Spicejet launches flights to Chennai, Hyderabad

Budget airline Spicejet has launched daily flights to Chennai and Hyderabad from here, as a part of its plans to connect 12 tier-II and -III cities across the country.
   
The services, which began on Thursday with the arrival of the first flight from Hyderabad, will be mostly operated by the airline's fleet of Q400 Nextgen Turbotrop aircraft, Spicejet CEO Neil Raymond Mills told reporters on Friday.
   
"Spicejet Airlines has been fast expanding its domestic footprint with Q400 Nexgen turbotrop aircraft from Bombardier. Its fleet addition aims at enhancing air connectivity to tier-II and III destinations including Aurangabad, Bhopal, Goa, Nagpur, Pune, Rajamundhry, Pune, Tirupati, Trivandrum and Vijayawada," he said.
   
The new services offer "affordable and competitive" rates to travellers, the airline official said.
   
The airline had placed orders for a total of 30 Q400 Nexgen which can accommodate 78 passengers and are widely accepted as an ideal short-haul flights.
   
Five aircraft have already been delivered and another two are expected by this month end.
   
The airlines had recently announced the addition of Tiruchirappalli as its 30th destination, he said.
Source: ZeeNews

SpiceJet mulls partnerships with non-Indian carriers

Indian low-cost carrier SpiceJet is exploring the possibility of partnering other low-fare and full-service carriers.

This could help it to increase its footprint in west Asia, southeast Asia and the Commonwealth of Independent States (CIS), said a spokeswoman.

However, she declined to provide details on the airlines SpiceJet is negotiating with.

"SpiceJet will likely start with interlining agreements," she said, adding that this will allow both SpiceJet and its partners to feed into each others' network.

This comes as SpiceJet works to expand its domestic network as it receives more Boeing 737s and Bombardier Q400 turboprops.

The company is looking for a second base for its Q400s in addition to Hyderabad's Rajiv Gandhi International Airport. The turboprops will serve Tier II and Tier III destinations, while the main 737 fleet is based in Hyderabad, Bangalore's Bengaluru International Airport, Mumbai's Chhatrapati Shivaji International Airport and Chennai International Airport.

The carrier has 25 Boeing 737-800s and five Boeing 737-900ERs in service.
Source: Flight Global

SpiceJet to begin Tier-2 and 3 regional service soon

MUMBAI: Private air-carrier SpiceJet Airlines will begin regional operations from Tier-2 and 3 cities like Vijayawada, Tirupati, Mysore, Mangalore, Madurai, Nagpur and Indore from mid-July using the Bombardier Q400 Next Gen turboprop aircraft, a top company official said.

"We have selected Hyderabad Airport as the first base for our operations. We will be flying from Hyderabad to Tier-2 and Tier-3 cities in South and Central India," Spicejet Chief Commercial Officer Samyukth Sridharan told PTI here.

Deliveries of the Q400 aircraft start in the last week of this month, he said.

"We expect the first aircraft to enter into service and become operational by mid-July. The delivery of the first 15 Bombardier Q400 aircraft starts this month-end and will be completed by June, 2012 - over a period of 13 months. The order also has an option to purchase 15 additional aircraft. If this option is exercised by SpiceJet, there would be 15 more deliveries over a period of 24-months," Sridharan said.

The Bombardier Q400 NextGen turboprop aircraft, which can seat 78 passengers, was chosen for SpiceJet's regional operations because it is designed for short-haul routes and has a reputation of being fast, quiet and fuel-efficient.

The aircraft has a unique ANVS (Active Noise and Vibration Suppression) system which renders noise and vibration levels to minimal levels. It also delivers the lowest operating costs per seat in the industry, with a 30 per cent to 50 per cent advantage over other aircraft on short-haul routes, he said.
Source: Economic Times

SpiceJet plane suffered bird hit: officials

JAIPUR: A day after a SpiceJet flight from Jaipur to Ahmedabad produced an emergency landing as a result of a snag in 1 of its engines, senior airport officials and also the airline's ground staff concerned have said the aircraft suffered a bird hit.

Following the incident, the Airport Authority of India, Jaipur, has intensified measures to scare the birds away even as the Directorate General of Civil Aviation (DGCA) has yet to ascertain the lead to of the engine problem.

