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Full Articles

 

 

Air Traffic Takes A Beating Too

12 September, 2008

 

The great aviation growth story touched a new low in August thanks to constant hikes in fares that have started sending people back to other modes of travel. For the first time since 2006, less than 30 lakh domestic passengers flew in a month with just 29.22 lakh people taking to the sky in August. In entire 2007 and this year so far, this figure remained over 30 lakh, except last December and this May when over 40 lakh people flew within the country.

 

On a year to year basis, August has witnessed a fall of six lakh passengers. Passenger load factors of airlines are very poor despite all of them withdrawing capacity. "Airfares have gone up at a time when everything else has become dearer and the middle class — which had suddenly found flying within its reach due to low fares — now find flying unaffordable," said an airline CEO. While people are waiting for a reduction in fuel surcharge since crude has come below $100, airlines are in no mood to oblige. In fact, they are hoping that once travel season begins next month, their flights will go fuller.

 

Even a 16% reduction in jet fuel prices wasn't enough for them to reduce fuel surcharge. During this summer, airlines were allowed to operate 10,900 weekly flights but they reduced over 2,000 flights due to high oil prices, hikes in fares and reduced passenger loads. "Fares can never return to the old low levels. This winter also, the number of flights is unlikely to be as high as the summer figure of 10,900. Perhaps, we will get a real estimate of the market of fliers who can pay fares that enable us to remain viable. People flying at Re 1, 99 or 100 or even Rs 1,000 did not represent the real market and just led to a big success story that really didn't exist," said an airline official.

 

 

 

01. Kingfisher Puts Premium Tag On Inaugural Overseas Link

27 August, 2008

 

Kingfisher Airlines is positioning its inaugural international link between Bangalore and London as a premium service, as it takes on British Airways, its main rival on the route.

 

The airline will launch daily flights between India's tech hub and the British capital starting September 3, the second carrier to do so after the UK's national airline.

 

Kingfisher is pricing its round trip for economy-class travellers at Rs 43,520 compared to British Airways' Rs 43,875. A round trip in the Kingfisher First Class will cost Rs 1,61,800 and an official of the Bangalore-based carrier said it was pricier than the average Rs 1.4 lakh charged by British Airways.

 

However, travel industry sources put BA's going rate for its business-class tickets at Rs 1,64,750, even though a fare cut by the carrier to counter competition from Kingfisher is seen as a possibility. At the time of going to press, it was not possible to obtain a comment from British Airways.

 

Travel industry sources also said that nearly two-thirds of the British carrier's passengers stop over in London en route to other destinations. Kingfisher is expected to announce in a few days alliances with international carriers so that its passengers to London can link up for onward travel.

 

As Kingfisher spreads wings internationally, a non-stop flight from Bangalore to San Francisco on the US west coast is also on the cards.

 

Kingfisher says first-class passengers on its Airbus A330-220 link between Bangalore and London can expect, among other things, an in-seat massager, five-course meals, a social area with a bar and even a spectacle-cleaning service!

 

The flight from Bangalore will leave at 8.40 am and arrive at London Heathrow's Terminal 4 at 2.50 pm, local time. The return flight will depart Heathrow at 10.05 pm and arrive in Bangalore the next day at 12.35 pm, local time.

 

UB group chairman Vijay Mallya's Kingfisher Airlines bought out low-cost carrier Deccan last year to earn the right to fly abroad. Carriers with less than five years of domestic service cannot fly overseas and Deccan completes five years at the end of this month. Bangalore will be the hub for Kingfisher's wide-bodied aircrafts and international operations.

 

 

 

2. Jet Airways Offers Promotional Package For Students Going Abroad

29 July, 2008

 

In an effort to reach out to the Indian students going abroad for higher studies, Jet Airways has announced a promotional package for students going to the US, Canada, the UK, Europe or Asia.

 

It is valid for outbound travel on or before October 31. Existing as well as new students will receive a slew of concessions including excess baggage allowance, special fares and a chance to earn 1,000 Bonus JPMiles, the airlines said in a press release.

 

The airline said the students availing themselves of this offer would be permitted to carry an extra piece of baggage, with each piece not exceeding 23 kg, on flights to the US, Canada, the UK and Europe and an additional 10 kg on flights to Asia (Shanghai, Hong Kong, Singapore, Kuala Lumpur and Bangkok). The promotional package also comes with ‘Student Kits’, containing a Matrix mobile connection with free talk-time worth Rs 4,000 in the US, the UK, Singapore and Australia, ICICI Bank travel cards , a free Tata Indicom Wi-Fi roam card enabling Internet connectivity in the US, the UK, Austria, Czech Republic, Germany, the Netherlands, Switzerland, France and Japan, and Bajaj Allianz Travel Insurance with special privileges and low premiums and VIP vouchers worth Rs 500 on purchase of VIP travel accessories. These could be collected after the purchase of a ticket at any of Jet Airways’ city sales offices around the country.

 

Mr Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said with increasing number of Indian students opting for studies abroad, the airlines was keen to offer students “a safe, value-packed and quality travel option”.

 

Jet Airways said free excess baggage would be allowed against mandatory production of copy of student I 20 form or equivalent document/valid Indian passport/ID from university/student visa for verification at check-in at the airport counter.

 

Normal fare cancellation/refund/change policies will apply. Jet Airways currently operates flights to New York (both JFK and Newark), San Francisco, Toronto, Brussels, London (Heathrow), Hong Kong, Singapore, Shanghai, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha and Abu Dhabi. It plans to fly to other cities in North America, Europe, Africa and Asia in phases.

 

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