been flying its combis into India for decades as well. In the last years, we have used the combination of the group — Air France, KLM and Martinair — to build a significant and steady freighter product in India. The importance of the Indian market is characterised by the fact that whilst we have restricted our freighter capacity worldwide, we did simultaneously grow our freighter capacity in India.

How do you view the India market?

After some years of growing freighter frequencies, we have been grown our capacity last year by increasing the Indian allocations on existing freighter rotations. We are constantly monitoring where we can add frequencies or potentially add new cities,

Yes… we are always investigating. In fact, if you look at what we have been doing for the last four years. We have been growing our capacity bit by bit and as I said, we have been doing that because we do not come in for short term operations. We only come in for the longer term operations. If you look at Chennai, AF-KLM/Martinair can be one of the most stable carriers in Chennai, having a stable three days a week product. We have bellies (in passenger carriers) which are, of course, combined with the cargo — in that sequence. Although in the freighter business, we are looking at stepby-step growth in our freighter capacity in India and we do that in a way that we want to make sure that we can stay for the long term. So we started with Chennai, then at some point of time, added Delhi and then added Mumbai — in that sequence. The next step we should be further increase frequency. We have also thought of increasing allocations that we have on those flights. We are also looking at what will be the new cities (we could connect to) in the future. We are looking at all the commodities in the Indian market. Hope you do not want Cruising Heights May 2013

A lot of work has been done to improve the infrastructure in India. Do you feel that we still need to go a long way? In the last years, we have indeed seen improvement in the airport infrastructure in Delhi and Mumbai, which was very much needed. At the same time I think that we will need to further build airport infrastructure at these airports and other airports in India. One of the aspects to look into is the infrastructure needed for cargo to reach the airport in time as well. The challenge in (sustaining) logistics chains is that we need to grow infrastructure across the chain at a coordinated pace. The overall logistic chain processes that include airport, airlines, forwarders and shippers is another field of attention. Aligning and improving those is not only the most cost-effective way, but is also needed to shorten the throughput time for air shipments. The situation today in Delhi is much better than it was four years ago but I think there is still room for improvement. The development that we are seeing: a perishable centre is being built in Mumbai which is a pharmaceutical market and so a lot of capability is needed and the airport is one of the biggest airports in India. In Delhi, the capacity that is being added will help. Bengaluru is in shape. Hyderabad, from that perspective, we find it good as well. Chennai — there are still some constraints.

Let’s concentrate on pharmaceuticals…

For pharmaceuticals, I am feeling quite comfortable with the CPC in Mumbai, although it will hit its capacity somewhere down the line as well. If you look at Delhi, in fact, both the cargo terminals are being further developed by CSC and Celebi.

How do you view the competition from Middle Eastern carriers?

It is clear that the Middle Eastern and South East Asian carriers play a significant role in the Indian market. It is a role which has grown over the last years. At the same time, the Indian export has been robust apart from some soft patches. So, there is room for multiple carriers in this market serving different segments. Air France-KLM-Martinair Cargo has experienced good growth in India during the last years and we are positive about further growth opportunities in years to come. n

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Summertime blues

The searing heat of summer can play havoc with perishables. Air cargo stakeholders – in the major international airports – are ready to tackle the heat. A report

s India steps into summer — and this time around the projections are that temperatures will go really high — air cargo stakeholders are preparing themselves for the transport of perishables. Over the last year, the volume of perishable goods has risen considerably. And, with the world looking at pharmaceuticals from India, airports too are gearing up to enhance and provide facilities for the transport of such goods. To begin with, Indian pharma companies send out around 50,000 tonnes from the airports at Mumbai, Delhi and Hyderabad. These exports will grow by more than 20 per cent this year, according to Indian Ratings, largely led by exports to the US “which presents significant opportunities for the next two years for generics, due to patent cliffs and recent changes in healthcare policies”. In addition there will also be a “rise in demand for generics in developed markets” that will be led by patent expiries and an expansion of generics usage due to efforts taken to control healthcare costs by governments. During 2013-2015, opportunities on account of patent expiries will amount to around $125 billion. Indian players with robust product portfolio, filings and necessary manufacturing infrastructure are well placed to capitalise on this upcoming opportunity. While exact figures of perishable

exports — fruits, vegetables, meat, etc — are not available, those in the industry point out that the volumes stands at around 70,000 tonnes per annum, sent out from Mumbai, Cochin and Chennai. The airports at Delhi and Mumbai also handle meat exports — totaling around 30,000 tonnes per annum — to the Gulf and other Asian countries. Flowers totalling around 25,000 tonnes per annum are also part of perishable portfolio and mainly go out from the airports at Bengaluru and Mumbai. According to Radharamanan Panicker, CEO, Cargo Service Center India, that handles one of the two cargo terminals at Delhi airport, perishables’ tonnage is expected to grow primarily due to measures adopted by the export promotion councils to enhance infrastructure. Freight forwarders in Delhi gave the example of mango exports to the USA. Last year, for example, the exports to the US rose by around 40 per cent. Although the figure was only 130+ tonnes, exporters hope the figure will go up this year — around 200 tonnes — thanks to the irradiation process that has now become mandatory for fruit exports to the US and Europe. Panicker also mentioned that the infrastructure for temperature-sensitive products have improved over the years. While the privately operated airports at Hyderabad, Mumbai, Bengaluru and Delhi have systems in place for perishables, 125

airports — all of them run by the government-controlled Airports Authority of India (AAI) — are still gearing up. According to AAI, “geographical and technical support, coupled with availability of skilled manpower, provides an opportunity for India to be a major cargo transshipment centre”. The two major airports under it — Chennai and Kolkata — that have recently opened new international and domestic terminals, have also brought about a drastic change in cargo infrastructure development. Improvement of cargo facilities was part of the modernisation plans of AAI. In addition, the AAI also launched a Cargo Potential Study for airports in Tier-II and Tier-III cities. Once these are completed and evaluated, work will start and the country will see an all-round development of facilities not only for perishable cargo but also for general cargo. One of the major impediments, according to experts like Panicker, is the lack of a skilled and knowledgeable workforce who can handle and understand perishable cargo handling not only at the airport terminals but also at the forwarders’ level. Products that need to be kept at a certain temperature cannot be brought to the terminals in open trucks and this becomes all the more important during summer. There is little that the airport terminal can do if the temperature is not maintained during transportation. n preparing ground: A outside view of the cargo terminal building at Hyderabad Airport

