Bengaluru International Airport Ltd. (BIAL), the operator of the Bengaluru International Airport (BIA), has decided to levy the long pending User Development Fee (UDF) of Rs 260 on all outbound domestic passengers, from January 16, 2009.

According to an official release by BIAL yesterday, the Ministry of Civil Aviation (MoCA) has given nod for levy of UDF.

Albert Brunner, CEO, BIAL said

"UDF is a crucial revenue stream for us although we have not been allowed to charge the amount we requested for. This is a beginning. The presently approved UDF is an ad-hoc. The final UDF will be decided by the ministry after further reviews or by the regulatory body appointed by the Government,”

With the crash in domestic traffic, monthly losses have zoomed in excess of Rs. 200 million per month, BIAL desperately needed the UDF. All development at the airport has been stopped by BIAL, with a lack of UDF being cited as the main reason.

Based on the September 2008 traffic, BIAL stands to earn about Rs. 66~70 million a month, which will not fully cover their shortfall. Their existing UDF request of Rs. 675 will allow them to fully cover their shortfall, but with the Ministry approving only Rs. 375 as UDF for Rajiv Gandhi International Airport (RGIA) at Hyderabad, an airport which is larger both in size and investment than BIA, I see no way for the Government to approve BIAL's request and justify their decision. Added to this a figure of Rs. 675 is considered too exorbitant by everyone.

In my opinion, a UDF of Rs. 375 would be an acceptable compromise between the needs of BIAL and the cost on passengers. Keeping in mind the total crash in regional air traffic, a segment where costs are critical, it might behoove BIAL to keep the UDF at the presently approved Rs. 260 for regional flights.

In the mean time, to make ends meet, BIAL will have to critically analyse, and reduce their expenditure. BIAL should also put the aero-city and other real-estate projects on top priority for additional income.

Based on 2008 data sampling by Flightstats.com, a list of the most delayed and the most punctual airports in the world, by on-time arrivals, and on-time departures.


Most delayed arrivals airports.
India tops the list with three of its major cities in the top five. I was stunned to see our much beloved Bengaluru International Airport in this dubious list.

Worst arrival rank: 1
Chhatrapati Shivaji International Airport (BOM), Mumbai, India
Percentage of on-time arrivals: 49.95%

For the second year in a row, India's busiest airport, tops the list as the world's most-delayed airport in terms of arrivals. About 58% of its late arrivals in 2008 were delayed by 30 minutes or more, according to FlightStats sampling of the airport's flights. In November, the airport opened a new taxiway to reduce the wait time for landing aircraft.

Worst arrival rank: 2
Indira Gandhi International Airport, (DEL), New Delhi, India
Percentage of on-time arrivals: 50.89%

A sampling of the airport's flights shows that nearly 60% of its delayed flights were late by more than 30 minutes. In October, a third runway, one of the longest in Asia, became fully operational.

Worst arrival rank: 3
Mohammed V International Airport (CMN), Casablanca, Morocco
Percentage of on-time arrivals: 53.83%

The airport, run by the Moroccan Airports Authority (ONDA), gets a low grade for on-time arrivals. More than 60% of its flights sampled by FlightStats in 2008 were at least 30 minutes late. Departures weren't much better: 64% left on time.

Worst arrival rank: 4
Bengaluru International Airport (BLR), Bangalore, India
Percentage of on-time arrivals: 60.16%

A massive drop in performance occurred due to the chaos following the opening of the new Bengaluru International Airport. Airport operator, BIAL, spokesperson, says, many of the delays are at origin airports. This is partially correct, since, when compared to fellow private greenfield airport, Rajiv Gandhi International (RGIA), at Hyderabad, which has similar traffic patterns, which has better on-time performance. From personal experience, I can attest to significant improvement in performance since opening. I am certain 2009 will be much better and we will not see BIA in this dubious list.

The winter fog, however, has repeatedly exposed the lack of a robust and needed Cat II or higher ILS system at the airport. As an example, as per Flightstats data, on 7th January, BIA managed a poor 54% and 23% on-time departure and arrival, when compared to 67% and 63% at RGIA. The lack of flight on-time performance predictability, aggravates passenger dis-satisfaction, especially when the distance of the airport from the city, is added. It also has an negative impact on the precious domestic departure terminal space.

BIAL must address the Cat II ILS requirement, before the onset of the next winter season, in order to achieve the needed levels of passenger satisfaction, and avoid needless expense in terminal expansion.

