Make a career out of hospitality

Avinash Iyer, MUMBAI MIRROR, Feb 21, 2011, 12.52pm IST

Make a career out of hospitality

A boom in the hotel and tourism sectors has seen the hospitality industry grow by leaps and bounds. The demand for manpower in this industry offers career choices in various areas.

Avinash Iyer gives you a lowdown on two such industries

Career in hotel industry
Impressive communication skills coupled with a penchant for hospitality can help you succeed in the hotel industry. Promotional initiatives by the government to promote India as a major tourist destination on a global platform have resulted in a surge of tourists from all over the world. Domestic tourism has also increased. Figures from the Annual report 2009-10 of the Ministry of Tourism show a constant increase (barring minor fluctuations) in foreign travellers visiting India from the years 2000 to 2009. This has ensured that the hotel industry in India has witnessed immense growth in the last decade or so. Events like the recently concluded Commonwealth Games and impending World Cup 2011 also rely on the hospitality industry for hosting their guests and visitors.

• At your service

The hotel industry has a variety of job openings offering a number of portfolios. Priyanka Bane, assistant manager – Human Resources (HR), Pan India Food Solutions Pvt. Ltd. says, "There are different openings, such as hostess, stewards, front office assistant, counter sales executive, guest relation executive for fresh graduates. There are also many openings as per their experience into different domains for e.g. HR, sales, reservations, front office, housekeeping, production etc." There are academic courses which groom students who wish to make a mark in the hospitality industry. Bane lists some of them - Hotel Management Graduate/ craft course or specialization course/ MBA in hospitality or in some areas. Adding to this she states, "There are many specialized courses for different profiles. The qualification will always help you to promote or upgrade yourself in your profile."

• What it takes

Once in this industry it is imperative to hone your communication skills as it involves extensive customer interaction. "One should have smart and pleasant personality and excellent communication skills," says Bane. You should also be willing to meet and network with a wide range of people.

With adequate experience you can scale greater heights in this profession. Bane adds, "Hotel Industry is very vast but in itself is a small industry. People know each other very well. So to maintain your stand in the industry it's very important to know the market. Your communication and attitude is also important." In this profession a lot of learning happens on the job through practical interaction with clients. Also, all the customers that you encounter will not behave in the same manner. Hence presence of mind is important to be successful. Commenting on the monetary aspect Bane says, "A fresher can expect between Rs 5000 to Rs 8000 per month. For those with experience it depends on the qualification and number of years they have put in."

• Looking ahead

Given the growth of the hotel industry in the last few years the employment opportunities have multiplied. This industry is in need of a young workforce. Bane states, "Earlier people were not aware about the industry but the scope, exposure and better career prospects have made this industry grow. I would say that sky is the limit." She foresees a boom in the industry in the near future.

It is a myth that all you need to do to succeed in the hospitality industry is to smile and greet customers from a behind desk. Like all professions, this one too has its rigours and demands. As a result one should be willing to work very hard. So if you have the right people skills and appropriate qualification the hotel industry might just be the springboard that your aspirations needed.

Career in aviation industry
The aviation industry has a plethora of options to offer to beginners who wish to choose it as their career launch pad. According to projections made by the International Air Transport Association (IATA), by 2014 India will have one of the five largest domestic aviation markets with 69 million passengers; the other four being – USA (671 million), China (379 million), Japan (102 million) and Brazil (90 million). This projected upsurge in the domestic market of the Indian aviation industry has created a fair number of employment opportunities for freshers as also for those with experience.

• In the wings

Most people are enamoured by a career in the aviation industry as it means touching the skies, literally. However, there are a number of other openings in this profession that aspirants can vie for. The various job profiles in the aviation industry are aircraft handling, passenger handling, aircraft appearance, cargo handling services, manpower solutions, maintenance of ground service equipment (GSE) and consultancy.
To be a part of the aviation industry you not only need the right qualification but also physical fitness and appropriate communication skills. The candidate needs to be a graduate trained in airport operation, should possess good speaking/ writing skills and a pleasing personality.

• Making a foray

Equipping yourself with the right amount of knowledge before entering this domain is very crucial as it concerns the safety of lakhs of passengers. The industry looks for people with a high degree of competence. For this there are specialised training programmes one can undergo to hone the skills that a candidate chooses to exercise during the service period. The various courses offered by IESP are the following - Airport handling management, Cargo Management, Cabin Crew and Hospitality Management and Airport Retail management.

Freshers who wish to join this industry should be willing to work hard and flex their work timings. A beginner can expect a global environment, since the job is stationed at the airport (Domestic Vs international). One should focus towards passenger handling at the ground level.

