Showing posts with label India. Show all posts
Showing posts with label India. Show all posts

Jet Airways and Garuda Indonesia sign code share agreement

Jet Airways and national flag carrier Garuda Indonesia have concluded a code share agreement for connectivity between India and Indonesia.

Under the arrangement, using Singapore as a hub, Jet Airways will place its marketing code on Garuda Indonesia’s flights between Singapore and Jakarta and Garuda will place its marketing code on Jet Airways’ flights between Singapore and Mumbai, Delhi and Chennai.

The two airlines have also signed a frequent flyer partnership, allowing members of each others loyalty programs to accrue and redeem mileage on the code-share flights, the entire domestic network of Garuda Indonesia, and on Jet Airways' complete network, domestic and international.
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Indian Air Force’s fourth Boeing C-17 Globemaster III delivered

By BA Staff

Boeing remains on track to deliver five C-17 Globemaster III airlifters committed to the Indian Air Force this year, as the fourth aircraft has departed the United States for India.

Boeing will deliver five more C-17s to India in 2014 to complete the ten aircraft contract.

Most recently, the IAF used its C-17s to support Cyclone Phailin relief efforts.

Boeing will complete production of the C-17 Globemaster III in the fourth quarter of 2015. In addition to the remaining C-17s for India, the company will build 15 more for other customers outside the United States. Boeing will continue after-delivery support of the worldwide C-17 fleet as part of the C-17 Globemaster III Integrated Sustainment Program Performance-Based Logistics agreement.

Boeing has delivered 258 C-17s, including 223 to the U.S. Air Force and a total of 35 to Australia, Canada, India, Qatar, the United Arab Emirates, the United Kingdom and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations.
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Qatar Airways to fly to Miami from June 2014

by Devesh Agarwal

Image courtesy Qatar Airways
Flag carrier, Qatar Airways, has announced Miami to be its sixth destination in the United States with flights beginning June 10, 2014.

The airline will offer four non-stop flights a week from Doha using a Boeing 777-200LR aircraft in a two class configuration with 42 lie-flat seats in business class, and 217 seats in economy.

The proposed schedule dove-tails well with flights to the Indian sub-continent, which arrive in to Doha early morning, and depart at night.

Tuesday, Thursday, Saturday and Sunday
QR777 departs Doha 08:40 (8:40am) arrives Miami MIA 17:20 (5:20pm). Travel time: 15h40m.
QR778 departs Miami 21:15 (9:15pm) arrives Doha 18:20 (6:20pm) the next day. Travel time: 14h20m.

As it prepares to enter the oneworld alliance, this is a good move by Qatar Airways as Miami is the gateway to Latin America for oneworld original member American Airlines. Qatar already operates to American's hub in Chicago, and to Houston, New York (JFK), and Washington D.C. (Dulles), and will add Philadelphia in April 2014.
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SpiceJet announces Madurai-Dubai service

By BA Staff

SpiceJet will begin a daily direct flight between Madurai and Dubai from November 22nd, 2013 utilising an all economy class 189 seat Boeing 737-800. Booking of tickets on this route is now open.

Flight SG023 will depart Madurai 23:35 and arrive Dubai 02:20 the next morning. The return flight SG024 will depart Dubai at 03:50 and arrive Madurai 09:45.


The airline is offering an introductory fare of  Rs 6999/- one way (inclusive of all taxes) and a return fare of 13999/- (inclusive of all taxes) on the route.

Madurai is fifth Indian destination to get connected with Dubai on SpiceJet network. The airline already operates daily direct services to Dubai from Delhi, Mumbai, Kochi and Ahmedabad.
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Bird Information Systems partners with FITS Air

By BA Staff

Bird Information Systems (BIS), a provider of automated aviation and travel related software solutions has entered into a partnership with Sri Lanka based FITS Air, for the use of its Airline Inventory and Reservations System (AIRS).

