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Qatar Airways commences services to Chicago

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by Devesh Agarwal

Qatar Airways’ commenced its thrice-weekly passenger services between Doha and Chiacgo, The Windy City. Chicago will become the 126th destination for the middle east carrier, and its fourth US gateway after New York JFK, Washington Dulles, and Houston George Bush Intercontinental.

The Doha Chicago route is being operated with a Boeing 777-300ER aircraft in a two-class configuration of 293 seats in Economy Class and 42 in Business Class.

Flight QR991 arrived to a warm welcome at a grand airport ceremony attended by a number of dignitaries, including Qatar’s Ambassador to the United States of America His Excellency Mr. Mohamad Bin Abdulla Al-Rumaihi, Qatar Airways Chief Executive Officer Akbar Al Baker and airport officials.

Current schedule


QR991 departs Doha 08:00, arrives Chicago 14:30 Tuesdays, Thursdays, and Saturdays
QR992 departs Chicago 20:55 Tue, Thu, Sat, arrives Doha 18:25 the following day

The service will move to a daily schedule from June 15th with no change in flight timings.

Airline body IATA re-structures divisions and consolidates its geographies

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The global airline body, The International Air Transport Association (IATA), which represents about 240 airlines, announced an organizational restructuring of its main divisions and regional operations which will take effect from 1 July 2013.

A key guiding principle of the restructuring is the concept of ‘Global Development, Regional Delivery’. Tony Tyler, IATA’s Director General and CEO said
“IATA is changing to deliver even greater value to its members. Strengthening our regional structures where we are closest to our members will help us to understand and meet their needs better. We have also regrouped activities that have grown organically over time with the goal of being more intuitive to those we deal with. This will optimize our ability to develop, modernize and deliver the global standards which are the foundation of aviation-enabled global connectivity,”
Some major highlights of the changes:

Regions


IATA’s regional operations will be consolidated from seven regional structures into five. These will be based around the five hubs (Amman, Beijing, Madrid, Miami and Singapore) where IATA has already been amalgamating activities associated with its industry financial systems. Each region continues to be led by a Regional Vice President (RVP) who is responsible for driving all activities within their region. RVPs will report to the Director General and CEO.
  • North and South America will be consolidated into an Americas region and based in Miami. The combined region will be led by Peter Cerda who is promoted from Regional Director for Safety, Operations and Infrastructure for the Americas to RVP for the Americas.
  • Africa and Middle East North Africa will be combined into one region to be known as Africa and Middle East. Hussein Dabbas, from IATA’s Amman regional office, will lead the region as RVP.
  • Asia-Pacific, North Asia and Europe will continue to serve members in those regions as in the current structure with regional offices in Singapore, Beijing and Madrid. The RVPs leading these regions continue to be Maunu Von Lueders, Zhang Baojian and Rafael Schvartzman, respectively

Divisions


IATA’s four externally-focused head office divisions will be re-organized into five in order to bring together activities sharing common stakeholders and focus. These are:
  • Airports, Passenger and Cargo Services (APCS): This is a newly created division that will combine the association’s main activities with respect to airports (including infrastructure development and financing), security, passenger and cargo services. It will be led by Thomas Windmuller, currently Senior Vice President (SVP), Member and Government Relations.
  • Member and External Relations (MER): This division will take primary responsibility for the association’s advocacy activities. It will be led by Paul Steele who is promoted to SVP from his current role of Director of Aviation Environment, which he has held since 2007.
  • Safety and Flight Operations (SFO): This division will handle all aspects of flying operations (including air traffic management) and safety (including auditing). It will be led by Guenther Matschnigg in a continuation of his current role as SVP of Safety Operations and Infrastructure.
  • Financial and Distribution Services (FDS): This division will focus on IATA’s financial services (including the settlement systems) and drive the association’s distribution initiatives (including the development of the New Distribution Capability). It will be led by Aleksander Popovich in a continuation of his current role as SVP of Industry Distribution and Financial Services.
  • Marketing and Commercial Services (MACS): This division will be the central driver of IATA’s commercial activities which support its many industry initiatives. The division will continue to be led by Mark Hubble, SVP of MACS.
The internal Corporate Services division remains under the leadership of Ayaz Hussein, IATA’s Chief Financial Officer.

British Airways commences Colombo route and enhances Hyderabad

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British Airways has commenced a new route to Colombo and enhanced its existing Hyderabad service to six a week.

The airline yesterday announced the start of a three days a week service from London Gatwick to Colombo, Sri Lanka, via Male, Maldives.

To Hyderabad, British Airways appears to be trying to fill the vacancy created by Lufthansa's withdrawal of service. In case of Colombo, Srilankan Airlines is an applicant member to the oneworld alliance of which British Airways is a founding member. The airline will be looking to strengthen alliances in this part of the world.

The Hyderabad service will be operated by a three class Boeing 767-300ER, while the Male/Colombo service will be operated by a three class Boeing 777-200ER.

