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In for the long haul --- flying abroad

 
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karatecatman
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PostPosted: Sat Mar 10, 2007 12:27 pm    Post subject: In for the long haul --- flying abroad Reply with quote

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


Quotes:

Flying abroad has never been so good.

...
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 Rolling Eyes , with five Airbus A-320s Rolling Eyes and A-340s being delivered this year.
...
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
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PostPosted: Sat Mar 10, 2007 1:33 pm    Post subject: Reply with quote

Media does make the airlines sound soooooooooo good Very Happy Razz Laughing
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avbuff
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PostPosted: Sat Mar 10, 2007 3:56 pm    Post subject: Reply with quote

would love to see 9W in the middle east !!!!
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Nimish
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PostPosted: Sat Mar 10, 2007 3:59 pm    Post subject: Reply with quote

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
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PostPosted: Sat Mar 10, 2007 4:07 pm    Post subject: Reply with quote

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
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PostPosted: Sun Mar 11, 2007 6:58 pm    Post subject: Reply with quote

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.
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Aseem
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PostPosted: Sun Mar 11, 2007 8:00 pm    Post subject: Reply with quote

What is that overarching factor that VM can't buy. Is it that 9W wants an year lead before others can follow.
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the_380
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PostPosted: Sun Mar 11, 2007 8:53 pm    Post subject: Reply with quote

Im sure 9W would be pressing the govt for a negative on reducing the 5 year term period...because then competition would increase
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Aseem
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PostPosted: Sun Mar 11, 2007 9:19 pm    Post subject: Reply with quote

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. Idea
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the_380
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PostPosted: Sun Mar 11, 2007 10:00 pm    Post subject: Reply with quote

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. Idea

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
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avbuff
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PostPosted: Sun Mar 11, 2007 10:17 pm    Post subject: Reply with quote

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. Idea


not a bad idea
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tayaramecanici
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PostPosted: Sun Mar 11, 2007 10:57 pm    Post subject: Reply with quote

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. Idea


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
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PostPosted: Mon Mar 12, 2007 7:26 am    Post subject: Reply with quote

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. Idea

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.
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VABBy
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PostPosted: Mon Mar 12, 2007 11:32 am    Post subject: Reply with quote

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 Wink
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Nimish
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PostPosted: Mon Mar 12, 2007 11:41 am    Post subject: Reply with quote

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 Smile
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