SIA flight hit by turbulence; 22 hurt

Eight passengers and 14 crew members were injured on Saturday (Oct 18) when a Singapore Airlines (SIA) flight from Singapore to Mumbai was hit by turbulence on descent.

An SIA statement said: "Singapore Airlines flight SQ424 from Singapore to Mumbai experienced sudden turbulence during descent on 18 October. There were 408 passengers and 25 crew on board."

"Eight passengers and 14 crew sustained injuries and were attended to by medical personnel on arrival at Mumbai Airport. Of the 14 crew, 10 required hospitalisation. They have been cleared and discharged by the medical personnel. All 8 passengers were hospitalised and 6 have been discharged by the medical personnel after examination," it added.

"Our immediate concern is for the well-being of our passengers and crew. Singapore Airlines will provide full assistance to the authorities in their investigations," said the statement.

A passenger on the flight told Channel NewsAsia that his experience on SQ424 was "scary".

Harsh Nayyar, 30, from Australia was travelling to Mumbai to visit his family when the plane hit turbulence. In a Facebook post on the SIA page, he described the incident as "the plane losing altitude in the air". He also said that during the turbulence, passengers in the main deck, including cabin crew, "were thrown into the air" and "hit the roof of the plane".

He added that throughout the ordeal, the pilot "did not speak any word as to what had happened until the end."

SIA acknowledged Mr Nayyar's comments on its Facebook page and said that "investigations are underway". Information regarding the incident will be released "as soon as it is available", the airline added.

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Lone profit-maker IndiGo among India's big airlines

India's biggest carrier IndiGo, which announced on Wednesday (Oct 15) a deal to buy 250 Airbus aircraft, has consistently racked up profits as rivals have drowned in red ink from cut-throat fare wars.

No-frills IndiGo has posted six straight years of profits - even with India's high fuel taxes, ramshackle airport infrastructure and vicious fare fights - thanks to its zealous cost controls, analysts say.

Billionaire airline co-founder Rahul Bhatia is legendarily tight-fisted, telling Forbes magazine in 2010 his credo is "thinking before spending a single dollar" and asking himself, "Do I need to spend it? Can I get away without it?"

The New Delhi-based carrier, co-founded by Bhatia, who is group managing director, and former US Airways chief executive Rakesh Gangwal in 2006, is unlisted. But analysts say IndiGo, which depends a lot on word-of-mouth recommendations rather than advertising, could stage a debut share offer in mid-2015.

IndiGo's stylish flight attendants and spotless plane interiors give the budget airline a premium feel while its strong on-time performance has wooed business and other customers, giving it a one-third market share.

The purchase of the 250 single-aisle A320neo aircraft - Airbus;s single largest order by number of jets - marks Indigo's bet that air travel is only just taking off in the country of 1.25-billion people, analysts say.

The draft order "reaffirms IndiGo's commitment to the long-term development of affordable air transportation" in India, said airline president Aditya Ghosh. The planes' total list price is €20 billion (US$25.6 billion) but Airbus' discounts will likely cut the cost.

"The deal is a strong indicator of the long-term potential of the Indian civil aviation market," Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, told AFP.

For decades, Indians depended on the nation's bone-jolting railway but cheap air fares have encouraged tens of millions of increasingly affluent Indians to fly.

Still, air travel is low per person compared with Americans who make over two flights a year. Indians, by contrast, take just 0.4 airplane trips annually, according to government figures.

The plane order is also part of Indigo's drive to keep its fleet young - it retires its aircraft after six years - to minimise maintenance and fuel costs.

Analysts say IndiGo has taken a leaf from budget US carrier Southwest Airlines in containing costs by keeping operations simple.

It flies to fewer destinations than rivals but offers more flights on those busy routes to maximise plane-capacity and uses just one make - Airbus. Just three years ago, IndiGo ordered 100 A320ceo and 180 A-320neos.

IndiGo, which operates over 500 daily flights with a current 83-plane fleet, has also pared costs by keeping planes aloft longer, fast landing-and-takeoff turnarounds and maintaining a lean staff-aircraft ratio.

Still IndiGo has not been immune to India's sharp economic slowdown, reporting profit last year nosedived by 60 percent to 3.17 billion rupees (US$51.6 million).

But IndiGo outperformed other big carriers. Budget SpiceJet, for instance, posted a record 10.03-billion-rupee (US$162.6 million) loss last year while full-service Jet Airways lost 36.67-billion rupees (US$594.5 million).

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Passengers evacuated from plane after smoke scare in India

Passengers aboard an Indian Indigo jet were evacuated Wednesday (Aug 20) using emergency chutes after air traffic controllers warned the pilot about dense smoke as the plane landed at New Delhi airport. Some of the 147 people on the Airbus A-320 flight sustained minor injuries during the emergency evacuation, said a statement from Indigo, India's leading private carrier.

