Travel News March 2007

Top Travel Destinations

Skiing is good business at Gulmarg

At over 14,000 feet above sea level, the Afarwat Mountains in Gulmarg play host to thousands of tourists from across the globe. In the six months from November to April, Afarwat is a popular skiing destination for tourists especially from the US and Canada.

The thrills and spills in Gulmarg have so far attracted about 15,000 tourists from November 2006. However, there's a lot more that can and needs to be done to develop Gulmarg. Like improving infrastructure, especially on the slopes by adding ski lifts and increasing the time for which the ski lift is operated.

A skiing trip in Gulmarg is about 20 times cheaper for a foreign tourist than it is back home. Skiers also don't have to pay for the slopes. Hotel rooms cost about Rs 2,000 a day and a full day's use of the ski lift costs Rs 700.

"It has got beautiful natural environment. It has got big mountains that gives skiers long ride. The service side needs to be improved and lifts should be operated at regular hours," said Peter Robinson, MD, Ski Himaliya Travel.

It's the soft snow and virgin slopes that brings them here. If better facilities are provided to the skiers here Gulmarg can become one of the best Ski destinations of the world.
Source: NDTV

Taj in last leg of new seven wonders of the world race

According to New7wonders.com-the website of the organisers of the campaign to shortlist the new seven wonders of the world-votes polled so far place the Taj among the top seven. The New7Wonders Foundation made the announcement on January 31. The new wonders of the world will be announced at a official declaration ceremony at Lisbon in Portugal on July 7.
Source: IBN Live

Mumbaikars eye Alibaug as a weekend getaway

High-powered speed boats zoom past at regular intervals as the air-conditioned catamaran from the Gateway of India cuts through the Arabian Sea on a recent Friday morning. Inside the catamaran, lawyer Hussein Mehta and his pregnant wife Geeta (names changed), seem visibly excited. They will be spending their first night in their weekend home, a sprawling 3,500 sq ft bungalow in Chondi village, Alibaug.

From a weekend getaway for the average picnicker, Alibaug just 12 km from Apollo Bunder as the crow flies has become a brand coveted by many of Mumbai's upwardly mobile. In the past one year, property prices in this rustic and agricultural area have doubled. And, according to property experts, close to 400 plots have been sold in 2006.

Most of the buyers are Mumbaikars desperate to own a patch of green. Almost all the beach-front plots have been snapped up and today there are clients who are willing to pay as much as Rs 2 crore for an acre and Rs 4 crore if there is a bungalow squatting in it.

Farther away from the beach, between Mandwa and Alibaug town, land prices have shot up to between Rs 20 lakh and Rs 35 lakh an acre compared to between Rs 12 lakh and Rs 25 lakh an acre a year ago.

"Most people are buying land because they want to get away from Mumbai but, at the back of their minds, there is also this idea that it is one day going to become an upmarket suburb of Mumbai," says Mark Selwyn, a former bass guitarist with the now-defunct rock group Indus Creed. He has now turned into a full-time real estate consultant, specialising only in Alibaug properties.

A speed boat from the Gateway can take you to Alibag within 15 minutes t upwards of Rs 5,000 a trip hereas a catamaran takes about 45 minutes.
Source: Times News Network

Travel and Transportation Infrastructure

Indian Railways set to become net savvy

You can travel by train in India and still remain connected with some long-distance trains set to get Wi-Fi connectivity.

Premier trains like the Rajdhani Express and the Shatabdi Express and even the Jan Shatabdi Express will be the first ones to be provided with the facility, officials of the Mumbai-headquartered Western Railway said.

The state-run RailTel Corp of India Ltd has carried out Wi-Fi connectivity tests on a few trains. 'The tests have proved that passengers will experience seamless connectivity on running trains. Considering the revenue it will yield, the project is being given top priority,' said Satya Prakash, divisional railway manager of Western Railway. Apart from enabling passengers to stay connected on moving trains, RailTel also plans to provide Wi-Fi connectivity at select railway stations to allow commuters to work on laptops and palmtops.

'Important stations in Mumbai like Chhattrapti Shivaji Terminus, Churchgate, Mumbai Central and Dadar will be among the first in the country to become Wi-Fi enabled,' said Prakash.

A RailTel source told IANS: 'RailTel will provide Wi-Fi connectivity at 500 stations. In addition, call centres would be set up at 14 stations by the year-end to provide quick information services about the arrival and departures of trains and the reservation status by simply dialling 139. 'We will soon be short-listing the trains and stations where Internet service would be made available.'

RailTel will also be setting up local area network (LAN) to provide Wi-Fi connectivity within stations. It is also looking at providing Wi-Fi connectivity to tourists visiting small towns through the LAN.

'A wireless LAN will be created in the coaches through transmitters placed inside them. Besides, a roof-mounted antenna would catch the signal from towers which are being set up at railway stations,' he said.

RailTel also plans to set up 250 cyber cafes at railway stations across India. It already operates nine fully air-conditioned cyber cafés offering Internet browsing, Internet telephony, video-conferencing and audio-video chatting.

IRCTC, ICICI Bank sign MoU for e-Ticket vending service

Internet user base in India is going to cross 100 million mark by '07 end significantly increasing overall net ambiance in the country. That's what seemed to have encouraged Indian Railway to go for more and more amalga-mation of its services with Internet.

