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Kingfisher
Airlines aiming for an IPO in 2006
Mumbai:
Kingfisher Airlines is aiming for an IPO of its
shares in 2006 to raise funds to finance the purchase
of its aircrafts. The airline, a wholly owned subsidiary
of the liquor behemoth United Breweries, said it would
seek to open new routes in the months ahead to compete
effectively with other budget and full- service carriers.
Kingfisher Airlines would also float an employee stock
option plan as part of its IPO exercise. "I have not
thought about the size of the IPO as yet because all
the employees of Kingfisher Airlines are being given
stock options, and after that , we can decide. First
of all, the UB Board has to decide on dilution. After
that, we can tell you the size of the IPO," said Dr.
Vijay Mallaya, UB Group Chairman. Jet Airways, a leading
private aviation major, made a successful stock market
debut this year. India's first low-cost airline Deccan
Air is also firming up plans to float public shares.
Replying to the question of whether Kingfisher Airlines
will acquire Sahara Airlines, Mallaya said "I have
no discussion about taking over any airline in India
and certainly not Sahara. There have been speculations,
but I have had no conversations at all." On Kingfisher
Airlines' route expansion plans, Mallya said it would
launch a flight from Mumbai to Goa from August 11.
The service will be offered twice daily. The airline
will also start operating five daily flights on the
busy Mumbai - Delhi route by end August. Kingfisher
Airlines currently offers services in the Mumbai-
Bangalore and the Delhi-Bangalore sectors. It presently
owns two Airbus-320 planes. The airline plans to expand
its fleet to 10 - eight Airbus 320s and two Airbus
319s - by December 2005.
-
July 22, 2005
Indian
Airlines activates massive hiring plan (Go
To Top)
New
Delhi: The Indian Government's decision to go
ahead with its "Open Skies" policy has set off a competitive
spirit among the country's airlines, both public and
private. So much so, that the country's main domestic
carrier -- Indian Airlines -- has announced plans
for a massive hiring exercise to boost its services
to the discerning passengers. Informed company sources
projected the hiring drive as one of the biggest being
undertaken, and said it could possibly include the
recruitment of more than 200 pilots, at least 250
engineers and 400 cabine crew. The sources said that
the recruitment process would commence from the first
week of August, and would be followed by an advertising
blitz in various media networks. Those selected as
pilots and engineers will be deployed to fly and service
the carrier's A319 and A320 aircraft. The management
of the Airline has let it out that it will not be
asking for very experienced cabin crew, suggesting
that Indian Airlines may poach crew from other private
airlines in the days to come. It is alos being said
that Indian Airlines is going ahead with its recruitment
drive in anticipation of the central government's
decision to clear fleet acquisition plans. The domestic
carrier is said to have prepared a training module
for pilots that it will be recruiting well before
the acquisition plans get activated.
With
India having already entered into Open Skies agreements
with the United States, Britain and China earlier
this year, a more competitive marketplace for the
airline industry has been created in the country.
The availability of cheaper and more frequent flights
to India is being seen as a major and convenient incentive
for shuttle workers and business executives. Take
for instance, travel between the U.S. and India. Prior
to the signing of the Open Skies pact in April this
year, airline travel between these two countries grew
86.1 per cent to 5,20,827 in 2004, from 2,79,921 passengers
in 2000, according to the Bureau of Transportation
Statistics. The number of passengers flying between
the two countries grew 29.6 per cent between 2003
and 2004 alone. So, airline officials of both countries
are of the view that the potential for growth in this
sector will be more with the agreement coming into
effect. The open skies agreements removes current
flight availability constraints, as more airlines
are likely to establish routes both within and outside
the country. Indian software development and services
outsourcing companies are also expecting an improvement
in productivity, and quicker response time to customer
requirements as a result of the open skies policy.