Worst arrival rank: 5
Orio al Serio International Airport (BGY), Bergamo, Italy
Percentage of on-time arrivals: 60.55%

Orio al Serio, the smallest of the five airports, serves budget carriers to Bergamo, and nearby Milan. In 2008, 55% of delayed arrivals sampled by FlightStats were less than 30 minutes late. However, only 60% of its flights departed on time as well.


Most delayed departures airports.
The top five most delayed airports airports were far more diversified geographically.

Worst departure rank: 1
Beijing Capital International (PEK), Beijing, China
Percentage of on-time departures: 47.86%

As the city hosted the Olympics, with the world's largest terminal, BCIA once again holds the dubious distinction of being the worst airport for on-time departures. 45% departures were delayed by 30 minutes or more, according to a sampling of the airport's flights.

Worst departure rank: 2
Manchester Airport (MAN), Manchester, United Kingdom
Percentage of on-time departures: 49.11%

Northern England's main airport had about 48% of its delayed departures late by at least 30 minutes, according to a sampling of flights.

Worst departure rank: 3
Venice Marco Polo Airport (VCE), Venice, Italy
Percentage of on-time departures: 53.59%

About 50% of its late flights in 2008 were late by at least 30 minutes, according to FlightStats' sampling of flight information. One unique feature of Venice's airport: You can get there by boat.

Worst departure rank: 4
Nice Côte d'Azur Airport (NCE), Nice, France
Percentage of on-time departures: 56.31%

The airport is the third busiest in France, serving 10.4 million passengers in 2007.

Worst departure rank: 5
Leonardo da Vinci-Fiumicino (FCO), Rome, Italy
Percentage of on-time departures: 57.83%

It can take 30 minutes or more to reach Rome's main airport from the city center, about the same time, more than 50% of departures were delayed according to FlightStats' sampling of the airport's flights.


Most punctual airports
The best on-time airports in the world. Tokyo leads the pack, with a clean sweep 1 and 2. I was surprised to see that neither Singapore's award winning Changi airport, or any of Germany's, or Switzerland's airports, countries knowns for their punctuality and efficiency, making the top five.

1. Haneda Airport, (HND), Tokyo, Japan: 90.0%
Even though it handles primarily domestic traffic, Haneda is the fourth busiest airport in the world, moving more than 65 million passengers in 2006. The older of the two airports around Tokyo, Haneda holds the record for on-time departures (93.3 percent), while nearly 87 percent of commercial flights arrived on time in 2007, making it the most punctual airport for both arrivals and departures (90 percent) in the world.

2. New Tokyo International Airport, (NRT), Narita, Japan: 84.2%
Haneda's sister airport Narita opened in 1978 to take over most of the international passenger traffic to and from Japan. It has an on-time arrival rate of 82 percent; on-time departures are 86 percent, and is ranked number two overall (84.2 percent) in the world for punctual performance

3. Taiwan Taoyuan International Airport, Taipei (TPE): 80.3%
The airport's sprawling second terminal opened in 2000, enabling TPE to move 22 million passengers in 2006. In 2007, 82 percent of Taoyuan's flights left the tarmac on time; of those, less than four percent were classified "excessively late," or delayed 45 minutes. Factoring in its 78 percent on-time arrivals, Taoyuan is practically tied with Kingsford Smith International in Sydney with an overall on-time performance rate of 80.3 percent.

4. Kingsford Smith International Airport, Sydney (SYD): 80.1%
With 30 million passengers in 2006, Kingsford Smith is the busiest and the oldest airport in Australia. Its on-time departures and arrivals are almost even, or 79.3 percent and 81 percent, respectively, with an average wait time of about 40 minutes. With an overall on-time performance rate of 80.1 percent, Kingsford Smith is nearly tied with third place winner Taiwan Taoyuan International.

5. Hong Kong International Airport (HKG): 79.7%
Voted "Airport of the Year" in 2007 by London-based air transport research center Skytrax, the ten-year-old airport is the second busiest in Asia. It boasts on-time departures of 81.1 percent; on-time arrivals of 78.3 percent, giving it a cumulative score of 79.7 percent.

Sources :
Forbes - Most delayed airports
Forbes - Most punctual airports

Japan Airlines (JAL) has been awarded by the Chicago Athenaeum: Museum of Architecture and Design, and the European Centre for Architecture Art Design and Urban Studies a Good Design Award 2008, under the Tabletop category, for the elegant aesthetics and ergonomic design of the chopsticks used in JAL First Class.

Satoshi Nakagawa, Kaori Takehashi, Ikumi Kaneko, and Hironi Kobayashi of Tripod Design Co., Ltd. are the designers. Omedetou gozaimasu to the team at Tripod, and JAL.

