Two flights to Bangalore, one from London and another from Mumbai, were diverted to Chennai airport Thursday morning due to bad weather conditions at Bangalore.

The British Airways flight from London and the Indian Airlines flight from Mumbai were supposed to land at Bangalore airport at around 0600 hours. After the weather conditions became better at Bangalore airport, the flights left for Bengaluru from Chennai at around 0715 hours.

Quoting a Times of India report, a BIA spokesperson said, "There were no arrivals at all for three hours between 5.30 am and 8.30 am. There were only three departures from BIA on Thursday. Two flights, one from Mumbai and the other from London were diverted owing to the fog."

The new Bengaluru International Airport has a Category I ILS system, the same as in the old HAL airport. There has been a historical disruption of morning flights during the winter season.

An Express News Service report that the third runway at the Indira Gandhi International Airport, installed with Category III-B Instrument Landing System (ILS), was finally commissioned on Friday for low-visibility air traffic operations during dense fog days, brings much cheer to harried passengers.

“The certification was given following an inspection by the Directorate General of Civil Aviation (DGCA) after taking into consideration elements involved in facilitating aircraft operations under 50-metre (near zero) visibility conditions (Category III-B Operations),” an official from the Delhi International Airport (DIAL), the airport operator said.

Airport Authority of India (AAI) has installed and commissioned the secondary Surface Movement Radar (SMR) at the third runway with a separate Air Traffic Control (ATC) display at the control tower, which forms part of the existing Automation Surface Movement Guidance and Control System (ASMGCS).

“This display will facilitate air traffic controllers to identify the radar data from detected targets on the runway as well as the related taxiway before entering the international or domestic apron even under near-zero visibility conditions,” an official said.

The low-visibility procedures (LVP) have also been worked out and are in place for the third runway. The Met department has installed and commissioned the required Runway Visual Range (RVR) measurement equipment, which will give instantaneous runway visibility reading at the control tower. This helps in effecting low-visibility procedures in case runway visibility falls to near-zero.

The Delhi International Airport Limited (DIAL) has installed and commissioned Category III-B runway and taxiway lighting system for permitting low-visibility operations. Together with the second runway, which is fit for Category III-B operations, the third runway is now ready to be utilised for low-visibility operations, and to share the air traffic load during adverse visibility conditions and avoid air traffic diversions.

“Utilisation of these two runways for Category IIIB operations will also depend on pilots who are trained and rated for carrying out low-visibility landings and takeoffs,” said an official.

The DGCA has directed all airlines to ensure that CAT III compliant aircraft and pilots are on their rolls for operating at the Delhi Airport. “This will be strictly monitored by the DGCA on a day-to-day basis,” an official said.

Currently, the National Aviation Company of India Ltd (NACIL) has the maximum number of CAT II and III trained pilots; Air India has a fleet of 95 pilots and 69 co-pilots with CAT III training, while Indian has 148 pilots and 94 co-pilots trained.

Among the private players, Jet Airways has 102 pilots and 58 co-pilots similarly trained; Kingfisher has 93 pilots and 53 co-pilots; whereas Indigo has 33 pilots and 24 co-pilots trained in CAT III operations.

According to a PTI report, the International Air Transport Association (IATA) is working on a non-binding document for its member airlines calling for foreign ownership, saying that the aviation industry should be allowed to run like any other business like automobiles or telecom. IATA is planning to urge all governments to have a re-look at allowing foreign airlines to pick up a stake in domestic airlines.

“We are not talking only about India, but along with other countries we will certainly recommend that foreign airlines be allowed to pick up a stake in domestic airlines. We are supporting the relaxation of overseas investment as this could help airlines to stay afloat or re-structure their business more efficiently,” said Brian Pearce, Chief Economist, IATA.

Elaborating further, Carlos Grau Tanner, Director (Government and Industry affairs), IATA said that he is working on the non-binding document which is likely to be tabled at an international conference early next year. Tanner further added that cross-border ownership was prevalent in other industries like telecom and automobile, and they do not face any kind of FDI related restrictions that the aviation sector faces.

The Star alliance press office announced that at their annual Board Meeting, the CEOs of the Star Alliance member airlines have voted to accept the application of Brussels Airlines to become a future member of the alliance.

Brussels Airlines is the Belgian airline offering the widest choice of flights to and from the “capital” of Europe. With a fleet of 45 aircraft the airline operates some 300 daily flights to 55 European airports and 15 African destinations.

Glenn Tilton, Chairman, President and CEO of United, in his role as chairman of the meeting said, “Brussels Airlines further strengthens the Star Alliance by offering greater connectivity throughout Europe and Africa to better serve the international travel needs of all our customers.”

Bernard Gustin, Managing Director of Brussels Airlines, said “We are very happy with this invitation from Star Alliance and we look forward to becoming a member carrier. Together we will be able to bring all the advantages of Star Alliance to our customers, both at the heart of Europe where we have our state-of-the-art hub, and to Africa, our second home where we have more than 80 years of experience.”

For the upcoming integration in Star Alliance, Brussels Airlines will be assisted by its sponsor Lufthansa. Wolfgang Mayrhuber, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said, “Brussels Airlines is known for its reliability and brings into the alliance a trusted product. The leading Belgian carrier will significantly increase the presence of Star Alliance at Brussels Airport and will offer the easiest access to a couple of African destinations new to the network.”

Through its membership in Star Alliance, Brussels Airlines will be able to offer its passengers a variety of benefits. On the network side for instance, the airline will be able to offer its passengers seamless travel across the Star Alliance network which will expand to cover 1,074 destinations in 174 countries*.

Frequent Flyers in the Brussels Airlines Privilege programme will be able to collect and redeem miles on all other Star Alliance member carriers.

In order to provide all the alliance benefits, the specialised teams at Brussels Airlines, Star Alliance and its member carriers will now be working on the integration process, which once completed, will make Brussels Airlines a part of the Star Alliance network, currently consisting of 21 members.

