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Saturday, 27 October 2012

Many Airlines in Crisis due to Global Aviation Recession



American Airlines Crisis is biggest, Air India and Kingfisher are also in crisis but AA and  AI crew command higher market value


Massive wage cuts imposed on American Airlines workers

Using the threat of bankruptcy as a hammer, union officials and American Airlines executives this week collaborated to push through $1.8 billion in wage cuts and other concessions on employees at the world’s largest airline. The deal reached by the unions representing pilots, flight attendants, mechanics, baggage handlers and other ground workers will cut wages between 16 and 23 percent, impose further benefit and work rule concessions and slash thousands of jobs.

The takeaways are part of the massive cost-cutting and restructuring campaign being carried out by the airlines—with the full backing of the Bush administration—to restore profitability at the expense of their workforces and the traveling public.


Officials from the Association of Professional Flight Attendants (APFA), whose members were the last to hold out against the concessions demands, repeated management’s bankruptcy threats. Union spokesman George Price warned that concessions would be “much worse than what’s in this proposal” if the company were to go under. John Ward, the union’s president, sent an email earlier in the week to members, saying, “We are angry with the company for taking this approach and we’re sure you are as well. But we can’t afford to let that anger dictate our actions.”



Air India staff, often seen as relatively dowdy compared with the suave Kingfisher crew, are heaving a sigh of relief . By virtue of working in a public sector organisation, their jobs are secure, and their comparatively higher experience means they command a higher market value.

In contrast, Kingfisher employees are struggling to make ends meet, though things have gotten a bit better, as the management has just cleared payment of salary arrears.

Both airlines have had salary and staff issues in common. Both airlines have not been able to pay their employees for months together in the past, inciting numerous protests and strikes by workers. But while Air India salaries are higher than the market average, they are also sure to come through from time to time due to government support.

On the other hand, till just a few days ago, it was touch and go as to whether the dues of Kingfisher employees would come through at all. "There are workers' issues here too, but comparatively we are in a much better position than Kingfisher employees. We get late salaries, but we do get the full amount now and then," an executive pilot from Air India said, adding that this is the unanimous view of the entire AI workforce.

As of now, Air India is yet to clear five months of salary backlog but the company is doing it very slowly. Kingfisher staff says that most of them have been breaking fixed deposits and using up other savings during the past seven months of going unpaid. The airline has not given form 16 to its staff since 2009, which is making it difficult for them to avail even bank loans.

Even though income tax authorities recently freed Rs 60 crore that Kingfisher Airlines owes in taxes to the government on humanitarian grounds, this has not been passed on to employees as salaries. While Kingfisher Airlines' owners' son Siddharth Mallya, for whom the carrier was an 18th birthday present, is hunting for models for the Kingfisher calendar in London, the airline's flying permit has been suspended and workers still don't know when they will be paid in full.

Another Air India employee related a colleague's story: "One of our friends left AI due to salary issues and joined Kingfisher Airlines last year. Now, he is in a complete mess and looking at him we know it's better here. We are in more demand than Kingfisher crew and have more opportunities." In the last couple of months, 15-20 commanders have left Air India and joined Gulf carriers like Etihad and Oman Air.

Insiders say an equal number may leave soon because these foreign carriers are expanding overseas operations with the help of wide-bodied Boeing (777, 747) aircraft. But Kingfisher pilots, on the contrary are all ATR or Airbus-320 pilots, suited for short and medium haul flights. "It is difficult for 500 of us to find opportunities as the industry doesn't have space for so many of us," a Kingfisher pilot said.

Meanwhile, experts also feel that the comparatively older Air India cabin crew are more experienced in terms of air safety than their younger Kingfisher counterparts.

"The role of cabin crew is air safety. I would feel much safer with AI cabin crew in an emergency situation than young Kingfisher cabin crew, who are inexperienced. Big airlines across the globe like Lufthansa, Turkish Airlines, Air Canada etc prefer having older cabin crew on long-haul flights for this reason," said travel technology solutions provider Bird Group ED Ankur Bhatia.




