Wednesday, January 26, 2011

India okays airline expansion



India's airlines are optimistic they will be able to capture a larger share of international travel now the country's aviation ministry has granted fresh flight rights to a number of overseas destinations.

The biggest winner is tipped to be Jet Airways India, which has been okayed for new services to Europe, including flights to Rome and Amsterdam from Mumbai. Jet also has been given additional rights for flights Mumbai-Kuala Lumpur, Bangalore-Bangkok, Delhi-Bangkok, Mumbai-Abu Dhabi, Mumbai-Dubai, Mumbai-Male and Thiruvananthapuram-Sharjah.

Another carrier, SpiceJet, will now be able to fly to Colombo from Mumbai and add flights on the Chennai-Colombo route, while Kingfisher can fly to the Sri Lankan capital from Mumbai and Trichy.

And IndiGo has been okayed for daily services to Bangkok, Singapore and Dubai from New Delhi and Mumbai.



2. Air India reaches deal on fuel dues

Air India Ltd has agreed to partially pay off its dues to oil marketing companies and negotiated a daily payment system for the next 45 days, after which it hopes to repay in full.

The national flag carrier owed Rs. 2,300 crore to state-owned Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd in early December, when the oil firms discontinued credit to the airline on a directive from the oil ministry, as Mint reported on 10 December.

Air India has now agreed to pay a lump sum of Rs. 475 crore, or a little more than one-third of the Rs. 1,200 crore it received as equity infusion from the government this month.

The agreement was reached in a meeting of Air India chairman Arvind Jadhav, oil ministry’s additional secretary and financial adviser P.K. Sinha and officials from oil companies and the aviation ministry, said two officials present at the meeting, asking not to be named.

“They have got a relief,” one of these officials said. “They have also promised to pay some more money from receivables as and when they get it from other government departments.”

Air India also agreed to pay Rs. 13.5 crore daily for the next 45 days.

The oil companies sought a daily payment of Rs. 17.5 crore, but the airline refused. “It’s a national carrier and one of the oldest customers of the oil companies. They can’t just abandon the airline when it is going through a bad phase,” said the second official.

“The airline gets Rs. 22 crore a day from internal accruals, it can’t be asked to pay Rs. 17.5 crore straightaway.”

An Air India official said the payments will be made from the equity infusion.

“The equity is mainly to be used for repaying aircraft loans and interest, besides oil companies and aircraft vendors,” said the official, requesting anonymity.

The carrier hopes to make the rest of the payment to oil companies from the money it is due to receive from some government departments.

For example, it is yet to receive Rs. 335 crore for providing a dedicated fleet to fly the President, vice-president and Prime Minister over the past three years.

The fleet, led by Air India One, includes five jumbo jets parked in the capital for exclusive VVIP travel.

A proposal to raise the payment for this service to Rs. 800 crore a year is awaiting the finance ministry’s clearance.

The government has made a total equity infusion of Rs. 2,000 crore in the debt-laden carrier and promised another Rs. 2,000 crore for the next fiscal.

Like the national carrier, large private carriers such as Kingfisher Airlines Ltd and Jet Airways (India) Ltd have also defaulted on fuel payments in the last two calendar years, when the aviation industry was hit by the global economic slump and a steep hike in fuel prices.


 3. Aviation Newsletter - January 17 to January 21, 2011

The report stated that board has approved delivery financing of three B-777-300ER aircraft and one GE-90 spare engines with US Exim support worth US$475-million
Top Stories

IndiGo rises to joint No. 2 with Kingfisher
IndiGo Airline has become the India's No. 2 airline equaling Kingfisher Airlines in December, and Air India-domestic to take the No. 3 spot, according to a report. The report stated that Kingfisher and IndiGo had a market share of 18.6%, the Jet-JetLite combine was ahead with 25.4%. Indigo flew 9.71 lakh passengers in December 2010 compared with Kingfisher’s 9.72 lakh, adds report.

Air India mandates ICICI to refinance loans for buying A-320 aircraft: report
National Carrier Air India Board has given a mandate to ICICI Bank to refinance Rs55bn loans to purchase 21 A-320 aircraft, according to a report. The report stated that board has approved delivery financing of three B-777-300ER aircraft and one GE-90 spare engines with US Exim support worth US$475-million

The board also gave its nod to Air India to dispose off four A 310 passenger aircraft along with the simulator, adds report. There are reports that the most important decision of Pawan Arora as CEO of Air India Express in the company, did not come up for discussion.

