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Two Hercules aircraft stationed in UAE to fly

Malaysians out of Yemen
Two Hercules C-130 aircraft were deployed to the United
Arab Emirates (UAE) to evacuate Malaysians in war-torn
Yemen.
Armed Forces chief General Tan Sri Zulkefli Mohd Zin, in a
statement, said the planes departed from the Subang
airbase last night along with 43 personnel.
The statement was shared by Defence Minister Datuk Seri
Hishamuddin Hussein on Twitter.
The two aircrafts will be stationed at the UAE, ready for
immediate deployment for the safe evacuation of our
Malaysian citizens through neighbouring countries, Zulkefli
said.
He added that they had planned and coordinated the
evacuation since the unrest in Yemen unfolded and had
been waiting for the right moment for deployment.
Earlier, Zulkefli said to date 154 Malaysians had been
evacuated from Yemen.
They departed from Jeddah, Saudi Arabia for Kuala Lumpur
yesterday.
We urge our citizens in Yemen to give their full cooperation
and support our efforts in ensuring their safe return.
The safety of all Malaysians at this moment remains our
top priority.
Zulkefli also thanked the UAE armed forces for their
cooperation in accommodating Malaysian aircrafts and
personnel for facilitating the evacuation.

http://blogs.wsj.com

Air India Suspends Pilots As it Investigates Fight

on Flight
A dispute in the cockpit of an Air India jetliner has resulted in the
suspension of a commander and co-pilot, the countrys state-owned flag
carrier says.
The two officers were removed from duty pending an internal
investigation after what the airline termed a minor argument before
they flew an Airbus 320 loaded with passengers from Jaipur in
northwest India to Delhi, the capital.
An Air India spokesman said the pair decided to fly to avoid
inconveniencing passengers. When the plane arrived in Delhi, the
commander reported the squabble. The spokesman declined to describe
the nature of the argument.
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In 2013, Air India suspended a pilot and two flight attendants after local
media reported that both pilots operating a Bangkok to New Delhi flight
left control of the plane in the hands of two flight attendants so that they
could take a nap. At the time, Air India had denied that the cockpit was
left unattended by the pilots.
Separately, in August last year, both pilots of an international Jet
Airways flight were suspended after their aircraft suddenly dropped
5,000 feet over Turkish airspace.
The flight from Mumbai to Brussels plunged from 34,000 feet to 29,000
feet as the commander of the flight was taking a nap and the co-pilot
failed to notice the drop in altitude until contacted by air traffic
controllers in Turkey, Indian newspaper reports said. Jet at the time said
it had initiated an investigation. An airline spokeswoman said she did
not have details about the latest status of the investigation on Monday.
Loss-making Air India has been trying to improve its financial health and
its image.
Air India in June joined the Star Alliance, the worlds largest grouping of
carriers, as part of its effort to cut costs and raise revenue. Last week,
Air India added a 20th Boeing Dreamliner jet to its fleet. The 787 planes
are considered more fuel-efficient than similarly-sized jets.

http://www.usmarketsdaily.com

The United Continental Holdings Inc (NYSE:UAL)

Chief Expresses Solidarity with Lufthansa
The recent German Wings crash was a tragedy that took the lives
of about 150 people on board. The United Continental Holdings Inc
(NYSE:UAL) CEO, Jeff Smisek, has expressed the solidarity of UAL
with Lufthansa, the parent airline of German Wings. The CEO also
expressed support of his company in the tough times. The UAL Chief
continued to say that this cruel act by an isolated individual is one that
has shocked everyone. The letter was one that reflected on the
relationship between the two airlines that goes back to 1997. It was
when the two airlines, combined with three more, to form the
worldwide Star Alliance.
Does this analyst foresee a long-term upside in UAL?
The Lufthansa Airlines had a clean flight record before this crash took
place in the French Alps. The letter also included a few
acknowledgments covering the safety standards of Lufthansa Airlines,
amongst others. There was also an acknowledgment of the training
and safety standards of the airlines. The letter would serve as some
good news for the company since the Lufthansa Airlines recently faced
criticism for letting a mentally unstable person pilot the plane. The
reassurances by the United Continental Holdings Inc (NYSE:UAL)
Chief can well help them fight these waves of criticism.
The two airlines have been in business with each other for quite a
while now. They share joint ventures and business partnerships for
flights between the continents of Europe and North America. They are
amongst the five founding members of the Star Alliance frequent flier
group, which now has up to 27 member airlines. The organization
comprises of airlines from around the globe. Current members
include: Singapore Airlines, United Airlines, Lufthansa Airlines, Adria
Airways, Aegean Airlines, Air Canada, Air China, Air India, and others.
It is believed that the co-pilot deliberately crashed the plane after
locking the Captain out of the cockpit.

