Category Archives: Aviation

India climbed back to the top of the domestic aviation growth chart in May with a 17.7 per cent year-on-year increase, as per IATA’s Air Passenger Market Analysis. This marks the 33rd consecutive month of double-digit RPK growth. However, the very strong upward SA traffic trend has slowed since the unexpected ‘demonetisation’ in November 2016, in line with the wider impact that this looks to have had on economic activity. Business confidence surveys have recovered somewhat in recent months, particularly on the services side. However, the upward trend in domestic RPKs has slowed to an annualised rate of around 7 per cent over the past six months. Year-on-year growth in global RPKs slowed to (a still robust) 7.7 per cent in May, having reached a six-year high of 10.9 per cent in April. Industry-wide RPKs have now grown by 7.9 per cent year-on-year so far this year compared to the same period in 2016. This is equivalent to annual growth of around 8.6% once you allow for the extra day in 2016 on account of it having been a leap year.

Bird Information Systems (BIS), a subsidiary of Bird Group and a leading provider of automated aviation and travel related software solutions, have partnered with Nepal Airlines Corporation to provide them with Internet Booking Engine (IBE). As per the new partnership, BIS will provide a booking platform that will deliver on time, accurate and reliable processing of online transactions for Nepal Airlines Corporation. This new service will be open for both B2B and B2C channels.

Air India Express, the low-cost subsidiary of Air India, is preparing a 10-year vision document, and would be increasing its fleet and adding more foreign destinations. According to a senior official of the airline, despite government planning a roadmap of disinvestment of Air India, Air India Express would be consolidating its existing operations and will be looking at adding more aircraft to its fleet and increasing its overseas footprint. Air India Express posted Rs 296.7 crore net profit in 2016-17.

GVK Power and Infrastructure Ltd has announced the completion of the sale of its residual stake of 10 per cent in Bangalore International Airport Limited (BIAL) held through its subsidiary, Bangalore Airport Infrastructure Developers Private Limited to Fairfax India Holdings Corporation for a consideration of Rs 1,290 crore (approximately $200 million). In March 2017, GVK closed an agreement which was signed during March 2016 with Fairfax India to sell a 33 per cent stake in BIAL. It had retained a 10 per cent stake and the management of BIAL. Subsequently, in June 2017, GVK announced its decision to conclude the sale of this residual stake to Fairfax India, subject to necessary consents and approvals. Dr. G V K Reddy, Founder Chairman & Managing Director, GVK, says, “Since de-leveraging is currently our top priority, we decided to part ways with BIAL. However, we would like to reiterate that the airports sector will continue to be a core focus area for GVK. We will now focus on Mumbai as well as the Navi Mumbai airport for which we have won the bid and also on selectively evaluating privatisation opportunities. Capacity optimisation and real estate development will now be the priority areas for the existing Mumbai airport.”

Vistara has joined hands with the Delhi Metro Rail Corporation (DMRC) and Delhi International Airport (DIAL) to introduce check-in and baggage drop facilities at the New Delhi station of the Delhi Metro Airport Express Line. Phee Teik Yeoh, CEO, Vistara, said, “This partnership with the Delhi Metro Rail Corporation (DMRC) and Delhi International Airport (DIAL) adds to the multiple check-in options we offer to our customers. This will allow our customers to breeze through the check-in process at any of the Airport Express Line metro stations in Delhi with the same efficiency as they experience at the airport.” Vistara customers can check-in from two to 12 hours prior to their flight’s schedule departure at the New Delhi station of the Airport Express Line Metro, which is also connected to the New Delhi Railway Station of the Railways network. Those already checked-in using the web or Vistara’s mobile app can simply drop their baggage at the counter and head to the airport directly. Vistara uses secured Baggage Handling System (BHS) to transfer the baggage to the airport terminal efficiently. The Airport Express Line of the Delhi Metro runs every 10-15 minutes and takes passengers to Terminal 3 of Delhi’s IGI Airport within 18-20 minutes.

The Ministry of Civil Aviation, in its meeting with industry stakeholders, invited suggestions for designing AirSewa 2.0, which would be the upgraded version of the AirSewa web portal and mobile app that was launched in November last year to make air travel convenient and hassle-free. Nodal Officers of all stakeholders like airlines, airports, immigration, customs, DGCA, etc. attended the meeting. All of them shared valuable suggestions for service improvement, enhancing user comfort and quick redressal of complaints, which will be considered for  incorporation in the design of AirSewa 2.0. This comes in line with the success of AirSewa1.0 which has been well received, with around 19,000 app downloads and over 65,000 web portal hits since its launch. More than 92 per cent of grievances have been resolved and most of them within the stipulated time limits.

