Analysis: Delta-Virgin Atlantic tie up does little to enhance Indian connectivity for either carrier

by Vinay Bhaskara

Image by, and copyright Devesh Agarwal. Used with permission.

Earlier this week, Atltanta-based full service carrier Delta Air Lines and London based Virgin Atlantic Airways announced that their application for a code share and joint venture partnership on trans-Atlantic flights had been approved by antitrust authorities in both the United States and European Union.

The deal, in which SkyTeam member Delta will purchase a 49% stake in Virgin Atlantic previously owned by Singapore Airlines, covers 108 routes, 91 by Delta, and 17 by Virgin Atlantic. According to the press release put out by Virgin Atlantic, the deal offers the following benefits for customers.

The agreement includes the following customer benefits:

• Virgin Atlantic customers will now enjoy a vast network of connecting North American destinations while Delta customers will gain an additional six daily frequencies between London to New York

• SkyMiles and Flying Club loyalty programs that will offer up to 125% tier bonus miles* to frequent fliers on all Delta and Virgin Atlantic flights - not just those within the codeshare agreement

• Reciprocal Delta Sky Club and Virgin Atlantic Clubhouse access at applicable airports for Upper Class and BusinessElite passengers and Flying Club Gold members and SkyMiles Platinum and Diamond members

• Priority check-in, boarding, baggage handling and additional baggage allowance on all Virgin Atlantic and Delta operated flights worldwide - not just those within the codeshare agreement - for Virgin Atlantic Upper Class and Flying Club Gold members as well as Delta BusinessElite and SkyMiles Gold, Platinum and Diamond members

This is all pretty standard fare for these types of joint venture agreements, though the reciprocal frequent flyer benefits are better than those for most of Delta's partners in the SkyTeam alliance. The benefits will kick in on July 3rd, and will hopefully mark better times for Virgin Atlantic after two straight years of massive losses and increased pressure from rival British Airways at their core hub at London Heathrow.

However, looking at the deal from an Indian consumer's perspective, it adds very little to the existing offerings for both carriers in the India-USA market. Delta Air Lines currently operates a daily flight between Amsterdam and Mumbai, which is fed by its myriad services between the US and Amsterdam. The deal with Virgin Atlantic does nothing to affect the existing Delta service one way or the other.

However, the deal does open up the potential for Delta to add London as an European connecting point for flights to India along with the existing Amsterdam and Paris Charles de Gaulle points, as well as for Virgin Atlantic to enhance its US-India connectivity on existing flights to and from India. However, the schedules just don't bear this out. First of all, the Delhi flights are poorly timed to connect with the additional Delta flights in either direction. The 5:55 pm arrival into Heathrow means that there are no connections possible onto Delta flights; the last Delta departure from Heathrow is 5:10 pm. In the other direction, every Delta arrival into Heathrow is before 12:15 pm, yet the Delhi flight does not depart till 10:00 pm. That 10 hour (minimum) layover simply is not competitive with the quick connections offered by the Middle East Big 3 competition.

In terms of Mumbai, the arrival into Heathrow at 7:55 am allows for relatively effective connections to New York JFK, Minneapolis, and Atlanta, but not Boston or Detroit (the switch from Terminal 4 to Terminal 3 requires passengers to clear security again at Heathrow, adding time to connections). The departure from Heathrow to Mumbai at 10:35 am allows for connections from Boston, New York JFK, and Atlanta, but not from Detroit or Minneapolis. Furthermore, these destinations already have easy access to Mumbai services via Amsterdam.

So in the short term, the Delta-Virgin Atlantic tie up has limited effect on the Indian market. However, it could push Virgin Atlantic to re-time its Delhi and Mumbai operations (creating a red-eye at Delhi?), which would only make Virgin Atlantic's Indian presence more competitive.

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British Airways' first 787 Dreamliner arrives in London

by Devesh Agarwal

US Airframer Boeing delivered to flag carrier, British Airways, its first two Boeing 787 Dreamliners from an existing order of 24.

See video below the fold

The first of the aircraft G-ZBJB flew as flight BA787 from Paine Field in the city of Everett near Seattle, and arrived at London's Heathrow Airport about two hours ago at 12:10 local time (11:10Z). The airplane was welcomed by Mr. Willie Walsh, chief executive officer of International Airlines Group (IAG), the company that owns British Airways.

British Airways has announced that the airline will operate the 787 on flights from Heathrow to Toronto starting September 1 and to Newark from October 1.

