HURRAY !!....Air India

Chocks -on - Nugget    27  AUG,  2013

 

Flying phoenix :  Hurray - Air India

 

This is one news which is Music to all Air Indians....& off course a must Read ! Enjoy !! Air Can Do It !! Some Self Appointed Messiahs of ex Air Indians, are busy raising a clarion call for a campaign to...' Save Air India ". Bizarre.  

 

 

 

At Indian Airlines House, the headquarters of the national carrier Air India in Delhi, the mood is upbeat owing to the busy overseas travel season. From the operations offices in the lower floors to the marketing divisions on top, the building is bustling with activities.

This is in sharp contrast to the situation a year ago, when most of the staff in the building were on strike. The new-found diligence among them is reflecting on the airline's on-time performance, occupancy and revenues. This year, the expected revenue is pegged at Rs.19,139 crore, 24 per cent higher than last year.

“I have reviewed operations of Air India and found it at par with many global airlines. In this fiscal, cash surplus from operations is about Rs.1,000 crore. Also, this is the first time when the airline would be experiencing benefits of a turnaround plan initiated by banks and lenders,” said Civil Aviation Minister Ajit Singh. “The future of Air India will only become brighter as 14 new Dreamliner aircraft are inducted and new destinations opened up.”

The debt-laden airline is on a government-sponsored lifeline, which has infused equity of Rs.5,000 crore into it. Another Rs.3,574 crore is expected next year. In addition, the government has agreed to guarantee Rs.12,000 crore of non-convertible debentures to be issued to its lenders. “We had accumulated loans of Rs.22,000 crore for continuing operations. Of this, Rs.7,400 crore has been repaid through issues of debentures, which will mature in 19 years,” said an Air India official.

With some of the dead weight on account of working capital loans removed, Air India will make considerable savings on interest payment. Since the financial restructuring plan was implemented, the airline's interest bill has fallen from Rs.380 crore a month to about Rs.150 crore a month. With the turnaround plan in place, it had been gradually reducing its running cash loss, which was Rs.512 crore in October-December 2011. In the 2013 April-June quarter, it had a cash surplus of Rs.460 crore from operations.

“The first priority for us was to ensure that the airline does not go into a borrowing spree and to bring it out of the debt trap it was in,” said a member of a panel that advises the government on restructuring the airline. The panel is led by IIM professor Ravindra Dholakia. Air India plans to implement all the recommendations of the panel in the next six months.

“We have formed a cost-cutting committee,” said Ajit Singh. “On implementation of cost-saving recommendations, the airline management expects to save another Rs.500 crore. On-time performance has gone up. I have reviewed international operations. All the flights which were losing money are now generating profit.” The turnaround plan recommends restructuring or withdrawing services where the airline is not able to cover its operating cost.

Another major plan is to hive off the airline's engineering and maintenance operations as separate entities. Though the employee unions are against the idea, the Supreme Court recently allowed the management to go ahead with it. Air India will invest Rs.150 crore in the new companies. “This will be used to upgrade facilities and purchase new ground handling equipment. Also, a new marketing arm for the engineering and MRO [maintenance, repair and overhaul] services will be created from this investment,” said an Air India board member. Air India expects these independent arms to have 50 per cent of their turnover from third-party business in five years.

To prune its fleet, Air India has practically withdrawn its Boeing 747 Jumbos and is in the process of replacing its Boeing B-777 long-range aircraft with Boeing B-787 Dreamliners. Fourteen narrow-bodied Airbus A-320s have been reconfigured into all-economy class with 168 seats—a move to compete with the no-frill carriers. “The idea is to evolve a model based on an ideal mix of low-cost carrier model while retaining the core features of a full service carrier,” said an aviation ministry official, who is a member of the Air India management. As a result, occupancy rates have increased in both economy and business classes. The airline is also planning to lease out or sell 19 aircraft that are more than 20 years old.

“Operationally, the airline has improved quite a few things. Its fuel efficiency has also improved partly because of adoption of better aircraft and partly because of better maintenance. This was the competitive edge that Air India was missing so far,” said Kapil Kaul, CEO of CAPA, an aviation industry monitoring firm.

Air India's domestic occupancy has also been on the upswing since September-October in 2012. “Air India Express has been clocking seat occupancy rate above 80 per cent for last four months,” said a civil aviation ministry official.

