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<ul><li>Indigo has been hit by labour troubles on the ground too as this month, aircraft maintenance technicians went on a mass sick leave for two days in Delhi and Hyderabad.</li><li>All the airlines will face shortage of crew, leading them to poaching.</li><li>Experts also fear that this increase in demand for experienced pilots will push them to hire foreign pilots.</li></ul>India’s largest airline Indigo has been well-known for its on-time performance. Yet, earlier last month over half of its flights were delayed. Reason? A large chunk of its <keyword id="55080" type="General" weightage="20" keywordseo="cabin-crew" source="Orion">cabin crew</keyword> staff took a sick leave. As per s<a href="https://zeenews.india.com/aviation/indigo-staffing-trouble-continues-now-technicians-go-on-mass-sick-leave-for-this-reason-2483851.html">ources</a>, they all went to attend a mass recruitment drive by Tata Air India, a competitor. The airline has been hit by labour troubles on the ground too as this month, aircraft maintenance technicians went on a mass sick leave for two days in Delhi and Hyderabad to protest low wages and salaries. There will be more such incidents in the coming months, experts say, as a new airline Akasa Airlines is all set to launch operations. Jet Airways too is making a comeback and even Tata Air India is getting ready for a revamp. All of them will face shortage of crew, leading them to poaching. There are around 17,000 registered pilots in India out of which over 2,500 are women. The industry needs much more. “India needs 10,000 more flight attendants, 6,000 more qualified pilots. Compared to past slowdown of 2010, 2012 or 2009 in the industry, this time it is going to be very hard for the airlines to sustain. To sustain growth one has to add aircrafts, fleets, need more pilots, flight attendants, engineers,” Mark Martin, founder and CEO of Martin Consulting told Business Insider in an interview. Experts also fear that this increase in demand for experienced pilots will push them to hire foreign pilots. Flying schools had closed during the Covid-19 pandemic for two years and there are a lot of pending licenses to be approved as well. It’s not just the pilots but there will be a shortage of experienced engineers, ground staff and other cabin crew that new airlines would love to have in their fold. It means an aviation talent war is afoot and it will be another ground for old and new airlines alike to battle on — in addition to fliers and flying slots. <cmsannotation type="cmsannotation" annotationid="Salary cuts and bruises" comment="subhead" text="Salary cuts and bruises">Salary cuts and bruises</cmsannotation> While many international airlines went bankrupt and shut shop during the pandemic close downs, top Indian airlines have managed to stay afloat. For which, they had to resort to salary cuts and more such moves. Indigo and SpiceJet both deferred and slashed salaries but also restored them within a year, as airlines started flying in 2021. But very few salaries <a href="https://www.outlookindia.com/business/talent-war-amongst-airlines-aviation-sector-indigo-air-india-akasa-air-air-india-how-indian-airlines-are-gearing-up-to-prepare-for-talent-war-news-207844">are back to pr</a>e-pandemic levels in spite of the fact that Indians have been thronging airports in the recent months. This could be another reason why most of them could be swayed by better salaries and offers from the market. Praveen Paul, a Bengaluru based aviation consultant disagrees. He believes that employees would stick to bigger airlines which are better paymasters and will look for stability in addition to hikes. Indigo, he says, is one of the few airlines that pays its employees on-time, unlike most others. “I don’t see talent running to new airlines in a hurry. Indigo, Tata’s Air India will not lose any talent while SpiceJet, Go Air may lose as employees feel whatever happens they get their salaries on time at Air India and Indigo,” Paul told Business Insider India. Aviation sector jobs, while technical and necessary, have gone through many rounds of stress and strain in the last few years. After the debacle of Kingfisher employees who were never paid when it closed down in 2016, Jet Airways and its bankruptcy was also hard on the sector and its employees. However, now that there’s a turnaround, they would be in a better position to negotiate — that could be bad news for airlines who are already flying on wafer thin margins thanks to a massive increase in aviation turbine fuel prices. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/spicejet-says-its-md-ajay-singh-is-the-victim-to-a-bogus-complaint/articleshow/92818041.cms">SpiceJet says it’s MD Ajay Singh is the victim to a bogus complaint</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/butter-chicken-keema-pav-anda-burji-but-without-anda-or-chicken-and-mutton-how-startups-and-fmcg-players-are-shaping-indias-plant-based-meat-category/articleshow/92810504.cms">Butter chickenless, UnMutton keema — vegan meats hope to become the next ‘paneer’ but health concerns remain</a>

After techies, its aviation crew salaries that will be ‘up in the air’