Shekhar Gupta
CEO
Capt. Shekhar Gupta [ Pilot, DIAM, M.Ae.S.I., MAOPA [USA] ]
shekhar@aerosoft.in 
Blog : http://shekharaerosoft.blogspot.in/ 

Shekhar is a Professional Pilot with more then 8 years experience of Flying on 14 different types of Air crafts in 10 different countries with accident free flying record. Shekhar is good in Flying Training as well as in Ground class for Pilots. Shekhar started his flying career from Skycabs [Colombo ] and worked for many Airlines Training Companies from different part of the world. He trained more then 350 Pilots who are flying world wide. He is a member of Aircraft Owners & Pilots Association [ USA], Royal Society of Aeronautics [ UK], Delhi Flying Club, Aeronautical Society of India, MP Flying Club Indore, Aeronautical Research Society. He is a frequent flyer on AA, Air India, British Airways, Cathey Pacific, Delta Airlines, Emerites, Ethihad, Jet Airways, Kingfisher and many more. Shekhar is an active member of www.MissionToCanada.com  set up by Govt. of Canada and Air Transport Association of Canada.

His recent passion is Aviation SEO for which he takes classes for IIT & IIM students in India and others in abroad. And www.AirAviator.com  a new proposed virtual Air Charter Services.

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I don't owe anybody money, says Dr Vijay Mallya




Flies in for Indian GP, slams critics, says played active role in settling salary issue of Kingfisher Airlines Ltd Employees


Embattled Force India team boss Vijay Mallya made his Indian Grand Prix entrance in combative mood today, lashing local media for their coverage of his business troubles and grounded Kingfisher airline.

The liquor and aviation tycoon, no longer a billionaire according to the latest Forbes list, flew in from London on his private Airbus after suggestions that he might stay away to avoid having it impounded.



'India need not be embarrassed about airlines going bust'
“Was there any doubt about my presence here?” he told Reuters, minutes after walking through the paddock turnstiles with cars roaring around the Buddh circuit as final practice got under way.
Mallya’s Kingfisher Airlines had its licence suspended by India’s civil aviation authorities last week and has not flown since the start of October after a protest by employees, unpaid since March, turned violent.

The airline has never turned a profit and, according to the consultancy Centre for Asia Pacific Aviation, has total debt estimated at about $2.5 billion.

Mallya has not been seen in India for weeks and the airlines troubles, as well as a threat of protests by Kingfisher employees outside the Formula One circuit, have led to speculation about whether he would return for the race.

“I have always been available and whatever settlement has been reached (between the airline management and the employees) it's because of my participation,” he told PTI

“You believe Indian papers have any credibility?”said Mallya, bristling when asked about the recent coverage of his affairs.

“There is no libel law in India, so there is nothing you can do to bring them to book,” he added, accusing his media critics of 'cooking up sensational headlines daily' and writing nonsense. “Obviously, if I am not at my home grand prix, why should I be anywhere else?”

Rebukes doubters
Mallya is an important figure in Formula One, a longtime friend of F1 supremo Bernie Ecclestone and sitting on the governing International Automobile Federation's world motor sport council.

He was also instrumental in bringing the sport to the country and co-owns the first and only Indian-licensed team.

“Why should there be even one iota of doubt that I wouldn't be here? I just don't understand it,” he said. “Kingfisher Airlines is a Plc. They (the local media) don’t understand the concept of a Plc. In a Plc where is one man, who might be the chairman, responsible for the finances of the entire Plc? And what has it got to do with all my other businesses? I have built up and run the largest spirits company in the world in this country.”

Asked whether he had flown to India on his plane, Mallya vented more frustration.

“You are probably referring to my plane being seized? Wonderful. I don’t owe anybody money,” he said. “Why should my plane be at risk. It's so stupid.”

Mallya also controls United Spirits, which is in talks to sell a stake to UK giant Diageo Plc, and flagship liquor business United Breweries.

Asked about the Diageo talks, Mallya said no deal had been done yet: "Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," he added.

Ferrari move to calm navy flag row
Ferrari moved to placate angry Indian authorities on Saturday with an assurance that a navy flag on their Formula One cars was not a political statement of support for Italian sailors detained for killing local fishermen.

The Italian navy flag will, however, remain on the cars for the remainder of the Indian Grand Prix weekend.