Cruising Heights May 2013

Tuna from the skies

Vishakhapatnam is now connected to the world and the perishable business — especially marine and pharma products — is looking up. A report

he skies are opening up — literally — and the southern port city of Vishakapatnam (Vizag) as it is well-known will be one of the biggest beneficiaries. The opening of the skies follows a landmark decision taken by the military and civil authorities recently when it was decided to implement the Flexible Use of Airspace (FUA). At the moment, the military controls close to twothirds of the air space with the rest free for civil operations. But as aviation has grown, there has been plenty of give-and-take, albeit with some reluctance on the part of the military authorities. This institutional arrangement is a real step forward to free airspace for a comprehensive use by all parties concerned. Though the FUA will take some time to be implemented, at Vizag, the Indian Navy which controls the airport, recently announced that it would allow 24-hour operations for civil carriers on three days a week. The airport’s civil operations are limited in a time frame that spans from 6 am to 11 pm. This poses an obstacle for international and cargo operations. The news has opened doors for international operators. While the city has flights to Singapore and Dubai, others like Mihin Lanka from Sri Lanka have expressed their desire to start flights from the city. According to airport sources, queries from Air Arabia and Fly Dubai had also been received. Passenger traffic apart, the start of the 24-hour operation has energised air cargo stakeholders. At a recent rountable organised by the Vizagapatam Chamber of Commerce and Industry (VCCI) in association with the Confederation of Indian Industry (CII) and the Air Travellers’ Association, local trade and industry sources pointed out that the Airports Authority of India (AAI incidentally manages the civil operations at the airport), the Indian Navy and Government departments like the Drug Controllers and Customs would have to become proactive to facilitate exports from the airport. International connectivity has, meanwhile, thrown up opportunities for fish exports. Tuna from the port city has found takers in Japan and Thailand but the lack

hunting season: Fisherman carry their Tuna catch at Vizag

of international connectivity has hampered season. According to the association, if exports. In fact, when the Singapore Silk tuna could reach international destinaAir flight recently carried the first contion by the fifth day or the sixth day after signment of 100 kg of yellowfin tuna for its catch, it would be of good quality. For Japan, fish exporters were ecstatic. No lonthat, however, the airport authorities have ger would those engaged in the tuna trade geared up to complete the integrated cargo have to send their catches to Chennai or handling complex in time for the tuna peak Kochi by road. To top it all, the catches season. In the meantime, some temporary now would bring in 100 per cent hike in measures have been taken to handle export revenues. cargo from the airport. The tuna fishing season starts The plan is to modify the old terfrom October and ends in minal building at the airport to March. The peak season is cater to perishable exports. The tuna the three months: DecemThree cold storages have fishing season ber to February. During been planned and the the six months, each estimates have been sent starts from October trawler on an average to the AAI for approval. and ends in March. can bring in 60 tonnes Backing the move for The peak season is of tuna. While Kochi better cargo facilities is the three months: and Chennai paid a D Purandeswari, Memmere `120-130 ($2.50) ber of Parliament from December to per kg of 'A' grade tuna, Visakhapatnam, and the February the same fish could fetch up Minister of State for Comto `500 ($10) per kg. merce and Industry. She has In fact, the local branch of the promised the air cargo stakeholders Association of Indian Fishery Industries from the city that she would release funds (AIFI) has chalked out plans to send out from her department for the construction of tuna to Singapore and Japan in the next the integrated cargo complex. n Cruising Heights May 2013

cargo

Wanted: Long-term vision

To boost air cargo, the country would have to go in for initiatives that would be pro-active and not reactive, according to a report from KPMG

“T

he transformation of India’s logistics landscape wants a clear, long-term and sustainable vision encompassing initiatives that are pro-active rather than reactive to leverage India’s economic potential.” The views — expressed in a recent study by KPMG, Logistics game changers: Transforming India’s logistics industry — are not new for the country and heard at almost every air cargo/logistics meet in the country. The present KPMG report, however, is different. Instead of pointing out the shortcomings of the country’s logistics sector, KPMG picked up the initiatives taken by the aviation sector as well as ports, railways and roads. The report also went on to mention the changes in the way the country will move, store and deliver in the coming years. The report stated that since air cargo served as a vital link between domestic and international markets, its contribution needed to be adequately and appropriately focussed upon, to ensure that India’s growing international and domestic trade by air is facilitated, integrated and expanded. The study forecasts that “the emergence of new cargo hubs and the growing ecosystem of service providers to facilitate efficient air cargo services will drive demand and related investments in the air cargo segment”. The report agreed that the need for proper cargo handling and storage infrastructure at airports was inadequate. At the same time, it has emphasised that the requirements of air cargo traffic had not been given due importance. Hence, there was an urgent need to concentrate on developing infrastructure related to “effective cargo handling” that would include satellite freight cities with multi-modal transport, cargo terminals, cold storage, automatic storage and retrieval systems, and the mechanised transportation of cargo. In addition, the study pointed out shortand medium-term initiatives were required to facilitate India’s emergence as an international cargo hub. The report pointed out: “Inadequate cargo handling and storage infrastructure at airports across India has been a longstanding challenge. Historically,

India’s airports have been primarily developed to cater to passenger traffic; thus, the requirement of air cargo traffic has not been given significant importance to date. Infrastructure related to effective cargo handling — including satellite freight cities with multi-modal transport, cargo terminals, cold storage, automatic storage and retrieval systems, and the mechanised transportation of cargo — needs attention not only at metro airports but across the country.” The KPMG report also said that “a comparison of air cargo infrastructure at Indian airports with global practices highlights the prevailing lack of focus on air cargo infrastructure”. Most terminals did not have separate facilities, except cold rooms. To top it all, dedicated perishable handling facilities that catered to supply chain requirements and investment in cold chain infrastructure (trucks and warehouses) to handle agricultural, pharma and other perishable commodities was inadequate. The way out was to provide cargo terminal operators separate licence-handling areas for transshipment handling and suitable waiting areas for trucks. There was no fixed model, and cargo handlers were dependent on the decisions of individual airport operators. Other much needed infrastructural changes pointed out by the report were the development of Air Freight Stations (AFS); establishment of an Air Cargo Cruising Heights May 2013

