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MALÉ AIRPORT TERMINAL: THE MAKING OF A SHOWPIECE

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NOVEMBER 2012 I `90

Middle East gets into the alliance act Qatar Airways’ entry into oneworld signals attitudinal change of airline managements

Rolls-Royce eager to start India ops Kishore Jayaraman on RR’s plans to drive technological innovation in India

ON FOCUS PAC DGCA A

MEET

VIJAYNAGAR-2 The ruins of the once strong and resilient Vijaynagar Empire tell a story of complacency and over-confidence. Vijay Mallya’s Kingfisher saga is a repeat of that story.

EDITOR-IN-CHIEF’S NOTE

Mai-baap to the industry here are some things that the government should do and some that the government must not. But Civil Aviation K Srinivasan Minister Ajit Singh apparently believes that the best way forward is more regulation by his good self and who better than the babus of the Ministry of Civil Aviation who are apparently more suitably placed than anyone else to tell the industry on various issues. Take, for example, the recent decision to set up a brand new Aircraft Acquisition Committee (AAC) under the Chairmanship of the AS&FA (Additional Secretary and Financial Advisor) of the Ministry to “examine and appraise applications/proposals from the perspectives of air transport capacity required to meet the air traffic demand, as well as the safety, security, financial, commercial and other relevant aspects of the proposal to ensure orderly growth of air transport services. After examination and appraisal, the AAC shall make appropriate recommendations on issues such as operation of scheduled air transport services, operation of regional scheduled air transport services, operation of non-scheduled air transport services, acquisition of aircraft for flying training institutes, acquisition of aircraft for private use, in-principle approval for import/acquisition of aircraft on the request of the applicant to enter into long-term contract of supply with other parties like manufacturer, lessor or financer and also to plan their operations in future and replacement of aircraft if the seating capacity of the replacement aircraft exceeds by more than 10 per cent of the capacity of the aircraft being replaced”. Now we have the highest respect for Mr Machendranathan (the present AS&FA), but don’t get us wrong. How on earth is he going to make the informed choice that he will then convey to the airlines? Airlines spend crores of rupees to create the traffic management systems and the algorithms that can help them decode exciting new routes, interesting

CRUISING HEIGHTS November 2012

nuggets that the rivals have missed, project traffic needs based on the pattern of growth they visualise for themselves and also on the basis of the hubs and connectivity roadmap they have laid for the road ahead. So, how does the sarkar duplicate that? Where will it get the details from? Where will it get the data? What will be the building blocks of the informed choices that it will make? The Director General of Civil Aviation (DGCA) apparently will provide the data on the basis of which the committee will make its choices and inform Mr Rahul Bhatia (of IndiGo) whether he has the muscle to add 180 aircraft to his fleet or he should go for half that number. What Mr Ajit Singh seems to forget is that fleet acquisition and fleet renewal are strategic decisions taken on the basis of traffic data and operational plans. They could be replacements, they could be sale lease back, they could simply be a buffer to sell when the prices are high … the possibilities are endless. Naturally, Mr Bhatia and Co aren’t going to share that recipe with you. In any case it’s his money to burn and why should the government come in the way? Moreover, it’s the DGCA that’s been asked to cull out the critical data on which the committee will base its findings. They are most certainly not amused at this call. As one of them said: “We don’t have enough people to service our present needs and here you are asking us for data that requires a full-fledged team.” Finally, it was the government that handled the acquisition of Air India. What a fine mess it has made of that acquisition! Under the circumstances, in all fairness, would it be right for the same Mai-baaps to play this advisory role to the whole industry?

srini@newsline.in

contents

BACK TO THE WALL

p30

KINGFISHER AIRLINES IS FACING ONE OF ITS WORST TIMES. THE RISE AND FALL OF THE AIRLINE HAS ALTERED THE SCENE OF INDIAN AVIATION. SO, WHAT WENT WRONG FOR THE AIRLINE? WAS IT THE LEADERSHIP CRISIS OR THE PURSUITS OF THE SELF-STYLED “KING OF GOOD TIMES” VIJAY MALLYA? CRUISING HEIGHTS TAKES A CLOSE LOOK AT THE CRISIS THE AIRLINE IS GOING THROUGH AS IT TRIES TO REINVENT ITSELF TO RISE FROM THE ASHES IN ONE OF THE MOST DIFFICULT TIMES IN THE HISTORY OF AVIATION. .

HC TIWARI

Engines on airliners are highly competent when they are in flight, but not when functioning on the ground. When a plane is taxiing under its own power, the engines burn vast amounts of fuel. Here is the good news for the fuel-guzzling airplanes, which consume more fuel in propulsion while moving around an airport. A semi-robotic pull called TaxiBot has been developed by Israel Aerospace Industries (IAI) to address the problem. Instead of using a tow bar attached to the aircraft’s nose wheel, TaxiBot utilises a system, which mechanically takes the wheel up into a rotating turret. The TaxiBot also avoids having any links to connect to the cockpit, yet gives pilots driving control. It does this by speeding up to the speed set for the taxiway, using its inbuilt GPS map system. The pilots then employ their regular controls to manoeuvre with the nose wheel (which in turn steers the TaxiBot) and to brake with the main landing gear. A safety driver stays in the TaxiBot, and he also manoeuvres the vehicle to and from the aircraft. “With the high price of jet fuel — a tonne can cost more than $1,000 — the savings at a busy airport could be large. At some airports the passenger gates can be several miles from the runway. All told, the world’s airlines spend $7 billion-8 billion a year taxiing between passenger gates and the runway,” said Yehoshua Eldar, who is in charge of business development at IAI. The TaxiBot utilises just 20-30 litres of fuel for a usual trip. It also reduces the risk of dust being consumed by the engines and inducing damage. Lufthansa will try out the system at Frankfurt Airport from May, 2013.

HC TIWARI

Off the cuff

Blocking fuel wastage

NEWS DIGEST

p22

Kerala Chief Minister Oomen Chandy threw Air India Express (AIE) in a quandary as he announced Kerala’s own airline - Air Kerala. Plus: Will the government bring forward a fresh legislation to put in place a new Civil Aviation Policy. CRUISING HEIGHTS November 2012

CH SPECIAL

p40

GMR Male airport is poised to be completed on time. The airport once completed will provide a major fillip to the tourism business of Maldives. Plus, an exclusive interview of Andrew Harrison, CEO, GMR Male International Airport Private Limited.

contents ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS PROFILES NEWS DIGEST

CARGO

CRUISING HEIGHTS

p57

Volume VII No 7

The Air Cargo Agents Association of India is gearing up for the 39th annual convention in the end of November in Istanbul to discuss issues pertaining to the air cargo sector. CRUISING HEIGHTS talks to ACAAI President Bharat Thakkar about the convention and the air cargo scenario in India.

NET EXPRESS

Editor-in-Chief

K SRINIVASAN Managing Editor

TIRTHANKAR GHOSH Group Consulting Editor

R KRISHNAN Consulting Editor

NANDU MANJESHWAR Assistant Editors

p51 SNIPPETS

The New Distribution Capability (NDC), a new model for distributing airline services, adopted by IATA at the World Passenger Symposium, received a mixed response from the industry. The NDC will allow airlines to differentiate their products beyond just the lowest ticket price. Plus: Dubai airport goes for virtual assistants and more.

p68

Jet Airways introduces a slew of affordable JetEscapes holidays for those who want to vacation within the country this winter while Cathay offers luxury on Delhi-Hong Kong flight.

JUSTIN C MURIK, NIDHI SHARMA Copy Editor

ASHOK KUMAR Senior Sub-Editor-cum-Reporter

PUNIT MISHRA Chief Visualiser

AJAY NEGI Designers

MODASSAR NEHAL, 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) FLICKR.COM

ASHUTOSH MISHRA Sr. Executive (Coordination)

ALKA GOSWAMI

CHOPPERS

p43 BACK PAGE

Choppers are versatile platforms for civilian aerial photography as they provide a unique aerial perspective of the action on the ground. From 2010 Commonwealth Games and the F1 Grand Prix, to Bollywood movies, helicopters have been used to capture the moment for film from the air.

p74

Chicago’s O’Hare airport sets new standards in transforming a 928-sq ft mezzanine area into a high-tech aeroponic garden in Terminal 2 where 44 different types of organic herbs and vegetables can be grown.

SLATTERYHELICOPTERCHARTER.COM.AU

CRUISING HEIGHTS

COVER Illustration:

Satish Upadhyay

Design: Ajay Negi

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

CRUISING HEIGHTS November 2012

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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

Judicious nature “The Chinese are now building 82 new airports. In Australia, we’ve been talking about a second airport for Sydney for more than 23 years.” ALAN JOYCE, CEO, Qantas, on the number of airports China is building vis-à-vis Australia

Diplomatic answer “You had the impression that the fire burns much stronger in these people. The times have gone that young Indonesians, Chinese would come to Europe. We have to go there now.”

LETTERS TO EDITOR

The story Just plane food (October 2012) was insightful and full of information on the dynamics and mechanics of in-flight catering. After reading the story, I got to know that the flight catering industry is a very large, global activity and it is one of the PLANE most complex operations in the FOOD world. While some airlines offer some of the finest cuisines, there are many that provide food that is neither palatable nor good in looks. In this context, India’s role comes into play. India has got the fastest-growing aviation sector and can leverage in-flight catering to a great extent. Kamal Khurana, Meerut DOORS OPEN FOR FOREIGN INVESTMENT BUT HESITANCY REMAINS

Pg 22

CRUISING HEIGHTS www.cruisingheights.in

TOM ENDERS, Chief Executive, EADS, on the engineering potential that Indonesia, China and Europe possess

OCTOBER 2012 I `90

Categorised simply as bad, worse and worst, airline meals the world over are undergoing a change and receiving the attention and care of starred Michelin chefs.

AIR INDIA’S DREAMS OF HOPE TAKE OFF WITH NEW DREAMLINER

Flying dream (October 2012) story was interesting to read. Air India’s newly-acquired Dreamliner marks a new era of its operations with the state-of-the-art aircraft on the longhaul routes. That the flyers experienced a smoother ride from Chennai to Delhi says all about the Dreamliner. But I feel that Dreamliner can’t change the fortunes of the ailing Maharaja or take Air India back to its good old Maharaja days. AI is down due to its pathetic service and until that is improved, nothing will happen. The magic lies in good management, which AI obviously doesn’t have. Nihar Sharma, Lucknow

The story on FDI in aviation, Will FDI open the floodgates? (October 2012) made some very interesting points about FDI in aviation in India. Relaxing FDI rules will help bring much-needed cash flow to India’s bleeding private airlines. FDI inflow into the aviation industry will boost the ailing Indian aviation sector in the long run. In my opinion, FDI in aviation must be backed with reforms in the sector also. While the long-awaited move has been hailed by many industry stakeholders, it has also been despised by many in aviation circles. Ram Uniyal, Dehradun

Business insightfulness “Alliances are playing an increasingly important role in the airline industry today—and that will continue long into the future.” AKBAR AL-BAKER, CEO, Qatar Airways, on the dynamics and mechanics of airline alliances

Foe or friend “I expect strong opposition from Air India to our plans, but we think state governments too have rights to start airlines just like the national carrier.” OOMMEN CHANDY, Chief Minister, Kerala, on the threats from Air India to the upcoming airline from Kerala

Not the right time “This is the power of AirAsia. Everyone wants us, but the right infrastructure and environment must be there for us to go there (India).” TONY FERNANDES, CEO, AirAsia, on the plans to enter Indian aviation skies

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 November 2012

Constructive criticism “There is a funny rule, by which not even a bird can fly out from an airport where the Vice-President’s plane has to take off. I got delayed as I was stuck at the Delhi airport, from where the Vice-President had to fly.” SUKHBIR BADAL, Deputy Chief Minister, Punjab, taking potshots at the current Indian aviation norms

Ever imagined how many airports does the US have? The answer is a whopping 5,194 airports and it is way ahead of other countries. Huffington Post recently came out with interesting statistics on the countries with the largest number of airports. With more than three times as many LEADING BY EXAMPLE: John F Kennedy International Airport is one of the biggest as its closest competitor, the US was airports in the US. at number one. The US was followed by Brazil, Russia, Canada, China, Germany, Australia, the UK, France and Mexico. Here is the list of top ten:

United States: 5,194 airports — the highest number of airports in the world. Brazil: 726 airports but nowhere near the US. Russia: 593 airports. Canada: 514 airports. Fourth on the list, Canada boasts of some of the finest airports in the world. China: Number five with 442 airports. The country is gearing to build 82 new airports in the future. Germany: 330 airports. Australia: 326 airports at number seven. UK: With a small size to boast, the UK has 306 airports. France: 297 airports. Mexico: 250 airports.

COLD STATS

Whopping number of airports

“

LOOKING GLASS

No longer a shy bride, Indian Aviation woos suitors but where is the knight in shining armour? Policy review “FDI in civil aviation will help tap expertise and experience of foreign airlines for domestic industry.” AJIT SINGH, Civil Aviation Minister, on the practical feasibility of FDI in civil aviation

A big no

“The current 49 per cent required stake, with no government assurances on issues creates too great a barrier to entry. Emirates has no plans to acquire a stake in another airline in India.” TIM CLARK, President, Emirates Airline, on why his carrier will not invest in India’s civil aviation sector

CRUISING HEIGHTS November 2012

TRAFFIC DATA

SLOWDOWN IN SEPTEMBER

s per passenger traffic data issued by Indian aviation regulator DGCA, the number of passengers carried by Indian carriers was 438.39 lakh between January and September 2012 as against 442.18 lakh during the corresponding period of the previous year showing a fall of 0.9 per cent. The total domestic passengers carried by scheduled domestic airlines for the month of September 2012 were 40.18 lakh as against 43.69 lakh in August. The break-up for the month of September 2012 was: Air India — 7.75 lakh, Jet Airways — 7.29 lakh, JetKonnect — 2.29 lakh, IndiGo — 10.94 lakh, SpiceJet — 7.43 lakh, Go Air —3.07 lakh, Kingfisher — 1.41 lakh and Mantra — 0.002 lakh. IndiGo continued with its dominance of the domestic market with a marketshare of 27.2 per cent in September. It was followed by Jet Airways and JetKonnect (23.8 per cent), SpiceJet (18.5 per cent), Air India (19.3 per cent), GoAir (7.6 per cent) and Kingfisher Airlines (3.5 per cent). The passenger load factor in the month of September 2012 declined mainly due to the lean season. The highest passenger load factor was obtained by IndiGo at 69 per cent (it was 73.4 per cent in August), GoAir’s was 67.7 per cent (67.7 per cent in August), SpiceJet’s was 64.4 per cent (August: 67.2 per cent), Kingfisher’s was 58.4 per cent (August: 53.2 per cent), JetKonnect 66.1 per cent (August: 68.6 per cent), Jet Airways 63.5 per cent (August: 66 per cent), Air India (Domestic) 65.2 per cent (August: 66.1 per cent) and Mantra 12 per cent (August: 9.1 per cent). IndiGo led the airlines in the overall ontime performance of airlines in September 2012 at six airports — Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad —with 96.9 per cent. The other airlines that followed were: Jet Airways and JetKonnect 93.7 per cent, GoAir 90.8 per cent, SpiceJet 87.4 per cent, Air India (Domestic) 86.9 per

MARKET SHARE OF SCHEDULED DOMESTIC AIRLINES Mantra 0.0%

Air India (DOM 19.3%

IndiGo 27.2%

Jet Airways 18.1% GoAir 7.6%

Jet Airways + JetLite = 23.8%

JetLite 5.7%

SpiceJet 18.5%

Kingfisher 3.5%

ON-TIME PERFORMANCE (OTP) SCHEDULED DOMESTIC AIRLINES OTP AT SIX METRO AIRPORTS

120

80.8

86.9

87.4

90.8

93.7

96.9

Kingfisher

GoAir

Air India (Dom)

SpiceJet

Jet Airways+Jet Lite

IndiGo

100 OTP (%)

80 60 40 20 0

CRUISING HEIGHTS November 2012

1.6

All India (DOM)

1.4 1.4

SpiceJet GoAir

45.87

40.18

1.0

1.5

2.0

2.5

PASSENGER LOAD FACTOR OF SCHEDULED DOMESTIC AIRLINES The passenger load factor in the month of July 2012 has declined mainly due to lean season. Aug 2012

Sep 2012

100

6.5

IndiGo

0.6

Air India

Jet Airways

JetLite Kingfisher SpiceJet

63.2 67.7

0.9

67.2 64.4

GoAir

53.2 58.4

1.7

68.6 66.1

2.1

JetLite

66.0 63.5

2.5

Jet Airways

66.1 65.2

2.7

9.1 12.0

20 10 0

GoAir

IndiGo

Mantra

CAPACITY VS DEMAND

Mar

Apr

May Jun

Jul

0.1 -4.8 -1.3 -4.8 Aug Sep

Year over Year

Kingfisher flies to four metros. Its on-time performance at Bengaluru was 93.4 per cent followed by Chennai (89.3 per cent), Delhi (77.8 per cent) and Mumbai (77 per cent). SpiceJet’s on-time performance at Kolkata was 95.9 per cent. The carrier’s performance at Hyderabad was 74.8 per cent, Delhi (90.5 per

CRUISING HEIGHTS November 2012

cent), Bengaluru (84.7 per cent), Mumbai (87.6 per cent) and Chennai (92.3 per cent). AI’s on-time performance at Kolkata was 89 per cent. The carrier’s landings and take-offs at the other metros were: Hyderabad (89.3 per cent), Bengaluru (84.4 per cent), Delhi (87.3 per cent) and Mumbai (87.1 per cent).

GRAPHICS: NAGENDER DUBEY

Dec

-8.8

0.2 -0.3

Nov

-0.5 -4.8

9.5

Feb

2.9

Jan

3.0 2.0

6.9

14.5 10.8

Oct

Demand (RPKM)

12.2 7.9

Sep

11.9

Aug

16.8

30 25 20 15 10 5 0 -5 -10 -15

Capacity (ASKM

cent, and Kingfisher 80.8 per cent. The number of passenger complaints recorded by scheduled domestic airlines in September 2012 was 595. Jet Airways had one of the highest passenger complaint rates at two followed by JetKonnect (1.7), Air India-Dom (1.6), SpiceJet (1.4), GoAir (1.4), IndiGo (1.2) and Kingfisher Airlines (1.1). IndiGo’s on-time performance at Bengaluru was 99.2 per cent. The carrier’s performance at Delhi was 97.5 per cent, Hyderabad (97.6 per cent), Chennai (94.8 per cent), Kolkata (98.6 per cent) and Mumbai (93.8 per cent). Jet Airways and JetKonnect’s on-time performance at Chennai was 98.9 per cent. At other’s airports it was: Kolkata (94.6 per cent), Hyderabad (93.6 per cent), Bengaluru (95.6 per cent). The carrier’s performance at Delhi (90.4 per cent), and Mumbai (93.5 per cent). GoAir flies to only five of the six metro airports. The carrier’s on-time performance at Kolkata was the highest at 100 per cent. In the other four metros, it was: Delhi (88.5 per cent), Mumbai (92.8 per cent), Bengaluru (95.1 per cent) and Chennai (81.1 per cent).

16.8

Cancellation Rate (%)

11.0

30 35 40

16.3 12.0

18.5 15.4

15 20

SEAT FACTOR(%)

% Change over Month

0.5

No. of Complaints /10,000 Pax

36.7

Mantra SpiceJet

0.0

Mantra

MoM

YoY

Kingfisher

1.2 1.1

IndiGo Kingfisher

*Overall Cancellation Rate in Sep 2012: 2.2%

1.7

JetLite

Growth: YoY =-(-0.9%)

CANCELLATION DATA OF SCHEDULED DOMESTIC AIRLINES

All India (DOM)

2.0

Jet Airways

2012

5.8

500 450 400 350 300 250 200 150 100 50 0

Total no. of complaints (Sep 2012) : 595 No. of passenger-related complaints 1.5 per 10,000 passengers carried

73.4 69.0

2011

PASSENGERS COMPLAINTS OF SCHEDULED DOMESTIC AIRLINES

442.18 438.39

Pax Carried (in Lakhs)

438.39 LAKH PASSENGERS CARRIED BY SCHEDULED DOMESTIC AIRLINES IN JAN-SEP 2012

NEWS DIGEST

IT’S ONE WORLD, AFTER ALL The induction of Qatar Airways in oneworld could not only change the manner in which international carriers operate but also bring about an attitudinal transformation in the way carriers and their managements view Middle Eastern airlines. t was a move that virtually stole the thunder from the very noses of the opponents. The occasion: the formal welcome of the Doha-based Qatar Airways to the oneworld airline alliance on October 8. The other alliances — Star and Skyteam — would have loved nothing more than to get one of the high-flying — and now, perhaps, the only airline in the world to increase capacity, fly to new destinations and make money — Middle Eastern carriers on board but oneworld beat both to them. The alliance that boasts of British Airways and American Airlines among its founder members has certainly been energised by Qatar. The carrier may have increased oneworld’s share of global seat capacity by 0.6 percentage points to 12.2 per cent but it is still nowhere near the Star Alliance’s 24.8 per cent. Perhaps, what must have prompted oneworld to rope in Qatar is the growth in the number of passengers it has been experiencing. Add to that the whopping average of 15 destinations Qatar CEO Akbar Al Baker is adding to his list every year, and you have a winner! To top it all, oneworld became the only alliance to have a hub in the Gulf providing passengers better connectivity, due entirely to the co-ordinated flight timetables on routes via and within the Middle East. Almost at the same time that Qatar joined the alliance, came another announcement — this time by Air France pointing out that it would co-ordinate ticket sales with Qatar’s rival Etihad Airways. The move will certainly have an impact on the way the global airlines will operate in the future but it will have major implications for passengers.

“Qatar Airways has carefully reviewed its strategic options and it is very clear that joining oneworld is by far the best way forward for us.” Akbar Al Baker CEO, Qatar Airways

The fallout of Qatar’s membership on other alliances apart, oneworld will have to take a long, hard look at itself. To begin with, it has to strengthen its membership base: today, it is a group of airlines that does not share strategic overlaps. Worse still is the fact that the members do not present a united front. Take the case of the ailing Australian carrier Qantas. One of the oneworld founders, sometime ago, it announced a codeshare deal with Emirates forcing British Airways to call off the tieup it had with it. Aware that the oneworld alliance was talking with Qatar, Qantas went ahead and shook hands with Qatar’s biggest regional competitor, Emirates. The handshake may force Qantas out of the alliance. However, oneworld has not exactly done itself proud by welcoming Qatar. It has Royal Jordanian — a member since 2007 — that operates on a Middle Eastfocussed route network and in many cases duplicates Qatar’s. The carrier may move over to one of oneworld’s rivals. And, what is more embarrassing is the fact that airberlin, already 30 per cent owned by Etihad, joined oneworld in March this year but has done a deal with Skyteam member AirFrance-KLM, and may ultimately also leave. On the flip side, the core members of oneworld will be able to bring about more integration and cooperation in their most important markets. Qatar’s iconic service standards might be able to woo oneworld’s international business and leisure frequent-flyers from across the Atlantic. On the other hand, British Airways could well leverage its traditional strength in Africa and offer American

NEWS DIGEST

HALLOWED COMPANY: (L-R) American Airlines’ Chairman Tom Horton, Qatar Airways CEO Akbar Al Baker, IAG CEO Willie Walsh, and oneworld CEO Bruce Ashby at a oneworld press conference

Airlines’ passengers routes to Africa and Asia via Doha instead of London. In South America, Qatar will be able to use oneworld members Iberia and LAN, to gain access while conserving its wide-body fleet for flights to profitable destinations in India and China. The effects of Qatar’s entry into oneworld will be known in course of time. However, for the moment, Star Alliance looks to be the biggest loser: it does not have a foothold in the Middle East. It has been beaten by the Air France-KLM tie-up with Etihad. Though Star may try to woo Emirates, it is quite clear that the Dubaibased carrier would be content ploughing a lonely furrow. After all, it is the largest airline by passenger kilometres flown outside the US and does not need props like the alliances to stand on its own. The SkyTeam alliance seems to have lost its shine. Qatar, in fact, complements oneworld’s portfolio of top-quality carriers. Many of them have been awarded five-star ratings by Skytrax a number of times. To counter that, SkyTeam has precious little; in fact, quite the opposite. There are carriers like Russia’s Aeroflot or China Airlines. Whatever the present groupings might throw up for frequent flyers, what is certain is that over the next few years, major changes to the three alliances will be seen and most of it will benefit passengers. Together, the three offer around 44 per cent of the global seat capacity and with more

“Oneworld has more flexibility than rivals Star and SkyTeam for members to pursue other pacts.” Willie Walsh CEO, IAG CRUISING HEIGHTS November 2012

competition between them, heightened service standards will be seen on routes hitherto neglected like those in Africa and South America. Possibly the biggest gainers will be the airports and airlines of the Middle East with aviation being focussed on Doha, Dubai and Abu Dhabi. Said Willie Walsh, CEO of IAG, that it was going to hand-hold Qatar through the whole process of induction into the alliance, “Many of my European counterparts will complain about the way the Middle East carriers operate; they think that it is unfair competition. I don’t buy into that,” he told Business Travel News way back in June 2010. Air France-KLM has continued to be against the Middle Eastern carriers. Two years ago, Jean-Cyril Spinetta, CEO of the combined Air France-KLM group, said that the “Gulf companies are killing our industry”. Perhaps, heeding to his call, former Air France CEO Pierre-Henri Gourgeon told Bloomberg in October 2011 Europe was “at the crossroads of international air travel, and this is a role we need to value and defend”. Today, Air France-KLM will indeed have to raise its defences to counter the onslaught by the carriers from the Middle East. Unable to beat them, Air France-KLM has to join them; witness the tie-up with Etihad. So, has the change of heart for the anti-Middle East carriers happened? Maybe, it has. Only time will tell.

