Jet Airways cancellation of Colombo-Chennai tied to Jetihad?

by BA Staff

Earlier today, it was announced that Indian full service carrier Jet Airways would be cancelling its longstanding daily flights between its Southern hub at Chennai, and Colombo from 3rd January, 2014. The route, which was operated with Boeing 737-800 equipment, had schedules as follow:

9W252 ~ MAA - CMB ~ 0055 – 0210 ~ 738 ~ Daily
9W253 ~ CMB - MAA ~ 0310 – 0430 ~ 738 ~ Daily

Jet Airways will continue to serve Colombo from its largest hub at Mumbai. The move comes as a bit of a surprise, given that the India-Sri Lanka market, especially with regards to inbound medical tourism at Chennai, remains robust. And at a time when Jet continues to incur massive losses on its domestic network, it makes little sense for Jet Airways to cancel a route of roughly domestic length, but with fares 30% higher. There are however, a pair of countervailing factors that could be the reason behind the move. The first is that SriLanka Airlines is planning a major Indian expansion, which could drive down fares and yields. But even more importantly, with the Jetihad partnership recently finalized, Etihad now has the ability to dictate Jet Airways' international route decisions. Is Etihad behind this route cancellation? Let us know in the comments below. 

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SriLankan Airlines cancels Kozhikode

by BA Staff

Oneworld member SriLankan Airlines has apparently cancelled its daily Airbus A320 service between Colombo and Kozhikode, Kerala from the end of August (26th August to be exact). The services were run with the schedules below:

UL169 ~ CMB-CCJ ~ D: 1130 A: 1520 ~ A320 ~ x3
UL169 ~ CMB-CCJ ~ D: 1350 A: 1510 ~ A320 ~ 3

UL170 ~ CCJ-CMB D: 1340 A: 1500 ~ A320 ~ x3
UL170 ~ CCJ-CMB D: 1600 A: 1720 ~ A320 ~ 3

The cancellation is interesting news because SriLankan had only recently announced plans to increase its Indian operations. 

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Analysis: SriLankan Airlines to grow its Indian operations

by Vinay Bhaskara

According to a report from the Press Trust of India, newly minted oneworld alliance member SriLankan Airlines is eyeing an expansion of its Indian operations by adding 12 new weekly flights to tap into its burgeoning hub at Colombo's Bandaranaike International Airport.

SriLankan Airlines chairman Nishantha Wickremasinghe had this to say about Sri Lankan's plans

We have not exhausted all the routes given to us under the bilateral agreement and have room to include more destinations." "The travellers come to Colombo for onward connection to West Asia and Far East as we plan to make Colombo an important hub... We cover most of the cities in India. For instance we fly four times a day from Chennai to Colombo and once a day from Madurai, Tiruchi and Kochi and also from Delhi and Mumbai with near full capacity on every flight. We also operate flights to Budha Gaya and Varanasi to cater to Buddhist passengers.

After facing challenges earlier this decade as the guerrilla war with the Tamil Tigers crescendo-ed to a close, SriLankan has rapidly remade itself into an aggressive international player on the Indian sub-continent and today has the farthest reaching European and Asian network of any airline on the subcontinent.

The carrier is scheduled to join the oneworld alliance of airlines later this year, and now operates a fleet of 23 aircraft (8 Airbus A320, 7 Airbus A330-200, 6 Airbus A340-300, 2x DHC-6-100) serving 33 destinations across Europe, Asia, and the Middle East.

India is a key part of the carrier's growth strategy, and in conjunction with LCC subsidiary Mihin Lanka (both carriers are owned by the Sri Lankan government), operates 92 flights per week from Sri Lanka to India, serving 10 destinations and 11 routes as shown below.

Route	Frequency	Aircraft	Notes
Colombo-Bangalore	10	A320
Colombo-Chennai	7	A340-300
	12	A320
	2	A330-200
Colombo-Delhi	3	A321	*Operated by Mihin Lanka
	7	A320
Colombo-Kochi	14	A320
Colombo-Mumbai	7	A320
Colombo-Trichy	14	A320
Colombo-Trivandrum	7	A320
Colombo-Madurai	4	A321	*Operated by Mihin Lanka
Colombo-Gaya	2	A321	*Operated by Mihin Lanka
Colombo-Varanasi	2	A321	*Operated by Mihin Lanka
Hambantota-Gaya	1	A320	*Operated by Mihin Lanka
TOTAL	92

As for the new flights, it would make sense for Sri Lankan to expand its operations into new Indian cities. In 2008, the carrier had pulled out from Hyderabad, Coimbatore, Kozhikode, and Kochi (before resuming Kochi in 2011) citing demand weakness.