Made of cedar wood, the smooth surfaced chopsticks have slightly been narrowed towards their upper ends to make them easier and more comfortable to grip especially for elderly passengers, and infrequent users of chopsticks.

From an environmental perspective, as with all chopsticks used on-board JAL, the award-wining chopsticks have been made with wood obtained in Japan from forest-thinning to supports forest conservation efforts.

Following the successful bio-fuel test at Air New Zealand just 9 days ago, Continental Airlines, became the first U.S. airline to conduct a successful bio-fuel test yesterday, January 7.

The test at Continental was very similar to the one at Air New Zealand. The air-frame manufacturer was Boeing, at Continental it was a Boeing 737-800, while at Air New Zealand it was a Boeing 747. The technologist was UOP in both cases. The fuel was the same 50 per cent Jatropha mixed with 50% Jet A-1. The engine manufacturer at Continental was CFM, while at Air New Zealand it was Rolls Royce.

I applaud the efforts of Virgin, Air New Zealand, and Continental, and other participants in the bio-fuel tests, and exhort other airlines to also move towards aviation bio-fuels, most especially, Indian carriers. India is a major source of Jatropha, a major source for one the components of the aviation bio-fuel.

Thanks to the global economic slowdown, the price of oil may be low today, but it will rise once again, in the future. For much too long, the world has entrusted it's complete energy needs, in the hands of one of the most volatile regions on earth, the middle east, and Russia, a nation reverting back to it's pushy Soviet-era bullying.

We have to develop and implement alternatives sources of energy, if for no other reason, economic security. The savings and benefits to our planet, is an added bonus.

The flight designated CO9990 was conducted from Houston (KIAH) airport. Taken up to FL380 (38,000 ft), and descended as low at 4,300 feet, and was tested at varying altitudes and speeds, and with normal and non-normal flight maneuvers.

The full track of the flight can be seen here, image is below.


The full press release by Continental provides the full details.

Continental Airlines Flight Demonstrates Use of Sustainable Biofuels as Energy Source for Jet Travel

HOUSTON, Jan 07, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Continental Airlines (NYSE: CAL) today is demonstrating the use of sustainable biofuel to power a commercial aircraft for the first time ever in North America. The demonstration flight -- which is being conducted in partnership with Boeing, GE Aviation/CFM International, and Honeywell's UOP -- marks the first sustainable biofuel demonstration flight by a commercial carrier using a two-engine aircraft, a Boeing 737-800 equipped with CFM International CFM56-7B engines.

"This demonstration flight represents another step in Continental's ongoing commitment to fuel efficiency and environmental responsibility," said Chairman and Chief Executive Officer Larry Kellner. "The technical knowledge we gain today will contribute to a wider understanding of the future for transportation fuels."

The biofuel blend includes components derived from algae and jatropha plants, both sustainable, second-generation sources that do not impact food crops or water resources or contribute to deforestation. The algae oil has been provided by Sapphire Energy, and the jatropha oil by Terasol Energy. This is the first time a commercial carrier will power a flight using fuel derived in part from algae.

Continental's Boeing 737-800, tail number 516, will depart from and return to Houston's Bush Intercontinental Airport operating under a specially-issued "Experimental" aircraft type certificate, and will carry no passengers.

During the flight, which will last approximately two hours, Continental test pilots will engage the aircraft in a number of normal and non-normal flight maneuvers, such as mid-flight engine shutdown and re-start, and power accelerations and decelerations. A Continental engineer will record flight data onboard.

The flight will operate with a biofuel blend, which consists of 50 percent biologically-derived fuel and 50 percent traditional jet fuel, in the No. 2 engine. This biofuel blend will result in a significant net decrease in carbon emissions relative to traditional jet fuel, as both jatropha and algae consume carbon during their lifecycles.

The aircraft's No. 1 engine will operate on 100 percent traditional jet fuel, allowing Continental to compare performance between the biofuel blend and traditional fuel. As Continental has worked with Boeing, GE Aviation/CFM and UOP for more than nine months to carefully evaluate and test the biofuel in engines on the ground, no difference in performance is expected.

The biofuel is a "drop-in" fuel, and no modifications to the aircraft or engine are necessary for the flight to operate. The biofuel meets and exceeds specifications necessary for jet fuel, including a flash point and a freezing point appropriate for use in aircraft.

Following the flight, Continental will participate with its partners in post-flight engine analysis to ensure that the effect on the engine and aircraft, in addition to performance, is substantively no different between biofuel and traditional fuel.

"Through their leadership Continental Airlines is helping aviation pioneer a greener, more diverse fuel supply for the future," said Billy Glover, managing director, Environmental Strategy for Boeing Commercial Airplanes. "Having a broader, more sustainable fuel portfolio is vital to our industry and demonstrating the viability of these renewable fuels addresses that goal, while potentially helping to further reduce environmental impacts."