To Hyderabad

British Airways Boeing 777-200ER receives water cannon salute at Colombo airport. Image courtesy British Airways.
Courtesy British Airways
BA 277 departs London Heathrow at 14:30 except Sundays, and arrives Hyderabad at 4:55 the next morning.
BA 276 departs Hyderabdad at 6:50 except Mondays and arrives London Heathrow at 12:50.
On Wednesdays, flight 276 leaves and arrives 10 minutes later.

To Colombo

BA2043 departs London Gatwick at 19:30 on Sunday, Wednesday, and Friday, arrives Colombo at 12:35 the next afternoon.
BA2042 departs Colombo Monday, Thursday, Saturday 14:05 and arrives London Gatwick at 22:50 the same night.

INFOGRAPHIC: Airline-wise share of international passenger traffic, to and from India, 2011 to 2012

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Based on a report in The Economic Times we have prepared this infographic showing the airlines' market share of international passenger traffic to and from India during fiscal 2011~2012.

airlines' market share of international passenger traffic to and from India during fiscal 2011~2012
The chart throws up some surprises. SriLankan Airlines and Oman Air feature on this list, but Singapore Airlines does not. Hard to accept? and where is AirAsia? Share your thoughts via a comment.

Malaysia Airlines to upgrade Hong Kong route to Airbus A380

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Superjumbo replaces existing Boeing 737 service

by Devesh Agarwal

National carrier Malaysia Airlines will upgrade its twice daily Boeing 737-800 operated Kuala Lumpur Hong Kong route to an Airbus A380 effective May 1, 2013. Hong Kong will be the third A380 destination for the carrier after London and Paris. The new schedule is:

MH72 departs Kuala Lumpur 09:15 arrives Hong Kong 13:05
MH73 departs Hong Kong 14:45 arrives Kuala Lumpur at 18:25

The 494 seater A380 will increase by about 50% the existing capacity of twice daily Boeing 737s, and will also introduce a first class cabin on this premium route offering eight seats. Malaysia's A380 has 420 economy class seats. 350 seats on the main (lower) deck and 70 on the upper deck, and 66 business class seats. All seats are equipped with the usual modern amenities - individual in-flight entertainment with audio video on demand, in-seat power supply, USB ports for BYOD entertainment, etc.

The airline is offering attractive introductory offers on this route for travel till November 30, 2013.

Air Cargo Germany suspends operations

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by Devesh Agarwal

German air freight operator Air Cargo Germany announced a "temporary" but indefinite suspension of all of its operations as of Thursday, April 18.
Air Cargo Germany Boeing 747-400 freighter D-ACGD at Mumbai India. Click on image for a larger view.
ACG Boeing 747-400 freighter at Mumbai. Photo copyright Devesh Agarwal

The carrier, with an IATA code of 6U and based out of Frankfurt Hahn airport, has a fleet of four Boeing 747-400 freighters that are operated from both Hahn and Frankfurt Main airports to destinations across Africa, Latin America and Asia, including Mumbai in India.

A statement by CEO Michael Schaecher posted on carrier's website, says
It is with regret that I have to inform you that we will have a temporary interruption of our services, effective today April 18th, 2013. The suddenness of this interruption is beyond our control and was neither expected nor foreseen in any way.

Our Shareholders are supporting in any way possible and you can be assured that we work around the clock to find sustainable solutions to recommence our services to you. Despite the surprise of this measure, we remain very confident that the operations can be resumed in the next few days.
One of ACG's large shareholders is Volga-Dnepr Airlines, the Russian freighter operator which specialises in over-sized cargo requiring the use of the famous Antonov An-124 mega freighter aircraft.

Boeing slows down 747-8 production rate

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by Devesh Agarwal

US Airframer Boeing announced that it will adjust the production rate for the 747-8 program from two airplanes to 1.75 airplanes per month because of lower market demand for large passenger and freighter airplanes.

Boeing expects long-term average growth in the air cargo market to resume in 2014, and forecasts a demand for 790 large airplanes (such as the 747-8 Intercontinental) to be delivered worldwide over the next 20 years.

The first delivery of an airplane at the new production rate is expected in early 2014. The production rate change is not expected to have a significant financial impact.

FAA Approves Boeing 787 Battery System Design Changes

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The long grounded Boeing 787 fleet across the world are expected to soon return to the skies, as the US Federal Aviation Administration (FAA) today took the next step in returning the Boeing 787 to flight by approving Boeing's design for modifications to the 787 battery system. The changes are designed to address risks at the battery cell level, the battery level and the aircraft level.

Next week, the FAA will issue instructions to operators for making changes to the aircraft and will publish in the Federal Register the final directive that will allow the 787 to return to service with the battery system modifications. The directive will take effect upon publication. The FAA will require airlines that operate the 787 to install containment and venting systems for the main and auxiliary system batteries, and to replace the batteries and their chargers with modified components.

