09. January 2007


Date: 09. Jan. 2007
Jet Airways and Air Sahara, locked in a legal battle over Rs 500 crore lying in escrow account following the aborted takeover of the latter, on Tuesday agreed to defer their plea for interim relief to April 9 before the arbitration tribunal.
While Jet is claiming back Rs 500 crore given as advance to Air Sahara towards the Rs 3,020 crore take over bid, Air Sahara has claimed the balance of the bid amount from Jet asking it to honor the share purchase agreement.
Legal sources on the condition on anonymity told Hindustan Times that during the hearing before the arbitration tribunal on Tuesday both the parties agreed to postpone their respective applications seeking interim relief to April 9.
Jet officials were not available to comment and they are likely to issue a statement on Wednesday. When contacted by HT, Air Sahara president Alok Sharma said, "We don’t comment on matters that are subjudice."
The development has put both the airlines in a tight spot at least till April. While Air Sahara is already reeling under financial crunch and needs the fresh lease of life, Jet Airways already outlining major investment plans is desperately trying to release the blocked funds.
Jet Airways had last year filed an arbitration petition in the Bombay High Court seeking interim relief of Rs 500 crore along with interest saying that Air Sahara had not honoured the share purchase agreement reached between them on January 2006.
Air Sahara in its submission alleged that Jet Airways wanted to go back on the deal as it had not got approval from the regulatory authority while Jet Airways claimed that share purchase agreement clearly stated that such a take over bid would be subject to necessary approval.
Hearing the petition, the High Court had referred the dispute to an Arbitration Tribunal in keeping with the clause mentioned in the Share
Purchase Agreement.
Justice SP Bharucha and Justice BP Jeevan Reddy, both retired judges of the Supreme Court, are on the panel as nominees of Jet and Air Sahara respectively. British judge Lord Stein heads the tribunal.
Source: http://www.hindustantimes.com


Date: 09. Jan. 2007
A Malaysian airline is offering 1 million airline tickets for free in a publicity bid.
The low-fare airline - AirAsia - has kicked off its biggest marketing campaign in the region, under which it will distribute 1 million free tickets online.
The campaign also coincides with the "Visit Malaysia year 2007".
"This is the second major regional free seats campaign we are launching and the timing is perfect to coincide with Visit Malaysia Year 2007," said Kathleen Tan, a spokesperson of AirAsia.
However, flyers will still have to shell out money since the free tickets do not include airport taxes and fees, fuel surcharges, and is applicable for one way travel only.
The spokesperson said, "Our website is surfed by visitors from over 180 countries, making it the most highly searched and highly popular e-commerce booking engine."
The campaign starting January 10 will be available for online booking mainly in Malaysia (Kuala Lumpur, Kota Kinabalu, Kuching and Johor), Thailand (Bangkok) and Indonesia (Jakarta), Tan said. The spokesperson said a similar campaign in 2005 had got a very good response and enabled many to experience flying for the first time. "We are confident that this regional online marketing campaign will stimulate even more people to fly," Kathleen added.
Tan also said that with rapid expansion and ongoing brand new Airbus A320 fleet roll-out, the airline expects its capacity to grow by 70 per cent with more flights and more destinations in South East Asian and Southern China regions.
Source: http://www.financialexpress.com


