Wednesday, September 22, 2010

Maiden aviation policy ignores travellers’ grouses

Mumbai: More than one fifth of air passenger complaints last month were of lost baggage followed by rude airline staff, according to data released by the civil aviation ministry. But these two issues are not addressed in the new passenger rights policy. While 22 per cent of 1078 complaints were of lost baggage, 11 per cent was of misbehaved staff.
But the ministry’s maiden policy on passenger rights that came into effect on August 15 has no provisions to protect for such travellers. The rule only helps passengers stranded because of denied boarding, flight delays and last-minute cancellations. Last month, airlines compensated 52,000 such travellers with full refunds against the ticket, cash compensation, hotel accommodation or by putting them in alternative flights.
The Air Passenger Association of India (APAI), a body formed by air travellers had pointed out these gaps when the policy was at a draft stage but the aviation regulator ignored it. “Baggage loss is the most common problem. How can the regulator ignore it,” said Sudhakar Reddy, national president, APAI

Lost baggage tops flier complaints

Mumbai: More than a fifth of air passenger complaints last month were of lost baggage, followed by airline staff being rude, according to nation-wide data released by the civil aviation ministry on Friday. This is the first time that the ministry has taken stock of passenger grievances. Of the 1,078 complaints recorded, 22 per cent were from passengers who had lost their baggage during transit. The next common complaint, accounting for 11 per cent of grievances, was of airline staff — both crew and ground — being uncooperative.
Almost 40 lakh people flew domestic airlines last month. Baggage loss is one of the greatest passenger inconveniences, with 25 million bags being lost across the globe during transit last year, according to the International Air Transport Association. Though the most common passenger problem, compensation for lost baggage is not part of the government’s new policy on passenger rights.
The Air Passenger Association of India had pointed out these gaps when the policy was being drafted. “Baggage loss is the most common problem. How can the regulator ignore it,” the president Sudhakar Reddy asked.

Smaller airports' city side to get private facelift

New Delhi: India’s rapidly increasing air travellers will in a few years have better facilities and flying experience even at the smaller airports as the government has approved cityside development of non-metro airports through private participation, which will help raise funds for their modernisation.
The Airports Authority of India, or AAI, will lease out land around the airports for 30 years, extendable by another 30 years, for some upfront payment and yearly rentals.
“The ministry will issue formal orders to the authority next week and city-side development of 10 airports in Phase-I will be undertaken, to begin with,” a ministry official told ET.
These airports include Ahmadabad, Jaipur, Lucknow, Amritsar, Indore, Vishakhapatnam, Guwahati and Bhubaneshwar.
The ministry has, however, clarified that maintenance of the terminal building will not be included in the scope of city-side development of the airports, clearly indicating that the intent is not to privatise these airports on the lines of those in Delhi and Mumbai.

AI pilots say training facilities 'pathetic’

New Delhi: Pilots of Air India have raised serious doubts about the airline’s flight safety. The 700-member strong ICPA (Indian Commercial Pilots Association) — the biggest AI pilot association — has written to the management complaining about the
“pathetic state” of training facilities at the airline’s Central Training Establishment (CTE), Hyderabad.
Sent on September 13, the confidential ICPA mail points out that “more than half of the 522 fatalities in airline accidents in the US since 2000 have been linked to problems with simulators”.
The association has said the Airbus A320 simulators at the training centre were more than two decades old.
While “in other airlines the simulators are maintained in a ‘top-class’ condition”, says the pilots’ mail, the ones in the CTE are “in a pathetic state”.
Trainee pilots, the ICPA said, were unable to get a feel of more than half of the emergency situations that can arise while flying an aircraft “as the state of simulators does not permit their simulation

Pilots have a nip, then nap in airborne planes

Chennai: With a recent court of inquiry revealing that the pilot of the Air India aircraft that crashed at the Mangalore airport had dozed off for over 90 minutes, air passengers are raising concerns over the safety and security norms in the civil aviation sector. DGCA officials maintain that there is no proper system to monitor “controlled naps” inside the cockpit.
“Though some airliners have certain measures to monitor ‘controlled naps’ inside the cockpit, India’s aviation industry is yet to frame rules and guidelines to address this issue,” said a senior official of Airports Authority of India (AAI). “Though a maximum of 30 minutes’ controlled nap is allowed, none of the airliners has ever taken action on its violation,” Capt. M. Ranganathan, an aviation expert and veteran pilot, told this newspaper.
Another cause of concern is that about 200 pilots have failed breath analyser tests for alcohol before takeoff in the last two years. “Both airlines and the Aviation ministry are ignoring the safety concerns of air passengers....” said Mr D. Sudhakara Reddy, founder president of Air Passengers’ Association of India (APAI).
While addressing a seminar on the rights and responsibilities of air passengers, Mr Reddy also alleged that authorities were ignoring the serious issue that over 40 airports in the country were running without proper safety norms

Jet Airways bags 'Best Full Service Airline- International (Indian)' and 'Best Full Service Airline- Domestic' awards

