Air India (AI) has been invited to join the Star Alliance and has signed the Agreement, which, inter alia, details the terms and conditions of its entry and membership. AI is currently in the process of integrating into the Star Alliance – a process that generally takes about 12 to 18 months depending upon the airline's state of readiness, particularly in IT related areas.
Prior to its entry into the Star alliance, AI is required to comply with the Minimum Joining Requirements (MJRs) stipulated by the Star Alliance. To achieve compliance with these MJRs, AI would have to raise the standards of its product and service to levels that are comparable with those of the other Star carriers.
Air India is likely to benefit from its participation in the Star Alliance by way of:
(1) Network Expansion and Increased Traffic Feed - through Commercial Cooperation Arrangements (Code Sharing, Network Connectivity, Schedule Coordination, Special Prorate Agreements (SPAs), etc).
Through code sharing, AI will be able to expand its secondary network of code-share services to cover new international destinations. Through schedule-coordination, AI will be able to improve the connectivity between AI/Star Carrier networks and this – along with improved/expanded SPAs – is expected to result in increased traffic/revenue feed on AI’s flights.
(2) Increased Traffic Volumes - through Frequent Flyer Programme (FFP) Cooperation Arrangements.
All the Star carriers are required to conclude FFP Cooperation Arrangements with all the other Star carriers. Under these arrangements, the members of the FFP of one Star carrier can accrue/redeem miles while traveling on flights operated by the other Star carriers. Further, certain additional benefits (lounge access, priority check-in, etc) are provided to FFP members by all the Star carriers. Such arrangements are, therefore, expected to result in increased preference (loyalty) for Star Carrier flights amongst passengers and a consequent increase in revenues.
(3) Increased Revenues - through participation in Star Alliance Joint Products, such as round the world fares, corporate plus, conventions plus, etc.
(4) Improved Product Quality and Image
Compliance of the MJRs - coupled with the brand equity of the Star Alliance – is expected to result an improvement in AI’s product quality and image and, therefore, in increased traffic/revenues, particularly in the high-yield, premium segments.
(5) Cost Reduction – through participation in Star Alliance Initiatives, such as StarNet Data Network, Lounge Sharing Arrangements, Move Under One Roof Projects, Umbrella Agreements with service providers, etc.
The likely financial benefits to AI from its participation in the Star Alliance cannot be quantified at this stage – since these would depend on the terms and conditions of the Commercial Co-operation Arrangements negotiated/concluded by AI with the other Star carriers. However, according to expert opinion, at maturity (i.e. 3 to 4 years after entry), by participating in a global alliance (such as Star Alliance), an airline could expect to generate incremental revenues equivalent to 2-3% of its international passenger revenues.
Source:webnewswire
Monday, December 29, 2008
Wednesday, December 24, 2008
Holidays bring cheer to travel and tourism sector
Christmas and New Year holidays have come as a bright streak in an otherwise bleak landscape for the travel and tourism sector as
leisure travel has increased in spite of the economic slowdown.
Though there is a general slump in the business, inbound and outbound leisure tourist movement is slowly picking up. The number of bookings for leisure travel to destinations abroad as well as within the country have increased this month as compared to last month, said industry sources.
The domestic tourist traffic has also improved for this month end because several people who used to travel abroad have switched to destinations in Kerala.
However, the numbers are not as good as it used to be last year. "But still this brings hope for the sector," says Travel Agents Federation of India (TAFI) president Basheer Ahemed.
He said, "Christmas and New Year have brought a little hope for us. We have received several bookings from people who want to travel to Singapore, Malaysia and Hong Kong in the coming weeks. Thailand was popular but some people hesitate to go there because of the current political unrest in the country, he added.
The flights to Singapore and other south-east Asian countries are full till the first week of January. Even Dubai is a popular destination. Cathay Pacific has come out with interesting packages while Malaysian Tourism is offering incentives to travel agents to lure more travellers during the holiday season.
Basheer said there were more inbound travellers from Singapore as it is holiday time there. "The situation is not as buoyant as it used to be last year. But it is improving."
Cleartrip vice president Tarique Khatri said, "There is a 20% increase in the online travel bookings this month when compared to November. Majority of the people are preferring domestic destinations. So, December is not as badly hit as was the case during the meltdown.
Nevertheless, several travellers are preferring domestic destinations. Hi tours has received a few last minute enquiries and bookings for this week.
"We are getting good bookings for the domestic sector. Kerala is so popular that there is a shortage of rooms in the state," an officials of the company said.
Inbound travellers have not cancelled their plans for Christmas and New Year holidays here.
"We do not have any cancellations so far from tourists from Europe and North America. The slowdown impact is yet to show while the Mumbai attacks have not affected us adversely," said Hi Tours managing director Sethuraman.
Source:indiatimes
leisure travel has increased in spite of the economic slowdown.
Though there is a general slump in the business, inbound and outbound leisure tourist movement is slowly picking up. The number of bookings for leisure travel to destinations abroad as well as within the country have increased this month as compared to last month, said industry sources.
The domestic tourist traffic has also improved for this month end because several people who used to travel abroad have switched to destinations in Kerala.
However, the numbers are not as good as it used to be last year. "But still this brings hope for the sector," says Travel Agents Federation of India (TAFI) president Basheer Ahemed.
He said, "Christmas and New Year have brought a little hope for us. We have received several bookings from people who want to travel to Singapore, Malaysia and Hong Kong in the coming weeks. Thailand was popular but some people hesitate to go there because of the current political unrest in the country, he added.