<ul class="summary-list"><li>Pilots at <keyword id="11910935" type="UNKNOWN" weightage="60" keywordseo="american-airlines" source="Orion">American Airlines</keyword>' regional carriers Envoy and Piedmont are getting a big pay raise.</li><li>Pilots at both <keyword id="11898285" type="UNKNOWN" weightage="60" keywordseo="airlines" source="Orion">airlines</keyword> are set to make an average of 57% more than at Delta's regional airline.</li></ul>Pilots at two regional carriers under <keyword id="11969245" type="UNKNOWN" weightage="60" keywordseo="american" source="Orion">American</keyword> Airlines are getting a huge pay raise.On Friday, the American wholly owned regional carriers <keyword id="11984590" type="UNKNOWN" weightage="60" keywordseo="piedmont-airlines" source="Orion">Piedmont Airlines</keyword> and <keyword id="11984588" type="UNKNOWN" weightage="60" keywordseo="envoy-air" source="Orion">Envoy Air</keyword> reached a deal with the Air Line Pilots Association to increase pilot pay through August 31, 2024, <a href="https://piedmont-airlines.com/2022/06/piedmont-airlines-alpa-ratify-contract-with-industry-defining-pay-benefits/">both carriers announced on Saturday</a>.Under the new contract, first-year captains will earn $146 an hour, and entry-level first officers will make $90 an hour at both airlines. The previous pilot pay rates were $78 and $51 an hour at Piedmont, respectively. Envoy captains' former pay rate was $86 an hour. The raise is "industry-leading," <a href="https://www.envoyair.com/2022/06/11/industry-transforming-pay-for-envoy-pilots/">according to Envoy</a>, nearly double what is offered at competitor carriers like Republic Airways and GoJet. The highest first-year regional first-officer pay rate up until the <keyword id="11893589" type="UNKNOWN" weightage="60" keywordseo="news" source="Orion">news</keyword> was $52.98 an hour, <a href="https://thepointsguy.com/news/envoy-air-piedmont-airlines-pilot-pay-increase/">The Points Guy</a> reported.Piedmont said the new pay scale averaged 57% higher than that of Delta Air Lines' wholly owned carrier, Endeavor Air, which is now the US's third-highest-paying regional airline."Including all bonuses, a new hire pilot should expect to make 31% more than pilots at Endeavor and 10% more than pilots at leading Ultra Low-Cost Carriers (ULCCs) over the first five years," Piedmont said in a press release.The pilots with the biggest pay increase are line-check airmen, who will get $427.50 an hour under the new contract. These pilots help train other crew members but have been leaving for mainline airlines faster than other groups, Piedmont CEO Eric Morgan told The Points Guy."It is a strategic move to make sure that we can keep our training and qualification process moving and not have to put a limit on how many new pilots you can train and qualify because you don't have enough line check airmen to get in the seat with them and fly the line and qualify them," he said.The news comes as regional carriers <a href="https://www.businessinsider.com/us-airlines-cutting-training-requirements-to-get-more-pilots-shortage-2022-5">struggle to hire and retain pilots</a> amid a <keyword id="11898881" type="UNKNOWN" weightage="60" keywordseo="pilot-shortage" source="Orion">pilot shortage</keyword> because mainline carriers are scooping them up and paying them more. Mesa Airlines CEO Jonathan Ornstein <a href="https://www.cnbc.com/2022/05/15/us-pilot-shortage-forces-airlines-to-cut-flights-scramble-for-solutions.html">told CNBC</a> in May that his company could "use about 200 pilots" and that it took 120 days to replace a pilot who left for a bigger carrier.Carriers have battled the shortage with aggressive hiring campaigns, <a href="https://www.google.com/search?q=piedmont+retention+insider&amp;oq=piedmont+retention+insider&amp;aqs=chrome..69i57j69i60l3.3147j0j7&amp;sourceid=chrome&amp;ie=UTF-8">retention bonuses</a>, and, in extreme cases, grounding aircraft. <a href="https://www.businessinsider.com/united-airlines-ceo-100-aircraft-planes-left-sitting-pilot-shortage-2021-12">United Airlines grounded 100 regional jets</a> in December, and American grounded 100 of its own in June <a href="https://www.businessinsider.com/post/preview?post_id=629a812026c49017d00d8c55&amp;mode=mobile">because the carrier didn't have enough pilots to fly them</a>.One carrier has pushed for reduced training requirements to get more pilots flying sooner. In April, Republic <a href="https://www.regulations.gov/document/FAA-2022-0535-0001">asked the Federal Aviation Administration</a> for permission to hire pilots from its training academy with 750 hours instead of the 1,500 hours needed for most first officers."Republic is not proposing overturning the 1500-hour rule or weakening safety; to the contrary, we are proposing a more intensive, mission-specific training pathway similar to what is permitted for military pilots under current law," Republic CEO Bryan Bedford said in a statement to Insider.There are already exemptions in place for pilots who have earned a two- or four-year degree that allow them to fly at the regional level with 1,250 or 1,000 hours, respectively.

Some pilots flying for American Airlines' subsidiary regional airlines will soon make nearly twice their current salary in a groundbreaking pay scheme

