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www.expresstravelworld.com MONTHLY INSIGHT FOR THE TRAVEL TRADE
May 2007  
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Nary a dull moment

Market

CIAL subsidiary to develop cost-effective airports
After low-cost airlines, it is now the time for low-cost airports. If all goes as planned, the Cochin International Airport (CIAL) model will soon be replicated nationally and internationally.

Jet to clear Air Sahara travel agent dues, PLBs
The recent buyout of Air Sahara by Jet Airways and its rechristening as JetLite is probably the most discussed news in the aviation business in India. But what went unnoticed were the various repercussions and fallout that this change could bring about.

Air Mauritius sharpens India focus
Air Mauritius has plans to sharpen its focus on the Indian market. Manoj RK Ujoodha, its CEO, was in India recently to strengthen the airline's position and business prospects, by increasing its human resource and its GSA and PSA network in India.

Air ticket cess to fund small airport revamp
With the central government planning to fund the development of 35 non-metro airports through internal accruals, rather than taking the private funding route, some airline operators believe the government may consider its earlier decision of levying cess on air tickets.

TAAI, TAFI issue notice to all Gulf carriers from India
The Travel Agents Association of India (TAAI) along with Travel Agents Federation of India (TAFI) was, at the time of going to print, on the brink of issuing a notice to all Gulf carriers in India as they have taken a sudden decision to reduce airline commissions from the existing seven per cent to five per cent, effective May 1, 2007.

Merger makeover: June may see new beginnings
The marriage between Air India and Indian has finally been announced and now is the time to see what the future of the new family is. In all probabilities, the month of June will witness more news coming out from the Maharajah's office.

CSIA becomes first Indian airport to install SITA's airport management system
Mumbai International Airport (MIAL) has announced that it is going live with India's first modern airport management system at Chhatrapati Shivaji International Airport (CSIA), Mumbai.

CAPA to organise two aviation events in Mumbai
The Centre for Asia Pacific Aviation (CAPA) will be organising two exciting aviation events to be held in June at Mumbai. The two events will have the highest calibre of speakers addressing major issues facing the sector.

Finmin may review plane import duty
The finance ministry is likely to review its decision of imposing a customs duty of 23 per cent on import of aircraft by chartered operators. Currently, only aircraft imported by scheduled operators and the government are exempt from this duty, which includes three per cent basic customs duty, 16 per cent of countervailing duty and four per cent of special additional duty.

Big players warn about widening gap between capacity and market growth
Growth in Indian aviation is beginning to evoke a lot of concern. Industry experts point out that growth in capacity in domestic civil aviation has been much more rapid than the traffic growth in the domestic sector, which in itself is a matter of extreme concern for industry players.

Malaysia Airlines intensifies BTP initiatives
Malaysia Airlines intends to undertake various initiatives in order to further intensify its Business Turnaround Plan (BTP) in the year 2007. It announced a net profit of RM121 million for the quarter ending December 2006, its second consecutive profitable quarter since the unveiling of its BTP in February 2006.

Turkish Airlines targets 30% growth in 2007
With a fleet of 102 aircraft, Turkish Airlines is expecting its traffic from India to grow by 30 per cent in the current year. According to the airline, it receives a large number of queries from India for incentives and leisure travel.

Centre approves Rs 1,542 cr modernisation plan for Kolkata airport
The Union Government has recently cleared a Rs 1,542-crore modernisation programme for Netaji Subhash Chandra Bose International Airport in Kolkata. It is slated to have an upgraded terminal, latest navigation and communication aids and an extended runway.

Allocation of seats made compulsory for airlines
The Directorate General of Civil Aviation (DGCA) has made it mandatory for airlines to allocate row numbers and seat numbers to passengers travelling in a public transport aircraft. This was issued to ensure correct loading of aircraft and keeping the centre of gravity of the aircraft within limits at all times during flight.

Indian airport charges lowest among international hubs
A report submitted by India to the International Civil Aviation Organisation (ICAO) for the 'Worldwide symposium on performance of air navigation system' shows the airport charges in the country are comparatively low when compared with major international hubs.

MIAL eyeing 26 acres of private land near airport
Exploring all avenues for development, the land-locked Mumbai airport finds itself in a critical dilemma. After the civil aviation ministry put in a request to the Empowered Group of Ministers to release 200 acres of salt-pan land to rehabilitate encroaching slums, MIAL, the consortium headed by GVK, is now eyeing 26 acres of private land skirting the Chhatrapati Shivaji International Airport (CSIA) for aviation related development.

Bharat Forge to set up aircraft parts plant
Hitherto known as the auto-component hub of India, Pune has upped the ante and staked claim as the new backroom for aerospace engineering. The city-based Bharat Forge (BFL), already a global player in the auto-components sector, is setting up a Rs 350 crore Centre for Advanced Manufacturing at Baramati in Pune district.