As part of the measures, AAI has elevated the frequency of firing guns to produce bubbles of LPG gas during the air to scare away the birds besides inspecting the runway by a team during the air targeted traffic manage just before each plane lands or takes off.

Airlines stocks lose altitude as crude oil spikes

Spicejet Airlines, Kingfisher Airlines and Jet Airways are down on worries that surging crude oil prices will hit their operating as well as financial performance.

Shares of Spicejet is currently trading at Rs37, down Rs2 or 5%.The stock has hit a high of Rs. 38 and a low of Rs. 37.

Kingfisher shares is currently trading at Rs. 38, down Rs1.40 or 3%. The stock has hit a high of Rs. 39 and a low of Rs. 37.

Shares of Jet Airways is currently trading at Rs. 424, down Rs17.75 or 4%. The stock has hit a high of Rs. 432 and a low of Rs. 421.
Source: indiainfoline

Ajay Singh looking to do a SpiceJet with MDLR

Right after exiting the board of low-cost airline SpiceJet last year, Ajay Singh has initiated the system of investing in another carrier — the beleaguered MDLR Airlines — hoping to breathe new life into it.

New Delhi-based MDLR, a regional carrier, stopped operations in November 2009 after defaulting on lease payments to BAe for its Avro RJ70 aircraft.

According to a source during the know, Singh, who had promoted SpiceJet along with London-based NRI Bhupendra Kansagra, has sought the Ministry of Civil Aviation’s permission to select up around 23% stake in MDLR.

“He (Singh) has employed towards Ministry of Civil Aviation to purchase stake in MDLR Airlines to revive its operations. The software program is becoming processed and the ministry has sought clarifications over a source on the fund,” mentioned the source.

The source, who spoke on condition of anonymity, did not disclose the price at which Singh was buying the stake.

MDLR, which began operations in March 2007, was founded by Gopal Goyal Kanda, a politician from Haryana, and is wholly owned by Murli Dhar Lakh Ram (MDLR) Group.

The company’s schedule airline operating allow has turn out to be defunct as all of the aircraft in its fleet have been deregistered by the Directorate General of Civil Aviation (DGCA) for over a year now. However, its airline operating allow is nonetheless valid.

Singh could not be reached over a phone for your response plus a text message sent to him remained unanswered.

A senior executive with another airline, who did not desire to be named, mentioned even if Singh succeeds in owning stake in MDLR, he will have to begin operations from scratch.

“He will have to get brand new aircraft, set up new engineering and maintenance facility and begin all over again. It will be like setting up a brand new airline, except for applying for the airline operating permit,” he said.

Despite stepping down during the SpiceJet board in August last year, Singh continues to keep around 5% stake during the budget airline even after media baron Kalanithi Maran bought over a majority stake of 37.7% in Spicejet.

Singh, and also the Kansagra family, had re-launched the bankrupt Modiluft Airlines in 2005 after taking it over from industrialist SK Modi, who operated the airline in partnership with Lufthansa in mid-90s.

SpiceJet fought a lengthy legal battle with Modi to settle a dispute over 11.5 million shares on the airline, which the Modiluft promoter claimed have been nonetheless owned by him.

Modiluft was reincarnated as SpiceJet, and is these days the second-largest budget airline after IndiGo, having a marketplace share of 12.9%.

Source: DNA India

Airlines to Hire 5,000 as Aviation Boom Returns

MUMBAI | NEW DELHI: Indian carriers will hire at least 5,000 professionals across categories this year — pilots, cabin crew and airport ground staff — buoyed by the recent boom during the aviation sector which saw high attrition and retrenchment following the onset of the downturn in 2008.

“Airlines had pulled out at least 20% ability during the industry during the downturn. That ability was restored last year and we see airlines adding another 20% ability this year and would be hiring 4,500-5,000 individuals this year,” said Kapil Kaul, CEO of aviation consultancy company Centre for Asia Pacific Aviation, South Asia.

The Indian aviation sector will grow by 18-20% this year, said aviation industry experts. Among airlines, national carrier Air India Airlines and low-cost airlines IndiGo and SpiceJet will add more than 1,000 this year. “Our flights will go up to 350 flights per day from 221 currently. We are during the technique of hiring 200 pilots, 400-500 cabin crew and as many airport ground staff this year at IndiGo,” said Aditya Ghosh, president, IndiGo.

