The airlines has already sent letters regarding this to all the travel agents. As a result of this nearly 40 percent of the travel agents are expected to shut shops and lakhs would loose their job.
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Friday, October 31, 2008
Airlines will stop paying commisions to travel agents
From 1st November all airlines will stop paying commissions to 3000 travel agents around the country. This means the passengers' will have to pay a flat fee to the travel agents for booking ticket, thus encouraging people to book tickets directly with the airlines office/website.
The airlines has already sent letters regarding this to all the travel agents. As a result of this nearly 40 percent of the travel agents are expected to shut shops and lakhs would loose their job.
The airlines has already sent letters regarding this to all the travel agents. As a result of this nearly 40 percent of the travel agents are expected to shut shops and lakhs would loose their job.
Thursday, October 30, 2008
Austrian Airlines to cease flights to Mumbai
Austrian Airlines will soon stop its service to the Indian city Mumbai (Bombay)from March 1st 2009. As a result of the weakening Indian economy and the crisis in European finanacial market, it is no longer possible to operate this route profitably. The measure means that one more of the airline’s total of six Boeing 767 aircraft will no longer be deployed on long-haul routes.
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Asia Pacific tourism starts to slow
The impact of the current global economic crisis has reached Asia Pacific and the tourism industry is starting to feel the pressure as growth starts to slow. New analysis by Deloitte, the business advisory firm, shows that although hotels have reported positive growth for the year-to-Aug-08, with revenue per available room (revPAR) up 13.2%, on closer inspection, hoteliers have started to feel the strain over the last few months.
Until May-08, revPAR growth across Asia Pacific was reporting double-digit growth each month, with average room rates driving this. However, since then, revPAR growth has fallen back, with June and July reporting increases of 7.5% and 7.4% respectively. Although August bucked this trend, with revPAR posting double-digit growth once more, up 15.2%, this was no doubt impacted by the excellent results Beijing reported after hosting the Beijing 2008 Olympic and Paralympic Games.
This trend is echoed in India which was achieving over 20% revPAR growth at the beginning of the year. RevPAR has dropped progressively each month and is currently in negative territory, down 3.4% during the month of August. On the flip side, Indonesia is one of the only countries bucking this trend achieving double-digit growth each month this year as it continues to recover from the terrorist attacks in Bali during the first half of this decade.
The International Air Transport Association (IATA) reported that in the month of August alone, airlines in Asia Pacific saw a 3.1% contraction in the number of international passengers, off the back of a 0.5% drop the previous month. These results, coupled with the deceleration in hotel performance across the region, make it clear that economies in Asia Pacific are starting to feel the impact of the wider economic meltdown across the globe.
Commenting, Alex Kyriakidis, Global Managing Partner of Tourism, Hospitality & Leisure at Deloitte said: “Asia Pacific is by no means decoupled from the uncertain and volatile economic environment in the US and Europe, and although the backlash for the Asia region has been delayed, it was inevitable. The collapse of the Asian Stock markets this month will inevitability lead to the same pressures the hotel industry is facing in the USA and Europe where revPAR growth has slowed year-to-August 2008 to 1.0% and 12.6% compared to the same period last year.”
“Looking ahead, the coming months may prove to be a challenging time for hoteliers across Asia Pacific as the economic crisis unfolds. Hoteliers will need to consider how they will respond if occupancy levels fall further. The inclination in tough times is to respond by cutting prices as was the case during the SARS crisis. At that time, like now, the emphasis is on cost reduction while continuing to meet guest expectations.”
Source : Center for Asia Pacific Aviation
Until May-08, revPAR growth across Asia Pacific was reporting double-digit growth each month, with average room rates driving this. However, since then, revPAR growth has fallen back, with June and July reporting increases of 7.5% and 7.4% respectively. Although August bucked this trend, with revPAR posting double-digit growth once more, up 15.2%, this was no doubt impacted by the excellent results Beijing reported after hosting the Beijing 2008 Olympic and Paralympic Games.
This trend is echoed in India which was achieving over 20% revPAR growth at the beginning of the year. RevPAR has dropped progressively each month and is currently in negative territory, down 3.4% during the month of August. On the flip side, Indonesia is one of the only countries bucking this trend achieving double-digit growth each month this year as it continues to recover from the terrorist attacks in Bali during the first half of this decade.
