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EDITOR-IN-CHIEF’S NOTE
Be inventive
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erhaps, it would be fair to say that this Deepawali the lights are bright and shining for the aviation business globally. Both at home and overseas, the profits are slowly coming in — quarter by quarter — and it is apparent that the severe recession of the last two years is indeed receding. But the shimmering glare of the sector’s buoyancy will come to a complete naught if the lessons of the last three years aren’t kept in mind as we go forward. Here in a nutshell are some of these lessons: 9 Go easy on capacity. In the Indian context, barring IndiGo and SpiceJet, literally every airline had to ruthlessly slash capacity. Some were smart enough to lease their aircraft while others kept them on the ground. But they had created the problem in the first place by wildly ordering planes left, right and centre. In the US, for example, capacity shrunk by as much as 30 per cent. 9 Continue to innovate and stick to the mean and lean philosophy. In the last ten years, the innovations seen in the airline business have been astonishing. Airlines have cut costs by as much as 12-20 per cent by simply restructuring their operations. It’s a process that has to inevitably continue if carriers and the managements have to wade through the peaks and troughs of this business. 9 Collaborate. It is evident that airlines think of themselves as the be-all and end-all of the business. The airports
CRUISING HEIGHTS November 2010
can sing for themselves! Time and again Giovanni Bisignani, the feisty IATA Director General, has spoken about the organisation’s wall of shame and how airports weren’t doing enough in the recession. But the point is simple: his members could park their planes with others (ask Naresh Goyal and he’ll tell you how he leased his aircraft), but what does a promoter do with his airport? 9 Be together. At least in the Indian context, these last three years have been a wonderful exhibition of how not to be together. From the Jet-Kingfisher alliance to the Federation of Indian Aviation shenanigans, airlines in this country have exhibited a unique capacity to go their own way. If they wish to be taken seriously, they would better get their act together. 9 Don’t expect help from the government. In the last three years, the number of airlines that went bankrupt is legion. Governments nowhere in the world bailed them out. It’s no surprise it hasn’t happened here too. In any case, you can’t talk about free market principles and government intervention in the same breath! Having said all this, one must, however, concede that the government has done little in the past three years to help airlines. The taxation structure is frightfully skewed, there is no rationale in many of the policies and time and again, the government and its departments have made empty promises. If the airlines are slowly emerging from the turbulence, it’s because of their own inventiveness and that’s what makes this Deepawali special. Season’s greetings!
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Off the cuff
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Internet in the air? American budget airline JetBlue announced recently that it would have in-flight internet by the middle of 2012. According to The Economist, Wi-Fi in the air has seen wastage of huge amounts of money and long delays. Boeing is believed to have spent billions of dollars getting its Connexion system in the air before grounding it in 2006 with just a few hundred planes equipped, mostly long-haul craft operated by Lufthansa. A few planes utilise OnAir, an Airbus-affiliated firm. The Economist report cited the case of Ryanair that earlier this year cancelled the deal it announced in 2006 for calls and texts with OnAir, after a long period of testing. AeroMobile, a competing firm, has claimed that 75 aircraft are equipped with its mobile-phone service. Row 44, which has focussed on delivering satellite broadband to American carriers, has inked a deal with Southwest and said it would launch soon. The company has also recently raised additional capital for expansion. But it lost its other American contract, with Alaska Airlines, when the airline opted instead for Aircell, the only viable broadband operation. A privately held firm based in Itasca, Aircell purchased 3MHz of air-to-ground spectrum in an FCC auction in 2006. JetBlue’s LiveTV division, which operates its entertainment services, bought one MHz in the same auction. This spectrum was formerly dedicated to a littleused narrowband analog airphone service operated at its end by a division of Verizon Wireless. The question that remains is whether in-flight internet can be profitable for all parties involved. The airlines are typically tight-lipped. Aircell releases only statistics on use.
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contents
BUSINESS OF BIZJETS
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While the economic downturn affected commercial aviation, the general aviation sector remained virtually untouched. With demand across the world picking up, business jet manufacturers are working hard to roll out top-of-the-class flying machines. A look at the state of bizjet sector and new fliers in its family.
GUEST COLUMN
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Tom Enders, CEO, Airbus, was recently in Bengaluru. He describes what he terms as “a different trip altogether” when he found the crossroad between the interests of society and industry.
CRUISING HEIGHTS November 2010
NEWS DIGEST
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Air India stands out as the best aircraft till date, but still there seems something fundamentally wrong when it comes to human resource management. Plus: Delhi’s IGI airport will have the country’s tallest ATC tower with special features, while Kingfisher is working on its financial restructuring plan.
BUSINESS IS GOING PLACES N
Planman Marcom / ACE / 07/ 2010
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contents ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS PROFILES NEWS DIGEST
CRUISING HEIGHTS Volume V No 7
Editor-in-Chief K SRINIVASAN Managing Editor
TIRTHANKAR GHOSH
SPOTLIGHT
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What is it that makes the humble carpet so important at Delhi airport's T3? A report on the making of the giant carpet that will bear the weight of 30 million pairs of travellers feet every year.
SPECIAL REPORT p28
AAI has given an in-principle green signal to open Juhu airport for smaller aircraft and ATRs. That will go a long way to decongest Mumbai airport.
Consulting Editor
R KRISHNAN Deputy Editor
P C SINGH Special Correspondent (Mumbai)
ROOHI AHMAD Copy Editor
ASHOK KUMAR Editorial Coordinator
LAKSHMI SINGH Reporters
JASLEEN KAUR PUNIT MISHRA Design
RUCHI SINHA, PRADEEP JHA SHIV, JITENDRA RAWAT Picture Editor
GLOBETROTTING CARGO
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ACAAI's 37th annual convention is all set to be held in Bengaluru. The revival of air logistics industry post the economic downturn is likely to hold centrestage during the exhaustive sessions of the convention. Plus: ACAAI President J Krishnan on the state of the air cargo industry.
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Cebu Pacific Airline's onboard demonstrations have become online sensations and an unusual furry creature becomes the brand ambassador for Air New Zealand.
PRADEEP CHANDRA Photo Editor
H C TIWARI —————————— Publishing Director
ROHIT GOEL Director (Admin & Corporate Affairs)
RAJIV SINGH Subscription
JAYA SINGH, BABITA SHARMA (Mob. 9650433044)
Executive Director
RENU MITTAL For advertising and sales enquiries, please contact: +91-9999919071, 9810030533
BACK PAGE
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Have you ever heard of a brand ambassador flying an airliner? Then here we go. Qantas's brand ambassador, John Travolta, flies Oprah and her audience to Australia.
SNIPPETS
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Kingfisher launches direct flights connecting Bengaluru and Mysore, Delhi airport celebrates Gandhi Jayanti, AirAsia is the best Asian low-cost carrier and The Metropolitan Hotel reopens with a new look and much more.
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Cover Design: Ruchi Sinha
CRUISING HEIGHTS November 2010
Editorial & Marketing office:
Newsline Publications Pvt. Ltd., D-11 Basement, Nizamuddin (East), New Delhi -110 013 Tel: +91-11-41033381-82 All information in CRUISING HEIGHTS is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket-IV, Mayur Vihar Phase-I, Delhi-91 and printed by him at Nutech Photolithographers, B-240, Okhla Industrial Area, Phase-I, New Delhi-110020.
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DO YOU HAVE BAGGAGE FOR SORTATION? www.vanderlande.com
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Soaring high
PERISCOPE
The airline has reported a 35 per cent increase in revenues during fiscal 2010 as compared to the previous fiscal while there was a 10 percentage point increase in passengers carried. ADITYA GHOSH, President, IndiGo Airlines, on recording a high jump in the airline’s profit after tax during fiscal 2010 at `551 crore.
LETTERS TO EDITOR
The story Whirling to glory (October, 2010) was interesting to read. Pawan Hans has covered a long journey since its inception. It has had its share of ups and downs. But now the PSU is making its presence felt under the stewardship of R K Tyagi. Though, I still feel it has long way to go, Pawan Hans has got the potential of being truly world class but it needs government support. The dearth of helicopter services in India is still a problem that remains to be countered. Pawan Hans can bridge the gap by providing adequate helicopter services but it can’t be possible without Civil Aviation Ministry’s support. Sanjay Kumar, Pune October 2010
Illustrations: Rajeev Kumar
Low fare is the name of the game as we are operating into price-sensitive destinations with travel duration of an hour and half. We can afford to offer low fares, since our cost of operations is lowest in the industry.
KISHORE GUPTA, Director, SpiceJet, on the decision of the airline to offer low fares even on international routes.
Rs 60
Soaring with cargo, the Jet way (October, 2010) was an interesting analysis about Jet’s cargo ambitions. Jet airways’ cargo operation is on all-time high and this is a good thing as far as Indian air cargo scenario goes. The domestic airline operators have been unable to capitalise on the cargo business attributing to low revenue yields. As the story illustrated “the airline ferried 96,386 tonnes of cargo on global routes in 2009-2010, a whopping 87 per cent increase when compared to 2008-2009”. That suggests that other domestic operators can take a lesson or two from Jet’s success story. Raghavan Iyer, Chennai
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Right strategy
Willie The Empire Builder (October, 2010) presented some interesting facts about British Airways and Kingfisher Airlines code-share arrangement. The arrangement will bring major relief to Indian travellers who use Kingfisher Airlines to fly to Europe. The two airlines have taken a right step in the right direction. As a matter of fact, the deal has been intended to aid seamless travel for passengers. It is a win-win situation for both the airlines. Riyaz Maqsood, Delhi All correspondence may be addressed to Editor, Cruising Heights, D-11 Basement, Nizamuddin (East), New Delhi -13, OR mail to cruisingheights@newsline.in.
What an idea, Sirji! We are planning to start mobile boarding pass services and are in talks with airline companies and have called them to test the system. If successful, we will implement this service in another six months. MARCEL HUNGERBUEHLER, President, Bengaluru International Airport Limited (BIAL) on the plan to introduce mobile boarding services.
Hold it If surpluses are swallowed up in taxes, airlines will not only be unable to invest in cleaner, emissions-reducing aircraft, they will ultimately go bankrupt and the social and economic benefits they bring will disappear with them.
British Airways Chief WILLIE WASH is furious over huge increase in air passenger tax, which will have a negative impact on the airlines.
Optimistic signs Private Indian airlines are now reporting profits, or at least shrinking losses. In the face of major challenges, the Air India situation is also improving. GIOVANNI BISIGNANI, Chief Executive, IATA, expecting Indian airline companies to narrow their combined loss to $400 million in 2010.
Ambitious plans The vision of the company is to be the Indian ambassador to the world. We also want to be a leader in the domestic market. CAPTAIN GUSTAV BALDAUF, Chief Operating Officer, Air India, on the airline’s plans to enhance the focus on domestic operations along with managing the international operations.
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Fashion fever in the air
¾ Air France commissioned a designer to re-design the uniform in 2005 and the users were impressed, with 17 per cent voting for its uniforms. ¾ The dresses of Delta Airlines have not grabbed Skyscanner users' attention, with just five per cent voting for Delta. ¾ The poll results show Iberia is not a Skyscanner favourite, taking just nine per cent of the votes. ¾ Airlines like Jet Airways and Lufthansa have also used top fashion designers but the appeal seems to be limited. The airline that the users actually deemed to be the most stylish is Qatar Airways — its retro-look crimson uniform took a massive 33 per cent of all votes. The top ten most stylish airlines (in order) are Qatar Airways, Air France, British Airways, Iberia, Alitalia, SAS, Delta, Aeroflot, Jet Airways and Lufthansa.
COLD STATS
Aviation and fashion have always enjoyed close relationships — from beautifully tailored European dresses with caps to typically Indian saris. Believing that a good cabin uniform is an important constituent of the airline's brand experience strategy, airlines commission top fashion designers to create stylish cabin crew uniforms. But how effective has this been? Flights comparison site Skyscanner.net has published its top 10 most stylish airlines, based on the results of a recent survey with 500 users. ¾ Italy was one of the first countries to enlist a fashion designer to design uniforms for its national carrier Alitalia, which got just eight per cent of the votes in Skyscanner’s poll. ¾ 15 per cent of the users thought that British Airways, which sponsors London Fashion Week, should take the top title in the style poll.
LOOKING GLASS NACIL! No, it should be Air India
The Maharaja's identitiy crisis
In my opinion… Managing operations at the Mumbai airport, which has nearly reached saturation in terms of handling airline traffic, has become a nightmare for airlines. S K DATTA, Executive Director, Jet Airways, speaking about Navi Mumbai airport plans.
Nearing take-off The Navi Mumbai airport should have been in operation by 2011, but we will try to push it for at least a partial or a first phase opening by 2014-15. Civil Aviation Minister PRAFUL PATEL on the woes to get a new airport for Mumbai.
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OFF THE RECORD
GRAND CELEBRATIONS: (Left) ATC Guild President D S Raghavan and General Secretary D K Behera felicitate V K Agrawal while Somasundaram (extreme right) looks on; and, (right) Praful Patel being felicitated by Alexis Braithwaite (extreme left), President, International Federation of Air Traffic Controllers Association along with D K Behera and D S Raghavan.
ATC CELEBRATIONS AND BOARD MEETINGS
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V P Agrawal
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Photo: H.C. Tiwari
Somasundaram
he Air Traffic Controllers Guild must be complimented for the marvellous show it put up as part of its two-day conference in late October. Generally conclaves like this turn out to be eat, drink and make merry jamborees. But not this one. There was a seriousness of purpose, there were interesting presentations and the Guild had done its homework well and got together a slew of interesting speakers from home and overseas. Surprise of surprise when the AAI Chairman V P Agrawal, Member (ANS) Somasundaram weren’t there at the inaugural function it set a few tongues wagging on why they had failed to turn up. Neither was the DGCA Dr Nasim Zaidi or the Joint Secretary in the Ministry Alok Sinha at the venue. Why, even Praful Patel who was listed as the chief guest, failed to arrive, it really set the cat amongst the pigeons. But all of them did indeed grace the twoday event. Mantriji arrived soon after the opening session and stayed back to speak in some depth on the issues confronting the sector. He was actually held up because of a meeting in the cabinet on the Navi Mumbai airport. As for V P Agrawal, Somu, Dr Zaidi and Alok Sinha, all had important duties: Agrawal to chair the AAI Board meeting and Somu to attend the meeting as a member of the Board! Sometimes Board meetings have to be tailored in a fashion that all members can attend and the AAI Board is indeed high-powered with Deepak Parekh, Sajjan Jindal and Arun Bongirwar from the outside and Dr Zaidi, Alok Sinha and E K Bharat Bhushan being the non-AAI components of the Board.
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But the beauty of the event was that each one of them came back to address members of the Guild. Perhaps, the best part of the event was the Guild’s decision to get their global President to come and join them for the show. He had travelled all the way from Brian Lara countryTrinidad and Tobago — to participate in the event. In a way his presence is also reflective of the esteem in which the Indian ATC is held. They have coped with the phenomenal rise in traffic rather manfully, put up with shortages and slogged their butts off at airports across the country. That we have managed to expand our aviation horizons and provide effective services to the rising number of departures and arrivals is in many ways a tribute to them.
Interestingly, the AAI Board meeting was a first for the new member (operations) G K Chaukiyal. This AAI veteran who has spent closer to three decades in a wide variety of
PARKING LOT WITHOUT COMMENT: Here is an item from The Times of India. Delightful and reflective of the foibles of our ruling class: “Skeptics may argue that spending crores of rupees for the upgradation of Hubli airport to international standards may go waste, rais-
Hubli Airport
ing doubts about its ability to attract enough airline companies. But Dharwad MP Prahlad Joshi has an answer to such doubts. Speaking at the foundation-laying ceremony of the sports complex at the Gymkhana Grounds here (Dhar-
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positions in the organisation finally completes the Agrawal team at AAI. For the first time in years, the Authority now has all its top men in G K Chaukiyal position and it can move forward with its ambitious roadmap to ramp up its operations across the country. Few would be aware that Chaukiyal was selected some months back to be head of FACT, the Kochi headquartered fertilizer giant. In fact, he was the candidate number one on the PESB list. But Fertilizer Minister Azahagiri wouldn’t have anyone but a south Indian in the position so finally the job went to the second choice — an insider who was the number two in the organisation. In a sense, maybe it was good. It has given this veteran an opportunity to climb the ladder in his parent organisation and nothing can really be sweeter than that.
wad), he said people often ask him about the flights coming to Hubli airport. To such queries, Joshi would reply, saying that the airport can at least be used for parking of flights which cannot find parking space in other airports. “There are airports in Mumbai and other places where there is no adequate space for parking of flights. They go for the nearest airports only for parking. Even the Pune airport is being used for such purposes,” he claimed, adding Hubli airport could also be used like that. “The flights, which come here for parking, can also ferry passengers, if any, on its way back,” he said. Joshi who, is also the member of the parliamentary committee on civil aviation, said the upgradation work of the airport will begin in two years.” The only thing Joshi failed to tell his audience was where should Messers Mallya, Goel and company go for dole in case they implement this scheme?
CRUISING HEIGHTS November 2010
COOL IT! bankrupt airline is looking at an Indian entrepreneur to revive at least a bit of its fortunes. The airline in question is Japan Airlines while the Indian is 44-year-old Pankaj Garg. All that Garg’s Tokyo-based company Innovation Thru Energy Co. does is air freight fresh Japanese vegetables and fish to countries in Asia. When they arrive at their destinations, they are almost as fresh as those from farms. Cashing in on the craze for Japanese food among Asia’s upper classes, Garg realised sometime ago that the only way to keep products fresh was a special refrigeration method powered by an “ice battery”. Unlike dry ice, the battery maintains a Pankaj Garg displays his “ice constant temperature battery” container. for a longer period of time. According to reports, the battery that works like a “cooling pillow”, which is used to provide relief to those who have fever, is cooled in a freezer. Garg’s interest in cooling technology stems from his deep love for Japanese food. The young man fell head over heels for tuna sashimi when he had it for the first time after starting work in Japan in 1988 for a major steel company. Since then the love has grown so strong that it prompted Garg to start a business for transporting food by air. In between, however, the information technology major moved to the Japanese subsidiary of Intel and learnt how computers remain cool. That technology, however, did not help much and it was in 2006 that he saw the ice battery system developed by a Taiwanese research institute. It was then that Garg developed his own system. The tie-up with Japan Airlines started in 2009. Since then, Garg has not looked back. Perhaps, our failing airlines could take a leaf out of Garg’s book and start similar services. Any takers?
A
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GUEST COLUMN
The marriage in the forest Tom Enders, CEO, Airbus, was recently in Bengaluru. He describes what he terms as “a different trip altogether” when he found the crossroad between the interests of society and industry. hen I took the controls in the cockpit I had no idea what kind of experience was lying ahead of me. But after a very fruitful day in Bengaluru meeting with our highly skilled and motivated Indian engineers, customers and suppliers I was ready for a different scene. As I flew over the residential zones, over the farmlands and into the thick rainforests of the Nilgiri nature reserve in the south-western hills of India — a one-hour helicopter ride from Bengaluru — I realised it was going to be a different trip altogether. I was greeted with drums and a ceremonial garland of flowers by a rural tribe and 16 of my younger troops. They had volunteered to come out and spend three weeks of their time building biogas ovens supplying energy to meet the daily cooking needs of these remote villages tucked away in the heart of dense jungle vegetation. I was sceptical about the initiative at first despite Raleigh’s CEO having personally come to present the project to our company foundation’s board members earlier this year. I think too many companies have jumped onto the bandwagon of feel-good corporate social responsibly
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HAPPY MEETING OF MINDS: Tom Enders with local volunteers with who the Airbus team members worked in the forest to set up biogas ovens for the tribals.
