Air India comes up with new scheme at competitive rates

Air India on Wednesday announced the extension of its short term promotion scheme, Silver and Platinum Pass aimed at providing air travel at competitive and affordable rates.

The Silver and Platinum Pass being offered in two variants for unlimited travel in economy and executive class on the domestic sectors of the national carrier will now be valid for fifteen days, the airlines said.

Passengers buying the Silver Pass can fly on economy class to any domestic sector of their choice at a fare of Rs 35,000 any number of times during the 15-day period.

Passengers who purchase the Platinum Pass can enjoy unlimited trips in executive class to any domestic destination at a fare Rs 75,000. This fare is inclusive of taxes, Air India said.

The passes are available for sale at the offices of Air India Airline and its approved travel from September 21, 2011 and will be valid for travel up to January 15, 2012.

The day of commencement of the journey will be treated as the first day and fifteen days will be counted from the date of the commencement of the journey for determining travel validity, officials said.
Source: India Times (Air India Online Booking)

Indian carriers chart strategy for lean season

India’s domestic carriers, struggling with mounting losses amid a fare war unleashed by Air India Ltd, met in Mumbai on Monday to decide on a strategy to shore up revenue and widen margins in a move that’s being watched by the aviation ministry.

“They want to hike base fares,” said one of three airline officials with direct knowledge of the meeting and what was discussed. All of them declined to be identified because of the sensitivity of the matter.

The post-lunch meeting, which was called at short notice, was held at Mumbai’s Waterstones Club, close to the international airport.

Representatives from state-owned Air India and budget carrier IndiGo, run by InterGlobe General Aviation Pvt. Ltd, didn’t attend.

The Directorate General of Civil Aviation (DGCA), the industry regulator, said it would investigate any efforts at cartelization, but was not aware of any such activity.

“We are watching the price scene situation very closely. There is a fare-monitoring unit in DGCA,” said director general Bharat Bhushan, who has been leading a campaign to root out pilots who’ve got their jobs with the help of forged documents. “So far we haven’t seen fares change.”

Those who attended the meeting included Jet Airways​ (India) Ltd executive vice-president Anita Goyal, Kingfisher Airlines Ltd chief executive officer (CEO) Sanjay Aggarwal, SpiceJet Ltd CEO Neil Mills and GoAir CEO Giorgio De Roni.

SpiceJet’s Mills declined to offer any comment. Email and calls to the Jet Airways’ spokesperson remained unanswered.

Kingfisher’s Aggarwal and GoAir’s De Roni didn’t reply to emailed questions.

The meeting came at the start of the two-week period considered the leanest of the year with many Indians avoiding travel because of religious sentiments, according to one of the officials cited above.

“It’s going to put a lot of pressure on the October-December quarter,” this official said, following the losses posted by all three listed airlines in the April-June period, traditionally considered the second best by way of profitability.

Jet Airways, along with its subsidiary JetLite, made a loss of Rs.128.36 crore, Kingfisher Rs.263.54 crore and SpiceJet Rs.71.96 crore in the first quarter of this fiscal compared with profits for Jet and SpiceJet year-on-year (y-o-y).

The current quarter is expected to be worse and it won’t get much better for the full fiscal, said an analyst.

“Q2 (second quarter) is going to be a disaster,” said Kapil Kaul, South Asia CEO of Centre for Asia Pacific Aviation. “There is a negative sentiment about the airline industry. And Q2 would further increase the downward bias. All the stocks will be serious underperformers. In this year, everyone will lose.”
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AI Express flights tail dips during take-off at Kochi

KOCHI:An Air India Express flight bound for Abu Dhabi had to land back in Kochi after its tail dipped during take-off on Sunday night. The flight was carrying about 190 passengers including four infants, and the Air Traffic Control (ATC) had noticed the incident soon after the take- off.

The pilot was asked to immediately return, after jettisoning off portion of the fuel. It took about an hour and a half to finish the fuel jettisoning process and to landed back normally, an Air India spokesman told TOI here.