"UOP's goal with renewable technology is to produce real fuels that perform as well as or better than their petroleum-based alternatives and that leverage the existing fuel infrastructure and fleet technology to lower capital costs and simplify adoption," said General Manager of UOP Renewable Energy and Chemicals Jennifer Holmgren. "With our proven technology and the commitment of aviation leaders like Continental and Boeing, sustainable biofuels for aviation are a real near-term option. We believe that production levels could reach hundreds of millions of gallons per year by 2012."

"We still have a lot of work to do in terms testing various biofuels but we are very pleased with, and encouraged by, the results we have achieved to date," said Eric Bachelet, president and CEO of CFM International. "What we have found is that the second generation fuel being tested today comes closer to simulating the characteristics of traditional jet fuel in terms of engine performance and operability, such as fuel consumption, engine start and other parameters. We have also found that engines running this mix emit less smoke even than those fueled by traditional jet fuel."

"The simple combination of sunlight, CO2 and algae to produce a carbon-neutral, renewable fuel source has the potential to profoundly change the petrochemical landscape forever," said Jason Pyle, Sapphire Energy CEO. "Today's flight puts us one step closer to moving away from fossil fuels and energy dependency, and with no impact on the transportation infrastructure, food sources or the environment."

"We are excited to be pioneering the development of bio-based jet fuels along with Continental Airlines," said Sanjay Pingle, president, Terasol Energy. "Jatropha is one of several next generation fuel sources that we are working on in order to develop sustainable, scalable and renewable alternatives to petroleum-based products."

About Continental

Continental has a company-wide commitment to environmental responsibility. On average, Continental burns approximately 18 gallons of fuel to fly one mainline revenue passenger 1,000 miles, which represents a 35 percent reduction in greenhouse gas emissions and fuel consumption since 1997. This is due in large part to the efforts of its employees in streamlining operational procedures and to an investment of more than $12 billion to acquire 270 fuel-efficient Boeing aircraft and related equipment. Continental remains committed to further improving fuel efficiency in the decade to come, including investing in its fleet with orders for more than 50 Boeing 737-900 Next Generation aircraft, and 25 Boeing 787 Dreamliners.

Continental has also reduced, by 75 percent, nitrogen oxide emissions from ground equipment at the carrier's largest hub in Houston through switching to electric ground service equipment and other new technology. This technology is now being tested for use in cold climates.

Through these investments and other projects, including the construction of airport facilities in an environmentally responsible manner, the testing of alternative fuels in ground service equipment, offering a credible carbon offsetting program based on the actual fuel burn of the Continental fleet, and an expansive recycling program, Continental will continue to manage the environmental impact of its business.

Continental Airlines is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,500 daily departures throughout the Americas, Europe and Asia, serving 134 domestic and 131 international destinations. More than 675 additional points are served via alliance partners. With more than 43,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year.

Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the fifth consecutive year, FORTUNE magazine named Continental the No. 1 World's Most Admired Airline on its 2008 list of World's Most Admired Companies. For more company information, go to continental.com.

FlightBlogger is reporting, Airbus brought MSN033, the first A380 for Air France, it's European launch customer, out to the flight line in Toulouse yesterday.

Image courtesy FlightBlogger. Copyright David Barrie

F-WWSB, which will eventually be registered as F-HPJA. As the photo shows, the airframe has its four GP7200 engines installed, and we can expect it to take its maiden flight within the next two to three weeks.

Snecma Image

Air France was originally expecting to put its new A380 in to service in April 2009 between Paris and Montreal, but expect some delays.

In my first post of the year, I had collated predictions from industry experts for the future of the airline industry in 2009. Here's my own analysis on the current situation, and I feel, among other things, 2009 presents an opportunity for airlines to tap on technology to build stronger brands.

Allen Adamson, MD of Landor Associates, made a statement in a recent article he wrote that resonated with me completely.

"Conventional wisdom says that in tough economic times you take out the scalpel. You cut jobs, budgets, and programs, especially in the areas of advertising and brand-building. Well, for the first time in marketing history, there's an option that will increase rather than decrease your horsepower."

Allen was referring to digital branding - or using technology to build the brand. And as you'd have realized from some of my previous articles, I'm a die-hard fan of this emerging field. Branding through technology allows not just airlines, but all companies to leverage on a tool that not just creates buzz, but is often free or cheap compared to traditional marketing means.

Before I dive into why and how airlines can build a digital brand, let me address why airlines are shying away from digital branding.