After highly successful i-ticketing and e-ticketing for the Internet users, IR is now going to start net based e-ticketing vending machines to be run by merchant's establishments in all the major towns for common mass.

E-points of sale (e-POS) machines located at merchant establishments or shopping malls in over 125 cities all over India will make e-tickets against re-served accommodations available for all. Tickets can be purchased through plastic money via payment gateways including that of ICICI bank or cash on payment of service charges as per major credit card rules.

A MoU has been signed today by Smt. R. Hasija, Group General Manager (IT), Indian Railways IRCTC and Shri S. Khandelwal, GM, ICICI Bank today to facilitate spreading of the service all around the country.

Quoting Railway Minister Mr. Laloo Prasad Yadav as saying in the MoU signing ceremony, a senior NFR official said, It is an important step in the direction of making Railway tickets easily available to mass. This is a pilot project and more such facilities is in pipeline for future.

With ever growing Internet penetration in India, introduced earlier, i-Ticketing and e-Ticketing of IRCTC came out to be smash hits generating good revenue for the IR owned organization. IRCTC handles electronic book-ings for 8,500 passenger trains out of about 14,500 trains.

The e-tickets are delivered to 83 towns once the payment gateways authorize a transaction. More locations are being added. Reportedly,Broadvision Inc, a California based service provider runs the IRCTC site.

Despite good growth, there are miles for IRCTC to go. Lack of availability of its website, possibly due to shortage of bandwidth, is a common complain. Out of around 16 crore IR tickets generated a year, IRCTC sold only 25 lakh in 05-06
Source: Economic Times

Air sickness: New airlines wait for takeoff

The government's keenness to prevent sickness in the aviation industry may slam the brake on half-a-dozen new airlines, which have sought green signal to take off. The civil aviation ministry has asked these companies to come up with fresh business proposals and detailed financial plans to operate as scheduled carriers. The minimum capitalisation norms for airlines have been revised recently and Rajiv Gandhi Bhavan wants new entrants to come up with sound business plans.

New entrants shall be given permission only after the ministry is convinced that the companies have sound financials, sources in the ministry said. The move is part of the civil aviation ministry's efforts to ensure that only serious players with commercially-viable business model enter the aviation sector.

These applications are being vetted carefully to curtail unhealthy competition that may result in sickness among airlines, government sources said. The decision is likely to affect upcoming airlines including Easy Air, Mega Airways, Megapode Airline and Star.

The aviation industry is already facing acute competition with low fares eroding profits of various airlines. Jet Airways recently reported profits for the third quarter and Air Deccan is expected to come out of the red, but the aviation industry is likely to suffer losses to the tune of Rs 2,200 crore in the current financial year. The government is treading cautiously while issuing fresh licences to prevent the airline industry from collapsing, leading to repeat of the situation which led to collapse of carriers like East West, ModiLuft, NEPC and Damania.

The government is planning to impose tough conditions on the entry of new airlines. While increase in the minimum paid-up equity capital has been implemented, clearances for business and fleet plans may be tightened.

Once the new norms are in place, an airline company will need paid-up equity of Rs 50 crore compared to Rs 30 crore, at present, to qualify as a scheduled carrier. This norm will apply to airlines operating with aircraft takeoff mass exceeding 40,000 kg. In case of a carrier having takeoff mass less than 40,000 kg, like turboprops, ATRs and Dorniers, paid-up capital need will increase from Rs 10 crore, at present, to Rs 20 crore.

This restriction of increased equity will be in addition to the present requirement of domestic carriers possessing minimum five aircraft. The existing players will have to comply with these requirements within a maximum period of one year, official sources said. The new criteria may also affect the airline companies that have applied for licence to operate as scheduled carriers, they added.

Government to invite bids from pvt cos for non-metro airports

The government is gearing up to invite bids from private companies to modernise clusters of non-metro airports. Interested parties have to bid for 'bunches' of airports rather than indulging in 'cherry-picking' to bag the most viable projects. Bunches will be created by clubbing some airports in a region as a bouquet which comprises potentially profitable as well as loss-making airports, highly-placed government sources said.

Civil aviation ministry has identified clusters of 5 to 6 non-metro airports that will be part of each bunch. In the first phase, the ministry has identified 35 non-metro airports to private parties for city-side development and modernisation of these facilities is expected to involve investment to the tune of Rs 7,000 crore.

While the state-owned Airports Authority of India (AAI) will take up the task of modernising the 'air-side' of these airports, private companies shall be roped in to develop the city-side. Investment in runways, parking bays and technical facilities would cost Rs 5,500 crore while the city-side amenities would attract investment of Rs 1,500 crore.

Bids from private companies would be only for city-side development, the sources said. Air-side modernisation will involve developing the entire operational area including runway, taxiway, apron, communication and navigational aids, besides air traffic management systems. City-side involves non-operational areas including the terminal buildings, car park, restaurants, hotels and the entire area outside the operational boundary wall of the airports.

For city-side development, joint venture companies shall be formed in which AAI would hold minimum of 26% equity while the remaining stake will be offered to private parties. AAI's JVs with private companies to develop the city-side shall be on revenue-sharing basis. The civil aviation ministry will use the revenues earned from the city-side to finance the air-side of the airports, sources said.

The non-metro airports shall be developed in three phases with 10 being developed in first phase, 10 in second and remaining 15 in third. Work on air-side development at 12 airports has already been started.

Phase one, which involves an investment of Rs 1,110 crore, is expected to be completed by 2008.