• Moolah matters

The remuneration in this industry depends on various factors as well as the experience. The starting salary may vary from Rs 9000 to Rs 15000 per month, increments and promotions as per company policy coupled with performance. The lateral growth covers all airport operations across the globe. The vertical growth is subject to the nomenclature as per industry standard from Level A onwards (entry Level). Once you have consolidated yourself in this industry there is scope for further progress as well. This industry gives a chance of lateral as well as vertical growth.

• Final word

With an impressively projected growth rate, the aviation industry is all set to soar. With this, a host of new opportunities are waiting for youngsters wanting to chart their career in this field. An affinity for the world of aviation, the right qualification, physical fitness and good communication skills are some of the key factors that will enable you to find your career call in this industry.

Indigo Story

The IndiGo brand story

How IndiGo airlines' brand strategy makes budget travel in India better, if not the best

By Aditi Saxton 17 February, 2011

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If good branding begins in a name then IndiGo airlines had quite a launch pad. Cleverly couched within the name is a play on ‘India’ and ‘Go’ -- a smart shorthand for a nation where, according to government data domestic air travel grew 19 percent in 2010 to 52.02 million passengers on the go. This upstart of an airline, just five years old, has deposed the maharaja -- Air India’s domestic arm --and is poised to pip the liquor baron -- Vijay Mallya’s Kingfisher Airlines.

In a report recently released by the Directorate General of Civil Aviation, IndiGo and Kingfisher had an even tally of 18.6 percent of the market share in 2010. It’s a tie behind the combined, veteran forces of Jet Airways and its budget carrier Jet Lite. In one of the world’s fastest-growing aviation markets that’s no sloppy seconds.

Business + branding = buzz

Last month IndiGo penned a US$16 billion deal for the staggered delivery of 180 new eco-efficient Airbus A320 aircrafts. It’s also just got the green light to launch flights to international destinations. By August 2011 Dubai, Muscat, Singapore and Bangkok will be added to their flight roster. But the buzz isn’t all business-y. IndiGo has become the kind of brand that spawns customer appreciation pages on Facebook, an unlikely acclaim for an Indian airline where service-oriented brands usually get flak for failures, not fans for their flair.
IndiGo has a summarily stated three-point corporate mantra that is trotted out regularly in press releases: “Offer fares that are always low, flights that are on time, and a courteous, hassle-free travel experience.” This no-frills corporate diktat gelled with advertising agency Wieden + Kennedy India (W+K) who believe “Advertising is irrelevant if the customer experience isn’t great.” Going about the business of image building from scratch, Mohit Jayal, business director at W+K, has been working with IndiGo co-founders Rahul Bhatia and Rakesh Gangwal from 2005, the year before IndiGo took off.

They decided people shouldn’t feel cheap when they buy cheap.

A young fleet for a young India

Jayal describes the target consumer as “not a demographic but a psychographic” and the brand as having an abundance of crossover appeal.

Reusuable cookie jars.

For IndiGo W+K use plenty of young, urban style cues, demonstrating an abiding respect for the fundamentals while indulging the cool quotient. Step-less stairs, handicap-accessible boarding ramps, q-buster scanners for passengers traveling without check-in luggage, were all on the manifesto from the get-go.
Luggage stickers read ‘Fragile’ over a little heart-shaped graphic, so cute that Jayal says kids like to steal them. IndiGo’s airsickness bags urge the passenger to "Get well soon" -- a device adapted by Jet, whose bags now also ask you to "Take care." Cookies packaged in pretty pastel pink and blue tins move like hot cakes.
This month, W+K ran an agency-wide competition for a veggie burger. A nouveau-cuisine version of the Gujarati dabeli won and it’s available on aircrafts now, probably with a cute pun on ‘bun’ like this one.The secondary products are practically a spin-off industry now. “When a brand has such a strong personality, it makes sense to extend it,” says Jayal.
An airline passenger is perhaps the most captive of all audiences. But Jayal clarifies, “It’s not just pack ‘em in and sell ‘em stuff. The idea is to offer differentiated products that people actually want.” “What characterizes the IndiGo gang is that they’re very keen to get it right, they’re obsessive about details,” says Jayal. “Even the tape that separates our (check-in counter or boarding) queues reads ‘no red tape’” Jayal adds. It is, of course, a precise shade of indigo.

This is how we do it

W+K had to be careful to not inundate the consumer with on-board and terminal messaging, but a television commercial which premiered in March 2010 pulled out all the stops.