Brussels Airlines is also a close partner with Indian carrier, Mumbai based, Jet Airways. At the same time, Lufthansa has announced its intention to help the state owned national carrier Air India, also based out of Mumbai, to become a member of the Star Alliance.

According to a PTI report, Finnish carrier, Finnair has expressed, that Indo-Finn air services agreement is hampering connectivity between the two countries and its plans to operate flights to more cities in India. "At the moment, it is impossible to connect Finland with more than two India cities. The bilateral agreement between both the countries forbids it," stated Kari Stolbow, Director, Indian Subcontinent, Finnair. Currently, the airline connects Finland's capital Helsinki with New Delhi and Mumbai. The airline plans to operate six-hour flight between Helsinki and Indian cities while gearing up to connect North America with Indian cities through Finland.

"We want to offer our services to Southern cities of Bangalore, Chennai, Hyderabad, where big MNCs like Nokia are located*," said Stolbow. He further added that Finnair, which has an alliance with Kingfisher Airlines, is talking to more Indian carriers for cooperation. "We have a 'through fares' alliance with Kingfisher Airlines and are talking to many others, including Jet Airways," Stolbow informed.
*Finnish telecom major Nokia has its India manufacturing facilities at Sriperimbudur in the outskirts of Chennai.

Admitting that Finnair's connectivity with India will be affected by its own shortage of aircraft, Stolbow said the airline will be operating two flights less this winter to Mumbai and a flight less to New Delhi. Currently, the airline connects Finland with Mumbai six times a week and it has seven flights to New Delhi in a week. The carrier is in process of upgrading its fleet, which might get completed by 2017. It expects deliveries of five Airbus 330-340 out of the 15 ordered by next March, while deliveries of Airbus 350s will start from 2014. The total cost of upgrading aircraft is estimated to be around 700 million Euro.

Asked if last month's terror strike in Mumbai, impacted its operations, Stolbow said, "I have noticed more operators selling packages to Delhi than Mumbai. Though our Mumbai-Helsinki operations did not witness any decline." He, however, admitted that there has been cancellation of tickets and cited "technical reasons" for it. According to Stolbow, while the aviation industry witnessed a slowdown in passenger growth due to the global economic slowdown, the airline has witnessed a growth in its two-year old Indian operations.

Singapore Airlines will launch its inaugural flight to Riyadh on Sunday, 14 December 2008.

SQ454 will depart Singapore Changi Airport Terminal 2 at 1250hrs.
Arrival at Riyadh King Khalid International Airport Terminal 1 at 1820hrs (all times local).

SQ453 – will depart from Riyadh at 2015hrs,
Arrival at Singapore Changi Airport at 1105hrs the next day.

Both legs of the flight will operate via Dubai, UAE.

Singapore Airlines will use a Boeing 777-200 aircraft in a three class configuration. Click for seat map.

Travel times (in hours:minutes)
Singapore-Dubai 07:35
Layover 01:00
Dubai–Riyadh 01:55
Total 10:30

Customers on this new service can look forward to a variety of delightful dining choices. Customers traveling in First Class can try the Mutton in coriander gravy, a specially created dish by world-renowned chef Sanjeev Kapoor, a member of Singapore Airlines’ International Culinary Panel. Customers in all classes may also choose dishes from Singapore Airlines’ Popular Local Fare programme, including the famous Singapore chicken rice, among others.

Riyadh is the second city in Saudi Arabia to which Singapore Airlines operates, after Jeddah. The Airline will maintain its current three-times-weekly services to Jeddah, via Abu Dhabi.

As I had indicated in my earlier story, Kingfisher Airlines announced that it will pay three per cent agency commission to travel agents on gross fare, effective from today. The decision to pay three per cent commission was acknowledged in a fax sent to TAAI office last night. “The airline has also withdrawn Transaction Fee on tickets, which was introduced following the abolition of five per cent commission to travel agents on October 31, 2008,” stated an airline official. Current market conditions and the boycott threat by travel agents are believed to be the two main reasons for the airline agreeing to pay three per cent agency commission.

Earlier, Jet Airways had announced that it will be offering three per cent commission to travel agents on gross fare. The decision came after travel agents boycotted sales of Jet Airways and its Low-Cost Carrier (LCC) JetLite's tickets from December 4, 2008. Industry sources informed that the daily sales of Jet Airways and JetLite's tickets had dropped by 50 per cent, from nearly Rs 18 crore to Rs nine crore, after the boycott by travel agents.

Now the travel agents will target the foreign carriers, using the same, "one-at-a-time" approach. Only 60 of the the approximate 260-70 IATA carriers globally, service India. Of this 60, only 16 airlines have taken the decision to move to the zero commission regime. It is just a matter of time, before they too will revert back to a commission based regime.

I must compliment the travel agents' associations. They have executed a masterful strategy to perfection with superb effectiveness. They have managed to achieve in India the results, only their fellow Japanese agents have managed before; i.e. to reverse the airline’s decision on commission structures. In no other country, have travel agents achieved this result.

The recent development of airlines reversing their decision on zero commissions (ie, Jet and Kingfisher) implemented in November 2008 is a huge victory for the travel agent fraternity. The current agreement of 3% is a boost for agents. Previously they earned 5% on only the basic fare. Now, they will earn 3% on the gross fare, which includes fuel surcharges, which are among the highest components in the total airfare.

Just about 24 hours earlier, DIAL the operators of New Delhi Indira Gandhi International Airport (IGIA) were proudly drumming their success of zero impact of fog on the early morning of 10th December.

On 11th December, fifteen flights were delayed after a thick blanket of fog engulfed the capital, reducing the Runway Visibility Range (RVR) to 400 meters. This against an RVR of 850 meters on Wednesday when DIAL claimed 111 flight operations with zeo impact.