US Transportation Secretary Ray LaHood said
“Safety of the traveling public is our number one priority. These changes to the 787 battery will ensure the safety of the aircraft and its passengers,”
FAA Administrator Michael Huerta said
“A team of FAA certification specialists observed rigorous tests we required Boeing to perform and devoted weeks to reviewing detailed analysis of the design changes to reach this decision,”
To assure proper installation of the new design, the FAA will closely monitor modifications of the aircraft in the U.S. fleet. The FAA will stage teams of inspectors at the modification locations. Any return to service of the modified 787 will only take place after the FAA accepts the work.

As the certifying authority, the FAA will continue to support other authorities around the world as they finalize their own acceptance procedures.

Boeing to begin modifying 787s for return to service

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Boeing image
Today's approval of battery system improvements for the 787 Dreamliner by the U.S. Federal Aviation Administration (FAA) clears the way for Boeing and its customers to install the approved modifications and will lead to a return to service and resumption of new production deliveries.

The FAA's action will permit the return to service of 787s in the United States upon installation of the improvements. For 787s based and modified outside the United States, local regulatory authorities provide the final approval on return to service, but it is expected the local bodies will follow the FAA's lead.

Approval of the improved 787 battery system was granted by the FAA after the agency conducted an extensive review of certification tests. The tests were designed to validate that individual components of the battery, as well as its integration with the charging system and a new enclosure, all performed as expected during normal operation and under failure conditions. Testing was conducted under the supervision of the FAA over a month-long period beginning in early March.

Boeing, in collaboration with its supplier partners and in support of the investigations of the National Transportation Safety Board and the Japan Transport Safety Board, conducted extensive engineering analysis and testing to develop a thorough understanding of the factors that could have caused the 787's batteries to fail and overheat in two incidents last January. The team spent more than 100,000 hours developing test plans, building test rigs, conducting tests and analyzing the results to ensure the proposed solutions met all requirements.

Boeing also engaged a team of more than a dozen battery experts from across multiple industries, government, academia and consumer safety to review and validate the company's assumptions, findings, proposed solution and test plan.

The improved battery system includes design changes to both prevent and isolate a fault should it occur. In addition, improved production, operating and testing processes have been implemented. The new steel enclosure system is designed to keep any level of battery overheating from affecting the airplane or even being noticed by passengers.

Boeing has deployed teams to locations around the world to begin installing improved battery systems on 787s. Kits with the parts needed for the new battery systems are staged for shipment and new batteries also will be shipped immediately. Teams have been assigned to customer locations to install the new systems. Airplanes will be modified in approximately the order they were delivered.

Boeing will also begin installing the changes on new airplanes at the company's two 787 final-assembly plants, with deliveries expected to resume in the weeks ahead. Despite the disruption in deliveries that began in January, Boeing expects to complete all planned 2013 deliveries by the end of the year. Boeing further expects that the 787 battery issue will have no significant impact to its 2013 financial guidance.

Ground crew strike cripples Lufthansa

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by Devesh Agarwal

German carrier Deutsche Lufthansa underwent an almost total shut-down when its ground crew went on strike early Monday over working conditions, causing the cancellation of almost all of the airline’s flights.

In a statement on its website, the carrier said "nearly all Lufthansa flights within Germany and Europe will be cancelled" and "massive flight cancellations and delays are to be expected for long-haul flights". The airline indicates that only about 32 of a total planned 1,720 flights are expected to operate.

The 24 hour strike, which was announced in advance, started around 04:00 CET (02:00 UTC) in Stuttgart and an hour later in other airports around Germany. This is the second wave of strikes by the Ver.di union over wages and working conditions for about 33,000 employees. In the first strike action about a month back, over 700 flights were affected.

One has to feel sorry, at least in part, for the European carriers. They are just about coping with the ferocious competition from global carriers, and now they face industrial action.

Video: How Boeing responded to the Indian Navy's P-8I additional flight and weapons' testing needs

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In 2012, the P-8I being built for the Indian Navy was transitioned in to flight testing by Boeing. With a committed delivery date set, the program was suddenly required to do additional flight testing, including weapons separation testing; and all this without adding any additional time to the schedule. Boeing was required to drop simulated weapons from the wing of a commercial airplane, something no one has ever done before in The Boeing Company.

A military derivative of the Next-Generation 737-800, the P-8I is a sister ship to the P-8A, the United States Navy’s maritime surveillance and submarine hunter. The P-8 is designed to carry weapons both under the wing and in a weapons bay.

Watch this almost four minute video to see how the P-8I team achieved the requirements, much to the astonishment of the Indian Navy program managers and colleagues within the company

Jetihad is born. Etihad buys 24% stake in Jet Airways for $379 million. To inject additional $220 million.

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Etihad Airways to inject additional $220 million in to Jet Airways


by Devesh Agarwal

We are reproducing the official release. Our analysis of this transaction will follow tomorrow morning.