The smash hit commercial for the airline has the tagline “on-time,” selected from the trinity of tenets that the company rests on (low-cost, on-time, courteous). IndiGo consciously steers clear of budget badges of honor -- presumably cost will always factor into a customer’s choice.
With conveyor belts and assembly lines and workers indistinguishable in their uniform spiffiness, the ad projects assembly line efficiency. Secondly, the swell bell-hops, sexy receptionists, slick executives and smiling airline crew are more a montage from mid-century London and Paris than a reflection of India 2010. But such is the power of top class advertising, that it matters not that the voice-over is firang and that the Indians look more like well-sunned Europeans.

Bob, hat, scarf, badge, check, check, check, check toward the end of the TVC, the voiceover quips in an upbeat voice, “We become the world’s most powerful economy … on time.” And so brand IndiGo is served up with a side of futuristic patriotic pride. How’s that for subliminal?

Apparently the flight crew were so enamored of their slick on-screen projections, that fashion designer Rajesh Pratap Singh and make-up and hair artist Ambika Pillai were recruited to reinterpret the reel-life look for the real-life IndiGo crew.
In August last year female flight attendants trotted out in the new uniform -– Pratap’s single-piece navy-blue tunic somewhere between a tennis and a shirt dress, with a thin indigo belt highlighting the waist.Pillai’s flirty bob hair pieces and brick red lip and nail color, set against nude eyes with a pull out eye liner complete the look. Compare it to budget carrier JetLite’s new uniform, launched around the same time, which puts its girls in collared men’s jacket and pants. Who wants to see that?

Said the company press release, “India’s coolest airline now has India’s hottest looking crew!”

The future’s looking bright

A widely speculated upon IPO, possibly the largest in Indian aviation, has been a highly sensitive barometer for the brand. Jayal speaks feelingly about creating a new global brand with a ‘made in India’ sticker. “[IndiGo offers] operational excellence, cost control, great experience,” Jayal says. “The Indians are coming, not just with an under-priced product but one that’s experientially as good if not better than anything out there.”
IndiGo already has the lowest cancellation rate among domestic airlines in 2010, it was close to the top in on-time performance, and with W+K’s help they’ve already conquered the low-cost carrier stigma.

Sometimes, as Jayal says, “The right thing to do is also the smart thing to do.”

Aditi Saxton is freelance features journalist and a television scriptwriter currently living in New Delhi.

Read more about Aditi Saxton

Read more: The IndiGo brand story | CNNGo.com http://www.cnngo.com/mumbai/life/brand-story-behind-indigo-044435#ixzz1EYXBrizp

Indian Aviation Industry 30 years behind US??

   

India's aviation industry is 20-30 years behind the United States and other western nations, believes US envoy Timothy Roemer.
Roemer made these comments after a visit to the Hindustan Aeronautics Ltd's plant in Bengaluru, in a secret cable that has been released by WikiLeaks.
Incidentally, the US administration has recently launched a concerted and aggressive campaign on behalf of American fighter aircraft manufacturers to push for the 'mother of all deals'-- the $11 billion medium multi-role combat aircraft deal for 126 fighter aircraft for the Indian Air Force.
The deal could give the ailing US economy a major boost in terms of both exports and thousands of jobs.
Image: Employees of Hindustan Aeronautics Ltd work inside a workshop.
Photographs: Jagadeesh Nv/Reuters


To comprehend the size and complexity in aviation technologies is not easy. The HAL-NAL-ADA and other DRDO setups have done a commendable job but still a generation behind the Indian security needs vis-a-vis China. This gap must be bridged, but no realistic solution is in sight within the ideological mooring which led to creation of this defence production infrastructure. We need a second set of defence related infrastructure in private sector to help reduce the quality and capacity gap.

Since Indian manufacturing afford cost advantages and skilled manpower in huge numbers, given proper licensing arrangement is likely to invite capacity creation for sub-system and component needs for exports to developed civil democracies. This will help reduce the investment gap for production of such sophisticated technologies with development gestation of several decades. This fast forwarding the technology development and its assimilation on Indian soil is feasible if we think in terms of seeking realistic alternatives to match the rapidly emerging threats. This will not shrink the PSU setup,but only make them more competitive.

Indian technology need not evolve only in the crucible of PSUs, institutions which evolved per Soviet model.It needs to be complemented with a competitive and internationalized private defence sector to facilitate Indian assimilation.

However, any decision to introduce an alternate internationalized private defence sector base would be a momentous one, like the 1991 reform. Not easy to come by. The move to merely expand the PSU base is politically less risky and remains the official policy.

Hon Defence Minister had recently said that no developed nation would share its best technology, we would get only the second best. While this is true presently, this constraint can be met by enabling institutional arrangements which provide unfettered decision-making and policy making legally for their investors and management per Indian as well as international needs.