As per the partnership, Bird will provide FITS Air, the booking technology for the airline inventory hosting, reservation at all city and airport offices, call centers and internet booking engines

Commenting on the partnership, Ankur Bhatia, Executive Director, Bird Group said:
“We are very glad to come into strategic alliance with FITS Air as it will give us another opportunity to showcase our expertise in providing cutting-edge technology for the travel and aviation industry. This partnership will make online reservations more efficient and user friendly which will in turn help us strengthen our relationships in the entire SAARC region. We will ensure to provide FITS Air the latest technology to improve their operational efficiency further fortifying Bird Information Systems ‘s position as one of the most preferred technology provider in the travel industry.”
Mr. Omar Kayaam, Chief Executive officer of FITS Air said:
“We are extremely proud to partner with Bird Information Systems Private limited (BIS) as it will make our seat inventory available to an extensive network through its world class travel related software solutions. We consider this as a significant move in our future plans to place FITS Air in an advantageous position in today’s aviation industry. Through this partnership travelers and travel agents across will be able to make online reservations easily and conveniently which will help us to enhance our relations with them.”
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Emirates is now a partner with the Commonwealth Games

By BA Staff

Courtesy of Wikipedia
Emirates, the Official Airline Partner of the Glasgow 2014 Commonwealth Games Queen’s Baton Relay, has today started the first leg of the "Baton’s journey round the world", beginning its international journey in Glasgow.

The Queen’s Baton will be transported by Emirates, visiting a selection of the Commonwealth’s nations and territories ahead of the Glasgow 2014 Commonwealth Games, 23rd July to 3rd August.

Following its public launch at Buckingham Palace yesterday, the Baton has been successfully checked-in for its flight with Emirates and is on its first journey to Delhi, India.

Speaking of the Queen’s Baton Relay, Laurie Berryman, Vice President Emirates UK, commented:
“As a result of our official partnership with the Glasgow 2014 Commonwealth Games, Emirates is playing an integral role in uniting the Commonwealth countries, its two billion citizens and many cultures across the globe. Through our association with this landmark occasion, we hope to bring fans closer to the action and the sports that they love world-wide. Emirates became a partner of the Glasgow 2014Commonwealth Games underlining our continued commitment to Scotland, where over the past eight years, we have played a key role in supporting international connections from Glasgow International Airport, carrying over 1.7 million passengers and over 46 million kilos of cargo to and from the Middle East and beyond. We are delighted to have set this inaugural event off and look forward to taking the Baton on its journey across our extensive network, including 22 Commonwealth countries.”
The Queen’s Baton Relay is a unique tradition of the Games that famously unites the citizens of the Commonwealth in a celebration of sport, diversity and peace.

Flags from the 70 nations and territories of the Commonwealth were carried by children chosen by UNICEF UK, the world’s leading children’s organization and international charity partner of the Games at the event at Buckingham Palace yesterday.

The titanium, wood and granite Baton, specially-designed for Glasgow symbolizes
Scotland’s culture, history and innovation by combining leading-edge technology with traditional skills and craft. The Queen will place her message within it after which it become the Baton’s visual core, illuminated but unreadable until the Opening Ceremony.
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SilkAir joins Virgin Australia Velocity frequent flyer programme

By BA Staff

SilkAir (MI), the regional airline of Singapore Airlines, will become the latest airline partner to join Virgin Australia's Velocity frequent flyer program.

From October 10, 2013 onwards, Velocity members will be able to earn points and status credits or redeem their Points on the SilkAir network across South East Asia, India and China. This includes the ability to redeem points for reward seats or any seat up to 331 days in advance on any Virgin Australia marketed flights.

Velocity Frequent Flyer CEO Neil Thompson said:
“Today’s announcement builds on our existing offering with Singapore Airlines. Asia is a very important market for business and leisure travellers and we now offer the ability to earn Points and Status Credits to more destinations than ever before.”
Velocity’s Gold and Platinum members will also be able to use their Elite Benefits across the SilkAir network including priority check-in, priority boarding and complimentary lounge access for the member and a guest on day of travel.

SilkAir is Singapore Airline’s full service regional subsidiary flying to over 44 destinations across 12 countries. SilkAir flies from Darwin to Singapore, connecting the Northern Territory with Singapore Airlines’ global hub.
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Emirates to give away tickets to the 2013 Formula 1 Airtel Indian Grand Prix

By BA Staff

Emirates is offering 100 Emirates Skywards members the opportunity to win tickets to the 2013 edition of the Formula 1 Airtel Indian Grand Prix event on October 27 in Delhi. Emirates is a Global Partner of Formula 1.

From now until 16th October, Emirates will be giving away 100 tickets to the race. The competition is open to Emirates passengers who book and purchase their tickets on the Emirates India website for travel to one of Emirates’ 135 destinations before 30th November.

Non members will have to join the program to be eligible to enter the competition for their chance to win one of the tickets.

All passengers will be expected to register with a valid Emirates Skywards membership number, and answer a question on Formula 1® correctly.