Indian motorsports federation (FMSCI) head Vicky Chandhok said he had had talks with Ferrari after the Indian Sports Ministry wrote to him and race promoters expressing concern about the Italian team's gesture.

“(Ferrari) were very clear that they do not want to interfere in the Indian judicial system. They have the utmost respect for India and the Indian public and do not want to hurt any sentiments here,” he told Reuters. “They have given us a fresh statement that is very clear that it (the gesture) is not political in nature.”

The two sailors were detained in February on charges of killing two Indian fishermen while protecting a cargo ship off the Indian ocean coast.

Italy says the sailors, who were released on bail in June in the southern state of Kerala, mistook the men for pirates.

Ferrari issued a statement on Saturday saying they had put the flag on their cars as a tribute to “one of our country's outstanding institutions”.

The declaration overwrote one published on their website (www.ferrari.com) earlier in the week that had also hoped the sailors' situation would be resolved.

The sports ministry, in their letter to grand prix organisers, had asked the FMSCI “to take steps to ensure that the event is not politicised in any manner and sentiments of the people of India are not hurt”.

“The ministry have the view that any such action by Ferrari may also be construed as an attempt to subvert the process of justice,” the letter added.

Formula One's governing body, the International Automobile Federation, has an apolitical and non-religious stance. The FMSCI said in a statement of its own that it would "not permit any attempt to subvert the process of justice by politicising" the grand prix.




Shekhar Gupta
CEO
Capt. Shekhar Gupta [ Pilot, DIAM, M.Ae.S.I., MAOPA [USA] ]
shekhar@aerosoft.in 
Blog : http://shekharaerosoft.blogspot.in/ 

Shekhar is a Professional Pilot with more then 8 years experience of Flying on 14 different types of Air crafts in 10 different countries with accident free flying record. Shekhar is good in Flying Training as well as in Ground class for Pilots. Shekhar started his flying career from Skycabs [Colombo ] and worked for many Airlines Training Companies from different part of the world. He trained more then 350 Pilots who are flying world wide. He is a member of Aircraft Owners & Pilots Association [ USA], Royal Society of Aeronautics [ UK], Delhi Flying Club, Aeronautical Society of India, MP Flying Club Indore, Aeronautical Research Society. He is a frequent flyer on AA, Air India, British Airways, Cathey Pacific, Delta Airlines, Emerites, Ethihad, Jet Airways, Kingfisher and many more. Shekhar is an active member of www.MissionToCanada.com  set up by Govt. of Canada and Air Transport Association of Canada.

His recent passion is Aviation SEO for which he takes classes for IIT & IIM students in India and others in abroad. And www.AirAviator.com  a new proposed virtual Air Charter Services.










Aviation Min brings new expert in AAC
Indian Express
The civil aviation ministry has restructured the Aircraft Acquisition Committee (AAC) by introducing an independent expert in the committee. The new addition in the six-member committee is a former Directorate General of Civil Aviation member HS Khola.
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Aviation support staff works hard to keep aircraft safe
Jacksonville Daily News
Hall is one of thousands of aviation support crew members who spend 12-hour days working on Marine Corps aircraft like the CH-53E Super Stallion, ensuring the copter is ready for the pilots when they take it out. But Hall doesn't complain about her ...
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I don't owe anybody money, says Vijay Mallya
Business Standard
... his business troubles and grounded Kingfisher airline. The liquor and aviation tycoon, no longer a billionaire according to the latest Forbes list, flew in from London on his private Airbus after suggestions that he might stay away to avoid having ...
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Boeing Offers Brazil's Aerospace Companies Work On Super Hornet As It Tries ...
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SÃO PAULO — Boeing Super Hornet partner GE Aviation recently signed memoranda of understanding (MOUs) with Brazilian companies to become potential suppliers for the program's global supply chain, strengthening the in-country component of Boeing's ...
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38 teams to fly or crash in S'pore's 1st 'flying' event
AsiaOne
SINGAPORE - 38 teams of wacky aviation enthusiasts will leap from a 6m high runway and pilot their self-made crafts through the air tomorrow at Siloso Beach, Sentosa before landing with a splash in its sparkling, blue waters. These aviationadventurers ...
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VARs worried about losing sales as organizations shift to cloud computing are thinking of becoming service providers themselves. EMC is willing to help some