Meanwhile, AAI, which needs Rs 5,500 crore to modernise non-metro airports, is gearing up to raise funds over the medium term. AAI has appointed AK Capital Services as financial advisor-cum-lead arranger for raising debt. UTI Bank, ICICI Securities and Allianz Securities have been selected as arrangers to help AK Capital.

The advisors are assisting AAI in placement of bonds, other debt funding options, and in identifying the suitable time to tap the market. Initially, AAI will use internal funds to modernise these airports. The airport manager has made more than Rs 700 crore of profit after tax in the year 2005-06 , up from Rs 325 crore in the previous year. AAI will use the debt to modernise non-metro as well as metro airports.

The 35 non-metro airports are located at - Ahmedabad, Amritsar, Agartala, Agra, Agatti, Aurangabad, Bhopal, Bhubaneshwar, Chandigarh, Dehradun, Dimapur, Guwahati, Goa, Imphal, Jammu, Jaipur, Khajuraho, Nagpur, Madurai, Mangalore, Patna, Port Blair, Thiruvananthapuram, Pune, Rajkot, Ranchi, Raipur, Udaipur, Lucknow, Vadodara, Indore, Vishakhapatnam, Trichi, Coimbatore, and Varanasi.

Air services to Mysore, soon a reality

This city of Palaces now emerging as a major Information Technology destination, is all set to regain its lost position in the aviation map of the country within the next couple of years with all hurdles for the development of a full fledged airport removed.

Initially the airport, at Mandakalli on the outskirts of the city towards temple town of Nanjangud, would cater to ATRs and aircraft that could carry about 70 passengers. However, in a later phase the facilities would be enhanced to handle Boeing and Airbus aircraft.

Fuelling the requirement of a airport is the flurry of economic activity the city is witnessing besides the humdrum of the tourist inflow is the growing IT Sector, making the city an alternate destination to Bangalore.

The city, one of the major tourist destinations in the country, had been on the aviation map more than five decades ago when a leading national newspaper was dropping its newspaper bundles using a Dacota aircraft. Thereafter it was linked with the rest of the country through Vayudoot services. However, poor patronage had led to discontinuance of the services by national carrier Indian.

With the hurdles for launch of work of upgrading the airport by the Airport Authority of India (AAI) cleared, Vishal Infrastructure Company, which had been awarded the tender for civil works by AAI had commenced the work. It would build two runways, apron, taxiway and other allied works under the supervision of AAI officials.

The Karnataka Government and AAI had earlier signed an MoU for the development of the airfield two years ago, and Industry and Tourism circles were egarly waiting for the project to take off.

With a 24-month dead line set for completion of Airport work, the air traffic was expected to commence in January 2009. A terminal building with a capacity to accommodate 200 passengers would be ready by the time flights began operating out of Mysore.

AAI's Deputy General Manager M N N Rao told UNI that the two runways measuring 1740 metres and 1350 metres, respectively, a taxiway peripheral road, boundary wall, a technical block-cum- control tower, a fire station, parking lot and electricity sub station. It would also have night landing facility. The total cost of upgraditon had been put at Rs 70 crores.

AAI officials were optimistic that the civil works would be completed ahead of deadline except for the terminal building. The rest of work including runways, apron, taxiway and peripheral road, besides the air traffic control tower, would be completed in about 15 months, a senior officials said.

Official sources said clearances from different civil aviation regualatory agencies including the DGCA, aviation safety cell and air trafic controller would be secured before the terminal building was complete so that the airport could resume its operations at the end of the deadline.

The New Delhi based MS Consultants Engineering Services had been entrusted with the task of destingning the 'Modular' terminal building. The upgraded airport would spread across a total of a 416 acraes of land including the existing 242 acres and the 174 acres recently acquired.

The AAI had already drawn up plans for development of Mysore Airport into a full fledged one with capacity to operate bigger aircraft like Boeing 737s and Airbus 320s, which accommodate more passengers. The Mysore district administration had begun the process of acquiring an additional 95 acres of land for developing the airport for operation of big aircraft. The fullfledged airport when ready would be located in a 511 acre land.

The process for upgrading the airport began after the city figured in AAI's master plan for development of airports across the country prepared recently.

The dire need for an airport was felt by the state adminstration following a steep increase in the flow of tourists, not only into the city but also to neighbouring areas such as Bandipur and Nagarahole National Parks and other tourist attractions in the neighbourhood by 30 per cent during the last three years.

The potential for air traveller to Mysore was reflected in the large number of tickets booked by the five international air travel association (IATA) recognised travel agencies in the city.

More then 70,000 air tickets were booked by people in Mysore per year highlighting the potential for air traffic in Mysore, said a tour operator.

State Tourism Commissioner Kumar Nayak, who was in the city recently prepare a detailed project report for boosting tourism in Mysore under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) of the Union government project, was optimistic about the city's air traffic generating potential.

Referring to the packed flights operating on the Bangalore-Hampi-Goa route, he said a similar response could be expected to when Mysore was airlinked. The tourism department was in a better position to market Hampi as a tourist destination with the availability of flight services. He also hinted that the tourism department would extend the same kind of support to private airline operators, who launch flight services from Mysore as well.

With a host of low cost airliners scounting for destinations to expand their business, experts from the aviation industry were hopeful of many airliners would make a beeline to launch flights from Mysore, which has emerged as an alternative destination ot Bangalore for industrial investment apart from being a tourist hub.