Jet Airways and Etihad Airways at a glance

Highlights

  • Strategic investment under FDI policy of the Government of India will deliver wide-ranging revenue growth and cost synergy opportunities for both airlines
  • Alliance will bring significant passenger benefits with expanded code-sharing, creating a combined network of 140 destinations
  • Alliance will bring significant benefits to the Indian economy, both in terms of growth, job creation, trade and tourism
  • Jet Airways passengers from 23 cities in India to gain direct access to an expanded global network
  • Jet Airways to enhance its services from its primary hubs of Delhi and Mumbai, and introduce new flights from Hyderabad and Bangalore
  • The strategic alliance between the two airlines will bring additional traffic, frequencies and revenues to metro airports, as well as other airports of Airports Authority of India
  • New India-Abu Dhabi routes and Jet Airways to establish a Gulf gateway for flights to the US, Europe, Africa and the Middle East
  • The strategic investment enables Etihad Airways to tap into India’s fast-growing 42 million strong travel market
  • Frequent flyer program members of both airlines will benefit from fully integration with reciprocal earn and spend
  • Alliance will result in both consumer benefits and/or all round efficiencies
  • This strategic investment with a US$600 million commitment from Etihad Airways will help further strengthening of Jet Airways financial position.
Etihad Airways P.J.S.C. of the United Arab Emirates and Jet Airways of India today announced that the UAE national carrier has agreed to subscribe for 27,263,372 new shares in Jet Airways at a price of Rs. 754.74 per share. The value of this equity investment is US$379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways.

Etihad Airways' wider overall commitment to Jet Airways includes the injection of US$220 million to create and strengthen a wide-ranging partnership between the two carriers.

As part of this Etihad Airways paid US$70 million to purchase Jet Airways’ three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. Jet Airways continues to operate flights to London utilising these slots

An amount of US$150 million will be invested by Etihad Airways by way of a majority equity investment in Jet Airways’ frequent flyer program "Jet Privilege", subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.

Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways’ growing global network.

Passengers from 23 cities in India will benefit from direct connections to international destinations. New flights from Jet Airways’ home hubs and metro airports will further strengthen its current operations from these airports. Jet Airways’ vision continues to be to develop Delhi and Mumbai airports as its primary home hubs and connecting them to Asian, European and other regions.

Details of the investment were unveiled by Etihad Airways President and Chief Executive Officer, James Hogan, and the Chairman of Jet Airways, Naresh Goyal.

Mr Hogan said
“We are pleased to have reached this significant stage in India with Jet Airways and are certain the partnership will bring significant benefits and opportunities for global growth to both airlines.

“It is expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years.

“The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world.”

“We look forward to collaborating with Jet Airways and constructively working together with them and their stakeholders to build a sustainable, competitive and profitable airline.”
Mr Goyal said
“I would like to thank the Government of India, especially the Ministries of Civil Aviation, Commerce and Industry, and Finance, for having the foresight to introduce the historic reform of allowing foreign direct investment into civil aviation in India. Infusion of FDI in the domestic sector will result in the improvement of the economics of aviation, grow traffic at our airports and create job opportunities.

“I am extremely happy to be in a partnership with an airline that shares our customer-centric operational philosophy and ethos. I have no doubt that this partnership with Etihad Airways is a win-win situation for all our stakeholders, especially our guests, who will now have access to a much expanded global network.

“This transaction further strengthens the balance sheet of Jet Airways and, more importantly, underpins future revenue streams, which will accelerate our return to sustainable profitability and liquidity.”
A key component of the wide-ranging partnership is expanded codesharing on flights with passengers benefiting from reciprocal ‘earn-and-burn’ rights on the airlines’ frequent flyer programs.

The proposed codeshare expansion will significantly enable Etihad Airways to tap into India’s rapidly growing travel market, providing additional passenger traffic to Etihad Airways’ Middle Eastern, North American and European destinations, and give Jet Airways passengers from various cities access to an expanded network.

Current estimates predict the size of the Indian market to grow to 42 million travellers over the next five years at a rate of 10 per cent per year, while the Indian middle class, which provides the majority of air travel demand, is forecast to grow by 200 million, over the next eight years.

Etihad Airways currently flies to nine Indian destinations including Delhi, Chennai, Mumbai, Kozhikode, Thiruvananthapuram, Hyderabad, Bangalore, Ahmedabad and Kochi, with a total of 59 flights per week.

The partnership will also help drive a significant increase in traffic growth through Abu Dhabi International Airport, as well as Jet Airways’ hubs of Mumbai and Delhi international airports.
Key benefits for both airlines will flow from synergies and cost savings in areas including fleet acquisition, maintenance, product development and training.

The airlines will explore joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support.

Other areas of co-operation will include joint training of pilots, cabin crew and engineers, as well as maintenance of common aircraft types and the consolidation of guest loyalty programs.

A joint project management office will be set up to ensure delivery of all synergy benefits to both parties.

Substantial ownership and effective control will remain with Indian nationals, with Mr Goyal as the non-executive Chairman holding 51 per cent of the company.

