India's National Auditor declared that Emirates and other Middle East carriers should be forced to reduce their flights to save Air India (read full story here).
This is wishful thinking, not the reduction of the flights but the saving of Air India. The number of flights are controlled through bilaterals; the Indian Government is not the easiest in awarding flight authorities, a lot of these authorities were awarded to allow Kingfisher, IndiGo, Jet Airways and others to operate international flights to the Gulf region in addition to Air India, Air India Express and Indian Airlines. A forced reduction will be probably met by a reciprocal action from the various governments of the region and they will have the choice of which airline authority to revoke, my guess would be Air India's. Any reduction of flights will affect the millions of Non Resident Indians working in the region.
The Government of India should face up to Air India's problems and tackle them heads on. Competition from GCC airlines and other airlines is only a small part of the problem. Government interference, over staffing and failed policies need to be resolved. These are issues that to this date the Government does not have the political will to face.
Saturday, September 10, 2011
Wednesday, August 31, 2011
BA Spring
I flew on British Airways today 31 August 2011 from Dubai to London on my way to Detroit. It reminded of a blog I read on Innovation Analysis Group entitled "Pride in BA Brand" a campaign that is supposed to improve the battered image of BA after 2 years of fighting with UNITE.
According to IAG Blog "Central to the drive is a 90-second film addressing five decades of BA, focusing on the role of BA's role in the history of aviation. Topics are set to include British Overseas Airways Corporation (BOAC), which merged with Imperial Airways in 1971 to create the modern BA, as well as Concorde. Images of BA staff are expected to feature prominently in the campaign." This comes after an internal communications campaign designed to inspire the BA Brand in the 32000 BA staff.
For some reason BA reminded me of the MENA regimes, extolling the glorious past in order to improve a present passenger perception. It is laudable that BA is addressing its staff problems because the current problem is not a passenger perception, it is a lack of consistent performance. Staff that is not smiling, cool and abrupt. A Customer Support organisation that is failing to adequately respond to its passenger complaints. A Frequent Flyer Program that does not use emails as a means of contacting it.
Basically a staff problem, the same staff and organisation that a few years back were "the World's Favorite Airline".
Just like people in MENA, BA passengers are not interested in the past but more in the present and the future and this is what BA needs to address. BA needs to convince passengers that it is aware of the problem(s) and they are being fixed, otherwise BA might be looking at a BA Spring.
According to IAG Blog "Central to the drive is a 90-second film addressing five decades of BA, focusing on the role of BA's role in the history of aviation. Topics are set to include British Overseas Airways Corporation (BOAC), which merged with Imperial Airways in 1971 to create the modern BA, as well as Concorde. Images of BA staff are expected to feature prominently in the campaign." This comes after an internal communications campaign designed to inspire the BA Brand in the 32000 BA staff.
For some reason BA reminded me of the MENA regimes, extolling the glorious past in order to improve a present passenger perception. It is laudable that BA is addressing its staff problems because the current problem is not a passenger perception, it is a lack of consistent performance. Staff that is not smiling, cool and abrupt. A Customer Support organisation that is failing to adequately respond to its passenger complaints. A Frequent Flyer Program that does not use emails as a means of contacting it.
Basically a staff problem, the same staff and organisation that a few years back were "the World's Favorite Airline".
Just like people in MENA, BA passengers are not interested in the past but more in the present and the future and this is what BA needs to address. BA needs to convince passengers that it is aware of the problem(s) and they are being fixed, otherwise BA might be looking at a BA Spring.
Sunday, August 7, 2011
MENA Airlines, The Elusive Recovery Revisited
As the world bounces from one financial and political crisis to another MENA airlines continue to grapple with the political events in Libya, Syria and Yemen. Most airlines in the region had a small to modest increase in passenger numbers, Dubai saw an 8.9% increase in H1 2011 compared to 2010 (24.6 vs. 22.6 million passengers); Etihad had a 28% increase in revenues due to a 14% increase in passengers carried and a 5% reduction in cost; Air Arabia Q2 net profit increased by 2% over Q2 2010 due to a 22% increase in revenue and Royal Jordanian posted a 39 million JOD ($55m) H1 loss in spite of a 3.5% sales increase, the loss is attributed to fuel prices which is 44% of operating cost and declining yields, yet the airline remains optimistic for the remainder of the year. Al Jazeera and Qatar Airways had passenger increases, and Gulf Air traffic is starting to recover coupled with a new campaign "Family First" that will hopefully put it on the road to recovery.
All the major players in the region continued to expand their networks and take delivery of new aircraft. Almost all the airlines introduced promotions to increase traffic during the Holy Month of Ramadan.
This is a region that is familiar with political turmoil and has always managed to cope and recover, but events in Syria, Libya, Yemen and Sudan are still taking their toll. High fuel prices and an escalating global debt crisis are major challenges.