Date: 09. Jan. 2007
Liquor giant Vijay Mallya owned Kingfisher Airlines has finally revealed that they are no longer interested in bidding for the fellow competitor Air Sahara for a larger slice of the Indian aviation market. They had been trying to get the deal completed but have finally pulled out of the race for a major stake in Air Sahara after receiving cold response from the owners of the airline company.
The other company interested in such a deal is Jet Airways, which now might have an upper hand in the hunt for a 100% stake in Air Sahara. Air Sahara connects to 24 domestic and four international destinations with 134 daily direct flights. More importantly, they offer around 13,900 air travel seats on a daily basis. Mallya said in a statement that they no longer want to get a stake in Air Sahara as they themselves are doing well on their own.
Mallya added: “We are now planning to introduce first-class services from March-end or April. At this moment, Kingfisher is not interested in Air Sahara.” The problem for Kingfisher Airlines was that they considered the price suggested by consultant Ernst & Young overvalued. Ernst & Young had put the value of Air Sahara at $750 million. Kingfisher Airlines had offered $400 million. Jet Airways on the other hand are already the biggest bidders with an offer of $550 million.
However, a spokesperson for Jet Airways has also said that they are also not interested in Air Sahara. A senior Jet Airways executive said in a statement: “Our chairman Naresh Goyal had earlier clarified that Jet was not interested in Air Sahara. We are busy with our fleet and route expansion, and are not aware of any such developments on Air Sahara acquisition.”
It has all become a bit messier considered now even low-cost carrier SpiceJet claims that they might be interested for a stake in the company. A SpiceJet representative said in a statement: “In the wake of severe shortage of pilots, human resources will be the main attraction in taking over Air Sahara for Jet. At one shot, the acquirer will get cabin crew and other supporting human resources with existing routes.
Source: http://news.techwhack.com


Date: 09. Jan. 2007
Kingfisher Airlines, India’s fastest growing private carrier and the first airline in India to offer a premium first class service on domestic routes, today announced the launch of direct flights from Bangalore to Tiruchirapally.
With flights in each direction, these new routes will provide convenient service for business and leisure travelers alike. With the launch of this new route, Kingfisher Airlines will be operating more than 146 flights across 25 cities.
Commenting on the launch of this new route, Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines Limited said, “Kingfisher Airlines has redefined the experience of flying and has come to be regarded as an airline that sets new benchmarks in service excellence for the industry. Through the launch of this new route Kingfisher Airlines reaffirms its commitment towards addressing the needs of its guests by providing connectivity between metros and mini-metros in India. The pace of growth coupled with our constant endeavour to raise the bar has endeared Kingfisher Airlines to its guests and this is sure to catapult Kingfisher Airlines into the position of a market leader by the year 2010”.
About Kingfisher Airlines
Kingfisher Airlines is India's first and only private airline to receive the prestigious, 'Best New Airline of the Year' award in the Asia-Pacific and Middle East region from Centre for Asia Pacific Aviation (CAPA). Kingfisher Airlines has also been voted as the 3rd Most Successful Brand Launch of the Year 2005, in the annual Brand Derby Survey conducted by India's leading business daily-Business Standard. In another Survey conducted by agencyfaqs.com and Brand Reporter, Kingfisher was voted as the 7th Buzziest Brand of 2005 amongst 2000 leading national and international brands. More recently, Kingfisher Airlines has bagged the "Service Excellence for a New Airline" award from Skytrax, a UK based specialist global air transport advisor.
Another addition to the list of laurels is the "Best New Domestic Airline for Excellent Services and Cuisine" award from Pacific Area Travel Writers Association (PATWA), the biggest travel writers' organization, across the globe, that conducts independent annual surveys across various industries related with Travel and Tourism in order to select the best in each category. In a survey conducted by IMB for Times of India, 46% of the participants voted Kingfisher Airlines 'The Best Airline" and "India's Favourite Carrier". Lastly Kingfisher Airlines won the “Brand Leadership Award” in the service and hospitality segment against several acclaimed hotels, leading banks and other airlines. Kingfisher Airlines commenced operations on May 9, 2005 with a brand new fleet of aircraft. Kingfisher Airlines offers Full Service at True Value and promises an unparalleled experience to the Indian air traveler. On offer are extra-wide seats and spacious leg room, delicious gourmet meals, international-class cabin crew and a whole host of comforts and delights. Kingfisher Airlines also facilitates doorstep delivery of tickets on guest request. Kingfisher Airlines has further raised the bar by introducing the Indian business traveler to a premium product- Kingfisher First, the finest experience in the Indian skies. For more information on Kingfisher Airlines log on to www.flykingfisher.com . Fly the Good Times with Kingfisher Airlines.
Source: http://www.businesswireindia.com