"All the passengers were evacuated by the right-hand-side slide-chute and one left-hand-side slide chute in approximately 75 seconds," the budget airline said. "We confirm that all passengers and crew members are safe."

The plane was arriving in Delhi from Mumbai. Air traffic controllers informed the pilot about "dense smoke" as the aircraft touched down, the airline said, without giving details of the smoke's origin. The captain immediately ordered the crew to evacuate all passengers.

Some local TV channels reported that the tyres of the plane had caught fire, but the Indigo statement said there had been "no fire and this was not an emergency or priority landing".

The scare comes after the US Federal Aviation Administration (FAA) stripped India of its top safety rating, citing a lack of safety oversight. The FAA decision in January was based on an audit last year of the country's aviation regulator that found 31 issues of concern, including a shortage of well-trained inspectors to carry out safety checks.

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India orders Jet Airways to suspend pilots after mid-air dive

India's civil aviation regulator said Thursday (Aug 14) it has ordered Jet Airways to suspend two pilots after a flight to Brussels made a mid-air dive, forcing air traffic controllers to issue an emergency warning.

The Times of India said the captain was on a scheduled rest break when the plane dropped almost 1,500 metres over Turkey, putting it at an altitude assigned to another aircraft.

Air traffic controllers in Ankara had to issue an emergency warning to the co-pilot on duty, who the paper said "did not notice that the aircraft had lost altitude" because she was using her tablet computer at the time.

The Director General of Civil Aviation (DGCA) said it had summoned the captain and co-pilot for questioning over what it called a "serious incident" during the flight from Mumbai to Brussels last Friday.

"Both the pilots have been taken off the roster pending inquiry," said the regulator in a statement. "Additionally, the Aircraft Accident Investigation Bureau has been asked to conduct a detailed investigation into the incident."

The airline said it had launched its own investigation. "Safety is of paramount importance to Jet Airways, as is also the welfare of our guests and crew," it said in a statement.

Jet Airways, in which Abu Dhabi-based Etihad Airways has a 24 percent stake, is India's second-biggest carrier.

India's air passenger market has expanded at breakneck speed, but many companies are laden with debt due to cut-throat fare wars, high fuel costs and shoddy infrastructure.

In 2011, the airline sector was shaken by a scandal over a number of unqualified Indian pilots flying on fake licences. And in January the US Federal Aviation Administration (FAA) stripped the country of its top safety rating, citing a lack of safety oversight. It downgraded India's aviation safety rating to category two from category one, putting it in the company of countries such as Zimbabwe, Bangladesh and Indonesia.

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TATA SIA names its new airline Vistara

India's newest airline announced on Monday (Aug 11) flights could begin as early as October, saying it was "bullish" about the future even as a rival carrier reported a big loss.

The new airline, to be called Vistara - a Sanskrit word meaning "limitless expanse" - is 49 percent-owned by Singapore Airlines, while the Mumbai-based Tata conglomerate controls 51 percent.

The airline will offer both business and economy class, new chief executive Phee Teik Yeoh told reporters in New Delhi, and hoped to start flying passengers "sometime in October", subject to approval by India's Directorate General of Civil Aviation (DGCA).

The previous Congress government began allowing foreign airlines to buy up to 49 percent stakes in Indian carriers in 2012. India's air passenger market has expanded at breakneck speed but many companies are laden with debts and beset by cut-throat fare wars, high fuel costs and shoddy infrastructure.

India's second-biggest carrier by passengers, Jet Airways, reported on Monday it lost 2.2 billion rupees (US$36 million) in the three months to June 30. The figure was down from the 3.55 billion-rupee loss Jet reported in the same quarter a year ago after it cut financing costs, but the performance underscored entrenched problems facing the sector.

The Centre for Asia Pacific Aviation consultancy estimates the industry will lose US$1.3-1.4 billion in the financial year to March 2015 after losing US$1.7 billion in 2013-14.

IndiGo, India's largest passenger carrier, is the sole airline among the four biggest currently operating to consistently report profits. Kingfisher, another full-service airline owned by liquor tycoon Vijay Mallya, was grounded by huge losses in 2012.

But Vistara's new chief executive projected a strong future for the new carrier thanks to India's fast-growing middle class. "The Indian aviation sector is on the cusp of change," he said, saying the company was "very bullish about the future" thanks to low air-travel penetration in the country of 1.25 billion.

Air trips per person each year in India stand at just 0.07, far behind developed countries such as the United States with 2.49 air trips annually.