Airlines plan increase in fuel surcharge
With aviation turbine fuel prices likely to go up again by around 4% for the month of May, airline companies are planning to increase the fuel surcharge, said Indian Airlines chairman and managing director, Vishwapati Trivedi.

Kerala fast-tracks intl airport at Kannur
The state government has decided to fast-track acquisition of another 2,000 acres of land for Kannur airport. With this move, Kerala is now on the track to having the most number of international airports in the country - an average of one every 130-odd kilometre.

11 non-metro airports to miss modernisation bus for land crunch
Due to non-availability of land, only 24 non-metro airports, out of the total 35 being modernised, will witness city-side development through the public-private-partnership (PPP) route. The ones likely to miss the bus include Agatti, Agra, Chandigarh, Jammu, Pune, Dehradun, Goa, Raipur, Bhubaneswar, Port Blair and Udaipur.

Air India to add 25 aircraft, hire 1000 pilots for AI-Express
Air India (AI) has decided to replace leased aircraft of its budget carrier AI-Express with completely owned fleet. It is also on the lookout for recruiting more manpower.

Snippets

Management

US: Eyeing the Indian skies
The first ever US-India Aviation Partnership Summit held in New Delhi from April 23 to 25, 2007 proved to be a meeting of like minds, with an active exchange of ideas in the field of technology and security systems, and planning managerial and strategic activities. More importantly, it focussed on the challenges in the field of air traffic management. Express AviationWorld brings to you the action directly from the summit's epicentre

India: Land of promise
Going by the way the world is looking at India and tracking down it's every move across sectors and industries, one can easily conclude that 'India' is the latest 'catch-word' or should we say 'cash-word' for growth. The Indian aviation sector is no exception and top of the line on the radar of the global aviation business.

‘India's booming airline industry needs consolidation’
Virgin Atlantic Airways, UK's second largest long haul airline, has big plans for the UK bound Indian traveller. Steena Joy spoke to Neha Lidder Ganju, marketing manager, India, Virgin Atlantic Airways, of the airline's plans for the sector and its new advertising campaign.

‘With nearly seven airports planned, the future of aviation in AP looks bright’
The new international airport coming up at Hyderabad is making headlines for its technology, architecture, and runway length. Consequently, the entire state of Andhra Pradesh, and, the country, are taking note. K Brahmananda Reddy, IRAS, special secretary to government of Andhra Pradesh (GoAP), Transport, Roads & Buildings (Ports) Department (T R &B) speaks to Vyas Sivanand about the new initiatives undertaken and the existing airports' renovations.

On the global aviation map
The new state-of-the-art international airport coming up in Hyderabad with its first phase slated to be operational by March 2008 is expected to place the city as a major aviation hub in the country, and even South Asia, reports Express AviationWorld.

Awaiting higher altitude clearance
High fuel cost and airport clogs continue to keep low-fare carriers below their potential says Jeh Wadia.

Edge

‘India is not an over-serviced but an under-serviced market’
That Indian aviation sector is booming is well-known. However, what is not so well-known is that there is a demand for maintenance, repair and overhaul (MRO) of aircraft which is mandatory for every aircraft after it flies for a number of hours and miles. Worldwide the total volume of the MRO business is about US$ 55 billion and growing at four per cent annually. India's fleet strength, already prominent on the aviation radar with 300 commercial aircraft flying, is slated to grow to 500 by 2010 and 1,000 by 2020. This offers a huge opportunity to MRO service providers. Lufthansa Technik AG, of the Lufthansa group has just announced its plans to set up a MRO facility in collaboration with GMR group, the promoters of the greenfield Hyderabad International Airport, who are also modernising the Delhi International Airport. August Wilhelm Henningsen, chairman of the board, Lufthansa Technik AG shared his plans with Satya Naagesh Ayyagary. Excerpts.

Now, free Wi-Fi connectivity at Mumbai airport
At country's first international airport with a free wireless service, internet kiosks also being set up says Lekha Agarwal.

Aviation Life

The human factor
The merger of Indian and Air India and the acquisition of Air Sahara by Jet Airways has shifted the spotlight to crucial human resources. Viveat Susan Pinto finds out how these companies are dealing with their manpower issues

Scorching the sky
With the tag-line 'Choo lo Aasman' and an added distinction of being the only all-vegetarian, full-service airline in the Indian skies, MDLR Airlines, the brainchild of Gopal Goyal, promises the stars and more to its passengers. Praveen K Singh outlines the maverick's vision.

WeekEnd

Glimpses of US-India Aviation Partnership Summit, New Delhi


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