Category Archives: Aviation

The government on Monday has invited Expression of Interest for 100 per cent stake sale in Air India (AI). Along with AI, it has also invited interest from bidders for its entire 100 per cent stake in the low-cost international arm, Air India Express and its complete 50 per cent share of ground handling subsidiary AISATS. The total debt of AI and AI Express to be taken on by the new buyer is Rs 23,286 crore. The actual debt of the two entities combined was Rs 60,074 crore. The balance of nearly ₹27,000 crores has been absorbed by the government. The last date for submitting interest to the transaction adviser is March 17 and the result is expected to be known by March 31. Ernst & Young is the transaction adviser. The bid document says that the FDI policy for the sale remains unchanged, i.e. foreign carriers will be able to own 49% stake in Air India. The substantial ownership and effective control (SOEC) clause will also be applicable and will have to remain with an Indian.

VCADomestic air passenger traffic grew to 14.41 crore in 2019, an increase of just 3.74 per cent compared to 2018, revealed Directorate General of Civil Aviation (DGCA).  The domestic air passenger traffic grew by 18.6 per cent to 13.89 crore in 2018. The decline in growth is attributed to the collapse of Jet Airways in April 2019. The passenger load factors of all major airlines – Air India, SpiceJet, GoAir, IndiGo, AirAsia India and Vistara. The domestic air passenger traffic in December 2019 increased by 2.56 per cent to 1.30 crore compared to the same month in 2018. In comparison, the growth in domestic traffic in November 2019 was 11.18 per cent.

LOT Polish Airlines has decided to increase the number of weekly Boeing 787 Dreamliner flights from five to seven effective 14th September 2020. India-originating passengers can now further benefit from the new codeshare agreement between Star Alliance members LOT Polish Airlines and Air India, offering seamless connectivity via New Delhi’s Terminal 3 from Ahmedabad, Bengaluru, Chennai, Goa, Hyderabad, Kochi, Kolkata, Mumbai and Pune. On its Delhi-Warsaw route, LOT Polish Airlines features Indian meals in all three cabins (LOT Business Class, LOT Premium Economy Class, LOT Economy Class), complimentary beverages including alcoholic drinks as well as inflight entertainment system including the latest Bollywood releases in Hindi. Amit Ray, Regional Director India and DACH Markets of LOT Polish Airlines: “Our market entry in India has been a great success since the beginning. We have seen strong bookings from corporate and leisure travellers alike. We are therefore very pleased to increase our frequency.”

Chennai Airport will be the first airport in India to house five screens of PVR Cinemas. The screens will be located in the multi-level car parking complex, which is under construction. The facility is being built at a cost of ₹250 crore by the Olympia Group, and will not only have a theatre but also many options for food and beverage. The five screens would have roughly over 1,000 seats. According to officials of the Airports Authority of India (AAI), the multi-level parking would be completed and thrown open to the public by October. It has been revealed that the facility will be constructed in such a way that it will be convenient for passengers to park their cars, shop and watch a film. The facility is coming up on either side of the Chennai Metro Rail station at a height of 27 metres. The parking facility can accommodate 2,000 cars. The theatre will be built by Olympia Group for a budget of 250 crore rupees.

Sanjay Kumar, who recently stepped down as COO of Air Asia India, will now be joining as Chief Strategy & Revenue Officer, IndiGo Airlines. Kumar was previously employed with IndiGo Airlines as Chief Commercial Officer till 2018, before his stint with Air Asia. With over 25 years of experience, Kumar has even worked with SpiceJet and erstwhile Sahara Airlines as well. The news has been confirmed by Kumar, who will reportedly be joining IndiGo very soon.