NEWS DIGEST

AI-Star Alliance issue comes to fore Ajit Singh while carriers joining addressing Economic the global airline Editors Conference in alliance from a New Delhi pushed single country. the agenda of Air “There is no India’s inclusion in problem in two the Star Alliance. He carriers joining said German carrier the global airline Lufthansa should alliance from a stand by its commitsingle country,” ment to push for Air Singh added. India’s inclusion in Earlier, Air UPPING THE ANTE: The Union Minister for Civil Aviation, Ajit Singh (in the the Star Alliance. India had been centre) addressing the Economic Editors’ Conference, where the AI-Star “The Civil invited to join Alliance issue was raised Aviation Ministry the alliance in will hold talks with German mentoring us to join Star 2007 but its application was carrier Lufthansa for Air Alliance. In the meantime, AI put on the backburner in 2011. India’s entry into Star also had some troubles. But The Star Alliance netAlliance,” Singh said. “We now they are over. They were work was established in 1997 are going to talk to Lufthansa given a lot of flights, it was as the first truly global airline to adhere to the plan we had made almost open skies for alliance to offer worldwide to join the alliance. The govthem.” reach, recognition and seamernment gave a lot of faciliSingh said that he was less service to the internaties to the airline that was not critical of the idea of two tional traveller.

BUSINESSTRAVELLAR.COM

New A-Plus gates unveiled

HIGHLY ORGANISED: Frankfurt Airport’s new A-Plus gates

BA and Japan Airlines tie up British Airways and Japan Airlines (JAL) will begin a joint business agreement with the two airlines sharing revenue on applicable flights between Europe and Japan. The joint business will benefit customers by providing better links between Europe and Japan, greater choice of flights to more destinations, enhanced frequent flyer benefits and the potential to launch new routes. British Airways and JAL, both members of oneworld, have been forging ever closer ties in their evolution to the joint business.

Passengers going to or through Frankfurt Airport with Lufthansa or one of its Star Alliance partner airlines can expect new services and smoother connections with the opening of new A-Plus section of German mega-hub. In addition to a fresher, lighter and brighter terminal, business travellers will see several specific improvements. Fewer flights will involve a bus trip to the plane, there’ll be 7,600 square metres of new lounge space, and business/first class passengers will see fast-track lanes.

CAL joins SkyTeam Cargo CHINA Airlines (CAL) has broadened its connection with SkyTeam, becoming a member of the SkyTeam Cargo Alliance. China Airlines’ Senior Vice President James Yu said that the airline was honoured to become the tenth member of the world’s only cargo alliance.

Representing the SkyTeam Cargo Executive Board Tony Charaf said that China Airlines Cargo would considerably fortify the alliance’s global reach, furthering an all-inclusive route network. The alliance will see China Airlines adopts SkyTeam Cargo service standards with simplified handling procedures. China Airlines carried 5,670 million tonne-kilometres of cargo last year according to IATA.

Virgin explores joining aviation alliance VIRGIN ATLANTIC is exploring wider options to join an aviation alliance. Reportedly, the airline controlled by UK billionaire Richard Branson, seeks to boost its position in the market by doing so. “Virgin Atlantic has always savoured its independence, but since pretty well every competitor that we have has an alliance I think we have finally decided that to survive we need to have an alliance,” Branson said in an interview with Bloomberg Television.

“There are anti-competitive alliances and there are competitive alliances. If someone controls 60 per cent of the market they become dominant, and if they take up with someone who controls 30 per cent of the market then they become even more dominant. If Virgin has one alliance, BA has 30 of them. We are a minnow compared to our competitors,” he said. Earlier in 2011, Branson had said that Virgin Atlantic was looking at joining a global alliance, though he wouldn’t consider a deal that involved him giving up control of the airline. 1.BP.BLOGSPOT.COM

CRUISING HEIGHTS November 2012

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A$10-million fine for Emirates A fine of A$10.3 million has been imposed on Emirates by the Australian Competition and Consumer Commission (ACCC) accusing it of fixing surcharges for fuel and other prices. Legal proceedings were started against the carrier in 2009, alleging it was part of a lobby that operated in the air freight market. “This settlement with Emirates brings the total penalties ordered in Australia against international airlines involved in the cartel to A$ 68 million,” said ACCC Chairman Rod Sims and pointed out. “This result sends a strong message that the ACCC and the Australian courts will not tolerate any business engaging in cartel conduct that harms competition in Australia. Cartel conduct is illegal and often results in increased prices for consumers”.

Emirates was charged with A$7 million for fixing fuel prices, a security surcharge and a customs fee on air freight carried from Indonesia to Australia and other countries between October 2001 and May 2006. It was also penalised A$3 million for trying to fix rates with DAS Air Cargo for the supply of air freight from Australia.

C-series jet gets ready for competition Bombardier has started assembling the Cseries aircraft and expects to start its flighttesting by year-end. The Canadian aerospace company believes that the move will break the Boeing-Airbus stranglehold on the narrowbody jet market. The Canadian aerospace company said that the fuselage and other parts for the first C-Series plane, which would include assemblies sourced from the UK, China and elsewhere,

The Transportation Security Administration (TSA) has been removing X-ray body scanners from major airports in the US and replacing them with machines that are safer. According to TSA, it made the decision not because of security concerns but to expedite checkpoints at busier airports. It means far fewer passengers will be exposed to radiation because the X-ray scanners are being moved to smaller airports. “They’re not all being replaced,” TSA spokesman David Castelveter said. “It’s being done intentionally. We are replacing some of the older equipment and taking them to smaller airports. That will be done over a period of time.” He said that the TSA took this conscious decision to move X-ray machines to move to less-busy airports after conducting an analysis of processing time and staffing requirements at the airports where the scanners were installed.

USAHITMAN.COM

were being assembled at the company’s factory in Mirabel, Quebec, Canada. With 100 to 149 seats, the plane would confront the Boeing and Airbus planes in the 737 and A320 families. It also will use carbon-fiber composite technology in the wings. “We’re aiming for first flight this year,” said Marc Duchesne, spokesperson for Bombardier. “The market is expecting us to start flying as soon as that.”

TSA phases out X-ray scanners

A C-series jet A flyer being scanned by a X-ray scanner.

Airbus unveils A350 plant Airbus unveiled a plant for its A350 jetliner, setting off a new chapter in the battle for fuel efficiency and profits with US rival Boeing. The plant has been named after ‘Father of Airbus’ Roger Beteille, a pioneer of twin-engined

An inside view of A350 plant in Toulouse, France.

long-haul passenger jets. The A350 is Europe’s first contribution to a new generation of jets planned to cut jet fuel bills through lightweight carbon-composite materials instead of the heavier aluminum. Airbus said that the A350 would take to the skies in the summer of 2013 and enter service in the second half of 2014. Three different models of the aircraft will accommodate between 270 and 350 people. Airbus President Fabrice Bregier said: “Innovation is deeply rooted in our DNA this is fully demonstrated on the A350 XWB, the world’s newest, most advanced airliner. We honour Roger Beteille, an exceptional aviation pioneer and we name the A350 XWB final assembly line after him, one of our industry’s greatest innovators.”

CRUISING HEIGHTS November 2012

China to construct biggest airport Beijing is poised for a new mega airport by Dutch Airport Consultancy firm NACO. To be named Beijing Daxing International Airport, it will have capacity for 130 million passengers per year, 23 million more than JFK and London Heathrow combined. The new airport will offer a second hub for the city; the current airport, Beijing Capital International Airport, handles almost 75 million passengers a year and will be saturated in a few years. The new airport is slated to open in 2017. The recently released plans show a new hub that will cover 55 square kilometres (about 21 square miles) and include eight runways.

EU to rejig airline industry

‘Heathrow is vital’

The EU will put in place a stringent set of laws to guarantee fair competition and protect its airline companies as it seeks to boost an industry necessary to the wider economy. “Outdated ownership and control restrictions must also go as part of an international effort so as to ensure airlines get easier access to needed new capital,” EU Transport Commissioner Siim Kallas

said. “The European Union would negotiate new and more effective EU instruments to protect European interests against unfair practices. Standard fair competition clauses would be included in current bilateral air services agreements between EU and nonEU countries,” he maintained. Kallas said the European aviation had suffered badly in the economic downturn and it needed a shake-up to make it more competitive, given the rise of fast-growing airlines in Asia and the Middle East targetting a global market.

Qatar Airways Chief Executive Officer Akbar Al Baker recently came to the rescue of one of the world’s busiest international airports - London Heathrow -- as he called on the British government to urgently address capacity constraints at the airport to stave off a catastrophic situation for the country’s economy. “Heathrow is bursting at the seams and has already reached a vital point,” he said. “No capacity increase will inevitably lead to further economic hardship with job losses and businesses closing down. Heathrow is already losing out to European neighbouring hubs that have the resource to expand capacity. Measures to expand need to be taken soon to avoid a catastrophic situation in the future.” Al Baker said the third runway debate was not an alternative, but a prerequisite to surmount the capacity crunch, Britain’s premier airport was currently facing.

Boeing ties-up with Samsung for in-flight technology Boeing and Samsung recently announced that they would explore working together to research and develop technologies that improved in-flight entertainment and communications, as well as enhanced factory productivity. Boeing signed a memorandum of understanding with Samsung to help broaden and deepen the Korean industry’s ties to Boeing aircraft production. Boeing and Samsung Electronics will initially start developing advanced display and wireless networking technologies that offer

more capabilities for passenger entertainment and ground-to-air communications, but are lighter and require less power. Additionally, the companies will explore opportunities to collaborate on projects involving productivity and enterprise mobility using Samsung’s current and future devices and solutions in hand-held mobile devices and other IT products. “Onboard communications and networking are key elements to the passenger in-flight experience, and connecting the airplane with ground crews during flight is vital to airline operational efficiency,” said Larry Schneider, Vice-President of Product Development, Boeing Commercial Airplanes.

CRUISING HEIGHTS November 2012

NEWS DIGEST

Airports in Lucknow, Varanasi, Mangalore, Tiruchirapalli and Coimbatore were recently granted international airport status. “All these airports are capable of handling medium capacity range, long-range type aircraft and are also equipped with facilities for night operations,” Finance Minister P Chidambaram said after the meeting of Cabinet Committee on Economic Affairs. He said that these airports had been upgraded to international standards and the move was expected to provide impetus to domestic or international tourism and contribute to economic development of the regions concerned. “These airports already have infrastructure like immigration and customs to handle the international operations. In fact, some of them already have some international flights,” Chidambaram added.

600

GHOSTS IN UGANDA CAA

NEW AIRBUSES FOR IRAN

Iran has purchased 11 Airbus A320 and A310 passenger planes, the Roads and Urban Development Minister Ali Nikzad said. Despite the global powers’ sanctions, 11 planes have been bought, Ali Nikzad said, but did not reveal how much have been spent on buying the planes, the ILNA news agency reported. Earlier, the President of Civil Aviation Organisation of Iran had said in April, “We plan to increase the number of aircraft and replace the older planes with new ones. We also plan to raise the lifespan of the fleets by 25 per cent.”

4.1

BILLION $ IN 2012

According to estimates released by the International Air Transport Association (IATA), airlines are expected to earn $4.1 billion in 2012, up $1.1 billion from the $3 billion forecast in June. “The European sovereign debt crisis lingers on. China continues to moderate its growth. And the impact of recent quantitative easing in Japan and the US will take time to yield growth. While some of these risks have diminished slightly over recent months, they continue to take their toll on business confidence. The outlook improvement is due to airlines performing better in a difficult environment,” said Tony Tyler, IATA’s Director General and CEO. The IATA also released its first forecast for the 2013, saying that the industry profits were expected to bounce back to $7.5 billion, as economic forecasts point to slightly stronger economic growth and lower oil prices.

AIRPORTS GET INTERNATIONAL TAG

A government audit report says that Civil Aviation Authority of Uganda paid out Sh1.2 billion to ghost employees. The Internal Audit and Inspectorate Annual Consolidated report for 2011/2012 revealed that last December, nearly 600 people illegally received salaries from the authority. “The audit team requested for a staff list in order to ascertain how many staff of each category are in employment. However, management provided a list that did not appear original, showing only 287 employees and leaving out some staff,” the report said. A review of the payroll for December 2011 indicated that 895 people got salaries from the CAA.

`566 CRORE OUTSTANDING IN DUES

Air India (AI) owes a whopping sum of `566 crore to the Delhi International Airport Ltd (DIAL) — the consortium which manages the Indira Gandhi International (IGI) Airport. “I am aware that Air India owes certain dues. We have raised objections on certain charges that have been levied. We are in the process of meeting with GMR officials and will clear them soon,” Rohit Nandan, Chairman and Managing director, AI, told Mail Today. The dues are partly related to landing and parking charges, which every aircraft has to pay to land at the IGI Airport, the newspaper reported.

CRUISING HEIGHTS November 2012

1,500 FLIGHT ATTENDANTS

In a startling revelation by a newspaper, Bureau of Civil Aviation Security (BCAS) has got only eight field officers to secure 97 airports. International Civil Aviation Organisation during its safety audit had pointed out the shortcomings of Bureau of Civil Aviation Security (BCAS). According to the report by The Indian Express, currently being run with strength of 126 officials, the restructured BCAS aims to recruit 2,120 personnel. It wants to have its own team present at all functional airports, thereby giving them an edge to manage the security on their own.

MILLION $ RENOVATION An international terminal at O’Hare International Airport in Chicago will undergo a $26.2-million makeover. Changes include a new food court and a spa offering reflexology and beauty salon services, plus new passenger comforts ranging from a sleek security checkpoint to updated restrooms and plenty of electrical outlets for passengers. The upgrades mark the first overhaul of Terminal 5 since it opened in 1993. “This is a day that is long overdue for O’Hare International Airport and specifically for Terminal 5,” Chicago Aviation Commissioner Rosemarie Andolino said.

Believe it or not, American Airlines has been planning to hire 1,500 new flight attendants for the first time since the terrorist attacks on September 11, 2001. “For the first time in over a decade, American is seeking to add more than 1,500 new flight attendants who we believe will bring new point of view to the airline,” said Lauri Curtis, American’s Vice PresidentFlight Service. “We attach importance to our flight attendants and appreciate the important contributions they make to our company every day. We look forward to welcoming new faces and working together to bring a fresh energy to our team,” Curtis added. The airline will put up the job opening in November, at which time eligible candidates can visit aacareers.com and submit their interest. American aims to start the selection process for new-hire flight attendant candidates in early December.

PERSONNEL FOR 97 AIRPORTS

CRUISING HEIGHTS November 2012

NEWS DIGEST

INDEPENDENCE COULD BOOST AIR INDIA EXPRESS’ FORTUNES he announcement by the Kerala Chief Minister Oomen Chandy that his state was in an advanced stage of forming its much-postponed own airline, Air Kerala, may mean a definite death of Air India Express (AIE), which in any case seems to be on a self-destruction mode. It is largely due to the callous and negative attitude of the Air India management in the past that has not seen any major mid-course correction by the airlines’ subsequent bosses. So, before unravelling the Air Kerala story, it will be useful to recall, recollect and project the future of Air India Express (AIE). Looked at any way, the problems encountered or even inherited by AIE does not show that it will ever go away in the near future. This is notwithstanding the occasional pep talk by its ever-changing management. The potential of AIE is far from being realised and with rising competition from other private domestic carriers apart from the Gulf airlines, the future of the carrier will remain in a limbo. The history and the course of AIE so far makes an interesting case study of how to emasculate an airline in a space where every other competing airline is making money — at least those who fly from the Gulf/UAE and South East Asia. The AIE saga began when the Board of Directors of the erstwhile Air India Ltd. decided at its 98th meeting held on May 29, 2004, to mandate its wholly-owned subsidiary, Air India Charters Ltd (AICL), to set up a separate new airline to start “lowcost low-fare” operations under the brand “Air India Express (AIE)”. Accordingly, a project report was prepared for acquisition of 18 short-range Boeing 737-800 aircraft in an all-economy configuration. The report prepared in December 2004 envisaged Net Project Cost (NPC) of `4,719.66 crore, Net Profit was `2338.48 crore and Net Present Value (NPV) was `2200.84 crore. This report was submitted for approval to the Government of India. Following all approvals, the lowcost, low-fare airline commenced operations on April 29, 2005, with three Boeing 737-800 aircraft taken on lease. The inaugural flight on Thiruvananthapuram-Abu Dhabi route was launched with great fanfare, heralding a new era in air travel for the India-Gulf routes. The approval of the Government of

India for the purchase of aircraft was received on December 30, 2005, and the purchase agreement with Boeing was signed soon thereafter. The airline today has a fleet of 21 aircraft, 17 of them owned and four on lease. Project funding AICL had an equity capital of only `30 crore. The project report envisaged funding the entire purchase through a 12-year External Commercial Borrowing (ECB) Loan. The total cost of 18 aircraft stood at `3362.38 crore as on March 31, 2010, and actual loans availed through the US EXIM Bank — `3192.27 crore — were far less than anticipated. The repayment of the loan is entirely through the revenues earned by Air India Express. Financial crisis faced by Air India Express The project report had a clause for a revenue-sharing arrangement between Air India and Air India Express, by which 25 per cent of the Gross Passenger Revenue of Air India Express had to be shared annually with the parent company, to compensate Air India for the loss of revenues due to

transfer of some of the lucrative Gulf routes to the subsidiary company. In terms of the Turnaround Plan/Financial Re-structuring Plan of Air India Ltd., the revenue share had been brought down to 12.5 per cent from Financial Year 2012-13. The revenue sharing arrangement placed a huge burden on the finances of Air India Charters Ltd. because of the low equity base of `30 crore. The concept of compensating Air India for loss of revenues seems irrational in the changed market conditions. AIE now operates in a low-cost market where the competitors are Gulf-based carriers such as Air Arabia, Fly Dubai, etc. Besides, the powerful India-based low-cost carriers have also joined the Gulf party. Air India Charters Ltd. today owes almost `800 crore to Air India on account of the past revenue-sharing dues. As on March 31, 2012, the company had taken working capital loans amounting to `1300

CRUISING HEIGHTS November 2012

crore in order to only pay the past revenue share commitment of 25 per cent due to the parent company. Market conditions of Air India Express Air India Express managed to establish a strong and loyal customer base in the Gulf markets. The airline also became quite popular with the ethnic Indian population in Singapore and Kuala Lumpur. The carrier deploys 55 to 60 per cent of its capacity in the four stations in South India: Mangalore, Kozhikode, Kochi and Thiruvananthapuram. Another 15 to 20 per cent capacity is deployed from Chennai and Tiruchirapally. Incidentally, the revenues from South Indian and Gulf markets comprised nearly 80 per cent of the total revenue of `1750 crore in 2011-12. Re-structuring of Air India Express Air India Express is heavily dependent on Air India for a wide range of resources including manpower. In fact, the majority of the pilots of Air India Express is on deputation from Air India. Any agitation by the pilots

of the parent company (as was the case a few months ago) leads to cancellation of Air India Express flights. A presentation was made to the Ministry of Civil Aviation in August 2012, where it was mentioned that AIE required around 200 more pilots to ensure smooth operations and increase in its fleet utilisation. How can any airline survive if it prefers to keep its planes on the ground instead of in the air? The average daily aircraft utilisation of AIE has never exceeded beyond nine-and-a-half hours and over the years it has come down to a new low of just about six hours. A major reason for the very low utilisation has been the serious shortage of both Commanders and copilots. This point was very clearly brought out in the presentation to the Ministry in August last. As per available forecasts, AIE

has about 46 sets or 108 pilots and will require an additional 126 sets. Independent assessment suggests that the low-cost, lowfare carrier may require 137 Commanders and 137 co-pilots to ensure at least 11 hours daily utilisation of its 21 aircraft as at any given moment at least three of those planes will be on ground for maintenance. The fact that AIE started in 2005 and in the nearly seven years of its existence, it earlier yielded place to Gulf carriers and now to even our own desi carriers, speaks volumes about the utter callousness of the parent airline, Air India. This is not to suggest that this is a recent problem. In fact, it was a problem and seems to be continuing even now. Now, Civil Aviation Minister Ajit Singh wants the airline to increase utilisation to 12 hours day. Of its 21 aircraft 13 are based in Kerala and Mangalore in Karnataka and five in Chennai and Trichy. These 13 aircraft operate 119 Gulf Services and 17 Mumbai services a week. It may be mentioned here that till about two years ago, AIE used to operate late night domestic flights to increase utilisation and also rake in more revenue. There were flights, for example, between Chennai and Mumbai and even in the reverse direction as well besides Kerala. Hardly were such connections available at a time

when domestic yields rose sharply in the last 18 months. It was sad to let the daily utilisation of AIE Boeings go down to six hours a day when it could have easily ferried domestic passengers. All this was due to serious shortage of pilots. Everyone knew but no one in the parent company acted. As for the Ministry of Civil Aviation, it was too busy dishing out rights to both foreign and domestic carriers on the critical Gulf and South-East Asia routes. The latest changes in FDTL (Flight Duty and Time Limitations) rules will make it even more difficult to keep AIE alive as more pilots will be required as a result of the change in rest regulations. Even in May 2012, AIE

had only 71 commanders as against the requirement of 102 for its 21 aircraft fleet. A source said that AIE’s own cadre of pilots comprised a measly 45 Commanders and 25-odd co-pilots who were supplemented by 15 expat Commanders. This was in contrast to 50 Commanders, 75 or so co-pilots and 60 trained pilots who were on deputation to AIE. These trainees are in the process of being seconded to AIE now to increase both aircraft utilisation and earn more revenues. Notwithstanding all this, AIE has announced a bold new winter schedule according to which there will be a 57 per cent increase in flight services between Kerala and the Gulf and if Mangalore is included, it will rise by 52.6 per cent overall. Against the present 14,430 seats offered, the winter schedule will see on offer 22,015 seats by AIE. By this measure, AIE expects to increase its revenue to `2,000 crore in the current financial year 2012-13. Alongside, the MRO in Trivandrum

PROVING ITS WORTH: Air India Express is up against heavy odds to prove its viability

has also started operations with the ‘Wheel Production’ or the servicing of wheel sets. Earlier they had to be sent to Hyderabad and Mumbai. However, AIE COO Ansbert D’Souza and Deputy COO Capt Pushpinder Singh are optimistic. Addressing a news conference in Kochi on October 12, 2012, they said AIE would acquire 14 more Boeing 737-800 aircraft in the next four to five years. This would increase its present fleet from 21 to 35. The decision to enhance the AIE fleet is taken as part of the new turnaround plan for which the central government has earmarked `30,000 crore over ten years. They said: “The airline is yet to

CRUISING HEIGHTS November 2012

decide whether it should go in for leasing or outright purchase.” Responding to criticism on the frequent suspension of flights on the Kerala-Gulf routes, the AIE top brass said: “The top management will directly monitor the steps needed for maintaining schedule integrity.” D’Souza said that nearly 60 per cent of AIE operations were based out of three airports in Kerala — Kozhikode with four aircraft, Kochi with three and Trivandrum with three, besides three Boeings in Mangalore. Already `100 crore had been invested on the MRO facility in Trivandrum, which by mid-2013 would be in a position to provide and perform “C” checks or minor maintenance. AIE is, in fact, awaiting the approval of DGCA in this regard. Insiders said that some support would be required from the parent company/ Government of India/Government of Kerala. These could be in the form of the Government of India agreeing in principle for AICL to be disinvested in a phased manner. The Government of Kerala could take 26 per cent stake in AICL, while Air India retained 26 per cent stake and the balance could be sold to the public though a combination of bonds/preference shares, etc. Kochi airport, for instance, is also under such a PPP model. The Government of India could earmark `1,000 crore (out of the `30,000-crore package for Air India) to meet the immediate capital requirements of Air India Express. This would benefit all stakeholders: y Travellers from South India to Gulf,

y y

Singapore and Malaysia will benefit from the lowcost, low-fare model of Air India Express. More stations such as Hyderabad and Bengaluru can be added to the Air India Express network. The huge market potential in South India can be tapped, rather than allowing the Gulf/SE Asian carriers to hog the traffic. Air India Express’ footprint can be gradually extended to other markets — domestic and international — where passengers demand is for low-cost airline travel. The disinvestment of AICL will be a learning curve for the Government of India to evaluate the market worth of Air India (assuming that Air India will be a candidate for disinvestment a few years hence)

NEWS DIGEST

ABOVE GROUND LEVEL ¨¨ MINISTRY ALLOWS OWN GROUND-HANDLING The government has allowed Indian carriers to execute ground-handling of their own flights at all the airports. The decision was taken after Civil Aviation Minister Ajit Singh and representatives

SIGH OF RELIEF: Baggage-handling staff at work in one of the airports

of Air India, Jet Airways, SpiceJet, IndiGo and GoAir, airport operators and senior government officials discussed the issue at a recent meeting. A ministry statement said, “The airline representatives initially raised their apprehensions regarding problems they will face after implementation of the proposed policy in terms of increase in the cost of ground-handling and adjustment of their employees engaged in ground-handling operations. They emphasised they be allowed self-handling at six metro airports, on the pattern of non-metro airports.” After taking into consideration views of all stakeholders, a Cabinet Committee on Security note was submitted and it was approved that all private airlines, including foreign airlines, may undertake self-handling in respect of ‘passenger and baggage-handling activities at the airport terminals’ and ‘traffic service including the passenger check-in’, which require passenger interface, at all airports, the Ministry said in a statement.