In Focus Stories

Indian airlines break 5mn barrier in December
Indian airlines carried more than 50 lakh domestic passengers in December, setting a new landmark in the aviation industry, the latest data released by the Directorate General of Civil Aviation (DGCA) showed.Airlines carried 52.13 lakh passengers in December, up from 44.87 lakh passengers carried in the same period of the previous year, reporting a growth of almost 16%.

The total domestic passengers carried by the Scheduled Airlines of India in November were 48.75 lakhs as against 46.17 lakhs in October 2010. During January-December 2010, domestic airlines carried 520.21 lakh passengers compared to 438.40 lakhs in 2009.

The total domestic passengers carried by the Scheduled Airlines in the fourth quarter of 2010 (October to December) were 147.05 lakhs.The total domestic passengers carried by the Scheduled Airlines in the third quarter of 2010 (July to September) were 119.84 lakhs.

The total domestic passengers carried by the Scheduled Airlines in the second quarter of 2010 (April to June 2010) were 134.78 lakhs.The total domestic passengers carried by the Scheduled Airlines in the first quarter of 2010 (January to March 2010) were 118.54 lakhs.

Low-cost carrier IndiGo became the third largest domestic passenger airline in the country for the fourth quarter of 2010.IndiGo carried 25.89 lakh passengers, followed by Air India's domestic arm at 25.42 lakh passengers. They were followed by Spice Jet (20.01 lakh), Jet Lite (10.85 lakh) and Go Air (9.79 lakh).

Kingfisher Airlines carried 27.81 lakh passengers, closely followed by Jet Airways with 27.28 lakh passengers

Domestic News

Air India plans to lease 40 Airbus, Bombardier Planes: report
Air India Ltd has sought bids to lease as many as 40 Airbus SAS and Bombardier Inc. aircraft, according to a report. The report stated that the airline wants to lease 10 Airbus A320s, 10 A330s and as many as 20 CRJ-700 planes. Air India has a fleet of 135 planes and is expecting 30 more aircraft deliveries in the next few years, adds report.

Kingfisher flight makes emergency landing in Bangalore: report
Kingfisher Airlijnes flight IT 4817 from Bangalore to Hyderabad returned to Bangalore International Airport within ten minutes of take-off after the right engine of the aircraft caught fire, according to a report. Kingfisher spokesperson Prakash Mirpuri has reportedly said the aircraft was forced back to the airport after the flight commander received a warning alert.

IndiGo to operate international flights from August: report
IndiGo has reportedly said that it was granted permission by the aviation watchdog to operate international flights from August this year. The report stated that permission came after the LCC fulfilled all the regulatory requirements of completing five years of operations and possessing a minimum of 20 aircraft.

Jet Airways registers 8.5% growth in domestic operations in December 2010
Jet Airways has posted passenger load factors for December 2010. The airline has registered a buoyant 15.3% growth in international revenue passenger traffic carrying 4.23 lakh guests in December 2010 as compared to 3.67 lakh in the same period last year.

Security scare for Kingfisher Mumbai-Bhubaneshwar flight
Shortly after Kingfisher Airlines flight IT 3141 took off from Mumbai for Bhubaneshwar, the commander received a cautionary alert from one of the on-board systems. In keeping with Kingfisher Airlines’ policy of placing guest safety and comfort above everything else, the commander decided to return to Mumbai and get the alert investigated before proceeding to the destination.

Pratt & Whitney, Air India showcases cutting edge Eco Power Engine Wash Technology
Air India announced it has performed 124 Pratt & Whitney EcoPower engine washes to date, saving more than 540,000 gallons of fuel worth $1.9 million USD while reducing its carbon dioxide (CO2) emissions by approximately 5,300 metric tons. Pratt & Whitney is a United Technologies Corp. (NYSE:UTX) company.

British Airways lists Top Five Indian destinations for 2011
To help travellers plan their visit to India well, British Airways has released its list of five must-visit Indian destinations for 2011.

With the landmark cricketing event, World Cup 2011, being held in India, Bangladesh and Sri Lanka is expected to influence the travel calendar this year.

International News

Meggitt buys Danaher unit for US$685mn
Meggitt Plc has agreed to buy Pacific Scientific Aerospace from Danaher Corp. for US$685mn to expand its range of fire-fighting products. According to reports, the purchase of PSA, which also makes generators, electric motors and other safety gear for aircraft, will be funded by selling as many as 69.8 mn shares, equal to about 9.09% of the company, to new and current institutional investors.

