cruising heights by Newsline

CHOPPERS BECOME HEROES IN HIMALaYAN TSUNAMI

Cruising heights www.cruisingheights.in

july 2013 I `90

Back to health Pushing back the gloom of recession, the 50th edition of the Paris Air Show breathed life into a wheezing aviation industry

Bisignani Shaken and Stirred

Former IATA Chief on his IATA days and the aviation scenario of the future

air cargo, a la ram menen

Former Emirates Skycargoâ&#x20AC;&#x2122;s Senior Vice President talks about the future of air cargo

PEEK INTO THE FUTURE

Air traffic will be controlled from a room hundreds of miles from an airport

Airbus, its logo and the product names are registered trademarks.

With the A380, the sky is yours. Itâ&#x20AC;&#x2122;s the quietest, most spacious cabin in the sky. And with the widest seats and aisles, even in economy, itâ&#x20AC;&#x2122;s no wonder passengers opt for the comfort of the A380 when given the choice. That means higher market share, higher load factors and higher revenues.

Own the sky

editor-in-chief's note

When will we finally understand aviation?

ne of the great highlights of the Paris Air show was the success of the so called ‘small players’. Turbo prop giant, K Srinivasan ATR had its best year at the Paris Air Show, Embraer’s new jet E2 made a spectacular splash and ran away with honours in the first three days of the show and the general inference was that regional airlines and aircraft that catered to the 70-100 seat capacity would boom and thrive. Then, why is it that in India this market simply seems to be stagnant with the little impetus to grow this segment coming from SpiceJet that flies the Bombardier Q400 to great success in its Southern hub. Perhaps, the answer lies not in the aircraft or the airlines but the manner in which we run our aviation. There is simply no incentive to ramp up regional operations. It doesn’t give you that little extra that will make it worthwhile to make the effort. Considering the present cost of fuel, the airport charges, and the security paraphernalia that you have to have in place, there is simply no chance of a regional player making any money. There have been some moves by the government to change some of the archaic regulatory elements to make it easier for new players. But that’s still a work in progress. In fact, almost everything in Indian aviation is a perpetual work in progress. Nonetheless, two Indian carrier — Air Costa and Kairali Airlines — will launch operations later this year: the former in July and the latter in November. Air Costa is currently awaiting final approval from the Directorate General of Civil Aviation (DGCA) to begin operations with three Embraer jets. K N Babu, CEO, Air Costa, was quoted by the media as saying: “We intend to link regional towns and cities with short-haul connectivity to ensure that these destinations are served adequately with air services.” Kairali Airlines, on the other hand, will operate from and

Cruising Heights July 2013

connect Bengaluru, Chennai, Mangalore and Mumbai with Thiruvananthapuram, Kozhikode, Kochi and the Lakshwadeep Islands. They are expected to operate with five aircraft. K Praveen Kumar, Chairman and Managing Director, Kairali Airlines, was quoted in the media as saying: “In the overseas sector, after six months of domestic operations, we will connect Kerala with the United Arab Emirates first, and then spread to other international destinations.” It’s gentlemen like Mr Kumar who make me nervous. Either they don’t know the airline business or he thinks he is in Comedy Central. It takes months and months, in fact years, for airlines to consolidate and add new routes and gain traction. And here is Mr Kumar telling the world that he could be flying to Dubai and later to Ibiza six months after launch! The problem with Indian aviation is that half the players in the business are mercenary ‘cash and carry’ types who do not look beyond their noses and worry only about what’s in it for them. And a majority of the rest is the Bollywood type who wants to enjoy and have a good time and feel that running an airline is the glamorous equivalent of hanging out with Karan Johar. No wonder no one takes us seriously. Frankly, at Paris, there was no India talk and what little did take place was hugely negative. But no one seems bothered and the few serious players in the business actually wonder each day at what they have got into and slog on manfully hoping that things will improve! In these difficult times, that’s the only thing that has any value in the aviation business in the country: Hope!

srini@newsline.in

End of the road ? Airlines are finding newer ways to charge extra from the passenger. With every new fee added, it becomes harder for airlines to come up with new things to charge for. What it seems to signify is that carriers are slowly but surely running out of ideas for new fees to pass along to their customers. This looks like the case for Spirit Airlines—touted to be US most fee-crazy carrier. The typical Spirit passenger pays an extra $103 in fees for every round trip with the airline. And that figure was declared in mid-2012—before Spirit raised the cost of a few of its fees. For every $3 garnered by Spirit, only $2 comes as a result of payment for flights; the other one-third of total revenues comes from Spirit customers paying for fees including carry-on luggage, seat assignments, bottled water, and more. Spirit Airlines CEO Ben Baldanza was, in fact, quoted as saying that the carrier was almost at the limit of adding new fees. “Our fares pretty much include the right to get on the plane and get off at the other end, to have a safe and on-time flight and that’s pretty much it. So there’s not really much else we can take out of that.” As a matter of fact, the airline has suffered the ire of passengers on social media due to its strange ways of picking up the additional charges. A popular boycott campaign on Facebook was done slamming its un happy ways of charging fees so much so that Baldanza defended it by saying, “What we do is we strip out all of the things that can be a decision point for the customer—like whether you take bags or not, or if you want to pick where you sit on the plane, or whether you’re going to eat on the plane or not.”

contents

A big deal

p30

The 50th edition of the biennial Paris Air Show ended on a strong note. The world’s largest exhibition of commercial and military aircraft witnessed more than 350,000 attendees as well as 2,200 corporate exhibitors from 44 countries. Aerial performances, big contracts and new products dominated the show. Boeing and Airbus tussled to sell long-haul planes. In the end, European aircraft manufacturer Airbus stole the thunder by garnering the maximum number of orders.

h c tiwari

Off the cuff

cover story

news digest

p14

Star Alliance dedicates Terminal 2 at London Heathrow Airport to Queen Elizabeth II. SkyTeam unveils customer-based initiatives while China Cargo Airlines becomes the newest member of the SkyTeam.

Cruising Heights July 2013

Spotlight

p24

Cruising Heights caught up with Giovanni Bisignani who recently unveiled his book, Shaking the Skies. An exclusive interview about the book that is making waves not only in aviation circles but also in business boardrooms.

contents

hemat rawat

cover story

Former Emirates Skycargo Chief Ram Menen in a candid chat talks about his journey heading the cargo section of world’s most competitive cargo airline. He briefly talks about the issue that engulfs the air cargo sector today while offering some advice for the cargo industry.

Special report

Cruising Heights

p55

p47

The search, rescue and relief operations carried out with the help of helicopters from army, air force, National Disaster Response Force (NDRF), IndoTibetan Border Police (ITBP), Sashastra Seema Bal (SSB) and Uttarakhand State Government in the wake of flood devastation in Uttarakhand witnessed great heroics in saving thousands of lives.

Volume VIII n No 2

Editor-in-Chief K SRINIVASAN

airbus

CARGO

articles news views edits interviews clippings profiles news digest

net express

SNIPPETS

back page

p74

The newly-constructed Google terminal at San Jose International Airport in Silicon Valley is going to be a showpiece. Built by US-based Signature Flight Support, the airport will cater to Google executives flying in and out of the airport.

p49

While airlines all around the world are increasingly leveraging cyber space for generating profits, Indian carriers have failed to latch on to the opportunity. Airbus unveils a prototype ‘smart’ bag featuring a RFID chip that lets flyers track their luggage during their journey.

p68

IndiGo launches seven new flights on its domestic network while a new regional airline Air Costa announces its operations in July. In the international section, Sir Richard Branson announces a unique scholarship worth `5 lakhs for Indian students. CHOPPERS BECOME HEROES IN HIMALAYAN TSUNAMI

CRUISING HEIGHTS www.cruisingheights.in

JULY 2013 I `90

BACK TO HEALTH Pushing back the gloom of recession, the 50th edition of the Paris Air Show breathed life into a wheezing aviation industry

BISIGNANI SHAKEN AND STIRRED

Former IATA Chief on his IATA days and the aviation scenario of the future

AIR CARGO, A LA RAM MENEN

Former Emirates Skycargo’s Senior Vice President talks about the future of air cargo

PEEK INTO THE FUTURE

Air traffic will be controlled from a room hundreds of miles from an airport

cover design: ajay negi

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

Cruising Heights July 2013

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TODARIYBE

“ periscope

Hurry up! “Allow IATA to lead the airline community in finalising the climate change issues with ICAO (International Civil Aviation Organisation). We have a short time-frame. We have a very small window and we should not allow this window to be lost.” Akbar-Al-Baker, Chief Executive Officer, Qatar Airways on the climate change issues with respect to aviation

Rest assured “The aviation centre of gravity is very clearly moving from West to East and I think the industry is doing very well with that.”

letters to editor

The cover story Dassault@50: Continuity by Change (June 2013) was an eyeFALCON FLIES AT opener. It is hard to believe that Dassault Aviation produces such a class of employees who stick to the organisation for 30-40 years. No doubt, Dassault produces such world-class aircraft because of the commitment of its employees. It is also astonishing to know that in 50 years, 20-odd types of Falcon have been developed and 2,250 models have been built. More than 1,950 aircraft are in service today, with 1,130 operators in 83 countries. It is no wonder that Eric Trappier, Chairman-CEO, Dassault Aviation on the 50th anniversary of its Falcon brand said, “The 50th anniversary is far more than a celebration of the past.” Rakesh Shah, Ballia

Alan Joyce, Chief Executive, Qantas on the East carriers surpassing the West carriers

BUMPY ROAD AHEAD FOR JET AIRWAYS IN LIFE AFTER ETIHAD

CRUISING HEIGHTS www.cruisingheights.in

JUNE 2013 I `90

We did it! “Yes, we (Indian Airlines) got the Fifth Freedom rights which is a major concession.”

More than 2,250 Falcons are flying today: a testimony to Dassault’s passion for excellence

OVERTURES IN THE GULF

Will Qatar’s wooing melt Emirates?

BATTLE OF THE WIDEBODIES

Boeing, Airbus are pitching B777X and A350 in the Gulf

EBACE HOPES FOR BETTER TIMES

Business of business aircraft readies for a comeback

Jetihad: The Journey Begins (June 2013) was an interesting story to read. Surely, the Jet-Etihad deal is India's first major aviation investment by a foreign airline. It has still long way to go before it is finally on the road — or on the skies! It has got both positive as well as negative fallouts. On the positive side, the deal is likely to change the infrastructure of the crippled aviation sector of the country. On the negative side, it will have to pass the cumbersome legal and bureaucratic tangles. As stated in the story, the Competition Commission of India (CCI) and Securities and Exchange Commission of India (SEBI) have questioned the credibility of the deal. Manohar Das, Kolkata Another Gulf Door Opens (June 2013) which featured in the cargo section of the magazine presented a positive logistics push to India which Free Zone Sohar (FZS) will offer. Free Zone Sohar (FZS) will surely be opening new vistas as far as logistics are concerned. Indian investors too can latch on to the opportunity if they want to make rapid strides. The bilateral trade between the two countries will further get a boost by the opening of the Free Zone Sohar (FZS). It was heartening to know that Neelima Vyas, Chief Operating Officer of Free Zone Sohar was in India to attract investments from the Indian investors.

Anand Sharma, Commerce and Industry Minister on Fifth Freedom rights being granted by Myanmar

In dire straits “The devaluation of the rupee has a significant negative impact on the airline’s cost structure.” Giorgio De Roni, Chief Executive, GoAir on the repercussions of the weakening of rupee on the Indian aviation industry

Valid point “Post the Jet-Etihad deal, Abu Dhabi is likely to become another international hub. But what will happen to Indian airports after all the infrastructure development?” Angela Gittens, Director General, Airports Council International (ACI) on the implications on Indian airports post the Jet-Etihad deal

Ram Swarup, Allahabad 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 July 2013

A ray of sunshine “You never say ‘never’ to any bilateral commercial agreement that can be sustained over a period of time.” Tim Clark, President, Emirates, on the viability of bilateral commercial agreement between the airlines

IdeaWorksCompany, a consultancy in the area of airline ancillary revenues, and CarTrawler, the provider of online car rental distribution systems recently came out with interesting revelations about how ancillary revenues are remarkably adding up to the bulk of the total revenues of the airlines. Ancillary fees — the extra fees flyers shell out for baggage, premium seats and others interestingly reaped rich dividends for the airlines in 2013. In 2012, global airlines raked in about $27.1 billion in ancillaries, up about 20 per cent from 2011, a quantum leap by any standards. “Statistics help tell the ancillary revenue story, and every year key numbers are getting larger,” said Jay Sorensen, President of IdeaWorksCompany. Interestingly, low-cost airlines dominated the top list. Worldwide, Spirit Airlines maintained its top position in this list followed by Allegiant, Jet2.com, Ryanair, Tiger Airways, easyJet, AirAsiaX,

Jetstar, AirAsia Group and Flybe. As a group, these 10 airlines delivered ancillary revenue in excess of $18.2 billion. The list of top ten airlines and their percentage of the total revenues: 1. Spirit: 38.5 2. Allegiant: 29.9 3. Jet2.com: 26.5 4. Ryanair: 21.8 5. Tiger Airways: 20.8 6. easyJet: 19.5 7. AirAsiaX: 18.7 8. Jetstar: 18.6 9. AirAsia Group: 18.2 10. Flybe: 17.7

cold stats

There’s money to be made — flying

Looking glass

e for th y e n mo ts d top ing sea i a p We f the w top o

They said this is best place for more legroom!

What is this? “Over the last few days, the regulator has stepped in and asked airlines not to charge for certain services. We need some clarity. ” Neil Mills, CEO, SpiceJet on the ancillary charges being sidelined by the Indian aviation ministry

Nothing as such “We are not regulating anything. This ancillary charges or unbundling fares is a worldwide practice. In fact, the lowcost airlines thrive on that.” Ajit Singh, Civil Aviation Minister clarifying that there will be no move to scrutinised ancillary charges being levied by the airlines

Cruising Heights July 2013

panorama

EU pROPOSES, India opposes

European Union recently threatened to fine Air India and Jet Airways for not sharing their aviation emission data under the Emission Trading Scheme (ETS). Air India and Jet Airways laid claim that aviation emissions are controlled by Ministry of Civil Aviation and thus the Ministry will handle the matter. The aviation ministry took up the matter and has been up in arms against the move, stating the EU was exceeding its control. Cruising Heights takes a look at the controversy and what transpired it.

Jet Airways viewpoint Aviation greenhouse emissions under EU ETS are being handled as per the directions of Ministry of Civil Aviation

Carbon footprint of Indian aviation

Air India viewpoint Each month, we receive letters and reminders from the EU seeking emission data. The letter states the airline may have to pay a fine for non-compliance. We forward the letters to the Civil Aviation Ministry. We do not reply to EU letters Fine which has been slapped? Under the Emission Trading Scheme (ETS), the EU has threatened to fine Air India and Jet Airways (India) for not sharing their emission data. The two Indian airlines were staring at a fine of

`22.60

GRAPHICS: AJAY NEGI INPUTS: PUNIT MISHRA

lakh

Indian aviation regulator DGCA in its first ever aviation carbon footprint report for 2011 stated that: â&#x20AC;˘ There is 6 per cent growth in carbon emissions from 11.99 million tonnes in 2010 to 12.7 million tonnes in 2011.

Opposition India had last year joined Russia, China, the US and about 18 other major countries in opposing EU-ETS. India and China had also asked their airlines not to participate in a permit system that entitled them and other producers of greenhouse gases like a steel factory, to emit greenhouse gases by paying for the right to emit them. Reportedly, Environment Minister Jayanthi Natarajan has already written a letter to the EU Commissioner for Climate Change demanding a reversal of the carbon tax.

Cruising Heights July 2013

We have not received any information regarding the fines. As far as we know, the scheme has been postponed. Civil Aviation Minister Ajit Singh

We are taking up the issue first with the United Nations Framework Convention on Climate Change (UNFCCC), followed by ICAO rather than the other way round. V Rajagopalan, Secretary, Ministry of Environment and Forests (MoEF).

For a country like India, airlines’ emission is negligible. Our focus should be more on implementing a national action plan on climate change. R K Pachauri, Director General, The Energy and Resources Institute (TERI)

Global perspective Unfortunately, Europe has chosen a go-it-alone regional approach with the inclusion of international aviation in the EU emissions trading scheme from this year. This is driving discord at a time when we need harmony. No one wants a trade war. But the prospects are growing more likely. Tony Tyler, International Air Transport Association (IATA) Director General and Chief Executive • The carbon footprint of civil aviation sector is less than 1 per cent of the country's total carbon emissions. • The emissions of Indian scheduled airlines are forecast to grow to 14.5 million tonnes and 111.0 million tonnes by 2020 and 2050 respectively. • Fuel efficiency of many scheduled airlines are at or below the average global level of CO2 per RTK (0.95 Kgs) but some are on the higher side also.

The US government has very serious concerns about the European Union Emissions Trading Scheme (ETS) carbon tax. Our concern is not with difference of option with the objective … we are very serious about addressing aviation emissions in the US … the concern we have with EU ETS is the way it's been designed and the way it's been applied. We have concerns that it violates international law.” FAA Assistant Administrator Policy, International Affairs and Environment, Julie Oettinger

Given the opposition of a wide majority of countries, (the EU scheme) was a source of concern for us.” ICAO Secretary General Raymond Benjamin

Cruising Heights July 2012

news digest

SkyTeam goes customer-centric

ustomer-based initiatives is the new mantra for SkyTeam. The alliance is upping the ante to ensure improved service offerings while delivering more benefits for its membership all around SkyTeam’s global set-up. “With our global network almost complete, our priority is now shifting to creating a seamless travel experience for our customers,” said Michael Wisbrun, SkyMichael Wisburn Team’s Managing Director. “SkyTeam’s key driver so far has been on gaining global presence, and now provides a network with access to the most relevant traffic flows worldwide. But the next stage of cooperation is about developing customer products and services that bring seamlessness to a new level.”

Win a scooter, courtesy Star Star welcomes Eva Air

tar Alliance recently put up an offer to win one of two chic scooters in an exclusive ‘Piaggio Round the World’ promotion with air tickets for the travel agents. Between June 1 and July 31, 2013, every travel agent who tickets any one of Star Alliance's seven branded air fare products through air tickets will automatically be in the running to win a smart and stylish Piaggio scooter. One Piaggio Fly 150 will be driven away each month of the two-month promotion —

the first-of-its-kind through air tickets — with agents receiving an entry for every Star Alliance fare they book. Each week of the ‘Piaggio Round the World’ promotion, Star Alliance is also giving away three Westfield vouchers valued at $150 each. Star Alliance’s revised portfolio of seven branded airfare products now includes the: Africa Airpass, Asia Airpass, China Airpass, Europe Airpass, North America Airpass, Circle Pacific Fare and Round the World Fare.

va Air became the 28th member of Star Alliance network. As a member of Star Alliance, Eva Air passengers will now enjoy benefit accessing to a global network of 28 airlines, operating more than 21,900 daily flights to 1,328 airports in 195 countries. At the official joining ceremony held at Taiwan Taoyuan International Airport Mark Schwab, CEO Star Alliance said, “EVA Air has successfully completed all joining requirements and I can confirm that our Chief Executive Board (CEB) has now unanimously accepted EVA Air into our Alliance.”

Codeshare Jet ties-up with Air France-KLM

ir France-KLM and Jet Airways will offer their customers more destinations between Europe and India owing to mutual codeshare agreements. The partnership will significantly improve the choice of beyond flights for Air FranceKLM customers to Indian cities. The codeshare agreement enables Air France to market flights under AF flight numbers to key Indian cities beyond Bengaluru, Delhi and Mumbai. Customers travelling from

Europe to India will now be able to connect seamlessly with one ticket to three new Indian domestic destinations operated by Jet Airways, to Chennai via Bengaluru, Delhi and Mumbai, as well as to Kolkata and Hyderabad via Mumbai and Bengaluru. Likewise, KLM will place its marketing code (KL) on Jet Airways’ domestic flights to four major cities in India beyond Delhi, allowing customers to travel seamlessly to Bengaluru, Chennai, Hyderabad, and Mumbai via Delhi.

Virgin Australia expands with Etihad-Singapore

iversifying its codeshare agreements, Virgin Australia added Amsterdam to its codeshare agreement with Etihad, Rome with Singapore Airlines and Milan with both Etihad and Singapore Airlines. Virgin will place its code on Singapore Airlines flights to the two destinations. The codeshare flights will be operated by a two-class Boeing 777-200 aircraft between Singapore and Rome three times per

Cruising Heights July 2013

week and a three-class Boeing 777-200ER between Singapore and Milan five times per week. While Abu Dhabi to Amsterdam will be operated by a two-class A330-200 seven times a week. This is a continuation of the roll-out of Virgin Australia's alliance with Singapore Airlines, which already includes 87 codeshare and interline destinations globally from all Singapore Airlines' gateways in Australia.

Out goes Kingfisher

Rare honour for Terminal 2

tar Alliance’s Terminal 2 at London Heathrow Airport will be formally known as “Terminal 2: The Queen’s Terminal” in recognition of Queen Elizabeth II. Said Mark Schwab, CEO, Star Alliance, “We are delighted that our airlines will be operating from a terminal named for Queen Elizabeth II. We are particularly honoured that this announcement, which reaffirms the role and importance of aviation in today’s world, comes on the eve of Her Majesty's official birthday.” John Holland-Kaye, Heathrow’s Development Director, said that the Queen opened the original Terminal 2 more than half a century ago and “we’re delighted that Her Majesty has kindly agreed to give her name to the new Terminal 2. Everyone at Heathrow is extremely proud of our long association with The Queen and we know the new Terminal 2 will be a fitting continuation of that tradition”. The new Terminal 2 will be the home for all 23 Star Alliance member airlines serving Heathrow and representing over 20 per cent of the airport's traffic. Among the airlines are: Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, Brussels Airlines, Egyptair, Ethiopian Airlines, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airways, SWISS, TAM Airlines, TAP Portugal, Turkish Airlines, Thai, United and US Airways. The carriers will provide 136 flights a day to over 51 worldwide destinations.

n yet another body blow to grounded carrier Kingfisher Airlines, oneworld has put on hold the request of the airline to join the global airline alliance. Clarifying the move, Chairman of oneworld and Chief of American Airlines said, “Kingfisher Airlines is no longer operational. Therefore, the airline cannot be an active participant of oneworld anymore.” oneworld does not have any immediate plans to include any other Indian carrier, Horton said. “We have an important presence in the Indian sub-continent through member carriers

such as Qatar Airways and Sri Lankan Airlines flying into India.” Kingfisher had signed a memorandum of understanding for joining oneworld in February 2010. After IATA suspended Kingfisher last year for failure to clear its dues, the beleaguered carrier’s entry into oneworld was also deferred. It was slated to formally join the alliance last February.

oneworld’s on-line academy

ravel agents can now earn a diploma in selling round-the-world fares by signing up to the oneworld Academy, a new online training resource launched by oneworld. The oneworld Academy will offer a range of e-learning tools to train travel agents the world over in various aspects of the alliance and its products. It has been launched in English, but more language options including Chinese, German, Japanese and Spanish will be added soon. Its first module focusses on oneworld's portfolio of consumer fare products.

Air Seychelles codeshares with Etihad

ir Seychelles extended its codewith Etihad Airways, offering our share agreement with equity guests seamless connectivity to and alliance partner Etihad Airways to from Australia over Abu Dhabi. Not include new connections only does this offer more to Australia. The new opportunity for Australian codeshare flights will business and leisure traveloffer seamless conneclers to come to Seychelles, tions to Seychelles from but it also introduces a Melbourne and Sydney, simple and appealing travel operated via Abu Dhabi. option for Seychellois Guests will enjoy three travelling to Sydney and weekly return connecMelbourne. Australia hosts tions from Seychelles to the largest Seychellois Melbourne and Sydney. diaspora in the world and, Cramer Ball Cramer Ball, Air as the national airline of Seychelles’ Chief Seychelles, we are proud to Executive, said, “We are delighted introduce a new air link between the to enhance our codeshare agreement two countries.”

Cruising Heights July 2013

news digest

New US taxes for airlines on anvil China opens skies China recently took a giant leap in aviation when it lifted a six-year ban against creating independent airlines. The aviation sector in China is believed to be the most tightly regulated sectors. The aviation regulator, Civil Aviation Administration of China, gave its nod to a Shandong-based conglomerate to set up Qingdao Airlines, which plans to operate from the northeastern port city. Some time ago, the regulator permitted Yunnan Jing Cheng Group to set up Ruili Airlines in western China. Will Horton, Senior Analyst, CAPA said, “The recent approvals showcase one of China’s main struggles: balancing the Central Government’s interests against those of individual provinces. That struggle plays out nationwide in the airline industry.”

