Club Vistara Members' Interests will be Kept in Mind: Air India CEO

Vistara's CEO, Campbell Wilson, has said that the interests of Vistara's frequent fliers and their miles will be considered as the airline merges with Air India.

He added that customers, including Club Vistara members, will feel this merger only by late 2024 or 2025.

“We will be working very hard to raise Air India's game so that when the actual brand merger happens, people don’t notice the difference,” Wilson said at the Skift India Summit in Gurugram, adding there was no choice but to let go of the Vistara brand because “the Air India brand is 92 years old. It is recognized around the world. It has a very strong, if recently tarnished, heritage. But Air India's is the nation's brand.”

Air India, a state-run airline for 69 years, was reacquired by the Tata Group in January 2022 under a government-led strategic disinvestment program. Later that year, the Tata Group announced a merger of Air India and Vistara.

Vistara, currently a 51:49 joint venture of Tata Sons and Singapore Airlines, commenced operations in 2015. After the merger, Singapore Airlines will hold a 25.1% stake in the combined entity.

Air India, which carries about 12% of international air traffic to and from India, also sees an opportunity in the medium-haul and long-haul international market. The airline said the order for 470 aircraft that it placed in February 2023 will help it address this capacity shortage in India’s large market. The Air India group has been procuring aircraft from the new order at a rate of one every six days, with three A350s and more than 15 Boeing 737 MAX inducted so far, and will add one plane a month for the next 12 months.

Air India will start offering Self-Service Check-in and Self-Baggage Drop facilities for its passengers traveling to San Francisco from the Kempegowda International Airport, Bengaluru, this week.

The facility is already available for Air India's domestic flights from the airport, and plans are underway to extend this service to Singapore and Male, the two other international destinations Air India operates to from Bengaluru, the airline said in a statement.

It added that the automated initiative would offer a smooth airport experience to many of our tech-savvy guests traveling from Bengaluru, the Silicon Valley of India, to the US Silicon Valley—the world's tech hub.  

Inaugurating the facility, Donald Hunter, Head of Global Airport Operations and Ground Handling at Air India, said, “We are focussed on elevating customer experience at every touchpoint. This facility eliminates waiting time for check-in at the counters and offers our passengers a smooth pre-boarding experience. We have plans to extend this facility for our flights at more Indian and global airports.”

Senior officials from BIAL, CISF, and Air India were present on the occasion.

The automated self-check-in and baggage drop facilities will offer Air India passengers a seamless experience, from printing boarding passes or baggage tags to dropping their baggage at designated slots on their own, obviating the need to check in over the counters. This will save precious time and ensure a seamless check-in experience for our passengers, and offer them more freedom to enjoy their travel experience. Passengers can now customize their trips by selecting their preferred seats, if available, updating frequent flyer details, and enjoying other facilities from the kiosk itself.

Earlier, Air India had introduced an integrated self-baggage drop and self-kiosk check-in service at Terminal 3, Delhi airport, for domestic and only Australia-bound international flights.

“We’re on a journey to a better BA for our people and for our customers, underpinned by a transformation program that will see us invest £7bn over the next two years to revolutionize our business,” Sean Doyle, British Airways Chairman, and CEO, said. “We’re going to take delivery of new aircraft, introduce new cabins, elevate our customer care, focus on operational performance, and address our environmental impact by reducing our emissions and creating a culture of sustainability.?We’re also heavily investing in developing a new ba.com website and app and are laser-focused on transforming our business and fixing any pain points for our customers.”?

British Airways has confirmed plans to overhaul its digital user experience with a new website and mobile app offering deeper personalization as part of its investment program. The new ba.com browser is already in BETA testing with platforms designed to provide a range of new services, including empowering customers to self-serve if they wish, taking control of and making changes to their journeys online, rather than having to call one of the airline’s customer care centers to alter their plans. The airline said initial changes will start to roll out by the end of the year.

With more customers looking to remain connected with the world from their seats, from April 3, British Airways Executive Club Members will start to be able to send messages free of charge on a single device using the airline’s WiFi - whatever cabin they’re traveling in. The service will be available on every WiFi-enabled aircraft within two weeks of the rollout date*.

The airline has also become the first to offer a WiFi-enabled inflight customer care solution to current issues—even at 35,000ft. Created especially for British Airways by Microsoft, customer care teams on the ground can now connect with cabin crew colleagues across more than 300 flights a day. The functionality allows the crew to help solve any unexpected issues before a flight lands at one of the airline’s more than 200 destinations.

The airline is investing £100m in machine learning, automation, and AI across its operation, driving improvements from bookings to baggage handling and helping to revolutionize its operation, speed up departures, and respond to disruption. Innovative new tools are helping to predict delays (prompting pre-emptive action to reduce disruption) and analyze real-time weather, aircraft capacity, and customer connections data to help teams make better decisions. The airline has seen improvement in its on-time departures since introducing the systems, alongside several new processes and ways of working.  

British Airways is also creating around 350 new roles at Heathrow to improve the customer experience at its home and hub airport. It invests in new equipment, such as baggage tugs and towing vehicles.