The airliners had to reschedule a number of flights to several domestic destinations, airport sources said. Also, a Spice Jet flight from Mumbai to Delhi was diverted to Jaipur.

The airport authorities had to initiate No Visibility Procedure at 6.54 a.m. as the RVR was very low, the sources said.

Contradicting earlier claims in a press release by the airport operator Delhi International Airport Ltd. (DIAL), about a dozen flights were delayed yesterday also due to the fog.

Meanwhile, the Met department has predicted more fog for the next two days.

I went back and checked the IGIA website and the press release has been removed.

Just received a release from Boeing.

Boeing announced today an updated schedule for its all-new 787 Dreamliner program that moves the commercial jet's first flight into the second quarter of 2009 and first delivery into the first quarter of 2010. The new schedule reflects the impact of disruption caused by the recent Machinists' strike along with the requirement to replace certain fasteners in early production airplanes.

Nut plate

"Our industry team has made progress with structural testing, systems hardware qualification, and production, but we must adjust our schedule for these two unexpected disruptions," said Boeing Commercial Airplanes President and CEO Scott Carson.

Prior to the strike that halted much of the company's commercial airplane work from early September into November, the 787 was to make its first flight late in the fourth quarter of 2008. First delivery was slated for the third quarter of 2009.

"We're laser focused on what needs to be done to prepare for first flight," said Pat Shanahan, 787 program vice president. "We will overcome this set of circumstances as we have others in the past, and we understand clearly what needs to be done moving forward."

Included in the preparations for first flight, Shanahan said, are finalizing and incorporating remaining engineering changes and completing systems testing, qualifications and certification.

Boeing is evaluating the specific impact of this delay on customer delivery dates and will provide customers with updated schedules once completed. The company is also determining any financial impact from this schedule change and will incorporate that into updated financial and overall airplane delivery guidance that will be released at a later date.

Jet Airways and Emirates Airline, have today announced their partnership plans spanning a reciprocal frequent flyer arrangement and unilateral code share agreement.

Effective December 15, 2008, the two airlines will launch a reciprocal frequent flyer arrangement whereby members of Jet Airways' JetPrivilege, India's largest frequent flyer programme, may earn and redeem miles across Emirates' rapidly-expanding international network, with the exception of flights between India and Dubai. Members of Emirates' Skywards programme may also earn and redeem miles on all Jet Airways flights operating within India.

The same day, Emirates will also commence a unilateral code share on Jet Airways' daily flights from Mumbai and New Delhi to and from Dubai, offering passengers enhanced connectivity and a range of services between India and Dubai.

Jet Airways operates daily services on the Mumbai/New Delhi-Dubai sectors with it's Airbus A330-200 and Boeing B737-800 aircraft respectively, with a two-class configuration: Première (Business) and Economy. Jet Airways' flights on these sectors will be identified with its '9W' code as well as with the Emirates 'EK' code.

According to Mr. Wolfgang Prock Schauer, Chief Executive Officer, Jet Airways: "Dubai is an important market for Jet Airways and there is significant demand from our customers to travel to and beyond Dubai. We are delighted to be able to get this exciting, new agreement up and running quickly for the benefit of our customers. The frequent flyer partnership with Emirates, particularly, is a mutually beneficial one, enabling JetPrivilege members to tap into Emirates' impressive international network while earning and redeeming frequent flyer miles, and vice-versa vis-à-vis Jet Airways' unmatched pan-India domestic network."

Mr. Salem Obaidalla, Emirates' Senior Vice President Commercial Operations, West Asia, Indian Ocean and Africa stated: "The agreements between Emirates and Jet represent a significant step forward in strengthening the relationship between our two airlines and between long-standing partners, India and the UAE. The pact will enable us to offer passengers enhanced flexibility and at the same time it will boost trade and commerce between the two countries."

Currently, Jet Airways also has code share agreements with Air Canada, American Airlines, ANA, Brussels Airlines, Etihad, Qantas and JetLite.

New Delhi Indira Gandhi International Airport (IGIA) met its first fog challenge on 10th December, with zero impact on flights. As per a DIAL release there were zero diversions, re-schedules, or cancellations.

As per procedure, Safeguard procedures were initiated when Runway Visual Range (RVR) fell below 1,500 meters, at 0458 local on morning of 10 December. Low Visibility Procedure (LVP) was implemented when RVR fell to 850 meters at 0703 hours. 3 hours and 42 minutes later the LVP was terminated when RVR improved to 1,200 meters.

Runway 28-10 was used for both landing and take-off operations.

The technical details for aviation buffs like me:

• Runway in use: 28/10 (Arrivals and Departures)
• Safeguard procedure initiated: 0458 hrs, 10/Dec/2008 (RVR 1500m)
• LVP implemented: 0703 hrs, 10/Dec/2008 (RVR 850 m)
• LVP terminated: 1045 hrs, 10/Dec/2008 (RVR 1200 m) (Duration: 3 hrs 42 min.)
• Safeguard procedure terminated: 1140 hrs, 10/Dec/2008 (RVR 1500m)
• Total flights operated during LVP: 111 (96 domestic and 15 international flights)
• Total Number of flights diverted: NIL
• Flights rescheduled today: NIL
• Flights cancelled today: NIL

Delhi International Airport Ltd. (DIAL) the airport operator has taken steps to minimise the impact of fog and low visibility on flight operations and enhance passenger experience :

