Stay abreast of the fast moving economic super-power — India!
|
|
Travel News June 2007Travel and Transportation InfrastructureHow Deccan boards Kingfisher biz classGoAir mulling over FIIs proposals to acquire stakesPvt airports new merchandise in airGoAir offers low priced tickets for July-SeptNEC to set up dedicated airlines for NE regionTime to read fine printChangi, MADC sign agreement for Nagpur airportBest Western to develop 100 hotels in IndiaBed-and-breakfast biz gains popularityRitz-Carlton to open its first hotel in IndiaHilton Hotels making room for expansion with DLFGate Gourmet ready for a taste of IndiaBanyan Tree to start Rs 150 cr JV hotel in KeralaOberoi Group among top 10 global hotel chains
Sector: Aviation How Deccan boards Kingfisher biz class It was in early May that Vijay Mallya decided to change the course of Indian aviation. He called Captain Gopinath, the founder and chairman of Air Deccan, and tried to make him an offer difficult to refuse. Air Deccan’s back was on the wall: it had only a month’s cash left; it had defaulted on payments worth over Rs 200 crore to various partners like simulator providers, spare engines suppliers and maintenance firms. Time was running out, but not the Captain’s tenacity. He refused the deal and said, “I am from Mars and he is from Venus.” He then shot off an e-mail to all Deccan employees requesting them to dismiss all speculation about any merger or alliance with Kingfisher. All of a sudden, the deal seemed to be over. There were gloomy faces at Vijay Mallya’s headquarters. At Deccan, the situation was desperate. Edelweiss Capital, Deccan’s advisors then swung into action. The firm had done some work for Kingfisher in the past, and had some idea about its operations. A rapport also existed between senior Edelweiss and Kingfisher executives. Using their goodwill with the Mallya camp, they persuaded Mallya to adopt a different tack. They pointed out the synergies between Deccan and Kingfisher and the benefits of consolidation in a industry reeling under severe cost and margin pressures. Mallya, meanwhile, was also thinking along similar lines. He realised that his first approach was too strong and had put Gopinath on the defensive. It had made Kingfisher look like a predator. The public statements about his interest in Deccan had only elicited a sarcastic response from Gopinath. Another factor was also weighing on Mallya’s mind. If he failed, Deccan will have no option but to do a deal with any of the other investors. ADAG, with its money and muscle, would be a formidable competitor. Backed by the younger Ambani’s almost limitless fund-raising abilities, Deccan could continue playing the price warrior. Dirt cheap tickets would be dumped in the market, further worsening the financial position of all airlines. Mallya decided to turn on the humility tap and let the charm flow. As he hopped across London, Glasgow, Monte Carlo and Paris, he resumed conversation with Gopinath. He dropped all talk of acquisition, takeover or merger. He adopted the line of a friendly investor. He also refrained from public statements that would irk Gopinath or other investors. His team, meanwhile, was preparing the ground along with Edelweiss. They pitched the deal as an investment by UB Holdings, not Kingfisher Airlines. This was crucial in order to persuade Gopinath that a more flamboyant rival is not taking over his company. It was a different Mallya who phoned Gopinath early last week. “Would you consider it if I come in as an investor?” he asked. “May be we can come in with minority stake and then raise our holding through an open offer,” he told the Captain. Gopinath liked the idea. The alternative, ADAG, was simply not acceptable to him. But there was something he needed to resolve. Air Deccan’s original backers, including Lachmandas Ladhani, who were believed to have opposed plans to sell stake to the UB group. Mr Ladhani, one of the original investors in Air Deccan, has a 11% holding in the company. He managed to carry the day taking with him Mr Ladhani as well as the financial investors, ICICI Ventures and Capital Partners. While Mr Mallya may have been persuasive, there’s another man who wanted Captain to do the deal: Kiran Rao, the executive VP of Airbus. Considering that Air Deccan has placed an order for 62 A320 aircraft amounting to $2.4 billion, Airbus reportedly was concerned about the pre-delivery advance payments from the cash-strapped Air Deccan. At the press conference to announce the deal in Mumbai on Friday, it was clear who the dominant partner was. The venue was flooded with Kingfisher colours of red and white, and the Kingfisher girls had been thrown in for more colour. With the exception of the airline’s