The old case study of Bokaro Steel plant is illustrative here. Later the steel sector expansion is coming thanks to private investments. Same story in Airlines, telephony, automotive and other sectors.

But aviation technology is of different grade in terms of system complexity and reliability needs. It would require incredibly complex set of negotiation to establish an autonomous policy decision making institutional structures amenable to the needs of both India and developed civil democracies.

There are two American catch phrases which assume significant meaning in our current context. One is -- arsenal of democracy -- and the second one is -- military-industrial complex --. The first phrase makes new sense in the Indian context of emerging security threats. While the second phrase points to internal political risks due to such large-scale investments.

How to cope realistically with the emerging threats while safely managing the internal risk is the question which remains unanswered.

Was when Kurt Tank was heading HAL.
You can google him and read about him.

Kurt Tank was a brilliant engineer who designed the FW-190

After the war after a brief stint in Argentina, Tank moved to India. First he worked as Director of the Madras Institute of Technology, where one of his students was Abdul Kalam (later Kalam became President of India and designed indigenous satellite launch vehicles and missiles). Kurt Tank later joined Hindustan Aeronautics, where he designed the Hindustan Marut fighter-bomber, the first military aircraft constructed in India. The first prototype flew in 1961; the Marut was retired from active service in 1985. Tank left Hindustan Aeronautics in 1967 and by the 1970s had returned to live in Berlin, basing himself in Germany for the rest of his life. He died in Munich in 1983.

Indians really do not have the zeal and expertise to design well.

    

India to Commit $50 Billion to Military Modernization over Next Five Years, Aviation Week Reports from Aero India

Air show rich with market-moving news, showing growth in key region, all on AviationWeek.com

NEW YORK, Feb. 14, 2011 /PRNewswire/ -- Aviation Week's exclusive reports from Aero India, the country's 8th international exhibition on aerospace, defense and civil aviation, are available on its Aero India and India web channels, including a report that India is dedicated to making significant near-term investments in aerospace and defense (A&D) programs: $50 billion for defense and $80 billion overall by 2015.
"While the Medium Multi-Role Combat Aircraft (MMRCA) competition—popularly referred to in the Indian media as the 'mother of all deals'—receives great attention, there are other areas where the Indian government has declared an interest," according to a Feb. 7th Aviation Week & Space Technology article. "Fixed-wing aircraft, rotorcraft, guided weapons and space asset requirements, spread across the four services and the paramilitary forces, will make India one of the heaviest buyers of military equipment in the world this decade."
As the International Media Associate of Aero India, Aviation Week's thorough multimedia coverage of the show includes a video about the Indian fighter competition by International Editor Robert Wall. Coverage of India's top A&D companies, fighter competition, recent aircraft purchases and current defense fleet is included at http://aviationweek.com/aeroindia, along with blog posts, photos and digital issues of ShowNews. http://aviationweek.com/india also features articles, blogs, photos, an interactive map of A&D companies in India, and two issues of Aviation Week & Space Technology (Feb. 7 and 14) dedicated to Indian aerospace.
"India represents a significant, growing and globally minded A&D market," said Iain Blackhall, civil aviation publisher, Aviation Week. "India's civil aviation market is projected to increase more than 18% annually, and the government has pledged a strategic focus on aerospace and $80 billion in procurement by 2015. This is a key market for the A&D industry, and Aviation Week is dedicated to covering its development with the industry-leading insights and analysis that our customers around the world expect from us."
About Aviation Week:
Aviation Week, part of The McGraw-Hill Companies, is the largest multimedia information and services provider to the global aviation, aerospace and defense industries, and includes http://AviationWeek.com, Aviation Week & Space Technology, Defense Technology International, Business & Commercial Aviation, Overhaul & Maintenance, ShowNews, Aviation Daily, Aerospace Daily & Defense Report, The Weekly of Business Aviation, Aviation Week Intelligence Network, MRO Links and MRO Prospector. The group also produces major events around the world.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the knowledge economy. Leading brands include Standard & Poor's, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at www.mcgraw-hill.com.
SOURCE Aviation Week
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100 years of Indian Aviation

The Indian aviation industry turned exactly a century old yesterday. Since the first 10-km flight from Allahabad to Naini, the sector holds the distinction of being the fastest growing and the 9th largest in the world today
EXACTLY a century ago, when India's first commercial flight took off for Naini from Allahabad, not many who witnessed the birth of the country's aviation sector could have foreseen that it would grow to become the ninth largest in the world and ferry close to 50 million people a year.



The first chapter of Indian aviation was penned on February 18, 1911, by French pilot Monseigneur Henry Piguet, who flew a Humber biplane from Allahabad to Naini, just across the Yamuna River, and back covering a distance of about 10 km.

