Airbus and Boeing are working with their Indian airline customers to defer delivery of new planes they have ordered rather than having the airlines cancel the lucrative business. Boeing believes that the Indian aviation market with need 1,000 new aircraft over the next 20 years, and they're not changing that forecast despite the current downturn.
That downturn is rough: airlines are expected to lose about $2 billion this year, roughly double what they lost last year. In response, GoAir, Air India and others have cut capacity (Air India by 15% or so). This was a necessary response, considering there were 50 flights a day between Delhi and Mumbai - way too many for the market.
Last month we saw SpiceJet remove toffees from its flights. Now, JetLite will begin charging for water and snacks. Consumers may complain, but the alternative is that they'll complain much more when there are no more flights at all between the cities they want to fly.
Thursday, July 31, 2008
Tuesday, July 29, 2008
Fares to the Gulf Slashed by 15%
Good news for people traveling to the Gulf: Air India and Indian have both lowered fares by about 15% to the region from India. Delhi, Mumbai and Cochin are seeing the biggest discounts. According to Intelligent Traveller, air traffic to West Asia constitutes nearly 40 percent of the Indian aviation industry's total international operations.
Wednesday, July 23, 2008
Kingfisher to Launch London Flights in September
Kingfisher announced that it will launch flights to the UK beginning in September. The loss-making airline (1700 Crore over the last 2 years, not counting the nearly 650 Crore lost by sister-airline Deccan) will launch the service in the wake of a miserable cost structure for long-haul carriers. With other airlines closing long-haul routes around the world, this could be Mallya's biggest challenges yet.
Monday, July 21, 2008
Bagdogra's Airport Closed Down As Tea Is Mistaken for Bomb
Long story short: Bagdogra's airport was shut down over the weekend after authorities found a suspicious package in the terminal. Suspecting a bomb, police closed down the terminal. After some investigation it turns out the package was not a bomb: it was a package of tea.
Friday, July 18, 2008
British Airways Loses Amitabh Bachchan's Bags for the 18th Time
Bollywood legend Amitabh Bachchan has had a rough time with British Airways: The actor said that he and his family arrived in Toronto only to find that BA had lost his bags for the 18th time. BA has a notorious history of bag losses, but Bachchan has certainly seen more than his share. For its part, the airline apologized and said it has found the bags.
Wednesday, July 16, 2008
Oops...Kingfisher Won't Be Buying SpiceJet
SpiceJet, which can now best be described as flailing, has rejected Kingfisher's offer to purchase the carrier. Instead, asset management firm WL Ross & Co. will inject $80 million into the airline to keep it afloat. The firm says they believe oil prices will drop below $100 in the coming year, leaving SpiceJet will strong financial footing to compete.
Monday, July 14, 2008
What will you do with that Ticket if the Airline goes Bankrupt?
Twiddle your thumbs.. Seriously there is nothing you can do except for stand in line along with other creditors to get some sought of refund from the airline that goes under. Unlike the U.S or Europe where other airlines will transport you or some sort of insurance cover can refund your ticket amount, there is nothing that protects you and I from the Airline going Bankrupt. A scary thought, but it seems that the industry that was going gang busters a couple of quarters ago is seeing the prospects of airline closures :(
Thursday, July 10, 2008
Deccan Offers Helicopter Service from Bangalore Airport to City
Happy with Bangalore's new airport but unhappy with the miserable traffic to get to the city? You're in luck (assuming you're wealthy or traveling for business): Deccan Aviation is introducing helicopter service from the airport to three different destinations in Bangalore. Fares cost between Rs 4,800 and 5,800 each way.
Wednesday, July 9, 2008
GoAir to Cut Flights by 20%
To help minimize loss-making routes, GoAir plans to reduce its total flying by about 20% from 1,000 flights a month to about 800 for the low season. GoAir will face a struggle to compete with a combined Kingfisher/Deccan/SpiceJet given the current fuel environment, which now accounts for nearly half of the airline's costs.
Monday, July 7, 2008
Consolidation Continues: Kingfisher Likely to Purchase SpiceJet
India's airline consolidation continues as Kingfisher will likely purchase SpiceJet, creating an airlines that will control 40% of the domestic market. Under the combined group, Deccan will fly regional routes throughout the country while SpiceJet will fly to metros. The new carrier group will be a major force in Indian aviation, leaving a big question as to how IndiGo and GoAir will be able to survive in the current cost and competitive environment.
Thursday, July 3, 2008
Planes Hit Dogs and Birds at Ahmedabad Airport
2 nights ago heavy rains apparently drove all manner of bird and beast onto the runway at Ahmedabad's airport, causing delays after aircraft hit 12 birds and a dog. An Emirates flight on the way to Dubai hit a dog while taking off, though it continued its takeoff roll without further incident. However, the Qatar Airways plane that was to take off next was delayed for 30 minutes because the plane's pilot refused to take off with the carcass still on the runway. Since it was 5 o'clock in the morning, the dead dog patrol had not yet clocked in.
Several aircraft also hit birds on the same day, causing at least one flight to make an emergency landing.
Several aircraft also hit birds on the same day, causing at least one flight to make an emergency landing.
Wednesday, July 2, 2008
Higher Ticket Prices Taking its toll on Passenger Traffic from Smaller Towns
This was bound to happen, with higher fuel surcharges the average ticket prices have been steadily increasing. This has had an adverse impact on growth in passenger traffic from smaller towns, per the Airport Authority of India's latest figures. This is just the beginning, with fuel prices hitting $140 a barrel the ATF and with it ticket prices will only go up.
Tuesday, July 1, 2008
50 Pilots in India Found to Be Drunk in the Past Year
India's civil aviation authority announced yesterday that it found 50 pilots to be drunk during pre-flight medical checks last year. Indian pilots are prohibited from drinking alcohol within 12 hours of flying. Because airlines have grown so quickly, pilots are often needed on short notice - hence, they had been drinking without knowing they'd be flying that day. A flight from Delhi to Patna was canceled on Saturday after a routine pre-flight check found that the pilot had been drinking.
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