Once infrastrucrture was in place, airliners would start operating flights with the aviation industry undergoing an intense competition, said an top AAI official. Besides, air travel was no longer considered a luxury, it has become a common man's mode of transport with a number of low cost airliners operating in the country, he said.

Experts from the IT sector felt that Mysore to become home to more then 50,000 professionals from the software sector during next two to three years, the civil aviation industry would not be lagging behind in introducing flight services from the city.
Source: Deccan Herald, UNI

Budget airlines set for massive expansion

Low-cost carriers are on a fund raising spree. New Delhi-based SpiceJet and Bangalore's Air Deccan are in the process of raising funds to build warchest for massive expansion of their fleet.

SpiceJet just finished raising around Rs 300 crore by divesting up to 25% stake. The Tata group - through two of its investment arms - picked up 7% stake for Rs 75 crore. SpiceJet is in the process of firming up orders worth around $400 million for 10 Boeing 373-900 aircraft to be delivered in 2009. "We would require around $50 million for part payment if we decide to place firm orders for additional 10 aircraft," SpiceJet CEO Siddhant Sharma told ET. SpiceJet is likely to approach US-Exim Bank for financing over 85% of the fund requirement. The balance would be raised through another round of equity dilution.

Air Deccan plans to raise up to $75 million over the next three months by diluting around 15% equity to part finance 12 aircraft purchases - comprising eight ATR and four A320 - that are to be delivered in the current calendar year. The total fund requirements will be around $300 million, most of which will be met through sale-lease-buyback process. Air Deccan finance director Mohan Kumar told ET that the airline is evaluating the option to further dilute equity to raise funds for expansion of its fleet.

Earlier this month, Go Air had announced plans to dilute up to 20-25% of promoter's equity to raise funds. Indian carriers have enhanced seat capacity by around 40%. Air Deccan would add on an average one aircraft a month in 2007 while SpiceJet would take delivery of at least seven new aircraft.

Other low cost carriers such as IndiGo and GoAir are likely to add another dozen odd aircraft between them in 2007. "Given the aggressive expansion plans of our rivals we have to stay ahead of the pack," said CEO of low-cost carrier. Low-cost carriers captured around 32% market share in 2006. As per an estimate by Centre of Asia Pacific Aviation, LCAs are expected to garner 70% of the domestic market over the next three years.
Source: Economic Times

Corporate jet makers woo high fliers

The corporate jet market is finally flying high in India. And not surprisingly the makers of these magnificant flying machines are laying out the red carpet to woo the high profile buyers. Private jet manufacturers, aircraft maintenance firms, private oil companies and airport operators, are setting up dedicated Fixed Base Operations (FBO) for the first time in the country to tap this growing market.

FBOs offer private jet owners one-stop service not only for repairs, maintenance, hangarage and re-fueling, but also facilitate getting security and flight clearances, flight planning, custom clearances while flying in and out of the country. That, apart from other value-added services like car rentals, charters, private lounge, and gourmet meals.

What it means for the busy country or city-hopping corporate head-honcho is that he has a private enclosure of his own in the airport with exclusive walk through facilities. There are over 5,000 such FBOs across the US. FBOs such as Jet Aviation, TAG, Hawker Pacific and others have operations worldwide.

To start with, aircraft manufacturers want to collaborate with maintenance and repair companies to offer FBO services in the country. Aviation analysts note that the profile of the private jet owner in India has changed over the last couple of years. Till a few years back, a typical private aircraft owner with a small turbo-prop airplane would largely fly to remote manufacturing sites within the country.

State governments too were among keen users of such aircraft for VVIP travel. However today's corporate chieftains now want to traverse countries, if not continents - mostly to destinations in Europe, Middle East or South East Asia - to check out a prospective customer or size up a takeover candidate.

The multi-billion dollar cross-border deals that India Inc has been busy chasing off late is also reflected in their choice of private jets. Business houses who have placed orders for corporate jets recently include groups like Reliance, UB Group, DLF, GMR, Suzlon, Videocon, TVS Motor, DS Construction and Raymond.

"Emergence of an upwardly mobile class, a growing business business footprint of corporates across regional centres, and the resultant need for frequent business travel are driving demand for business jets in India," said Mr Ted Farid, VP (international sales), Raytheon Aircraft Company.

As per industry estimates, Indian corporates placed orders for anywhere between 110-150 private corporate jets in 2006, both for personal and official use. The biggest private aircraft player in the country, Raytheon Aircraft Company - makers of Hawker and Beechcraft planes - which claims to have over 60% share of the market, is exploring the possibility of establishing a Hawker maintenance facility in India, in association with an FBO service provider.
Source : The Economic Times

World's top plane makers compete for Indian air market

Drawn by the world's fastest-growing market for air travel, more than 500 companies will display their wares at the Aero India show starting Wednesday, hoping to secure a slice of the country's booming aviation needs.

Boeing and its big rival Airbus, Lockheed Martin and Dassault, are locking horns for a share of a surging market for both military and civilian aircraft estimated as being worth many tens of billions of dollars.

Air travel is booming as the Indian economy expands, with Airbus predicting annual growth of 7.7 percent through to 2025, the fastest pace for any single market.

An affluent middle class -- estimated at 300 million -- is being served by an increasingly diverse patchwork of airlines such as Kingfisher, Spicejet and Air Deccan.

