Vistara

Government May Not Sell Air India If The Price Is Not Right!

AirWhizzMay 24, 2018 No Comments

Government May Not Sell Air India If The Price Is Not Right!

Aviation Insider

Civil Aviation Secretary, Mr. R.N.Choubey, announced on Tuesday that government may pull the plug on sale of Air India if they don’t get the right price for the airline.

He said that the government holds the right to sell Air India and if the bid price is found to be inadequate they may consider not selling the airline. However, he also said that there is still hope and the national carrier may fetch a good price.

In March 2018, the government had decided to sell 76% stake in Air India, along with its subsidiary Air India Express and 50% stake in its ground handling joint venture AISATS, as a single entity.

The Expression Of interest(EoI) has to be submitted by interested companies by May 31st. The qualified bidders will be selected by June 15 and the government will release a Request For Proposal (RFP) which would be a more detailed document on the disinvestment of the airline.

The Successful bidder will be known by end of August after they get the security clearance and are verified by the DGCA that the substantial ownership and effective control will go to an Indian according to FDI norms.

The government will decide the ‘floor’ price for Air India after the financial bids have been received. They have hired Ernst & Young as its transaction advisor to decide on the airline and its asset’s value, which will be used to fix the floor price.

Domestic and foreign firms had shown interest in the airline sale, but many backed out after the EoI was released. Aviation experts say that the reasons for domestic airlines opting out from the bid are as follows-

  • The New buyer will have to take over 61 percent (or Rs 33,392 crore) of the debt burden.
  • The winning bidder has to Retain 10000 – 15000 Air India employees.
  • The government will have 24% stake in the airline after the sale.

Foreign players such as International Airlines Group (IAG), Singapore Airlines, Lufthansa, Etihad and other non-aviation firms have shown interest in the airline, however, they will have to partner with Indian companies to bid for the airline.

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Air India Might Have To Compensate USD $8.8 Million To Passengers On Delhi-Chicago Flight!

AirWhizzMay 18, 2018 No Comments

Air India Might Have To Compensate USD $8.8 Million To Passengers On Delhi-Chicago Flight!

Aviation Insider

Following an incident that happened on a Delhi-Chicago Flight on 9th May, Air India may have to pay its 323 passengers onboard a compensation of $8.8 million.

The flight was delayed due to Directorate General Of Civil Aviation’s (DGCA) order to restrict variations or changes in flight duty time limitation(FDTL) of the flight’s crew.

Here are the details of the incident that took place on 9th May 2018 –

  • Air India flight AI 127 was to depart from Delhi and reach Chicago in 16 hours.
  • The Flight was diverted to Milwaukee, due to bad weather conditions.
  • The duration of a flight from Milwaukee to Chicago is around 19 minutes.
  • The flight could have taken off after the weather cleared up, however, the flight crew was exhausted after travelling for 16 hours and waiting for 2 hours for the weather to settle down.
  • The crew was permitted to only one landing due to the DGCA’s decision to restrict variations in FDTL.
  • The Airline had no choice but to arrange for a new crew.
  • This change in crew caused the flight to be delayed by 6 hours at the Milwaukee airport. Passengers stayed onboard during this time.
  • Milwaukee airport itself was in distress due to diverted flights and did not have a gate available for the passengers to proceed to and get some rest.
  • Amongst the 323 passengers, there were 41 people in wheelchairs, 2 infants and an autistic kid onboard.
  • According to US guidelines, if passengers are onboard for more than four hours for international flights, the airline has to compensate travellers.
  • This delay affected passengers at the Chicago airport waiting for the Air India flight which was to travel back to Delhi.

In such cases, the airline has to pay $ 27,500 per passenger. If Air India is given the order to compensate for this delay, they will have to pay all the 323 passengers, which amounts to $ 8.8 Million.

Air India and The Federation Of Indian Airlines, represented by IndiGo, Jet Airways, SpiceJet and GoAir, submitted a plea on May 15th to reverse DGCA’s decision to not permit variations in the FDTL. The High court has asked the government and the DGCA for their take on the incident and what should be done to solve this situation.

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Iceland’s WOW Air Will Start The ‘Cheapest Flights’ From India To North America!

AirWhizzMay 17, 2018 No Comments

Iceland’s WOW Air Will Start The ‘Cheapest Flights’ From India To North America!