Ramadorai on AirAsia India board

AirAsia recently announced the appointment of Subramanian Ramadorai as Non-Executive Chairman of AirAsia India. Tony Fernandes, Group Chief Executive Officer of AirAsia said, “We are delighted to welcome Ramadorai, a giant in the Indian industry as our non-Executive

US government is mulling to levy new taxes on the airline industry that would amount to an estimated hike of $14 per flight. “Altogether, the White House budget proposal would increase taxes on airline customers and airlines by a whopping 29 per cent, adding another $5.5 billion to their $19 billion an-

Chairman. He is an exceptionally experienced executive with a proven track record of building and grooming dynamic, young and energetic teams. His ability to upscale will be critical as we grow the business and we look forward to the additional perspective and expertise he will be able to share as we embark upon the launch of AirAsia India.” Subramanian Ramadorai said, “I am

flydubai gets business on board flydubai recently unveiled business class services across its network of 60 destinations. Commenting on the launch of the airline’s Business Class services, Ghaith Al Ghaith, CEO, flydubai, stated, “We are very pleased to announce the evolution of our passenger offering as we continue to meet the travel needs of our customers. The introduction of Business Class will provide greater choice for our passengers, who will have access to faster check-in services, comfortable and spacious seating and can

enjoy a variety of internationally-inspired menus during their journey.” “Both our business and leisure travellers can now benefit from a more personal flying experience. flydubai is ready for business and we look forward to continuing to offer our passengers reliable and accessible travel services, whether in Economy or Business Class.” It will have 12 light-weight seats made of Italian leather with a seat pitch of 42 inches.

Cruising Heights July 2013

nual tax burden,” said Vaughn Jennings, Managing Director, Government and Regulatory Communications for Airlines for America. The $14 increase is aimed at raising money to reduce the national deficit and hiring thousands of immigration and customs enforcement officers at airline

honoured to receive this appointment and am excited by what the future holds for AirAsia India. I look forward to working with the executive team led by Mittu and supporting the company’s growth and advancement into the market in the future.” Subramanian Ramadorai

A quest for Indian skies South-East Asian airlines are looking forward to increase air capacity with India ahead of the Civil Aviation Ministry’s proposal to enhance air capacity between India and Abu Dhabi to 53,000 seats a week following the Jet-Etihad deal. Germal Singh Khera, Head, Government and International Affairs, Malaysia Airlines said, “We have used up all our bilateral seats. In fact, we have been asking to increase air capacity to India from the past one year. We would like to have double daily flights from the metro cities of India.” Earlier, Emirates airline had aired its view on increasing air capacity with India.

security checkpoints. “If we assume that air travellers should be paying for those things rather than the general public, then airline ticket taxes make sense,” said Richard Morrison, Manager-Communications, Tax Foundation (Washington, DC-based thinktank). “But there are many questions about whether the FAA and TSA are spending those revenues in a smart, efficient way.”

Now, ‘XL class’ for flyers

Samoa Air became the world’s first airline to charge people according to their weight rather than by seat. The airline introduced a special “XL class” to cater to obese passengers and the airline is creating a wider row on its aircraft for passengers who weigh more than 130 kilogrammes. Samoa Air Head Chris Langton said, “Once you’re up around that sort of [weight] ... a traditional seat on any airline is going to be uncomfortable. Quite often the access is difficult, and even the space between the seats is enough that even when you’ve squeezed into the seats there’s no room for your legs. That’s where the XL has come in — we do it with shirts and clothing and other things where we have different standard sizes.”

Europe stares at airport capacity issues Europe will witness a huge financial burden in the future due to lack of adequate airport capacity to cope with growing air travel demands that will cost European nations $305.4bn in lost GDP by 2035,

Declan Collier

according to Europe President Declan Collier. Speaking at the joint ACI Europe and ACI World Annual Assemblies, Congress and Exhibition in Istanbul, Collier pointed out that Europe had done little to capitalise on the strategic role aviation can play in growth and job creation.

EU strikes chord for better skies The 16 leading European aeronautical companies and research organisations jointly preparing the ground for a continuation of the Clean Sky Joint Technology Initiative (JTI) within the EU Horizon 2020 Framework Programme handed over to the European Commission their Joint Technical Proposal and a common declaration formalising their unambiguous commitment towards a Clean Sky 2 Programme. In the declaration the industry re-confirmed its commitment towards this major effort aimed at creating a sustainable air transport system for the next decades and boosting EU competitiveness. The Joint Technical Proposal details the proposed work plan for Clean Sky 2, spanning 20142024, focussed on research investments and major demonstration activities. Clean Sky 2 will introduce further integrated demonstrations and simulations of several aircraft systems at the aircraft platform level. Innovations from Clean Sky 2 will underpin advances in the next generation of aircraft by mastering the technologies and the risks in time to meet the next market window to replace the current fleet. This flagship European programme will be leveraged by further activities funded at national, regional and private levels.

news digest

77 times by air Andhra Pradesh Chief Minister Kiran Reddy exemplifies the penchant for air travel. Reports have cropped up that the politician travelled 77 times between Hyderabad and Delhi by air ever since he assumed office two-and-a-half-years ago. The politician has been in the eye of the storm because of this as from TDP Chief N Chandrababu Naidu to BJP president G Kishan Reddy, all are busy charging Kiran Reddy of overlooking the state’s administration. “The Chief Minister can be aptly called Delhi Kumar Reddy. Instead of flying to Delhi frequently, he could be asked to stay in Delhi and a new Chief Minister be appointed to take care of the administration in the state,” Kishan Reddy said. While Chandrababu Naidu was quoted as saying, “Kiran is a sealed cover CM. He has been appointed by his high command.”

new airports in Rajasthan

Two new airports will soon adorn the Rajasthan’s landscape. The state will get two new airports, in Jaisalmer and Bikaner. Both airports will be inaugurated in August and are likely to start operations by October. The AAI has revealed its plans to open an airport at Sawai Madhopur. A team of AAI will visit Sawai Madhopur to find the potentials of flight operation from this part of the state. According to the officials, the upcoming airport in Jaisalmer will begin by October this year. “A team of AAI officials would visit and find out the possibilities of setting up an airport at Sawai Madhopur,” AAI Chairman V P Agrawal said.

penalty for a dog A faux pas by Anita Goyal, wife of Jet Airways Chairman Naresh Goyal landed her in a big soup. The lady was held at Mumbai Airport for carrying her pet dog, a Maltese breed, on a Jet Airways flight. Jet Airways Spokesperson clarified that Anita was carrying a Maltese dog, “But the dog was in the cargo and not in the cabin. It was in a pet basket required for the transfer. She had all the necessary certification and documents. She paid all charges required in compliance.”

new Forex counters

Sources confirmed, “However, since she is supposed to be in India for more than a month, she decided to carry the dog along on the flight. She had to be stopped as the pet was illegally carried in the cabin. Also, she did not have the necessary licence from Indian wildlife and import authorities.” “The value of the dog was `45,000 on which a duty of `16,200 (36 per cent) was charged. She paid a fine of `12,000 and a penalty of `8,000,” said an airport official.

Chennai Airport will soon unveil eight new forex counters. Speaking about the launch of Forex services at the airport, T C Guru Prasad, Executive Director and Business Head, Centrum Direct, said, “Centrum Direct has been awarded the exclusive rights to set up six new money-changing counters in the international terminal and

€1bn plans on the anvil €1bn worth plans are on the anvil for Amsterdam's Schiphol Airport over the next few years, including shifting charter flights to Lelystad Airport. The airport is 100 per cent state-owned. Schiphol will improve facilities for intercontinental flights and tariffs will go

up marginally for all airlines. In order to free up airspace for further expansion, thousands of charter flights will be moved to Lelystad Airport. The aim is to expand Lelystad’s runway so that charter flights can use it intensively in 2017.

on offer

15m

gallon of

biofuel United Airlines will procure 15 million gallons of biofuel from AltAir Fuels. The airline will be using the fuel on flights departing from Los Angeles International Airport starting in 2014. The airline is purchasing the advanced biofuel at a price competitive with traditional, petroleumbased jet fuel, and AltAir expects to begin

two in the domestic terminal. Centrum would provide foreign exchange at the counters 24x7, all 365 days of the year and at the most competitive rates. The counters would initially carry a range of products, including currency notes, travellers’ cheques and multi-currency forex prepaid cards.”

7,000 iPads

delivering five million gallons of renewable jet fuel per year to United starting in 2014. AltAir Fuels’ renewable jet fuel is expected to achieve at least a 50 per cent reduction in greenhouse gas emissions on a lifecycle basis. “This is a great day for United and the aviation biofuels industry,” said Jimmy Samartzis, United Airlines’ Director, Environmental Issues.

A US-based company OTG Management, an airport concessions firm based in New York City is working upon an idea to install 7000 iPads at various few North American airports which can be rented by the flyer during the transit. The concept is simple: swaying travellers waiting in airport lounges to borrow the company’s free iPads that comes with free WiFi. Users can surf the Internet, play games, or order food, beverages, and other lastminute concessions like magazines for walk-up delivery to their seat. A built-in app conveys fixed alerts and keeps posted about flight status so a passenger doesn’t by chance miss their departure. The alert service, which requires users to punch in their flight number, is optional.

1,000 mural at sq ft airport Mumbai Airport will soon put up 1,000 sq ft murals comprising of paper mache and intricately carved wood work of Kashmiri art. “The airport authorities, for the first time, decided not to replicate Shangai or Dubai. We are putting up around 6,700 sq ft mural on the walls representing north India gateway, where we can make our craftsmen proud of their work. It is first public art work in the country,” said Rajeev Sethi, Scenographer, Terminal-2, Mumbai International Airport. Sethi said the airport was chosen for

the public art because it has round-theclock security and maintains temperature. The public art representing fine art from the northern part of the country will be spread over 1.5-kms.

news digest

Mumbai Airport conducts disaster management drill

umbai International Airport Pvt Ltd (MIAL) and Air India jointly conducted a Full-Scale Emergency Exercise— ‘Operation Vijay’ at the Chhatrapati Shivaji International Airport. The purpose of this Full-Scale Emergency Exercise was to test the adequacy of the airport emergency response plan to cope with an aircraft emergency. Air India was the designated airline that participated in the

exercise. As per the International Civil Aviation Organisation (ICAO) and Directorate General of Civil Aviation (DGCA) regulations, it is mandatory for all airports and airlines globally to hold this kind of exercise. This drill involved all response departments of GVK MIAL operations to assess and evaluate the preparedness of MIAL and its stakeholders at CSIA in handling an emergency situation. Moreover it provided an opportunity for the response teams from CSIA’s various units, including fire and emergency services, terminals, airside operations, engineering and maintenance, security and medical services, to put their emergency training to the test. The exercise also measured the preparedness of local emergency response units that assisted MIAL in the crisis. The exercise also provided a platform for Air India to test its emergency response plan in a real time scenario.

MIAL awards advertising rights

umbai Airport announced the award of the advertising rights at the Terminal 2 to Times Innovative Media Ltd (TIM), a subsidiary of Bennett Coleman and Co. Ltd. The airport awarded the exclusive contract for the sites at the airport and the contract would include designing, setting up, development and maintenance of advertising opportunities. The contract is for a period of 11 years from the commencement of Terminal 2 (T2) and covers more than 660 display sites ranging from billboards around terminals, static and digital sites within the terminal as well as sponsorship opportunities. Announcing the award of the contract, Rajeev Jain, CEO, Mumbai International Airport Pvt Ltd said, “CSIA is one of the busiest airports in the country and indeed an international gateway to India. This allows for the otherwise elusive opportunity for advertisers to target not just the itinerant Indian, but global audiences as well.”

Delhi Airport is 2nd best airport I

ndira Gandhi International Airport (IGIA) was recently declared the second best in 25-40 Million Passengers Per Annum (MPPA) category in the world. The airport received the coveted ACI ASQ Award. The nine-member Delhi Airport team representing DIAL, CISF, AOC and Air India was present at the ceremony of this Airport Service Quality (ASQ) Awards organised by the Airports Council International (ACI). I Prabhakara Rao, CEO, DIAL after receiving the award said, “Representing an Indian airport at a globally recognised forum was really an emotional moment, something that we as IGIA community, are really proud of. This recognition is testimony to the efforts of all our employees and partners who have consistently met the expectations of the industry.” IGIA has made rapid strides in raising the service quality at IGIA which has resulted in steady improvement in rankings over the last six years since take over by DIAL. The airport scored 4.83 on the ASQ scale out of 5 points and has been recognised as the fourth Best Airport in the World amongst 199 participating airports across all categories and 2nd Best Airport in its Category in 2012.

formidable team: I Prabhakara Rao, CEO, DIAL receiving the ACI award for 2nd best airport from Angela Gittens, Director General of ACI World

Cruising Heights July 2013

International tag for Imphal, Agartala airports I

mphal and Agartala airports are step closer to get international status tag. Airports Authority of India (AAI) has begun groundwork to upgrade the airports in Imphal and Agartala as international airports. “As part of the ambitious plan, the terminal buildings, air traffic control towers, runway and other necessary infrastructure would be expanded and further strengthened in both Agartala and Imphal

airports,” an AAI official was quoted as saying. “Over `160 crore would be spent to gradually develop Imphal and Agartala airport to international standards. Modern Air Traffic Control towers are being set up at a cost of `10 crore each in the two airports.” According to Manipur Chief Minister Okram Ibobi Singh, Imphal Airport would become an international airport in July, 2013.

Direct aviation fuel imports on the anvil

irect aviation fuel imports at Indian airports is a step closer to realisation as Airports Authority of India (AAI) is mooting a plan to provide common infrastructure for supplying Aviation Turbine Fuel (ATF) across all major airports. A Special Purpose Vehicle (SPV) would have the permission to install fuel farms to be operated on lines of an open access model across major airports in the country. While AAI and OMCs will hold 76 per cent in the proposed SPV, the airlines will participate in the remaining 24 per cent equity. A senior official at AAI was quoted as saying, “We are looking at forming a three-way joint venture with OMCs and airlines to supply jet fuel. The purpose is to create common infrastructure, which will help in lowering user charges.” “It is time we segregated ownership of the ATF infrastructure at the airports and the supply of ATF. This is similar to the power sector, where unbundling of transmission and distribution led to greater quality of service,” Amber Dubey, Head-Aviation, KPMG.

Jaipur Airport gets facilities T

he latest ATS (Airport Transit System) will enable Jaipur Airport to have more accurate landing and take-offs. Unveiling the new system at the airport, AAI Chairman V P Agarwal said, “This is the latest technique which will enable Air Traffic Control (ATC) to see the location and position of flights in a radius of 450 km on screen. This technique is connected to automatic flight display, situational data display, control and monitoring display.” “The new system will minimise the chances of human errors, save fuel and emissions in the Jaipur atmosphere. The

rgia gets 5-Star rating R

ajiv Gandhi International Airport (RGIA) recently received the 5-Star rating by the British Safety Council for its Health and Safety Management System. S G K Kishore The BSC 5-star rating is a prestigious safety award globally and RGIA is the only airport in the whole world to receive this coveted award. The award criterion is very stringent. There are 995 safety compliance requirements for the Health & Safety Management System covering 57 elements. In order to get a 5-Star rating, a minimum of 92 per cent has to be obtained out of a total score of 5000, whereas RGIA scored 96 per cent. Speaking on the occasion, S G K Kishore, CEO, GHIAL said, “It is an incredible achievement; particularly considering the fact that implementation of such a system in an operational airport with multiple stakeholders is a herculean task.”

Hyderabad Airport ushers in MMTS R

biggest benefit of the machine is it will reduce the distance between two flights from 80 nautical miles in the previous system to 40 nautical miles in the present system,” he elaborated. “It means that more space will be available for operations leaving less scope for congestion even during rush hours,” said Paul Manickam, Airport Director, Jaipur Airport. “Our airport receives maximum non-scheduled flights diverted from Delhi during winters and bad weather. We are always on alert to handle non-scheduled flights.”

Cruising Heights July 2013

ajiv Gandhi International Airport will soon usher in the Multi Modal Transport System (MMTS) to its doorstep. GMR in association with Rail Vikas Nigam Limited (RVNL) will execute the 71km MMTS phase-II project. The MMTS phase-II involves multiplication and electrification of existing railway lines on Tellapur-Patancheru, SecunderabadBolarum, Sanathnagar-Moula Ali, Moula Ali-Malkajgiri-Sitaphalmandi, BolarumMedchal and Moula Ali-Ghatkesar sections as well as a new railway line from Umdanagar to the international airport (6.7km) was also to be laid in this phase. “GMR has agreed in principle for the MMTS line. They asked to be allowed to choose the location of the terminal station on their premises,” said Transport Commissioner D Lakshmi Parthasarathy. P Srinivas, Chief Project Manager, RVNL said, “GMR representatives said they need time to appoint a consultant who would determine the location of terminus on their land in order to facilitate easy passenger movement into the airport. Once the location has been determined, we will work out the alignment to connect to Umdanagar.”

iata outlook

‘Together, we will face challenges’ In his state of the IATA speech delivered at the 69th Annual General Meeting, Tony Tyler, IATA’s Director General and CEO, exhorted the international aviation community to keep intact the unity and partnerships that have been achieved over the past since these will be vital to conquer the challenges. We reproduce excerpts from the speech:

nited we stand, divided we fall. It is a reality that has been with us for thousands of years. Since Aesop’s first fable, it has enthused change, revolution and self-control in the face of adversity. On January 1, 2014 we will celebrate 100 years of commercial aviation. Even for our relatively young industry this age-old truth has enormous relevance. Aviation is fiercely competitive. But, working together, strong partnerships, global standards and cooperation have played a major part in our accomplishment, and they still do.

Safety

One of the longest standing associations between industry and governments is on safety. Flying is safer than ever. Last year, there was not a single hull loss with a westernbuilt jet among our 240 member airlines or among the 387 airlines on the IATA Operational Safety Audit (IOSA) registry. There is still more work to do. If we include all aircraft types, 2012 saw 75 accidents and 414 human deaths. These prompt us of our great obligation to those who trust us with their lives. And each mishap rededicates both industry and governments to making flying even safer. Geographically, the biggest challenge is Africa where the accident rate is 18 times worse than the global average. But the safety performance of African Airlines on the IOSA registry, including our African members, aligns with the global average. This means that world class safety is possible in Africa. With the Abuja Declaration (in May 2012, IATA, together with the International Civil Aviation Organisation (ICAO) and a host of other organisations committed to an Africa Strategic Improvement Action Plan aimed at addressing safety deficiencies and strengthening regulatory oversight in the region by 2015. The plan was authorised as part of the ‘Abuja Declaration’ by the ministerial meeting on Aviation Safety and Security of the African Union in July 2012), African governments have committed to achieve world-class levels by the end of 2015. By then, IOSA will be required across the continent. As

SETTING the AGENDA: IATA Director General and CEO Tony Tyler addressing the IATA members during 69th Annual General Meeting

Cruising Heights July 2013

partners, we are engaging African Airlines directly to meet IOSA’s over 900 standards and join the registry.

Financial performance

Compared to our safety performance, aviation’s ability to generate sustainable returns has been more challenging. This year we expect airlines to make $12.7-billion profits. On $711-billion in revenues, that’s a 1.8 per cent net profit margin. And to put that into perspective, it means that we will earn a $4.00 profit per passenger carried — less than the price of a sandwich in most parts of the world. Generating even these small profits under current conditions is a major achievement. The price of fuel, our largest cost item, has increased 55 per cent since 2006. And we continue through the greatest period of economic stress since the 1930s. Airlines have attacked costs and improved efficiencies. Industry programmes such as e-ticketing, have contributed to the effort. This helped to keep unit cost increases to 23 per cent. Intense competition means that fares have been unable fully to recoup cost increases. So, where are the profits coming from? Airlines found new value streams. Ancillary sales have grown to over 5 per cent of revenues. And capacity is being used more efficiently. The industry load factor is at a record high of 80.3 per cent. But, business is still tough. The day-to-day challenges of keeping revenues ahead of costs remain monumental. Many airlines are struggling. But there is a core of airlines that are driving profits with solid performance.

Improving security

Starting with security, there is good alignment on what needs to be achieved. Our customers don’t want anything to do with terrorists or their weapons. Airlines don’t want them on their aircraft. Airports don’t want them on their premises. And governments don’t want them in their country. What we lack is alignment on how to attain this. There is, nevertheless, a growing realisation that a one-size-fits-all approach is extravagant and untenable. The vast bulk of passengers and cargo pose no threat at all. So, we are working in partnership with governments on two cardinal data-driven risk-based plans. Secure freight has proved that a supply chain approach works. Six countries have followed a successful pilot in Malaysia. And more will follow. A framework for the ‘Checkpoint of the Future’ has been agreed and component testing is progressing. Passengers can expect to see the first versions operational as early as next year. Despite this good progress, we must

also be open with our government partners about our frustrations. Lack of harmonisation is the issue. For instance: governments agreed on an Advance Passenger Information (API) standard which has been sanctioned by the ICAO. But that hasn’t solved our issues with API. Seven of the 42 states requiring API don’t use the standard. And at least five more are considering unique requirements. On top of that, the UAE and Canada require airlines to provide data — then charge them lots of money for doing so.

via Global Distribution Systems (GDSs). Despite attempts to enrich content, GDSs struggle to communicate much more than the basics of fare, class and availability. That’s because the standards for the communication among these parties were developed before the internet and Extensible Markup Language (XML) — today’s dialect for modern commerce. To remedy the situation we are working with our travel industry partners to develop open XML standards that will enable a New Distribution Capability (NDC).

Cost-effective/efficient infrastructure

Establishing appropriate regulation

Looking beyond security to overall infraPartnerships with the travel industry are structure, partnerships also play a significhanging distribution for the better. We cant role. Airlines depend upon airports, need similar partnerships with governAir Navigation Service Providers (ANSPs) ments to change regulation for the better. and finally governments to ensure sufficient We have already shown that this is possible infrastructure capacity at economic prices. with safety regulation that underpins solid Many understand that connectivity is performance. But not all regulation deliva strategic economic driver—Singapore, ers value. China, Chile, the UAE, South Korea, What’s needed is a Hippocratic Oath Hong Kong and so on. It’s a familiar list of for regulators. The first principle would be well-connected economies thriving with to do no harm — intended or unintended. excellent airport infrastructure. But what’s And every regulator should take an oath to happening in other parts of the world drives solve problems, take full advantage of exme mad with frustration. And you too, I’m pert advice, evaluate costs and benefits; and sure. ensure global harmonisation. The Single European Sky (SES), for Environment example, is not materially any closer to Even more critical is the urgent need to adrealisation today than it was a year ago. dress fast-moving developments in In fact, you would have to be an exthe environment debate with a treme optimist to identify much strong industry position. As progress at all over the last Airlines have a global industry, aviation ten years. The European attacked costs is already in the forefront. Commission understands We recognise that reducthe value that SES would and improved efing carbon emissions bring. But EU member ficiencies. Industry is a global challenge. states are paralysed by programmes such And to be successful we wrongly perceived naas e-ticketing, have know that we need globtional interests. And this al measures. is robbing Europe of the contributed to That’s why we united economic and environmenthe effort behind a global strategy based tal benefits that SES could on improvements in technology, deliver — a €5 billion boost to operations and infrastructure along competitiveness, eradication of nearly with Market Based Measures (MBMs) as 18 million minutes of delay, an 8.1 million a gap-filling measure. And, at the ICAO tonne reduction in carbon emissions and Assembly in 2010 governments agreed to the capacity to support economic growth important global and aspirational goals inefficiently. cluding carbon-neutral growth from 2020 New Distribution Capability (NDC) — or CNG2020 as we call it. Cooperation among partners is also the baMake no mistake. Our unity has desis for solving common problems. As evlivered some major successes. We worked eryone in this room knows, our passengers with industry partners to demonstrate that would benefit from modernising airline dissustainable low-carbon fuels, including tribution. Today’s reality is that travellers biofuels, are a real alternative to jet kerohave one set of product options if they buy sene. And we are now pushing governon an airline website. But if they choose to ments to provide the incentives needed for buy through our travel agent partners, the investors and our oil industry partners to be options are limited. able to commercialise production at costs Agents get their offers from airlines we can afford. n Cruising Heights July 2013

spotlight When he was heading IATA, Giovanni Bisignani made it a point to tell everyone that he was the boss. Indeed, he was. To him goes the credit for achieving the “biggest turnaround of an international organisation in history”. He shook up a bureaucratic organisation and brought it to where it is today: vibrant and in tune with the world. He focussed on e-ticketing and also put the environment on the agenda. If nothing else, Bisignani will be remembered for his emphasis on safety — today air travel is the safest way to travel. In this no-holds-barred conversation on phone from Rome, Bisignani speaks about his unique management style and how he raised IATA to what it is today:

“Don’t like a

h c tiwari

Giovanni Bisignani speaks about and Tirthankar Ghosh

Cruising Heights July 2013

Why did you decide to write this book? You know I had no idea of writing the book. In my last year in IATA (International Air Transport Association) many, many great leaders or friends suggested to me, “Giovanni, you have made such a big change and you have met so many leaders in your life — professional life — also before IATA — Mrs (Indira) Gandhi, Rajiv Gandhi, Li Peng, Mugabe and so on. It is a great opportunity for you to put this on paper and make your experiences valuable for generations”. The book follows exactly the same approach that I had when I made the decision to join IATA: Why me? I was having a great time in London running a most successful internet distribution company, Opodo and when they asked me (offering) the job. I said, “Why do I have to go to IATA? I am having a great time here.” I knew IATA very well because I was on the Board when I was CEO of Alitalia in the ’80s. This is a bureaucratic organisation, an international association, the opposite of what I am. If I go to IATA, I will implement all I have learnt running and working in a GE group and that doesn’t fit with the structure or with the story of IATA. Probably, the

The India connection In India, after I had negotiated the sale of petrochemical refineries and power generation plants, Sette and I explained the benefits of the deal to Indira Gandhi. We had tea together on many occasions in the most beautiful gardens imaginable, part of her official residence in New Delhi. She was a strong lady and talked passionately about India and its role in the world. Her two sons were on very different paths at that time.