The flights to Singapore and other south-east Asian countries are full till the first week of January. Even Dubai is a popular destination. Cathay Pacific has come out with interesting packages while Malaysian Tourism is offering incentives to travel agents to lure more travellers during the holiday season.
Basheer said there were more inbound travellers from Singapore as it is holiday time there. "The situation is not as buoyant as it used to be last year. But it is improving."
Cleartrip vice president Tarique Khatri said, "There is a 20% increase in the online travel bookings this month when compared to November. Majority of the people are preferring domestic destinations. So, December is not as badly hit as was the case during the meltdown.
Nevertheless, several travellers are preferring domestic destinations. Hi tours has received a few last minute enquiries and bookings for this week.
"We are getting good bookings for the domestic sector. Kerala is so popular that there is a shortage of rooms in the state," an officials of the company said.
Inbound travellers have not cancelled their plans for Christmas and New Year holidays here.
"We do not have any cancellations so far from tourists from Europe and North America. The slowdown impact is yet to show while the Mumbai attacks have not affected us adversely," said Hi Tours managing director Sethuraman.
Source:indiatimes
Monday, December 15, 2008
SpiceJet to employ more pilots soon
SpiceJet will hire about a dozen pilots including foreign commanders, in a fortnight, reports Economic Times.
It is understood that SpiceJet will pay Rs 7 lakh per month to the foreign pilots, including accommodation allowance, double the amount it offers its Indian pilots. SpiceJet employs 65-70 expat pilots.
SpiceJet requires more pilots as it is expanding capacity, it intends to increase flights by another 20% over the next two months, it plans to double the frequency in Delhi, Kolkata, Mumbai, Hyderabad, Chennai routes.
The daily flights will jump to 120 from the current 98 in 20 cities by the end of this fiscal. The company has also pulled back from its earlier decision of returning three aircraft.
It is learnt that SpiceJet has resolved its problems related to cash after the WL Ross infused Rs 3.60 billion in it.
The SpiceJet might double its fleet size to 600 aircraft by 2010.
Source:myiris
It is understood that SpiceJet will pay Rs 7 lakh per month to the foreign pilots, including accommodation allowance, double the amount it offers its Indian pilots. SpiceJet employs 65-70 expat pilots.
SpiceJet requires more pilots as it is expanding capacity, it intends to increase flights by another 20% over the next two months, it plans to double the frequency in Delhi, Kolkata, Mumbai, Hyderabad, Chennai routes.
The daily flights will jump to 120 from the current 98 in 20 cities by the end of this fiscal. The company has also pulled back from its earlier decision of returning three aircraft.
It is learnt that SpiceJet has resolved its problems related to cash after the WL Ross infused Rs 3.60 billion in it.
The SpiceJet might double its fleet size to 600 aircraft by 2010.
Source:myiris
Monday, December 8, 2008
Boost for Hyderabad traffic as British Airways begins regular service to London Heathrow– 08/12/08
In a welcome boost to its international traffic profile, Rajiv Gandhi International Airport, Hyderabad yesterday hosted the first flight from the UK’s largest scheduled airline, British Airways.
The new route provides a direct flight from Hyderabad to London Heathrow Terminal 5 in the UK and offers connections to 22 destinations in North America. British Airways will operate five weekly non-stop flights between Hyderabad and London – the only airline to offer direct flights between the two cities.
British Airways Area Commercial Manager for South Asia Amanda Amos said: “We are very excited about the launch of our Hyderabad service. India is an incredibly important market for the airline and the start of this service demonstrates our commitment to this market.”
The inaugural British Airways flight, which landed at Rajiv Gandhi International Airport at 4:40a.m. on 7 December, received a traditional water cannon salute from the fire-fighting ‘Panthers’ at the rapid exit way.
The passengers and crew were welcomed by GMR Hyderabad International Airport Limited (GHIAL) Chief Operating Officer, Peter Noyce, Director Prasanna C and Chief Commercial Officer Viswanath Attaluri.
“Despite the economic meltdown, Rajiv Gandhi International Airport (RGIA) has registered a reasonable growth in the international passenger traffic. The excellent facilities available at RGIA have opened up exciting opportunities for world-class carriers like British Airways to add Hyderabad as a preferred destination,” Viswanath said.
He added: “Rajiv Gandhi International Airport is poised to make Hyderabad a truly global air travel hub in India.”
Source:moodiereport
The new route provides a direct flight from Hyderabad to London Heathrow Terminal 5 in the UK and offers connections to 22 destinations in North America. British Airways will operate five weekly non-stop flights between Hyderabad and London – the only airline to offer direct flights between the two cities.
British Airways Area Commercial Manager for South Asia Amanda Amos said: “We are very excited about the launch of our Hyderabad service. India is an incredibly important market for the airline and the start of this service demonstrates our commitment to this market.”
The inaugural British Airways flight, which landed at Rajiv Gandhi International Airport at 4:40a.m. on 7 December, received a traditional water cannon salute from the fire-fighting ‘Panthers’ at the rapid exit way.
The passengers and crew were welcomed by GMR Hyderabad International Airport Limited (GHIAL) Chief Operating Officer, Peter Noyce, Director Prasanna C and Chief Commercial Officer Viswanath Attaluri.
“Despite the economic meltdown, Rajiv Gandhi International Airport (RGIA) has registered a reasonable growth in the international passenger traffic. The excellent facilities available at RGIA have opened up exciting opportunities for world-class carriers like British Airways to add Hyderabad as a preferred destination,” Viswanath said.
He added: “Rajiv Gandhi International Airport is poised to make Hyderabad a truly global air travel hub in India.”
Source:moodiereport
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