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CRUISING HEIGHTS November 2010
projects without properly understanding what they really deliver — both to the societies they claim to help and to the industries they promise to make sustainable. After a half day of trekking through the mud and visiting the basic camp site called ‘home’ by the Airbus employees and after seeing the three biogas plants they had managed to build in less than two weeks, I wondered how a handful of people who didn’t know each other, transported from around the world could so quickly achieve so much. And after listening to them tell their stories — the challenges, the teamwork, the camaraderie with such passion and energy that I wanted to bottle, seal and take back to my own executive management team — I realised there is value in marrying community work with business. This is social entrepreneurship working well — taking the best of business acumen and applying it to a non-commercial initiative — not under the pretext of bettering mankind or for the accolades of positive PR — not for any other reason than knowing that what your employees get out of it personally they will bring back into the business. I’ve sat through too many debates and discussions at the highest of levels between the leaders of major industries, government officials and bureaucrats struggling to find the crossroad between the interests of society and industry. At a time when corporate motives have never before been so scrutinized by regulators, employees and the general public, encouraging and supporting one’s employees to volunteer in community work can go a long way. Driving engagement and trust or simply reinstating a sense of pride that so many employees today have lost can be the biggest return. Whether it’s industry, government or charity, we may all have a different rallying cry and we may never find that crossroad. But by putting our people together to work hand in hand with sleeves rolled up on a simple but common project, we just may get to that crossroad faster than boardroom rhetoric will ever take us. And the final take-away — spend as much time as possible on the shop floor and with the people in your teams on concrete project work. And spend as little time as possible in endless meetings and power point presentations and you may just get a grip on your business!. Airbus. New standards. Together
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NEWS DIGEST t was a routine answer to a routine but starred question by a Lok Sabha member. On July 29, 2010, responding to the question relating to the government’s bailout package to NACIL (National Aviation Company of India), etc, Civil Aviation Minister Praful Patel said NACIL while facing an acute financial crisis had approached the government for equity support. The company was advised to come up with a restructuring/turnaround plan. The restructuring/turnaround plan submitted by NACIL was first considered by the CoS (Committee of Secretaries)and thereafter by the GoM (Group of Ministers), which later approved equity infusion to the extent of `2,000 crore in five equal instalments subject to NACIL achieving the specified targets set for it. Accordingly, an amount of `800 crore was released in February and March 2010. A provision of `1,200 crore was made for the current financial year (2010-2011), the release of which was to be considered after achievement of further specified targets. The Lok Sabha Members, Manohar Tirkey and Prasanta Kumar Majumdar, had also sought details of the plan and its effect on the financial health of the national carrier so far. The written answer covered only the monetary part of the socalled bailout package but did not elaborate the details thereof. At this point of time we could not unravel further details but were forced to look at the question since it would be worth answering it in some detail. What was least expected was Air India to once again say that because it was facing a cash crunch, it was postponing the payment of PLI (Performance Linked Incentive) and flying-related payments to all categories of its employees for the month of November 2010. It is the sort of coincidence that even God might not have wanted. On October 20, 2010, Sushil Gupta, General Manager (Finance) of NACIL, in a letter dated the same day stated that due to an unavoidable financial crisis (simply put cash crunch), the management of Air India was forced to defer the payment of PLI and flying-related allowances. The letter said: “The salary for the month of October 2010 to all categories of NACIL will be paid on Monday, November 1, 2010. However, the payment of PLI and flying related allowances to all categories of employees is being deferred by a fortnight from the due date or November 14.” Even as this letter found its way to Air India’s 30,000 employees, the Minister of
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Arvind Jadhav
AIR INDIA: MULTI-CRORE SALARIES AND STOP PAYMENTS! Civil Aviation Praful Patel was speaking to newsmen on the sidelines of an ATC conference being held at the India Habitat Centre in New Delhi. Rather, Praful Patel, who was to inaugurate the conference, was delayed because of his other pet project, the Navi Mumbai airport, which was being inordinately delayed by his CRUISING HEIGHTS November 2010
colleague Environment Minister Jairam Ramesh. Patel perfectly knew that Diwali was round the corner. But the Air India management was more concerned about “diwalia” than ‘Diwali’. After referring to outstanding issues relating to Navi Mumbai airport, Patel said the union cabinet would soon
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consider a proposal for the induction of `1,200 crore into Air India and expected the decision to be taken in November 2010. A cabinet note on the subject had already been moved. While expressing optimism that Air India’s overall turnover would be higher as there was healthy growth in air traffic, he said Air India’s yields were better and higher while costs were down. In the same spirit of optimism, Praful Patel declared that his Ministry may even ask the government for another `2,000 crore to repay Air India’s massive debt after it gets the second tranche of `1,200 crore. Incidentally, the second tranche of `1,200 crore is expected to be used for settling outstanding dues and not to enhance the airlines equity base. Whatever the end-use of this money, what the Civil Aviation Minister was clearly not aware of — or, should we say, totally in the dark — the letter missile from AI’s Finance Department to its employees telling them of the delay in payment of PLI and allowances that everyone of the 30,000 AI employees was waiting eagerly for Diwali, which falls on November 5. It was only after this news was broken by the media, did Praful Patel get wind of it and ordered M M Nambiar, Secretary, Civil Aviation, to have it reversed with immediate effect. The PLI and flying allowances account for as much as 50 to 60 per cent of the total wage packets of many employees. It is like telling them to have pav, but no bhaji or eat vada but no sambhar.The cash crunch came because of Air India’s obligation towards the month-end bank rollover payments, outstanding of oil companies, aircraft acquisition, spare parts, etc. As per news reports, during April-
TOUGH TIMES AHEAD: An Air India plane on the runway.
CRUISING HEIGHTS November 2010
August 2010, Air India claimed 24 per cent increase in passenger revenue as against the same period of 2009. This performance was expected to secure the second instalment of the bailout from the government. According to mid-October media reports, Air India reported a passenger revenue growth of `830 crore. Its international yields rose by 13.6 per cent and domestic by 14.9 per cent. Following this April-August performance, even the Ministry of Finance had agreed to furnish sovereign guarantee on loans raised by NACIL. This was expected to bring down Air India’s interest rates by as much as 150 basic points. In early September 2010, the Air India board put together a financial restructuring package that included restructuring its working capital loan through a mix of bonds with longer tenure and bullet payments. It had also suggested monetising land and buildings through outright sale or as security for fresh loans. While giving the first installment of loan of `800 crore, Air India had agreed to cut costs by `2,000 crore but had been able to cut only `1,200 crore. It could not touch the employees wage package, including the PLI, flying allowances, etc. In view of these developments, we need to check back on what Praful Patel had told the media in the past. We only give two instances. On June 24, 2009, according to the website eturbonews.com which quoted the Wall Street Journal where Patel said, “It does not mean there is a check book open to Air India. It will be difficult for the government to keep continuing its support unconditionally.” Speaking to the paper after his meeting with the Prime Minister on Air India’s rescue plan, Patel said, “The government expects the airline to become profitable within two years. If Air India does not restructure quickly or deeply enough, shedding some of the Government of India’s stake (as Air India is 100 per cent owned by the government) would remain an option.” On July 22, 2009, according to a PIB release, Praful Patel was quoted at a meeting to mark the launch of India Aviation 2010. On that occasion, he said the Ministry of Civil Aviation had lined up a series of initiatives to revamp the top management of Air India and shore up its finances. “We will go for the transformation of Air India from the top. We will bring in independent directors, have a professional COO to assist the CMD and appoint an international advisory agency.” He also mentioned,
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the allowances of existing staff because we face a cash crunch. So much for the independent directors, who have no clue about what is happening within the organisation. As for Praful Patel, he needs a wholetime specialist information officer from the ranks of AI to tell him what is happening with the Maharaja.What is the point in blaming the media for not reporting correctly? Why is it that even 17 months after his so-called measured observations, Air India is nowhere near greener pastures? There must be something fundamentally wrong with what Air India is doing because even from the point of view of operational aircraft profile, Air India stands out as nearly the best. The average age of its operational aircraft is very attractive. For instance, its fleet of A319s has an average age of two years, that of A320s is three years, that of A330s is two years, that of Boeing 777-3000s is 1.5
Fali Major
years, that of Boeing 777-237 is 2.1 years and that of Boeing 737-800s is five years. The remaining leased Boeing 777-222s have an average age of 14 years, that of Boeing 747-437s is 15 years and Airbus A310s is 24 years. In fact, these last three are hardly used by Air India on its commercial services. Compared to this, Jet Airways’ Boeing 737s have an average of five years, Boeing 777s are three years, Airbus A330s are three years and ATR 72 is six years. In the case of JetLite, its Boeing 737s are on an average nine years old, CRJs are 11 years old. Kingfisher Airlines’ Airbus A330s are two years old, Airbus A320s are four years old and ATRs four years old. As for SpiceJet and IndiGo, the former’s Boeing NGs have an average age of three years old and that of IndiGo’s A320s are two years old. Yet, there is worry of ‘diwalia’ around Diwali!
SECURITY BEEF UP AT AIRPORTS The government has deployed more than 1,300 additional security personnel to guard key airports across the country in the last six months as part of a systematic enhancement of vigil and surveillance. The decision to gradually enhance security deployment at all the major and sensitive airports across the country was taken during a top-level meet of Central Industrial Security Force (CISF), Civil Aviation Ministry and the Bureau of Civil Aviation Security (BCAS) and chaired by Union Home Secretary G K Pilai, in May. Since then, the government has sanctioned 879 new posts of security personnel drawn from the CISF for the Indira Gandhi International Airport at Delhi, 120 posts for Jabalpur airport in Madhya Pradesh, 29 posts for Jorhat airport and 275 posts at Ahmedabad airport. The CISF is guarding 58 airports across the country. Along with the BCAS, the CISF has prepared a blueprint to plug loopholes and fortify both the air and city sides of the airports. Accordingly, a systematic and gradual enhancement in security relating to biometric
NEWS
INFRASTRUCTURE
“MoCA (Ministry of Civil Aviation) does not interfere in the day-to-day management of Air India; there is no regulation, no interference in the management of the carrier.” The high cost structure, certain inefficiencies and compulsions of the PSU airline have been engaging the mind of the government and that is why “we feel there is a need to bring about a transformation in the work ethics and ethos of the company,” he said. Air India even selected Booz Allen & Company and Rothschild to guide it on its cost rationalisation and debt restructuring strategies. This was a year ago, in October 2009. Nearly 17 months later, we see Air India appointing so-called five specialists in the fields of overall management, management information, technology, etc. to revamp its managerial abilities. Air India now incurs `5.5 crore annually to pay these five gems to bail it out, but says we will have to hold back
Harsh Neotia
Yusuf Ali
MORE SECURE: Upgradation of security apparatus and personnel has led to a step ahead in strengthening the security of air travel.
access, construction of watch towers, raising of perimeter walls, installation of CCTV cameras, provision of dog squads and bomb disposal squads
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TALL TOWER AT DELHI
elhi's Indira Gandhi International airport will soon have the country’s tallest ATC Tower with the Airports Authority of India (AAI) finalising the design of this proposed 100-meter-high ATC Tower. The new tower will have a clear view of aprons, taxiways, runways and airspace surrounding the airport, particularly the approach and departure areas. The location of this tower also takes into account the scope for future developments. The new ATC tower will have a number of special features: It will have a visual control tower 95meter- high with an all-round view of the airport. A cab on top which provides spacious layout of the aerodrome and ground movement controllers with adequate space from all display, monitoring and communication facilities, equipment installation and staff rest facilities immediately below the cab. The structure would have two elevators — one of which would be a panoramic lift with glass enclosure. State-of-the-art equipment and software to support modern air traffic control at a busy growing airport and provide much higher levels of
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A TOWER OF STRENGTH: DIAL would be soon getting an ATC tower just like CSIA’s ATC tower (above) of great international design.
operational safety and efficiencies thereby checking delays in air traffic service at IGI airport. This includes all aspects of ground movement control, aerodrome control, arrival and departure control, en-route control, traffic flow management with a view to minimising delays through automation, predictive analysis and collaborative decision-making features. The complex will be completed with all services to support meteorological facilities, search and rescue and antihijacking measures. Special attention would be given in the design of the
at major and sensitive airports has been taking place over the last few months. In order to meet the requirement for additional security personnel, Quick Reaction Teams (QRTs) and commando units, the home ministry has also sanctioned raising of two additional battalions in the CISF comprising 2,050 personnel.
MOBILE ON THE RUNWAY
aircraft has landed and cleared the active runway, except in cases when low-visibility conditions exist at the airport. "Passengers are advised that the use of mobile phones after landing is now allowed. Once the aircraft has left the active runway and has slowed down, passengers may use their mobile phones," advised DGCA
STRICT VIGIL ON E-TICKETS
Courtesy: dancewithshadows.com
The Directorate General of Civil Aviation (DGCA) has okayed the use of the cellular phones by passengers after the
PASSENGER- FRIENDLY: DGCA has allowed passengers to use mobile phones after landing and after runway is cleared.
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new facilities to the training of controller and nav-aid technicians to constantly improve their skills. Facilities are also planned for their fitness and recreation so as to promote a high level of mental alertness and physical fitness of the controllers and other staff members who work under high stress while controlling air traffic services. The total cost of the project including the civil construction work and equipment services are estimated to be around `350 crore with the target date of completion as mid-2012.
E-tickets that can be bought with the click of a button pose a security threat that airports are grappling with, the Central Industrial Security Force(CISF) has found out. By misusing an e-ticket, one can beat the security system at an airport. For example, once a person purchases a ticket online, he gets a copy of it mailed to his inbox, which remains even after he cancels the ticket. By simply printing it out and presenting it to the airport security guards, a person can gain entry into a terminal. This year, nine such cases have been reported at Mumbai, Delhi and Calicut airports. Of these, five were detected at Delhi and two in Mumbai. The Central Industrial Security Force (CISF) handed over the two Mumbai intruders to the police, where they were let off with a fine of `1,200. The crime, which officials say is a serious breach of
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NEWS DIGEST r Vijay Mallya, promoter of Kingfisher Airlines (KFA), is working overtime to get his airline’s financial restructuring on time. At the end of March 2010, its debts stood at `7,922 crore and the restructuring plan is being worked out by SBI Capital Markets. It also involves a consortium of bankers who had lent to KFA. Once all of this finalised, Mallya said he will plan a GDR issue as quickly as possible which may possibly be of a size of $250 million. That all this was coming was quite well known to Mallya. Many may blame the economic recession for these depressing developments. While this is only partly true, most of it was also on account of expanding too fast at too short a time. KFA was launched in May 2005 and by June 2006, it ran up a total debt of `451.66 crore and further to `916.71 crore in June 2007. By March 2008, its total debt stood at `934 crore which zoomed to `5665.56 crore in March 2009. This was because of Mallya's adventurous takeover of Air Deccan along with its losses, aircraft loan repayment schedule, etc. Along with interest payment as well by March 31, 2010 KFA’s total debt had soared to `7922.60 crore. On the other hand, and as expected KFA’s net worth which was a positive `224.13 crore in June 2006, rose to `384.70 crore in June 2007 but dropped to `198.86 crore in the next month on March 31, 2008. By March 2009, the net worth turned negative at minus `2125.34 crore and rose further to `3898.45 crore by March 2010.
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Dr Vijay Mallya
Kingfisher GETS GOING
exit the terminal premises. The letter says that, it is necessary to strictly implement exit control measures. Internationally, all e-tickets are bar-coded and validated at the airports entry point. In India, however, passengers are allowed access to the airport merely by producing the eticket along with a proof of identity. At the airport entry point, there is no way to ascertain whether the e-ticket produced by the passenger is genuine. Of course, a fake e-ticket can get a person entry only up to the check-in counter and not beyond. But then, unchecked entry into this part of the terminal for motives other than boarding a flight is not a small breach, as an intruder could do a number of things having dangerous implications.
INDIA-US AVIATION SAFETY AGREEMENT
SECURITY BREACH: Airports are grappling with security threat posed by e-tickets.
security, has prompted the Ministry of Civil Aviation to issue a letter to CISF officials to check and interrogate people who
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India and USA are in the process of entering into a Bilateral Aviation Safety Agreement (BASA), which would eventually lead to mutual acceptance of aeronautical products/parts developed in either countries. Subsequent to completion of all preparatory work, two very important activities towards achieving BASA have been recently completed. These are (a) 'Technical Assessment' of DGCA by FAA in 11 defined areas, and (b) a shadow certification project where the DGCA
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NEWS DIGEST At the end of March 2010, its reserves were negative at `4,268 crore. Obviously, Mallya was very keen that the RBI, SBI and all of the remaining banking fraternity listen to him and restructure his huge debt. What kept him going was the huge cash-rich liquor business of his under the brand name UB. Ironically, the last time he was in the aviation business way back in the early to mid-1990s, he had named his airline — though non-scheduled — UB Air. Under the KFA restructuring plan, Mallya expects to clear all his debts with a nine-year tenure that includes two years of moratorium. About 30 per cent of KFA's total debt will be converted into capital. The debt-recast plan hopes to reduce the interest rate to an average 11 per cent. The banks have reportedly agreed to provide an additional facility of `900 crore subject to Mallya bringing in fresh money. It is speculated that Vijay Mallya brought in his own `500 crore after pledging part of his personal stake in UB. Along with these so-called or real developments, Mallya announced on September 30, 2010 that he was appointing Sanjay Agarwal the CEO of KFA. It may be recalled that Sanjay Agarwal was the CEO of SpiceJet and resigned soon after Kalanithi Maran took over Spice. Agarwal was a nominee of US-based billionaire
Sanjay Agarwal
Wilbur Ross
investor W L Ross, who cashed out of SpiceJet when he sold his stakes to Maran. Perpetually on the lookout for loss-making entities, he first entered SpiceJet and invested $80 million. The investment was conditional in that he got Sanjay Agarwal to become the CEO not only to protect his investment but also ensure a quick turnaround which he ensured as evident from Maran's takeover of SpiceJet. If rumours are to be believed, he has now sent Sanjay Agarwal to KFA and soon will invest `500 crore or nearly $110 million in KFA. Mallya has, incidentally, never been enamoured by his CEOs and hired several since he launched his airline in May 2005. This time, however, there is a twist in the story.
All the earlier CEOs hired and fired were without Rosslike backing and were purely professional. In the case of Sanjay Agarwal, he comes as part of the investment by W L Ross. This very news of Ross' arrival had pushed KFA shares to its historic high like that of SpiceJet when the BSE suddenly soared on FIIs becoming active again. For Sanjay Agarwal, it could indeed be a dream coming true. When he was in SpiceJet towards the last one year of his stint he tried his best to buy Airbus A320s. Now that the Marans have opted for Boeing 737-800s, Sanjay Aggarwal can start playing with his pet theme of acquiring A320s. Perhaps, this will be the first meeting of the minds between Mallya the CMD and Sanjay Agarwal his CEO. As for the role of CEO, better ask the ex-CEOs as Mallya has always believed in being the de facto CEO even though he may appoint a de jure CEO. As regards debt restructuring, Mallya told the AGM of the company on October 1, 2010, that with KFA's EBIDTA margins at 13 per cent, the airline was confident of paying off its debts on time. Accordingly, the debt-equity ratio will also change. For the record, Mallya told the AGM that KFA had got the sanction of RBI for the debt-restructuring exercise and the airline was working with a consortium of banks in this connection. He said, “We are
The FAA team observed that the DGCA had a very sound aircraft certification system in place commensurate with the rules, regulations, working procedures, etc.
INDIA-IRAQ BILATERALS
FROM OUR FILES: FAA Acting Assistant Administrator for International Aviation Dorothy B. Reimold (far left) and Civil Aviation Secretary Nambiar (far right) applaud the exchange of documents by USTDA Acting Director Zak (second from left) and DCGA Director General Nasim Zaidi (third from left) at the USTDA grant signing ceremony for the aviation sector technology standards and processes programme in June last year.
carried out actual work and the FAA reviewed it. In this regard, a six-member team of FAA, USA, visited the DGCA headquarters at New Delhi for a review of the DGCA aircraft certification system and carry out the Technical Assessment.
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India-Iraq bilateral arrangements were finalised on October 18-19. Now both sides can designate multiple airlines for operations between the countries. Earlier, there was provision for only one airline from each side. The designated airlines of each side shall be entitled to operate up to a total of 12 frequencies per week in each direction, with any type of aircraft not exceeding 250 seats. Earlier entitlements were restricted to two services per week. The designated airlines of India are now entitled to operate to Baghdad, Basrah, Al Najaf and one more point that will be mentioned later. Reciprocally, the designated airlines of Iraq can operate to Delhi, Mumbai, Hyderabad and one more point to be specified later. Earlier, only one point of call was available for each side.
AIRPORT LICENSING The Central Government has issued a notification published in the Gazette of India that "no person shall operate
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ESCHEWING PASSENGERS’ CONFIDENCE: An inside view of Kingfisher plane.
currently working with the consortium of banks to restructure the entire debt of the company and in broad terms about 30 per cent of the total debt would be converted by banks into capital. A loan of `735 crore from UB Holdings, which is the parent company to the airline, would also be converted into equity for which the appropriate board resolution had already been passed before the AGM.” The debt recast will take about two months to complete or before end-
November 2010. This was because the banks will have to get approval from their respective boards. KFA plans to raise nearly $ one billion which will include the proposed $250 million GDR. The current debt-equity of KFA is a staggering 17:1. This will undergo a drastic change once the debt recast is approved and implemented. Already, Mallya is in talks with private equity investors and others for his funding plan. Even as Mallya looks for funds to sustain his airline, he has initiated a process
AERODROME LICENSING: DGCA has notified that aerodromes require a license to operate.
scheduled air transport services to/from an aerodrome with effect from June 30, 2011, unless it has been licensed by the Directorate General of Civil Aviation (DGCA). The licensing procedure for airports was initiated as a
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of pruning the workforce and reduce the number of expat pilots. Last year, he shook hands and said good-by to 40 pilots — mostly commanders and senior pilots as his fleet size came down sharply from over 80 to 66. He had also suspended and postponed taking delivery of the new A320 family aircraft and widebody Airbus aircraft. The reason — besides economic slowdown — was also a cash crunch. As for reducing the workforce that he strongly indicated in last October's AGM, he said it was inevitable in any major structural adjustment and was part of the cost-cutting plan which he had initiated in fiscal 2009 -10 and saw savings of `530 crore. On the operational front, Mallya said KFA would reactivate new delivery stream from Airbus Industrie from 2012. “We had delayed delivery of new aircraft due to the economic slowdown and the general overcapacity in India. KFA will look at replacing some of the ageing aircraft with newer aircraft. To meet competition KFA will also apply and has applied for newer international routes but it will be a slow planned international expansion as KFA has already got the okay to join OneWorld Alliance following which it has started an advertisement campaign for connecting nine new international destinations in Europe and elsewhere.” The indication was very clear when he referred to the plans of SpiceJet to fly international and that of IndiGo from next year. “Before they come in and grab additional bilateral rights we want to make sure KFA has already secured these rights,” he remarked.
part of the standards notified by International Civil Aviation Organisation (ICAO) In India, as on date there are about 87 aerodromes used for scheduled flight operations and handling passengers/ cargo traffic operated on hire or reward basis. Keeping in view that the implementation of the amended rule to all these aerodromes would become a gigantic task, a conservative approach was considered and, therefore, while framing the amendment to the rules, a provision was included which required that aerodromes already permitted for operating scheduled air transport services, before the commencement of these amended rules, may continue operation of such services till the aerodrome operator obtained the licence from the DGCA by a date to be notified by the government. In view of the large number of aerodromes to be licensed, a phased approach was taken by India wherein priority was given to licensing the international aerodromes in the first phase. This was also aimed at fulfilling India's obligation to the Chicago Convention. In the subsequent phase, licensing of aerodromes other than international aerodromes has been taken. As on date, 11 international and 12 domestic aerodromes have been licensed.