CEO and CFO on the dais, Air Deccan was hardly in evidence. Source: Economic Times GoAir mulling over FIIs proposals to acquire stakes Low cost carrier GoAir is considering several proposals by FIIs and high net worth individuals for acquiring its stake and could go for public offering in 2008-09. "We are not looking at selling or off-loading equity. We have proposals from FIIs, high net worth individuals, merchant bankers and other strategic investors to acquire our stake. We are evaluating these proposals. "We will sell on our terms keeping financial and strategic interests in mind", GoAir MD Jeh Wadia said while responding to questions at a seminar on the future of Maintenance, Repair and Overhaul (MRO) business in India. He also said the airline would consider going for an Initial Public Offer (IPO) by 2008-09. "By July or August", Wadias would launch an MRO - for line maintenance and heavy maintenance of aircraft - in a joint venture with Singapore Airlines Engineering Company (SAEC), he said, adding that an investment of over 30 million US dollars was being envisaged for the purpose. While line maintenance would be carried out at major airports by this JV company, the location for the heavy maintenance MRO was being selected, Wadia said. Addressing the seminar organised by the Aeronautical Society of India (Delhi), Air India CMD V Thulasidas said, the merged entity, also called Air India, would have special business units on MRO and ground handling, "for which we are looking at establishing joint ventures". Source: PTI via Economic Times Pvt airports new merchandise in air In a bid to increase the scope of private participation in the airport sector, the government is now working on a policy to allow private companies develop commercial airports entirely on their own, sans government equity. The sector that was opened up to private and foreign investments a few years ago needs huge investments in the coming years to keep pace with the growth in the aviation industry. Coined as private merchant airports, the projects are proposed to be developed without equity participation from the government. The policy on airport infrastructure would allow a private entrepreneur to set up and operate an airport on the basis of commercial viability, subject to the safety and security monitoring by the government. Besides safety and regulation, the government would also have a role in acquisition of land and various clearances. With more than $30-billion investment required in airport infrastructure by 2020, there is a need to incentivise private investment in the sector and this could be one of the models, an official in civil aviation ministry said. The government has kicked off the process by holding a meeting between senior officials from the civil aviation ministry and various stakeholders. The government is considering a licence-based approval procedure for the private merchant airports. It is proposed to allow 100% foreign direct investment (FDI) in the merchant airport sector. “About 400 million Indian passengers are expected to travel by air by 2020. With such tremendous growth in air passengers and air traffic, the country needs more investment in the greenfield sector. While existing airports could be developed through the public-private partnership (PPP) model, the government should encourage 100% private sector participation in new airports,” Centre for Asia-Pacific Aviation’s (Capa) The government has admitted that it would be difficult to generate the required resources in the public sector or even under PPP. Source: Economic Times GoAir offers low priced tickets for July-Sept Budget carrier 'GoAir' on Saturday offered tickets priced as low as Rs 225 for the upcoming festive season from July to September. The GoCelebrate offer has prices starting at Rs 225 for short haul flights between Mumbai-Goa, Ahmedabad-Delhi and Rs 525 for long haul flights like Mumbai-Delhi, Mumbai-Jaipur, Bengalooru-Mumbai and Mumbai-Chennai, a company release said. More than 20,000 free tickets for flights between Mumbai-Ahmedabad, Delhi-Jaipur, Bangalore-Cochin, Hyderabad-Chennai and Srinagar-Jammu would also be available, it said. The offer for booking tickets would be valid from May 21-25. "Every initiative introduced is designed around benefiting our customers," GoAir Managing Director Jeh Wadia said in a release Source: PTI via Economic Times NEC to set up dedicated airlines for NE region The North Eastern Council (NEC) on Saturday endorsed the recommendations of the Sidhu Committee and decided to set up dedicated airlines for the north east. "We believe that the decision will put an end to the single most important infrastructural obstacle in the way of the development of the