Adding the Danaher unit will allow Meggitt to bundle together more products for aircraft including Boeing’s 787 Dreamliner and the Airbus A380 superjumbo as production accelerates. Meggitt paid 8.7 times earnings before interest, tax, depreciation and amortization and it estimated savings of about $5 million in 2011, rising to about $18 million by 2014, said a financial daily.

Boeing 787s resume test Flights for Certification: report
Boeing Co has reportedly said that its delayed 787 aircraft had resumed the test flights required by government regulators before it can make its first customer delivery. The report stated that Boeing restarted 787 test flights a month ago after finding a "fix" for the problem that led to an onboard fire during a flight on Nov. 9. Another two planes would restart certification flights in a week or so, adds report.

Air New Zealand plans to acquire up to 14.99% of Virgin Blue: report
Air New Zealand Ltd. has reportedly said that it has received approval from the Australian Foreign Investment Bureau to buy up to 14.99% of Virgin Blue Holdings Ltd. The report stated that the company is  planning to buy between 10% and 14.99% of Virgin Blue but has no intention of making a full takeover offer for the firm

Embraer closes out 2010 with 246 jets delivered
Embraer delivered 92 jets during the fourth quarter of 2010 (4Q10), 30 of which to the commercial aviation market, 61 to executive aviation, and one to the defense segment. Thus, the Company closed out 2010 with 246 jets delivered.

Fly thru with AirAsia
AirAsia’s guest on multiple-flight travel from India can do so without having to apply for a transit visa with Fly-Thru – A service that enables guests on multiple flight travel to perform a single check-in for their original and connecting flights right through to their final airport of destination.

Fly-Thru is available to guests travelling on selected AirAsia (short-haul) and all AirAsia X (long-haul) flights transiting through Kuala Lumpur whose original and forward flights have a connecting time of between 90 minutes and six hours.

Delta swings to fourth-quarter profit

EasyJet shares sink 10% on interim statement: report

Air New Zealand plans to acquire up to 14.99% of Virgin Blue .




 By

NEHA JAIN

www.aerosoft.in                                                                                                                








Thursday, January 20, 2011

United Wants Joint Venture With AirCanada




Speaking Wednesday at the Hudson Securities airline conference, United CEO Jeff Smisek said United is "looking at a trans-border joint venture" with Air Canada. Additionally, he said, "We're keenly interested ... to form a joint venture in Latin America as well; we will pursue that."


Smisek did not name any potential Latin partners, but the Brazilian carrier TAM is a member of the Star Alliance and last month, both Avianca-Taca, which combines Columbian and El Salvadoran airlines, and Copa, based in Panama, agreed to join Star.

"We think there's a tremendous opportunity for us in JVs," Smisek said. "We compete across the world with everybody, and JVs are a powerful competitive tool for us."

United has a transatlantic joint venture with anti-trust immunity with Air Canada, Continental and Lufthansa. This year, regulators approved its request for a transpacific joint venture with ANA.

By

Neha Jain
AVIATION SEO  R& D WORK
Aerosoft Corp







Ads by AeroSoft | Cyber Classifieds | Best Job
World Class Air Charter Services | Best Training | Best Job
World Class Travels Services | Best Tour Guide | 

Best Tours & Travels Services | Best Travels Guide | 

International Airlines Training Expo 2010

Aviation SEO Best in India & Finest in Asia

Jobs In Airlines | Airport Job | Aviation Industry Career

Best Pilot Training In Philippines BY Group of Indian Pilots

Your Gateway To Air Travel Industry | Best Training | Best Job

India's Best Asia's Finest Pilot Training Portal | Best Training | Best Job

Asia's Best Aviation B2B Market Place Of Pilot Training Academies In Asia

Find Best Aviation Training In Asia | Best Training | Best Job

To Start Your Career In Airlines | Best Training | Best Job

BE A PROFESSIONAL PILOT IN PHILIPPINES | Best Training | Best Job

Best Pilot Training Academy In Philippines

TMT Aviation School | Best Pilot Training school In Philippines

Aviation Acaemy Best In Gondia | Best Training | Best Job

Best Pilot Training | Best Training | Best Job

Careers In Airline Industry | Best Training | Best Job

Best Commercial Pilot Training In Philippines | Asia | Best Training | Best Job

Guidance For Pilot Training & Placement In India | Club For All Aviation Activities

World Class Pilot Career Placement In India | Best Training | Best Job

UK Link Exchange Link exchange World Class CPL PilotTraining in Asia | Best Training | Best Job

Airline fares taking off


The recession may be over for Canada's airline industry as ticket prices begin to take off at Canada's two major airlines.