The airline is also investing £750m in its IT infrastructure to move 700 systems and thousands of servers to the cloud by early next year.  

The airline is proud to announce that it is set to open another brand-new lounge, this time in Dubai, which is relocating to a new larger space at Dubai Airport later this year. This lounge will be the first to feature British Airways’ new lounge design concept, followed by the opening of its Miami lounge in 2025. The new Dubai lounge will replace the existing lounge facility at the airport, offering customers more space and more features. The airline has also announced lounge refreshes in Lagos and Seattle, and these follow recent lounge refurbishments at Heathrow Terminals 5 and 3, as well as Edinburgh.  

New short-haul seats and cabin interiors will feature on the next generation of British Airways’ Airbus A320neo and A321neos, with eight aircraft set to arrive in May this year. The airline is working with the best British suppliers from England, Scotland, and Northern Ireland, with the new short-haul Euro Traveller and Club Europe seats reflecting a modern yet classic British interior. The re-designed cabins will also be fitted with extra-large bins for overhead luggage.

British Airways is introducing a brand-new and exclusive first suite as the only European carrier to offer first-class service between the UK and the US. The airline expects the new seat to debut at the end of 2025 into early 2026 as part of its A380 aircraft refurbishment.  

British Airways flights from London to Bangkok and Kuala Lumpur are set to return. The services will re-start in October and November, respectively, further demonstrating British Airways’ commitment to expanding its network to Asia post-pandemic.  

The airline will operate daily flights between the Malaysian capital and London Heathrow on a 787-9 aircraft and three flights a week between the Thai capital and London Gatwick on a 777-200ER.

British Airways is also returning to Abu Dhabi on April 20, as well as welcoming Agadir in Morocco on March 31 and adding Izmir in Turkey to its network on May 18.

In the ever-evolving landscape of the aerospace industry, the competitive rivalry between major players like Airbus and Boeing often takes center stage. However, amidst the cutthroat competition, a recent statement from Airbus CEO Guillaume Faury sheds light on a more somber aspect of the industry – the collective impact of technical challenges faced by one of its foremost contenders, Boeing. With safety and quality at the forefront, Faury's remarks underscore a broader concern for the reputation and integrity of the aerospace sector as a whole.

Airbus CEO Expresses Concern

Speaking at the "Europe 2024" conference in Berlin, Guillaume Faury conveyed a sentiment of unease regarding the ongoing technical issues plaguing Boeing. Far from reveling in the setbacks of a competitor, Faury emphasized the detrimental effects such challenges pose to the entire aerospace industry. Highlighting the paramount importance of quality and safety in aviation, Faury's remarks underscore the shared responsibility of all industry stakeholders in upholding these standards.

Boeing's Recent Troubles

Boeing's recent troubles have garnered significant attention within the aviation community. In January, an incident involving a door plug blowout on a 737 MAX 9 jet during an Alaska Airlines flight raised concerns about the safety and reliability of Boeing's flagship aircraft. More recently, a mid-air dive experienced by a LATAM Airlines 787 Dreamliner prompted Boeing to issue directives for airlines to inspect flight deck switches. These incidents, coupled with ongoing challenges related to the 737 MAX recertification process, have put Boeing under scrutiny and underscored the importance of stringent safety protocols.

Airbus Positioned Favorably

French Finance Minister Bruno Le Maire echoed Faury's sentiments, asserting that Airbus currently finds itself in a more favorable position compared to its American counterpart. Le Maire's remarks reflect a broader acknowledgment of Airbus' resilience in navigating challenges within the aerospace industry. As Airbus continues to innovate and deliver cutting-edge aircraft, its relative stability contrasts with the turbulence faced by Boeing, further emphasizing the significance of robust safety measures and operational integrity.

Industry Implications

The repercussions of Boeing's technical woes extend beyond the confines of individual incidents, impacting the broader aerospace ecosystem. Concerns over safety and reliability can erode consumer trust, leading to potential repercussions for both Boeing and the wider industry. Moreover, heightened scrutiny from regulatory bodies and stakeholders underscores the need for transparent communication and proactive measures to address technical issues promptly.

Conclusion

Guillaume Faury's candid remarks at the "Europe 2024" conference serve as a reminder of the interconnectedness of the aerospace industry and the shared responsibility of industry leaders in upholding safety and quality standards. As Airbus maintains its focus on innovation and operational excellence, the challenges faced by Boeing underscore the need for vigilance and collaboration within the aviation community. Amidst the turbulence, the commitment to safety remains paramount, ensuring the continued resilience and integrity of the aerospace sector.

With Inputs from Reuters

In a recent interview with Reuters, Martin Gauss, the CEO of Latvia's airBaltic, hinted at the possibility of the airline joining a larger group once it achieves substantial scale. This move could potentially reshape the European airline industry landscape, with airBaltic seeking to capitalize on its growth trajectory and emerging from the pandemic with robust financials.

Building Scale for Future Integration

Gauss outlined airBaltic's ambitious plans to expand its fleet, aiming to reach 100 aircraft by the years 2030 to 2032. With the recent order of 30 Airbus A220-300 aircraft and 20 purchase rights, airBaltic is set on a trajectory of growth. Currently operating 50 aircraft, the airline is steadily building its scale, which Gauss suggests could make it an attractive prospect for integration into a larger airline group.