DIAL RECEIVES ISO 20000 CERTIFICATION Delhi International Airport Ltd (DIAL) has got an ISO 20000 certification for reducing and controlling IT-related threats on its IT service management system. Delhi has become the sixth airport in the world after Dubai, Munich, Abu Dhabi, Incheon and Hyderabad to get this certification. “This confirms our strength on the IT Infrastructure Library (ITIL) processes and procedures. It also establishes

AIR KERALA: TO BE OR NOT TO BE BORN… erala Chief Minister Oomen Chandy has announced that Air Kerala, a state government-led airline will be launched on April 14, 2013 to coincide with Vishu, New Year day in the Malayalam calendar. He disclosed that the only decision that had to be taken was whether the airline would operate its first flight on an international route or a domestic one. Chandy said that the state government would make a formal application to the DGCA in November 2012 for starting its airline. The carrier envisages a preliminary paid-up or authorised capital of `100 crore. The C h i e f Minister

said that under the rules, an airline could fly international routes only after completing five years of domestic service and there was also a clear stipulation of a minimum number of aircraft. In the same breath, he said that it might be recalled that Air India Express was given a relaxation in the rules when it started operations in 2005. So, the Kerala government too would seek similar relaxation. According to the CM, his announcement made in October 2012 was no different from what he had said some years ago in 2004 and later in 2006. But, every time, before he could implement it, the Left Front took over the reins of the state and his proposal was buried. According to Chandy, he expected strong opposition from Air India to his plans but added, “We think the state governments too have rights to start airlines like the national carrier.” He said Air India’s callous attitude towards the Keralaorigin labourers in the Gulf was the main reason and motivation for wanting to launch Air Kerala. In this context he said that the air fares often charged by Air India from Kerala to West Europe was cheaper than that from Kerala to the Gulf. Further, whenever Air India

Oomen Chandy

CURTAINS ON THE DGCA? he big question rolling in the minds of many in the civil aviation industry is: Will the government bring forward a fresh legislation to put in place a new Civil Aviation Policy (CAP) and replace the existing ineffective DGCA by a more purposeful and powerful Civil Aviation Authority (CAA) which has been in the making for more than three years? The optimism regarding these two pieces of legislation-cum-policy instrument arises from the assurance given by the leader of the opposition in the Lok Sabha, Sushma Swaraj, to E K Bharat Bhushan the government that the winter session should be held without break from November 21 to December 23, 2012 or “as usual”. The Bharatiya Janata Party (BJP) has — in a manner — assured that there will be no break or stoppage of

CRUISING HEIGHTS November 2012

Parliament as it did in the previous session of the Lok Sabha. If we go by this assurance, the assertion of the Ministry of Civil Aviation that it will bring forward the relevant legislation/policies in the forthcoming winter session of Parliament, then we can look forward to some momentary changes in the course of the Indian civil aviation industry that, as on date, continues to be guided by the Aircraft Act 1934 and Aircraft Rules of 1937. The legislation and regulatory framework of civil aviation in India is currently provided through Vayalar Ravi these legislation and rules. While both of them have been amended a number of times, they lack the teeth to meet the new challenges faced by the aviation industry. While the Aircraft Act 1934 was last

faced industrial unrest, it was the Keralaorigin flights that got hit — referring, perhaps, to the more than two-month-long strike by Air India pilots in the recent past. The state government has already enlisted the services of Ernst & Young to prepare a report. The capital or initial equity base of the airline could be around `200 crore. As per the state government, it has proposed to float shares of `10,000 each among Keralites in the Middle East. Each of these identified businessmen employing about 20,000-odd employees to raise around `500 crore will not be a problem, said Chandy in his talk with various dailies. In this context, he said that Air Kerala could use the hangar facilities as well as the MRO being operated by Air India in Trivandrum for a fee. Kerala’s Industries Minister PK Kunhalikutty said that it would not be difficult to raise the resources or capital to fund the airline. The state government is also seriously looking at the possibility of FDI now that the government has allowed foreign carriers to pick stake in domestic airlines. It now remains to be seen if the Kerala government will try to rope in one of the lowcost Gulf-based carriers to realise its India ambition. In September 2012, following serious disturbances to AIE flights on various accounts, namely pilot shortage, technical issues etc, Chandy was one who

amended in 2008, the Aircraft Rules of 1937 was amended in early 2012. In 1934, when the Aircraft Act was passed, the major emphasis was on “aircraft” and related issues as reflected in the preamble of the Act: “An Act to make better provision for control of manufacture, possession, use, operation, sale, import and export of aircraft.” There has been a sea change in the aviation industry over the years and the present emphasis is on safe and secure, viable, efficient and sustainable air transportation of passengers and goods. This has been stated in unmistakable terms by the Ministry of Civil Aviation when it called for comments on the proposed new CAP. Over the years, the ministry stated, many additions, deletions and amendments to the Aircraft Act 1934 were carried out by incorporating the provisions of the Chicago Convention relating to International Civil Aviation that was signed in December 1944. With rapid changes engulfing the aviation industry, it was being felt for quite some time that there was need to add new provisions to cover areas like air navigation services, passenger protection, etc that are not

protested strongly at the repeated instances of cancellation of flights operating in the West Asia sector. To top it all, a hike in fares only added to the misery of NRIs from the state. Chandy conveyed to Prime Minister Dr Manmohan Singh about the urgent need for an alternative arrangement and demanded an exclusive airline — similar to the one the state government proposed to launch. This he felt would offer a permanent solution to the travel woes between Kerala and West Asia. Chandy also requested the Prime Minster to accord early clearance to the state’s proposal for starting an airline. However, sources said that the Government of Kerala’s decision to launch Air Kerala and seek Government of India’s permission to fly overseas routes would open a Pandora’s Box in terms of Centre-State relations. International air travel routes are zealously guarded by nations; and the number of flights/destinations served are decided in keeping with the terms of the bi-lateral air services agreements between countries. A similar demand could come up from Tamil Nadu or Punjab or even Gujarat with Gujaratis present in Africa, Europe and further West. So if Air Kerala wished to compete with Air India Express, we could well see a spectacle: there could be an Air Punjab or Air Gujarat competing with Air India.

yet included in the existing legislation/rules. The Aircraft Act 1934 also has a basic lacuna as far as regulation of the civil aviation industry is concerned. Practically all functions, power and duties are vested with the central government as far as regulation is concerned which, in turn, is delegated to a single individual: the Director General of Civil Aviation in the Directorate General of Civil Aviation (DGCA). Alternatively, it could be any other officer specifically empowered in this context by the central government. This is because the Aircraft Act 1934 does not recognise an organisation like DGCA and also does not empower the Directorate to perform the regulatory functions of civil aviation. An individual cannot carry out all the functions — especially certain aspects of collective and broad-based decision-making. The Aircraft Rules 1937 then provided for further delegation of powers of the central government and that of the DGCA to a specific officer of the DGCA. As a result, too much statutory power was and is being provided to an individual. It is totally out of line with modern legislation in other countries where the

CRUISING HEIGHTS November 2012

ABOVE GROUND LEVEL ¨¨ DIAL’s robust ITIL system, adhering to the world’s most respected framework for IT projects, delivery and applications. Our customers’ data, travel Prabhakara Rao information and transactions are more secured all through this structured ISO approach. Thus, eliminating and controlling all ITrelated threats,” DIAL CEO, I Prabhakara Rao said. The continuity of the ISO 27001 certification was assessed and adjudged by the British Standards Institution (BSI) during their annual audit, the statement of DIAL said.

EUROPEAN CERTIFICATION FOR MRO FACILITY European Aviation Safety Agency (EASA) has bestowed certification to the MRO unit of Cochin international airport — Cochin International Aviation Services Limited (CIASL) — for the line maintenance of aircraft. With the EASA authorisation, CIASL will have licence to complete the maintenance work of aircraft of most of the airlines across the world. The permission was for the maintenance work of Airbus 319, 320, 321 classes of aircraft. The MRO unit of CIASL has two standard airdocks with an area of 35000 square feet, and competence to overhaul two aircraft, belonging to A320 and B-737 classes, simultaneously.

AHMEDABAD AIRPORT GETS INFRA BOOST Sardar Vallabhbhai Patel International Airport at Ahmedabad will have a new air surveillance system. The facility will be able to identify various flying objects, even if it’s a bird. According to airport officials, the ADS-B system enhances safety by making the aircraft visible in real-time to the ATC as well as to other ADS-B-fitted planes, as position and

STRONG EDIFICE: An outside view of Ahmedabad airport

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ABOVE GROUND LEVEL ¨¨

MIAL UNVEILS FIRST CORPORATE SUSTAINABILITY REPORT Mumbai International Airport Private Limited (MIAL) recently released its first comprehensive corporate sustainability report, The Sustainability Report 2012, that complies with the rigorous international standards of the Global Reporting Initiative (GRI). With this, CSIA became the first airport in India to report on sustainability. This comprehensive report that follows GRI G3.1 Airport Operator Sector Supplement guidelines, is a first for the Indian aviation sector, and only the second in Asia, to achieve the coveted ‘A’ Level by GRI for its completeness, transparency and stakeholder inclusiveness. Commenting on the occasion, Rajeev

TOWARDS FIRST: Mumbai airport is aiming for sustainable future through carbon-neutral growth

Jain, CEO, MIAL, said, “MIAL is committed to be at the forefront of the aviation industry’s drive towards carbon-neutral growth with the aim of a sustainable future for the industry. This report amongst other things details our corporate responsible business efforts and provides a platform for collaboration and continued improvement as we seek to lead the Indian aviation sector in triple bottom line performance. Going forward, the next step would be to draw a timebound sustainability roadmap for CSIA that addresses the key stakeholder concerns and material issues identified in the report.”

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velocity data are transmitted every second. ADS-B data can be recorded and downloaded for post-flight analysis as well. It also provides data infrastructure for inexpensive flight tracking, planning and dispatch. ADS-B has three main components — transponders fixed in the aircraft, an antenna that gets frequency from the aircraft transponder and a receiver installed at the ATC office, according to airport officials.

SETTING THE AGENDA: Civil Aviation Minister Ajit Singh has pushed the agenda for the formation of CAA

preference has been for collective and broad-based decision-making like a boardmanaged organisation. It may be recalled that when the International Civil Aviation Organisation (ICAO) conducted its audit of DGCA and Indian civil aviation rules and regulations — as did the Federal Aviation Administration (FAA) — they came to the same conclusion that vital regulatory function powers should not be vested in one single individual as is the case now. The government recognised this lacuna but for political reasons and the exercise of power, the respective political heads of the Ministry of Civil Aviation in the past never explored to change this. There was an opportunity when the private sector entered the Indian civil aviation industry and there was yet another chance when a de facto but partial new civil aviation policy got cleared by the Union Cabinet in December 2004 when it permitted private airlines to fly foreign routes. This was followed by a major boom in the Indian aviation industry from 2005, when the number of passengers flying annually on the domestic sector rose annually by nearly 38 per cent before the global meltdown stopped it in late 2008. The first time one heard of the CAA was when the Ministry of Civil Aviation informed the PMO in 2009 that it had put the CAA proposal on top priority. A lull followed and not much was heard about it though a special group had been constituted to deliberate on the civil aviation authority. Even outside experts were asked to give their report about it. In March 2011, the then DGCA, E K Bharat Bhushan (who was TOUGH TASK AHEAD: Civil Aviation Headquarters, Rajiv Gandhi Bhawan will perform a major task to up the ante for the legislation and enactment of CAA bill

CRUISING HEIGHTS November 2012

summarily transferred from the DGCA and Ministry of Civil Aviation for his persistence on securing safety in Indian carriers and a tough stand against Kingfisher Airlines for safety violation) told PTI that the process of setting up an autonomous CAA to regulate all aviation safety issues in India was in the final stages and a Cabinet note would be finalised shortly. He also said that the CAA, which would have administrative and financial autonomy, would also keep a tab on the entire range of activities from proper provision of air traffic services and licensing to financial fitness of airlines. A feasibility study, said Bhushan, to set up the CAA was commissioned in October 2009 in technical collaboration with ICAO to improve the financial and administrative autonomy for discharge

of safety oversight functions more effectively. The ICAO feasibility study was reviewed by the DGCA and the Ministry of Civil Aviation in 2012. The proposal (to set up a CAA) was also endorsed by the FAA, stating it would be in line with the ICAO policy. This was just before Praful Patel was shifted from the Civil Aviation Ministry. His successor Vayalar Ravi, who took over in January 2011, said that the process to set up the CAA was on. After that the proposal was tossed around before the present Minister Ajit Singh took over as the Civil Aviation Minister nearly a year ago. In this one year, the CAA proposal received many comments — following the Ministry of Civil Aviation hosting it on its website in July 2012, seeking comments from the bodies and individuals concerned, legal experts, etc. While it was meant for seeking comments on a new CAP, there was also a reference to the DGCA and its possible replacement by CAA. Before the website of the Ministry of Civil Aviation carried this issue, Minister Ajit Singh told the Rajya Sabha in March 2012 that the proposal to set up a CAA in the place of DGCA was in a formative stage. He said that the CAA would have adequate financial and administrative powers with flexibility to meet the functional requirements for an effective safety oversight system. He mentioned that in addition, it would also have power of economic regulation, consumer protection and environmental regulation. With passenger volumes rising rapidly and the number of aircraft also increasing sharply, the need for such an authority has become imperative.

The Minister told the Rajya Sabha that the CAA would be set up through a separate Act. However, the present legal framework such as the Aircraft Act 1934 will continue to govern the aviation sector. Since then there has been hectic consultation and the Law Ministry has also given its opinion, which included different models envisaging different revenue streams to keep the CAA’s autonomy intact. The proposed CAA will have three wings — safety, economic regulation and grievance resolution — apart from a fullfledged environmental wing. After discussions, a view has more or less crystalised that the government may impose a surcharge of `5 on every air passenger to fund the CAA besides other avenues such as fee for issuing licences, etc. According to one estimate, the new CAA will have annual earnings of `140 crore which will be enough to make it financially independent. A major part of the revenue will come from fees charged for issuing licences besides the passenger levy. Also nearly one per cent of the revenue received for providing navigation services by AAI to airlines may be shared with CAA. In this context, the AAI as well as the Ministry of Civil Aviation has pointed out that the fee charged for providing air traffic control services is quite low compared to other countries and has also not been revised since 2006. Most importantly, the CAA will have full autonomy to hire its employees and decide on the salaries. At present, the appointments made in the DGCA are approved by the UPSC (Union Public Service Commission) which is a time-consuming process, for example, after the DGCA expressed its intention to appoint 400 new personnel as was indicated to it by various teams — which, incidentally, criticised the DGCA — for being grossly understaffed. The CAA, hopefully, will not be asked to route its recruitments through the UPSC and will do it itself and directly. It may be pointed out here that few in DGCA are of the view that financial autonomy by way of offering market-determined salaries to its senior personnel was a must. For instance, it was finding it increasingly difficult to appoint senior pilots on sarkari salaries. Most important of all the provisions is the decision to make the CAA a board-managed entity. Unlike the DGCA, which is around one individual who is also always on deputation from the Ministry of Civil Aviation, the CAA will have one Chairman with a five-year fixed term and an 11-member board. A person with requisite aviation experience — including an IAS officer with aviation experience — can head the authority as Chairman of CAA.

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ABOVE GROUND LEVEL ¨¨ MORE GREENFIELD AIRPORTS OKAYED Government is planning to build 1015 Greenfield airports while modernising 50 others in the non-metro cities over the next few years, in a bid to push aviation infrastructure development in the country. “About 50 non-metro airports are being modernised within the next two years and overall 10-15 new greenfield airports are being planned,” said Civil Aviation Minister Ajit Singh. Maintaining that the civil aviation sector in India was witnessing an annual growth of 9 per cent, he said, “We expect a doubledigit growth in air traffic in the next few years. The government had initiated a major process of modernising existing airports and developing greenfield ones through a mixed strategy of public sector, private sector, joint ventures and public-private partnership to accommodate the growing air traffic.”

INDIA AND AUSTRIA DISCUSS AVIATION TIES A high-powered delegation led by Austria’s Federal Minister for Transport, Innovation and Technology Doris Bures met the Minister of Civil Aviation Ajit Singh. The two sides discussed possibilities of enhancing bilateral cooperation in civil aviation sector. Ajit Singh said that the growth of air services between the two countries would greatly facilitate cordial relationship, connectivity, trade and

tourism. He recalled that the association between the two countries went back to the year 1989 when both the countries had signed an Air Services Agreement (ASA). During the talks India raised the issue of Substantial Ownership and Effective Control of Austrian Airlines due to its takeover by Lufthansa. The Austrian side was requested to clarify the shareholding pattern of the Austrian Airlines. Singh said that the issue had to be resolved through discussions between the authorities of the two countries concerned, keeping in mind the legal and rule position.

PHOTOS: H C TIWARI

NEWS DIGEST

TOGETHER FOR A CAUSE: Civil Aviation Minister Ajit Singh (fourth from left) along with key officials of ICAO and Civil Aviation Ministry at the inauguration of the DGCA conference: (L-R) Arun Mishra, DGCA India; Nancy Graham, Director, Air Navigation Bureau, ICAO; K N Shrivastava, Secretary, Civil Aviation Ministry; Raymond Benjamin, Secretary General, ICAO; Mokhtar A Awan, Regional Director, ICAO; and, Christian Schleifer, President, Air Navigation Commission, ICAO

INDIA FURTHERS COLLABORATION AMONG DGCAs India hosted the Asia Pacific Region DGCA conference after a gap of 15 years. It was indication enough that the country is now an important participant in the international aviation market. A report. fter a gap of 15 years, India once again hosted the 49th Directors General of Civil Aviation (DGCA) Conference, Asia Pacific Region, a fact that highlights the growing prominence of the country as a major international aviation hub. The conference saw 45 nations and six international aviation organisations taking part. The first such conference of DGCAs was held in Manila, Philippines, in 1960. Held every year, it is a major civil aviation event in the Asia Pacific region and provides a regional forum for exchange of views among the Directors General/Chief Executives of Civil Aviation in the Asia Pacific Region. The Conference, themed “Managing Air Transport Growth in the Asia Pacific Region through a Collaborative Approach to Safety, Security and Sustainability”, was inaugurated by the Union Minister of Civil Aviation, Ajit Singh, who categorically stated that the call to suppress aviation growth by reducing its environmental

Perhaps, what was important was the fact that the DGCA conference provided a great opportunity for India to learn from what others were doing to tackle the twin issues of financial viability and airline safety CRUISING HEIGHTS November 2012

impact was not acceptable as a solution (see accompanying box). He asked the aviation community in the Asia-Pacific region to oppose the European Union’s emissions trading scheme (EUETS) taxes on foreign airlines flying over Europe. Implemented in January 2012, the EU-ETS warrants that all airlines, regardless of nationality, would be taxed if they overshoot their emission limits while operating over Europe. There are also stiff penalties (which potentially include being banned from operating in the EU region) should they fail to comply. “We need to facilitate growth of aviation along with finding innovative solutions to addressing environmental concerns. We would request the delegates to oppose any unilateral environment measures imposed by a state or group of states like the EU-ETS and work with ICAO (International Civil Aviation Organisation) to evolve global environment protection on basis of equity

and consensus,” said Minister Singh. The DGCA meet also highlighted the initiatives taken by India to further aviation. To accommodate increasing air traffic, the government had undertaken initiatives to modernise and upgrade the existing airports and develop new Greenfield airports, the Civil Aviation Minister informed. “Twelve new Greenfield airports are being planned. About 50 non-metro airports are being modernised within the next two years. Two major airports of New Delhi and Mumbai have been upgraded. Bengaluru and Hyderabad airports were commissioned in 2008. New airport facilities are ready for commissioning in Chennai and Kolkata very soon,” Singh told the attending Director Generals. Harping on the collaborative approach that was needed to further aviation, Singh said that India was still one of the least penetrated civil air transport markets in the world and “its capacity to grow in the coming years has already triggered a race amongst major global industry stakeholders to be a part of this process. The challenges of dealing with growth and environment are huge but we in India are trying to deal with this in a mature manner. We need the support of developed countries both financially and technologically to address the environmental concerns without depriving the people of India the economic benefits of air transport. India would seek support of all the members to help create a level playing field for the new developing states in the international civil aviation arena,” said Singh. Civil Aviation Secretary K M Shrivastava emphasised that the meet would enhance coordination of civil aviation activities in the region. Perhaps, what is important is the fact that the DGCA conference provided a great opportunity for India to learn from what others are doing to tackle the twin issues of financial viability and airline safety. The aviation watchdogs ranging from Pakistan to Australia and Singapore to Sri Lanka were unanimous in their view that the moment an airline was in financial crunch, it started compromising on safety and, therefore, the issue had to be looked at with care and urgency. “The biggest corners are cut on safety when an airline is in financial stress because there are no returns to be made from that investment. If we happen to find lapses, we hold the person incharge of spending responsible,” commented John F McCormick, Director of Aviation Safety and CEO of the Australian Civil Aviation and Safety Authority.

DELIBERATING KEY ISSUES: Delegates from various countries during the DGCA conference

DGCA TAKES STOCK OF CARBON EMISSIONS The DGCA presented the Carbon Footprint Report-2011 for the Indian aviation industry, in line with India’s initiatives to address the climate change challenge. Compiled for the first time, the report was prepared in cooperation with the major airlines and airports of the country and with the support of the European Union/India Civil Aviation Cooperation Project. The highlights of the report are: The carbon footprint of Indian scheduled airlines for domestic and international operations was 12,704,000 tonnes of CO2; a six per cent increase in comparison to 2010. The carbon footprint of foreign airlines serving international destinations from Indian airports, based on fuel uplift from India, reached 3,623,000 tonnes of CO2. CO2 emissions from Indian scheduled airline operations as well as from foreign airlines to international destinations represent less than one per cent of the country’s total CO2 emissions. This number is significantly lower than the global average contribution of airlines, which represents approximately two per cent of global anthropogenic emissions. In the business-as-usual scenario (that is, no measures taken to reduce emissions), emissions of Indian scheduled airlines from domestic and international operations could reach 27,000,000 tonnes of CO2 by 2020.

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In Australia, apart from the DGCA, there is the Australian Securities and Investment Commission that looks into financial issues across sectors. “If you get to know that an airline is cancelling flights, is facing problems in giving refunds for tickets, paying cash for fuel that it was earlier getting on credit — the last one is the kiss of death — then you take note,” he said. McCormick cautioned that just because an airline was making a loss it did not mean that it was unsafe. “Sabena Airlines made a loss for each of the 70 years that it flew, but it did not have a single crash,” he pointed out. Meanwhile, Sri Lanka’s DGCA and Chief Executive Officer, HMC Nimalasiri pointed out that financial stress could lead to a situation which could hurt the interest of the travelling public. “For this reason, we are now setting up a regulatory regime to look into the finances of airlines from the point of view of safety of operations.” The Director General of the Civil Aviation Authority of Singapore Yap Ong Heng commented: “Financial stress could impinge on safety because airlines may take maintenance of aircraft lightly, that’s is a safety concern. In our country, the AOC has to be renewed annually, so airlines have to go through an audit every year.” The Pakistani aviation regulator, Nadeem Khan Yousufzai was also in agreement with the relationship between financial stress and safety issues. The conference witnessed exchange of information on matters of interest and review work of air navigation planning and implementation regional group; and provided overall guidance, harmonisation and coordination of implementation of standards and procedures.

CRUISING HEIGHTS November 2012

COVER STORY

LAST KING OF

VIJAYNAGAR THE AVIATION BUSINESS HAS SPAWNED ENTREPRENEURS WHO ARE HEROIC, FLAMBOYANT AND FEARLESS AND VIJAY MALLYA IS ONE OF THEM. BUT A SERIOUS FLAW IN HIS CHARACTER HAS ENDED THE GLORIOUS RUN OF KINGFISHER. WHY INDEED WAS MALLYA KEEN TO HASTEN KINGFISHER’S RUIN? WAS IT PURE EGO? CRUISING HEIGHTS LETS YOU JUDGE… ad it been the United States, Kingfisher Airlines (KFA) would have downed its shutters a long time ago. Look at the situation: the airlines shareholders have not got any value for their money; the staff has not been paid their salaries for quite a few months and Kingfisher Airlines promoter Vijay Mallya is content to be traipsing around the world. Simply put, the king of good times is now in, perhaps, the worst time of his life. For a man who does not miss an opportunity to display his wealth, the loss of the billionaire ranking in the Forbes India rich list with his net worth eroding 27 per cent to $800 million this year from $1.1 billion last year must have come as a shock – never mind the fact that he tweeted, “Thanks to the Almighty that Forbes has removed me from the so-called billionaires list. Less jealousy, less frenzy and wrongful attacks.”

THE BEGINNING: File picture showing Kingfisher Airlines Chairman cheering with Indian flag after introducing the inaugural flight

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COVER STORY

If deflection is the best form of defence, Mallya proved once again that he was a master at it. Commenting on the Forbes list, he also tweeted, “I have learnt the hard way that in India wealth should not be displayed. (It is) Better to be a multi-billionaire politician dressed in khadi.” So, it would ultimately be a war between a large-hearted and committed big business house and the politician in khadi (the government). What a comedown indeed! This was the same Vijay Mallya who during the 2008 Farnborough Airshow — when the world was trying to come to terms with the financial crisis — made a grand announcement that he was ordering planes and that he was ready to fly abroad, “I have a huge cash flow available. Even at oil prices of $140 a barrel, we would have been able to break-even.” One wonders where all that “huge cash flow” is gone, thanks largely to his illconceived business plan. One must, however, give the man his due for his never-say-die spirit for even as we go to press, Vijay Mallya was talking to Civil Aviation Secretary K N Shrivastava and the Chairman of the Airports Authority of India V P Agrawal. The reasons seem obvious: Mallya wants to wage a last ditch battle before seeking yet another chance to present a new revival plan. Rewind to the beginning of December 2011. That was when the airline engineered a rapid reduction in the number of flights. In 2012, the airline saw its employees — all types including the pilots and engineers — going on strike. That extreme move was resorted to by the

CENTRE OF ATTRACTION: Vijay Mallya (centre) during a media interaction after welcoming the A380 in 2007, which he said Kingfisher would acquire. Also seen in the picture are Airbus’ John Leahy, COO-Customers and Kiran Rao, Executive VP, Sales and Marketing

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THOSE WERE THE DAYS: Vijay Mallya interacting with former IATA Director General Giovanni Bisignani and Dinesh Keskar, Head, Boeing India

THE DOWNFALL: Kingfisher employees on strike protesting non-receipt of salaries for months in the face of the airline’s financial crisis

One must, however, give the man his due for his neversay-die spirit for even as we go to press, Vijay Mallya was talking to Civil Aviation Secretary K N Shrivastava and the Chairman of the Airports Authority of India V P Agrawal CRUISING HEIGHTS November 2012

employees and the critical workforce of pilots and engineers because they had not been paid for months. While in the case of non-crew employees the salaries had not been paid for more than seven months, pilots and engineers had an outstanding for over four months. An airline can operate without its commercial staff but it cannot do so without the pilots and engineers and this is what led to the strike in September 2012. But even before this happened, Kingfisher Airlines was under serious watch by aviation regulator DGCA (Director General of Civil Aviation) who had said as early as July 2012 that the licence of Kingfisher Airlines should be suspended because of safety violations and its inability to secure safety of its operations. However, at that time, instead of the airline, it was the DGCA who got the boot. Soon we had a spectacle of the new DGCA coming to the same conclusion a couple of months after taking over that Kingfisher Airlines would have to satisfy the regulator about the safety of its operations. It was around this time that industrial unrest — simmering for months — came to the fore. The flashpoint occurred when the pilots and engineers struck work and that eventually led the DGCA to suspend the licence of Kingfisher Airlines in early October 2012. It was only when this happened, did

AT YOUR SERVICE: Kingfisher Airlines Chairman interacted with passengers during the inaugural flight of the airline and a fact that he was proud of

the flamboyant Mallya realise that he could no longer play the game alone. He drafted his CEO Sanjay Aggarwal and Executive Director, Commercial, Hitesh Patel to talk to all the employees right from the pilots and engineers to the other staff members. Subsequently even Mallya who had been adequately humbled by then joined the talks. He gave an assurance to the staff of paying part of the outstanding wages before Diwali on November 13, 2012 and the balance in a staggered manner each month till March 2013. When this happened on October 26, while the suspension order was still on, Mallya and his team submitted a revised plan to the DGCA seeking permission to fly. The regulator, who had been earlier lulled by such empty promises refused to go along. Mallya thought that if he could get his employees — about 4000 of them including pilots and engineers on board — to resume work, he could get his case cleared. But then it was not the employees alone who were not paid: there were others too. Kingfisher Airlines had not paid oil companies, the Airports Authority of India, the banks and even the Income Tax and Service Tax Department. It was because of this the DGCA has decided to get all these “forced stakeholders” to come on board and discuss the possibility

Cut to October 2012. Mallya declared that some businesses do well and others don’t. This was but directed at newsmen who were singled out for taking unintelligent extremist stands. CRUISING HEIGHTS November 2012

NO SHOW AS USUAL: Harried passengers check out the status of Kingfisher Airlines flights after flights were withdrawn; the DGCA’s suspension came later

of allowing Kingfisher Airlines to fly again. Rewind to two years ago when the loans of Kingfisher Airlines were restructured under the so-called corporate debt restructuring plan. Discussions began and by March 2011, the banks had been convinced about the bright future of KFA under Mallya. As part of the debt restructuring, `750 crore of the total outstanding money owed to the 17 banks led by SBI which had funded the airline, was converted into equity. Kingfisher Airlines issued 116 million shares of `10 each at a price of `64 per share. These shares had a lock-in period of one year. But after around 19 months, the banks are in possession of Kingfisher Airlines’ shares the value of which has depreciated 500 per cent. Cut to October 2012. In typical Mallya fashion, he declared that some businesses do well and others don’t. This was not a response to any banker’s queries but directed at newsmen who were singled out for taking unintelligent extremist stands. Mallya lashed out at the media for “unfairly” targeting him since the KFA employees went on strike and the DGCA suspended his licence. According to Mallya, the Kingfisher Airlines crisis had been blown out of proportion by the media and “some companies do well and some do not”. The statement strangely came when Mallya was at the Buddh International Circuit where he had gone to participate in the F1 Indian Grand Prix. In fact, there were fears that his striking employees would lay seige on the Force India (Mallya’s F1 team) enclosure at the race

COVER STORY

NOW, IN THE RED

May 9, 2005: Kingfisher Airlines launches its first flight on the BengaluruMumbai route with A320 aircraft.