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SEPTEMBER FREIGHT
FIGURES WORRY IATA
he International Air Transport Association (IATA) recently announced the international traffic results for September 2010. International passenger traffic had a 10.5 per cent year-on-year increase, which is significantly stronger than the 6.5 per cent rise recorded for August 2010. However, international freight traffic, which recorded a 14.8 per cent year-onyear increase, is significantly weaker than the 19.0 per cent rise recorded in August. The contrast between the performance of freight and passenger markets provides a mixed picture for industry performance. Seasonally adjusted figures show that, compared to August, passenger traffic expanded by 2.1 per cent while freight markets contracted by an equal 2.1 per cent. The rebound in growth in passenger markets during September can be attributed to normal volatility in travel patterns accentuated by special factors like the Ramzan holidays. Passenger
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capacity expanded by 7.3 per cent, below the 10.5 per cent growth in volumes, pushing global load factors up to 80 per cent. This is a significant improvement on the 77.7 per cent recorded for September last year. While North American carriers saw their traffic climb back to prerecession (early 2008) levels during the month with an 11.1 per cent increase in passenger demand compared to the previous September, European carriers met an 8.4 per cent increase in demand over the previous year with a 5.9 per cent increase in capacity. High growth was recorded by the AsiaPacific carriers, which posted an 8.6 per cent traffic increase over the previous September against a capacity increase of 6.9 per cent. While the region led the recovery with an early surge in demand, growth in 2010 has been largely flat. Topping the list were Middle Eastern carriers leading the industry growth with a 23.9 per cent increase compared to 2009. Nonetheless, load factors of 76.8 per cent were below the industry's
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80 per cent performance. As for freight, the markets are expected to weaken towards the year-end and September's decline was larger than anticipated. Consumer and business confidence remain weak in many parts of the world. Re-stocking lifted freight markets earlier in the year, but this has not been followed by spending to solidify the economic recovery. Compared to September 2009, freight capacity has increased by 11.9 per cent, below the 14.8 per cent increase volumes, pushing cargo load factors to 52.4 per cent. "It is good news that the recovery in passenger markets continued in September. But the freight numbers are worrying. Freight activity has fallen 6 per cent since May's post-crisis peak. What we see in air cargo markets is inevitably reflected in the broader economy," said Giovanni Bisignani, IATA's Director General and CEO. As international air cargo accounts for 35 per cent of the value of goods traded internationally, it is a leading indicator of economic activity.
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PERSPECTIVE
ICAO NOD TO STABILISE CARBON EMISSIONS he International Civil Aviation Organisation (ICAO) has achieved the first global governmental agreement with aspirational goals to stabilise carbon emissions. The achievement was formalised in a resolution of the 37th ICAO Assembly, which concluded its deliberations in Montreal recently. The ICAO resolution calls for: Improving fuel efficiency by 2 per cent annually to 2050; Striving to achieve a collective medium-term aspirational goal of capping aviation’s carbon emissions from 2020; and, A global CO2 standard for aircraft engines with a target date of 2013 The ICAO resolution also calls for the development of a global framework on market-based (economic) measures by the 38th Assembly (2013) based on 15 agreed principles. These principles are designed to:
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Minimise m a r k e t distortions; Safeguard the fair treatment of aviation relative to other sectors; Ensure that aviation’s emissions are accounted for only once; and Recognise both past and future efforts of carriers. Commenting on the agreement, Giovanni Bisignani, IATA’s Director General and CEO, said: "Governments have taken an historic decision. For the first time, we have globally agreed aspirational goals to stabilise emissions. No other industry sector has a similar globally agreed framework for managing its response to climate change in a manner that takes into consideration the needs of both developed and developing states. Moreover, it recognises the need for
governments and industry to work together. This is a good first step that prepares the way for future achievements." He went on to point out: "A long journey still lies ahead. Industry’s ambitious targets are still ahead of governments. Our commitment to cut emissions in half by 2050 compared to 2005 remains the global benchmark. The entire aviation industry is committed to working under the leadership of ICAO as we move forward to achieve both the aspirations outlined in today’s agreement and the industry’s targets. We will take this strong message to the United Nation Framework Convention on Climate Change in Cancun later this year." In addition to this global agreement on environment, the ICAO Assembly marked notable progress with a global declaration on security and a milestone agreement on sharing safety information among IATA, ICAO, the EU and the United States.
EUROCOPTER BULLISH ON INDIA urocopter will form an Indian subsidiary and set up an engineering centre in Bengaluru next year to support its global design and development work. The helicopter maker will
of state-run Pawan Hans Helicopters Ltd, which includes 28 AS365 Dauphins, said Eurocopter India also build a maintenance, repair and Pvt. Ltd. Chief Executive Marieoverhaul centre for its helicopters in Agnes Veve. India, primarily to service the fleet The engineering centre will be the second for EADS in India. It opened a branch of its research and development unit — EADS Innovation Works — in Bengaluru in 2009. The branch was set up as part of EADS's Airbus Engineering Centre to manage research and technology projects for its business units. The helicopter maker is increasing its focus on India, where it expects to sell up to 25 civilian helicopters — about half the market — a year from 2015 onwards. BRANCHING OUT: Eurocopter’s Indian counterpart will be involved in maintenance and research.
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SIKORSKY EYES INDIAN CORPORATES esides Indian defence, Sikorsky Aircraft Corporation, a subsidiary of United Technologies Corp, USA, has plans to sell its helicopters to the country’s corporate sector. The chopper maker is also set to close a deal of supplying 16 helicopters worth $300 — 500 million to the Indian Navy by next year-end. According to AVM Walia, Managing Director, Sikorsky Aircraft Corporation, Asia and South Asia, there will be a huge demand of 400 to 500 helicopters in the
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country. “There will be a huge requirement of helicopters in various sectors. Oil and natural gas, emergency medical services, pilgrim tourism fields are opening up. In my perspective, there will be a requirement of 400 to 500 helicopters of various categories in India alone. Sikorsky definitely expects a good share of it and it may not be very high,” Walia told PTI. He said the company had already supplied five choppers to different corporate and high net worth individuals.
IATA AND SES TARGETS he International Air Transport Association (IATA) is disappointed that Europe’s Air Navigation Service Providers (ANSPs) labelled the proposed Single European Sky (SES) performance targets for 2010-2014 as “unrealistic” in a statement issued through the Civil Air Navigation Services Organization (CANSO). According to Giovanni Bisignani, IATA's Director General and CEO: “Europe's air traffic management is a mess and it needs to get better. The need for Europe to achieve the efficiencies of the Single European Sky was evident for the whole world during April's volcanic ash shutdown. And passengers suffer daily from air traffic control delays or circuitous flight routings.” “The SES objective is a 50 per cent cut in air traffic management costs by 2020 and is critical for a competitive European air transport sector. It is very disappointing that the ANSPs are beginning to complain about initial targets which are simply to absorb the costs of growth with efficiency gains,” said Bisignani.
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SHORT TAKES CSERIES IS COMPELLING AMERICAN Airlines chief executive Gerard Arpey believes the Bombardier CSeries is “definitely worth considering” as the carrier looks at its growth through 2020. Using that rationale as a baseline, Arpey states the CSeries “is an interesting airplane”. Later, Arpey called the aircraft intriguing and stated the airframe-engine combination “does look compelling”. Any decision regarding introducing new aircraft types at American depends on discussions with pilots, but Arpey believes aspects of the CSeries could “be of interest to us and our pilots”.
Gerard Arpey
AMADEUS ON ANCILLARY REVENUES AMADEUS has announced a further growth prediction, encouraging airlines to think “end-to-end” to turn ancillary revenues potentially worth €18.4 billion ($22.6 billion) worldwide into additional profit. The further growth is expected off the back of ancillary services sold through high-yield travel agency channels, the company announced in the preliminary results of the Amadeus Guide to Ancillary Revenue by IdeaWorks 2010. Working with Ideaworks, a consultancy group focussed on airline ancillary revenues, Amadeus said one of the major findings of the study was that airline ancillary revenue is expected to soar to €18.4 billion ($22.6 billion) worldwide.
HIGH-SPEED BROADBAND ON BBJ BOEING Business Jets has announced the first certification and installation of Panasonic Avionics Corporation's in-flight wireless high-speed broadband service, eXConnect, on a Boeing Business Jet (BBJ) 737 aircraft. As part of the installation agreement, Panasonic will use the privately-owned BBJ for ongoing testing and validation, as well as for live demonstrations. The system supports a wide range of passenger and crew applications including very high-speed internet access to passengers anywhere in the world at speeds of up to 50 Mbps to the aircraft. That's about 100 times the speed of the fastest Internet currently available on airplanes. The fuselage-mounted antenna communicates through a global network of satellites and provides higher data rates than tail-mounted antennas traditionally used on business aviation aircraft. The BBJ is ideally suited for carrying a larger and more capable antenna than traditional sized business jets, so global coverage is possible.
INFLIGHT INTERNET SERVICE: Passengers will have the privilege of using high-speed internet service on a Boeing Business Jet 737 aircraft.
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TRAFFIC DATA MARKET SHARE
VARIOUS REASONS FOR CANCELLATIONS
Airline-wise details of market share of scheduled domestic airlines for the month of September 2010 is given below:
CAPACITY VS DEMAND Analysis of Capacity (ASKM) and Demand (RPKM) data on year-to-year basis indicates that trend of increase in both the capacity and demand continued in the month of September 2010 also.
Festive season=
healthy traffic VARIOUS REASONS FOR PASSENGER COMPLAINTS
PASSENGER GROWTH Passengers carried by domestic airlines from January to September, 2010 were 373.20 lakh as against 314.85 lakh in the corresponding period of year 2009 thereby registering a growth of + 18.5 per cent.
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CANCELLATIONS The overall cancellation rate of scheduled domestic airlines for the month of September 2010 has been 2.3 per cent. Airline-wise details of cancellations are as follows:
PASSENGER COMPLAINTS DURING THE MONTH During September 2010, a total of 1009 passenger-related complaints had been received by the scheduled domestic airlines. The number of complaints per 10,000 passengers carried for the month of September 2010 has been 2.6 carried. The airline-wise details are as follows:
SEAT FACTOR The seat factors of various scheduled domestic airlines in the month of September 2010 are as follows:
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omestic airlines registered a staggering 11.6 per cent growth in passenger traffic in September, 2010, thanks to the festive season. Analysis of capacity (ASKM) and demand (RPKM) data on year-to-year basis indicates that the trend of increase in both capacity and demand continued in September 2010 too. The total domestic passengers carried by the scheduled airlines in the month were 39.10 lakh. Passengers carried by domestic airlines from January to September, 2010 were 373.20 lakh as against 314.85 lakh in the corresponding period of year 2009 thereby registering a growth of plus 18.5 per cent. The break-up for the month is Air India (Domestic): 7.31 lakh; Jet Airways: 7.61 lakh; JetLite: 2.90 lakh; Kingfisher: 7.73 lakh; SpiceJet: 4.92 lakh; GoAir: 2.28 lakh and IndiGo: 6.35 lakh. The percentage share of the carriers in the month is Air India (Domestic): 18.7 per cent; Jet Airways: 19.5 per cent; JetLite: 7.4 per cent; Kingfisher: 19.8 per cent; SpiceJet: 12.6 per cent; GoAir: 5.8 per cent and IndiGo: 16.2 per cent. The seat factor of the domestic airlines was: Air India (Domestic): 66.7 per cent; Jet Airways: 70.2 per cent; JetLite: 71.8 per cent; Kingfisher: 85.9 per cent; SpiceJet: 70.2 per cent; GoAir: 70 per cent and IndiGo: 72.3 per cent. September saw a comparatively lower seat factor primarily due to lean season. The overall cancellation rate of scheduled domestic airlines for the month was 2.3 per cent. During the month, 1,009 passengerrelated complaints had been received by the scheduled domestic airlines. The number of complaints per 10,000 passengers carried for the month was 2.6. Jet Airways recorded the highest numbers of passenger complaints while NACIL(I) and Alliance was the lowest in terms of passenger complaints. Staff misbehaviour, lost baggage, refund of air ticket were primarily the reasons for most of the passenger complaints. The overall On-Time Performance (OTP) of scheduled domestic airlines for the month was 90 per cent. It has been found that a majority of delays have been attributed to ‘reactionary’. At the time of compilation of this report, OTP data of 60 carriers was received. The overall On-Time Performance (OTP) of these 60 carriers for the month has been 77.9 per cent in departures and 75.9 per cent in arrivals.
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Jai Ho or Juhu Ho
The proposal to optimise the operations at Juhu airport, adjacent to Mumbai airport, and reduce the load there is an imaginative one. However, as R Krishnan argues, there are several issues that need to be resolved before the proposal can really take off the ground. he Airports Authority of India (AAI) at its Board meeting in Mumbai on October 20, 2010, approved a preliminary proposal to rebuild Juhu airport. If carried to its logical conclusion, a revamped Juhu airport will go a long way to decongest Chhatrapati Shivaji International Airport (CSIA) or what is popularly known as the Mumbai airport. As per the inprinciple approval given by the AAI Board, it is proposed to shift smaller aircraft operations — both general aviation and ATR 72 — to Juhu airport to decongest the already overloaded and choked Mumbai airport. Set up in 1928,
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Set up in 1928, Juhu airport is adjacent to Mumbai airport and is now non-functional for commercial operations
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Juhu airport is adjacent to Mumbai airport and is now non-functional for commercial operations. However, it has a very sound helicopter operations and the state-owned Pawan Hans Helicopters Limited (PHHL) has a major heli-base in Juhu airport, which is now functioning largely as a heliport. Incidentally, the Bombay Flying Club is also located at this airport. Soon after the meeting, AAI Chairman V P Agrawal said: “We have given in-principle approval for moving smaller aircraft and ATR 72-type aircraft operations to Juhu airport. The total project cost is estimated to be around `1,500 crore to `2,000 crore and
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the move will decongest Mumbai airport which handled 25.6 million passengers in 2009-10.” The Board meeting was also attended among others by DGCA Dr Nasim Zaidi. Soon after it began to be realised that the existing Mumbai airport will not be able to “take it any more”, frantic efforts were made to get the Navi Mumbai airport project started. But to the misfortune of Maharashtra government headed by Ashok Chavan and the Ministry of Civil Aviation headed by Praful Patel, the new green brigade head Jairam Ramesh and his Ministry of Environment and Forests blocked the Navi Mumbai airport on various environmentally-sensitive issues, including the ones relating to chopping off of a hillock, diversion of two rivers on the site and destruction of critical mangroves. It was in 2009 that Jairam Ramesh appointed a special study by IIT Mumbai to look into the project in detail. The report from the IIT came towards the end of 2009. Based on that, he subsequently set up an Environment Assessment Committee (EAC) that held its so-called final round of talks with the Maharashtra Government from October 21 to 23, 2010. It is now expected that a “final clearance to Navi Mumbai” may be accorded by November 10, 2010. Even as this tamasha goes on, Mumbai airport has announced that it cannot allow any more fresh slots. The reason for this is that the existing airport now has nearly 14 hours out of 24 hours a day “categorised as peak hours”. In September 2010, Executive Director of Jet Airways remarked to the media that it was far too late to find a new airport as the current Mumbai air-
Soon after it began to be realised that the existing Mumbai airport will not be able to “take it any more”, frantic efforts were made to get the Navi Mumbai airport project started
WIN -W WIN SITUATION: Fighting all environment-sensitive issues, Juhu airport is all set for a makeover.
CRUISING HEIGHTS November 2010
port was highly choked. Further, with the new rules of arrival and departure, air traffic movement at Mumbai airport had gone down sharply. The aircraft movement which used to be 36 to 40 arrivals per hour has come down to less than 32. And when the current main runway was under repair and expansion of facilities at the airport is in full swing, it has become a nightmare. No wonder airlines are demanding a parallel runway instead of using the cross runway at Mumbai airport. But it is not possible to build a parallel runway due to various constraints that include the removal of the entire Air India workshop, Jet Airways hangar, etc. Moreover, there are also issues relating to the full length second parallel runway jutting into the road outside the airport and virtually meeting the BSES building across it. Building of the second parallel runway at Mumbai airport will also require the removal of slums from the airport land among other things. While Mumbai airport is supposed to be choked fully for any new landing or take-off by 2014, with passenger traffic saturating, the situation has already got out of hand. It is no wonder that many airlines planning to come to India or increase their frequencies have chosen Delhi which has now beaten Mumbai in traffic movement. This was the main reason for hurrying up the Navi Mumbai airport to take the load off Mumbai airport. But what we now see happening to Navi Mumbai airport clearly suggests that should the Jairam Ramesh-led Ministry of Environment give its clearance to Navi Mumbai airport that is acceptable to all,
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SPECIAL STORY then it will take a minimum of six to eight months for the paperwork relating to the bid invitation, processing and awarding the various packages to complete. Then will begin the construction and it could take not less than four years for the first phase with at least one runway becoming operational. By the time this happens, the existing Mumbai airport would have virtually died of asphyxiation if one could use this extreme word for comparison. On October 26, 2010, after the EAC met with the Maharashtra Government and also visited the Navi Mumbai site, Jairam Ramesh said he would soon meet Praful Patel. Ramesh said CIDCO (The City and Industrial Development Corporation of Maharashtra), the original executor of the Navi Mumbai airport plan and acquirer of land had come a long way and, perhaps, could move even more. His hint was clearly that the hillock would not be chopped, the two rivers would not be diverted and the mangroves will not be uprooted to reclaim land to build the airport. It seemed that all were going back to the same old position that sparked off the original Navi Mumbai airport versus environment battle in the first place. A few days earlier, Praful Patel said there would be no changes in the land covering aeronautical activities, including the passenger and cargo terminal and the two runways of the proposed international airport in Navi Mumbai. CIDCO had proposed some changes in the non-aeronautical activities, like flying club, aviation institute, MRO, bonded warehouse, etc. But as far as his Ministry of Civil Aviation was concerned there was no possibility of any changes in the aeronautical activities, covering 1,200 hectares of the total 1,615 hectares airport zone. There would be no changes in the alignment of the two runways, and terminal buildings. The changes proposed by CIDCO are nonaeronautical activities which will cover 415 hectares. Maharashtra Chief Minister Ashok Chavan the next day said after a meeting with EAC members that “we will do what we can do but 100 per cent compliance is difficult”. So, we have four parties that include Jairam Ramesh, Praful Patel, Ashok Chavan and CIDCO who have conveyed their views in different frequencies which may or may not match. Perhaps, we may have to wait till the second or third week of November 2010 to see what kind of environmental clearance is accorded to the Navi Mumbai airport project by the
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There are various sensitive issues relating to environment involved in the project which are important. We are very hopeful that Navi Mumbai airport will finally see the light of the day.
Navi Mumbai site was selected by the state government due to its proximity to Mumbai, the congestion at the existing airport and phenomenal increase in passenger traffic.
We have made good progress and resolved 70 per cent of the issues. The Expert Appraisal Committee (will meet on November 9 and 10 to have a final look at the compromises.
— Ashok Chavan
— Jairam Ramesh
— Praful Patel
Civil Aviation Minister
The Navi Mumbai airport will remain a pie in the sky till 2015. The existing Mumbai airport will be completely choked in 201112 or nearly four years before the first flight lands at Navi Mumbai airport CRUISING HEIGHTS November 2010
Chief Minister, Maharashtra
Environment Minister
boss of the new green brigade. The above story has been narrated to underline the importance of the fact that Navi Mumbai airport will remain a pie in the sky till 2015. The existing Mumbai airport will be completely choked in 2011-12 or nearly four years before the first flight lands at Navi Mumbai airport. So, where do we go in the interim or even attempt to reduce partially the load off Mumbai airport. Yes, Juhu airport for which AAI took an in-principle decision. But will Juhu airport also script a similar story like Navi Mumbai? We do not know if the green brigade will look for another issue or project to latch on to. Earlier this year, the AAI at the behest of the Ministry of Civil Aviation had engaged KPMG to do a pre-feasibility study on reviving Juhu airport. As per this study, the proposed runway at Juhu airport would be extended on stilts into the nearby Arabian Sea. The runway extension will be done on the basis of the final recommendation of KPMG which proposed that the existing runway be extended from 1,143 metres to 2,020 metres. The new plan envisaged extension of the airstrip into the sea to avoid environmental clearance issues. KPMG suggested using concrete stilts for the runway extension on the
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We have given an in-principle approval for moving smaller aircraft and ATR-72 operations to Juhu airport. Juhu airport is an asset which is underutilised. We are looking at the cost and technical issues of operations. — V P Agrawal
Chairman, Airports Authority of India
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Any development at Juhu would mean better facilities for our operations.All our offshore operations are based out of this facility and any improvement will help us ramp up our capacity . — R K Tyagi
CMD, Pawan Hans
lines of the project being executed at Chennai airport over a nearby river that accommodates the backflow of the monsoon swollen river. If given all clearances today, it will take at least three years, which means Mumbai will be in less of a problem as some load may be shifted to Juhu unlike the long wait for Navi Mumbai. KPMG suggested tilting the Juhu runway clockwise to the north to allow simultaneous operations with Mumbai airport. Further, the existing Juhu airport is open for operations only from 6am to 6pm when visual flying is possible. The airport, additionally, would need Instrument Flight Rules to accommodate small aircraft at all times and an upgrade could become difficult as the time limit for obstruction would be even more stringent. These obstructions would require a detailed study. Even now the Juhu ATC had sought removal of a few obstacles and went to the extent of seeking to bar the movement of fixed wing aircraft to this airport. The obstructions are in the form of high trees and small buildings in the flight path. Under the existing rules, the ATC officials will have to personally talk to people on whose land the trees and buildings are situated. If Juhu airport is upgraded then it
Chhatrapati Shivaji International Airport is the most constrained airport in the world due to paucity of land. As many as 276 acres of airport land is occupied by unauthorised slums. — Sanjay Reddy
Managing Director, MIAL
If Juhu airport is upgraded then it will be able to handle 70 movements of GA and ATRs. AAI has asked KPMG to come out with a short-term, medium-term and long-term plan for Juhu CRUISING HEIGHTS November 2010
will be able to handle 70 movements of GA (General Aviation) and ATRs. AAI has asked KPMG to come out with a short-term, medium-term and long-term plan for Juhu. Notwithstanding all of these, once the in-principle approval is taken forward, a number of environmental studies will become mandatory as the area falls within the Coastal Regulation Zone (CRZ) besides inviting other legal issues like slum removal, removal of obstructing buildings, etc. A survey of the ocean bed will also be necessary. At the end of it all, it remains to be seen if Juhu airport once given all clearances becomes economically feasible or not since even under PPP (Public Private Partnership), the private party investing in the project based on some kind of revenue share with AAI is able to make enough to sustain the business. However, what is not known today is what will happen to the Juhu airport being used as one of India's busiest heliports. Pawan Hans has its helicopter base in Juhu and also there is some private companies have their hangars for some kind of maintenance services to smaller aircraft and will all of them be removed? Most importantly, will there be space for a new terminal? After all, you cannot have passengers waiting for smaller aircraft like ATRs without a terminal hold area. There is also an issue of the Juhu Tara Road over which the proposed extended runway into the sea has to be laid. This would mean that a new underpass will have to be built. More than all these issues, what will be interesting to watch is who will be interested in the PPP model with AAI? In any case, GVK which is the current manager and operator of CSIA or MIAL does not have any right over Juhu even though it has the first right of refusal over Navi Mumbai airport as and when it is tendered for project construction and management/operation. What are the legal issues or implications for GVK-operated MIAL of diverting the smaller fixed wing aircraft both of GA and ATR types to Juhu airport and thereby forgoing future revenue streams? MIAL said it did not wish to comment at this stage on the developments. What happens to the helicopter operations which are becoming extremely difficult to be accommodated by private operators both in Delhi and Mumbai? This is notwithstanding the so-called new helicopter corridors being streamlined by the DGCA. We don't know whether we should say Jai Ho or Juhu Ho!