Promotion Board (ACPB) that could facilitate organised growth in the sector by driving policies and the planned development of air cargo hubs in the country; expansion of freighter fleet; ensuring 24x7 Customs operations; professional training programmes for air cargo; and, lastly, flow of information between airports, airlines and operators. The report also added that increased spending in airport infrastructure through various airport projects was expected to improve air cargo infrastructure across the country. The investment in airport infrastructure had grown substantially over the last three Five-Year plans, with `361.4 billion of investment set aside in the Eleventh Plan (2007–12), reflecting a rise of 424 per cent over investment of `68.9 billion made during the Tenth Plan (2002–07). The Twelfth Five-Year Plan (2012–17) has outlined investments worth `675 billion, an increase of 86 per cent over the Eleventh Plan allocation. Further, the percentage contribution of private investments has multiplied 2.2 times, from 34.4 per cent (`23.7 billion) during the Tenth Plan to 74.1 per cent (`500 billion) during the Twelfth Plan. While these initiatives could take a while to bear fruit, KPMG has forecast that the air cargo sector will continue to demonstrate high growth and stabilise around a GDP multiple of 1.5, roughly a growth of 10-11 per cent. Trade between India and the Asia-Pacific region and the relocation of trade epicentres to China, Southeast Asia and Africa would open up new opportunities for the air cargo sector in India. Incidentally, IATA chief Tony Tyler, who was recently in Delhi, emphasised that the lack of infrastructure was hampering the growth of the aviation sector. He presented an agenda for India that highlighted improving infrastructure and reducing costs. He advised that the “solutions must be coordinated across all ministries and levels of government”. That is why he pointed out in his speech, he had asked for India to formulate a national aviation policy that would facilitate growth. Air cargo stakeholders wonder if anyone is listening? n

cargo jottings Blue Dart’s Dhingra bags coveted award

top honour: (L-R) M V Nair, Chairman, CIBIL; Yogesh Dhingra, COO and Finance Director, Blue Dart Express and Anish Shah, President-CEO, GE Capital

Yogesh Dhingra, Chief Operating Officer and Finance Director, Blue Dart Express recently was awarded the ‘CFO 100 Roll of Honour 2013’. Dhingra won this

award in the category for ‘Winning Edge’ in Raising Capital/Fund Management — Revenues above `1000 crore. The CFO 100 Roll of Honour award has been conferred

upon Yogesh for the third time in a row. Receiving the award Yogesh Dhingra said, “It was a great honour and privilege to receive the ‘CFO 100 Roll Of Honour’ for the third time in a row. Blue Dart has always focussed on acquiring cost efficiency measures and endeavours to maintain the overall financial discipline. We believe in ensuring that service quality through our highly engaged passionate people, remains of the highest order. I would like to thank our customers, employees, shareholders, partners and all other stakeholders for their commitment and support.”

‘44 per cent cargo growth’

Kale bags Lusaka airport project

Tiruchi Airport recently took a giant leap when it registered 44 per cent growth in cargo exports during 2012-13. During March, the cargo terminal also recorded a new high by handling 395 tonnes of international cargo against the previous high of 313 tonnes handled in January early this year. “The continued growth positions Tiruchi International Airport as one of the leading cargo terminals among the non-metro airports under the control of the Airports Authority of India in the country,” said S Dharmaraj, Airport Director, Tiruchi Airport.

NAC2000 has opted for Kale Logistics’ Airport Ground Handling Management system, GALAXY, for automation of its activities at Lusaka Airport, Zambia. With this selection, NAC2000 is now poised to move from its manual operations to a globally connected web-based cargo management system which will help it better serve its customers and communicate with all its external stakeholders. Commenting on the occasion Jonathan Lewis, Managing Director, NAC2000 Corporation Limited said, “We chose Kale’s GALAXY for automating our operations as it holds the experience of working with many leading airports across the world. Our operations are completely manual and GALAXY being a proven solution is a perfect fit for our scale of operations. We believe that a webbased solution like GALAXY will help us realise multiple benefits like lowered operational costs, complete operational visibility, and greater accountability with lesser manual intervention and more important is the ability to exchange EDI messages with airlines.”

Lufthansa Cargo registers huge profit

Karl Ulrich Garnadt

With an operating profit of 104 million Euros, Lufthansa Cargo AG has underlined its leading role in the global air freight industry. Chairman and CEO Karl Ulrich Garnadt presented healthy results for the 2012 business year in Frankfurt and noted the significant progress made by the cargo carrier with its “Lufthansa Cargo 2020” future programme. The innovative thrust of the airline will be seen when it takes delivery of two brand-new Boeing 777 freighters in autumn. The cargo carrier is anticipating a rise in profits in 2013. Lufthansa Cargo remained in the profit zone again in 2012. “The results show that we can defend our outstanding position in the international air freight industry even in difficult conditions,” emphasised Chairman and CEO Karl Ulrich Garnadt, presenting the annual results in Frankfurt. During the year, Lufthansa Cargo returned an operating result of 104 million Euros.

FedEx unveils Ship Site programme FedEx Express recently unveiled the launch of its Ship Site programme in India — a business building bond offering increased access points to experience an even faster, easier and more convenient way to send packets. The first alliance in the programme is with the Bengaluru-based printing chain Printo. Under the terms of the agreement, customers will be given access to worldclass FedEx services at 12 high-street Printo

locations in Bengaluru. The launch of this Ship Site programme with Printo comes as FedEx looks to increase its retail footprint in India. “With the launch of our Ship Site programme we are even better placed to satisfy the growing needs of our retail customers. We aim to provide more convenience and accessibility,” said Rakesh Shalia, Managing india beckons: Rakesh Shalia, MD Marketing, India, Director, Marketing, FedEx Express Middle East, Indian Subcontinent and Africa. Africa-Middle East and Manish Sharma CEO, Printo Cruising Heights May 2013

Sit up and

See and touch

This is specifically for easy movement on the seat display menu. Choosing leisure and information on the seat display menu can be done through a mixture of moves and hand motions. Thales's Eye Tracking and Hand Gesture Control technologies has produced a MMI (ManMachine Interface) whereby the field-of-view between the passengersâ&#x20AC;&#x2122; eyes and hands is all within the same optical plane of the seat display, which removes the need to invariably look down at a remote controller to make a selection.

Plane cold food

Easy does it

BigLavC, created by HAW Hamburg, will be probably the first aircraft toilet which is customised to the special needs of weighty passengers. The new slanting posture of the toilet scores over conservative aircraft lavatories through increased comfort and space, particularly for obese passengers and wheelchair users.