June 17, 2005: Announces orders for around 20 Airbus jets, including the jumbo A380.

November 15, 2005: Orders 20 new ATR72-500 aircraft and 30 new Airbus A320 family jets.

February 19, 2006: Kingfisher Airlines wins the 2006 Skytrax Award.

April 24, 2006: Purchases five Airbus A340-500 aircraft.

July 26, 2006: Incurs debt of `942 crore.

December 1, 2006: Suffered a net loss of `240 crore in 2005-06.

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June 21, 2007: Orders 50 Airbus planes for $7 bn.

March 4, 2008 Conferred the ‘5 - Star Airline Status' by Skytrax .

January 6, 2007: Kingfisher Airlines buys 26 per cent stake in Air Deccan.

September 3, 2008: Launches international operations between Bengaluru and London.

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October 17, 2008: Kingfisher cancels order for three A340s. December 27, 2008: Plans to raise 400 million dollars. Continued on page 35

SEEKING DIVINE INTERVENTION: Pandits performed rituals prior to the induction of an airplane in the Kingfisher fleet

venue in Greater Noida. But a clever Mallya managed to buy peace after promising to pay his employees their outstanding salaries. He accepted the employees demand to pay their four-month salary arrears before December 2012. As per that settlement, the employees were to receive the March salary on October 26 or so, the April salary before end-October, the May salary by Diwali and that of June before December 2012. The salary dues of July, August and September 2012 would be paid by March 2013 by when the airline hoped to recapitalise itself. Taking all this into consideration, the airline submitted its revival plan to the DGCA and it was in response to this that the regulator sought a meeting with all those so-called “forced” captive shareholders or should we say stakeholders. If these stakeholders were to raise serious objections, the so-called wage agreement plan Mallya has entered into to buy peace and restart his airline, may go into a limbo. What will happen then? Kingfisher Airlines has accumulated a loss of more than `8000 crore since its inception in 2005 and contracted a debt of over `7000 crore which the banks see no prospects of getting back even if they were to liquidate the assets pledged in lieu of the loan. As for Mallya, he has already gone on record that he would not sell even a part of his thriving liquor business to fund the airline. Passing the buck, as is his wont, Mallya remarked that the government and the present environment were to be

CRUISING HEIGHTS November 2012

blamed for his sorry state. He did not believe in selling family silver to fund the airline when the environment for aviation in India was not conducive. KFA’s predicament, according to Mallya, “Very high fuel cost, obscenely high taxation, lack of foreign investment permission until about six weeks ago, and so many different factors which made the Indian aviation space actually unattractive.” The Airports Authority of India has claimed that Mallya’s airline owed it `269 crore by way of various airport charges and has now in its latest salvo asked the airline not to use the two hangars given to it in Kolkata and Chennai. AAI even refused to allow lessors of some of its A320s from taking back the planes till part dues were cleared which some lessors did before flying their planes out of the country. The oil companies also have their own problems. Even the Income Tax Department has now decided to file a Special Leave Petition in the Supreme Court against an order of the Karnataka High Court which stayed the freezing of bank accounts of Kingfisher Airlines for non-payment of service tax and also not depositing the tax it had collected from employees’ salaries as TDS. allowing in debt does not seem to have dampened the Kingfisher boss. Perhaps, his other avatar — that of the successful liquor baron — prompts him to declare that everything is fine through his PR outfit. Notice how the

Continued from page 34

October 29, 2009: Kingfisher reports a net loss of `418.77 crore.

June 7, 2010: Announces its position as oneworld member elect.

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October 29, 2010: Kingfisher Airlines launches 22 additional flights.

HC TIWARI

CLEARING THE AIR: Kingfisher Airlines Executive Director, Commercial, Hitesh Patel (left) and CEO Sanjay Aggarwal answering media queries regarding the sorry state of affairs of the airline

February 20, 2012: Kingfisher cancels 16 more flights.

September 28, 2012: Kingfisher accumulated losses stands at `8000 cr.

October 1, 2012: Kingfisher Airlines cancel all its flights.

October 4, 2012: Employees of the airline stage countrywide protests.

October 16, 2012: Kingfisher Airlines' employees get IT notices on non-payment of taxes. October 31, 2012: Kingfisher Airlines Chairman Vijay Mallya briefs Civil Aviation Secretary on Kingfisher revival plans.

CRUISING HEIGHTS November 2012

January 10, 2012: Govt rules out any bail out for Kingfisher.

altar of egoistic ambitions.” Is it then Mayday for KFA? There are many who feel that a revival of the airline is possible. One such person is a veteran from the aviation sector Shakti Lumba. He headed Alliance Air and was Vice President with IndiGo. Talking to Cruising Heights, Lumba said that Kingfisher was never run professionally. “It had everything to do with the brand Kingfisher,” he said, and professional managers had little or no say in the operations. Mallya’s only objective was the projection and preservation of the Kingfisher brand and all that it has conjured up over the years — from the attractive cabin crew to the service, etc. Lumba believes that Kingfisher can fly again but it will not be an easy task. It needs a massive infusion of funds and once it gets that, Kingfisher with Mallya will no doubt fly — but for a short while. He reasoned, “After all, Vijay Mallya will not change his style of functioning overnight to start a professional airline.” The only way to make the carrier stable would be to keep Mallya on the sidelines. “Select an executive board comprising both debtors and employees,” said Lumba. With the employees representatives on the board, healthy industrial relations would be ushered in and future strikes would be stymied. And with Mallya nowhere near the day-to-day functioning of the airline, professional managers would be able to follow a proper business plan and do their jobs. n

August 10, 2011: Kingfisher Airlines net loss up by 40.66 per cent.

Kingfisher team reacted when the DGCA suspension came, “We would like to clarify that this is not a cancellation but a temporary suspension which is valid only till such time that we submit a concrete and reliable revival plan to the satisfaction of DGCA.” Read between the lines and what is apparent is that the King expects to regain his empire – in whatever manner possible. Many in the industry believe that the suspension has come as a godsend: if Kingfisher goes down, so will a host of others. And, in a market that is not doing well at all, the prospects become more terrifying. The suspension, then, has become a handle to push everyone — from stakeholders to banks and employees — into line and save the airline. And, to wring out the last bit of compassion from a hostile public, the Kingfisher chief is building his case to a point when he can tell the world, “Well, l tried my best. The government cancelled my flying licence and look at the consequences…” The airline started-off with a business plan that was based on wrong assumptions. In a report in the Mint, Neeraj Monga of Veritas Investment Research of Canada, said that Mallya’s business plan was “based on flawed assumptions of the airline industry”. He was even more critical, “We believe that the ill-conceived foray into the airline business has already cost UB shareholders dearly, and that their ownership of India’s premier liquor and beer assets has been sacrificed at the

Q Q

February 11, 2011: Kingfisher Q3 net loss declines by 39.54 per cent to `253.89 cr.

Compiled by Punit Mishra

AERO ENGINES

‘RR IS WAITING TO START

MANUFACTURING IN INDIA’ Kishore Jayaraman is straightforward and says it as it is. The new head of Rolls Royce in India is confident that going forward, RR will have a greater share of the Indian market. Excerpts from an exclusive conversation: If you review the market today in India, you hardly have anything with the RR logo flying in the country. Yes, true. But it’s not totally true because if you take the IAE…

That’s the narrow-bodied market which is not really your bread and butter… It could have been — in India — you know. But unfortunately for us, if you look globally it made the best sense for Rolls Royce to move away from the narrowbodies and go to the wide-bodies. But from the India perspective, we just sold all these IAEs. IndiGo’s fleet is just maturing and IAE’s service loop is just coming around. So, it has been the best for us in India from the IAE point of view. But if you still look at it, if you take the IAE, 50 per cent of it, we still make it. Even though it’s all Pratt and Whitney now, we still make up the supply chain… so that’s the good thing that is there. Officially, I cannot go out into India and say that

Rolls Royce has formally RR engines on any plane today. But all these have been Rolls Royce designed. Even there are few wide-bodied with the RR logo. There are very limited wide-bodies. If you look at the wide-bodies, I think Jet Airways has some, Air India has some. What happened was that at the first Air India campaign, it was just a competitive bidding between us and our competitor. The competitor got the better of us there. In the case of Jet again, it was a situation where there was a lot of financials. It was a time that was very different for us and we kind of missed that boat. The thing is that it was five or six years back. Unfortunately after that, there has been no wide-bodied for us. Now, there are a few wide-bodies that are going to come up and I think as a company Rolls Royce has always wanted to participate. But with the IAE engines and with the narrowbodied focus and everything like that — when in India there were not so many wide-bodies, not so many international routes — it was very difficult for us at that time to say that, you know, we should have won it. To be honest with you, if I were looking back I would say we should have won it. But then it’s a game where you win a few, you lose a few and I think that was all that was. Overall, you have a great marketshare. The airline industry is such that the manufacturers sometimes join with these engine manufacturers and they create these products that are specific for the markets. So, if you take the Airbus 350, the XWB, the Trent XWB that we have, is pretty much on that flight on all the aircraft. Similarly, you take the A330 fleet — we have over 50 per cent and over 75 per cent of future orders.

CRUISING HEIGHTS November 2012

But the A 380 Qantas incident at Singapore was a big PR hit for you? Like with every mechanical equipment, there are bound to be certain things here and there that happens. I think that’s kind of behind us. Initially, when you have all those things you know, definitely there is a big uproar but I think we’ve solved the problem; we’ve found out all the things in this case. Today, our competitor is going through the same pains that we go through. The V 2500 (International Aero Engines) was a huge winner. Why did you people decide to move out? It was just at the point where we had to make certain business calls and say where we do want to focus. Our order books were pretty solid on the wide-bodies. So, we had substantial market focus on and globally when we looked at the narrow-bodies vs wide-bodies, we had to pick and choose and we said, ‘It works better for us with the wide-bodies.’ But it doesn’t mean that we want to be out completely but we said, ‘Look this engine is developed. We still have the supply chain. A

that I don’t know if it is public knowledge yet or not, but it is something that we are trying to do is form a partnership just like we did on the narrow-bodies with Pratt and Whitney. And basically go out there and say, ‘Let’s develop a more efficient and a better engine, beyond this generation and completely new. Think differently.’ So what the outcome of it will be we will only know three-five years (from now).You’ll find that on the narrowbodies, single aisles for some time to come. We probably won’t participate. That’s a hard fact. That’s the truth. But then we look at the international sector from India going overseas. We look at the intercontinental, we look at the regional jets, and we look at the corporate jets. I think those are the sectors we’re going to focus on.

STATE-OF-THE-ART: The first jet engine to be made entirely from Lego by Rolls Royce

lot of pieces are still made for the 2500s.’ But I think our thing was to get into the next generation of the narrow-bodied engines. So in the next 5-10 years, while in the wide-bodied market we focused on it, executed on it. When the next generation comes out, we will be ready for it. I think that was the thought process. But you have missed the Neo. Neo? So, we are working on something

How is it in defence? Well, (in) defence we have you know, the biggest order we have today is with HAL, that’s the Hawk trainers. That’s a good one. With HAL, our history goes back to 1956 and technology transfer, licensing and they make the Jaguar engines here and they repair it. So, Jaguars are very prominent. I think if you take the Jaguars out, we are into the Hawk trainers. That’s the latest with BAE systems.

CRUISING HEIGHTS November 2012

So that’s a second big one. The third big one in Defence will be the C 130s Lockheed. So, there’s six of them coming into the fleet. These are the three areas we are in but apart from that we partner with Northrop Grumman. We have all these helicopters and all these products of Northrop Grumman. We have a very solid base with them. We are looking at some opportunities there. We are looking at some helicopter deals. There are some helicopter opportunities in this country. You know light-utility helicopters and several others. We have good engines for all of these. We are trying to figure out how to participate. We want to look at the helicopter section and then see what we can do in terms of working together with DRDO, working together with HAL. We are trying to come up with a futuristic product. That is one of the areas I am seriously thinking about — how should we partner with local organisations and build something up for the future locally? We are trying to figure out how to do it on a country-to-country basis, company-to-company basis. There is one end, which is a transactional end of things, where you sell what you have already, into the market. Then there is a mid-end of the market, where you fit a product to a specific requirement, which means you have to make some modifications. Then the third end of it is creating a product by itself. So, I think the third end of things has a lot of benefits in the long term in a country like India. Because eventually people are just going to say, I want to do it here; I want to invent it here; I want to make it here. And I think there are opportunities here and because Rolls Royce being a technology and innovation company, it helps us do those kinds of partnerships. I don’t have anything to say to you today but there are a few opportunities that exist that I’m looking at and if those fructify, we’ll have a very interesting conversation next year. Are you looking at JVs? We will undoubtedly be looking at them. On the civil side we have a 50-50 JV. We are doing it with HAL. We signed an agreement to do it together, to manufacture parts out of Bengaluru, for civil aviation. This was in 2010. We signed the agreement to do this joint venture to build it. It is in progress. So I think we should soon be able to announce something, which says that we’ve built it and it’s manufactured. It’s doing components for engines. That is correct. And what we are Continued on page 38.

AERO ENGINES Continued from page 37

waiting for is — you know it was just an agreement that was done before. Now we are waiting for the time we can formally open it. So, we are waiting for that day when we open the doors for manufacturing in this country. It’s all indigenous, so that’s a good thing. Other companies.... Definitely. I keep talking to Tatas. I am talking to Mahindras. The other day I met Mr Ajit Singh (Civil Aviation Minister). I was talking to him about what would be the thought process in civil aviation in this country in the future. And he was talking about the regional jets and Mahindras bought Gippsland. So, I think we have an opportunity there with our product already being able to fit. Can we expand that and take it to the next level? There are opportunities because what the country is looking for at the next stage is beyond just the narrow-bodies and the wide-bodies. Those become our transactional planes. But then we will be able to do something and I really want to be a part of that if I can... to do something in terms of localisation, building capabilities, capacities and partnerships here. I think that’s what positions us in this country for the next 5-10 years. The future is not in just selling. You have 850 engineers in Bengaluru... It is all for civil aviation, defence, energy. I’d say primarily civil aviation and energy — very little of defence. It’s not a campus. We are doing it with two other companies, TCS and Quest. Basically, they work exclusively for us and they are doing requisition, design engineering, application engineering and components. Build-to-Print drawings — all the stuff for the global product. It is one of the biggest hubs, yes. Like everybody else, we are no different. We are in Whitefield. So, that should be no surprise. But it’s something that has quietly grown and I think it is a valuable investment for us in terms of the back office, in terms of getting knowledge. We are trying to figure out how to do more knowledge processing. It’s very similar to GE. We are probably a little bit behind in the evolution phase. If you take GE, they started in 2000 and I think we started around 2005. I think in the last two-three years we have ramped up. I think it is our ambition to take it past 1000 as quickly as we can. There is a lot of enthusiasm. It will take some time to get there but we will be there. It’s part of the plan.

PURE POWER FROM PW READY TO ROLL & Whitney recently completed ¤testPratt the assembly of its first engine to (FETT) for its PurePower PW1100G-JM engine — the first engine to power the Airbus A320neo aircraft. The occasion was celebrated at Pratt & Whitney’s West Palm Beach facility, with a Last Bolt Ceremony, which was attended by the company leadership, Airbus, MTU, Japanese Aero Engines Corporation (JAEC) and employees. The full engine is scheduled to begin testing soon at this facility. Speaking on the occasion, Airbus Senior Vice President, A320neo family, Klaus Roewe, said: “The PurePower engine is an integral part of the Airbus A320neo family of aircraft. We continue to work closely with Pratt & Whitney to integrate the engine with the airframe, and we look forward to reviewing the initial test results from this first engine to test.” The PW1100G-JM engine test

programme will run a total of eight test engines over the next 24 months. Test engines will be built both at Pratt & Whitney’s West Palm Beach and at Middletown facilities and their entry into service is scheduled for October 2015. The engine, rated at 33,000 pounds of thrust, is the third member of the PurePower PW1000G family of engines to begin testing. The 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 fuel efficiency and environmental benefits. Pratt & Whitney’s PurePower engine family testing recently exceeded 3,700 hours and 11,000 cycles of full engine testing. “Pratt & Whitney’s Geared Turbofan architecture is revolutionising the single-aisle marketplace with game

GE STARTS ADVANCED MILITARY ENGINE TESTS GE Aviation, ¤Adaptive under the Versatile Engine Technology (ADVENT) programme with the US Air Force Research Laboratory, has begun testing the advanced-technology jet engine’s core. In a recent announcement, the company said that THE REVOLUTIONARY ENGINE: The Adaptive Versatile Engine the test demonstrated Technology (ADVENT) engine being core tested GE Aviation GE’s most advanced core propulsion technologies, including lightweight ceramic matrix composite (CMC) materials, which are part of a programme that will result in a 25 per cent improvement in fuel efficiency, a 30 per cent increase in operating range and higher thrust compared to today’s fixed-cycle engines. The ADVENT programme is scheduled to conclude in 2013 with a full engine test. GE will continue to mature the ADVENT technologies through the US Air Force’s Adaptive Engine Technology Development (AETD) programme, which will conclude in 2016. Unlike fixed-cycle engine architectures powering today’s aircraft, variablecycle architectures are designed to operate efficiently in a wide variety of conditions, including both subsonic and supersonic speeds. GE’s design includes a third stream of air that is used for maximum fuel efficiency and provides heat management advantages.

CRUISING HEIGHTS November 2012

changing benefits — reduced fuel burn, emissions, noise, and operating cost. We are confident the Geared Turbofan is the best value proposition for our airline customers,” said Paul Adams, Senior Vice President, Operations and Engineering, Pratt & Whitney. “Our technology readiness execution for this engine family

is robust. We’ve proven its benefits with extensive rig, ground, and flight testing; and, we are excited to begin the A320neo test programme.” “Pratt & Whitney is very proud to have the lead engine to enter service on the Airbus A320neo aircraft,” said Greg Gernhardt, Vice President, PW1100G-JM

POWER MACHINE: Pratt & Whitney recently completed the assembly of its first engine to test (FETT) its PurePower PW1100G-JM engine, the first engine to power the Airbus A320neo aircraft

engine programme, Pratt & Whitney. “We have achieved excellent market acceptance of our Geared Turbofan engine with announced orders for more than 1,100 firm PW1100G-JM engines with 11 customers. The PW1100G-JM engine for the A320neo family reduces fuel burn by about 15 per cent compared to today’s A320ceo family, and it is well positioned to support Airbus in this market segment.” In September, 2011, Pratt & Whitney, JAEC and MTU Aero Engines AG had announced that they would collaborate to provide the PurePower PW1100G-JM engine for the A320neo programme. The “JM” designation in the engine name recognises JAEC and MTU’s participation. Under the collaboration agreement, MTU is responsible for the low pressure turbine (LPT) and participates jointly with Pratt & Whitney in the high pressure compressor (HPC). JAEC is responsible for the fan, low pressure compressor (LPC) and combustor/diffuser. Pratt & Whitney is responsible for the remainder of the engine and systems integration.

NO PROBLEMS IN GENX JET ENGINES THAT POWER BOEINGS Following a second failure of the ¤freighter GEnx jet engine after a Boeing 747-8 aircraft aborted a takeoff in

from happening again,” Rice said in an interview with Arabian Business. The US National Transportation Safety Board said that no cracks were

“We think we have exactly the right inspection process, which will ensure that if the procedures are followed we Shanghai, China, in September, pressure won’t see another incident,” Rice said. is mounting on GE, the “We also made a change in our biggest maker of powermanufacturing process to go to generation equipment, and a treatment that was more Boeing Commercial Airplanes environmentally responsible,” to address defects in the he added. “The prior treatment former’s GEnx engines that had involved a lead based power Boeing’s 787 solution and we wanted to Dreamliners and 747-8 cargo eliminate that because from jets. the environmental perspective, The Shanghai incident was lead is something you’d rather preceded by an engine failure not use if you don’t have to. in July on a 787 Dreamliner Removing that created a jet being tested before weakness in the part that is not delivery in South Carolina. acceptable, so the fix is According to reports, relatively straightforward, investigators are concerned which is to go back to the old with the engines’ low-pressure process, which has been turbine. proven for thousands of MOVING WITH FORCE: A Boeing 747-8 powered by the GEnx jet GE was confident that it engines in service.” engines that were recently subjected to inspection had solved the problems The GEnx family of related to the engine failure of the GEnx found on the 747-8 freighter, while a engines, which uses new technology and that powered the 787 Dreamliner, the review of the pre-delivery engines lighter materials, is the fastest-selling company’s Vice Chairman John Rice revealed a GEnx engine installed on a engine in GE Aviation history with more said. “We think it’s resolved. We think 787-8 airplane that had not yet flown than 1,300 engines on order, according that the inspection process will keep it had a cracked fan mid-shaft (FMS). to the company’s website.

CRUISING HEIGHTS November 2012

CH SPECIAL

MARUHABAA

TO MALÉ Developing the Ibrahim Nasir International Airport is no mean feat but the GMR consortium that won the bid is well on its way to completing the project on time. A report. he big glass windows of Andrew Acquaah Harrison’s corner cabin at Malé airport do not look out on the Indian Ocean — the cityside of the airport is virtually on the ocean — but at the ongoing construction of the new airport. Harrison is the CEO, GMR Malé International Airport Private Limited (GMIAL) and is in love with the Maldives that he refers to as “the most incredible place on earth” (see accompanying interview). But much as he would love to soak in the sunshine and swim in the crystal clear waters, every time he looks up from his work table Harrison is constantly reminded of the work he and his team have to complete and deliver to the people of Malé by 2014. Ever since the change in the government — since February this year — the airport has been in the eye of a storm. An optimistic Harrison believes that things will be sorted out and the airport will be completed in time for a grand opening. The new airport project is a publicprivate partnership of the Maldivian government and GMR Group (promoters and operators of the Delhi and Hyderabad International Airports in India) and Malaysia Airports. The consortium’s aim is to develop Ibrahim Nasir International Airport (INIA) into a global standard airport by 2014, having got a lease to maintain the airport for 25 years. GMIAL is the company that has been registered for the implementation of the project. The task is indeed formidable. The Maldivian economy that virtually runs on tourism needs an airport that cannot only accommodate many more tourists but also

Continued on page 42.

40 CRUISING HEIGHTS November 2012

“AN ISLAND RESORT TERMINAL IN THE MAKING” Andrew Acquaah Harrison, CEO, Ibrahim Nasir International Airport, Malé, has his work cut out. The new airport terminal has to be ready by 2014 and once it starts functioning, it will hopefully boost the country’s economy, he tells Tirthankar Ghosh

How has your stint in Maldives been? Let me start by saying the Maldives is one of the most incredible places on earth. One for its natural beauty, two for the hospitality and the caring nature of the Maldivian people and three for the fact that it offers an experience that’s incomparable to anywhere else in the world. So from that perspective the Maldives is doing very well.

How did the work on the airport start and how is it progressing? GMR and Malaysian Airports won an international competitive bid to manage the airport and develop it under a concession for 25 years with an option for a further ten years. So we’ve formed a joint venture company where GMR is the majority stakeholder in the company and our brief is to improve the current facilities to a standard that will be compatible with the resort experience that people have when they come here. Secondly, to build a brand new terminal that will open in 2014 and take our capacity from today’s capacity of some 2.8 million to a capacity of about 5.5 million — by the time the terminal opens. So that’s where we are going in terms of capacity but more importantly we are going to design an airport that is unique to the Maldives — an airport that

reminds people that they are in the Maldives, from the moment they land to the moment that they actually take off.