The elder son, Rajiv, was a pilot at Air India but was persuaded by his mother to be her political successor. Rajiv was a kind, friendly man, and it amazed me he could be so personable and yet slip seamlessly into the role of leader of the largest democracy in the world. I carried on meeting with him even after he became Prime Minister and established a good personal relationship. *

waste time. Go machine gun”

his time in IATA, his business-like approach and why he wrote the book to K Srinivasan strongest support that I had was September 11. This call arrived two weeks after September from Leo Mullin who was CEO of Delta and Chairman of IATA. He pushed me hard: “Giovanni, we need you. You have to do a revolution. We are dying.” And with this support and with a white sheet of paper, I said, “Look, I will do a disaster. It’s like putting an atomic bomb. Are you ready?” (They said), “Giovanni, we are ready for everything because we are desperate.”

You believe that the industry is deregulated yet regulated. Could you elaborate on this? Yes, this industry was completely regulated because after the Second World War and the Chicago Convention, everybody was scared what could happen. If we allow the airlines to fly over our country, we have to be sure that this plane belongs to a friendly country because they wouldn’t know if the plane carried bombs. On the other side, (there was) ownership: I want to know who is the owner of this airline and it has to be a majority-owned by the government, by the national government. Second: Market access. In order to be sure that we are having some airlines fly-

ing into the state from friendly countries, we have to give access to those airlines that have those kinds of framework. So we want and a governmental, a Parliamentary decision to approve a new route. What I was saying is these made a lot of sense in 1946 but now this is nonsense. This is the only industry which is the most global industry in the world. We are the industry that made the ’global village’ a reality and we have some rules that made no sense. What has happened in the last few years? We have done as much as we could because you see that in the US, now you have three or four large groups. In Europe, you have Air France, KLM that are the leaders. Now we have some regional big groups. What we need is to have a big merger between a big American, European or Asian company.

Don’t you think it is a failure on the part of airlines that they have not been able to lobby with their governments and send their message across? You are right. I played an important role in the last ten years. I’ll tell you a story. I was appointed at the first AGM in Shanghai. Cruising Heights July 2013

When I returned to Geneva after 4-5 days and I asked my Press department, could you give me the cuttings of the Press? There were little articles of three/four lines in the Geneva local press, in the Montreal local press and something in the Chinese. And I went to the Board, and I said, “We always say the governments or the outside world doesn’t understand our problems. But we are keeping everything secret. I don’t see newspapers, journalists…” From the next AGM, my first AGM in Washington, it will be showtime…Just look at the last AGM in Singapore. I think there were 400 people from the press. We completely changed our approach. And I think and this is (due to) a bit of my time in GE. (I am following) Jack Welch who is my big mentor, my great friend, who was never shy to say what was going on. But the advantage of giving an open scenario is by far much more. IATA is now relevant. When I arrived, IATA was not relevant.

Let’s move to IATA and all that you did there. How easy was it to change the organisation? I would say it was not easy but before join-

Privatisation woes There seemed to be a glimpse of light at the end of this privatisation tunnel. India's regulator, the Airport Economic Regulatory Authority (AERA), established a single-till policy meaning all 'revenue, including commercial activity at an airport, is considered when setting user charges. So, the amount of money an airport makes in its shops from airline passengers goes toward offsetting the charges for the airlines. Unfortunately, it has all gone spectacularly wrong in India when Delhi awarded a 340 per cent price hike, basically because the government wants its slice of the cake. Other airports have put forward three-figure increases for approval. The former Aviation Minister Praful Patel was behind much of what is right about Indian aviation. Aside from AERA, he did a lot with Open Skies agreements and even steered a new terminal at New Delhi International Airport to completion in just 36 months, which must be something of a record for such a heavily bureaucratic industry in a heavily bureaucratic country. But he lacked the political support needed to see his policies through to conclusion and the merger between Air India and Indian Airlines has become a disaster. Kingfisher has been grounded for the time being and the most successful airline to date is Indigo. Jet's Airway's famous Chairman and founder, Naresh Goyal, is a leader with brilliant ideas and a very colourful character. *

ing IATA as I told you, I was very clear. I said, “Look, I will make a revolution here. I will fire 70 per cent of the staff, not because they are not good but because they are coming from a different world. I need a different set of management. I need management that comes from business because I want to run this as a business. Everyone would say that I wanted to make money.” “Giovanni (they would say) this is a not-for-profit organisation.” Look, I will run this as Chief, I will make money not because I’m not for profit. I am not using the money in order to pay dividends. I want to revolutionise the industry and I will run this like GE but I will still remember that I am an association. In my association you have great airlines with funds and with money, Lufthansa and so on. But I have small airlines as Air Koryo or Mongolian Airlines that has no money but I cannot just say, I don’t care. My job is to help every member especially small ones. On the other side was my staff, my only asset. When I arrived in IATA we had one month’s cash and I had a mortgage of 25 million Francs on the building. I said, that’s not a problem; I’ll make money because we are good. We changed all the staff. Out of 1500 of IATA staff, now 1400 are new. But the first day I said I need a different set of people. People that are coming from business like GE, IBM all the biggest brand names you have in the business. When we met for the first time, I would say “We have to hire the best.” But the leitmotif in IATA was, hire the cheapest. The cheapest you know doesn’t achieve any result.

How difficult was it to sack people? It was an unpleasant situation but you have to be honest. I was speaking with my team, my door was always open. I never refused a meeting. Everybody had access. My managers who were presenting the case, (I had to ask them continuously) what do we want? We try to make it less painful in terms of economics. And of all the people that we fired, I did not have one court case or zero court case. How receptive were the airlines to your manner of management and were they cooperative? The Board which is the most important, I would say, interface of the CEOs, was incredibly supportive. I had all my Chairmen, all my Board always supportive 100 per cent of my projects. The only discussion was when we had to set the timing of a target. Some needed a bit more time; some were less open to this. But we always found a balanced approach. In fact, if you see Cruising Heights July 2013

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MAKING a mark: (From our files – L-R) Ankur Bhatia, Executive Director, Bird Group; Former IATA CEO and Director General Giovanni Bisignani and Wolfgang Prock Schauer, Former CEO, Jet Airways in an interactive session on aviation industry organised by Confederation of Indian Industry (CII) in 2008

the target, at the beginning all my targets, electronic ticketing, IOSA, all of those, environment, impossible targets…we always met our targets… On electronic ticketing, I think that either 6 or 8 missed the target. So the target was tough. It was a crazy idea but most of the airlines, 99 pr cent of the airlines made it. Logically our money and our support were very important to give a lot of free consultancy to all the small guys.

You have also mentioned Noel Tichy… One of the persons I went to for advice — it was a crazy, crazy idea to join IATA — was Jack Welch. And there’s a lot in the book about Jack Welch because he was my mentor, my friend and my great boss. I went to Jack and I went to spend a weekend with him after I was offered the job and I said, “Do you think that it is an impossible target to achieve a dramatic change in IATA?” And I want to make IATA similar to GE as a model. He said, “Giovanni, the industry is in such a bad shape that they will give you

behave honestly and to everybody we made as much as we could, a good package.

So, a lot of people left when they realised what the truth was? I would say, in the first six months at least 30 per cent of the people left and of those 30 per cent at least 15-20 per cent were people who voluntarily came (saying) I am not the guy. Because you know the business school of Tichy is not one where you go, sit and listen. You have to participate. You are called at the front to explain. So people were really embarrassed.

everything that you want… but especially be fast. Don’t waste time. Go like a machine gun.” I would say that was the leitmotif of GE. And I said “You know Jack, I need somebody to help me and I need Noel Tichy.” Noel Tichy is a very famous professor. He teaches at University of Michigan, Ann Arbor. He is the Dean of the in-house Business School of General Electric in Crotonville. He is a very tough Business Professor. And I said, you know Jack, I cannot go and speak with Tichy because I know that he is very expensive. For training purpose in

IATA, we have $1000 a year… and he said, “Never mind, he will come free of charge because I will tell him that you are doing something important for the industry.” So, Tichy had a business approach model, you know a business case. He and his team spent six months there. Most of the IATA managers who were attending those meetings after two months they were coming to me and saying, “Giovanni I am sorry, I am not the guy for this new approach. So give me a package, I’m leaving.” Many of them understood that it was a different world. Many of them resigned. We tried to

You have spoken extensively about China in the book and you mention that they have done magnificently. Why do you say that? I have never seen in my career starting in this business in the 80s, a more successful story. It was a great successful story because the government…I’m saying when I arrived, I was lucky that I arrived with a Minister who was a very strong supporter of the industry and I remember I knew very well China from my previous experience before the airline business. I was familiar with that country. And we started to discuss and he asked me to become the official consultant to the Chinese government. We worked with them in consolidation. There were, I don’t know, 30/35 airlines. We explained to them there were too many. From 25 they went to 7 or 8, and they told me that we will need two years to make this happen. So the consolidation of the Chinese Airlines took 12-14 months — a record. Now I don’t want to compare what is going on in India because I am fond of your country but just to show you the difference. They consolidated the industry in 15-16 months. They were able to build the infrastructure: 20 airports in the last six years. The government is strongly support-

CO2 and aviation By the start of 2007, I knew it was time for another leap forward. The months ahead were going to be busy ones for the environmental agenda and we had to have a response ready. The main reason for the increased activity was the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report on Climate Change in May 2007. The IPCC Chairman was Dr Rajendra Pachauri and the report upped aviation's C02 contribution to 2 per cent of

man-made emissions. Pachauri is a serious scientist with great personal charisma. He has the patience to listen to others and is always ready to provide reasonable and achievable counsel. After a few meetings in Geneva and New Delhi, I built up a personal relationship with him and he was among the first to hear about our Four Pillar environment strategy. His suggestions did a lot for our credibility and future success. *

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ing the industry in an effective way. Yes, they have an advantage as they have a very low labour cost but they have done everything well. Honestly I have great respect. The only area in which they are still a bit slow and we are working on it but they’ve done a great job is Air Traffic Control. We have still certain lines of Air Traffic Control that are a bit complicated because they don’t have the capacity to handle Air Traffic Control.

Tell us about India? I would like to be positive because India is in my heart. I had many great stories with Mrs Indira Gandhi, with Rajiv and so many times I saw with a great pleasure. I was going there very often when I was in Alitalia because we had a daily flight to Bombay and Delhi. And so I was quite familiar with your wonderful country. And I was very pleased when Minister (Praful) Patel took over because it was a breath of fresh air, new approach. And I was telling him, “Look you have a big country but it’s a closed country.” And when he started to sign all those bilateral agreements with many airlines, I said this is a great opportunity. They have to open this because this is the future. On the other side I told Minister Patel, “Look, now that you’ve opened to many airlines and now there is good competition, I think you have to consider one thing. I love India and so I would like to see a big Indian airline. In order to do this you need to merge Air India and Indian Airlines.” I said, “Look, mergers are always very difficult because it needs bringing together two cultures, two stories, two contracts. And the difference between Air India and Indian Airlines is something very wide. So, you have to start only if you have an incredibly strong support from your government and you have to explain to your govern-

ment that the risk is that the two airlines are grounded for four months. It’s something dramatic. If you are not sure that you can take this, don’t do it because this is a story with an end that is never written.” Unfortunately, probably the support that he was expecting from the government was not there and the story of this merger that goes on, I don’t know, since years is a very, very sad story. It’s a sad story for the airlines, for the market, for safety, for everything. On the other side, it took you a long time to have a Regulator. At the beginning he was quite effective but after the Regulator became like the other Regulators, just a phantom. Second, a big surprise. You always say in India you never know when you start and you never know when you finish an airport. A good surprise was the terminal in Delhi. I remember when the (GMR) family, the son of the owner said, “Giovanni we will do this in 36 months.” I said, “Look, if you do it in 36 months, I will come with all of IATA and throw a big party to celebrate” and it was a big surprise. Yes it was great. On the other side you see the government using aviation for imposing taxes, fuel, etc. not doing the right thing. So it’s a story with some positive issues but still with big problems especially because I really think that a country like India deserves a first class big airline. It’s not a small country to say that never mind, leave this to the big guys. You are a big country with a future in terms of passengers. You need a big airline. That’s the reason why I really hope that this could find an end. On the other side you have some good airlines. IndiGo is a great story. Also (Jet Airways’) Naresh Goyal — he has a great story. He has now found a good partner, so has a great future. But I still believe that

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ENJOYING THE COMPANY: Former IATA CEO and Director General Giovanni Bisignani interacting with participants in a seminar held at New Delhi in 2009 on aviation and climate change

India deserves a national carrier. And we cannot go on seeing those failures after failures because it’s an embarrassment for the industry especially for those who love your country.

Which are your favourite airlines? I can say using my old head… I would say that my two most favourite airlines were Swiss and Air Canada because the two airlines are located in Geneva and in Montreal. Your forecast for the future? One, in terms of safety — we have to keep this good standard of zero loss of hull. When I joined IATA, it was impossible.

Time for governments to change If governments don’t change their perception of aviation, the industry will continue to be held back. And when you think of the economic, social and cultural problems that will ensue, it seems clear to me that politicians must find some backbone. First, they must agree to build new runways. Unless we get more runways, the system simply won’t cope with the increase in traffic. Second, governments need to coordinate their security thinking into the Checkpoint of the

Future concept. Nobody wants a repeat of 9/11 and nobody wants to wait more than 30 minutes in a queue and then have to undress and unpack. Third, they must support biofuels. It is a young industry with huge amounts of promise. But it needs a kickstart — some supportive regulation that gives it a chance to establish itself. Finally, governments must relax the rules to allow cross-border mergers. Airlines must have global access to financial markets. It will benefit the customer and the industry. *

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With a little help from Noel Tichy

Second, we had to instill safety and be more vocal with many governments in Africa because the hull loss rate in Africa is still unacceptable. It’s something that we cannot do because it’s not IATA member. So safety-wise, keep the good work (going) but don’t forget Africa. The nonIATA members need a strong support. One issue that was in my time — an unfinished stuff (business) but it is close to be ended — is the hassle that the passengers have at the airports. I always say we have three billion passengers. Our value proposition is great because it’s cheaper, it’s safer and it’s faster. The only problem that we have is the hassle at the airports. The hassle at the airports makes every passenger unhappy, when he steps into the plane because of his previous experience. You remember my ‘Checkpoint of the Future’?

In terms of internal reorganization (of the iATA), that meant targeting both the staff and the structure. I needed to expose the senior management to a new corporate culture…I turned to Jack Welch…Every month he would spend at least a day or two at GE’s legendary business school in Crotonville, New York. The ringmaster at Crotonville is Noel Tichy, Dean of the GE Business School, and the most prominent professor at the Ann Arbor University

I am still in contact with Homeland Security. I am following this. I follow this also as a Board member of Safran. And I think in a year’s time — in 2014 — we will have some tests of the crazy Giovanni idea that was the ‘Checkpoint of the Future’. Go through the tunnel and you don’t have to undress, unload your stuff, etc. And that probably will start operations in 2016. And

Business School in Michigan. I wanted Noel to put lATA management on the ropes but I wasn't sure a crusty association held any interest for him. I called Jack. I explained the situation was more or less what I had anticipated when we had met in New York. Jack noted that the strength of the GE management program was a major factor in the company's powerful performance across all their activities. Whether this would translate to an association was another matter, he added. Jack (Welch) was a great help to me. He met with Noel Tichy and managed to persuade him to begin a very different type of adventure with lATA. I explained my ideas to Xavier de Irala, who had taken over from Leo Mullin as IATA’s Chairman and was, coincidentally, a former GE manager. He knew Noel and had survived the tough challenges at Crotonville. After I told him that Noel was coming, he reflected silently for a couple of minutes and then said: “I hope it works.” I smiled back: “It will be like putting a bomb in a church.” *

this will also save a lot of money because airlines are spending $7 billion on this. This is a big hope because I really believe that in making passengers happy in the boarding process we will have strong supporters of aviation with their national politics or national communities. On the technical side, I think in 10 years time we will see no major changes. Blended wings mean more time, it’s not for this decade, it’s for 2050. The only thing that I think is making big improvements is engines and so we will have more and more efficient engines. On the other side I hope within a short time my environmental strategy will be formalised and on this I think with some adjustment we are quite in shape. You remember the target that I gave 20 per cent carbon neutral goal by 2020 is there. It’s there…We are flying with bio-fuel and we are achieving 1.8 per cent average improvement a year despite Single European Sky Next Gen not yet implemented. n

* Excerpts

from Shaking the Skies by Giovanni Bisignani (Publisher: LID publishing.com; 270 pages; £ 19.99)

a crazy giovanni idea: The ‘Checkpoint of the Future’ which will be ready by 2014 for passengers

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Cover Story

Fat orders new entrants innovations

Cruising Heights July 2013

The 50th edition of the Paris Air Show saw signs of hope for the aviation industry that has been gasping for a breath of fresh air. An on-the-spot report from Le Bourget

he 50th Paris Air Show wrapped up at Le Bourget with aviation companies announcing deals for about 1,460 aircraft over the show’s four business days, signalling not only a healthy global aerospace industry, but also the growing importance of smallto-medium-sized regional passenger jet aircraft. The show’s top aircraft sales performer was Airbus of Toulouse, France, which by rough count made deals for 536 singleaisle and widebody passenger jets during the show. Perhaps, the biggest surprise of the show was South American aircraft manufacturer Embraer with strong sales of the company’s recently-introduced E2 family of regional passenger jets. The final tally had Airbus with 537 aircraft sales worth about $70 billion, Embraer with 381, Boeing with 275 sales with about $66.4 billion (a Boeing announcement said the company actually sold 442 planes at Paris), French passenger

HALF A CENTURY: The poster advertising the 50th edition of the Paris Air Show at Le Bourget

Continued on Page 34

well organised: Paris Air Show attracted huge number of visitors from all over the world

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Embraer scores with next gen E-JETS E mbraer scored first points in its dogged battle with Bombardier for the regional jet space by launching its next generation of regional jets E2 — at the Paris Air Show. The E2 family will not only compete against Bombardier’s current slate of regional aircraft, but also the smallest of its upcoming C Series aircraft. The planes are an update of the Brazilian manufacturer’s existing E-Jets with new wings, better avionics, fly-by-wire controls and new Pratt & Whitney geared-turbofan engines. The aircraft are also larger than the existing E-Jets, and can reach upward of 144 seats in a high-density configuration of the largest, the E-Jet 195 E2. Frederico Fleury Curado, Embraer Chief Executive, said he believed that the E2 family would offer many of the benefits of a clean-sheet design that come from the commonality with the existing E-Jets. While the aircraft are too small to be a threat to the narrow-body aircraft of Boeing and Airbus, Curado said they would be competitive with Bombardier’s regional jets and its smaller C Series, the CS100, and are aimed squarely at the 70 to 130-seat market. Adding fuel to the fire, Embraer also announced its launch partners for the planes, including a firm order for 100 of the smaller E-Jet 175 E2 from SkyWest Airlines Inc., which carries options for an additional 100 of the aircraft. If all options are exercised, the order could be valued at up to $9.3 billion, and comes in addition to an order for up to 200 of the existing E-Jets in May this year by SkyWest. Embraer estimates the smaller 175 and 190 E2 will offer roughly 16 per cent better fuel burn than the existing E-Jets

and a 23 per cent improvement for the larger 195 E2 aircraft. It said the aircraft will offer about a 15 per cent improvement in maintenance costs, translating into between $1 million and $1.5 million in savings per aircraft over 10 years. Embraer also said it had letters of intent from five other operators across Africa, Asia, Europe and Latin America for 65 of the aircraft. Meanwhile, Air Costa of Vijayawada acquired three E-Jets for the launch of its scheduled regional airline service in India. Two Embraer 170s have been arranged from ECC Leasing, Embraer’s wholly-owned subsidiary. The new carrier has also purchased a new Embraer 190. The firm order is already included in Embraer’s backlog as an ‘undisclosed’ customer. “We are delighted that Air Costa has chosen the E-Jets for their operations. The aircraft are sure to promote greater regional connectivity in India,” said John Slattery, Chief Commercial Officer, Embraer Commercial Aviation. “Embraer has always maintained that the regional aviation market in India has tremendous potential. Our E-Jets are the right sized aircraft for service between secondary and tertiary markets which are underserved and, in fact, growing faster than metro markets.” “Air Costa has chosen E-Jets for their efficiency and reliability. Our plan is to link underserved markets in India with more direct flights,” said Captain Babu, CEO of Air Costa. “The E170 and E190 are ideal in size and range. We can add frequencies and routes without adding too much capacity, thus serving places with seasonal demand, as well as key secondary and tertiary business centres.”

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Bombardier optimistic about 2013-’32

rders worth $1.8 bn were bagged by Canadian aircraftmaker Bombardier for its large and mid-size business jets at the Paris Air Show, with strong demand for its Challenger 350 and Global 8000 jets. Switzerland-based VistaJet placed an order for 20 Challenger 350 jets, a $518 mn order based on current list prices. The order includes options for 20 additional Challenger 350s, which would increase the value to $1 billion. Also, Bombardier announced a firm $804 mn order for 12 of its Global 8000 business jets from an ‘undisclosed customer’. Meanwhile, the growth potential of emerging markets such as India, China, Russia and Latin America is predicted to play an increasingly important role in the global aviation marketplace, as per Bombardier’s recently-released annual 20-year forecast for the business and commercial aircraft market numbers. The report claims that as the business and commercial aircraft markets continue to recover from the industry downturn, signs of forward momentum are beginning to emerge and the demand for new aircraft orders will continue to come from developed markets. The aircraftmaker is confident in the strong, long-term potential of the business aircraft industry and forecasts a total of 24,000 business jet deliveries from 2013 to 2032 in the segments in which Bombardier competes, which represents approximately $650 bn in industry revenues. Bombardier’s Business Aircraft Market Forecast anticipates 9,800 aircraft deliveries, worth $269 bn, during the 2013 to 2022 period, and 14,200 aircraft, worth $381 bn, from 2023 to 2032. Speaking on the occasion, Michael McAdoo, VP, Strategy and International Development, Bombardier Aerospace, said: “With its comprehensive product portfolio, dedication to superior customer support, and solid product-development roadmap, Bombardier is wellpositioned for future growth.’’

Bell’s new clean sheet

TIE-UP: Bell’s John Garrison and Turbomeca’s Oliver Andries shake hands to signify the cooperation in the development of SLS

ell Helicopter at the Paris Air show revealed that it was developing a new ‘Short Light Single’ (SLS) helicopter that will be powered by a Turbomeca Arrius 2R turboshaft engine. “The new ‘Clean Sheet’ aircraft was expected to fly by 2014 and will be powered for the first time by a Turbomeca engine,” John Garrison, President and CEO of Bell Helicopter said. “Bell Helicopter is no stranger to the Short Light Single market. We developed it nearly 50 years ago with the introduc-

tion of the Bell 206 JetRanger and are proud to have produced nearly 7,400 Bell 206 series aircraft since 1967 with over 4,400 remaining in service today,” said Garrison and further added, “However, we needed to create a new, modernised aircraft to meet requirements of five-seat utility, training, private, and law enforcement operators.’’ Bell Helicopter’s new Short Light Single engine helicopter will feature a high visibility, fully flat cabin floor with five

forward-facing seats. It is designed to meet performance targets recommended by the customer advisory council including a speed of 125 knots (232-km), a range of 360 to 420 nautical miles (667 km) and a useful load of 1,500 pounds (608-kg). Garrison explained that the model’s expected performance is targeted to satisfy requirements that Bell has derived from input generated by the company’s customer advisory council and that the name of the new Bell model would be announced at Heli-Expo 2014. “We are thrilled to be working with Turbomeca, the world’s largest solelydedicated helicopter engine manufacturer. As we worked with our customer advisory council to define requirements for the Short Light Single Aircraft, we knew we needed a team member that could deliver an effective and reliable engine to power their needs,” said John Garrison. Olivier Andriès, Chairman & CEO at Turbomeca, said, “This is the very first time in 75 years of commitment to the helicopter industry that Turbomeca has entered a long-term collaboration with Bell. We are very proud to offer the newest member of our Arrius family, the Arrius 2R, to power Bell’s new Short Light Single Engine Aircraft. The entire Turbomeca team will strive to earn the confidence both of Bell and its worldwide customers”.

