Frankfinn to start low-cost airline

New Delhi: Moving a step further from creating manpower for the aviation industry, Frankfinn Aviation Services Pvt Ltd today said it will start a low-cost airline by 2009 and plans to tap the capital market for funding the new venture.
“After having established strong presence in training of skilled manpower for the industry, we are planning to start an airline named ‘Air Frankfinn´ by the end of 2009 or early 2010,” Frankfinn Aviation Services Chairman K S Kohli told PTI.
“It will be a low-cost airlines with frills. We will offer lot of exclusive services and make other airlines run for their money,” he said.
Kohli said the company is in the process of appointing an aviation consultant and would file an application with the government seeking permission for the airline in next three to four months.
The company plans to start-off with a fleet size of five aircraft, of which three would be big and two smaller ones.
The company also has plans to mop up funds from the capital market with an initial public offer in 2009.
24/05/07 PTI/Livemint

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Making a trip? Low budget airline be the guide

New Delhi: Low fare air tickets and Air Deccan were synonymous for a while before the low cost bug bit the other airlines in India. Then the low cost carrier decided to not just offer low fares, but also went on to add destinations to the aviation map. Now, they are looking to offer low cost hotels as well. And not too far in the future the airline will offer low cost holiday packages and cheap car rental services.
Looking for budget hotels? You can book them along with your low fare tickets. How? Well, log on to Air Deccan's website or dial up their call centres, select your destination city and make your hotel bookings.
As Air Deccan has tied up with the travel portal Travelguru, you have access to the travel website's database of nearly 3,000 hotels across the country of which about 1,500 are budget hotels. We did a rough search to give you an idea of the prices they offer. A day-long stay in a deluxe room in central Delhi would cost you about Rs 1,500, while a family room could cost you approximately Rs 3,500. In comparison, a deluxe room will cost nearly Rs 6,000 in Kolkata.
However, if one were to go by what the airline says, budget hotels are available for as low as Rs 375. So there is no way to avoid trawling the website. But to sweeten the deal, the airline now offers a free air ticket for every hotel booking made before June-end.
22/05/07 Geetanjali Shukla/Business Standard/Rediff

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Alliance plans fleet expansion, shifting to budget carrier mode

New Delhi: Alliance Air, the fully-owned subsidiary of Indian, is expanding its fleet of regional aircraft in a bid to revamp its operations as a no-frills carrier. The ageing Boeing 737 fleet of the airline is being phased out and one aircraft has already been dropped from the fleet for conversion into a freighter. The revised business strategy is in line with Indian’s plan to induct two wide-bodied Airbus A330 aircraft and the impending merger with Air India.
Plans are afoot to shift to an internet-based distribution model, curtail in-flight catering and go in for optimum utilisation of crew as well as aircraft. New flights would be introduced to connect regional routes and the airline would do only point-to-point operations like a typical budget carrier, sources in the civil aviation ministry said.In addition, medium-haul routes which do not justify deployment of 100-seater aircraft would be connected through regional jets with 70 seats. Alliance is considering leasing at least half-a-dozen regional jets, the sources added.
After the revamp, the Indian subsidiary would operate ATR turboprops and regional jets, becoming the first airline in India to do so. The company also sought offers for leasing seven more turboprops. All Boeing 737s would go for conversion into freighters by September.
The regional jets would be put into service by Alliance this winter, the sources said.
17/05/07 Economic Times

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Do Indian low cost carriers suffer from identity crisis?

Experts wonder whether Naresh Goyal can make Jetlite’s identity different from Gopinath's Air Deccan. Indian low cost carriers are suffering partly because of an identity crisis, reports CNBC-TV18.
While Naresh Goyal may repeatedly emphasise that Jetlite will not compete with the low cost carriers, experts say, throwing in a meal and a frequent flier program perhaps will not make it any different. Also, Jet will have to price Jetlite lower and give it different routes.
Naresh Goyal could attempt to differentiate Jetlite by focusing on a market segment and cater to it rather than go blindly behind the universal pool of train passengers. Experts say the problem today is that for all airlines, price has become the only selling proposition. No one is investing time or money to in creating a brand.
Brand gurus say this will work to the disadvantage of carriers if they do not attempt to define their target market for the scare of losing some passengers.
11/05/07 Moneycontrol.com

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Happy snacking

New Delhi: No-frill carriers have found a way into their customers' pockets - through their stomach. They are making profits from selling food on board.
One of the first things to get struck out in a low cost carrier (LCC) model is the provision of food and beverages in the flight, which in turn reduces storage cost, cabin-crew cost and the obvious cost of the catering itself.
However, increasingly LCCs and even full-service carriers are laying emphasis on the food being offered on their flights. With world leading flight caterer, Gate Gourmet, set to enter the Indian market and recently launched regional airline MDLR Airlines flaunting its vegetarian menu, the market for in-flight caterers is set to increase.
This month, Gate Gourmet signed an MoU with Advani Hotels & Resorts India for the transfer and sale of its flight catering unit, Airport Plaza Flight Services, the only in-flight caterer at Goa?s international airport.
09/05/07 Radhieka Pandeya/Business Standard

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Flights lag trains on bargains for short-haul travel

Mumbai/New Delhi: Budget carriers may be a good bargain on long-haul routes such as Delhi-Mumbai or Delhi-Bangalore. But on shorter routes, it is still cheaper (and sometimes more convenient) to take a train.
A comparison of air and rail tariffs on key short-haul routes shows that the Indian Railways score strongly over aviation companies – even at the maximum rail fare.
With air fares having recently risen 10 per cent all round on account of fuel surcharges, the differential has widened.
Of course, one is paying a premium for the convenience of arriving at the destination in one and a half hours. But even this is iffy. If the weather is bad, the flight is often cancelled. Plus, with today’s airport security, one needs to check in at least two hours ahead.
Some airline companies suggest that the fare difference vis-a-vis the Indian Railways is offset by shortage of seats.
True, advance bookings may yield cheaper fares but not necessarily a confirmed seat.
03/05/07 P R Sanjai & Anirban Chowdhury/Business Standard

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