He carried nearly six thousand letters, many of which were addressed to King George V of England with 'First Aerial Post' as the postmark. This was also considered to be the world's first airmail service.

One year later, in 1912, the first domestic air route between Karachi and Delhi became operational. The service between the two cities was operated by the Indian State Air Services together with the Imperial Airways (a UK-based airline).

In 1915, to expand the horizons of the aviation industry, Tata Sons Limited started regular airmail services between Karachi and Madras (now Chennai). They also founded Tata Airlines, which was rechristened Tata Air Services in 1938 and then Tata Air Lines the same year.

On October 15, 1932, J R D Tata himself flew a single-engine aircraft from Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary, flown by former Royal Air Force pilot Nevill Vintcent.

Tata Air Lines did not, however, survive for too long after the end of World War II.

On July 29, 1946, it became a public limited company called Air India and the government acquired 49 per cent stake in it, making it the country's designated flag carrier.

Air India operated its first international flight on June 8, 1948, from Bombay to London.

Shifting base
At the time of independence, nine air transport companies were operational in the British India. After independence, the number reduced to eight when Orient Airways shifted base to Pakistan.

The airlines operational at the time were Air India, Indian National Airways, Air Service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways.

Experts speak

Parvez Damania, who owned Damania Airways, which was sold in 1996, said, "We are the fastest growing aviation market in the world and all the aircraft manufacturers from Airbus to Boeing feel that the Indian aviation market has huge potential.

The airlines operating on the domestic routes are above the world standard. I think there is no need to increase the number of airlines. Instead, the existing airlines should expand by increasing their reach in other routes."

Former DGCA chief, H S Khola, said, "The growth has been phenomenal in the last 20 years since private carriers entered the industry. I feel the government should involve the airlines, too, while planning the sector's growth."

Milestones

1924: Construction of civil airports began in India. Construction began at Dum Dum in Calcutta, Bamrauli in Allahabad and Gilbert Hill in Bombay
1940: Walchand Hirachand set up Hindustan Aeronautics Limited (HAL) in Bangalore in association with the then Mysore Government
1941: India's first aircraft, the Harlow trainer, was rolled out for a test flight
1948: Air India signed an agreement with the Government to operate international services under the name Air India International Ltd
1948: Prem Mathur became the first woman commercial pilot and started flying for Deccan Airways.  She obtained her commercial pilot's licence in 1947
1953: Civil Helicopter Services were introduced in the country
1956: Durba Banerjee was inducted as Indian Airlines' first woman pilot
1960: India entered the jet age with the induction of Boeing 707-437 into Air India's fleet

1985: Captain Saudamini Deshmukh commanded the first all-woman crew flight on an Indian Airlines Fokker friendship F-27 on the Calcutta-Silchar route
1986: The National Airports Authority was constituted
1990-91: Private airlines entered the country after the de-regulation of the civil aviation sector. Private airlines were given permission to operate charter and non-scheduled services under the 'Air Taxi' Scheme. East-West Airlines was the first national private airline to operate in the country after almost 37 years.
1990: At 26, Captain Nivedita Bhasin of Indian Airlines became the youngest pilot in civil aviation history to command a jet aircraft. She also became the first woman pilot on an Airbus A300 aircraft.
1990: Air India entered the Guinness Book of World Records for the largest evacuation effort by a single civilian airline when it flew over 1,11,000 people from Amman to Mumbai in 59 days, operating 488 flights just before the Gulf war began.
1995: Airports Authority of India (AAI) was constituted by merging the International Airport Authority of India with National Airports Authority.
2003: Low Cost Carriers were launched in the country when Air Deccan started its services
2006: The government approved the restructuring and modernisation of Mumbai and Delhi airports through the public-private partnership model

Did you know?
Captain Saudamini Deshmukh commanded the first all-woman crew flight on an Indian Airlines Fokker friendship F-27 on the Calcutta-Silchar route in 1985

Number Game

9
is India's ranking in the global aviation market

82
Number of operational airports across the country

50 mn
Number of air passengers India is expected to ferry this year

735
Number of aircraft operational in the country

Source: http://www.mid-day.com/news/2011/feb/190211-Indian-aviation-Allahabad-Naini-flying-high-100-years-mumbai.htm 

A stroll across Aero India 2011

Feed: Asian Skies
Posted on: 14 February 2011 13:07
Author: Asian Skies
Subject: A stroll across Aero India 2011

