Vistara Begins Direct 6x Weekly Flights Between Mumbai and Frankfurt

Vistara inaugurated non-stop, 6x weekly flights between Mumbai and Frankfurt on November 15. The inaugural flight, operated on Vistara’s Boeing 787-9 Dreamliner, commenced from Chhatrapati Shivaji Maharaj International Airport, Mumbai at 13:00 Hours (IST) on 15 November 2023 and will arrive at Frankfurt International Airport at 17:30 Hours (GMT). Vistara has already been flying 6x weekly between Frankfurt and Delhi.

Mr. Vinod Kannan, Chief Executive Officer, of Vistara, said, “Sensing a need for an Indian airline offering world-class experience and connecting to long-haul destinations in Europe from Mumbai; we started 5x direct flights to London Heathrow. We are now delighted to start a 6x weekly service to Frankfurt as our second European destination from India’s financial capital. We are confident that our customers will appreciate and prefer flying with India’s finest airline when planning to travel on this route.”

Vistara Introducing New Routes

Vistara plans to launch a handful of new routes next quarter as it approaches the end of its time as a standalone Indian airline, Chief Executive Officer Vinod Kannan said.

The full-service carrier will deploy new aircraft that are pending delivery for mostly international routes, Kannan said at an event to mark the introduction of Vistara’s daily Delhi-Hong Kong service on Monday, October 30. The inaugural flight was more than 90% full and demand looks very strong throughout November, he said. The inaugural flight was operated on Airbus A321 Neo aircraft.

“We will continue to expand internationally and we feel that demand will continue to grow,” Kannan told reporters in Hong Kong. “There will be two or three more new routes coming through in the first quarter of next year,” he said separately. “The focus has been international, that is where we think we bring more value to the table,” he said.

In December, Vistara will become the only airline to offer non-stop flights between Delhi and Bali using its new Airbus A321LR aircraft, and it will also soon launch a flight between Mumbai and Frankfurt, adding to its existing Delhi-Frankfurt service. It also recently started service between Delhi and the Maldives. Paris is another possible route from the Indian financial hub, Kannan said.

Mumbai, in particular, has seen much love from the airline when it comes to international operations. It now flies to several global locations from Mumbai, including Abu Dhabi, Bangkok, Colombo, Dammam, Dhaka, Dubai, Jeddah, London Heathrow, Male, Mauritius, Muscat, and Singapore.

The airline currently, has a fleet of 63 aircraft, including 48 Airbus A320neo, 10 Airbus A321 and 5 Boeing 787-9 Dreamliners and has flown more than 50 million customers since starting operations. The airline is currently flying to 32 domestic and 16 overseas destinations. Kannan said international flights will account for 40% of Vistara’s operations by the end of the financial year.

The Airports Authority of India started the trial run of Chennai Airport’s Terminal 4, with the launch of domestic flight services on Tuesday, November 14. An Air India flight carrying 148 passengers from Port Blair arrived here following the pilot launch. The aircraft later left for Bengaluru with 152 passengers on board.

Airport director C V Deepak handed over the boarding pass to the first passenger of an Air India flight, to mark the launch of services from the new terminal. Earlier, Terminal 4 was used to handle passengers of international flights and saw renovation works for the last few months.

In April, Prime Minister Narendra Modi inaugurated Phase 1 of the INR 1,260 crore new integrated terminal building at the Chennai International Airport, aimed at enhancing passenger services. The addition of this new integrated terminal building will increase the passenger serving capacity of the airport from 23 Million Passengers Per Annum (MPPA) to 30 MPPA.

"Terminal 4, which was under renovation since the commencement of T-2 is now ready to roll. Trial operations by Air India are being held on November 14 and regular domestic operations will commence from November 15,” Chennai airport said in its official social media post.

All domestic Air India and Alliance Air flights would operate from the T-4 terminal starting from November 15, it said. "Terminal 4 is now made fully operational to handle domestic flight operations. Starting November 15, all domestic operations of Air India and Alliance Air will be shifted to Terminal 4", it added.

The arrival and departure flights will now be used by Air India and Alliance Air. This will decongest the existing domestic terminal allowing the airport to sanction more frequencies and new domestic flights by other airlines in the coming months. A new terminal is now being built adjacent to the recently opened integrated international terminal.

The old international terminal was converted into a domestic terminal, with the shifting of operations of international flights to the new integrated complex. With this, AAI will be able to use the ground floor arrival terminal which was lying unused as its baggage ramp was not suitable for international flights.

