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Monday, October 27, 2014

Air India studying A320neo/B737 MAX for Air India Express

Air India studying A320neo/B737 MAX for Air India Express


is considering leasing either A320neo or B737 MAX aircraft for its Air India Express (IX, Mumbai Int'l) subsidiary. Though Air India Express' fleet consists of seventeen relatively young B737-800s averaging 6.8 years of age, government is concerned about improving the long term fuel economy, and overall profitability of its airlines.

Indian media reports state with the A320neo set to make its commercial début during the second half of next year, so Air India has commissioned studies about the possible induction of the type into its subsidiary's fleet by 2017.

The B737 MAX is also a strong contender but is only scheduled to enter revenue service in 2017.

The carrier has already alluded to plans to lease in nineteen B737-800s over the next three years of which eight are reportedly due to arrive in time for this year's winter season.



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Tuesday, October 21, 2014

Uttar Pradesh Cuts Taxes On Aviation Fuel

Uttar Pradesh Cuts Taxes On Aviation Fuel




Uttar Pradesh has announced a reduction in taxes on Aviation fuel in a bid to promote Air Travel in the state.

Officials said a policy decision has been taken according to which Airlines will now pay only 4 percent VAT on Aviation fuel as compared to the 22 percent they were required to pay.

They said this will promote Air travel to Agra, Lucknow, Varanasi and Allahabad in the state and it should give a push to tourism in the new arc being promoted to benefit Buddhists visiting shrines in the state.

For the Agra Airport, which mainly caters to chartered Flights, 18 companies had entered the fray to operate regular Flights. But only North East Flight Company was given permission and it will begin operations early November.


There is also a weekly Air India Flight Agra.

Rajiv Tiwari, president of the Federation of Travel Agents of India, told IANS The profile of tourism in Agra is all set to change as Air travel will become affordable.The Airport has enough space for parking of Boeings.

With this, Agra's tourism industry's demand for air connectivity would be met, said tourism industry leader Rakesh Chauhan.





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Monday, October 20, 2014

India Mulls Revising Regulations Governing Charter Operators

India Mulls Revising Regulations Governing Charter Operators


Invision Air and other Indian charter carriers hoping to transition into scheduled operations may be prevented from doing so after the Indian Directorate General of Civil Aviation (DGCA) announced plans barring air charter operators from commercial flying should their fleets fail to consist of three or more aircraft within their first year of operations.

The Non Scheduled Operator’s Permit holders shall have a fleet of minimum 3 Aeroplanes and 3 helicopters either by outright Purchase or through lease. The Aircraft shall be registered in India and shall hold a current Certificate of Airworthiness in Normal Passenger category.To facilitate the start of the operations, operators will be permitted to operate with one Aeroplane/helicopter and will be given one year’s time from the date of securing operator’s permit, to have the fleet size of 3 Aeroplanes and or helicopter.Within this period of one year, the operator will be permitted to operate non scheduled services if they meet all airworthiness and operational requirements for such operations,the amendment said.

Existing charter operators will be given a one year grace period to either meet the minimum fleet requirements or convert into a Private operator in which case, they would not be able to carry out commercial or chartered Flights.

Affected parties have until November 12 to make their recommendations or proposals.


Venezuela's Conviasa takes redelivery of sole A340


Conviasa has taken redelivery of its sole widebody Aircraft YV1004 (cn 31). According to Skyliner Aviation, the A340-200 was ferried from Bordeaux to Caracas Simón Bolivar on October 16. 

Though scheduled maintenance was completed some time ago, it is understood the Aircraft was not released as outstanding bills had not yet been settled. As a result, the Venezuelan national carrier was forced to out source its widebody requirements to carriers such as
Start up Chilejet takes delivery of First Aircraft


Chilejet has added a first Aircraft to its fleet a B737-300, CC-ADZ (msn 24634), formerly with PAL Airlines (5P, Santiago de Chile Int'l). The twinjet is laid out with 148 seats in an all-Economy configuration.

Backed by the European Capital Corporation, which is owned by the Greek Asprou family who were previously involved with Welsh charter carrier Inter European Airways (IP, Cardiff), ChileJet plans to offer charter flights initially with daily services


India's Financial Express reports major carriers could soon add codeshares to smaller





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Sunday, October 19, 2014

Indian Airline Buys $40 Billion Jets In Huge Bet On The Future

Indian Airline Buys $40 Billion Jets In Huge Bet On The Future



An IndiGo Airlines A320 Aircraft is parked on the tarmac at Rajiv Gandhi International Airport in Hyderabad.

Almost four years ago a handful of people gathered in Airbus sales chief John Leahy's spacious country house outside Toulouse and argued long into the evening over curry and cigars.
Last weekend they met up again at a Parisian hotel for more haggling, with breaks taken at a nearby cafe where the informality of old business friendships mingled with hard nosed negotiations typical of the Aircraft industry.

The sum total of money discussed over these meals about $40 billion at catalogue prices, and the bill was for 430 jets, all sold to the same Indian Airline IndiGo, the low cost carrier which has grown to become the country's biggest Airline in eight years of operating.

