Aviation Insider

Articles giving aviation insights

Air India Sale Now Open To Firms Beyond Aviation Industry!

AirWhizzApr 20, 2018 No Comments

Air India Sale Now Open To Firms Beyond Aviation Industry!

Aviation Insider

The government has opened the sale of Air India to firms outside the aviation sector, stating that companies having sufficient financial backing and the ability to run the airline could buy the 76% stake on sale.

This announcement was made yesterday by Ministry of Finance after many airlines in India developed cold feet to bid for Air India due to the tough conditions laid down by the government and doubts about how much the airline is actually worth. Domestic carriers IndiGo and Jet Airways have indicated they won’t be bidding for the airline unless the current bidding conditions are changed.

According to the secretary of Department of Investment and Public Asset Management (DIPAM), Mr. Neeraj Gupta, the eligibility of any potential bidder is based on its financial capability and does not require any prior experience in the aviation industry. The main criteria is to have the financial backing and the capability to turn the airline around.

There have been several queries from foreign airlines, private equity and venture capital investment firms for the privatisation of Air India. The VC and PE firms have the option of partnering up with other domestic companies to bid for the 76% stake in the airline.

According to the bid document released last month –

  • The investor’s net worth should be more than Rs 5,000 crore
  • The investor should have a track record of reporting profit after tax (PAT) in three of the previous five financial years
  • The government would retain 24% in the airline and the prospective investor is obligated to list the airline within a specified time-frame.
  • The last date for submission of expression of interest for Air India is May 14.
  • Of the Rs 60,000 crore liability of the airline, the investor would have to take over about Rs 33,000 crore debt

Employee unions are concerned over the job security of its employees’ once the deal is done and the airline is privatised. The government has assured them that the company which will take over the airline will follow the ‘best industry practices to ensure that the jobs of the employees are safeguarded. Air India and its two other units up for sale have 11000 employees working for them.

Allowing investors from other industries to partner with business in India for bidding, will widen the pool of potential bidders for the airline and may lead to an intense bidding war in the future. But, we will surely be able to know who has control over the 76% stake in Air India, 100% stake in Air India Express Ltd and 50% stake in Air India SATS Airport Services Pvt. Ltd by next month.

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In-Flight Wi-Fi To Soon Become A Reality In India!

AirWhizzApr 19, 2018 No Comments

In-Flight Wi-Fi To Soon Become A Reality In India!

Aviation Insider

A survey conducted by Inmarsat in May, last year, showed that about 86 percent of Indian air travellers would prefer to fly with an airline that offers Internet connectivity. The study also showed that 60 percent of air travellers thought that in-flight Wi-Fi is more of a necessity rather than a luxury service and 45 percent of those were ready to pay for in-flight Wi-Fi rather than in-flight entertainment provided by airlines.

Flyers will soon be able to use data services on flights. The Telecom Commission, which is the highest decision-making body at the Department of Telecommunications (DoT), is all set to approve the proposal for in-flight data services at its next meeting scheduled on 1st May. The DoT has taken all the necessary permissions from all stakeholders involved including the ministry of home affairs.

Here are the details about the Inflight Wi-Fi System which will be implemented –

  • As soon as DoT approves the plan, airlines would be free to offer Wi-Fi services to passengers.
  • Airlines will initially start with in-flight wi-fi but will slowly get into voice services.
  • The pricing of the services provided would be left to airlines.
  • Mobile calling service would be permitted once the flight is above 3000 meters in the air.

In August last year, the DoT had asked the Telecom Regulatory Authority of India (TRAI) to provide recommendations on how to incorporate in-flight connectivity for voice, data and video services.

Here are the recommendations that were given by the TRAI in January which will be discussed in the meeting scheduled on 1st may –

  • There should be separate In-Flight Service(IFC) providers.
  • These IFC providers should be permitted to use either INSAT (Indian Satellite System) or foreign satellites outside INSAT systems in Indian airspace.
  • Internet services through in-flight Wi-Fi should be made available once it’s announced, that electronic devices are permitted to be used, on the airline.
  • The services can only be used in Airplane mode and an announcement regarding this should be made after boarding is completed and the aircraft is about to take off.

Some international airlines allow passengers to use Wi-Fi free of charge for WhatsApp and other messenger services, which may be implemented on airlines in India because they don’t need much bandwidth. Lufthansa, Emirates, British Airways, and Delta are among the airlines that have implemented In-flight wi-fi services successfully on their international routes.

In-flight connectivity will make the journey more efficient and passenger-friendly. However, there are certain security challenges to be addressed once your phone or a device is connected to a network. The biggest concern is the higher chances of hack, and attack on insecure data and systems.