Rockwell Collins launches HeliSure R ockwell Collins launched HeliSure, a family of products that will provide helicopter pilots with unprecedented situational awareness to help them meet the challenges of flying in increasingly congested and hazard-filled airspace. HeliSure delivers sensor data in real time through an intuitive user interface that features 3D visualisation for information

that pilots can easily, quickly and effectively process. The first two products of the HeliSure family are Helicopter Synthetic Vision System (H-SVS) and Helicopter Terrain Awareness and Warning System (H-TAWS), which have been selected by AgustaWestland for the AW149, AW189, AW101 and AW169 platforms. HeliSure’s H-SVS perfectly matches EASY NAVIGATION: Pilots can easily, quickly and effectively navigate by using HeliSure which delivers sensor data in real time through an intuitive user interface

Rockwell Collins

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the outside world and meets operator requirements for improved situational awareness, particularly in degraded visual environments, where an accurate understanding of the surrounding terrain becomes critical. Rockwell Collins’ H-SVS solution is a fully integrated software application that can be ported to most current generation large format displays. Whether it is emergency medical services (EMS), law enforcement, search and rescue, or any number of other demanding mission profiles, the very nature of a typical helicopter mission means the aircrew must operate in potentially dangerous environments. HeliSure’s H-TAWS product enhances the safety of those missions by providing pilots with advanced warning about dangers along their flight path including its ability to graphically depict terrain and known obstacles.

cover story

Pilatus PC-24’s Paris debut

GREEN TECH: A photo of the A320 at Le Bourget displaying the EGTS technology developed by Safran and Honeywell

fter impressing the business aviation community with the recent launch of its PC-24, Swiss airframer Pilatus reached Paris to give the aerospace industry a glimpse of the sixseat aircraft. The mock-up of the $9 million superlight twin — branded by Pilatus as a ‘super versatile jet’ due to its large cargo door and its ability to operate from unpaved runways and grass strips — could be seen on Pilatus’ static display. “We have had an overwhelming response to the PC-24 from the traditional business aviation community,” said Pilatus.“We now want to see how the aircraft is received by the other sectors such as commuter airlines and emergency medical services providers.” The first Williams FJ44-4A-powered PC-24 will be rolled out in the third quarter of 2014, leading to first flight at the end of that year. Certification and service entry is targeted for 2017.

“The team has been incredibly focussed on system maturation. This is not just about achieving the demonstration at the Paris Air Show”

Tim Mahoney President and CEO, Honeywell

Continued from Page 31 turboprop designer ATR with 115, Canadian regional and business jet maker with 72 sales, followed by helicopter makers AgustaWestland with 54 sales, Sikorsky with 17 sales, and Eurocopter with 10.This year’s was the best Paris Air Show in the history of ATR.The company sold 115 passenger turboprop aircraft, though the company claimed to have sold 173. The biggest winner, apart from the two big manufacturers was the Russians. After years and years of trying to make a mark, they were there on the big stage and being taken seriously by everyone. In fact, as one observer who was attending his 15th

air show commented, “Russia’s defence industry, like the Su-35, is roaring into global markets.” Russian military exports have roughly quadrupled since the early 1990s and Sukhoi Su-35 fighter jet thrilled onlookers during a demonstration flight at the show. “I think that this shows we are firmly holding a position as one of the world leaders,” said Mikhail Pogosyan, Chief Executive of Sukhoi builder United Aircraft Corp., a holding company created in 2006 to consolidate and rebuild Russia’s battered aviation industry during a news conference. Although there were a few clean sheet launches at the show, most Russian products on display were modernised versions of earlier designs. The Su-35 was amongst the evolutions of the original Su-27. The Kamov Ka-52 was an update of an earlier 182 version. But where they beat the Western hardware is in their inexpensiveCruising Heights July 2013

Show stoppers

brief review of the big developments among commercial aircraft manufacturers at the 2013 Paris Air Show: Ø Airbus achieved A350 first flight just before the show and operated the third A350 test flight during the show. It racked up a slew of orders and commitments for new aircraft. Ø Boeing launched the 787-10 programme and indicated the 777X will be launched later this year. It will offer two variants of the next-generation 777. Ø Embraer launched the second generation of its E-Jet family, the ‘E2’, and touted winning 365 orders and options for the aircraft, including 100 firm orders from Utah-based SkyWest, one of the world’s most significant regional airline operators. Ø Bombardier readied for CSeries’ first flight, expected to occur by the end of June this year. Ø ATR set a record for the number of sales of its turboprops at Le Bourget and indicated it wants to bring an allnew 90-seat turboprop to market by 2018/2019. Ø Mitsubishi Aircraft Corp. outlined details of the MRJ flight test programme, revealing that some test flights will occur in the US. First MRJ flight is targeted for the end of this year.

The Alligator bares its fangs and the hunter hunts

n the first day of the air show on June 17, Russia signed an export contract for the delivery of the Mi-28N Night Hunter helicopter. The Mi-28N is a multi-

purpose military helicopter. More than 50 Mi-28 helicopters have been delivered to the Russian military as attack helicopters. However, he did not reveal who the contract — the first for Night Hunter in Le Bourget — had been signed with and for how many helicopters. It was previously reported that Iraq had ordered 40 Night Hunter helicopters from Russia. Russian Helicopters and Rosoboronexport showcased the latest Ka52 Alligator combat helicopter at the Paris Air Show on June 17 with a spectacular programme of flying. The Ka-52

Alligator is an all-weather, day-night combat helicopter, equipped with stealth technologies and active IR and electronic jammers, and is designed to Russian and international standards for combat helicopters and their operation. Kamov is working to provide a variety of weapons capability for the Russian Navy’s Ka-52K. While the design is yet to be revealed, no one knows what will be the weapon suite that it will carry? The aircraft at Paris was on view with a variety of MBDA’s weapons, such as the Marte anti-ship missile, Mistral air-to-air missile and PARS3 precision weapon. The Russians look at great prospects for the Ka-52. The chopper can operate at an altitude exceeding 4,000 metres. Two VK-2500 gas turbine engines enable the helicopter to fly above 5,000 metres.

SHOWING OFF: The Russian pavilion at the show and (above) the Russian Helicopters pavilion

ness and general robustness. The Russian aircraft still lack the cutting-edge electronics of rival Western products and generally require more maintenance, which can be expensive. Mikhail Pogosyan hopes to sell 100 Su-35s outside Russia and this is not an empty boast. He is positioning the aircraft against the best the West has to offer and they are pouring millions into development. Russian helicopters sales are growing by as much as 12-15 per cent each year and were the cynosure of all eyes at the show. With solid power, if not finesse, these choppers are finding their own market and they are competitive too when it comes to prices. Sukhoi is also marketing a new shortrange passenger jet, — Superjet 100 — that it has already sold in Russia and other countries, including Mexico. Despite a few hiccups including a deadly pilot error inducted crash in Indonesia, the aircraft was plumped solidly at Paris. In a formal ceremony on the second day of the show, the first Sukhoi SSJ100 Superjet for a Western customer was presented to Mexican airline Interjet. Later, Irkut showcased its narrowbody MS-21 commercial jet, with an airframe made up of 30 per cent composites including a vacuum-infused wing produced by Irkut’s AeroComposit Center of Excellence. According to Oleg Demchenko, Irkut’s President, “The MC-21 provides more passenger personal space

“I think (military export figures and onlooker response shows) that we are firmly holding a position as one of the world leaders” Mikhail Pogosyan Chief Executive, UAC, the Sukhoi builder

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than the 787 or the A350 XWB.” With the design frozen, the aircraft is entering production now and testing is underway. The first flight is scheduled for 2015. A few of the other highlights from the show included Boeing’s announcement of the stretch Dreamliner — the 787-10. The new model will transport 300 to 330 passengers up to 7,000 nautical miles/12,964 km, a distance that Boeing says covers 92 per cent of worldwide twin-aisle routes/ city pairs. According to Scott Fancher, Vice President and General Manager of Airplane Development, Commercial Air-

cover story

MRJ flight test programme by year-end

he flight test programme for the Mitsubishi Regional Jet (MRJ) was recently detailed by Mitsubishi Aircraft Corporation, which informed that some of the flights would be conducted in the US. Briefing reporters at the Paris Air Show, company executives said the first flight for the MRJ was on track to take place by the end of this year in Japan. The first flight test aircraft’s wing, fuselage and tail were under assembly and the first delivery to launch customer All Nippon Airways, which has 15 MRJs on firm order, plus 10 options, was targeted for 2015. There will be five MRJ flight test aircraft, designated #10001 through #10005. The majority of the flight test programme, which will total 2,500 hours in the air, will take place in Japan. But aircraft #10001 and #10004 will conduct some flight testing in the US. Aircraft #10001 will be focussed on testing basic flight characteristics and #10004 will be used for systems and interior tests, natural icing and extreme hot/cold tests and community noise tests. Aircraft #10003 will conduct detailed flight characteristics and avionics tests. Aircraft #10005 will conduct autopilot tests. The MRJ programme got a big boost at last year’s Farnborough Air-

show, with an order from Utah-based SkyWest Inc. for 100 firm aircraft plus 100 options. The third customer for the aircraft is Missouri-based Trans States Holdings, which placed a firm order for 50 plus 50 options. Given that 150 of 165 MRJ firm orders are from US carriers, Mitsubishi Aircraft Corp. is placing a large emphasis there. It recently opened a ‘quality cost delivery division’ in Chicago to support the MRJ programme. The division was tasked with overseeing the 17 MRJ parts suppliers based in the US, including engine provider Pratt & Whitney. “Lots of the production will be in the US, so monitoring it from the US will be more efficient,” Mitsubishi Aircraft Corp. President and COO Teruaki Kawai informed. VP and GM-Sales and Marketing Toshi Kawachi said, “The US continues to be our most important market.” Mitsubishi Aircraft Corp. plans to roll out a new flight test aircraft monthly once the first flight is achieved.

Boeing is planes, Boeing, the bringing new version will be forward the 737 25 per cent more efficient than similarly MAX’s Entry Into sized aircraft today, thanks to a combinaService (EIS) by six tion of the larger size, months to Q3 of engine configuration and the high-efficiency 2017 wing design, and will be

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the most efficient jetliner in history. Design has already started and the flight test is anticipated for 2017, with the first delivery in 2018. The 787-10 reportedly will go up against Airbus’ A350-900 and 1000 versions. Customers seemed pleased with the concept, as commitments for 102 aircraft were announced at the show. In fact, Boeing also announced that it was bringing forward the 737 MAX’s Entry Into Service (EIS) by six months to the third quarter of 2017. Joe Ozimek, Boeing’s VP of Marketing, was quoted saying, “We’re going to do very well with orders this year and see others in the pipeline.” After all, he had received 1,400 orders for the 737 MAX. Airbus, in a dramatic development, diverted its first flying A350 XWB to the show on June 21, during its third test flight, for a dramatic wheels-up flyby. The aircraft had completed its first flight only seven days previously. The flyover was witnessed by French President François Hollande, who arrived at Le Bourget on an Airbus Military A400M aircraft, from

X3 delights visitors

he X3 was there; so were the latest members of the Eurocopter family, including the EC645 T2, the AS565 MB Panther and the EC135. Just days before the show began, Eurocopter set a new unofficial world speed record for rotary-winged aircraft when its X3 hybrid helicopter attained 255 knot (472 km/h) in level flight on June 7. This record-breaking flight took place at an altitude of 10,000 ft during a 40-minute test-flight over southern France near Istres, the company announced on June 11. According to the company, this achievement followed a top speed set by the X3 of 263 knot (487 km/h) in a descent which was flown a few days earlier. Eurocopter test pilot Hervé Jammayrac and experimental flight test engineer Dominique Fournier were at the Paris Air Show to discuss their record-break-

EYE-CATCHING: Eurocopter X3 helicopter on display at the Paris Air Show

Villacoublay French Air Force Base, southwest of Paris. At the end of the show, there might have been smiles on the faces of the executives of both the top manufacturers’ faces, but it was Airbus who had the last laugh. The European plane maker quietly slipped past Boeing with 466 aircraft sold during the air show — a whopping $68.7bn at list prices. Airbus’ COO John Leahy supposedly told customers that he was so close to the annual target of 800 (having sold 758 aircraft this year), that he had planned to go fishing instead of pushing sales. He also said that his company had almost filled up the order book for the A320 CEO. Airbus presence was so dominant that Leahy quoted the latest A380 marketing campaign, saying that the company literally ‘owned the sky’. Topping the list of the 466 aircraft was the best-selling A320 family of jetliners, with 283 for the A320neo — retaining a 60 per cent market share for this new engine option productline. The remaining 88 orders/ commitments were for the A320ceo, filling a portion of the production slots that still remain for the current engine option version, according to Airbus President and CEO Fabrice Brégier. The widebody A350 XWB — which was Airbus’ latest jetliner productline member — will be entering the fleets of

ing flight in Eurocopter’s X3 technology demonstrator aircraft. According to Fournier, the record attempt was possible because there was still some ‘reserve’ power when the X3 had recorded speeds of 235 knots earlier. Between mid-2010 and mid-2011, the rotor had performed at those levels during several runs. According to the pilots, the transition from aircraft to chopper was smooth. The X3 is set to run for just around ten more hours as scheduled on the programme. There is nothing further planned for it and no one knows as yet if the prototype will move to the drawing board or it will just be another experiment at high speed rotor technology adaptability. Also, the company broke ground on June 20 for the start of construction on Eurocopter's new industrial site, known as ‘Paris-Le Bourget.’

Sikorsky scores

ikorsky Aerospace Services (SAS) announced its Sikorsky Training Academy (STA) — located in the US — that will open on September 6, 2013. The academy will provide advanced flight and maintenance training and will initially focus on the needs of international military Black Hawk helicopter operators. SAS, the worldwide aftermarket business of Sikorsky Aircraft Corp. implements and manages all training programmes for the company’s military and commercial platforms. Meanwhile, the company also announced a new joint venture with Boeing aimed at pursuing the US Foreign Military Sales (FMS) contracts that will expand the Saudi Arabian fleet of military helicopters. The equal share joint

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venture, Boeing-Sikorsky International Services will be based in Saudi Arabia, as both companies look to capture a large share of US FMS contracts in the country. The joint venture comes a few months after the helicopter OEMs agreed to partner on the US Army’s Joint Multi-Role (JMR) competition, a precursor to Future Vertical Lift (FVL). Sikorsky also announced several new orders at the show, including a contract with China’s CITIC Offshore Helicopter Co (COHC) for two S-92 helicopters. Sikorsky hopes the deal can break the stranglehold its big rival, Eurocopter, has on the lucrative and rapidly growing Chinese market for helicopters to be used in the offshore oil and gas business.

cover story three more airlines as the result of agreements announced at Le Bourget: Air France, KLM and SriLankan Airlines. Other A350 XWB orders/commitments were from Singapore Airlines and United Airlines — contributing to the total of 59 for the A350-900 and 10 for the A3501000. Rounding out the activity was an order for six A330s, further contributing to this jetliner’s overall sales total and validating its continued competitiveness in the international marketplace. According to Airbus, not only were the Paris Air Show’s new business numbers impressive on their own, the agreements represented important wins in terms of market segments, geographical regions and customer base. As an example, the signing of a Memorandum of Understanding with Doric Lease Corp for 20 A380s opened up new access for airlines to the double-deck jetliner — providing operators with the flexibility of operating lease agreements. The new Tunisian-based carrier Syphax Airlines signed a Memorandum of Understanding to buy three A320neo jetliners — the first time an African-based carrier has ordered the NEO, representing a breakthrough for Airbus in one of the world’s fastest-developing markets. In the static display area at Le Bourget, Airbus aircraft that turned heads during the show included the first A380 for British Airways, the 200th A320 Family jetliner for LATAM Airlines Group; the first Sharklets-equipped A320 for Air New Zealand, Airbus Military’s milestone 100th C295 multi-role tactical transport aircraft, and the No. 2 A400M multi-role airlifter for the French Air Force. Boeing, meanwhile, picked up 422 orders that included 20 737 NGs and 20 737 MAX aircraft — most of them last minute — placed by unidentified customers. Along with that, Boeing received orders for 60 737 MAX aircraft from TUI Travel

DREAMLINER AT THE SHOW: Among the planes that were on display was one of Air India’s Dreamliners

on May 31. Together, then, the total adds up to 482, way ahead of Airbus. Whatever the sales outcome from the show, what was apparent was the sense of optimism that was seen among the commercial aircraft makers This was best emphasised by Boeing in its annual forecast for aircraft demand over the next 20 years. It was estimated by the US manufacturer that the world would need 35,280 new planes, a rise of 3.8 per cent on Boeing’s previous forecast. A major share of the demand would come from the Asia-Pacific region, according to Randy Tinseth, Vice President for Marketing at Boeing

Commercial Airplanes. Of course, a fair share would also come from the Middle Eastern airlines. While there was plenty of action on all fronts, the most exciting technological innovations came on the ground. A dual French-American partnership gave its first demonstration of an electric taxiing system for passenger aircraft at the show developed by Safran and Honeywell. The “Electric Green Taxiing System” (EGTS) will also help airlines cut their fuel bills, as up to five per cent of an aircraft’s load of fuel is used while the plane is still on the ground. Following the Paris Air Show,

Gulfstream in Paris after six years

ager to s h o w off its two flagship business jets, the G650 and G280, which have set new world record flights, to business aviation enthusiasts, Gulfstream returned to the Paris air show after

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a six-year break. Steve Cass, Gulfstream’s Vice President of Communications, said: “The economic crisis that hit in 2008 forced us to evaluate our air show commitments. Now business is returning. We have an order backlog of $15 billion and international markets make up 60 per cent of this total.” He said that customers from across the globe wanted the

the test programme’s next major milestone will be to conduct manoeuvres at 20 knots, with the aircraft at maximum takeoff weight. “The team has been incredibly focused on system maturation. This is not just about achieving the demonstration at the Paris Air Show,’’ said Honeywell President and CEO Tim Mahoney. Perhaps, the biggest disappointment was the Bombardier C Series that was expected to garner big orders at the show. For starters, it was upstaged by the E2 that ran away with 365 orders. Bombardier was left to announce a few business jet orders that wasn’t really the same as plumping for the C Series. “We are discussing with dozens of potential customers… they’ve

company to exhibit at Paris. Gulfstream is also increasing its focus on the European market. Earlier in the month of June, the airframer opened a sales and design centre in London and recently expanded its Luton airport-based service centre. The ultra-long-range G650 smashed the record for the fastest flight from Savannah, Georgia to Paris, Le Bourget, which was held for 25 years by the out-

Eurocopter and Ramco ties up

Project Zero catches eyes

urocopter recently got into global partnership with Ramco Systems. Both companies will jointly offer stateof-the-art helicopter maintenance software which will ease the life of operators and maintenance centres. The partnership agreement, signed at the 2013 Paris Air Show, enables Eurocopter and Ramco Systems to offer additional mobility and functionality for the collection and treatment of MRO-related data. “Ramco’s cloud-based maintenance software solution is an outstanding addition to our service offering,” said Matthieu Louvot, Vice President of Support and Services, Eurocopter. “The partnership will bring us closer to our customers’ maintenance operations, enabling us to offer them the best quality of service.” The Ramco-Eurocopter cloud based MRO software will cater the unique needs of smaller operators, MROs and CAMOs, which until now had to either run on disparate point solutions or has to operate manually to track maintenance and manage safety and regulatory compliance.

t hits you in the eye as you pass by it. Shrouded in a tent, one of the most striking items on display at the Paris Air Show was AgustaWestland’s Project Zero? Was it a flying machine? Yes! Was it a helicopter? Was it an aeroplane? Yes, no, maybe! It featured two three-blade rotor/propellers cloaked into the wings. Powered by lithium batteries, the contraption does fly, but how far and how fast is something no one is talking about. What the project has achieved, though, is an all-electric motor, an outstanding propeller blade control that adjusts each blade's pitch 18 times a second, and a complete absence of the hydraulic systems commonly found in helicopters. It was a carbon fibre contraption whose actual weight is around 500 kilograms. There is a move to have ‘Project Zero’ evolve from electric to diesel. A car engine derivative is soon to be installed in the coming months. The engine hopefully will give the aircraft the much-needed endurance to keep it going. While taking off, both diesel and electric power could provide the thrust and while cruising the diesel motors could act as generators that will help turn the blades.

Mathieu Louvot of Eurocopter and PR Venketrama Raja of Ramco Systems at the signing ceremony

The AgustaWestland Project Zero flying machine on display at the Paris Air Show

of-production GIV. “The G650 made the 7,221-km (3,899 nm) trip in 7 h 12 mins, shaving an hour and four minutes off the GIV's time,” said Cass. The super-midsize G280 set a city pair record on June 9, flying the 6,557-km (3,358 nm) journey from Hanscom Field in Bedford, Massachusetts to Bydgoszcz airport in Poland in 7 h 21 mins. Both records are pending confirmation by the National Aeronautic Association.

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been here visiting us,” Mike Arcamone, who oversees commercial aircraft for Bombardier, told journalists. “We are not scheduling orders for the air show since we must sign orders that are beneficial for both parties,” he said. Finally, a word about the show. Inspite of all the downturn and the economic slump, it was a sold out Le Bourget. Barring the exception of Northrop Grumman, no major American company was absent and the general perception was that the downturn was slowly ebbing and next year could be better and bigger. n

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Engines on a roll

Engine-makers rode on the tail winds of manufacturers to record big orders at the show

MTU wins with GEnx

TU Aero Engines has scored big at the show. Thanks in no small measure to its relationship with Pratt & Whitney. Germany’s leading engine manufacturer recorded orders worth more than $ 1.3 billion; over three-fourths of the more than 1,300 engines ordered were the PW1000G family, which offer a lower fuel burn and are very quiet. “This is an impressive proof that the eco-efficiency of flying is increasingly becoming a major priority, and that the geared turbofan engine has firmly established itself as the new propulsion concept in the marketplace,” commented MTU CEO Egon Behle. Five manufacturers have so far opted for the concept: Airbus is offering the GTF for the A320neo, estimating the market demand at about 4,000 aircraft of this type. Bombardier has selected this engine family as the exclusive propulsion system for its new CSeries, as has Mitsubishi for its MRJ; Irkut has chosen it as an engine option for its MS-21; and Embraer has picked the geared tubofan for its new E-Jets E2. Germany’s leading engine manufacturer has stakes of 6.5 to 18 per cent in the GEnx, V2500 and PW1000G engine programmes of Pratt & Whitney. MTU contributes key components to the geared turbofan, as, for example, the high-speed low-pressure turbine; it moreover assumes responsibility for the final assembly of 30 per cent of all PW1100G-JM engines to be produced. In the V2500 programme, MTU is likewise responsible for the low-pressure turbine.

CFM fuels GE order book

E Aviation and its joint-venture partners are flush with bulging order books — the total is bigger by $26 billion. The highlights include an $8.6 billion order from AirAsia for jet engines and services such as the next-generation LEAP engines using 3-D printed parts and advanced ceramic composites to reduce weight and fuel burn. CFM International, the joint venture between GE Aviation and France’s Snecma that developed the LEAP, will also make 120 LEAPs for TUI Travel. That order is valued at $1.56 billion. In total, CFM won $15 billion in new contracts. The momentum for CFM Internationals’ advanced LEAP engine family continues to build as the company logged orders and commitments at the 2013 Paris Air Show. During the show, CFM announced orders for 660 new engines (468 LEAP and 192 CFM56), in addition to LEAP and CFM56 services agreements, at a combined value of $15 billion at list price. The 2013 orders to date now stand at 1,654, including installed, military, and spare engines. Other developments include  Plans to build a new 125,000-sq ft facility near Asheville, North Carolina to produce engine components made of advanced ceramic matrix composite materials. The facility will open in 2014.  Amongst others, India’s national carrier, Air India, signed an OnPoint overhaul engine services agreement for the time and material related to the maintenance, repair and overhaul of its 96 CFM56-5B

engines that power its Airbus A320s.  GE Capital Aviation Services reached agreement to participate in CFM International's unique Portable Maintenance for Lessors (PML) programme. The product is the first of its kind in the industry and enables lessors and operators to optimise engine maintenance costs throughout the life of an aircraft.  Etihad Airways entered into an agreement with Taleris, a joint venture company between GE Aviation and Accenture, to launch groundbreaking new technology to help predict potential maintenance faults and recommend preventive action. Taleris’ web-based prognostics service, a part of its Intelligent Operations offering, is a first for the commercial airline industry and will be used to monitor Etihad Airways’ fleet of Airbus and Boeing aircraft. The prognostics technology will leverage the Industrial Internet to increase the airline’s overall operational efficiency.