Industry estimates suggest traffic in India could double by 2010 to 50 million passenger journeys a year.

Boeing expects India's requirements over the next two decades to be 856 extra planes -- four times the size of the current commercial fleet -- worth a total of 72 billion dollars.
Airbus forecast recently that India would need 1,100 planes over that same period, worth some 105 billion dollars, while both companies say improvements to the creaky aviation infrastructure would bring even faster growth.

This is the sixth edition of Aero India and, testifying to its popularity, the number of aerospace and related companies taking part is up by 35 percent from 2005, when the last show was held.

The five-day exhibition itself is taking up 50 percent more space. Partly fuelling that expansion is the United States, which is providing 30 firms, the first time US defence companies are taking a major part.

Up for grabs on the military side of the show is an Indian air force tender for 126 fighter jets to replace its ageing fleet of MiG-21s. Those in the running for the deal, estimated to be worth about nine billion dollars, include Boeing, Lockheed Martin, Russia's MiG-29 and the Gripen, made by Sweden's Saab. The European defence and aircraft group EADS is touting its Eurofighter and France's Dassault its fourth-generation Rafale.

Meanwhile, India's plans to upgrade 80 domestic airports offer potentially lucrative business opportunities for companies from builders and designers to cargo handlers, retailers and cafeterias.
Source: AFP via Yahoo! News

Massive turnout at India air show

Some 500 aircraft companies from around the world have flocked to an air show in southern India hoping to cash in on the country's booming aviation sector. The five-day event at the Yelahanka air base in Bangalore will showcase a range of new civilian and military aircraft.

India plans to buy 126 fighter jets for its air force to replace its fleet of ageing Soviet-era MiG-21s. Industry estimates suggest India will need more than 1,000 planes over the next two decades as air travel booms. Air traffic in India could double by 2010 to 50 million passenger journeys a year on the back of a growing economy, according to one estimate.
Some 45 foreign delegations and 35 air force chiefs from various countries are attending the five-day air show.

Indian Defence Minister AK Antony, who officially opened Aero India, said a decision on the purchase of the fighter jets would be made very soon. "It [the request for proposals] is almost in the final stage... I can assure that a decision in this regard will be taken very quickly," he told reporters.

The BBC's Habib Beary in Bangalore says the deal is estimated to be worth more than $10bn. He says the race is primarily between Lockheed Martin's F-16s, the Gripen made by Sweden's Saab, Russia's MiG-35, the Eurofighter from Europe and the Rafale made by French company Dassault.

Hundreds of civilian aircraft and fighter jets will be displayed during the air show, which is being attended by more international visitors than ever before. More than 50 US firms are among companies present. Ron Somers, president of the USINDIA Business Council, said it was no longer about the US selling equipment to India. "What is important is that India is being viewed by the US as a major link in the global supply chain, which will create thousands of jobs," he told the AFP news agency.
Source: BBC

Corporate India prefers private jets

Public air travel for many business executives is fast becoming passé. The new mantra is to own private jets, which are also about having to avoid long check-in queues and waiting time. Business jets or private aircrafts are giving corporates the freedom to choose when to fly and who they fly with.

The trend is seeing a huge demand. However, the exclusitivity doesn't come cheap. It costs anything between $3mn to upwards of $50mn to own one and even then there is a waiting period of five years.

"If you look at international growth around the world the culture is changing, especially here in India. Indians are recognising the need for business aviation just as Europeans have," said Sean McGeough, Vice President, Intl Sales, Raytheon Aircraft Company.
"The market place we have always looked at was the US but now we are looking at other market places and India is a part of that," McGeough said.

Booming market

Biz jets, seen as the indulgence of the super-rich, aren't new to India. Several honcho's including Ratan Tata and the Ambanis already own biz jets. But companies like Raytheon and Bombardier are hoping to tap into a booming economy and anticipate they will sell between 25 to 30 aircraft in 10-year time. The sector is not without its share of problems though.

"The entire biz aviation community is working closely with the Indian government to facilitate access to corporate aircraft in the country. There is a huge growth, infrastructure will need to be changed," said Leo Knaapen, Manager, Communications, Biz Aircraft, Bombardier Aerospace.

Biz jets are the new mantras of success. Those corporates who have the moolah and aren't afraid to flaunt it are acquiring biz jets and the demand can be seen from the fact that over five planes were sold in just two days of the recently concluded air show.
Source: NDTV

Indian gets $500-m loan from KfW Bank

State-owned carrier Indian on Monday signed a contract with Germany-based KfW IPEX-Bank for a loan of $500 million (about Rs 2,250 crore) to finance the acquisition of 43 Airbus aircraft. The airline has commissioned the bank to finance the first batch of 10 aircraft.
The loan will have repayment tenure of 12 years, Indian said in a release here. Indian had placed an order for the purchase of 43 Airbus aircraft last year, the first of which was delivered in October 2006. The public sector airline will use these aircraft to extend its network beyond south-east Asia and the Gulf region.

Indian CMD V Trivedi and Peter Klaus, chairman of the board of managing directors of KfW IPEX-Bank, signed the loan contract in Frankfurt on Monday. The KfW bank has also signed for a 50:50 joint underwriting agreement with the Germany-based HSH Nordbank.

Subsequent syndication in the international bank market is envisaged by the underwriters, Indian said. The KfW bank specialises in financing of complex transport and infrastructure investments.