Vistara will take delivery of its first plane, an Airbus A320-200, in September, and will have five aircraft by December. It plans to increase its fleet to 20 by the end of its fifth year in business.

The Tata Group, which launched India's first civilian airline - later nationalised - announced its partnership with Singapore Airlines 11 months ago. Tata also holds a stake in an Indian low-cost carrier which started flying in June, operated by Asia's biggest budget airline AirAsia.

Tata said it believed there would be no conflict in holding stakes in two Indian airlines. "AirAsia is a low-cost carrier, Vistara is a full-service carrier - they are in different spaces," said Tata Group spokesman Mukund Rajan.

Dr Rajan, member of the Group Executive Council and Brand Custodian at Tata Sons, and director at TATA SIA Airlines Limited (TSAL), said: “All of us at Tata are extremely pleased to have witnessed the coming together of all the elements that have led to the realisation of Vistara, a long cherished dream for the group that pioneered civil aviation in the country.”

Commenting on the significance of SIA operating in India along with Tata, Mr Swee Wah Mak, executive vice-president commercial at SIA, and director at TSAL, said: “From a global investor’s perspective, the Indian aviation sector has a lot of potential for growth and I am delighted that SIA now has a fruitful role to play here.”

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India probes bank loan to troubled Kingfisher airline

India's top crime fighting body is investigating a US$155 million (S$194m) loan by a state-run bank to debt-ridden Kingfisher Airlines, a police official said Sunday (Aug 10). The Central Bureau of Investigation (CBI) was conducting an initial probe into why the 9.5 billion rupee (US$155 million) loan from the IDBI bank was approved given Kingfisher's levels of debt.

"When the company was in the red why did the IDBI bank give the loan?" CBI spokeswoman Kanchan Prasad told AFP. Kingfisher, owned by India's liquor baron, the flamboyant Vijay Mallya, owes nearly US$1.5 billion to banks, airports, fuel suppliers, staff and others.

The low-cost airline, which did not make any profit since it started operating in 2005, lost its licence to fly two years ago, after it failed to end a strike by staff including over a failure to pay wages.

Owners of Kingfisher's grounded planes have taken them back.

Prasad said the CBI had carried out a "preliminary enquiry" into the loan over the past two months. The next step could be the filing of a formal case. Last week, the CBI arrested the chairman of state-run Syndicate Bank over allegations that he took bribes in exchange for loan extensions to private companies.

Prasad said the two cases were not connected, saying the watchdog was not targeting loans by state-run financial institutions as part of a specific investigation.

Mallya, once the self-proclaimed "King of Good Times", who made his fortune through his liquor business, has been battling to maintain control over his empire. The flamboyant businessman, also a co-owner of a Formula One team, was known to host lavish yacht parties with Bollywood stars and politicians as guests.

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Rats on a plane force Air India to ground aircraft

Air India has been forced to ground one of its planes after crew spotted rats scurrying around the cabin, The Times of India reported on Tuesday. The plane was on its way from New Delhi to Calcutta when staff became aware of the infestation, the paper said.

"Rats on board an aircraft can lead to a catastrophe if they start chewing up electric wires," the paper quoted an unnamed airline official as saying. "If that happens, pilots will have no control on any system on board leading to a disaster."

No one at the airline was immediately available for comment, but an Air India official speaking on condition of anonymity said rats on planes were a "common phenomenon" worldwide and could "get in anywhere". The official added, "They follow the catering vans into the plane when they smell the food."

It is not the first time that India's loss-making carrier has suffered a rodent infestation.
Rats reportedly delayed a domestic flight from Mumbai by almost two hours in February, and in 2009 a flight to Toronto was delayed for 11 hours as staff tried to catch rats.

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India's Jet eyes profit by 2017 with boost from Etihad

Jet Airways, India's second-biggest carrier, forecast Wednesday a return to profit in three years through cost-cuts, route-sharing with new partner Etihad Airways and restructuring of hefty debt. The publicly traded airline, which has not posted an annual profit since 2007, has been struggling in an overcrowded market beset by cut-throat fare wars, high fuel costs and shoddy infrastructure.

"The game plan is in place, it's now about delivery," Jet Airways' new chief executive Cramer Ball told reporters in New Delhi. "It's a three-year plan -- 2015 we will reduce losses, 2016 we will consolidate and 2017 we'll have profitability," he said.

Ball was speaking at the airline's first news conference with Etihad since India cleared in May the fast-growing Abu Dhabi airline's purchase of a 24-per cent stake in the Indian carrier for 21 billion rupees (US$330 million). Jet's shares jumped nearly six per cent on the turnaround plan before finishing up 3.5 per cent at 264.95 rupees. Ball, an Australian, said Jet was already profitable on international routes which contribute 43 per cent of revenues, a figure he projected would rise to 63 per cent by 2015.