HAL talks with Dassault, SAGEM

uring the Paris Air Show, top officials from Hindustan Aeronautics Ltd. (HAL) met with the executives of Dassault Aviation to review the progress on several projects that are in the pipeline. Both the teams expressed satisfaction about the work that has already been achieved and renewed their commitment towards successful completion of the various projects that are underway. HAL also entered into a contract during the Paris Air Show with SAGEM (Safran,

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France) for setting up of manufacturing and depot level maintenance facilities for Automatic Flight Control System (AFCS)

cooperation: HAL Chairman Dr R K Tyagi with Dassault Aviation Chairman and CEO Eric Trappier at the Paris Air Show

P&W says it’s got over 1000

ratt & Whitney announced new orders for more than 1,000 engines, including options, and highlighted key milestones for its military engines programmes. The company’s new commercial engine announcements include orders from customers around the world for new PurePower, IAE V2500 and Pratt & Whitney PW4000 engines. With new PurePower engine orders announced at the show, Pratt & Whitney now has more than 4,500 orders and commitments, including options,

Rolls scores with A350XWB

olls-Royce increased its order book and confirmed plans for its most advanced Trent 1000 engine. The Group announced significant new orders and agreements for engines and services with a number of customers including Philippine Airlines, Air France-KLM, and United Airlines. It is also celebrating its biggest ever civil engines order: a $5.6 billion deal for Trent XWBs to power Qatar Airways’ 80 Airbus A350 XWBs.US Airways has also committed to the engine for its 22 A350s in a $1.8 billion deal. Both contracts include Rolls-Royce’s TotalCare long-term services agreement. The show followed the successful maiden flight of the Airbus A350 XWB, powered by the world’s most fuel-efficient engine, the Trent XWB. Major orders for the Trent XWB were placed by United Airlines, Air France-KLM and SriLankan Airlines. Build of the first Trent 1000-TEN test engine for all models of the Boeing 787 will begin later this year, while Trent 1000 flight test engines have been delivered to Boeing for the first 787-9 variant.

LRUs (Line Replacement Units) including sensor at HAL, Hyderabad. The Transfer of Technology (ToT) will enable HAL-Hyderabad to in-house manufacture and provide depot level maintenance of AFCS LRUs for Advanced Light Helicopter (ALH) and Intermediate Jet Trainer aircraft (IJT) platforms. The possibility of fitting AFCS LRUs on Light Combat Helicopters (LCH) and Light Utility Helicopter (LUH) platforms is being explored. The facilities at Hyderabad are expected to be established in two years to cater to the Indian customers.

from more than 40 customers around the world, which helped the company maintain its lead position of more than 50 percent of Airbus A320neo engine orders. “2013 has been a tremendous year for the PurePower engine and we’re very pleased with the amount of confidence customers are showing in it,” said Pratt & Whitney President David Hess. “The engine continues to achieve major milestones — including the first test flight of the PW1100G-JM engine that will power

the Airbus A320neo. We are also making tremendous progress on the F135 programme in delivering the safest, most affordable and reliable propulsion system for our US and international partners, and for a growing community of allied nation customers. The future remains bright for Pratt & Whitney.”

Interjet aircraft to demonstrate reliability of engine

n June 18, Mexico’s Interjet held a presentation ceremony for its first Sukhoi Superjet 100 at the Paris Air Show. PowerJet Chairman and CEO Jacques Desclaux discusses the important milestones for this programme.

What are the different Safran applications onboard the Sukhoi Superjet 100? The Group has a major participation in this regional aircraft. Through PowerJet, we are involved in the propulsion system including the engine, with Snecma responsible for the hot parts and engine equipment, and the nacelle and thrust reverser are made by Aircelle. Furthermore, the landing gear is developed by Messier-Bugatti-Dowty, Microturbo supplies the starter and Techspace Aero contributes to the engine lubrication system.

mainly at Aeroflot but also in Southeast Asia, successfully entering into service at Sky Aviation (Indonesia) and Lao Central Airlines (Laos). The latter have confirmed the engine’s excellent reliability rate, close to 99.9 per cent, which is exceptional for such a recently created programme.

What are the areas of development for the programme in the coming years? We want to strengthen our service offering to our customers. We are now in a position to offer them comprehensive support and maintenance through PowerLife, which covers the engine’s entire life cycle. For example, we have signed long-term maintenance contracts with Interjet, Sky Aviation and Aeroflot and we are negotiating with our other customers.

To what extent does the delivery of the first SSJ100 to Interjet represent an important step for PowerJet? This is a major milestone because it is the first delivery to a Western company operating in a fully competitive environment, with safety and maintenance standards that comply with the most stringent international regulations. The entry into service of the first Interjet aircraft will therefore demonstrate the validity of the technical choices that were made and the excellent reliability of the engine. More than two years after the engine’s entry into service, at what stage is the programme? Today, 15 SSJ100 aircraft equipped with SaM146 powerplants are in service,

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focus

ON TARGET: A controller at the remote tower installation at BodĂ¸ in Norway. On the wraparound screen are approaching planes and weather/wind conditions (circled)

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Welcome the 'No Show' Air Traffic Controller With new technology coming in, Air Traffic Controllers would no longer have to station themselves at airport control towers. Saab has developed Remote Towers that will enable controllers to view and guide aircraft to their destinations safely from locations that could be hundreds of miles away from an airport, reports Tirthankar Ghosh

few years ago, no one would have imagined that a palm-sized smartphone would perform duties that a full-scale computer can: send and receive emails, provide directions to places, keep track of your payments, take photos and videos and even make phone calls and text messages. Today, the smartphone is an essential part of our daily existence. But as Michael Sahlberg, Marketing Director, Saab India Technologies, puts it: today’s smartphone would be so out of place in a few years’ time that we would ask ourselves why indeed did we use one. Sahlberg can afford to predict: he deals with frontline technology in aviation — Remote Towers — a concept that Saab is a pioneer in. It is not that there aren’t others in the field but Saab is a front-runner and its Remote Towers are, even as we go to press, being tried out in Europe and Australia.

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‘Do we need to sit in a tower at all?’ Michael Sahlberg, Marketing Director, Saab India Technologies, on the path-breaking new Remote Towers and how they could change simplify aviation operations How did the Remote Tower project start? At Saab we started our R&D project in 2006 to investigate if it was possible to do any technical improvements to improve air traffic control services at regional airports. Jointly with the Swedish airport authorities, Luftfartsverket (now LFV), we did a R&D project — they from an operational perspective and we from a technical perspective — and it ended up in a trial site (see pictures), and the trial tower so to speak. And from there we conducted a full one year parallel operations and the result was that this was feasible for full operations. There were a lot of hurdles in terms of redundancy, technicalities, operational security, etc that needed to be overcome, because there is no handbook for tower control operations from a remote tower. So, we had to write the rules. But at the same time we ensured that we didn’t violate any

rules. We tried to adopt the current rules and write a new chapter for conducting air traffic from a remote tower. And it was successful. So, in late 2011, the Swedish authorities ordered full operations for two airports. We handed over the technical part in late January this year to the authorities. And now they are doing their final setting for tests. Saab’s part is now done. They will inaugurate it and plan to do the first fully operational remote tower flight in September this year.

What about your competitors in this field? Competitors are popping up but as I say anybody could build a camera tower. It’s all about getting it operational. We have experience of the last several years. And, of course, others — both customers and we— have learned. You can take a shorter route but we know all the hurdles that we have come through. So, we think we are

still on the leading edge when it comes to remote towers because now we can focus on the next generation.

Do you think India could use such Remote Towers? Yes, we probably would like to jointly work with the Airports Authority of India (AAI), or some local partners to start — let's say, a pilot project because you need to do a feasibility study to know how to operate in this new manner-. Where is it suitable? What kind of infrastructure does it need, etc? All this because the cameras of a Remote Tower need a certain amount of bandwidth. What kind of cost saving would a Remote Tower bring? A framework tower versus a concrete tower ismuch lower. Easy. And then to be able to manoeuvre your operations to run a number of airports from one location, it will save labour costs in some respects and all the issues that come with labour. We are only talking about the person who sits in the tower. We just move the person who sits in the tower to another location. And by smart technology and smart planning of aircraft movements in an area, you can probably control from one centre, multiple airports. During peak hours there is one-toone; probably one controller for one airport. But then during off-peak hours, there could be one controller supervising four airports. So you can really do a lot of cost saving in the long run.

hemant rawat

How do you see the future? It's really hard to say but I believe in 15 years’ time, we will ask ourselves: How could we sit in this tower? Why did we sit in a tower next to the airport? It didn't give us any benefits at all by sitting in a tower. At the same time, the people that are working in conventional towers are very conservative. ‘Oh, we have always done it like this. it couldn’t be done in another way,’ they say. So, it (bringing in and working in Remote Towers) needs a new set of mindset. — Interviewed by Tirthankar Ghosh

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Simply put, a Remote Tower is a conwere a lot of hurdles. Chapters in the ATC cept that enables Air Traffic Controllers manual had to be rewritten because it was (ATCs) to control airport traffic from a rethe first time that ‘control’ was being done mote location using a 360-degree presentafrom a remote location. But when the early tion being constantly fed with live traffic concept proved to be successful, the Swedvideo, weather conditions and all other ish Air Navigation Service Provider, LFV, data one would have in the tower. ordered a remote tower platform for That, in effect, means an ATC two airports and a Remote Towcontrolling flight take-offs er Center (RTC). and landings not from the Way back Reflecting on the progcontrol tower but from ress, Sahlberg confidentin 2008, Saab a room which may be ly said that “we think started its research many miles away from we are still on the leadand what it ended the airport or even in ing edge when it comes up with was what is another city. to remote towers beExciting as it may cause now we can focus now known as sound from a technolon the next generation”. the Remote ogy point of view, the ReThe concept is being tried Tower mote Tower concept is still out in Sweden, Norway and undergoing trials. Prompted Australia. Sahlberg pointed by the rising cost of aviation and out that Remote Towers had been related infrastructure, the Swedish airport “set it up in two airports in Sweden for full authorities tried to find out whether it was operation in Örnsköldsvik and Sundsvall”. possible to have efficient air traffic manThe two cities are approximately 130 kms agement at lower financial outlays. In 2006 apart with the control centre at Sundsvall Saab started its research and it developed airport. In addition, there are two test sites the Remote Tower. in Norway — Røstand Værøy — where In the initial stages, it was like groping “the operations are progressing faster than in the dark. Sahlberg mentioned that there we thought”. Lastly, far away from all the

action in Scandinavia, a Remote Tower is being evaluated at Australia's Alice Springs Airport with the control centre at Adelaide, some 1500 kilometres away. Remote towers use technology where real-time video feeds from cameras at the airport are streamed to the remotely located center via a high speed digital datalink. The airport tower has a number of cameras that together provide a 360-degree view for the controller in the RTC. In addition, the controller is given a dose of ‘atmosphere’ created by the meteorological feeds and sounds from the airport. In fact, so advanced is the system that the controller can even control the amount of visible light from the airport and zoom in and out from particular areas, almost like seeing through high-powered binoculars. Saab has also enhanced the technology to aide visibility in fog conditions, such as those that envelopes Delhi in winter. The cameras provide a view of the airport as if the controller were looking out from the tower. He can then direct the planes to take off, land and taxi to a gate. For a country like India where aviation infrastructure is in the process of being created, Remote Towers could be used by

MILES AWAY FROM AN AIRPORT: An Air Traffic Controller at Bodø in front of the wraparound screen that shows aircraft landing in one of the two sites in Norway — at Vaeroe and Roest — that will become certified for operational use during Q4 2013

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focus airports that see a handful of flights a day to economically provide air traffic services. Sahlberg said these airports could be those that have 10-15 aircraft movements a day and with a staggered schedule, While Remote Towers could play a role in the future, a controller could open up one airport — such as Bhopal — in the morning, switch efforts are on to enhance airport efficiency today with the picture and run Raipur two hours later. Collaborative Decision Making that was recently The number of airports handled by a single controller could even go up to four. Such implemented at Delhi’s IGI Airport utilisation of staff will reduce training times and costs while providing controllers n June 5, 2013, World Environment with three operating runways and the access to, and, therefore, knowledge about, Day, the capital’s Indira Gandhi upcoming state-of-the-art ATC tower we new airports. At new airports, a remote International Airport (IGI) took a giare poised to handle a robust air traffic tower system could be deployed instead of ant step forward when it became the with best accuracy and efficiency.” a costly tower with the controller operating first airport in the country to introduce In the A-CDM approach, milestones the airport from a facility on the ground at Airport Collaborative Decision Making for the incoming aircraft, the turnaround the airport. (A-CDM). The A-CDM concept was time and the departure of the flight are Perhaps, what is more important is that first introduced in defined to make the these towers offer image tracking features Europe some years operation precise that are not available with legacy towers. ago. Since then, it and predictable. The feature allows the controller sight has been adopted Two of the most imof the aircraft much sooner than what is by a number of airportant milestones available today. Said Sahlberg, “Today, in ports that primarily are the Target Off poor weather conditions to be able to clear face the challenge of Block Time (TOBT) somebody to land, the controller must see constantly rising air fixed by the airthat the (plane’s) landing gear is down. traffic together with line or the ground With normal vision, you have a visibility pressures to reduce handler between of 1.6-2 kms. With the support from the costs. This makes 45 minutes and 20 zoom camera that we have available (in the the airport’s task minutes before the remote tower), we can see key details at of ensuring safety estimated departure distances comparable to being in the tower and efficiency of and Target Startto see if the landing gear is out or not”. operations more deup Approval Time Despite these advantages, Sahlberg manding. The task (TSAT). Based on and his team find that some aviation aubecomes more difthe TOBT timings, thorities are hesitant to test new technoloficult by the limited the air traffic congies, such a remote tower, Indeed, it is an growth of airport points to remember: Marcel Hungertroller knows the uphill task. “Right now, I would say I’m on buhler, COO, DIAL, presents the Airport infrastructure. demand of the runa mission to educate (aviation stakeholdCollaborative Decision Making (A-CDM) The Delhi initia- initiative to the media way and accordingers),” said Sahlberg. He is convinced that tive — spearheaded ly plans the optimal remote towers “will not enter India until by Marcel Hungerbuhler, COO of DIAL departure sequence and determines the 2015. There are so many stakehold— was jointly taken up by the Air Traffic Target Take Off Time (TTOT) ers that you have to convince to For a Control (ATC), DIAL as well as the airfor each departing flight. Destart”. But he has been hamcountry lines operating from the airport. Named ducting the variable taxi mering away that trialing as DA-CDM (Delhi Airport-Collabortime between the runway remote towers could be an like India where ative Decision Making), the concept and the aircraft bay gives advantageous move. “If aviation infrastrucfocuses on improving Air Traffic Flow the so called TSAT, the we in India are going to ture is in the process fulfill our air traffic goals and Capacity Management at airports by time for the aircraft to of being set up, Re- by 2017, we need to do reducing delays, improving the predictpush-back. ability of events and optimising the utiliP K Mishra, Execumote Towers could something else than build sation of resources. It involves airport tive Director (ATM-ASM) concrete towers,” he said. be used by airoperators, airlines, ground handlers and added that the “DA-CDM At the same time he agreed ports ATC collaborating and sharing data to project aims to improve the that uncertainty about remote increase overall airport efficiency. overall efficiency of operations at towers was not India-specific. “It’s Commenting on the initiative DIAL an airport, with a particular focus on the not a mindset that is limited to this counCEO, I Prabhakara Rao said, “The DAaircraft turn-round and pre-departure try, it’s the same throughout the world,” he CDM is a true game changer in the Insequencing process. After two years of said and pointed out that “it’s not a long dian aviation industry. A move that will diligent work, Delhi ATC has managed journey but it’s a mission. The most imporallow us to achieve annual savings at IGI to achieve this with the support of the tant thing is that we need people’s mindsets Airport of 2500 tons ATF and also leadDIAL team.” With enhanced predictto change. Ten years from now, you would ing to 7850 tons of saved CO2 emission ability of traffic through DA-CDM, not imagine living with a smartphone; toby reducing the taxiway time by even a planning, control and management of air day, you can’t live without it. And I would mere one minute per aircraft. In addition, traffic will become highly efficient. say the same thing for remote towers.” n

CDM boosts IGI efficiency

hemant rawat

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Net Express

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In the air but yet not ‘in the air’ When advertising is almost outdated and the consumer wants better communication and more control, airlines all over the world are realising the importance of being in cyber space. Will our domestic carriers follow the world and be on social media?

hen frequent flyer Diya Biswas, a banking professional, was told by Air India at the Delhi Airport that her flight would take off few hours late due to “unforeseen delays in the incoming aircraft,” she, like many other fellow passengers, posted her views about the airline on Twitter and updated her Facebook status accordingly. Most co-flyers, recalls Biswas, openly shared their frustrations on the social network site or the other. Such is the power of social media that the Indian aviation market — one of the fastest growing in the world — is realising the need for better communication with its customers over the social media platform. Hence, the measures by airlines around the world to make a strong presence in cyber space, besides expanding in the skies. More than 70 per cent of these carriers intend to increase their social media budgets this year. According to a survey of 29 airlines by SimpliFlying, an airline and airport consultancy firm, this represents a

two-fold increase in the number of airlines planning to increase their social media budgets, when only 40 per cent did last year. Also, data suggests that 40 per cent of airlines are expanding their social media team, bringing in employees from marketing, customer service, e-commerce, corporate communications and other departments. Traci Mercer, Vice President, Market Management for Asia-Pacific, Expedia, was quoted saying that engagement through social media was an ‘absolute emerging trend’. She also pointed out: “Fundamentally, we have gone from an information age to a recommendation age and this is all driven from social, which means the customers now become advocates,” she said. Gone are the days when advertising was good enough to market one’s products. Advertising is outdated and today’s passengers want a larger chunk of the pie with better control and communication. While airlines in the West make innovative use of the social media to get to know their cusContinued on Page 51 Cruising Heights July 2013

INSIDE

interview Jackson Fernandez, General Manager, Wego India

Airbus unveils RFID ‘Bag2Go’ Airbus has come up with a prototype ‘smart’ bag with an RFID chip

Wego’s new audience Platform Wego.com recently rolled out its new Audience Engagement Platform

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‘Indian travellers appreciate Wego’s unique metasearch capability’ Jackson Fernandez, General Manager, Wego India, explains how in a scenario where the Indian traveller is seeking more unusual destinations and travel experiences, Wego has opened up a myriad of travel options and is releasing travellers from a fixed travel itinerary

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Today’s traveller seeks more than a holiday — he/she seeks an experience. In this scenario, what are your observations about the Indian market and its unique traits? How do you visualise it growing? The Indian online travel industry has reached a value of $6 billion and is growing at 28 per cent with 32 per cent in online bookings. Indians are rapidly shifting and adopting online travel purchasing and actively seek sites that can make their experience seamless and simple. Wego has found success in India for these reasons and entered the market at just the right time. The value that Wego’s unique metasearch capability can deliver to Indian travellers is clearly appreciated as the site aggregates hundreds of travel options across major hotels, airlines and travel providers — both domestic and international — to give the user a simple, yet comprehensive, view on a single screen. We've found that the Indian traveller is becoming more open-minded when it comes to travel choices, seeking more unusual destinations and travel experiences from the usual destinations. Wego opens up a myriad of travel options right across the world and releases travellers from a fixed travel itinerary. Armed with such information and inspiration, Indian travellers are leading a new generation of travel experiences. What are the challenges of the India market? At first our challenge in India was to gain market acceptance — both from a business and customer point of view. Wego is a wellestablished brand in South East Asia and Australia having launched in 2005 in Singapore. Introducing a new brand in India’s competitive market was always going to be a challenge but our advantage in gaining partner confidence was our already established international coverage and proven global partnerships with heavyweight OTAs (Online Travel Agents), airlines and accommodation brands worldwide. Once the Indian partners realise the value of increasing their domestic visits as well as their access to international markets they embraced the relationship, recognising the win-win situation and we’ve grown exponentially. We enjoyed rapid customer loyalty fairly quickly as wego.co.in partnered with Indian travel partners. Customers immediately understood the best range of travel options both domestically and internationally were offered on our site and bookings surged. Additionally in an industry first, wego.co.in integrated 11 vernacular Indian languages such as Hindi, Gujarati,

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Marathi, Telugu, Tamil, Bengali and more making Wego the most locally relevant travel search site in the country. Our long term vision is that access should not be restricted by language when it comes to planning and booking travel.

How will Wego go about expanding in India? The India team recently moved into a new and larger office space in Bengaluru. Realising the promising growth right across the company, we’ve accelerated our hiring of bright talent to help us scale operations this year. Wego plans to use India as a base for expansion in the subcontinent and has been recruiting aggressively. The intent is to tailor the product and offering for the Indian market and to ensure that we bring the best in terms of partners and experience to our users. Can you elaborate about Wego’s operations in India? What started as more of a front-end operation has quickly expanded into a fullyequipped team with our own development unit and other critical functions supporting the growth of Wego's business in the subcontinent. In the present times, where do you think the Online Travel Agent (OTA) stands and what does its future hold? I think the Indian OTAs have done a remarkable job in educating and creating the online travel market both from the customer acceptance angle or providing leverage for vendors through online channels. There is tremendous growth opportunities in hotels, packages and other travel related products. The shift of taking travel online is well underway. We foresee more and more services shifting online; apart from booking of flights, hotels and packages, to trains, buses and even cabs. Each is providing a wide range of services and selection to attract online buyers with a wider variety of products and better prices. India’s OTA industry will continue to grow as internet penetration increases, online payment transactions gain more acceptance and users become more comfortable with online booking options.

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larly, platforms like YouTube play a role in tomers and interact with them, carriers in showing consumers an experience visually, India have yet not exploited the platform prior to experiencing it live, satisfying an fully and use it more like a hoarding important channel of decision making. and less as an interactive platform. According to MindShift, a Jet In fact, few airlines are still condigital outreach firm, Jet AirAirways templating about the increase ways had the biggest footprint has emerged as in social media, followed by in their social media budget. According to Shashank SpiceJet and the late Kingthe most active Nigam, SimpliFlying CEO, domestic airline fisher. Air India and GoAir pointed out on his website are at the bottom, Zafar Rais, on social that the “biggest challenge by founder and CEO of MindShift media airlines is the insufficient allocaInteractive, pointed out. The tion of resources to social media”. future will see those Indian airlines Besides budget, Nigam also emphasised present on the social media beginning to the importance of having a strategy before understand consumers better while those entering cyber space, saying many aircarriers that have low or no presence will lines wanted to be online but did not know start investing and integrating social media what to do differently on social media. The strategies to communicate better and faster majority of airlines and airports face this with their consumers, according to Rais. problem, he said, since they relied on social A recent study by Buzzom.com on media agencies that just recommend basic Indian airlines showed that Jet Airways had tactics with no link to the company’s overemerged as the most active domestic airline all business goals. As a result, they may be on the social media: it received more than on Facebook, Twitter and Instagram, but 4,000 conversations on various networking there was ultimately no link to their stratsites, in a time span a short as two weeks. egy, he added. According to Nigam, more Jet has synchronised its presence across than 200 airlines have Twitter accounts, but various social media platforms like Faceonly 27 are highly-active tweeters. book, Twitter, YouTube, Flickr, Foursquare Nigam singled out Japan Airlines and LinkedIn. It has also started using QR (JAL) as a role model for having built an Codes — incidentally, the first to use all ‘astonishing’ 10 mobile apps in 2012, covthese platforms among the domestic carering everything from mobile bookings and riers. The primary objective of being on airport navigation to inflight entertainment social media is to inform and update flyers and flight countdown. Tomohiro Nishihata, on all the recent developments on a realVice President for Web Sales and Markettime basis and build a strong relationship ing, JAL, was quoted saying that the carwith them. Another reason why airlines rier wanted to engage its customers at every keep a close watch on the social media is possible touch point because that was how the fact that 75 per cent of frequent flyit could build brand loyalty and trust. ers fly an airline if it is recommended by All major social networking websites a friend, according to MindShift data. Frelike Linkedin, Twitter, Facebook and Youquent flyers such as Delhi-based marketing Tube have their own unique features. For executive Bloomy Jha agree, “My friends the airline industry, Twitter plays a vital often rely on me for recommendations role in customer relations and engagement since I fly regularly for work. So, I began while customers are at the airport as well as actively sharing my feedback on airlines on offer specific deals to targeted users. Simimy Facebook and Twitter pages.”