The Chennai Airport in September handled 12.36 lakh domestic passengers, an increase of 13.8% over the 10.85 lakh domestic passengers handled in the same month last year. From April to September 2023, the Chennai airport handled 76.05 lakh domestic passengers as against 63.92 lakh passengers in the same period last year. This represented a 19% increase, according to Airports Authority of India data.

Chennai Airport's Expansion Plan

Chennai International Airport is all set to undergo expansion of its New Integrated Terminal Building (NITB). The expansion will drastically increase the airport’s capacity, enabling it to cater to 35 million passengers. It has also been announced that by 2025, the Chennai Airport will have a new terminal for international departures as well as a new domestic terminal. 

Spread over 1323 acres of land, the Chennai Airport comprises three terminals. Chennai Airport Terminal 1 is the oldest terminal at Meenambakkam, which is now used for freight. The other terminals at the Tirusulam complex, i.e., Terminals 2 and 3, are used for domestic and international flights.  Terminal 2, known as the Kamaraj domestic terminal, was the first in India to have two aerobridges. Subsequently, Terminal 3, also known as Anna International Terminal, was constructed with three aerobridges.  The recent expansion of the Chennai Airport has resulted in the development of a new international block, i.e., Terminal 4. Currently, Terminal 4 is being used for departures, and Terminal 3 is used for arrivals. 

Chennai Airport International serves as a major hub for domestic and international flights, connecting Chennai with various destinations across India and the world. Several airlines operate from this airport, including both full-service carriers and low-cost airlines. Some of the airlines that have been known to operate from this airport include Air India, IndiGo, Akasa Air, SpiceJet, Jet Airways, AirAsia India, GoAir, Vistara, Etihad Airways, Emirates, British Airways, Singapore Airlines, Qatar Airways, and Lufthansa.

Emirates ruled out an immediate deal to buy Airbus A350-1000 jets, blaming a dispute with engine maker Rolls-Royce over the durability of its engines and leaving the European planemaker without a major showcase order at the Dubai Airshow.

Speaking a day after placing a USD 50 billion order for Boeing 777X jets, the president of the Dubai airline, Tim Clark, said the A350-1000's engine would offer only a quarter of the time between maintenance visits compared to Emirates' needs. FlyDubai, Emirates’ sister airline, also contributed to Boeing’s success with a USD 11 billion aircraft purchase. In contrast, Airbus is yet to secure a major deal at the ongoing show.

He told reporters Emirates would be prepared to order between 35 and 50 of the jets if Rolls-Royce improved both the durability and maintenance costs.

Rolls-Royce said: "Emirates is a valued customer and we look forward to supporting their future fleet growth plans.” Rolls Royce, meanwhile, denied that the Airbus A350-1000 engine was defective. "The engine works really well in what we call benign operations ... But in sandy, hot conditions it is challenged, as all modern engines are, because the temperatures are very high. We see it across the industry," said chief customer officer Ewen McDonald.

While airplane orders dominate headlines at air shows, airlines typically negotiate to buy the airplane and long-term repair services from the engine suppliers separately, meaning big-ticket plane announcements can hinge on unseen engine talks.

Airbus Chief Commercial Officer Christian Scherer defended Rolls-Royce's Trent XWB-97 engine. "It's a perfectly fine engine operated by many customers around the world. Tim does not operate it," he said while announcing an order from Egyptair for 10 smaller A350-900s. Emirates has ordered 50 of the A350-900 version, which uses a different Rolls variant but has yet to take deliveries.

An order from Emirates for the largest version of the A350 appeared to be on hold over terms of engine guarantees with Rolls-Royce. It is the latest example of disagreements in aerospace over the performance designed to save fuel at the expense of ever-hotter internal temperatures that require more maintenance.

Engines face particular challenges in hot and sandy or dusty conditions like the Middle East and India. Emirates's order for 90 more GE-powered Boeing 777X jets dominated the opening of the week-long Dubai Airshow on Monday.

With plans for an Emirates A350 order off the table for now, Airbus also saw a second major order from Turkish Airlines slip off the show's agenda, industry sources said. Airbus said on Monday it had reached an agreement "in principle" on a significant Turkish Airlines order. But it added the deal needed to be ratified in the coming days, in what sources saw as a sign it would need Turkish government approval and was unlikely to appear at the show.