Indian is likely to induct 9 of the remaining 42 Airbus aircraft — 20 A321s, 18 A319s and 4 A320s — in a staggered manner. With the induction of these 43 new aircraft, the carrier will have a total of 117 planes operating under its network. The carrier is also planning to lease six regional jets in 2007.

Two wide-body A330 aircraft are expected to join the fleet in October 2007, with which the airline will expand its international operations to Melbourne and Guanghzou. The airline has plans to start a direct Bangalore-Male flight five times a week and a second daily flight to Dubai by 2007 winter.
Source: Economic Times

Service Providers

Amadeus ties us with five online travel agencies in India

The five OTAs are Indiatimes, MakeMyTrip, Sify, Travelguru and Yatra.

Each of these online travel agencies (OTAs) is using the Amadeus API, giving online access to - and the ability book - the full range of domestic and international airline content in Amadeus’ distribution system. Each has also chosen Amadeus Master Pricer, an international air fare search engine.

Ankur Bhatia, managing director, Amadeus India said, “The new genre of online travel is fast sweeping the nation and Amadeus is right there in the leadership slot empowering all major players who at present account for almost 65 percent of total online travel in India.” During the EyeforTravel’s inaugural conference in New Delhi in October last year, the online travel market in India was expected to cross $750 million in 2006. By 2008, it is expected to exceed $2 billion.
Source: EyeforTravel via Yahoo! News

Club Mahindra on an international tourism trail

Club Mahindra Holidays, a subsidiary of the $3.8 billion Mahindra group, has acquired a 97-room hotel in Austria as part of its strategy to take footprint on international tourism trail.

The timeshare holiday major has acquired Bon Alpina hotel in Innsbruck, Austria for a sum of Rs 25 crore. The resort, which is a venue for Olympic skiing thrice, was acquired recently, sources close to the deal told ET.

With timeshare concept becoming a catalyst for the growth of family holidays, the move by the company is said to give a shot in the arm to its line of business in the global arena.

Club Mahindra will spend additional Rs 15 crore to renovate and upgrade the the resort. The resort is a profit-making property and the company will set aside 10-rooms for its timeshare members. The rest of the inventory will be used as a regular hotel, source said.

Noting that the leisure industry is growing a compounded annual growth rate of 50%, the source said Club Mahindra will be targeting Indian diaspora and Europeans as its clientele apart from its regular timeshare member wanting to try exotic locales.

"The company is just tailoring its products to suit the changing demographic profile," the source said.

It had earlier entered into alliances with other resorts for utilisation of space and has already an RCI resort in Thailand. It is looking for a similar arrangement in Malaysia. With sales offices in Dubai and Kuwait, the vacation ownership company is also looking at setting up resorts in Sri Lanka and Maldives, the source added.

The lifetime holiday major, has registered a turnover of Rs 154 crore last year.

It has a membership base of close to 50,000, with an occupancy rate at its resorts registering an impressive 70 per cent.

Known for launching unique marketing initiatives, the company is now leveraging the mall culture and has set up 'Holiday World' in leading retail venues as part of its experiential concept marketing.
Source: The Economic Times

Religious Tourism

EurosetIndia missing out on Buddhist tourism: report

India, home to some of the world's top Buddhist pilgrimage sites, needs to do more to capture the Buddhist tourism market, the country's chamber of commerce said.
India could boost tourism earnings from its Buddhist sites to one billion dollars in the next five years from 125 million dollars now if it improves facilities for visitors, the Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement Wednesday.

Three of the four most important places of pilgrimage for travellers following the wanderings of the Buddha are located in India, while the fourth is in neighboring Nepal.
But India has done a poor job of attracting travellers from Buddhist countries and of catering to them once they are in the country, the group said, citing the findings of a study to be released Thursday.

India drew just 0.06 percent of world's Buddhist population of about 350 million in 2004 to its Buddhist pilgrimage sites, the group said.

By 2012, India could increase tourist arrivals for the Buddhist tourism circuit by 400 percent from the current 200,000 a year, provided it improves infrastructure, the report said. Many of the Buddhist sites lack appropriate infrastructure, including good hotels, roads and guides who speak a variety of foreign languages.

India's most renowned Buddhist site, Bodhgaya, is located in the eastern state of Bihar, the country's poorest state, famed also for its lawlessness and backwardness. India must also increase direct flights from China and Japan, boost the frequency of domestic flights between Buddhist sites and issue Buddhist travellers multi-entry visas, among other changes, the group added.

Some 31 million Chinese travelled abroad in 2005, according to the study conducted jointly with India's ICRA credit rating agency, but only 35,000 of them came to India.
The five countries of China, Japan, Thailand, Vietnam and Myanmar account for more than 90 percent of the world's Buddhist population.

India began a seven-million-dollar project four years ago that will eventually link all the important Buddhist sites in the country through a rail network in a bid to become a Buddhist tour hub.

Buddhism emerged almost 2,500 years ago when Gautam Siddhartha, born into the ruling family of the Sakyas, renounced his princely world and meditated and attained enlightenment in the quiet eastern Indian village of Bodhgaya.
Source: Yahoo news

Indian pilgrims to attend festival at Katas Raj temple in Pak held after five decades

Around 200 Hindu pilgrims from India are likely to travel to Pakistan to attend a three-day festival at the famous Katas Raj temples in (Pakistan's) Punjab province. The festival is going to be held for the first time in several decades next week, after a team of Pakistani archaeologists travelled to India to study techniques for its restoration, reported the Daily Times.

