Saturday, October 18, 2008

The Indian aviation sector looks set to shrink amid financial turmoil, with the nation’s air carriers in schemes to try and ride out the problems and domestic air traffic at a five year low.

Air traffic has fallen by 19% in September, the fourth month in a row of negative growth. The news comes as a joint result of the current financial crisis and high jet fuel prices, with Indian airlines in debt to the tune of Rs1,800 crore after surpassing their credit limits with oil companies, who are themselves making losses due to government controls on the price of jet fuel.

Kingfisher Red – originally known as Air Deccan, India’s first budget carrier, until Kingfisher Airlines bought the company out – suffered the biggest drop in passenger numbers at 20% of their load factor. Flag carrier Air India is running at 53% of capacity after a 10% fall, and the average for airlines is now 55% as opposed to 65% this time last year.

Kingfisher Airlines has decided to enter an alliance with Jet Airlines that will see them collectively control half the Indian aviation market. Both airlines are in debt over fuel payments with Jet owing Rs850 crore while Kingfisher refused to disclose the amount they needed to pay. The money is owed mainly to the Indian Oil Corporation, with the rest owed to the Hindustan Petroleum Corporation and the Bharat Petroleum Corporation. 45% of costs for Indian carriers is fuel, which is 70% more expensive than abroad due to multiple taxes.

Air India’s head Raghu Menon expressed concern about what the Kingfisher-Jet alliance meant for his own airline. “We were competing with both these airlines separately. Now we’ll be competing with them perhaps as one entity. It’ll be a challenge,” he said.

Kingfisher have cancelled an order for three A340 aircraft from European airframer Airbus. Airbus executive John Leahy said that Airbus had discussed the issue with Kingfisher before the choice was made and that this was the only cancellation from India. He also maintains that India will be an important area for Airbus, with the firm predicting Indian aviation growth will be at 9.7% compared to a global rate of 5.4%. Airbus predict that 1,000 new aircraft will increase the Indian fleet fivefold by 2026. Airbus have also welcomed the partnership between Jet and Kingfisher, saying it will help consolidate the carriers.

Airlines are cutting capacity to reduce costs, with around 20% gone already. Average flight movements are down to 8,000 a week compared to 10,500 in the period from April to June. The aviation industry in India is expected to post a collective loss of US$2 billion.

One executive at Boeing, Dinesh Keskar , predicted the downfall to be brief. “The current downturn in the sector is temporary and may not prolong for more than 6 to 9 months,” he said. Airlines, however, feel that the risk is very much immediate; Jet and Kingfisher are requesting a government bailout package worth Rs 40.7 billion. They are currently losing a combined US$1.3 billion.

Sunday, April 3, 2005 With six weeks before the sixth and final Star Wars film saga, Revenge of the Sith, hits theaters worldwide on May 19, the movie studios behind the brand have launched a massive marketing and merchandising campaign. It includes toys aimed at children, collectibles for adults active in fandom and other related merchandise such as science fiction novels based in the Star Wars universe.

The 20th Century Fox and Lucasfilm studios make millions of dollars in licensing fees from toy manufacturers and promotional deals with fast-food restaurants, candy and cereal boxes. Even telephone companies are getting into the act. Cingular Wireless will be rolling out a Star Wars-themed promotion and handset downloads within the next few days, according to a company spokesman.

Sales from Star Wars tie-in merchandise have brought in a lot of money over the years. Star Wars toy sales themed with The Phantom Menace brought in $500 million. In 2002, Attack of the Clones toy sales were $225 million, according to reports.

In January 2003, toymaker Hasbro struck the biggest licensing deal for the brand when it agreed to pay Lucasfilm $200 million in cash and stock for the exclusive rights to make Star Wars-themed toys until 2018. That figure does not include Lucasfilm’s percentage of the profit from each toy’s sale.

Wal-mart and Target, the two largest toy retailers in the U.S. have entire aisles devoted to tie-in Star Wars action figures, full-sized mock ups of light sabers and other more whimsical items. Hasbro is even marketing a “Darth Tater” special edition of its classic Mr. Potato Head.

The merchandise also has a literary side. Author Matthew Stover has a monetization of Revenge of the Sith as part of a multi-book deal between Lucasfilm and publisher Random House’s science fiction specialty label, Del Rey. Stover’s book has consistently been in the Top 50-most ordered books, according to Amazon.com. Other Sith-themed books released within the past few weeks include coffee table picture books and behind-the-scenes documentation detailing the making of the film.

Tuesday, July 12, 2005

West Yorkshire Police searched six houses in Leeds today in connection with the London bombings. Houses were searched in the Burley, Beeston and Holbeck areas. Further properties were searched in Dewsbury, about eight miles from the city centre. The raids began at 6:30am BST this morning after warrants were issued under the Terrorism Act 2000. Police are still in attendance at one property, and are describing the searches as significant, and “intelligence led”.

Access to one house was gained using a robot-deployed controlled explosion. Other houses were entered by armed police.

London Metropolitan Police commissioner Sir Ian Blair said that the operation “is directly connected to the outrages on Thursday”. A “significant amount” of explosives was recovered from the Burley property. Following the discovery of the explosive, military bomb disposal experts were sent to the scene. Around 600 people were evacuated from the surrounding area. Temporary food and shelter is being provided by the local council at Kirkstall Leisure Centre, a mile away.