Jet To Close Check-In 45 Mins Before Departure

Jet Airways on Monday announced that its check-in counters across six major airports will be closed 45 minutes prior to flight departures in the wake of new DGCA guidelines on reducing flight delays. The new timings would be effective from August 6. “This in effect would mean that the airline will close check-in counters 15 minutes earlier in an effort to comply with the new directive from the DGCA,” a press release stated.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Healthy travel demand lifts aviation stocks

Airline stocks have been moving northwards in the last month on the hope that aviation industry could be well on the path to recovery. In the first quarter ended June 30, the airlines' operational income has improved, and with the growth in air travel demand, the airlines say the future outlook looks positive. Since July 2, Jet Airways stock has risen 27 per cent to close at Rs 674.60. During the same period, Kingfisher Airlines was up 6.6 per cent to close at Rs 53.30 and SpiceJet was up 9.4 per cent to close at Rs 62.05. “Strong growth in (passenger) traffic and improved performance at operational level is reflecting in the stock prices of airline companies,” said Senior Analyst, Mr Mahantesh Sabarad, from Fortune Equity Brokers India. Another analyst from an Indian brokerage firm said that yields are stable and there are signs of recovery in the industry, which are pushing up the stock prices. Domestic airlines flew 45.04 lakh passengers in June, up almost 22 per cent against June 2009. In May, the airlines flew 47.85 lakh passengers which was again almost 22 per cent increase compared to the same period last year. According to a recent research report by IDFC Institutional Securities, “Post hitting the peak traffic levels in FY-10, the Indian aviation sector is expected to see continued traction in passenger growth (for April 2010, Indian aviation reported a 26.3 per cent growth at 4.1 million). With calibrated increase in capacity and traffic expected to grow two times the supply, yields and loads for the Indian aviation industry are expected to improve going ahead. With the cost curve of the industry at its bare bones, we expect the industry to return to profitability after 3 years of consistent losses”.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

DGCA introduces safety norms for flights

The Directorate General of Civil Aviation (DGCA) has come out with detailed safety guidelines for commercial aviation. The norms was triggered by the Mangalore air crash in May, in which 158 people died. Amid allegations that the crash could have occurred due to pilot fatigue, the regulator has set down norms on what airlines need to follow to avoid that. From now on, all airlines will have to establish flight time and duty period limitations and a rest scheme for pilots and cabin crew. DGCA has specified that these details will now have to be included in the operations manual of airlines. In case the airlines think of introducing variations in duty and rest hours, the airline will have to seek permission from DGCA for this. Besides, airlines will also have to maintain detailed flight time records, duty periods and rest periods of pilot and cabin crew. Till now, airlines had been following the DGCA’s flight duty time limitation (FDTL) guidelines, implemented in 1992. But this did not make it clear whether all airlines were maintaining details of duty timings and rest periods. An official from a private airline said that with an automated rostering system in place, no pilot or cabin crew can be rostered for duty if h/she is within the rest period. “Our software tracks periods of duty and rest,” he said. Another airline official said that flight duty hours are checked regularly and as per new norms, rest periods will also be have to be tracked. The DGCA has also asked airlines to keep track of the total cosmic radiation that crew are exposed to over 12 months. This applies to flights operated 49,000 ft above sea level.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Govt dangles subsidy carrot to private airlines