EMC Corp. is about to release its service provider partner program for VARs wanting to get into the cloud business, according to a company official.
Dennis Hoffman, senior vice-president of EMC's global service providers program, revealed the news Wednesday during an interview at the EMC Forum in Toronto, a day-long seminar for showcasing the company's solutions.
Related Story: EMC takes three paths to the cloud
The service provider program has been restructured to carriers, outsourcers and service providers, Hoffman said. But system integrators are increasingly worried that as customer organizations turn to the cloud their sales of EMC hardware will suffer. So they want to be service providers.
EMC is willing to help by broadening its service provider program. But, Hoffman said, to qualify VARs will have to show proficiency in EMC solutions.
“Unfortunately there are a lot of people who wish to become service provides because they have to,” Hoffman said, “but the likelihood of their success is very low just because it's a whole different ball game – it's capital intensive, its service-centric, the margins are very thin – it's a tough model. And we don't want to flood the program.” The promise to open the service provider program to VARs was made earlier this year at EMC World.
Ultimately, cloud computing can make IT departments of organizations more efficient and organizations more agile, Hoffman said.
So far, however – at least in Canada, -- for enterprises it's what he calls a workload phenomenon: Deciding which workloads (such as application development or backup) goes in the cloud, and which are core applications that can't.


That means that CIOs and IT departments are becoming “portfolio managers” choosing which functions are able to go on public clouds, private clouds or stay in-house. “There's going to be plenty of apps for all of that,” Hoffman said.” I haven't talked to a CIO yet [of a large organization] that says 100 per cent of my workload is going to be in the public cloud.” In a separate interview Michael Sharum, EMC's country manager, said he isn't frustrated by our conservatism.
“Because the whole ‘big bang' approach to go [entirely] to the public cloud is a difficult approach to make. And it's not in our nature to do that. We as Canadians, we try things, we explore, we dip our feet in the water. We don't ‘big bang' anything.”
And, he added, its EMC's job is to provide organizations with core competencies before they move into the cloud.
“You need to clean up your own house and have it operating efficiently before divesting yourself of your applications.”
When he talks to companies and governments about cloud computing their main concerns are trust and security, he said, which echoes surveys done by research firms such as IDC Canada.
But, he said, “the reality is the cyber threat is very sophisticated and it comes at organizations whether the data is in-house or outside of the four walls.” Organizations that have good data protection solutions should be


Shekhar Gupta
CEO
Capt. Shekhar Gupta [ Pilot, DIAM, M.Ae.S.I., MAOPA [USA] ]
shekhar@aerosoft.in 
Blog : http://shekharaerosoft.blogspot.in/ 

Shekhar is a Professional Pilot with more then 8 years experience of Flying on 14 different types of Air crafts in 10 different countries with accident free flying record. Shekhar is good in Flying Training as well as in Ground class for Pilots. Shekhar started his flying career from Skycabs [Colombo ] and worked for many Airlines Training Companies from different part of the world. He trained more then 350 Pilots who are flying world wide. He is a member of Aircraft Owners & Pilots Association [ USA], Royal Society of Aeronautics [ UK], Delhi Flying Club, Aeronautical Society of India, MP Flying Club Indore, Aeronautical Research Society. He is a frequent flyer on AA, Air India, British Airways, Cathey Pacific, Delta Airlines, Emerites, Ethihad, Jet Airways, Kingfisher and many more. Shekhar is an active member of www.MissionToCanada.com  set up by Govt. of Canada and Air Transport Association of Canada.

His recent passion is Aviation SEO for which he takes classes for IIT & IIM students in India and others in abroad. And www.AirAviator.com  a new proposed virtual Air Charter Services.



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Welcome to AeroSoftSEO - AeroSoft Corp | Best Aviation SEO ...

www.aerosoftseo.com
Mission Vision Passion DBA JHR; B2B B2C OJT Blog FAQ; Search Vender Term Resources; Welcome to AeroSoftSEO. AeroSoft Corp is a very small sized newly establishing ...
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