Both WestJet and Air Canada are recording higher fares so far this year than levels seen in 2009 and 2010.

In 2010 Air Canada marked year-over-year highs for nine months, while WestJet did the same for six months.

Unlike other analysts who blame the increase in traffic and rising cost of fuel, the president of the Consumers' Association of Canada tells 660News there's no real reason why fares should be this high.

"I think (airlines) take advantage of anything they can get their hands on and this shouldn't be so," says Bruce Cran.

"I don't see any solution, and it's going to be an increasing problem," he says. "Bales of straw are being loaded on a camel's back and one day when the last one gets on, people will get extremely upset."

Cran is doubtful, but hopes Transport Canada will step in to get more reasonable rates for the Canadian consumer.

Starting Wednesday it will also cost a more to fly on Calgary-based WestJet.

The airline is charging passengers $20 for a second checked bag on all of their flights.


WestJet shares appear ready for takeoff



Air Canada has been a surprising star on the stock market over the past 21 months, but the momentum is starting to shift in WestJet Airlines Ltd. (WJA-T14.10-0.04-0.28%)’s favour.

WestJet shares climbed a mere 14 per cent last year while Air Canada (AC.A-T3.12-0.16-4.88%) stock soared 161 per cent. Now, several analysts are examining whether it’s time to switch investing strategies and back WestJet.

MORE RELATED TO THIS STORY
Air Canada downgraded as storm clouds loom
As oil nears $100 mark, threat to nascent recovery grows
Airlines flying higher as they regain pricing power
WestJet Airlines  (WJA-T)
14.10     -0.04   -0.28%
As of Jan 19, 2011 4:00
Range:1 Day 5 Day 1 Year View Larger Chart Add to Watchlist
Air Canada  (AC.A-T)
3.12     -0.16   -4.88%
As of Jan 19, 2011 3:59
Range:1 Day 5 Day 1 Year View Larger Chart Add to Watchlist
UBS Securities Canada Inc. analyst Tasneem Azim said the window of opportunity appears to be closing for huge investment gains on Air Canada, whose shares declined 13 cents to $3.13 on Wednesday.

Timing, of course, is everything when it comes to investing in airline shares. From its IPO price of $21 in late 2006, Air Canada got beaten down to a penny stock in the spring of 2009, when it traded as low as 73 cents. Air Canada shares finally staged a prolonged rally after management secured labour and pension deals with unions in the summer of 2009.

But the Canadian Auto Workers union, which represents airport customer service agents and call centre staff, has a collective agreement that will expire on Feb. 28. Four other Canadian union contracts will expire March 31.

“We believe labour contract negotiations could lead to a material increase in wage and pension expense over the next few years for Air Canada,” Ms. Azim said in a research note.

She raised her 52-week price target on WestJet to $18 from $17, while reducing her target for Air Canada to $4.50 from $5. Ms. Azim maintained “buy” ratings on both carriers, but believes that WestJet will be able to better withstand the sting of rising fuel expenses.

Ms. Azim said WestJet enjoys a 30-per-cent cost advantage over Air Canada, mostly as a result of the smaller carrier having lower expenses “due to a non-union work force and single-aircraft fleet,” which keeps maintenance bills for Boeing 737s under control.

Despite the cost advantage, Calgary-based WestJet has encountered its own turbulence over the years. Its initial public offering went out at a split-adjusted $2.96 a share in July, 1999. While the carrier’s stock climbed steadily for nearly five years, its price trajectory has been choppy since mid-2004.

“WestJet’s stock has been dead money” for several years, Raymond James Ltd. analyst Ben Cherniavsky said in a research note this week. The shares fell 4 cents to $14.10 on Wednesday, or roughly the same level they were at almost six years ago.

CIBC World Markets Inc. analyst Jacob Bout raised his price target on WestJet to $17 from $16, noting that the airline is “starting to reap early benefits from its new reservation system as it seeks partnership agreements” with foreign carriers. Mr. Bout maintained his $5.50 target for Air Canada, but cautioned that “any major labour disruption would derail Air Canada’s positive momentum, especially during the busy summer period.”