Mumbai: Jet Airways, India’s premier international airline, has been conferred with the prestigious 'Best Full Service Airline- International (Indian)' and 'Best Full Service Airline- Domestic' awards for 2009 by the Air Passengers Association of India (APAI).
Mr. Saroj Datta, Executive Director- Jet Airways, received the award on behalf of the airline, at a seminar on the Responsibility & Rights of Airline Passengers, jointly organised by CAI (Consumer Association of India) and APAI on September 18, 2010 at Chennai, attended by several luminaries from the trade and travel industry, and members of the media. The awards were given out by Sri K Shanmugam, IAS , Secretary, Finance & former Secretary, Dept. of Consumer Affairs and Food, Govt. of Tamil Nadu.
Receiving the awards, Mr. Datta said, “On behalf of Jet Airways, I would like to thank the APAI for this distinct recognition and honour. Importantly, these awards holds special significance as they are a recognition of our renowned service by none other than our guests. Jet Airways is committed to delivering truly world class service and has worked to continually enhance the excellent in-flight product and service on all our flights. These awards stand testimony to our commitment to continually focus on the needs of our guests, thus offering them a truly world-class travel experience."
The largest private airline operator in the country (with its all-economy subsidiary JetLite), Jet Airways currently flies to 23 international destinations across North America, Europe, Asia, Africa and the Gulf, including New York (both JFK and Newark), Toronto, Brussels, London (Heathrow), Johannesburg, Hong Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi, Dubai, Jeddah, Sharjah, Dammam and Riyadh.
Jet Airways was previously honoured by the APAI as the 'Best Full Service Airline-India' in 2007, and as the ‘Best Full Service Airline in India’ in 2008.
The Air Passengers Association of India (APAI) is India’s only national, non-profit organization totally dedicated to the welfare of the air passenger

M'lore air crash: Kerala CM resents delay in solatium payment

Thiruvananthapuram: Kerala Chief Minister VS Achuthanandan on Tuesday urged the Centre to take urgent steps to provide compensation at the international standard to the families of those killed in air crash at Mangalore airport on May 22, which included 54 Keralaites. In a letter to Prime Minister Manmohan Singh,
Achuthanandan said as per the Montreal Convention,the families of the victims were entitiled to Rs 70 lakh each.
Though the Centre had initially promised that the bereaved families would be adequately compensated, what could be learned later was that Air India was trying to go back on this and work out the solatium by factoring in the income profile of each of the victims.

14 yrs on, India yet to act on air safety proposals

Mumbai: Whether any lessons are learnt from the Mangalore air tragedy remains to be seen. But some vital air safety recommendations following the 1996 Charkhi Dadri mid-air collision, which killed 349 passengers, have not yet been implemented.
Justice R C Lahoti in his inquiry report on the Charkhi Dadri crash had recommended the formation of an independent air traffic control. Most countries such as Australia, the US, UK, France, Spain have autonomous ATC organisations. Fourteen years later though, the country still to act on Lahoti's air safety recommendation.
While the plans to corporatise air traffic control (ATC) got going last year — the corporatised entity is likey to be called Air Navigation Services Corporation (ANSC) — recent developments indicate that air traffic control may not be made into an independent body as recommended by Lahoti report

Air India plans to dry-lease 4 Airbus A-330 aircraft

Mumbai: Air India is planning to dry-lease four Airbus A-330 aircraft to service some of its medium-haul international routes, airline sources said on Monday.
"The purpose of taking A-330 aircraft is to deploy them on medium-haul routes or on sectors which have 7-8 hours of flying, like Hong Kong," the sources said, adding "though we are leasing only four aircraft now, our actual requirement is that of ten of these planes."
Currently, the national carrier has two of these wide-body planes in its fleet which are operating on the Jeddah and Shanghai sectors.
The leasing period of the A-330s would be one-and-a-half year to two years, the sources said. Under the dry-lease arrangement, the lessor provides an aircraft without crew, insurance, ground staff, supporting equipment and maintenance, all of which has to be taken care of by the lessee.
The routes on which these A-330 aircraft would be deployed are being finalised, the sources said, adding that the delivery of these leased planes would have to be made between October 2010 and September 2011.

Dublin Airport woos AI to make it its European hub

Dublin Airport Authority (DAA) is in talks with Air India to woo it to use the Irish airport as its European hub by promising an estimated annual savings of Euro 14 million and immigration and customs clearance for its passengers transiting to the U.S.
The talks have been going on for the past several months since the national carrier started looking for another hub in Europe after Frankfurt.
Air India, which operates three flights out of India and two from the US to its Frankfurt hub, has been considering shifting out of the German city and was looking for another European airport as a hub. However, no firm decision has yet been taken.
With a high-level Air India team visiting Dublin Airport a few months ago, DAA Chief Executive Declan Collier is now here to take the discussions with Air India further.
DAA was also looking at Kingfisher as a potential customer which can make the Irish airport its hub. Jet Airways already has Brussels as its operational hub in Europe.

Airlines may get to borrow overseas

The government will selectively allow local airlines to borrow money from abroad to repay debt taken in India, civil aviation minister Praful Patel said.
The move is part of several measures the government is adopting to help debt-ridden carriers. Funds raised via external commercial borrowings, or ECBs, cannot be used to repay Indian rupee debt.
Jet Airways (India) Ltd, the country’s largest airline by passengers carried, sought a relaxation from the Reserve Bank of India (RBI) for raising around Rs.3,000 crore through ECBs to repay its high-cost domestic debt.
“Some of it will be allowed,” Patel said on Monday on allowing Jet’s request. He did not specify the quantum or time frame for such a move. “Ultimately, it’s not a question of good or bad, right or wrong, if the sector is in (a) problem... It’s been done for cement, steel and many other sectors in the past. Why not for aviation?”
He pointed out that RBI has already granted airlines partial relief on restructuring their loans. Some of their debt will be converted into term loans or have moratoriums of two-three years, reducing the pressure on cash flows, he said.