• The temporary kerbside extension of Terminal 1B has been replaced with a permanent structure and provided with heating, Additional seating ,and flight information display system. An additional seating area is also being provided for those seeing off their friends and family.
• A parallel wing now houses more space for check – in and baggage X-ray for passengers. This extension has been added to the Low Cost Carrier Wing of Terminal 1B.
• DIAL has also deployed specially trained Customer Service Staff to provide assistance & information to passengers. Additional car parking facility has been provided at IGI airport.
• The domestic arrival terminal has also been renovated and expanded. A portion of the renovated area has already been opened along with a large canopy for friends and family. In addition separate exit routes have been provided for the benefit of passengers availing pre-paid taxis.
• A brand new wing in the Security Hold Area of Terminal 1B was commissioned. The new seating area has 150 seats which are sufficient to cater to the load of one complete flight Additional F&B outlets have opened across the passenger terminals. These outlets are operated by leading F&B brands.
• An increased number of payphones and coin operated booths have been added at IGI Airport to help passengers.
• 55 aircraft parking bays have been provided with CAT III compatible lighting systems. Additions carried out over the last year have provided additional number taxi routings to smoothen aircraft movement and prioritize the movement of CAT III enabled aircraft.
• IGI Airport has augmented it’s call centre (+91 11 2566-1080) which will share the updated flight information and airlines’ contacts numbers.
• Special booklets with information on fog and do’s and don’ts for passengers and airline numbers are also being circulated.

Jet Airways will lease out aircraft that have been rendered surplus following the route rationalisation and cost pruning.

The airline recently entered into a Wet-Lease Agreement with Gulf Air Company G S C, Bahrain, for leasing out two A330-200 aircraft for four months.

It has also entered into similar agreement with THY Turkish Airlines Inc, for leasing out three B777-300 ER aircraft for six months.

Under wet lease agreement the operational control and maintenance responsibility will remain with Jet Airways. The aircraft will remain on Indian registry and will be operated with Jet Airways crews.

As per my earlier analysis, Jet Airways will now be short of aircraft to sustain their Bangalore Brussels flight, and so Bangalore will loose this flight.

I can only wish that Jet Airways CEO Mr. Wolfgang Prock-Schauer and the senior management team at Jet, give Bangalore the level of loyalty they are receiving in return, and not surrender the skies to the foreign carriers.

Agreement provides Delta with more than $2 billion in combined incremental liquidity and contract enhancements

Agreement to result in expanded opportunities for American Express across Co-brand credit card, Membership Rewards, merchant services and travel

Delta Air Lines and American Express announced a multi-year extension of their exclusive Co-brand Credit Card partnerships, which commenced in 1996.

The companies also agreed to extensions of their other partnership arrangements, including American Express Membership Rewards, merchant acceptance and travel.

As part of the broad-based partnership agreement, Delta will receive an immediate $1 billion boost to its liquidity from a purchase of SkyMiles. Delta expects to receive an additional $1 billion from contract improvements through 2010.

In return, American Express will be able to grow the value of its Co-brand Cards and the Membership Rewards program. American Express Cardmembers will be offered expanded options for booking travel on the world’s largest airline. In addition, American Express will have the opportunity to increase merchant acceptance in more places in the Midwest region of the United States.

In late 2009, Delta plans to merge Northwest WorldPerks with SkyMiles to create the world’s premier airline loyalty program and a consolidated Co-brand Credit Card program. Northwest WorldPerks Co-brand Cardholders can continue to earn WorldPerks miles just as they do today on their U.S. Bank issued cards, and all WorldPerks miles earned prior to integration will be safe and transferred in full to Delta SkyMiles when the two programs are integrated.

The International Air Transport Association (IATA) painted a grim forecast for the airline industry as it announced its forecast for 2009 showing an industry loss of US$2.5 billion. All regions, except the US, are expected to report larger losses in 2009 than in 2008.

Forecast highlights are:

• Industry revenues are expected to decline to US$501 billion. This a fall of US$35 billion from the US$536 billion in revenues forecasted for 2008. This drop in revenues is the first since the two consecutive years of decline in 2001 and 2002.
• Yields will decline by 3.0% (5.3% when adjusted for exchange rates and inflation).
• Passenger traffic is expected to decline by 3% following growth of 2% in 2008. This is the first decline in passenger traffic since the 2.7% drop in 2001.
• Cargo traffic is expected to decline by 5%, following a drop of 1.5% in 2008. Prior to 2008 the last time that cargo declined was in 2001 when a 6% drop was recorded.
• The 2009 oil price is expected to average US$60 per barrel (Brent) for a total bill of US$142 billion. This is US$32 billion lower than in 2008 when oil averaged US$100 per barrel (Brent).

Giovanni Bisignani, IATA’s Director General and CEO says

“The outlook is bleak. The chronic industry crisis will continue into 2009 with US$2.5 billion in losses. We face the worst revenue environment in 50 years,”

IATA also updated its forecast for 2008 to a loss of US$5.0 billion. This is slightly improved from the US$5.2 billion loss projected in the Association’s September forecast primarily as a result of the rapid decline in fuel prices.

The reduction in industry losses from 2008 to 2009 is primarily due to a shift in the results of North American carriers. Carriers in this region were hardest hit by high fuel prices with very limited hedging and are expected to post the largest industry losses for 2008 at US$3.9 billion.

An early pre-emptive action by a 10% domestic capacity reduction in response to the fuel crisis has given the region’s carriers a head-start in combating the recession-led fall in demand. The lack of hedging is now allowing the region’s carriers to take full advantage of rapidly declining spot fuel prices. As a result, North American carriers are expected to post a small profit of US$300 million in 2009, which represents a profit margin of less than 1%.

All other regions will show losses:

• Asia-Pacific carriers will see losses more than double from the US$500 million in 2008 to US$1.1 billion in 2009. With 45% of the global cargo market, the region’s carriers will be disproportionately impacted by the expected 5% drop in global cargo markets next year. The region’s largest market - Japan - is already in recession. And its two main growth markets - China and India - are expected to deliver a major shift in performance. Chinese growth will slow as a result of the drop-off in exports. India’s carriers, which are already struggling with high taxes and insufficient infrastructure, can expect a drop in demand following on from the tragic terror incidents in November. Indian carriers which represent just 2% of the global market are expected to contribute almost $2 billion of the $5 billion losses forecast for this year.
  