Mr. Cherniavsky raised his price target for WestJet to $16.50 from $13.75, while keeping his target for Air Canada at $6.50. Still, he said he continues to view Air Canada as “the preferred way to capitalize on the airline up-cycle in Canada.” He maintained an “outperform” recommendation for Air Canada, while upgrading WestJet to “outperform” from “market perform.”

Air Canada doesn’t pay any dividends, but WestJet will distribute its inaugural quarterly dividend of 5 cents a share

German Airline enters fray, stand against UAE



A dispute not unlike the one between Canada and the United Arab Emirates over additional landing rights is being played out now in Europe with Lufthansa wanting to keep a Persian Gulf airline in check.

This latest spat between the German airline and the Dubai-based Emirates has not gone unnoticed here in Canada, prompting a senior Air Canada official to note the Conservative government has some company.

MORE RELATED TO THIS STORY
Air Canada proposed Emirates deal in 2006: documents
Alberta to push trade talks with UAE
Air Canada as the enemy

Canada to leave Dubai base
Air Canada chief operating officer Duncan Dee the German airline’s bid serves “as further confirmation that Canada was not only correct in what it did but also that it is not alone in wanting to ensure fair access to air rights.”

According to multiple news reports Lufthansa has been successful in having Emirates denied landing positions at Berlin’s new airport, which is to open in June of next year. Lufthansa argues that the Dubai fleet’s access to German airports has led to “unequal” air traffic between Germany and the UAE. (Emirates flies to four airports in Germany compared to one destination in Dubai for Lufthansa.)

The imbroglio in Canada, meanwhile, just won’t go away. Last week, Liberal foreign affairs critic Bob Rae visited the UAE to meet with officials and take his own read of the dispute. He thinks a deal can be worked out, with any new landing slots be phased in over time.

His visit raised eyebrows in the Prime Minister’s Office, where Harper officials were worried that the opposition MP was involving himself – and not in a good way – in Canadian foreign policy.

The relationship between the Canadian and UAE governments is poor right now. In retaliation for refusing the landing rights, the Gulf state has banned the Canadian military from using Camp Mirage, a staging base for Afghanistan that will cost Ottawa about $300-million to relocate. In addition, the UAE has slapped expensive visas on Canadians visiting the country.

But the Harper government has said that “tens of thousands of jobs” of Canadian workers would be at stake if it allowed additional landing rights to Emirates and another UAE airline, Etihad Airways.

 “Canadian public policy on Air Canada and open skies needs to be clarified.”

 The Liberal MP should be “speaking up for the hundreds of thousands of Canadians whose livelihoods depend directly or indirectly on a strong and vibrant Air Canada and Canadian airline industry.”

Elsewhere, Emirates has been denied additional landing rights in Paris by the French government. And South Korea has also refused the airline new slots.

By

Neha Jain
AVIATION SEO  R& D WORK
Aerosoft Corp







Ads by AeroSoft | Cyber Classifieds | Best Job
World Class Air Charter Services | Best Training | Best Job
World Class Travels Services | Best Tour Guide | 

Best Tours & Travels Services | Best Travels Guide | 

International Airlines Training Expo 2010

Aviation SEO Best in India & Finest in Asia

Jobs In Airlines | Airport Job | Aviation Industry Career

Best Pilot Training In Philippines BY Group of Indian Pilots

Your Gateway To Air Travel Industry | Best Training | Best Job

India's Best Asia's Finest Pilot Training Portal | Best Training | Best Job

Asia's Best Aviation B2B Market Place Of Pilot Training Academies In Asia

Find Best Aviation Training In Asia | Best Training | Best Job

To Start Your Career In Airlines | Best Training | Best Job

BE A PROFESSIONAL PILOT IN PHILIPPINES | Best Training | Best Job

Best Pilot Training Academy In Philippines

TMT Aviation School | Best Pilot Training school In Philippines

Aviation Acaemy Best In Gondia | Best Training | Best Job

Best Pilot Training | Best Training | Best Job

Careers In Airline Industry | Best Training | Best Job

Best Commercial Pilot Training In Philippines | Asia | Best Training | Best Job

Guidance For Pilot Training & Placement In India | Club For All Aviation Activities

World Class Pilot Career Placement In India | Best Training | Best Job

UK Link Exchange Link exchange World Class CPL PilotTraining in Asia | Best Training | Best Job