GoAir joins price war with Rs.999 offer

THE HINDU,21MAR2015

Budget passenger carrier GoAir on Saturday launched its special mid-year offer with one-way fares starting from Rs.999 across the airline’s network of 22 cities.

According to the airline, the tickets under the offer can be booked from March 21 to 23 for the travel period between June 23 to October 31 2015.

“It is our continuous endeavour to bring the best offers and services to our customers. We’re delighted to announce our special affordable fares, so that people can enjoy the benefits of air travel and holidays at immense value across our network,” said Manoj Dharmani, vice-president, sales and marketing, GoAir.

“With long weekends coming up and holidays getting much cheaper as compared to the summer vacation peak period, the opportunity to take advantage of value holidays is immense,” Mr. Dharmani added.

‘Aviation rule defies logic

THE HINDU,21MAR2015

AirAsia unveils its fourth aircraft with a livery dedicated to JRD Tata

The new aviation rules will hamper the economic activity in the country and lead to lesser jobs, AirAsia Group CEO Tony Fernandes said here on Saturday.

He observed that the country’s skies should be opened up without any restrictive policies so as to tap the immense potential of domestic and international aviation markets. Mr. Tony expressed his disappointment over the existing 5/20 rule. According to the rule, domestic operators can only fly international if they have five flying years and a fleet of 20 aircraft, and also its proposed replacement which requires accumulating credits based on their local flying hours and destination.

“We do not see any logic behind these rules. Much more investment is needed in India as the number of international flights is very less. India needs more connectivity too. Nowhere in the world have we seen such a rule. It is either a safe airline or not a safe airline, and there is no difference between flying domestic and international,” he said,

Mr. Tony was here for the unveiling of AirAsia’s fourth aircraft, with a livery dedicated to JRD Tata, and christened as ‘The Pioneer’, as a mark of respect to the founder of the erstwhile Tata Airlines.

The livery of the aircraft dons an image of JRD Tata with a Puss Moth, the aircraft he flew on October 15, 1932. He informed that the team of AirAsia India would wait for clarity on regulations and decide on major expansion plans. The top management said that they would add two more aircraft by April and their focus would continue to be new and underserved cities.

“We have not given up and want to persuade the powers-to-be to take a favourable decision. The government should help entrepreneurs, and I do not believe this rule makes it easier. The incumbent airline operators seem to have a bigger voice than us since they are influencing the rules,” he said.

AirAsia India non-Executive Chairman S. Ramadorai said the government should encourage tourism by initiating steps for improved connectivity since it could do wonders for local employment. Drawing a parallel with the IT industry, he said the aviation sector would flourish only when equal opportunity was provided for all the stakeholders and there was a competitive spirit.

Etihad to have 3rd flight from Delhi from May; plans more ops

THE HINDU,25FEV2015

UAE’s flag carrier Etihad Airways, which owns 24 per cent in Jet Airways, on Wednesday sounded bullish on India, saying over the next year it will add more flights, beginning with a third daily service from New Delhi to Abu Dhabi from May 1.

This additional flight from the national capital will take its weekly services to 140, making it the largest Gulf carrier in the country connecting 11 cities with Kolkata being the latest destination from early this month.

These increases mean from May, Etihad and Jet will together offer 224 weekly return flights connecting 15 Indian cities, making it the largest Gulf carrier, Etihad said in a statement quoting its President & Chief Executive James Hogan.

Etihad and Jet jointly operate 5 daily flights from Mumbai, 3 from New Delhi (beginning May), three from Chennai, Bengaluru, Hyderabad and Kochi; two from Ahmedabad and Kozhikode and one from Jaipur, Kolkata and Thiruvananthapuram.

On expansion, Mr. Hogan said, “over the next 12 months, we will add more frequencies to our India network and deploy new wide-body planes, including Boeing 787s.”

From February 15, the airline added a new daily service on the Mumbai-Abu Dhabi and Kolkata-Abu Dhabi routes.

In 2014, Etihad carried almost 7 lakh people to the country on its network, it said, adding it ferried 14.8 million passengers in the year from 111 global destinations.

These expansions are complemented by the recently launched Jet daily services from Goa and Lucknow to Abu Dhabi.

From March 29, Jet will connect Ahmedabad, Pune and Mangalore with Abu Dhabi, Etihad said.

Hogan described the investment in Jet as productive since the Naresh Goyal-run airline is now on “a firm path to recovery showing strong operational and financial performance having reported first net profit after seven successive quarters of losses.”

He hoped Jet will break-even within the next three years on the back of a slew of measures.

Promising to continue to invest in the domestic aviation sector, Mr. Hogan said, “We made a pledge to support growth of Indian tourism, aviation, and commerce by working alongside Jet to bring business and leisure travellers.

“Etihad continues to open up access to primary and regional airports and create employment opportunities through these operations. With Jet, we’re constantly exploring new opportunities with local tourism bodies and organisations.”