There are plans to unlock the potential of the airline's underutilised assets. While regularisation of the property titles it holds in Delhi and Mumbai is under way, more tenants are expected to move into the iconic Air India House at Nariman Point in Mumbai. “We will ultimately operate from just four floors in the building as commercially there is a lot of interest in the property,” said an Air India official. The airline expects to earn Rs.1,000 crore from these assets this year.

With the situation on the ground looking good, Air India is expected to fly higher in the sky. “A revival looks to be in the cards but there is still going to be a lot of competition from the Jet-Etihad alliance as well as Air Asia. Now it would need to be competitive when it comes to offering of passenger services,” said Ram Tamara, director  of Nathan Economic Consultant India and an adviser to the civil aviation ministry. “All said and done passengers' needs have to be addressed on a regular basis beyond this transition period.”

How Air India turned it around

Equity infusionThe government has infused Rs.5,000 crore into the airline. Another Rs.3,574 core is expected next year. Also, the government has agreed to Rs.12,000 crore of non-convertible debentures to be issued to lenders. With some of the dead weight on account of working capital loans removed, the airline's interest bill has fallen from Rs.380 crore a month to about Rs.150 crore a month.Operational efficiency
On-time performance and occupancy rate have tremendously improved. Air India is planning restructuring or withdrawal of services that do not cover operating cost.Fleet pruning
Air India has withdrawn its Boeing 747 Jumbos and is replacing the Boeing B-777 long-range aircraft with Boeing B-787 Dreamliners. Fourteen Airbus A-320s have been reconfigured into all-economy class. It is also planning to lease out or sell 19 aircraft that are more than 20 years old.Unlocking of underutilised assetsRegularisation of the property titles Air India holds in Delhi and Mumbai is under way. More tenants are expected in Air India House in Mumbai. 

 

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Source : The Week

By : Soumik Dey.  Story Dated : August 24,  2013

 

Aviation News in Perspective 24 AUG, 2013 Issue - X

 VIVA…!! Indians & India…..the World Welcomes You….

Germany :

The German National Tourist Office (GNTO), will be conducting road shows in Mumbai, Delhi, Chennai and Bangalore to attract Indian youth, students, and budget travellers with attractive boarding and lodging packages….
….So get set and Go to the Fatherland……
The Phillipines :
Verna C. Buensuceso, Director, Market Development Group, Philippines Tourism, said… number of tourists from India to her country has more than doubled….Manila is trying to woo Indian tourists through its dried mango varieties and ….14-day visa-free visit to Indian tourists
The U.S. of A….
For the first time ever, Diwali will be celebrated at Times Square on 22nd September 2013. It will be a full day of fun, food and festivities for all ages…. In the evening, the excitement continues with Light Up Times Square, a concert showcasing performances by some of the biggest names in the entertainment industry….
& offcourse the Kingdom of Oz……
Come Aug 29/30, Air will touch down in Sydney, after a hiatus of 16 years….Australia is rolling out a Red Carpet for Indians and Air India…..Executive Director of Sydney Airport, Shelley Roberts said, “Mumbai is another catchment in India where there is a fantastic opportunity so that’s next in our sights. We’re working closely with Tourism Australia and Destination NSW to see who the carriers might be……

Great News for Our Air India…..

The UN aviation watch dog may remove the country from its blacklist after a week-long compliance audit of the Indian aviation regulator this week…

According to AI sources, the B-787’s have increased profitability by as much as Rs 4-5 lakh per flight. “Thanks to its 25 per cent fuel efficiency.  

B-787….a saga of unending woes ….

B-787 hit by Fire Extinguisher Wiring Flaw….