Brian LaBelle, Senior VP Skywards said:
“Emirates offers 185 weekly flights from its 10 Indian gateways, giving passengers travelling from India an extensive selection of flight options. As of today there are already over 700,000 Emirates Skywards members in India who are already earning Miles on our flights. Miles can also be earned at a wide range of airline, hotel, car rental and financial partners, including India-based partners, such as Jet Airways, the Taj Group and The Standard Chartered Bank of India.”
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Jet Airways' JetPrivilege inks partnership with Color Plus

By BA Staff

Jet Airways' JetPrivilege frequent flyer program announced a partnership with ColorPlus, a clothing brand for men.


JetPrivilege members will get rewarded with 10 JPMiles for every Rs. 100 spent on purchases made at ColorPlus exclusive stores across India.

JetPrivilege members will now get to experience premium ‘Smart casuals’ and the many product enhancements, introduced by ColorPlus' innovations, including Wrinkle-Free Chinos, Golf Ball wash, Wrinkle-Free linen, Stain free shirt variants.

According to Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways:
 “JetPrivilege has always endeavoured to offer its members exceptional value and an enhanced lifestyle experience with programme partnerships across varied categories and segments. The introduction of this elite lifestyle brand to our JetPrivilege programme is yet another step in that direction, enabling our JetPrivilege members to enjoy exclusive offers in the retail space. We are delighted to bring yet another vibrant brand - ColorPlus to our esteemed JetPrivilege members, with benefits like a fine retail experience as also earn JPMiles. Above all, this makes for an unmatched shopping experience."
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Jet Airways guests can now book and pay for their JetEscapes hoildays on jetairways.com

By BA Staff

Jet Airways has introduced an option for guests to book and pay for their favourite JetEscapes Holidays, on the website www.jetairways.com.

Jet Airways has crafted theme based holidays for its guests. Guests can select their preferred holidays from an array of popular themes like beach, pilgrimage, historical, wildlife, family and corporate holidays. 

These holidays include return air travel on Jet Airways, airport transfers, hotel stay with breakfast in budget to luxury hotels, sightseeing, travel insurance, besides offering guests the opportunity to earn five JP Miles for every Rs.100 spent.

Mr. Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said
“Jet Airways' customer-centric approach, with a clear focus on providing enhanced travel experience, a high standard of service offering with consistent delivery, has enabled us to become the airline of choice. The introduction of our maiden JetEscapes Holidays direct to guests gives us the unique opportunity to offer our discerning guests a refreshing end-to-end travel experience. Through these attractive JetEscapes Holidays, we aim to make travel for our guests truly memorable, while providing multiple opportunities to explore destinations in India and abroad. At Jet Airways, we have constantly endeavoured to offer our guests exceptional value and an enhanced flying experience through innovative products and services. We are confident that our holidays to these destinations will prove to be extremely popular with travellers.”

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Celebrate Gandhi Jayanti with Air France - KLM

By BA Staff

To mark the birth anniversary for the father of India, Air France KLM, a member of the Sky Team alliance announced a special online contest for all their Air France and KLM follower base in India.

KLM India team will quiz their fans each day on location for two photographs of iconic Mahatma Gandhi statues around the world. The KLM India Twitter (www.twitter.com/KLMIndia) followers will need to identify both the photographs and tweet their answer with hashtag #Tribute2Gandhi.

While Air France India team will invite fans to share photos of Gandhiji’s memorabilia in their cities with interesting captions on Twitter (www.twitter.com/airfranceIN) channel with hashtag #GandhiInMyCity every day till the October 2, 2013.
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Emirates announces new service to Boston

by Vinay Bhaskara

Image Credit: Devesh Agarwal ~ Bangalore Aviation
Middle Eastern carrier Emirates has continued its rapid expansion into the North American market by announcing the commencement of daily nonstop services between its global hub at Dubai and Boston to commence from 10th March, 2014. The new flights will be served using Emirates' Boeing 777-200LR aircraft, seating 266 passengers in a three class configuration (8F / 42J / 216Y). Flight schedules for the new route are as follow:

RouteDepartArriveFrequency
DXB-BOS09451515Daily
BOS-DXB22551910Daily

Boston becomes Emirates' eighth US destination after New York JFK, Dallas-Fort Worth, Seattle-Tacoma, Washington Dulles, Houston, Los Angeles, and San Francisco. The airline has announced a plan to more than double the number of routes it serves in the United States over the next three to five years to 15 routes. In October, they will launch a third daily service to New York JFK via Milan's Malpensa International Airport.

As with many of Emirates' North American services, the new route will draw heavily on origin and destination traffic to and from the Indian subcontinent. Nearly 200 daily passengers traveled between Boston and India in each direction in 2011, much of it high-yielding business traffic in the information technology (IT) sector). And for Emirates, India represents nearly 12% of its network traffic.