One more issue is the cost that will go into implementing this system on flights. Fitting the equipment to provide such services in an aircraft could cost around $400,000-$600,000. Initially, the cost to the passenger may be on the higher side.

Once the plan has been approved and the in-flight wi-fi system is implemented, airlines and authorities will need to run many rounds of testing to overcome the above-mentioned issues, but once the technical bugs have been discovered and solved, In-flight entertainment will get a whole new makeover on Indian flights.

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Air India To Charge “Family Fee” For Middle Seat On Their Flights!

AirWhizzApr 18, 2018 No Comments

Want to sit with your family or friends on the flight together? Then, in that case, be ready to pay more as Air India will now be charging more for seat selection, according to a circular issued by Air India which tells you about the seat-selection fee on various routes.

Previously, the airline only charged for front-row seats on long-haul flights. With the new seat selection fee, you will have to pay an extra for the selecting a middle, window and aisle seat on domestic and international flights.

This extra charge for the middle seat is known as ‘family fee’ in some countries. In this, you have to pay extra for the seat, to make sure that your kid sit does not sit with a stranger.

According to the new rules –

  • You will have to pay Rs 100 for middle seats on domestic flights
  • If you choose a window or an aisle seat, you have to pay Rs 200
  • The seat-selection fee is Rs 200 on most international routes, except if you are travelling to Kathmandu, where it is kept at Rs 100
  • You will have to pay anywhere between Rs 800 and Rs 1,500, if you want to sit in the emergency exit row, depending on the route.
  • Choosing the window/aisle seat can set you back by anywhere from Rs 240 to Rs 1,500 for international flights.

Air India is, however, asking passengers to pay a whopping Rs 3,282 extra for the emergency exit row seats on flights flying on the US-India route. They will charge Rs 985 extra for the window and aisle seats. Thankfully, the middle is more wallet-friendly and costs Rs 197.

Seat fees also varies depending on the currency used at the of the airport of origin, on flights that fly from other countries to India. The extra fee will be charged when a passenger has to choose their seat during online booking or web check-in.

So, if you are going to book your seat in advance to enjoy extra-leg space, be mesmerised by the view from the window or sit with your family, you will have to pay a few extra bucks and get your favourite seat on an Air India flight.

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HAPPY HOLIDAYS: Airfares Dip By 9% This Summer!

AirWhizzApr 17, 2018 No Comments

HAPPY HOLIDAYS: Airfares Dip By 9% This Summer!

Aviation Insider

If you are planning to travel by air for vacations this summer, there is some great news. Air travel fares are down by 4% to 9% for domestic flights.

Travel websites such as Yatra, Cleartrip and Ixigo show that even with demand increasing by 20%, fares will be lower than last year.

Here are the facts and figures which show how this has been possible –

  • Figures from Yatra.com show that there is a 5% drop in airfares as compared to the same period last year, except in the Delhi-Mumbai sector, where there is a 12% rise in airfares due to runway shut down.
  • Ixigo data shows that from April to June, there has been a drop of 9 % in domestic airfares compared to last year. There has been a drop of 19% in International airfares as well.

To take an advantage of the rise in demand, Airlines such as SpiceJet, GoAir and AirAsia are offering discounts, providing flight tickets under Rs 1,600 and giving offers to attract potential flyers. The most popular destinations seem to be Guwahati, Nagpur, Chennai, Imphal, Pune and Bhubaneshwar.

Apart from this being the peak travel season, the dip in airfares can be due to the following reasons-

  • Intense competition among airlines,
  • Increased capacity on airplanes
  • The ongoing discounts offered by airlines and online travel websites.
  • Oil prices remaining stable, which will keep the input costs lower for airlines.

Goomo, a renowned travel operator, is offering 20% discount on early-bird tickets and you can look forward to better discounts if you plan to travel mid-May.

With two long weekends coupled with summer vacations, airlines will look to tap into the holiday travel demand by offering such discounts. This move will definitely encourage and attract families with children and millennials to travel by air this holiday season.

So, if you are flying for your vacations this summer, Download the AirWhizz App. From real-time flight updates to information about your airline and airport, we give you all the information on the move.

Plan your summer vacations with ease and Fly Stress-Free!

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New Trial Plan To Ease Traffic Jams At Chennai Airport!

AirWhizzApr 16, 2018 No Comments

New Trial Plan To Ease Traffic Jams At Chennai Airport!

Aviation Insider

In a bid to ease traffic jams near the Chennai airport, the Airports Authority of India (AAI) will conduct a two-day trial of a new traffic pattern on Monday and Tuesday. There will be separate entry and exit points to the domestic and international terminals.