…Japan Airlines last week recalled its B-787 flight to Helsinki, back to Tokyo, after it discovered wiring defects in the fire suppression system on three aircrafts…. a wrong fire extinguisher will be triggered in the event of a blaze in one of the two engines…
Chronology of major B-787 flaws, since its inception in Aug., 2011…..
Jan.,7, 2013 - A fire breaks out in an empty Boeing 787 Dreamliner parked at Boston's Logan International terminal E owned by Japan Airlines (JAL)……
Jan., 8, 2013 - a JAL Dreamliner
jet is towed back to the gate at Boston's Logan International Airport after the plane leaked fuel while taxiing for departure…..
Jan., 16, 2013 an ANA 787 Dreamliner….
…..stands on the tarmac at Takamatsu Airport, Japan, after making an emergency landing due to a burning smell. Investigation revealed that there was a battery fire on the aircraft…
June 23, 2013 United Airlines Dreamliner….
made an emergency landing at Houston due to problems with its brake system …..
July 12, 2013 Ethiopian Airlines 787……
A spontaneous fire broke out on an empty Ethiopian Airlines 787 parked at London’s Heathrow airport. Lithium-manganese dioxide batteries powering an emergency locator transmitter caused the fire….
July 22, 2013 Qatar Airways 787…..
…. grounded one of its Dreamliners because of a “minor” technical issue. According to reports, the aircraft had been grounded for days after smoke was seen near an electrical panel……
Does Japan doubt Ai’s engineering & Flight safety capabilities…..
…Japan’s CAB bans AI’s B-787 operations to Tokyo and Osaka for failure of AI to submit the documents demanded by the Japanese CAB. Does it doubt AI’s technical capabilities….????
( The biggest single beneficiary  of these B-787’s has been the Airbus Industrie, who have developed a similar composite material A-350. They will not only eliminate these flaws in design & technology, but even score brownie points for their Brand Image & reliability, by delivering a problem free A-350. Refer Chocs-on…Nuggets dt. 22 Aug, 13, ‘Flight of Fantasy ‘ )

Sudden Boom of L.C.C.’s…..Is Airline Business Shifting….

First we had the Full Service Carriers  (FSC’s) & Tourist Charter Operators.  Then came the LCC’s, followed Ultra Low Cost Carriers’s (ULCC’s)….! Closely following this model emerged  LHLCC’s ( Long Haul LCC’s ), followed by ‘ Hybrids ‘……What was hitherto a pursuit of some ambitious individuals initially,…is gradually  becoming an industry norm, and today, a hot pursuit of major established airlines across the world. Read on……

British Airways ( IAG ) orders 220, A320 shorthaul aircrafts for a record US $14.5 billion..

…BA in a bid to tackle increasing competition from LCC’s Ryanair and Easy Jet in the European short-haul flights , has decided on an aggressive strategy for Vuelling, its LCC arm…….
Lufthansa  ….
Refer previous issue of Chocks-on, wherein we had mentioned, how the Senior Management of Lufthansa was working on an LCC model to combat increasing  competition from Persian Gulf carriers and the new age LCC’s…..
Singapore Airlines…..
...has already created and established its LCC’s , Tiger Air and Silk Air, which are growing rapidly in the Regional & Australasian air space….
Thai Airways……
…which already has Nok Air, is contemplating an Ultra Low Cost Airline to be launched in 2014……
Emirates…….
…Dubai already boasts of a world class low cost airline, Fly Dubai , though it is not an arm of the mega carrier Emirates….
Qantas……
…..Jetstar and Virgin Australia are the two most active LCC’s under Qantas for domestic and regional operations in the Pacific and Oceania…..
China….
Mr Li Jiaxiang, head of the Civil Aviation Administration of China (CAAC), told a working meeting this month that the regulator would study new policies to promote low-cost carriers in the second half of the year….
ANA, Japan….
..ANA Japan is all set to launch its low cost airline, ‘ Vanilla Air’ in November this year….

Quicklets……in a Jiffy….

81 foreign airlines operate approx. 1,734 flights/week from 25 Indian Airports….

Gulf Carriers operate the maximum flights/week- EK- 185 ; Air Arabia 111 ; Oman Air 98; Qatar Airways 95…

European carriers, British Airways and Lufthansa operate 46 each; Air France 20 ; Virgin Atlantic and Turkish Airlines 14 each

 East Asia carriers, Malaysia Airlines 70; Singapore Airlines and Thai Airways (56), Air Asia Berhad (53), low-cost Tiger Airways (42) and Cathay Pacific (35).

India Ratings & Research agency, says domestic carriers need strong and supportive promoter, to survive the fiercely competitive and challenging financial environment ;

Air Kerala grounded before take-off ? Major Gulf NRIs not keen to invest…..