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Tatas and Singapore Airlines to form new airline in India


by Devesh Agarwal

Taking advantage of India's recent liberalisation of the aviation sector, the country's most famous conglomerate, Tata Sons, and flag carrier Singapore Airlines (SIA) have signed a memorandum of understanding and applied for Foreign Investment Promotion Board (FIPB) approval to establish a new airline in India, thus adding a well financed full service carrier with strong customer service roots.

The airline will be based in New Delhi and will operate under the full-service model. Tata Sons will own 51 percent and Singapore Airlines will own 49 percent.

The announcement brings full circle, a partnership first commenced by the two companies back in 1995, when they jointly attempted to start an airline in India. In 2000, the two jointly bid for a stake in Air India. At the time the bids were thwarted by a sudden shift in policy, some say politically pushed through by a then fledgling Jet Airways, preventing investment in Indian carriers by a foreign airline.

The initial board will have three members, two nominated by Tata Sons and one nominated by Singapore Airlines. The chairman will be Prasad Menon, nominated by Tata Sons. Mukand Rajan, member of the group executive council of Tata Sons will be the ther director while Mak Swee Wah, executive vice-president (commercial) will represent Singapore Airlines.

Menon said
“It is Tata Sons’ evaluation that civil aviation in India offers sustainable growth potential. We now have the opportunity to launch a world-class, full-service airline in India. We are delighted that we are partnering in this endeavour with the world-renowned Singapore Airlines,”
Singapore Airlines CEO, Goh Choon Phong, added
“We have always been a strong believer in the growth potential of India’s aviation sector and are excited about the opportunity to partner Tata Sons in contributing to the future expansion of the market.” “Tata Sons is one of the most established and respected names in India. With the recent liberalisation, the time is right to jointly bring consumers a fresh new option for full-service air travel. We are confident the joint venture airline will help to stimulate market demand and provide economic benefits to India.”
Details of the airline’s branding, management team and products and services will be announced in due course.

The Tatas are also partnering with Tony Fernandes promoted Air Asia which is well under-way in establishing a new low cost carrier in India, AirAsia India.

Curiously, today's announcement comes just a day after the Delhi high court admitted a petition seeking quashing of the start clearances granted to AirAsia India. The petitioner, Subramanian Swamy, claims the recently liberalised FDI policy allowing investments by foreign airlines in Indian airlines, allows for investments in existing airlines and not fresh start-ups such as AirAsia India.
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Boeing Forecasts Growing Need for New Pilots in Asia Pacific Region

By BA Staff

Boeing projects that the Asia Pacific region will continue to lead the globe in demand for hundreds of thousands of new commercial airline pilots and maintenance technicians to support expanding demand for new airplane deliveries over the next two decades.

The 2013 Boeing Pilot and Technician Outlook calls for 192,300 new commercial airline pilots and 215,300 new technicians in the Asia Pacific region through 2032.

Bob Bellitto, the global sales director for Boeing Flight Services said
"There is a very real, urgent demand for competent aviation personnel globally, and the Asia Pacific region is particularly impacted. While Boeing is investing in cutting-edge technologies to attract and retain young people interested in careers in aviation, this is an industry-wide issue that can only be solved with industry-wide solutions. Aviation is a great field to be in. We have a responsibility to make sure it's a viable career option for the world's youth. Tomorrow's aviation workforce is going to be very different than their present-day peers. We need to focus on their expectations for learning, moving away from paper and chalkboard-based techniques to incorporate tablets, eBooks, gaming technology and three-dimensional models."
Leading the region in projected demand for new pilots and technicians:
  • China – 77,400 pilots and 93,900 technicians
  • Southeast Asia – 48,100 pilots and 50,300 technicians
Other parts of the region will also continue to see long-term demand in the tens of thousands of pilots and technicians:
  • Southwest Asia will need 30,900 pilots and 28,500 technicians
  • Northeast Asia will need 18,500 pilots and 25,500 technicians
  • The Oceania region will need 17,400 pilots and 17,100 technicians
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SriLankan Airlines cancels Kozhikode

by BA Staff

Oneworld member SriLankan Airlines has apparently cancelled its daily Airbus A320 service between Colombo and Kozhikode, Kerala from the end of August (26th August to be exact). The services were run with the schedules below:

UL169 ~ CMB-CCJ ~ D: 1130 A: 1520 ~ A320 ~ x3
UL169 ~ CMB-CCJ ~ D: 1350 A: 1510 ~ A320 ~ 3

UL170 ~ CCJ-CMB D: 1340 A: 1500 ~ A320 ~ x3
UL170 ~ CCJ-CMB D: 1600 A: 1720 ~ A320 ~ 3

The cancellation is interesting news because SriLankan had only recently announced plans to increase its Indian operations. 
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Malaysia Airlines posts operating profit in Q2 2013

by Vinay Bhaskara

Newly minted oneworld alliance member Malaysia Airlines saw progress in Q2 2013 in its corporate turnaround plan as the carrier swung to a RM (Malaysian Ringgit) 8 million (US $2.4 million) operating profit from an operating loss of RM 102 million (US $31.0 million) during the same period a year prior.

The performance was buoyed by 14% revenue growth on a 19% increase in capacity. Traffic grew 29% pushing seat load factors to a 10 year high of 80%. Q2 marked the fourth consecutive quarter of positive cash-flow from operations and Group cash balance improved to RM 5.4 billion (US $1.64 billion).

Net losses for Q2 were reduced 50% to RM 176 million ($53.5 million) as the carrier increased productivity and controlled costs; especially fuel expense, which fell 7.5% year-over-year. For the first half of 2013, operating loss was RM 157 million (US $47.7 million) and net loss was RM 455 million (US $138.3 million - down from RM 409 million [US $124.4 million] and RM 521 million [US $158.3 million] respectively).

Said Malaysia Airlines Group CEO Ahmad Jauhari Yahya:
With the encouraging performance at the revenue generation level, we can now focus on implementing more structural improvements, including enhancing our administration and support services. We will continue to improve operational effectiveness such as continued improvement in our On Time Performance, turn times on our aircraft, better engineering service turnaround, reducing service disruptions, precise material and inventory management, and much more which will further contribute to the bottom-line in the future.
Quarters three and four are traditionally the strongest for Malaysia Airlines, and the carrier has made its first Q2 operating profit in several years. The carrier still hopes to reach net profitability by the end of 2014 and claims that it is on track to meet that metric. Having taken delivery of 6 A380s, 7 A330s, and 8 Boeing 737-800s over the past 12 months, passengers carried grew to 4.2 million passengers.

Premium cabin demand received a boost on the introduction of the 494-seat Airbus A380, with premium cabin (First and Business) demand up 36% year-over-year on a 17% increase in capacity. The A380 has already been deployed to London, Paris, and Hong Kong from Malaysia Airlines' hub at Kuala Lampur.

Malaysia Airlines is one the largest overseas carriers in India, and is slated to launch services to Kochi in September
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IAF achieves landing of C-130J Hercules at world's highest airstrip Daulat Beg Oldie

by Devesh Agarwal

DBO near the top of the map. Image: Wikipedia
In a significant capability demonstration move by the Indian Air Force (IAF) achieved a world record when it landed a C-130J-30 Super Hercules aircraft landed at Daulat Beg Oldie (DBO) Advanced Landing Ground (ALG), the highest airstrip in the world at 06:54 hrs today.

The Commanding Officer Group Captain Tejbir Singh and the crew of the “Veiled Vipers” along with senior officer of Air Headquarters touched down on the DBO airstrip located at 16,614 feet (5,065 meters) in the Aksai Chin area after taking off from their home base at Hindon, near the capital New Delhi.

DBO is a very important and highly strategic post for India. DBO is located a stone's throw from the Karakoram Pass which links China with Pakistan.

The base was built during the Indo-China conflict in 1962. The IAF operated a Packet aircraft between 1962 and 1965. In recent years, China has become increasingly belligerent in the Aksai Chin area, with repeated violations of the border.  The IAF along with the Indian Army re-operationalised the DBO ALG and landed a twin engine AN 32 aircraft from Chandigarh in 2008 after a gap of 43 years.


However, the AN-32 has a limited payload at these extreme altitudes, and India does not have road connectivity in to this area. This limits the ability of the Indian armed forces to react to repeated Chinese provocations.

The IAF decided to land the C-130J-30 Super Hercules which is capable of lifting up to 20 tonnes of load, to improve supply lines. With this enhanced airlift capability the IAF will now be in a better position to meet the requirements of Indian land forces who are heavily dependent on the air bridge for sustenance in these higher and inhospitable areas.


The tactical airlift C-130J-30 Super Hercules of the special operations squadron the “Veiled Vipers” is capable of undertaking quick deployment of forces in all weather conditions, including air-drops and landings on unprepared or semi prepared surfaces created history today by landing at this altitude and hostile terrain conditions.