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What about Wego’s tie-ups with Indian travel players? Wego currently works with all the major travel players in the Indian market from OTAs, large hotel chains and airlines. The India user base has also increased extensively over the last year which is a clear indicator that Wego’s metasearch capabilities are being embraced in the country. Cruising Heights July 2013

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Amadeus ties up with SAS Amadeus, Technology partner for the global travel industry, has announced a long-term, strategic partnership with Scandinavian Airlines (SAS), the flag carrier of Denmark, Norway and Sweden. Scandinavian and Wideroe will become the launch partners for Amadeus’ next generation Altéa Revenue Management solution, now incorporating full origin and destination management capability. The airlines will migrate from their in-house Origin and Destination Revenue Management System (ODRMS) to Amadeus’ new solution by early 2015, joining the eight airlines which already benefit from Amadeus’ integrated revenue management and passenger services system.

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Airbus unveils RFID ‘Bag2Go’ Airbus has come up with a prototype ‘smart’ bag featuring an RFID chip that allows passengers to track their luggage during their journey, and could eliminate the risk of mishandled baggage for good. The company calls is calling it “The reinvention of baggage”. RFID technology enables the ‘Bag2Go’ to be recognised by automated airport and airline baggage systems that connect the bag with a passenger’s specific flight itinerary, and in cooperation with mobile technology and other location-based technologies such as GPS, can track the luggage along its journey. The bag’s accompanying iPhone app’s ‘Find My Bag’

feature allows passengers to check whether their bag has made it onto their flight, and trace its location.

Galileo partners with Matrix

Wego’s Travel Audience

Engagement Platform In an industry first, travel search engine Wego.com rolled out its new Audience Engagement Platform during the recent Ad Trading Summit in Singapore, extending its programmatic advertising technology stack to deliver more targeted inventory online. Connecting with the real-time bidding ecosystem, Wego is enabling advertisers to select users shopping for travel by country of origin and destination, following their content journeys onsite and re-targeting them off-site. Rick Mulia, Vice President, Media and Advertising Solutions, said: “Clients want more targeted buys, with

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better ROIs and less waste. Wego’s new Audience Engagement Platform, designed to follow people, not places, plays to Wego’s strengths and provides a quality audience with high travel intent. We know it will perform.” Hotel chains, for example, focussed on travellers searching specific destinations can extend their campaigns to sequence marketing messages to those individuals outside of the Wego network.

InterGlobe Technology Quotient (ITQ), a strategic business unit of InterGlobe Enterprises has announced Travelport Galileo’s partnership with MATRIX Cellular that offers the travel agents the ease of booking International SIM’s for its customers. The partnership allows, Travelport Galileo to integrate a direct access to Matrix SIM’s for the accessibility of the travel agents. Sandeep Dwivedi, Chief Commercial Officer, InterGlobe Technology Quotient said, “The successful integration of Matrix application on Travelport Galileo’s blue screen will facilitate a seamless booking process for travel agents.”

HotelTravel.com, eRevMax Channel Ecosystem connect HotelTravel.com, a part of MakeMyTrip Limited, has integrated with eRevMax, a provider of hotel online distribution solutions, to further expand connectivity options available to its fast growing portfolio of hotel partners. The

company underwent a two-way XML interface certification with RateTiger and Connect SaaS services to become part of the eRevMax Channel Ecosystem. This will provide HotelTravel.com direct connection to the leading hotel PMS and CRS thereby enhancing its product proposition to potential hotel clients. Accommodation providers will now be able to make imme-

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diate ARI updates and receive bookings generated on HotelTravel.com through eRevMax solutions directly into their property management systems. Neil D’Souza, COO, HotelTravel. com, said: “This integration will help our hotel partners to further reduce their time to market while automating booking delivery directly into their PMS. ”

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guruâ&#x20AC;&#x2122;s advice Emirates Skycargoâ&#x20AC;&#x2122;s iconic former Senior Vice President and air cargo visionary, Ram Menen, counsels patience and nerves of steel to weather the present storm

AirAsia readies for cargo

Express industry blames carriers

Courier services from AI

Carrier is looking at Surat as cargo hub

Cartelisation complaint is being examined by CCI

Maharaja is keen to service PSUs and corporate

Last in/first out

Partnerships must to drive cargo

TRENDS

Drones are being used extensively by the military to spy and transport and drop bombs. But now, they have found a place in the transporter’s list for moving goods from one place to another. According to reports, drones can be bought for $500 to $1,000 today. Chris Anderson, who started the online community DIY Drones and co-founded 3D Robotics, has pointed out that around 1,000 new personal drones take to the sky every month. In an article, Anderson says that like the 1970s saw the birth and rise of the personal computer, the present decade will see the rise of the personal drone. Stakeholders in the air cargo industry believe that drones could change the whole scenario. They will be used to deliver packages in difficult-to-reach areas like our very own North East or in densely populated areas where it is problematic to reach by road because of the heavy traffic. Perhaps, it will take a while to be adopted to India but when it does come, it could usher in a whole new world of logistics and truly transform the way we transport goods.

he International Air Transport Association (IATA) has called for strong partnerships to promote air cargo competitiveness through e-commerce technology. “An electronic revolution is transforming logistics and transport, creating a fundamental change in the security, safety, efficiency and reliability of air freight,” said Des Vertannes, IATA’s Global Head of Cargo at the recent IATA e-cargo conference held in Geneva in the middle of June. “The conference has undoubtedly put e-cargo at the forefront of industry thinking. Now we need to drive action through strong partnerships across issues such as e-customs, advanced electronic information, the digitisation of transport documents, e-cargo security, and e-Air Waybill (e-AWB) implementation. In that regard the presence of FIATA’s Director General Marco Sorgetti to chair the opening plenary was most welcome. Air cargo demand has been stagnant for several years and the cooperation of the entire air cargo value chain to push forward key objectives such as e-freight is essential for the future health of this industry,” said Vertannes. Total annual freight tonnes carried have grown by just 1.4 million tonnes since 2010, and IATA’s forecast for the air transport industry estimates cargo growth of only 1.5 per cent in 2013. Yields are expected to fall 2.0 per cent and total

cargo revenues will be $62 billion — $4 billion down on 2010. “Air cargo remains in a tough trading environment as load factors fall and costs, especially fuel, stay high. So it is vital that the industry work together to facilitate the introduction of new processes and technology such as e-cargo, in order to improve competitiveness and boost demand,” said Vertannes. The centerpiece of IATA’s e-cargo programme is the e-freight initiative. E-freight offers the opportunity to improve shipment times by up to 24 hours, and remove 7,800 tonnes of paper documents annually. The efficiency and reliability of shipments will increase as multiple data entry is removed. And regulatory authorities seeking greater security oversight of air freight will also benefit from swifter and more accurate access to electronic information on shipments. The key enabler of e-freight is the e-AWB. E-AWB penetration stands at 9 per cent against IATA’s year-end target of 20 per cent. In March IATA and FIATA announced the multilateral e-AWB which enables freight forwarders and airlines to sign a single e-AWB agreement, leading to e-AWB shipments across multiple routes and providers. This is expected to greatly accelerate e-AWB uptake in the second half of 2013.

“In the coming years we all need to do more with less and make far better use of not only of what exists today but carefully map where we invest in the future”

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Patrick Murray

Head of Calogi Worldwide Cargo Distribution

Now, courier services from Air India

ir India, India’s national carrier, is trying to claw back into reckoning. Burdened with debts and on life-saving financial injections from the government, the carrier wound up its cargo business around the beginning of last year but is now thinking of getting into the courier business. In a move that was supposed to bring down the losses, the Maharaja put up its half dozen Boeing 737-200 freighters for sale. The planes were all from Indian Airlines (today known as Air India-Domestic) and had been converted to freighters when the blueprint was drawn up to launch cargo services using the Nagpur airport as a cargo hub.

The reason for the sale of the Boeing freighters was that they were too big for domestic operations and too small for international operations. Perhaps, what was more important was that Air India did not have a distribution network, warehouses, and the necessary paraphernalia to run a proper air cargo business. The idea to start courier services — primarily for the government (at Delhi) and the state governments (there are 28 states and seven union territories that are governed by the government in Delhi) and big corporate houses — is aimed to boost the carrier’s Cruising Heights July 2013

financial position. The Air India management which did not think about its reach when it closed down the cargo services has now realised that the carrier has the widest reach in the country: 65 destinations. An official said that the carrier was looking at “optimally utilising our surplus capacity and manpower to commence courier services for central and state governments, public sector enterprises and big corporate houses”. The services are supposed to start sometime in the second half of the year and a new division within Air India will be responsible for the courier business.

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Air cargo, a la Ram Menen An icon of the air cargo industry, former Emirates Skycargo Chief Ram Menen hung up his boots at the beginning of June this year after almost 40-odd years in the business. From his unique perspective — now that he is no longer connected to the industry — Ram Menen, the air cargo guru, had a few words of advice on how to ride out the storm that envelopes the air cargo sector today

am Menen. As head of Emirates Skycargo — he was with the airline from 1985 with stalwarts like Maurice Flanagan and Tim Clark, when it was launched — Menen took the division to heights he would probably never have imagined. If Emirates is today the world’s largest cargo carrier, the credit should go to Ram, although he never acknowledges it emphasising all the while that it would not have been possible without the help of everyone in the carrier. Ask him and his answer is: “It’s a collective team effort that has made Emirates what it is.” More than Emirates, Menen’s work for air cargo will be remembered for two sets of reasons: one for Emirates and the other for the air cargo industry at large. Menen often said that “Emirates catalysed the growth of Dubai. “ Indeed, over

ten been hailed. He was a founding memthe years and with active support from ber of The International Air Cargo AssociaEmirates, Dubai developed into the most tion (TIACA) and was President and prominent air cargo hub not merely Chairman of its board in 1995of the region but of the world. TIACA, he rememNot many know that Menen, Menen’s work 1996. bered, brought all walks of an engineer, was responfor air cargo will the industry together. Air sible for developing the LD-36 unit load device. be remembered for cargo was one industry When Emirates ordered two reasons: one for and it was important to all into one body, the first A310, one of the Emirates and the oth- bring and that is what he did. problems it faced was er for the air cargo The process is still on loading the ULDs that today. Ram Menen was inhad been designed for the industry at ducted into TIACA’s Hall of B747. Since the A310’s belly large Fame in 2005 for championing was smaller, a new one had to the cause of international air cargo be made. Menen got an ULD manuliberalisation and his drive for improved facturer and got him to craft one. Though technology. no other airline used these ULDs for 10 He was also active with IATA. He was years, Menen stuck on. chairman of the Cargo Committee from His efforts to bring the stakeholders of 2008 to 2011 — the years of recession — the air cargo industry to one table have of-

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cargo that provided him an insight into the airfreight industry. A couple of months ago when was in Delhi, he promised that he would talk at length when he retired. He did. On the first day of his “new life in uncharted territory”, he spoke about the air cargo industry, globalisation, India and much more to Tirthankar Ghosh. Excerpts:

As you look back on the 40-odd years in the industry, what are the thoughts that you will carry back with you?

We have seen tremendous changes. The entire relationship between the various stakeholders in the industry has changed, the outlook has changed, supply chain management has emerged and is evolving day by day where all these industries of ocean carriers, freight forwarders, the airlines — they tended to be an industry of their own. They are much more aligned now and they realize that they are the peas of the same pod and with different expertise. So that is probably the major change that has happened. I think globalisation in itself has driven more awareness of the way supply chains and stakeholders are aligned. Globalisation in itself has created awareness about who the stakeholders are in the cargo business and the alignment is more of a dialogue between all the entities within the supply chain. To be very honest, efreight in itself is turning the world into the e-commerce era and that in itself is going to be a major change as we go forward and where we will have better cost efficiency and bring more cost efficiency into the chain. Once you

have better cost efficiency it will automatically make air cargo more attractive to the shippers.

You are leaving at a very crucial juncture: the air cargo sector is perhaps at its lowest. What is the advice that you would like to give to aircargo stakeholders?

Well these are all cyclical and especially this time around more than cyclical, evolutionary changes are also happening. This is not the first time that we are seeing low cycles and this is not the last time we are going to see these low cycles. Air cargo has great dependency on world commerce and world economy. So, we are in it for the long term. It’s a question of just managing the downturns and it all depends on how good and lean and mean you are during the good times to be able to weather the storm when you are on the downside. This time around we are also seeing the down cycles and up cycles at very short intervals, purely because the old rules don’t apply and the new rules are not written. The old fundamentals don’t apply and we are still trying to understand the new fundamentals. The world economy has

taken a beating and a major beating at that. So, it’s a question of just trying to understand what that beating has actually turned to. And, once we have a basic understanding of it then we will be able to better manage the cycles. What we are seeing is a temporary aberration hopefully and as we go forward, air cargo will pick up. Time has become a very, very important part of anything that we do and there is an acceleration of evolutionary functions. It will come back but it’s a question of holding our nerves and riding this storm. What we are seeing is a completely new set of fundamentals developing and we are now trying to understand that. The fact remains that one of the reasons that the world economy is slow to pick up is that the oil prices are unusually high and as long as they remain at that point, it is going to create pressures on the world economy. Transportation is the major cost within any household — so disposable income has been greatly affected. My own feeling is unless oil prices come down to around $50-70, which is also on the higher side but affordable, the consumer market will continue to be affected.

I remember you told me quite a few years ago that Dubai is the centre of the world. The manner in which the carriers from the Gulf are going, your words are indeed coming true. Do you believe that the pendulum has completed its final swing and the Gulf will be the epicenter of airlines, aircargo? It is, it is. In fact, if you look at the world map in itself, it is pretty much on the crossroads and I’m not talking about just Dubai. If you look straight up, we are perfectly placed between the factories in Asia and the consumers in the west. And also don’t forget one of the reasons why it’s also been coming up so quickly is that Africa, the next frontier, is also galvanising. On top of that the greatest power of geo-centricity is that, within eight hours of flying distance, you have about 5.8 billion people; of which 2/3rds are in East Europe and 2/3rds in

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What is so special about the cargo carriers from the Gulf that they continue to do well while the others from South East Asia and Europe have been faltering? Well, if you look at the economy in itself, the Middle Eastern economies are doing pretty well. Africa is also galvanising I said and India has been fairly good. We are fairly well-balanced because of geo-centricity and plus, don’t forget the Middle Eastern carriers don’t have any legacy-based challenges that they have to deal with. They tend to be a lot more flexible… they don’t have the baggage that some of the more established carriers carry.

Do you believe that the three big airlines in the Middle East — Emirates, Etihad and Qatar — will continue to grow?

I think they will continue to grow. I mean there is room for the three airlines and there is plenty of room for their growth purely because of what I had mentioned earlier. We have got about 5.8 billion people around us and then there is this central path between the manufacturing bases of Asia and the consumers in the West as well as the developing nations in Africa. So there’s a huge potential and because air cargo will be very critical to any commerce because of the time required. Time has become a very important part of any supply chain operation especially where product cycles are getting shorter and product values tend to decline you know by the week. So air cargo will be a high growth thing and I don’t see why we won’t see these three carriers continuing to grow. Anybody else who’s deployed here will also benefit from that geocentricity.

There has been talk that Emirates has government support…

I don’t agree with that at all. Being in Emirates for almost 28 years, I can tell you that everyone else is allowed. Emirates, after the initial seed money… there has been absolutely no kind of facilities or no

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guarantees. Emirates actually stands on its own feet and whatever you have seen has been developed from that initial $10 million of investment and it has also paid back almost $2 million in dividends. Look at what is happening with other airlines. They are all allowed to operate here but we are denied access in most of the other places. That itself is a clear demonstration that there is no protectionalism efforts where Dubai is concerned. Our life would have been a lot easier (if the government would have been there at every step). Look, Lufthansa for years and years has had its largest cargo bays outside of Frankfurt in Sharjah. And they’ve been hubbing cargo into Sharjah and operating out of there.

Let’s take a look at the emerging markets and India in particular. How do you see business from India in the coming years?

There has often been talk that the freighter business is in its last stages. Do you think so?

Do you think that Indian air cargo entrepreneurs — those who could have started international services — have missed the bus?

I don’t think freighters will die as such but there will be pressures on the maindeck operations…The full cargo operators will suffer a lot because where you are able to truck or have an established road/rail service, they will not have loads. But the moment you go outside of that, you have challenges because of the costs.

What do you think are the biggest impediments in the growth of aircargo? Is it the rules and regulations or is it protectionism that is practiced by countries to help the national airlines?

If I were to just pick a few impediments… costs are a huge issue. On top of that you still have regulations. The various players within the air cargo industry: they are aligning but not fully aligned as yet. Security is another issue we tend to have challenges with.

You have been associated with Global Air Cargo Advisory Group (GACAG). What expectations do you have from the group to further the cause of aircargo?

All the industry now is very much aligned and speaking in a common voice and that is very powerful. Regulators tend to listen to one view coming from the industry. That helps them to create new systems, procedures and regulations, etc.

At this stage I am really going to chill, wind down, go from eighteen hours a day to a more leisurely time. This is uncharted territory for me and uncharted territory is where I am most comfortable.I will find something that will really be more interesting outside of the cargo industry...

Cruising Heights July 2013

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India and China, the fastest growing economies in the world. It is a very powerful proposition and that’s one of the reasons why I have always said that the centre of gravity has shifted.

India has done for Emirates pretty well. The Indian market is good. India has benefitted from some of the trade wars going on between China and America but India’s advantage is also now shifting from being a services base to a manufacturing base. There are more and more high-tech industries developing. These are very positive signs and India also has the advantage of having a very large domestic consumer base — rather a large growing domestic population base which is now strengthened as the economy strengthens. The buying power also increases. India is a great place today.

The way it is all structured, I think there are a lot of challenges. The internal domestic rules and regulations are also hurdles for Indians. The cost of operations…the fuel prices are now becoming to be the largest cost within any airline operations that is a killer. On top of that once people like Walmart and some of the other larger chains come in to India, that will then give Indian air cargo industry a lot more boost. In the meantime what is also happening is that the aviation industry is still in doldrums purely because it is a very lowyielding market. There has got to be a lot of reforms that have to go on before India really galvanises in this area.

A personal and last question: For a hyperactive man like you, how do you intend to spend time? Is there a book, consultancy, etc in the offing?

Today actually is the first day of my new life. A book may come at some stage in the future but at this stage I am really going to chill, wind down, go from eighteen hours a day to a more leisurely time. Get to know my family and friends; I haven’t had much of a contact during the last several years. I want to just go and do something completely different. If you ask me what, I don’t know. This is uncharted territory for me and uncharted territory is where I am most comfortable. I will find something that will really be more interesting outside of the cargo industry at the moment. We’ve been travelling a lot meeting friends. I haven’t even gone back to the place I really grew up in which is Bhopal, since 1975. So those are the places I want to go and visit again. n

cargo

AirAsia’s got Surat on its mind AirAsia India is going hammer and tongs to rig its infrastructure before it starts operations and Surat in Gujarat could well become its cargo hub. A report

cheers all around: Sathis Manoharen, Regional Head of Cargo of AirAsia and AirAsia X receiving the award from ACW representatives

ll eyes are on AirAsia India — the Tony Fernandes-led Indian version of AirAsia — to start flying. However, even before the Chennai-headquartered carrier takes wing, it has started looking seriously at its cargo business and on top of the agenda is the establishment of a cargo hub. In a move that many in the cargo trade have termed unusual, AirAsia zeroed in on the Gujarat port city of Surat and have taken a look at the airport and its facilities. An AirAsia India source was quoted in a national daily that “we foresee a good future of Surat Airport and it could be developed into a major cargo and parking hub for national and international aircraft with few modifications”. The airport that services Air India and low-cost carrier SpiceJet’s flights is spread out over 413 acres and has place for parking eight planes. According to sources in Airports Authority of India (AAI) which manages the airport, if a freight hub is set up, the number of parked aircraft that can be accommodated could go up significantly. In fact, at one point of time, the AAI had decided to enhance infrastructure at Surat Airport to function as an aircargo hub. The decision, however, remained on paper. Now with AirAsia expressing interest in the airport, industry stakeholders are optimistic. While Sathis Manoharen, Regional Head of Cargo of AirAsia and AirAsia X, replied to queries on email with “We

will not be commenting on AirAsia India until an appropriate time in the future,” the move by AirAsia is well thought out. The carrier has got the south of India well covered: it added three additional flights to Tiruchirapalli or Trichy in Tamil Nadu state (Chennai, the capital of Tamil Nadu is around 315-km away) from May 26 taking the number to 14 a week. The airline had, in fact, launched its India services with a flight to Trichy way back in December 2008 and it has services to Chennai, Kochi and Bengaluru. According to Kathleen Tan, AirAsia Group Commercial Regional Head, “Tiruchirapalli is a popular destination for Hindus in Malaysia as it has abundant temples which make it a pilgrimage site for Hindus…there was an increase in visitors from Trichy who were using Kuala Lumpur as a connecting gateway to over 130 routes in South East Asia and beyond”. Tiruchirapalli has been doing very well. Tonnages have climbed steadily and AAI, the airport operator, expects more than 50 per cent growth during the current financial year. Cargo exports had seen 44 per cent growth in 2012-13: 2,920 tonnes were handled in 2012-13 in comparison to 2,022 tonnes recorded in the previous financial year. Over the last year or so, the uplift capacity has increased with the airport seeing a number of carriers: Tiger Airways, Sri Lankan Airlines, Air Asia, and Mihin Lanka. The cargo comprises readymade garments, fabrics, leather Cruising Heights July 2013

goods, pharma products, seafood and vegetables. Most of the consignments were for Kuwait, Dubai, Colombo, Singapore and Kuala Lumpur. Incidentally, according to the freight forwarding community, Europe and US remained untouched. Surat, barely 263-km from Mumbai, is all set to become the largest city of Gujarat by 2020. A port city, it is well-known the world over for its diamond polishing industry (90 per cent of the world’s total rough diamond cutting and polishing), textiles (18 per cent of India’s total manmade fibre exports) and lately for diamond-studded gold jewellery. With the rise in the number of flights from the city, AAI decided recently to set up a strong room at the airport that will allow diamantaires to receive and send diamonds and jewellery directly from the airport. Sometime ago, the Gems and Jewellery Export Promotion Council (GJEPC) sent out requests to the government to enhance air connectivity between Surat and metro cities in the country and abroad for direct export of diamonds. According to sources in the city’s diamond bourse, the city’s polishing industry imports rough diamonds worth `50,000 crore ($8817 mn) and exports polished diamonds totalling `75,000 crore ($13223 mn) per year through Mumbai. Both kinds of stones are sent through a trusted courier service — the angadias — because there is lack of air connectivity. This is one opportuntiry that AirAsia India could be looking at. Bowing to demands from the people of Surat and the trade bodies, air carriers have started taking an interest in the city. The country’s top passenger carrier, IndiGo, has decided to start operations from the city. Passenger traffic too has increased by leaps and bounds: there has been a 25 per cent rise in passengers travelling in April 2013, in comparison to the same month last year. n

Guilty of cartelisation, allege EICI Pointing a finger at domestic airlines for hiking fuel surcharges, the Express majors take their case to the Competition Commission of India. A report

TAKING A BREATHER: A Jet Airways being re-fuelled at one of the Indian airports

assume that the action “had been taken in concert”. Kumar had cited an example: on November 19, 2012, domestic airlines had increased the FSC on cargo by `per kg in spite of a marked drop in ATF prices. The COO had said that the FSC had been designed to “mitigate the fuel price volatility”. Instead, it had been used, he alleged, as a pricing tool “to harm the interests of express companies, freight forwarders and ultimately the end user”. He also mentioned that the world over, fuel surcharges were benchmarked to an index to ensure that carriers do not charge more when ATF prices went up. At the same time, fuel surcharge was reduced when prices went down. The EICI complaint said that though airlines purchased ATF from the oil marketing companies at different prices, fuel surcharges on cargo operators were levied at a uniform rate. According to the EICI, the carriers had levied a charge of `5 per kg as FSC on May 15, 2008 without justifying why they did so. The FSC was revised by 15 per cent by the airlines in November 2012, when a fall in fuel prices was seen. In May 2008, when FSC was first introduced, fuel price was `69227 per kilolitre and FSC charged by the airlines was `5 per kg. During the recent hike, “again acting in concert, on November 19, the fuel price was `68397 and the FSC charged was `15 per kg”, the EICI COO said. The express majors said that the average cost Cruising Heights July 2013

h c tiwari

he raging battle between express majors — and that includes the likes of multinationals like FedEx, Gati, Blue Dart DTDC, Aramex India, and First Flight — and domestic air carriers has gone to the Competition Commission of India (CCI). The cause of the battle is the allegation by the express majors, under the banner of the Mumbai-based Express Industry Council of India (EICI), that the domestic airlines — Jet Airways, SpiceJet, Air India, GoAir and IndiGo — had formed a cartel that was aimed at levying a uniform fuel surcharge on air cargo. The cartelization imbroglio began sometime in the beginning of this year when EICI, the apex industry body of express companies, wrote to the CCI and Civil Aviation Minister Ajit Singh seeking help in the matter. According to a report in a business daily, the CCI had received the complaint against, according to a source, “five airline operators, alleging there is a concerted effort by them to levy a uniform rate of fuel surcharge on air cargo, often on the same day”. This was affecting the services of cargo companies and their consumers, the report said. The CCI would want the views of the carriers before deciding on the next course of action. If the commission finds substance in the allegations by EICI, it would ask its Director General (Investigation) to find out the truth. The Competition Act, 2002, says that a cartel exists when two or more enterprises enter into an explicit or implicit agreement to fix prices. According to the EICI, the last four years have seen a hike in Fuel Surcharge (FSC). However, that has not been in tune with the Air Turbine Fuel (ATF) prices. Vijay Kumar, Chief Operating Officer, EICI, had mentioned way back in January that it was surprising that all the airlines had chosen to increase the FSC by the same amount around the same time. This move had led the EICI to

for freight between Mumbai and New Delhi was `7 per kg. Adding FSC and other fixed costs to it sent the price up to `28 per kg. Anil Khanna, Managing Director of Blue Dart Express had also mentioned that the airlines had increased the fuel surcharge by 70 per cent in 2011 when the price of crude oil was low. At that time, the airlines increased the FSC and since the charges were not explained, it was difficult for the express companies to convince the consumers. The EICI’s allegation received a boost when the Consumer Unity and Trust Society (CUTS) — a registered, recognised, non-partisan, non-profit and non-governmental organisation pursuing social justice and economic equity within and across borders — filed a preliminary information report regarding air cargo cartels affecting Indian consumers with “a request for suo moto action”. CUTS highlighted the allegedly anticompetitive cartels formed by domestic airlines but also pointed out that international carriers did so as well. These carriers were overcharging cargo freight, in the garb of fuel surcharge and that adversely affected Indian consumers, hampering the economic development of the country. Therefore, said CUTS Secretary General Pradeep S Mehta, “such activities needed to be investigated by the Competition Commission of India (CCI)”. n

cargo jottings Tiruchi gains in cargo exports

Tiruchi Airport is witnessing robust growth in cargo exports. According to sources, the air cargo terminal at the airport registered a high of 410 tonnes of cargo during May with vegetables and fruits accounting for the major portion of exports.