Passengers travelling to the Chennai airport on Monday and Tuesday afternoon, between 2 pm to 5 pm, will have to follow a new traffic route to reach the airport terminals.

The AAI wants to first try out a new traffic management system to handle airport traffic as a pilot and then implement it permanently if it is a success. A survey will be conducted during the trial period on the flow of vehicles.

This trial will help AAI understand how the traffic flow will work on the ground. The results of the survey will be analyzed to find out if any changes need to be done to the traffic pattern. The new traffic arrangement will be implemented in two weeks’ time if it’s a success.

Here are the changes that are going to be implemented for these 2 days –

  • The vehicles that come to domestic and international terminals will enter the airport using two entries
  • These entries will be routed via two new ramps that connect to the flyover in front of the terminals
  • Cars picking up passengers at the domestic terminal need not drive past the international terminal to exit the airport
  • An additional entry for the international terminal has been created for the vehicles coming from Tambaram.
  • All vehicles queuing up to drive down the flyover will have separate exit routes
  • AAI has set up new checkpoints at the three entry-exit points of the airport from GST Road
  • The roads inside the airport campus have been filled up with markings to guide cars to the parking lots in front of the domestic and international arrival halls on the ground floor.

The move was part of the original airport expansion plan and the ramps that link the road to the flyover in front of the terminals were ready a few months ago, but AAI wanted to wait till the metro station was completed and train services started. They also waited for the new toll booths to be installed according to the new traffic plan.

These toll booths are essential as they monitor the time each vehicle takes to enter and exit the airport. If a vehicle spends over 12 minutes inside the airport premises, then a parking fee must be paid. AAI hopes that the new pattern of vehicle flow will help reduce the complaint of cab drivers that they are not able to exit from the airport campus in less than 10 minutes due to congestion.

The congestions at the Chennai airport was caused by the 20,000 to 30,000 cars that it received every day. Hopefully, this pilot run will help in easing the traffic and will reduce delays and congestions at the airport once it is implemented in the future.

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Foreign Airlines Show Interest In Air India Sale As Domestic Carriers Steer Away!

AirWhizzApr 14, 2018 No Comments

Foreign Airlines Show Interest In Air India Sale As Domestic Carriers Steer Away!

Aviation Insider

It seems like no domestic carriers will be bid for Air India as the airline giants, IndiGo and Jet Airways, have released statements saying they will not take part in the national carriers disinvestment process. Reports also suggest that Tata Group will also be pulling itself out of the race.

Over the past few days, the airlines have blamed the terms of the sale for their unwillingness. In a statement given by Jet Airways last week, they said that they welcome the government’s move to privatize Air India. However, based on the review conducted by the airline and the terms of the offer in the memorandum, they will not be taking part in the bidding process.

The disinvestment process is divided into two stages:

  • PIM (Preliminary Information Memorandum) which involves receiving the letters of interest from potential bidders.
  • RFP (Request for Proposal) is the second stage of the bidding process where more details about the sale will come to light, if and when it happens.

Here are some of the terms mentioned in the memorandum that the bidders have to take responsibility of –

  • Under the proposed sell-off, the new buyer will have to take over 61 percent (or Rs 33,392 crore) of the debt burden. The current Debt of Air India amounts to Rs 54,742 crore.
  • The buyer has to safeguard the interests of 10000 – 15000 Air India employees.
  • The Owner has to list Air India on stock exchange under terms that will be decided by the government
  • The buyer has to keep the airline’s operations away from other businesses of the owner.

It is believed that British Airways, Singapore Airlines, Etihad Airways and Lufthansa have shown interest in buying Air India. Only Etihad Airways and Singapore Airlines confirmed their interest in buying the national carrier.

Etihad Airways is reportedly looking as a strong contender to bid for Air India as they have sent out feelers to the Reliance Anil Dhirubhai Ambani Group. Etihad is looking for partners to bid for Air India and is in discussion with companies other than the Anil Ambani group.

Air India has been struggling with competition from IndiGo and Jet Airways in the Indian markets. Air India market share in India has also gone down when Indigo and SpiceJet set out to grow their network. Its market share has come down to 13 percent which is nowhere comparable to the 36 percent share they had a decade ago.

The government has decided that there will be no change in the terms unless there are not enough bidders for the airline. For now, it seems like a game of wait and watch!

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Soon Your Aadhar Will Be Your Boarding Pass! Paperless Flying Is Coming To India!

AirWhizzApr 13, 2018 No Comments

Soon Your Aadhar Will Be Your Boarding Pass! Paperless Flying Is Coming To India!