This achievement qualifies for the world record for the highest landing by an aircraft of this class. The Super Hercules was the same aircraft and crew that operated at Dharasu during “Op Rahat” for the Uttarakhand flood relief.


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IndiGo adds Ranchi as its 34th destination


Indian budget carrier IndiGo, has announced the introduction of new daily flights to Ranchi from Delhi and Patna. The airline will service the three cities in a circular routing i.e. Delhi-Patna-Ranchi-Delhi and reverse from today.

Flight No.

Origin

Destination

Departure

Arrival

Frequency

Via

Fare*

Effective

6E 493

Delhi

Ranchi

4:20 PM

6:10 PM

Daily


4011

18-Aug-13

6E 494

Delhi

Ranchi

6:50 AM

9:40 AM

Daily

Patna

4011

18-Aug-13

6E 494

Ranchi

Delhi

10:10 AM

11:55 AM

Daily


3848

18-Aug-13

6E 493

Ranchi

Delhi

6:40 PM

9:40 PM

Daily

Patna

3848

18-Aug-13

6E 493

Delhi

Patna

4:20 PM

7:30 PM

Daily

Ranchi

3066

18-Aug-13

6E 494

Patna

Delhi

8:55 AM

11:55 AM

Daily

Ranchi

2903

18-Aug-13

6E 493

Ranchi

Patna

6:40 PM

7:30 PM

Daily


1679

18-Aug-13

6E 494

Patna

Ranchi

8:55 AM

9:40 AM

Daily


1679

18-Aug-13
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Jet Airways Q1 FY2013~14 performance analysis - part 1 - Financials

by Vinay Bhaskara and Devesh Agarwal

Earlier this week, Mumbai based Jet Airways announced a net post-tax loss of Rs. 355.4 Crore (US $ 59.8 million) for the first quarter of Fiscal Year 2014, reversing from a Rs. 24.7 Crore net profit during the same period a year prior.

Total revenues declined a whopping 12.3% to Rs. 4, 064.4 Crore on a 15.0% decline in revenue passengers to 4.13 million, and an 11.3% capacity decline measured by available seat kilometres (ASKs) to 9.13 million ASKs. Seat factors cratered to 78.4% from 82.7% year-over-year (YOY).

Jet Airways recorded a large operating loss of Rs. 111.2 Crore in Q1 versus an operating profit of Rs. 223.5 Crore the year, translating to an operating margin of -2.8% versus +4.9% in Q1 of Fiscal Year 2013.

The nominal average fare paid by Jet Airways customers rose 2.3% to Rs. 8,278, but fell 4.2% on an inflation adjusted basis. Revenue per available seat kilometer (RASK) fell 0.8% year over year to 3.60 Rupees from 3.63 Rupees a year prior while cost per available seat kilometer (CASK) increased 8.7% to 3.92 Rupees. CASK and RASK are used to adjust revenue and cost figures for segment length.

Looking segment by segment, Jet Airways’ full service domestic operations once again performed abysmally, with a net pre-tax loss of Rs. 263.0 Crore versus a profit of Rs. 16.8 Crore the year prior. Operating margin domestically was an astoundingly poor -7.9% versus +6.8% a year prior – a swing of 14.7 percentage points! Domestic revenues fell 13.1% year over year to Rs. 1763.5 Crore, and while domestic RASK actually increased by 0.9% (down 3.3% on an inflation-adjusted basis), it was more than offset by a 17.6% increase in CASK.

Domestic operations continued to suffer from the poor Indian macroeconomic environment, as growth for Fiscal Year 2014 is projected to fall to 5.5% by the Reserve Bank of India. India’s growth prospects seem doveish for the next few years and airline will see growth plateauing over the next few months.

Importantly, fuel is not a major contributor to Jet Airways’ woes, as moderating fuel prices around the globe in Q1 meant that fuel cost per ASK fell 7.5% year over year. Despite the slowing economy, domestic capacity amongst Indian carriers was up 0.1% in Q1 and passenger demand rose 1%.

Low Cost Carriers (LCCs) SpiceJet, GoAir, and IndiGo have continued their rapid expansion despite slowing Indian growth, which has put increased fare pressure on Jet Airways at the lower end. At the same time, the expected fare bump amongst high yield business travellers and first class passengers after the demise of full service rival Kingfisher Airlines largely has not materialized thanks to aggressive pricing on the part of beleaguered national carrier Air India. Despite spotty operational reliability, LCC SpiceJet has continued to profit (Rs. 55 Crore in Q1 of FY14) and its maturing Q400 operation is taking away business from Jet Airways’ regional ATR operations, especially in the South.

