Air New Zealand is warning that cheap fares may not last as it announced an almost doubling of its profit from the same period last year.
The national carrier has had to reduce staff by 5% and cut flights to lower costs.
It says only strong competition is keeping very cheap fares in the market.
"There is work for us to do to improve the profitability of the airline and I do think that some of the fare levels we have seen are not sustainable in the long-term," says Rob Fyfe, Air New Zealand chief executive.
Cost cutting saw the largely state owned company make a $56 million net profit in the six months to December, compared with $24 million a year earlier.
Source://tvnz.co.nz
Saturday, February 27, 2010
Tuesday, December 15, 2009
Kingfisher to fly between Nepal and India
The Nepal Government has permitted Kingfisher Airlines to start air service between Nepal and India.
As per the recently concluded air service agreement between Nepal and India, Kingfisher was given the permission to connect Kathmandu with Delhi and Mumbai.
The airlines company submitted its proposal to operate seven flights a week in Delhi-Kathmandu-Delhi and Mumbai- Kathmandu-Mumbai sector, according to the Ministry of Tourism and Civil Aviation.
Besides Kingfisher, the other airlines that fly to Nepal includes Air India and Jet Airways. This is the sixth foreign destination to be serviced by the airline after London, Dubai, Bangkok, Colombo and Dhaka.
The ministry said that it took positive note of the interest shown by foreign airlines to operate flights in the country in view of the Nepal Tourism Year 2011 that aims to bring in one million tourists.
Source://business-standard.com
As per the recently concluded air service agreement between Nepal and India, Kingfisher was given the permission to connect Kathmandu with Delhi and Mumbai.
The airlines company submitted its proposal to operate seven flights a week in Delhi-Kathmandu-Delhi and Mumbai- Kathmandu-Mumbai sector, according to the Ministry of Tourism and Civil Aviation.
Besides Kingfisher, the other airlines that fly to Nepal includes Air India and Jet Airways. This is the sixth foreign destination to be serviced by the airline after London, Dubai, Bangkok, Colombo and Dhaka.
The ministry said that it took positive note of the interest shown by foreign airlines to operate flights in the country in view of the Nepal Tourism Year 2011 that aims to bring in one million tourists.
Source://business-standard.com
Thursday, September 17, 2009
Air fares slashed by 50% for next three days
Air fares across all airlines was slashed by 50% for the next three days. The move comes after Jet Airways slashed air fares Aviation by 50%. In a bid to lure back passengers, Jet Airways and Jet Airways Konnect had announced a 50 percent discount in fares for five days from Monday.
Jet Airways executive director Saroj Dutta announced that the private carrier had suffered a loss of over Rs 200 crore ($40 million) on account of the pilots' stir since last Tuesday.
This comes as a huge bonanza for passengers. Airlines recorded a double-digit growth in air traffic in August this year, according to official data released by the industry regulator Directorate General of Civil Aviation (DGCA).
Domestic airlines flew 3.67 million passengers in August against 2.92 million in the corresponding period last year—an increase of 26%.
Budget carriers IndiGo and Spice-Jet increased their market share to 13.9% and 12.3%, respectively in August while National Aviation Company of India (NACIL), which runs Air India, and Jet Airways saw their domestic customer base eroding during this period.
While Jet airways has launched a low-fare brand JetKonnect, Kingfisher shifted its capacity to Kingfisher Red. Air India would soon launch its no-frills subsidiary Air India Express in the domestic market to compete with its rivals.
Source://economictimes.indiatimes.com
Jet Airways executive director Saroj Dutta announced that the private carrier had suffered a loss of over Rs 200 crore ($40 million) on account of the pilots' stir since last Tuesday.
This comes as a huge bonanza for passengers. Airlines recorded a double-digit growth in air traffic in August this year, according to official data released by the industry regulator Directorate General of Civil Aviation (DGCA).
Domestic airlines flew 3.67 million passengers in August against 2.92 million in the corresponding period last year—an increase of 26%.
Budget carriers IndiGo and Spice-Jet increased their market share to 13.9% and 12.3%, respectively in August while National Aviation Company of India (NACIL), which runs Air India, and Jet Airways saw their domestic customer base eroding during this period.