Demand for pilots is rising because of the dearth of professionals. Airlines are chasing expats as the aviation regulator has allowed foreign nationals being employed as pilots till December 13, 2013.

“The fact these days is that all airlines in India are asking for foreign pilots and no single agency can supply those people many numbers. Airlines in India have asked all agencies that these pilots needs to be recruited on an urgent basis,” said somebody directly involved with hiring of expats, requesting anonymity.

In all, airlines are looking for about 230 commanders on an immediate basis , based on recruitment agencies. “We are searching to hire 500-600 pilots to meet the demand,” Jet’s chairman Naresh Goyal had said recently. Jet, which seems to add 49 aircraft, need 100 commanders alone to meet its international expansion plans. Jet Airways , during the downturn, had fired 1,800 flight attendants only to re-hire them following protests and political intervention. It also slashed salaries by up to 25% at greater levels.

GoAir, which plans to add 20 aircraft by 2014, will hire 250 individuals this year with 100 every for cabin crew and ground staff and 50 pilots. The only airline that doesn't look being on an expanding spree stands out as the Vijay Mallya-promoted Kingfisher Airlines . The airline pulled ability by 22% during the downturn, losing pilots to competitive airlines.

Aviation experts, however, feel that the modern-day hiring spree usually do not translate into greater salaries because of inflation and other costs. “Salaries will only go up by 15-20% on an average,” said an expert.

The staffing agencies are conservative in their demand projections. “2010 was a recovery year, which saw world-wide-web addition of 1,500 people, but 2011 is a boom year and we’ll see world-wide-web addition of 3,000 individuals or more,” said Kamal Karanth, MD, Kelly Services India, a global staffing company. Out of these 3,000, two-thirds are going to be cabin crew as well as the sleep are going to be a mix of engineers and pilots. More than the following 5 years, the growth in hiring are going to be among 100% and 200%.”

Source: India Times

Airlines set to take off after turbulence

The year 2010 was each a year that saw a silver lining in addition to dark clouds within the aviation industry. Except Air India, which continues to face difficult times, other airlines started a steady march on the recovery right after the slowdown many years of 2008 and 2009.

What ought to be a huge relief on the Indian aviation authorities could be the fact how the US did not downgrade the Indian safety regulator, Directorate General of Civil Aviation, to sub-Saharan Africa levels. The final nod for the second airport in Mumbai right after a delay of three many years and the opening of new T3 terminal in New Delhi were a large plus for travellers.

But just as very good news was flowing in thick and fast right after 2 many years of gloom, the worst fears of aviation came real with India witnessing 1 of its worst ever air crashes on May possibly 22. Air India Express's flight 812 crashed at Mangalore airport, killing 158 from the 166 men and women on board.

The crash, coming amid fears which started within the troubled 2008-09 that some crises-ridden airlines may perhaps not have even adequate income to maintain their fleet airworthy, led to intense financial surveillance from the carriers. The scrutiny once more revealed that except Air India, most other critical airlines' fortunes were showing changes—thanks to a double-digit growth in domestic air travel.

This is borne by the fact that 2009 saw 445.1 lakh men and women flying inside India. But the January-November 2010 period itself saw that figure getting left behind with 468 lakh men and women flying in India. Considering about 50 lakh men and women fly in December, 2010 may perhaps witness a 16% rise more than 2009. "This growth is likely to be even more pronounced, next year, from the economy searching up. So the large upside for the year 2011 is that most airlines, barring —of course—Air India, could come to be profitable again. But simultaneously the large worry is rising oil prices with crude touching $90 a barrel. This may perhaps force fare hikes and affect air travel growth," mentioned a senior ministry official.

That worry apart, financially airlines are searching to fly to the black. Financially-strained Kingfisher got approval to restructure its mounting debts. The country's second largest low-cost carrier (LCC), SpiceJet, was finally bought more than by a south-based group with deep pockets, signalling the end of income crunch, and it, subsequently, also began overseas flights. Similarly, the largest LCC, IndiGo, is all set to launch an IPO and start international flights next year. In fact, the aviation market came a full circle this year. The sacking of 450-odd Jet Airways cabin crew staffers had signalled the beginning from the global meltdown-induced crisis for Indian airlines in 2008. This year, Jet contacted all its sacked staffers and about half of them have joined back within the past few months.

