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karatecatman Guest
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Posted: Sat Mar 10, 2007 12:27 pm Post subject: In for the long haul --- flying abroad |
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www.financialexpress.com/fe_full_story.php?content_id=157315
In for the long haul
Private air carriers are increasingly testing their toes in international waters on the strength of their domestic position
SHIJITH PK
Posted online: Saturday, March 10, 2007 at 0111 hours IST
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Flying abroad has never been so good.
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But it hasn’t been a rosy picture with Jet posting losses of US$ 24.2 million in the second quarter this year for its international operations. That however, hasn’t stopped the carrier from going ahead with its plans—10 Boeing 777s and 10 Airbus 330s are being added to its international fleet this year. What’s more airlines like Kingfisher have placed orders for 20 wide-bodied aircraft , with five Airbus A-320s and A-340s being delivered this year.
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The basis for these international operations though will be the strong domestic market in India. In 2005-06, domestic passenger traffic in India was around 25.5 million, up 27.9% from the previous year and is expected to grow at rates of 25-30% to be 60 million passengers in 2010, according to Capa. Says A. Raghunathan, CFO, Kingfisher Airlines, “We made our plans to go international after what we had achieved internally. It was a natural progression for us.”
Government regulations stipulate that a private carrier has to have operated 5 years domestically and have a minimum fleet size of 20 aircraft, to be allowed to fly scheduled international flights, conditions that presently only Air Sahara and Jet Airways meet. ..These requirements could be relaxed this year, with speculation that the minimum experience will be shortened to 3 years. If this were the case, Air Deccan would be immediately eligible and Kingfisher could be operating flights out of India in 2008, .
In case the changes don’t come through, Kingfisher already has a back up plan with the formation of a US-based subsidiary Kingfisher International that would operate routes to India.
One sector whose opening up is eagerly waited for by private airlines is the Persian Gulf. This is currently reserved for the two government-owned carriers with the monopoly expected to end this year. Kingfisher ... would instead innnovate and operate on routes that aren’t being served at present, for example, the San Francisco-Bangalore route.
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the_380 Member
Joined: 19 Dec 2006 Posts: 2329 Location: Mumbai, India
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Posted: Sat Mar 10, 2007 1:33 pm Post subject: |
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Media does make the airlines sound soooooooooo good _________________ http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! |
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avbuff Member
Joined: 22 Dec 2006 Posts: 5031
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Posted: Sat Mar 10, 2007 3:56 pm Post subject: |
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would love to see 9W in the middle east !!!! |
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Nimish Member
Joined: 16 Dec 2006 Posts: 9757 Location: Bangalore, India
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Posted: Sat Mar 10, 2007 3:59 pm Post subject: |
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I think it's time to open up the middle east sector to all Indian carriers, and stop this silly notion of protecting AI & IC. All that's happening is that EK/QR/GF etc are growing their services at the cost of the Indian aviation industry. |
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avbuff Member
Joined: 22 Dec 2006 Posts: 5031
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Posted: Sat Mar 10, 2007 4:07 pm Post subject: |
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very true nimish ...
EK -- 8 destinations in india all served daily and mumbai almost triple daily
QR -- 6 destinations from march 24
G9 -- 7 destinations from april 3
GF -- 7 destinations from BAH and MCT
WY -- 6 destinations
and even after giving AI & IC the gulf sector all they do is operate bi or tri weekly services to all places (barring DXB) , and offering a f**king hopeless products on all the routes |
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VABBy Member
Joined: 19 Dec 2006 Posts: 823 Location: DEL
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Posted: Sun Mar 11, 2007 6:58 pm Post subject: |
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Boss just day before yesterday i read in HT Mint that KF will lease its all widebody jets if its not going to get the permission to fly international. And i guess no matter hw much intense lobbying VM is doing i still have doubts that the 5 year limit would be relaxed. _________________ Expeditors- You'd be surprised how far we will go for you www.expeditors.com |
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Aseem Member
Joined: 15 Dec 2006 Posts: 2841 Location: YYZ
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Posted: Sun Mar 11, 2007 8:00 pm Post subject: |
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What is that overarching factor that VM can't buy. Is it that 9W wants an year lead before others can follow.