North or south

This two-sided seat lets passengers to orient their seating in consonance with the size of the group. The fundamental proprietary device is planned to take into account the direction of the seat to be upturned quickly and with negligible effort. This product by Zodiac Seats allows the crew to move the backrest from the back of the seat to the front while at the same time overriding the incline of both the backrest and seatHeights cushion. March 2013 Cruising

Boeing's Insulated Galley Cart (IGC) lets airliners stack cold food at the catering facility, both in transit to the aircraft and for the entire length of the flight. The IGC removes the need for onboard cooling systems. This change in managing refrigerated food storage severely cuts down aircraft load and airline operating costs, and betters aircraft functioning.

take notice

Aviation is no stranger to innovations. Novel in-flight ideas took centrestage at a recent ceremony where they were highlighted and applauded. Cruising Heights takes a sneak peek at some of the innovations — from in-flight entertainment systems to interior design and even storage of food — showcased at the annual Crystal Cabin Awards.

Live and ready

Row 44's Inflight WiFi Live Television allows passengers watch live TV channels inflight on their tablets, smartphones, laptops and also on other WiFi gadgets. At the time of the product’s rollout, Row 44 and client Southwest Airlines offered passengers a choice of various live channels.

Movies in HD

The Nice HD system, a product from Lufthansa Technik, lets in personal HD video at seat locations. It also presents a number of media ports (USB, Apple, HDMI), a multifunctional Nice HD media centre unit that includes a media server, Bluray player, an Audio/Video on Demand (AVoD) server, both wired and wireless, and a map server. All cabin functions can be instinctively mastered through a scroll-wheel with a matching lively user interface.

Designed for colour

ColourCurve sets new benchmarks pertaining to interior design in aircraft. It is the first non-electrical system that can be moulded to comply any shape and adjusted to any interior design. Conceived by Lufthansa Technik, ColourCurve comprises only two portions instead of the six of the former system. One strip fits everybody, thus clients do not need different strips for galleys and walkways. ColourCurve achieves up to 8-kgs weight reduction over the lifecycle of the aircraft.

Glass PCU

Coach or business? Specially planned for the short-haul market, Checkerboard easily transforms configurations between economy and business class, with the latter having extra size and an extra eight inches in legroom providing airlines the flexibleness to align cabin configuration for each flight to correspond to the unevenness in demand. Allowing carriers to maximise income, the device has been designed by Paperclip Design company.

Developed and created by Dornier Technologie Systems, this brandnew generation of the Passenger Control Unit family consists of a capacitive touch control board which provides each seat a advanced and sophisticated look. Liberally customisable, the PCU has an identical and exclusive lighting by using a particular light-guidance technology.

Concept Cabin

The cabin offers lots more than the usual due to its name: Concept Cabin. Cabins have been made by intelligent, flexible materials. Endowed with Hybrid Organic Light Emitting Diodes (OLED) layers – convert light into power and small units and sensors reap energy by themselves through light and pulsation. The sidewall boards are extended with many 3D displays that render a great picture of the environs. Cruising Heights March 2013

globetrotting n  Ignorance is bliss Believe it or not, a bullet landed an airhostess in jail. A Turkish Airlines airhostess was detained for allegedly carrying a gift given by her boyfriend — a bullet — in the plane. A live cartridge of a 9 mm pistol was discovered in her luggage when she was passing through the security check at the Indira Gandhi Airport in Delhi to board the Istanbul-bound flight. “She had come from Turkey. It is not clear how she cleared the security check there. Maybe, carrying a bullet is legal in Turkey, but here it is an offence,” a senior police officer said. Later on as a result, the crew member's passport was held and was she not

n  Not on the job allowed to leave the country till the case was over.

n  Fun and games

n  Charity begins at home

It turned out quite a romantic flight for a Brisbane radio competition winner. The die-hard romantic proposed to his girlfriend on a Brisbane-Melbourne flight. The romantic was part of the 200-odd passengers on the flight that experienced a gig from three comedians who were on board promoting the Melbourne Comedy Festival. The trio regaled the plane passengers with their 30 minute show. After they finished, our romantic friend and one of six winners of the radio competition on board, Queenslander Luke Smith surprised the comedians and passengers by getting down on one knee pulling a ring out of a bag and proposing to his 22-year-old partner. His girlfriend said yes to his offer, then hugged and kissed her fiance as the passengers broke into applause for the couple. Luke Smith had won tickets for the flight and was travelling with his girlfriend Kayley Painter.

In a bizarre incident, a lunatic passenger exploited his mother’s old Air France employee credentials to hoodwink his way into the cockpit of a US Airways flight. The passenger identified as Philippe Jeannard was found sitting in the cockpit while claiming to be a 747 pilot for Air France. “He identified himself as a pilot and started to sit in the jump seat. But he immediately had a problem getting

Cruising Heights May 2013

A Transportation Security Administration (TSA) agent injured six fellow workers at New York's JFK airport by unknowingly firing off his pepper spray. TSA agent Chris Yves Dabel discovered the pepper spray container at the Terminal 2 security checkpoint mistakenly believing it as a laser pointer. Dabel while fondling with it accidently fired it at five of his fellow TSA agents landing them at the hospital. As a result, security checks at the airport were stopped for at least 15 minutes owing to the incident.

strapped in and it was obvious to the real pilots that he couldn’t be a pilot,” said Philadelphia Inspector Joseph Sullivan. "He didn't know what he was doing." Suspecting his credentials as a pilot, the police were notified. The captain then told him to leave the cockpit area, and Jeannard was taken off the aircraft. Later on, he was charged with tampering with records, criminal trespass, pretending to be a privately employed person and presenting false identification to law enforcement.

n  Caring flight attendants In a kind gesture, three flight attendants from JetBlue did what was expected of them. Rick and Liam, the gay couple onboard revealed to two of the flight's three attendants that they were travelling from California to New York to wed. The flight attendants Virginia, Nichola and Dan presented the couple with a beautifully gift wrapped blue basket of JetBlue refreshments and a congratulations card with handwritten notes from each of them.

n 

“I wondered, Wow, she offered to do that but is that just a nice gesture or is she really going to follow up on that?” Rick said. His partner Liam said, "Not every flight has a Virginia on it so we really felt like we understood the significance of her actions and really appreciated it. We felt like it was a little bit of fate that we met her and just something so special."

Flight of fancy?