Aviation Insider

Imagine taking a flight from any major airport in India without having to produce a physical copy of the boarding pass, waiting in long security queues for manual checking and frisking or waiting to get your passport stamped.

All you need to do is share an image of your face along with your fingerprint scan at a designated kiosk located at the entrance of the airport and then simply walk through the airport and board your flight. The security checks will be automated via the automated body scanners and high-end cameras to run the background check and match your face and fingerprints with an existing database like Aadhaar.

A system which is implemented at airports in cities like Miami, London, Frankfurt, Dubai, and Sydney will soon become a reality in India.

The government will approve of this paperless flying experience by the end of this month. Once its approved airports all over India can start implementing this system. In fact, This hi-tech movement could start being implemented by July at the Bangalore and Hyderabad airport.

Bangalore and Hyderabad airports have implemented this pilot project successfully and could be the first airports to adopt this system in the coming few months. Airports Authority of India (AAI) has started preparing bid documents and will issue tenders which will be available for bidding by the end of this year.

However, the existing paper-based boarding system will still be there since linking Aadhaar to air tickets is not be mandatory.

This system is being developed under the air transport IT and communications service provider SITA and have named it ‘Smart Path’. Smart Path uses biometrics for identification along a passengers journey through the airport. It can be integrated easily into an airlines system and airport infrastructure.

To implement this system airports will need to install self-service equipment like check-in kiosks, baggage dropping units and specially designed gates for secure access and boarding. When implemented this system will make quick deployment easy and cost-effective. Smart Path helps airport authorities by finding data about passengers directly from the government’s database. This will allow greater transparency during immigration and border checks.

This system will make it easier for passengers who link Aadhaar to air tickets at the time of booking.  Passengers can breeze through the airport since they will only need their phone to show e-boarding pass at the security check and the boarding gate which will be scanned.

Apart from passengers, it will also help airport security and staff to identify the authenticity of the passenger and their ticket. Once the flyer is granted entry, the passenger will go through biometric authentication while clearing security and then at boarding gates, thus streamlining the whole security process at the airport.

The paperless initiative is being adopted all over the world, and we at AirWhizz, are continuously working towards implementing it in India because we believe that flying paperless is the future of air travel.

If you want to know more about how flying paperless will be beneficial for you, follow the link!

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Baggage That Requires Special Handling Will Be Charged A Fee At Dubai Airport!

AirWhizzApr 12, 2018 No Comments

Baggage That Requires Special Handling Will Be Charged A Fee At Dubai Airport!

Aviation Insider

If you find yourself traveling out of Dubai any time soon, make sure you pack some extra cash because a new fee has been introduced by Dubai National Air Transport Association(DNATA) at Dubai Airport.

So, if your luggage is not of the standard size & weight and if it requires special handling then you will have to pay more. The DNATA  Wednesday confirmed of this news and have announced that a new fee policy for ‘Out of Gauge’ has been implemented by Dubai airport.

Out of gauge or OOG baggage is the luggage that might be very heavy, too large, very light, fragile, does not have at least 1 flat surface or can damage or slow down the baggage handling management system. Basically, baggage that is outside the standard dimensions for airport luggage and cannot be sorted out by normal conveyor belts come under this category.  Items such as flat screen televisions, large blankets, and sports equipment are examples of such luggage.

According to the DNATA, airlines flying to some of the Asian countries receive a lot of OOG luggage like blankets, broomsticks and huge TV sets. Additional infrastructure and manpower was initially provided to handle OOG baggage. However, due to a high rise in such luggage being flown out, companies were forced to charge for the service for handling this baggage manually.

It is now up to carriers to decide whether they want to pass on the cost to the passengers or not and how they want the payment to be collected. Passengers will have to go to their carrier’s website for further details. The extra fee will be charged from passengers once the airlines renew their contracts with DNATA.

Airlines flying to same destinations have to renew their contracts at different times and those who do it early will be affected the first. DNATA did not provide the charges it is taking from different airlines and cannot comment on behalf of the airlines. However, DNATA insisted that passengers will be charged only if the carriers choose to do so.

Air India, has set the fee at DH45 per piece for such baggage but the fee may vary for other carriers depending on their contracts with DNATA.

For the benefit of the passenger, Emirates has revised its excess baggage charges. The changes are applicable for those who have booked their tickets on or after April 8, 2018. They have also doubled the discount on the purchase of additional baggage allowance online to 20%.

In case you want to know your airline’s baggage policies, look no further. Simply download the AirWhizz App and get information about your airline policies and rules on the move. Plan your trip smartly and Fly Stress-Free.

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