<ul class="summary-list"><li><keyword id="11151302" type="UNKNOWN" weightage="60" keywordseo="breeze-airways">Breeze Airways</keyword> plans to save money by hiring college students as cabin crew. </li><li>The US' largest flight attendants union said the plan may result in safety issues as the students are inexperienced.</li><li>However, lower than expected recruitment numbers have forced the airline to open up regular positions.</li></ul>David Neeleman's new startup, Breeze Airways, has<a href="https://www.businessinsider.com/breeze-airways-pushing-back-launch-until-2021-what-we-know-2020-7"> ambitious plans to keep costs low when it launches flights</a> this year - but one of its more unique initiatives is putting is receiving the ire of big labor. Some flight attendants staffing the airline's <keyword id="6367788" type="UNKNOWN" weightage="60" keywordseo="planes">planes</keyword> will be Utah Valley University college students hired through paid work-study programs. The strategy is unique for any modern US airline and is part of Breeze's strategy to offer extremely low fares on leisure routes. But students won't be attending class in the morning and jetting off in the afternoon. Rather, only online students will be eligible for the program, as being a Breeze flight attendant requires a nomadic lifestyle it says is best suited to college students. "Breeze is looking for 'Seriously Nice' current and future UVU Full Time, On-Line students, to work at the newest and nicest airline as a Flight Attendant!" the airline's <a href="https://boards.greenhouse.io/breezeairways/jobs/4453325003">job posting</a> reads. The responsibilities might be more than college students would expect from a run-of-the-mill work-study program. Flight attendants are tasked, in part, with ensuring the safety and well-being of every passenger onboard and guiding them in the event of an emergency. These training programs for all airlines are regulated and approved by the Federal <keyword id="31907" type="COMPANY" weightage="60" keywordseo="Aviation">Aviation</keyword> Administration."We expect you to welcome and accommodate Guests, mitigate high-stress situations, collaborate and problem solve with other Team Members, use good judgement, and just be...nice, all while taking on line classes and earning your degree at Utah Valley University!" the posting continues. Breeze intended for all of its flight attendants to be degree-seeking students. But lower than expected recruitment numbers have required the airline to open up regular positions with no requirements of being a student, airline spokesperson Gareth Edmondson-Jones confirmed to Insider."We were getting some good results but we needed to attract more people," Edmondson-Jones said. "This way, they have both options they can do a regular flight attendant role or they can do it earning a degree on the side."A regular position offers 70 guaranteed flight hours per month if candidates agree to a four-year contract, the full-time <a href="https://boards.greenhouse.io/breezeairways/jobs/4511921003">posting</a> reads. Other than academic requirements, job postings for the two programs are nearly identical, including a minimum age requirement of 18 years. Notably, many other airlines also do not require college degrees to apply. Read More: <a href="https://www.businessinsider.com/breeze-new-airline-david-neeleman-interview-details-2020-2">JetBlue founder David Neeleman reveals how his new airline can succeed by flying weird routes for low prices</a>America's largest flight attendant union has pushed back against Breeze's plan, citing potential safety issues from using "less experienced and mature" flight crews, Sara Nelson, president of Association of Flight Attendants-CWA union and one of the country's most vocal labor advocates, told <a href="https://www.bloomberg.com/news/articles/2021-05-07/new-airline-s-plan-for-college-kids-on-flights-gets-pushback">Bloomberg</a>.Nelson pointed to the cabin crew - with more than 100 years of experience combined - that helped save lives when US Airways flight 1549 made a forced landing in the Hudson River in 2009. While the minimum age of the college-enrolled flight attendants is 18, older applicants can apply through the college program if they enroll as a student. Breeze maintains that any hired flight attendant, student or not, and will be trained to the required standards regardless of age."If you're a fully trained flight attendant, you're a fully trained flight attendant," spokesperson Edmondson-Jones said. "It's not like if you're 18 years old, you can't be a flight attendant."Another aspect of the program is also under fire from the flight attendants union. Once the students complete their studies at Utah Valley University, their employment at the airline comes to an end, and they'll either have to reapply or find jobs elsewhere."The whole point of a work-study program is to get experience in a career field," AFA President Nelson told <a href="https://www.bloomberg.com/news/articles/2021-05-07/new-airline-s-plan-for-college-kids-on-flights-gets-pushback">Bloomberg</a>. "This program turns that on its head. As soon as you get the experience, you're no longer qualified." Tuition assistance for the students-turned-flight-attendants totals $6,000 per year. Additional perks include corporate housing, airport <keyword id="34991" type="ORGANIZATION" weightage="100" keywordseo="transportation">transportation</keyword>, a monthly salary, and one paid round-trip ticket home per year. The monthly salary is reported to be $1,200 for around half a month's work. Breeze plans to take flight in May after completing Federal Aviation Administration-mandated proving runs across the East Coast and Southeast. Flights will operate between secondary US cities with a focus on low-cost leisure flights on underserved air routes.

