Neha Jain: Kingfisher Airlines

Showing posts with label Kingfisher Airlines. Show all posts

Wednesday, March 30, 2011

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1. The pigsty that is civil aviation in India (Part II)

The next time you take a flight, demand photocopies of licences, insurances, minimum equipment list and airworthiness documents to satisfy yourself that it’s safe to fly. Else, just walk off the aircraft. It’s the only weapon air travelers have to make a reasoned argument about deficiencies in airlines. And we have a responsibility to try and clean this mess

It is not amazing anymore what a weekend with some cricket can do to divert attention from real issues in India. Be it corruption scams, energy crisis, water shortage, or the latest on pilots with fake licences generated through methods used by much-maligned auto-rickshaw drivers. Actually, at least the
auto-rickshaw drivers are often honest about things, and now and then seem to also be part of attempts to improve or fix the system-as many of us would have observed by the slogans and couplets painted on their vehicles.

Have we ever seen any such attempts on airplanes? No way. Fancy in-flight magazines aside, nothing. The idea is-don't make noise. Mainstream media will not make a noise-airlines are among their largest advertisers, and besides, all those free seats and upgrades mean a lot too. Airline employee unions will not make noise-too many of their friends and family members want to be pilots, I guess,by any means possible. Airlines themselves will not make a noise-the idea is to simply remain technically "airworthy" and the insurance companies will look after the rest, and as for reputation, a new colour scheme as well as "re-branding" is good for everybody if an incident should occur.

And aircraft manufacturers, will they make a noise about their planes being flown by auto-rickshaw driver incarnates? No way! They have to-right you are-sell more planes. As simple as that. That the airline manufacturers, Boeing and Airbus, have been concerned about the issue of fake and even sub-standard pilots in and around India, has been open knowledge for some time now.

So now, time for airlines, manufacturers and their employees to go in for "noise abatement procedures", a process which we know airlines are good at. Meanwhile, a few junior to mid-level officials of the Directorate General of Civil Aviation (DGCA) will apparently carry the can; some more sacrifices shall be made to the Gods of Lucre, and life will go on. The International Civil Aviation Organisation (ICAO) will be prevailed upon not to place India on their blacklist (again), as India packs a punch there, and the "flying schools" will re-invent themselves.

And the head of the DGCA has the nerve to call this an "aberration". That's really, really, rich. Noisily rich.

The "noise" in Delhi this weekend has been all about the Mohali cricket match. And the attention has all been towards a summit on "luxury", which for those who go deeper into these things, is a desperate attempt by the purveyors of expensive beads and baubles to try and desperately recover from the sudden drop in sales in Japan and China-one due to the tsunami and the other due to a change in spending patterns. Cricket is cricket, in India, so that's something else. But on "luxury", an 80% discount at the Hugo Boss showroom close to where I live says it all-luxury is aspirational in India, but we want it at 80% discount.

On the other hand, the "non-noise" silence and ostrich-head-in-the-sand approach being taken by pilots as well as airlines in India, is not only deafening, it is positively criminal. Commercial pilots and their multiple associations and unions, who have in the past not hesitated from going in for labour action for minor and silly reasons and manipulated the media brilliantly, have simply not even bothered to comment or come before the media so far. Barring a few sad looking young pilots, bleating plaintively as they are escorted away to spend quality time with pickpockets and whores, complaining that they spent so much money and now deserve sympathy-nothing.

2. InterGlobe launches range of supercars and bikes
InterGlobe General Aviation has launched a wide array of super-luxury transportation portfolio in India on the back of increasing demand for luxury products. The company estimates $14.72 billion worth of luxury products coming into India by 2015 compared with $4.6 billion in 2009.

The range to be sold under a new brand named 'The Estd' spans across products such as light jet planes, supercars, custom-built motorcycles and luxury yachts. We've put together a collection of the products launched by the company for you to enjoy along with the technical and pricing details.

3. Oil firms push Air India for roadmap on repayment of past dues

NEW DELHI: State-run oil firms have demanded that cash-strapped Air India set up a roadmap to clear over Rs 2,400 crore in past fuel bills and make upfront payment for all future purchases of aviation turbine fuel (ATF).

Air India has defaulted on payment of about Rs 2,000 crore in jet fuel bills since last year and the total outstanding now amounts to over Rs 2,400 crore after including Rs 400 crore in interest, industry officials said.