http://www.thehindubusinessline.com

How the Gulf airlines are ruling the skies

Like all other sectors, aviation is also witnessing an intense battle between
the haves and the have-nots, but with one difference: the West is powerless
here, with airlines based out of Gulf countries ruling the skies.
With their wide-ranging choices and unbeatable bargains, airlines such as
Etihad and Emirates are becoming the Indian travellers first choice to fly to
Europe and beyond.
Gulf-based carriers have also made full use of bilateral agreements with India
by operating multiple flights. Conversely, Indian operators have underutilised
their bilaterals.
According to a report by aviation consultancy CAPA, as a result of the
expanded bilateral agreements that India has signed with Dubai and Abu
Dhabi over the past 12 months, weekly entitlements for UAE carriers will
increase to over 135,000 seats by 2015-16.
This represents a massive increase from the 10,400 seats available to six
cities in 2003-04. And it dwarfs the access offered to any other single country
it is almost as much as all European countries combined.
Further boost
The Civil Aviation Ministrys latest proposal on international routes will tilt the
scales further in favour of the Gulf carriers.
The existing policy, called the 5/20 rule, had made it mandatory for all
domestic airlines to complete a minimum five years of domestic operations
and have at least 20 aircraft in their fleet to become eligible to fly international
routes.
Under the new proposal, domestic airlines need to accumulate 300 domestic
flying credits (DFCs), instead of 200, for flying international routes.
This means that an airline will now need another two years and in some
cases up to four before it can qualify with a fleet of five to six aircraft. It
doesnt end there. A new airline will also need to undergo stringent security
and safety audit after one year of operations and even a minor issue can
derail its plans to fly international routes.
article was published on April 7, 2015)

http://www.thehindubusinessline.com

(Continue)
Besides, to fly short-haul international routes of less than six hours
(read West Asia), an airline needs to accumulate 600 DFCs.
The new proposal effectively shuts out airlines like Vistara as well as
AirAsia India, which are perfectly capable of flying international
routes because of their experience, says Ashvani Kumar Sachdev,
former chief operating officer of GoAir.
This will be advantageous to Emirates (Dubai-based), Etihad (Abu
Dhabi) and Qatar Airways (Doha).
Even European and US-based carriers are facing the heat from their
Gulf rivals. They have accused Gulf-based airlines of unfair
competition and claim that they received subsidies worth $42 billion
since 2004.
Subsidy allegations
Western carriers claim that by doling out subsidies, and in some
cases writing off the entire loans, Gulf countries are violating bilateral
agreements, and putting their airlines at an advantage, allowing them
to offer extremely low fares.
For instance, a return economy-class ticket between Bengaluru and
Frankfurt on Lufthansa sometimes costs nearly twice that of
Emirates.
Lufthansas Chief Strategy Officer, Sadiq Gillani, fears that over the
next five-10 years, East-bound flights will disappear for most
European carriers. The volume of capacity by 2020 will double for
Gulf carriers, which means it is growing way beyond their local
demand, says Gillani.
He points out that Australias Qantas has already cut back on
European flights and the same will happen to Asian carriers as well.
According to him, lower taxes, virtually free infrastructure and a nonunionised environment give Gulf carriers a 25 per cent advantage in
costs over the rest.

http://www.thehindubusinessline.com

(Continue)
Therefore, to compete on an even scale, Lufthansa plans to introduce longhaul low-cost Eurowings to Asian markets and the first destination it plans
to touch will be Dubai. Gillani says Eurowings will have a completely
different cost structure with new labour contracts for its employees. At the
same time, Lufthansa will be positioned as an upmarket five-star offering.
But Gulf airlines deny the accusations. In a statement, Emirates told
BusinessLine that foreign airlines have launched a protectionist campaign
against Gulf carriers. We are state-owned but do not receive government
hand-outs and we categorically deny any allegation by the US carriers in
respect of subsidy. We are transparent in our business practices and have
published annual financial reports audited by PricewaterhouseCoopers for
over 20 years, the statement said.
Sir Tim Clark, president of Emirates, told a press conference in Washington
in March that several of the new orders from Emirates were for Boeing
aircraft as well as Airbus, indicating that the airline was responsible for
creation of thousands of jobs across these two continents. I struggle with
the allegation of market share and damaging the market when they dont fly
to the points we fly to. I cannot see how manifestly we damage their
financial position, he said.
But Lufthansas Gillani disagrees. He points out that without fair
competition rules, foreign carriers will shrink in size. Teaming up with Gulf
carriers was not a possibility at all as American and European airlines have
non-stop flights to cities in the East.
Some of the Gulf carriers are not stopping at mopping up market shares
across the globe. They are also buying up stakes in some of the European
carriers. For example, Etihad has a 75 per cent stake in Italys Alitalia and
wants to increase its interest in Air Berlin.
It hasnt left India out of its ambit either. It has a 24 per cent stake in Jet
Airways and there are indications that IndiGo might offer some of its own to
either Qatar Airways or Emirates.
(This was published on April 7, 2015)