Etihad Airways has been given the authority from the Indian Government to launch 4 new cities to its network under a revised bilateral arrangement. The amended treaty permits EY to start operations to Calcutta, Jaipur, Calicut and Chennai. However, their CEO Mr James Hogan has stated that he would like his airline to be also given the right to fly to Amritsar, Ahmedabad, Bangalore and Hyderabad as soon as possible.
In addition, EY will be increasing frequencies to SYD-Sydney, Australia by adding 4 additional nonstop flights to the route from Oct 27th 08. This means that a total of 11 weekly flights will be flown by EY on this route. These 4 additional flights will be flown using an A 340-600. The new flights timings are as follows:
Days : MON/WED/FRI/SAT
EY 454 Dep AUH 2350 Arr SYD 2055+1
EY 455 Dep SYD 2255 Arr AUH 0645+1
Analysis:
Its really surprising to see that the Indian Govt gave permission to EY to launch CCJ-Calicut which for decades has always been fiercely protected for Air India as a majority of the Keralite labor force working in the Middle East hails from CCJ. Hence, for the last 2 decades Air India has always successfully managed to lobby the Indian Govt to keep this monopoly and not allow Gulf carriers to tap this market segment.
Another interesting move has been to allow EY access to JAI-Jaipur where the bulk of the North Indian labor force in the Middle East hails from. From JAI, EY will face competition from WY-Oman Air only who fly nonstop from their MCT base using a B 737-800. JAI will also be a popular destination with European and USA tour operators who promote "The Golden Triangle (Delhi-Agra-Jaipur)" tour package to their clients.
However, EY should not make the same mistake that it has done currently with its TRV & COK flights i.e. by sending A 320s to JAI & CCJ. EY should deploy 2 class configured A 332s to JAI & CCJ to make money as the demand is there on a year round basis especially by it not facing competition from any European or prominent Middle East carrier on these routes. It must exploit this position to the maximum as the cargo demand too year round to both these cities is very high. The A 332 can carry 10-12 tons of cargo easily in its belly on these medium haul flights which means a lucurative source of additional revenue for EY.
With regards to CCU & MAA, the same thing applies. EK, SV and the European carriers use luxurious wide bodied aircraft to fly to both these key Indian port cities. For EY to be competitive especially against EK who send their B 777s and A 332s to both MAA & CCU, it must also respond accordingly by using a 2 class A 332 for both cities.
Lastly, as for it increasing SYD flights (which is a good competitive move) to 11 times a week, the main question is can the A 346 fly this route with a full payload in both directions nonstop? One doubts it as EY's A 346s carry heavy F & J class seats and in total accomodate 286 pax. This route with the A 346 operating it shall be very interesting to follow.
In addition, EY will be increasing frequencies to SYD-Sydney, Australia by adding 4 additional nonstop flights to the route from Oct 27th 08. This means that a total of 11 weekly flights will be flown by EY on this route. These 4 additional flights will be flown using an A 340-600. The new flights timings are as follows:
Days : MON/WED/FRI/SAT
EY 454 Dep AUH 2350 Arr SYD 2055+1
EY 455 Dep SYD 2255 Arr AUH 0645+1
Analysis:
Its really surprising to see that the Indian Govt gave permission to EY to launch CCJ-Calicut which for decades has always been fiercely protected for Air India as a majority of the Keralite labor force working in the Middle East hails from CCJ. Hence, for the last 2 decades Air India has always successfully managed to lobby the Indian Govt to keep this monopoly and not allow Gulf carriers to tap this market segment.
Another interesting move has been to allow EY access to JAI-Jaipur where the bulk of the North Indian labor force in the Middle East hails from. From JAI, EY will face competition from WY-Oman Air only who fly nonstop from their MCT base using a B 737-800. JAI will also be a popular destination with European and USA tour operators who promote "The Golden Triangle (Delhi-Agra-Jaipur)" tour package to their clients.
However, EY should not make the same mistake that it has done currently with its TRV & COK flights i.e. by sending A 320s to JAI & CCJ. EY should deploy 2 class configured A 332s to JAI & CCJ to make money as the demand is there on a year round basis especially by it not facing competition from any European or prominent Middle East carrier on these routes. It must exploit this position to the maximum as the cargo demand too year round to both these cities is very high. The A 332 can carry 10-12 tons of cargo easily in its belly on these medium haul flights which means a lucurative source of additional revenue for EY.
With regards to CCU & MAA, the same thing applies. EK, SV and the European carriers use luxurious wide bodied aircraft to fly to both these key Indian port cities. For EY to be competitive especially against EK who send their B 777s and A 332s to both MAA & CCU, it must also respond accordingly by using a 2 class A 332 for both cities.
Lastly, as for it increasing SYD flights (which is a good competitive move) to 11 times a week, the main question is can the A 346 fly this route with a full payload in both directions nonstop? One doubts it as EY's A 346s carry heavy F & J class seats and in total accomodate 286 pax. This route with the A 346 operating it shall be very interesting to follow.
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