Uncharted waters may be risky, and what about ROI?

Airlines, of all industries, tend to be very risk averse, due to the high cost environment that they operate in. It's only natural to take calculated risks, especially in this environment. But the essence is to take calculated risks. If the risks are well defined and counter-actions thought of in advance, then they're certainly worth a shot. The best way to beat fear is to define it.

The other factor that often comes in while taking a marketing investment decision is that of Return on Investment (ROI). In some cases, Web 2.0 initiatives can be directly linked to revenues, but many of the times, soft ROI metrics need to be employed. For example, the purpose can be to engage a new target market, like students, by building an online community like GenFlyLounge by Lufthansa. Another aim can be to engage the employees better, just like Malaysia Airlines does with their blog. The key is to have a well-defined ROI metric before embarking on the project.

Now that I've settled some nerves about venturing online with your brand, the question is why do it? For that, let's revisit what branding actually is.

Brand Building 101

Here's my own very simple definition of what airline branding is all about (feel free to quote me on this!).

An airline first needs to define itself and know what it stands for. Next, it needs to communicate this message effectively to its target markets.

I believe all airlines will be able to build a brand through the above two-part process. But to really stand out, a brand needs to be unique (something others can't offer), it needs to be genuine (and often personal) and it needs to be buzzworthy (worth talking about). And this is exactly what I believe technology can help airline brands achieve with relative ease.

Advantages of building an airline brand online

There are four key factors I feel airlines can benefit from, which come with building a brand online.

1. Interaction without interruption - Airline brands are able to reach their target audience without disrupting the flow of their normal activities. Instead of having distracting (and expensive) billboards or advertisements, they can seamlessly integrate the message with a medium well suited for engagement. Virgin Atantic's Facebook page is a great example of this.


2. Co-creation: Consumers these days like to have a say in the product and marketing strategy. And online tools like Twitter to gather feedback and use of sites like Suggestionbox.com gives consumers a stake in the game.


3. Building a personality: It's much easier to build a personality online, rather than offline. For example, having employees blog about the airline, or having the CEO maintain his own blog suddently adds life to a faceless airline.


4. Ease of experience: Airlines can use online tools to allow passengers to experience the brand without even stepping on-board the plane. Cathay Pacific's online experience site is a great example of this.

So, doesn't it make sense to venture online with your airline's brand?

These are just very brief points on the advantages of building a strong airline brand online. If you're keen to learn more, I'd like to invite you to register for a free educational webinar being led by me tomorrow, Janurary 8, entitled "Airlines 2.0: Using technology for innovative branding through the recession."

Remember, you can still win a 2GB Apple iPod by commenting on any of the articles and subscribing to SimpliFlying by emailRSS for regular updates. The deadline for the contest is this Saturday, 10 Jan 2008. Hurry!
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This is a guest post by Shashank Nigam, the author of SimpliFlying, a leading airline branding blog. He is a leading airline brand strategist and a well respected speaker and columnist on the topic.

Update - January 6. It never struck me, when posting the original article, but based on the timings, Kingfisher can offer passengers, connection between Singapore and London via Mumbai. Further, if Kingfisher can streamline its current Bangalore London operations with better slots at Heathrow, it need only one Airbus A330 instead of the current two. It can deploy that aircraft on a Mumbai-Singapore-Sydney route, since Qantas is reportedly withdrawing its Mumbai - Sydney service. An added benefit for Kingfisher will be to offer a complete Kangaroo route.

Original Article - January 4.
Kingfisher Airlines will launch a slew of international services to London, Hong Kong, Singapore, and Colombo, through the month of January, starting tomorrow.

Mumbai, India - London Heathrow, United Kingdom
On 5th January, Kingfisher will commence its second international flight, on the Mumbai Chhatrapati Shivaji International Airport - London Heathrow sector. Kingfisher's only existing international service is also to London Heathrow, from Bangalore, launched in September 2008.

Kingfisher will deploy its new VT-VJx series Airbus A330-200 aircraft on this route, in a two class configuration. The Kingfisher First features full flat seats with massage, touch-screen controls, full size pillows and merino wool blankets. Both classes features an in-flight entertainment system.

IT7 will depart Mumbai 13:50 and arrive London Heathrow Terminal 4 at 17:55.
IT8 will depart London Heathrow 20:30 and arrive Mumbai at 11:00 the next day.

Mumbai, India - Hong Kong, SAR
Kingfisher has scheduled operations, on the Mumbai - Hong Kong sector, to commence from January 12, 2009, using the Airbus A330-200 VT-VJx series.