While Jet airways has launched a low-fare brand JetKonnect, Kingfisher shifted its capacity to Kingfisher Red. Air India would soon launch its no-frills subsidiary Air India Express in the domestic market to compete with its rivals.
Source://economictimes.indiatimes.com
Friday, August 21, 2009
Virgin America Announces Bag Fee Changes
Virgin America today announced changes to the airline's baggage fees. Effective for all bookings made on or after Aug. 21, 2009, for travel starting on or after Sept. 10, 2009, the airline has changed its baggage fee to a flat $20 rate for all checked items (excluding the first and second bag for First Class travelers; and the first bag for Main Cabin Select and Refundable Fare travelers.) Previously, the airline's fee was $15 for these checked items. Virgin America maintains one of the most generous first bag weight limits in the industry - up to 70 lbs.*
Beginning today, any Main Cabin guest who books a non-refundable ticket for travel starting on or after Sept. 10, 2009, will be charged a flat rate of $20 for each checked bag ($20 for a first checked bag and $20 for the second through the tenth checked bag.) Guests who purchased Virgin America tickets before today or who book and travel before Sept. 10, 2009, will be charged per the airline's previous bag fee rate. Guests can pay checked bag charges when they check in at airport kiosks, on-line or at any airport airline tickets counter.
Source: news.prnewswire.com
Beginning today, any Main Cabin guest who books a non-refundable ticket for travel starting on or after Sept. 10, 2009, will be charged a flat rate of $20 for each checked bag ($20 for a first checked bag and $20 for the second through the tenth checked bag.) Guests who purchased Virgin America tickets before today or who book and travel before Sept. 10, 2009, will be charged per the airline's previous bag fee rate. Guests can pay checked bag charges when they check in at airport kiosks, on-line or at any airport airline tickets counter.
Source: news.prnewswire.com
Saturday, June 13, 2009
Jet Airways, JetLite, SpiceJet reduce airfares by about 48 per cent to increase passenger load on domestic routes
Jet Airways, JetLite and SpiceJet have cut airfares by about 48 per cent to increase the falling passenger load factor on domestic routes. SpiceJet has cut fares by up to 45-48 per cent for passengers travelling between July 1, 2009 and September 15, 2009. A passenger can now fly by SpiceJet from Mumbai to Delhi, Bangalore, Kolkata, Hyderabad and Chennai sectors for Rs 1,830, one-way, all inclusive. The offer is valid for travel to 18 destinations on the SpiceJet network on all direct flights. The all-inclusive fares on offer include passenger service fees and relevant airport charges. A SpiceJet ticket from Mumbai to Delhi on July 1, 2009 currently costs Rs 3,579, including taxes. According to an Economic Times report by Mithun Roy, in order to avail the promotional offer, one has to book tickets by today to avail them. Samyukth Sridharan, Chief Commercial Officer, SpiceJet said, “We have always believed in stimulating the market with attractive fares. This promotion will commence in the coming season.” SpiceJet has 19 aircraft in its fleet and commands a market share of 12 per cent.
Meanwhile, JetAirways also introduced lower domestic fare tickets on selective routes. Jet Airways’ Rs 6,661 one-way ticket, excluding taxes, is valid on Mumbai to Ahmedabad, Bangalore to Kolkata and Mumbai, Delhi to Mumbai and Hyderabad and several other routes across India. The airline is offering Rs 5,551 and Rs 6,001 tickets on Bagdogra-Guwahati and Mumbai-Delhi sectors respectively. All the Jet Airways tickets will remain valid till June 30, 2009. Even its subsidiary JetLite offers an all-inclusive fare of Rs 1,300 on routes such as Kolkata-Guwahati, and Mumbai-Nagpur and Hyderabad sectors. On the Delhi-Ahmedabad and Kochi-Hyderabad sectors, JetLite offers an all-inclusive fare of Rs 1,600. Jet Airways Konnect service has introduced special, all-inclusive fares on several key routes across India. It offers an all-inclusive fare of Rs 1,650 on the Chennai-Bengaluru and Mumbai-Vadodara/Ahmedabad/Hyderabad sectors, among others. On the Delhi-Ahmedabad, Mumbai-Bengaluru and Delhi-Patna sectors, the airline offers an all-inclusive fare of Rs 2,150. It offers an all-inclusive fare of Rs 2,700 on Mumbai to Delhi/Chennai/Lucknow/Kochi, as also Delhi to Bengaluru/Chennai sectors.