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Busy bizjet
business
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WHILE THE ECONOMIC DOWNTURN AFFECTED COMMERCIAL AVIATION, THE GENERAL AVIATION SECTOR REMAINED VIRTUALLY UNTOUCHED. WHILE DEMAND FROM ACROSS THE WORLD IS PICKING UP, BIZJET MANUFACTURERS ARE WORKING HARD TO ROLL OUT TOP-OF-THE-CLASS FLYING MACHINES. THE INTEREST AND PARTICIPATION AT THE RECENT ATLANTA, USA, CONVENTION OF THE NATIONAL BUSINESS AVIATION ASSOCIATION ARE INDICATION ENOUGH THAT THE BUSINESS HAS NOT ONLY TAKEN OFF BUT IS ON A TURBULENCE-FREE FLIGHT PATH. A SPECIAL REPORT ON THE STATE OF THE BIZJET SECTOR WITH INPUTS FROM CORRESPONDENTS. jets, down 16-17 per cent from 849 in 2009 mainly due to continued global economic weakness as well as overarching concerns about government debt, austerity programmes, export growth, financing costs, and general availability. Expected deliveries in 2011 will also fall below 700. Five-year buyer interest has softened from 2009, and new purchase plans are slightly below 2007-08 levels observed in the 2007-08 industry growth period. However, based on survey responses and factoring in economic growth forecasts, the industry should begin another period of expansion in 2012.
F
ar away from downtown Tokyo where Haneda airport is located, the head of the Japanese Business Aviation announced at Atlanta last month during the National Business Aviation Association’s (NBAA) 63rd annual meeting and convention, that finally the daytime ban on business jet access to Haneda airport in Tokyo had been removed. There were whoops of delight for a country where the total private aircraft fleet is just about fifty-plus. But it is no surprise if one considers that the nearest airports for business aircraft are Narita and Nagoya — 90 and 120 minutes away, respectively. In 2007, there were 1,003 business aviation movements at Haneda that represented about 0.34 per cent of the airport’s total movements that will go up to three per cent and 10,200 by the end of the year. That’s a whopping growth of over a 1000 per cent and shows the power that general aviation has on the whole business. And it’s the same elsewhere.
The annual Honeywell Business Aviation Outlook is like a bible for the industry and in its 19th edition launched at the just-concluded NBAA’s four-day meet at Atlanta, Honeywell forecasts delivery of approximately 11,000 new business jets from 2010 through 2020, generating estimated industry sales in excess of $225 billion. This represents approximately a 10 per cent increase in total expected industry sales value versus the prior ten-year horizon forecast in Honeywell’s Business Aviation Outlook in 2009. For 2010, Honeywell Aerospace estimates deliveries of 675-700 new business
HAWKER BEECHCRAFT
The new light jet from Hawker Beechcraft — the Hawker 200 — is a completely reconfigured and revamped Premier II that the manufacturer haves relaunched after in-d depth consultation with customers. The result, according to the company, is an economical, speedy light jet with a wide cabin cross section. The company also exhibited its King Air 250 — the latest variant of the best selling turboprop — this time with increased shortfield p erformance. H awker B eechcraft C orporation a lso r eceived recognition for setting six world speed records in its flagship Hawker 4000 business jet between October 2009 and April 2010. The records were all set in the “Speed Over a Recognized Course” category. The six records were established between city pairs in North America, Europe and Asia. The most recent was accomplished on April 29, 2010, from Bedford, Mass., to London, England, a distance of 3,284 miles at an average speed of 542.70 miles per hour.
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COVER STORY Nuggets from the report
BOMBARDIER
Bombardier launched two more editions of its global long-rrange business jet family. The first: Global 7000 has a bigger ‘four-zzone’ cabin, GE Tech X engines and a brand new wing that helps extend its range to 7,300 nm. What this translates into is literally nonstop from New York to Dubai, Beijing to Washington and New York to Mumbai! The second one: Global 8000 can fly slightly longer with a range of 7899 nm. This is a record for a business jet and puts city pairs like Sydney and Los Angeles within reach. The Global 7000 and Global 8000 originally had a single design but the wish list from customers was different (bigger cabin vs longer range) and prompted Bombardier to separate it into two aircraft. Both aircraft share the same wing, and same price ($65m), with the 7000 version to have a first flight and entry into service approximately one year ahead of the 8000. Fuel efficiency: between 14 per cent and 18 per cent.
CESSNA
Cessna had a new product that was really a recast Citation X. It’s now called the Citation Ten and the highlights are a slightly longer fuselage, elliptical winglets and updated Rolls-R Royce AE3007C2. The idea is to get back to its premier position as the fastest bizjet in the market. There has been plenty of work done with the interiors: There has been a huge amount of updation on the inside with one report describing the new Garmin 5000 glass cockpit as belonging “in a stealth fighter”. The cabin management system to uses fibre-o optics and the aircraft is expected to get into service in 2013 with the first flight in 2011.
International demand now accounts for 40-45 per cent of the new aircraft purchase plans projected over the next five years after just exceeding 50 per cent in the 2009 survey. Honeywell forecasts that international deliveries will continue to reflect this global shift in share, which is well above the current international business jet fleet share. Aggregating all regions, five-year purchase expectations are now at a 30 per cent level. Purchase expectations trended slightly up in North America, but retreated in other regions, most noticeably in Europe and in the Middle -East. Latin American and Asian results softened to a lesser extent. The survey still indicates a potential demand for more than 5,000 aircraft globally during the 2011-2015 period, excluding demand from fractional own-
Purchase expectations trended slightly up in North America, but retreated in other regions, most noticeably in Europe and in the Middle-East ership or branded charter start-up businesses and piston aircraft owner tradeups into jet aircraft. The survey also showed a modest but steady shift to large cabin models in overall buying plans. This result aligns with the relatively strong performance of large The used-jet environment has shown modest improvement but remains challenging in the near-term. Over the last year, inventories of used jets for sale as a per cent of the active fleet have declined by about three points off the peak levels seen in early 2009 and prices are still significantly lower than 2008 averages. The relatively mild initial impact of the global recession on major Asian economies such as China and India is still helping support a more optimistic level of interest in business jets than in other regions. On the Continued on page 38
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Smoother Ride technology softens the bumps to put mind and body at ease. A dream come true. www.newairplane.com/smoother
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Smoother Ride technology softens the bumps to put mind and body at ease. A dream come true. www.newairplane.com/smoother
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COVER STORY Continued from page 34
other hand, the slower recovery of major trading partner economies and some concerns regarding export-fuelled growth and Chinese real-estate markets has increased the caution level operators displayed in the 2010 survey.
According to Honeywell, “Data on private jet shipments from the General Aircraft Manufacturers Association bears this out. While jet shipments are off sharply in general, the so-called heavy-metal niche, where luxury and long-haul range are cherished, is doing fine.” Bombardier, for example, will deliver 51 of its $40 million Global Express jets this year, the same number as last year, and up from 46 in 2008. In 2009, Gulfstream delivered 88 of its G300 through
Worldwide demand is growing for bigger planes too, converted from commercial airliners G550 models, which cost $33 million to $50 million — up from 79 in 2008. And Dassault is expected to deliver 32 of its $50 million Falcon 7X models this year, up from 21 last year. Meanwhile, worldwide demand is growing for even bigger planes, converted from commercial airliners. The two major commercial airliner makers, Boeing and Airbus, already sell private versions of their 737 and A320 commercial planes, respectively. And as airlines have retired a large number of 50-seat regional jets in recent years, some of those used planes are being scooped up and converted.
Seating specialist BE Aerospace had brought to the NBAA show what they described as a ‘zero-gravity’ chair. Was this some kind of ejection seat for space tourists? The reality was a reclining seat that elevates the knees above the heart, improving breathing and promoting the ultimate in relaxation. Already catching on in the consumer market for the home, B/E has adapted it for the wide cabin large VIP aircraft market. B/E also envisages that the
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GULFSTREAM
Gulfstream has outfitted its flagship G650 with a new cabin interior and the smaller G250 flew in from Tel Aviv. This super mid-ssize jet accomplished its first trans-A Atlantic crossing flying 6,192 nautical miles in three legs over 14 and a half hours. On the G650, Gulfstream has innovated an iPod touch/iPhone cabin management system. The company also displayed the lavish interior of a previously announced new top-sshelf model, the $60 million Gulfstream G650.The USP is that it can fly nearly at the speed of sound. Gulfstream already has about 100 firm orders for the jet.
HONDA
Honda released an update to its HondaJet advanced light jet programme, including production cockpit and cabin designs featuring production parts, reflecting the quality of materials, colours and finishes. The company also announced a ground testing underway on its first conforming flight test aircraft and static structural stress testing in progress on its second. It announced the commencement of assembly of its third conforming flight test aircraft. The HondaJet, an entry-llevel jet is particularly innovative as it marries a composite fuselage, (with laminar flow nose section), new wing engine placement. This configuration, Honda/GE engines and above-w not seen since the German DVFW-6 614, promises the HondaJet reduced wing drag as well as a quieter cabin. The aircraft, to be produced in the US, is expected to be certificated in the third quarter of 2012.
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Bombardier’s commitment to innovation, ongoing investment in product development strategy and strength as the industry leader are key contributors to our overall success. By extending this great aircraft family, we are once again offering a business jet travel experience that is unmatched and ahead of its time. — Steve Ridolfi
President, Bombardier Business Aircraft
When you consider today’s market realities, we’re doing relatively well. Our new product development programmes for the Gulfstream G650 and G250 are on track. Our flight-test aircraft are performing to expectations. Our large-cabin production rates have remained stable, due, in part, to the strength of fastergrowing international regions. — Joe Lombardo Gulfstream President
We delivered 67 aircraft in the first three quarters and on track to deliver another 18 by year end. Dassault’s new “baby jet” is going at full speed and aerodynamic configurations have been frozen. India, Brazil and China remain very active markets and one expects growth in business jet demand in these regions to be a long-term trend.
This year, operators outside North America have become more cautious about the strength and pace of the recovery. Despite a torpid recovery, there have been relatively few programme cancellations and delays. So the pipeline of new high-value models supporting longterm growth remains strong.
— Dassault
President (Business and General Aviation), Honeywell Aerospace.
Chief Executive Charles Edelstenne
concept is scalable for other bizjets as well as Premium Class passengers on airlines too. You may not need to book a ticket with Virgin Galactic to experience zero-gravity.
Embraer is targeting the wide-body VVIP market currently dominated by Boeing and Airbus. Embraer’s answer is the Lineage 1000 — a modified E190 airliner. Though slimmer than a BBJ, Embraer has paid special attention to the interior which it has divided into five ‘zones’ to allow maximum flexibility and privacy. The zones can include a full six-person dining area, galley, lounge, bedroom and even an entrance lobby, where the crew can relax and enjoy downtime — separated from the passengers. Up to 20 options per zone can be selected, giving a possible 6,000 combinations of luxury interiors. The Lineage 1000 also features a heated floor — should you want to walk around barefoot at 35,000ft. Finally, the Lineage 1000 also features a large walk-in baggage
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— Rob Wilson
compartment at the rear — allowing access in flight. Another advantage is that it is certificated for steep approaches at London City — opening up this key airport.
Embraer is targeting the widebody VVIP market currently dominated by Boeing and Airbus. Embraer’s answer is the Lineage 1000 — a modified E190 airliner CRUISING HEIGHTS November 2010
TechX engine from GE GE Aviation revealed more details of its TechX powerplant for Bombardier’s new Global 7000 and 8000 models at the show. The new business jet engine will incorporate technologies from GE’s commercial and military engines, developed with the company’s annual $1 billion investment in research and development. GE says the TechX engine will offer eight per cent lower specific fuel consumption than current business jet engines and meet environmental requirements with a 50 per cent margin. The TechX engine will produce around 16,500lb of thrust and will have a “Blisk” technology fan, consisting of a single piece of metal with a diameter of 132cm, a unique case among engines of its size. This type of fan should eliminate
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COMING: HIGH GROWTH RATE FROM INDIA
NetJets is making an investment in the future, and we continue to be guided by our vision to maintain our leadership position by delivering extraordinary safety and service to our owners. — David Sokol
Chairman and CEO of NetJets.
In addition to more than 500 flight hours, we have accumulated on the proof of concept HondaJet, the successful completion of this robust range of static structural stress tests on the conforming aircraft significantly reinforces the advantages of the HondaJet’s advanced design. — Michimasa Fujino
President and CEO, Honda Aircraft Company
Business aviation has always followed the economic cycle. There’s never been a period when the economy has expanded and we’ve contracted, or a period where it’s contracted and we’ve expanded. We go together through the cycle. I think there is a sense that business aviation is now a global industry. — NBAA
President Ed Bolen
the balancing problem experienced by hub and blade rotors, reducing vibration. It would also be more resistant to damages. It will be produced in 2013, the certification testing will begin next year and, since 2016, it will be used on the Bombardier aircraft model Global 7000 and 8000.
NetJets deal for 125 Phenom 300s NetJets iinked a deal with Embraer for up to 125 Phenom 300 light jets.The agreement is for 50 firm orders plus an additional 75 options, with first delivery expected in 2013. The order marks a return to expansion by NetJets after the global economy nearly decimated the fractional ownership industry, and could provide a respite for furloughed business aviation pilots.With Embraer’s Phenom 100 and 300 covering around 600 units, split twothirds, one-third between both jets, respectively, the NetJets agreement is the second largest order for the new light jet, and could be worth more than $1 billion.
India is projected to become the third largest economy in the world by 2020, so the country clearly demonstrates a very high growth potential for General Aviation CRUISING HEIGHTS November 2010
One of the biggest players in the GA market in India and this part of the world is InterGlobe General Aviation (IGGA). Launched in 2007, it is a group company of InterGlobe Enterprises. IGGA exclusively represents Hawker Beechcraft, Sikorsky Helicopters, Dornier Seaplane Company and Pacific Aerospace within SAARC. We spoke to President and CEO, Nigel Harwood on his view of the market in India today. He said, “India is projected to become the third largest economy in the world by 2020, so the country clearly demonstrates a very high growth potential for General Aviation. Now more than ever, Indian corporates are realising the benefits of owning an aircraft as a business tool, which contributes to the bottom line. Furthermore, for such a large country, connectivity is still an issue and this is where we also see potential in the coming years, particularly the rural areas and emerging cities. To share some numbers with you, over the last six months alone, we have sold 12 aircraft, testimony to our products which offer the highest quality and value for money.”
Avionics leader Rockwell Collins revealed it spends some 20 per cent of revenues on R&D. The fruits of this research were evident in its launch of Ascend — an integrated flight operations information sychronisation. This integrates all the back-office functions like flight-planning, dispatch, fuel buying, and even maintenance functions into one-stop service. Rockwell envisages it keeping corporate owners and operators automatically updated in the future — massively simplfying life and generating efficencies. The company also revealed new details on its Pro Line Fusion glass cockpit - set to equip the CSeries and MRJ among others. In particular, the Fusion now boasts synthetic 3D terrain overlaid on the HUD — with airports being visible as ‘domes’ massively increasingly situational awareness. Further on in the future things could get even more exciting with the entire windshield could be used as a HUD.
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Missing the
R Krishnan
revenue bus Most of the country's air carriers are in varying degrees of debt. If they do not take adequate measures now, they could lose the vital revenue streams that could boost their bottom lines, comments R Krishnan. ven as various Indian carriers are awaiting the Reserve Bank of India’s nod and as its logical extension the signal from commercial banks concerned that have forwarded loans to the airlines, for a debt recast, it appears that some of the debtor airlines are indeed missing out on the rising action in the aviation business. This applies to both domestic and foreign flights. While domestic passenger carriage traffic has shown a rise of nearly 19 per cent in the first nine months (January-September) of 2010, IATA announced that international passenger traffic for September 2010 rose by 10.5 per cent year-on-year basis, which was significantly stronger than the 6.5 per cent increase, recorded in August. Describing it as good news, IATA said Asia-Pacific carriers posted an 8.6 per cent traffic increase over September 2009 against a capacity increase of 6.9 per cent. But overall the traffic growth in the region remained two per cent below the pre-crisis peak of early 2008. Middle-Eastern carriers led industry growth by 23.9 per cent compared to the same month of 2009. In the case of North America, specially the US, there is good news with passenger traffic growth outstripping capacity and load factors rising to 84 per cent in September 2010. In the US, leading aircraft manufacturer Boeing has reported profits for the third quarter while mega carriers like American, Continental have also posted profits after nearly three years of severe drubbing. This is also true partly of European carriers which saw their average load factors touching 82.6 per cent. In comparison, the domestic scenario in India was not as rosy. Looked at from the point of view of load factors in September 2010, Kingfisher topped with 85 per cent followed by IndiGo with 72.3 per cent, JetLite 71.8 per cent, Jet Airways 70.2 per cent,
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All the Indian carriers are deep in debt totalling nearly `60,000 crore and the interest cost of servicing the debt is becoming a major issue, leave alone the principal 42
CRUISING HEIGHTS November 2010
SpiceJet 70.2 per cent, GoAir 70 per cent and Air India 66.7 per cent, respectively. Though the traffic growth has picked up, the rate of growth is nowhere near what it was before the recession. Once bitten, twice shy domestic carriers are exercising great care in opting for rapid fleet expansion or capacity which landed them in trouble soon after the economic slowdown. As the dark clouds are clearing, there is talk again among Indian carriers to add to capacity. We have already seen SpiceJet and IndiGo receiving approval to add 30 Boeing 737-800s and 14 A320s, respectively. GoAir also added a couple of A320s and its flying fleet is 10 strong now. JetLite is also getting a few of its earlier postponed Boeing 737800s. Kingfisher Airlines is seriously contemplating to acquire new aircraft, partly as replacement of older fleet and partly to add new capacity. Air India, which has already inducted all its ordered 43 Airbus A320 family aircraft, has invited bids to lease four to six more A330-200s and 10 A320s. What differentiates the pre-economic slowdown acquisition plans to the post-slowdown moves in India is the huge debt that Indian carriers have run up in 2009-2010 compared to the ‘All is well series’ during the boom in 2005-06. What does this mean for airlines economics? True, no airline in the world buys aircraft paying hard cash from its own coffers. It is always a debt route where weak airlines require state guarantees if they are owned by the government like Air India, or other collateral, perhaps, even the aircraft that is being acquired in the case of non-state privately-owned airlines. All the Indian carriers are deep in debt totalling nearly `60,000 crore and the interest cost of servicing the debt is becoming a major issue, leave alone the principal. It is in this context that one needs to look
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BREATHING SPACE FOR AILING CARRIERS: Domestic carriers at an airport — almost all of them are deep in debt.
at the frantic cries of Vijay Mallya who is desparately seeking the RBI and other banks’ nods to restructure his debt that could possibly allow a two-year moratorium and at the same time help him bring down his interest that is currently at 13 per cent or more. Mallya knows well that he cannot go in for further dilution of his equity as his airlines’ net worth is negative. Jet Airways is in a far better shape but Naresh Goyal also needs money to pay for the aircraft-acquired-related debt and is now awaiting official permission to place nearly $400 million to QIPs. In any case compared to the `1,150, he sold his share in February 2005 in his IPO, the Jet scrip is around `800 which is far better than the `200 it had fallen to during the recession two years ago. IndiGo is much better placed and SpiceJet is also fairly well placed as it is now owned by Sun TV boss Kalanithi Maran who is certainly cash rich. In the case of Maran, however, his debt innings will open when he formally moves to acquire his 30 new Boeing 737-800s. IndiGo is thinking of an IPO but may not go in for it now and could explore other avenues to raise funds. Jet Airways is keen to raise funds abroad through an ECB to retire its rupee loans for which it is still awaiting permission from the government. Air India is also seriously debt-ridden but it is for its owner, the Government of India, to decide
what needs to be done. It is only Kingfisher Airlines, perhaps, that seriously needs a debt recast. Looked at dispassionately, every Indian carrier needs to tide over its debt problem, which is of varying degrees. But in getting more money through the loan route to repay earlier borrowings as well as meet working capital expenses besides setting aside funds for new aircraft purchases, the bottom lines of Indian carriers could once again nosedive — especially at a time when foreign carriers are coming back to India and reviving their suspended flights to various destinations. As for the domestic scene, the reportedly improving load factors, which all private carriers other than state-owned Air India is experiencing, there could be some trouble if the new orders they are placing gets bunched at the time of delivery. For Kingfisher Airlines, which expects to get its new deliveries from 2012, the situation is not going to be any better as by missing out the action now, it will deny itself the vital revenues streams which it badly needs. This could be true for other airlines as well — although in different measures. Maybe the new year 2011 could bring in more clarity to the hazy picture once the debt issues are settled — albeit partially. (Veteran journalist and long-time aviation watcher R Krishnan is Consulting Editor at CH. He can be reached at rkrishnanji@yahoo.com.) CRUISING HEIGHTS November 2010
Indian carriers need to tide over their debt problems but in getting more money through the loan route to repay earlier borrowings, the bottom lines of Indian carriers could once again nosedive 43
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M ther of all footfalls magine sinking your tired feet — after an almost 16-hour air journey from New York to Delhi — in a comfortable, soft and caressing carpeted walkway. The feeling is not merely one of coming back home but also one of wonder. Wonder because the colours and design intricately and subtly woven in the carpet have that power to raise the drowsiest of eyes and spirits. How successful the space is in feeling open yet warm and with dimension to a large extent depends on the carpet design. T3 at Delhi is a great example of this. Welcome to the world of carpets at airports! Though the humble carpet covers most of the floor area of our air-
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CYNOSURE OF ALL EYES: Beautifully woven carpet that adorns Delhi airport’s T3.