region," Union DONER (Department of North-East Region) Minister Mani Shankar Aiyer told a press conference after the conclusion of the sectoral summit on air connectivity here. The Committee was constituted last year under the chairmanship of Manipur Governor S S Sidhu, who was earlier the civil aviation secretary, to recommend measures to strengthen air connectivity in the north eastern region. Asked to elaborate on the decision, he said, a public notice would be issued and selection would be made from the bidding airlines after examination of technical and financial bids. On the issue of redefining the role of NEC, Aiyar said he would form a committee under the chairmanship of the secretary to the ministry of DONER, Sushma Singh and the report would be placed before the 55th plenary session of NEC to be held in New Delhi in November. Source: PTI via Economic Times Time to read fine print This ain’t about the she’s-got-a-ticket-to-ride-but-she-don’t-care genre. Let Beatlemania and the 60s tackle that lot. Today, she better be sure of the ticket she buys before boarding that airplane. Many a crash, drunk and sleepy pilots, technical snags and grounding episodes in the recent past now act in concert as a wake-up call for the air traveler. She must take care too by reading the fine print across available insurance covers — either from insurance companies or credit card issuers, or for that matter, the airline itself, which sadly doesn't quite cover insurance. First, let’s zoom in on what airlines have on offer once you buy that ticket. Behind the ticket, in microscopic font, you’ll come across certain terms and conditions, which may prod you to believe that your flight insurance is well taken care of. Well, that’s just a ‘condition of carriage’, a regulation all airlines have to adhere to. “The condition of carriage outlines the rights of a passenger, rather than his insurability,” says Hitesh Patel, executive vice-president, Kingfisher Airlines. The clause covers death if the plane crashes. That’s all. And on domestic routes, on account of death, the sum assured varies between Rs 3 lakh and Rs 8 lakh ranging from kids to adults. It's pretty much the same for international carriers. “You have to buy insurance separately. We just go by the condition of carriage,” echoes Nisha Maharaja, regional manager, Indian subcontinent, American Airlines. Credit card companies divvy up the coverage amounts depending on the quality of card you possess. So for basic cardholders, the coverage will be far lesser than for the platinum or super-premium frat. Usually, for air accidents leading to death, the assured sums vary from Rs 10 lakh to Rs 1 crore. “We cover up to Rs 1 crore for our Platinum cardholders but only if the air ticket is purchased through the credit card. Otherwise, we cover up to Rs 40 lakh on the same,” says Amit Datta, VP-marketing, American Express. However, if you hold a free credit card, (ie if you are not paying the annual charges on it) it does not cover insurance anymore. All that noise about death is sheer compensation. But you don’t fly to die, do you? En route point A to B, hazards abound in the garb of risks and they all need to be covered. Accidents may cause dismemberment, partial or permanent, there could be an emergency medical evacuation, flight delays and misses, loss of tickets and the list goes on. In such cases, general insurance companies toss up airline travel covers, which fan an umbrella over both life and death-both domestically and in the international circuit. For domestic air travel, most insurance majors look into accidental death and permanent disability, emergency medical evacuation and repatriation — if the traveler dies in transit and the coffin needs to be brought to his/her hometown. Accommodation charges owing to flight delays, compensation for missed flights, loss of ticket, loss and disfiguration of baggage, besides a host of real covers are add-ons. That is, you’ve got to pay more for bundling. And if you thought food poisoning on board was covered, think again. Your best bet — sue the airline over sushi! Foreign travel insurance covers are slightly more comprehensive. Apart from all the domestic fixtures, including the add-ons, hospitalisation, delay of checked baggage, loss of passport, legal liability during overseas travel and hijack covers dot the skyline. “Foreign travel insurance is quite exhaustive and even includes emergency cash advance if you’ve lost your credit card,” points out a Bajaj Allianz official. In overseas travel, the risks weigh more on the medical and emergency side, and therefore, the costs show a northward skew. But stale food will continue to pale you. We recommend you sue the airline over sushi