The British Airways 787 Dreamliner carries 214 passengers and is configured with 35 seats in Club World, 25 in World Traveller Plus (economy plus) and 154 seats in the World Traveller (economy) cabin. Unfortunately the airline has chosen the dense nine-abreast 3-3-3 bone-crunching configuration in its economy class.

British Airways operates more than 140 Boeing airplanes within its fleet including 52 777s, as well as the world's largest fleet of 747s with 52.

IAG recently announced that it will convert 18 787 options to firm orders for British Airways, subject to shareholder agreement. Twelve of these will be 787-10s, meaning British Airways will operate the entire 787 family – the 787-8, 787-9 and 787-10.

See a picture of the Dreamliner arriving at Heathrow here.

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GoAir replaces Kingfisher Airlines at Terminal 1A at Mumbai

by Devesh Agarwal

From July 1, 2013, Wadia group promoted GoAir will be moving its operations at Mumbai's Chhatrapati Shivaji International Airport, from Terminal 1B (the private airlines' terminal) to Terminal 1A (Air India / Indian Airlines terminal). GoAir will occupy some of the space that has been vacated by the cessation of operations of Vijay Mallya promoted Kingfisher Airlines.

GoAir currently operates 360 movements per week from Mumbai. A dedicated aisle of check-in counters at terminal 1A shall now be available for GoAir passengers. The airline will be also moving its ticketing office to the new premise.

The traffic at Terminal 1B has congested for some time thanks to the diversion of passengers from the implosion of Kingfisher, and the growth of domestic passenger traffic at the commercial capital of India. It would have been better if one of the larger incumbents like IndiGo or SpiceJet would have shifted, when compared to a smaller operator like GoAir which operates about 360 weekly movements i.e. about 26 departures per day.

When queried, persons with knowledge of developments but who preferred to remain anonymous, told Bangalore Aviation that this move has been planned for a long time, and all airlines were given the offer to shift operations. Only GoAir opted for the shift. We can surmize, that GoAir faced the least disruption to their operations since they are a purely domestic airline at present, and the others would find it more convenient to remain in Terminal 1B which is closer to the international terminal T2.

What are your thoughts on this shift? Post a comment.

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Delta CEO Anderson gives up seat for mother of diabetic daughter

by Devesh Agarwal

A truly inspiring action by Delta Air Lines CEO Richard Anderson, who gave up his seat on a full flight to a mother so that she could return home in time to pick up her 12 year old diabetic daughter from a summer camp.

Ms. Jessie Frank who was to fly home to Atlanta from Washington DC on June 13 morning. After a series of delays and cancellations, Frank was anxiously hoping against hope to get on one of the last flights of the day, since she was number eight on the waiting list and zero seats were available.

Her prayers were answered and the agents called her name and asked to board the aircraft.

In her thank you letter posted on Facebook, Frank says

A vaguely familiar face met me at the doorway, not in uniform so probably an off-duty pilot I had seen before. He quickly grabbed my roll-aboard, helped clear a space in the overhead, and showed me to my seat.

As the flight was descending in to Atlanta, the cabin crew announced a special guest was riding in the jump seat of the cockpit, because he had given up his place to allow one more person on the flight, Richard Anderson, Delta's CEO.

Frank then recognised the "vaguely familiar" face since Anderson is in the flight safety video played at the start of every Delta flight.

On a shameful day when politicians in India were publicly bickering on who will take credit for rescue operations in Uttarakhand, may be they need to see across the oceans to see how true leaders help their supporters.

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Air India resuming service to Birmingham

National carrier Air India Ltd has announced it is set to launch four weekly direct flights between Birmingham and New Delhi from August 1.

The route will be operated the new Boeing 787-8 Dreamliner, with a configuration of 18 business class and 238 economy class seats.

The flight will operate on Mondays, Tuesdays, Thursdays and Saturdays.

It will depart from Delhi at 13:30 and arrive in Birmingham at 18:00 hours. The flight will leave Birmingham at 21:30 hours and arrive in Delhi at 10:05 the next morning.

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Plane spotting picture: Jet Airways Boeing 737-800 in Disney channel special livery

Taken by our photographer at Bangalore airport on Sunday, VT-JGV a Boeing 737-800 of Jet Airways sporting the new Disney channel livery with our childhood cartoon favourites Donald Duck, Pluto, Mickey Mouse, Minnie Mouse, and Goofy.

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AirAsia Announces Termination of AirAsia Japan Joint Venture with All Nippon Airways

In a long expected move, Malaysian low cost carrier, AirAsia today announced its decision to terminate its participation in the joint venture with ANA Holdings Inc. under the AirAsia Japan brand with the signing of a termination agreement.