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ports, little is spoken — and far less written — about it. But the kind of effort that goes to design, weave and lay out the carpet can well be compared to a military general planning a major offensive. The 175,000sq m of custom Axminster carpet in the gleaming new showpiece Terminal 3 at Delhi tells a story that is far from being dry as the dust they attract. It is one of colour, intricate measurements and long hours of research. The result is a spectacular impression of a nation’s gateway opening to provide the weary travellers with their first glimpse of a country. Perhaps, what is more important is the fact that the carpet equalling 24 football
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FLIERS OFTEN DO NOT NOTICE THE HUMBLE CARPET THEY ARE ON WHEN THEY LAND AT AN AIRPORT TERMINAL. IT REQUIRES AN INTRICATE DESIGN SENSE AND COLOURS TO CREATE A CARPET THAT CAN COVER SOMETHING LIKE 24 FOOTBALL FIELDS — AND BEAR THE WEIGHT OF 30 MILLION PAIRS OF TRAVELLERS FEET EVERY YEAR. TIRTHANKAR GHOSH PIECES TOGETHER THE GREAT AXMINSTER SAGA THAT WENT INTO THE CREATION OF THE CARPET IN DELHI’S TERMINAL 3. fields in area and believed to be the world’s single largest commercial carpet order was designed, created and woven by Indians — once again emphasising the fact that our work is as good as the best in the world — by Brintons, a family-owned carpet-manufacturing business that was founded in 1783. Headquartered in Britain, the company believes in the concept of thinking global and acting locally, hence the designing and weaving in Pune. The process began way back in 2007 (see That’s how the carpet rolled out). The carpet had to be ready for the terminal’s opening before the 2010 Commonwealth Games. Construction
THE ULTIMATE CREATOR: One of the weaving machines at Brintons’ Pune unit.
CRUISING HEIGHTS November 2010
at the eighth largest integrated passenger airport terminal in the world was going on at breakneck speed. Brintons was chosen because it had a proven reputation for delivering large-scale airport projects all around the world on time and within the budget. The brief, therefore, to the design-driven company was simple: T3’s carpet, said DIAL (Delhi International Airport Limited), should create a strong first impression by illustrating Delhi’s rich historical past as well as its modern and vibrant standing in today’s world. Encapsulating all that into a set of designs seemed, at first, to be insurmountable. Making the task even more difficult was the fact that a number of designs had to be worked out for use in the departures area, gate lounges, ramps and nodes, arrivals area, domestic retail area and the international retail area. In fact, most carpet designers — working with designs for public places — go through a long process before the weaving starts and Brintons was no exception. The client first lists what he wants from the designers. They often prepare storyboards and images of the interiors working directly from the architect’s floor plans, although on a huge scale. The design is worked out so craftily that it is fluid but unique to that project. Picking up on its 225 years of experience, the company’s designers set to work. Tweaking some of the 54 million designs in the company’s banks to suit the requirements could have been one of the moves. Ultimately, however, they settled on creating a totally new design. Said Sreejith Pushpangadhan, Project Manager for the DIAL project, “As a company we are passionate about design and in providing the best design solutions to our clients. We produce high-quality products and always strive to perform to the highest standards.” The base of the design — and one that occupies a large expanse of the airport’s arrival area — came from Google maps’ satellite view of Delhi’s Connaught Place (CP) in Google. Designed by Robert Tor Russell, CP is Delhi’s main commercial centre and adequately reflects what Lord Hardinge, the Viceroy described as “western architecture with an oriental motif”. The central circle of CP with roads radiating out of it formed what Rob Beard, Co-designer at Brintons’ Pune unit described as a bird’s eye view of the city centre. The designers then researched a variety of cultural influences and colours that are synony-
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mous with India and used them to form a general design theme that could be applied — after suitable modifications — across all of the spaces. The final design that was chosen as the central theme for the carpets in T3 juxtaposed the design elements of the capital’s historical monuments with the present-day skyline. What has emerged is a happy and harmonious blend of the old and new. Interspersed within the designs is the typically and well-known Indian shape, the Paisley. Besides there are geometrics, swirls, flora and foliage. The colours used are picked from street scenes, monuments, foods, spices and festivals from all the four regions of India. Having completed the core design, the concept was modified and re-coloured to suit the different spaces in the terminal. At the end of it all, Brintons supplied five different carpet designs to DIAL to choose from. However, there was still a big
ROLLING OUT: (Top) Carpets being woven at the manufacturing unit; (above) the thick carpeting at T3 in shades of brown.
hurdle: colour combinations. Brintons presented around 60 pegboards with design and colour variations along with the five different broadloom trials before a final design concept was agreed upon. Incidentally, the design of the retail area had to mesh with the main theme. The international retail space has carpets inset into circular islands at the shopping area. The colour theme is from associated elements at the retail section and is blue and brown in colour. The domestic retail design has squarish patterns since the carpet has been laid out onto a geometrical-shaped island. This portion of the carpeted island caters to a seating area for those within the retail area. Though it was not mentioned in the brief, the company knew that it had to keep pace with the fast-moving construction schedule for the integrated passenger terminal building. There was, therefore, no excuse for making mistakes and delaying schedules. Working to a strict design, manufacture and installation timetable to ensure that the carpet was delivered at precisely the right time, Brintons had to adapt itself to changes in the building schedule that changed a number of times. While the design was top priority what was equally important was product performance. It is not uncommon for an airport carpet to be subjected to foot traffic of more than 25 million people per year. So whatever carpet solution is provided has to be able to withstand that level of wear. For this, the company used an exclusive 80/20 mix of natural wool and nylon. In fact, the mix has been pioneered by Brintons a few years ago ensuring that the carpet has all the qualities that modern air-
That’s how the carpet rolled out End 2007 Brintons starts initial dailogue and interaction with DIAL.
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Mid-2008 to March 2009 Initial designing starts at Brintons’ Pune unit.
JanuaryMarch 2009 First trials and mock-ups. Miawling Koh [AVP, DIAL] flies to UK to finalise colour scheme of the carpet in the departure area CRUISING HEIGHTS November 2010
March 2009 Brintons gets the green signal from DIAL with the letter of intent.
May 2009 A dedicated project management team headed by Sreejith Pushpangadhan establishes base in Delhi.
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ports require: it hides soil, is naturally self-cleaning, is easy to clean and responds well to vacuuming. Pushpangadhan pointed out that the electronic Jacquard has brought about revolutionary changes in the world of woven carpets. The days when carpet patterns were restricted to short repeating patterns are over. Today, designers have the freedom to create patterns of a scale and proportion that could not be imagined earlier. What would previously consist of over 50 separate pieces can now woven in five complete lengths. That essentially means fewer seams and therefore lesser wear on seams, savings on installation times, and a reduction in waste. Huge floor scapes and complex room shapes are now no deterrent for designers: with electronic Jacquard these spaces become the ultimate canvas and an opportunity to create big, bold designs that introduce a ‘wow’ factor to the venue as well as setting new benchmarks in design. It is no wonder then that Jonathan Stone, Brintons’ Global Sales and Marketing Director, often likes to point out that the similarity between a Brintons project management ‘machine’ and the working of a Swiss watch: “We have to deliver the finest carpet and consistent and reliable product solutions. But in order to get to that stage we have to make sure that everything we do works precisely. We must perform in every way required and everything must happen when it is intended. Being late with a carpet — even by a single day — is a disaster and is something that will not be tolerated.” About the T3 project, which took Brintons four months, 20 broadlooms and 350 staff, he said: “Being able to
August 2009 Brintons starts weaving carpets.
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DESIGN IS TOP PRIORITY: (Top) The loom spewing out the carpet; (above) T3 has set new benchmarks for other airport operators to follow, one of them being passenger comfort.
meet critical deadlines and to deliver on time and within budget is vital when you’re working on an airport contract. I’m hugely proud that we finished our work ahead of schedule on T3 and that the airport operator is so pleased with the final result. This was a massive project — the installed continuity of carpet stretches for more than 1.2km alone — but our extensive skills, knowledge and experience helped us create a product that will stand the test of time and captures India’s past and present culture perfectly.” Sreejith Pushpangadhan realised he was working against time. Every little detail had to be in place even before the weaving started. Each section of the carpet was like a piece in a huge jigsaw puzzle and the fit had to be exact. While a lot of planning went into the weaving process, a similar amount went into the packing and transportation of the carpet bales from Pune to Delhi. However, once the carpet was delivered, began another problem. The builders cleared parts of the terminal for laying the carpet and often that was not done in sequence: Area C,
February April 2010
MarchJuly 2010
Transportation of the carpets from Pune to Delhi.
Laying of the carpets.
an
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SOFT LANDINGS —ALWAYS angkawi, KLIA, Subang, Hong Kong airport, King Fahd Airport, Heathrow, Singapore Changi, Pudong, Sydney, Melbourne or Portland airport: the warm welcome at all these airports and more is provided by the plush carpet. In fact, adorning public spaces around the world is a job that carpet manufacturers, Brintons, is very proud of performing.
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Singapore Changi Airport, Terminal 1 & 3: Changi Airport Group and Brintons have been associated for more than 20 years. So, when the Civil Aviation Authority of Singapore (CAAS) decided in 2008 to upgrade Changi T1 at an estimated cost of $500 million, the carpet manufacturer was called to help. Brintons supplied 54,000sq m of carpet that was required for the project. When the four-year upgrade of the terminal is completed in 2011, the 280,000sq m terminal building will see approximately 21 million passengers moving on the carpet. Changi Terminal 3 opened on January 9, 2008. Its 100,000sq m area receives an estimated 22 million passengers annually. Pudong Airport, Shanghai, China: The Shanghai Pudong International Airport ordered the company to cover 42,000sq m of area. The carpet has been installed in International Departure Terminal Two
for example, was released to Brintons way ahead of Area B. So, there was all the more need for the jigsaw pieces to fit perfectly. This, according to experts, sets one manufacturer apart from another. Often, manufacturers become overawed by the sheer size of the carpet order for an airport. Brintons has the experience of having worked in a number of airports around the world. However, just supplying a carpet is a task but not exactly the ‘real’ task. The ‘real’ task is
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and the project is considered to be China’s largest-ever Axminster carpet installation. Morial Convention Center, New Orleans, USA: The MCC has been renovated completely after it was destroyed by the hurricane. The $67 million restoration and renovation comprised covering 90,000sq yd. Connecticut Convention Centre, Hartford, USA: The Connecticut Convention Center features over 140,000 sq ft of exhibition space, a 40,000sq ft ballroom and 25,000sq ft of flexible meeting space. The largest convention facility between New York and Boston, Brintons completed the work in record time. Cunard Lines, Queen Mary 2: A total of 65,000sq m of Axminster carpet has been installed on the 150,000 tonne vessel, the largest and most luxurious passenger liner in the world. While the Queen Mary 2 was being built at the Chantier de l’Atlantique shipyard in France, the project was coordinated by Brintons Paris office.
The design that was chosen as the theme for the carpets in T3 juxtaposed the design of the capital’s historical monuments CRUISING HEIGHTS November 2010
FINAL TOUCH: (Top) Quality check being done on a carpet at Pune; (above) a view of the interiors of T3.
making sure that the carpet is in a state of readiness to perform. One person who would agree is George Pendle. He has been at an unusual hobby since 2002. Over the last few years, he has been busy gathering material for a book, Carpets for Airports, that is scheduled for release this year, and in the course of his work he gazes at airport floors around the world. What saddens him is the growth of the ceramic tiles culture that is hastening the death of carpets. It is what he describes as “one of the greatest aesthetic tragedies of our time”. He was quoted as saying, “My main problem is with tile or terrazzo or marble — or even wood — which just aren’t a welcoming ground for people getting off a plane.” Perhaps, Pendle should take a visit to Delhi’s T3: it will be reason enough for him to rekindle his interest in airport carpets and start work on a sequel. And though Jonathan Stone’s words could be termed as a sales pitch, Pendle would find: “The designs and colours are really vibrant and invigorating… Delhi will set a new benchmark for having a carpet that is both businesslike — something you expect to see in an airport — but also very culturally stimulating and energetic”.
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CRUISING HEIGHTS AIR CARGO & LOGISTICS
November 2010
DUBAI WORLD CENTRAL
Big ticket cargo action
Flyington is flying nowhere p51
ACAAI to brainstorm on resurgence p52
Non-d delivery of aircraft upsets business plans but who is to blame?
November meet will tackle unresolved issues ACAAI President J Krishnan
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LAST IN/FIRST OUT
TRENDS
Air cargo in Asia, particularly in India, is reviving fortunes in freight.
Cargo charge continues THE Association of Asia Pacific Airlines (AAPA) has in its latest figures released at the end of September 2010 for the month of August 2010, shown continued growth in both cargo and passenger demand. International air cargo traffic as measured in freight tonne kilometres (FTKs) registered 25 per cent growth compared to the same month last year. Even with a 19.3 per cent expansion in offered freight capacity, the average international cargo load factor increased by 0.5 percentage points to 67.9 per cent. Commenting on the results, Andrew Herdman, AAPA Director General said, “Asian economies have been leading the way out of the global downturn, and this has resulted in a tremendous boost to the fortunes of carriers across the region. Over the past nine months, we have seen a 14.6 per cent increase in international
passenger numbers, and an even more dramatic 30.2 per cent growth in international air cargo traffic, compared to the same period last year. Unlike some other regions of the world, Asian consumers are already displaying confidence in the future. At the same time, a broad-based pickup in business sentiment is evident in the marked recovery in demand for premium class seats, a segment of the market in which Asian carriers have traditionally excelled. Asian carriers have responded to these increases in demand with disciplined capacity and yield management, which has generally been rewarded by a welcome return to profitability, following two very difficult years for the industry.” Meanwhile, two of Europe’s busiest airports Frankfurt Airport, Germany, and Heathrow, UK, handled strong volumes in September.
Good news from India INDIA has turned out to be what Helge Krueger-Lorenzen Lufthansa Cargo’s VP for Asia-Pacific termed as the “single biggest surprise”. Speaking to Payload Asia, he said that after a “terrible 2009” when yields were down in a way in India too, both tonnage and yield have recovered. Among the cargo drivers, he pointed out, there was a lot more breadth in the commodities produced from India. “It’s not about garments any more, where end of April you have a market that dries up.” Today, the drivers are automotive, telecommunications and pharmaceutical. The market has changed in India and it’s going very well, said Krueger-Lorenzen. “India is interesting because you have a huge diversity of capacity providers and we have a fair share of the marketplace, as do other providers,” he said in the interview. Freight carriers and freight forwarders can look forward to more action. Although for the present there are constraints on capacity, Krueger-Lorenzen said he can envision having not just “two or three flights into Mumbai and Hyderabad, there could be more — but being cautiously optimistic we have to understand whether this is going to be a long-term trend or just a spike”.
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“Germany is the world champion in logistics and we must always remain so. In this country, it is the third most important economic sector, immediately behind trade and the car industry. Such a ‘vein of gold’ cannot be allowed to be buried under too restrictive and not particularly well-balanced night flight regulations.”
) Ewald Heim
Managing Director, “Cargo needs the night” initiative
CRUISING HEIGHTS November 2010
GST (Goods and Service Tax) is most likely to come into force on October 1, 2011. According to tax experts, contrary to general belief, the evolving Indian GST framework is one of the most objective and forward looking of all the 130 countries where GST is already in existence. Many organisations are in advanced stages of preparation for a smooth transition into a GST regime suggesting that the preparatory process deserves at least 8-9 months to be able to fully ingest this opportunity. In a recent gathering in Mumbai of manufacturers, retailers and 3PLs at the annual India after GST: Manufacturing, Logistics & Beyond Summit organised by the Supply Chain Leadership Council, Juzar Mustan, CEO of AFL Logistics and the Chairperson of the summit, pointed out the findings on how an as-is network of an existing large manufacturer comprising 112 primary freight lanes can be successfully served by 39 primary freight lanes through a GST-aligned hub-and-spoke system resulting in halving of inventory levels at branch level and a saving of 11 per cent on supply chain cost. According to Gagan Seksaria, Associate Director (Transportation & Logistics), KPMG, postGST supply chains will have longer average primary freight hauls unlocking opportunities for emerging modes of transportation such as rail and coastal shipping viability which increases with hauling distance.
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Flyington’s flying woes Air cargo operator Flyington Freighter is upset because its schedules for starting operations have been delayed. In fact, the company has made it clear that it has incurred financial losses and could seek legal help. A report.
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soured business deal over nondelivery of freighters by Airbus could turn into a diplomatic row. In fact, the row has the potential to upset India’s foreign trade relations with European and US partners. Now widely known as the Flyington Saga, the row started when the Hyderabadbased media group Deccan Holdings — owned by the Reddy family — made it well known sometime ago that it had lost business amounting to a billion US dollars because Airbus had gone back on its contract to deliver 12 Airbus A330-200 freighters. In fact, a Flyington Freighters official was quoted as saying that his company was expecting a turnover of more than a billion dollars but the nondelivery of the freighters by Airbus put an end to all business plans. Flyington had come on the Indian air cargo scene way back in 2006. A new venture for the media and retail group, Flyington decided to launch its services primarily for the India-China market in December 2006. The launch, however, did not take place and it was announced that operations would start in July 2007 and the freighters would in addition to China also fly to Europe, Africa and the Middle East. The planes that the company decided to use to launch its services would be four Boeing 777 freighters that it would buy. Later, there was a change of plan: the services would start with leased aircraft and
when the Airbus A300200Fs came, Flyington would switch over to them. Meanwhile, in January 2007, Flyington became the first air cargo company in the world to have placed an order for six Airbus A330200F aircraft. Deliveries were supposed to begin in the latter part of 2009. In May 2007, Flyington’s Chairman Venkattram Reddy announced that the airline was going in for a total Airbus fleet. While signing a contract for six planes on May 9, 2007, Reddy said that the company had opted for “an all-Airbus fleet of freighters because the A330200F offers unbeatably lowoperating costs and significant operational benefits. The aircraft is new, modern and designed for today’s business needs. The aircraft will give Flyington Freighters a solid springboard for success in the rapidly expanding Indian freighter market”. In reply, Airbus’ John Leahy pointed out: “Flyington Freighters will be India’s first international dedicated freighter airline and that, coupled with the
development of locally based freight operations,will play a big part in the huge growth of the region’s cargo market.” He went on to say that Flyington had made a wise choice since the A300200 freighter was economical, fuel-efficient and productive aircraft “that will stand it in good stead. We’re delighted that Flyington Freighter Ltd is a launch customer”. The $2.3 billion deal was that Airbus would hand over a dozen A330-200 freighters by July 2008. Nothing of that sort happened and Flyington was surprised when Airbus handed over the first A300-200F to Etihad in August this year. Caught unawares, Flyington said that Airbus had shown its partiality to the Middle Eastern airline. It was a violation of Sections 3 and 4 of the Companies Act, because Airbus tried to restrict Flyington’s market access. In addition, Flyington used all its clout to raise the issue in Parliament. A Rajya Sabha member, Mysoora Reddy, has advised the Indian government to institute an inquiry by the
A SURPRISE FOR FLYINGTON: A photo from our files showing Etihad CEO James Hogan at the press conference in Farnborough where the carrier was handed over the first A330-200F.
CRUISING HEIGHTS November 2010
Competition Commission for anti-competitive activities and by the Enforcement Directorate for FEMA violations. He also asked the government to take the dispute to the WTO as well. Now, it appears that Flyington has almost decided to sue Airbus over the delay. According to a Flyington official, who does not want to be named, Airbus hyped its Flyington deal to get a US Air Force contract to build the KC-30 converted tanker/freighter, a version of the A330-200 passenger aircraft. The planes were to be built at Mobile, Alabama, because Airbus had limited capacity in Toulouse and would be unable to manufacture 12 A330-200 aircraft. However, the mobile facility has not been put up because the USAF deal is not yet through, hence the delay to deliver the dozen planes to Flyington. Airbus, according to reports, said it had been mutually agreed in 2009 that Flyington wanted delayed deliveries of the aircraft. News agency PTI in a despatch filed in August this year mentioned that an Airbus spokesperson said a contractual amendment was agreed by Airbus and Flyington in 2009 to push back delivery of their aircraft. “We have maintained a continuous dialogue with Flyington and these talks are confidential,” the spokesperson added in an e-mailed reply to PTI. According to highlyplaced sources, Cruising Heights understands that Flyington has started paying the instalments to Airbus for the aircraft it ordered.
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ACAAI seeks more interest from
policy makers
The Air Cargo Agents Association of India will highlight the revival of the air cargo industry with its annual convention this year. The association will also address the unresolved issues that the trade has been facing for the past few years. Post the economic downturn, the industry is more than ready to handle the challenges on a national level for its smooth functioning, reports Roohi Ahmad.