• Losses for European carriers will increase ten-fold to US$1 billion. Europe’s main economies are already in recession. Hedging has locked in high fuel prices for many of the region’s carriers in US dollar terms, and the weakened Euro is exaggerating the impact.
• Middle Eastern airlines will see losses double to US$200 million. The challenge for the region will be to match capacity to demand as fleets expand and traffic slows - particularly for long-haul connections.
• Latin American carriers will see losses double to US$200 million. Strong commodity demand that has driven the region’s growth has been severely curtailed in the current economic crisis. The downturn in the US economy is hitting the region hard.
• African airlines will see losses of US$300 million continue. The region’s carriers face strong competition. Defending market-share will be the main challenge.

Bisignani made special note of the continuing contraction of air cargo traffic that started in June 2008, saying

“Air cargo comprises 35% of value of goods traded internationally. The 7.9% decline in October is a clear indication that the worst is yet to come - for airlines and the slowing global economy,”

“Airlines have done a remarkable job of restructuring themselves since 2001. Non-fuel unit costs are down 13%. Fuel efficiency has improved by 19%. And sales and marketing unit costs have come down by 13%. IATA made a significant contribution to this restructuring. In 2008 our fuel campaign helped airlines to save US$5 billion, equal to 14.8 million tonnes of CO2. And our work with monopoly suppliers yielded saving of US$2.8 billion. But the ferocity of the economic crisis has overshadowed these gains and airlines are struggling to match capacity with the expected 3% drop in passenger demand for 2009. The industry remains sick. And it will take changes beyond the control of airlines to navigate back into profitable territory.”

Bisignani outlined an industry action plan for 2009 saying

“Labour must understand that jobs will disappear when costs don’t come down. Industry partners must contribute to efficiency gains. And governments must stop crazy taxation, fix the infrastructure, give airlines normal commercial freedoms and effectively regulate monopoly suppliers.”

British Airways announced today, it is making significant changes to its in-flight entertainment brand High Life with an upgraded system offering customers a greater choice and more control over their entertainment on board.

The system, known as audio and video on demand, or AVOD, is a huge step forward for the airline boasting the ability to run over 200 entertainment choices, with 100 films and TV programmes, 50 CDs and 20 games as well as radio channels and audio books.

Using on-screen menus, at the touch of a button, customers will be able to select their entertainment as and when they choose. They can pause or stop the programming whenever they like and even fast-forward and rewind, preventing them from missing crucial parts of the programme when food is served or when they want to stretch their legs.

There will be a greater selection of the latest blockbuster movies, a movie library with classics and all time movie greats, foreign language films, and a dedicated 'Skyflyers Kids' section with films, TV programmes, music and stories especially for younger customers under the age of 12.

For those passengers more interested in an auditory experience, the system enables them to compile a customised list of CD tracks from the wide selection on-board or choose from audio books ranging in topic from fiction to educational titles.

There will also be 20 interactive games such as bowling, roulette, and 'Who Wants to be a Millionaire'. These are available for customers in First, Club World and World Traveller Plus.

A 'Your Journey' section has been developed to enable travellers to browse through screens detailing the on-board service, in-flight retail outlet 'Highlife Shop!', tax-free shopping promotions and arrivals videos.

The system is currently being rolled out across the airline's long-haul fleet.

Thick fog over Hyderabad early today, hit operations at the Rajiv Gandhi International Airport, Hyderabad.

The meteorological department attributed the thick fog to a “rare phenomenon” in Hyderabad.

Mr. A. Viswanath, chief commercial officer of GMR Hyderabad International Airport Limited (GHIAL), which operates the airport, said, 19 departing flights and 10 arriving flights were delayed. An additional 6 scheduled flights were diverted to alternate airports, and Paramount Airways canceled its flight into and out of Hyderabad.

Deutsche Lufthansa AG has further reduced its fuel surcharge on its flights as crude oil and kerosene prices have decreased.

The fuel surcharge on domestic German and intra-European routes will lower by 3 euros to 21 euros per flight segment. On long-haul routes the corresponding fuel surcharge will be decreased by 10 euros to 82 euros per flight segment. The reduction will apply to all Lufthansa tickets issued on or after 16 December 2008.

Lufthansa says it will continually monitor oil prices and will make any future adjustments to the fuel surcharge dependent on further trends in the price of jet fuel.

For more information visit Lufthansa website www.lufthansa.com

The current slowing economy needs an extra large dose of stimulus to bring it back on track. Unlike previous slowdowns, this time a 360 degree effort is required to prime the pump and beat the "FUD" factor (Fear Uncertainty Doubt).

The government has to do it's part and focus on areas like infrastructure and other plan expenditure, the companies have to do their share, improve efficiency and reduce prices, and this time around, we the consumers are also going to have to do our bit, spending a bit more than we are comfortable with, even though we face FUD.

In the aviation sector the government has done a little bit like extending credit periods and partially reducing some taxes on aviation turbine fuel (ATF) , but it needs to bite the bullet of populism, and place ATF in the declared list, to ensure a uniform 4% tax across the nation. Government has to resist the political need to distribute populist largess, in the face of elections that are looming around the corner.

I doubt, the airline companies have fully appreciated the fact, that survival, and only then, growth, will be realized, if there is more revenue and with it, potentially greater profits. Selling more products or services is a challenge in the best of times, but in the current economic environment, regardless of business segment, it is a monumental challenge, most especially if one imagines maintaining current price points.

As consumers, all around us, we are seeing prices falling. Be it cars, trucks, two-wheelers, electronics, industrial goods, clothing, even consumer consumables like toiletries, cosmetics, and higher-end restaurants. The exceptions being the two major "F"s - fuel and food, and airline ticket prices, at least in India.