once again. Source: Economic Times Changi, MADC sign agreement for Nagpur airport Singapore's Changi international airport would provide consultancy services to Maharashtra Airport Development Company for helping convert the domestic airport here to an international one and train the staff. An agreement was signed between MADC, a nodal agency for developing a multi-modal international passenger and cargo hub in the city, and Changi airport in Mumbai on Friday. MADC would pay USD 1,20,000 for the consultancy services, MADC Vice Chairman and Managing Director R C Sinha told PTI from Mumbai. A joint venture company would be formed by next month, he said. Changi will also guide MADC in setting up a duty-free shop in the airport. The team from Singapore was led by Changi airport manager Kim Peng. Maharashtra government had entered an MoU with MADC in December last year to hand over the airport's control to the company. Source: PTI via Economic Times Sector: Hotels & Restaurants Best Western to develop 100 hotels in India Cabana Hotel Management Pvt Ltd, the Indian master licensee for Best Western, the world's largest hotel group, will develop 100 hotels in India's emerging business centres over the next seven to eight years by bringing in an investment of $1.2 billion. The Cabana group will develop 3.5 to 4 star hotels in various cities and 5 star capable hotels in major cities. It would also look at acquiring hotels in tier II cities and converting them into Best Western brand hotels. Cabana has finalized plans to establish six hotels in Ooty (Tamil Nadu), Bangalore, Jaisalmer (Rajasthan), Kanyakumari and Rameshwaram (Tamil Nadu) and Bhubaneshwar. The construction of these hotels is likely to be completed in two years. 'We are now looking at Delhi, Mumbai, Chennai, Chandigarh, Indore, Lucknow, Patna, Ahmedabad, Surat, Nagpur, Aurangabad and Hyderabad,' Prabhu Goel, co-chairman of Cabana Hotel Management, told IANS. 'Business centres are our priority. We would like to cover all metros and state capitals,' said Prabhu, whose group owns and runs eight Western-branded hotels in the US. The master licensee agreement with Cabana is part of US-based western International's aggressive development plans for India to leverage the country's growing business travel and tourism market. There is huge under supply in hospitality industry. 'The airlines industry is growing at 25 percent for five years but there the hospitality industry is not keeping pace with this growth. The hotel tariffs are going sky high and even exceeding the tariffs in the West,' said Anil. India has an estimated 110,000 hotel rooms across all categories, 40 times less than the total rooms in the US. 'The number of hotels in India is less than the hotels in Las Vegas,' he said. Cabana hopes that the six properties it was building would break up in the very first year of their operations. 'It usually takes two years to break even but we expect it in first year,' he said. The revenues for first few years from each of these hotels are expected to be $2-4 million and they will scale up to $4-5 million. The revenues from the luxury hotels in metros are expected to be $20-25 million. On the advantages of being master licensee for Best Wester, Prabhu says: 'There is lot of flexibility in operating hotels. They have set of standards but you can exceed that set of standards. It is the largest chain of hotels in the world and the licensing fee is also very low.' Best Western wants to have a strong brand in India to target the large number of Indians going abroad, especially to the US, Europe and China, where the Best Western already has strong presence. Headquartered in Phoenix, Arizona, the Best Western owns and operates 4,200 hotels in 80 countries. Source: IANS via Yahoo Bed-and-breakfast biz gains popularity In the good old days it was common for country travellers to spend the night at a barn rather than a hotel. In many parts of the world, the custom evolved into a big business called `bed and breakfast’ (B&B). In India, it’s still a novelty. The home-stay (sort of B&B) policy of the ministry of tourism announced last year, is working its way through a maze of wannabe commercial shelters dotting the country’s landscape and adding rooms in a market where demand has clearly outstripped supply. In Delhi, the government has approved around 100 such homes (500 rooms) to be classified as B&B accommodation, whereas in Jaipur, a branded homestay programme by the name Jaipur Pride Project, is being promoted by the Clarks Group of Hotels. The group will be taking the programme through Mumbai, Delhi and Bangalore by year-end. Another player working in close proximity with the tourism ministry is Comfort Homestay, which at