All six major airlines, except leading carrier IndiGo, have been haemorrhaging money but analysts project a brighter future longer-term thanks to India's fast-growing growing middle class. India's carriers lost a total $1.3 billion in the financial year to March, the Centre for Asia Pacific Aviation consultancy calculates.

Jet's net loss in the last financial year ballooned to 41.3 billion rupees from a 7.8-billion loss the previous year. Debt stood at $1.8 billion.

Etihad's Jet stake enables it to compete better with regional rivals such as Qatar Airways and Emirates which transport a large slice of Indian passenger traffic to the Gulf and beyond. Etihad's purchase of a minority stake in Jet came after the government relaxed foreign ownership rules to allow overseas carriers to buy up to 49 per cent of local airlines.

Jet's hopes of returning to profit come as Indian skies are set to become more congested. Singapore Airlines and Tata Sons are due to launch a new carrier by October. Asia's biggest budget carrier AirAsia launched an Indian airline in June.

Ball said Jet would look at disposing of some planes to staunch losses. Etihad chief executive James Hogan called India one of the "most dynamic markets in the world" with 42 million passengers travelling annually internationally.

Jet and Etihad are using their alliance to increase their global reach through codesharing, selling tickets on each other's routes. Hogan in the last three years has piloted deals taking stakes in seven ailing carriers to help make desert-oil producer Abu Dhabi a thriving passenger hub.

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Air India pares loss but no privatisation on horizon

State-run carrier Air India has pared its losses thanks to a better all-round performance, but the new right-wing government has no plans to privatise the flagship airline, a statement said.

Air India, once the country's monopoly airline, now holds just 20 per cent of the passenger market as once-loyal travellers fly nimbler private-sector rivals in the midst of cut-throat price wars.

Air India's net loss narrowed to 53.8 billion rupees ($894 million) in the financial year to March 31, from a loss of 54.9 billion rupees a year earlier, junior civil aviation minister G M Siddeswara told parliament in a statement late on Tuesday.

Siddeswara added that there were no plans to sell off Air India "under consideration", despite proposals by Prime Minister Narendra Modi's government to increase privatisation revenues generally to cut a yawning fiscal deficit.

Analysts have long cited Air India as a problem for the government which is dependent on taxpayer funds.

Showing a strong improvement, the airline's operating loss narrowed to 21.20 billion rupees from 38 billion rupees in 2012-13 and 51.40 billion rupees in 2011-2012.

The operating result gives the clearest guide to performance, showing operating expenses against sales revenue, stripping out one-off income or spending.

All but one of India's main half-dozen carriers, Indigo, are losing money, smarting from fare rivalry, high fuel costs and hefty debts.

The government in 2012 gave the carrier a $5.85-billion bailout package.

Air India, which hasn't reported an annual profit since 2007, has "shown improvement in its financial parameters" since the government bailout, the minister said.

Air India has been keen to improve its reputation after a string of recent technical glitches, including last weekend when an India-bound flight from New Jersey in the US was forced to return when an engine caught fire.

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Tata-SIA joint venture to get licence to fly in July: Report

An air operators' permit (AOP) is expected to be issued to the Tata-Singapore Airlines (SIA) joint venture in July and commercial operations are likely to start in September, according to India’s Financial Express newspaper.

In a report on Friday, the Financial Express cited a company official who said the Directorate General of Civil Aviation's audit process is now in "its final stage". With the last leg of approvals in place, the airline will announce its brand name early in August, and take flight in September, it said.

"We expect to get the AOP by July, and the planes (Airbus A320s) will start coming from August. In the first year of operations, we will have five aircraft, increasing it to 20 over the first four years," the official was quoted as saying.

Tata Sons has a 51 per cent stake in the joint venture, with SIA owning the rest. Company CEO Phee Teik Yeoh and commercial chief Toh Giam Ming, were both drafted from SIA to lead the joint venture, according to the report.

The likelihood of the joint venture getting off the ground appeared to be in doubt earlier this month, when a lobby group representing Indian carriers - the Federation of Indian Airlines - asked the Delhi's high court to quash the approval of the Tata-SIA collaboration. The court reportedly sought advice from the fledgling government led by Prime Minister Narendra Modi.

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AirAsia finally soars in India

 AirAsia India finally took off as the fourth low-cost carrier in the country on Thursday with its maiden flight from Bangalore to India’s smallest state, Goa.

Tickets for the airline's maiden flight were sold out within 10 minutes of opening for sale on May 30.

This development in itself has sent shock waves through the highly-competitive sector in India.

The 49:30:21 joint venture between AirAsia, Tata Sons and Telestra Tradeplace offered a fare as low as 990 rupees (US$16.70) for the flight.