Qantas passengers to sue Airbus over plunge terror

Sydney: Dozens of Qantas passengers and crew are launching a multi-million dollar case against Airbus and a component-maker over a terrifying mid-air plunge which left scores injured, a lawyer said on Monday.
Attorney Floyd Wisner said he was representing 76 passengers and crew who were on the 2008 flight which dived steeply twice, tossing people around the cabin and forcing an emergency landing at a remote Australian air force base.
Wisner refused to put a figure on the compensation sought in US courts from Europe's Airbus and American firm Northrop Grumman, which made a data unit on the plane, but said it would be in the millions of dollars.
Among the mostly Australian group he is representing, which also includes passengers from Britain, Sri Lanka, India and Singapore, are the three Qantas pilots who were on the flight, he said.
The Airbus A330-300 was flying at 37,000 feet from Singapore to Perth in October 2008 when the autopilot disengaged and the plane nose-dived, plunging 650 feet (200 metres) and throwing passengers and loose items around the cabin.
After the pilots brought it back to altitude, the plane went into another plunge and dropped another 400 feet. More than 100 people were injured.
Many passengers travelling that day were so traumatised by the incident they are no longer able to fly, he added.
He said he believed the captain of the flight, a former "top gun pilot from the US Navy", had not flown since.
Wisner, whose practice is devoted to aviation cases, said he had been contacted by Australian lawyers to work on the compensation claims before the statute of limitations expires on October 7 this year.
He said if the claims were not settled, he expected the case to go to trial in the US within two years.
Qantas, which prides itself on its safety record, said the incident was an "exceptionally rare event", noting that the Australian Transport Safety Bureau was yet to release its final report into the cause of the plunges.

Breath tests must for crew of all Indian flights

New Delhi: After recommending permanent suspension of pilots' licences for flying or even trying to fly an aircraft in an inebriated state, the Directorate General of Civil Aviation has upped the ante for keeping passengers safe from tipsy crew. DGCA chief Nasim Zaidi has proposed 100% pre-flight breath analyser tests for the entire crew — pilots and cabin crew — of all scheduled domestic and international flights operated by Indian carriers.
At present, only random checks take place that are intensified during festive seasons and New Year's Eve. Scheduled airlines are expected to do 60% crew's pre-flight testing on a random basis.

Dreamliner delay forces AI plan tweak

New Delhi: The Air India board is likely to hire four Airbus 330s for the South East Asian and West Asian routes till its Dreamliner jets arrive. The board will also decide on key appointments at its board meeting later this week.
Air India may rent the Airbuses for a year to fly to places taking six hours to eight hours. The airline, which has run up losses of over Rs 7,200 crore, is likely to get its first Dreamliner early next year and possibly four to five more in the same year as well as a hefty compensation for a two-year delay in the delivery of the wide-bodied planes built of carbon fibre reinforced plastic.
However, sources said, the loss-laden airline urgently needs medium haul planes on heavy traffic routes to South East Asia and West Asia, where AI is facing stiff competition from new entrants such as Air Arabia and Air Asia as well as older players who are improving their products while cutting prices.
Embraer plans to sell 50 planes in India over 10 yrs
New Delhi: Embraer, one of the world’s largest aerospace companies and leader in the category of commercial jets with up to 120 seats, is in talks with various airline companies and plans to sell over 50 aircraft in India over the next 10 years. “We plan to deliver 55 airplanes by 2019,” Alex Glock, vice-president, Embraer Asia Pacific told HT.
Glock said the Indian commercial aviation market was one of the most exciting in the world with significant domestic passenger demand remaining to be tapped by local airlines.
“The total annual domestic passenger traffic in India is around 44 million. Sixty one per cent of this, that is 27 million, is witnessed in category II and III cities, for which the Embraer commercial jets are best suited,” Glock said.
He said the kind of traffic that was being seen in secondary Indian cities was, in some cases, more than the entire domestic traffic of some European countries.
Of the 337 jet-powered airplanes in operation today by Indian carriers, only 20 seat fewer than 120 passengers. The backlog of aircraft currently on firm order and to be delivered to scheduled Indian airlines includes 295 aircraft with an average seating capacity of 185 passengers.

IBM signs 10-year outsourcing deal with Jet Airways

IBM, the global information technology solutions major, has won a 10-year, $62-million (Rs 285 crore) IT outsourcing deal from Jet Airways. It is the first "total outsourcing deal" in Indian aviation, says IBM.
IBM will provide technology solutions to transform the airline's business areas such as airport operations, direct distribution and frequent flier programmes. "This will enable us to focus on our core business and improve our operational efficiencies, besides delivering a seamless customer experience," said Nikos Kardassis, chief executive officer, Jet Airways (India).
Shelved ATC revamp makes modernisation plan comeback
Calcutta: A safety project that was grounded midway is set to take wing again at Calcutta airport, compensating for a delayed flight to modernisation.
The announcement came even as a reality check by the Airports Authority of India confirmed what Metro had reported on August 9 — that the modernisation project would miss its August 2011 deadline.
The chairman of the Airports Authority of India, V.P. Agrawal, fixed October 2011 as the new deadline for the modernisation project. “We have reviewed the progress and the project will be completed by October 2011,” he said on Tuesday.
There was some good news too. “We are planning to spend Rs 250 crore in excess of the modernisation budget to upgrade the ATC (air traffic control) and build a new tower in around one-and-a-half-year’s time,” Agrawal said.
Of the estimated additional cost of Rs 250 crore, around Rs 100 crore is to be spent on equipment meant to increase flight safety in an airport with a history of close calls.

