Page 36 - AAA MARCH-APRIL 2012 Online Magazine

AIRLINES

WHO IS dOINg WHAT

PEACH Of AN IdEA bRAvE INdIANS

Japanese carrier Peach Aviation launched a new budget operation from Osaka Kansai to With plenty of capacity, plenty of
Sapporo New Chitose, to: “open a new era of the Japanese airline industry,” according competition and plenty of financial
to CEO Shinichi Inoue. Low-cost competitor Skymark is also ramping up services with problems, Indian carriers are definitely
some 4.4 million passengers per year and 24 Boeing 737 aircraft, and has plans to amongst the brave. According to industry
introduce international services. With Peach starting operations and dubbing itself the analysts CAPA, Indian airlines will lose
first Japanese “genuine LCC”, the competition is likely to intensify in the Japanese LCC up to US$3billion on the last fiscal year’s
sector. In fact the results are already showing with Skymark introducing new services operations, with state-owned Air India
and fare reductions on some routes. Be prepared for the LCC boom in Japan over accounting for the bulk of the losses. The
coming months. most worrying aspect, say observers,
is that a December audit by regulators
PAINfuL MAS raised concerns over safety practices on
many Indian carriers. The audit mentioned
IndiGo’s shortage of instructors and slow
Malaysia Airlines (MAS) reported an training of pilots and cabin crew, but
unaudited net loss of RM1.28billion Aditya Ghosh, IndiGo’s President, has
(US$420million) for Q4 2011, bringing stated that the airline will continue to
the year’s loss to RM2.52 billion expand, with new flights between Delhi
(US$830million). “The accounts for the and Ahmedabad, Lucknow, Jaipur, Goa
year recognise provisions and escalating and Bengaluru. Ghosh maintains the
operational costs which although painful, industry is still capable of growth, saying:
gives us a holistic snapshot of the “Expanding operations across India is
organisation,” said Ahmad Jauhari Yahya, in line with our growth strategy for the
AgREEAbLE JETS Malaysia Airlines Group Chief Executive domestic skies.”
Officer. MAS saw a tiny (2%) increase in
Jet Airways and low cost carriers Group revenue and carried 1.3 million more
Jetstar have announced a new interline (17 million total) passengers compared to HEAdINg SOuTH
agreement. The deal covers flights 2010. “The bottom-line Group losses for
between India, and Jetstar destinations 2011 underscore the imperative need for Air China will launch a direct route
across most of Asia Pacific. Jet Airways Malaysia Airlines to immediately adopt between southwest China’s Chengdu
customers will be able to book a single strong measures to stop the bleeding,” and India’s Bombay in May. The new
combined ticket for travel on Jet Airways, added Yahya. He said these would include service will be the first direct flight
Jetstar, Jetstar Asia or Jetstar Pacific what he called “relentless cost control”, from the Chinese mainland to Bombay,
flights. According to Sudheer Raghavan, staff redeployment, increasing productivity said a spokesman. Air China will run
Chief Commercial Officer, Jet Airways, and efficiency, and further route reviews. four flights a week using Airbus A319s,
this strategic partnership with Jetstar One issue was that passenger traffic was to complement the existing Chengdu-
is a win-win situation for both airlines. up 5% but with a lower seat factor of 75%. Bangalore route opened up in 2009.
“Especially with he growing passenger The cargo division also suffered with an Statistics show that, over 50% of those
loads between India and the Asia Pacific overall slowdown - revenue dropped 14%, on board the Chengdu-Bangalore
region, and as it provides our passengers capacity decreased 9% and yield increased flight are transit passengers, on the
with options to reach more East Asian 2%. With a following wind, the introduction journey between southern India and
cities and Australia seamlessly beyond of the A380 service to Sydney (September) major Chinese cities such as Beijing,
our present points.” will help ease fuel costs. Guangzhou, Shanghai.
36 ASIAN AIRLINES & AIRPORTS MARCH / APRIL 2012 WWW.ASIANAIRLINES-AIRPORTS.COM