The festival is taken as another sign of the thaw between the two countries. "We are expecting some 200 pilgrims from India to visit," the paper quoted Oriya Maqbool Jan, director-general of the Punjab Archaeology Department, as saying.

According to the paper, the festival will be the first at the temple since 1947 although a trickle of pilgrims from India had visited over the years. The temple, built on a hilltop named Saidan Shah about 120 km south of Islamabad, is mentioned in ancient Hindu and Sikh scriptures.

Maqbool Jan led a team of experts to India last year to learn techniques used in the successful restoration of part of the temple. He said that the complete restoration of the temple would cost about 1.8 million dollars.
Source: ANI

Medical Tourism

'Treated in India' catching on in West

A liver transplant in the United States costs around $450,000. In India it costs $40,000. If any explanation was required to describe why the Indian medical tourism industry is flourishing, this fact will nail it.

Today Indian medical tourism market is worth $700 million and the projection is that by the year 2010 it will swell to $1 billion.

The key is it is not just the south or west Asian population that is coming here for treatment — the UK/US crowd have also realised the value of coming to India. According to estimates, out of 1.5 lakh international patients who visited India, three-fourths came from US and UK.

There are two factors contributing to this. First, the international community is confident of the quality of Indian healthcare practitioners. It is said that one out of six doctors in the US is an Indian. Second, there are huge cost benefits.

Low-cost cardiac surgery in India costs $4,000-9,000 and in the US as high as $30,000-50,000. An orthopaedic surgery costs as low as $4,500 here with a corresponding surgery in US costing $18,000. Besides, the cost of comprehensive health check-up for a US patient in India is around $80, which in the US costs $600.

The reasons for indulging in health tours also vary from country to country. Medical tourists from the US are seeking treatment at 1/4th or even 1/8th of the cost at home. From Canada, it is often people who are frustrated by long waiting periods.

The typical UK patient is one who is not able to wait for treatment by the National Health Service and in some cases cannot afford to see a physician in private practice. And then there are patients coming from countries like Bangladesh, Kenya and Vietnam where it is difficult to get quality treatment.

Says Wockhardt Hospitals CEO Vishal Bali, "What started as a low-cost, low-value medical care destination is today turning into a superspeciality zone. There is a "Treated in India"brand going around."International patients are coming to India for cardiac surgery, spine correction, hip replacement and other such high value treatments. "The market is growing by 30% a year,"says Bali.

"Another reason why people fly into India for treatment is our holistic approach,"says Apollo Hospitals CEO V P Kamath. "We weave in things like yoga, aromatherapy and ayurveda into our treatment. It's a unique basket."

The majority of the clinical population here speak English and Indian surgeons have world class skills and surgical exposure too. Another aspect that is helping Indian medical tourism is the fact that there are 50 million uninsured US citizens. "High insurance premiums have kept a lot of people away from taking health insurance policies in the US,"says Kamath.

The health insurance sector in India, however, does not even cover 10% of the population. "But it will eventually grow. Already the Indian health insurance market is worth Rs 5,000 crore," says Bali. The growth in health cover would be crucial for the betterment of the domestic MT market.
Source: The Times of India

Health tourism: Kerala govt to cash in

In a bid to promote health tourism in the state, the Kerala government is all set to formulate a policy soon. The aim of the policy is to attract around 100,000 health tourists to the state over the next five years.

Last year nearly 15,000 people had come to the state for various medical treatments.
Nadeem Wajli, a tourist from Canada, feels like a king at the Kerala Institute of Medical Sciences in Thiruvananthapuram. This 27-year-old had met with an accident back home but even after treatment there couldn't fully recover.

It was only a chance meeting with a friend that brought him to this Ayurvedic Centre in Kerala and that seems to have worked. And he's not paying through the nose. "The amount I have to spend here is a lot cheaper and I am getting better service. It feels as though I am in a five-star hotel with doctors visiting me and for a fraction of what it would cost me back home," he said. With such compliments no wonder the medical institute firmly prescribes what is known as medical tourism.

As it means satisfied customers and more revenue that could be ploughed back to lower treatment costs for the general public in the state. "There is a common belief among people that if medical tourism comes up in a big way, the cost of medical treatment will go up. This is totally without any basis. As with it employment opportunities will be generated plus hospitals will be able to augment their income which means that health costs for public will go down and not up," said M I Sahadulla, Chairman, KIMS.

The state government it seems is all for the idea. In the face of stiff competition from countries like Thailand, Malaysia, Vietnam and Singapore, the tourism department is expected to hold road shows in Europe, US and the Gulf. An essential component of this programme is the accreditation of hospitals and maintaining international standards
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"Kerala tourism's role is one of a facilitator and as a marketing agency, in terms of liaising with hospitals and CII, which is spearheading this. Already Kerala Tourism has a brand equity abroad," said Dr V Venu, Tourism Secretary.

Premier hospitals in the state are hoping to cash in on the health traveller to Kerala. The tourist would be given the best possible treatment at cost-effective rates plus he takes back with him beautiful memories of God's own country.
Source:NDTV

Investments in Travel

First-time flyers trouble India

India's rapid economic growth has made air travel an option for many more people, as a host of new airlines have taken to the skies in recent years. But the burgeoning demand for flying has brought its own problems. A report by one airline revealed that passengers trying to have a chat with a pilot forced an emergency landing.