Today, though, SriLankan is a much stronger airline today, with a better local economy and a bigger pool of connectivity to draw upon at Colombo. Any (or all) of these three destinations would make sense as expansion points for SriLankan.

Kolkata likely does not have enough origin and destination (O&D) demand, even though the market is currently un-served. Madurai might be able to support SriLankan, but it also has existing competition from low cost carriers (LCCs) SpiceJet and sees service from partner Mihin Lanka. It might also make sense to achieve part of the growth by using Mihin Lanka to grow flights from Hambantota's Mattala Rajapaksa International Airport.

Currently Sri Lankan's third largest operation by available seat kilometers (ASKs - trailing Colombo and the Asian mini-hub in Bangkok), Hambantota already sees international service to Bangkok, Male, and Gaya. Adding, say a twice weekly Hambantota-Chennai utilizing A320 equipment might make sense for SriLankan.

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INFOGRAPHIC: Airline-wise share of international passenger traffic, to and from India, 2011 to 2012

Based on a report in The Economic Times we have prepared this infographic showing the airlines' market share of international passenger traffic to and from India during fiscal 2011~2012.

The chart throws up some surprises. SriLankan Airlines and Oman Air feature on this list, but Singapore Airlines does not. Hard to accept? and where is AirAsia? Share your thoughts via a comment.

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British Airways commences Colombo route and enhances Hyderabad

British Airways has commenced a new route to Colombo and enhanced its existing Hyderabad service to six a week.

The airline yesterday announced the start of a three days a week service from London Gatwick to Colombo, Sri Lanka, via Male, Maldives.

To Hyderabad, British Airways appears to be trying to fill the vacancy created by Lufthansa's withdrawal of service. In case of Colombo, Srilankan Airlines is an applicant member to the oneworld alliance of which British Airways is a founding member. The airline will be looking to strengthen alliances in this part of the world.

The Hyderabad service will be operated by a three class Boeing 767-300ER, while the Male/Colombo service will be operated by a three class Boeing 777-200ER.

To Hyderabad

Courtesy British Airways

BA 277 departs London Heathrow at 14:30 except Sundays, and arrives Hyderabad at 4:55 the next morning.
BA 276 departs Hyderabdad at 6:50 except Mondays and arrives London Heathrow at 12:50.
On Wednesdays, flight 276 leaves and arrives 10 minutes later.

To Colombo

BA2043 departs London Gatwick at 19:30 on Sunday, Wednesday, and Friday, arrives Colombo at 12:35 the next afternoon.
BA2042 departs Colombo Monday, Thursday, Saturday 14:05 and arrives London Gatwick at 22:50 the same night.

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Qatar Airways to join oneworld alliance

Doha based, Qatar Airways is to join oneworld® airline alliance. Its election as a oneworld member designate was announced today at a press conference in New York.

The Doha-based airline's implementation into oneworld is expected to take between 12 and 18 months. British Airways will serve as the carrier's sponsor in joining oneworld. This move comes close on the heals of British Airways' close partner Qantas entering in to a strategic partnership with Gulf behemoth, and Qatar's strong competitor, Emirates airline.

Qatar Airways will be oneworld's second member airline based in the Middle East, alongside Royal Jordanian, which joined oneworld in 2007. In just 15 years of operations, Qatar Airways has built up a strong network serving 120 destinations in 70 countries. The airline operates over 100 flights a week to India, second only to Emirates.

Qatar Airways already code-shares with oneworld member designate Malaysia Airlines. It will develop bilateral links with more airlines in the alliance as it moves towards becoming a member of the group. Two oneworld member airlines currently serve Qatar's Doha hub - British Airways from London, and Royal Jordanian from Amman, along with member elect SriLankan, from Colombo. Additionally London is a major focus destination for Qatar Airways. The airline recently opened an ultra-premium lounge at Heathrow airport.