IT31 will depart Mumbai 00:15 and arrive Hong Kong at 08:45.
IT32 will depart Hong Kong at 14:00 and arrive Mumbai at 17:30.

Mumbai, India - Singapore
Kingfisher has scheduled operations, on the Mumbai - Singapore sector, to commence from January 16, 2009, using the same Airbus A330-200 VT-VJx series.

IT21 will depart Mumbai 23:40 and arrive Singapore at 07:40 the next day.
IT22 will depart Singapore 09:20 and arrive Mumbai at 12:10.

Bangalore and Chennai, India - Colombo, Sri Lanka
Kingfisher has scheduled operations, on the Bangalore - Colombo and Chennai - Colombo sectors, to commence from January 19, 2009, using the narrow body Airbus A320 aircraft.

IT61 will depart Chennai 07:15 and arrive Colombo at 08:15.
IT62 will depart Colombo 17:30 and arrive Chennai at 18:30.

IT63 will depart Bangalore 15:00 and arrive Colombo at 16:20.
IT64 will depart Colombo 09:15 and arrive Bangalore at 10:30.

With the exception of the Singapore flights, I am concerned at the amount of time, the aircraft are spending at the destinations. Airplanes on the ground, only cost, not earn, money,

For more details visit the Kingfisher Airlines' website. Click here to download the schedules in Excel format.

Congrats to Kingfisher for finally ramping up the international show.

British Airways today, reported its performance for December 2008. The airline's performance is in line with IATA's November 2008 report, which highlights a deepening of the global economic slowdown.

Capacity declines are in line with actual performance. Compared to December 2007, passenger capacity, measured in Available Seat Kilometres (ASK), was down 3 percent, Actual passenger performance, measured in Revenue Passenger Kilometres (RPK), fell by 3.4 per cent, passenger load factor decreased by 0.2 per cent to 76.7 per cent.

It also appears that corporate passengers are belt tightening, and moving to the back of the plane. Premium passenger traffic (first and business class) decreased by 12.1 per cent while economy decreased by a comparatively modest 1.7 per cent.

The alarming fall, which highlights economic slowdown, is in cargo performance, measured in Freight Tonne Kilometres (FTK), fell by 14.3 per cent.

Globally air cargo transports about 35 per cent to 40 per cent of global trade, by value. Globally, air cargo FTK fell by 13.5 per cent in November 2008, when compared to a year ago. The December fall by British Airways, highlight the continuing and rapid decline of global trade, and deepening of the already significant economic slowdown.

2009 will see economies become a lot worse before improving.

Apart from Singapore Airlines, the best airline I have flown in my 4 million miles, is Virgin Atlantic.

Today, Virgin launched its 25th anniversary celebrations, with a video reflective of its irreverent yet high energy culture.

Virgin's inaugural flight was from London Gatwick to Newark (EWR) on June 22 1984, at a time when the United Kingdom was in the middle of a miner's strike. The ad features brands and icons from the period; Our Price record stores, Wimpy fast food, Rubik's cube, Asteroids video game, braces, frumpy air-mummies, braces, big hairdos and monster brick mobile phones.

"Relax" by Frankie Goes to Hollywood was riding high in the charts, is the theme music for the ad, and should be your mood for the next 90 seconds.

Do you think Virgin is "Still red hot" as the ad claims ? As usual your comments are requested and welcomed.

The Government of India has ordered eight Boeing P-8I long range maritime reconnaissance (LRMR) aircraft.

At $2.1 billion this will be the biggest-ever defence deal of India with United States, double of the $962-million contract signed with US for six C-130J `Super Hercules' aircraft for use by Indian special forces, last year.

The Boeing P-8A Poseidon is a long-range anti-submarine warfare, anti-surface warfare, intelligence, surveillance, and reconnaissance aircraft first developed for the US Navy, as a replacement to the ageing P3C Orion, on the successful Boeing 737 airframe.

The P-8I has been customised for India, and the platform's electronics are crucially required in plugging the huge gaps in the Indian Navy's maritime monitoring and surveillance capabilities. The P-8I will also be armed with the deadly, anti-ship, Harpoon missiles, torpedoes and depth bombs to give them potent anti-submarine and anti-surface warfare capability.

The P-8I's are expected to "enhance interoperability" between the Indian and US navies, and is a critical step in the on-going efforts of greater cooperation and growth strategic embrace between the two nations.

The actual signing took place on January 1, with the Indian defence ministry's joint secretary and acquisitions manager (maritime systems) Preeti Sudan and Boeing integrated defence systems vice-president and country head Vivek Lall signing the contract

India will get the first P-8I within 4 years, i.e. end-2012 or early-2013, the rest following in a phased manner by 2015. The contract also provides an option for India to order four to eight more such planes.