Good Airline Service at Affordable Fares

The airlines has set its typical high and tries difficult to compete with AC coaches of Indian Railways which speaks significantly for the affordable and economical cost of its Flight tickets. As well as the most remarkable factor is that SpiceJet has been awarded with World travel industry Award 2009. Moreover, Skytrax, in the year 2007, voted it as essentially the most low-cost airline in South Asia and central Asia region.

There is 2 aircrafts selected by this airline for fleet in order to have the greater accuracy ion maintenance and offer low fare for the passenger. The 2 aircrafts are Boeing 737-800 with 189 seats and Boeing 737-900ER with 212 seats. The aircrafts provides you a safe, simple and enjoyable journey.

SpiceJet Airlines covers numerous destinations across India touching numerous cities just like Ahmedabad, Bangalore, Chennai, Delhi, Goa, Hyderabad, Jammu, Kolkata, Mumbai, Pune and Srinagar. They offer cheap air tickets for numerous well-known destinations just like Kolkata-Delhi-Kolkata, New Delhi-Goa-New Delhi, Mumbai-Ahmedabad-Mumbai, New Delhi-Hyderabad-New Delhi, Bangalore-Hyderabad-Bangalore, Mumbai-Bangalore-Mumbai, New Delhi-Mumbai-New Delhi, Bangalore-Kolkata-Bangalore, Mumbai-Chennai-Mumbai, New Delhi-Chennai-New Delhi and Mumbai-Delhi-Mumbai.

SpiceJet offer various choices for each a corporation trip including a pleasure trip. They get all of the maintenance aid by KLM and assure you for safe and dependable flights. All of their staffs are well trained and experienced to offer essentially the most feasible service and ensure the maximum comfort for the travelers.

SpiceJet assures you for your great service in the most affordable price. Its main functionality is to offer essentially the most of services inside your budget. They assist you to save lots of dollars that you can invest on some extra shopping or foods although your journey. You are should enjoy the journey should you know you happen to be owning essentially the most deal and that as well without the need of compromising of the standards of services. There are numerous on the net travel services to assist you to of the ticket registration for Spicejet flights. So why delay, go ahead and book your ticket to your most versatile journey of your life.

SpiceJet Q2 net profit at Rs 10.11 cr

SpiceJet has declared its second quarter results. The company’s Q2 net profit was at Rs 10.11 crore versus loss of Rs 101 crore, year-on-year, YoY.

Its income from operations was up at Rs 603 crore versus Rs 449 crore, YoY.

The company's trailing 12-month (TTM) EPS was at Rs 2.75 per share. (Jun, 2010). The stock's price-to-earnings (P/E) ratio was 32.05.

The latest book value of the company is Rs -7.99 per share. At current value, the price-to-book value of the company was -11.03.
Source: India Earnings

Maran launches SpiceJet open offer

Delhi-based low-cost carrier SpiceJet’s new promoters SunTV chief Kalanithi Maran and his business KAL Airways has launched an open supply to acquire an additional 20% stake from the low-cost carrier on October 18. The supply will open on October 18 and close on November 6, said a filing over a Bombay Stock Exchange dated October 13.

In June, the Chennai-based industrialist had clinched a deal to acquire a 37.7% stake from the low-cost carrier for Rs 739.57 crore from American investor Wilbur Ross, his investment organizations as well as the Kansagara family-promoted Royal Holding Services.

Recently, Maran elevated his stake from the budget airline to 25.12% by obtaining 7.42% much more stake via off-market transactions. Shareholders are going to be accessible Rs 57.76 for every share they retain in SpiceJet, translating into a 3% premium more than the closing cost of Rs 56.05 on June 11, 2010. This would involve an outgo of close to Rs 480 crore, taking the overall deal size to Rs 1,220 crore as Maran and his company KAL Airways had clinched the deal to pick up a 37.73% stake in SpiceJet at Rs 47.25 apiece.
Source: Financial Express

Maran buys 7.4% in SpiceJet

NEW DELHI: Sun TV owner Kalanithi Maran has bought 7.4% equity in SpiceJet for Rs 135 crore, taking his direct stake to 25%. SpiceJet informed off-market transaction in a filing to BSE. This is part of the deal happened in earlier this year, when Maran had decided to buy US distress fund owner Wilbur Ross and airline promoter Bhulo Kansagara's combined 37.7% stake.

