airlines

HAPPY HOLIDAYS: Airfares Dip By 9% This Summer!

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

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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Air India Employees Hold Their First Protest Against Airline’s Sale!

Last week, eight employee unions of Air India had written to Prime Minister Narendra Modi, raising the issue about disinvestment of the national airline and to look into an alternative plan to revive it. The letter also contained the concerns of the unions, about the possibility of the loss of jobs due to this disinvestment.

Building on that, a group of Air India employees held a meeting yesterday, at Air India’s Kalina office, to protest the sale of the airline. In this protest which lasted half an hour,the union told its staff member present at the office about the disadvantages of privatisation and the impact it will have on the jobs of the employees.

This was the first time that the Air India Forum had protested against the government’s decision to sell the 76% stake in Air India. There were Nine trade unions which took part in the protest meeting held during the lunch hour. Here are the Nine unions that are part of the Air India Forum –

  • Air Corporation Employees Union
  • All India Service Engineers Association
  • Air India Employees Union
  • Aviation Industry Employee Guild
  • Air India Aircraft Engineers Association
  • All India Aircraft Engineers Association
  • Air India Engineers Association
  • United Air India Officers Association
  • Aviation Industry Employees Guild

Together, the above-mentioned unions represent 10000 Air India employees.

The members of the union are protesting against this disinvestment because they feel that the airline is making operating profits and the government is selling the airline at the wrong time.They also feel that the airline is on its way to improve the financial conditions and operational capabilities. The airline has been consistent and is improving its overall performance. The airline has doubled its operating profit by earning Rs 298.03 crore in the 2016-17 financial year.

On March 28, the ministry came out with the preliminary information memorandum on Air India’s strategic disinvestment. The government plans to sell 76 percent stake in the national carrier and transfer the control over the management of it.

The proposed transaction would involve Air India, Air India Express and Air India SATS Airport Services Pvt Ltd, which is a joint venture between Air India and Singapore-based SATS Ltd.

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Aviation Ministry To Increase Compensation For Passengers, Airlines Not Happy!

In a bid to safeguard air passenger rights and tackle the criticism about the government’s involvement in for passenger safety, the Civil Aviation Ministry has proposed that the compensation for loss of baggage or life in air accidents should be increased. They have also said that there should be a cap on the cancellation charges and passengers should get monetary benefits if they fail to board the airplane during connecting flights.

Civil Aviation Minister, Mr. Jayant Sinha, tweeted on Wednesday saying that a preliminary discussion of two rounds was held with officials representing different airlines, airports and other stakeholders. This meeting has helped them to draft a passenger charter that they can place for consultation in the public domain.

Recently the ministry introduced a grievance redressal app and abolished the process of stamping passenger bags during airport security checks.

Below are the proposed changes to be made to the compensation structure for air passengers –

  • Passengers will be compensated between Rs 3000 to Rs 20000 for missed flight connections by the airlines
  • In cases of denied boarding, the ministry has suggested an on the spot auction and a minimum compensation of Rs 5000
  • Airlines will have to pay Rs 1000 to Rs 3000 per kg for loss, delay or damage to bags as a liability for both domestic and international travel
  • Airlines will have to compensate the passenger for missing a connecting flight due to the delay.
  • An airline is liable to pay up to Rs 10 million for a passenger death in international travel and Rs 200,000 in domestic travel.
  • The government also want airlines to not levy a fee for a change in name if a spelling error is pointed to by the passenger within 24 hours.
  • Airlines will have to print cancellation charges on the ticket

These changes proposed by the ministry have come under a lot of scrutiny. Airlines have rejected the government’s proposal for changing rules related to compensation given to passengers in case of flight cancellations and delays.

The Federation of Indian Airlines(FIA), which consists of IndiGo, SpiceJet, GoAir and Jet Airways, has asked the government to continue with the current regulations because an increase in the compensation structure will lead to an increase in the airfare. It also said that infrastructure constraints at the airport are responsible for delays and cancellations and airlines cannot be held responsible.

The FIA has opposed to the decision to compensate passengers if they miss a connecting flight. According to the FIA, the airline cannot be held responsible for the passenger beyond the destination for which the ticket has been booked and whether the guest is booked on a different airline or has arranged a different mode of transport.

They have also opposed to the decision of not charging passengers for the change in spelling of the name beyond 24 hours as it may lead to misuse of airline seat inventory for tickets booked through travel agents and online travel sites.

Government officials said that the arguments submitted by airlines will be taken into consideration while drafting the passenger charter. This first draft will be placed in the public domain for consultation in the coming few days.

If you want to know about the different airline and compensation policies, Look no further! Download the AirWhizz App and get all the information related to airlines and their policies on the move.

Know your rights as a passenger and Fly Stress-Free!

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IndiGo No Longer Interested In Acquiring Air India!