Etihad Airways’ investment in Jet Airways follows the minority equity stakes taken by the airline in airberlin, Air Seychelles, Virgin Australia, and Aer Lingus over the last 12 months.

Etihad is being advised by HSBC, DLA Piper, Amarchand Mangaldas, Suresh A. Shroff and Co and PricewaterhouseCoopers on this transaction.

Jet Airways is being advised by Mr Harish Salve, Gagrats, ELP, Ernst and Young, DSP Merrill Lynch Limited and Credit Suisse.

The Queen of Spices crowned in Lufthansa Star Chef Contest

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Winning recipe to feature in Lufthansa flights and The Leela restaurants


Ms. Vandana Sethi was declared the Grand Prize winner of Lufthansa Star Chef Contest in the Grand Finale at The Leela, Mumbai yesterday where 12 aspiring chefs, selected from thousands of contestants across India, vied for top honours in a live cook-out.

Vandana won the battle of taste with her recipe for Khoye ki Subzi, which will feature in the celebrated Star Chef menu on-board Lufthansa’s India and at select restaurants at The Leela.

This contest began as a unique talent hunt on Lufthansa India Facebook page to find the best original Indian recipe. The 12 finalists emerged through a Facebook poll of the best recipes selected by the celebrated Star Chef jury comprising Master Chefs Kunal Kapur, Surender Mohan, and Thomas Brockenauer, all known for their culinary excellence and innovation. MasterChef Kunal Kapur explained
"Vandana’s innovative entrée was a clear winner as she stayed true to India’s culinary traditions,”
Ms. Sethi will fly to Frankfurt for a holiday and visit the LSG Sky Chefs facility in Germany. She also wins a coveted internship at the Leela Group for three months.

Video: 737 door operation - debunking the mid-flight door opening threat

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We hear of drunk passengers threatening to open the door mid-flight, and we have occasionally seen Hollywood or Bollywood showing the door of a plane opening mid-flight. It is just not possible to do such a thing.

Below is a video showing the operations of the door of a Boeing 737 aircraft. Observe, that to open the door outwards of the aircraft, the door has to first move inwards. Since the aircraft interior is pressurised to an altitude of about 8,000ft, there is a huge positive air pressure differential with the outside air pressure which is much lower since the aircraft is typically at 25,000ft or higher. The differential keeps the door pressed against the seal and there is way to move the door inwards to commence the opening process.



Now you know.

University of Applied Sciences Frankfurt launches MBA in Aviation Management course in India

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The Fachhochschule Frankfurt am Main (FH FFM) in collaboration with the University of Petroleum and Energy Studies (UPES), head-quartered in Dehradun has launched a course offering an MBA in aviation management. 28 students have taken up their studies in programme launched in Indian aviation’s metro hubs Delhi and
Mumbai.
EU to India ambassador - Mr. João Cravinho lighting the inaugural lamp with fellow project authorities for the start of Delhi batch

A third batch of students is scheduled to begin in Bangalore in early summer. The programme is being supported by a grant from the European Union until 2015. In team teaching sessions, professors from FH Frankfurt and from UPES are preparing the gradual transition to an Indian faculty-led sessions. While in Mumbai German professors present 90% of the lectures, in Delhi it will be 50%.

Prof. Dr. Yvonne Ziegler, Dean and Project Director, Frankfurt University of Applied Sciences, Business and Law Division said
"Aviation industry interest in the Master's programme is tremendous,"

"The degree course was co-developed with partners from the industry and is therefore adapted to their needs and requirements.”
The four-semester, part-time MBA is aimed at aviation professionals with a minimum of two years of professional experience and offers them an internationally oriented curriculum. Subjects of the curriculum include strategic expertise in aviation, international management and leadership skills as well as consulting and project management.

Rhetoric and press training, airport tours and meetings with industry lobbyists, as well as a focus on the students’ personality development complete the programme. One-to-one career coaching, 360-degree feedback, business etiquette sessions and fireside chats with political and business leaders will prepare students to deal with the professional challenges of a leadership position.

The main objective of the programme "European Indian Institutional Capacity Building for the Civil Aviation Sector - Aviation Diploma Project" is to strengthen the booming Indian aviation sector by educating highly qualified employees and establishing an institutional network between German and Indian universities and business communities.

The application deadline for prospective students of the MBA Aviation Management taking place in Bangalore is May 22, 2013; the programme starts on 4 June. For more information, log on to: www.aviation-mba.in or contact Ms. Himani Raghwani, Project PR and Marketing, FH FFM: Tel:+91-8743-842-145, E-Mail: himani.raghwani@aviation-mba.in

Analysis: India and UAE sign MoU on bilateral air services agreement

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The official version of the press release from the Press Information Bureau of the Government of India.