Its 25,000 promotion seats were also taken up within 48 hours.

"Our motto has always been to make everyone fly. We have already begun to show that we are true to our promise," said Chief Executive Officer Mittu Chandilya in acknowledging the brisk sale of tickets.

To keep pace with the airline, others in the fray such as SpiceJet and IndiGo have come up with their own promotional fares.

In announcing the launch of four new flights on its domestic routes, Indigo also proclaimed fares of one rupee (two US cents) on the Bangalore, Chennai and Goa routes, taking on the competition from AirAsia India’s five-rupee fare (excluding airport tax and other applicable fees).

The other low cost carrier in India is GoAir.

Mittu had said the airline’s fare will be 35 per cent cheaper than others in the market.

According to the Director General of Civil Aviation, among the domestic carriers, including the full-services ones, IndiGo dominates the local market with a 31.6 per cent share, followed by Jet Airways-JetLite combined at 21.8 per cent in April.

Air India has an 18.3 per cent share, SpiceJet 17.9 per cent and GoAir 9.5 per cent.

Although no one has got the inside of AirAsia India’s game plan, it is an open secret that it won't be flying into crowded sectors, at least for now.

AirAsia India has placed its interest in second- and third-tier cities.

About 50 per cent of the traffic is in Mumbai and New Delhi combined, AirAsia’s Group Chief Executive Officer Tony Fernandes said when the airline was launched.

There are plenty of markets to be developed, he added, highlighting that AirAsia India’s presence will bring new connectivity, more frequency and redistribution of air traffic.

Other airlines furiously lobbied against AirAsia's entry, even after it secured the Air Operator Permit (AOP) last month. It also faced a court case filed by a political party leader objecting to the clearance given to the airline to start operations.

In his no-holds-barred style, Fernandes had lashed out many times over how vested interest was bogging down the Indian aviation industry.

The Indian aviation industry has a $12.6 billion debt and suffered $8.6 billion in cumulative losses.

Fernandes said he had never experienced a situation where an entire industry tried to block his airline.

"Some airlines are scared of us. We must be doing something right," he tweeted recently.

"Help us people of India. Don’t let cartels win and not let (the) ordinary man fly."

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Tata-SIA collaboration hits snag in India

 India's effort to liberalise its airline sector has just taken a stumble.

The birth of a joint venture between Tata Group and Singapore Airlines (SIA), which was approved last year, now hangs in the balance, because of protests from a key lobby group.

The Federation of Indian Airlines - a lobby group that represents leading local carriers - has asked Delhi's high court to quash the approval of the Tata-SIA collaboration.

Its argument is permitting foreign investment in greenfield airlines will jeopardise the interest of the "existing cash-starved domestic airlines".

The court is now seeking advice from the new government.

Sudip Bandopadhyay, managing director and CEO of Destimoney Securities Private Ltd, said: "I am very hopeful that I think the government will take a positive stance and probably give them approval to go ahead, but assuming there is a negative decision, I think it’ll hurt the sentiment to an extent.

“Here we are trying to welcome foreign investment, wanting foreign airlines to come and invest and if you don't let Singapore Airlines come… that will send a wrong signal out and I hope and pray that doesn't happen."

Higher operating costs are squeezing margins in India’s airline industry, and passenger traffic growth is weak.

In addition, its aviation safety ranking was knocked down this year.

The pressure is on for the government to turn around the sector.

Kannan Siva, executive vice president of operations at Aranca, said: "I think in order of priority, the first one would be really looking at the tax structure for aviation turbine fuel that's at a state level that needs to be rationalised or reduced.

“The second area that they would be looking at is reducing airport charges which are pretty hefty in India compared to rest of the world, and also airport taxes that passengers have to bear."

Experts said that the new pro-business government will hopefully boost growth and that will encourage people to spend on air travel.

With a stronger but friendlier regulatory regime, plus relaxation in taxes, Indian carriers could soon emerge from the current slowdown.

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Qatar Airways wants stake in India's IndiGo

Qatar Airways is interested in buying into India's budget airline IndiGo, the head of the fast-growing Gulf carrier said on Monday.

"We are very keen on investing in IndiGo if it's available," Qatar Airways chief executive Akbar Al Baker said, praising the airline as "the most successful Indian carrier".

IndiGo is "the most efficient Indian carrier and the most progressive Indian carrier... We love to be associated to that success," he told a press briefing on the sidelines of an aviation conference in the Qatari capital.

IndiGo is the only carrier not enduring losses in India, whose aviation sector faces rising fuel costs, a drop in passenger numbers, a slowing economy and a price war triggered by tough competition.