Debt-ridden airlines get relief from RBI

New Delhi: Finally, airlines have some relief from the Reserve Bank of India (RBI). The central bank has said that restructured loans of airlines will no longer be treated as non-performing assets.
Most of the airlines are on the verge of default in repaying loans to banks. In case of defaults, airlines will not be able to raise money from the markets. Together the big three of Indian skies - Air India, Jet and Kingfisher - have debts to the tune of Rs 60,000 crore, which they were finding hard to repay due to the recent downturn in the global aviation industry. "So, the RBI's decision has given a fresh lease of life to the domestic carriers," said a senior aviation ministry official.
With RBI allowing banks to restructure airline debts on a case-to-case basis, the sector is expected to get several benefits. "Airlines can get a moratorium on repaying loans without being labelled NPAs. Such a move will also ease off pressure on banks from spoiling their balance sheets due to the huge exposure to airlines, while giving them relief for repayment," said the official.
AI has loans of about Rs 40,000 crore (for aircraft purchase and working capital) and Jet-Kingfisher between them owe about Rs 20,000 crore. While Bank of India's exposure to aviation sector is Rs 4,000 crore, SBI has lent about Rs 3,000 crore. Airlines like AI have taken working capital loans on which hefty interest is paid every quarter. AI has never defaulted on interest payment while Kingfisher has sought a moratorium for two to three years. AI has said that the interest payment is proving to be its biggest cash outflow the biggest challenge.

Airline yields finally set to take off

Bangalore: Last fiscal, even when the demand was rising and airlines were registering high load factors, stiff competition in the sector had kept the average fares or airline yields — net revenue per passenger — low.
One of the reasons for the fare war was that full service carriers (FSCs) like Kingfisher Airlines, Jet Airways and state-owned Air India were migrating a lot of their seat capacity to low fares.
The market was suddenly flooded with low-fare seats, which pushed down the average fare earned by airlines from passengers. This, pretty much, remained the trend for the entire last fiscal and the first quarter of fiscal 2011.
That, however, is changing now. Airline experts and analysts believe with the sustained robust demand and lower fare rivalry, yields could inch up a little this year.
“For long, we have been waiting for the right opportunity to improve our yields but despite climbing demand and capacity rationalisation, we were not able to do it till now. Though, we will be able to firm it up by 8-10% (Rs250-300 per passenger) in the next one year,” said a senior airline executive, who did not want to be named.
He said higher yields will help air carriers to shore up revenues and eventually expand profitability if costs remain reined in.
Rakesh Shah, analyst with ICICI Securities, in his report brought out on Monday also expects airline average yields to improve 7-10% for local airline operators during the next two years.

Saturday, September 11, 2010

Aviation loan revamp: RBI gives three options to banks

Mumbai: The Reserve Bank of India (RBI) has given three options, including a reduction in interest rates and conversion of loan into equity, to banks while dealing with the issue of restructuring of bad debts in the aviation sector. Some of the aviation loans have already become NPAs, bankers said here.
SBI chairman OP Bhatt said the first option is to maintain the status quo for the sector — which was prevailing during the last financial year ended March, 2010. The second one is to allow banks reduce interest rates while the third option is to convert some loans of the aviation sector into equities. “The restructuring of the aviation sector may be a combination of these three options. All the possibilities are there in the guidelines sent by the RBI,” Bhatt said. The banking system was allowed to restructure the loans to several sectors like steel and textiles seven years ago to tide over recession and project implementation woes.
RM Malla, CMD, IDBI Bank, said the banks have formed a consortium, which will soon meet to decide about the options to be exercised while restructuring the bad debts of aviation sector.
The entire banking industry’s exposure to the sector is at around Rs 55,000 crore out of which majority is lent to NACIL. SBI Capital has made its draft ready in the case of Kingfisher Airlines.

SpiceJet's ex-CEO in Esop row with new owners

Mumbai: Sanjay Aggarwal, the former SpiceJet CEO, is slugging it out with the new owners of the Gurgaon-based low-cost carrier for his ESOP money.
The new SpiceJet management, led by the Southern media tycoon Kalanithi Maran, has put a question mark on the employee stock ownership plan (ESOP) that was approved by the earlier board, controlled by the Kansagras — the promoter family — and US billionare Wilbur Ross. Both of whom, sold their holdings to Mr Maran.
“According to Mr Aggarwal he should be receiving at least 75 lakh shares, currently valued at `59 crore. But the new SpiceJet management thinks that he should get not a share more than 17 lakh shares, which at current market value comes to `13 crore,” said a person privy to the discussions.
According to the agreement, Mr Aggarwal would have been entitled to 3% of the company’s stocks after four years of service. However, he quit in little over a year, soon after the company changed hands.
The current SpiceJet management is sticking to the argument that Mr Aggarwal never completed the four-year term, the latter thinks that the changes brought in by the new management forced him to resign. Industry circles think that the company may reach some settlement with Mr Aggarwal later this year.

Monday, September 6, 2010

Flight ticket not confirmed, Rosaiah faces 'aam aadmi' plight

Hyderabad: Andhra Pradesh Chief Minister K Rosaiah on Sunday faced a common man's woes after he was stranded for a while at the Tirupati airport in Renigunta as his ticket to the state capital was not confirmed.
His Principal Secretary B Sam Bob and the head of Chief Minister's Security Group (CMSG) Sashidhar Reddy were also supposed to accompany Rosaiah on the flight but all the three were kept on the wait list by Kingfisher airlines. "The Kingfisher Airlines staff refused to let the Chief Minister and his aides take the flight without confirmed tickets, official sources in the Chief Minister's Office said.
This left the Chittoor district officials as well as the CMSG personnel in a tizzy. Interestingly, Union Minister for Urban Development S Jaipal Reddy, his deputy Kumari Selja, several state ministers, a few MPs and their personal staff were also on the same flight.
They all were returning to Hyderabad after attending the marriage of Tirupati MP Chinta Mohan's daughter. "Luckily, two personal staff members of the political leaders were on the same flight. They agreed to cancel their journey and let the Chief Minister fly back to Hyderabad," the official told PTI.