"Indian Oil, Hindustan Petroleum and Bharat Petroleum already incur huge losses on selling petrol, diesel, domestic LPG and kerosene way below their production cost and to expect them to sell ATF at subsidised rates is not acceptable," an official said.

Oil firms have put Air India on cash-and-carry since December. Air India buys jet fuel worth Rs 18.5 crore per day from the three state oil firms, but it pays only Rs 13.5 crore.

This led the oil firms to threaten to stop supplies of ATF beyond what Air India pays for.

At a meeting called by Cabinet Secretary K M Chandrasekhar last week to resolve the payment impasse, Air India sought discounts similar to the ones given to private airlines.

Oil companies give a Rs 1,600-1,800 per kilolitre discount to private airlines on promise of assured payment. After adding finance charges for a 90-day credit period, the discount comes to Rs 3,600 per kl.

"Even if this discount is stretched to Rs 5,000 per kl, the Rs 18.5 crore per day fuel bill will not become Rs 13.5 crore. After including some more concessions, the fuel bill at best will come down to Rs 17 crore a day, a far-cry from the Rs 13.5 crore paying capacity of Air India," he said.

Officials said Air India was discussing only the payments for future ATF purchases and there was no word on how the state carrier will clear the past outstanding.

"Air India talks of getting the same discounts as private airlines, but does it know that ATF purchases by airlines such as Jet Airways and Kingfisher Airlines are covered by a bank guarantee?", an official asked.

Both Jet Airways and Kingfisher have brought down their outstanding to manageable levels and have provided bank guarantees to cover against any default.

IOC, HPCL and BPCL sell petrol, which the government had freed from its control in June last year, at a discount of about Rs 4.50 a litre to its imported cost. In addition, they sell diesel at a loss of Rs 15.79 a litre or Rs 283 crore per day.

Furthermore, the three retailers are losing Rs 24.74 per litre of kerosene and Rs 297.80 per 14.2-kg LPG cylinder.

The three firms are losing a cumulative Rs 432 crore in revenue every day on selling diesel, domestic LPG and kerosene below cost, officials said, adding that for the full fiscal, the three are projected to lose Rs 78,061 crore in revenues.

4. DGCA mulls online pilot registry

NEW DELHI: The government is planning to create an online national registry of pilots with a complete dossier on each one, in a bid to check pilots getting licences and jobs on the basis of fudged papers and endangering air safety. The director general of civil aviation, Bharat Bhushan, will be examining the feasibility of this project in association with an agency like Nasscom.

The plan is to put all the documents of every pilot on an online registry from the moment he or she applies for a licence, which can be accessed by airlines at the time of hiring pilots, said an official.

The biggest problem, so far, has been in getting report cards from DGCA's examination branch at R K Puram. These, then, have to be submitted at the head office licences. Shockingly, recent cases revealed that pilots were able to submit fudged papers here and get licences without any cross-checking. Once the original results and all other relevant papers are put online, this problem could be addressed to a large extent and also reduce human interface that can lead to malpractices.

Owing to the massive staff crunch at the directorate, especially when it has to undertake checks on 40 flying schools and almost an equal number of aircraft-maintenance engineering institutes, the two men spearheading the clean-up job, aviation secretary Nasim Zaidi and Bhushan, have decided to take personnel from Airports Authority of India and Pawan Hans to complete this job in next two to three months.

NEHA JAIN

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Monday, March 28, 2011

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1. Jet Air’s on-time performance soars to 89% in Feb

Jet Airways, Jetlite and GoAir were the only three domestic airlines that reported a month-on-month increase in seat factor (number of seats occupied against number of seats available) this February.

All other domestic airlines saw a marginal decline with overall domestic seat factor also declining owing to end of peak travel season.

As per data released by the Directorate General of Civil Aviation (DGCA), Jet’s seat factor was up to 76.5% (73.9%), JetLite’s to 80.2% (74.6%) and GoAir’s to 87.1% (83.3%) during the month.

The biggest decline, almost by 3 percentage points, was seen in Kingfisher’s seat factor at 83.6% (86.5%), followed by Air India at 68% (69.3%), SpiceJet at 81% (82.6%) and IndiGo at 87.6% (88.6%).

In terms of market share though, Kingfisher continued to rule the domestic skies, despite IndiGo snapping at its heels. While Vijay Mallya’s Kingfisher network carried almost one in five domestic passengers, with 19% market share in February, low fare IndiGo was not far behind at 18.7%. Jet Airways was also close behind IndiGo with 18% share of the market and Air India (domestic) was at the fourth place with 15.8% share. SpiceJet was a distant fifth at 13.8%, followed by Jetlite at 8.1% and then Go Air at 6.6%.