The State Government plans to subsidize operations of private airlines in order to ensure airline traffic at minor airports coming up across the State. If the draft minor airport (operation and maintenance) policy formulated by the State Infrastructure Development department is approved by the State Cabinet, the Government will bear the cost of some important components of O&M of minor airports, including fuel cost, personnel cost, depreciation cost and airport charges. The aim is to woo private firms in taking up O&M of minor airports by making it financially viable, officials sources. The draft policy is likely to be placed before the next meeting of the State Cabinet for its approval. With the crash of aviation sector in the country, private companies are shying away from taking up O&M of minor airports in the State. The Government has had a bitter experience with Mysore and Belgaum airports. Though they are ready for operation, no private company is showing interest to take up O&M. For, private firms are not finding the operations viable. There are complaints from public that ticket prices are on a higher side to Bangalore-Hubli sector. The cost goes up if the load is less, officials pointed out. Officials sources said the Government is worried about the fate of airports projects already taken up. Work has commenced on five new airports in Shimoga, Gulbarga, Hassan, Bijapur and Bellary on public-private partnership basis. The existing Hubli (into an international airport), Belgaum and Karwar airports are to be expanded. Moreover, 13 airstrips for small towns, including Davangere, Raichur, Bagalkot, Chikmagalur, Gadag, Chitradurga and Kollegal have been lined up. Aimed at providing air connectivity at every 100 km distance across the State, the airports are expected to be completed in next two years. “But the big question now before the Government is: Will private firms find these projects financially viable to take up their O&M once they are completed? Minor airports were planned during 2006-07 when the country was witnessing aviation boom and private companies were eager to invest. Even private airlines had seen immense potential in tier- II cities. Now, it is feared that private firms may not show any interest,” officials explained. Nodal agencies The department appointed the Infrastructure Development Corporation (Karnataka) Limited (iDeCK) as the nodal agency to implement airstrip projects in Chitradurga, Karwar, Haveri, Kollegal, Yadgir and Koppal. The Karnataka Housing Board will be the nodal agency for implementing proposed airstrips in Raichur, Gadag, Chikmagalur, Bagalkot, Udupi and Davangere. The two nodal agencies have been entrusted with the responsibility of determining the type of airstrips required, identify and acquire the required land and getting the required clearance from Airport Authority of India, officials said. The department has planned to develop airstrips in three phases. In the first phase, it will take up about four important places. Each of the airstrip is estimated to cost Rs 40 crore.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

AI Cancels Deal With Aussie Firm

Loss-making Air India said on Wednesday it had cancelled its controversial $1.6-million deal with an Australian firm to revitalize its brand identity for the upcoming Commonwealth Games. “Following a review of the brand and identity management plans, the project with Cato Purnell Partners has been annulled,” said an Air India spokesperson.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Kingfisher Airlines’ new service

Kingfisher Airlines launched daily direct flights on the New Delhi-Ludhiana- New Delhi route. “... King- fisher Airlines is currently the only private airline to offer services to Ludhiana,” the company said in a statement. The flights between New Delhi and Ludhiana are being operated as Kingfisher Red service, which is a “unique class of low-fare flying,” it added.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Jet to fly different route for growth

Jet Airways, one of the leading Indian private carriers, is not looking to expand at the same rate as it did a couple of years ago. The company is, instead, planning a more consistent growth strategy going forward, said a senior Jet Airways official. “In 2007-2008 we expanded like there is no tomorrow. This is not the same Jet Airways anymore. When we expand, it will be to strengthen the network contribution to the company. The routes we expand to should be those where we have a chance to become profitable in three to six months nothing more than that,” Jet Airways’ Chief Commercial Officer, Mr Sudheer Raghavan, told.  According to Mr Raghavan, long-haul routes (international) traditionally take 18-24 months to become profitable, and Jet, does not “have the appetite or the wherewithal” for such a long gestation period. While he did not elaborate on whether these routes will be domestic or international, Mr Raghavan said the strategy ahead could also be increasing frequency or “the gauge” on routes that the airline already operates on. “One way of improving our revenues is to add more capacity on routes where we have already established our presence as opposed to opening brand new routes. Brand new routes are riskier than increasing capacity on existing routes. So, growing need not always mean newer destinations, it could also mean growth on existing routes,” he said. In the last 18-24 months, the company has addressed its cost issues very strictly, he said. Without making additions to cost like manpower, the carrier managed to take its passenger volumes up. “At the time of the start of this two-year period (last two years of global economic crisis), our staff strength was 13,600 people, today it’s about 11,300 so we knocked off 2,000 not by retrenchment… but we didn’t fill the positions left vacant with attrition,” he said. Turnaround of JetLite and introduction of Jet Airways Konnect in 2008 also helped the carrier increase its passenger volumes without making an addition to capacity. NEW SERVICES “We launched our new services to the Gulf and other places (with the existing capacity). So we took all that additional passengers and increased flights without increase in manpower. We tightened our belts as we went through this period. By introducing Jet Konnect we increased the number of seats in the cabin so our cost per available seat kilometer came down,” he said.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

DGCA set to restrict aircraft passenger load

The DGCA may soon levy restrictions on the passenger load carried in certain types of aircraft landing at some of the 11 critical airports in the country in case corrective measures recommended by the DGCA are not carried out either by the airport operators or concerned state governments. In the wake of the Mangalore air-crash in May this year, special DGCA audit inspection teams have completed inspection of eight of the 11 critical airports in the country. The 11 critical airports are Leh, Kullu, Shimla, Port Blair, Agartala, Lengpui, Calicut, Mangalore, Jammu, Patna, Latur.
Sources said that the DGCA was seriously considering imposing restrictions on passenger loads at aircraft landing, for instance, at Patna airport which is one of the critical airports. “Certain tree-tops are obstructing the landing approach of aircraft at Patna.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Now, Airlines To Compensate You For Delays, Cancellations