After raising his stake to 17.7% last week, Maran and his aviation arm KAL Airways has now bought about 2.9 crore shares for Rs 47.25 apiece. He has an option to acquire another 20% stake through an open offer. Following the acquisition by Maran, SpiceJet's CEO Sanjay Agarwal quit the airline and joined Kingfisher. SpiceJet appointed Neil Raymond Mills as its CEO. Mills was recently part of thestartupteamofFlyDubai , a low cost associate of Emirates. Before that, he was part of EasyJet.

There is a growing speculation that Maran may be eying Wadia Group-owned GoAir. At present, SpiceJet is India's second largest LCC with a 12.6% market share, behind IndiGo at 16.4%. GoAir had a share of 5.7%. So acquiring GoAir will make SpiceJet the biggest LCC in the country.

Source : Times of India

SpiceJet takes off as Kalanithi Maran hikes stake to 17.7%

SpiceJet rose 2.65% at Rs 79.30 at 9:11 IST on BSE after Sun TV promoter Kalanithi Maran and his unlisted aviation firm Kal Airways acquired 1.93 crore shares, or 5.03% equity in the firm as part of the deal to acquire 37.7% stake in the firm.

Meanwhile, the BSE Sensex was down 5.10 points, or 0.02%, to 20,537.98.

On BSE, 4.45 lakh shares were traded in the counter as against an average daily volume of 41.33 lakh shares in the past one quarter.

The stock hit a high of Rs 80.25 and a low of Rs 77.70 so far during the day. The stock had hit a 52-week high of Rs 81 on 13 September 2010 and a 52-week low of Rs 32.40 on 28 October 2009.

The stock had underperformed the market over the past one month till 5 October 2010, gaining 6.61% compared with the Sensex's 12% jump. It outperformed the market in past one quarter, gaining 41.11% as against 17.01% rise in the Sensex.

The mid-cap low-cost air carrier has an equity capital of Rs 385.22 crore. Face value per share is Rs 10.

The shares were acquired on 5 October 2010 through an off-market transaction. Maran's direct holding in SpiceJet now stands at 17.72%. In June 2010, Maran and Kal Airways had agreed to buy 37.7% in the carrier from US investor Wilbur Ross and Royal Holdings Services, held by the Kansagra family, for Rs 739 crore at Rs 47.25 a share.

SpiceJet's net profit soared 109.6% to Rs 55.22 crore on 34.9% rise in net sales to Rs 707.86 crore in Q1 June 2010 over Q1 June 2009.

Source

SpiceJet to make good revenues in holiday season

On an average, airlines companies stock have given more than 30% returns in the past two months. Compared to Jet Airways and Kingfisher Airlines, SpiceJet is the least indebted and most profitable one in recent quarters. Due to its low-cost carrier business, the company has been able to cash in on the increasing passenger growth and slight softening of crude oil prices.

In the quarter ended June 2010, the company’s net had an extraordinary jump of more than 100% to `55 crore. In the past six months, there has been a 22% growth in passenger traffic. The buoyancy is expected to continue in the remaining quarters of FY11 given the impending holiday seasons in the third and fourth quarter.

GROWTH PLAN: The company will begin its international operations from this month. The company would retain its focus of a low-cost carrier model and concentrate on South Asia. The company would start its first international flight from Delhi to Kathmandu (base ticket price `1499) on October 7, followed by flights from Chennai to Colombo (base ticket price `999) on October 9. For this expansion, the company will add 30 Boeing 737-800 to its current fleet size by 2014.

At present, the company operates 21 aircraft and it will add 30 aircraft to its fleet size by 2014. The company would have to invest around `12600 crore for the expansion. In the current fiscal, the company would add seven aircraft. This would stretch the company’s balance sheet to a large extent considering the fact that it is the least indebted airlines company. At present, Jet Airways India has a debt of around `13,000 crore, while Kingfisher Airlines and SpiceJet have debt of `5765 crore (as of FY09) and `438 crore (as of FY09), respectively.