A new airline is defending its plan to use college students as cabin crew after blowback from the US' largest flight attendant union

<ul class="summary-list"><li><keyword id="11971364" type="UNKNOWN" weightage="60" keywordseo="spirit-airlines" source="Orion">Spirit Airlines</keyword> <keyword id="13843959" type="UNKNOWN" weightage="60" keywordseo="crew" source="Orion">crew</keyword> slept on airport floors amid operations meltdowns, a <keyword id="11897816" type="UNKNOWN" weightage="60" keywordseo="union" source="Orion">union</keyword> official told The Guardian.</li><li>He said some crew were stranded for up to 30 hours without communication from managers.</li></ul><keyword id="12087778" type="UNKNOWN" weightage="60" keywordseo="spirit" source="Orion">Spirit</keyword> <keyword id="11898285" type="UNKNOWN" weightage="60" keywordseo="airlines" source="Orion">Airlines</keyword> crew have slept on airport floors amid operational meltdowns that left them stranded for up to 30 hours, a union official has said."We had flight attendants who were getting kicked out of airports in the middle of the night," Don Reno Intreglia, a Spirit crewmember and the airline's vice president for the Association of Flight Attendants – Communications Workers of America (AFA-CWA) union, <a href="https://www.theguardian.com/business/2022/may/03/airline-workers-stranded-staff-shortages-us">told The Guardian</a>.Spirit crew were stranded away from home with no hotel beds to sleep in, and left for up to 30 hours without communication from their managers, Intreglia told the newspaper. "It's been horrible on the morale for the flight attendants, because you're sleeping on an airport floor, you've got pretty much nowhere to go," he said.Intreglia added: "We want the traveling public to know that we're trying to pressure management into making serious changes, so that we are prepared for the summer travel."Gary Peterson, vice president of the air division at <keyword id="11894932" type="UNKNOWN" weightage="60" keywordseo="transport" source="Orion">Transport</keyword> Workers United, told The Guardian: "Sleeping in the hallway at the airport – that never used to happen in the industry, and now it's becoming the new norm."Labor shortages continue to pose problems for the aviation industry. Airlines have <a href="https://www.businessinsider.com/airlines-respond-to-pilot-shortage-higher-pay-lower-requirements-2022-1">hiked salaries and bonuses</a> in an attempt to lure and retain workers.The AFA-CWA union told The Guardian that Spirit had suffered four operational meltdowns since August 2021, a number that was much higher than usual.Spirit flight attendants held protests at airports in Orlando, Dallas, and Las Vegas in mid-April over staff shortages and flight cancellations, which left staff "stranded in airports overnight and oftentimes left without hotel accommodations," according to the <a href="https://www.afacwa.org/spirit_afa_pickets_across_the_country_after_repeated_mass_cancellations_strand_flight_attendants">AFA-CWA</a>.Spirit didn't immediately respond to Insider's request for comment.

Spirit Airlines crew slept on airport floors as operational meltdowns left them stranded for up to 30 hours, union official says