Represented according to insiders by co founder Rakesh Gangwal and President Aditya Ghosh, IndiGo has now made Aircraft industry history twice in four years each time by placing record orders for Airbus planes, including last Wednesday's announcement that it will buy 250 A320neo jets.

The largest order in IndiaN aviation history is IndiGo most aggressive bet yet that Indian Air travel is on the cusp of a huge expansion, and that the model that made it the nation's only profitable carrier will keep working as competition intensifies.

IndiGo is showing us the level of confidence it has in its own sustainability, in the long term growth of aviation and in the future performance of the Indian economy,said Harsh Vardhan chAirman at Delhi based StarAir Consulting.

Airline industry executives are hoping Indian weak economy will rebound under new Prime Minister Narendra Modi and that the government will press for cuts to Jet fuel tax and build more Airports, slashing costs and opening up new markets.

Higher disposable incomes, an expanding middle class and rapid urbanization have made India one of the world's fastest growing domestic Aviation markets, where passenger numbers are expected to grow by more than 75 percent in the next six years to exceed 217 million.

According to Airbus executive vice president and the president of its India operations Kiran Rao, optimism about growth in Indian Aircraft demand is rising.
But few Airlines have translated that optimism into new orders on the scale of IndiGo's since most are losing money.



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Thursday, October 16, 2014

India To Overtake United Kingdom In World Aviation Market Ranking

India To Overtake United Kingdom In World Aviation Market Ranking



India, which is now the ninth largest Aviation MARKET in the world, will overtake the UK to take the third position in over 15 years, after China and the United States, global Airlines body IATA said today.

India would be among the top five fastest growing MARKETS in terms of adding more passengers every year, the first IATA projection for the next two decades showed.


Currently the ninth largest MARKET, India will see a total of 367 million passengers by 2034,an extra 266 million annual passengers compared to today. It will overtake the United Kingdom to become the third largest market around 2031,a report of the International Air Transport Association (IATA) released today showed.

By 2034, the five fastest increasing MARKETS in terms of additional passengers per year will be China (856 million new passengers per year), the US (559 million), India (266 million), Indonesia (183 million) and Brazil (170 million).



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SpiceJet Have A Formula That Works In India

SpiceJet Have A Formula That Works In India


SpiceJet COO Sanjiv Kapoor, speaking at the 2014 CAPA Asia Aviation & LCC Summit, stated (13-Oct-2014) LCCs now account for around 70% of the Indian MARKET and since there are LCCs that are MAKING MONEY, there is a formula that works”. Mr Kapoor said it is not rocket science and either you have scale advantages or you have to differentiate. Mr Kapoor said SpiceJet is not a scale carrier so there is no point in competing on scale or frequency.


India's Airlines are heading for another big loss in FY2015 

With market changing Airline partnerships occurring, major new entrants arriving and the prospect of genuine reforms following an historic general election, FY2015 in India promises to be no less eventful than any over the past decade.

CAPA will release its annual India Aviation Outlook on 15Jul 2014, covering the FINANCIAL year to 31 Mar 2015. It promises to be as interesting and turbulent as ever, with new entrants AirAsia India, Tata SIA, a new look Jet Airways with Etihad, Air India in Star Alliance and a probable IPO by IndiGo late in 2014.

In one of the world's most complex and challenging emerging MARKETS, CAPA's India Outlook has become an invaluable reference tool. This brief review looks at some of the major financial issues facing India’s Airlines.






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Wednesday, October 15, 2014

Asia in need of Thousands of new Airbus A320 Pilots

Asia in need of Thousands of new Airbus A320 Pilots


Asian Airlines have bought hundreds of new passenger Aircrafts in the past few years but they seem to have forgotten one thing, the Pilots to Fly them. Globally, analysts forecast the need for more than 300,000 new Pilots through 2020. And Asia is driving that demand.


Pilots for American, United, Delta and other U.S. carriers are looking for Jobs with Asian Airlines. Captain Doug Lister says it's not just because of better pay, upwards of $150,000 a year. Lister says, "Part of it may even be as much as feeling like you're important and appreciated. There's not been much of that lately."

Lister was one of hundreds of U.S. Pilots attending a recent job Fair in Florida hosted by Asian carriers. They've bought hundreds of new Aircrafts with more on the way.



But There won't be enough Pilots to Fly them. Asia is forecast to be short an average of 11,000 each year through 2020. And the fast hiring that needs to happen could put your safety at strike. AAG Ph Indian Representative Capt Shekhar says, "It's very difficult to grow an Airline very quickly and keep it safe so we see rapid expansion sometimes followed by high levels of Accidents."


The recruitment of foreign Pilots is one solution to the Asian Pilot shortage. But  foreign Pilots are just more expensive than domestic ones Say Capt Shekhar Gupta CEO AeroSoft Corp.

