Sapphire plans cheap US-India Airline

Nov 21, 2006 Sapphire plans cheap US-India airline

Delaware, USA-based Sapphire Airways is planning to start a low-fare airline that will offer flights between India and the US, becoming the first US low-fare carrier to fly to India.
The company is raising $100 million to set up the discount carrier, said chairman Rahul S Puranik in Mumbai.

The company would soon apply to the US department of transport and the federal aviation authority for license to start the carrier by October 2007, he said.

India and the US last year signed an air services agreement to permit more flights between the two countries. About two million people travel between the US and India every year. Said Puranik, a former pilot, “With deepening ties between the two countries and the economic growth in India, travel will only grow.”

Sapphire wants to fly to India from the US’s East Coast with a fuel stop in Europe. The company is in talks with individual investors and has obtained commitments for about $45 million of the $100 million it requires, he said.

Passenger traffic on US and Indian carriers between the two countries rose 86% in 2004 from 2000, according to the US transportation department last year.

Industry consultant Centre for Asia Pacific Aviation is helping Sapphire raise funds and draw up a route network, Puranik said.

Pratt & Whitney, Kingfisher Airlines Sign Contract for $300 Million Engine Order

From CAPA (Wednesday, 22 November 2006)

Washington D.C. (PRATT & WHITNEY) - Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company, and Kingfisher Airlines signed a contract today for engines to power Kingfisher's new fleet of Airbus A330 aircraft. The agreement was signed during a ceremony at the U.S. Department of Commerce in Washington, D.C. "After a very detailed analysis of all the engine offers for the A330, we decided that Pratt & Whitney gave us the best total solution and met all our technical requirements," said Dr. Vijay Mallya, chairman and chief executive officer, Kingfisher Airlines Limited. "Kingfisher has selected Pratt & Whitney to power our fleet of A320/A319s, ATR72s and A330s because of their ability to support our airline's vision to consistently deliver a safe, value-based and enjoyable travel experience to all our guests." The deal includes 10 PW4000-100" installed engines, one spare and an option for an additional 10 engines. Pratt & Whitney was also awarded a long-term exclusive fleet management program to overhaul and repair Kingfisher's PW4000 engines. The total transaction is valued at $300 million, plus an additional $200 million if all options are exercised. Pratt & Whitney and Kingfisher Airlines announced the deal with the signing of a memorandum of understanding earlier this year at the Farnborough International Airshow outside of London. "We are delighted that Kingfisher Airlines has chosen Pratt & Whitney's PW4168A to power its new A330 aircraft," said Todd Kallman, president, Pratt & Whitney Commercial Engines. "This contract for new engines and long-term engine service offers Kingfisher the best value, as it leverages Pratt & Whitney's unique OEMROTM portfolio. We're excited to expand our partnership with Kingfisher and we look forward to our continued collaboration." "This agreement is another building block that will strengthen U.S.-India relations, foster greater economic ties and enhance the ability of both companies to compete in the global economy," said U.S. Commerce Secretary Carlos Gutierrez, who witnessed the signing

Small Towns flying into Aviation Map

From Times of India (3/11/2006)

MUMBAI: Time was when flying overseas meant a mandatory trip to the nearest metro to board an international flight. No more, however. A320s and B737s are now at the doorstep of the humblest small towns, and the latter promise to be increasingly on the agenda of international airlines.

In 2003, no more than three non-metros were linked to foreign cities by direct flights. The number has now gone up to an impressive 15, with international flights going to Trichy, Gaya, Guwahati, Jaipur, Lucknow, Nagpur, Pune, Goa, Calicut, Amritsar, Ahmedabad, Thiruvananthapuram, Cochin and Coimbatore. According to civil aviation ministry sources, Kanpur, Madurai, Mangalore will join the list in the coming months.

"In the last two years, aviation growth has gone beyond India's metros," says Kapil Kaul, CEO, Centre for Asia Pacific Aviation. "Most foreign carriers want a foothold in the country’s profitable non-metro routes before the Indian carriers come in. The country is slated to be a 35-market destination in the coming years."

There are 35 Indian cities with a population of over one million which makes them an ideal catchment area for flights to the Middle and Far East.

Kaul prophesies that with the rapid rise in GDP and per capita income, several of these cities could well turn into profitable long-haul routes for carriers as well.

Little wonder that international carriers are salivating at the market opportunity in hitherto sleepy towns . "It was difficult not to notice there were no international flights to the whole of central India, comprising the Vidarbha region, MP, Jabalpur, Chhattisgarh and Telangana region," says Rohit Ramachandran, regional manager (South Asia) of Air Arabia, which was the first international carrier to launch Nagpur-Sharjah direct flights in October 2005.

Indian Aviation Industry set to grow at 25%

From Times of India (23/11/2006)


NEW DELHI: India's aviation industry is likely to grow at the rate of 25 per cent for the next 10 years, presenting a huge opportunity for foreign and private players, Civil Aviation Minister Praful Patel said on Thursday.

"India's domestic aviation segment is likely to grow by 50 per cent and the international aviation segment by at least 25 per cent in the current fiscal year," Patel said while inaugurating the first EU-India aviation summit.

Overall, the growth rate of the aviation sector in the next 10 years would not be less than 25 per cent. This implied huge opportunity for foreign and private players in the field of airport infrastructure, communication, cargo development and other fields, the minister added.

Earlier, addressing the summit, EU Vice President Jacques Barrot said EU and India were deliberating on a "horizontal" aviation agreement.

The aim of the "horizontal agreement" would be to amend certain provisions in bilateral agreements between India and EU member states so they could be in conformity with a much broader agreement between India and EU, Barrot said.

"India and EU are likely to finalise in 2007 the horizontal agreement and prepare a joint action plan to address key issues in the aviation sector," Barrot said.