Mark Martin, Senior Advisor, KPMG, said, “The ticket prices need to go down to attract more passengers. Competition is ultimately helping passengers. Airlines need to stimulate the market as load factors have been falling since January.”Declining domestic air traffic has hit airlines hard and they have been forced to introduce these temporary offers. Ticket prices have dropped because there is a need to attract more passengers since many have opted to travel by train, said an analyst with a domestic brokerage firm. A drastic cut in airfares is likely to prop up the balance sheet of the declining airline industry, which posted a combined loss of USD two billion in fiscal year 2009. Industry experts said Aviation Turbine Fuel (ATF) prices will remain stable as oil is hovering around USD 70 per barrel. Falling and stable ATF prices will help loss-making airlines reduce their operating costs. ATF accounts for nearly 45 per cent of an airline’s operating costs.
Source://travelbizmonitor.com
Meanwhile, JetAirways also introduced lower domestic fare tickets on selective routes. Jet Airways’ Rs 6,661 one-way ticket, excluding taxes, is valid on Mumbai to Ahmedabad, Bangalore to Kolkata and Mumbai, Delhi to Mumbai and Hyderabad and several other routes across India. The airline is offering Rs 5,551 and Rs 6,001 tickets on Bagdogra-Guwahati and Mumbai-Delhi sectors respectively. All the Jet Airways tickets will remain valid till June 30, 2009. Even its subsidiary JetLite offers an all-inclusive fare of Rs 1,300 on routes such as Kolkata-Guwahati, and Mumbai-Nagpur and Hyderabad sectors. On the Delhi-Ahmedabad and Kochi-Hyderabad sectors, JetLite offers an all-inclusive fare of Rs 1,600. Jet Airways Konnect service has introduced special, all-inclusive fares on several key routes across India. It offers an all-inclusive fare of Rs 1,650 on the Chennai-Bengaluru and Mumbai-Vadodara/Ahmedabad/Hyderabad sectors, among others. On the Delhi-Ahmedabad, Mumbai-Bengaluru and Delhi-Patna sectors, the airline offers an all-inclusive fare of Rs 2,150. It offers an all-inclusive fare of Rs 2,700 on Mumbai to Delhi/Chennai/Lucknow/Kochi, as also Delhi to Bengaluru/Chennai sectors.
Mark Martin, Senior Advisor, KPMG, said, “The ticket prices need to go down to attract more passengers. Competition is ultimately helping passengers. Airlines need to stimulate the market as load factors have been falling since January.”Declining domestic air traffic has hit airlines hard and they have been forced to introduce these temporary offers. Ticket prices have dropped because there is a need to attract more passengers since many have opted to travel by train, said an analyst with a domestic brokerage firm. A drastic cut in airfares is likely to prop up the balance sheet of the declining airline industry, which posted a combined loss of USD two billion in fiscal year 2009. Industry experts said Aviation Turbine Fuel (ATF) prices will remain stable as oil is hovering around USD 70 per barrel. Falling and stable ATF prices will help loss-making airlines reduce their operating costs. ATF accounts for nearly 45 per cent of an airline’s operating costs.
Source://travelbizmonitor.com
Monday, May 25, 2009
Jet to add four new Dubai-India routes
Jet Airways, India's largest private carrier, plans to launch four new Indian routes from Dubai in the next three months, a senior executive said.
The airline launched operations to the UAE last year with daily direct flights to Abu Dhabi in April, followed by Dubai in August.
"From Dubai, we are planning to launch flights to four more Indian destinations – Hyderabad, Kochi, Thiruvananthapuram and Mangalore. Talks are in process and we should be able to launch these routes in the next two to three months," Abraham Joseph, Senior General Manager for Jet Airways Middle East and North Africa, told Emirates Business.
The Indian carrier currently operates daily non-stop flights to Delhi and Mumbai from Abu Dhabi and Dubai. Last month it included Chennai to its route network from Dubai and added one more frequency to Mumbai again from Dubai. Plans are also afoot to launch daily services from Mumbai each to Jeddah and Riyadh starting June 14 this year, Joseph said.