Strange things happen on board. Hendrix, an English Springer Spaniel ended up taking a serious diversion on his way from New Jersey to Phoenix in the US and ended up in Ireland after being put on the wrong flight. Later on, United Airlines apologised and offered a full refund. United Airlines spokeswoman Megan McCarthy said, “The six-year-old dog was travelling in cargo last week when the mix-up happened. When the error was realised, the airline took immediate

steps to get Hendrix back to his owner. We regret that… Hendrix was boarded on the wrong aircraft.” While the dog’s owner, Meredith Grant said, “I felt like anyone would feel if they found out that their child is being sent to Ireland, if the child was on the wrong flight. He was exhausted. When we got home, he laid down and I had to keep poking him to make sure he was still breathing. He’s been acting a little weird, like he’ll just sit and cry.’’

n  Monkey business

n  A backseat driver

Famous singer Justin Bieber was caught on the wrong foot again when his pet monkey was allegedly confiscated at a German airport after he tried to take it on a flight. The capuchin monkey, named Mally was his 19th birthday gift. “Justin Bieber brought his monkey to Germany, but had no official paperwork with him,” Munich Airport's spokesman Thomas Meister said. "We were forced to confiscate the animal." Earlier, Justin was travelling with the monkey from Poland back to his home in Los Angeles when he made a stop in the German city of Munich to board his private jet. But he was stopped by Customs officials from taking his little friend back to US because he did not have the correct paperwork to be travelling with the animal. “The animal required a certificate of health and other authorisations. You cannot just land with a wild animal and bring it into the country if the flight has not originated from another EU country and you don't have the proper paperwork,” emphasised Meister.

In a rather strange happening onboard, an unruly passenger went berserk expressing threats to cause destruction. Darren Edward Cosby with his unruly behaviour caused an Air Transat flight to divert from Vancouver to Iqaluit. Cosby was later on found intoxicated. Police said that passengers aboard the flight assisted the flight attendants in restraining him, while the captain of the flight made an emergency landing in Iqaluit. John Hawkins, Iqaluit Airport Manager said, “This is the first time in 10 years a rowdy passenger has been kicked off a flight in Iqaluit.” Meanwhile, Cosby was convicted and charged for his violent behaviour and fined $2,000 and ordered to pay the airline almost $14,000 in restitution before being pleading guilty to a charge of unruly behaviour under the Aeronautics Act.

Cruising Heights May 2013

snippets

domestic Airlines

Fewer flights during summer This summer will see seven domestic airlines operating almost 11 per cent fewer flights. Latest data released by the DGCA show that the domestic airlines will operate 11,541 flights every week, down from close to 13,000 weekly flights operated during the last summer schedule. Globally, the summer schedule runs from the last week of March till the last week of October. Airline officials claimed that the decline in the number of flights being operated during the summer schedule was mainly due to Kingfisher Airlines halting operations. Although the airlines will be operating a lesser number of flights, some of them have added

new services on certain routes. Air India (Domestic) has added a new service linking Bengaluru with Tirupati three times a week. IndiGo is operating a fifth daily flight linking Chennai and Mumbai, apart from operating a second daily flight on the Mumbai-Bhubaneshwar-Mumbai and a second flight on the Mumbai-VadodaraMumbai sectors. Indigo will operate the maximum number of flights per week at 2,821, followed by Jet at 2,802, and SpiceJet at 2,467.

vijay seth

SpiceJet is Sunrisers’ official carrier SpiceJet will be the official carrier for Sunrisers Hyderabad, the newest franchisee in the Indian Premier League (IPL) circuit. Sunrisers is owned by the Chennai-based Sun TV Network Ltd, the flagship company of the Sun Group, which also counts SpiceJet Ltd among

its several investments. “SpiceJet is proud to be associated with Sunrisers, as it provides us a great platform to promote our brand in a country where cricket enjoys almost a cult like following,” SpiceJet’s Chief Executive Officer Neil Mills said. The airline is running a contest on air, Twitter and Facebook, which is around sending the winning mantra for the SpiceJet Sunrisers Hyderabad. The winning contestants will be given a chance to be present at the toss with the skippers and the match referee during all matches of Sunrisers, apart from opportunities to win SpiceJet/Sunrisers branded merchandise.

Deccan stops Gujarat services Nine months after Deccan Charters launched services in Gujarat by offering daily charter flights between major cities of Ahmedabad, Surat, Jamnagar, Bhavnagar and Kandla, the company has decided to call off its flight services in Gujarat from May 1. Though the company was the first to begin the intra-state flights in Gujarat, the company is finding it difficult to break even due to high air fare that ranges between `4,000 and `6,000, as well as lesser demand from passengers. The company was to suspend all operations in March but following guidelines from the Directorate General of Civil Aviation (DGCA), the company had to continue operating till April 30. The two Cessna Grand Caravan 208 B, turboprop aircraft (nine seater) of Deccan Charters have not taken off from city airport since the middle of March. Both the aircraft continue to remain grounded at the airport. Based on DGCA's guidelines the operation will officially be suspended from May 1, sources added.

Cruising Heights May 2013

Sea port at Punnamada Lake

IndiGo winner at NDTV awards

Punnamada Lake, a major tourist destination in the state of Kerela, is all geared for the Kerala Tourism Infrastructure Limited (KTIL) to establish a sea port in the area and steps are being taken in the direction. KITL Managing Director S Anilkumar said that the service of the seaplane will begin by May end. The construction of the floating jetty has been progressing in Punnamada and four other destinations in the state. A 1000 metre runway is needed for an amphibian aircraft landing in the lake. “The state government has sanctioned `12 crore for the construction of jetties and other basic infrastructure,” he said. The KTIL had called for tender, for operating seaplane service. About five companies evinced interest in the service.