It’s now the turn for airlines to fasten seat belts. From Thursday, fliers can claim compensation for flight delays, denial of boarding or flight cancellations, according to guidelines formulated by the Directorate General of Civil Aviation (DGCA). The draft policy proposes a compensation of Rs 2,000 - 4,000 if a flight is delayed for more than two hours, but only if the airline is directly responsible for the delay. If the journey is delayed by more than 24 hours, the airline will have to compulsorily provide food and accommodation to passengers. “It will be on the DGCA website on Thursday,” said Mau-shumi Chakravarthy, civil aviation ministry spokesperson. Until now there was no rule to protect stranded fliers. Their only option was to approach a consumer court, often a time consuming exercise. The draft also protects the rights of travelers denied boarding during peak seasons owing to airlines overbooking flights. “Airlines will have to pay compensation in addition to a full refund,” reads the draft. Passengers are not entirely happy. “A workers’ strike can’t be equated with a natural calamity or emergency. Also, why allow airlines to get away for delays of less than two hours?” asked Sudhakar Reddy, president, Air Passenger Association of India.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Govt dangles subsidy carrot to private airlines

The State Government plans to subsidize operations of private airlines in order to ensure airline traffic at minor airports coming up across the State. If the draft minor airport (operation and maintenance) policy formulated by the State Infrastructure Development department is approved by the State Cabinet, the Government will bear the cost of some important components of O&M of minor airports, including fuel cost, personnel cost, depreciation cost and airport charges. The aim is to woo private firms in taking up O&M of minor airports by making it financially viable, officials sources. The draft policy is likely to be placed before the next meeting of the State Cabinet for its approval. With the crash of aviation sector in the country, private companies are shying away from taking up O&M of minor airports in the State. The Government has had a bitter experience with Mysore and Belgaum airports. Though they are ready for operation, no private company is showing interest to take up O&M. For, private firms are not finding the operations viable. There are complaints from public that ticket prices are on a higher side to Bangalore-Hubli sector. The cost goes up if the load is less, officials pointed out. Officials sources said the Government is worried about the fate of airports projects already taken up. Work has commenced on five new airports in Shimoga, Gulbarga, Hassan, Bijapur and Bellary on public-private partnership basis. The existing Hubli (into an international airport), Belgaum and Karwar airports are to be expanded. Moreover, 13 airstrips for small towns, including Davangere, Raichur, Bagalkot, Chikmagalur, Gadag, Chitradurga and Kollegal have been lined up. Aimed at providing air connectivity at every 100 km distance across the State, the airports are expected to be completed in next two years. “But the big question now before the Government is: Will private firms find these projects financially viable to take up their O&M once they are completed? Minor airports were planned during 2006-07 when the country was witnessing aviation boom and private companies were eager to invest. Even private airlines had seen immense potential in tier- II cities. Now, it is feared that private firms may not show any interest,” officials explained. Nodal agencies The department appointed the Infrastructure Development Corporation (Karnataka) Limited (iDeCK) as the nodal agency to implement airstrip projects in Chitradurga, Karwar, Haveri, Kollegal, Yadgir and Koppal. The Karnataka Housing Board will be the nodal agency for implementing proposed airstrips in Raichur, Gadag, Chikmagalur, Bagalkot, Udupi and Davangere. The two nodal agencies have been entrusted with the responsibility of determining the type of airstrips required, identify and acquire the required land and getting the required clearance from Airport Authority of India, officials said. The department has planned to develop airstrips in three phases. In the first phase, it will take up about four important places. Each of the airstrip is estimated to cost Rs 40 crore.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Pay service tax at airport for tickets bought in June

If you have booked your air ticket in June then be prepared to shell out a service tax of Rs 103 on your domestic ticket and Rs 515 on your international ticket at the time of check in. The service tax on economy class travel came into effect from July 1. However, confusion prevailed among the airlines over its collection. But now, the government has asked the airlines to collect service tax on all the tickets sold in the month of June as well. Air India has issued a circular to all its travel agents to inform the passengers about the new service tax. While business and first class travel on international sectors was already under the ambit of service tax, Finance Minister Pranab Mukherjee in his budget announced a 10.3 per cent service tax on economy class as well. International tickets are charged a minimum of Rs 515. The tax is collected on each trip and a return journey attracts double the amount. An Air India official said that they were first informed that the tax had to be paid on all journeys on or after July 1, irrespective of when the ticket was bought. Later, the government issued a clarification stating that service tax should be levied only on tickets purchased on or after July 1. “Now we have received fresh instructions to collect service tax on bookings made from June 1. So now passengers can either pay the travel agent the tax amount in advance or pay it at the time of check in,’’ the AI official added. Despite repeated attempts, Jet Airways and Kingfisher Airlines did not respond to media query on the issue. Sources in Indigo Airlines said they had not received instructions to collect tax on the tickets sold in the month of June.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Code sharing pact between BA, Kingfisher gets government nod