The Board of Vistara (TATA SIA Airlines Ltd), and the two promoters of the company, Tata Sons and Singapore Airlines, as part of the plan, have named Leslie Thng to succeed Phee Teik Yeoh as Chief Executive Officer for Vistara, effective October 2017. This is subject to approval of the Government of India. Phee Teik Yeoh, currently the Chief Executive Officer of Vistara, will be returning to Singapore Airlines (SIA) to take up a senior appointment. Yeoh, who has been an SIA veteran, is credited with successfully leading Vistara since its establishment in January 2015. Thng, who started his career in SIA, has held many senior positions in the airline, and has significant experience across international markets and various businesses. Prior to being appointed Chief Commercial Officer for Budget Aviation Holdings (BAH, a Singapore Airlines owned holding company), he was Chief Executive of SilkAir. Leslie will lead Vistara in its next phase of growth, including international operations.

Aviareps has been appointed by Sky Express to represent the Greek domestic airline as its General Sales Agent (GSA) in eight markets around the world including Australia, Canada, France, Hong Kong, India, Italy, Spain and the United Kingdom. The appointment, made with immediate effect, is the result of the airline’s initiative to expand its sales and marketing outreach internationally to travellers and travel industry leaders in key strategic markets. Operating out of its three domestic hubs of Athens, Thessaloniki and Heraklion in Crete, Sky Express connects travellers to 29 major tourist, cultural and business centres throughout Greece including Santorini, Mykonos, Rhodes, Milos, Paros, Naxos, Kos, Mytilene, Ikaria, Zakynthos Kythira, Chios, Karpathos, Syros and Skyros to name a few. The fleet, which consists mainly of ATR aircrafts, is available for scheduled and charter flights, for individual passengers or groups. All Sky Express passengers departing from Athens or Thessaloniki are also provided free access to Business Lounge facilities.

Royal Jordanian Airlines has announced that it has been removed from the laptop ban for carry-on bags to the US. Even Kuwait Airways has had the electronic ban removed in flights to the US. The flagship carrier of Jordan was amongst the nine airlines flying from 10 airports in eight countries where electronic devices larger than cell phones in carry-on bags were banned. Etihad Airways was the first airline to announce the lifting of the ban on July 2, followed by Emirates Airlines, Turkish Airlines and Qatar Airways. The airlines that are still listed in the March laptop ban include EgyptAir, Saudi Arabian Airlines and Royal Air Maroc.    

Ministry of Civil Aviation, hosted the first edition of WINGS 2017 – ‘Sab Uden, Sab Juden”- Expanding Regional Connectivity in New Delhi.  The plenary session was chaired by  P. Ashok Gajapathi Raju, Union Minister of Civil Aviation.  Around 338 delegates from the government and civil aviation sector participated in the event which included key stakeholders from all states, tourism departments and tour operators. The stakeholders interacted amongst themselves in 112 one to one discussions (G2B meetings) with the airlines operators in an attempt to showcase their destinations and routes as viable business market for the airlines. They represented airline consumers to facilitate interaction with various airlines, airport operators, cargo operators and other ecosystem players at a common forum. Jayant Sinha, Union Minister of State for Civil Aviation;Rajiv Nayan Choubey, Secretary, MoCA; B S Bhullar, Director General of Civil Aviation; Guruprasad Mohapatra, Chairman, Airports Authority of India; Usha Padhee, Joint Secretary, Ministry of Civil Aviation and Pratyush Kumar, Chairman, FICCI National Aviation Committee also attended the sessions. 19 states made presentations emphasising the incentives or special packages to the airlines other than the support offered by Government of India under RCS- UDAN. The closed-door event entailed incentives to the airlines operators such as underwriting of seats, reducing the tax on ATF, additional VGF, night parking, concessional electricity and water charges, infrastructural support etc. and routes and airport wise benefits. This event proved to be an ideal platform for states to project themselves as a viable aviation market and showcasing the strength and opportunities in the aviation sector to the potential airlines.