Low Cost Carrier IndiGo bagged the NDTV Profit Business Leadership award in the aviation category for the fourth year in a row. The award comes as a testimony to IndiGo’s continued success in the Indian skies, and the consistent strategy that has defined its unmatched performance, year on year. Aditya Ghosh, President, IndiGo received the award from the Chief Guest, Montek Singh Ahluwalia, Deputy Chairman,

planelandings.com

An amphibious aircraft landing on sea

Cooch Behar-Kolkata service halted With the West Bengal Government not being able to live up to its promise of subsidising operations for six months, the Kolkata-Cooch Behar flight service is unlikely to resume any time soon. Operated by a non-scheduled carrier, North East Shuttles Pvt Ltd, the initiative was taken after the State’s promise to subsidise eight seats of an 18-seater Dornier 228 aircraft, for the first six months, in case of non-availability of passengers. However, the flight service was stopped after just 12 flights in one-and-a-half months. There were only two flights with full occupancy during the 45 days of service. Available estimates suggest that the State Government is liable to pay a little more than `3.6 lakh (at an average ticket price of `4,500) as subsidy for the flights without full occupancy.

setting standards: Aditya Ghosh, President, IndiGo, receiving the award from Montek Singh Ahluwalia, Deputy Chairman, Planning Commission

Planning Commission. Speaking on the occasion, Ghosh said, “This award holds special significance as it is a recognition of our renowned service as acknowledged by the esteemed jury and the industry.” Accept the award on behalf of each and every member of team IndiGo, “whose passion and commitment are the key reasons for making us who we are”, Ghosh said that IndiGo was proud to have redefined Indian aviation. “But we have a long way to go and we will continue to work hard to achieve even higher standards of excellence.”

GoAir flies to Srinagar direct GoAir is now operating its direct flights from Mumbai to Srinagar. It is also exploring possibilities to operate night flights from several state capitals to Srinagar to handle the heavy tourist flow to the valley and other destinations of Jammu and Kashmir. State Tourism Minister, Ghulam Ahmad Mir, hailed the steps of the company and hoped that it would soon start its night flights to Srinagar from different cities for the convenience of tourists. He said that the State Government has already taken up the matter for operation of night flights from different cities to

Srinagar with the Centre and other State Governments to facilitate the tourists planning to visit tourist destinations of the State. “We have received positive response and government hopes that night flights to Srinagar would be started soon” he said.

Cruising Heights May 2013

snippets

international airlines

Emirates sponsors tennis

Emirates’ Dubai holiday package

agent.traveloclick.com

An attractive holiday package from Chennai to Dubai has been launched by Emirates Airline. The package, which does not include visa fees, will start at `30,535 per person on twin sharing basis. The price includes three nights, accommodation with buffet breakfast, meet and assist on arrival at Dubai International Airport, transfers airport/hotel/airport, including airport departure taxes, service taxes, room taxes and service charges. Valid for travel till August 5, the offer applies to all new bookings.

BA direct service to Hyderabad British Airways has commenced its sixth direct service to Hyderabad from London that will operate on all days of the week except Monday. Offering convenient connections to the rest of the UK, Europe and over 200 destinations in North America, British Airways will provide a choice of three cabins, Club World business class, World Traveller plus premium economy and World Traveller economy to its customers from Hyderabad. Christopher Fordyce, Regional Commercial Manager, British Airways, South Asia, said “India is a strategic market for us and the increase in services from Hyderabad reiterates our commitment to the market. We have been gaining a steady market share in India and this development marks a 20 per cent increase in our general capacity from Hyderabad. Customers will also have the flexibility to come home over the weekend to be with their friends and families.” Customers flying from Hyderabad will travel through British Airways’ Terminal 5 at the Heathrow airport. Flies to Colombo after 17 years: The arrival of flight BA2043 at

Emirates airlines has expanded its tennis portfolio in Europe with a five-year agreement with Roland Garros, where the airline has been appointed as the official partner of the Roland Garros tournament, starting with the 2013 edition from May 21 to June 9, 2013. The announcement was made by Tim Clark, President Emirates Airline and Jean Gachassin, President of the French Federation of Tennis, during a recent press conference the spirit of sports: The French Federaheld in Roland Garros tion of Tennis and the Emirates team flanked by Emirates cabin crew Stadium in Paris. “Appropriately named after famed French aviation pioneer and tennis supporter, Roland Garros, this tournament is a natural extension of our existing tennis sponsorship portfolio. Watched by millions, this acclaimed clay court championship is the perfect platform with which to align our brand,” said Clark. “We are particularly delighted and also proud to welcome an international brand such as Emirates amongst our official partners,” said Jean Gachassin, President of the French Federation of Tennis. “The arrival of Emirates fits in perfectly with our development and partnership strategy of aiming to expand our global reach.”

Colombo Bandaranaike International Airport recently marked the airline’s return of to the country after 17 years. Basil Rajapakse, Minister of Economic Development in Sri Lanka, and Bhashwara Senanka Gunarathna, Chairman of Sri Lanka Tourism Promotion Bureau, along with other senior officials were present at Bandaranaike Airport for the inaugural betel leaf ceremony and a traditional dance performance. Keith Williams, Chief Executive Officer, British Airways said, “With the arrival of our flight BA2043 and our return to Colombo, we celebrate an exciting new chapter in our commitment to increasing our presence in South Asia. We see tremendous opportunities coming from Sri Lanka with more customers wanting to travel to and from Sri Lanka for both business and leisure. We are delighted to reopen our long-haul route between Colombo and London Gatwick today and look forward to enhancing the travelling experience of our customers from this market.” British Airways’ B777-200 aircraft will be operating three times a week between Colombo and London Gatwick via Male. The flights will operate on Monday, Thursday and Saturday with a three-class configuration offering flat beds in Club World, our premium economy, World Traveller plus and World Traveller seats.

Cruising Heights May 2013

TRAVEL & TOURISM

Mum, Del back on AirAsia network

Largest cruise ship to visit India

Plans are underway to welcome the Mariner of the Seas, the largest and most innovative cruise ship to be based in Asia. At 138,000 gross registered tonnes (GRT) and stretching more than a thousand feet in length, the ship can carry 3114 guests on double occupancy and will become the biggest Royal Caribbean International cruise ship to call on Goa and Kochi on May 24 and 26, respectively. Construction of new cruise terminals has paved way for bigger and more innovative ships to homeport in Asia thereby fuelling consumer demand for cruises in the region.

airbus

AirAsia, which had last year pulled out flights to Bangkok and Kuala Lumpur from Delhi and Mumbai citing high airport charges, recently decided to put these cities back on its international network. While Delhi had a daily flight to Kuala Lumpur (on AirAsia X) and Bangkok (on Thai AirAsia) each, Mumbai had four flights a week to Kuala Lumpur on AirAsia X. “AirAsia X will be retstarting routes to India very soon. Bombay, Delhi around the corner,” AirAsia chief Tony Fernandes said. AirAsia India is preparing to launch operations with Chennai as the base with three to four aircraft initially. When Delhi and Mumbai will make it to the joint venture’s network is yet to be announced as Fernandes had indicated earlier that costly metro airports may have to wait for a while for AirAsia India.