<ul class="summary-list"><li><a href="https://www.businessinsider.com/category/emirates">Emirates</a> will offer four months of unpaid leave to pilots and flight attendants, part of an apparent effort to delay or avoid further layoffs.</li><li>The Dubai-based airline has seen demand for international travel collapse during the <a href="https://www.businessinsider.com/category/coronavirus">coronavirus pandemic</a>.</li><li>In an interview with Business Insider, <keyword id="42740" type="COMPANY" weightage="60" keywordseo="Emirates">Emirates</keyword> president Tim Clark described the logistical challenges of downsizing a workforce like Emirates, which mostly consists of ex-pats.</li></ul>Emirates plans to offer up to four months of unpaid leave to pilots and flight attendants as the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> pandemic continues to decimate the demand for international air travel.The leave offers, first <a href="https://www.reuters.com/article/us-health-coronavirus-emirates-airline-idUSKCN24O1D4">reported by Reuters</a>, come after the airline cut thousands of jobs and reduced salaries in June and July. According to Reuters, the eligible employees would take four months off between August and November, and would still receive benefits, including lodging.Emirates has been among the airlines hit the hardest by the coronavirus pandemic. Although airlines around the world have seen modest demand increases for domestic and, in some cases, regional travel, most long-haul travel remains constrained by various travel restrictions and anxieties.Emirates, based in <keyword id="6354539" type="UNKNOWN" weightage="60" keywordseo="Dubai">Dubai</keyword>, flies exclusively international flights. The state-owned airline's runs a global long-haul hub-and-spoke system, toting passengers between far-flung international destinations, connecting through its Dubai hub.Although the airline has been able to <a href="https://www.businessinsider.com/emirates-president-tim-clark-interview-coronavirus-cargo-crisis-2020-7">keep some revenue flowing thanks to strong demand for air cargo</a>, it has largely <a href="https://www.businessinsider.com/emirates-president-tim-clark-interview-airbus-a380-experience-2020-7">grounded its biggest passenger jet — the Airbus A380</a> — and reduced its routes and frequencies.In an interview with Business Insider earlier this month, Emirates' president, Tim Clark, said that the airline was trying to balance staffing needs with the collapse of revenue from passenger traffic."We've kept our staff on as best we can," Clark said. "Management reviews it every week. We look at our financial situation, we look at what we can afford and who, and how many we can afford to retain for the time being."One complication, Clark said, is that Emirates relies on a workforce comprised mostly of foreign nationals. Emirates cabin crews represent 15 nationalities on average, and most foreign employees rely on the airline for the visas that let them live in Dubai. Losing a job usually means losing that visa, and returning to a native country where the aviation job market may be small, or nonexistent. If they can return at all: Clark said the airline is assisting laid off workers who were unable to fly home due to pandemic-related travel restrictions and flight cancellations, including offering financial assistance."We are very, very alive to the fact that this is hugely difficult for the workforce because predominantly they're expatriate and they're not in their country of domicile, which means they have to be repatriated to where they come from, and a situation which is pretty stark in terms of future employment." Meanwhile, Clark said, his airline is working up mechanisms to expedite the rehiring process for laid off workers, whenever travel rebounds enough to make that practicable. "If things pick up again sooner rather than later," he said, "we will bring them back so quickly their feet won't touch the ground."

Emirates is trying to limit layoffs by offering workers unpaid leave, and it reveals a weakness in the company's unusual business model

(Eds: Adding details) Mumbai, Mar 31 () Budget carrier SpiceJet has decided to cut up to 30 per cent salary of its employees in March with Chairman Ajay Singh opting for highest 30 per cent trimming in compensation, the airline said in an e-mail communication to the staff on Tuesday.Moreover, the employees will also be treated as "on leave without pay" for the March 25-31 phase due to the suspension of air passenger services during the period, said the airline, which offered its aircraft and crew to the government for any "humanitarian mission" last week.Significantly, the pay-cut announcement coincides with the termination of service contracts of over a dozen expat pilots with the airline, as per a source."These are extremely tough time and call for appropriate and exceptional measures to sale through the exceptional challenge. As tough as it seems, most Indian carriers have already announced a pay cut for their employees."Unfortunately SpiceJet is not too immune to the situation which has unquestionably affected the airlines in the most severe form across the globe. Therefore in our bid to stay lean, and under absolutely unavoidable circumstances, we have been forced to take certain bold decisions, which will help the SpiceJet family surmount these difficult times," Human Resource department of the airline told employees in the e-mail.SpiceJet management has decided to implement a pay cut between 10-30 per cent in March across our employee base. Our Chairman and Managing Director (Ajay Singh), in fact, has opted for the highest cut of 30 per cent in compensation, SpiceJet said.It, however, spared employees in the lowest pay grades from any pay cut.In an official statement later, the airline said it has implemented a 10-30 per cent pay cut for all its employees across top and mid-rung levels."The COVID-19 pandemic and the subsequent lockdown have forced us to take some tough measures to ensure that no one at SpiceJet is retrenched. What we are facing is a global phenomenon and no airline in the world is immune to the impact," Singh said in the statement.India's aviation industry, reeling under the impact of the global outbreak of COVID-19, is seeking help from the government to mitigate the financial impact of the pandemic, SpiceJet said.Coronavirus driven lockdown has adversely impacted the industry, leading to significant economic headwinds. Several airline companies, both in India and abroad, have been forced to undertake severe measures in their attempt to survive amidst tough market conditions, it said in the statement."There are a over a dozen expat captains on the Bombardier Q400 (regional jets) fleet who have been served the termination notice," an airline source privy to development told ."SpiceJet has not sacked any pilot. We have served a 'one-month notice' to 13 expat Q400 captains, as per their official contract. They have also been paid a month's salary as per their contract."We have accepted the resignation of 18 Boeing captains," a spokesperson of SpiceJet said in response to a query. Other budget carriers IndiGo and GoAir have already announced similar moves earlier.SpiceJet , in the e-mail, also said, "unfortunately due to the lockdown, we are forced to announce 'leave without pay for employees during March 25-31, the lockdown period during which all air passenger services remained shut".India is under a three-week lockdown starting March 25 to curb the the virus spread.Wadia Group-owned IndiGo was the first domestic carrier to announce a 25 per cent across-the-board pay cut on March 19, and it was followed by government-owned Air India, which affected a 10 per cent cut in employees allowance to deal with the precarious finances amid coronavirus pandemic.IndiGo's smaller rival GoAir also announced salary cut for all its employees in March. IAS KIS BALBAL