While the deal has been long in the making, the recent 26/11 Mumbai terror attacks, have provided a boost to the closure. Both the Navy and the Coast Guard were criticised for not being able to pre-empt the attacks, and protection of the long Indian coast line has suddenly become a major priority of the Government.

The P-8I will replace the ageing and fuel-guzzling Russian Tupolev-142Ms of the Indian Navy. Presently, the Navy uses the TU-142Ms, IL-38SDs and Dorniers for surveillance operations in the Indian Ocean region.

The Navy is also shopping for six new medium-range maritime reconnaissance aircraft valued at Rs. 1,600 crore ($ 350 million), to achieve its aim of an effective three-tier surveillance grid in the entire Indian Ocean.

For innermost layer (up to 350 km) surveillance, the Navy is procuring two more Israeli Heron UAVs (unmanned aerial vehicles), with three ground control stations and two ship control stations, for Rs 386 crore after successfully deploying eight Searcher-II and four Heron UAVs. A joint Indian-Israeli Rs. 1,186 crore effort is on, for developing rotary-wing UAVs for use from warships.

On 16 October 2008, Emirates Airlines, moved all operations at Dubai International Airport to Terminal 3. Terminal 3 is over 1,500,000 m2 (370 acres) in size, the single largest terminal building in the world, and is dedicated exclusively to Emirates Airlines.

The move demonstrated the meteoric rise of the airline since its inception on May 25, 1985 with just two leased Airbus A300 and one Boeing 737-300 aircraft, to the titan of the airline industry, it has become today.

Emirates has recorded a profit every year, except in it's second, and growth has never fallen below 20% a year. In its first 11 years, it doubled in size every 3.5 years, and has every four years since. The Emirates Group announced a net profits of Dhs5 billion (US$1.37 billion) for the financial year ended 31 March 2008, a 62% increase over the previous year. Business lore has it, that Emirates airline's turnover is almost 20 per cent of Dubai's GDP.

Credit to Emirates' business model, which has led to their phenomenal success. Despite being considered one of the best providers of services, Emirates practices a lean workforce policy, and simple organisational structure, which is comparable to low-cost carriers, instead of the complex and bloated workforces at most legacy and full service airlines. Like it's super-profitable, high service level, compatriot, Singapore Airlines, Emirates operates an "all wide body" fleet, which results in lower costs, while allowing Emirates to earn additional revenue utilising cargo capacity.

The low overheads, coupled with a no income tax regime at Dubai, gives it operating costs that is the envy of the airline world. Industry analysts believe that Emirates has a cash cost per seat basis second only to Ryanair. The Dubai airport is another ace in the hole for Emirates. The airport's low operating costs, round the clock operations, and geographic location, give Emirates a significant competitive advantage.

India has always been on the forefront of Emirates' radar screen. India has always been a "west bound" country, with maximum traffic to North America (USA being India's biggest trading partner), Europe, and Middle East.

Emirates' first flights were to Karachi in Pakistan and Mumbai, India. Utilising the geographic position of it's home base Dubai, Emirates has been steadily capturing the traffic from South Asia to North America, allowing passengers to bypass the traditional hubs of London Heathrow, Frankfurt, and Paris Charles De Gaulle; the home bases of British Airways, Lufthansa, and Air France, with a transit stop in beautiful Dubai airport instead. Similarly, Emirates competes with British Airways, Qantas, Singapore Airlines, and other airlines on the lucrative London to Sydney "Kangaroo Run".

The imposition of mandatory transit visas by most European countries, on South Asians does not help the cause of their airlines, since South Asian get automatic transit visas in Dubai. The fabulous duty shopping and bargains galore, add to the passenger draw.

In November 2008, Emirates, already holding the position as the number one foreign airline to India, announced that it would add another 31 weekly flights to India by early 2009, taking it's total to a staggering 163 flights per week from 10 cities in India.

This at a time, when other foreign airlines were cutting back their services to India, and India's airline industry struggling to overcome the economic malaise of theirs and the Government's of India making.

Emirates has already muscled it's way in, at the traditional strongholds of traditional, major foreign airlines, British Airways, Lufthansa, and Singapore Airlines; Mumbai, Delhi, Chennai, Kolkata, and Bangalore. Now it is beginning to crowd them out with its capacity.

Just as an example, Chennai, the traditional stronghold of Singapore Airlines with 11 flights a week. In 2006, Emirates had 4 flights a week. In less than 2 years, today, it has 19 flights a week, which will become triple-daily i.e. 21 flights a week from Winter 2009. In the mean time, Singapore Airlines has cut back its flights to 9 a week, and even that looks unsure.