Air India, AI Express baggage cut takes off: UAE expat groups head to New Delhi…..

Chinese Travellers Become World’s Biggest Spenders; Independent Travel on Increase….

Qatar Airways to Launch Boeing 787 Dreamliner Flights to Delhi and Bangalore from Sep… 

As part of its Brand Image building Air India show cases its art collection for the  first time….

Drastic reduction in Lean season sees air fares, airlines brace for price war ….

Newly opened Chennai Airport, faces litigation for shoddy work & facilities…..

 

With this, we sign off for the week !

Wishing You and Your families, a Wonderful Weekend  !!!!

Our Credo….”Network & Be Informed “

( PLEASE VISIT OUR WEBSITE : http://chocks-on.blogspot.in/ )

Nuggets of Airline & Aviation

Chocs-on     Nuggets.....  22 August, 2013

 

 

The Airbus 350 has made its first ‘virtual passenger flight’, with 129 passengers and a cabin crew supplied by Cathay Pacific taking part in a four hour dry run in an A350 mock-up dubbed ‘Cabin Zero’.

 

The make-believe flight is another milestone in the road towards the A350’s debut into commercial service in mid-2014, and follows the next-gen jetliner’s first actual flight on June 14th.

Here’s an inside look at this flight of fancy – Flight 0900 from the Canary Islands to Hamburg, Germany…

On July 25, 129 passengers on Flight 0900 received their boarding passes, walked into the cabin, stashed their trolley bags in the overhead lockers and took their seats for what they hoped would be a comfortable and event-free journey.

The flight took off a little later than scheduled – not so unusual in today’s operating environment – but around four hours later the captain announced over the PA that they had made up time and the aircraft had begun its descent.

All perfectly routine, you might think, until you realised that the aircraft never actually left the ground.

In fact the whole 'flight' took place in a full-scale cabin mock-up in the Airbus plant situated on the outskirts of Hamburg.

This was ‘CVFF’ – the cabin virtual first flight and engineering test staged in the A350 XWB Cabin Integration and Test Centre.

It was the latest stage in the development of this revolutionary new aircraft type, running in parallel with the flight test campaign that has seen the A350 perform 15 flights so far.

 

Our Credo….”Network For Aviation Info & Be Upto Date "

What's your favorite aircraft?

Wednesday, August 21, 2013

 

By:

Bill Burke / The Travel Guy

A poll of over 1,000 flyers by Airfarewatchdog that asked "What's your favorite aircraft type," reveals that in spite of quieter, newer Airbuses, people prefer wide-body planes.  Some take-aways from the poll:
Flyers want space/comfort over "newness" with the exception of the Airbus A380 (super quiet) which came in right below the classic 747 in polling results.
The new Dreamliner 787 ranked on the lower end, despite its much publicized, high-tech debut (perhaps due to its negatie press around its battery issues).
Favorite Aircraft Types:

1. Boeing 777: 25%
2. Boeing 747: 18%
3. Airbus A380: 16%
4. Boeing 787 8%
5. Boeing  737: 7%
6. Boeing 767: 7%
7. Boeing 757: 5%
8. Airbus A320/312: 4%
9. Airbus A330: 4%
10. Other: 4%
11. Embraer 190: 3%
12. Airbus A340:2%
13. Boeing 717: 2%
14. Embraer 195: 1%

"Our poll shows that wide body aircraft are generally more popular than narrow bodied ones, despite the fact that it's one of the most common plane types, so presumably a lot of people have experienced it," Airfarewatchdog president George Hobica said. "The ubiqitous Boeing 737 fares poorly in our results, while the far less common 777, a newer wide body, is the most popular plane. The 777 is not only newer, but it affords a sense of spaciousness that even the larger 747 doesn't have. Very few people have flown in the new 787 yet, which might explain its poor showing relatively--or perhaps it's the plane's well-publicized battery issues. And it's interesting that the far less common Airbus A380 is as popular as the older 747. That result might be explained by the fact that the A380 is much quieter in flight. In fact, it's perhaps the quietest "ride" in the sky.  And it's surprising to see the poor results for other Airbus models, such as the widebodied A330 series, of which there are hundreds plying the skyways."