India and United Arab Emirates (UAE) signed an MoU on Air Services, following the two-day bilateral negotiation at Abu Dhabi today. The UAE had urged India to allocate additional 40,000 seats per week, grant Goa, Pune, Amritsar and Lucknow as additional points of calls, remove the maximum cap prescribed from each point of call in-term of seats / frequency per week and allow 3rd country /domestic code share facility. India was looking at the negotiations in overall economic interest of India and Government’s policy of liberalization for attracting foreign investment in India, including civil aviation sector. The Indian side had requested the UAE side to grant change of gauge facility at Abu Dhabi to Indian carriers in addition to ensuring full fifth freedom rights from UAE.

As per the present Air Service Agreement, the designated carriers of both sides have existing entitlement of 13,330 + 2% flexibility (total 13,600) seats per week with eleven points of call available to UAE . After present negotiations both sides have agreed to allocate an additional entitlement of 36,670 seats per week spread over a period of 3yrs; 11,000 seats per week in year 2013, 12,800 seats per week up to winter schedule 2014 and 12,870 seats per week up to winter schedule 2015. Both sides have also agreed to extend 3rd country and domestic code share facility.

However Indian side has not agreed to the request of UAE for any additional point of call and removal of cap in terms seats/frequency from each point of call. The additional 2% flexibility on total entitlement has been done away with. Both sides have agreed to extend 3rd country code share and domestic code share of designated airlines of either side. The UAE have agreed to Indian request of change of gauge facility and both sides have agreed to allow designated airlines of each side to have the option to change the aircraft in the territory of the other party.

The enhancement in the present capacity spread over three would allow the carriers of both the countries to plan their future operations. The change of gauge facility will provide operational/commercial flexibility to Indian carriers to enable deploy equipment corresponding to market demand. This will help in enhancing international connectivity for Indian passengers and also facilitate local and international route networking.

Our Analysis

  • This agreement covers the UAE excluding Dubai.
  • This agreement is despite the fact that Etihad, had not asked for any increase in capacity, till just before there was traction on the Jetihad stake sale deal.
  • This agreement is an "about-face" of the Indian civil aviation minister's statements earlier this year saying that no additional bilateral privileges would be given to Middle-East carriers which was prompted following the scathing indictment of the civil aviation ministry granting massive seat increases in bilateral agreements, especially to Emirates airline, by India's Comptroller and Auditor General (CAG).
  • This agreement almost quadruples the capacity between India and Abu Dhabi. What makes this agreement incredulous, is that Indian carriers have still not fully utilised the seat capacity of the existing agreement.
  • The "change of gauge facility" (which allows for a change of aircraft size mid-route on a single flight number), along with code-share facility can specifically benefit the Etihad-Jet Airways partnership. The two airlines can now code-share with each other, putting their flight numbers on the other's aircraft, and change aircraft at Abu Dhabi. i.e. Jet Airways can commence a journey in India with a flight number for each of Etihad's destinations, and move passengers on to Etihad metal at Abu Dhabi who will continue the flight with the same Jet flight number but as a code-share. This can be repeated in reverse too.
  • For Etihad which now has a significant say in Jet Airways' international operations, this is a bonanza that will give it the ability to bypass Dubai-based Emirates airline. Etihad will gain the UAE quota of 50,000 seats, plus the 42,000 seats that Jet Airways has requested from the Indian side. A total gain of around 90,000 seats per week, an unheard of 700%+ increase, which will catapult Jetihad over rival Emirates with its 50,000 seats per week to India.
  • Based on this ill-timed agreement, there is growing pressure on the Indian government from other nations, mostly the Middle East for increases. In terms of seats per week, Qatar wants to increase from  24,292 to 72,600 (+299%), Sharjah wants 30,316 from 18,816, Dubai from 54,200 to 74,200 (Dubai has actually asked for a straight doubling of their seat capacity, but not officially).
  • There are a number of eyebrows being raised not just the haste with which the MoU was signed, but also the timing. Being so close to the stake sale of Jet to Etihad, most aviation analysts believe that this MoU was done specifically to help the Jetihad deal go through at the 31.5%+ premiums Jet Airways was demanding of Etihad. All the respected Indian newspapers are raising the spectre that the Indian Government has entered in to this agreement as a quid-pro-quo for benefiting the promoters of Jet Airways, persons who are known to wield tremendous clout in the corridors of power. 

Some recommended quotes and reading of opinions on the MoU and the Jetihad deal

The more problematic case concerns Jet-Etihad. As Jitender Bhargava pointed out in this paper yesterday, the share transaction came simultaneously with the government's decision to dramatically increase the number of flights that could be operated to India and back from Etihad's base in Abu Dhabi. That would certainly have raised the value of Jet to Etihad; in effect, the government had given a free gift to Jet's shareholders - arguably at the cost of Air India and other players. Faced with criticism, the government has justified its action by saying that the number of flights from the two domestic hubs of Mumbai and Delhi would be restricted, but that misses the point. Encouraging more flights from smaller airports to hubs in West Asia undercuts the prospect of developing domestic hubs, and is manifestly indefensible. Predictably, other airlines in West Asia have asked for similar treatment - and the demands plus the Abu Dhabi deal add up to 68 additional wide-bodied flights every day of the week!
- T.N. Ninan, Business Standardeditorial.
Once again, national interest seems to have been subordinated to what is best for one airline company or the other. The government is making far-reaching policy decisions on an ‘airline-to-airline’ basis.
- Jet-Etihad deal and the national interest, P.R. Sanjai, The Mint
This has led to a question: was the grant of additional seats factored in for Jet Airways to obtain a higher valuation compared to what was being discussed in January 2013? Given that the two announcements - stake sale and grant of additional seats - came within hours of each other, was an assurance on additional seats demanded by the airlines and given by the government before the pronouncement of stake sale? These are serious questions because, if the link can be established, it is not only akin to insider trading but also demonstrates how decisions can be forced out of the government by powerful individuals.