rgds
VT-ASJ _________________ [url=http://openflights.org/user/aseemsjohri]
[/url] |
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the_380 Member
Joined: 19 Dec 2006 Posts: 2329 Location: Mumbai, India
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Posted: Sun Mar 11, 2007 8:53 pm Post subject: |
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Im sure 9W would be pressing the govt for a negative on reducing the 5 year term period...because then competition would increase _________________ http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! |
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Aseem Member
Joined: 15 Dec 2006 Posts: 2841 Location: YYZ
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Posted: Sun Mar 11, 2007 9:19 pm Post subject: |
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Is it possible that IT ties up with S2 on short term and fly abroad till they themselves get to fly. That shall bring some money to cash strapped S2. _________________ [url=http://openflights.org/user/aseemsjohri]
[/url] |
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the_380 Member
Joined: 19 Dec 2006 Posts: 2329 Location: Mumbai, India
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Posted: Sun Mar 11, 2007 10:00 pm Post subject: |
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Aseem wrote: | Is it possible that IT ties up with S2 on short term and fly abroad till they themselves get to fly. That shall bring some money to cash strapped S2. |
Well i dont know if thats legally permitted or not but im guessing there will be a lot of oppositions from the other airlines for sure _________________ http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! |
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avbuff Member
Joined: 22 Dec 2006 Posts: 5031
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Posted: Sun Mar 11, 2007 10:17 pm Post subject: |
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Aseem wrote: | Is it possible that IT ties up with S2 on short term and fly abroad till they themselves get to fly. That shall bring some money to cash strapped S2. |
not a bad idea |
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tayaramecanici Member
Joined: 03 Jan 2007 Posts: 648
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Posted: Sun Mar 11, 2007 10:57 pm Post subject: |
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Aseem wrote: | Is it possible that IT ties up with S2 on short term and fly abroad till they themselves get to fly. That shall bring some money to cash strapped S2. |
IT can fly on S2 AOC but then it has to develop the infrastructure from scratch on EU dest esp. The cost and time of creating this and paying S2 the royalty has to be profitable as compared to waiting that period. Such a deal will involve guarantees for honouring the contract and these add further to the cost.
The cost - benefit of such a move within less than 2 yrs of being eligible to fly intl is very diff to justify. |
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stealthpilot Member
Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB
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Posted: Mon Mar 12, 2007 7:26 am Post subject: |
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Aseem wrote: | Is it possible that IT ties up with S2 on short term and fly abroad till they themselves get to fly. That shall bring some money to cash strapped S2. |
I think if they receive the a/c and can’t fly them internationally they should seriously consider the option of leasing them out (wet lease, even better)
I don't have any data but i'm sure there is a market for a330 and maybe a345 out there. _________________ eP007 |
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VABBy Member
Joined: 19 Dec 2006 Posts: 823 Location: DEL
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Posted: Mon Mar 12, 2007 11:32 am Post subject: |
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stealthpilot wrote: | I don't have any data but i'm sure there is a market for a330 and maybe a345 out there. |
offcourse mate there is a plenty demand for the widebodys esp the A330 and B777. Bt i am sure A345 would also find heaps of takers. Maybe S2 can lease one of these widebody jets are start their very much fantasized CAN service _________________ Expeditors- You'd be surprised how far we will go for you www.expeditors.com |
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Nimish Member
Joined: 16 Dec 2006 Posts: 9757 Location: Bangalore, India
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Posted: Mon Mar 12, 2007 11:41 am Post subject: |
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the_380 wrote: | Im sure 9W would be pressing the govt for a negative on reducing the 5 year term period...because then competition would increase |
Not just 9W, AI/IC will also be positioning to keep the 5 year rule in place, and especially for the gulf sectors.
This is rather unfortunate, as we definitely need to encourage our Indian carriers to serve and take the lead in the India-USA/Europe market, rather than the current European/Gulf carriers who are milking this market for what it's worth!
I hope that the GoI scraps both the 5 year rule (or makes it 3 years) and the restriction on the gulf sector. That will truly set the cat amongst the pigeons |
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