present operates 100 rooms in major cities across India, including Delhi, Bangalore, Mysore, Mumbai, Pune and parts of Rajasthan and Kerala. The Indian Association of Tour Operators (IATO) and TAAI (Travel Agents Association of India) are responsible for inspection of the rooms, ensuring that the houses meet minimum standards, before granting them the status of B&B accommodation. “By 2010, we plan to bring 10,000 rooms under the homestay programme. The scheme will be a hit once the tax to be paid by such home owners is waived off,” says IATO president Subhash Goyal. Though hot tourist spots such as Goa and Himachal Pradesh boast of many homestay accommodations, gaining acceptance among foreign and Indian tourists alike, say tour operators. Source: Economic Times Ritz-Carlton to open its first hotel in India The Ritz-Carlton Hotel Co plans to open its first property in India in the southern high-tech centre of Bangalore, media reports and company officials said Tuesday. The luxury hotel chain plans to spend about 100 million dollars to develop a 250-room luxury property that is scheduled to open in early 2010. Ritz-Carlton is taking on the project with the help of local real-estate company Nitish Estates, which is to build the hotel while Ritz-Carlton is to manage it. Indian hotels in most cities are enjoying steady occupancy levels because of an increase in intercity travel and tourism. Industry reports indicated an increase in hotel development in the Bangalore area, known as India's Silicon Valley, with the number of premium rooms available in the city expected to exceed 8,000 by 2012. US-based Ritz-Carlton operates 63 hotels in 21 countries in North and South America, Europe, Asia and the Middle East. Its investment in India is to be funded through a mix of debt and equity. Citigroup has committed 30 million dollars as the first tranche of investment in the hotel project. Source: Earthtimes.org Hilton Hotels making room for expansion with DLF Pursuing a three-pronged development strategy for India, the US-based Hilton Hotels is looking at ten-fold increase in the number of hotel properties. The hospitality major is also planning to increase its room inventory three over five years. Disclosing the roll-out of 10 hotel properties as part of the first phase of the 75-hotels development JV with real estate group DLF, Ian Carter, CEO, international operations, Hilton Hotels, told ET that the sites included Delhi, Mysore, Bhubaneswar, Bangalore, Hyderabad, Goa and Kolkata. While the mid-market brand, Hilton Garden Inn, would come up at Saket and Rohini in Delhi, other locations identified for the brand include sites at Mysore, Bhubaneshwar and Hyderbadad. Homewood Suites, the long-stay brand in Hilton’s portfolio, would debut at Kolkata, Bhubaneswar and Hyderabad. The Group’s flagship five-star brand, Hilton, would come up at Bangalore as part of an airport complex while the 300-room Goa property would be an extension of a convention centre. Hilton has eight hotel properties with 1,500 rooms in the country, being managed by the Oberoi Group under the Trident-Hilton brand. Mr Carter said that the 74-26 JV between DLF and the Hilton Group, announced last year, has identified 20 sites for hotel projects across the country. Plans are afoot to have 75 properties in place over the next seven years. Hilton Group’s investment in the JV is $143 million. The agreement with the DLF Group is exclusive for three brands in the Hilton portfolio — Hilton, Hilton Garden Inn and Homewood Suites. “We would continue to work with independent hotel developers for bringing in other brands in our portfolio,” said Mr Carter. Hilton has in all nine brands in its portfolio. It is also exploring opportunities to bring into the country two of its premium luxury brands, Conrad and Waldor-Astoria. “India is an important market for Hilton and the mid-market is where we see tremendous growth opportunities, especially in city centres, suburbs and the secondary cities,” said Mr Carter Source: Economic Times Gate Gourmet ready for a taste of India Gate Gourmet, a global airline catering and logistics provider, has taken its first step to expand into India, to gain a foothold into what it believes is one of the world’s fastest growing economies. The company has signed a memorandum of understanding (MoU) with Advani Hotels & Resorts India for the transfer and sale of its flight catering unit, Airport Plaza Flight Services. The enterprise is the sole airline caterer at the international airport in Goa. Airline customers are primarily charter companies and domestic carriers. The agreement is subject to due diligence and the approval of Advani’s shareholders. Terms were not disclosed. “We are very pleased and