In order to battle the declining demand in air travel and boost traffic on the UAE-India route, the carrier has slashed its airfares by about 20 per cent this year.
The first cut for Jet Airways' airfares was in March this year when the carrier slashed fares by about 12 per cent on flights from the UAE to India. This was followed by a 10-per cent cut in fares last week on the same sector.
Asked if the airline was planning any further cuts in airfares this year, Joseph said: "Airfares are already quite low. I do not think we would be able to reduce it any further than what we already have. As with all other airlines, we also reduced fares because of the market pressures. But it is not good for airlines to keep reducing fares in the long run."
Declining market conditions also forced the carrier, which started international operations four years ago, to pull out of two of its international markets – San Francisco and Beijing – early this year. "We had to pull out of a couple of not-so-good routes in early January. We basically did right-sizing in order to cope with the worsening economic conditions," Joseph said.
Asked if the airline planned to pull out of any of its Middle East markets, he said: "On the contrary we are expanding our reach and operations in this region."
Despite the air travel business suffering from a serious slowdown globally as well as in the region, Jet Airways claims it has witnessed a good 20-25 per cent increase in its future bookings for this summer in Abu Dhabi.
"Our Dubai services have yet to complete a year, but in Abu Dhabi our future bookings for the three summer months – June, July and August – are up about 20-25 per cent this year compared to last summer," Joseph said.
He added the airline's average load factors for the Middle East rested 75 per cent for the year 2008-09. "In the UAE, however, we expect the load factors to be slightly higher – up to 80 per cent, in 2009-10," he said.
Source://business24-7.ae
The airline launched operations to the UAE last year with daily direct flights to Abu Dhabi in April, followed by Dubai in August.
"From Dubai, we are planning to launch flights to four more Indian destinations – Hyderabad, Kochi, Thiruvananthapuram and Mangalore. Talks are in process and we should be able to launch these routes in the next two to three months," Abraham Joseph, Senior General Manager for Jet Airways Middle East and North Africa, told Emirates Business.
The Indian carrier currently operates daily non-stop flights to Delhi and Mumbai from Abu Dhabi and Dubai. Last month it included Chennai to its route network from Dubai and added one more frequency to Mumbai again from Dubai. Plans are also afoot to launch daily services from Mumbai each to Jeddah and Riyadh starting June 14 this year, Joseph said.
In order to battle the declining demand in air travel and boost traffic on the UAE-India route, the carrier has slashed its airfares by about 20 per cent this year.
The first cut for Jet Airways' airfares was in March this year when the carrier slashed fares by about 12 per cent on flights from the UAE to India. This was followed by a 10-per cent cut in fares last week on the same sector.
Asked if the airline was planning any further cuts in airfares this year, Joseph said: "Airfares are already quite low. I do not think we would be able to reduce it any further than what we already have. As with all other airlines, we also reduced fares because of the market pressures. But it is not good for airlines to keep reducing fares in the long run."
Declining market conditions also forced the carrier, which started international operations four years ago, to pull out of two of its international markets – San Francisco and Beijing – early this year. "We had to pull out of a couple of not-so-good routes in early January. We basically did right-sizing in order to cope with the worsening economic conditions," Joseph said.
Asked if the airline planned to pull out of any of its Middle East markets, he said: "On the contrary we are expanding our reach and operations in this region."
Despite the air travel business suffering from a serious slowdown globally as well as in the region, Jet Airways claims it has witnessed a good 20-25 per cent increase in its future bookings for this summer in Abu Dhabi.
"Our Dubai services have yet to complete a year, but in Abu Dhabi our future bookings for the three summer months – June, July and August – are up about 20-25 per cent this year compared to last summer," Joseph said.
He added the airline's average load factors for the Middle East rested 75 per cent for the year 2008-09. "In the UAE, however, we expect the load factors to be slightly higher – up to 80 per cent, in 2009-10," he said.
Source://business24-7.ae
Friday, May 15, 2009
Air talks add flights between RP, Singapore
THE tourism industry’s desire to have more cheap flights to Singapore, among other destinations, has been realized with the increase in airline seat entitlements between the Philippines and that city-state to 26,200 a week.