Following the lead of the private counterparts in the car, two-wheeler, who have begun announcing price cutting deals, and have even passed on the savings of the 4% reduction in Central VAT (Cenvat) to customers, the airline companies too have to pitch in and bring down their fares drastically, if they are to return passengers and cargo to the skies, until now, lost to road and rail.

Instead of learning from the global airline industry, the Indian airline industry seems to be playing the same goodwill loosing strategy as that of the Indian real estate industry, who continues to blame high interest rates as the reason for their lot in life, just as airlines continue to whip the fuel demon.

We keep hearing from airlines that fuel represents about 40%~50% of their total operating costs, and that taxation on ATF must be reduced. Most passengers agree on both statements. But, when fuel prices have retreated by almost 50% from a high of Rs. 71 per litre to Rs. 38 per litre, and yet the fuel surcharge levied by airlines is brought down by a paltry 13%, that too at the behest of government "suggestions", the airlines will have to face the cynicism and a complete lack of sympathy of the general populace, and may be, even some of the ministers.

In any organisation, may be with the exception of government, and some of most the iconic luxury brands, the first response to any slowdown is to cut costs, improve efficiencies, and offer customers a better price . The cost cutting could be anything from nominal to extreme, but the more the better.

India, and Indians, are renowned as one the most cost-conscious buyers on the planet. Give them a good deal, and they will flock to you. Keep prices high, and, you better have a big wad of cash sitting in the safe for your fixed costs, for you are going to be one very lonely organisation; and that is the downward spiral to bankruptcy.

On Jan. 7, 2009, Houston, Texas based Continental Airlines will partner with Boeing to test a 737-800 passenger jet using a biofuel and traditional jet fuel mixture. The biofuel is to be made from algae and jatropha plants.

Air New Zealand and Boeing were to test bio-fuels on a Boeing 747 Jumbo jet, using UOP (a Honeywell company) technology, on Dec 3, but that test has been delayed to the crash of the airline's A320 off the French coast.

Regular readers of Bangalore Aviation are aware of the inordinately high costs of aviation turbine fuel in India, and the havoc it has played in the Indian airline industry. (Read fuel related articles). At the same time, India has extensive commitment to jatropha and much acreage is under cultivation.

Given the high dependence of imported fuel, and its potential for economic havoc, the government should leverage Air India and its strengths with Boeing and Airbus, to pursue an aggressive policy to encourage usage of bio-fuel almost to the point of forcing it. The economic benefits alone justify it. The indigenous and green aspects of such a policy will be the icing on top of the cake.

SpiceJet has announced the re-launch of its services to Kochi, from New Delhi and Mumbai, from December 15.

The starting fare will be Rs.1,350 (Kochi-Delhi/Delhi-Kochi) and Rs.750 (Kochi-Mumbai/Mumbai-Kochi). The seats are available for immediate booking. The SpiceJet call center numbers are 1800 180 3333/987 180 3333.

Flight SG 101 will start from New Delhi at 6 a.m. and reach Kochi at 10.55 a.m. (via Mumbai). In the return direction, flight SG 112 will start from Kochi at 11.30 a.m. and reach New Delhi at 3.55 p.m.

The direct flight from Mumbai will start from Mumbai at 9.05 a.m. and reach Kochi at 10.55 a.m.

In the return direction, the flight will start at 11.30 a.m. and reach Mumbai at 1.20 p.m., the release said.

CNN is reporting a Boeing F/A-18 Hornet fighter attack jet crashed into a residential neighborhood in San Diego, California, on Monday as it tried to land at Marine Corps Air Station Miramar.

The pilot ejected before the jet, an F/A-18, went down two miles from the airfield about 11:55 PT (19:55GMT), Federal Aviation Administration spokesman Ian Gregor said.

Photo : Boeing photo

As per PTI, as part of the ongoing initiatives to enhance Bengaluru International Airport's (BIA) infrastructure, a cargo village, the first of its kind, was inaugurated at the airport on Monday.

The facility, built at a cost of Rs 12 crore and completed in 10 months, would house 120 freight forwarders and 80 custom house agents, a release said.

The cargo village boasts of essential facilities for warehouse, such as banks, conference rooms, business centre help desk, staff canteen and parking facilities for 80 trucks.

Spread over 11 acres of land with adequate provision for future expansion facility, the cargo village located near the cargo terminal is expected to strengthen the city's position as a trade and commercial hub while ensuring faster clearance of import and export consignments from the cargo terminals at the airport, it said.

BIAL's current facilities included two operational cargo terminals, built and operated by Menzies Aviation-Bobba ,and Air India-SATS Joint Venture. The former has initial capacity to handle 150.000 metric tons for cargo while the later has two-floor warehouse with capacity of 200,000 metric tons.

Till date the airport has handled 70,905 tons of cargo. Bangalore's current annual cargo requirement stands at 170,000 tons, the release said.

We, in Bangalore, have been debating the terminal at the new Bengaluru International Airport (BIA).

I came across a very interesting story entitled What happens when an airline designs an airport? It is most definitely worth a read.

Airbus reported completion of the largest civil aircraft deal of the year, a 51-plane order from Abu Dhabi based Etihad Airways worth over $10 billion.

The order includes 6 A380 superjumbo, 25 A350XWB and 20 single-aisle A320 aircraft.

The order was first announced at the Farnborough air show in July. However, Etihad's financial woes, and speculation of a merger with fellow United Arab Emirates carrier, Dubai based Emirates, led to months of uncertainty on the order.

The order was finally confirmed last week and made it into the official Airbus backlog, as reported by Reuters on Friday.

Airbus will produce some composite parts in the emirate as part of an industrial deal with Abu Dhabi sovereign fund Mubadala Development.

Airbus has net orders of 756 aircraft this year, against a target of 850 plane sales in 2008.

Rival, Boeing, which also won a 45-plane order from Etihad this year, has reported 646 gross orders and 640 net orders for 2008 as of Dec. 2.