International financial performance also weakened year over year, falling to a Rs. 92.4 Crore pre-tax loss from a Rs. 16.5 Crore pre-tax profit the year prior. Revenues fell 11.7% to Rs. 2300.9 Crore as Jet Airways continues to restructure its international operations in advance of the implementation of the newly designed Jetihad partnership with Etihad Airways. Revenue per available seat mile fell 2.1% (7.8% on an inflation adjusted basis), while cost per available seat kilometer grew 2.3%. The operating margin on international operations fell to 0.8%, from 5.6% in Q1 of Fiscal Year 2013.

Despite all the hubbub and media drama surrounding Jet Airways’ international operations, they are actually the better performer within the company on an operating and net basis. International operations came under some pressure thanks to the continued de-valuation of the Indian Rupee since many costs on international operations are accrued in US dollars. That pressure, which contributed nearly a third of Jet Airways’ losses in Q1 at Rs. 134.3 Crores, looks like it should subside to some degree as the Indian government is taking steps to increase in-flow of US dollars.

Bulk of Jet Airways' A330-200 fleet idle at New Delhi
The airline withdrew from many international routes like Mumbai Johannesburg, Chennai Brussels, Brussels New York JFK, and New Delhi Milan. The contraction in operations led to a severe under-utilisation of Jet Airways’ wide body fleet, especially the Airbus A330-200s, (as captured by Devesh Agarwal at New Delhi IGI airport), which led to a Rs. 128.2 Crore adverse impact on finances.

During the analysts earnings call, Jet Airways management indicated that the airline had already leased two A330s to investor Etihad Airways PJSC of Abu Dhabi, and is "close to signing" a deal with another west Asian carrier for five A330s. So the cost impact will reduce in the quarters moving forward.
 
During the call, the airline announced “load factors for the North American routes were at 79.1%, the UK routes were at 84.1%, Asian routes were at 82.1%, Gulf routes were at 83.4%, SAARC routes were at 75.1%.” However, thanks to its contraction on long haul routes, Jet has been unable to capitalize on recovering Western economies in the United States and in the European Union. Still, the outlook moving forward for the international operations. from a purely financial perspective (ignoring strategic considerations), the feeder operation with Eithad, which appears likely to be Jet Airways’ plan as the carrier undertakes a 10 year network planning study, is likely to return Jet to profitability on its international operations at least.
But the domestic operations remain challenging. In our opinion, from a financial perspective, Jet must solve its lagging domestic revenue and market share before the company as a whole can return to profitability. Structurally, the debt load facing Jet Airways, including US $300-400 million in high-cost shorter term debt, is the major challenge. Finance charges stood at Rs. 234.1 Crore in Q1, and with Jet Airways recently committing to order 50 737 MAX, as per a report in the Live Mint, the capital expenditures plan over the next 10 years only looks set to exacerbate that.

Stay tuned for Parts 2 and 3 of our analysis coming later this week, covering JetLite results, analysis of fleet and network plans, and a plan to tackle the debt load.

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Travelling with new lower check-in and carry-on hand baggage allowances

by Devesh Agarwal

Last month, I flew more than 50,000 miles across many nations, and airlines, and in the process experienced the carry on hand baggage and check-in baggage rules of different airlines, countries, and airports and to a chance try out new lightweight luggage. [Disclaimer: I have not received any benefit, in any form, from any of the airlines or luggage companies I have referred to in this article.]

Hopefully the tips below will help dealing with the reduction of checked-in baggage allowances in India to 15 kgs and the hand carry on baggage limits of Europe and Asia of 22"size and 7 kgs weight.

1. Check with your airline

Checked baggage weight allowances vary from country to country and airline to airline. In India, some airlines like Jet and Air India have reduced it to 15 kgs, while SpiceJet and GoAir still offer the traditional 20 kgs. Across the world, legacy carriers still offer the standard 20 kgs. To, from and within the US, the piece concept applies and the weight limit is 50 lbs or 23 kgs per bag.

However. you may have a domestic connecting leg on a local carrier in Europe or the US which may have lower baggage allowances than your international carrier. So you can carry one or two pieces free of charge to the US, just to have American, Delta, or United charge you checked bag fees for that leg from New York to Boston. Check with your airline or travel agent about the baggage allowances right till the very end of your trip. Try to get the information in writing. 