The passengers were then lodged in a nearby hotel and the aircraft was declared AOG (Aircraft On Ground) for carrying out the repairs.

"The Boeing design ensues that structure of the aircraft is not affected in the tail dipping incident, as the cartridges provided for this on the tail take the impact of dipping.

But those cartridges have to be replaced after such an incident. The repair work is over and the aircraft is back into commercial sorties. It flew to Mumbai this morning and will fly to Sharjah tonight after its return," the spokesman said.

The passengers were sent to Abu Dhabi today in a Jumbo flight which also carried the passengers stranded at the airport following the skidding off of the Gulf Air flight on Monday morning, he disclosed.

Some of the passengers on the flight however complained that the airline did not give any reason for the return of the flight after its take off, and were not giving adequate information on the rescheduled flight for a long hours on Monday.

The flight was carrying about 190 passenger's including four infants, and the Air Traffic Control had noticed the incident soon after the take- off.
Source: Times of India

Fly to Dubai, Bangkok for Rs 10,000; IndiGo, Spice Jet to launch low cost flights

MUMBAI: If your holidays have been only about Coorg and Jaisalmer so far, now's the time to apply for a passport. The low-cost revolution that drastically brought down airfares on the domestic sector a few years ago is now set to play out on routes to west Asia and south-east Asia. Leading the pack are IndiGo and Spice Jet.

IndiGo will launch flights to Dubai and Bangkok from Mumbai and Delhi in September and to Muscat and Singapore in October. Spice Jet, which currently flies to Colombo and Kathmandu, will be launching flights to other destinations like west Asia and south-east Asia later this year.

The only low-cost carrier which connects Mumbai to south-east Asia is AirAsia, with its flights to Kuala Lumpur. For west-bound flights, Air India Express and Air Arabia offer low-cost connections to west Asia from Mumbai. With attractive launch fares and great deals on offer, even those who had no intention of travelling to these destinations are biting the bait, says Vijay Kesavan, CEO of ticket-booking site akbartravelsonline.

"IndiGo's return tickets from Mumbai or Delhi to Muscat or Singapore, which were priced at Rs 10,000, have sold out," he says. The competition has lowered fares on the Mumbai-Muscat route - this week, the cheapest one-way air ticket for August 30 was Rs 6,900 (taxes included), offered by Oman Air. IndiGo's fares for October are in the range of Rs 6,400, which beats Air Arabia's Mumbai-Sharjah-Muscat fare of Rs 7,800. The October fare to Singapore on IndiGo is Rs 8,500.

Low-cost airlines like Spicejet, IndiGo and GoAir take price war to overseas routes

MUMBAI: Indian full service airlines, buffeted by high fuel costs and intense competition, face new headwinds on their lucrative international routes as budget carriers launch services with rock-bottom fares.

With low-cost carriers launching routes using narrow-body aircraft to overseas destinations within five hours flying time of India, full-service players are being forced to respond with similar no-frills offerings on popular and profitable routes.

Budget airline IndiGo, which in June firmed up a $16.2 billion order for 180 single-aisle Airbus aircraft, has received government approval to fly to Singapore, Bangkok, Dubai and Muscat, and is luring passengers with round-trip fares as low as 9,999 rupees ($220).

By comparison, full service carriers charge between 17,000 and 22,000 rupees for economy class Mumbai-Singapore routes booked a month in advance.

"The entry of IndiGo will help in growing the market. Low cost carriers are creating a new market with a new breed of customers who did not fly international earlier," said Kapil Kaul, chief executive for the Indian subcontinent and Middle East at the Centre for Asia Pacific Aviation (CAPA).

Under Indian aviation laws, an airline needs to locally operate for five years before being assigned overseas routes.

Indian low-cost operator SpiceJet , with just six international flights now among its 200 daily flights, plans to expand its overseas network and has applied for several international routes, CEO Neil Mills said.

"Low cost carriers are much better poised to take advantage of the growth, because India is a very price-sensitive market," Mills told Reuters.
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