SpiceJet to cut up to 30 pc salary of employees in March

<ul class="summary-list"><li>Akasa Air, an ultra-low-cost Indian carrier, <a href="https://www.reuters.com/world/india/indias-akasa-air-orders-72-boeing-737-max-jets-2021-11-16/">placed</a> a $9 billion order for 72 Boeing 737 MAX Jets last week.</li><li>The airline could potentially lift up the entire Indian aviation segment, industry analysts say.</li></ul>Judith Philip is stressed. The 32-year-old auditor's work schedule is packed and her only retreat is travel, but the pandemic hit her sole recreation badly. To make up for lost time, Philip is pinning her hopes on an upcoming solo trip to Sri Lanka."I think I might do a lot of revenge travel once these restrictions are lifted and things get a bit better," Philip told Insider from the southern Indian city of Bangalore.She is among millions of travelers waiting in the wings to cruise Indian skies as the country's aviation sector braces for a shake-up. At the heart of this shake-up stands to be a freshly minted airline, Akasa Air. Ever since its public debut in July, Akasa has become the most talked-about airline in the country. And on November 16, it <a href="https://www.reuters.com/world/india/indias-akasa-air-orders-72-boeing-737-max-jets-2021-11-16/">placed</a> a $9 billion order for 72 Boeing 737 MAX jets. The airline could potentially lift up the entire Indian aviation segment, which has been grappling for several years, industry analysts say.Unlike <keyword id="11898285" type="UNKNOWN" weightage="60" keywordseo="airlines" source="Orion">airlines</keyword> that ground their fleets in capital Delhi or financial hub Mumbai, Akasa's fleet stands to be mostly based in the Indian tech capital of Bangalore. While Akasa's exact routes have not yet been announced, they are expected to reach less-travelled destinations at less expensive fares.Backed by billionaire investor Rakesh Jhunjhunwala – nicknamed <a href="https://www.forbes.com/profile/rakesh-jhunjhunwala/">India's Warren Buffett</a> and Big Bull for his smart investments — the carrier aims to be the resurrector of a turbulent domestic market in Asia's third-largest economy.But Jhunjhunwala and Akasa are entering the aviation industry at a historically difficult time: The pandemic is far from over, and the market is crowded, plagued by collapsing carriers, and difficult to turn a profit in.Jhunjhunwala did not respond to multiple requests from Insider for comment for this story.<h2>Room for growth</h2>Until the turn of the decade ending 2010, air travel was luxury only affordable for the affluent in <keyword id="11892747" type="UNKNOWN" weightage="60" keywordseo="india" source="Orion">India</keyword>.A country of about 1.4 billion people, India has about<a href="http://www.knowindia.net/aviation7.html"> 650 passenger jets</a>. Domestic airlines carried 144 million flyers in 2019, according to the regulatory body <a href="https://www.dgca.gov.in/digigov-portal/?page=jsp/dgca/InventoryList/dataReports/aviationDataStatistics/handbookCivilAviation/HANDBOOK2018-19.pdf&amp;main4252/4205/sericename">Directorate General of Civil Aviation.</a> By comparison, the US (population 333 million) has over <a href="https://www.faa.gov/air_traffic/by_the_numbers/">5,000 civilian aircraft</a>, while China (population 1.44 billion) operates <a href="http://www.xinhuanet.com/english/2019-07/18/c_138237617.htm">close to 3,700</a> passenger jets.Today, trains remain the preferred mode for the long-distance journeys of the masses in India. In the 12 months <a href="http://indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/Annual-Reports-2019-2020/Year-Book-2019-20-English_Final_Web.pdf">ending March 2020,</a> Indian trains ferried over eight billion travelers.But as India's middle class grows and competing airlines keep the price of domestic airfare low, air travel is slowly becoming a viable mode of transport for more people. Delhi aims to unveil <a href="https://twitter.com/MoCA_GoI/status/1357015867448455169">over 200 new airports</a> across the vast country in the next four years and is rapidly expanding the existing airports. Prime Minister Narendra Modi's administration expects civil aviation to play a crucial role in its ambitious goal of making <a href="https://www.narendramodi.in/pm-modi-s-aspirational-call-for-5-trillion-dollar-economy-in-5-years-547486">India a $5 trillion economy </a>by 2024."We can expect huge growth in the next five to 10 years," Sanjay Kumar, chief strategy and revenue officer of IndiGo, told Insider of the Indian aviation market. IndiGo is India's market leader in domestic traffic <a href="https://www.ibef.org/industry/indian-aviation/showcase/indigo">with 55% share.</a>"The growing middle-class population will start traveling as the Americans or Chinese do. We've so far not seen this [in India] at all," Kumar added.<h2>A volatile market</h2>Until the second half of 2018, India was home to the fastest-growing aviation market in the world, with passenger numbers ballooning.Growth nosedived in 2019 due to factors including crew shortage, taxes on jet fuel, and unsustainable business models.At the heart of India's spiraling airline crisis was <a href="https://www.businessinsider.com/jet-airways-shuts-down-after-running-out-of-money-2019-4">the collapse of Jet Airways</a>, the country's oldest and first successful private airline. Mounting debts, poor acquisitions, and cheaper prices offered by rivals killed the 26-year-old Jet Airways.The Indian aviation market is so volatile that about <a href="https://en.wikipedia.org/wiki/List_of_defunct_airlines_of_India">50 players have shut shop</a> in the past three decades and changed billionaires into millionaires.And this was all before the pandemic decimated the industry.But a troubled industry also means abundant talent in the market for hire, low asset costs, and weakened competitors, factors that could play a role in Jhunjhunwala's favor.<h2>A market dominated by low-cost carriers</h2>Unlike the aviation markets of the western world, where the segment is multi-layered and caters to a wide range of travelers, carriers in India need to keep a close watch on ticket costs. About 80% of <a href="https://www.dgca.gov.in/digigov-portal/?page=jsp/dgca/InventoryList/dataReports/aviationDataStatistics/handbookCivilAviation/HANDBOOK2018-19.pdf&amp;main4252/4205/sericename">the market share</a> in India is cornered by low-cost carrier models (LCC), which make a profit through volume by selling seats at cheap rates.Six large airlines dominate the domestic skies in India: IndiGo, SpiceJet, GoAir (which rebranded as GoFirst), AirAsia India, Vistara, and Air India. While Vistara and Air India are classified as no-frills carriers, the rest operate as LCC.Unlike all other existing market players, Akasa is an ultra low-cost carrier (ULCC), which means every little space inside the plane – from paper cups or luggage bins — is for sale for advertising. Further, Akasa can cut back on all expendable costs and fly more hours a day while keeping the seat fares separate from all other related services like food. It's basically like the Spirit Airlines of India.Akasa is expected to launch operations by early or mid 2022, if the speculation in the industry is proved right. Akasa has been busy hiring industry veterans including Vinay Dube, the former CEO of Jet Airways, and Aditya Ghosh, the former CEO of Indigo. <a href="https://centreforaviation.com/data/profiles/airlines/akasa">Regulatory approvals </a>are on track.Yet, the fate of Akasa depends on more than a billionaire backer and experienced leadership. Other variables at play in the airline's success include how it manages its fleet composition, distribution models, and the choice of flying destinations.<a href="http://www.knowindia.net/aviation7.html">Airbus dominates</a> the Indian skies: The A320 family makes up 70% of all passenger aircraft in the country.The advent of Akasa means an opportunity for American planemaker Boeing to make a breakthrough in a crucial market.Akasa hopes to operate a fleet of 70 aircraft in four years, ​​Jhunjhunwala told <a href="https://www.bloomberg.com/news/articles/2021-07-28/indian-billionaire-investor-plans-70-planes-for-new-airline">Bloomberg</a> in a television interview in July. Boeing's market outlook, meanwhile, predicts there will be demand for 2,200 commercial jets in the next two decades."In India, domestic traffic is leading the recovery. We're seeing double-digit monthly improvements in operations as vaccine rates improve and travel restrictions begin to loosen," Salil Gupte, president of Boeing India, told Insider.Gupte estimates passenger traffic numbers in India will reach pre-pandemic levels by 2023 or 2024."We are honored that Akasa Air, an innovative airline focused on customer experience and environmental sustainability, has placed its trust in the 737 family to drive affordable passenger service in one of the world's fastest-growing aviation regions," said Stan Deal, Boeing commercial airplanes president and CEO, following the deal.<h2>Challenges Ahead</h2>Industry experts say Jhunjhunwala's Akasa appears set to take Indian civil aviation to new heights, but they add caveats.For instance, fixed costs like lease, parking, maintenance, and staff salaries make up 40% of an airline's cost structure, according to IndiGo's Kumar. To be successful, Akasa must get the combination of these correct, industry experts said."Akasa's bet is on the fragility of one or more carriers and as a well-capitalized new entrant, it may very well be able to gain a strong foothold," said Satyendra Pandey, managing partner at India-based aviation services firm AT-TV.Rival carriers are bound to match Akasa's fares from day one of its operations, Pandey said – which means it'll be entering a profitless growth environment. A careful assessment of the market should incorporate both business and behavioral trends, Pandey said."Force-fitting western frameworks just does not work. Getting this wrong has meant that even extremely well-funded airlines have consistently failed to turn a profit and witnessed continuous margin deterioration. Levers that worked pre-pandemic may not quite work the same," Pandey added."If the ULCC model is implemented, Akasa Air may expand the overall market by stimulation due to low airfares," said Manvi Hooda, chief of consulting and research at the aviation consulting firm, CAPA India."India remains an under-penetrated air travel market. Given India is a value-sensitive market, low airfares can significantly stimulate the market," said Hooda.