2. Carry less

We Indians love to carry stuff. Do you really need to carry so many things? One pair of pants and may be a pair of jeans will last for a whole week. Most hotels in the US and Europe have washing machines, and irons and ironing boards. Carry fewer clothes and use the facilities. Innocuous items like books, paper, food are actually quite heavy. Do you really need to carry the whole business file of the customer?

The airlines have reduced allowance by 25% (from 20kg to 15kg). Reduce what you are packing by the same 25%. Use intelligent packing solutions like Pack-It™ folders which compact your clothes and keep them crease-free.

3. Lightweight luggage

Time to trade in the old war horse but heavy suitcase for the new crop of lightweight bags. Till last month I was using my long trusted TravelPro Platinum series bags which have lasted me at least 500,000 miles. But each bag weighed about 9 kgs when empty. The new lightweight bags weigh as little at 4kgs for a 29 inch four wheel spinner. In India I recommend Samsonite which offers light series like BLight, Lift, and Optimum. American Tourister does not have light enough luggage.

In the US, after trying many a bag, I opted for the TravelPro MaxLite 2 29" spinners. Ultra-light. Strong. Competitively priced. I bought mine from eBags and WayFair. Unfortunately TravelPro is not sold in India.

In the UK, and soon to be launched in India, there is a brand called IT Luggage which deserves a look. The company offers a series of luggage called "world's lightest". I bought a 22" upright which weighs a lean 3.5 lbs (1.58 kgs). Even full, the bag still passed the 7kg test.

And if you are buying a new bag, get away from the traditional black and red. Try getting, blue or charcoal or some other colour that will differentiate your bag.

4. Smaller carry on hand baggage

While some US airlines permit 24" (60 cm) bags, the global standard is now 22" (55 cm) and in the case of no-frill carriers like RyanAir and EasyJet the size is being pushed down to 20" (50 cm).

In India many airlines are opting for small turbo-props like the Q400 or the ATR72, while in Europe and the US, may routes are on RJs (Regional Jets). These aircraft have very small overhead bins and the carry-on bag which fits in an A320 or 737 jet, has no chance in these smaller aircraft.

On long distance flights, carry-on luggage space is getting used for other frills. Like your in-seat video and fancy on-demand in-flight entertainment system? The control box now sits underneath your seat, where your bag used to go.

My camera bag with its big telephoto lenses frequently weighs more than the 7kg limit. I normally do not face a problem as most airlines recognise the fragile nature of the equipment, with the exception of London Heathrow airport.

From extensive personal experience, I advise travellers to avoid London Heathrow airport, which forces all airlines to stringently implement the 7kg hand baggage weight limit, even in business class. I have not experienced any other airport in Europe or North America imposing this.

Based on reports from family members, friends, and personal observation, Emirates airline actively enforces the 7kg hand baggage weight limit on economy class, by weighing hand bags at almost all stations. The airline is especially vigilant on flights to and from the Indian sub-continent. If you are a premium passenger, don't worry, you are forgiven all sins.

5. Expandable carry on hand bags

Fast becoming a no-no. Expansion sections require additional zips and material, and that adds weight. Also, when we expand the bag, it becomes bigger and can no longer be carried on board. You will need to check it in, and wait for it after landing losing the advantage of carry-on "get-up and go" speed.

6. Use the overhead bins properly

One of the things that makes my blood boil is the casual manner in which most Indians, just toss their bag in to the overhead compartment. All to often we find an oversize bag or a small valise in the bin put sideways, eating up the space for two bags. I also loathe those bin hoarders who will put their bag in the overhead bin above your seat and then go and sit few rows back.

Its time to give such inconsiderate cabin mates dirty looks, if needed a talking to, and for you to stand-up for your rights. But then, we must practice what we preach.

7. Get Status

Become an elite customer of the airline. Either by flying with them, or getting a co-branded airline platinum credit card. Elite customers are given additional baggage allowances and priority boarding which allows you to get to that precious overhead bin space ahead of the others.

Photo courtesy of Jaktogo
8. Wear your luggage

If you are flying the ultra-cheapo RyanAir or Spirit Air who charge for carry on baggage, consider the new fad of ‘wearable luggage’ or ‘luggage jackets’. These allow you to pack almost the equivalent of a carry on bag worth of stuff. In fact in some cases, the jacket turns in to a bag and vice-versa. Check in wearing the jacket, board and convert it to a bag and put it in the overhead bin.

Yes who may look odd wearing this huge jacket, but who cares. With the money you save on baggage fees, go have a party, or buy a new outfit. Relish the fact that you, the customer, had the last laugh, not the airline.

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