Aero India is over. Can't quite believe it as I've been preoccupied with researching and writing features for this major show since I joined FlightGlobal in October. In this video I walk from the chalet row to the Flight Daily News office clear on the other side of the show. While the video is not exactly of the highest quality, I hope that it gives some idea of the scope and atmosphere of this impressive aerospace bazaar. The plane spotting, to say the very least, was phenomenal. Over five days we were treated to the F-16, F-18, Rafale, Eurofighter, Tejas, Su-30, and Gripen. Most of these were at Aero India only because of the MMRCA competition. After the short list emerges later this year the next Aero India 2013 is unlikely to have so much kit flying around. Fighter makers don't spend all that money for fun - though I wish they would. Who will win it? Everyone at the show kept asking me. I kept asking everyone as well. Can't think of something to talk about at Aero India? Well, ask about the MMRCA. Everyone had a different opinion, especially the airframers who pushed their aircraft shamelessly. One PR guy touted his aircraft very hard, as if I were responsible for single-handedly making the MMRCA decision. "You got the sale!" I was tempted to cry. Anyway, I'm gearing up for Avalon in two weeks. To close on Aero India, a few choice snippets from my days there: European PR person: 'The American planes are obsolete, designed in the seventies. The F-16 may have performed well in Vietnam, but this is a new era." (Give me a break: the Super Hornet was designed in the nineties, and the F-16 Block 60 has little in common with the old F-16A, which came well after the war in Vietnam. Ever heard of the F-4 Phantom, dude?). Indian journalist at UK defence presser, asking the first question: "India cancelled the Airbus tanker a few years ago because of overpricing. Isn't overpricing also the case with the Eurofighter?" (The commander of the British air force parried by telling her she needed to consider lifecycle costs, but the head of Eurofighter (in the audience) looked more than a touch annoyed at the question.) Chinese journalist in Defence Minister briefing: "You say that you are friends with China, but why was the Chinese Ambassador only invited to Aero India yesterday? Also, why did it take long for me to get my media pass?" (The defence minister did not answer the ambassador question, but ordered his PR head to sort out the passes, much to the amusement of the gathered media.) Me: "What do you think of China's J-20?" Famous fighter aircraft designer: "The media are reporting it is stealthy, but it does not have any real stealth characteristics, and we don't have any idea what it's made of. It's crazy." Saab spokeswoman: "We're hosting a flight for journalists in the Saab 2000 at noon. Would you like to tag along?" Me: "Sounds great, but there is another Saab aircraft I'd prefer to try out. Hmmm, let me think, I believe its starts with a 'G.'"

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GE Aviation, Air India sign 20-year MRO pact

GE Aviation has signed a 20-year engine maintenance agreement with Air India . The agreement covers the maintenance, repair and overhaul (MRO) of GE90 aircraft engines.

"Air India will expand its MRO capabilities at its Mumbai to include GE90 engine overhaul. The current schedule calls for the Mumbai facility to be certified for basic GE90 MRO by 2012. Eventually, Air India plans to build a new MRO facility in Nagpur that will include GE90 testing capabilities," said a release from GE Aviation.

"Air India has more than 40 years of providing high-quality MRO services in India. Adding GE90 engine overhaul service is the perfect expansion of Air India's MRO capabilities," said Nalin Jain, country director for GE Aviation.

While Air India develops its GE90 MRO capabilities, GE will provide the carrier with overhaul services to support the carrier's GE90 engine fleet.

Source : http://bit.ly/eXuZlw 04/02/2011

Air India to make Delhi new network hub

NEW DELHI: Loss-laden Air India plans to develop Delhi as an additional network hub as its main center of operation Mumbai has become too. The move will help the carrier provide direct connectivity to international customers on its domestic network. The airline operates international flights to London, Frankfurt, New York, Tokyo and Singapore among others.

In a major operational overhaul, the carrier has decided to take a re-look at its international hub in Frankfurt, company CMD Arvind Jadhav is believed to have informed the civil aviation minister Praful Patel in a review meeting of airline in the capital on Tuesday.

The airline has said Frankfurt airport is very expensive and indicated that it would, for the time being, focus on point-to-point traffic. In a presentation to the Union minister Mr Jadhav said that the airline has achieved a higher load factor in the past few months. Air India also said that it will defer the delivery of three B777-300 ER (extended range) as part of fleet rationalisation plan. While the airline chief talked about cost cutting and revenue enhancement measures, the minister asked the company to improve its fleet utilisation.

“The minister has asked for a detailed report in the next 10 days on how it plans to improve capacity utilisation,” a person familiar with the development said. Mr Patel wanted to know as to why the airline’s average fleet utilisation was 8.5 hours while the private carriers managed to fly their aircraft for 12 hours a day. The aviation minister also sought to know the airline’s plan to clear off dues. The Air India top boss said it owed Rs 2,636 crore to oil companies, and its vendors among others. He, however, added that the company would clear the dues shortly. The government recently cleared a proposal to give Rs 800 crore as financial help to the national carrier.