The carrier, which was established in 2006, serves 26 destinations across the subcontinent, and has routes to Nepal, Oman, Dubai in the United Arab Emirates, Singapore and Thailand.

It operates a fleet of 78 Airbus A320s.

Qatar Airways is the flag carrier of the energy-rich Gulf state.

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AirAsia India to debut on June 12

Asia's largest budget carrier AirAsia will start flying in India from June 12 with a new no-frills airline, its group chief executive said on Thursday.

Malaysia-based AirAsia won approval from India's regulators in March last year to set up the airline in a joint venture with the giant Tata group and entrepreneur Arun Bhatia's Telstra Tradeplace.

"Very very proud to announce AirAsia India open for sale tomorrow. Wow. First flight June 12th," AirAsia CEO Tony Fernandes said in a tweet.

The low-cost joint venture won an operating permit earlier this month, clearing the final regulatory hurdle and paving the way for more intense competition in an industry in which many of the existing airlines are bleeding money.

The new venture is the first by a foreign airline since India relaxed foreign investment rules in 2012 allowing overseas carriers to take up to a 49-per cent stake in domestic firms.

AirAsia owns 49 per cent, the Tata group 30 per cent and Telstra the balance of 21 per cent.

The budget carrier, which has promised to offer some of the cheapest airfares, will begin ticket sales on Friday.

Low-cost carriers already dominate Indian skies with a near 65 per cent market share, but their fortunes have faded due to aggressive fare rivalry, a slowing economy, high fuel prices and airport charges.

Fernandes, a former record industry executive, took over insolvent AirAsia in 2001 and turned it into one of the aviation sector's biggest success stories.

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AirAsia India takes delivery of first A320 aircraft

AirAsia India took delivery of its first Airbus A320 on Saturday.

"Great news! India’s latest airline, AirAsia India, has taken delivery of its first A320," Airbus tweeted with a picture of the jet.

Airbus said the jet is equipped with Sharklets, which is a wing tip device that helps airlines reduce fuel burn and emission.

"Our first iron bird just left Toulouse to come home to India. Can't wait to revolutionise Indian aviation," AirAsia India's Chief Executive Officer Mittu Chandilya said in another tweet.

AirAsia India was granted an in-principle approval for the import of 10 Airbus A320-200 aircraft in December last year.

The airline is a joint venture between AirAsia, Tata Sons and Arun Bhatia of Telestra Tradeplace.

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Boeing says talks with India's Jet on 'right' track

Aviation giant Boeing said on Thursday talks appeared on track for the multi-billion-dollar sale of its 737 MAX planes to India's Jet Airways, a day after sealing a major transaction with another domestic carrier.

Sale discussions with Jet -- India's leading premium carrier -- "are probably moving in the right direction", Boeing senior vice president Dinesh Keskar said on Thursday.

Keskar declined further comment on the status of the talks with Jet, a longstanding Boeing customer in which Abu Dhabi-based Etihad Airways recently picked up a 24 per cent stake.

Discussions were also under way with state-run Air India about the sale of the single-aisle 737 MAX jets but they could take far longer to come to any conclusion, Keskar said by telephone from an airshow in the southern Indian city of Hyderabad.

"Jet and Air India are obviously candidates for the MAX," said Keskar, speaking after Boeing sealed a $4.4-billion order on Wednesday from fourth-place no-frills carrier SpiceJet for 42 of the MAX jets, a more fuel-efficient version of the widely used 737s.

Boeing's talks with Jet involve the sale of 50 MAX planes with a total list price of around $5 billion, according to local media reports, but bulk orders always command discounts.

With Air India, "right now, we are working on delivery of the Dreamliner and working out issues", Keskar said.

Air India has ordered 27 of the high-tech 787 Dreamliners from Chicago-based Boeing and so far received 13, which have been hit by a string of technical snags.

The Press Trust of India reported Air India might seek compensation for the Dreamliners because it found the planes less fuel efficient than it expected, in addition to undisclosed compensation the airline has already received for delivery delays.

All major Indian airlines, except leading budget carrier IndiGo, are haemorrhaging red ink amid price wars and a sharply slowing economy.

But the sector still is in high-growth mode thanks to vast, untapped potential and a growing middle class and will need a huge number of new planes, experts say.

According to aviation consultancy CAPA, Indian airlines are expected to order a combined 400 planes this year -- over double the number now in service with the five national carriers.

"We've just touched the tip of the aviation iceberg," said Amber Dubey, global consultancy KPMG's India aerospace head, noting "access to aviation is still a dream for nearly 99.5 per cent" of India's 1.2 billion population.

Boeing in a report earlier on Thursday projected demand for over 1,600 new airplanes in India during the next 20 years, valued at $205 billion.