Emirates Not Worried About Competition

Also in the aircraft market is Riyadh Air, a new Saudi carrier being created as part of trillions of dollars worth of spending planned in the kingdom. In March, the airline announced an order of up to 72 Boeing 787-9 Dreamliner jetliners and has further plans to expand. Clark said he wasn’t worried about the competition, however.

“If Saudi Arabia wants to spend USD 2 trillion on doing wonderful things over there, they’ve got to have the labour from somewhere. And that labour force has got to be brought in, and their carriers are going to find it difficult in the early stages to meet that demand,” he said.

“So do I think it’s a problem with this lot? No, I don’t … because we managed to build Emirates through all of this competition, rising geopolitical socioeconomic difficulty.” The air show, which sees billions of dollars worth of deals, as arms manufacturers exhibit at the show, comes two weeks before Dubai hosts the United Nations’ COP28 climate talks.

(With Inputs from Reuters)

The Mangaluru International Airport (MIA) has embarked on a futuristic project in its front yard, dubbed as 'Airport Village', to provide diverse food and beverage options and retail and gaming opportunities for passengers and visitors. The facilities at the airport were till now available only for passengers and those with access to the terminal.

The Airport Village will throw open the experience to all who frequent the airport, including city dwellers, a release from the MIA here said. The Airport Village, in the space earmarked for it in the forecourt on the lower ground floor, will transform it into a fun space like malls that city dwellers frequent.

"The Airport Village will cater to the needs of not just the thousands of travellers who use the airport daily, but also their friends and family who come to receive and see them off," it said. The airport village will offer versatile spaces according to the requirements of businesses looking to set up shops here. On completion, it will not just become a focal point for travellers but also strive to attract people from the city with a dining and gaming zone that has been mooted.

"The whole focus of the master plan will be on creating a unique curated experience which will not only elevate the travel experience but also allow others to soak in the vibrant atmosphere that airports globally strive to provide," the release said. What makes this airport village project exciting is the fact that it has been seamlessly dovetailed into the overall development plans that the airport has envisaged as part of the master plan.

About the Airport

Mangalore International Airport (also known as Mangaluru International Airport) is an international airport serving the coastal city of Mangalore, India. It is one of only two international airports in Karnataka, the other being Kempegowda International Airport, Bangalore. Mangalore International Airport is the second busiest airport in Karnataka. In addition to domestic destinations, flights depart daily for major cities in the Middle East. The airport was named Bajpe Aerodrome, when it opened on 25 December 1951 by former Prime Minister Jawaharlal Nehru who arrived on a Douglas DC-3 aircraft.

Presently, it ranks 12 in the list of airports with international passenger air traffic. After Delhi, Mumbai, Chennai, Kochi, Bangalore, Hyderabad, Kolkata, Thiruvananthapuram, Ahmedabad, Kozhikode, and Tiruchirappalli international airports. The airport had 8.91 lakh passengers in the FY 2011-12 and witnessed a growth rate of 5.44%. According to the airport sources, it has a target of achieving 16 lac passenger traffic in the FY 2016–17.

Air India Express (AIE) is enhancing the travel experience with the introduction of two new flights connecting Bengaluru to Mangaluru. Starting from Wednesday, November 15, the winter schedule promises increased connectivity, linking not just these two cities but also connecting to Chennai, Kannur, Thiruvananthapuram and Varanasi, a release from the Mangaluru International Airport (MIA) said on Tuesday, November 14.

MIA officials said they are eagerly anticipating a substantial increase in domestic passenger footfall with this latest addition to their flight schedule. The flight timings are tailored for customer convenience, seamlessly connecting to international flights. Flight IX 782 will commence its journey from Varanasi at 8 AM, landing at Kempegowda International Airport (KIA) at 10:30 AM.

After a quick layover of 55 minutes without changing aircraft, it will depart from KIA at 11:10 AM and arrive at MIA by 12:10 PM. The Varanasi-Mangaluru connection is only open for 10 days, until November 25. However, starting November 26, the flight will seamlessly link Chennai to Mangaluru via Bengaluru. Other flight timings will be intimated later.

The second new flight will be between Kannur-Bengaluru-Mangaluru (IX 1795). It will depart from Kannur at 4:30 PM arrive at KIA at 5:50 PM and later depart for MIA at 6:25 PM and reach at 7:35 PM. The same aircraft, with a changed flight number IX792, will depart MIA at 8:15 PM, arrive in KIA at 9:30 PM and after 50 minutes of layover, depart for Thiruvananthapuram, and arrive at 11:25 PM. The aircraft will be a Boeing 737 Max, as per the current details available on the airline website.