Various reports suggest that since Sun TV’s chief Kalanidhi Maran is perceived to be at the helm of the company after acquiring a 37.7% stake through his firm Kal Airways, funds may come from Sun TV Network. At present, Sun TV Network has a cash of around `424.2 crore on its balance sheet. Hence, a part of these funds may come in handy for SpiceJet’s expansion.

More so, the company has internal reserves of around `587 crore. This would also help the airline not overstretch its balance sheet and at the same time carry on its expansion plans. On the other hand, the company may also resort to qualified institutional placement (QIP) for raising funds to foster its growth. In the past few quarters, SpiceJet has reported a load factor (a measure of capacity utilisation) of more 80% and hence going forward with the holiday season, the possibility of increased revenues is higher for the company.

More so, with its new international operations, it would be able to cash in on the holiday season.

Source: The Economic Times

SpiceJet Expands Domestic Network; adds Madurai

MADURAI: Low cost carrier SpiceJet on Monday expanded its domestic network by adding Madurai as its 20th destination and announced a fleet expansion programme over the coming years to meet the growing domestic demand.

The first flight with over 150 passengers from Chennai landed here this morning as the 'cultural capital' was included in the list of one of the major low-cost airliners in India.

The airliner will now operate services between Madurai and Chennai, connecting onwards to Delhi and Mumbai.

Company Director and CEO Kishore Gupta told reporters here that the airliner had placed orders for 30 new aircraft with Boeing starting delivery in 2014 as part of an "aggressive growth plan".

"We hope Madurai's good fortune will give us the launch that we want," he said.

Already having presence in three cities--Chennai, Coimbatore and Madurai--in the state, SpiceJet was mulling adding one more city but that was yet to be finalised, he said.

Two flights will connect Chennai-Madurai daily and it will be connected to Mumbai and Delhi via Chennai.

International operations (Delhi-Kathmandu and Chennai- Colombo) were scheduled to start from October 7 and 9, respectively.

These sectors would be relatively easier in achieving break-even and expansions would be in place after consolidating the company's presence in this route, he said.

Chief Commercial Officer Samyukth Sridharan said the airliner currently operates 22 flights and said another seven flights would be added over the next 14 months.

As part of the expansion plans, SpiceJet Airlines would mull connecting cities such as Lucknow, Thiruvanathapuram and Indore, which were not on its destinations right now.

He said the airliner intended to increase its passenger strength from 65 lakh last year to 85 lakh this year.

He said that today's launch was a result of passengers' demand for connectivity to Mumbai and Delhi.

To a question on the Foreign Currency Convertible Bonds (FCCBs), Gupta expressed hope that it will be completed by the year-end, subsequent to which south Indian business magnate Kalanidhi Maran's stake in the company will go upto 37 per cent.

Source: The Economic Times

Kingfisher Trying to Rope in Former SpiceJet Official

MUMBAI: Vijay Mallya-owned private air-carrier, Kingfisher Airlines is in talks with a top former executive of the budget airline, SpiceJet to take him onboard and a final decision on the issue is expected shotly, sources said.

"The former Chief Executive Officer of SpiceJet Airlines, Sanjay Aggarwal, and Kingfisher Airlines' Chairman, Vijay Mallya are in touch for quite some time. A meeting between the two is slated for later this week," industry sources familiar with the development said here on Wednesday.

If the talks fructify, Aggarwal may be appointed for a top job in Kingfisher as early as October, they said.

Aggarwal, who is credited with flying SpiceJet into profit in FY 10, the first time since its inception in 2005, quit the job in July after Chennai-based media baron, Kalanithi Maran bought 37.7 per cent stake with a 20 per cent open offer, following the US investor deciding to offoad his stake.

If Aggarwal comes onboard, his immediate task would be to turnaround the debt-ridden, loss-making airline, sources said.

Aviation industry research and analysis provider, Centre for Asia Pacific Aviation (CAPA) in its mid-year review of the domestic airlines in July this year had stressed on the need of CEO and COO in the airline.

"In order to ensure that the airline (Kingfisher) pursues a disciplined turnaround, a new organisation structure needs to be established with the induction of a CEO and COO," the report had said.