Turkish Airlines has invited FC Barcelona fans to download the “Wings Of Barcelona: The Road to Camp Nou” application that brings together FC Barcelona fans from all over the world and provide them great chances of a Barcelona trip and signed jerseys. Lucky participants who will be rewarded with an unforgettable trip to Barcelona, will also get the opportunity to know FC Barcelona more closer. “Wings Of Barcelona: The Road to Camp Nou” application starts with choosing a seat on the stadium’s seating plan. Eight participants who bring the highest number of friends to the stadium will be awarded with a four-day journey to Barcelona. Winners will also get tickets to the Barcelona-Valledolid game, which will be the last game of the season. Furthermore, 20 jerseys and 2 signed ones will be presented to the other lucky fans.

Royal Caribbean

’Wings of Barcelona‘ on Facebook Ratna Chadha, Chief Executive, TIRUN Travel Marketing, India’s Representative of Royal Caribbean Cruises Ltd., said “In the past one year, Royal Caribbean International’s guest capacity in Asia has witnessed a threefold increase and our regional cruise offering has been augmented with two Voyager Class ships. We are pleased to bring more opportunities for WOW!, closer to home for Indian travellers”. Mariner of the Seas brings 15 decks of activities, first-atsea innovations, luxurious staterooms, entertainment and dining options. Initially, the ship will offer three to five-night cruises from Singapore to Penang, Langkawi and Kuala Lumpur in Malaysia and Phuket in Thailand in June. Subsequently, it will move to China and offer a choice of 4/5/7 nights and longer North Asian sailings from Baoshan (Shanghai).

Hyatt rebrands 5 hotels

Hyatt Hotels Corporation recently debuted its fifth brand in India with the official rebranding of five hotels to “Hyatt”: Hyatt Bengaluru MG Road, Hyatt Hyderabad Gachibowli, Hyatt Pune, Hyatt Amritsar, and Hyatt Ahmedabad. The new Hyatt hotels join the 11 properties open throughout India operating under the Park Hyatt, Grand Hyatt, Hyatt Regency, and Hyatt Place brands. Set in prime locations in some of India’s fastest growing business cities, the five hotels offer contemporary and comfortable upscale accommodations. The hotels’ restaurants and gathering places are geared toward the discerning transient, individual business and leisure traveller and can accommodate small business meetings and social gatherings. Cruising Heights May 2013

snippets

TRAVEL & TOURISM

‘Happy Feet’ with JourneyMart.com

First theme park in India

Adlabs Imagica, Mumbai’s unique global tourist destination on the Mumbai-Pune expressway, that spans an impressive 110 acres, is now open. This entertainment theme park has been built using world-class technology based on the Indian legacy of storytelling. It boasts of 18 world class attractions — Travel back to the land of dinosaurs in Rajasaurus River Adventure, take a scary trip through the haunted fortress of Salimgarh and enjoy a motion-simulator chase after Mogambo in Mr India — The Ride. In addition, Adlabs Imagica has four restaurants that serve cuisines from all across the world. Talking about Adlabs Imagica, Chairman of Adlabs Entertainment Ltd, Manmohan Shetty said, “Adlabs Imagica is the effort of many years to bring international experiences home. We wanted today’s global Indian’s to be proud of an experience in their own country. The international attractions range from the extreme to the innovative.”

Jonty Rhodes is SA ambassador Former South African cricketer Jonty Rhodes was recently appointed brand ambassador for South African Tourism in India. Last year, South African Tourism hosted Jonty to pen down a unique travel guide on his South African holiday experiences for Lonely Planet and the initiative received tremendous response. Hanneli Slabber, Country Manager, South African Tourism, India said, “We are exceptionally excited to have Jonty on board to further promote South Africa in India. Jonty has a huge fan-following, his credibility, stellar cricketing career and love for travel, adventure and South Africa, makes him the ambassador of choice to promote South Africa’s varied and exciting tourism experiences in a growing market of Indian travellers.” Commenting on the announcement, Jonty Rhodes said, “I am looking forward to encouraging more Indians to visit South Africa to discover the abundance of unique and awesome experiences offered by the destination to suit varied needs and desires.”

Travel information portal JourneyMart.com recently launched ‘Happy Feet’ for travel enthusiasts across the globe. The company released an open source compilation of over 1500 amazing travel trivia that can now be added to any website or blog and also announced a fully customisable travel widget or section powered only with relevant trivia for trade partners. Varun Chadha, COO, and JourneyMart.com said: “The planning and discovery stage of travel is becoming increasingly longer and individuals are dedicating more time to research. The nature of stimuli is undergoing a sea of change and travellers are constantly on the lookout for new ways to explore and discover the world around them. The excitement and response generated by our trivia section led to the launch of these interactive formats that offer superior integration and we are pleased to be able to provide a customised version for our valued partners”. For a perfect weekend: JourneyMart.com will now allow tourists to find the best holiday breaks from 10 cities across India for quick vacations, weekend breaks or an extended getaway with City Getaways. The innovative tool not only allows travellers to find the best holiday breaks for quick vacations, weekend breaks or an extended getaway, but also discover nearby destinations and experiences through a unique radial overview of the home city and sift through getaways based on preferred reasons for travel. The radial city map captures all worthwhile experiences within a 500 km radius of the home city. There are nearly 50 Weekend Getaway destinations from the capital and these range from traditional favourites to unconventional and exotic destinations.

VISIT FLORIDA’s redesigned website

VISIT FLORIDA — the state’s official tourism marketing corporation — unveiled its redesigned VISITFLORIDA.com website as part of the state’s week-long events focused on Florida’s 500th anniversary. One of the most popular destination marketing organisation websites in the USA with more than 20 million page views in 2012, VISIT FLORIDA’s new site proposes to leverage current technology trends to provide an easily navigable experience for users that celebrates Florida’s rich travel planning opportunities. “If we’re going to be the No. 1 travel destination in the world, we have to continue to innovate,” said Will Seccombe, President and CEO of VISIT FLORIDA. “The new VISITFLORIDA.com uses the latest technology to emphasise visual storytelling for a highly visual brand.” VISIT FLORIDA’s new site embraces many of today’s web design trends, including a Pinterest-style grid-based layout, consumer-centric navigation and inspirational travel themes etc.