In a statement on Wednesday, though, Jet claimed market leadership when taken together with low fare subsidiary JetLite. “Jet Airways, together with JetLite, successfully retained its leadership position in the Indian Aviation sector with a dominant market share of 26.1%....Jet Airways carried 3.81 lakh international revenue paying passengers in the month of February 2011 with an overall seat factor of 81.1%. The airline also carried 8.24 lakh domestic revenue paying passengers with a seat factor of 76.5%,” the statement said.

But Jet’s passenger complaint record wasn’t so rosy, with the airline facing maximum complaints per 10,000 passengers at 4.1.

Though the number in itself is quite small, it compares poorly with Air India Domestic’s 1.1, which was surprisingly the topper in this category. Kingfisher saw 1.7 complaints, JetLite 2.1, GoAir 2.2, SpiceJet 2.8 and IndiGo 3.1.

In the on-time performance (OTP) area, Jet again topped with 9 out of 10 flights taking off on time. Jet’s OTP was the highest at 89.2%, followed by 88.7% for Kingfisher and 86.8% for IndiGo. The worst was SpiceJet, with almost one in four flights not operating on time and an OTP of just 73.9%. Air India domestic also had a similar record with 25% flights getting delayed and OTP of just 75.8%. One in five JetLite flights also could not fly on time at 80.6% OTP. GoAir’s OTP was bettter at 83.2%.

2. Avoid Jet Airways: Sandeep Wagle

What is the call on Jet Airways?

Nothing really happening, the intermediary trend is bearish. However Rs 398 or around that seems to have made a bottom, is a very strong support area. So till that is broken, I will not have a bearish view also but there is nothing that suggests buying but in case Rs 398 is taken out then we can move down to possibly Rs 360 or Rs 340, somewhere in between that.

3. Pilot arrested for allegedly assaulting CISF jawan on duty at airport

Mumbai: Amid the hectic activity at the airport, a Jet Airways pilot, Zahir Abbas Killegar, and his brother Tauseef, were booked by the Sahar police for allegedly attacking a CISF guard on duty, after he pulled them up for parking near a crowded terminal.

Around 12.15 am, on Wednesday night, both brothers were heading towards departure terminal A to catch their flight to Canada for a personal trip, when they had a skirmish with the jawan.

"Both the pilot and his brother got in a scuffle with the CISF jawan, after he asked them not to park their vehicle near the terminal," said Dilip Patil, senior inspector at Sahar police station.

"The terminal was overcrowded with vehicles. This irritated the jawan on duty and he asked people to move their vehicles. The brothers, who had already stopped the vehicle in front of the terminal's gate, refused to comply, saying that he should ask others to move first.

"Killegar told him that he is a pilot and knows the laws at the airport. This infuriated the jawan who picked up a brawl with them. Soon other jawans gathered and called the police," said an airport staff.

"There was no major fight between the two parties. It was a war of words where neither the parties were ready to give up," added the staffer.

Senior Commandant, CISF, Jitender Negi, he said, "All the details have been provided to Sahar police station. You should ask them."

The brothers, who reside in Agripada, were booked under Sections 353 (assault or criminal force to deter public servant), 332 (voluntarily causing hurt to deter public servant from his duty) and 34 (acts done by several persons in furtherance of common intention) of the IPC. They were later granted bail by an Andheri court on a bond of Rs. 15,000 each.

NEHA JAIN

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Sunday, March 27, 2011

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1. Jet leaves passengers in lurch

PATNA: Over 50 passengers booked on Jet Airways' Delhi-Patna-Delhi afternoon flight 9W-2287 and evening flight 9W 727 had a tough time as the airline refused to allow them to board the aircraft due to sudden unfavourable weather conditions due to extensive heat on Sunday.

Both the flights had about 150 passengers booked on it. Sources said the airline refused to let the passengers board the aircraft because air had more than normal level of heat. "In such a condition, it is not advisable to carry heavy load," a source told TOI.

However, these passengers were accommodated on Air India, Go Air, IndiGo and Kingfisher's Patna-Delhi flights, sources said.

2. Jet Air’s on-time performance soars to 89% in Feb

Jet Airways, Jetlite and GoAir were the only three domestic airlines that reported a month-on-month increase in seat factor (number of seats occupied against number of seats available) this February.

All other domestic airlines saw a marginal decline with overall domestic seat factor also declining owing to end of peak travel season.