In Indonesia, the domestic supply of Pilots is slowed by a bottleneck in the classroom. One Flight school is one of just twelve training centers in a country of 240 million people. It only graduates some 40 new Pilots each year. Nationwide? Voss says, "We need 600 a year but now we only produce 300 to 400."

That's just the Flight Hours needed for a Private Pilot license. Add 120 more for a commercial license along with more than $50,000.

All this could mean turbulent times ahead for Asia's Airlines, their Pilots with new wings and the passengers who put their trust in them.

After Indian Budget passenger Airline IndiGo Wednesday signed a deal for 250 Airbus A-320neo Aircraft - making it Airbus' single largest order by number of Aircraft.
The Memorandum of Understanding for Airbus' leading single-Airsle Aircraft family was signed by its co-founders Rakesh Gangwal and Rahul Bhatia, group Managing Director of InterGlobe.

IndiGo president Aditya Ghosh Said that the new additional Aircraft would enable the Airline to continue bringing its low fares and hassle-free service to more customers and markets, besides creating more Pilots Jobs and Aviation Growth.

"This new order reaffirms IndiGo's commitment to the long-term development of affordable Air transportation in India and overseas," Ghosh noted.
The current order is the third time that IndiGo has signed such a massive Aircraft deal with Airbus.

It signed the first agreement in 2005 to buy 100 A-320s when the total order was worth $5 billion. That order, the Aircrafts under which are currently in the process of being delivered, too was one of the highest by any domestic Airline at that time.

Again in 2011, the Airline placed the single largest order in Global Aviation history, for 180 A-320s worth an estimated $15 Billion from Airbus.
Out of the 180 single-Airsle Aircraft, 150 are supposed to belong to the eco-efficient 'Neo' series, and the remaining 30 are the standard A-320s.

They are expected to be delivered between 2015 and 2020.

The A-320neo continues to dominate world market share and this commitment confirms it as the Aircraft of choice in the most dynamic Aviation growth markets," said Airbus president and CEO Fabrice Bregier.

The Airline achieved the highest market share at 32.6 percent in August. It operates 83 A320 Aircraft, including those imported till 2014. It has also inked a leasing deal to take 12 A320s from Singapore's Tiger Airways.

The new order book is expected to keep the average age of its fleet to around Five Years.

India Inc. too endorsed the budget passenger Airline's order, stating that it was a testament to the Indian Aviations potential.

According to industry lobby Federation of Indian Chambers of Commerce and Industry (FICCI) the firm order for 250 Airbus A-320neo Aircraft, the single largest order by a single Airline, reaffirms the confidence in Indian Aviation growth story.
"India is one of the least penetrated markets in terms of Aircraft. The sector is just taking off and the order reaffirms the confidence in Indian Aviation growth story," A. Didar Singh, secretary general, FICCI, told IANS.

"The sector is expected to grow at a fast trajectory as the economy improves."
Singh's view were corroborated by Amrit Pandurangi, senior director, Deloitte in India, who sAird that after consolidating its position as the largest market share holder, the Airline is looking at the future prospects of the industry.

"The company has a history of making strategic purchases. It has consolidated its position and is now clearly focusing on the future potential of the industry," Pandurangi told IANS.

The A-320neo 'new engine option' incorporates many innovations, including latest generation engines and large sharklet wing-tip devices, which together deliver 15 percent in fuel savings from day one and 20 per cent by 2020 which is equivalent to a reduction of 5,000 tonnes of CO2 per Aircraft per year.

The A-320 family is the world's best-selling single Airsle product line with almost 11,000 orders till date and over 6,000 Aircraft delivered globally to 500 odd Customers and Operators.

It has a wide cabin and offers the industry's best level of comfort in all classes and Airbus' 18-inch wide seats in economy class as a standard.
IndiGo was allowed to import 30 Airbus A320 Aircraft in 2013 and 2014.
Founded in 2006, the Gurgaon-based low-cost Airline commands the largest market share of over 32 percent with over 530 daily Flights.

IndiGo is expected to come out with an initial public offering (IPO) next year.
Recently, the Competition Commission of India (CCI) approved the proposed merger of US-based Caelum Investment, which owns 47.88 percent in the Airline, with InterGlobe Aviation, the majority stake holder in the company.

The short-medium haul Flight operator is the only profit making Airline currently operating in the Indian skies. It reportedly made a profit of Rs.350 crore last financial year.

The success of the Airline is primarily attributed to its industry first moves like leasing Aircraft, tight control over costs, best slot timing of its Flights between the major cities.

The Airline's mega order can also be explAirned with the fact that Indian civil Aviation sector which has been growing at a compound rate of five percent in the last two years is expected to become the third largest by 2020.

According to the Commerce Ministry's India Brand Equity Foundation (IBEF), India's Aviation market is expected to become the third largest by 2020 and largest by 2030.

By the market size, the Indian civil Aviation industry is amongst the top 10 in the world with a size of around $16 billion.
In the April-May period of the current financial year, Aircraft movements and passengers have increased by five percent each over traffic handled during the corresponding period of FY14.

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