Airbus also said it had delivered 46 planes in November, bringing deliveries so far this year to 437, against a targeted 470 deliveries in 2008.

The travel agents appear to have won Round 1 of the "Zero Commission" battle. Less than four days after the agents decided to boycott Jet Airways and low cost subsidiary JetLite, Jet Airways announced restoration of the travel agents' commissions.

As per the release from Jet Airways,

Recognizing the difficult economic environment for the travel industry as a whole, Jet Airways engaged in a constructive and intensive dialogue with the Travel Agency Associations to find solutions acceptable to the airline and the partners in the travel trade. As a result of this dialogue Jet Airways has agreed to pay three percent commission on gross fare (defined as basic fare plus fuel surcharge) of domestic and international tickets sold in India. The commission scheme will come into effect immediately and will replace the transaction fee model recently introduced.

JetLite will continue with the practice of transaction fee model consistent with the practice adopted by the other Low Cost Carriers (LCC’s).

As I had indicated in my earlier story, the travel agents will next focus on Kingfisher Airlines. Expect a similar announcement from Kingfisher very soon. The big question will be Air India, since Air India controls the bank settlements system that agents rely on to book tickets and settle accounts with all the airlines.

As the Chinese say, may we live in interesting times.

December 3, 2008 update

BMTC is no longer booking via Redbus and Viaworld. For online booking please visit www.ticketvala.com.

If you find this article useful, before jumping off the blog, I will appreciate if you can leave a comment or your thanks. Also consider subscribing to the blog via RSS or choose to receive e-mail updates when new articles are posted. See the right side of this page.

The Karnataka State Tourism Development Coporation (KSTDC) is now the third taxi operator at Bengaluru International Airport (BIA). According to Vinay Luthra, managing director, KSTDC, 100 new taxis, mainly Mahindra Logans and and Tata Indigos, have commenced operations.

At the same time, BMTC has done some route rationalisation and changes in bus stop locations to accommodate the Metro construction.



I am summarising the contact information for all the various taxi and bus services to BIA for your ready reference.

Bus Service
Without a doubt, still the most value efficient airport service are the BMTC, Vayu Vajra (air-conditioned Volvo) and Suvarna (non-AC) bus service. Both services are known for their 24x7 service, comfort, efficiency, and safety. At an average fare (to/from City Centre) of Rs.150 ($3.10), for the AC and Rs.80 ($1.70) for non AC, they are unbeatable.

BMTC has also tied up with Cel Cabs and SGL for Home Connect taxi service which offers a door pick-up/drop-off, to the nearest Vayu Vajra/Suvarna bus stop for an additional Rs.100 ($2).

For details on service, routes, and timings, visit the BMTC information website.

For the Home Connect taxi service call +91 (80) 6060-9090 (Cel) or +91 (80) 4299-4399 (SGL).

Individual Taxi Service
Next in the list are the three paid taxi service operators listed in alphabetical order. These are available ad-hoc from the airport terminal, but require an advance booking of 2 hours, from the city. All services are air-conditioned, GPS equipped, and charge Rs. 15/- per kilometer. A trip to/from the city centre will cost you about Rs.650 (US$14).

Easy Cab. Call them on +91 (80) 4343-4343 or book online at www.easycabs.com.
KSTDC. Call them on +91 (80) 4242-5555.
Meru Cab. Call them on +91 (80) 4422-4422 or book online at www.merucabs.com.

Shared Taxi Service
Next are the shared taxi service operators. Airlift and Zoom. These services require an advance booking of about 5~6 hours. Personally, I have had a decent experience with Airlift. I have no experience with Zoom.

A trip on Airlift will cost you Rs.340 ($7). A pick-up or drop-off at your doorstep will add Rs.100 ($2) to the tab.

Airlift. Call them on +91 (80) 4052-8888 or visit www.airliftonline.com
Zoom Airport Express. Call them on +91 (80) 6561-1999 or visit www.zoomairportexpress.com.

For those wanting to use autorickshaws or inter-city buses, there is a transit centre at the trumpet interchange. BMTC runs a shuttle bus from this transit centre to the airport terminal.

For an overview of parking at, and other transport options to/from, Bengaluru International Airport, please read my previous article. I hope you will find it helpful.

Please post your bus or taxi travel experience via a comment.

The government owned Air India has been undergoing a steady decline ever since it was nationalised.

Air India faces a dilemma. It is owned by the Government of India, and all government functionaries, from Members of Parliament (MPs) to the lowest in the hierarchy of government employees, treat the airline as their personal fiefdom. The management of Air India, also fellow government employees, is, for reasons well known, unwilling or unable to take firm decisions.

I read this story from PTI with concern

Two CPI(M) MPs from Kerala delayed an Air India flight to Thiruvananthapuram by almost four hours when they refused to deboard the aircraft which developed a technical problem, Air India sources said here today.

The Delhi-Kochi-Thiruavananthapuram flight was scheduled to depart from Indira Gandhi airport at 1730 hours yesterday but was rescheduled to 1830 hours when the problem with its engine was found, Air India officials said.

As the technical problem would have taken sometime to be corrected, the officials said the airlines arranged for an alternate aircraft and brought the plane with the technical snag from the remote bay to the parking bay.

Passengers, numbering 144, and baggage were then transfered to new aircraft but the MPs -- Varkala Radhakrishnan and K S Manoj -- refused to deboard.

The MPs spoke to the office of Civil Aviation Minister Praful Patel and top Air India officials but decided to sit on a dharna till the airlines apologies for the inconvenience, the airlines sources said.

However, as the MPs continued with their protest, the airlines officials contacted higher authorities in the ministry and with their concurrence decided to fly to its destination without the MPs.

"Because of the undue delay and their refusal to deboard the plane, the flight took off at 2215 hours without them," sources said.

Both Radhakrishnan and Manoj were not available for comments.