India’s leading low-cost airline IndiGo, which is operated by InterGlobe Aviation Ltd, announced that they will not bid to acquire Air India’s entire airline business.

It is said that IndiGo was the first airline to show interest in buying Air India even before the government formally invited “Enquiries of Interest”.

The government has offered to sell 76% stake in Air India along with its subsidiary Air India Express and a 50% stake in AISATS, a ground-handling joint venture with Singapore Airport Terminal Services (SATS).

According to the president and full-time director of IndiGo, Mr Aditya Ghosh, IndiGo has expressed its interest from the first day in the acquiring Air India’s international operations and Air India Express. However, that option is not available under the government’s current plan to sell Air India. He also stated that Indigo doesn’t have the required capacity or the capability to acquire the airline and revive its operations.

This will not affect IndiGo’s plan to start international flights. Promoters of the airline had made it clear that they will start flying internationally “with or without” Air India.

IndiGo has the largest domestic market share with a 39.9% share. In fact, IndiGo is the only Indian carrier which is qualified to bid based on the eligibility criteria. According to the criteria, an airline is eligible to bid  if it has a minimum net worth of ₹5,000 crore and has generated profits after tax in at least three of the immediately preceding five financial years.

IndiGo is now officially the second airline to pull out of the bid for Air India.SpiceJet’s promoter Ajay Singh said that the airline is too small to bid for Air India and pulled itself out in January. This leaves Jet Airways and Air Vistara to bid for Air India.

Experts say that if Air India, in its present situation is bought by an airline, it will need a huge capital investment, of $6-8 billion to start the bid and more to turn the airline around.

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Vistara Becomes Eligible To Fly Internationally After Receiving Its 20th Aircraft!

Vistara, a joint venture of Tata Sons and Singapore Airlines, has joined the list of elite Indian carriers, which fly to international destinations after receiving an Airbus A320neo, its 20th aircraft, on Wednesday.

Airlines in India need to have a minimum of 20 aircrafts to fly on international routes under the National Civil Aviation Policy, 2016.

Vistara received its 20th aircraft and its seventh Airbus A320neo. Bank of China Aviation (BOC Aviation) leased this aircraft to Vistara. This addition to the Vistara’s fleet is a landmark for them. It shows that they are ready for the next phase and to expand its operations internationally.

Vistara’s new aircraft has a 158-seats which comprise of 8 business class seats,24 premium class seats, and 126 economy class seats with added first-class features of the A320 Neo aircraft.

Vistara has placed an order for two more A320neo aircraft in addition to its 20th aircraft. These airplanes are expected to be delivered by June 2018. This will surely enable the airline’s to operate on international routes. The company has achieved its target of 20 airplanes which was planned at the early stages when the airline was being set up. Vistara started operations in January 2015.

Vistara will use the new aircraft to increase their operations in Indian market while preparing for international operations which might start soon. Vistara currently serves 22 destinations with over 730 flights per week.

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Bidding War Over Air India Gets Intense As IndiGo And Jet Lead The Way!

In a bid to extend their flight network, India’s top 2 commercial carriers, IndiGo Airlines and Jet Airways, are ready to go into a bidding war to take control over 76% stake in Air India.

The 76% of Air India on offer is worth more than 220 billion rupees ($3.37 billion), based on an Air India valuation of above 300 billion rupees. Prospective buyers have until May 14 to voice interest. Winning bidders will be announced May 28.

Interglobe Aviation, IndiGo’s Operator, has shown a keen interest in the airline’s takeover since day one and for a long time, it was the only Indian carrier who was eligible to bid for a stake in Air India, because Interglobe is the only airline company in the country with a positive net worth. Indigo is a marketing leading airline with about 40% market share. This is because of its regular flights and a reputation for reliability.

However, most of the IndiGo flights operate domestically and purchasing Air India, with its network of international routes, will surely expand IndiGo’s reach in one move.

Jet Airways has recently entered the bidding war. It will partner with international airlines such as Air France, KLM and Delta Airlines to buy the 76% stake in Air India. Buying Air India would help Jet gain advantage over immediate rivals IndiGo in international flights. In the international segment Jet Airways has a code-sharing agreement with Air France and Delta.

Apart from these two giants of the Indian aviation industry, Singapore Airlines is looking to bid as the government has allowed foreign investors to buy up to 49% stake in Air India. Singapore Airlines have shown interest in the Indian market of late. They say that India is ‘strategic market’ based on their experience with their airline Vistara, a joint venture between Singapore Airlines and Tata Group.

According to Jayant Sinha, minister of state for civil aviation, the government’s price for the Air India stake may go up, as the government will not accept bids below the minimum value that they set.