Your brief includes restructuring and revamping the old terminal. How far have you progressed? We took over the management of the airport on November 25, 2010, and under the concession agreement, we were supposed to enhance the airport’s processing capacity. So what we have done is put in an additional two X-ray machines for entry into check-in, extension of the reclaim belts and additional check-in desks. We had a budget of somewhere just under $4 million. However, these are processing enhancements. As with any airport privatisation, the expectation levels of the general public are very high and people expect immediate results. While that expectation is somewhat unrealistic, we at the same time have to do something to meet a reasonable expectation level of the consumers and the public. So we decided to focus on not just the processing enhancement, but also the ambience and the aesthetic appearance of the airport. So I’m pleased to say that today we’ve crossed a budget of over $11 million and many more enhancements are being made to the airport than that was originally expected or called for. Those enhancements essentially improve the ambience, the aesthetic feel… but we’ve also extended and expanded areas of the airport

THE BEST IN THE WORLD: An artist’s impression of the new airport terminal that is being constructed at Malé; and, (left) Andrew Acquaah Harrison, CEO, GMR Malé International Airport Private Limited (GMIAL)

so that we can deal with growth between now and the opening of the new terminal. Now, a lot of people say, “Why spend so much money when the terminal has a service life of only two years?” Well, it’s because we believe that the experience in the Maldives is so unique — from a resort experience, from a hospitality experience — that the airport as we inherited it, really did not match the experience or the expectation level that people would have coming here. Given the type of benefits that we have brought, both GMR airports and Malaysian airports, to the airports that we manage in our various portfolios, the standards that we expect are very high and we expect no less here in the Maldives.

When do you expect to open the new terminal? We are scheduled for opening in the summer of 2014, so somewhere around July 2014 in line with the concession agreement. We have started construction and effectively we are ahead of schedule with the construction. We have had a temporary stop-order, a temporary suspension of construction while some issues related to approvals are being resolved but even with that stop-order there is a period of time in which we still have a buffer since we are ahead of schedule. So, we are very confident that we will be able to open the terminal on time, in summer 2014 once approvals are issued. Will the work be completed on time? What will be so unique about this terminal? Yes, it will be and, perhaps, I can give you some examples. We wanted to capture the essence of the natural beauty of the Maldives. So we took our designers to a resort and got them to stand on a jetty at the resort. The idea was to look out and catch a typical view that a consumer would see when he’s standing on a jetty.

And what you see is the blue of the sky, the azure colour of the waters, the wooden colour of the deck which they were standing on, the white colour of the sand, the green of the vegetation. And we wanted to see how that can be replicated in the new terminal. We didn’t want the standard international terminal, you know, the four-box design. No, we wanted something unique. So you find the walls of the new terminal mimic a colour of the coral and the sand. You’ll find we are using wood flooring and sustainable wood and this is where some of the eco-credentials come into play. About 70 per cent of the facade of the building will be glass because how do we create the blue of the water and the blue of the sky? Actually, put a big window there and the results will speak for themselves. What that’s also allowing us to do is have tall, high ceilings which will allow efficient circulation of air and reduce our cooling requirement because we have glazing that reduces heat gain within the terminal as well as the loss of cool air. We’ve taken a decision to spend more money and equip the terminal with LED lighting because LED lighting uses less energy, has a longer lamp life, service life and requires less maintenance. So although the acquisition costs are almost one and a half times that of traditional construction material, in the long run it will pay off and from an environmental stand point it’s much better because the energy consumption is lower. We are looking at options such as deep sea cooling for air-conditioning of the terminal. So, (we are using) non-traditional methods of providing conditioned air to the terminal that would utilise what we have in the environment that’s around us. Waste management for example, for the first time ever we will move into an environment where we will use compactors for waste management. We segregate waste at

CRUISING HEIGHTS November 2012

source. So these are all different types of initiatives that we are undertaking as part of this project.

Who are your designers? For the designers we have Mott MacDonald, a very reputed design firm. IDA are our architects for the terminal. They’ve done a number of international projects. So they are the architects for the project. Construction is being done by GADL which is GMR Airports Development Limited because today we have developed the capability of constructing ourselves. So we have a division within GMR that does construction for us.

How big will the new terminal be? Essentially the new terminal is three-and-ahalf times in size of the existing terminal. In today’s existing terminal, at most, we can accommodate about eight aircraft at a time whereas in the new terminal we will be able to accommodate easily around about 20 aircraft at a time. The new terminal will offer hydrant refuelling for the first time, rather than refuelling trucks going around. Secondly, we will have aerobridges on five of the parking bays. Today we don’t have aerobridges at all. And we will have fixed electrical ground power. Environmentally, aircraft don’t need to use auxiliary power units when they’re on the ground for turnaround. These are all features for the new terminal.

What are kinds of aircraft that you are handling today? Well today we can accommodate any aircraft with the exception of Airbus 380. For the Airbus 380, we are putting safeguards in place so that in future expansion can take place to accommodate a A380 on one parking position because we don’t envisage that Malé will be a destination for a large number of 380s.

CH SPECIAL

FUTURE READY: A bird’s eye view of the Male airport once it is completed in 2014. Note the parking of the seaplanes

Continued from page 40.

be world class. The 190+ tourist resorts — each one of them comprising an island — that the country boasts of are now opening up to welcome not only the rich and the famous, for which they were well known, but also the common tourists from all over the world. And when the GMR consortium won the bid to revamp INIA and put up a new airport, Harrison took charge. He was a battle-scarred veteran marshalling his forces to complete the much-acclaimed T3 of Delhi in a record period of 37 months. The present delays notwithstanding, Harrison is confident that everything will work out fine. The airport’s construction apart, GMR is well aware of its responsibility to the Maldives. The CEO put it rather aptly when he said: “We recognise that as temporary custodians of a national economic asset, this airport is a gateway to the Maldives both from a passenger and a cargo perspective because the economy is dependent upon imports.” All the produce that goes to the resorts like the perishables are all imported and “most of it actually comes in by air”. The airport has to function to ensure that the resorts receive stuff that is fresh and exotic. It also helps further the country’s fish exports. “We need to ensure that we can cater to those,” said Harrison and pointed out: “GMR’s value is the ability to bring funding solutions, development solutions and a long-term commitment to the economy and society that we are now a part of. I, therefore, believe that GMR is one of a number of companies playing a very important role in the Maldives.” Perhaps, more important is the fact

GMR’s task is indeed formidable. The Maldivian economy that virtually runs on tourism needs an airport that can not only accommodate many more tourists but also be world class CRUISING HEIGHTS November 2012

that the airport’s construction has created employment. Said Harrison, “This is the largest single investment in the history of the Maldives. It is also one of the largest single employers in the country. Today, we have 1750 employees working for us. That’s more than we as GMR employ in Delhi or in Hyderabad because here everything is managed by us with the exception of the regulatory functions such as immigration, Customs, security, Air Traffic Control and flight catering. All other airport-related activities are done by us…” In addition, the management of the airport, fuelling operations, ground handling and passenger handling is done by the GMR consortium. “That’s how we inherited the airport when we took over the management,” said the CEO, and added, “and so we’ve decided it’s important that our employees continue to have growth and development opportunities that prepare them not for just their roles in airports but also for roles outside this company, should they choose to work elsewhere in the economy.” In addition, GMR also sponsor ten Maldivian students for higher education in India — degree course studies mostly in engineering — every year. The only condition that is set upon them is “they return to the Maldives to work within the Maldives economic system for the benefit of the Maldivian economy. These are the type of commitments that we make because it’s not about the airport succeeding but the economy succeeding,” said Harrison with emphasis, “because if the economy succeeds then we will succeed. We cannot succeed in a failing economy.”

FOCUS ON â&#x20AC;&#x2DC;COPTERS P46

P46

Stingers for India

Chopper-borne AEW

The US has offered to sell Stinger missiles for the AH-64 Apache gunship

The Indian Army has issued an RFI for chopper-borne early warning systems

Heli-anchors at the races Choppers are versatile platforms for civilian aerial photography as they provide a unique aerial perspective of the action on the ground. From the 2010 Commonwealth Games and the F1 Grand Prix, to Bollywood movies, helicopters have been used to capture the moment for film from the air. istory was made on October 30, 2011, as India hosted its very first Formula One World Championship. This year teams from all over the

world burnt the rubber at the 2012 Grand Prix Open on October 28, 2012. Tens of thousands of locals and tourists flocked to the Buddh International Circuit in Greater

Noida, near Delhi, to catch the excitement of the worldâ&#x20AC;&#x2122;s most famous car race; while many more millions watched the action unfold on TV around the world.

SLATTERYHELICOPTERCHARTER.COM.AU

EYE IN THE SKY: Aerial cameramen provide a unique perspective of the action on the ground

CRUISING HEIGHTS November 2012

FOCUS ON ‘COPTERS Choppers at F1 races

NEED FOR SPEED: Helicopters at the F-1 races are capable of keeping up with the speeds of the supercars

t is not only for news gathering and surveillance that choppers have been used in the F-1 races. In no area has the sport changed as much over the years as that of medical provision. As late as the early 1980s, medical facilities at many

Grand Prix events were shockingly poor by modern standards. Now, it is one of the top priorities at every race. Mobile response teams include four salvage cars (S-cars) and two rescue cars (R-cars) as well as two extrication teams based around the circuit of the races. Hospitals in the vicinity of the race are also kept on stand-by with the intention that very serious injuries can be transferred to them. In order to hasten the transfer of any injured driver to such hospitals a MedEvac helicopter manned by a doctor, two paramedics and a pilot is ready to fly at all times. Another helicopter is kept ready outside the circuit and four additional ambulances are posted around the race track. In fact, the race cannot go ahead if conditions are such that a helicopter cannot take off from the circuit or land at the hospital, due to fog or inclement weather. One unusual precaution taken for the Monaco Grand Prix is that in addition to the usual track marshals, medics and doctors, several divers are present in case a driver crashes into the harbour and needs rescuing. For these reasons Formula One racing is vastly safer than it used to be, and medical provision is infinitely better. This year Eurocopter AS350 B3 of Pinnacle Air was flying above the circuit covering the race with aerial shots that mesmerised and captivated the TV audience. As demonstrated at this widely-televised world sporting event, aerial filming

certainly helped enhance the overall viewing experience. Large-scale sporting events such as the New York and Paris Marathons and Tour de France have been using helicopters for aerial filming for many years now. Both the Indian Grand Prix (2011 and 2012) and the 2010 Commonwealth Games saw the deployment of helicopters — viewers were treated to an amazing bird’s eye view of the action, as it happened. Aerial filming has become a “staple” in Hollywood movie-making, and it is evident that Bollywood directors have also taken a liking to the use of helicopters for those spectacular aerial shots that give movies the extra dimension. And for the newsmaker or documentary director,

CRUISING HEIGHTS November 2012

helicopters have become an almost indispensable tool for sensational breaking news or breathtaking aerial views. In this day and age where the public expects “live” coverage and breaking news at their fingertips and films with high standard of cinematography, what the helicopter does in producing such results, has been treated as a “given”. Aerial filming can indeed become a “given”, as the advanced technology of helicopters and the state-of-the-art equipment available today have made aerial filming not only safe and cost-efficient, but are also capable of producing high-quality and stable images. The benefits of aerial filming have been most evident in the widespread use of

FOCUS ON ‘COPTERS Dropping-in in style n addition to their medical and ENG applications, choppers are also being used for transport to F-1 races. What better way to beat the traffic snarls on the way to the site of the race than to fly to the venue, to

say nothing of the glamour quotient attached? Operators around the world offer services to the venues of the F-1 races. In fact, these chopper services are quite sought after and major operators have already advertised their schedules for the 2013 F-1 season.

helicopters for electronic news gathering (ENG) services. High-tech heliborne ENG services have become an essential source for today’s leading news agencies and reporting departments the world over for source video, live news coverage, broadcast quality documentation and breaking news situations. When a natural disaster strikes, for example, viewers have seen how fast the international news channels and agencies have been able to produce breaking news not only through local correspondents’ reports, but also through aerial views of the location to supplement the viewers’ understanding and awareness of the situation. News agencies in developed markets such as the US, Europe and the Far East

have been using aerial footage from helicopters for a long time. The use of helicopters for daily news coverage has provided these news agencies the crucial edge in today’s growing and competitive news gathering market. Even developing helicopter markets such as Brazil have seen an increase in the use of helicopters for such purposes, where aerial shots are great complements to video coverage on ground. One of the most popular ENG helicopters in use today, is the Eurocopter AS350 from the “Ecureuil” family. This rotarywing aircraft can be fitted with fully High Definition, vibration free, gyro-mounted cameras to get crystal clear images without any disturbance, and has a competition-beating 3.5 hours of flight endurance

CRUISING HEIGHTS November 2012

while fully equipped. Besides offering its passengers a very comfortable ride, the cabin is also highly flexible to be altered for different needs as the situation demands, providing a convenient work environment for on-air live situations. When the camera is not fixed on the skids or airframe, the large sliding doors can be opened in flight for the photographer or videographer. These flying machines from Eurocopter are armed with the latest STARFLEX technology, which ensures low vibration level, thus resulting in a shake-free shoot for the cameraman. The large flat-floor open-space cabin in the Ecureuil helps in enhanced visibility and clutter-free shooting experience for the crew. Ecureuil helicopters are also known for the lowest operating and maintenance costs involved in operating it. The Ecureuil choppers also have the added ability to operate and make film shoots possible at extremely high altitudes and extreme temperatures. Wether it be hot, humid or even cold environments, the Ecureuil is able to still operate safely and reliably. India’s vast territory and landscape certainly makes the use of helicopters for ENG services a necessity. With the recent successes illustrated, aerial filming should be a “given” in no time.

FOCUS ON ‘COPTERS ARMY TO GET ATTACK CHOPPERS

COPTER-BORNE WARNING SYSTEMS FOR ARMY

ECUADOR TAKES DELIVERY OF FIRST TWO FENNECS

a call on the long¤ArmyTaking running feud between the and the Air Force, the

Eurocopter delivered the ¤helicopters first two AS550 C3 Fennec to the Ecuadorian

Defence Ministry has decided to allow the Indian Army to have its own fleet of attack helicopters. Defence Minister AK Antony gave the approval to the Army to create its own fleet of attack choppers after the involvement of the National Security Adviser Shiv Shankar Menon. Menon had conferred on the issue with Army Chief General Bikram Singh and his IAF counterpart Air Marshal NAK Browne. India, at present, operates two squadrons of Mi-25 and Mi-35 attack helicopters. These are flown and maintained by the Indian Air Force under the operational control of the Indian Army.

Ministry of Defence under a contract signed in 2010 for seven of these helicopters and two AS350 B2s, which were delivered in December 2011. The contract contemplates delivery of two Fennecs per year until 2015. In India, the Fennec is one of the helicopters in contention for the 197-chopper deal worth `3,000 crore for the replacement of Chetak and Cheetah choppers flown by the Indian armed forces. The procurement of these 197 helicopters is to be followed by indigenous manufacture of 187 similar ones by HAL. The Eurocopter AS 550 C3 Fennec is pitted against the Russian Kamov Ka-226T Sergei in this competition.

The Indian Army is planning to procure helicopter¤border borne early warning systems for the surveillance of areas. The new systems will provide commanders with information about the activity in enemy territory while serving as warning systems for oncoming aircraft and armoured units. These early warning systems will act as valuable force multipliers in the battlefield. The involvement of the Indian private sector in the programme is being considered and the Army is in the final stages of ordering the novel system. Although the Air Force operates aircraft-based early warning systems, the Indian armed forces need to plug a gap caused by the dependency on helicopter-borne systems that are imperative for close-in, ground combat situations where enemy armour and helicopters operate.

S-76D GETS FAA TYPE CERTIFICATION STINGERS FOR INDIAN APACHES

The American Federal ¤(FAA) Aviation Administration has approved the Type Certificate for the S-76D helicopter, moving the aircraft forward to its delivery into the medium-sized marketplace. The S-76D helicopter has a current backlog approaching a half-billion dollars and is expected to begin deliveries later this quarter. There have been more than 800 S-76 helicopters delivered to the global fleet since 1979, contributing daily to a growing six million-plus flight hours. The S-76D’s standard equipment features are all-composite main rotor blades; Thales-integrated avionics; and powerful Pratt & Whitney Canada PW210S engines.

United States has offered to ¤theThe sell Stinger missiles to India for Apache choppers that are being sourced from Boeing. According to officials from Raytheon, the manufacturer of the 245 Stinger air-to-air missiles and 56 launchers are included in the weapons package for the Apache helicopters. Indian Air Force chief NAK Browne had confirmed recently that India had selected the Boeing-made Apache AH-64D for its requirement of 22 attack helicopters, which will have both air-to-ground and air-to-air roles. Surface-to-air version of the Stinger missile is widely credited for the collapse of Russian helicopter fleet in Afghan war in 1980s.

CRUISING HEIGHTS November 2012

The Ecuadorian orders are part of the plans to progressively replace their Gazelle and Lama fleet, some of which have been in service for several decades. The Ecuadorian armed forces were one of the first armies in Latin America to integrate Eurocopter aircraft into their fleet, and they now have more than 20 Eurocopter helicopters, including two Ecureuil AS350 Bs, two Ecureuil AS350 B2s, three SA315 B Lamas, two SA316 B Alouettes, seven SA342 Gazelles and five AS332 Super Pumas. The new Fennecs will perform a wide range of missions including rescue, reconnaissance, drug enforcement and border patrol.

BUSINESS AVIATION

LIGHT JETS WILL INCREASE MARKET, ACCELERATE ECONOMY

Private jet service provider Invision Air has found that a large part of India’s future growth will come from the hinterland. However, at the moment, connectivity to these destinations is extremely poor. With the entry of light jets into the market and unique deals of the kind offered by the company, the market size will increase, resulting in the economy’s growth. ndia is the 15th largest business jet market in the world by fleet size (138 business jets) and the largest business jet market in Asia. The future is poised for tremendous growth and the reasons are many. The sky route for travelling from metro cities to Tier II and III cities might be extremely smooth through commercial flights, but, again, results in wastage of time. In addition, accessing remote places and the hinterland, where there are no airports but just airstrips, but hold tremendous value for corporates and luxury travellers, is challenging. Come in providers of business jet services. One such service is provided by Invision Air, which has made places like Birwa in Madhya Pradesh, Pantnagar in Uttarakhand, Nashik in Maharashtra, or Dharamsala in Himachal easily accessible from major cities. The entry of light jets in the market of the kind used by Invision Air — two twinengine Embraer Phenom 100 jets (a Phenom 300 that will be added to the fleet later this year) — will increase the market

GOING NEXT LEVEL: A Phenom 100 aircraft belonging to the Invision Air fleet

size by making private jets more affordable. As for airstrips that cannot be reached by the jet, Invision Air provides accessibility with turboprop aircraft through its partners. The company claims that India’s economic growth is resulting in the creation of a large target market, comprising owners/promoters of medium to large businesses, top management (level 1 and 2), professionals (lawyers, doctors, specialists), PE/VCs and bankers, high-end tourists, celebrities, etc., whose time is at a premium. They need to travel within the country to metros as well as smaller cities. In addition, a large part of India’s future growth will come from the hinterland. According to Vineet Phatak, Managing Director of Invision, the chartered air service industry of India is estimated at $250 million and has been growing at 1012 per cent per annum. “More companies will be buying jets. Its numbers is likely to rise to 400 in few years. This will create huge demand in maintenance and servicing. We are also gearing for it,” he said.

HAWKER BEECHCRAFT 28%

In order to further encourage usage of light jets, service providers have been offering loyalty programmes. Invision Air, for example, has the Jet Card Member Programme, for those who plan 25/30 trips per year using private aircraft. There are three different levels depending on the hours of travel: Silver (25 hours a year), Gold (50 hours a year), and Platinum (100 hours a year). There is also Spot Charters if a member needs to use the aircraft occasionally (up to five times a year or less than 25 hours). “We have structured our programmes at a price point similar to a 3-series BMW/C-Class Mercedes, 5-series BMW/E-Class Mercedes, and a 7-series BMW/S-Class Mercedes; so if you can afford to buy one of those cars, you can afford to fly in a private jet,” informed Vineet Phatak.

ISRAEL AIRCRAFT INDUSTRIES 1%

GULFSTREAM AEROSPACE 7%

DASSAULT AVIATION 13%

AIRBUS 1%

BOMBARDIER AEROSPACE 22%

CESSNA 22% EMBRAER 6%

Business Jets Market Share in India (Aug 2012) Source: DGCA

CRUISING HEIGHTS November 2012

BUSINESS AVIATION

â&#x20AC;&#x153;BIZ AVIATION IS ABOUT TAKING PEOPLE TO THE NEXT LEVELâ&#x20AC;? Vinit Phatak entered the arena of business jets with the belief that it is a very promising field and would help the economy grow. In an interview with Nidhi Sharma, he explains how his company aspires to elevate the high-net-worth individuals from the business class to business jets

Q: A:

From a student of philosophy to business jets, what was the motivation and vision behind venturing into unexplored territory? Planes were always a passion with me, but since I cannot fly due to weak eyesight, I chose to remain in the business of aviation. I decided that I would venture into aviation with the right mindset and project. A friend of mine identified that light jets were the next thing. Moreover, philosophy is very deep. It is all about who you are. So I went along with my passion and ventured into the niche area of business aviation jets. We started with the belief that we are helping the economy grow. There is no quicker, more luxurious or efficient way to get from point A to point B than that on a business jet. On this, there is no debate and business aviation has a very healthy effect on productivity. What do you think makes the Indian market fertile for business aviation? With the number of high-net individuals on a steep rise in India, the long-term market for business jets is extremely promising. Business aviation is about taking people to the next level. Our ambition is to elevate the high-networth individual from the business class to a business jet. The trend of Low-Cost Carriers has led to a decline in the number of business and first- class seats. At a later stage, we intend to capture the market of the next rung of entrepreneurs.

In the Asian market, India is one of the most progressive and powerful players and has the right base for business aviation, while China is a new player. However, China is definitely a strong competitor, and has grown very strong in recent years. Presently, there are around 138 business jets in India, while China has only a few numbers less, around 120. What needs to be understood is that business aviation is very different from commercial aviation and even in economically difficult times, the market is bright. Who are your clients and which are

Vineet Phatak, Managing Director, Invision Air

HEMANT RAWAT

CRUISING HEIGHTS November 2012

your areas of operation? We cater to industrialists, people into real estate, pure manufacturing, top-notch investment bankers, managers at the pinnacle and even lawyers. Invision Air currently has two Phenom 100s by Embraer operational in its fleet and four more to be delivered. The excellent take-off/landing performance of the Embraer Phenoms allows for

connectivity up to 200 existing airports in India alone (commercial services cover only about 80). Invision Air allows flights to any international route within the range of our aircraft, which covers the Maldives, Sri Lanka, Thailand, Middle East and Singapore (with the Phenom 300). Currently operating out of three bases in India, viz, Mumbai Delhi and Nasik, Invision Air aims to have a total of six bases across the country. The remaining three bases will be from among the following cities — Ahmedabad, Nagpur, Jaipur, Bengaluru, Hyderabad or Chennai. Each base will have the same type of aircraft available for our customers allowing us to provide consistent service level and availability. It may seem a little surpsising, but the Mumbai-Delhi route is the most soughtafter route on business jets. The curiosity will arise that why is, despite the tremendous and efficient connectivity between the two cities on commercial place with large availability of business and first-class seats, additional business jet service so much sought after? This goes to show the convenience that business jets provide. One needs to reach the airport simply 15 minutes before a flight and there is very little wastage of time on security check etc. This proves that for high-net-individual, for whom time is money, there is no better option than business jets. Interestingly, I once asked a private business jet operator in Europe, which was the busiest route for business jets that he catered to, the answer was a replica of

IN THE LAP OF LUXURY: The interiors of Invision Air company’s Phenom 100 business jet aircraft

the India situation — the London-Paris route — the route is already more than well connected and saturated. What are your expansion plans? For a business like this to survive, you definitely need multiple revenue sources. We are expanding in many ways with new kinds of auxiliary services. We provide a bouquet of services that includes handheld training of management and operations of aircraft. In addition, we are also working towards creating brand awareness about business jet operations market. We operate in 200 airports of the country and there are a total of 400 airports in India. This means that we have the opportunity to double the number of places that we are catering to. A lot of activity is happening, especially in Tier II cities. We are trying to get the right kind of infrastructure in place and are working with certain airport developers for the purpose. The Invision Air fleet will have 18 Phenom 100 jets by 2013 and there are also six of the larger Phenom 300s to be delivered, the first of which is planned for entry into operation in late 2012.

Being the only player, are there unique challenges that come to your way? Definitely, being a pioneer in the field, there are challenges. One of the things we have to do is educate. There are 139 operators of private jets in the country but hardly will a name spring to your mind when asked. Moreover, the right kind of education and mindset is a big challenge. Clients and stakeholders do not know what is involved in the whole process of getting a business jet to fly. They assume that the brokers’ providing the jet and their concerns are not their headache. Even when people and organisations buy a jet, they normally don’t understand what lies ahead. At Invision, safety is bred into our DNA. It is not something that we will compromise on. The dearth of trained pilots is a major problem area. What is your take on the recent case where the Mumbai International Airport Limited levied heavy penalty on business jet operators who overstay their allotted time at the parking bays? Definitely the episode was one that created problems for us. The government has to step in to rationalise things. This is an indispensable requirement for the progress of business aviation. Incidents like this change the economics completely as such heavy charges are unaffordable.

BUSINESS AVIATION

OBAMA DRAWS FLAK US President Barack Obama’s statement during the first presidential debate with Mitt Romney — where he said that he wanted to end tax breaks for owners of business jets in the USA — has brought him a lot of criticism. Expressing his disappointment over Obama’s view, National Business Aviation Association Chief Executive Ed Bolen accused him of “disparaging business aviation and mischaracterising the industry”. During the October 3 debate, Obama had argued for a change in laws that allow businesses who own jets to depreciate their value over five years, compared with seven for charter operators.

BOMBARDIER MAINTENANCE FACILITY AT IGI AIRPORT

Further enhancing its worldwide aftermarket service network for business aircraft customers, Bombardier Aerospace, along with its maintenance partner Air Works, has established its second Line Maintenance Facility ( LMF) in India for Challenger 604, Challenger 605, Global Express and Global Express XRS business jets at the Indira Gandhi International Airport, New Delhi. “Our longstanding relationship with Air Works and their commitment to excellence make them a perfect fit for the needs of Bombardier operators in the region,” said Éric Martel, President, Customer Services and Specialised and Amphibious Aircraft, Bombardier Aerospace.

EMBRAER DELIVERS 13 EXEC JETS IN 3RD QUARTER In the third quarter of 2012 (3Q12), Embraer delivered 13 jets to executive aviation market. Deliveries year to date, at the end of September, total 46 executive jets, seven more than for the same period of 2011. Executive jet deliveries comprised; 5 Phenom 100s, 6 Phenom 300s, 1 Legacy 650 and 1 Lineage 1000.