The International Air Transport Association (IATA) reported that in the month of August alone, airlines in Asia Pacific saw a 3.1% contraction in the number of international passengers, off the back of a 0.5% drop the previous month. These results, coupled with the deceleration in hotel performance across the region, make it clear that economies in Asia Pacific are starting to feel the impact of the wider economic meltdown across the globe.
Commenting, Alex Kyriakidis, Global Managing Partner of Tourism, Hospitality & Leisure at Deloitte said: “Asia Pacific is by no means decoupled from the uncertain and volatile economic environment in the US and Europe, and although the backlash for the Asia region has been delayed, it was inevitable. The collapse of the Asian Stock markets this month will inevitability lead to the same pressures the hotel industry is facing in the USA and Europe where revPAR growth has slowed year-to-August 2008 to 1.0% and 12.6% compared to the same period last year.”
“Looking ahead, the coming months may prove to be a challenging time for hoteliers across Asia Pacific as the economic crisis unfolds. Hoteliers will need to consider how they will respond if occupancy levels fall further. The inclination in tough times is to respond by cutting prices as was the case during the SARS crisis. At that time, like now, the emphasis is on cost reduction while continuing to meet guest expectations.”
Source : Center for Asia Pacific Aviation
Friday, October 24, 2008
Relief to Indian airlines industry
In view of the financial crisis being faced by the Indian airlines industry, the Minister for Civil Aviation, Shri Praful Patel met the Minister for Petroleum and Natural Gas, Shri Murli Deora. Senior officials of Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas, the oil PSUs and representatives of the airlines industry were also present.
It was decided at the meeting that:
• A 90 days credit period will be given by the oil companies to the airline companies up to 31-Mar-09 following which the situation will be reviewed to pay their credit.
• The airlines industry can pay their present cumulative outstanding credit in 6 monthly installments by 31-Mar-09.
• The ATF prices will be revised every 15 days to be at par with the world market prices. This is in view of the fluctuation prices of crude oil in the international market.
In view of the support extended to the airline industry by the Government and the oil PSUs, the airlines were asked to refrain from any retrenchment of staff. At the meeting it was also clarified that the national carrier Air India was not laying of any employee. The CMD, NACIL assured that the company had no plan of retrenchment of any of their employees.
The Indian airline industry representatives have expressed their satisfaction to the Minister for Petroleum and Natural Gas and
Minister for Civil Aviation for their initiative in providing relief to the sector.
Source : Centre for Asia Pacific Aviatio
It was decided at the meeting that:
• A 90 days credit period will be given by the oil companies to the airline companies up to 31-Mar-09 following which the situation will be reviewed to pay their credit.
• The airlines industry can pay their present cumulative outstanding credit in 6 monthly installments by 31-Mar-09.
• The ATF prices will be revised every 15 days to be at par with the world market prices. This is in view of the fluctuation prices of crude oil in the international market.
In view of the support extended to the airline industry by the Government and the oil PSUs, the airlines were asked to refrain from any retrenchment of staff. At the meeting it was also clarified that the national carrier Air India was not laying of any employee. The CMD, NACIL assured that the company had no plan of retrenchment of any of their employees.
The Indian airline industry representatives have expressed their satisfaction to the Minister for Petroleum and Natural Gas and
Minister for Civil Aviation for their initiative in providing relief to the sector.
Source : Centre for Asia Pacific Aviatio
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Thursday, October 23, 2008
The Future of Aviation
When I say the future of aviation i mean the future pilots, who have just taken a huge stride by spending ample amount of money for their training and are in a no mans' land.
Couple of years ago the scenario was totally different, all the media where flashing the news that the world will soon be facing a huge pilot demand and specially Asia Pacific will need at least 5000 pilots in the next decade. Where have all these media men gone?? Was this a ploy played by the aviation industry to just bring a pay cut to pilots by flooding in too much of pilots?
Pricking thorns to their (pilots) flesh comes US recession, thankx to Mr. Bush. This has brought a huge tumble in the aviation industry, not only the aviation industry even the IT sector has taken a blow. There are 1000's of pilots in India who are jobless and 1000's in foreign countries undergoing training, the sad part is there are still 1000's ready to leave India for their training, out of which 90% are just high school pass out students and unaware of the situation just all in an excitement to get their own wing. But the fact is that there are a few who have already started looking for alternatives other than the aviation industry. Will this scene change?? Will they all be able to at least remember that they are pilots??
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