Aviation Insider

There is some good news for air travellers in India. Iceland’s low-cost airline, WOW Air, announced that it will start flying from Delhi to various cities in North America and Europe via Iceland’s capital Reykjavik.

Here are the details about the services being offered by WOW Air –

  • The airline will start its services from December 2018
  • The passenger will just have to pay Rs 13,499 to fly from Delhi International Airport to Keflavik airport located in Reykjavik.
  • From there the flights will take passengers to other North American and European destinations.
  • This fare is inclusive of all taxes. However, the passenger will have to pay for in-flight meals and check-in baggage.
  • The airline will be charging Rs 49,599 for its seats in the premium segment which is inclusive of all taxes.
  • The airline will be flying to 15 North American destinations which include Los Angeles, New York, Chicago, Boston, Toronto and San Francisco.
  • Passengers will also be able to fly to destinations such as Paris, Iceland and London with the airline.
  • The airline will use wide-bodied Airbus A330 Neo’s to fly in India.
  • There will be 5 direct flights a week from India to Iceland and may offer daily services in the future.

The services by WOW Air will reduce the travel time from India to USA to just 20 hours which includes a 2-hour layover in Iceland.

Founder of WOW Air, Mr. Skuli Mogensen, is very excited about this opportunity to operate his airlines in India. According to him, this would be the shortest one-stop layover airline from India to North America.

On a daily basis, more than 20000 passengers travel from India to North America. This move will surely make the airline take advantage of the ever-increasing air passenger traffic in the country and will allow Indian travellers to fly to fly at a lesser cost to new international destinations in a shorter time.

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IndiGo Plans To Expand Its Operations To 24 New International Destinations!

AirWhizzMay 16, 2018 No Comments

IndiGo Plans To Expand Its Operations To 24 New International Destinations!

Aviation Insider

IndiGo Airlines is all set to increase its market-leading share of 39.5% by expanding its flight operations to 24 international destinations in the next 18 months.

Here are all the details of the expansion process –

  • The Airline will order wide-bodied aircraft at the Farnborough air show which will happen in July 2018.
  • The airline will start flying to 18 new destinations in the Middle East, China and Southeast Asia.
  • They will also start 6 long haul flights which will fly to airports in Germany, United Kingdom, France, Belgium and Switzerland.
  • Between October 2018 and March 2019, the airline will start flying to countries like Germany, Iran, Maldives, Afghanistan, France, Saudi Arabia, Thailand and United Kingdom
  • Between March 2019 and October 2019, IndiGo plans to start flight operations to Italy, Myanmar, Switzerland, Belgium and China.

This move is part of IndiGo’s second phase of expansion.

According to an interview conducted by Economic Times with IndiGo’s founder, Rahul Bhatia, expansion of flight operations and fleet size is the airline’s main priority. He also said that the airline is planning to further introduce medium and Long haul flights in the coming few years and increase its fleet size to 200 by the end of 2018.

Currently, the airline boasts of a fleet size of 163 aircraft which fly to 42 domestic and 8 international destinations which include Qatar, Singapore, Sri Lanka, Thailand, Nepal, Oman, Dubai and Sharjah.

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Over 60 Flights Affected At The Delhi Airport Due To Dust Storm!

AirWhizzMay 14, 2018 No Comments

Over 60 Flights Affected At The Delhi Airport Due To Dust Storm!

Aviation Insider

Flight operations were suspended at the Indira Gandhi International Airport after a massive dust storm hit Delhi and its surrounding areas, yesterday evening. 40 airplanes were diverted, and more than 20 flights were delayed.

Here are the details –

  • All domestic and international airlines were affected by the dust storm
  • The Runway was closed down and flight operations were suspended between 4:30 p.m. and 7:15 p.m.
  • More than a dozen flights were diverted to Jaipur International Airport and Amritsar International Airport.
  • 9 Delhi bound flights were diverted to Chaudhary Charan Singh International Airport in Lucknow.
  • Vistara flights from Mumbai, Goa, Srinagar and Bhubaneswar which were told to divert as well.
  • International flights from Tokyo, Newark and Colombo were diverted to different places.
  • Flights from Riyadh, Colombo, Kathmandu, Kabul and Jeddah were delayed due to bad weather.

The Indian Meteorological Department said that the wind speeds were as high as 109 Kmph during the dust storm. There was a sudden change in weather at around 4:30 p.m. which was accompanied by powerful winds and heavy rain.