CHANGE IN PRIVATE JET IMPORT RULES COMING The civil aviation ministry is contemplating to make changes in the guidelines for non-scheduled operators (NSOPs). The changes are prompted by the rule that ensures that individuals or companies that buy aircraft for private purposes cannot do so under the NSOP category at lower import duty and then divert it for personal use. An import duty of around two per cent is charged from non-scheduled operators in comparison to around 21 per cent from private jet operators. Before 2007, there was no import duty. Commenting on the issue, Civil Aviation Minister Ajit Singh recently told mediapersons: “We are looking at route dispersal guidelines to encourage connectivity and we will be going with a code-share arrangement between nonscheduled operators and commercial airlines for connectivity to Tier-III and Tier-IV cities (a code share is where two or more airlines share a flight). We are also looking to see if we can put guidelines for NSOPs, so that people can’t import jets at lower tax and then use it as private ones.” Singh said that the ministry was looking into duties, too. “We want some adjustments, so that there isn’t a wide variance in the duties (on imported jets),” he said.

ROYAL JET, ASM FOCUS ON INDIA To tap the Indian market’s vast potential in the field of business aviation, Abu Dhabi-based private jet operator, Royal Jet, and UK-based Aviation Services Management (ASM) recently entered into a partnership. An agreement was inked in this connection by Ahmed Al Mamari, Chief Operating Officer, Royal Jet and Vito Gomes, Founder and Managing Director, ASM.

“The number of high net worth individuals in India is experiencing growth, which, when combined with a significant gap in the availability of business jets with 10 to 42 passenger capacity, presents excellent opportunities for business aviation across the Indian subcontinent and for Royal Jet in particular,” said Fahad Wali, VicePresident (Commercial), Royal Jet.

HAWKER GOES ALONE After a sale to Superior Aviation Beijing Co. collapsed, business-jet maker Hawker Beechcraft Inc. plans to emerge from bankruptcy as a stand-alone company. According to a recent statement, a review of strategic alternatives for the Hawker jet line is under way, and that business may close “if no satisfactory

CRUISING HEIGHTS November 2012

bids are received”. The post- bankruptcy company would be renamed Beechcraft Corp. and focus on planes including civilian turboprops and military trainers. The failed $1.79-billion deal with Superior may rekindle interest in Wichita, Kansas-based Hawker. India’s Mahindra & Mahindra Ltd. (MM) has been in contact with the company.

NetExpress CRUISING HEIGHTS

D I G I TA L T R E N D S F O R T R AV E L L E R E X P E R I E N C E

IATA formally adopts New

Distribution Capability As IATA lifted the lid on the New Distribution Plan, with 30 airlines voting in its favour at the recent World Passenger Symposium in Abu Dhabi, the industry welcomed the move with a mixed response. The implications of the new distribution system that will have an aggregator role are yet to be experienced. A report. will most probably be completed by 2013. In his opening keynote at the World Passenger Symposium, IATA Director General and CEO Tony Tyler said, “Airlines are trying to escape the commoditisation trap through differentiation. But at the end of the day, the travel agent sees only codes F, J, Y and their various derivatives. There is no way to tell if your J product is a flat bed or an economy class seat with an empty seat beside it.” Speaking on the occasion, European Technology and Travel Services Assistant Secretary General Christoph Klenner said: “I think there’s a renaiseralding the dawnsance coming and (airing of a ‘New Age lines) see they have to do for distribution’, a something about their working group of around product. Airlines have 30 IATA airline representabecome so safe that it tives voted in favour of doesn’t matter who you and formally adopted the fly with, especially on New Distribution the short haul. It has Capability (NDC), a new meant that price became model for distributing airthe most important driver line services, at the recent for consumer deciWorld Passenger CLEAR VIEWS: (Above) One of the sions.” Symposium in Abu Dhabi. speakers speaking at the IATA A handful of indusWorld Passenger Symposium; (top) IATA’s New IATA Director General Tony Tyler. try groups, including the Distribution Capability is American Society of built around XML-based protocols and Travel Agents, the Business Travel aims at enabling airlines to offer person- Coalition and the European Travel Agents’ alised offers to customers. The body and Tour Operators’ Association have critclaims that the new distribution system icised IATA’s NDC initiative for several will have an aggregator role, allowing air- reasons, including what they called a lack lines to differentiate their products more of collaboration. clearly, beyond just the lowest ticket price Continued on page 52. —and the definition of standards for NDC

CRUISING HEIGHTS November 2012

Indian routes of Lufthansa get paid wi-fi Four Lufthansa routes between India and Germany have started providing wi-fi broadband as a paid in-flight service. Passengers in all three classes on these flights will be able to browse the Internet on their laptops and tablets without interfering with radio signals from the cockpit. Lufthansa plans to extend this to mobile phones also by year end, enabling text messaging and data transfer. As hurdles such as some planes finetuning their wi-fi-gear (notably, Boeing 787s) and clearance from Indian regulators (for example, Emirates) are cleared, more airlines flying to India will join Lufthansa in offering in-flight Internet access. “We hope to offer this (service) later this year,” says Scott Lefeber, the spokesperson for Boeing (787) Communications. In India, Lufthansa will, to start with, offer this service on four flights: Delhi-Munich, MumbaiFrankfurt, Mumbai-Munich and ChennaiFrankfurt at the price of €10.95 for one hour, or €19.95 for 24 hours, that passengers can extend to Lufthansa lounges and Lufthansa long-haul flights.

INSIDE

52 IHOLDERS IN AIRCRAFT The iPad has made its special place in the tray tables of planes

IMMIGRATION E-G GATES AT PARIS

Paris-Charles de Gaulle Airport gets six new e-gates

MOBILE SERVICE IN EMIRATES

Emirates offers inflight mobile phone services on A380s

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iPads give birth to iHolders

IATA formally adopts New Distribution...

Who would have imagined the kind of influence that Steve Jobs apple would have in all spheres, not just on land, but also in the skies? The iPad’s omnipotence can be gauged from the fact that it has made its special place in the tray tables of the economy class with the ‘iHolder’. Canada’s budget airline, WestJet, for example, has already been experimenting by testing the services on planes it bought from Boeing without the seat-back inflight entertainment systems where it rents out Android tablets that clip onto the back of the seat tray. What indeed is the iHolder? The iPad has resulted in the makeover of the economy class tray tables, changing their design to turn them into a place where you don’t just keep your meal, but can place your electronic gadgets with comfort and security. US firm Smart Tray International recently unveiled a new economy class tray table with a built-in STUCKATTHEAIRPORT.COM

The GDSs had given their view back in August. Sabre had said: “Based on our extensive evaluation and deep technical analysis of IATA’s proposal, our conclusion is clear. We do not see how the proposed NDC approach would work in the real world without sacrificing fare transparency, limiting comparison shopping and compromising data privacy rights.” Not everyone is against the NDC, however, with some technology players voicing their support for the initiative. Ajay Prakash, immediate past President of Travel Agents Federation of India, is of the opinion that “the proposed NDC is the latest insidious move at increasing its hegemony at the expense of travel agents and GDS companies, both of whom have been the mainstay of airline inventory distribution. The NDC is really aimed at marginalising both agents and GDSs, to the direct benefit of airlines and to the inevitable detriment of passengers—and there should be loud alarm bells ringing on this”. One has yet to understand the complete and detailed implications of the NDC. As per industry officials, it is an airline-based initiative that is being implemented.

“Passengers want more control over journey”

groove for the purpose of placing electronic devices. If airlines take a fancy to the new design, passengers will be able to watch content on their iPad or iphone screens hands-free with the tray table up or down, and charge their devices at the same time. WestJet devices are preloaded with films and TV shows (and targeted advertisements) and can be watched hands-free, without taking up space on the tray table itself. The airline has been testing the service on planes it bought from Boeing without the seat-back i n f l i g h t entertainment systems, which are heavier, more expensive and require seat modification or replacement. Of course, comfort will come for a price and airlines will certainly generate revenue from their investments. And for the more adventurous airlines, traytables could bring in advertising revenues with targeted ads on-screen.

Sports-themed baggage system at EIA

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FUTURETRAVELEXPERIENCE.COM

According to the recently-released 2012 SITA/Air Transport World Passenger SelfService Survey, airline passengers want more control of their journey and are looking for more self-service and mobile-based offerings to reduce stress during travel. The report states that 70 per cent of passengers now carry smartphones, that is fuelling the demand for services such as self-boarding and flight information updates on their mobiles. Self-service continues to be increasingly popular with passengers. Close to 90 per cent of passengers rated flight status updates on their mobiles and self-boarding as their top self-service technologies. Francesco Violante, CEO, SITA, said: “What passengers really want is to avoid delays and to be kept informed of what is happening. Nearly everyone surveyed said they would welcome any queue-busting services and 89 per cent voted self-boarding as their top technology. It is very clear from our IT Trends Surveys earlier this year that airports and airlines are working in the

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same direction, so we expect to see significant growth in technologies aimed at reducing waiting times.” Violante continued: “The number of passengers with smartphones has risen dramatically over the past year from 54 per cent to 70 per cent. We are already seeing the impact at airports with mobile check-in increasing by one third during this period and as many as 21 per cent of passengers have now used a mobile boarding pass. We’re now at the tipping point of explosive growth in mobile services offered to passengers, which will give them more control over their journey and reduce stress.”

CRUISING HEIGHTS November 2012

A new Domestic-International Passenger Lounge and Canada Border Services Agency (CBSA) Arrivals Hall has been unveiled at the Edmonton International Airport (EIA) under the latest stage of the Expansion 2012 project. One of the key features of the new passenger lounge is the latest baggage delivery system with three carousels—all of which are adorned with sports-themed displays celebrating local teams—Oilers, Eskimos and Oil Kings. The speed of baggage delivery is doubled by the carousel in the CBSA Arrivals Hall that is fitted with two delivery belts.

NetExpress Immigration e-gates at Paris-CDG

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Changi deploys SITAâ&#x20AC;&#x2122;s BagManager

technology has been SITAâ&#x20AC;&#x2122;s BagManager

FUTURETRAVELEXPERIENCE.COM

deployed by SATS, a leading gateway services and food solutions provider, for managing the 15 million bags that Changi International Airport handles each year. The new version of BagManager, operational at 10 other airports besides Changi, can be implemented very quickly,

meaning minimal system downtime. The technology is designed to do away with flight delays caused by loading issues and ensures that the ground handler knows where all bags are on an aircraft so they can be removed quickly if the passenger fails to board. The browser-based user interface improves daily productivity, allowing bags to be managed efficiently.

Emirates provides mobile service on A380s

automated border

partnership with OnAir, A Emirates Airline, in

ARABIANSUPPLYCHAIN.COM

Six new PARAFE

control e-gates have been installed at the ParisCharles de Gaulle Airport, taking the total count to 33. The e-gates have been supplied by Morpho (Safran Group) as part of the collaboration with AĂŠroports de Paris (ADP) on the Single Filtering Inspection programme between Terminals E and F.

E X P E R I E N C E

will be offering in-flight mobile phone services on an A380 aircraft, where passengers aboard the aircraft will be able to stay in touch via phone calls or through the mobile data link on their personal devices, the airline said in a statement. Emiratesâ&#x20AC;&#x2122; first A380 equipped with the full suite of OnAir connectivity departed from Dubai international Airport to Munich International Airport recently and the first recorded A380 in-flight call was placed to China while the aircraft cruised at 11,500 metres flying across the Gulf. The service is in addition to the OnAir WiFi service already available on Emirates A380 aircraft, the statement added.

Ilya Gutlin, SITA President, Asia Pacific, said: â&#x20AC;&#x153;SITA BagManager is used by some of the worldâ&#x20AC;&#x2122;s busiest airports, processing around 150 million bags each year. The fact that SATS has chosen to implement the latest version at Singapore Changi Airport is a significant boost and I have no doubt other ground handlers and airports will follow suit.â&#x20AC;?

SMS-based service by MakeMyTrip

â&#x20AC;&#x153;Anytime Anywhere

An SMS-based service for

Travel Assistanceâ&#x20AC;? launched by MakeMyTrip has pioneered customer self-service on feature phones. To avail this service at no extra cost, customers need to type â&#x20AC;&#x153;@mmtâ&#x20AC;? and send it to 9266592665. They will receive service options for common customer needs â&#x20AC;&#x201D; the platform accepts queries in Natural Language (i.e., not a strict prefixed format).

BA to change Virtual assistants at Dubai Airport check-inâ&#x20AC;&#x2122;s future Considering the fact that large

international airports handling heavy

change the future of

airline check-in as we know it today, British Airways, as part of its ÂŁ5 billion investment programme, is trialling a new service to provide its customers with the option to use an automatic checkin service. For the purpose, this month the airline started with a trial compr-ising selected travellers flying out of airports in France. Invited customers had the option to be checked in automatically. Customers were automatically checked-in, assigned a seat and received their boarding pass electronically, 24 hours before their flight.

CMS.UKINTPRESS.COM

In a move that could

traffic every year have to answer innumerable passenger queries, the Dubai International Airport has upgraded the present system to interactive virtual assistants that can respond to specific passenger queries in Hindi and English. These virtual assistants are programmed to answer frequently-asked questions, such as the location of departure gates, washrooms and check-in areas, rather than just providing a static message. Speaking on the occasion of the launch of the virtual assistants, Chris Garton, Senior Vice President, Operations at Dubai Airports, said: â&#x20AC;&#x153;Dubai Airport is continually exploring new ways of enhancing service by providing passengers with the information they need, when they need it, and ensuring their passage though the airport is as quick and pleasant as possible. The new interactive virtual assistants are another innovative way to create that experience.â&#x20AC;?

CRUISING HEIGHTS November 2012

The Natural Language Processing (NLP) by MakeMyTrip solves for language ambiguities. NLP allows the user to â&#x20AC;&#x2DC;queryâ&#x20AC;&#x2122; in an intuitive (natural) way as opposed to structuring the query in a standard template. Speaking on this development, Amit Somani, Chief Product Officer, MakeMyTrip said, â&#x20AC;&#x153;Mobile is the platform of choice for youth, and a large majority of our customers. We are focused on serving a range of customersâ&#x20AC;&#x2122; needs across the spectrum and hence the launch of these services for feature phones. These address common customer queries that would otherwise have to be serviced by calling customer-care. These self-service solutions are available for a range of queries.â&#x20AC;?

A I R

C A R G O

L O G I S T I C S

CRUISING HEIGHTS

www.cruisingheights.in I November 2012

FORUM TO THE FORE Pradeep Panicker President, ACFI

Air cargo stakeholders join hands to form an umbrella organisation that will sort out contentious issues hampering air cargo movement.

ACAAI Istanbul meet to formulate strategy

Emirates innovates to keep freighters flying

President Bharat Thakkar on challenges and priorities for air cargo stakeholders

How Skycargoâ&#x20AC;&#x2122;s Ram Menen manages to fly high with full loads in times of crisis

LAST IN/FIRST OUT

IATA launches cargo advisory group

t is the season of collaboration and cooperation. While closer home we have witnessed the kick-off of such a move — the Air Cargo Forum India (see following pages for a detailed story on the launch) — internationally, the International Air Transport Association (IATA) announced the Cargo Operations Advisory Group (COAG). Reporting jointly to the IATA Cargo Committee and the Ground Handling Council, the COAG has been established “to bring together members from airlines and ground-handling agents to develop best-practice processes and procedures in order to address all aspects of cargo acceptance and handling”. The COAG aims to work on the review, improvement and development of cargo operations processes and procedures for incorporation into the IATA

Frederick W Smith FedEx Chairman

)

Airport Handling Manual (AHM) and IATA Ground Operations Manual (IGOM). The objective being to develop operations processes that can be adopted by airlines and groundhandling agents and that will ultimately lead to a greater degree of standardisation and harmonisation for cargo acceptance and handling. “The first effort by COAG will be to review and develop the cargo acceptance processes, including clear processes supporting paperless e-AWB,” IATA said. The group will be addressing common standards for the acceptance, handling and uplift of cargo, including mail. COAG comprises eight airlines and six ground handling agents. The COAG consists of not more than 14 members (eight airline members — Air Canada, Air France, Cargolux, Emirates, FedEx, Finnair, LAN Cargo and

Qatar Airways — and six GHA members that include DAL Global Services, DNATA, Fraport Cargo Services, Menzies Aviation, Swissport and WFS), each being an expert in cargo operations, Cargo EDI messaging standards, mail operations, as applicable. The idea for COAG was driven in part by ground handlers at the 2010 IATA WCS in light of the fact that airlines continue to outsource ground handling and the GHA (ground-handling agents) are often faced with pressure from airlines to do the same task in different ways based on what each airline sees as the “right” way. The COAG then, has started working on an agreed standard that meets an industry benchmark and so far all the meetings have been by teleconference with two faceto-face meeting a year.

“Let’s compare a 747 and a large container ship. For the ship it takes one tonne of fuel to move 330 tonnes of cargo. For the plane, it takes about 330 tonnes of fuel to move the same amount of cargo . . . All those big ships are nibbling away at the air cargo business, and those bites will become bigger when the Panama Canal expansion is completed in 2014.”

CRUISING HEIGHTS November 2012

TRENDS The recent Annual General Meeting (AGM) and Conference of ULD CARE in Shanghai saw CHEP presenting a prototype mobile application for ULD CARE, with the aim of providing a single, userfriendly global interface, portability, ease of use, real- time recording, message error reduction and a paperless system. The app included ‘Bounty Hunter,’ offering a reward for bringing in lost ULDs, perhaps on the basis of a multilateral agreement that would go into the IULDUG centralised database and pay $10 per unit. Another was ‘PMC diagram’ for pallet damage limits and UCS ‘Move Me’ (ULD Control Message). Transactions would comply with IATA standards, damage limits and ODLN codes (operational damage limits notice), and direct access to Part 145. Experts believe that such an app could generate revenue for the ULD CARE group without any need for the airlines to develop an interface, with the potential to charge transaction fees while solving industry problems. The cost to develop the pilot was $700 and the proposal to take it to full development will be put to the board for decision. Come to think of it, the app would be useful — to say the least. There are around 1.2 billion mobile app users in the world and 15,000 apps have been developed per week since July 2008. However, once downloaded, one in four mobile apps are never used again.

CARGO

ACAAI’S QUEST FOR INNOVATION The Air Cargo Agents Association of India will meet in Istanbul for the 39th annual convention in the end of November to take stock of the situation in the air cargo sector. Cruising Heights takes a look at the present condition of air cargo in the country and talks to ACAAI President Bharat Thakkar about the convention. he air cargo sector in the country is at a very crucial juncture. On one hand, while the sector around the world has seen little or no growth over the last two quarters — the brief blip on the screen were the Apple shipments from China to Europe and the USA — on the other, exports from India have been attracting carriers from the Middle East, Hong Kong and even Europe to start and expand services. On the domestic front, it has indeed been gloomy: we have witnessed the closure of an air cargo carrier (Deccan 360) and the re-start of another (Quikjet).

Perhaps, what is important is that within the country, air cargo and related stakeholders — considered not too long ago as step-children — are getting the attention they deserve. Infrastructure is improving and for the first time, perhaps, the air cargo sector has a clear policy. On its part, the government took the initiative to boost the sector when it set up the Working Group on Air Cargo/Express Service Industry under the CAEAC (Civil Aviation Economic Advisory Council). The report from the Working Group

submitted in the beginning of May this year has brought life into the sector. Following that, a first move was made with the announcement of the setting up of the Air Cargo Logistics Board. It is in such a situation that the Air Cargo Agents Association of India (ACAAI) is preparing to hold its 39th Annual Convention from November 2225, 2012 at Istanbul, Turkey. The meet will take a look at the present state of the sector in the country and the challenges it faces in the growth journey through the theme, “Air Cargo Logistics: Desire, Design, Develop, Deliver”. The venue is significant since Turkey, like India, has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment and the privatisation of publicly-owned industries, and the liberalisation of many sectors. Said ACAAI President Bharat Thakkar, “All of us desire, plan and design to meet our desires, develop the design and then deliver the end-product of our desires. It is in this background that the theme of the Convention is structured. The global slowdown has been a traumatic experience that has taught us a practical lesson and made us think more global and still have local roots. It has given us the courage to sail through rough weathers and turbulent times.”

CARGO Cruising Heights’ Tirthankar Ghosh met with Bharat Thakkar. Excerpts from the interview:

Q: A:

Why did you decide to take the conference to Istanbul this year?

We held our convention overseas starting from 2001 in Colombo, followed by Dubai, Kuala Lumpur, Bangkok and Hong Kong to give our members an overview of facilities at international airports. In 2008, the convention at Bahrain was postponed due to the November attack by terrorists in Mumbai. After that, came the Government of India’s PPP (Public-Private Partnership) policy and start of brown and greenfield airports by private operators along with the formation of the Airports Economic

ACAAI has strengthened its relations with all stakeholders — regardless of the issues. ACAAI is committed to work jointly to bring down the transaction costs in the trade which is the highest in the world

Regulatory Authority (AERA) where ACAAI played an important role. We made representations to the Chairman of the Parliamentary Committee that brought air cargo under AERA. In such a situation, it became very important for us to hold the conventions within the country. So, in 2009 we were in Goa, in 2010 in Bengaluru and in 2011 at Amritsar. It was on November 4, 2011, during the last conference dinner at Amritsar, while talking to a senior government official, that I expressed my desire to take the next conference overseas again - this time further away from the Indian subcontinent and the Far East. It is then that we started dreaming. I started asking myself where we could go. It should not be out of our continent … and it is then that I realised that Istanbul would be a perfect location. It is the only city in the world that links Asia to Europe. Our delegates will arrive at Ataturk International Airport on the European side and drive across the Bosphorus to stay at the convention venue on the Asia side of Istanbul. Who are the government and industry stakeholders attending and addressing the conference? That is a good question and I am very happy to point out that in the last few years ACAAI has strengthened its relations with all stakeholders — regardless of the issues. ACAAI is committed to work jointly to bring down the transaction costs in the trade, which is the highest in the world. We expect seniormost official from the Ministry of Transport of Turkey, the Director-General, Civil Aviation and Heads of Aviation Security of Turkey and Managements of Turkish Airlines Inc., Presidents of the Istanbul Chambers, Turkish Exporters Association and UNIKAT (Cargo Agents Association) Board Members of Celebi Holding — one of the two Turkish ground handling agencies that also operate in Delhi and Mumbai airports — and heads of cargo from other local cargo carriers. Almost 95 per cent of cargo terminal operators across India are attending and efforts are on to get those at Cochin, Trivandrum and Calicut to attend. In addition, there will be heads of cargo from major internationals airlines, representatives from GSAs, etc. We are confident that senior officials from our national carrier, the Ministry of Civil Aviation and Central Board of Excise and Customs (CBEC), will be addressing the conference and our

members will benefit from face-to-face interactions in a relaxed mode. In view of the troubled times that the international air cargo sector has been going through, how does ACAAI propose to tackle the challenges? 2012 has been an eventful year. The freight forwarding community weathered the storm of recession that triggered in 2009 and continued in 2011 and recovered — to an extent — in the first quarter of 2012. But before we could breathe easy, the industry was pushed to the wall again. All through the year, we have had to battle with our customers over the rise in the price of air turbine fuel. We do not have the power to do anything about it but it is something that is so inextricably linked with the industry that we simply cannot ignore it if we have to stay in business. As for the industry, the first quarter apart, it has been an uphill task despite the fact that the country’s achievements have propelled it to the front rows of global power. Indeed, some of us did well — what with India being one of the few countries that overcame the slowdown with 12 per cent increase in business traffic in 2010-11. Today, with the deteriorating economic situation in Europe and the USA, the spectre of a fresh downturn has been staring us in the face. In fact, we have started feeling the impact. Added to the high price of aviation fuel, there is the falling value of the rupee and export uncertainties. Exports, in fact, have declined in comparison to 2010-11 while imports have risen. It will be an extremely tough year but the silver lining is that the government and the civil aviation ministry in particular have announced the first of its kind air cargo policy after the recommendation by the Working Group on Air Cargo/Express Service Industry: the Air Logistics Promotion Board (ALPB) was formed to monitor improvements. In addition, the move by the government to bring in Foreign Direct Investment (FDI) in the aviation sector would help the aviation sector to grow and bring stability. In addition to the international market, there are a number of challenges that ACAAI members face due to infrastructural problems… The biggest challenge is, in fact, services at cargo facilities and there is an urgent need to allow more Air Freight Stations (AFS) at all major metros such as Chennai and Mumbai and usher in more cooperation from airlines to maintain ULD inventory to enable us to move forward.

BIG FOLLOWING: A file photo of the 2010 ACAAI conference in Bengaluru

What is ACAAI doing about it and how do you plan to address these issues at the conference? All issues are going to be addressed by terminal operators from India/overseas officials from the government of Turkey and India along with the actual importers and exporters from India, trade bodies of Turkey, heads of cargo from airlines and ACAAI members.

It will be an extremely tough year but the silver lining is that the government and the civil aviation ministry in particular have announced the first of its kind air cargo policy after the recommendation by the Working Group on Air Cargo/Express Service Industry CRUISING HEIGHTS November 2012

While the working committee set up by the government has submitted its report and given some very strict deadlines for completion of short and long-term measures, is ACAAI hopeful of some solutions soon? We are very confident since before his retirement as Secretary, Ministry of Civil Aviation (MoCA), Dr Nasim Zaidi formed the ALPB and held the first board meeting on July 26, That certainly endorses your question Also, as for ACAAI keeping a close watch on whether the long and short-term deadlines are being adhered to — we are in touch with the office of the new Secretary, Ministry of Civil Aviation, K N Shrivastava, who is also well-known for his expertise, since he was associated with MoCA earlier. He has full knowledge of cargo and its requirements to bring in world-class facilities. The cargo fraternity is very confident that he will pursue the shortterm and long-term recommendations with his team comprising the Economic Adviser (who headed the Working Group on Air Cargo/Express Service Industry) and the board members from all ministries.

CARGO

AIR CARGO MATTERS

H C TIWARI

Air cargo stakeholders took the first step to bond together and float the Air Cargo Forum India. The initiative that started off from Delhi — and soon be seen in action at the important airports within the country — has the potential to smoothen the flow of air cargo at airports, reports Tirthankar Ghosh.