Cruising Heights May 2013

CII Tourism Fest to showcase North Philippines sees double-digit rise The Confederation of Indian Industry (CII) Northern Region will be organising a ‘CII Tourism Fest’ to boost tourism and hospitality industry and showcase the tourism potential in the eight Northern states and the Union Territory of Chandigarh.

showcasing north: Arjun Sharma addressing the Press Conference on CII Tourism Fest

Jayant Davar, Chairman, CII Northern Region and Co Chairman and Managing Director, Sandhar Technologies Ltd revealed that “The first ever ‘CII Tourism Fest’ would be organised with the partnership of all northern state governments in Chandigarh between December 5-7, 2013 on a very big scale with a lot of domestic as well international participation. Punjab and Chandigarh would be the host states and the discussions are on with other states to partner in this unique initiative”. Davar added: “States like Chhattisgarh, Jharkhand, Madhya Pradesh, West Bengal, Bihar, Uttarakhand, Gujarat, Maharashtra, Goa, Karnataka, Andhra Pradesh, Kerala, Odisha have also shown interest to participate. It would have an international flavour as well. Thailand and Dubai have already confirmed their participation and we are expecting participation from countries like Germany, South Africa, US, Canada, Russia, Australia Seychelles, Sri Lanka, Singapore, Malaysia, Macau, Britain etc.” CII has created a Steering Committee to spearhead this unique initiative.

The Department of Tourism, Philippines (DoT) has announced that it recorded 418,108 tourist arrivals in February 2013 registering a double-digit growth of 15.52 per cent compared to the same month last year. It is for the first time that the country has recorded over 400,000 visitors in February. Also, visitor arrivals from India recorded a growth of 24.99 per cent in January-February 2013. DoT also observed that the visitor arrival figures to the country crossed this mark for the third consecutive month with December 2012 recording 442,088 arrivals and January 2013 recording 436,079 arrivals. The Korean market still provided the biggest arrivals for the country with 106,122 arrivals and a double-digit growth of 18.23 per cent while the U.S. market captured 13.19 per cent to provide the second biggest arrivals to the country.

Belgium, VFS Global extend services

The Embassy of Belgium has signed a new agreement with its commercial partner VFS Global, the outsourcing and technology services specialist for diplomatic missions and governments. The visa application centre services has been extended to Chandigarh reaching places: Karl Van den Bossche, and Kolkata in Northern Consul General of Belgium in Mumbai light- India, Chennai and Hydering the traditional Indian lamp abad in Southern India, and Ahmedabad and Pune in Western India. With the existing counters in New Delhi, Mumbai and Bengaluru, Belgium will then be present in nine visa application centres operated by VFS Global. Catering to the growing demand of Belgium bound travellers in the region, this strategic move is aimed at offering new services.

Appointments Karkaria on Kuoni Board AF-KLM new manager

Swiss gets new India GM

Zubin Karkaria, CEO, VFS Global Group, has been appointed as a member of the Executive Board of Kuoni Group. Besides Zubin Karkaria continuing in his existing role, he will also take on the role of Executive Board member, and will now report to the CEO of Kuoni Group, Peter Rothwell. Simultaneously, VFS Global has been made a separate business division of Kuoni Group. Karkaria will play a role in the strategic direction and decision-making of the 106 year-old Kuoni Group.

Swiss International Air Lines has appointed Markus Altenbach as their new General Manager, India. He will be taking over from Markus Altenbach Jean-Philippe Benoit who retired recently. In his new assignment, Altenbach will be responsible for overseeing Swiss International Air Lines’ account co-operations, direct sales and maintaining relationship with top clients and sales partners. “I am very much looking forward to coming to India which represents one of our key markets in Asia,” said Markus Altenbach.

Air France-KLM has appointed Bharati Mongia as its new Regional Manager, West and South India and she will be responsible for Bharati Mongia sales in west and south India for AF-KLM-Delta. Mongia brings over 16 years of experience working with AF-KLM. Kamal Sengupta, Director Sales – Indian Sub-continent said, “We are pleased to appoint Bharati as the Regional Manager – West and South India. She knows the intricacies of the job through extensive working experience with Air France-KLM.’’

Cruising Heights May 2013

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t’s 2030! Would air travel be “Beam me up, Scotty” or would it be different? Well, it won’t be difficult to tell. Providing the answer for us is Gatwick Airport. The airport in London recently took a peek into tomorrow when it published a blueprint on the future of public transport. It showcased what public transport to and from its doors would be in 2030, based on emerging and future technologies. Gatwick, the world’s busiest single runway airport presently serving 34 million a year, says it wants to significantly boost the number of people using public transport by the time it handles 45 million passengers a year: a milestone it expects to reach by 2030. This it hopes to achieve through initiatives such as ‘robo-taxis’ shuttling people to departures, intelligent high-speed trains, robotic parking and intuitive minibus. Gatwick’s Airport Surface Access Strategy 2012-2030 (ASAS) is a central part of the airport’s delivery towards the government’s requirement of sustainable aviation which, in turn, is critical to the long term success of Gatwick.

SETTING BENCHMARKS: Collage depicting various modes of transportation being leveraged by Gatwick Airport ranging from Robotaxi and train Already on the drawing board, the concept of personal automated pod vehicles conceived by Czech designer Kubik Petr and designed to transport people quickly over short distances in metropolitan areas may appear too futuristic. The fact is that these vehicles already exist and are whisking passengers between Heathrow Terminal 5’s business car park and the terminal. The next idea in line, of smart trains that wait for passengers at the platform, is based on the technology that allows rail compa-

Already on the drawing board, the concept of personal automated pod vehicles conceived by Czech designer Cruising Heights May 2013

nies to automatically adjust train schedules to meet demand in real time. These intelligent high-speed trains of the future include Bombardier’s ‘very high speed’ ZEFIRO train, which is currently being developed for the railways in Europe, Asia and North America. Also, Gatwick’s futuristic space-saving, robotic parking system that can automatically park your car while you are waiting will be a blessing for those who drive to the airport. The technology is already being used at a car park in the Middle East, where computerised machinery lifts and places cars on a shelving system. In addition, business travellers will get brownie points with the bonus of personalised transfer service to the airport on board an eco-friendly minibus.The ‘Toureen’ concept intuitive minibus features large windows, a sliding panoramic roof, seats that mould to passengers’ individual shapes and electric motors within the wheels to eliminate its carbon emissions. Further, passengers will also be offered real-time flight information in their seat while en-route to the airport. n