......let us welcome Jet Airways as the national carrier because it enjoys the patronage of the Government of India and has been given a head start!
Jet Airways, national carrier?, Jitender Bhargava, The Business Standard
The bilateral agreements are fundamental to this deal. If the bilateral pacts were either delayed or not approved, the deal would not have happened. I am quite certain that valuation is largely a kind of premium and the final data was largely dependent on the bilateral pacts that were signed. If the bilateral pacts were not followed though, I don’t think it would make any sense for Etihad to invest in Jet Airways.

Three months ago, the civil aviation minister had publicly stated that Middle-East carriers would get any traffic rights only if their Indian counterparts were allowed the same privileges. I don't know what happened in those three months for the government to make an about-turn and change its position on not giving bilateral privileges to Middle-East carriers. In fact, Etihad was never in the line for seeking enhanced bilateral agreements. The demand was primarily made by Qatar and Emirates. But this deal had changed the entire scenario.
Kapil Kaul, CEO - South Asia, CAPA, interview with CNBC-TV18

PS: I am travelling en-route to the United States so please bear with any delays in posting articles.

Video: The making of Terminal 2 at Mumbai airport

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While Delhi's IGI airport is India's biggest, arguably the busiest is Mumbai's Chhatrapati Shivaji International Airport (CSIA). The $2 billion Mumbai Airport Expansion project is one of India's most ambitious undertakings ever and uses some extremely innovative construction techniques to overcome problems, bottlenecks, and even local sentiments.

From Discovery Channel's Build It Bigger programme, watch the making of CSIA's Terminal 2.

Don't forget to read host Danny Forster's introduction to the programme, just below the video.



The Chhatrapati Shivaji International Airport in Mumbai is hopping. But the busiest airport in fast-growing India, it is also the most delayed airport in the world. It ushered through 17 million passengers a few years ago, 20 million the next, 24 million the next.. And having made two separate trips to Mumbai to shoot this episode, I can tell you firsthand: it′s an unmitigated madhouse. The chaos begins the moment the plane touches down, with an abnormally long delay to get the airplane to a gate. Once off the plane, the sheer volume of people fighting their way through immigration and baggage claim is mind-bending. Abandon hope of personal space, all who enter here! (For added fun, try elbowing through the crowds while trying to get high-definition television camera equipment though customs.) The airport is so insanely busy it has to be expanded.

But the airport is so insanely busy, how can it possibly be expanded?

That′s the challenge facing construction crews here as they build a brand new international terminal and renovate the domestic one on the original footprint—while 400 flights a day come and go. One engineer compared the whole endeavor to doing open-heart surgery in the middle of a marathon.

Even that doesn′t do justice to the challenges here. India has the highest population of first-time flyers in the world, travelling for education and for work. And in India, a first-time flyer typically has his whole family accompany him to the airport to see him off. And I′m not talking Mom, Dad, and Sis. I′m talking about 37 of his nearest and dearest (affectionately referred to as "weepers and wailers"). Throngs of people. Which means traffic flow in and around the airport has to be negotiated with even greater care.

Skidmore, Owings, and Merrill—SOM—the lead architects, have designed a terminal that accommodates this tradition. But their sensitivity to place and culture doesn′t end there. First, and most incredibly, they built this multi-billion-dollar project around a revered statue of 17th century king Shivaji, after whom the airport is named, to leave access for worshippers. Throughout the terminal, they have incorporated art from different parts of India, unified by the recurring ocellus pattern of a peacock, India′s national bird. That pattern adds lightness and delicacy to an enormous roofscape.

Airports, are, if you take a step back, really just massive roofs under which people and luggage move. In this case, lots of people. SOM used that basic structural fact—airport=huge roof surface—and turned it in to a central theme. The roof rests on mega columns that branch out like trees. They are both decorative and functional: they drain the rainwater, let in a dappling of daylight light, hold up the entire structure and are just plain beautiful. Extremely high-tech, extremely functional, but aesthetically linked to the history and culture of India.