"India's demographics are highly favourable to growth of air transportation" while "the share of India's large population entering the workforce is growing,"Keskar said.

Boeing projects passenger airlines in India will rely primarily on single-aisle planes such as the Next-Generation 737 and the 737 MAX to link cities.

European rival Airbus said in a separate forecast India's carriers will need 1,290 new passenger aircraft valued at $190 billion between now and 2032 to satisfy surging demand.

Indian annual passenger traffic growth rates of 8.6 per cent are well above the regional Asia-Pacific average growth rate of 6.1 per cent and the world average of 4.7 per cent, Airbus noted.

The manufacturers' reports were released to coincide with the five-day air show which winds up this weekend.

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India's SpiceJet places US$4.4b order with Boeing

Indian budget airline SpiceJet has placed an order for 42 Boeing 737 MAX planes in a deal worth $4.4 billion, the companies announced in a joint statement on Wednesday.

Delivery of the single-aisle planes will begin from 2017 as the cash-strapped SpiceJet seeks to win new customers in the vast but fiercely competitive Indian market.

"The induction of Boeing 737 MAX will further modernise our fleet, improve customer experience, and ensure that we operate the most efficient fleet well into the future," said S L Narayanan, chief financial officer of SpiceJet's parent, Sun Group.

The two companies signed a memorandum of understanding on the deal on Wednesday at an air show in the southern Indian city of Hyderabad, according to the Press Trust of India news agency.

India's aviation market has been going through tough times in an economy that grew at a decade low of 4.5 percent last year.

But airline companies see tremendous headroom for the market as the number of people taking flights in India is still very low compared with developed markets.

Low-cost carriers, including SpiceJet, IndiGo and Go Air, already dominate with a near 65-percent market share.

Abu Dhabi-based carrier Etihad Airways recently tied up with one of India's leading airlines, Jet Airways, after the government relaxed foreign investment barriers.

In the statement, Boeing senior vice president Dinesh Keskar said the strong fuel efficiencies of the 737 MAX "supports SpiceJet's mission to become India's preferred low-cost airline".

Boeing says the 737 MAX will feature eight percent lower per-seat operating costs than "the future competition".

Keskar said development of the 737 MAX is on schedule with the first flight slated for 2016 and deliveries to customers to begin in 2017.

Boeing has said the 737 MAX has received more than 1,800 orders so far.

With the latest announcement, SpiceJet has ordered 90 aeroplanes directly from Boeing, which includes the 737-800, 737-900ER and now the 737 MAX.

To date, SpiceJet has taken delivery of 31 of the Boeing planes.

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Indian plane evacuated after catching fire in Nepal

An IndiGo flight from Delhi to Kathmandu evacuated passengers using a slide chute on Saturday after its rear wheel caught fire while landing in the Nepalese capital, the carrier, India's largest airline, said.

"After parking, the ground engineer observed smoke and fire from the right brake assembly... All 175 passengers, one infant and six crew members are safe," said a statement, adding an investigation was underway.

The low-cost airline, launched in 2006, is a privately-held success story, famed for placing the largest-ever plane order of 180 Airbus A320 aircraft worth more than $15 billion in 2011.

US aviation authorities downgraded India's air safety ranking in January to category two, saying its aviation safety supervision did not comply with international safety standards.

The downgrade brought India below Pakistan and on a par with countries such as Bangladesh, Ghana and Indonesia, according to the US Federal Aviation Administration.

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Emerging Asian carriers make presence felt with plane deals

Emerging Asian carriers made their presence felt at a major airshow on Thursday with multibillion-dollar deals that underscored the region's importance as the growth driver of global aviation.

Four relatively small Asian carriers already had a combined order book of more than $11 billion halfway into the six-day Singapore Airshow, with smaller planes as their preference.

Airline executives said many smaller cities in Asia remain underserved despite the explosive growth in budget air travel, and they will use the new planes to connect such destinations to metropolitan centres.

Asia's expanding middle class is driving demand, said Song Seng Wun, regional economist with Malaysian bank CIMB.

"It's really a function of regional economies experiencing spending power of the rising middle class which benefited from so many years of steady growth," Song told AFP.

In the latest deal, Indian carrier Air Costa on Thursday ordered 50 E-Jets E2 aircraft, which can seat 70-130 passengers, from Brazilian manufacturer Embraer worth $2.94 billion.

The deal with Air Costa, which began operations only four months ago, also includes purchase rights for 50 more of the aircraft, both companies announced at the show.

With the orders, Air Costa will become the first customer of the E-Jet E2 in the Indian market when it takes delivery of the first plane in 2018.

Thai budget carrier Nok Air also on Thursday firmed up orders for two Q400 86-seater planes from Canada's Bombardier worth $63 million.