Very few airlines outside those in the UAE will be posting annual profits in 2011.
All the major players in the region continued to expand their networks and take delivery of new aircraft. Almost all the airlines introduced promotions to increase traffic during the Holy Month of Ramadan.
This is a region that is familiar with political turmoil and has always managed to cope and recover, but events in Syria, Libya, Yemen and Sudan are still taking their toll. High fuel prices and an escalating global debt crisis are major challenges.
Very few airlines outside those in the UAE will be posting annual profits in 2011.
Saturday, July 23, 2011
Dubai World Central, A Vision Delayed
In my previous Blog "Dubai The Brand" I wrote " As for DWC it will slowly be buried until they figure out what to do with it." I was wrong, the waiting is over, Dubai World Central's (DWC) fate is sealed.
EMIRATES AIRLINES will not move to DWC until 2025, seven years after the last upgrade, Concourse 4 of Dubai International. Currently DWC has one runway and a low cost terminal. Several cargo forwarders and an FBO are based there. The airport is connected to Jebel Ali Free Zone with an overpass that allows cargo to move between both areas without having to go through customs.
This shifts any sizable investment until about 2018. DWC Phase 2 (2018-2023) will cover the construction of another four (4) runways and a terminal capable of 160 million passengers annually and a cargo facility capable of 12 million tons annually.
EMIRATES AIRLINES will not move to DWC until 2025, seven years after the last upgrade, Concourse 4 of Dubai International. Currently DWC has one runway and a low cost terminal. Several cargo forwarders and an FBO are based there. The airport is connected to Jebel Ali Free Zone with an overpass that allows cargo to move between both areas without having to go through customs.
This shifts any sizable investment until about 2018. DWC Phase 2 (2018-2023) will cover the construction of another four (4) runways and a terminal capable of 160 million passengers annually and a cargo facility capable of 12 million tons annually.
The question now is what happens at DWC between now and 2018. Dubai Airports has to come up with some plans to keep the facility operational and grow the business. My guess would be to attract MROs and Aviation related OEMs to set up facilities there.
To read about Dubai Airport expansion click here
Friday, July 8, 2011
Dubai The Brand
Dubai has been in the news again. A couple days back Dudai Airports announced a massive investment in Dubai International Airport (around 7.8 billion USD) to build Concourse 4 (Concourse 3 is currently under construction), upgrade Terminal 2 and increase cargo capacity by almost 30%. This will bring the airport capacity to 90 million passengers by 2018 from the current 60 million passengers.
Great news! well yes but what about Dubai World Central Airport at Jebel Ali. This was supposed to be a six runways (now 5 runways planned) airport able to handle 180 million passengers annually. The airport has one runway operational and a low cost terminal built. Cargo operation has started but operators prefer the International Airport. Passenger operation has been delayed till 2012. No airline wants to use the airport it is very far from Dubai or Abu Dhabi.
The other Bad news is the cancellation of Dubai Aerospace Enterprises of all its Airbus orders (45 aircraft. 11 A350-900 and 34 A320, worth 5.8 billion USD) and is in discussion with Boeing about the possibility of canceling their orders 56 aircraft. DAE has never risen to become a strategic business for Dubai. DAE owns Standard Aero.
How do these events affect the Dubai brand? Positively.
Financially it looks great Dubai just reduced 5.8 Billion USD of liability and is looking to reduce it further when they cancel the Boeing orders.
The expansion of Dubai Airport was associated with increased jobs in the aviation sector and a greater contribution to the GDP. As for DWC it will slowly be buried until they figure out what to do with it.
Great news! well yes but what about Dubai World Central Airport at Jebel Ali. This was supposed to be a six runways (now 5 runways planned) airport able to handle 180 million passengers annually. The airport has one runway operational and a low cost terminal built. Cargo operation has started but operators prefer the International Airport. Passenger operation has been delayed till 2012. No airline wants to use the airport it is very far from Dubai or Abu Dhabi.
The other Bad news is the cancellation of Dubai Aerospace Enterprises of all its Airbus orders (45 aircraft. 11 A350-900 and 34 A320, worth 5.8 billion USD) and is in discussion with Boeing about the possibility of canceling their orders 56 aircraft. DAE has never risen to become a strategic business for Dubai. DAE owns Standard Aero.
How do these events affect the Dubai brand? Positively.
Financially it looks great Dubai just reduced 5.8 Billion USD of liability and is looking to reduce it further when they cancel the Boeing orders.
The expansion of Dubai Airport was associated with increased jobs in the aviation sector and a greater contribution to the GDP. As for DWC it will slowly be buried until they figure out what to do with it.
Subscribe to:
Posts (Atom)