South India to get regional airline

New Delhi: The Ministry of Civil Aviation has given ‘in-principle approval' to a Mumbai-based company, Freedom Aviation Private Ltd, to import six aircraft to start scheduled regional airline operations in the South. The airline, which hopes to take wing by next year, plans to link most major tier-II cities in the southern region. Official sources confirmed to Business Line that the licence to start a regional airline has been cleared by the Government.
“It is still too early to discuss all the details of the airline,” Captain Vijay Kumar Madan, listed as Accountable Manager on the Web site of the Directorate-General of Civil Aviation, said, over phone from Mumbai.
A regional airline is allowed to operate flights from any airport in the four designated regions, to any airport in the country. At present, there are no regional airlines operating in the country.

Congestion cost: Rs 500-cr ATF bill

Mumbai: Indian carriers wasted aviation turbine fuel (ATF) worth Rs 500 crore in 2009-10 thanks to incremental flying, a figure likely to cross Rs 650 crore this financial year. The incremental flying is necessitated by increasing congestion at metro airports which delays landing and getting parking space. Technical glitches and bad weather too lead to incremental flying. The wastage accounts for as much as 3% of the total ATF consumed by these airlines in FY2009-10. This is expected to rise to 5% this financial year.
Jet Airways with 89 aircraft had a fuel bill of Rs 3,758.39 crore for the year ended March 2010, and wasted as much as Rs 150 crore on incremental flying. Said Saroj Datta, executive director, Jet Airways: “Due to incremental flying arising from congestion at airports, the airline wasted 3-4% of fuel during 2009-10.”
With airlines bulking up their fleets to match demand, congestion has been on the rise. In Mumbai, India’s second busiest airport after New Delhi, delays in environmental clearance for a second airport proposed in Navi Mumbai have put additional burden on the existing airport.

CIAL’s passenger traffic gains altitude

Kochi: With more airlines showing keen interest to launch services from the Cochin International Airport (CIAL), the airport is all set to achieve the 4.5 million passenger-traffic target in the current financial year registering a growth of 15 percent when compared to the previous year. The passenger traffic was 3.93 million in 2009-10. Many existing airlines have approached CIAL enquiring about the possibility of enhancing the schedule.
SriLankan Air, which stopped its service to various airports in India including Kochi a couple of years ago, has decided to resume service from Cochin Airport in next January. SriLankan Air is likely to operate three schedules in a week. Expo Air, the cargo airlines based in Sri Lanka, is expected to launch its service in Kochi by September 8. Condor Airlines, the German-based no-frills global airlines, is proposed to operate its maiden service on the Kochi-Frankfurt sector from November 4. AkashGanga Airlines, which pledges to serve the domestic air passengers, especially from north India, will spread its wings to Kochi soon. A low-cost carrier, it will initially operate on the Lucknow-Kochi sector. AkashGanga Airlines, operating tourism-related services, is considering CIAL as its hub in South India and will have a ‘tie-up connection’ to Nepal. SpiceJet and Indigo Airlines are likely to launch international operations from Kochi as soon as they get clearance to operate international services.

New building to be used as international terminal at Ahmedabad: AAI

Ahmedabad: Airport Authority of India (AAI) has put to rest all speculations about the probable use of swanky building at the Ahmedabad airport by announcing that it would be used as the international terminal. The domestic airlines would continue to operate out of old terminus.
Looking at the number of domestic passengers, the AAI decided to swap the international and domestic terminus. Even the Union minister of state for civil aviation Praful Patel had in the Lok Sabha made it clear that "swapping the functioning of the domestic and international terminals at Sardar Vallabhabhai Patel International Airport, Ahmedabad, had been planned by the Airports Authority of India (AAI), as the requirement of domestic traffic was much more as compared to international traffic. This is being done without compromising the level of service."
However, there after a lot of thinking went in and finally the AAI officials have decided to go as per the original plan of having the new building recently inaugurated as an international terminus.
The officials said that in the first two months of the current financial year alone the Ahmedabad airport registered a growth of 27.8 per cent, which was more then the national average which was the growth of 16.2 per cent.

Air India 'most trusted brand' in aviation, says survey

Mumbai: National air-carrier, Air India, has been ranked as the 'Most Trusted Brand' in the aviation sector in the country by the Economic Times Brand Equity Survey 2010.
This is the fifth consecutive time that the country's flag-carrier has bagged the honour.
The flag-carrier has also been ranked 28th among the top 50 service brands, ahead of leading banks, insurance companies, food-chains and airlines, an Air India press release said here today.
Recently, Air India was presented the Reader's Digest Trusted Brand Gold Award also for the fifth consecutive year.
The Most Trusted Brands Survey, conducted by the Economic Times in collaboration with The Nielsen Company identifies brands that bond with consumers.
A sample of 8,160 consumers across socio-economic classes, age, income and geography, was surveyed with parameters such as the brand's quality of service, value for money, popularity, confidence and repurchase intent, etc.
Air India operates across 113 destinations including 15 international ones across the USA, Europe, Canada, the Far-East and south-east Asia and the Gulf.

