India’s GVK Power and Infrastructure Ltd (GVKPIL), 29% stakeholder in Bangalore International Airport Ltd (BIAL), announced plans to increase its stake in the company, as shareholders complete their three-year lock-in period in the coming months (Business Standard, 17-Jul-2010). BIAL COO, Hari Marar, added GVKPIL is considering plans to acquire Siemens’ 40% stake in BIAL, for which the companies would establish an agreement to purchase the stake at a future date and predetermined price.
GVKPIL seeking to increase stake in BIAL
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Airline disruption: it will happen in the next decade - but no one is preparing for it
Why so unprepared? It seems inconceivable that the structure of an industry with so many artificial constraints can remain intact much past 70 years, while all around it has changed.
This decade alone has been witness to major disruptions in the travel and transportation industries. Most prominent have been in ride sharing – Uber – and in hospitality – Airbnb. Telecommunications, media and music industries have also been turned on their heads; banks and payments are in the firing line; retail generally is being rapidly transformed. There is scarcely an industry whose fundamental structure remains intact. Except the airline industry.
In all cases disrespectful startups, usually applying relatively simple but sophisticated IT solutions, have taken on legacy operations. The legacy industries under attack typically involve extensive capital investment, and are often characterised by significant, unhelpful, and highly intrusive government regulation that restricts competition.
Certainly the legacy airlines have had to deal with a new breed of low cost operations, long and short haul. But almost without exception those legacy operators are still there, fundamentally unchanged.
In terms of other industries, this is no more than fiddling around the margins. And time is running out.
India-Philippines: rapid growth, A321neo technology leads to Cebu Pacific-PAL traffic rights battle
Direct flights in the fast growing India-Philippines market are likely to resume by 2018, with service from at least one Philippine carrier. Cebu Pacific Air, Philippine Airlines (PAL) and Philippines AirAsia are all seeking traffic rights to serve India and are keen to serve Delhi.
PAL suspended nonstop service to Delhi 2011, and one-stop services via Bangkok in 2013. The Manila-Delhi market quickly proved to be too small back in 2011 to support nonstop services, but it has since more than doubled in size, making the route more viable. New generation narrowbody technology also significantly improves the route’s prospect.
PAL and Cebu Pacific would both use the A321neo on Manila-Delhi. Philippines AirAsia could potentially use the A320neo to operate the route nonstop in the future, but is initially seeking rights via Bangkok using A320ceos. The Cebu Pacific and PAL nonstop proposals are more likely to sway Philippine authorities, who will soon have to decide on how to allocate the only seven weekly Philippines-India frequencies available under the two countries' air services agreement.