Our Credo….”Network & Be Informed “

Weekend Platter ! ( 03 AUGUST 2013 ) ISSUE – VIII

Chocks-on….Weekend Platter ! ( 03 AUGUST 2013 )   ISSUE – VIII

 

…Causes Celebre….!!  Well Done, Team Air India…..

Birmingham welcomes AI’s First B-787 flight AI-113/01 Aug. from ATQ ….

Mr Paul Kehoe, CEO, BHX Airport, said … We are delighted to welcome this new service into Birmingham…..

Shri  Rohit Nandan,CMD, Air India  flew in on the inaugural service and was welcomed by Sir Albert Bore, the Leader of Birmingham City Council and Mr Sri VS Ramalingam, Consul General for India in Birmingham. & a delegation of Midlands’ VIP..

9 more International destinations on the anvil . Management of AI has accomplished the first of the 10 destinations it has identified for expansion. Other 9  new stations  proposed are  Sydney, Melbourne, Rome, Milan, Moscow, Bali, Nairobi, San Francisco, Madrid…..

AI’s Financial Credit Worthiness Gets Acknowledged : Corp Bank during the year 2012-13 has given Air India ‘Five Star” rating of borrowers based on our prompt dealings and track record of repayment.

A Positive EBITDA : For the year 2013-14, AI recorded a positive EBITDA of Rs 19.45 crores

Performance…Air India’s performance for Turn Around has been better than the targeted, on all performance parameters set by Ministry. The time lines set have been successfully met.

Employee Arrears & Emoluments : The pending arrears of almost all employees have been settled. The time gap in payment of salary/emoluments has been considerably reduced.

Come Aug. 29 another milestone will be accomplished… AI will be touching down in Sydney  & Melbourne…

Credit for this goes to the CMD for resurrecting the Brand Air India, with his sharp focus and determination to restore the glory of Air India. Congratulations !

…Quicklets !! …News and Events on the home front…..

Kapil Kaul of CAPA praises Rohit Nandan, CMD, Air India…….

..… Rohit Nandan has performed exceptionally well, given the circumstances, especially the way the Ministry of Civil Aviation runs Air India without accountability,…"

( Well deserved and very much rightly so. Congratulations ! )

Air India Pilots, flying into the US, could soon be under the FAA scanner …….

.....In addition, the FAA is evaluating India's Directorate General for Civil Aviation because of recent lapses in airline safety, some involving Air India pilots….

Shri Jitender Bhargava- former Executive Director, Air India- on recent B787 problems….

……If these kind of events take place, it can create an element of fear in the travelling public, which is the last thing that should happen….

Shri Ajit Singh, MoCA – on Jet Etihad deal that finally got cleared ‘ conditionally ‘…..

… "All concerns of the MPs and others have been resolved …important step for the civil aviation sector. We need money for infrastructure projects, which will come through FDI..

COROLLARY : A similar stand has been taken by the US Govt., on opposition by US Carriers to setting up Immigration & Customs pre-clearance facility in Abu Dhabi….

…. “There are many aspects of the economic piece that are not just focused on the concerns expressed by the U.S. carriers,…. federal officials see much more at stake, starting with containing Iran, boosting U.S. exports, as well as perhaps strengthening the defence industrial base. ….says Kevin McAleenan, of the U.S. Customs and Border Protection (CBP)

( These are Politico / Economic decisions with far reaching consequences and deep ramifications. They need to be assessed in totality…..)

K Shanmugam, Foreign Affairs and Law Minister, Singapore-…….

… called on India to start negotiations on a full air transport agreement with ASEAN that includes passenger services…..

SpiceJet – The new Queen Bee of F.D.I……..

...Yes !! Rumours are rife of many suitors in queue to pick up a stake in Spice Jet…..starting from Qatar Airways, to Kuwait Airways, to Emirates, all F.S.C….The latest entrant is Tiger Air, an LCC….and a non-Gulf carrier….

SpiceJet….Strange and Surprising……

....understandably the Marans, promoters of SpiceJet, want to be OUT OF the airline business altogether. They are looking for a strategic partner as an investor…..

( Seems Vijay Mallya’s debacle is becoming VIRAL…..)

Air Asia India may miss the October deadline….courtesy Dr Subramaniam Swamy…..