Frustrated passengers
India is one of the world's fastest-growing aviation markets, but the surge in demand has led to chaotic scenes on flights, with some people struggling to overcome their nerves and adapt to flying etiquette.

According to a report seen by the BBC, a series of recent incidents have highlighted the "growing menace of unruly passengers in India".
On one occasion, a passenger tried to open a door shortly before take-off while a flight circling around Delhi was forced to make an emergency landing after a group of passengers approached the cockpit to complain.

The BBC's Damian Grammaticas said one airport manager quoted in the report said troublemakers were often first-time fliers, but bureaucrats, politicians and other professionals had also proved unruly.

The report recommends that people should be taught the do's and don'ts of air travel and that airlines should be able to breathalyse passengers before boarding if they seem drunk.
Ajay Jasra, from budget carrier Spicejet, told the BBC that there were many reasons why passengers became disturbed.

"Inadequate airport infrastructure, lack of food and nicotine, long delays due to congestion, fog or whatever can frustrate people," he said.
Source: BBC

World betting on travel-bug bitten Indians

The Indian traveller is a hot commodity for tourist boards across the globe. Around 7.2 million Indians travelled overseas in 2006. Also, the country boasts of 28 million passport holders. No wonder, tourist boards are aggressively marketing their destination to India and have stepped up their investments.

But the latest figures, pertaining to average spend of tourists, shared by tourist boards, have a different, not so rosy, tale to tell. According to the Switzerland Tourism, the average spend (per day) of an Indian tourist has gone down from 400 Swiss franc in 2005 to 250 Swiss franc in 2006.

On the other hand, in Sri Lanka, the average length of stay has decreased from seven days in 2005 to five days in 2006, bringing down the average spend per visit. In the UK, popular destination among travellers, an Indian tourist spends not only less than his counterparts in other South Asian countries but almost half of what a Pakistani tourist spends. While the average spend (per visit) of a Pakistani tourist is £1,697, it’s only £829 for an Indian tourist.

“The yield per tourist has dipped. This could be because of the fact that now mass tourism is happening. Also, the shopping craze has mellowed down,” says Ritu Sharma, manager, India, Switzerland Tourism. With so many brands now available in the Indian market and malls mushrooming in not only metros but tier two and tier three cities as well, shopping craze among travellers is bound to go down.

According to statistics shared by the Sri Lanka Tourist Board, the per day spend of an Indian tourist has gone up from $70 in 2005 to $75 in 2006. However, since the average length of stay has gone down, the overall average spend per visit has also fallen.

“Visitors are now using Sri Lanka as a weekend destination or as a transit hub which has reduced the average length of stay and spend per visit consequently,” says Maadhuri Verma, destination manager, Sri Lanka Tourist Board. The board will be investing Rs 1 crore this year in Indian market to promote its destination. “Our marketing strategy will be focused on activities that will increase average length of stay and spend consequently,” added Ms Verma.

The International Passenger Survey conducted by Visit Britain (UK’s tourist board), reveals that the average spend per visit of an Indian tourist in UK is only £829 which is even less than a Pakistani tourist who spends £1,697 per visit. A Chinese tourist spends around £1,204 per visit; tourist from Singapore £1,028 and a Thai tourist spends £852.
Source: Economic Times

Indian kitchen sets roadmap for global tourism

Global tourism trade is becoming sensitive to the needs of Indians travelling globally. The lack of vegetarian or Indian food seems to be deterring or holding back Indians from travelling to some of the most popular tourist destinations.

A large percentage of Indians are vegetarians, and even for non-vegetarians, the food that is usually plentiful and cheap in many parts of the world may not be very palatable for an Indian. Outbound tour operators in India realise this and even take Indian cooks with large groups.

Earlier, tourism boards of various countries did not consider the lack of Indian food as a major deterrent because Indians were not large spenders. Nor were Indians a major proportion of tourists travelling to their countries. Today the number of Indians travelling out of India is rising every year. And, Indian travellers are among the top ten spenders as a nationality in countries like Singapore and Malaysia.

Tourism boards have realised that the non-availability of vegetarian food, or Indian cuisine can be a real showstopper. Cox and Kings director contracting Karen Anand says: “Tourism boards are sensitive to the Indian travellers preference for vegetarian food.

They highlight this aspect when they make presentations to us. On our part we check out the restaurants ourselves to be doubly sure that the food served in restaurants suits the Indian tastes. It is not only vegetarians who have their preferences but also non-vegetarians.”

For instance, Singapore Tourism Board (STB) lists some 20 Indian restaurants based on their prices from the low cost (below S$10) to mid (S$11-20/head) to high (S$21 to over per head). Singapore Tourism Board area director, western India Rebecca Lim says: “Indian travellers need not worry about food in Singapore. We have listed these restaurants after recommendations from various people and a new restaurants are coming up every year.”

The Hong Kong Tourism board (HKTB) lists five Indian restaurants in the city, all of which are in the Quality Tourism Services Scheme (QTSS). The QTSS badge confirms that the restaurant abides by the standards of service, menu, hygiene and so on set by HKTB.

Two of the five Indian restaurants in Hong Kong are in the VIP scheme of the QTSS, under which such accredited restaurants offer a 10% discount on bills. The HKTB site also lists four restaurants offering vegetarian Chinese cuisine.|
Source: Economic Times