AUSPICIOUS START: (L-R) ACFI Vice President Tushar Jani looks on as the Forum's President Pradeep Panicker lights the lamp while Delhi Airport CEO I Prabhakar Rao, Director-General of the Federation of Indian Exporters, Ajay Sahai, Additional Secretary in the Ministry of Civil Aviation, S Machendranathan, Director Logistics of Nokia, V G S Mani and ACFI Secretary, Cyrus Katgara await their turn

he Indian air cargo sector has got its act together. To counter the challenges of the troubled times and to look ahead to a bright future, air cargo stakeholders in Delhi got together to launch Air Cargo Forum India (ACFI). This is, incidentally, the first time that a nationwide, apex forum has been formed to bring the entire air cargo industry on a common platform. Said Cyrus Katgara, Secretary of ACFI, “This is the first consolidation initiative. We have been thinking about this for a long time but it has been achieved now.” He also said that the project that took six months in the making

T 60

was an ambitious one and no effort would be spared to make it succeed. The members of ACFI comprise all segments of the air cargo logistics chain: carriers, freight forwarders, cargo terminal operators, integrators, courier and express operators, airport operators, general sales agents, customs house agents and several associations connected to the air logistics industry spanning the export-import trade, chambers of commerce, etc. As the first President of ACFI and the Chief Commercial Officer of the Delhi International Airport, Pradeep Panicker outlined on the sidelines of the launch show

CRUISING HEIGHTS November 2012

that the forum would work to bring in innovation to achieve high standards in operational excellence. It would also seek best practices in handling, processes, and push for better infrastructure facilities at all levels of the air cargo supply chain. With so many other bodies — all related to air cargo — in the country, was there need for another new association? Panicker told Cruising Heights: “Yes, there was a need. ACFI,” he pointed out, “is an umbrella organisation that would have a macro perspective of the industry. Perhaps, more important than anything else, the forum will be positioned to be a catalyst between

“ACFI will be positioned to be a catalyst between the trade and government.”

“Our aim is to make the Delhi Airport the cargo hub of India.”

“The dream has come true. Now it is going to be a mission.”

PRADEEP PANICKER PRESIDENT, ACFI

I PRABHAKAR RAO CEO, DELHI AIRPORT

TUSHAR JANI VICE PRESIDENT, ACFI

the trade and government and sort out contentious issues.” The work of the forum is cut out: it will be a channel to facilitate air cargo growth. It will also usher in economic efficiencies in the system while collaborating with the government's bodies such as Customs, the Ministries of Finance, Commerce and Civil Aviation, the Directorate General of Civil Aviation, the Bureau of Civil Aviation Safety, etc. for user-friendly policies and regulation. Importantly, the ACFI's founding members are all key players from various segments of the entire air logistics industry. With the Delhi international airport — and the most important one at that — backing, supporting and promoting the initiative, the ACFI is on a solid footing. Said Delhi Airport CEO I Prabhakar Rao: “Our aim is to make the Delhi Airport the cargo hub of India and the ACFI would convert that aim to action.” Among the founder members along with Delhi airport are: Lufthansa, DHL, the Cargo Service Center (CSC) and Celebi (both have new state-of the-art cargo terminals at the airport), top freight forwarder Cyrus Katgara and founder-promoter of Blue Dart and presently Chairman of CSC Tushar Jani (he is also the Vice President of ACFI). One of the major initiatives that ACFI proposed to take up was the development of regular dialogues with the government agencies where the air cargo industry's viewpoints on major developments and government policies that would affect the industry would be presented. The objectives of the ACFI include the promotion of cooperation among its members with regard to matters of mutual and common interest and to assist members in securing better facilities or improve the

existing facilities at airports and elsewhere for the benefit of smooth and efficient handling operation at the airports. ACFI wants to promote and diffuse knowledge about air cargo business and air cargo handling/processing — a feature that many new entrants in the business are still unaware about. Whether ACFI would be able to bring about a change in the air cargo business first from Delhi and later, hopefully, from all the important international and domestic airports across the nation — will be watched with interest. The fact that the forum has the blessings of the Ministry of Civil Aviation — a senior bureaucrat, S achendranathan, was present at the launch — placed it on a growth trajectory. The last words came from Tushar Jani: “The dream has come true. Now it is going to be a mission.” The man who has lived and breathed cargo all his waking hours, would like to see cargo being cleared in 90 minutes like passengers for international flights and 45 minutes for domestic flights, hoped that ACFI would enable measures to achieve those benchmarks. If nothing else, ACFI would benefit the cargo industry, the largest employer in the nation. Brimming with optimism, Jani mentioned that the air cargo industry had to be in Delhi to take advantage of the ACFI's moves. The ACFI could take a look at one such organization in Europe. The IG Air Cargo Switzerland is a similar interest group that was established in 2010. The group's formation was prompted by the fact that air cargo had considerable importance for the economy of Switzerland. A study of the air cargo sector conducted by the University of St. Gallen in 2010 mentioned that air cargo was a key factor in Switzerland's appeal as a business location,

CRUISING HEIGHTS November 2012

and made a substantial contribution to strengthening the Swiss economy and safeguarding Swiss jobs. The study also pointed out that air cargo transport was highly efficient. Although it accounted for less than one per cent by weight, around 33 per cent of all Swiss exports left the country by air in value terms, while just under 20 per cent of all imports by value were flown into the country. It was further pointed out that most of Switzerland's air cargo was carried into or out of the country on passenger aircraft, on flights that would not be profitable without the additional airfreight component. So, the health of the air cargo business had a direct effect on, for instance, the range of intercontinental destinations that could be reached on flights from Switzerland's airports. Additionally, Swiss companies in all business sectors were keen to further develop the infrastructure at Swiss airports, to improve the handling of air cargo during peak times and expand the capacities available for handling various kinds of high-quality goods. The study warned that if the country's airports were to fall substantially behind those elsewhere in Europe in terms of their cargohandling efficiency and their range of airfreight facilities, it would have devastating consequences for Switzerland. Keeping all that in mind, the prime objective of IG Air Cargo Switzerland was to promote and support the Swiss air cargo sector through political actions, economic measures and PR activities, to help ensure that air cargo — a key element in Switzerland's transport system — gained in acceptance and that, as a result, Switzerland enhancds its appeal as an airfreight business location.

CARGO

INNOVATION — EMIRATES STYLE Managing in times of crisis. That is what Emirates Skycargo — one of the leading air cargo players in the region — is doing. Cruising Heights caught up with air cargo veteran Ram Menen to find out how the carrier is not only coping with the crisis but even managing to flourish. ellyholds and freighters are becoming difficult to fill. Operating in a market that is becoming difficult by the day is not easy — even for a seasoned player like Emirates. The Dubai-based carrier’s Senior Vice President, Cargo, Ram Menen and his team across the world is always prepared — no matter what the condition. Speaking to Cruising Heights, he maintained that business at best, could be described as flat. The cargo head is well aware that the “flat” period could last long. The industry has gone through similar situations earlier: As for Emirates, it was prepared “for the long haul”. For the key player from the Middle East in this part of the world, the Indian market has “been a bright spot for us and, though the yields are under pressure, our capacity has been quite well subscribed to”, said Menen, and as the Emirates network expands, more distribution and market opportunities were being taken to customers. “Today,” said a confident

Menen, “our Dubai hub virtually connects all continents.” Menen talked at length to Tirthankar Ghosh. Excerpts from the interview:

We are in it for the long haul. So it is a question of managing the current situation by making sure we right size the capacity and ensure we have the right capacity at the right place

CRUISING HEIGHTS November 2012

Q: A:

How do you find business now? It looks like the second downturn has come. Business at best can be described as flat. From the looks of it, world cargo could end up in flat to negative territory compared to last year. The consumer demand in the West seems to be at an all-time low and this has slowed down the production in the East. Most affected areas seem to be Europe and the US. In such a situation, what innovative measures or long-term strategies have Emirates undertaken? We are in it for the long haul. So it is a question of managing the current situation by making sure we right size the capacity

and ensure we have the right capacity at the right place. This is not the first time we have gone through such a situation … and this is not going to be the last time either. We continue with our fleet and network expansion strategy and hope the markets will turn around soon.

You have been a key player from the Middle East in the India? Have tonnages been affected with the recent downturn? What has been the tonnage like from the region? India has been a bright spot for us and, though the yields are under pressure, our capacity has been quite well subscribed to. As we grow our network, we are bringing more distribution and market opportunities for our customers. Today, our Dubai hub virtually connects all continents.

There are many carriers that have cut down capacities. In such a market, what is the strategy Emirates is following? Yes, markets are tough and the competition is hard. Many carriers have been forced to cut capacity. We have also done our share in right sizing our capacity and redeployed capacity in places where there is better demand. We have also not renewed leases on couple of leased freighters. Having said that we are also taking on four brand new B777F in the next six months. So, all in all, we are adding more capacity and continuing with our expansion plans.

Are you planning to put in more capacity in India? At the moment, we are keeping our capacity status quo. We do bring in our freighter capacity on demand basis. I remember your telling me that the cargo sections in Delhi and Mumbai were a ‘dog’s breakfast’. The situation in Delhi and places such as Hyderabad, Bengaluru, etc. where investments have gone in has got better. However, places such as Mumbai and Chennai have not seen much improvement. Customs regime, though much improved from the past, still remains very archaic in many areas.

Emirates has been looking at Africa. Some analysts describe Africa as the ‘New India’. How is the market doing in Africa? African markets have been quite good for us. It is the next frontier. However, I don’t think it can be compared to India. It is a vaster land mass which is just beginning to energise. More than 55 per cent of the world minerals are found in that continent and infrastructure development has just started. The Indian economy is far ahead of them in that it has a far more developed services and manufacturing capability. It has the advantage of more skilled resources. For us, we serve 22 destinations in African continent. For India, Africa is a very interesting and great opportunity for export market. India has historic ties with this continent as it has a huge population of immigrants whose origins tie back to it. Now with the Eurozone crisis, are there any plans to look towards China and South-east Asia? Today, the economies are more intertwined and interlinked than people realise. The slowdown in Europe has a marked effect on production (exports) from places like China. However, the good thing is that India, China and some of the other countries in the East are creating their own consumer powerbase, which has resulted in keeping the demand for some of the European goods strong, which has also helped larger economies suh as Germany, the UK, etc. with strong exports, especially in the automotive sector.

Ram Menen, Senior Vice President, Cargo, Emirates Skycargo

CARGO JOTTINGS

Easier flow of cargo from Trichy Trichy airport recently introduced Bonded Trucking Operation (BTO) for the first time and Air-Asia was the first airline to lift 2.2 tonnes of finished leather goods that had been transported to Trichy by road after Customs clearance in Chennai. The goods were destined for Hanoi.

partner network. RishikeshTrivedi, CEO, Encore Enpower, said, “Kale Logistics is a much respected brand with good recall and more importantly it is possibly the only focussed IT solution provider having a very strong vertical presence in logistics, airports and transportation segments in the emerging markets. Our goal is to strengthen Kale Logistics' presence in MEA region which would help them in addressing Vineet Malhotra this market aggressively and help them support their customer better.” Speaking on the occasion, Vineet Malhotra, Senior VP, Kale Logistics Solutions said, “Kale Logistics has established its foundation on the basis of strong techno-domain expertise in the space of logistics and airports industries.”

CEVA announces retirement of CEO

FIRST IN THE LIST: A front view of Trichy airport.

Said S Dharmaraj, Airport Director, Trichy airport, “More output could be expected with the introduction of the service and there would be better capacity utilisation of the cargo lifting capacity of the airlines. There is potential for inbound bonded trucking too as the consignments could be sent to other airports from here after Customs clearance.”

Kale ties up with Encore Enpower Kale Logistics has witnessed increasing demand for its best-ofbreed applications in Middle-East and African sub continent. To strengthen its reach and support services for its regional customers, it has signed up with Encore Enpower for developing a strong

CEVA Logistics recently announced the retirement of John Pattullo, Chief Executive Officer. Marvin O Schlanger, CEVA’s current Chairman of the Board, will be appointed CEO. Pattullo will continue to serve on CEVA’s Board of Directors. “When John came to CEVA, he expressed his expectation of staying with the company for five years,” Schlanger said. “Under his leadership, the integration of TNT Logistics and EGL was successfully executed and the company’s unique customer-focussed, end-to-end operating model successfully developed. He has also assembled a world-class leadership team. All of this has allowed CEVA to serve our customers better and to grow faster than the market. We want to thank John for his strong leadership of the company and look forward to his continued guidance as a member of our Board.” Schlanger added, “I look forward to working with the talented and dedicated employees of CEVA as we execute our strategies to become the most admired company in the supply chain industry.”

FedEx extends 'Priority Alert' services FedEx Express is rolling out a broad expansion of its ‘Priority Alert’ and ‘Priority Alert Plus’ inbound and outbound services, introducing them to more than 70 countries via www.fedex.com/peaceofmind that span the globe including 29 countries in Europe, Middle-East, Indian Subcontinent and Africa (EMEA). FedEx Priority Alert and FedEx Priority Alert Plus will also be offered on domestic services in Switzerland, the United Arab Emirates, Mexico and Canada. FedEx Priority Alert packages are identified with a bright pink tape to signal their priority status when it comes to loading and unloading. Customers use FedEx Priority Alert to ship critical materials for the financial, aerospace, electronics, manufacturing and healthcare industries, where timing and visibility is of the essence. Customers using the service also receive 24/7 support from a team of dedicated global service analysts. These speciallytrained analysts provide an added level of proactive monitoring and notification of the status of a shipment, whether it’s moving through the EMEA region or internationally. Launches ‘FedEx International Student of the Year’ campaign: FedEx Express recently announced the special ‘FedEx Student Offer’ and launched ‘FedEx International ‘Student of the Year’ campaign in association with the film, Student of the Year, produced by Dharma Productions and Red Chillies Entertainment.

STAR APPEARANCE: (L-R) Sidharth Malhotra, Varun Dhawan, Alia Bhatt, Karan Johar, Rakesh Shalia, MD, Marketing, FedEx Express unveiling the International Student of the Year campaign

The campaign gives Indian students who intend to pursue higher education abroad an opportunity to earn a sponsorship of `500,000 and a chance to meet Karan Johar. Targeted at the large Indian student population, the new FedEx Student Offer is a cost-effective delivery of university applications across the world for shipments weighing up to 0.5 kg. The latest solution by FedEx gives a day-definite and door-to-door service with a transit time—typically of 2-4 business days—and is supported by the convenience of online tracking, outstanding customer care services, and the money back guarantee feature with no additional charge.

CRUISING HEIGHTS November 2012

Cargolux and CHEP tie up Cargolux and CHEP Aerospace Solutions have extended their ULD outsourcing and management services agreement until 2017. Cargolux and CHEP Aerospace Solutions, which previously operated as Unitpool, started their partnership in 2009 following a detailed cost and benefit analysis and due diligence process. This extension of their cooperation demonstrates that both parties have been pleased with their arrangement and are committed to further improving their relationship. Cargolux's Henrik Ambak, VP Ground Services and Commercial IT, said that three years ago, “When we made the strategic decision to outsource the management of our entire fleet of over 11,000 ULDs, we expected that pooling our ULDs would deliver tangible service and financial benefits. CHEP Aerospace Solutions' 24 hours a day, 365

days a year operations and extensive global maintenance and service network provide us with peace of mind that we will always have the necessary ULDs at our disposal when and where we need them, allowing us to focus on our core business of flying cargos.”

Lufthansa keeps load factor stable

GACAG urges WCO to turn to e-customs

Volumes declined at Lufthansa Cargo in the first nine months of 2012. Compared with the first nine-month period in the previous year, tonnage fell by 8.9 per cent in the term to 1.29 million tonnes. In a highly demanding global market, the business of Germany's biggest cargo carrier from January through September was depressed especially by a downturn in the Asia/Pacific region (minus 12.9 per cent). Given the adverse market environment, Lufthansa Cargo made flexible use of its capacities to keep utilisation at a high level. The load factor fell year-on-year marginally by 0.3 percentage points to 69 per cent. “Knowing how volatile the airfreight business is and aware of the importance of exercising maximum flexibility, we make a point of focussing particularly on capacity management,” emphasised Chairman and CEO Karl Ulrich Garnadt. In that way, Lufthansa Cargo has kept utilisation of its aircraft stable in spite of the weak market. Garnadt said, “Whenever fuel prices are high, the rule that only high load factors enable a cargo airline to fly profitably applies more than ever.”

The Global Air Cargo Advisory Group (GACAG) has urged the members of the World Customs Organisation (WCO) to adopt and execute the principles of the revised Kyoto Convention and shift from a dependency on paper documents to a full e-customs environment. GACAG pointed out that harmonisation of global customs procedures would play a pivotal role in establishing e-customs platforms and also pledged the support of the entire air cargo industry in the effort. “Doing so will stimulate economic development, remove inefficiencies and lead to much-needed productivity gains,” GAGAG Chairman Michael Steen stated. “Harmonised customs procedures facilitate the international transportation of air cargo and, more broadly, benefit all involved in global trade—including manufacturers, farmers, transportation companies involved in all modes, consumers and nations themselves,” Steen said in a statement.

Blue Dart and DHL sweep awards

Dart Express, won the ‘ELSC CEO of the Year’ award. DHL, on the other hand, received the awards for ‘Best Air Express Provider of the Year -International’ (DHL Express) and ‘Best Logistics Service Provider of the Year-Air Freight’. These awards were a result of an independent research agency entrusted with the task of choosing the winners with the key parameters being the ability to adapt to the business to meet the changing dynamics of the new economic era, drive renewed growth and gain marketshare. Commenting on the awards, Anil Khanna, Managing Director, Blue Dart Express, said, “These awards are yet another manifestation of the group’s stature in the supply chain logistics and express industry and our commitment to continuing excellence in delivery capabilities that have seen us emerge as a ‘provider of choice’ to some of the best known brands in the country. As a good corporate citizen, social responsibility has been a key element in our core strategy. We are committed in letter and spirit to supporting initiatives that make a difference and enable the future.” R S Subramanian, Country Manager, DHL Express, said, “As the leader in international express, DHL continues to provide superior quality of service to its customers through innovative products and services. It is a pleasure to receive this industry award as recognition of the tremendous effort put in by our employees at every service touch point.”

Blue Dart took home the honours in the categories of 'Best Air Express Provider of the Year-Domestic’, ‘Best Air Cargo Carrier of the Year’ and ‘CSR initiative of the Year’. In the individual category, Anil Khanna, Managing Director, Blue

THREE CHEERS: (L-R) Anil Khanna (MD, BDEL) receiving the award from Anshuman Singh (MD and CEO, Future Supply Chain Solutions

A GIANT LEAP: A Cargolux freighter

CRUISING HEIGHTS November 2012

GLOBETROTTING

Poor lady z

Awful sisters z

A lady got so drunk that she made a total ass of herself on a flight. Bela Chopra was already drunk when she got on her plane. When the in-flight meal was served, Chopra began stealing food from other people's trays. Other erratic behaviour included getting out of her seat to use the bathroom while the plane was preparing for take-off and loudly demanding that music be played from the plane's speakers in which she said, “I just want the f*@#% music on”. Crew members who tried to calm Chopra down were told to shut up. Chopra was arrested at Heathrow, where

It proved to be one of the most dreadful flights for passengers who witnessed two sisters quarrel in flight. It all happened at Brisbane Airport when two of the four sisters ordered back to Italy in a bitter custody dispute were taken off their plane after creating a scene that upset other passengers. The two eldest were traumatising other passengers before their flight left and four federal police escorts were unable to restrain them. The two girls were pulled off the flight and stayed at the Novotel Hotel at Brisbane Airport overnight. The girls' great-aunt

she sobered and apologised for her behaviour. She explained she had not slept the night before and was terrified of flying. Chopra said she had been sipping neat gin to calm her nerves which was why she was so drunk.

Tiger unleashed on Tiger z

Losing its sheen z

Believe it or not, a psycho went berserk in a Tiger Airways flight from the Gold Coast to Sydney. The maniac provoked the pilot to fly at full speed so he could be offloaded as soon as possible. Later, the 39-year-old man was arrested when the aircraft touched down after the hour-long flight. Passengers on the flight recounted the horror to Sunday Telegraph about the terrifying incident. Passenger Daniel Schwerdtfeger said he and other men on board kept a close eye on the man, fearing he would storm the cockpit. “It was the scariest thing ever. He eye-balled me from behind the curtain and ran his finger across his neck suggesting he was going to kill me,” he said. Several eyewitness said the man had been acting strangely since departure, but got furious and howled obscenities when a stewardess asked him about his frequent toilet visits. The flight attendant was terrified and had to hide from the man at the front of the aircraft. Schwerdtfeger said he joined her to keep her safe from the abusive passenger, who allegedly yelled, “I hope you have life insurance.”

A drunken businessman created a ruckus in mid-air when he started giving passengers €50 notes during a flight before breaking up a mobile phone Sim card and eating it. Leon Quarless, who had been drinking before boarding the flight from Palma to Blackpool, also dished out Sterling from a bag containing thousands in both currencies. But when people refused to accept the notes, the 45year-old from Formby, Liverpool, the UK, started screaming and cursing. Cabin crew alerted the pilot who radioed ahead to police. Quarless was arrested and escorted from the aircraft when it landed. Later, Quarless pleaded guilty to being drunk on the Boeing 737 on a flight. He was fined £320 with £85 costs and ordered to pay the £15 victims' surcharge by Blackpool magistrates. Presiding magistrate, Andrew Myers, said “Your behaviour was nothing short of disgraceful. You will now be passing some of your money to the court rather than giving it away in planes.”

CRUISING HEIGHTS November 2012

You can't steal my iPad z

told AAP, “They were screaming, kicking, fighting and struggling like wild animals. They were traumatising the other passengers. How the hell could you put children like that on a plane?”

If you think stealing an iPad is child's play, then read this story and you will find out that it is not that easy. A US airline passenger who lost his iPad on board used a special app to find it, in the home of one of the flight attendants. The attendant, identified as 43-year-old Horizon Air employee Wendy Ronelle Dye was arrested. The passenger was a Nevada man who used the Find My iPad app to locate his tablet after it went missing on the plane. Bill Kler, Spokesman, Oregon City Police Department, said, “Travellers on the aircraft said they found the tablet

on a seat and gave it to her, and she had planned to turn it over to the airline eventually and had not used it. But police found personal information of hers on it, including her husband's birthday.”

No model passenger z A male model, Arash Durrani, was restrained on board a United Airlines flight from Chicago to John Wayne Airport, California, the US. The drunk male model wrestled with passengers on board the plane before he was tied up with their belts for three hours. Passengers said they had to tackle the man who was behaving aggressively and grabbing women during a flight from Chicago to Orange County's John Wayne Airport, the US.

Philadelphia International Airport. The gun imploded when a police officer made an attempt to put the gun on safety mode — but missed hitting anyone, WPVI reported. The bullet went into a TSA break room where an employee was seated. No one was injured. Philadelphia Police told NBC. Luby, who has been an air hostess for more than five years, had a permit to carry a gun but had forgotten to take it out of her purse.

Help, this plane smells bad! z Passenger David Truong told a newspaper, “Durrani began pacing around the plane about 45 minutes into the flight and was grabbing women and harassing people. I was on his chest and three other guys were holding his arms and legs. He would go in and out of consciousness, but every time he came around he would try to fight again.” “He grabbed my hair and lifted my head up and said, I want to kiss you,” said another passenger, Nona Pitts. According to IMBd.com, Durrani is an actor, model and founder of GROW Clothing, a company geared toward promoting awareness of social movements and charities.

Gunfire at ground level z It was one of the strangest things to have happened in flight. A gun that was detected inside an air hostess' purse at an airport was accidentally fired when it was taken into a search room. Republic Airlines flight attendant Jaclyn Luby said she forgot she had a gun in her handbag when she brought it to the

Strange things happen on flight. A Qantas plane had to make an emergency landing in Darwin after an unusual smell filled the cabin. “Qantas flight QF5 operating from Sydney to Singapore diverted to Darwin due to an odour in the cabin,” a Qantas Spokeswoman said. “The captain requested a priority landing. The odour dissipated within 10 minutes. The captain said it smelled of plastic. No medical attention was needed for any of the passengers or crew.” Twitter users on board the flight described the experience. Mark Cubey wrote, “It was all going well — aisle seat, Moonrise Kingdom — until the smell of burning filled the plane. Now grounded in Darwin. Waiting...” While another passenger Jim Macnamara wrote, “Electrical fire on Qantas QF5 to Singapore. Landed safely in Darwin. Stranded. But welcome Terra firma.”

CRUISING HEIGHTS November 2012

SNIPPETS

INTERNATIONAL AIRLINES Virgin Atlantic pledges £300m investment VIRGIN ATLANTIC stated that its product investment programme for India would reach more than £300m as it started its flights from London Heathrow to Mumbai offering fabulous connections to USA powerhouses of New York, Boston, Washington, Miami and Chicago. The two new A330 aircraft with its latest Upper-Class product to both Mumbai and Delhi represent a record product investment in the region for the airline. Mumbai launch also signifies the airline's biggest connectivity offering and commitment to India. The move will also create 140 new jobs across India and the UK. The restarting of the Mumbai route will double the capacity to India for Sir Richard Branson’s airline with daily services to both key markets and strong connectivity to the US along with the UK. One million people fly between Mumbai and the UK each year, with the market increasing by 10 per cent in the last two years alone. With India’s economy remaining one of the fastest growing in the world, Virgin Atlantic expects passenger numbers to continue to rise. The President of Virgin Atlantic, Sir Richard Branson, said, “We are delighted to be back in this amazing city. The importance of strengthening the connections between the economies of India, the UK and the USA cannot be emphasised enough — our new daily connecting service from Mumbai all the way to the USA will be a winner for businesses across all three continents.” “Given the importance of both of our Indian markets we are introducing our newest aircraft on flights from India, which represents hundreds of millions of pounds of investment. Our arrival will offer the people of Mumbai more choice and a better service.

It goes without saying that we will be bringing to Mumbai our unique product and services but with local relevance. With Indian food, Indian entertainment and warm Indian crew, I am confident Mumbaikars will choose to fly with Virgin Atlantic.” The key market for the airline will be business travellers, passengers visiting friends and family and leisure travellers, which represent 80 per cent of the 300,000 plus passengers the British airline will initially carry each year to and from India. With its Mumbai route launch, Virgin Atlantic is seeking to build on record demand for travel between Delhi, London and New York. Last year there was a 13 per cent increase in the airline’s passenger numbers between Delhi and London. The airline attributes much of the increase to more passengers connecting via London. The airline expects to develop this trend further with the introduction of this weekend of a new service to New York. The latest addition to Virgin’s schedule mean passengers can connect seamlessly to New York along with the existing connection to Newark from Delhi also. This daily service to New York will depart at night from Heathrow, which returns early the next day from JFK airport. Mumbai along with London will also have daily two way connections to New York, Boston and Washington along with four weekly connections to Miami and summer connectivity to Chicago. The A330-300, flying on the routes from both Mumbai and Delhi, carries the brand new Upper-Class Suite, with an enhanced seat, a futuristic bar, and many other cabin updates to give passengers a unique flying experience. All cabins are fitted with the latest touch-screen in-flight entertainment.