Maran takeover speeds decisions at SpiceJet

New Delhi: Decision-making in SpiceJet after it was bought by Sun TV promoter Kalanithi Maran has become faster, say senior staff.
Said a top executive who did not want to be identified: “Earlier, achieving consensus at the board level was very difficult, as the stakeholders had varied interests. This has changed.”
As an example, he said the plan to expand its fleet was on for a long while but the decision could only be taken after Maran took charge.
SpiceJet operates a fleet of 21 aircraft and will induct seven more in the current calendar year. The airline had, before Maran, planned to add only four aircraft.
Kalanithi Maran It now plans to operate 50 aircraft by 2014, having recently ordered for 30 new aircraft with Boeing, at a cost of $2.7 billion (Rs 12,660 crore). Delivery is to start from 2014.
Maran’s entry also saw around half the 20 key managers leaving, starting with Chief Executive Officer Sanjay Agarwal. “All the key top guys he hired left after his exit,” said another executive.
Founding Director Ajay Singh also left the board, though his family and he continue to hold 10 per cent in the airline.
Analysts also believe a strong promoter will give direction to the airline.

Govt to crack down on delayed flights to de-congest Delhi airport

New Delhi: Peak hour congestion over the Delhi and Mumbai airspace could soon be a thing of the past. The Ministry of Civil of Aviation is firming up a proposal that will ensure aircraft don't hover endlessly in the skies, waiting for their turn to land. On any given day, Delhi and Mumbai handle 710 and 690 flights respectively.
As per the plan, delayed flights won't be allowed to take off from the originating station if it will arrive during peak hours in Delhi and Mumbai.
The proposed plan is still being fine-tuned by the Ministry along with the DGCA (Directo-rate General of Civil Aviation) and AAI (Airports Authority of India) and could be implemented as early as next week.
To start with, the focus will be on evening peak hours, tentatively between 9.15 and 11:15 pm. During this period, Delhi and Mumbai handle around 50 arrivals respectively.

DGCA to train pilots to curb noise pollution

New Delhi: Directorate General of Civil Aviation (DGCA) will soon train pilots in new landing techniques, so that noise pollution could be minimised.
Appearing for DGCA, solicitor general (SG) Gopal Subramaniam told a division bench of the Delhi high court on Wednesday, “We are trying all measures to curb noise pollution in the vicinity of [Indira Gandhi International or IGI] airport, so that residents can feel at ease.”
The court was hearing a plea of Vasant Kunj residents seeking night curfew on landing of aircraft.
SG said, “..We are preparing a blueprint for curbing noise pollution keeping in mind global parameters and once the mechanism is in place, things will certainly change.”

PM lays foundation stone for Tirupati international airport

Prime Minister Manmohan Singh Wednesday laid the foundation stone for the Tirupati international airport to provide direct connectivity from various international destinations to the temple town in Andhra Pradesh.
The prime minister noted that the entire investment for the new integrated terminal is being met through the budgetary resources of the government. The first phase of the project is estimated to cost Rs.174 crore.
The state government has already handed over 293 acres of land out of the 718 acres committed for modernization and development of the airport.
Singh said once the new integrated terminal becomes operational, the Tirupati airport will have the capacity to handle 500 domestic and 200 international passengers during peak hours. The new terminal building will be equipped to provide modern state of the art amenities to passengers.

Indian investor too on the race to manage Indonesian airports

Jakarta: The director general of air transportation at the Transportation Ministry, Herry Bakti S Gumay, said Wednesday the government had offered up seven airports across Indonesia to be managed by foreign investors.
“The airports are in South Banten, Bali, East Kalimantan, West Kalimantan and West Java. All require the construction of new terminals,” Herry told reporters.
He said it was also possible that Jakarta’s Soekarno-Hatta International Airport and Ngurah Rai International Airport in Bali would be offered up as both were in need of massive improvement.
According to Herry, an Indian investor had shown interest in investing in Indonesian airports and had met with the government to submit proposals.
It is believed the involvement of foreign investors is due to a limited state budget and provisions outlined in the aviation law.
Previously, State-Owned Enterprises Minister Mustafa Abubakar said the government was looking for local and foreign investors to develop the airports, which have been operating for 25 years.

Fake grenade spurs security scare at IGIA

New Delhi: A dummy grenade shell found on Tuesday night during luggage screening at the cargo terminal triggered a security scare at the Indira Gandhi International Airport. The dummy grenade was found in a postal bag around 8 p.m. on Tuesday during a routine X-ray check of outbound parcel and baggage.
The packet was noticed in cargo export section.
The cargo was part of Air India's Delhi-London-New York flight (AI-111). "The Bomb Detection and Disposal Squad (BDDS) was called in immediately, who as a precautionary measure, kept the bag along with grenade in the cooling pit," said an airport official who didn't wish to be named.
The bag was taken out of the cooling pit and opened on Wednesday morning. "The grenades were actually replicas with no explosive inside them," he said.
The Bureau of Civil Aviation Security is enquiring into the incident, a civil aviation ministry spokeswoman said.

AI’s low-cost service to expand in phases

Mumbai: National Aviation Company of India (Nacil), which runs flag carrier Air India (AI), has gone back to the drawing board to study new domestic routes to introduce low cost arm Air India Express in phases, say Air India officials.
The first phase of low cost expansion is estimated to be completed within six months to cash in on the boom of low cost travel in India and the airline might deploy more capacity in the north region, the AI officials said.
Air India CMD Arvind Jadhav had in late 2009 said the carrier will deploy nearly 27% of its domestic capacity on its low cost subsidiary. However, analysts say that the carrier will not have the first mover advantage as arch rival Jet Airways had when it introduced JetKonnect in 2009 with fares lower by 15% than its full-service carrier. However, the Indian aviation market is growing exponentially and each operator can grab a decent pie from it. Air India COO Gustav Baldauf recently said, “Low cost carriers play an important role. We will tackle the market in different levels. LCC as a business model is a part of the total restructuring concept.”
Meanwhile, Air India Express' website also emphasises that Air-India Express, based on market-trends, will be introducing many new destinations, international as well as domestic.