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his year’s annual meet at Bengaluru from November 25 to 28, 2010 — the 37th annual convention of the Air Cargo Agents Association of India (ACAAI) — will be different. It will see the launch of a new technology platform — UPLIFT (see Move to uplift logistics) — for networking among the cargo fraternity. The convention scheduled to be held at the Leela Kempinski Palace, will primarily focus on the rapid changes that are likely to affect India’s trade in the coming years. The theme of the convention, “Air Logistics — Industry Resurgence” will enable the association to highlight the problems being faced by the industry in general and the members of the trade body in particular. Additionally, ACAAI wants to be taken seriously by policy makers. “We want to generate awareness that the convention in its 37th year is not a familiarisation trip. This is a very serious convention,” emphasised Bharat Thakkar, Vice President, ACAAI. The convention will serve as a platform to not only interact but debate issues
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FUTURE MOVES: A file photo of ACAAI President J Krishnan addressing the ACAAI members during the 36th ACAAI annual convention, held in Goa in 2009.
among the various sections of the industry and between the stakeholders and the policy makers. The agenda for discussions will be varied: it will focus on problems currently faced by the industry; the development that the government has taken into consideration with respect to infrastructure investment;
the existing deficiencies and the congestion at the several air cargo complexes at major metro airports of the country. Even the customs’ new ICE 1.5 version software’s migration to the old software is going to be discussed during the convention. The concluding session will include discussions
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followed by an in-house session for ACAAI members. The other major issue that will be discussed is the one affecting the trade, the agents and the airlines. According to air cargo experts, the existing deficiencies in the system culminate into increased transaction costs that result in the inputs
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becoming expensive thereby making export slightly uneconomical if shipments are delayed. At the end of it all, the importers end up paying for detention of cargo. “Both the Ministries of Commerce and Civil Aviation have jointly supported that free storage should be reduced to three days, which will make the importers clear the goods faster. This can only be done if the goods are given to them faster,” added Thakkar, stressing the need for free storage. The convention, therefore, will focus on infrastructure deficiencies, that are the cause of delays in trade. Since the air cargo industry needs a concrete backing from an efficient rail and road infrastructure so that it gains prominence in the coming years, the convention will further look into opportunities that offer growth and profit for the air cargo industry. With liberalisation and globalisation bringing in complete transformation in world trade, customer demands too have witnessed a scaling-up. This year’s convention — incidentally, the second consecutive one to be held in the country — expects to have a large participation. The organisers realised at the last convention in Goa that holding such meets in the country would ensure larger participation by policy-makers; hence, the decision to hold the convention in Bengaluru since the city has one of the finest examples of the new Greenfield airports in the country. One of the subjects that will be given prominence during the convention is the development of cargo villages at major airports.
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Move to uplift logistics
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CAAI in collaboration with IT solution leaders Kale Consultants will announce the launch of UPLIFT at the convention. UPLIFT — Uniform Platform for Logistics and Integrated Freight Transport — is a software that will bring the entire cargo fraternity together. It will also serve as a single stopover software for the country’s air logistics industry and promote the best IT practices. UPLIFT will also cover the perspective of airlines, custodians, shippers and CHAs. The main hindrance faced in the cargo industry is the high costs involved in the daily work structure and it is here that a proper networking system through UPLIFT will solve problems. The software will present great opportunities and benefits for domestic as well as international traders to interact and also compete with each other. With the help of technology, Indian marketers can easily reach out to international ones which, in turn, makes them part of the global competition. With this successful implementation of technology, the level of efficiency will be heightened and larger participation ensured. “The surge in FDI in the last few years has seen global giants set shops in India. These global players are outsourcing logistical activities to Indian one-stop service-providers. We have an
The convention will focus on infrastructure deficiencies, that are the cause of delays in trade.
opportunity to provide services to best companies in the world and we do believe that the right technology can help us differentiate ourselves in a competitive global market. What this also means is that we require systems and technologies that can automate interactions or transactions with global players,” said ACAAI President J Krishnan about the reason for collaborating on UPLIFT. Kale, in partnership with ACCAI, set up an EDI committee, consisting of eminent members of the logistics industry like Robinsons Air Services, Swiss World Cargo, Emirates Sky Cargo, Jet Airways, Gulf Airways, Mumbai International Airport Limited and customs authorities. The committee sought to embrace IT as its true ally to sort out cost-related cargo problems. For this, the EDI committee adopted UPLIFT that will ensure that every member is available on board for efficiency and effectiveness in carrying out logistics operations. While European markets and other developed markets are yet to come out of the negative effects of recession, the Indian air cargo industry is all set to grow. This has been achieved because of a number of reasons: the geographical placement of the region and logistics and supply chain structure.
“Bengaluru is the second airport where the authorities have provided the facilities for the development of the cargo village, the first being the Shamsabad International Airport, Hyderabad. Almost 85-90 warehouses of 500 sq ft each, with additional 250sq ft office space, have been provided at the Bengaluru airport. There is another building where there is space for 100 offices, of 250-500sq ft each. This is a fine example of a very well
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planned cargo village that is almost ready but due to lack of power supply, it is not fully functional yet. This was an ACAAI initiative,” emphasised Thakkar The trade is growing by leaps and bounds but as always infrastructure remains a concern. Privatisation had given hope for the establishment of air cargo villages and agents bonded terminals but the progress on that front is still slow. ACAAI has made recommendations to the Ministry of Civil Aviation with respect to infrastructure development. According to the report tabled at the 36th Executive Council Meeting of The Federation of Asia Pacific Air Cargo Associations (FAPAA), ACAAI suggested an urgent need for a review. The association is of the view that work needs to be done at the local level for general effectiveness of the airports. ACAAI has been playing a key function in the expansion of the new privatised airports of Hyderabad, Bengaluru, Delhi and Mumbai, and improvements at Chennai and Kolkata are being managed by AAI. The policy makers who are expected at the convention will include Civil Aviation Minister Praful Patel, Arvind Jadhav, CMD, Air India; Dr Nasim Zaidi, Director-General, Civil Aviation; and a number of others. The convention will consist of seven business sessions over a period of two days with speakers from the airline industry, ACAAI, the custodians, various government agencies and departments. The in-house session will also consist of panellists who will address members’ concern about taxation, competition law, training, etc.
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Hitch your wagon to the (India) star There is a serious disconnect between those who are rearing to take India to its rightful place in the world and the various regulatory agencies operating at airports and seaports, writes J Krishnan.
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Efficiency in performance, transparent audit against defined benchmarking, even in the current suboptimal infrastructure will be the first step to scale-up professionalism.
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ith due apologies to Ralph Waldo Emerson, the above slogan is heard in many parts of the developed world and the crescendo is rising. The past decade has been momentous and it is indeed a dream to be alive and to be here in India (once again, P B Shelly inspired). The India story is not one of nostalgia. It is happening now and we are yet to sink in the real impact of this flux. India has emerged as a leader in the knowledge and services sector. What we missed is manufacturing for the past many decades, 15 years of excellence in the services sector has taken us into a new orbit where we rub shoulders with elite groups and are looked at with respect and some awe. The share of services to the GDP exceeds 50 per cent and this has created wealth across the nation. This wealth has increased consumption and demand. The emerging affluent class with high disposable incomes has attracted a wide variety of goods manufacturers. The Dells, BMWs, Mercs, Samsungs, Lenovos have set shops in India. Hyundai, Ford, Nissan export cars manufactured in India to the world. There is pride to utter the words, ‘Made in India’. The advent of technology has also seen new sectors emerging in India’s exports. Castings, engineering goods, auto components, hand phones, basic drugs, formulations compete with our traditional leather and textiles, tea and spices in enlarging our foreign trade. High-end fashion goods, wristwatches, perfumes, appliances adored by the world are freely available in India legitimately. Trade in goods is increasing and India is one of the few countries in the world where the directional imbalance between export and import is relatively small. Thus, we have a robust inbound market for goods and a competitive export market capturing new frontiers, thanks to liberal foreign trade policies that no longer frown on imports. Indeed, the slogan ‘Import Compression’ cannot be understood by the new generation. In fact, the principle adopted by the Special Economic Zones (SEZs) ‘Import to Export’ has
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in the process enriched the local workforce. The sea mode is the main outlet of trade in goods. Approximately, 95 per cent of our total tonnage of exports/imports rely on this mode. When we make a value comparison 6-7 per cent of India’s outbound airfreight roughly represents 35 per cent of its value. Therein lies the scope of this discussion. India’s aviation sector is large with 200+ airports/airfields sprawled across this sub-continent. But most of them are defunct or woefully under-utilised. The handful of metro airports handle almost 90 per cent of our airborne trade both inbound and outbound. The old airports in the main metros find themselves bang in the middle of a rapidly developing urban jungle, which leaves no scope to expand and modernise. The Greenfield airports are yet to take off as far as cargo operations are concerned. The legacy inherited continues as there has emerged a serious disconnect between these new kids on the block and the various regulatory agencies. The lack of a coordinated approach with reference to work timings, availability, etc. has posed a serious challenge for these new airports to rise up to their true cargo potential. The privatisation programmed launched with great fanfare at Delhi and Mumbai has turned out to be an absolute disaster as far as cargo operations are concerned. Users at these airports now silently admit that they were much better off under the previous dispensation and are utterly disappointed at the current state of affairs. In fact, it is now universally acknowledged that service and operational efficiencies have worked very fast and covered great ground in ‘reverse gear’. Great efforts were made by the Air Cargo Agents Association of India (ACAAI) to have cargo operations included within the ambit of the Airport Economic Regulatory Authority (AERA). The regulator was mandated to usher in competitive and efficient operations in relation to cargo activities by benchmarking the various performance parameters and approving a fair tariff based on such performance. This proposition is yet to become a reality.
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Severe equipment shortages, inadequate manpower deployment, archaic processes, uneven flow of cargo and artificial congestion created by ‘last hour rush’ in both exports and imports have been a serious dampener to any effort to scale up the efficiencies and introduce internationally-accepted activity benchmarks as far as the cargo terminals at our four metro cities are concerned. The logistics cost is one of the barometers to assess the development of a nation. An efficient infrastructure supports trade and commerce, both domestic and international. It also adds to the competitiveness of the total landed cost of a product. The cost push occurring directly due to the lack of a supportive infrastructure adds nearly 3-4 per cent of the total logistics cost in India. Time-definite supply chains do not perform consistently but sporadically. Inefficient processes, indifferent people and indefinite procrastination — not necessarily in that order — contribute their mite to prevent commendable ideas being translated into concrete action. Project delays are a given and cost over-runs are gleefully accepted by one and all. The decade ahead promises growth — that will be unprecedented in the history of independent India. The economic indicators only promise a rising curve but a vital piece to complete this magnificent portrait is missing and that is infrastructure. Air logistics delivers speed as its USP but the flown to dwell-time ratio is adverse. Technology has contributed to process efficiencies but again the actual picture is that of fitting a radial tyre to a bullock cart and the road is a mud track filled with potholes. Integrated approach to paperless electronic transaction eludes us. Each player in the supply chain refuses to give up their own fiefdom and merge to present a seamless transaction. The trade also needs to bear their part of the blame. At the best of times some innocuous, highly diffident syllables are uttered, almost in a hushed breadth, demanding a better operating atmosphere by the captains of various industry verticals. The facilitators are still feared as the erstwhile regulators and this deeply ingrained inhibition needs to be shed if we are to leapfrog into the 21st century and gain our rightful place in history. Lowest costs will not necessarily translate to a state-of-the-art infrastructure. The greater economic activity triggered by a modern infrastructure will more than compensate the perceived cost push in user charges. Efficiency in performance, transparent audit against defined benchmarking, even in the current sub-optimal infrastructure will be the first step to scale-up the professionalism and hasten the speed of development. This only needs a small change in the mindset of all the players in the supply chain. There are live examples of some such small but significant success stories. The containerisation in the maritime sector forced India to accept this change though the supporting infrastructure was absent. Ad hoc innovations saw container
vessels call at Indian ports in increasing numbers and the infrastructure grew subsequently though not organically. Ports were landlocked and congestion raised its ugly head and congestion surcharges became a norm. Opening-up of ICDs (Inland Container Depots) and CFSs (Container Freight Stations) saw the ports giving up their processing assignments. They became only a throughput centre and on unloading the boxes are immediately shifted to the CFS of ICS, thereby easing the congestion. The Chennai Port has witnessed a growth in throughput from 30,000 TEU per month to over 100,000 TEU without an inch being added to the terminal. What made it possible was the drive to improve the efficiency in spite of the adverse climate and the resulting jump in throughput has ensured economic prosperity to almost all players. Freight rates have dropped, operating efficiencies have risen, predictability in transaction time has emerged and huge employment opportunities have been created. Such homegrown solutions are available to emulate and expedite ushering in of at least an acceptable level of improvement in infrastructure. Such a possibility can only be galvanised by a powerful and unanimous voice of the trade demanding a better operating atmosphere and working in close partnership with the facilitators (government and autonomous bodies) to create, implement, nurture a mass movement with a set goal of a world-class infrastructure within the shortest possible time. Such a cooperative approach will automatically reject archaic processes and usher in a paperless, e-enabled, objective implementation of government rules and regulations. Transparency forces even the stubborn to comply to rules and regulations or they would stick out as sore thumbs. Efficient infrastructure is a very achievable goal in the near future if each and every player in the supply chain — be it the trade, port/airport, terminals, road, rail — amalgates unselfishly and cooperates with a missionary fervour. A brave new world beckons our nation and if we were to slip up at this opportunity we may end lamenting as the brave hero of Shakesphere exclaimed: “A horse, a horse. A kingdom for a horse.” Let us tame this horse of infrastructure and gallop forth victoriously to the kingdom of economic wealth. (The writer is President, Air Cargo Agents Association of India, and the views expressed in the column are his own.)
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TOWARDS A MAJOR BOOST: Container Freight Stations (CFSs) can provide a major fillip to logistics sector in India.
The logistics cost is one of the barometers to assess the development of a nation. An efficient infrastructure supports trade and commerce, both domestic and international.
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“We expect to crack the
TWO-MILLIONTONNE MARK”
Andrew Walsh, Vice President, Cargo, Dubai World Central (DWC)-Al Maktoum International Airport, is upbeat about the future of what will become the world's largest airport, in this interview with Tirthankar Ghosh. At the beginning of October, Atlas Air’s Boeing 747 successfully operated the first scheduled freighter service at the new Dubai World Central (DWC)-Al Maktoum International Airport on behalf of Panalpina. It was a big moment for Andrew Walsh. In this conversation, he pointed out the future of the airport, brushing aside all speculation that the project had been delayed. In fact, he was optimistic about the prospects of DWC.
DWC project: Was
it delayed?
The project was not delayed. We had set a date for opening the airport. I have said this in the past that there was a lot of speculation in the media very early about when the airport would open and most of it was unrealistic. The airport construction really got underway in 2005-06 and the original projection of opening the airport was 2008 or even 2009. You have to be realistic. You cannot build an airport the size of the DWC in 2-3 years’ time. We always said that we would open when we were ready and it (DWC) was ready in early 2010 but in
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agreement with the various stakeholders we said that we would be ready in June 2010.
Recession woes and DWC When the airport was designed and conceived we were not going through a bad patch. The economy is going in circles and we are in a particularly steep dip. I am sure it will revive. The current location (of the Dubai International Airport) over time was becoming increasingly congested and in a landlocked airport site where the Dubai International Airport is, there is no room for any significant further expansion. The site chosen for the DWC was important because of its proximity to the seaport. It makes more sense to develop a multimodal hub. The future of Dubai Airport will continue to grow. However, the fact remains that we were going through the recession and Dubai was in the grip of it. While the world was seeing the double-digit contraction last year in terms of airfreight, Dubai saw growth. DWC is the future airport of Dubai and it will continue to grow and the fact that it came on live —
at the same time as we were going through the recession. In fact, a global recession was just a coincidence. While the world was seeing the double-digit contraction in air freight, we had nine per cent yearon-year growth. However, the growth slowed down and now we are 5.6 per cent up.
Cargo volumes When we opened DWC in June 2010 it was a soft opening. Volumes had been quite low during the first few months. Over the last few months, we have seen quite a number of aircraft coming; in fact, there has been an increase in the number of aircraft but there was a dip in September. As far as cargo volumes (are concerned), they are making records at the moment: it is tens of thousands of tonnes. This is part of the growth of the airport. In the middle of October, we have opened the road link between the airport and the seaport. The first of the agents’ buildings in the Dubai Logistic City is opening now. The final opening is in the next few days. There are a larger number of freight forwarding companies that have been operating for a short while.
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So, we are starting to see growth in the freight forwarder area. We have the infrastructure that will create the multi-modal hub and the linkage with the seaport which we will be concentrating on for feeder aircraft and regional cargo. We are well positioned for continued growth over the next few months. We have always forecast that at the end of first year of operations, i.e. June 2011, we will have an annual tonnage of 2,50,000 tonnes. By the end of 2010 we expect to crack the twomillion-tonne mark. The forecast is 11.2 per cent growth for the year. We are exceeding that so far with a 24 per cent increase in volumes year to date. The current capacity at DXB is 2.5 million tonnes; so, relatively Dubai World Central is only adding to the overall capacity, although it is only a small percentage. In the 20102015 five-year period, we project 48 per cent cargo traffic growth to over three million tonnes.
Sea freight cannibalising from air freight Sea freight and air freight are two different modes of transport. (The question about) transporters preferring to go by sea or air, is for supply chain managers to decide what they want. During my career, I have managed supply chains and (I have seen that) the decision supply chain managers take is regardless of locational facilities. If you are in the supply chain management, the question that you ask is: Do I go to a multi-modal hub or do I go somewhere else? If anything both markets (sea and air) will grow because supply chain managers will choose what is attractive to them. The model that we are working
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towards and we always give the example of computers made in Chine coming by ship to the Jebel Ali seaport in Dubai Logistics City. From there, they undergo mass customisation and are airfreighted on to their final consumers through the concept that multi-modal hubs allow you to do.
Business strategy We are looking at transfer cargo generally. There is a growth in exports cargo from Dubai and the UAE in general. There is more light industry but the freight that moves through Dubai is transfer freight. The market of all the models that we are working towards is just increasing with transfer business and growing new business like mass customisation, regional distribution, etc.
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in DWC with the seaport unlike the others.
Number of airlines at DWC On opening day, we had 19 airlines. 15 airlines signed up to use the airport and a majority of them have already started operating. Recently, we have had Panalpina operating on a regular basis. We also have Maximus Air Cargo from Abu Dhabi (it is using the DWC as a hub); Thai Air Cargo was the first to sign up. A number of these operators, who are signing, will wait for the season change since the critical
Competition from the region We are looking at global competition and not just local competition. We have to compete with Hong Kong, Singapore, Incheon, Memphis. Globally, air freight and the global logistics industry have a lot of choice in how they can move equipment and commodities around the world. That is the market that we are looking at. We are conscious of what our neighbours (in the region) are doing. However, we would still argue that we have a unique proposition
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FIRST OPERATOR AT DWC: Emirates cargo flight receives a water cannon welcome upon arrival.
measure is what is going to happen at the end of this month. Also, 17 logistics operators signed up to operate, of which about seven are actually currently operating. We have got Panalpina, KNN, RSA Logistics and some smaller ones.
— that is three times that is handled by Memphis. That is the final format. It is always going to be a large cargo hub as well as a large passenger hub. The airport
A behemoth in the making ¾
Why no Emirates? Emirates was the first operator at DWC. They undertook a freight trial for us and that was the first cargo that we handled through DWC as well. There was just about 100 tonnes that came off a 777. We talk to Emirates regularly. But it is a question for them when they really want to operate through DWC. We talk to them how we will integrate DWC on their network.
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How long will DWC be an allcargo airport? Currently, the plans are to open passenger services in 2011. Cargo was just the first mover. Cargo will continue to be a significant part of DWC in the future too. Once the construction is complete, it will handle 160 million passengers and 12 million tonnes of cargo
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also has plans for an MRO. Some of the construction has already started and that they will come online over time. As for old airport and
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Cargo operations at Dubai World Central-Al Maktoum International (DWC) were launched on June 27 this year, as part of the first phase of the project. The airport forms the heart of Dubai World Central, a 140sq km multiphase development of six-clustered zones that include the Dubai Logistics City (DLC), Commercial City, Residential City, Aviation City and the Golf City. The development is the region’s first integrated, multi-modal transportation platform connecting air, sea, and land. Once it is completed in the mid-2020s, DWC will become the world’s largest airport with an ultimate capacity of 12 million tonnes of cargo and 160 million passengers per annum. The new facility currently serves 19 cargo operators while passenger operations are expected to begin in March 2011. Phase 1 of DWC includes a single A380 compatible runway; a cargo terminal building with a capacity of 250,000 tonnes per annum (expandable to 600,000); a passenger terminal with
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capacity of five million passengers per annum (expandable to 7 mppa); and a 92-metre air traffic control tower. When it is finished, DWC will have a final cargo capacity of 12 million tonnes per annum (compared to Dubai’s 2009 traffic figures of 1.9 million tonnes per annum, and the world’s current largest cargo airport Memphis International at 3.7 mtpa). The airport will have a total of five parallel runways, 4.5km long, each separated by a minimum of 800m. DWC will have up to four passenger terminals, and will accommodate up to 160 mppa (compared to the world’s busiest passenger airport in 2008 Atlanta at 90 mppa, followed by Chicago O’Hare at 69 mppa and London Heathrow at 67 mppa). Located in the vicinity of the Jebel Ali Port and Free Zone, DWC will make air-sea connectivity achievable in four hours. Costs for the entire DWC development (including all clusters) have been estimated in excess of $32 billion (approx. AED 120 billion).
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what will happen to it, I cannot answer that question. It continues to be a hub and will continue to be a hub for some time. There is still development happening at Dubai International Airport, both on the cargo and the passenger sides, although there is limited development on the cargo side. We do not have a lot of capacity left over at Dubai International Airport. We have already started restricting cargo and that is one of the reasons that we opened DWC in 2010 because we have to have an alternative to offer to the cargo operators. If you look at our five-year cargo forecast, we are projecting 48 per cent growth between 2010 and 2015 — that will take us over three million tonnes. Clearly, the approach of Dubai has been to ensure that adequate capacity is in place for growth and growing is never a constraint. That is why we have cargo as a prime sector here. As we ended last year and the early part of this year, Dubai International moved in at the four positions as the world’s busiest freight airport.