A new, ultra-low-cost Indian airline just placed a $9 billion order with Boeing, and analysts say it could lift up the country's entire aviation segment

<ul><li><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">EtihadEtihad Airbus A380</div></div></div>Etihad Aviation Group holds equity stakes in seven airlines around the world.</li><li>Two of them, Air Berlin and Alitalia, are now bankrupt.</li><li>The CEO behind the strategy has left Etihad.</li><li>However, some investments have paid off.</li></ul>Etihad's grand plan for global domination looks to be in deep trouble.In July, the Abu Dhabi, United Arab Emirates-based aviation giant announced a staggering $1.87 billion loss for 2016. This, after posting a $103 million profit the previous year.Etihad blames $808 million of losses on financial exposure to partner airlines such as Air Berlin and Alitalia.Now, things have gone from bad to worse.On Tuesday, <a href="http://www.businessinsider.com/air-berlin-administration-insolvent-2017-8" target="_blank" rel="noopener noreferrer">Air Berlin entered into administration</a>, declaring itself insolvent and initiating a major restructuring. Air Berlin's financial implosion happened just three months after Alitalia's bankruptcy in May.Together, Etihad's total financial exposure to the two troubled European carriers edges north of $4.5 billion."Etihad had a very ambitious and creative, but very risky strategy which was to invest in airlines in different countries to gain a proxy presence as an airline group, and two of its riskiest investments was Air Berlin and Alitalia," Henry Harteveldt, a travel analyst for Atmosphere Research Group, told Business Insider.In July, the chief architect of the plan, former Etihad CEO James Hogan, <a href="http://www.businessinsider.com/etihad-ceo-james-hogan-quit-company-2017-1" target="_blank" rel="noopener noreferrer">exited the company he helped build</a>. <div class="KonaFilter image-container display-table"><div><div class="image on-image">REUTERS/Fabian Bimmer</div></div></div><h2>Going global </h2>Over the past few years, Etihad embarked on an equity-acquisition spree that has seen the carrier take substantial ownership stakes in a series of "partner airlines." This includes 49% of Alitalia, 29.2% of Air Berlin, 49% of Air Serbia, 24% of Jet Airways, 21.8% of Virgin Australia, 40% of Air Seychelles, 49.8% of Niki, and 33% of Swiss-based Etihad Regional. However, Etihad sold its stake in Etihad Regional in July. Last September, these partner airlines along with Etihad Airways and its accompanying subsidiaries were reconfigured to form Etihad Aviation Group. In theory, Hogan's partnership concept makes a tremendous amount of sense. Investing in or taking over struggling airlines in advantageous markets for pennies on the dollar while simultaneously growing Etihad's global reach is strategically sound. This approach also allows Etihad to enter potentially hostile markets free of political opposition and without the need to launch an operation from scratch. In practice, the partnership strategy is much more complex. Some have worked out well for Etihad. For instance, Air Serbia has relaunched and become a solid feeder into the Etihad network. The investment in Jet Airways has helped Etihad unlock the potentially lucrative Indian market. While Virgin Australia has become a viable competitor for Qantas. <div class="KonaFilter image-container display-table"><div><div class="image on-image">APAir Serbia Airbus A330.</div></div></div>At the same time, Germany's Air Berlin and Italy's national carrier, Alitalia, have not fared so well. Both airlines were acquired to help Etihad increase its reach into the prized European and transatlantic markets, and to a certain extent, they have done exactly that. Operationally, however, Air Berlin and Alitalia have continued to bleed money. On the face of it, the $2.35 billion Alitalia investment seemed like a solid deal. For the cost of a few Airbus A380 superjumbos, the company acquired a major airline with a fleet of 100 planes, <a href="http://www.businessinsider.com/etihad-airways-ceo-james-hogan-interview-2015-12" target="_blank" rel="noopener noreferrer">Hogan told Business Insider in 2015.</a>The same goes for the Air Berlin deal. "Air Berlin, on paper, looked like it would be very beneficial for Etihad," Harteveldt said. "It gave Etihad access to a major European market that's arguably the strongest in terms of economic strength and demand for air travel."So what happened? "These two investments have turned out to be sort of Etihad biting off more than it can chew," Airways senior business analyst Vinay Bhaskara told Business Insider.<h2>What went wrong</h2>According to Bhaskara, there are two types of reclamation projects that tend to succeed in the airline industry. The first is an airline that is underperforming simply because it is "making boneheaded strategic errors" to the point at which the airline is essentially its own worst enemy. These are easier to fix because they tend to be in good markets with good fundamentals. Thus, a management change should do the trick, Bhaskara said. Jet Airways falls into this category. <div class="KonaFilter image-container display-table"><div><div class="image on-image">AP</div></div></div> The second is an underperforming airline that is government owned or struggling with an incredible amount of internal dysfunction. These turnarounds can be successful if an outside force such as Etihad is "handed the keys to the kingdom" to tear down and rebuild the airline after making wholesale changes. This is exactly what Etihad was able to do at Air Serbia, Bhaskara added. Technically, Air Berlin and Alitalia should have gone into this second category. But Etihad was never given the chance to implement the same type of full rebuild as Air Serbia. With Alitalia, Etihad brought in new management, revamped its product, and improved its service. Many of the old problems that plagued the "Old Alitalia," however, still plague the "New Alitalia" today. Bhaskara said one of the major issues the airline ran into was the powerful labor unions that prevented Etihad from making drastic changes that could have made the airline profitable.In April, <a href="http://www.reuters.com/article/us-alitalia-restructuring-idUSKBN17Q26W" target="_blank" rel="noopener noreferrer">Alitalia entered into administration after workers rejected a management</a> restructuring plan that would have cut salaries and jobs at the airline. According to the <a href="https://www.ft.com/content/43179318-d1aa-11e5-92a1-c5e23ef99c77" target="_blank" rel="noopener noreferrer">Financial Times</a>, the last time Alitalia generated an annual profit was in 2002 - one year before the founding of Etihad Airways.<div class="KonaFilter image-container display-table"><div><div class="image on-image">Andreas Wiese / airberlinAir Berlin Airbus A330.</div></div></div>The Air Berlin situation is slightly different than Alitalia, but equally dysfunctional. <h2>Air Berlin's downfall</h2>According to Harteveldt, Air Berlin faced a myriad of issues ranging from a delayed airport to a disjointed product strategy. First, the airport. Even though Berlin is one of the largest and most important cities in Europe, it doesn't actually have a world class airport. The state-of-the-art Berlin Brandenburg Airport was scheduled to open in 2010. However, persistent delays have now pushed that day to as late as 2020. As a result, Air Berlin hasn't been able to develop the mega hub it had hoped for in its home town. Instead, it has to settle for a smaller hub in Dusseldorf. However, that pales in comparison to the hubs Lufthansa has in larger markets like Frankfurt and Munich, Harteveldt told us.At the same time, Air Berlin has been facing stiff competition from low-cost carriers like RyanAir, EasyJet, WizzAir, and other carriers.And then there was the airlines own "basket case" business strategy."Air Berlin just didn't have a clear strategy," Harteveldt said. "It was a low cost, bare bones airline for its short haul European flights, but it tried to be a traditional full-service airline on its long-haul flights." "It didn't accomplish either objective very well," the analyst added. <div class="KonaFilter image-container display-table"><div><div class="image on-image">Airbus/Etihad</div></div></div>Even though the labor situation at Air Berlin was less contentious than Alitalia, it was still an issue that plagued the airline. "In Europe, airlines are high profile industries that are highly unionized and the unions work very hard to protect their workers' jobs," Harteveldt said. "Compared to the United States, for example, it very difficult for an airline in Europe to gain the labor efficiency that it needs whether that be wages or productivity or anything else."So where does that leave Air Berlin?<h2>What's next for Etihad's partners</h2>While Etihad is willing to explore commercial opportunities with the airline, it has made it clear that after $2.3 billion in investment its coffers are now off limits to Air Berlin."You can hear the sound of Etihad wiping its hands of Air Berlin all the way from Abu Dhabi to California," Harteveldt said. Although Harteveldt believes the Alitalia will likely fly on, the analyst thinks Air Berlin is effectively done as an airline. However, Bhaskara believes it's still too early to say whether Air Berlin's fate is sealed. <div class="KonaFilter image-container display-table"><div><div class="image on-image">Thomson ReutersAn Alitalia crew member walks past Alitalia employees who take part in a strike at Fiumicino international airport in Rome</div></div></div>Air Berlin CEO Thomas Winkelmann has spoken out publicly to ensure his customers that the airline's flights will operate as usual with the help of a bridging loan worth $176 million. At the end of the day, all is not lost for the Etihad partner airline strategy. "In some cases, it looks like Etihad bet on some winning horses," Harteveldt said. "Alitalia is still on the track and so we can't call that race yet." While it seems like the Etihad partnership strategy will probably live on to fight another day, Air Berlin and Alitalia have proven to be two very painful and expensive speed bumps along the way. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/etihad-41k-airline-ticket-the-residence-first-class-price-cost-tour-abu-dhabi-nyc-2017-2">This $41K plane ticket comes with a shower, bed, and butler service</a></h3> <div> </div> </div>