Etihad entered India in 2004 from Mumbai, just a year after its launch. It is a major recruiter of Indians, with its Abu Dhabi base alone employing around 1,700 of them. At present 2,860 Indians are working with Etihad, representing 16 per cent of its total workforce.

Keywords: Etihad Airways, Jet Airways, New Delhi to Abu Dhabi

Court orders six SpiceJet aircraft grounded, airline to appeal

THE HINDU,19MAR2015

The Delhi High Court on Thursday ordered the civil aviation regulator to de-register six aircraft of SpiceJet for non-payment of dues to some of its lessors — an issue which the budget carrier said is being resolved.

Justice Rajiv Shakdher also asked the Directorate General for Civil Aviation to decide in two weeks’ time a plea by two Irish firms to export the planes.

The court’s directives came on the pleas of leading global aircraft lessors AWAS Ireland and Wilmington Trust SP Services (Dublin). The firms sought directions to de-register the aircraft leased by them to SpiceJet, on grounds of alleged non-payment of dues.

“We are studying the order and if so advised, we will take the matter to higher judicial forum. Dialogues are on with the lessors and expecting to resolve the issue very soon,” a spokesperson for SpiceJet toldIANS.

The move comes even as co-founder Ajay Singh, now back at the airline’s helm, intervened and paid $10 million of the dues. The airline said the remaining amount was expected to be settled soon with the lessors of the Boeing B737 planes.

The order to de-register the six planes comes at a time when the airline is trying to overcome its turbulent times since last year.

In Singh’s second innings with the airline, he and his associates bought back the 53.5-per cent stake in the airline that was sold to the Marans of Chennai, who own the Sun Group.

SpiceJet stock closed on Thursday at Rs.21.75 — down 4.40 per cent from the previous day’s closing in the Bombay Stock Exchange.

Airlines join fare war

THE HINDU,05FEB2015

IndiGo, Go Air and Jet Airways have joined the airfare war started by SpiceJet by offering low fares in some of their routes. While IndiGo is offering all inclusive low fares starting Rs.1,799 in 90 days advance purchase scheme, Go Air has come out with a Valentine’s Day offer starting one way fare of Rs.1,499 for travel till April 15.

Full service airline Jet Airways is competing with low cost airlines by offering low fares starting Rs.1,599 in domestic routes. Tickets under this scheme need to be booked on or before February 6, for travel valid between February 14 and April 15. The sharp 33 per cent reduction in aviation turbine fuel (ATF) in the past few months has helped airlines to control their losses and come out with promotional offers to lure passengers.

SpiceJet, Jet Airways jump on aviation fuel price cut

THE HINDU,02FEB2015

Shares of Spicejet and Jet Airways rose by up to 7 per cent on Monday after jet fuel (ATF) price was cut by a steep 11.3 per cent.

SpiceJet’s scrip gained 6.75 per cent to Rs. 23.70 at the BSE. Similarly, Jet Airways surged 5.58 per cent to Rs. 543.50 — its 52-week high.

ATF price was on Sunday cut by a steep 11.3 per cent and now costs less than diesel.

A price cut in aviation turbine fuel (ATF), or jet fuel, by 11.27 per cent or Rs. 5,909.9 per kilolitre to Rs. 46,513.02 per kl in Delhi was announced by oil companies on Sunday.

The reduction, which followed possibly the steepest ever cut of Rs. 7,520.52 per kl or 12.5 per cent effected from January 1, has led to ATF becoming cheaper than even diesel.

Jet fuel constitutes over 40 per cent of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers.

Airfares may be slashed

THE HINDU,02FEB2015

Domestic airfares are likely to reduce by 5 to 10 per cent in the 30 days advance purchase segment as oil companies on Sunday cut Aviation Turbine Fuel (ATF) price by 11.3 per cent in line with the fall in international crude oil prices.

With this cut, the ATF price has been reduced to Rs. 46 a litre, making it even cheaper than diesel which costs between Rs. 51 and 56 per litre.

Airlines declined to commit themselves stating that airfares in India are not cost-related and the possible downward revision cannot be of the same proportion as the cut in ATF price.

There has been a cumulative 33 per cent reduction in ATF price since October and airlines are taking this opportunity to reduce their losses rather than passing on all the benefits to passengers.

However, those booking early can benefit by up to 10 per cent while those booking at the last moment will pay the market price depending upon the demand supply situation in that particular sector.

Airlines follow dynamic pricing in fares and charge through a non-transparent slabs system, so it is difficult to quantify the quantum of reduction for all segments of passengers.

“Fares are now 20 to 30 per cent cheaper as compared to November and December fares. This is lean season and in a competitive market, prices should come down. But don’t expect drastic reduction as airfares are not on cost-plus basis in India. This is an opportunity to recoup losses,” said a senior airline official.

However, travel industry experts said that the lower ATF price regime will prompt airlines to come out with aggressive promotional offers to lure passengers, like the 5 lakh seat flash sale by SpiceJet.

Analysts said now the floor is set for a price war among airlines through they would be careful to make some money in this quarter as such opportunity rarely comes.