At the end of 2017, Air India increased its domestic network to 39 cities. It is also a member of the global Star Alliance.No domestic airline can match the Air Indias international service, in the Middle East and Southeast Asia. The carrier operates 137 flights a week to the Middle East, 68 to Europe and 56 to Southeast Asia. It serves popular airport hubs such as Dubai, London, and Bangkok.

The Indian government have put 150 billion rupees for three years till March 2016 to revive the national carrier. Privatisation of Air India and its subsidiaries will help ease the burden on the national budget.

India is one of the world’s most promising markets for air travel and national as well as international carriers have realized this. Once the results of the bid are announced by the end of May, whoever is fortunate enough to win the bid, is surely in for a profitable future.

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Fly In Luxury: 10 Fabulous First-Class Cabins In the World!

For most air travellers, the average flight comprises of a cramped-up seat with an occasional snack and a complimentary plastic cup of water.

And then there’s first class. A place where you start your journey with champagne upon taking your seat, a soft &hot towel and enough leg room to stretch your tiredness away.

Airlines have been recently reducing the number of first-class seats to expand the business class, but they are changing their first class seats for the privileged few who will pay anything to experience exclusivity and extravagance on board.

Here Is a look at the 10 most Luxurious First-Class Cabins in the world!

1.Qantas

As a Qantas First Passenger, experience a journey of unsurpassed extravangance!

Qantas Airways premium clientele can feel as relaxed as possible even before set foot in their luxurious first-class accommodations. Prior to take off, you will be treated to Chauffer Service and some complimentary pre-flight therapy at the Day Spa.

You get to savour exotic food from their onboard menu, designed by celebrity chef Neil Perry, wearing designer pyjamas in front of a 17-inch Inflight entertainment screen.

2.Japan Airlines

Japan Airlines’ first-class is among the best in the world, thanks not only to the actual seats themselves but also the onboard services and amenities.

As a JAL First Class passenger, you will be fly in a private luxury suite with 23-inch entertainment screens and fine dining featuring both Japanese and Western cuisine as well as Porsche Design amenity kits.

3.Singapore Airlines

Singapore airlines give a personal touch to its first-class passenger experience! Every moment you spend in the First Class will make you feel royal!

The most luxurious part? You don’t even have to ask.

Your favourite tea, piping hot. Breakfast in bed, even at three in the morning. Quiet space to work. Quiet time to relax. And someone to call on at any time. You are in for a treat!

4.Air France

Air France’s La Première cabin personifies the sophistication you’d expect from the airline’s home country.

La Premiere delivers on its promise of French style at 30,000 feet. Luxury goodies include a six-and-a-half-foot-long bed, beauty products from international brands and menus by a selection of renowned French Michelin Star chefs.

5.Cathay Pacific

Cathay Pacific has long been recognized for setting the standard for its excellent service and seats. You get to Experience world-class service and the warmth of Asian hospitality.

As a Cathay Pacific first class passenger, you are treated to a host of luxurious goodies including a Zegna amenity kit, Bose noise-cancelling headphones, and organic cotton pyjamas.

6.Qatar Airways

Luxurious and elegant décor underlines the sense of spaciousness of Qatar Airways First Class cabins. No Wonder they were awarded the Skytrax Airline of the year in 2017.

Their award-winning cabin crew look after your every need and deliver the world-class service you expect.

From signature dishes to Bric’s amenity kits and designer sleep suits by White Company, Qatar Airways pampers you from check-in to destination.

7.Lufthansa

Lufthansa is the most recent airline to receive a five-star rating from Skytrax.

The most unique feature of the Lufthansa first class is that in the centre of the cabin is a bar station, with an array of free-flowing wines and exotic chocolates.

Other than that, you are treated to fine dining, hundreds of entertainment options, limousine service, and use of a private first-class terminal.

8.British Airways

The British Airways First class cabin is all about Style!

You get to rest in handstitched leather and chrome finished seats with a wardrobe and mirrored cabinet located within arm’s reach.

To give you a feel of the British lifestyle, cabin crew present to you traditional afternoon tea with smoked salmon, rocket lettuce sandwiches and house-made scones with clotted cream.

9.Emirates Airlines

Emirates First-class suites offer you the comfort of your own home with the luxury of a five-star hotel, boasting a leather-seat-turned-bed in each private room.

Feeling Social? You can visit the onboard lounge for a drink with your fellow passengers.

10.Etihad Airways

The most luxurious of them all is “The Residence”, Etihad’s 125 square foot flying luxury home found on its fleet of Airbus A380s.

You will get your own living room, a double bed, a private shower, and the services of a personal butler who will serve you delicious cuisines from around the world prepared by Michelin star celebrity chefs.

No wonder the Etihad Airways First class ticket is the most expensive ticket in the world.

 

Can’t-Wait to experience the luxury of first-class?

Download the AirWhizz App and get real-time flight updates to track your flights on the move. So go ahead, travel in style and fly stress-free.

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