INDIAN STYLE: Chairman of Virgin Atlantic Sir Richard Branson playing an Indian drum during a parade in Mumbai.

CRUISING HEIGHTS November 2012

AirAsia’s Tan: ‘Marketer of the Year’ AIRASIA’S GROUP Head of Commercial, Kathleen Tan, described as one of Asia’s top 10 most influential women leaders and brand advocate in travel industry, was named as Web in Travel’s (WIT) ‘Marketer of the Year’ award winner at the recent annual WITovation awards ceremony, held in conjunction with the WIT ‘Unplugged’ Conference 2012 at the Sands Expo and Exhibition Centre in Singapore. A TOP PLAYER : AirAsia’s Kathleen Tan awarded “Marketer of the year” The ‘Marketer of the Year’ award — an editorial choice prize — was presented to Kathleen Tan in recognition for her remarkable achievements in building the AirAsia brand and for possessing a great vision and leadership.

Cathay offers luxury on Delhi-Hong Kong

content through their personal television. Cathay Pacific’s General Manager (South Asia, Middle-East and Africa) Tom Wright said, “At Cathay Pacific, we always do our best to make our customers feel special. India is a growing market for luxury travel and our new three-class product will provide our passengers here with the ultimate travel experience.”

AI Express to acquire 14 aircraft AIR INDIA Express (AIE) will be acquiring 14 Boeing 737-800 aircraft in the next four to five years, a move that will strengthen its fleet from 21 to 35. Announcing the acquisition plan, Chief Operating Officer, Ansbert D’souza and Deputy Chief Operating Officer, Captain Puspinder Singh, said the decision to get the new aircraft was taken as part of the `30,000 turnaround plan approved by the Civil Aviation Ministry for Air India as a whole. A decision is yet to be taken on whether the airlines will go in for leasing or buy the aircraft. The airline’s current fleet comprises 17 owned and four leased aircraft. AIE’s revenue was `1,700 crore last year and it is expected to touch `2,000 crore this year with the proposed 57 per cent hike in services. Faced with acute criticism on cancellation of flights, particularly in the Kerala-Gulf sector, the officials said the airline would ensure scheduled integrity and promptness in departures. Pointing out that nearly 60 per cent of AIE operations were

WITH THE introduction of its award-winning new Business Class cabin and new Premium Economy Class cabin on the Delhi-Hong Kong route, Cathay Pacific will be giving its passengers a taste of unmatched luxury. Cathay Pacific aircraft operating between the two cities will feature a three-class configuration — new Business Class, Premium Economy Class and the new long-haul Economy Class seats.

GOING PLACES: An Air India Express aircraft

PROVIDING UNMATCHED LUXURY: (L to R) Cathay Pacific airline’s Abhijit Abhyankar, Area Sales Manager, Northern India,Tom Wright,GM, South Asia Middle East and Africa and Rakesh Raicar, Regional Sales and Marketing Manager South Asia, during the press conference in New Delhi to announce the new luxury flight between Delhi to Hongkong

The airline’s new Business Class cabin is the result of collaboration between its customers and the Cathay Pacific team. The product design allows passengers to control their degree of privacy and openness while enjoying the renowned personal service that sets Cathay Pacific apart from other airlines. Cathay Pacific’s new Premium Economy Class was designed with the entire customer experience in mind. It features a quieter, more spacious cabin than the traditional Economy Class with between 26 and 34 seats per aircraft. The new long-haul Economy Class seat features a cradle mechanism to enhance the level of comfort in the recline position. Each seat comes with the latest high-resolution touch-screen personal television, a USB outlet and an iPod/iPhone outlet to allow passengers to connect their own mobile devices to view

based out of the three airports in Kerala and the one in Mangalore, they said that the airline’s investment in Kerala and Mangalore was `3,600 in aircraft alone. The AIE would base four aircraft in Kozhikode and three each in Kochi, Thiruvananthapuram and Mangalore. “Another `100 crore have been invested in the hangar facility in Thiruvananthapuram. This aircraft’s Maintenance, Repair Overhaul (MRO) facility will be able to perform ‘C’ checks of aircraft (after 6,000 hours of flying) in a few months’ time. It is waiting for DGCA approval to start brakes assembly production,” they said. 27 additional flights to Gulf by AIE: The number of Air India Express (AIE) flights from the three airports in Kerala and from Mangalore to the Gulf countries have gone up from 92 per week to 119. This addition of 27 flights per week, as part of the winter schedule of the budget carrier, means a rise of about 3,800 seats in the Gulf sector from October-end to almost the end of March 2013. AIE officials informed that since the launch of its low-budget carrier in 2005, this was the first time that the airline was deploying so many services from the cities of Kerala and Mangalore to the Gulf countries. Passengers from Kochi will be offered convenient connections to Dammam via Kozhikode daily, and to Kuwait three times a

CRUISING HEIGHTS November 2012

SNIPPETS week. The boarding cards for both these destinations will be issued in Kochi and the baggage will be tagged to the ultimate destination.There will be daily flights from Kozhikode to Abu Dhabi, Dubai, Sharjah, Bahrain, Doha, Dammam and Muscat. Salalah flight from Kozhikode will be twice a week, while Kuwait flight will be thrice a week. The new schedule will offer daily flights from Thiruvananthapuram to Abu Dhabi and Dubai daily, thrice a week flights to Muscat, four times a week service to Sharjah and twice weekly flight to Salalah. The schedule offers new flights from Mangalore which is also being used by large number of Gulf migrants from north Kerala.

India, New Zealand join hands in aviation FOLLOWING THE signing of an arrangement to support increased training and technical cooperation in civil aviation, New Zealand and India’s collaboration in the aviation sector is set to progress. The signing was witnessed by visiting New Zealand Minister for Economic Development, Steven Joyce, and Ajit Singh, Minister of Civil Aviation, at Safdarjung Airport in New Delhi. A booming local civil aviation sector is providing significant opportunities for collaboration, with India predicted to jump from the ninth largest civil aviation market to Steven Joyce the third by 2020. Domestic traffic is predicted to grow from 46 million to 90 million with international traffic soaring from 34 million to 90 million in the same period. As a world leader in innovative aviation technology, New Zealand is already working in India in infrastructure development, pilot training, and engine maintenance and repair. Recent projects by New Zealand companies have included the provision of products and services to airports in Delhi, Mumbai and Hyderabad. “This aviation arrangement demonstrates the strengthening business relationship between New Zealand and India,” said Steven Joyce. “Already, New Zealand aviation companies are making their mark in India with a range of successful projects. This arrangement will see India and New Zealand commit to further exploring exciting opportunities for co-operation in the aviation sector.”

Air Arabia adds fourth destination WITH THE launch of its flights to Kazan, Air Arabia, the low-cost carrier (LCC) of the Middle-East and North Africa, recently announced that it had added its fourth destination in Russia. The new route is Air Arabia’s fourth destination in Russia and will become the carrier’s ninth destination in CIS and Russian Federation, as well as its 78th worldwide. As part of its route expansion strategy in the Russian Federation and CIS region, Air Arabia has also launched an additional weekly service to Yekaterinburg. With the launch of the additional services, Air Arabia will now operate more than 30 weekly flights to Russia and CIS region. “The launch of our non-stop service to Kazan is a continuation of Air Arabia’s promise to customers to expand its Eastern European presence and offer value for money fares to multiple

ADDING DESTINATIONS: An Air Arabia fleet at one of the airports

destinations in the Russian Federation,” said Adel Ali, Group Chief Executive Officer, Air Arabia. “We have marked our expansion into Russia last October and with this new service, Air Arabia will further contribute to the ever-strengthening social and economic ties between the UAE and Russia.”

Qatar extends presence in Iraq QATAR AIRWAYS continues to expand its network with the announcement of scheduled flights to Najaf — its third route in the Republic of Iraq, effective January 23, a move that will take the airways’ frequency to Iraq from eight flights to 12 services a week. The southern city of Najaf, home to the holy Imam Ali mosque, joins the capital Baghdad and northern city of Erbil, two routes launched earlier this year. The Doha-based airline will operate four-flights-a-week nonstop to Najaf, offering travellers a greater choice of travel options to more than 100 destinations around the world served by the airline via its hub. The Najaf route will be operated with an Airbus A320 in a two-class configuration of 12 seats in Business Class and 132 in Economy. Qatar Airways Chief Executive Officer Akbar Al Baker said that he was delighted the airline was boosting services to Iraq, a market where the carrier this year alone had launched services to two prime cities. “Iraq is proving to be an important market for Qatar Airways; we currently operate four-flights-a-week between Doha and the cities of Baghdad and Erbil. We are confident that Najaf will prove to be a popular destination for our passengers, especially those from the Middle East, Africa and Asia Pacific and those returning to visit their homeland,” he said. “With major infrastructure developments and vast untapped tourist potential, we are very excited about our launch of flights to Najaf.”

BIS empowers BB Airways BIRD INFORMATION Systems Private Limited (BIS) recently entered into a strategic partnership with the Nepalese carrier BB Airways, for the use of its Airline Inventory and Reservations System (AIRS). Bhuban Bhatta, Chairman of BB Airways, and Ankur Bhatia, Executive Director, Bird Information Systems, recently signed the contract. As per the partnership, Bird Information Systems will provide BB Airways the booking technology for the Airline Inventory Hosting, reservation at all city and airport offices, call centres and internet booking engines. Further, through the use of AIRS, BB Airways will have access to a user-friendly GUI (graphical user

CRUISING HEIGHTS November 2012

interface) which will enable their partners — whether it will be travellers or travel agents — to make online reservations quickly and easily. BIS will also provide BB Airways with a unique stateof-the-art Departure Control System for their airport operations. Travel agencies would benefit from a distribution interface and a unique integrated application within using AIRS. Commenting on the partnership, Ankur Bhatia, Executive Director, Bird Group, said, “Our expertise in providing cuttingedge technology for the travel and aviation industry as well as our continued focus on service excellence has resulted in strong relationships in the entire SAARC region. This strategic alliance

DOMESTIC AIRLINES Affordable holidays with JetEscapes JET AIRWAYS has recently introduced a slew of affordable JetEscapes holidays for those who want vacation within the country this winter. These all-inclusive holidays are being offered across various popular domestic tourist destinations and include return air travel in economy, airport transfers, accommodation at budget hotels as well as four and five star hotels with breakfast, sightseeing and travel insurance. These holidays can be availed at attractive rates. For example, there is a two night stay in Kochi and Jaipur starting at `12,575 and `12,675, respectively. A three-night stay at Goa starting at `13,785 and many more extended duration

with BB Airways will give us another opportunity to empower an airline with the latest technology to improve its operational efficiency.” Bhuban Bhatta, Chairman of BB Airways, said, “We are sure that our association with Bird Information Systems will power the airline with state-of-the-art technology that integrates at all levels of operation. Through AIRS, we have acquired a hosting solution that is cost effective and yet enables us to integrate seamlessly across our distribution channel network comprising ATOs (Airline Ticketing Offices), CTOs (City Ticketing Offices), call centres, travel agencies and end-customers.”

Japan celebrates India ties AS PART of an ongoing series of events to commemorate the 60th year of diplomatic relations between India and Japan in 2012, an event was recently organised by the Japan Tourism Agency (JTA), Japan National Tourism Organisation (JNTO) and the Embassy of Japan at the India International Centre (IIC) in New Delhi. Bollywood actress Dia Mirza was in Delhi as a part of the event to

STRENGTHENING TIES: Dia Mirza to promote Japan Tourism in India seen with officials from JTA, JNTO and Japan Embassy in India

promote Japan tourism in India. The event also featured spectacular performances by traditional dancers from Morioka and Sendai regions of Tohoku in Northern Japan, a region often referred to as a “treasure chest” of folk arts. The centuries-old folk music and dance tradition survived the ferocious earthquake and tsunami of 3/11. The region is now on the road to recovery and efforts are being made to continuously revive the tourism in affected areas.

packages in Kerala, Himachal Pradesh, Golden Triangle and Kashmir are also on the offer. Besides, JetEscapes is also offering special winter holidays to destinations across the globe. JetPrivilege members earn five JPMiles on every `100 spent while they avail of these packages. According to Sudheer Raghavan, Chief Commercial Officer, Jet Airways, “Jet Airways has always focused on providing exceptional value to its guests by way of special programmes and partnerships. This initiative is yet another step in that direction offering guests attractive benefits. It is our endeavor to create an exceptional experience that will result in creating a strong relationship based on value propositions and reliability, with our discerning travellers. We are confident that our packages will prove to be extremely popular with travellers.” ‘Premiere’ service on JetKonnect: JetKonnect recently announced the introduction of a premium service onboard its flights. “The JetKonnect flights, being operated with Boeing 737-700/800 planes, will now come equipped with a premium, front-end premiere cabin allowing guests to experience Jet Airways’ acclaimed ‘Premiere’ service across its full service and low-fare brands respectively,” a Jet spokesperson said in a statement. The ‘Premiere’ cabin service comes with plush, extra-wide seats with a 44-inch seat pitch, delectable multi-course menu options, extra leg-room, dedicated checkin counters and 30 kg baggage allowance. Celebrates its 5th year in Brussels: To celebrate the 5th anniversary of Jet Airways in Brussels, the Belgium trade was invited at the zoological garden Planckendael (Mechelen, Belgium). The theme of the evening was “India” to give the agents a feeling of what the country has to offer. In addition, the event comprised extensive Indian buffets, exceptional decorations, stunning prize draws, Indian dancers and a birthday cake.

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SNIPPETS

TRAVEL & TOURISM Royal Phuket Marina offers luxury living ROYAL PHUKET Marina introduced La Reserve Residences, oneof-its-kind residential units, marking its India entry. The majestic project offers Indians to own a lavish home, with first 40 condominiums amidst the beautiful seascapes in an international destination at an introductory offer starting from $164,000. Gulu Lalvani, the Founder and Chairman of Binatone, has built Royal Phuket Marina with an investment exceeding $100 million. This ambitious project is a testament to his love for Phuket and yachting.

destination of choice for the producers of Once Upon a Time in Mumbaai-2 and it fits seamlessly into the script of the movie. We believe that through the movie the audiences will see the different facets of Oman in their natural splendor,” says Lubaina Sheerazi, Ministry of Tourism, Oman-India representative.

Mapple inaugurates two hotels THE MAPPLE Group of Hotels recently inaugurated two new hotels — the Mapple Exotica, on Chattarpur Mandir Road — and the Mapple Emerald on National Highway — 8 for its Delhi clientele. Mapple Emerald and Mapple Exotica comprise over forty elegantly designed rooms and suites set within world-class infrastructure and amenities, offering breathtaking views of green vistas and tranquil surroundings. The commodious indoor halls have the capacity to adapt to small groups of 50 or larger groups of 1000. Meanwhile, outdoor spaces of up to 36,500 sq ft allow you to comfortably host events for a gathering of 2000 or more.

List of top cave destinations unveiled LIVING A DREAM: A view of the luxurious Royal Phuket Marina

La Reserve Residences at Royal Phuket Marina feature 40 oneand-two-bedroom spacious condominiums in two separate buildings each with its own private rooftop ‘Sky Pool’. Additionally, it is equipped with optional furniture and fit-out packages, allowing owners to purchase a fully-decorated and ready-to-move-in unit. Commenting on his dream project, Gulu Lalvani, Chairman, Royal Phuket Marina, said, “Royal Phuket Marina is an outcome of my vision to create the best yachting paradise possible. With yearround sailing, today it is a leisure and lifestyle hub on par with the best in the world. With our newly-launched La Reserve Residences, combined with our Royal Villas, and Aquaminium, the world’s first waterfront condominium with private moorings for boats, I am sure Phuket will not only be restricted to be a tourist attraction but also is already the favourite holiday destination for the discerning luxury seeker.”

TRIPADVISOR RECENTLY announced the list of top cave destinations in India to consider for your next vacation. These comprise the Ajanta Caves, Aurangabad (World Heritage Site); Ellora Caves, Aurangabad (World Heritage Site); Rock Shelters of Bhimbetka, Bhopal (World Heritage Site); Badami Cave Temples, Badami, Kanheri Caves, Mumbai; Borra Caves, Visakhapatnam, Udayagiri Caves; Bhubaneswar Edakkal Caves, Kalpetta, and Karla Caves, Lonavala. The top three caves — Ajanta, Ellora and Rock Shelters of Bhimbetka — are also recognised by UNESCO as World Heritage sites and a number of these monuments are protected sites by the Archaeological Survey of India.

Slovenia Embassy appoints VFS Global THE EMBASSY of the Republic of Slovenia in New Delhi, India introduced a new facility for collection of visa applications and

Trimbakeshwar on Ibis Nashik radar Balaji Motion Pictures ties up with Oman BALAJI MOTION Pictures recently shot a part of its much-awaited film Once Upon A Time in Mumbaai2 in the Sultanate of Oman. The sequel to the 2010 blockbuster, which is top-lined by superstars such as Akshay Kumar, Sonakshi Sinha, Imran Khan and Sonali Bendre, is slated for an August 8, 2013 release worldwide. This was the first time that a major Bollywood film was shot in Oman. Speaking about the destination and the experience of shooting in the country, Tanuj Garg, CEO-Balaji Motion Pictures, said, “Oman is a stunning country with varied landscapes. We required a good mix of retro and contemporary for the part we wanted to shoot there, and Oman gave us a lot more. It has a lot to offer visually, which worked well for us as film-makers.” The film shoot, a first-of-its-kind in and for Oman, is set to bring the destination to limelight. “Oman’s stunning locale was a

IN AN effort to provide a holistic experience of Nashik to its customers, Ibis Nashik will offer its customers visits to the Trimbakeshwar temple and Sula Vineyards, inclusive with the accommodation. The objective of this service is to provide complete package of value-added services to its customers to increase tourism in the city. This service is most suitable during long weekends, get away, short vacations with family and friends and company off sights. Speaking about the offer, Rohit Ahuja, General Manager of Ibis Nashik, said, “Our primary focus is to provide our guests with international experience at a reasonable price, through our services. Nashik is a gifted city with culturally rich temples and alleys of vineyards. Tourism in Nashik is growing at a fast pace every year. This along with increasing business set ups and manufacturing units coming up in MIDC gives us a great opportunity to service the business segments of the city.” Ibis Nashik provides the best quality service and value for money. It offers maximum comfort, flawless service and a warm welcome 24 hours a day, all at an unbeatable price. It is well-connected

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delivery process with the appointment of VFS Global. VFS Global will offer the new visa application services in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi. The new service for Slovenian visas are offered at VFS Global-operated Joint Visa Application Centres at Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi. VFS Global will be responsible only for accepting applications for Slovenia visas from applicants residing in India. All applications will continue to be assessed and processed by the Embassy of the Republic of Slovenia in New Delhi, India. The key features of these centres will be longer operating hours, dedicated website for easy access, visa information including visa types, applicable fees and application status, professional and responsive staff dedicated to handle visa queries, dedicated call centre unit and email support. Offers Dubai Visa free: Dubai Visa Processing Centre (DVPC), a part of VFS Global, kick-started its promotional campaign for the upcoming holiday travel season with the launch of its ‘Dubai Visa for Free’ offer. Emirates passengers can now get their visas virtually for free by applying with DVPC when flying to Dubai or to onwards destinations transiting Dubai. Upbeat about this campaign, Jervis D’Souza, Head, Special Projects-DVPC, VFS Global, said, “We are pleased to announce our new offer — ‘Dubai Visa for Free’, for the upcoming holiday season. Travellers can now avail a host of additional benefits when applying for their Dubai visas through DVPC, equivalent to the cost of their visa charges.”

Citrus forays into North with Gurgaon hotel WITH THE start of the Citrus Gurgaon Central in Sector 29 of Gurgaon, Citrus Hotels & Resorts has made its foray into the North Indian market. The 46-room property has been taken on a long lease and is now fully operational. Speaking about the launch, Kurian Varghese, General Manager-Travel Trade, Citrus Hotels, said, “The NCR region has a total inventory of 22,900 Keys of which 75 per cent are accounted by the organised sector. The organised segment in the region has 17,550 keys in the pipeline over the next five years. According to the Airports Authority of India, the highest number of air arrivals was recorded in NCR (18.2 million) with the domestic arrivals accounting for 12.7 million and foreign arrivals 5.5 million. We

to Nashik’s industrial landscape wherein some of the leading national and international companies like Mahindra & Mahindra, Bosch, CEAT, ABB, Crompton Greaves, Siemens, Kirloskar, GlaxoSmithKline, Eaton are present.

are, therefore quite confident, that Citrus will do well from the first year of operation. Being a smaller inventory hotel, we have the advantage of choosing the best price business.” The Citrus Hotels Gurgaon Central property will have trademark outlets like BISO (the coffee shop), 60 ml (the bar) and is in the process of setting up SKYLIT, a rooftop restauEXPLORING NEW LAND: The Citrus rant. The 46 well-appointed Hotels and Group entered north rooms are in the Superior, with the Citrus Gurgaon Central Deluxe, Premier and Suite categories. The key feature of the hotel is its meeting and conference room, which are Citron 1 with the area of 1200 sq ft and Citron II with the area of 650 sq ft. Both of the conference halls are fully equipped with high-speed Wi-Fi internet and LCD projector. The hotel also has a swimming pool and a fitness centre.

Indian Hotels Company ups the ante THE INDIAN Hotels Company Ltd recently announced that it along with Charme II Fund, an Italian Fund, had sent a letter to Orient-Express Hotels Ltd. “Orient-Express” is proposing to purchase all of the outstanding shares of Orient-Express’ Class. Indian Hotels’ and Charme II Funds’ proposal, which would create one of the world’s preeminent portfolios of luxury hotels and resorts, is valued at approximately $1.86 billion, including OrientExpress’ net debt. The all-cash offer represents a 40 per cent premium to Orient-Express’ closing stock price on October 17, 2012, the last trading day prior to this announcement, a 45.2 per cent premium to Orient-Express’ 10 trading day average of closing stock prices, and a premium to the 52-week closing high of $10.90 per share. “Indian Hotels has great respect for Orient-Express and its collection of unique luxury hotel properties around the world and we are very excited at the prospect of bringing our two great companies and brands together,” said RK Krishna Kumar, Vice Chairman of Indian Hotels. “We believe this premium all-cash offer represents a compelling and immediate value proposition for Orient-Express’ shareholders and provides Orient-Express with access to the additional capital necessary to preserve its properties and heritage while potentially expanding its footprint.”

TAAI hosts Indian Travel Trade Expo

VISITING THE DIVINE: The Trimbakeshwar temple in Maharashtra

THE TRAVEL Agents Association of India (TAAI) hosted the Indian Travel Trade Expo (ITTE) 2012 on October 22-23 at the Trident, Nariman Point, Mumbai. The expo brought together seven nodal travel and hospitality associations for a business session titled ‘The United Voice — President’s Round Table’. Participated in the session were the Presidents and Representatives of eminent associations. The confirmed list of attendees includes the host Iqbal Mulla, President of TAAI; Sarabjit Singh, President of ITTA; Subhash Verma, President of ADTOI; Subhash Goyal, President of IATO, Bharat Thakkar, President of ACAAI; and a representative from ETAA. Iqbal Mulla, President of TAAI, said, “Over the years, ITTE has emerged as a strong networking platform for exhibitors to showcase its products and services to its domestic and foreign counterparts. We want to make maximum use of the opportunity that ITTE 2012 offers by providing a multi-faceted exposure through interactive business sessions and the travel trade awards.”

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HEAVEN OF HEALTH FREAKS : The Farmers’ Market at Terminal 3 of Chicago o’Hare airport that sells fresh herbs from the aeroponic garden as well as healthy snacks

O’HARE GETS FRESH WITH

PASSENGERS irports generally may not have a good reputation for helping in the reduction of CO2 emissions or satisfying the health-conscious eater. But Chicago’s O’Hare airport has set new standards by transforming a 928sq-ft mezzanine area into high-tech aeroponic garden in Terminal 2, where 44 different types of organic herbs and vegetables are grown. The garden is a joint effort between the Chicago Department of Aviation (CDA) and HMSHost, a world leader in travel dining and shopping. Aeroponics is a method of growing plants in a waterand-mineral nutrient solution without soil. The method/technology is becoming increasingly popular around the world as the growing concrete blocks have left agriculture with very little space. The O’Hare garden provides year-round cultivation and can produce a higher yield per square foot, requires no weed pulling. In addition, the garden uses about two-third less water. What will sound music to health-conscious passengers’ ear is the new farmers’ market at the airport’s Terminal 3, located right below the O’Hare Urban Garden in the rotunda area near the entrance to Concourse G. It offers fresh herbs including basil, coriander and thyme, which are all grown at the airport’s aeroponic garden. A variety of other snack items is offered at O’Hare’s farmers market including dry cereal, trail mix, hummus plates and marinated olives.

FRIENDS OF NATURE: On September 16, 2011, Rosemarie S. Andolino, Commissioner, Chicago Department of Aviation (CDA) (left) and Elie W. Maalouf, President and CEO, HMSHost, cut the ribbon for the grand opening of the O’Hare Urban Garden, a unique, environmentally-friendly aeroponic garden located in the mezzanine level of Terminal 3, G Concourse

Passengers can take home some of the surplus herbs, which are packaged in nice to-go containers. Until now, most of the produce grown in O’Hare’s aeroponic garden was used exclusively by some of the HMSHost airport restaurants, including Tortas Frontera by Rick Bayless, Blackhawks Restaurant, Wicker Park Seafood and Sushi, and Tuscany. “We are very excited to partner with HMSHost to offer this unique ‘farm to table’ experience for travellers and employees at O’Hare International Airport,” said CDA Commissioner Rosemarie S. Andolino. “The O’Hare farmers’ market supports our overall sustainability efforts by providing fresh, delicious and healthy food options that are produced locally. It also helps promote Chicago’s outstanding citywide farmers’ market programme, as well as local food companies and products.” Airport delays at this airport are not going to be reason for frustration any more but will give travellers time for a one-of-itskind experience. O’Hare has set the trend for healthy airports and while Singapore has a garden in one of its terminals, let us see which airport takes a step towards greenery? n

CRUISING HEIGHTS November 2012