excited about the prospects of entering the Indian subcontinent for the first time,” said Guy Dubois, executive vice-president, chief financial officer and chief administrative officer. “Gate Gourmet has successfully restructured and is now poised for strategic growth. India, with its vibrant economy, is a natural area for expansion where we can offer our unique blend of culinary innovation and logistic expertise to a new roster of clients.” Mark Wall, president of the Asia Pacific/Middle East region, said, “India’s growing importance is clearly defining a new leadership role in all aspects of the aviation industry. We are extremely pleased about this cooperation, and the opportunities to further expand into this region.” Founded in 1992, Gate Gourmet is the world’s largest independent airline catering and logistics company. Revenue in 2006 was 2.4 billion Swiss francs. With approximately 20,000 employees worldwide, Gate Gourmet produces an average of 200 million meals annually, serving customers from 95 flight kitchens in 26 different countries and five continents. Source: Economic Times Banyan Tree to start Rs 150 cr JV hotel in Kerala The Singapore based internationally acclaimed hospitality group - Banyan Tree Hotels and Resorts - is foraying into Kerala to start a Rs 150 crore joint venture luxury resort in a backwaters island of Chertalla in Kerala's Alapuzha district. The resort, which would be the most luxurious in India, would have 60 traditionally built villas with contemporary interpretations and each villa having its own private swimming pool, Banyan Tree Chairman Ho Kwonping told reporters here. "We will bring an entirely new tourism concept to India and Kerala," he said. Kerala's famous Ayurvedic therapy will also be used in the Banyan Tree's spa at the new resort, which is expected to be ready by 2008, he said. The resort would also have luxury houseboats modelled on the lines of the traditional Kerala houseboats, criss-crossing the backwaters with tourists. Each houseboat would also have a jacuzzi. The Kuwait-based Kapico group will build the hotel on a 20 acre land belonging to the Mini Muthuoot group of Kerala. The project will be a seven star resort having 33 standard villas, 17 deluxe villas and a presidential villa and two and three bedroom villas on the lake side. Banyan Tree is joining hands with Kapico Group of Kuwait and Mini Muthoottu of Kerala for the joint venture- Kapico Kerala Resorts Private Ltd. Source: PTI via Economic Times Oberoi Group among top 10 global hotel chains India's incredible hospitality and heritage has attracted global attention with the country's leading hotel chain, Oberoi Hotels and Resorts grabbing a position among the world's top 10, according to a latest survey. As per the study conducted by Zagat Survey, leading provider of consumer survey-based leisure content, the Oberoi Hotels and Resorts, which manages luxury hotels and cruisers in India, Egypt, Indonesia, Mauritius and Saudi Arabia has been ranked one of the world's top hotels, resorts and spas. The domestic hotel chain has booked its place in the top 10 list along with global high profile hotel chains like Amanresorts, Ritz-Carlton, Four Seasons, Rosewood, Mandarin Oriental, Raffles, St Regis and Shangri-La. In the small hotels, resorts and inns segment with less than 100 rooms the Oberoi Udaivilas was ranked the sixth and in terms of rooms (based on rooms score) and service it was ranked fifth and enjoyed a tie with Inn/Little Washington DC. While, taking into consideration the dining and facilities the Oberoi Udaivilas was ranked third again a tie with Inn/Little Washington DC. The Oberoi Group, owns and manages 32 hotels and luxury cruisers across five countries under the Oberoi Hotels and Resorts and Trident Hilton brands. The group is also engaged in flight catering, airport restaurants, travel and tour service, car rentals, project management and corporate air charters Source: PTI via Economic Times |
Browse our report categories
Want to pay with your Indian Credit Card? Read our Customer Service Policy
|
| Join our Affiliate Program! | Affiliate Information | Privacy Policy | Customer Service Policy | Contact us | Media Kit | Site Map | Research and Writing Services | Article Index | Linking Policy | Inflation Watch | India Blog |
www.india-reports.com: A Chillibreeze Website - Focusing on niche, value added epublications covering Indian business, economy, industries and government policy. The information on this web site is protected by copyright. Users of the web site are not authorized to redistribute, reproduce, republish, store in any medium, modify, or make public or commercial use of the information without the written authorization of |