The aviation ministry has approved a domestic code-share agreement between Kingfisher Airlines Ltd and British Airways Plc, making it easier for travelers to visit a dozen cities in the two countries. Code-sharing allows one airline to include destinations offered by another airline on its own ticket. It usually happens for international routes. In May, Indian and UK aviation authorities amended a bilateral pact to allow code-sharing for some local routes between their airlines in principle, though every agreement will still require clearance from the government. Indian carriers Air India and Jet Airways (India) Ltd have sought similar agreements with the British Midland Airways. Two ministry officials said that the government has okayed domestic code-sharing between Kingfisher and British Airways, and the airlines will soon be informed. Both spoke on condition of anonymity. “We look forward to being able to offer our mutual customers the benefits of an increased network,’’ said a British Airways spokeswoman. A Kingfisher official said the agreement will help the carrier become a part of the Oneworld airline alliance by 2011. Global airline alliances allow members, who mostly have code sharing agreements with each other, to cooperate substantially. Kingfisher plans to have code-sharing agreements with Japan Airlines Ltd and Hong Kong’s Cathay Pacific Airways, both of which are Oneworld members. “We do not intend to expand operations this year but focus on consolidation,” the airline official said, requesting anonymity. The debt-laden carrier reported a net loss of Rs1,647.22 crore for the year ended 31 March, and had a debt of Rs7,413 crore at end-December. With a fleet of 66 aircraft, Kingfisher flies to 61 Indian cities, and operates daily flights from Mumbai and New Delhi to London. The amended aviation agreement makes the UK only the sixth country with which India has such a pact, after the US, France, the Netherlands, China and Japan. It allows UK carriers to codeshare with Indian carriers for at least 10 Indian destinations— New Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, Ahmedabad, Kochi, Goa and Coimbatore. In lieu, the UK offers only five destinations—London, Manchester, Aberdeen, Edinburgh and Glasgow. “It sounds like a lopsided deal on paper,” said a London based analyst, who did not want to be named. Indians make up 1% of UK’s population of around 62 million and are the country’s largest minority group, according to the 2001 census of the UK’s Office for National Statistics. “The lack of Punjab (in the agreement) surprises me. Given the huge Punjabi population of Southall (a locality in west London), I expected Amritsar or Chandigarh,” the analyst said.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Airline stocks rally on talks of likely hike in FDI limit

Aviation stocks saw buying interest in early afternoon trade on Thursday, riding on news that the government may relax FDI norms anytime soon. Jet Airways, which open ed at Rs 542.35, remained in the black through the day, surging to an intraday high of Rs 571.90, or 6.52 per cent. According to analysts, the company is likely to raise funds for its future projects, which may also have been the reason. “There are rumors the government may relax FDI limit in the aviation sector. This influenced trading on the counter. On a stock-specific basis, Jet Airways, which gained most among the airlines stocks, is looking to raise funds for buying new planes and cut debt. We believe the 4 per cent jump was partly due to this,” said Ambareesh Baliga, vice president at Karvy Stock Broking. On Thursday, 3.96 lakh shares of Jet Airways changed hands on BSE, against a two-week average volume of 0.84 lakh shares. On NSE, 16 lakh shares of Jet Airways were traded against a two-week average volume of 2.87 lakh shares. Other counter such as Kingfisher Airlines and SpiceJet inched up 0.50 per cent and 0.27 per cent to close at Rs 50.25 and Rs 56.20, respectively. However, in early afternoon trade, the scrips had jumped 2.60 per cent and 2.23 per cent from their previous close. Baliga said, “Istithmar sold SpiceJet’s share on Wednesday. This may have had an impact.” “The news that government may lift FDI limits for various sectors lifted the market mood. If the norms are relaxed in aviation, domestic airlines will find it easy to raise funds,” said Sudip Bandyopadhyay, MD and CEO of Convexity Solutions.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).