…on Thursday, 25  July Dr Swamy  filed a petition in the Supreme Court seeking to withdraw clearance given by FIPB terming it as illegal. He has asked the Court to prohibit government authorities from taking any action contrary to the applicable FDI policy……

Mumbai Airport T2 – all set to raise the curtain in October- 2013… Great going indeed… !!

Mumbai Airport T2 to have most modern lounges…..

Indian food & beverage retailer TFS have been awarded the concession to operate lounges in T2…These will be common lounges spread over 54,000 sq. ft. and boasting of distinctive interiors & lounge facilities like cultural theatres, luxury spas, wi-fi  chairs and private shower facilities….  

…Tidbits… !! News and Events on the Overseas front…..

Mr Mak Swee Wah, SIA, Executive VP Commercial on FFP, Product Enhancement...

…For its KrisFlyer Members Singapore Airlines is offering a New Airfare Payment Option…For airfares booked thru its website, members can mix miles and cash to pay for airfare, fuel surcharge and taxes on SQ and Silk Air flights….!” Members can look forward to further enhancements in the year ahead.."said Wah. ( Excellent Initiative….)

Mr Toby Smith, General Manager, Cathay Pacific- on the New First Class Product…..

“…Our award-winning First Class suite has been very popular with passengers….we decided it was appropriate to give the suites a fresh new look and make a few changes that will enhance the overall experience for our premium passengers…….”

( Eastern Carriers are very savvy & professional in Aviation business. We had in the earlier issue of Chocks-on highlighted how SIA, has recently invested millions in First and Club Class upgrades. They firmly believe in Premium business segment to drive profits….Is Air India listening ???? )

Christopher Fordyce, R.C.M., British Airways, South Asia – on daily flights to HYD…..

 “It is a joyous moment for us at British Airways to further enhance our services to India…. Hyderabad is truly a key market in our South Asian network…. resulting in concerted growth in the outbound business and leisure tourism..

Azran Osman-Rani, CEO, Air Asia X – on operations to Adelaide, Australia…

…Our goal since launching our first Australian service in 2007 was to operate in the five major states, and we are proud to have accomplished this within six years ... We are very excited to finally touch down in South Australia….

( LCC- Air Asia of late has made rapid expansion in Australia- touching 5 gateways- SYD, MEL, PER, Gold Coast and now ADL. Is Air India listening ? with Air Asia already in India )

Michael O’Leary, CEO, Ryanair – Novel Cost Saving Directive to Pilots…..

…after a fall in quarterly profit, Michael asks Pilots to fly slowly….flying below 600 mph adds 2 minutes to every flying hour and will yield a whopping 15% savings in fuel cost…..

( Are AI pilots listening, because something similar was requested of AI pilots recently, but it did not go down well with AI pilots….)

Singapore Airlines to add 3^rd daily B-777 flight from Delhi to Singapore……

…eff. Winter 2013, Singapore Airlines will add a 3^rd daily flight on DEL-SIN route. ( Is SQ closing in on AI’s Australia operations. Seems so. Australia is and has always been the bread & butter of SQ from the Indian Sub-continent….and losing it is a challenging mandate for SQ to contend with…..)

…& now Worlds Top 5 Airlines by Economy Class Cabins  (

Based on rankings by Skytrax 2013 World Airline Awards Best Economy Class are ) #1- Garuda Indonesia  ;  #2-Asiana Airlines ;  #3- Singapore Airlines ;  #4 – Qatar Airways ; #5 – ANA – All Nippon Airways.

….& now a little Humour & Laughter  …..

After reaching the cruising altitude, the captain made an announcement, "Ladies and gentlemen, this is your captain speaking. Welcome to Flight Number XYZ. The weather ahead is good …now sit back and relax. –

“OH, MY GOD!" Silence followed and after a few minutes, the captain came back,.. "Ladies and Gentlemen I am so sorry if I scared you earlier; but, while I was talking, the flight attendant spilled the hot coffee in my lap. You should see the front of my pants!"

A passenger in Economy said, That's nothing. He should see the back of mine!"

 

Wishing you & your families a Wonderful Weekend !!!

Our Credo….”Network & Be Informed “

( PLEASE VISIT OUR WEBSITE : http://chocks-on.blogspot.in/ )