Airlines, airports now responding to Twitter grouses

Mumbai: Anand Mahindra, vice-chairman and MD of the Mahindra group of companies, tweeted from London airport on Tuesday evening.
"Hour on tarmac at Heathrow because gate was blocked and then new gate didn't work so down the stairs. Everyone quiet because it's UK, not Mumbai?"
Before that tweet could cause much twitter on the social networking site, Heathrow airport officials responded. A pleasantly surprised Mahindra forwarded the Heathrow tweet. "THAT is customer-centric. @HeathrowAirport: Hi Anand, that doesn't sound too good. We'll pass this on to our terminal teams... enjoy your stay."
What started as a B2C (business to consumer) tool last year when some airlines in the US got active on social media networking sites to promote their products and offerings has inadvertently turned into a platform where even the most mundane of passenger queries and complaints get an instant response. Anyone who has ever tried the traditional modes of communication — like calling up an airport/airline's customer support/care number — would instantly understand the appeal that zero-hassle options like Twitter, Facebook, YouTube, Flickr and online blogs hold. For flyers, it's the latest and best vehicle to connect with airports and airlines, which have played the role of an indulgent service-provider, so far.

Domestic travel from T3 only from Oct 28

New Delhi: Domestic passengers using the Indira Gandhi International Airport in Delhi will be able to use the new Terminal-3 (T3) only from October 28, a few weeks after the Commonwealth Games are over. The Games will conclude on October 14.
The civil aviation ministry believes that the new terminal will not be able cater to the increased passenger numbers, if the domestic flights shift to T3.
“If the domestic flights shift, T3 will not be able to cater to the increased number and affect the experience of the overseas travellers coming for the Games. It has now been decided to shift the operations from October 28,” said a ministry official who did not want to be identified.
Full-service carriers like Air India, Jet Airways and Kingfisher Airlines, along with their low-cost subsidiaries JetLite and Kingfisher Red, were to shift to the new terminal first by mid-July and then by August-end.
This shift was deferred after Civil Aviation Minister Praful Patel visited T3 last month and found out that the terminal was not capable of handling domestic operations. The date was then extended from August 27 to a date which was to be decided after a review in mid-September.

Bangalore, Hyderabad airport cities are ready to take wing

Bangalore/Hyderabad: GMR Hyderabad International Airport Limited (GHIAL) plans to develop an aerotropolis on 1,000 acres, which will promote education, healthcare, entertainment, hospitality, commercial and logistics ports around the airport.
Bangalore International Airport Limited (BIAL) will take up expansion of Terminal-1 at a cost of Rs 1,000 crore to raise capacity to 17 million passengers a year in the next 18 months, says Karnataka Chief Minister B S Yeddyurappa. Expansion of T2, which is planned from 2014, will eventually take capacity up to 25 million. The current capacity is 10.6 million.
The Karnataka government earlier announced that work on the expansion of the existing Terminal 1 would begin in September. When complete, Terminal 1 will be expanded by 70 per cent of the existing building, with an additional passenger space of 40,000 square metres. This will take the terminal capacity to 17 million passengers a year, sufficient until 2015.
The total annual traffic as on March 2010 stood at 9.92 million passengers, marking annual international traffic growth at 18 per cent, and domestic traffic growth at 13 per cent. It achieved an overall growth of 14 per cent over 2008-2009.
In Hyderabad, as part of its development of an airport city, GHIAL has finalised an agreement with the Apollo Group to set up a hospital, mainly to cater to foreigners. Apollo Group Chairman Pratap C Reddy recently confirmed the move. There will also be overseas partners in the project.
GHIAL is also working with international players to form joint venture partnerships to create business assets on the proposed 1,000 acres. There are plans to develop an aviation special economic zone spread over 250 acres and a multi-product SEZ on another 250 acres, said a GHIAL official requesting anonymity.
The Rajiv Gandhi International Airport (RGIA), which began operations in March 2008, saw a 5 per cent growth in overall passenger traffic in 2009-10. In two years, the airport has handled 6.4 million passengers. Cargo handling in 2009-10 touched 65,727 tonnes, 14.8 per cent more than last year. It has the capacity to handle 12 million passengers a year and in the final phase will handle 40 million passengers and 1 million tonnes of cargo.

State must provide land for Sriperumbudur airport: AAI

Chennai: The onus of providing land for developing the greenfield airport at Sriperumbudur is on the State Government, said Airports Authority of India (AAI) chairman V P Agrawal here on Thursday.
On the potential of the new airport, Agrawal said the economies were all set to grow in the coming years. Hence, the new airport's prospects were bright.
On the deadline for developing the airport, he said, "We want to make it operational in four to five years' time. The modalities of funding this airport will be discussed with the State Government, after the International Civil Aviation Organisation (ICAO) report is received."
The ongoing ICAO study would give a clear picture of the logistics involved in the construction, Agrawal said. The AAI chief said Sriperumbudur was identified as a catchment area.
Defending the airport location, Agrawal said the remoteness of the place was not a problem as support infrastructure in the form of road and rail facilities would come up.