In January 2022, Air India Express, together with Air India, was successfully privatised, with ownership returning to the Tata group that had initially founded Air India. In March 2023, Air India Group announced the completion of integration of its two subsidiaries Air India Express and AirAsia India.

New Brand Identity & Merger

The AirAsia India brand no longer exists from October 31, 2023 onwards. AirAsia India was launched in June 2014 and was a joint venture between the Tata Group and AirAsia Berhad. It had a turbulent journey due to the alleged control by the Malaysian partner. The flights are now operated under the brand AIX Connect before the legal merger into Air India Express is completed.

Things started clearing up only when Tatas decided to buy out AirAsia’s stake and decided to merge it with Air India Express (which they acquired last January) to create a mega low-cost carrier (LCC) as part of the Air India family. These two LCCs’ merger has been approved by the Competition Commission of India and is on track for this year’s end.

Air India Express unveiled the unified brand identity and a new aircraft livery inspired by arts and crafts heritage on its new Boeing 737 Max aircraft on October 18. The airline’s new visual identity features an energetic and premium colour palette of orange and turquoise. The livery of the first new Boeing 737-8 aircraft showcased at the launch is inspired by the Bandhani textile design. The upcoming aircraft being inducted will feature designs inspired by other traditional patterns including Ajrakh, Patola, Kanjeevaram, Kalamkari, etc, showcasing India’s artistic diversity.

Air India Express began as a low-cost arm of Air India in 2005 focusing largely on routes between South India and West Asia. At present, it has a fleet of 28 Boeing 737 planes which include two new Boeing 737 Max planes. AirAsia India which is being merged with Air India Express has 26 Airbus A320 aircraft.

Brazil's largest airline, Azul, recently revised its forecast for 2023 core earnings due to challenges in capacity growth and heightened jet fuel price volatility. Despite this, the airline reported better-than-expected third-quarter results and provided an optimistic outlook for 2024.

2023 Forecast Reduction

Azul announced a reduction in its forecast for 2023 earnings before interest, taxes, depreciation, and amortization (EBITDA) to approximately 5.2 billion reais ($1.06 billion), down from the initial projection of 5.5 billion reais. The key factors contributing to this adjustment were slower-than-expected capacity growth and increased volatility in jet fuel prices. The revised projection of available seats per kilometer (ASK) expanding by 11%, compared to the earlier estimate of 14%, played a significant role in this downward adjustment.

Market Response and Share Movement

Despite the downward adjustment for 2023, Azul's longer-term outlook sparked positive investor sentiment. The company's shares, traded on the Sao Paulo stock exchange (Bovespa), surged over 6% in response to the positive 2024 forecast. This gain positioned Azul among the top performers on the Bovespa stock index, which experienced a 2% overall increase.

Azul's 2024 Outlook

Azul expressed confidence in its 2024 outlook, anticipating an EBITDA of approximately 6.3 billion reais, up from the previous forecast of "more than 6 billion." The positive shift in projections for the upcoming year is attributed to sustained demand strength and an accelerated fleet renewal process. Azul's CEO, John Rodgerson, highlighted the encouraging industry environment marked by robust demand, favorable tariff dynamics, and disciplined capacity addition, especially during the high-demand seasons.

Analysts' Perspective

Analysts from Goldman Sachs, with Azul as their top pick among Latin American airlines, largely affirmed the airline's fresh guidance. They emphasized the industry's rational approach, maintaining pricing power, and focusing on rebuilding profitability. The analysts suggested that Azul's ability to pass on costs to tariffs could lead to margin expansion.

Q3 2023 Performance

Azul's third-quarter performance exceeded expectations, with a record EBITDA of 1.55 billion reais, reflecting a notable 67.7% increase compared to the previous year. Net revenue also reached a record high of 4.91 billion reais, a 12.3% rise. While the quarterly figures were positive, analysts noted that external factors such as foreign exchange rates, Petrobras' jet fuel prices, and the domestic macroeconomic scenario could continue to exert pressure on the airline sector in the coming months.

Conclusion

Azul's recent financial adjustments for 2023, coupled with a positive outlook for 2024, reflect the challenges and opportunities present in the airline industry. Despite near-term headwinds, Azul's strategic initiatives, including fleet renewal and a focus on profitability, position the airline for sustained growth. As external factors continue to influence the sector, stakeholders will keenly monitor Azul's resilience and adaptability in navigating the dynamic aviation landscape.

With Inputs from Reuters