My simple question. Why in the world did the airline wait for 4 hours and put all its other 142 fare paying passengers to inconvenience, before doing what it did ? i.e. take off without them.

Post 26/11, the nation is expecting a lot more responsibility from its elected representatives, and for these two MPs, that too from the Communist Party of India (Marxist), a party that claims it most represents the common person, to behave in what could be equated with a child's temper tantrum, is just not acceptable. They deserve a spanking.

If I was in the management, not only would I have made the replacement aircraft leave on time, but I would have towed the faulty aircraft to a remote location, and left it there without power, and without a ladder. Let these two self-important MPs spend the night on the plane without food and water.

As per a Bloomberg article, in the face of continuing declines in global air travel,

British Airways Plc, Europe’s third- largest airline, will cut more than 100 jobs at London’s Gatwick airport as it reduces services there by 15 percent from mid-2009.

The number of aircraft based at the airport will be reduced to 37 from 41, the Harmondsworth, England-based airline said today in an e-mailed statement. The cuts to ground operations staffing will be on a voluntary basis, according to the statement.

The story also refers to the ongoing merger discussions between British Airways and fellow OneWorld partner Qantas.

In parallel I read about a PTI report about Malaysian Airlines seeking global partnerships. As per the report

Malaysia’s national carrier, Malaysia Airlines (MAS), is seeking partners to grow further but has not commented on reports that it is seeking a merger with British Airways and Australia’s Qantas. “We are in talks with a number of airlines on collaborating and creating synergies for growth. This ranges from Joint Ventures and code shares to interlining partnerships. For example, we have signed a memorandum of understanding with Qantas on a joint venture on maintenance, repair and overhaul,” Idris Jala, Managing Director and Chief Executive Officer, MAS said in a statement day before yesterday.

In Malaysian, Qantas will get access to the lucrative ASEAN, and intra-Asian routes, and will fulfill it's goals of becoming a truly global carrier. A Malaysian merger or partnership with also give the behemoth base level access to the ultra-large and very under-utilised Kuala Lumpur International Airport (KLIA). KLIA does have the potential to become a formidable competitor to Singapore's Changi Airport, a purpose for which former Malaysian Prime Minister Dr. Mahathir Mohammed championed its mammoth construction. It just needs the right amount of traffic, the amount a global carrier British Airways-Qantas-Malaysian will give.

PTI reports, Jet Airways' unlisted subsidiary, low-cost airline JetLite, had incurred a loss after tax of Rs 273 crore ($54.6 million) for the second quarter ended September 30, which made the accumulated losses of the erstwhile Sahara Airlines exceed its net worth.

While declaring its results of the second quarter ended September 30, Jet Airways had said the subsidiary had "accumulated losses exceeding its net worth and its financial statements have been prepared on going concern basis".

According to reliable sources, JetLite's revenues for the said quarter were at Rs 429.3 crore against Rs 366.2 crore in the corresponding period last fiscal.

Jetlite's loss after tax increased over three-fold for the second quarter to Rs 273 crore from Rs 86.27 crore in the year-ago period.

Jet Airways had also said in October that the parent company planned to support the growth plans of the said subsidiary based on its assets, growth model and other factors.

During the quarter under review, Jetlite had a seat factor of 61.2 per cent against 68 per cent in the corresponding quarter last fiscal.

British Airways commenced operations to Rajiv Gandhi International Airport (RGIA),
Hyderabad, today.

The new route provides a direct flight from Hyderabad to London Heathrow Terminal 5 and is aimed at the IT segment of Hyderabad, with its connections to 22 destinations in North America.

British Airways will operate five weekly Boeing 777-200ER non-stop flights between Hyderabad and London, with a three long-haul cabins on the route: Club World (business class), World Traveller Plus (premium economy class) and World Traveller (economy class).

As per an SPEEA release, refusing to respond to union proposals, without notice The Boeing Company today (Dec. 5) unilaterally announced a "recess" to contract negotiations with the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001. The union learned of the "recess" from a company email to employees.

"The company has not responded to our proposals and has now abandoned negotiations without notifying our negotiations team or suggesting a date to resume," said Ray Goforth, SPEEA executive director. "This is the latest example of how little this company values Wichita engineers."

The two sides started main table negotiations Nov. 17 to negotiate new contracts for 700 engineers at the Wichita Integrated Defense System (IDS) plant. This week, union leaders started a "work-to-rule" campaign for engineers and technical workers. The first step is asking engineers in Wichita to decline all voluntary overtime and voluntary work during the upcoming holidays. The "work-to-rule" is starting in Kansas and could eventually include aerospace engineers and technical workers in Washington, Oregon, California and Utah.

Work at Wichita includes Italian and Japanese 767 tankers, E-4B (747 Airborne Operations Center) and E-737 Australian Wedgetail (Airborne Early Warning and Control Aircraft). The Italian tankers and Wedgetail are already four years behind schedule.

Boeing's most recent offer includes only a single wage increase in the first year of the three-year contract. No money is guaranteed to individual employees. No increases are offered for years 2 and 3. Boeing wants to eliminate the pension for new engineers and switch employees to an HMO medical plan that increases costs while providing less coverage.

"The Boeing offer failed to meet our lowest expectations," said Goforth. "Delivery of critical military projects depends upon Wichita SPEEA members. Boeing's disrespect for Wichita is unfathomable."

Boeing and SPEEA recently settled contracts for 20,400 employees with 20 percent wage increases over four years.

In October, Boeing IDS announced third-quarter profits of $845 million, up 4 percent from 2007.

A local of the International Federation of Professional and Technical Engineers (IFPTE), SPEEA represents 24,600 aerospace professionals at Boeing, Spirit AeroSystems in Wichita, Triumph Composite Systems, Inc., in Spokane, Wash., and BAE Systems, Inc., in Irving, Texas.

SOURCE: Society of Professional Engineering Employees in Aerospace