“The university does not only provide quality education to its young students but also believes in making them technology savvy to prepare them for global challenges. Buying behaviour of the youth today is undergoing significant changes and lots of purchases are being made online. The Blue Dart retail Countercum-Service centre will be of great convenience to our students who will now have access to send and get shipments globally and at attractive rates through ‘Student Express’ and other innovative solutions,” said Rashmi Mittal, Pro-Chancellor, Lovely Professional University.

DHL discusses key supply chain issues

garnering numbers: An outside view of Tiruchi Airport

S Dharmaraj, Airport Director, Tiruchi Airport was quoted saying, “We expect to handle a minimum of 4,500 tonnes during the current fiscal. Sri Lankan Airlines, Air Asia, and Mihin Lanka, were the other carriers lifting cargo from here. With Air Asia expected to introduce a third daily frequency on the TiruchiKuala Lumpur sector from July, the uplift capacity would increase further.” In March 2013, the air cargo terminal had managed 395 tonnes. In fact, the previous high was 313 tonnes handled in January, 2013. Cargo exports from the airport had touched 44 per cent growth in 2012-13 and this year the growth is projected to be more than 50 per cent.

DHL Supply Chain recently concluded a successful customer event, ‘Unlocking Supply Chain in Healthcare and Life Science Logistics’ in Mumbai. The event deliberated on relevant topics related to challenges and opportunities in the overall supply chain in the pharmaceutical industry. These included distribution and channel management, benefits of collaborated and integrated supply chains, current regulatory issues facing the life sciences and healthcare sector along with new insights and opportunities for clinical research in India.

Blue Dart strengthens operations

Blue Dart recently unveiled a Counter-cum-Service Centre near Phagwara, Punjab. The Counter-cum-Service Centre, located in the commercial mall within the campus of Lovely Professional University (LPU), was inaugurated by Sukhwinder Singh-Regional Head (North), Blue Dart Express Ltd and Rashmi Mittal, ProChancellor, Lovely Professional University. Speaking on the launch of the Counter-cum-Service Centre, Sukhwinder Singh, Regional Head-North, Blue Dart Express Ltd said, “Phagwara has been witnessing significant growth due to its emergence as a manufacturing hub. World-class institutes such as LPU and other developing institutes setting up base here have only given an additional fillip to the growth curve of the city. The launch of this service centre marks our commitment towards partnering this city in its growth and more specifically offering a better service experience to the students of LPU.”

BEAUTIFUL EDIFICE: Sukhwinder Singh, Regional Head-North, Blue Dart Express along with Rashmi Mittal, Pro Vice-Chancellor, LPU inaugurating the Counter-cum-Service Centre

deliberating issues: Prakash Rochlani, VP-Business Development, South and South East Asia, DHL Supply Chain giving presentation on key cargo issues

Prakash Rochlani, Vice President-Business Development, South and South East Asia, DHL Supply Chain said, “Targeting the life sciences and healthcare industry, this event provided an ideal opportunity for collaboration, discussion and networking between sector experts and the pharmaceutical industry. To stay ahead in today’s dynamic environment it is paramount to understand the industry’s issues and challenges, skillfully adapt and respond with increasing flexibility to changes and embrace new trends.” He further added, “At DHL, we work closely with our customers to ensure that we offer a comprehensive range of services across the entire supply chain, from initial consultancy and design, to the last mile delivery along with reverse logistics.” To invest €140 million to enhance its supply chain business: DHL Supply Chain shared its planned investment for its business in South East Asia to the tune of €140 million by 2015. The bulk of the investments will go towards investing in new facilities, advanced IT solutions, expansion in transportation and bolstering staff strength and training. These investments will further enhance DHL Supply Chain's market-leading position across the key consumer, retail, automotive, technology industries and grow its business in emerging sectors. “We plan to double our size in the next two to three years. We're already off to a strong start – by the end of 2013, we will have opened seven best-in-class multi-user facilities across strategic locations in South East Asia,” said Oscar de Bok, DHL Supply Chain CEO for South and Southeast Asia. “These investments in quality, facilities, transport capabilities, IT and people are necessary to meet the needs of our customers in the region.”

Cruising Heights July 2013

XL Airways awards major ULD contract

XL Airways and CHEP Aerospace Solutions recently entered into a pact for a ULD supply and management agreement, which includes a transition to fuel-saving composite containers. CHEP Aerospace Solutions will manage, maintain and repair the ULD fleet of XL Airways France during the three-year term of the agreement and will also supply new lightweight composite containers for the airline's fleet of widebody aircraft. XL Airways’ VP Operations, Pierre Madrange said, “CHEP Aerospace Solutions purchased our stock of aluminium ULDs and will transition our container fleet to lightweight units in the first few months of our partnership. In addition to the financial benefits of this initial transaction we will also save money on operational costs and reduce our carbon emissions during the entire term of our partnership. The flexibility of being able to adjust ULD stock levels on a monthly basis to meet operational requirements, as well as the fuel and CO2 savings that will be generated by the new lightweight containers, were key factors in our decision to outsource to CHEP.”

FedEx unveils Global Citizenship Report

FedEx recently brought out its fifth annual Global Citizenship Report, outlining the company’s efforts in its focus areas of economics and access, environment and efficiency, community and disaster relief, and people and workplace. The release of the fifth annual FedEx Global Citizenship Report coincided with World Environment Day. Highlights from this year’s report included: significant savings from sustainability efforts, including fuel and energy cost savings and materials recycling revenues; successful

sensetising masses: Kids staging drama on pedestrian safety on the occasion of UN Global Road Safety Week

achievement of the FedEx Express goal to improve the overall fuel efficiency of its vehicle fleet by 20 per cent by 2020, years ahead of schedule; and continued support for disaster relief and preparedness organisations. Invites Mumbai to donate packaged drinking water to droughtaffected villages in Maharashtra: FedEx Express in association with the Times Foundation, recently launched the ‘Donate Water’ initiative in Mumbai. This charitable initiative asked Mumbai residents to donate packaged drinking water on May 24 and May 25. FedEx will transport the collected water using the company’s ground delivery service to four drought-affected villages in the Nasik district: Ambepada, Suktale, Tapupada and Mastemani. FedEx and the Times Foundation will run the collection drive at designated places in Mumbai. The water bottles can be donated at any one of the seven FedEx retail outlets or the two Times of India Response Centres or at the Phoenix Mills Mall, Lower Parel. “The drought situation in Maharashtra requires a rapid response. FedEx can bring the much-needed relief to some of the villages in the affected area,” said David Canavan, Vice President, Domestic Operations and Integration, FedEx Express Europe, Middle East, Indian Subcontinent and Africa. “FedEx employees across India will also donate a part of their salaries to this initiative. The money will be used to buy packaged drinking water on behalf of the employees with the amount collected. The ‘Donate Water’ initiative is our attempt to deliver hope to the communities we live in.”

A quest for creative aircraft names

Lufthansa Cargo recently launched a contest for ideas on naming aircraft in its fleet. From autumn 2013, all the aircraft in the fleet of the Lufthansa subsidiary will be named as well, but in a very special way. In an open and international competition, the cargo carrier is inviting people across the globe to suggest an aircraft naming suiting their own personal preference. “Whatever their choice be it the name of a country, of a mountain range or of famous artists — let fantasy fly,” said Captain Claus Richter, Vice President Transport Management and Flight Operations at Lufthansa Cargo. The naming ceremony for a first aircraft in the fleet will be held at the end of October, when Lufthansa Cargo takes delivery of the first of five brand-new Boeing 777 freighters. All the other freighters joining the fleet as well as the existing MD-11Fs will be named, subsequently, and then fly the world as special ambassadors with a freshly painted name on their fuselage.

One more in the kitty

awards

CALLING the SHOTS: Pradeep Kumar, Emirates Senior VP-Cargo Revenue Optimisation and Systems received the ‘Cargo Airline of the Year 2013’ award

Emirates SkyCargo once again emerged as a leading global player in air cargo industry by winning the ‘Cargo Airline of the Year 2013’ award at the Air Cargo Week World Air Cargo Awards. “Winning the Cargo Airline of the Year award highlights Emirates SkyCargo dedication to customer service and quality,” said Pradeep Kumar, Emirates Senior Vice President Cargo Revenue Optimisation and Systems. “Receiving this award is something that I share with our entire Emirates SkyCargo team whose hard work and commitment make all of our success possible.” Earlier this year, the freight division of Emirates significantly boosted its cargo capacity with the addition of three new Boeing 777F aircraft, taking its freighter fleet to 10 aircraft and its dedicated freighter network to 13 destinations. These are Taipei, Chittagong, Eldoret, Lilongwe, Chicago, Almaty, Gothenburg, Zaragoza, Viracopos, Tripoli, Djibouti, Hanoi and Liege.

Cruising Heights July 2013

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The last ride

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Two Middle Eastern women landed themselves in big soup after supposedly making a provocative statement, according to a fellow passenger. The passenger heard one of them saying, “Taking down America”. The passenger informed the Flight Attendant about the statement who was sitting beside her. The two women were taken into custody by the Joint Terrorism Task Force and Port Authority Emergency Service cops, New York, US. Later on, they were released without being charged.

A peanut allergy proved disastrous for a woman who was travelling in an United Airlines flight. Alisa Gleason had been assured by the airlines that she wouldn't have a problem. But the promise fell flat on its face as the poor lady caught the allergy from one of the fellow passenger who was eating peanuts — almost choking her into death. “I was just sitting in my seat, and then all of a sudden the air basically around me went away. I just stopped breathing,” Alisa Gleason said after a woman sitting four rows away from her began eating peanuts thereby causing severe peanut allergy to her.

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What you have done!

Poor ladies

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Dog therapy

Now, if you think that finding a flight attendant’s job is easy, think again. A flight attendant could not get a job as she sported a traditional tattoo which irked the interviewer so much that she was singled out and ultimately asked to go away. “I thought that they would be quite proud to have someone with a 'ta moko' (a traditional Maori tattoo) working and representing Air New Zealand,” Maori Claire Nathan. “No, that was not the case; it was the total opposite.” Air New Zealand while clarifying the move in a statement said its passengers come from a range of cultures, and many of those cultures consider tattoos to be frightening or intimidating. “Naturally we want all of our customers to feel comfortable and happy when travelling on our services and this has been a key driver of our grooming standard which, like many other international airlines, prevents customer-facing staff from having visible tattoos,” Air New Zealand said.

The next time you visit one of the US airports, don’t be surprised to see dogs near you – wagging their tails and nuzzling you. Los Angeles International Airport has come out with a unique idea of airport therapy dog. These canines carry the slogan: ‘Pet me!’ And their main job is to be loved and petted. They act as stress busters for anxious and scared flyers. Heidi Huebner, Director of Volunteers at the airport, which launched Pets Unstressing Passengers (PUPs) in April said, “You can literally feel the stress levels drop, people start smiling, strangers start talking to each other and everybody

Cruising Heights July 2013

walks away feeling really, really good.” Wyoming-based Therapy Dogs, which certifies the canines at the Los Angeles International Airport said that dogs have to be healthy, skilled, stable and well-mannered to attract the attention of the passengers. Los Angeles’ dogs comprises a a long-haired Dalmatian, a Lab-pointer mix, a field spaniel, a poodle, three Australian Labradoodles, a Doberman and a 150-pound Irish wolfhound named Finn. The Los Angeles International Airport has 30 therapy dogs and is hoping to expand its programme.

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Buffoonish idea

This is really funny! A group of six RussianAmerican passengers were forced to disembark from San Diego to Las Vegas flight as they were speaking in their native language, Russian. The group was going to Las Vegas to meet old friends to celebrate a marriage. Sana Bitman one of the passengers who was kicked out said, “He (the steward) said, ‘This row needs to get up and leave now. It was humiliating to be treated that way’.”

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Nowhere to go

In a rather out of the ordinary incident, tobacco smugglers were detained while they were smuggling illicit cigarettes in specially adapted waistcoats on a flight from Lithuania. They were caught as fellow passengers suspected that they were wearing 'fat suits'. Sam Bullimore, Border Force Assistant Director at Leeds Bradford Airport, UK said, “This was an unusual concealment, and on the face of it quite convincing, but our expert officers are trained to

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“They were on a flight, speaking to each other... in Russian, and about five minutes before the plane took off, someone came over and kicked them off the flight,” said Attorney Daniel Petrov, brother of Sana Bitman. “We're not trying to make this a big deal because they're Russian. What we are saying is the US is a melting pot and you're not supposed to discriminate. We believe the airline did, and under California law, they're liable.”

expect the unexpected. Criminal gangs often use the proceeds of tobacco smuggling to fund other forms of serious organised crime. By stopping these shipments we are starving them of the proceeds of their criminality. Tobacco smuggling also deprives the economy of significant revenue at a time when the country can least afford it.” Officers discovered 3,800 cigarettes hidden in adapted pockets on the front and back of two waistcoats worn by the men.

Fool's paradise

A maniac on a flight was apprehended as he tried to open an emergency exit when the plane landed. FBI Spokeswoman Beth Anne Steele said, “Passengers and crew aboard the Alaska Airlines flight from Anchorage to Portland told that 23-year-old Alexander Michael Herrera made unusual statements before trying to open the plane's door.” Flight 132 was preparing to land at Portland International Airport when the Arizona man set off an alarm by pulling the door handle in the emergency-exit row, Steele said. Henry Pignataro who was on the board said that he and another man held down the passenger, and flight attendants brought three sets of shoelaces, which were used to bind Herrera's legs.

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A vote of confidence

China Airlines officials recently paid a visit to a house in Clayton County, US. The reason: the house was hit by debris falling off one of their cargo jets and the officials visited the house to express solidarity. China Airlines Station Manager Michael Tan along with other two employees visited the house. “Oh, just to apologise because we never got the chance. We had tried to stop by earlier in the week, but no one was home. China Airlines’ insurance company will send an adjuster to assess the damage to Ms. Ware's roof (the owner of the home) in few days time. China Airlines will keep Ms. Ware aware. The insurance company will handle the property loss.” While Ware said, “I was in my bedroom when the hunk of metal crashed into my home’s roof, splintering wood beams in the attic.” Cruising Heights July 2013

LIMELIGHT

Excellence in the skies One of the most prestigious accolades in the world airline industry, the Skytrax World Airline Awards, is a global benchmark of airline excellence every carrier wants to attain

he recently concluded Skytrax World Airline Awards at the Paris Air Show 2013 saw India’s largest and fastest growing airline IndiGo once again bagging the Best Low Cost Airline in Central Asia and India. Indigo has been recognised for the fourth year in a row and the only Indian airline to bag an award this year. Travellers from over 160 countries take part each year in the world’s largest airline passenger satisfaction survey, across 41 key performance indicators of airline front-line products and services, to decide the award winners. Ecstatic after receiving an award, Aditya Ghosh, President, IndiGo said, “We are humbled by this recognition as it is a testimony of the trust and faith of the flyers who have supported us since the time we started flying in 2006. I have one of the best jobs in the world that I get to come and

work each day with a phenomenal team at IndiGo. This Award is dedicated to thousands of men and women at IndiGo who push their limits every day, who ensure that we continue to offer our flyers courteous and hassle-free service, low fares coupled with the best on time performance in the country… consistently!” We take a look at some airlines that connect with India and won awards this year.

overall experience felt by customers who have travelled with the airline,” said Qatar Airways CEO Akbar Al Baker. “A notable highlight is that these accolades reflect every touch point for our premium and economy class passengers through our ground service and inflight experience and the recognition for end-to-end superior service quality is a reflection of Qatar Airways’ commitment to being a Five Star carrier in every capacity.”

Qatar Airways best in business class Qatar Airways went on to take home three honours in three different categories as the World’s Best Business Class, World’s Best Class Lounge and for the second consecutive year, Best Airline Staff Service in the Middle East. “These awards are highly rewarding as they are judiciously voted by passengers — a true account of the

Turkish Airlines best in Europe Turkish Airlines has been chosen ‘Best Airline in Europe’, ‘Best Airline in Southern Europe’ and awarded ‘Best Business Class Catering’ in 2013 Skytrax World Airline Awards. The idea of adding ‘Flying Chef’ service for Business Class passengers on its long flights, Turkish Airlines walked away with the Best Business Class

Cruising Heights July 2013

GUTS AND GLORY: (Clockwise from top left) Cathay Pacific Chief Executive John Slosar (middle) receiving the Skytrax awards; Qatar Airways CEO Akbar Al Baker receiving the award for best World's Best Business Class; Dragonair Chief Executive Officer Patrick Yeung (middle) with the Skytrax awards; Tim Clark, Emirates Chief Executive (third from left) with the Skytrax award; Malaysia Airlines won the award for 5 star airline; Temel Kotil, CEO, Turkish Airlines with Skytrax awards; and AirAsia Senior Executives with the respective Skytrax awards which the carrier won

Catering honours at Skytrax World Airline Awards 2013. It was the third time in a row that Turkish Airlines was voted as the ‘Best Airline in Europe’.

Emirates takes best in the world honours Emirates cemented its place at the Skytrax 2013 where it was awarded the highly coveted ‘World’s Best Airline’ award along with being awarded the ‘World’s Best Inflight Entertainment’ for a record ninth year in a row and ‘Best Middle East Airline’. Emirates President Tim Clarke said, “Being honoured with these awards is testament to our unrelenting effort to be the world’s best airline and we are constantly striving to offer our customers consistent, world-class service that extends from the moment they make their booking to the moment they arrive home at the end of their journey.” Dragonair is world’s best regional airline Dragonair won the accolades of being the ‘World’s Best Regional Airline’ for the third time. The feat not achieved by any carrier since the inception of this category and was also named as the ‘Best Regional Airline in Asia’ in the same survey. Airline CEO Patrick Yeung expressed his pleasure by saying, “It is a great honour to receive such recognition from travellers, and on

behalf of Dragonair, I would like to extend my heartfelt thanks to everyone who voted for us and we are extremely proud to share this achievement with the people of Hong Kong, the city that has been our home for 28 years.”

and everyone else in the Cathay Pacific team who make our award-winning service happens each and every day.” n

Malaysia Airlines’ 5-Star Certification Malaysian Airlines received its 5-star Airline Certification at the Skytrax World Airline Awards 2013. The national carrier also won ‘Best Airline Signature Dish’ for Satay, a traditional Malay dish, served in the First and Business Class cabins. Malaysia Airlines’ Group CEO Ahmad Jauhari Yahya praised his team saying, “With so much competition, even within our niche of premium full service carriers, it is an honour that Malaysia Airlines is once again recognised for its high service delivery levels and products.”

PROUD MOMENT: Aditya Ghosh, President, IndiGo with the citation of the Skytrax award. IndiGo adjudged the ‘Best Low Cost Airline in Central Asia and India’ at the Skytrax World Airline Awards 2013

Cathay Pacific: ‘World’s best Cabin Staff’ Cathay Pacific Airways marked its presence at the show when it was awarded the ‘World’s Best Cabin Staff’ and ‘Best Transpacific Airline’ honours. Cathay Pacific Chief Executive John Slosar said, “I believe that the Cathay Pacific team is the best and it is fantastic to see that our passengers see it the same way. I would certainly like to congratulate our cabin crew Cruising Heights July 2013

focus feature

India now has a global platform T K Malhotra, President of the Automobile Association of Upper India (AAUI), who was recently elected as Vice President of the Federation Internationale de lâ&#x20AC;&#x2122;Automobile (FIA), Asia Pacific Region, and a member of the World Council of Automobile Mobility and Tourism, Paris, talks about how he plans to utilise this global platform to share India's traffic and infrastructure-related problems and to benefit from the views of international experts

s Vice President of the Federation Internationale de lâ&#x20AC;&#x2122; Automobile (FIA), Asia Pacific Region, and a member of the World Council of Automobile Mobility and Tourism, Paris, I will now have a global platform to share traffic and infrastructure-related problems that we face in India and to benefit from the views of international experts. My participation in various global fora will enable me to bring values to my country to promote road safety and tourism. I was elected unanimously as a result of my nomination by the Australian Automobile Association (AAA). The honour which has come to India for the first time was bestowed on me in the FIA Annual General Assembly in Istanbul in the

presence of delegates who participated from more than 150 countries. My mission is to promote international understanding, explore mutual cooperation by exchanging expertise and benefit the Indian motoring community and tourists at the domestic and international level. We are, under UN Convention 1954, obliged to accept international motor traffic in our country by allowing tourists with their vehicles to pass land Customs stations, check posts and borders without paying Custom duties. Temporary importation of vehicles by tourists is governed under the Geneva Convention to which the Government of India is a signatory. The FIAA and its constituents like AAUI are responsible to administer the Custom documents of this propose I have plans to initiate steps to give a new definition to regional tourism in my capacity as Vice President of Asia Pacific Region II. The global leadership position has provided me a wider horizon to interact with all the Asia Pacific countries. Our International affiliates offer a variety of services to their members and have regular participation in the policies that affect motorists, tourists and road users. There are likely many areas of common interest. I would evaluate and replicate the same to benefit our countrymen and assist the civic authorities. I have been President of the AAUI since 1981 and have also served five terms as National President, Federation of Indi-

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an Automobile Associations (FIAA). I was nominated for the position of Vice President of Alliance Internationale de Tourisme (AIT), Geneva in 1993. The FIAA, during my tenure as President organised a successful World Assembly of the Alliance Internationale de Tourisme (AIT) in New Delhi in 1993. Inspite of bomb blasts that shook Maharashtra and fear of terror looming over other parts of the country, the event was highly successful and was participated by delegates representing more than 90 countries. In 1988, I pioneered a thought to establish a driving training school to impart training on the most scientific lines. The school equipped with bus/ truck and light motor vehicles imported simulators from Skoda. A scientific study on the physiological aptitude of drivers was initiated by me in 2002 using high-end simulators in which as many as 15000 drivers participated. The study was well received by the media, society, safety lovers and stakeholders. The institution is currently imparting driving skills to more than 80 drivers everyday. I also introduced an HIV/ AIDS orientation to educate truck drivers. The AAUI has a record of training more than 1, 50,000 drivers as of now. The AAUI has also established a Mini Employment Exchange to help drivers trained in its institution. The objective is to help them find suitable employment. It is also helping the industry and others who are in need of trained drivers.