Lufthansa Group has chosen Google Cloud as a strategic partner to further improve its operational performance and minimise the impact of irregularities on its passengers. The idea is to build a platform that will suggest scenarios to return to a stable flight plan in the event of an irregularity so that passengers still arrive at their destinations as punctually and comfortably as possible. This will be done by merging data from various processes that are relevant for stable operations (for example aircraft replacement and maintenance as well as crew scheduling). “By combining Google Cloud’s technology with Lufthansa Group’s operational expertise, we are driving the digitisation of our operation even further. This will enable us to identify possible flight irregularities even earlier and implement countermeasures at an early stage,” said Detlef Kayser, Member of the Executive Board of the Lufthansa Group. For example, flights are sometimes delayed due to weather conditions such as snowfall and passengers might miss their connecting flights. In the future, it will be possible to offer faster rebooking possibilities across all four hubs for Lufthansa Group passengers thanks to systems based on artificial intelligence. “Through this collaboration, we have a significant opportunity to revolutionize the future of airline operations,” said Thomas Kurian, CEO for Google Cloud. “We’re bringing the best of Lufthansa Group and Google Cloud together to solve airlines’ biggest challenges and positively impact the travel experience of the more than 145 million passengers that fly annually with them.” A joint team of operations experts, developers and engineers from the Lufthansa Group and software engineers from Google Cloud will be developing and testing the appropriate platform. The test launch will take place in Zurich with SWISS.

Effective March 1, 2020, Qantas Airways Limited, flag carrier of Australia, will reduce the IATA BSP Travel Agency Commission to just one per cent for Qantas tickets issued in India. All Qantas tickets prior to March 1, 2020 will be eligible for the current 3% per cent IATA BSP Travel Agency Commission. The airline recently cancelled nearly one in ten flights on the busy Sydney-Melbourne corridor in the six months to November 2019, according to Australian Government statistics. The route is one of the busiest in the world and Qantas operates up to 46 return services a day at 15-minute frequencies in peak times.

Air travel data and analytics company Cirium, in its latest report titled ‘On-time Performance Review 2019’, has named All Nippon Airways (ANA) as Asia Pacific’s most on-time mainline airline and network airline. Singapore Airlines achieves second place in the mainline airline category, followed by Thai AirAsia, JAL and Korean Air. India’s GoAir takes the tenth spot in APAC’s mainline airlines category.  It also reveals that Aeroflot leads the global ranking in most on-time mainline airline, while LATAM is the most on-time global network airline. According to the long-running analysis by Cirium, which provides the definitive ranking of the top 10 most on-time airlines and airports globally, by size and region, 86.7 per cent of Aeroflot’s flights operated on time in 2019.

FTAs from India’s top 10 markets increased at a CAGR of 5.5% during 2008–2018, reveals CAPA India. China’s rank improved to 7th in 2018 from 10th in 2017.  FTAs from Russia registered the highest CAGR of 11.2% during the last 10 years, followed by China (11.2%), Malaysia (10.7%) and Australia (9.0%). In 2018, Sri Lanka (16.5%) and c(14.0%) were the only two source markets (amongst the top 10) that saw double-digit year-on-year growth.

The national carrier, Air India is hoping to secure additional slots at the London Heathrow airport during 2020, which will help it grow sales and make the airline more attractive to potential suitors. Air India has obtained three additional slot pairs free of cost on a temporary basis in the winter season, apart from the 28 pairs of slots it already has. The airline will operate 11 flights between Mumbai-London Heathrow in February and March 2020.  “On passenger demand, Air India is going to introduce 11 special flights from Mumbai to London Heathrow. This service will start from February 14. We are in discussion with Heathrow airport authorities for this service on a full-year basis and are hopeful our request will be accepted,” said an Air India spokesperson. With over 700,000 annual passengers and 21 per cent market share Air India is the largest carrier on India-United Kingdom routes. Emirates and British Airways are ranked second and third. Currently, the national carrier operates 28 weekly services to Heathrow from Ahmedabad, Bengaluru, New Delhi and Mumbai. It also flies to Birmingham and London Stansted airports. (Source: Business Standard)