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CARGO JOTTINGS Significant increase in sales for Lufthansa
LUFTHANSA Cargo reported a significant increase in freight and load factor this year at the close of the third quarter of 2010. From January to September, the carrier transported about 1.3 million tonnes of freight. Although Lufthansa Cargo had only implemented a moderate expansion (5.9 per cent), the cargo load factor improved by almost 10 percentage points to 71.1 per cent. “Lufthansa Cargo has so far made optimal use of the upswing this year,” emphasised Lufthansa Cargo Chairman and CEO Carsten Spohr. “We were able to realise the targeted expansion of our offer, bringing about a significant increase in the load ON UPSWING: Lufthansa’s cargo volumes factors, and we keep rising. intend to keep growing during the fourth quarter.” Eco-friendly moves: Lufthansa Cargo does not seem to leave any stone unturned when it comes to satisfying its customers. Innovation and expansion seem to go hand-in-hand for the cargo liner. Innovations take place regularly but this time around, it is to save the environment. The airline is the first carrier in India to perform electronic freight processing for outbound shipments. The first two paperless shipments out of India were spare parts that were flown from Bengaluru to Frankfurt. The company is ready for immediate implementation of IATA e-Freight procedures, as soon as hardcopy documents for export customs processing are no longer required. Other than simplifying processes in the airfreight business, “e-Freight” also benefits the environment. Each year, the paperwork produced for air cargo could fill 80 Boeing 747-400 freighters. Paperless airfreight has many advantages. “Everyone in the value chain benefits from faster and cost-efficient
Top 10 international cargo airlines THE International Air Transport Association (IATA) has compiled a definitive list of the top ten international cargo airlines for 2009. The figures reflect the decline in the world's air freight market. The rankings have been published in the World Air Transport Statistics (WATS): Korean Air heads the list. It has been at the top spot since 2004. The carrier's scheduled freight tonne kilometres (FTKs): 8,225 million (in 2008, it was higher with 8,800 million FTKs). Cathay Pacific Airways ranks second in the list with 7,722 million FTKs (in 2008, the figure was 8,245 million FTKs). Lufthansa is on third position with 6,660 million FTKs — a sharp decline from 8,194 million FTKs in 2008.
processes. Less paperwork also means less impact on the environment,” said Carsten Hernig, Regional Director, South Asia, Middle East & Pakistan of Lufthansa Cargo.
DHL is “Custom House Agent of the Year” DHL recently received the “Custom House Agent of the Year” award at the Maritime & Logistics Awards 2010. The Award was received by Snehal Parekh, Chairman, DHL Lemuir Logistics Pvt. Ltd. “It is an honour for DHL to be presented with this award especially at a time when we are amidst a rebounding economy. The award demonstrates our sincere endeavours to provide the best solutions with customs clearance as a value added service for our customers,” said Christoph Remund, CEO, DHL Lemuir Logistics Pvt. Ltd. The company's ongoing plans are to investment $10 million by its freight forwarding division to establish a logistics and warehousing facility in the upcoming Free Trade Warehousing Zone (FTWZ) in Tamil Nadu. With this, it will offer its customers the benefits of a duty-free zone with high-quality infrastructure.
DHL & Gobibo go customer-centric DHL and Gobibo recently hit upon a unique and innovative way to expand their business and even gratify the customers. Both companies came together to give free discount vouchers to all customers, booking shipping at any of the 380 Blue Dart DHL One Retail stores across the country. The discount offer was applicable on all domestic and international flight bookings. “Our strong retail initiative is aligned with our objective to be relevant to the Indian market and consumers. Offers such as these provide great value to our customers and allow us to constantly deliver the best value add for our customers,” said Chandrashekhar Pitre, Senior Marketing, DHL Express, South Asia.
Singapore Airlines is on the fourth position with 6,455 million FTKs — a decline from 7,486 in 2008. Emirates is on the fifth position with 6,369 million FTKs — as compared to 6,013 million FTKs in 2008. FedEx is on the sixth position with 5,808 million FTKs — a decline from 6,582 million FTKs in 2008. China Airlines is on the seventh position with 4,903 million FTKs — a decline from 5,261 million FTKs in 2008. Air France is on the eighth position with 4,672 million FTKs — a sharp decline from 5,820 million FTKs in 2008. Cargolux is on the ninth spot with 4,652 million FTKs. UPS Airlines is on the tenth position with 4,495 million FTKs — a decline from 4,495 million FTKs in 2008.
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CARGO JOTTINGS FIATA World Congress attracts 73 countries HUNDREDS of participants from 73 countries were drawn to the 2010 FIATA (International Federation of Freight Forwarders Associations) World Congress, which was held in October in Bangkok, Thailand. Among the topic that was discussed during the opening ceremony by Alongkorn Ponlaboot, Deputy Minister of Commerce of Thailand, FIATA President Jean-Claude Delen, and TIFFA Chairman Suwit Ratanachinda was the importance of Thailand as a regional hub for the Greater Mekong Sub-Region and for South-Asia. Furthermore, five new countries — Cameroon, Nigeria, Qatar, Rwanda and Togo — which were included as Association Jean-Claude Delen members was the highlight of the event. “It will be one of FIATA’s main goals in the future to assist these new members to strengthen their position as the voice of the freight forwarding and logistics industry in their countries,” said FIATA President JeanClaude Delen. Philipp Kueffner from Germany received the 2010 Young International Freight Forwarder of the Year Award at the Congress.
Aqua Logistics’ China foray IN a bid to expand its trade ties into the Indian marketplace, FedEx Corp and the US Department of Commerce have joined hands to come together on a trade mission to India. The joint venture aims to enable better trade opportunities across economic hubs in India. The Mumbai-based Aqua Logistics has spread its tentacles to Beijing. Established in 1999, the company is one of the top global logistics and supply chain partners, delivering excellence across industries, through an integration of empowered people, processes and technology. “China is a very important hub for export and import activities related to emerging economies like India, Indonesia and Vietnam. There is huge potential to explore
here as China is opening its logistics market further and creating a good investment environment," said M S Sayad, Vice Chairman of Aqua Logistics Ltd, during the launch of the China subsidiary, Aqua Logistics China Ltd (Aqua China) at Beijing. Aqua China will not only provide supply chain consulting, logistics execution and project logistics but also deliver logistics solutions to clients by aligning their strategic and operational perspectives. With its strong foothold in Southeast Asia, Aqua Logistics also plans for further acquisitions in neighbouring countries. Its strong presence in the Indian subcontinent and the Middle East will help Aqua China to expand its business globally.
IBS holds Airline Forum for evolving industry IBS Software Services hosted an Airline Forum in Dubai in October. Over 35 airlines companies from all over the world attended the largest conglomeration hosted by an individual IT solutions provider. As the global airline industry showed signs of revival after going through a turbulent economic crisis, IBS Software Services took this as the right time to conduct an airline conclave to discuss issues that confront the global airline industry. Based on the theme “Partnering for Transformation”, over 100 seniormost officials discussed as to how IT can enable business transformation V K Mathews and help airlines maximise revenues. Furthermore, IBS' airline customers and partners were also included in the Forum. “We feel that the role of the airlines’ IT partner will be so important that traditional customer-vendor relationships will give way to a new paradigm of partnership to achieve success through transformation. The IBS Airline Forum will focus on how airlines and IT solution providers can join hands to create a sustainable and predictable industry. The Forum is part of IBS’ continuous pursuit to provide thought leadership to the air transportation industry to help it remain competitive in an ever-changing and evolving market,” said VK Mathews, Chairman & CEO of the IBS Group.
Jamshed Nusserwanji Guzder: The end of an era
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founder member of the Air Cargo Agents Association of India and also its first President, Jamshed Nusserwanji Guzder was a towering personality and with his death, a void has been created. ACCAI President paying his tribute mentioned J N Guzder as the crusading spirit who enabled the birth of ACAAI. The first IATA air cargo agent approved in 1946 in India, J N Guzder was also a travel agent. He was associated with many Swedish multinational companies in India and was also on the Board of a number of listed companies. Along with his son, Cyrus, J N Guzder steered Airfreight Limited (AFL) to make it one of the most successful and popular enterprises in the cargo industry today. Other than his activity with cargo, Jimmy Guzder (as he was popularly known) was also the first Chairman Emeritus
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of the Bombay Parsi Panchayat (BPP). He presided over charity and Parsi community matters for almost six decades. A philanthropist and a true gentleman, he was soft-spoken and the epitome of a graceful gentleman. He donated generously to several charities, Parsis as well as non-Parsi. A devout man, he regularly offered prayers at the Banaji Limji at Fountain, the oldest Mumbai Agiary. A highly successful businessman, he never lost his humility. Approachable, he would meet everyone and listen to their problems. Though his health deteriorated, he was always available to the poor and needy. He was also a lively man. The life of every party, Jimmy Guzder was always the dashing gent. Bestowed with a smile, his demeanour reflected a man who was contented with himself — always happy and at peace.
CRUISING HEIGHTS November 2010
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GLOBETROTTING
Made in heaven JASON AND Shae Pence met 10 years ago on the ground school portion of their training to get their pilot’s licence. So it was fitting that they wanted to get married on 10/10/10 to be precise. When Shae learned about a vintage B-17 aircraft coming to Warrenton-Fauquier Airport (located 22km southeast of the central business district of Warrenton (a town in Fauquier County, Virginia, United States), she knew
Rear problems she’d found the perfect venue for their vows. Dressed in period clothing, the two boarded the aircraft to be married in mid-air. But, just as a precaution, they even repeated their vows on the tarmac beneath one of the wings of the World War-II aircraft. “This is our thing,” Shae Pence said moments after their marriage. “This was actually what I wanted to do in the first place.”
A BRITISH Airways (BA) jet carrying 296 passengers from London to New York was forced to return to Heathrow due to an issue with its rear door. It all happened when minutes after the take-off, the cabin crew discovered the door's handle was loose and moving, and alerted the pilot. 1,500 feet above London, passengers and
Spare the rod… CASES OF currency smuggling, amounting to some taka 15 crore detected at the Hazrat Shahjalal Airport, are perhaps the tip of the iceberg. An air hostess of Bangladesh Biman was arrested for possessing taka 2.5 crore worth of foreign currencies in her possession. The latest cases of detection are believed to be results of jealousy between rival groups in Civil Aviation Authority of Bangladesh (CAAB) and Biman. Dealing with currency smug-
Lady Gagas in the air HE PHILIPPINE airline, whose flight attendants danced a safety demonstration to Lady Gaga, said they were surprised after a video of the routine became an online sensation, while the country’s flight attendant association labelled the dance “demeaning”. Cebu Pacific Airlines, a budget airline known for entertaining passengers with amusements such as mid-air trivia games, aimed at making safety demonstrations “fun and exciting”.
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Instead of the usual bored flight attendants robotically buckling seatbelts, passengers on the flight watched as women in bright orange shirts and stylish pants ran down the aisles of the plane. As they bopped, a sober voice-over told passengers what to do in case of an emergency landing. Passengers applauded at the end. Posted on the internet, though the video racked up more than six million hits in five days, Filipino women’s rights group Gabriela said in a statement that Cebu Pacific had become a purveyor of sexism and machismo. CRUISING HEIGHTS November 2010
gling requires a deep cleansing of the system consisting of CAAB, the Bangladesh Biman and others involved. Although a drive was started to flush out the corrupt elements but the job was left half done. The lackadaisical attitude of the government is the cause for not addressing these crimes seriously.
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Internet rival
Caught! A HIGHLY agitated passenger aboard a Qantas flight to Hong Kong was restrained by cabin crew after threatening other passengers. During the outburst, the man allegedly screamed at terrified passengers, telling them he was “going to kill myself, you will all die”. The incident took place in the middle of the night, after the plane had taken off. The man had reportedly been praying in Hebrew, before he threatened to open the aircraft’s door, saying it would be “God's will”. The man was restrained by flight attendants, who handcuffed him before moving him to a seat that was curtained off from the rest of the cabin. He was handed over to police after the aircraft landed in Hong Kong.
A bolt from the blue A PASSENGER was ejected from a JetBlue flight in New York after he tried to switch seats and then became angry when he was told he couldn’t. His fit delayed 126 passengers by nearly three hours. The incident happened at John F Kennedy International Airport, on a flight to Tampa, when the unidentified passenger moved to an unassigned seat as the flight was about to take off, which triggered off an argument with the flight attendant. The captain responded by requiring all passengers off
I HATE Ryanair, a website dedicated to angry criticism of the Irish lowcost carrier Ryanair, has been forced to give up its internet address. Claiming that the site was unfairly maligning it, Ryanair filed a case with Nominet, a UK-body dealing with inter-
net disputes. While defending the right to criticise, Nominet concluded that the site was illegally using the Ryanair brand name to make money. However, the site is already back online with a new address for its fans.
Illustrations by Rajeev Kumar
crew tried to secure the door handle to a latch as the pilot took steps to return to Heathrow at low altitude. Passengers were reportedly alarmed by flames coming from the plane’s engines as it approached Heathrow, the plane landing with a full load of fuel. The pilot made the decision to fly back to Heathrow as a precaution. Replacement flights were arranged for passengers from the aborted flight.
the plane and had to go through security screening a second time as well. The unruly passenger was not arrested, but was kicked off the flight.
Actress in distress ACTRESS ROJA alleged that ` 2.60 lakh cash, carried in her luggage, had gone missing in a flight from Chennai to Coimbatore. Soon after reaching Coimbatore airport, she complained that the cash kept in her handbag was missing. The actress said that she had handed over the bag to an air hostess to keep it in the luggage hold and on checking found the cash inside missing. An airport source said that she had noticed it missing only after leaving the airport premises. According to sources in the Jet Airways, the company has decided not to look into the complaint as the cash might have gone missing at points other than the flight. The local police have not received any complaint from the actress so far.
Strange brand ambassador AIR NEW Zealand has introduced a rather strange character “Rico” as their brand ambassador. Rico is an unusual talking furry creature who gets his genders mixed up and mispronounces words, often to the confusion of fellow passengers. Rico also has his own Facebook account, where he posts comprehensible messages. Air New Zealand has a history of unorthodox advertising.
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DOMESTIC AIRLINES Jet deal opens India for bmi JET AIRWAYS has entered into a reciprocal frequent flyer partnership (FFP) with bmi, the second largest airline at London Heathrow airport. The well-known Jet Airways frequent flyer programme, JetPrivilege, will allow its members to earn and redeem their JPMiles on the entire network of bmi. Similarly, bmi’s Diamond Club members may earn and redeem frequent flyer miles on the entire network of Jet Airways and Jet Airways Konnect. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, “Jet Airways offers guests unmatched pan-India connectivity as well as a growing 23-destination strong international network, while bmi’s network spans the UK, Europe, the Middle East, Central Asia and Africa, via the airline’s hub at London Heathrow. As such, the partnership is a mutually beneficial one, enabling guests to earn and redeem frequent flyer miles, while tapping into both carriers’ networks.” Jet Airways currently has frequent flyer partnership agreements with 22 leading international airlines, including American Airlines, Air France, Cathay Pacific, Delta, Emirates, Etihad, Gulf Air, JetLite, Lufthansa and many more.
Bengaluru to Mysore aboard Kingfisher KINGFISHER AIRLINES has launched direct flights connecting Bengaluru and Mysore, which will operate daily except on Saturdays. The launch of the new route marks the first time that an airline will connect Mysore and Bengaluru. B S Yeddyurappa, Chief Minister, Karnataka and Dr Vijay Mallya, Chairman and Managing Director, Kingfisher Airlines, and a host of other dignitaries flew on the inaugural flight from Bengaluru to Mysore. Commenting on the launch of the new route, Dr Vijay
Public opinion on BIAL expansion NOW USERS can help design Bengaluru International Airport Limited (BIAL) Terminal 1. After announcing the expansion of the existing Terminal 1, an interesting city campaign named ‘Smile Bengaluru’ was launched, featuring kids as the main visuals and encouraging citizens, passengers, employees and the larger travel community to give ideas on what they would like to see at the expanded terminal. Sanjay Reddy, Managing Director, BIAL, said, “The Terminal 1 expansion will feature much more than what one sees today. From an enhanced and modern design to expanded commercial spaces, this truly will take the airport a step closer towards becoming the international gateway to the south of India. And with this comes an opportunity for the city’s residents and airport stakeholders to share their thoughts and
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LAUNCHING NEW ROUTE: B S Yeddyurappa, Chief Minister of Karnataka and Dr Vijay Mallya, Chairman and Managing Director, Kingfisher Airlines arrive at the Mysore airport on the inaugural flight from Bengaluru to commemorate the launch of Bengaluru-Mysore route.
Mallya, said, “The launch of this new route is an important milestone for Kingfisher Airlines and a very special moment for me personally given the place of pride that Mysore has in our glorious state. Our convenient flights will make it easier for people to travel to and from Mysore and connect with the vast network of Kingfisher Airlines via Bengaluru.” The flights between Bengaluru and Mysore are being operated using the ATR family of aircraft and will offer the Kingfisher Red service. This new direct flight will offer travellers from Mysore a one-stop connection to Goa, Hyderabad, Mangalore, Pune, New Delhi, Hyderabad, Trivandrum, Kochi and Mumbai via Bengaluru.
ideas on how they would like to see the expanded T1. After all, it is their needs that we serve.” “Your airport is expanding. Tell us how you’d like it to be” is the line beaming across the city. All one needs to do is to log on to www.smilebengaluru.com and post one’s ideas and requirements. All comments will be transparent and viewable by all, in fact, readers can even vote for an idea that they liked. So, what’s your opinion? BIAL concludes ‘Champions 2010’: Bengaluru International Airport Limited (BIAL) has announced the winners of the four-day mega sporting event ‘Champions 2010’ held at Clarks Exotica in Devanahalli. The participation came in not only from BIAL employees, but from the rest of the airport community as well. Jet Airways emerged as the all-round winners of the championship and the Airports Authority of India (AAI) took the runners-up trophy. The range of games included serious indoor and outdoor games as well as fun sporting events, i.e. cricket, volleyball, handball, basketball, chess, golf, tug of war, treasure hunt to name a few. Commenting on the success of the event, Marcel Hungerbuehler, President, BIAL, said “The purpose of hosting this sports fest was to encourage various organisations working at BIAL to come together as one in an exciting and fun-filled environment. I am positive that this event has helped make the relationships stronger even outside of the playing fields, which is key to driving the growth of this organisation.”
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Amadeus, Cathay in pact for agents
AMADEUS, the travel technology provider and transaction processor for the global travel and tourism industry, has signed an extensive long-term content agreement with the Cathay Pacific Group, which offers Amadeus agents access to a comprehensive range of Cathay Pacific and Dragonair fares, schedules and availability. Rakesh Bansal, CEO, Amadeus India said, “We have been focussed towards securing long-term full content partnerships with leading carriers such as Cathay Pacific, providing continued stability in the travel distribution marketplace. Under the renewed agreement, Amadeus agents now have access to all Cathay Pacific and Dragonair content globally.” Under the agreement, Cathay Pacific and Dragonair have increased their content guarantee to Amadeus to include all fares, availability and functionality — again, under the same conditions — as the airlines distribute through its own website, call centre and other travel agency content access channels.In addition, Amadeus provides the e-Commerce technology that powers the cathaypacific.com website, enabling the airline’s customers to shop, book and manage their travel online.
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Gandhigiri at IGI airport DELHI DUTY Free Services Pvt. Ltd, duty free retail space at T3 at IGI airport, in association with Eternal Gandhi and Gandhi Smriti Museum, celebrated Gandhi Jayanti, the birth anniversary of Mahatma Gandhi. To commemorate Gandhi’s birth anniversary, Delhi Duty Free displayed Gandhi’s statue from Gandhi Smriti Museum, his charkha, famous quotes, poems and prayers by him at the duty free area. Special short movies talking about the Father of the Nation, his philosophies, his way of living were played at the LCD screens within the duty free area. In addition, Delhi Duty Free launched a promotional offer also for the international travellers on the occasion of Gandhi Jayanti that entitles them spending $20 or more to get a complimentary Mahatma Gandhi souvenir. Some of the products displayed by Eternal Gandhi in the area included Eternal Gandhi paper stand with watch (Crystal Cube with the meaningful and relevant message of nonviolence), 50 years calendar, Eternal Gandhi Crystal Cube MARK IV, Eternal Gandhi key ring and much more. The celebrations went till October 20, 2010.
Fly Colombo with SpiceJet STRENGTHENING air connectivity between India and Sri Lanka, low-cost carrier SpiceJet is all set to fly to Colombo. The flight from Chennai to Colombo was flagged off by Kalanithi Maran, Chairman, SpiceJet. The SpiceJet management team, including Kishore Gupta, Director; Bhulo Kansagra, Promoter and Director; and Samyukth Sridharan, Chief Commercial Officer; flew to Colombo on the
inaugural flight to commemorate this special occasion. Kishore Gupta said, “By making travel to Colombo less expensive and hassle-free, we are confident that this route will be very popular. The initial response to the launch of these flights has been extremely encouraging and we look forward to rapidly establishing our presence in the Sri Lankan market and at the same time strengthening air connectivity to destinations within the SAARC region.” SpiceJet will now operate daily flights between Colombo and Chennai, which will further be connected to other important hubs within the domestic network of the two nations. The base fare on this route begins from `999.
Travelport named Best GDS in the Asia Pacific GLOBAL TRAVEL services company Travelport has been named “Best GDS” in the Asia-Pacific region for the second year running,
A TRIBUTE TO BAPU: On the occasion of Gandhi Jayanti, statue of Mahatma Gandhi on display at Delhi Duty Free at T3 at IGI airport.
receiving the coveted Travel Supplier Award at the 21st Annual TTG Travel Awards Ceremony and Gala Dinner on October 7, 2010. Travelport’s win was based on the votes of more than 48,000 TTG readers across the Asia-Pacific region, registered between June and August. Almost 700 travel industry professionals attended the awards ceremony gala dinner, hosted at the World Ballroom of the Centara Grand and Bangkok Convention Centre. Marco Gorin, Chief Commercial Officer, InterGlobe Technology Quotient, said, “We are absolutely delighted to win this award for a second successive year. It reflects our commitment to delivering world-class technology and service across the region and is a vote of confidence from our customers.”
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INTERNATIONAL AIRLINES The sporting spirit of Emirates THE EUROPEAN Tour and Emirates Airline have teamed up for the golf season’s grand finale — the Dubai World Championship, which will see every member of Europe’s triumphant Ryder Cup team line up to contest the $7.5 million prize fund. The airline will be the official airline of the climax to
SPORTS SPONSORSHIP: Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline, is joined by Saeed Harib, Managing Director, Nakheel Marine & Leisure, to announce that Emirates would be the official airline of the Dubai World Championship.