But let′s go up above the roof for an aerial view of this project. Now the heart transplant in the middle of the marathon looks like the easy part. Because the airport is surrounded by slums—in fact, 300,000 people live in slums on airport property. Along with the building of the terminal (and the ongoing operation of this airport) will be the largest slum resettlement project in India′s history. They have resettled 1,000 people; they are planning to resettle 85,000 . . . in a city that′s already unbelievably crowded and comically congested. Mumbai has a population of 20 million, densely packed. It can take five hours to travel the 15 miles from the city center to the airport. Which reminds me: there′s a highway being built as part of this project too.

When it′s all done in 2014, the expanded airport will be an oasis of calm and of careful planning, accommodating 45 million travelers a year. You math types are thinking, "at the rate I mentioned above, they′ll have outgrown the new space by then, right?" Yeah, that′s why they′re building another international airport, Navi Mumbai, about twenty miles away. Can you say, "fast-growing economy"?

Houston Intercontinental airport terminal B sealed after shooting incident

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Houston's George Bush Intercontinental airport (IATA: IAH) is undergoing severe disruptions, as officials have effectively sealed up Terminal B after a fatal shooting earlier today.

The Houston Police report on its Facebook page says
The armed suspect in the airport incident has died from his injuries. He entered Terminal B and fired at least one shot in the air. A nearby Department of Homeland Security Officer heard the gunfire and immediately responded. The Homeland Security Officer and the suspect fired shots simultaneously. The suspect was struck and treated by responding paramedics who pronounced him dead in an ambulance. The Harris County Medical Examiner (Institute of Forensic Sciences) will determine the suspect’s cause of death.

No other travelers in the terminal were hurt. The airport remains safe and the area of the terminal was quickly contained. The investigation remains ongoing.
As a consequence, officials have sealed and closed Terminal B, which operates mostly United Airlines flights. Passengers are being screened and diverted to other terminals. There are severe delays and passengers should check with their airlines immediately. If you are picking up someone arriving, please check, as their flight, will most likely, be diverted to another terminal.

Check the important information page of the airport for latest information. You can also follow the IAH airport on Twitter.

Japan Airines' plans for re-induction of the 787 Dreamliner and fleet re-deployment globally

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JAL 787 at New Delhi prior to grounding
The Japan Airlines (JAL) Group has announced its plans for flights and a phased re-introduction of the Boeing 787 Dreamliner in to service around June 1, 2013.

The airline has set up a 787 dedicated micro-site on its website to explain the 787 fixes.

A new daily 787 non-stop service between Tokyo (Narita) and Helsinki will be launched from July 1, 2013, which was postponed in February 2013.

JL413 departs Narita 10:30 arrives Helsinki 14:55
JL414 departs Helsinki 17:25 arrives Narita 09:05

JAL will restart its 787 daily service between Tokyo (Narita) and Boston and San Diego which were suspended when the Dreamliner was grounded. Similarly the JAL 787 will return to New Delhi too.

JAL 787 re-deployment on existing routes

Larger aircraft, like the Boeing 777-200ER instead of the Boeing 767 will be deployed on Japan and Bangkok and Honolulu routes in order to meet a robust passenger demand and further maximize revenue.

The JAL Sky Suite 777 on the airline's Boeing 777-300ERs has been introduced on European and North American routes, in addition, cabin upgrades and being carried out on aircraft on the Honolulu and Bangkok sectors.


The airline will also introduce in-flight wireless internet, JAL SKY Wi-Fi, progressively on its Frankfurt, London, and Paris routes.

CFM LEAP-1B engine for Boeing 737 MAX completes design freeze.

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by Devesh Agarwal
Image courtesy Wikipedia
CFM International announced that it has completed design freeze, i.e. freezing the design and engine configuration, for the LEAP-1B, the exclusive engine for the Boeing 737 MAX. LEAP is an acronym for "Leading Edge Aviation Propulsion". The company expects the first full engine to test by mid 2014. CFM International, is a 50/50 joint company between Snecma (Safran) and General Electric.

Over the next six months, CFM will finalize and release detailed engine design drawings, leading in to parts manufacturing which will build-up towards end 2013. The current schedule calls for the LEAP-1B engine to undergo CFM flight testing in 2015 and engine certification in 2016, which is keeping in view the 2017 Entry Into Service (EIS) of the 737 MAX.

Unlike Airbus which offers its customers a choice of engines including CFM, Boeing has an exclusive relation with CFM, whose engines have been the sole powerplant for all 737 aircraft sold since 1981.

CFM has been conducting component and rig tests on LEAP hardware for more than five years; the program is now moving into an exhaustive engine ground test phase. The first full LEAP-1A egine, which is an option for the Airbus A320neo is currently being built and is on schedule to begin ground testing this fall. There are twelve LEAP-1B certification engine builds schedule over the next three years.

Overall, CFM will have a total of 28 certification engine builds and 30 flight test engines across the three LEAP engine models.

The LEAP engine will use advanced aerodynamic design techniques, lighter, more durable materials, and leading-edge environmental technologies to provide a 15% reduction in specific fuel consumption (SFC) compared to today’s CFM56 engines which power the current Boeing 737NG.
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