Nok Air indicated it may buy six more depending on its needs.

The Singapore Airshow began Tuesday with an order by Vietnamese budget carrier VietJetAir for 63 Airbus A320 jets worth $6.4 billion.

The deal also covered rights to acquire or lease 38 more A320s, potentially boosting VietJetAir's current fleet of 11 A320s tenfold.

The Vietnamese airline, founded only in 2011, plies domestic routes as well as services to Bangkok, Seoul and Kunming in China with its current fleet of leased planes.

In another deal, US aicraft maker Boeing on Wednesday announced that Nok Air had committed to buy 15 B737s worth $1.45 billion.

Bangkok Airways, which brands itself as a "boutique carrier" that flies to selected tourist destinations, on Wednesday also signed up to buy six 72-600s from European plane-maker ATR in a deal worth $150 million.

Air Costa executives said they would use the E-Jets E2 aircraft from Embraer to serve smaller Indian cities.

"Our focus has been the tier-two and tier-three cities in India," Air Costa chief financial officer Vivek Choudhary told a media briefing Thursday.

"Our philosophy is that we believe that 70 per cent of the population, of the huge 1.2 billion population in India, still reside in these non-metros," he added.

"Basically we are linking the metros to the smaller cities."

Choudhary said the carrier expects the air transport sector in India to grow dramatically in the next 15 to 20 years.

"The huge size of the middle class in India and the profitability levels that are going up adds to the demand in air travel," he added.

Nok Air chief executive Patee Sarasin said his airline was looking to expand into Myanmar following the opening up of the formerly army-ruled state.

"I think Myanmar has really stepped up," Patee told reporters after firming up the two jet orders with Bombardier.

"We think it's a beautiful country and we see a high potential that Myanmar will grow very fast," he said.

"I am sure within the next few years we are going to see Myanmar growing as fast as Vietnam."

Economist Song said such new markets were an "added bonus" as even without them demand for travel in Asia was robust.

"Frontier markets are an added bonus," he said. "Even without the likes of Myanmar, demand continues to grow."

Airbus, Boeing and Embraer -- in their 20-year forecasts for the industry -- all said the Asia Pacific is the key market to enter because of the burgeoning middle class.

Embraer's president and chief executive Paulo Cesar Silva said passenger traffic in the region "is mostly composed by secondary markets with low and medium demand densities of up to 300 passengers daily each way".

"Some 60 per cent of those markets are not served nonstop, and around half of all markets served do not allow for same day return travel," he said.

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Embraer gets US$2.94b order from India's Air Costa

Indian carrier Air Costa on Thursday ordered 50 E-Jets E2 aircraft from Brazilian manufacturer Embraer worth US$2.94 billion, both companies announced.

The deal with Air Costa also includes purchase rights for 50 more of the aircraft, they said at the Singapore Airshow.

With the orders, Air Costa will become the first customer of the E-Jet E2 in the Indian market when it takes the first delivery in 2018, Embraer, the world's third largest commercial aircraft manufacturer, said in a statement.

Air Costa executives said they would use the jets to fly routes in secondary and tertiary markets in India.

Air Costa is part of India's LEPL Group, a diversified company with interests in property and infrastructure development.

The airline started operations in October last year serving several second-tier Indian cities.

The E-Jets E2 aircraft family can seat between 70 and 130 passengers.

"Our focus has been the tier-two and tier-three cities in India," Air Costa chief financial officer Vivek Choudhary told a media briefing.

"Our philosophy is that we believe that 70 per cent of the population, of the huge 1.2 billion population in India, still reside in these non-metros," he added.

"And that is where we feel we need to add value and capitalise on the market... basically we are linking the metros to the smaller cities."

Choudhary said the carrier expected the air transport sector in India to grow at "approximately 15 per cent on a cumulative average for the next 15 to 20 years".

"The huge size of the middle class in India and the profitability levels that are going up adds to the demand in air travel," he added.

Air Costa chairman Ramesh Lingamaneni brushed off concerns that airport infrastructure in the second-tier Indian cities the carrier is targeting may not be up to scratch.

"There is no question on the infrastructure... They (the government) have given a lot of support."

The past two days of the airshow, which runs until Sunday, had been dominated by orders for aircraft from Europe's Airbus and its US rival Boeing.

On Wednesday, Airbus said it received its first order of the year for its flagship A380 superjumbo when leasing firm Amedeo signed an US$8.3 billion deal for 20 of the aircraft.

At the start of the airshow on Tuesday, fledgling carrier VietJetAir also ordered 63 Airbus A320 jets worth US$6.4 billion.

Boeing on Wednesday announced that Thai budget carrier Nok Air had committed to buy 15 B737s worth US$1.45 billion.

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