As per data released by the Directorate General of Civil Aviation (DGCA), Jet’s seat factor was up to 76.5% (73.9%), JetLite’s to 80.2% (74.6%) and GoAir’s to 87.1% (83.3%) during the month.

The biggest decline, almost by 3 percentage points, was seen in Kingfisher’s seat factor at 83.6% (86.5%), followed by Air India at 68% (69.3%), SpiceJet at 81% (82.6%) and IndiGo at 87.6% (88.6%).

In terms of market share though, Kingfisher continued to rule the domestic skies, despite IndiGo snapping at its heels. While Vijay Mallya’s Kingfisher network carried almost one in five domestic passengers, with 19% market share in February, low fare IndiGo was not far behind at 18.7%. Jet Airways was also close behind IndiGo with 18% share of the market and Air India (domestic) was at the fourth place with 15.8% share. SpiceJet was a distant fifth at 13.8%, followed by Jetlite at 8.1% and then Go Air at 6.6%.

In a statement on Wednesday, though, Jet claimed market leadership when taken together with low fare subsidiary JetLite. “Jet Airways, together with JetLite, successfully retained its leadership position in the Indian Aviation sector with a dominant market share of 26.1%....Jet Airways carried 3.81 lakh international revenue paying passengers in the month of February 2011 with an overall seat factor of 81.1%. The airline also carried 8.24 lakh domestic revenue paying passengers with a seat factor of 76.5%,” the statement said.

But Jet’s passenger complaint record wasn’t so rosy, with the airline facing maximum complaints per 10,000 passengers at 4.1.

Though the number in itself is quite small, it compares poorly with Air India Domestic’s 1.1, which was surprisingly the topper in this category. Kingfisher saw 1.7 complaints, JetLite 2.1, GoAir 2.2, SpiceJet 2.8 and IndiGo 3.1.

In the on-time performance (OTP) area, Jet again topped with 9 out of 10 flights taking off on time. Jet’s OTP was the highest at 89.2%, followed by 88.7% for Kingfisher and 86.8% for IndiGo. The worst was SpiceJet, with almost one in four flights not operating on time and an OTP of just 73.9%. Air India domestic also had a similar record with 25% flights getting delayed and OTP of just 75.8%. One in five JetLite flights also could not fly on time at 80.6% OTP. GoAir’s OTP was bettter at 83.2%.

3. Direct flight to Mumbai from Sunday

PATNA: Come March 27, and Patna would have a direct flight to Mumbai. The non-stop Jet Airways flight would operate daily, taking off from Patna at 10.10 am to reach Mumbai at 12.30 pm.

There's no direct flight from Patna to Mumbai, as of now. While a Kingfisher flight goes to Mumbai via Ranchi, GoAir operates a flight between Patna and Mumbai via Delhi. IndiGo's Patna-Mumbai flight goes to Lucknow first.

4. Will SC allow private airlines to handle ground services?

While the Delhi HC upheld the CCS decision of restricting private airlines to perform ground handling operations, airlines knocked the doors of the Supreme Court. CNBC-TV18 learns that the airlines are in a big dilemma as the SC hearing is on the April 4, 2011, while the policy is getting implemented on April 1, 2011. CNBC-TV18’s Swati Khandelwal Jain reports.
Here is a verbatim transcript of Swati Khandelwal Jain’s comments on CNBC-TV18. Also watch the accompanying video.
We understand from sources that the new ground handling policy will come into effect from the April 1 this year. Remember, the ground handling policy was first formulated in 2007. But it could never get implemented because the private airlines including Jet Airways, JetLite, Kingfisher, Indigo, GoAir had opposed it because they restrict them from doing their own ground handling operations.
Now, the airlines say that this will mean that their ground handling cost will almost double, if they outsource this to one of the three operators that the policy permits. It also says that they may have to pass on the cost to the consumers, which means that the ticket prices could go up going forward.
We also understand that the airlines have about 15,000 or more direct and indirect employees which to the ground handling for them. So, it means that almost 15,000 or more jobs will be at stake.
Not just this, they have already invested over Rs 322 crore put together on ground handling infrastructure, so that’s going to be the big blow for the airline companies. Of course, we will have to wait and watch what really happens in the Supreme Court where the airlines have gone ahead and appealed to the Supreme Court against the judgment that came in from the Delhi High Court. But till then it’s going to be a big dilemma for the airline companies. We could see the ticket prices going up going forward.

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Neha Jain

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