As on March 31, 2010, Kingfisher Airlines' debt stood at Rs 6,000-crore, the largest for any domestic private air carrier. Besides, the company posted a loss of Rs 1647-crore in FY 10.

Even in the first quarter of the current fiscal, airline posted a loss of Rs 187-crore.

Source: The Economic Times

Now, Airlines Pay up for Hassling Fliers

NEW DELHI/MUMBAI: Following a DGCA directive, airlines have for the first time compiled figures for the number of passengers affected by delays, cancellations and denial of boarding passes despite arriving at the airport on time: A staggering 46,228 flyers in August alone.

And this isn't even a comprehensive list, for Air India and Jet, two of the largest domestic carriers, are yet to comply fully with the directive.

As a result of the findings, in a first, 13 of the 71 passengers who were wrongly denied boarding passes were compensated in the range of Rs 3,000 and Rs 5,000, apart from a full refund.

The airlines, including Kingfisher, SpiceJet, IndiGo and Go Air, faced delays of over two hours in August. While the four airlines have a combined market share of 54.7%, Jet-JetLite and AI (domestic) that enjoy the remaining 45.3% domestic slice have not said how many of their flyers faced delays of over two hours.

Industry sources say these numbers could have crossed a lakh had the two majors, Air India and Jet, complied. Jet, like other airlines (except AI), admits to providing meals and refreshment to passengers inconvenienced by delays. Some said they put delayed passengers on other flights.

Similarly, 5,178 domestic passengers who were supposed to be airborne in August were left stranded by sudden cancellations. Kingfisher, SpiceJet and Go account for this collective figure. Interestingly, Jet and JetLite have told the aviation ministry that none of their passengers were affected by cancellations.

This despite the fact that DGCA figures show the overall industry flight cancellation rate was 3.1% last month. But JetLite and Jet topped this list with 10.5% and 6.6%, respectively, of their flights being cancelled. DGCA is going to seek an explanation from Jet on this.

And, finally, of all domestic airlines, only Kingfisher admitted to having denied boarding to 71 passengers. AI did not give any figure. Denial of boarding occurs when airlines overbook to make up for last-minute no shows. Kingfisher told the government that 13 such passengers were refunded and compensated while the rest 58 were accommodated on other flights.

Source : The Economic Times

SpiceJet's $2.7-b fleet expansion cleared for take off

Delhi based low-cost airline SpiceJet has been given in-principle approval by a Government committee to import 30 Boeing 737-800 aircraft. In July, the airline had signed an agreement with Boeing to purchase the 30 aircraft at an estimated value of $2.7 billion.

The airline's proposal for import of aircraft was among the several cleared by the Empowered Committee of the Ministry of Civil Aviation that gives airline operators permission to import aircraft. The Committee also cleared a proposal of IndiGo Airlines to import 14 A-320 aircraft during calendar year 2011-12. JetLite too has been allowed to import two Boeing 737-800 aircraft in November.

SpiceJet, which currently has 21 Boeing 737 aircraft, plans to induct 30 Boeing 737s over four years beginning 2014. The aircraft acquisition deal was announced shortly after the Sun TV chief, Mr Kalanithi Maran, acquired a 37.5 per cent stake in June.

“We expect domestic demand to grow at 16 per cent during the current year and to sustain a 12-14 per cent annual growth going forward in the medium term. This growth will necessitate significant capacity induction and the fresh order will ensure that the airline will remain in the growth story in the Indian skies,” the airline Director, Mr Kishore Gupta, had told newspersons after the deal for acquiring 30 aircraft was signed.

The low-cost airline reported a profit after tax of Rs 55.22 crore for the quarter ended June, 2010, compared with a profit of Rs 26.34 crore for the same quarter the previous year.

SpiceJet, which carried 54.46 lakh passengers during calendar 2009, has flown 37.25 lakh passengers during the first seven months of the current year.

The airline, which meets the Government requirements of having completed five years of domestic operations and having a fleet of 20 aircraft for starting international flights, has been permitted to start international operations. It plans to launch regular services to Dhaka, Male and Kathmandu. It also plans to expand its domestic network, officials had indicated in July.

Source: The Hindu Business Line