Emirates, has also announced plans of adding another 19 flights by the Winter 2009 schedule. At 182 flights, keeping in mind, the speed with which Indian carriers Jet Airways, Kingfisher Airlines, and Air India, are withdrawing their international services, Emirates stands become the largest airline operating internationally, in India.

Some will compare this expansion to capacity dumping, since only Mumbai, New Delhi, and maybe, Bangalore have the ability to absorb the seats and cargo space offered. Below is a brief review of Emirates plans for each of its Indian gateways. It is important to keep in mind, Emirates has an "all wide body" fleet, and operates only Boeing 777s and A330s to India.

Ahmedabad*
Emirates will increase its existing 8 weekly flights to a double daily i.e. 14 flights a week in it's Winter 2009 schedule which commences December 1, 2009.

Singapore Airlines is going to stay at its 3 weekly flights for the foreseeable future.

Bangalore
Emirates will operate 20 weekly flights. Cargo capacity will increase to 340 tonnes.

Jet Airways is withdrawing its Brussels flight, Singapore Airlines has reduced frequency from 10 weekly flights to 7, Kingfisher is struggling to fill seats on it's daily London Heathrow flight, as are Lufthansa, Air France, Etihad, Qatar Airways, Malaysia Airlines, Thai Airways, and British Airways. Air India operates one puny Airbus A320 with international transit connectivity at Mumbai, and is barely clinging on.

Chennai
By February 2009 weekly 19 flights. Due to increase to triple-dailies from Winter 2009.

Singapore Airlines has cut capacity from 11 weekly flights to 9. Malaysian and Thai Airways are fighting an uphill battle. British Airways has reduced frequency from 6 flights a week to 4, Air France is experiencing pressure and is operating only thrice a week. Lufthansa reduced it's aircraft size from a Boeing 747-400 to an Airbus A340-600 now down to a Airbus A340-300. Only Sri Lankan airlines, in which Emirates has a stake, is performing acceptably.

Kochi*
Currently Emirates operates 12 flights per week, Emirates will add another two flights in February 2009 taking the total to 14 flights a week.

Competition ? What is that ?

Kolkata
Current Emirates operates a daily flight which will be upgraded to 11 flights a week in Winter 2009.

British Airways has announced withdrawal from Kolkata, and Lufthansa has reduced frequency to thrice a week.

Kozhikode* (Calicut)
From the existing 6 flights a week Emirates will increase to 11 weekly flights.

Hyderabad
Emirates will serve the city with a triple-daily operations by February 2009.

KLM is discontinuing operations. Lufthansa has already reduced frequency from a daily flight to 5 flights a week. British Airways just commenced with 5 flights a week, but it remains to be seen how the operations holds up in the future.

Mumbai
Effective February 1, Emirates will serve Mumbai with a fifth-daily operation i.e. 35 flights a week, providing the city with a service almost every five hours. Cargo capacity on the route will increase to 641 tonnes per week.

Air India and Jet Airways are trimming their European, and US services. Only time will tell, how successful Kingfisher's service to Heathrow, due to commence on January 5, 2009, will be.

New Delhi
India's capital which was initially served by 18 weekly flights will have a total weekly frequency of 25 flights per week post expansion. Weekly cargo capacity will increase to 389 tonnes.

Air India and Jet Airways are trimming their European, and US services.

Thiruvananthapuram* (Trivandrum)
From the current 8 flights a week, Emirates will ramp up to 10 flights a week, and then up to 12 flights a week in Winter 2009.

*Tier II cities. In these cities the Emirates' capacity build-up appears to be pre-emptive in nature, to establish a base and prevent other airlines from entering.

Emirates' Chairman Sheikh Ahmed bin Saeed Al Maktoum, Vice Chairman Maurice Flanagan, and President Tim Clark have built a formidable competitor. With it's new non-stop flights to San Francisco, Emirates has breached the ultimate barrier, now offering a one-stop connection between the Silicon Valley (SFO) and Silicon Plateau (BLR). Their march will continue this relentless pace.

While competition is good, and I am ardent propent, the leadership in India has to become pro-active lest Emirates crowds out all other carriers from India, at which point the country will be at the mercy of this giant. Politicians in India need to start pushing Indian airlines to start operating internationally. They should get out of the rut and let any Indian carrier fly internationally. In parallel they will have to twist the arms of British Airways, Lufthansa, Air France, and other legacy European carriers, to obtain favourable slots for Air India and other Indian carriers at London Heathrow, Frankfurt, and Paris Charles De Gaulle.