Vizag airport awaits Navy nod to go international

Visakhapatnam: The Visakhapatnam airport is all set to go international once the Indian Navy gives its green signal as three international airlines are ready to operate flights from the industrial hub of the state.
However, highly-placed sources said the hitch is over the timings of the flights. While the international airlines Air Arabia, Fly Dubai and Silk Airways are asking for the night slot ie. after 11 pm till early in the morning, the airport currently functions only between 8 am and 8 pm because of the restrictions imposed by the Navy on night operations.
The Naval authorities claim it is not possible for them to operate night flights due to insufficient manpower and other logistics. "Due to this, Air Arabia, Fly Dubai and Silk Airways, which are keen to operate services from the port city to Sharjah, Dubai and Singapore are in a dilemma," sources said.
Air Travellers' Association of India Vizag chapter president D Varada Reddy told TOI that several private airlines are willing to operate domestic and international flights from Vizag. "Lack of night operating facilities is a major stumbling block," he said.
The airport, which is under the control of the Indian Navy, handles 12 domestic services to cater to the needs of north coastal districts and the neighbouring districts of Orissa and some parts of Chhattisgarh. According sources, Air Arabia wants to operate its Sharjah-Vizag-Sharjah service in the early hours.

Govt clears $5-billion airplane purchases

The government has cleared the acquisition of 46 new aircraft worth over Rs 19,000 crore by three low-cost carriers: SpiceJet, IndiGo and Jet Lite. The new planes will arrive in a staggered delivery schedule beginning November. The acquisitions were cleared on August 30 at a meeting of a civil aviation ministry empowered committee.
US manufacturer Boeing bagged the larger part of the clearances — 32 planes — while 14 went to European rival Airbus.
The permission to acquire new aircraft comes around six months after the government gave in-principle clearance to IndiGo to buy 150 new aircraft. The cost was estimated at around Rs 65,000 crore.
Gurgaon-based SpiceJet received approval for 30 Boeing 737-800s at a cost of $2.7 billion (Rs 12,660 crore). Delivery is to start from 2014. SpiceJet operates a fleet of 21 aircraft and will induct seven more in the current calendar year. It plans to operate 50 aircraft by 2014.
IndiGo, which is the country’s largest low-cost carrier by market share, received approval for 14 A-320s for 2011-12. The Gurgaon-based carrier, which operates a fleet of 27 aircraft and has a market share of 16.9 per cent, is adding seven new planes this financial year. IndiGo ordered 100 Airbus 320 aircraft in 2005 for delivery by 2015-16.
The third airline JetLite, a wholly-owned subsidiary of Jet Airways, has been granted permission to buy two Boeing 737-800s in November. JetLite operates a fleet of 23 aircraft and has a marketshare of 7.5 per cent.

British Airways keen to come on board in India

Mumbai: British Airways, world’s third largest carrier, is keen to be a strategic investor in an Indian aviation company when foreign carriers are allowed to invest in the sector, says its chief executive officer.
“We are looking at opportunities in India and we are very interested in the Indian market,” British Airways CEO Willie Walsh told reporters in Mumbai on Saturday where he announced a code-share agreement with Kingfisher Airlines and introduced the latest plane from the Boeing stable — Boeing 777-300ER — in some select Indian routes.
British Airways will look at consolidation in the Indian aviation sector when foreign carriers are permitted to buy stake in their Indian counterparts, he said. “India is the second largest market after the United States for us. We are very keen on working in the Indian aviation space,” added Mr Walsh.
Indian investment norms do not permit foreign carriers to acquire stake in Indian airlines on the grounds of national security although overseas investment of upto 49% is allowed in the industry.

Jet plans to set up MRO facility

Mumbai: Jet Airways plans to set up a maintenance, repair and overhaul (MRO) facility in India, possibly in the South.
In its annual report for 2009-10, the country’s largest carrier in terms of market share said: “After a detailed evaluation of various options, it was concluded that the best option for the company was to set up an MRO facility in partnership with an experienced MRO service provider to perform maintenance checks on the company’s fleet in India.” Jet has a 26.6 per cent market share.
“To support the company’s operations and future expansion plans while taking into account all types of aircraft, Jet Airways will need adequate and cost-effective engineering and maintenance infrastructure,” the company said in the report.
The main reason for setting up the facility is to avoid sending airframe maintenance work abroad and perform this labour intensive work at a comparatively lower cost in India. “This will help achieve Jet Airways’ objective of enhanced aircraft availability, reduce maintenance costs, while ensuring that aircraft maintenance checks are of the highest standards.”
Now, Jet Airways sends its aircraft out of the country for heavier airframe maintenance work, which the company said was expensive and time-consuming. Jet has a fleet of 90 aircraft, of which 64 are Boeing, 14 ATR and 12 Airbus.

India Plans to Invest $8.6 Billion to Build, Upgrade Country's Airports

India, the second-fastest growing major economy, plans to invest 400 billion rupees ($8.6 billion) in the aviation industry during the next five years, Minister Praful Patel said.
“We are in the process of either upgrading or setting up new airports across the country, Patel, 53, said in an interview in New York yesterday.
Economic growth and rising incomes have boosted air travel in the world’s second-most populous nation. India’s airline passenger numbers may climb to a record 50 million this year from 44 million last year, Boeing Co. forecast last month. Patel expects the industry to grow at least 20 percent over the next five years.
The government has already spent 400 billion rupees in the last few years to upgrade and build new airports in cities including Hyderabad and Bangalore and in the capital, New Delhi. The nation has 92 airports compared with 45 in 2004, Patel said