Among those alongside Qatar Airways Chief Executive Officer Akbar Al Baker at today's New York press conference to welcome the airline to oneworld were American Airlines' Chairman and Chief Executive Tom Horton, Chairman of the oneworld Governing Board; Chief Executive of IAG, parent of British Airways and Iberia, Willie Walsh; oneworld CEO Bruce Ashby; and senior representatives from other oneworld member airlines.

L-R Tom Horton (American), Akbar Al Baker (Qatar), Willie Walsh (IAG), Bruce Ashby (oneworld)

Qatar Airways Chief Executive Officer Akbar Al Baker said:

"Alliances are playing an increasingly important role in the airline industry today - and that will continue long into the future. Qatar Airways has carefully reviewed its strategic options and it is very clear that joining oneworld is by far the best way forward for us as we look to strengthen our competitive offering and give passengers what they fully deserve - more choice. Like Qatar Airways, oneworld is focused on quality and providing the best connections between the places most important to today's frequent international travellers.

"In Qatar Airways' relatively short history, we have quickly established a reputation for innovation, quality and excellence in everything we do, raising standards which our industry peers have watched with envy. We are pleased to build on that by becoming the only major airline from the Gulf to date to be invited to join any of the global airline alliances - and we are proud to have been invited to join the best of them, in oneworld. We look forward to completing all the joining requirements as soon as possible, and to fly alongside some of the best airlines in the world long into the future, bringing heightened benefits offered by oneworld to our customers."

American Airlines' Chairman and Chief Executive Tom Horton, Chairman of the oneworld Governing Board, said:

"Quality has always been the hallmark of oneworld, so we are pleased to welcome to our alliance another of the world's highest quality airlines. oneworld aims to be the first choice alliance for frequent international travelers the world over. Adding Qatar Airways will significantly improve our connectivity between many of the destinations that are most important to those customers, so today's agreement with Qatar Airways will enable us to offer even more value."

Willie Walsh, Chief Executive of IAG, parent of British Airways and Iberia, said:

"In Qatar Airways, oneworld is pleased to welcome another great airline that will enhance oneworld's network and product offerings in one of the world's fastest growing regions for air travel demand. Its fine reputation for customer service mirrors oneworld's own focus. British Airways is delighted to be serving as the sponsor of Qatar Airways in joining oneworld."

oneworld CEO Bruce Ashby added:

"The big three Gulf carriers have been embraced by millions of consumers the world over - just as consumers have embraced global airline alliances. Our own analysis clearly demonstrated that Qatar Airways is the best fit for oneworld's network, requirements, philosophy and strategy. oneworld is delighted to be the first of the global alliances to welcome a member airline from this region, enabling us to be the first to offer consumers the services and benefits offered by both a global alliance and a Gulf carrier. We look forward to welcoming another great airline to oneworld.

"oneworld's flexible approach to bilateral cooperation with carriers outside our alliance means that links already established between our member airlines with other carriers from this region may continue in tandem with Qatar Airways' addition to oneworld, further strengthening the choice and convenience we collectively offer our customers."

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Analysis: SriLankan Airlines set to join oneworld in 2013

Will SriLankan Airline's entry into oneworld force a change in the carrier's network strategy?

Image courtesy Wikimedia

Early Monday, SriLankan Airlines, the flag carrier of India’s southernmost neighbor, is set to be announced as the newest member of the oneworld, the global alliance of airlines. The carrier, which serves 60 destinations on a fleet of 21 aircraft, will add Kochi, Tiruchirapalli and Thiruvananthapuram to oneworld’s network of 850 destinations in 150 countries.

Sri Lankan’s entry into oneworld is being sponsored by Cathay Pacific, which serves SriLankan’s hub in Colombo 7 times per week from its own hub in Hong Kong via Singapore and Bangkok onboard Boeing 777-300 aircraft. SriLankan Airlines also has a code-share agreement with oneworld member-elect Malaysian Airlines and plans to implement code-shares with oneworld members Royal Jordanian and S7 Airlines. The carrier will enter the alliance in 2013.

"With the world airline industry increasingly focused on alliances, SriLankan has carried out in-depth analysis of the options open to the airline as we enter this latest phase of our development. Oneworld is very clearly the best option for us. Joining the alliance will help put SriLankan more firmly on the global aviation map and vastly improve our connections with the rest of the world," says airline chairman Nishantha Wickremasinghe.