The U.S. is presently the largest market for Indian
software development and services outsourcers. In
the fiscal year to March 31, 2004, about 70 percent
of the revenues of these companies came from the U.S.,
according to the National Association of Software
and Service Companies in Delhi. After signing the
aviation pacts with the US and Britain, the Indian
Government is reviewing its open skies policy for
the next peak season between November this year to
March 2006. Every year during the peak travel season,
foreign airlines are allowed unlimited flights into
the country under the open sky policy, and it is but
natural that domestic carriers will also stand to
benefit from this. According to Civil Aviation Minister
Praful Patel, while the government has addressed the
needs of the high density markets of the US and Britain,
it will also address the requirements of the Gulf
and other Asian countries in the near future, which
could mean more business for Indian Airlines.
-
July 22, 2005
Jet
Airways begins flight to Siachen glacier base
(Go
To Top)
New
Delhi: The Government of India has opened strategically
sensitive areas for operation by commercial airliners.
Jet Airways became the first private airline to land
in those areas which were earlier restricted to air
force or government flights. Today, Jet Airways started
its commercial flight from Delhi to Thoise, the base
camp of Siachin glaciers. Maj. Gen. V K Jain, Additional
Director General (Movement ) said that they would
like to welcome any private airline to operate in
such sensitive areas. He said," the army would like
to invite private airlines by open tender methods."
He said that all domestic airlines were invited to
operate the charter flight to Thoise and among them
Jet Airways was short listed and was asked to operate
since it met all terms and conditions for this charter
flight. Meanwhile, at Thoise it was festive mood to
welcome the inaugural flight of Jet Airways. Bursting
of crackers marked the ceremony. Subedar Nakhtar Ram,
who has come back from Siachin and was heading for
his home place in Barmer was very enthusistic. He
said," Earlier it used to take ten to fifteen days
to reach either Jammu or Srinagar.....besides this
there used to be lot of harrasement .... we had to
wait for clear weather...then only we would proceed
for our destination.But now with this flight we are
not only going to save time but even we would be able
to spend more time with our families." Thoise is an
Air Force airfield at the base of Siachin Glacier.
Soldiers getting postings at Siachin had to first
reach jammu by train and there onward the journey
starts by road. The Srinagar- Leh-Siachin route is
not only arduous but also takes anything from five
to seven days...and that too if there are no road
blockades enroute. Lt.Gen.(Retd) IK Verma , Executive
Vice president of Jet Airways, said that this is a
service to the nation and patriotism is the motivating
factor for launching the chartered flight.
-
July 15, 2005
Pak
private airlines eye Indian skies (Go
To Top)
Karachi:
Pakistan's private airlines are now eyeing the
Indian skies for broadening their operations and expanding
their flying networks. Pakistan's three private airlines,
Aero Asia, Airblue and Shaheen Airways have recently
presented to Pakistan's Civil Aviation Authority (CAA),
their flight plans to India, UK and Saudi Arabia and
are looking forward to them being granted permission
to operate flights on the desired routes. "The airlines
have submitted proposals for operating routes for
Europe, Saudi Arabia and India. All the airlines are
hopeful to get the permission in the near future.
They have also started spadework for hiring aircraft
on long-term dry lease. The feasible routes for a
Pakistani airline are UK, Saudi Arabia and India.
Only ethnic traffic is available for Pakistan," The
News quoted a senior executive of a private airline
as saying. CAA officials have said that in case the
federal government did allow things to fall into place,
Pakistan's flagship carrier, Pakistan International
Airlines (PIA) will lose its monopoly on international
routes. "Things are moving very fast to deregulate
the foreign air traffic and finish the monopoly of
the PIA on international routes," the paper quoted
a source as saying. Officials further said that if
the federal government went ahead with the new policy,
it would be the maiden flights for the private airlines
to fly to foreign destinations, other than Dubai.
The private airlines have, as now, started negotiations
for alliances and code sharing with other airlines
in the region to lift the traffic of 5th and 6th freedom,
and are waiting for the government's policy in the
matter. "Each and everything is dependent on the consistency
of the policy. We are waiting for the official announcement
of the policy. Main investment is in the aircraft.
We could not invest in aircraft till the official
announcement of the policy," the paper quoted an official
as saying.
-
July 15, 2005
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