THE Indian government announced last week it would be injecting Rs60 billion (US$1.1 billion) into the floundering Air India, although industry insiders TTG Asia e-Daily spoke to likened the move to flogging a dead horse.

Air India will receive Rs20 billion by January 2013 and the balance in 2Q2013, to go into its working capital and fund new aircraft purchases. The financial boost is part of the Indian government’s Rs300 billion bailout plan for the national carrier, which will be paid out in phases until 2020-21.

Earlier this year, the government cajoled a consortium of lending banks led by the State Bank of India to restructure Air India’s debt into long-term instruments and interests totalling Rs180 billion. The carrier’s debts and accumulated losses stand at Rs437.8 billion.

But some travel trade players are sceptical about the effectiveness of the plan.

Kapil Berera, CEO, Astral Travels and general secretary of the Society of Foreign Travel Operators, said: “No amount of fresh funds will turn around Air India as it has more employees than required, which affects its fixed cost. Its fleet utilisation is below par and its management-employee relationships are in tatters.”

“We cannot afford to spend good money on a bad asset. Air India is a business venture – if it does not make money it should be allowed to die.”

Ashwani Gupta, managing director, Dove Travels, said: “There are too many maladies that the airline suffers from, like the wastage of money through unprofessional management, an excessive number of employees on payroll and the lack of a sustainable, long-term strategy.”

Joy Peter, Intersight Tours director, was critical of Air India’s handling of its Middle Eastern routes, saying: “Air India has messed up its predominant position in high-yield routes to the Gulf countries. The co-existence of a full-service airline and LCC (Air India Express) has been mismanaged. If a professional management, not susceptible to government interference in operations, is brought in, Air India may have a slim chance of survival.”

INDIA’S airlines are launching new international flights between now and February.

On December 21, IndiGo will debut its first international flight out of Kolkata – a daily Bangkok-bound service with fares starting at Rs9,009 (US$166).

Aditya Ghosh, president, IndiGo, said: “The new flight to Bangkok is in line with our growth strategy. There are strong trade and tourism ties between eastern India and Thailand, and travellers need low fares from an Indian airline. We have also applied for rights to fly from Kolkata to Singapore and Dubai.”

SpiceJet will launch a daily New Delhi-Riyadh flight on January 4 and a four times weekly New Delhi-Guangzhou service on February 8, for which it is offering a promotional rate of Rs8,888.

Meanwhile, Jet Airways will commence a daily Mangalore-Dubai service on January 3 to coincide with the Dubai Shopping Festival, offering eight business class and 162 economy class seats.

Sajan K Gupta, director, Vayu Seva Tours, said: “The increase in international flights by Indian carriers and expansion of codeshare arrangements with international airlines on popular routes, allows us to create more cost-effective and multi-destination itineraries for our business and leisure clients.”

ASCOTT has won a management contract for its first Ascott-branded serviced residence in Surabaya, Indonesia, which is slated to open in 2014.

The 181-unit Ascott Waterplace Surabaya will be located within Pakuwon Indah, western Surabaya. Situated in an upmarket residential precinct, the property will sit opposite the Supermall Pakuwon Indah, which houses convention halls, shops, a cineplex, a supermarket and various dining outlets.

A choice of one-, two- and three-bedroom apartments will be on offer, as well as guest facilities such as two swimming pools, a gym and a residents’ lounge.

Alfred Ong, Ascott’s managing director for Southeast Asia and Australia, said: “Ascott sees tremendous growth potential in Indonesia, which attracted a record foreign direct investment of S$7.2 billion (US$5.9 billion) in the third quarter of 2012. Besides having a strong foothold in Jakarta, we are expanding our presence in Surabaya with our flagship Ascott brand.”

Ascott Waterplace Surabaya will be the company’s third property in Surabaya, after Citadines Marvell Surabaya and Somerset Surabaya Hotel & Serviced Residence. With this addition, Ascott will have more than 2,200 apartment units across 10 properties in Indonesia.

HILTON Worldwide has inked an agreement with Travellers International Hotel Group to manage Hilton Manila in Newport City, the Philippines, its first property in the country’s capital.

Opening in 2014, the 350-room hotel will sit close to Terminal 3 of the Ninoy Aquino International Airport and 3.5km from Manila’s central business district, Makati.

To be developed by Alliance Global Group and Genting Group, the hotel will be connected to a 30,000m² entertainment and hospitality complex. The 10-storey hotel will offer an all-day dining restaurant, a specialty restaurant, a bar and lobby lounge, a fitness club, an indoor pool and a spa, as well as event spaces.

“Manila is the political, economic, social and cultural centre of the Philippines and a leading gateway destination in South-east Asia. The announcement fully demonstrates our ongoing commitment to growing aggressively in Asia-Pacific and re-establishes both Hilton Worldwide’s and the Hilton Hotels & Resorts brand’s presence in the Philippines,” said Andrew Clough, senior vice president, development, Middle East & Asia Pacific, Hilton Worldwide.

GUANGZHOU will be the first mainland Chinese city to host a W hotel when the W Guangzhou Hotel & Residences opens its doors in early 2013.

The 320-key property, situated in the Pearl River New Town district, will feature a signature Chinese restaurant Yan Yu and a destination bar, among other facilities, as well as cutting-edge architectural and interior designs.

Paul James, global brand leader, W Hotels Worldwide, St Regis and The Luxury Collection, said: “The debut of the W brand in mainland China is a true milestone in our expansion into the world’s most vibrant and exciting destinations.”

W Guangzhou Hotel & Residences joins W Hotels Worldwide’s Asian portfolio that includes properties in Seoul, Hong Kong, Singapore, the Maldives and recently, Bangkok.

GENERAL Hotel Management (GHM) has unveiled plans for The Aayu Mumbai, a 42-suite luxury hotel scheduled to open in December next year.

Occupying the top five floors of Kohinoor Square’s 50-storey Central Tower, the tallest commercial building in the city, the hotel will house suites ranging in size from 65m² to 155m².

The hotel will also be home to India’s first celebrity restaurants led by decorated chefs Joel Robuchon and Hide Yamamoto.

Robuchon, a recipient of 28 Michelin stars, will open his eighth L’Atelier de Joel Robuchon restaurant at The Aayu. Serving contemporary French cuisine, the establishment will also feature a tea lounge, pastry shop and a collection of fine wines.

Yamamoto’s restaurant will feature a charcoal Robata grill, a ramen noodle bar, and a sushi and sake counter.

Other facilities in the hotel will include a library lounge and bar, a cigar and cognac lounge, an exclusive malt bar, and a boardroom on the 49th floor, as well as a rooftop terrace with a bar, a swimming pool and deck, and 1,400m² of landscaped courtyard.

GHM will also roll out two other properties by the end of 2013 – The Chedi Club Suzhou in China and The Chedi Andermatt in Switzerland.