Etihad's grand plan to dominate global aviation may be in deep trouble

<ul><li><keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword> will make new changes like renovated ‘<keyword id="6388899" type="ORGANIZATION" weightage="20" keywordseo="maharaja">Maharaja</keyword>’ business class seats, new cuisines and uniforms for the crew which have a subtle western touch. </li><li>The objective of the new changes is to become more customer-focused and increase the carrier’s market share. </li><li>The <keyword id="44532" type="PERSON" weightage="20" keywordseo="Disinvestment">disinvestment</keyword> of the airline has been temporarily put on hold by the <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword>. </li></ul>Air India, which has recently been in news for running in losses, is all set to undergo a makeover of its international flights, with the renovated ‘Maharaja’ business class seats, new cuisines and uniforms for the crew which have a subtle western touch. These changes are to be unveiled this Friday, on the 22 June, by Civil <keyword id="31907" type="COMPANY" weightage="20" keywordseo="Aviation">Aviation</keyword> Minister, Suresh Prabhu and his deputy, Jayant Sinha. The first class and business class seats of the Boeing 777 and 787 aircraft fleet, which operate short and long haul international routes, are expected to be replaced with the Maharaja business class seats. They will be upgraded with better ambience, upholstery, in-style night kits, in addition to other new features. One of the officials told <a href="http://www.ptinews.com/news/9816737_Air-India-set-to-have--Maharaja--class-seats-on-international-flights.html">PTI </a>that the objective of this much needed change is to make the carrier more customer-focussed with enviable services. Another official mentioned that it is just a part of the larger attempt to attract more consumers for the international flights. Understandably, efforts are being made to increase the revenue and the market share of the firm. AI’s current market share is only 17% and it has recently been hit by major losses. The airline has been <a href="https://timesofindia.indiatimes.com/business/india-business/ensure-salary-delays-dont-happen-in-future-air-india-pilots/articleshow/64545982.cms">unable to pay</a> the salary of its crew on time, for months now. AI required the assistance of banks and financial institutions for short-term loans of ₹10 billion, besides soliciting the government for another ₹20 billion. The government was trying sell off 76% of AI’s stakes, however, the bid was closed simply because it had no buyers. One of the major reasons for the same was that the buyers were expected to buy liabilities and pay off loans for the firm once the purchase was done. However, Prabhu has announced that the government is not completely doing away with the idea of AI’s strategic disinvestment. However, the temporary halt put on AI’s disinvestment has given AI employees a reason to celebrate. Prabhu further acknowledged that Air India has a very important role to play in the country’s aviation sector and <a href="https://www.flightglobal.com/news/articles/new-delhi-puts-air-india-privatisation-on-ice-449617/">promised </a>that the government would continue to support AI through this financial crisis.

Air India all prepared to treat its passengers like ‘Maharajas’

India’s civil <keyword id="45911" type="UNKNOWN" weightage="100" keywordseo="Aviation-sector">aviation sector</keyword> has been going through turbulent times lately. During its boom period from 2004 to 2008, the sector was driven by high economic growth rates and rise in income of the salaried class which had come to enjoy huge disposable incomes. 
 
Then the global economic recession hit in the last quarter of the calendar year 2008. Travel numbers dropped significantly and pushed airlines to barely managing operating costs. Yet amidst the gloom and doom scenario where the most glamorous of them all, Kingfisher, has fallen, a new star is aiming to rise. 
 
A new market of small city middle class travellers Malaysian budget carrier <keyword id="6358246" type="COMPANY" weightage="100" keywordseo="AirAsia">AirAsia</keyword>, one of the most profitable low-cost airlines in the world, partnered with <keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> and launched AirAsia India, which has been touted to bring in ultra low cost air travel to everyone in India who currently still travel by bus and trains. So who is the target traveller of AirAsia India? The vast majority of the Indian middle class which mostly avoids costly air travel. They include people like IT and sales executives travelling short distances between two nearby cities, teachers, doctors, engineers and small retail owners. But how will or can AirAsia tap this potentially huge customer base with existing low margins and high costs in the Indian aviation sector? 
 
Big time cost cutting to go cheap 
AirAsia India’s model is based on squeezing out every bit of time, energy and space from every other possible asset. AirAsia India is targeting fastest turnaround time for Indian aviation at less than 25 minutes. Turnaround time is defined as the time duration counted from the moment the plane lands till the moment the plane takes off from a particular airport. But high congestion in Indian airports, big ones in general, and especially during holiday and festival season makes turnaround times of even less than 30 minutes impossible. So, this will be a challenge that AirAsia will have to face for bigger airports. 
 
Again, intertwined with faster around time is its concept of more flying time for its aircraft per day and higher frequencies. This will serve smaller airports during the day which will be served by more number of flights by AirAsia. However, this would mean flights at odd hours like 5:30 in the morning to 11:30 at night which will be difficult at smaller airports where night flying facility is not up to the mark or not available. And larger airports’ congestion might not allow for such schedules. 
 
Then, on the personnel front, it is also going for cabin crews helping in loading and unloading from the baggage compartment and same crews will assist in removing stubs from boarding passes and prepare load sheets. Thus in this way, AirAsia is targeting an aircraft-to-manpower ratio of less than 1:100. Indigo achieved a ratio of 1:98 many years ago but that was because of economies of scale achieved through owning many planes. 
 
It is also going for point to point service without any tie ups with other airlines and travel companies. AirAsia India has its own website from where it provides all information and booking facility to its customers and travellers. This saves on costs of networking with other airlines and travel companies but takes away the advantage from travellers of being able to compare total flight expenses from different flight options on travel companies’ websites. 
 
Also, it aims to utilise every inch of space in the aircraft by packing as many seats as possible. So basically, there’s not much scope in terms of leg room or stretching your seat back. That is also one of the reasons why the airline has chosen smaller duration routes. 
 
Will consumers have to pay eventually? 
Finally, the real squeeze will be eventually from the consumers themselves but in a tricky way. The key here is targeting that segment of travellers who have to travel light for short distances – single-day or two-day business trips mostly over short distances. That’s why it is not refunding anything to travellers on cancellation of tickets. This is something that ‘no-frills’ airlines have been using across the globe in different ways. 
 
But in an evolving market like India, it will depend on how different segments of travellers take to the concept of going for reservations only in case of absolute certainty in travel plans. Companies paying for their employees’ travel will mostly not go for this option as corporate travel plans often change at the eleventh hour. 
 
They also did away with free check-in luggage of up to 15 kg but the Directorate General of Civil Aviation (DGCA) butted in and asked the airline to take it back. That was some relief for consumers. 
 
Polarised opinion 
Other airlines and industry experts are divided on the future of AirAsia India. On one hand, industry experts and corporate honchos from other airlines feel that since the biggest cost element for Indian airlines remains aviation turbine fuel, making up 50% of operating costs along with airport leasing charges, the tweaking of other elements will not make that much of a difference in the long run. 
 
On the other hand, while the airline has targeted a break-even in less than six months, perhaps a promotional gimmick at best, it doesn’t matter that much because of the Tata tag. The biggest and most respected business group in India will easily make lenders wait for the airline to break-even and anytime expansion is needed, the profitable parent airline AirAsia in Malaysia and Tata Sons in India can put more capital into it. 
 
In essence, AirAsia will have to go for a lot of planning, market research, high operational efficiency and revenue forecasting for different possible routes so as to ascertain the most profitable ones.

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