The joint venture, created two years ago under the name AirAsia Japan faced many challenges since its launch. Issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based.

AirAsia Berhad through AirAsia Investment Ltd. had subscribed 25,120 voting shares and 23,880 non-voting shares at JPY 50,000 per share, which represented forty-nine percent (49%) of the paid-up share capital in AirAsia Japan.

The termination comprises an acquisition of AirAsia’s entire shareholding in AirAsia Japan by ANA Holdings Inc. for JPY 2,450,000,000 (approximately US$ 25.17 million). The termination also involves the return of all AirAsia aircraft leased to AirAsia Japan by November 1, 2013 and the payment of all monies accrued from the leasing of the aircraft.

Under the termination, AirAsia Japan will also settle all outstanding invoices due to AirAsia accrued from the commencement of operations. AirAsia Japan will unwind the use of the AirAsia brand in its operations, including the name of AirAsia Japan itself by November 1st 2013. Operations of AirAsia Japan flights up to October 31st 2013 will continue as planned.

Following the transfer of shares and payment of the purchase price, the Shareholders Agreement, the Brand License Agreement and other commercial contracts between the parties will be terminated immediately.

On the termination, AirAsia Group CEO Tony Fernandes said,

“I have great respect for ANA as the leading legacy airline in Japan but it is time for us to part ways and focus our attention on what we do best, which is running a true LCC. Despite the cost issues, the AirAsia brand has resonated with Japanese customers and the trend we see for July and August is very strong for all of Japan. I remain positive on the Japanese market and believe there is tremendous opportunity for a LCC to succeed, as proven by the tremendous success AirAsia X has seen. We have not given up on the dream of changing air travel in Japan and look forward to returning to the market.”

Operations of AirAsia X, the long haul low fare affiliate of AirAsia Group will not be interrupted as a part of this termination. AirAsia X will continue its operations into Japan including Kuala Lumpur to both Tokyo (Haneda) and Osaka (Kansai).

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Airport lounge report: Iberia Dali business class lounge at Madrid Barajas Terminal 4

Guest post by Vishal Mehra
@vishal1mehra

During my trip from Barcelona to Lisbon via Madrid (read trip report here), I had intentionally chosen a long layover at Barajas airport as I wanted to both see the famous wavy ceilings which created quite a ripple (yes, the pun is intentional) when the airport opened in 2006, and I also wanted to explore the Iberia lounge at its home base.

As I got done with my little terminal tour and purchasing the customary refrigerator magnet from the duty free store, I proceeded to Iberia’s business class Dali lounge in Terminal 4.

Considering Madrid is the home base for Iberia, my expectations of the lounges in Madrid being superior and larger that those in Barcelona were fulfilled. The lounge was huge, as well as very impressive to say the least.

Divided into 2 areas, it had large areas of comfortable seating which was soothing for the eyes to see and invited me to sink my tired muscles into and relax. The central area shown above had a spacecraft design to it, with little chairs, and fountains inside it along with a wide selection of reading material, though again it was dominated by Spanish selections.

After relaxing for few minutes, I grabbed myself a beer and started exploring the lounge. There were reasonable options for food, including salads, pasta, sandwiches, wraps and sushi rolls. I would have ideally liked to see more hot food options as well but as this lounge serves the Schengen area flights with usually small layovers, it appears Iberia decided to serve more "to-go" options. There is a large choice area of alcoholic, non-alcoholic drinks and a café.

Besides your typical coffee machine, the lounge served various pastries, croissants, cornflakes, milk and tea options. The lounge also had a fancier coffee machine, though I must admit I did not try it all.

Something rather unique in this lounge was this dedicated wine bar which serves a wide variety of wines. This bar, I was informed, also hosts regular tasting sessions, but to my loss, there was no such session during my transit. I was still able to lay my hands on couple of reds.

The Dali lounge also features a dedicated quiet area in the back that had little beds for passengers opting to take a quick nap between their flights. Given the long days and hectic schedules of business passengers, who comprise the largest share of premium passengers, it would behove other airlines to incorporate a similar feature in their lounge offerings.

The business area had the obligatory few computers, internet access, a printer and a fax machine. Iberia though has to remove one very irritating feature. The wireless internet was accessible only through 30 minute cards which, though the front desk gave with a smile, is disruptive to a business passenger. By the time I went for my third card, the staff on duty graciously offered to give me an extra one to save me the trouble of coming back. I had to decline her offer as my flight to Lisbon was due to depart soon.