Mr Jadhav said that the airline’s load factor had recently gone up and revenue improved.

“Passenger numbers went up because airline sold tickets at very low rate. The company sold 70% tickets at lower rate,” an airline official said on condition of anonymity. The airline is expected to lose nearly Rs 5,000 crore in the current financial year. It lost a similar amount in 2008-09.

Meanwhile, the Air India board is expected to meet in the next week to consider extension to its consultant Accenture.

To Serve Or Not To...

Services related to aviation sector too have taken a hit

Suneera Tandon

(ABP)

As the aviation sector scrambles to cut its $2-billion (Rs 9,600-crore) losses by resorting to cost cuts and re-negotiating deals, all related businesses — from catering services to in-flight equipment providers — are feeling the pinch as well. “Whosoever is able to provide us with the best service at the best price gets the contract,” says an Air India official. For instance, he says, as there are 2-3 vendors for digital in-flight entertainment, the airline can easily secure the best bargain. “This, however, goes for all airlines. It is not a subjective situation but an objective one. All airlines at this point in time are negotiating and revising expenses incurred and services rendered,” he says.

And the revisions are substantial. The airline used to spend about Rs 100 on a meal for an economy-class passenger and Rs 150-200 for a business-class passenger. Now with the changed scenario, the same meals are contracted for Rs 80-120. Worse, “the conversion of full-service flights to low-cost carriers has affected our business”, says a senior manager at a leading airline catering service provider. A 15-20 per cent drop in catering orders has been seen in the past few months. Jet alone has decided to withdraw seven aircraft in order to convert them into low-cost carriers. Kingfisher, too, has reduced its price per meal by 20-25 per cent. This adds up to a loss of several crores for the catering major.

Meanwhile, Jet will continue to convert more of its full-service carriers to its low-cost Jet Konnect service, where food is sold on board, like at IndiGo and SpiceJet. Air India too is negotiating cost reductions in its in-flight services as it converts its full-service fleet to the low-cost Air India Express. For instance, “last year, we asked newspapers for bulk order rates — now, we do not pay more than 40 per cent of the cover price for the papers”, adds the official at Air India.

There have not been many changes in terms of ground handling. But Jet has cut staff by 2,000 people and sources in Jet say another 2,000-odd (including attrition) would gradually be eased out (see ‘Reconfiguring Jet Airways’). Air India is not laying off as of now and Kingfisher could not be reached to comment on this issue. 

Airhostess training institutes that were thriving in the boom have also been forced to revise their estimates. Airlines such as Jet and Kingfisher have stalled recruitments even though low-cost carriers continue to recruit freshers. “The dip in the aviation industry has definitely affected other related sectors,” says Sapna Jain, director of Air Hostess Academy. “The growth of the aviation sector did not turn out to be the way we expected due to problems beyond our control.” But Jain says the pay packages offered by airlines have not seen any changes at all.

“If this trend continues, we expect to lose anywhere between 35 and 40 per cent of our aviation catering business in the domestic market in the year 2009,” says an official from a catering company. “That is a big figure. Only government intervention at this point in time can reverse the trend and ensure the continuity of full-service flights.” But that’s not likely to happen.

bweditor(at)abp(dot)in

(This story was published in Businessworld Issue Dated 07-09-2009)