The department has also warned that 26 districts of Utter Pradesh might see harsh weather changes today.

In the past few days powerful dust and thunderstorms have affected people in Delhi, U.P., Rajasthan, Telangana, Uttarakhand, Punjab and surrounding areas. Almost 152 people have lost their lives and over 430 people have been injured during this stormy season.

If you want to know whether your flight has been delayed or diverted, Simply download the AirWhizz App. Get real-time flight updates and Information on your phone itself and plan your journey accordingly.

Stay safe and Fly Stress-Free!

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Government Will Look Into Air Ticket Pricing Practices!

AirWhizzMay 12, 2018 No Comments

The Competition Commission Of India(CCI) has announced that it will asses the algorithms used by domestic airlines on the ticket pricing. This is being done to check as to why there is a sharp rise in airfares during peak demand.

CCI is the governing body which keeps a check on unfair business practices across different sectors.

They started investigating when the issue of sharp rise in air ticket pricing came to light during the Jat agitation in early 2016. Rail and road connectivity were severely affected by this incident because of which, ticket prices on Chandigarh to Delhi flights shot up sharply.

At a conference organized by The Associated Chambers Of Commerce of India(ASSOCHAM), CCI chairperson D K Sikri addressed this matter. Here’s what he had to say –

  • Secret/collusion cooperation between digital players with the help of self-learning algorithms is one of the biggest challenges the CCI faces.
  • This issue caught the CCI’s attention when there was a sudden rise in airfares for flights between Chandigarh and Delhi during the Jat agitation.
  • When they asked the airlines about this issue, the airline officials said that the algorithms were driving up the prices and they had no clue as to why this was happening.

At the conference, Mr. Sikri also highlighted the fact that algorithms are not systems that are developed on their own and that somebody has put logic into its design.

CCI is in talks with technical experts to understand the indicators & variables used and the weightage given by the algorithm used by airlines. The governing body is looking to develop its own algorithm to look into this issue but that will require a huge investment.

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Telecom Commission Permits Use of Mobile Phones To Make Calls On Flights!

AirWhizzMay 02, 2018 No Comments

Telecom Commission Permits Use of Mobile Phones To Make Calls On Flights!

Aviation Insider

Air travellers in India will now be able to use the internet and make calls on the flight. This is due to the Telecom Commission approving the proposal for In-flight connectivity on Tuesday.

While mobile phone usage will still be restricted during take-off and landing, the Telecom Commission has lifted the ban on the use mobile phones and internet services on the airplane while cruising in the sky.

The in-flight connectivity facility is expected to be rolled out in 3-4 months, once the licenses and back-end agreements are worked out. The telecom department will now have to create a separate category of licensees called In-Flight Connectivity(IFC) provider.

In an article published by us last month, we mentioned how Telecom Regulatory Authority Of India(TRAI) had recommended to the government that in-flight mobile usage and internet services should be allowed under certain conditions.

Here are the highlights of the conditions sent by TRAI –

  • Wi-fi onboard should be provided once boarding is complete.
  • Mobile communication on aircraft be allowed at a minimum altitude of 3,000 metres.
  • Passengers should use internet services in airplane mode.
  • Foreign satellites and gateways should be permitted for IFC providers to operate in-flight wi-fi.

Telecom Commission has accepted all recommendations of TRAI except the use of foreign satellites and gateways because the telecom department wants IFC providers to use Indian satellites for In-flight services and the gateway to be in India.

The prices on which in-flight Wi-Fi will be provided to the passengers will be worked out on a mutual agreement between the service provider and the airline. Passengers may have to pay Rs 200-300 for a 2-3 hour flight and more for international flights.

Major airlines, including Air India and Vistara welcomed the Telecom Commission’s decision, with Civil Aviation Minister Suresh Prabhu saying he will ensure “earliest implementation” of the proposal.

Globally, many airlines are already offering wi-fi for passengers, but they currently have to switch off the facility when they enter the Indian airspace.

AirAsia, Air France, British Airways, Egypt Air, Emirates, Air New Zealand, Malaysia Airlines, Qatar Airways and Virgin Atlantic are amongst 30 airlines that allow mobile phone use on the aircraft.

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HAPPY HOLIDAYS: Airfares Dip By 9% This Summer!

AirWhizzApr 17, 2018 No Comments

HAPPY HOLIDAYS: Airfares Dip By 9% This Summer!

Aviation Insider

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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