For SriLankan, there is clear value added with entry into oneworld. The carrier already serves 3 Oneworld hubs; Tokyo, Moscow, and London and is rumored to be starting up service to 2 more; Sydney and Melbourne. Now, it will have access to the global alliance’s network and its marketing arm, which can help it win more passengers away from competitors, and add incremental sales revenue. Its frequent flyer base, limited as that may be, will also get expanded redemption opportunities around the globe.

From oneworld’s side, the value proposition is a little less clear. To a certain degree, simply adding an airline to the network, especially one in a region that can be considered a “hole” for that alliance, is always a good thing. And to the extent that South Asia is a hole for oneworld, that is true of SriLankan’s entry. But adding such a small airline doesn’t really do much for oneworld’s coverage of South Asia (really India). And Sri Lankan’s long haul network strategy, which consists of less than daily flights (in a lot of cases less than 3 per week) to a broad base of destinations scheduled for O&D purposes, isn’t exactly conducive to an alliance seeking to provide seamless global connectivity.

That’s not to say that Sri Lankan won’t have immediate benefits for oneworld. Oneworld frequent flyers will now have many more redemption options, especially to Colombo and Male (where Sri Lankan operate a whopping 38 flights per week). But I do think that entrance into oneworld will necessitate some changes in SriLankan’s network. For a long time now, oneworld has had substandard coverage of India. While its European connections are competitive, both SkyTeam, and especially Star Alliance have taken advantage of hubs located in regions with strong ethnic ties (Saudi Arabia and Singapore/Bangkok respectively) to strengthen their reach within India’s second and third tier cities.

The entrance of Kingfisher Airlines into the alliance was supposed to have solved this problem, but since Kingfisher’s entry was suspended indefinitely back in February, oneworld once again has problems here. SriLankan currently serves 7 Indian destinations; Bangalore, Chennai, Delhi, Mumbai, Kochi, Tiruchirapalli and Thiruvananthapuram. To add more value into oneWorld, look for SriLankan to also add (in some cases restore) flights to regional Indian destinations like Hyderabad, Coimbatore, Mangalore, Vijaywada, Kozhikode, and Pune. Doing so would substantially increase SriLankan and oneworld’s penetration into the Indian market.

However, to take full advantage of this would also necessitate a restructuring (moderate) of SriLankan’s longer haul operations. Currently, the carrier serves Tokyo 4 times per week, and London 7 times per week after cancelling 4 weekly service via Male, as well as twice weekly services to Moscow via Dubai on an Airbus A320. Reportedly, SriLankan is looking to add 9 further long-haul aircraft to the fleet by 2015; a mix of Airbus A330-300 and Boeing 777s. What this would allow is for SriLankan to enhance its long haul operation to better fit in with oneworld. London could be buffed up back to 12 flights per week (its level this summer), Tokyo could be made daily, and Moscow could be de-coupled from Dubai. The airline also has leeway in adding new sub-daily services to oneworld hubs like Berlin, Dusseldorf, Madrid, and the like. Thus in time, SriLankan Airlines’ network will likely shift to become a stronger asset for the oneworld alliance.

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Unusual images: Srilankan Airlines A320 returns home to Bangalore

I am frequently asked "what is the joying of spotting?" to which I reply "each aircraft has a history and a story to tell.

At first glance there is nothing out of the ordinary about this photo of Srilankan Airlines Airbus A320-232 registration 4R-ABH arriving at Bangalore.

This is the ONLY -232 in the UL fleet. So what? one might ask.

This airframe MSN 2914 was first delivered in late 2006 to the erstwhile Bangalore based Air Deccan, as VT-ADS.

Air Deccan was acquired by and merged in to Kingfisher Airlines. For a brief period VT-ADS operated as the "Simplifly Deccan" brand of Kingfisher before being returned to the lessor and parked in Phoenix. (Photo courtesy Sean D'Silva)

In March this year, MSN 2914 was leased to Srilankan Airlines and registered 4R-ABH.

In September, Srilankan Airlines received a major boost when Kingfisher Airlines withdrew its Bangalore Colombo service, thus prompting VT-ADS to return back home to Bangalore, this time as 4R-ABH.

It is just nice how the dots connect up.

Have a great weekend and thanks for visiting Bangalore Aviation.

See more photos on JetPhotos and on Flickr

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