http://businessworld.in:80/bw/2009_08_29_To_Serve_Or_Not_To.html

Printed from Sinking Air India has Rs 16000 crore debt TNN 8 August 2009, 01:13am IST NEW DELHI: Saddled with Rs 16,000 crore debt, Air India (AI) has approached government for fresh capital infusion and soft loan even as the airline launched a major cost-cutting exercise. Because of huge losses in the past, AI's net worth has already become zero. However, in its presentation to government, AI's management has proposed a slew of measures for turnaround, which include an IPO in 2012 to raise fresh capital. Government is likely to come out with a detailed financial package on August 25. Besides financial restructuring, the government-owned company has also chalked out a strategy to become profitable. In order to regain its market share, AI would launch a low-cost domestic service in September, CMD Arvind Jadhav said. It is also restructuring operations and hiving off maintenance, repair and overhaul, cargo and ground-handling operations in separate companies. Jadhav said that these units will operate as standalone profit centres and provide services to other airlines also. The airline is looking for capital infusion to soar up the comfort level of its lenders. Jadhav said that according to industry norms, debt should be up to two times of the capital. In this case, government should infuse equity of Rs 8,000 crore in the company. However, sources in the government ruled out such a huge capital infusion. According to them, government is working out a solution to infuse some capital in the airline to restore normalcy in functioning. At present, AI is finding it difficult in arranging even working capital for day-to-day operations as banks are not comfortable in extending fresh loans. The capital infusion will also help AI restructure its debt. Jadhav said the airline is negotiating with banks and financial institutions to turn its high-cost debt of Rs 10,000 crore into low-cost. For this, the banks want the national carrier to get a comfort letter or a sovereign guarantee from the government. Air India Express, the national carrier's low-cost entity, will commence domestic operations from September on 27 routes out of the existing 100 routes AI operates. Jadhav said that these routes were not profitable and the company was not only losing money but also passengers to the other low-cost airlines. He said the national carrier was estimating an earning of Rs 180-200 crore through its low-cost operations on the domestic sector, which would ‘‘improve our bottomline". Gradually, Jadhav said, the AI would shift 70% of its existing domestic operations to low cost Air India Express. On manpower rationalisation, he said the creation of subsidiary companies — engineering, maintenance and ground-handling — would lead to almost two-third of the 32,000 staff going out of airline operations, which would lead to lowering of the aircraft-to-employee ratio to match global standards. In the recovery roadmap, the AI chief said employees' participation in the process was absolutely essential, and the unions had been made part of the Turnaround Committee, which would monitor the progress over the next three years. In fact, 50% of the committee member will be from the employees' unions. This committee will deal with nine areas including route and manpower rationalisation, operations and financial restructuring. ‘‘We are officially involving all the employees associations in the roadmap to recovery. http://timesofindia.indiatimes.com/news/business/india-business/Sinking-Air-India-has-Rs-16000-crore-debt/articleshow/4869580.cms

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Chinese spike: China will slash steel capacity by 35m tonnes

Ajoy K Das

KOLKATA: China has approved a plan to eliminate 30 million tonne of iron making capacity and 35 million tonne of steel making this year and shut down steel mills with a total capacity of 100 million tonne of iron production by 2010.
This is part of a package of measures endorsed by the National People’s Congress, the Chinese Parliament, to rein in growth to around 8% in 2007, from 10.7%, last year. In other words, the Indian government may have coaxed domestic steel producers to rollback prices this month in its inflation fight, but next time, if it fails to do so, blame it on China.
China has also reduced steel export rebate to 5% from 11%, stoking price fires globally. Spot prices of benchmark hot rolled (HR) coils have spurted in both, the US and Europe.
In the US, HR coil prices are up $10 per tonne at $590 and in the EU, it is up $30 per tonne to $623 per tonne, in anticipation of tightening of supplies in global markets in the wake of Chinese checks on overproduction and exports.
And all these fast-moving dynamics of global steel markets, promising steel prices another bull orbit, are leaving a very big Hobson’s choice for Indian steel companies. They can ignore government ‘wishes’ of holding price line at pricing committee meetings, of respective steel producers, in first week of April and get to ride the next bull run.
Or companies maintain domestic prices and watch rising potential from export realisations as international prices surge ahead of Indian price of steel.
But then Indian exports of steel is just 4 million tonne of total production of 40 million tonne. And steel producers are in no position to ramp up production, ignoring interest of long-term domestic customers and evoking government ire once again in case of shortages in domestic markets.
A highly placed official of Steel Authority of India Ltd (SAIL) said, “Every aspect of steel production in India has global linkages. If pricing is cut off from it, margins can remain positive only for a very short time.”
“Take rising cost of imported inputs. SAIL projects coking coal imports in 2006-07 at 9.49 million tonne compared with 7.4 million tonne imported in 2004-05. If domestic steel prices are not linked to international markets and not factor in the higher input costs like coking coal, either margins turn negative or there is a subsidy to compensate for shrinking difference between cost of production and selling price. And here we are not even talking of generating surplus to fund all mega-capacity creation plans,” officials said.
A senior official from the Union steel ministry said, “The government’s has little room to move in influencing prices in a decontrolled regime. It has used its power of persuasion once. But cannot expect such powers to be effective in face of global trends.”
Industry analysts quoting China National Bureau of Statistics said that fixed asset investment in steel projects slowed down in 2006 to $29 billion, down 2.5% over previous year.
According to reports in The Economist, the Chinese government is moving to rein in Olympics-fuelled property and construction boom to prevent a hard landing of the economy. But despite this, steel demand is poised to grow 13% in 2007.
The country’s National Bureau of Statistics projects that production cuts and rising demand will turn China ‘s 43 million tonne of steel exports to negative.
Simply put, this will make the dragon a net importer once again - that’s another bullish element in the global markets that Indian producers may not ignore when its time for the next pricing strategy.
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