The Path to an IPO

Despite the potential for future integration, Gauss emphasized that airBaltic's immediate focus lies on launching its initial public offering (IPO). The airline is aiming for an IPO either by the end of this year or in 2025, with the objective of addressing equity issues and further strengthening its financial position. Last year, airBaltic recorded its highest-ever profit of 34 million euros, signaling a successful recovery from the pandemic-induced downturn in the aviation industry.

Navigating Debt and Financial Challenges

While airBaltic celebrates its financial success, it is also grappling with debt repayment obligations. With approximately 200 million euros due within six months, the airline is keen on reducing its debt burden to ensure sustainable growth. The IPO is expected to play a crucial role in addressing these financial challenges and providing airBaltic with the necessary capital for future endeavors.

European Aviation Landscape: Consolidation and Fragmentation

The European airline industry has witnessed a gradual consolidation over the past two decades, yet fragmentation remains a prevalent issue. Small national carriers often struggle to compete with larger rivals, prompting discussions of mergers, acquisitions, and alliances. Recent developments, such as Lufthansa's bid for ITA Airways and Air France-KLM's interest in Scandinavia's SAS, underscore the ongoing efforts towards consolidation within the industry.

The Swiss Airlines Model: A Case for Integration

Gauss cited Swiss Airlines as a compelling example of the benefits of integration within a larger airline group. Since joining the Lufthansa Group, Swiss Airlines has thrived, becoming a cash cow with premium service offerings. This success story serves as inspiration for airBaltic, as Gauss envisions a future where the airline achieves similar prosperity by aligning itself with a larger group.

Conclusion

As airBaltic charts its course for future growth and expansion, the prospect of integration into a larger airline group looms on the horizon. With its eyes set on achieving scale and solidifying its financial position through an IPO, airBaltic is poised to play a significant role in shaping the future of the European aviation industry. Whether it follows in the footsteps of Swiss Airlines or carves out its unique path, airBaltic's journey towards integration poses intriguing possibilities for the aviation sector.

With Inputs from Reuters

The Federal Aviation Administration (FAA) has taken a firm stance against Boeing, demanding significant improvements in safety culture and quality standards before allowing the planemaker to increase production of its 737 MAX aircraft. This decision follows a series of safety incidents, including a mid-air emergency on an Alaska Airlines jet in January, prompting the FAA to halt plans for production expansion. FAA Administrator Mike Whitaker emphasized the necessity for Boeing to demonstrate a commitment to safety and quality before any production rate hikes are approved.

FAA's Stance on Boeing's Production

FAA Administrator Mike Whitaker revealed in an interview with Reuters that discussions with Boeing regarding production increase have not commenced. Whitaker emphasized that any production boost would only be sanctioned when Boeing implements a robust safety system effectively. He underscored the FAA's capability and intent to hold Boeing accountable for safety standards, indicating that the agency possesses the necessary tools to enforce compliance.

Currently, Boeing is permitted to produce 38 737 planes per month, yet the actual production rate remains undisclosed. Whitaker's remarks suggest that Boeing's production is currently below the approved limit, indicating ongoing challenges within the manufacturing process.

Boeing's Response and FAA Oversight

Boeing's CFO, Brian West, acknowledged that the first-half output of 737 planes would be below the approved rate, with the second half's production contingent upon FAA directives. This underscores the FAA's pivotal role in determining Boeing's production trajectory, emphasizing the agency's commitment to safety oversight.

Whitaker outlined a timeline for potential production increases, contingent upon Boeing's successful implementation of safety culture reforms and quality enhancements. He stressed the long-term nature of this endeavor, indicating that cultural change within Boeing would require sustained efforts and continuous improvement.

Criminal Probe and Quality Control Measures

The Justice Department's initiation of a criminal investigation into the mid-air incident further underscores the gravity of the situation for Boeing. Whitaker emphasized the need for Boeing to develop a comprehensive plan addressing systemic quality-control issues within 90 days, setting clear milestones for improvement. He cautioned against viewing this as a short-term fix, emphasizing the necessity for enduring cultural transformation within Boeing.

FAA's Engagement with Airlines

In light of recent safety incidents involving United Airlines, FAA Administrator Whitaker engaged with United's CEO, Scott Kirby, over the weekend. This dialogue signifies heightened vigilance and collaboration between regulatory authorities and airlines to address safety concerns effectively. Kirby reassured customers of United's commitment to safety, pledging to review recent incidents and update safety protocols accordingly.

Conclusion

The FAA's stringent stance on Boeing's production increase underscores the paramount importance of safety in aviation. With Boeing under pressure to reform its safety culture and quality standards, regulatory oversight remains vigilant. The collaboration between regulatory authorities and airlines reflects a collective commitment to ensuring the highest standards of safety within the aviation industry. As Boeing navigates these challenges, the focus remains steadfast on fostering a culture of safety and quality excellence.

With Inputs from Reuters