Etihad to launch services to Bengaluru
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‘The Race to Dubai’ from November 25 to 28, 2010, with defending champion Lee Westwood, as well as the 12 Ryder Cup heroes, among the all-star field. Emirates will be flying in many of the players to the UAE, as well as spectators from around the world. Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief Executive, Emirates Airline, is delighted to be involved with the event which attracted more than 59,000 spectators in its inaugural year, as well as reaching over 350 million television viewers worldwide. He said, “The European Tour stages tournaments at many of the 25 destinations on our European network, as well as at a number of the 80 other locations we fly to across the globe, so it really is a perfect fit for Emirates… We already sponsor a number of tournaments on The Race to Dubai schedule so it made sense for us to become involved with the final event of the season, especially with it being held at our home base.” Free night for Emirates pax: Wolgan Valley Resort & Spa, a stunning property outside Sydney, is offering a twonight stay for the price of one night, to Emirates passengers booked in First Class or Business Class on all flights to Australia or New Zealand, until December 15, 2010. For the price of AUD1,950 per room per night (based on double occupancy), guests can enjoy a two-night stay in a heritage suite, including breakfast, lunch, dinner, non-alcoholic beverages and a selection of regional alcoholic beverages with meals and 10 per cent service tax. Also included are two on-site nature-based activities per day.
ON JANUARY 1, 2011, Etihad will commence a four-flight-per week service to its eighth Indian and world’s 66th destination, Bengaluru, while daily flights at the commencement of the summer scheduling season effective March 27, 2011. Making the announcement, James Hogan, CEO, Etihad Airways, said, “We are delighted to launch our new service to Bengaluru and to serve our customers in Karnataka. Etihad is committed to serving the Indian market and people, whether it is Indian nationals who are residing in India or in countries across the world.” While, BIAL President Marcel Hungerbuehler said, “Our focus has always been on ensuring that we provide our passengers with better connectivity between Bengaluru and the rest of the world.” Etihad will operate a two-class Airbus A320 on the new Bengaluru route configured to carry 136 passengers with 16 in Business Class and 120 in Economy Class. The flights from Abu Dhabi to Bengaluru will operate on Mondays, Thursdays, Fridays and Saturdays, while the return flights will offer services on Tuesdays, Fridays, Saturdays and Sundays.
CentralWorld, Bangkok, where more than 700 travel industry professionals were present. On receiving the award, he said, “We are proud to be named the best low-cost airline again. This award reflects AirAsia’s commitment to excellence and to growing travel and tourism POSE: (From second left) in the region. We have WINNING Fred Wang, Chairman of TTG Asia; flown 100 million guests in Darren Ng, Managing Director of only eight years of operation TTG Asia; and Aziz Bakar, Chairman as a low-cost airline that has of AirAsia Berhad. made it truly possible for everyone to fly.” Delhi/Kolkata to Bangkok: Effective December 1, 2010, AirAsia will commence its direct flights to Delhi and Kolkata from Bangkok. The flights on both routes will be available four days a week on Monday, Wednesday, Friday and Sunday.
AirAsia is Best Asian Low-Cost Carrier
Cathay unveils new services at HKIA lounge
AIRASIA is named the ‘Best Asian Low-Cost Carrier’ by TTG, Asia Pacific’s leading travel news publisher. AirAsia has been unanimously named Best Asian Low-Cost Carrier by the readers of TTG Asia, TTG China, TTGmice, TTG-BTmice China and ttgasia eDaily, who cast 48,000 votes in a poll held from June to August this year. The award reflects the airline’s popularity among travel trade insiders and the travelling public. Aziz Bakar, Chairman, AirAsia, received the award at the 21st Annual TTG Travel Awards 2010 Ceremony and Gala Dinner in Centara Grand and Bangkok Convention Centre at
CATHAY PACIFIC Airways has announced the opening of The Cabin, the airline’s latest passenger lounge at Hong Kong International Airport (HKIA). The 1,339 sq m space, designed by London-based architectural firm Foster + Partners, is located by Gate 23 on the airport’s central concourse, offering passengers a new level of comfort and convenience before their flight out of Hong Kong. Described as “contemporary, refreshing and dynamic”, The Cabin features an ultra-modern design that introduces brand-new seating and dining concepts for the benefit of passengers. The
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new lounge is separated into five zones — The Reception, The IT Zone, The Deli, The Health Bar, and The Relaxing Zone — and the design features a blend of warm wood, bamboo, white marble and dark granite.
Oberoi, Lufthansa forge long-term ties OBEROI HOTELS & Resorts and Lufthansa have entered into a long-term strategic partnership as part of their constant endeavour to offer guests additional benefits and enhanced value. This partnership will commence with Oberoi Hotels & Resorts joining Miles & More, Lufthansa’s frequent flyer programme.
HIGH-TECH: Cathay — The IT Zone is equipped with ultra-high-speed internet access and features 11 PCs, six Apple iMacs and 20 Apple iPads in addition to a video-conference room.
Members of Miles & More can earn 500 or more miles for each stay at the Oberoi hotels and resorts in India, Indonesia, Mauritius and Egypt. Until 30 November 2010, members will earn double miles for each stay and a complimentary upgrade to the next category of rooms, subject to availability.
KLM celebrates 55 years of flying TO commemorate the launch of its first flight to New Delhi way back in 1955, KLM India launched special promotions for its customers in October this year. In addition, KLM also celebrated the occasion by launching a special ‘55 years of the Blue’ contest for travel agents. This contest, which was run from October 13 to 19, 2010, invited travel agents to decorate the entrance of their office with the KLM colour theme. Reviewing the artwork was a true Blue surprise for KLM to see such an overwhelming response. The winner of the contest was announced by hosting a gala party for top 30 travel agents on October 25, 2010 at Delhi. Honouring the spirit and efforts of the travel fraternity, KLM presented a grand prize of two Business Class tickets to the
APPRECIATION FOR ARTWORK: Pieter De Man, General Manager with the winner of the contest - J K Budhraja from Jetways Travel Agency.
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winner — J K Budhraja from Jet ways Travel Agency for the best decorative theme. Pieter De Man, General Manager, Air France-KLM, Indian subcontinent said, “This is truly a proud moment for us, and we greatly appreciate the efforts put in by our travel agency colleagues for this contest. India remains one of KLM’s important growth markets and we hope to strengthen this relationship to see more celebrations for coming 55 years as well.”
APPOINTMENT S Sanjay Agarwal joins Kingfisher
KINGFISHER AIRLINES has appointed former SpiceJet Chief Executive Officer Sanjay Agarwal as its CEO with immediate effect. Agarwal, who left SpiceJet in June, will now report to Kingfisher’s Chairman and Managing Director Dr Vijay Mallya. Dr Mallya said, “Sanjay’s most recent Sanjay Agarwal assignment was as CEO of Spicejet Limited, which he successfully turned into profit. He has a good understanding of the Indian aviation industry and the various unique business imperatives in India,” adding: “Kingfisher’s executive VPs and other officers will now report directly to Agarwal.” “We look forward to a positive contribution from Sanjay in leading the growth and profitability of Kingfisher Airlines going forward,” he added.
SpiceJet appoints Neil Mills as CEO NEIL RAYMOND Mills has joined SpiceJet as its CEO. Prior to joining SpiceJet, Neil Mills was Chief Financial Officer (CFO) of Dubai government-owned carrier (LCC) FlyDubai. He had also worked with one of Europe’s low-cost airline, EasyJet, and has expertise in the budget airline sector. Neil Mills Appointment of Mills as CEO is part of revamp exercise of the airline by its new promoter and media magnet Kalanithi Maran, who in June had clinched a deal to the low-cost carrier.
Cathay’s North & East India sales managers ABHIJIT ABHYANKAR has been appointed Cathay Pacific Airways’ Area Sales Manager — North India, while Yasser Ahmad as Assistant Sales Manager — East India. Both will oversee passenger sales and revenue for Cathay Pacific and is responsible for the development and execution of sales strategy Abhijit Abhyankar for the region. Abhijit began his career in the hospitality industry in 1999 and later he joined KLM in 2004 handling corporate and trade sales. In 2008, he was with Jet Airways, handling key corporate accounts for India. He joined Cathay Pacific in November 2009 as corporate sales manager. Yasser Ahmad Yasser started his career with Damania Airways in 1994 as airport manager Kolkata. Then he worked with British Airways for twelve years (1997-2009) as account manager East India and then moved on to become General Manager of Travels & Rentals, a TMC with five branches in East India.
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TRAVEL & TOURISM The moment of honour TOURISM MAGAZINES, Hospitality India and Explore the world, in association with Austrian Tourism, organised the sixth Hospitality World & Explore the World Annual International Awards 2010. The event took place at The Ashok Hotel, Convention Hall, New Delhi on September 3, 2010. The award ceremony was graced by eminent Prabha V Raghava, CEO, Tours Limited LLC - USA, receiving the award for Best Tour Operator North & South America from Salman Khurshid; Hans-Joerg Hoertnagl; and Nasir A Wani, Tourism Minister, Government of Jammu and Kashmir.
T K A Nair, Principal Secretary to the Prime Minister along with Dr Farooq Abdullah; Salman Khurshid and Hans Joerg Hoertnagl, Trade Commissioner of Austrian Embassy.
personalities like Dr Farooq Abdullah, Minister for Renewable Energy and Salman Khurshid, Minister of Corporate Affairs. In addition, there were many notable figures from different fields of the industry who graced the occasion.
The Met opens RINGING IN ITS tenth anniversary, The Metropolitan Hotel after refurbishment revealed its new refreshed logo, website, look and avatar on 10.10.10. Now nicknamed ‘The Met’, the smart and swanky hotel provides a peek into the future of hospitality, having raised the bar — from elegant design elements to understated service standards — several notches higher. Vipul Gupta, Executive Director, The Metropolitan Hotel, making an announcement about the re-launch, said, “In keeping with new trends and guest expectations, we have infused a new life into our property. We welcome guests to The Met: the future of hospitality and renew our commitment to excellence, NEW AVATAR: All day world cuisine restaurant Zing at The Met; (inside) the renovated deluxe room.
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by providing luxury with a conscience and thereby setting fresh benchmarks in the capital.” Liberally sprinkled with both business essentials and travel comforts, The Met is the perfect destination for fine living for international business or upscale leisure travellers as it is conveniently located in the heart of business and commercial hub of New Delhi. The transformation in the hotel’s personality becomes apparent the moment you step in to the lobby — the use of lighter colours and customised interior finishing add to the lively atmosphere. The renovated rooms with high-end facilities are more luxurious, ensuring the guest is relaxed. The Met offers renowned restaurants to captivate guests with eclectic dining options at the new ritzy restaurants and bar, including Sakura (Japanese restaurant), Chutney (Bar + Tandoor) and Zing.
TAAI President honoured THE President of Travel Agents’ Association of India (TAAI), Rajinder Rai has been elected as the Director of United Federation of Travel Agents’ Associations (UFTAA) during the annual general meeting of the Federation, held recently in Rimmi, Italy. “I am happy and honoured with this development and look forward to a fruitful and interactive year in UFTAA,” said Rai from Rimmi. UFTAA represents over 70,000 travel Rajinder Rai agents all over the world. TAAI Convention 2010 in Phuket: Enlightening, Engrossing, Enriching… That was TAAI’s annual Indian Travel Congress, 59th Convention and Exhibition, at Laguna, Phuket with over 800 delegates gracing the occasion. The convention, with its theme ‘Be the game changer’ was kickstarted when TAAI President Rajji Rai called upon agents to transform themselves to consultants and expand their horizons by being a ‘game changer’ in the globally challenging scenario. Rai said, “More than being informative, it is necessary to first be aware of ourselves and have clear set goal as game changers…With the opportunities we have here today, we can work at keeping abreast of what is to be done next.”
BILATERAL TIES: (From l to r) Duncan Webb, Executive Vice President -Chief Marketing Officer, Amari; Pinak Ranjan Chakravarty, Ambassador of India in Thailand; Rajinder Rai, President, TAAI; and, Jagdeep S Rikhy, Vice President, TAAI; (right) TAAI delegates enjoying spa massages and treatments from Sivara Spa, Amari Coral Beach, Phuket.
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TAFI Convention in Dubai THE OFFICIAL Memorandum of Understanding (MoU) between the Travel Agents Federation of India (TAFI) and the Dubai Department of Tourism & Commerce Marketing (DTCM) was signed by Khalid A. Bin Sulayem, Director General, DTCM, and Ajay Prakash, President, TAFI, for TAFI’s International Convention 2010, which will be held in Dubai from November 25 to 28, 2010. The theme of the convention is “Coopetition — Key to Success”, which can be loosely translated to mean cooperation between competitors and competition among partners. Over 1,000 people are expected to attend the convention. The National Managing Committee, the Joint Council of TAFI and several officials of DTCM including its India Director, Carl Vaz were present at the signing ceremony. In an interesting coincidence, the signing happened on 10/10/10 at precisely 10:10 a.m. i.e. on 10th October 2010 at 10:10 hrs. Commenting on
Speaking at the event, Pinak Ranjan Chakravarthy, India Ambassador to Thailand, appreciated the efforts of TAAI in bringing the convention to Phuket and lauded the bilateral ties between the two nations. The next two days (September 25 and 26) saw informative, interactive and serious business sessions, particularly on the role of travel agents and the tourism business in India assuming greater significance amongst many other topics.
Akbar Travels bags President’s Award AKBAR TRAVELS, the travel agent in India with 54 IATA and 14 non-IATA branches, is the recipient of the Abacus President’s Award at the Abacus International Conference (AIC) 2010. The
honour is given to the company with the greatest achievements in the criteria of investment in its people, openness to new ideas and adoption of new technology tools, including attention to customer service and investment in CRM, new business development initiatives and innovation in marketing and business efficiency. K V Abdul Nazar, Chairman and Managing Director, Akbar Travels, said, “We are thrilled to win this prestigious President’s Award from our preferred and largest GDS partner. Akbar Travels has always been in the business of great service and professionalism since 1978, and with the help and support of Asia’s leading provider of travel solutions and services, will continue to expand in its growth strategies to maintain a leadership position in the Indian market and rest of Asia.”
Onyx takes over Shama THAILAND-BASED, hotel management company, Onyx Hospitality Group has acquired Asian boutique serviced apartment company Shama. Founded in 1996, Shama has 13 properties in gateway cities
GREAT START: Ajay Prakash, President TAFI, Khalid A Bin Sulayem, Director General, DTCM, The National Managing Committee, the Joint Council of TAFI and several officials of DTCM, including their India Director Carl Vaz at the signing ceremony for TAFI Convention 2010; (left) Ajay Prakash receiving gift from Khalid A Bin Sulayem.
the coincidence, Ajay Prakash said, “This is a very auspicious date and time according to the Chinese calendar. We hope that this auspicious start goes on to make TAFI Convention 2010 the most successful one yet.”
in Greater China and Thailand. Following the acquisition, Shama will continue to trade under its brand name and will become the fourth brand in the Onyx portfolio — the others being its original hotels and resorts brand Amari; its select service brand Ozo; and its luxury brand Saffron. This acquisition will create synergy for both Onyx and Shama across Asia and will support the growth of Onyx capabilities in the serviced apartment sector. Peter Henley, Chief Executive Officer, Onyx, said, “This marks the further development and expansion of the Onyx brand following Onyx’s growth in India, which was our first step in expansion. This acquisition also marks the strengthening of our ability to operate across markets, across sectors and across the quality spectrum from value-orientated products through mid-scale and luxury hospitality offerings. Onyx will also add to its serviced apartment capabilities with this acquisition.”
Asia’s leading luxury hotel is in Gurgaon TRIDENT, GURGAON, has been voted ‘Asia’s Leading Luxury Hotel’ at the World Travel Awards; 17th annual ceremony. This year, 185,000 travel professionals across the world participated in an online poll to arrive at the winners. Located in the business district of Gurgaon, the hotel features 136 rooms, three restaurants, two bars, a swimming pool, a spa and Trident, Gurgaon. a gymnasium.
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SNIPPETS Expensive, yet most desired by Indians FOR YEARS, Bollywood’s producers and directors have favoured the pristine backdrop of Switzerland for their films. From An Evening in Paris to Dilwale Dulhaniya le Jayenge to Kabhi Khushi Kabhi Gham, Indian actors have had the audience believe that Switzerland is the ultimate paradise… and paradise does not come cheap! According to the Hotels Price Index by Hotels.com, the hotel booking website, Switzerland is one of the most expensive destinations for Indian travellers where they
momentum going and be recognised as the best resort spa in the world in the coming years.” The Zuri Kumarakom Resort & Spa, Kerala, houses Maya Spa, the largest spa in south India. With an extremely efficient, welltrained staff, Maya Spa lays emphasis on every element, ingredient, treatment, and even touch.
Crowning glory for Oberoi Hotels FOUR Oberoi hotels have been ranked amongst the 30 best in the world by readers in Condé Nast Traveler, USA, 2010 Readers' Choice Awards. In the same readers’ poll, four Oberoi hotels have been rated amongst the 10 best in Asia. The Oberoi Vanyavilas, Ranthambore; The Oberoi Udaivilas, Udaipur; The Oberoi Amarvilas, Agra and The Oberoi Rajvilas, Jaipur have been ranked 15th, 20th, 24th and 26th respectively in the world. The Oberoi Vanyavilas has been ranked the second best resort in Asia. The Oberoi Udaivilas, The Oberoi Amarvilas and The Oberoi Rajvilas have been rated fifth, seventh and eighth best hotels respectively in Asia.
Feather in the Cap for Banyan Tree PULP DESTINATION: A still from Dilwale Dulhaniya Le Jayenge showcasing the famous Zurich, Switzerland in the backdrop.
splurge the most on hotels. According to the report, on an average Indians spend `8, 581 per room per night whereas they pay `8, 552 for hotel in Italy which is the second most expensive destination in the list followed by UK (`8,380), Singapore (`7,949), Austria (`7,815) amongst others. Abhiram Chowdhry, Marketing Director, Asia Pacific for Hotels.com, said, “Indians have always treated Switzerland as one of the most-desired countries and are ready to pay a whooping price to enjoy the exotic destination. The report clearly quotes that Switzerland tops the list as the most expensive destination but it does not stop Indians from visiting the country and enjoy its ultimate beauty.”
Zuri Kumarakom is ‘Best Luxury Spa Hotel’ AFTER BEING awarded ‘Best Spa Hotel and Resort’, Asia Spa Awards and recommended by Conde Nast Johanssen, The Zuri Kumarakom Resort & Spa has bagged another prestigious title, the Today’s Traveller Award 2010 for ‘Best Luxury Spa Hotel’. Held at Hotel Le Meridien, New Delhi, the fourth edition of Today’s Traveller Award aimed to recognise and honour outstanding performers in the travel and tourism sector. Priti Chand, AVP Corporate Communications, Zuri Group Global, received the award from Selja Kumari, Minister for Tourism. On accepting the award, Priti Chand said, “With this award, we are humbled to have been recognised for our commitment towards making Maya Spa a brand to reckon with. We hope to keep the
ACCOLADES: Priti Chand, AVP Corporate Communications, Zuri Group Global, accepting the award from Selja Kumari, Minister for Tourism.
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REACHING the 600th milestone since its inception in 1994, Banyan Tree Holdings Limited has received over 70 awards till today. Maintaining consistency as a developer of premium resorts, hotels and spas in the world, Banyan Tree continues its efforts in expansion all over the world. Continued efforts and innovation in the realms of corporate social responsibility (CSR) and spa services have also Banyan Tree Mayakoba garnered further recognition in 2010. The group’s foray into Mexico and China has garnered significant recognition with Banyan Tree Mayakoba emerging as the first among 180 hotels and also recognised as the most romantic hotel in the Carribean and Mexico. Opened in 2009, Banyan Tree Mayakoba and Banyan Tree Cabo Marqués have inclusions in the prestigious Travel+Leisure USA and Condé Nast Traveler USA.
America Express forecast acts as tool to companies FORECASTING the pricing trends of air fares and hotels around the world, the American Express Business Travel indicated a three per cent and nine per cent increase in air fare and hotel rates. The car rental rates are likely to come down in North America and Europe. This kind of pricing forecast helps the companies in managing their budgets and re-examining their program strategies which in the long run will protect them from price rise. “Throughout 2010, companies have lifted travel restrictions brought on by red bottom line fears and this is expected to continue into 2011 as firms look more toward growing the top line. Yet pricing power will swing back to air and hotel suppliers for the first time in two years in 2011 as more competition for limited seats on planes and increased occupancy levels at hotels are expected,” stated Robert Tedesco, Vice President of Global Business Partnerships & Advisory Services for American Express Business Travel, Japan and Asia Pacific.
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Oprah ready to bring Qantas on the ground “Q
antas never crashed.” So said Dustin Hoffman, playing autistic Raymond Babbit in the movie Rain Man. There could not be a better testimony to the safety record of an airline than that. If that was publicity, wait till Oprah Winfrey takes it on herself. In an initiative that can only be described as historic, the Australian national airline will add another marketing feather in its cap. The TV show queen announced that she would take a 300strong TV audience in a Qantas flight to Australia to celebrate the airline’s 90th birthday. And guess who would be in the pilot’s seat: John Travolta, a qualified commercial pilot. Incidentally, Travolta is also Qantas’ brand ambassador. The Oprah programme will include
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about 300 Australian fans who will be invited to sit in the audience at Sydney Opera House. In addition, there will be the regular crowd of 40 million American viewers and will be shown in 145 international locations. That will certainly put Australia on the eyeballs of many millions of prospective travellers. It is no wonder that Qantas CEO Alan Joyce is overjoyed: “Having that Qantas aircraft come out on the show and John Travolta getting out of it — you know — money couldn’t buy that level of publicity in the United States and around the world.” The carrier’s CEO also believes that Oprah’s December visit could be worth hundreds of millions of dollars in marketing benefits to Australia and the airline. “After Rain Man, everybody knows
SHOW-S STEALER: (Clockwise from right) John Travolta embracing Oprah Winfrey on Oprah Winfrey show; John Travolta with Australian Actress-Singer Olivia Newton-John at the Qantas A380 welcome ceremony at LA; Dustin Hoffman in the movie Rain Man; and, John Travolta posing with Qantas Airhostesses.
about Qantas and its safety record, but I think in addition to this, it will really help,” he added. The expected financial windfall from Oprah’s visit is not a bad return for a whopping A$3 million investment. Although the Australian government actually came under fire for spending an exorbitant just to lure the superstar, the tourism ministry feels to enhance that big coverage the amount is very small. We don’t know who will watch the programme in India but Australia and Ozzies certainly need a publicity boost in this part of the world and Oprah’s help would not go abegging!
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RNI No. DELENG/2006/16897 Posting Dt. 8-9/11/2010 Reg. No. DL(E) 20/5294/2009-11