This was one result of the successful amendment of the Philippines and Singapore air services agreement (ASA) last week that Clark International Airport Corp. (CIAC) president Victor Jose Luciano called “a landmark agreement,” especially for the Diosdado Macapagal International Airport in Clark, Pampanga.
The air talks held in Singapore on May 6 and 7 alloted 11,200 weekly seat entitlements between Manila and Singapore for each side—from 8,700. It also allotted 10,000 seats for each side between Clark and Subic free ports and Singapore; and 5,000 seats to Cebu and Davao cities and back.
Civil Aeronautics Board (CAB) Deputy Executive Director Porvenir Porciuncula said, “We have been asking them since last year to include other points in exchange for their request that more entitlements be added between Manila and Singapore. What has been agreed upon may still be not enough to service demand of Singapore and local carriers.”
He said Philippine Airlines (PAL), Cebu Pacific and Zest Air have all expressed interest in applying for additional flights to Singapore.
PAL flies 20 times per week between the destinations while Cebu Pacific has 18 weekly flights. Zest Air has yet to launch its maiden flight to Singapore pending approval of its application.
Luciano said upon his arrival from the air talks on Friday. “The amended agreement translates to 50 flights weekly between Clark and Singapore, both for passenger and cargo. This air agreement is very good for Clark and the future.”
“Not only that, Clark was given fifth freedom rights to any point around the world, except to the United States and Canada, where air carriers can go beyond Clark to pick up passengers to other destinations in the world and they can do that at the rate of 14 flights per week,” he added.
Luciano is a member of the RP Air Panel headed by Transportation Undersecretary Doroteo Reyes. The other members are the CAB and officials from the Departments of Foreign Affairs and of Tourism, from the CIAC, and representatives of local airlines.
The panel is headed to Spain on May 19 and 20 for similar negotiations. The ASA with Brunei had been signed April, with flight entitlements for both countries increased to two carriers from the previous one, and to seven flights a week from five.
The panel also concluded in March air talks with Australia, resulting in seat entitlements of 6,000 seats from 2,500, for flights between Manila and Clark to Sydney, Brisbane and Perth.
Source:businessmirror.com
This was one result of the successful amendment of the Philippines and Singapore air services agreement (ASA) last week that Clark International Airport Corp. (CIAC) president Victor Jose Luciano called “a landmark agreement,” especially for the Diosdado Macapagal International Airport in Clark, Pampanga.
The air talks held in Singapore on May 6 and 7 alloted 11,200 weekly seat entitlements between Manila and Singapore for each side—from 8,700. It also allotted 10,000 seats for each side between Clark and Subic free ports and Singapore; and 5,000 seats to Cebu and Davao cities and back.
Civil Aeronautics Board (CAB) Deputy Executive Director Porvenir Porciuncula said, “We have been asking them since last year to include other points in exchange for their request that more entitlements be added between Manila and Singapore. What has been agreed upon may still be not enough to service demand of Singapore and local carriers.”
He said Philippine Airlines (PAL), Cebu Pacific and Zest Air have all expressed interest in applying for additional flights to Singapore.
PAL flies 20 times per week between the destinations while Cebu Pacific has 18 weekly flights. Zest Air has yet to launch its maiden flight to Singapore pending approval of its application.
Luciano said upon his arrival from the air talks on Friday. “The amended agreement translates to 50 flights weekly between Clark and Singapore, both for passenger and cargo. This air agreement is very good for Clark and the future.”
“Not only that, Clark was given fifth freedom rights to any point around the world, except to the United States and Canada, where air carriers can go beyond Clark to pick up passengers to other destinations in the world and they can do that at the rate of 14 flights per week,” he added.
Luciano is a member of the RP Air Panel headed by Transportation Undersecretary Doroteo Reyes. The other members are the CAB and officials from the Departments of Foreign Affairs and of Tourism, from the CIAC, and representatives of local airlines.
The panel is headed to Spain on May 19 and 20 for similar negotiations. The ASA with Brunei had been signed April, with flight entitlements for both countries increased to two carriers from the previous one, and to seven flights a week from five.
The panel also concluded in March air talks with Australia, resulting in seat entitlements of 6,000 seats from 2,500, for flights between Manila and Clark to Sydney, Brisbane and Perth.
Source:businessmirror.com
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