Awards and honours I

FIA President Jean Todt congratulates AAUI president T.K. Malhotra on his election to the global leadership positions

In order to educate pedestrians, drivers and other road users, I had produced a weekly TV Serial ‘Road Watch’ which successfully completed telecast of more than 200 episodes on the Doordarshan National Channel. This unique effort was supported by the Ministry of Road Transport and Highways, Ministry of Railways, Petroleum Conservation and Research Association (PCRA) and many corporates. To educate motorists, pedestrians and roadusers at large, I have contributed approximately 100 weekly columns on road safety, tourism and road infrastructure, etc. These were published in the Indian Express and Hindustan Times besides my many interviews to the print media and TV channels such as: Aaj Tak. Zee TV, CNBC, Doordarshan and NDTV. The books, All you need to know

about Car and Safe Driving and All you need to know about International road signs and safe driving authored by me have been well received by tourists and roadusers. Another booklet ABC of Road Safety for Children authored by me was well received by schools and students. We have been publishing the popular magazine, The Upper India Motorist on a shoe-string budget. Launched in 1950, the magazine was aimed to make AAUI members aware about the latest trends in safe motoring and rules and regulations. At present, the AAUI has about one lakh family members that include transporters, automobile executive, law makers, bureaucrats, diplomats and media personalities. There are various special services that we provide to motorists, road users and members, compris-

External Affairs Minister Salman Khurshid (right) with AAUI president T.K. Malhotra at an event at New Delhi to felicitate the latter on his election to the World Council Automobile Mobility and Tourism

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n appreciation of his contribution, T K Malhotra has been honoured with the following recognitions: Ü Gem of India Award Ü Chief Minister’s Trophy Ü National Road Safety Award Ü National Certificate presented by Kamal Nath, Minster for Road Transport and Highways in appreciation for valuable contribution to promote road safety Ü Many Certificates in recognition of presentations in India and abroad

ing breakdown assistance, travel itinerary (road information and road maps), passport assistance (new/renewal), AA Road Atlas of India, driving training on electronic simulators, international driving permits, AA Carnet De Passages for temporary exportation of cars, legal assistance in traffic offences, pollution under control certificates, AA vehicle inspection, driver placement, road tax payment, driving license assistance, vehicle and general insurance benefits and loading and unloading of cars in case of transfer of residence. We, at the AAUI, are proud of our prestigious seven-storied building that I had conceived. Inspite of meagre financial resources, the project to house the institution was successfully completed in 1989 and inaugurated by the Late Mr Rajesh Pilot, the then Minster for Surface Transport in the presence of senior officials of the central and state governments. n

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domestic Airlines

New flights from IndiGo Going ahead with its expansion plan in the domestic skies and establishing the growing importance of these sectors, IndiGo launched seven new flights on its domestic network, covering the North, South and the West. The carrier now operates its new daily and direct flight between Mumbai and Jammu, new direct flight between Chennai and Kochi, second daily flight between Mumbai and Srinagar, second non-stop flight between Chennai and Trivandrum, second non-stop flight between Mumbai and Trivandrum, second daily non-stop flight between Jammu and Srinagar and third direct flight between Mumbai and Kochi.

Speaking on the launch of the flights, Aditya Ghosh, President, IndiGo said, “These sectors have immense potential given the number of business and leisure travellers flying in and out of these cities. We are delighted to enhance our services out of Jammu, Srinagar in the north, Mumbai in the West and Chennai, Trivandrum, Kochi in the South with the launch of these new flights and we are confident that these additional services will prove immensely popular with our flyers.”

SpiceJet flies to

First seaplane service in Kerala

connecting everywhere: A seaplane landing in the water

The first seaplane service in Kerala has been launched and four more seaplane operators are expected to launch such services by the fourth quarter of this year, connecting state cities to its extensive network of backwaters. This will allow tourists to travel from Kochi, Trivandrum, Kozhikode and Mangalore to Alleppey, Kollam, Allapuzha, Kasargode and Ernakulam. Water dromes with floating jetties have been built as well.

Dharamshala

Marking Dharamshala in Himachal Pradesh as its 46th destination in India, SpiceJet has started flying from New Delhi to Dharamshala. With this addition, SpiceJet now operates to 54 airports across its network. The airline has deployed a Bombardier Q400 aircraft on the route.

Domestic airliner Air Costa set to take off soon Air Costa, a new Andhra Pradeshbased regional domestic airline, will be launching its regional services from the state in July. The no-frills Air Costa will initially fly to Bengaluru, Chennai, Hyderabad and Vijayawada and later to some secondary cities in the north. Promoted by Vijayawada-based construction group LEPL, Air Costa will have its headquarters at Vijayawada. Captain Babu, the CEO of Air Costa, said the airline would use a fleet of Embraer E Jets and there are plans

Cruising Heights July 2013

to link under-served markets in India with more direct flights. “We have acquired two aircraft on lease while one has been purchased. We are awaiting one final licence from DGCA and would launch operations from Julyend,” Babu said. Chairman and Managing Director of Air Costa, Ramesh Lingamaneni, said that “regional air services have a lot of potential in the country. We are committed to further growth in the Indian market by increasing our fleet and starting new routes over medium term.”

international airlines

UP to start intra-state flight service

Cathay donates $2,57,824

The Uttar Pradesh government is set to start an intra-state scheduled airlines service. A proposal to this effect has been prepared by the state tourism department which is to be placed before the cabinet shortly. As per the proposal, the airlines service will connect Lucknow, Agra, Kanpur, Varanasi, Allahabad, Gorakhpur, Meerut and Sonebhadra in the first leg. As many as 15 different routes have been identified for the purpose. Sources stated the government was looking forward to flying small aircraft with a seating capacity of 20 passengers each to begin with. Once the project takes off, travel to Agra from Lucknow would take only 60 minutes (air time) while Allahabad would become closer still with a flying time of 20 minutes. In the next leg, there are plans to link Varanasi (Sarnath) with other districts in the Buddhist circuit like Kushinagar, Shravasti and Bareilly (Sankisa), to promote tourism activity. Secretary tourism, Sanjeev Saran said, "Only after the cabinet clears the proposal, can we initiate the process for turning it into a reality. A private player selected through a transparent process would operate the airlines as per the terms and conditions finalised by the government." He, however, maintained that there was immense potential for the project in the state both in terms of tourism promotion and work-related travel. "Infrastructure in UP is good. We have nine airports and 16 airstrips which can provide the necessary base for the service," said Saran.

The Cathay Pacific Group has raised $2,57,824 through a corporate-wide appeal that will go to support UNICEF’s relief efforts in Ya’an, Sichuan in Mainland China, where a recent earthquake took a devastating toll. The donation includes around $109575 contributed by Hong Kong and overseas staff between April 29 and May 10, together with dollar-for-dollar matching by the company. Participating companies included the Group’s two airlines, Cathay Pacific and Dragonair, and six wholly owned subsidiaries – Asia Miles, Cathay Pacific Catering Services, Cathay Holidays, Cathay Pacific Services, Hong Kong Airport Services and Vogue Laundry. The funds being presented to Hong Kong Committee for UNICEF (UNICEF HK) also include around $1,48,248 collected from passengers on Cathay Pacific and Dragonair flights between May 1 and 15 under the Change for Good inflight fundraising programme. Cathay Pacific Director Corporate Affairs Chitty Cheung said: “We were all deeply saddened by the news of the latest earthquake to hit Sichuan and the terrible impact it has had on the lives of the province’s people. We are very grateful to our staff and passengers for contributing to our appeal to help the people of Sichuan. We know this money will be put to good use by UNICEF, which has been our trusted partner in the Change for Good programme since 1991.”

hemant rawat

flying high: One of the Embraer E Jets in the Air Costa fleet

“Enhance air frequency with India” Turkey’s Ambassador to India, Burak Akcapar, who recently met Tourism Minister K Chiranjeevi, raised the issue of enhancing air frequency for increasing tourist traffic between the India and Turkey. Akcapar said existing flights between the two countries were unable to cope with the demand. The Turkish Ambassador suggested that the Tourism Ministry and Turkish authorities could undertake joint promotion to increase two-way traffic between India and Turkey. Turkey is an important inbound tourist source market for India. In 2011, a total number of 17,329 tourists from Turkey visited India. Turkish Airlines is planning to spread its network in India with the possible code sharing with Air India.

Burak Akcapar

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international airlines

Malaysia’s daytime service

Birmingham to Delhi from Dreamliner Air India recently announced that it will deploy the new Boeing 787800 ‘Dreamliner’ aircraft on its forthcoming flight scheduled from Birmingham to Delhi. Martyn Lloyd, Commercial Director of Birmingham Airport, explained, “This is fantastic pushing the agenda: Uday Dholakia, Birmingham Airport’s Brand Ambassador for Asian news for our region and we’re delightMarkets has been instrumental in the introduction of Birmingham to Delhi flight ed that Air India has recognised the strong demand that lies in our catchment and will be operating the new Dreamliner aircraft on the route.” “There’s been significant support from the City, and indeed the region, for a direct service to India and we’re pleased to see that direct flights are now available on a brand new aircraft which will give passengers a fantastic experience. We also thank everyone involved who has worked tirelessly to make this happen, particularly our Brand Ambassador for Asian Markets, Uday Dholakia,” he added. Uday Dholakia, Birmingham Airport’s Brand Ambassador for Asian Markets, said, “I congratulate the Airport team for their determination to secure the route and reaching this deal with Air India; they have never lost sight of the local need for the service. It is particularly great news that the brand new Dreamliner will be operated on the route and we urge agents and independent travellers to use the Birmingham-Delhi service going forward.”

Branson to give `5 lakh scholarship

Following greater demand from the market, Malaysia Airlines has increased its frequency from Kuala Lumpur to Mumbai to12 times weekly and an additional service has been added to the current daytime schedule of flights from Kuala Lumpur to Mumbai. Malaysia Airlines Director of Commercial, Dr Hugh Dunleavy, said, “South Asia, especially India, is a key market to Malaysia Airlines and we continuously strive to enhance our guests’ experience on-board. We are deploying our newest B738

IndiGo consolidates Gulf operations Strengthening its position in the Middle-East, IndiGo has introduced new flights connecting Mumbai with Muscat, comprising three new weekly non-stop flights on these routes. IndiGo is offering an introductory all inclusive return fare of `9998 on the new daily flight between Mumbai and Muscat. The new service from the city will compliment the airline’s existing daily Gulf operations to Muscat and Dubai from several cities in India. IndiGo presently operates 17 daily flights between India and the Gulf.

Virgin Atlantic’s founder-entrepreneur Sir Richard Branson announced a unique scholarship worth `5 lakhs for Indian students flying to the UK and the USA. The British tycoon is inviting young Indian brains to share their vision on why and how they plan to use their education to actually solve a problem the world faces today. The student whose idea appeals most to Sir Richard will win the scholarship. Sir Richard, President, Virgin Atlantic said, “Young people are the planet’s future. While students work hard to fulfill their academic ambitions, it’s important to remind them that education is not just a means to an end of getting a job and earning money. With the privilege of education comes the responsibility to give back and help others. Every generation owes it to the next to try to solve the problems humanity faces and to care for our beautiful planet." The British airline is also offering packages for students flying to the USA and the UK including an exclusive excess baggage allowance. Students can avail the special baggage allowance of up to 50-kg in Economy (two bags of 25-kg each) and 75-kg in Premium Economy (three bags of 25-kg each). Moreover, understanding that their departure date often needs to change due to factors unforeseen, students will be allowed one date change free of cost.

Richard Branson

Cruising Heights July 2013

AirAsia grant to Tonibung

to Mumbai aircraft on this route to bring the comfort level of guests to a higher level.” “New aircraft with modern interiors, great in-flight entertainment, and authentic Indian in-flight cuisine adds to our special ‘Malaysian Hospitality’ delivered by our award-winning crew. Competitive pricing plus 30-kg of checked-in baggage for Economy and 40-kg for Business Class makes Malaysia Airlines an excellent choice to travel to the Indian sub-continent. It’s a winning proposition for our guests,” he added.

AirAsia Foundation recently awarded its first social enterprise grant in Malaysia to Tobpinai Ningkokoton Koburuon Kampong (Tonibung) or Friends for Village Development, a Sabah-based organisation with a 20-year track record in empowering indigenous communities across the country. Under the grant terms, Tonibung will receive $ 18120 to establish a hire purchase scheme that enables rural indigenous communities to affordably start micro hydro projects in their villages. This initial funding pool will benefit 22 households of Kampung Tiku, Sabah, that do not have access to the national power grid. A 10kW turbine will be installed at the village to generate clean, renewable hydro energy to address their basic electricity needs. In addition, Tonibung will be provided with enterprise guidance by the Foundation’s management team and Council of Trustees. Through the hire purchase scheme, the villagers will repay the turbine cost progressively over a period of 36-months.

BA special fares to London, NYC

Emirates takes off to Haneda

British Airways (BA) has announced special fares to the cities of London and New York City (NYC) for its customers from India. The all-inclusive return fares start from only `96, 744 and `109, 209 to London and NYC, respectively. The offer is available on flights booked in World Traveller Plus, British Airways’ premium economy cabin, for outbound travel till August 31. Christopher Fordyce, Regional Commercial Manager, British Airways, South Asia, said, “London and New York are amongst the most popular holiday and business destinations with Indian travellers. We are pleased to announce the special offers to enable our customers to enjoy unparalleled on-board services and travel experience on their way to the two favourite cities. “British Airways’ codeshare with American Airlines provides our Indian customers with extra options and greater connectivity when travelling on transatlantic routes in addition to British Airways’ extensive worldwide network,” he added. Good snooze for flight sleepers: BAs’ customers will now be having access to a new virtual ‘Sleep channel’. A range of specially selected audio CDs have been chosen to help customers relax and unwind while onboard the airline’s long-haul flights with the aim of gently lulling them to sleep. The dream-inducing CDs feature in the Well Being section of the airline’s in-flight entertainment system and are part of BAs’ £5 billion investment to make customers more comfortable.

Emirates recently started a daily, nonstop service from Dubai to Tokyo International Airport (Haneda). Thierry Antinori, Emirates’ Executive Vice President, Passenger Sales Worldwide said: “We value our partnership with Tokyo International Airport. It is one that helps to connect two new destinations: (L-R)Daisuke global hubs of develop- Matsunaga, Consul General of Japan, Salem ment and growth — Ja- Obaidalla, Emirates’ Senior VP, Commercial pan and the UAE. We Operation Far East and Australasia and Ravishankar Mirle, Emirates’ VP Cargo Comknow that Haneda will mercial get ready for the inaugural departure play an integral role in to Haneda our route network and the launch of services demonstrates Emirates’ commitment to Japan. Since the commencement of Emirates’ flights to Osaka in 2002, trade relations between Japan and UAE have flourished. According to JETRO (Japan External Trade Organisation), two-way trade between UAE and Japan rose to $53.1 billion in 2012, up by 5.4 per cent compared to previous year.” “Haneda is our third gateway in Japan and we are confident that the demand in terms of both passengers and cargo is strong enough to warrant Emirates operating non-stop, daily flights to both of Tokyo’s airports, offering our passengers more flexibility on the route to Dubai and onwards to over 70 destinations in the Indian Ocean, Middle East, Africa and Europe,” concluded Antinori.

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TRAVEL & TOURISM

Toshali Resorts to attract scholars Aamod Resorts is all set to expand its roots of out-of town locations with the launch of a 20 room resort in Narkanda, Shimla which is located on NH-22 in an area surrounded by the villages, apple orchards and dense forest cover. With the growing interest among academicians to explore the vastly spread Buddhist heritage sites of Odisha, Toshali Resorts International, the Gurgaon based hospitality and destination management company which manages four properties in the Buddhist circuit of Odisha has come up with special offering to allure scholars, archaeologists, historians and students to visit, stay and study the Buddhist art and culture of ancient Kalinga dedicated to the Mahayana and Vajrayana sect. To promote study tours and academic conventions on Buddhist heri- alluring serenity: One of tage, Toshali has made an exclusive the Toshali resorts at Orrisa offering of `1000 per room night plus taxes for scholars including breakfast. Also there will be a 10 per cent discount on meals (lunch and dinner) and a free access to the state-of-art library cum interpretation centre at Ratnagiri property. To avail the special rates, the scholars need to produce

Ahmedabad gets Belgian visa centre Outsourcing and technology services specialist for diplomatic missions and governments, VFS Global, have extended their visa application services for Belgium to Ahmedabad. Karl Van den Bossche, Consul General of Belgium in Mumbai inaugurated the new centre located at the Gujarat Chamber of Commerce and Industries building at Ashram Road. Catering to the growing demand of Belgium bound travellers in the region, this strategic move is aimed at offering new services, facilities and benefits to visa applicants, and boost tourism, trade and investments, and bilateral ties with India. Van den Bossche said, “We are bringing our service closer to the public and business community, to enhance the user friendliness. We recognize the importance to open more Visa Application Centres in India, together with VFS Global who has been our trusted partner for many years. These centres will offer a high quality and expedient service to our applicants. We strive to return passports within 3 working days. With this initiative, Belgium further intensifies its cultural and economic creating ties: Karl Van den Bossche and ties with India. AhmedVishal Jairath on the occassion of opening of abad is a logical choice the new Belgium Visa Application Centre in Ahmedabad to this end.”

their identification and assure a minimum stay of three nights. This offer is valid till December 15, 2013 and is applicable to the properties situated at the heritage sites of Ratnagiri, Udayagiri and Lalitgiri. Special packages and rates are also being devised for academic workshops, seminars and conventions in these sites. All the three properties at Ratnagiri, Udayagiri and Lalitgiri are upgraded with star class amenities. “Only few of the Buddhist heritage sites have been unearthed till now which creates lot of excitement among the visitors due to its artistic beauty. Scholars and archaeologists have taken lot of pain to unravel these hidden treasures. With the up gradation of accommodation units at these heritage sites to international standards and good connectivity we expect to see lot of research and excavation in near future which will showcase the glorious past of Kalingan art and Buddhism to the world. We are hopeful of a surge of 100 per cent per cent in tourist traffic to Buddhist sites of Odisha from domestic as well as inbound segment this year.”, said Harihar Patra, Director-Marketing, Toshali Resorts International.

TripAdvisor award for 7 Tune hotels International hotel group Tune Hotels has announced that seven of its hotels in four countries have been recognised for service quality by the world’s largest travel website, TripAdvisor. Tune Hotels’ properties in the Philippines, Malaysia, Thailand and the UK were recently awarded a “Certificate of Excellence 2013” by TripAdvisor. Tune Hotels in the Philippines scored substantially with Tune Hotels in Cebu City, Angeles City and Ermita, Manila being recognised with the TripAdvisor Certificate of Excellence 2013. Malaysia’s Tune Hotel Danga Bay in Johor Bahru and Tune Hotel Kota Bharu, as well as Tune Hotel Liverpool Street, London in the UK received the Certificate of Excellence for the second consecutive year, while another recipient this year was Tune Hotel Hat Yai in Thailand. Tune Hotel Ermita, Manila was recognised as among the Top 25 Bargain Hotels in the Phil- providing excellence: ippines under the TripAdvisor Tune Hotels GCEO Mark LankTravellers’ Choice 2013 award. ester in front of Tune Hotel Kota Meanwhile, Citrus Hotels Bharu, Malaysia and Resorts has received a TripAdvisor Certificate of Excellence award for earning exceptional traveller ratings over the past year for seven of their properties in India and Club Med has received a TripAdvisor Certificate of Excellence award for its Bali and Bintan Island resorts.

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Sarovar Hotels continues expansion Sarovar Hotels has announced the signing of three hotels in Agra, Ajmer and Bekal. With these signings, Sarovar Hotels will mark their presence in these cities for the first time. Anil Madhok, Managing Director, Sarovar Hotels and Resorts said, “We are expanding aggressively to reach our target of 100 hotels which will be a milestone in the growth of our group.” The Crystal Sarovar Premiere in Agra, a luxury hotel with 140 keys, promoted by Shree Sharanam Real Estate Pvt. Ltd. and located on Fatehabad Road, will afford views of the Taj Mahal from its rooms as well as offer all modern facilities. This five star hotel will be operational by 2014. Sarovar Portico, Ajmer is the group’s first hotel in the city which is surrounded by Aravalli Mountains. The 60 room hotel will house restaurants, lounge, meeting rooms, swimming pool and other facilities required to meet international standards of a three star hotel. Promoted by Poonam Madhani, Sarovar Portico Ajmer will be operational by 2015. Sarovar Portico, Bekal, a 48 key hotel, will be the group’s second hotel in Kerala after Vasundhara Sarovar Premiere. Promoted by PA Mahamood Haji, Sarovar Portico Bekal, will be operational by 2014. Anil Madhok

India gets online forex platform

With the surge in outbound tourism, BookMyForex.com, a new ecommerce venture, has been introduced as India’s first full featured money exchange and foreign remittances portal offering users the convenience of booking foreign exchange products and foreign money transfer orders online. BookMyForex.com offers a full suite of forex services and product offerings that consists of currency notes, prepaid travel cards (forex cards), traveller's cheques, foreign currency demand drafts and foreign currency wire transfers. Its interactive portal guides visitors through the order booking process step by step, ensuring a pleasant user experience and guaran-

APPOINTMENTS Ashutosh Chhibba is ITC Mughal, Agra GM ITC Hotels had appointed Ashutosh Chhibba as the General Manager of ITC Mughal, Agra, a luxury collection hotel. Chhibba is an alumnus of Welcomgroup Management Institute and brings with him 21 years of expertise in Food and Beverage. His journey began with ITC Hotels in1992 as a Banquet Manager in Chola Sheraton, Chennai and he has been posted at various ITC Hotels properties to shoulder responsibilities in different capacities and position.

teeing compliance with all applicable laws and regulations. The company offers one standard rate for each currency and product across the country. Customers have the option to book currency at live and real-time market rates. Customers can even freeze the currency exchange rates for as many as three working days. To provide their services through a vast network, the company has done an exclusive tie up with Axis Bank. The tie-up allows BookMyForex.com to fulfill forex orders from all Axis Bank branches nationwide, effectively making BookMyForex’s network of over 1700 locations, the largest in India.

Royal Caribbean launches CruiseFly Emirates Holidays, the tour-operating arm of Emirates airlines, and TUI India, the tour operating arm of Le Passage to India, an India based destination management company, recently signed a Memorandum of Understanding under which TUI India will be the Preferred Agent for Emirates Holidays in India. Royal Caribbean Cruises recently launched the CruiseFly facility, offered by Marina Bay Cruise Centre Singapore, on its cruises disembarking at Singapore. CruiseFly is the region’s first sea-to-air baggage transfer service that allows guests an early check-in for flights departing within the same day of the ship’s arrival into Singapore. Commenting on the CruiseFly service, Ratna Chadha, Chief Executive-TIRUN Travel Marketing, India Representative of Royal Caribbean Cruises Ltd. said, “This is an exemplary service designed to provide an effortless travel experience to our guests. The early flight check-in not only eliminates baggage-related stress but also provides for a couple of extra hours to explore more activities and attractions in Singapore.” She further added, “This is an exciting year for Indian travellers and cruise enthusiasts as Royal Caribbean International has deployed Mariner of the Seas, the largest and most innovative cruise ship to homeport in Asia. This ship will deliver an exciting range of cruises from Singapore later this year.”

Wego appoints Matthew Varley as COO Wego.com has announced the appointment of Matthew Varley as Chief Operating Officer (COO). Varley will report to Wego. com CEO and Co-Founder Ross Veitch and will be based at the company’s global headquarters in Singapore. Speaking on the occasion, Veitch said: “Matt’s strengths as an all-rounder, Asian market knowledge and previous experience scaling online travel businesses made him the perfect choice to drive the next phase of Wego’s expansion.”

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Back page

Google off… C

all it a symbol of extravagance or a hallmark for economic development and jobs? Whatever it be, search giant Google’s aspiration of a private terminal will be taking off with an $82-million private terminal. Built by US-based Signature Flight Support, the airport will cater to executives flying in and out of Mineta San Jose International Airport in northern California, the terminal will be situated on a 29-acre section of a long-term parking lot that became free, thanks to the airport’s $1.3 billion modernisation plan. The airport is about 19 kilometres from Google’s main campus in the city of Mountain View. In April, the San Jose City Council voted to grant delegated authority to the airport staff to finalise negotiations and execute a 50-year lease to Signature Flight Support, with an annual rent of $2.6 million along with guarantees regarding fuel purchases and hiring of local workers. Signature, which operates more than 100 locations in the US, Europe, South America, Africa and Asia, is a subsidiary of BBA Aviation. The terminal will be constructed in partnership with Blue City Holdings, a company formed by Google’s founders and Eric Schmidt, Executive Chairman of Google, to manage their growing fleet of private jets. With an off-mark nickname, ‘Google Airport’, this executive terminal would include roughly 17,000 feet of terminal space and additional square footage for offices, restaurants and retail, along with seven hangars, five of which will be reserved for Google aircraft including Boeing 737 and Boeing 767 models like those used for commercial passenger flights. n

AESTHETIC APPEAL: (Top and bottom) Artist impressions of the upcoming airport terminal designed exclusively for Google

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RNI No. DELENG/2006/16897, Postal Reg. No. DL(E) 01/5294/2012-14, Publication Date: 1st of every month, Posting Date: 8-9th every month