Though the TV lounge was largely unoccupied, barring one keen viewer. Again considering this lounge mostly serves intra-European flights, the lounge shows the extent to which Iberia has gone to make this lounge a pleasant experience for the many needs and interests of the passengers it would carry.

Overall, It was a very enjoyable experience at the lounge, and clearly one of the best that Iberia has to offer to its passengers. Iberia may be in deep financial mess it appears they have not spared any expense in making this lounge a comfortable experience for the premium traveller.

I must admit thoroughly relishing myself during these six odd total hours with Iberia minus few niggles. These six hours compromised of two lounge visits, in Madrid and Barcelona each (read Barcelona lounge report here), as well as two flights on Iberia’s A320, from Barcelona to Madrid and then from Madrid to Lisbon. All of this cost me 9000 avios and Rs. 5771. It's a price I would pay happily for so many firsts every single time.

- Vishal Mehra is a digital marketer at a global agency, smitten by travelling and commercial aviation. He tweets a lot and off late has taken to blogging as well. Visit his blog.

All images in this article are the copyright of Vishal Mehra and used with his permission. Unauthorised use and/or reproduction is prohibited.

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Malaysia Airlines warns of possible flight disruptions due to haze

by Devesh Agarwal

Malaysia Airlines is advising its passengers on the possible closure of airports, and disruptions of flights with little advance notice, due to the current haze situation which has deteriorated in parts of Malaysia over the last few days.

Specific stations under close watch for possible closure or interruptions are airline's main hubs in west and east Malaysia i.e. Kuala Lumpur International Airport and Kota Kinabalu International Airport, Kuantan’s Sultan Ahmad Shah Airport, Kota Baru’s Sultan Ismail Petra Airport, Kuala Terengganu’s Sultan Mahmud Airport, Kuala Lumpur International Airport and Kota Kinabalu International Airport.

Malaysia Airlines has formed a haze secretariat to monitor the situation on an hourly basis and provide updates three times daily.

Passengers are encouraged to check the status of their flights with Malaysia Airlines at www.malaysiaairlines.com or within Malaysia call toll free 1 300 88 3000 prior to leaving for the airport and for updates.

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Jet Airways request slots at Amsterdam for Winter 2013 season; no flights to Newark

by Vinay Bhaskara

As Bangalore Aviation reported last month, Indian full service carrier Jet Airways is likely to move its long standing trans-Atlantic scissors hub to Amsterdam in conjunction with its new part-owner Etihad Airways. Late last week, Jet applied for the following slots at Amsterdam for the IATA Winter 2013/14 season.

9W 224 - DEL - AMS --> arr: 09.40 333 daily

9W 224 - AMS - YYZ --> dep: 12.10 333 daily

9W 223 - YYZ - AMS --> arr: 09.40 333 daily 

9W 223 -  AMS - DEL --> dep: 12.10 333 daily

9W 231 - BOM - AMS --> arr: 09.40 333 daily

9W 232 - AMS - BOM --> dep: 12.10 333 daily

Interestingly, Jet Airways has not requested slots between Amsterdam and Newark. Currently, Mumbai-Brussels-Newark is the best performing of Jet Airways' North American routes, and it is surprising that Jet Airways has not requested slots for Amsterdam-Newark, though the route is already served by both United Airlines and Delta Air Lines.

Of course, Jet Airways could be moving towards participation in the trans-Atlantic joint venture partnership with Delta, KLM, Air France, and Alitalia. This partnership allows member airlines to proportionally share costs and revenues, jointly discuss strategy, and generally act as one airline across the Atlantic.

Delta's existing flight 35 between Amsterdam and Newark departs at 12:50 pm daily (the return arrives into Amsterdam at 7:35 am) and is locked into that time by slot constraints at Newark Airport. However, this timing fits perfectly with the slots Jet has requested at Amsterdam and would allow for an effective scissors hub while only allocating three aircraft (one each for DEL-AMS-YYZ, YYZ-AMS-DEL, BOM-AMS-BOM) as opposed to the current four, freeing up one aircraft for use by Etihad. On Delta's end, their existing Amsterdam-Mumbai service could be passed off 

However, it also brings up the question of what will happen to Jet Airway's current slots in Newark. They can be potentially used by Etihad to launch Newark services; in fact a Mumbai-Abu Dhabi-Newark routing utilizing a Jet 777-300ER would be highly effective and help boost Etihad's connectivity whilst also ensuring Newark access on Jet Airways metal. 

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