New Delhi: Low-cost airlines cannot hide behind the "no free meal" clause printed on tickets to refuse food to passengers if the flight gets delayed by three hours.
In an important judgment, the Supreme Court ruled that the exclusion clause not to provide meals would apply only to passengers who had not boarded the flight and were free to purchase food in the airport.
"It will not apply to passengers who are on board and the delay in flight taking off denies them access to food and water," said a bench of Justices RV Raveendran and AK Patnaik while absolving IndiGo of any wrongdoing in a case of alleged ill-treatment of passengers on a fog-delayed flight in 2007.
"In the extraordinary situation where the passengers are physically under the complete care and control of the airline, as it happens when they have boarded the aircraft and have no freedom to alight, the duty of the airline to protect and care for them, and provide for basic facilitation would prevail over any term of contract excluding any facilitation, except when the carrier itself cannot access food due to emergency situation," the bench said.
"No public utility service can say that it is not bound to care for the health, welfare and safety of the passengers because it is a low cost carrier," said Justice Raveendran, who authored the judgment.
Friday, July 15, 2011
Captain G R Gopinath's Deccan 360 to lay off jobs
Bangalore: Deccan 360, the logistics firm launched by India's budget airline pioneer Captain G R Gopinath, has asked its employees to start looking for jobs elsewhere. In an email to its 600-odd staff, a copy of which was seen by ET on Friday, the HR department of Deccan 360 cited lack of funds as the reason for this restructuring.
"While we have done our best to hold the company with the minimal operations, but could not succeed due to business and funding constraints. Hence, we opted for restructuring and are in the process of discussing with investors and lenders," the email said.
In April last year Gopinath raised Rs 110 crore from Reliance, most of which is already gone, according to the company insiders. According to a May article published by Forbes Magazine , Deccan 360 had revenues of Rs 43 crore during year ending July 2010 and losses of nearly Rs 200 crore. However, according to Gopinath, the energy-to-telecom behemoth is now reluctant to up its stake in the business, largely due to the fact that it plans on focusing on core sectors such as telecom and retail, which it has identified as more critical to its growth. Further, a raise in stakes will also mean that Reliance will have to assume management control in Deccan 360, a position it does not want to be in.
Hence, the search for a third investor. However, there is no clarity yet that once additional investors are identified, Gopinath and Reliance will exit the venture. The communique also stated that the company is currently working on a deferred salary plan for remaining employees, and as and when funding becomes available, the employees choosing to leave immediately, will be paid their outstanding amounts
"While we have done our best to hold the company with the minimal operations, but could not succeed due to business and funding constraints. Hence, we opted for restructuring and are in the process of discussing with investors and lenders," the email said.
In April last year Gopinath raised Rs 110 crore from Reliance, most of which is already gone, according to the company insiders. According to a May article published by Forbes Magazine , Deccan 360 had revenues of Rs 43 crore during year ending July 2010 and losses of nearly Rs 200 crore. However, according to Gopinath, the energy-to-telecom behemoth is now reluctant to up its stake in the business, largely due to the fact that it plans on focusing on core sectors such as telecom and retail, which it has identified as more critical to its growth. Further, a raise in stakes will also mean that Reliance will have to assume management control in Deccan 360, a position it does not want to be in.
Hence, the search for a third investor. However, there is no clarity yet that once additional investors are identified, Gopinath and Reliance will exit the venture. The communique also stated that the company is currently working on a deferred salary plan for remaining employees, and as and when funding becomes available, the employees choosing to leave immediately, will be paid their outstanding amounts
Air India appeal challenging compensation for air crash dismissed
Ahmedabad: Twenty three years after a gruesome plane crash of 1988 near Ahmedabad, in which 130 persons were reportedly killed, the family of a deceased get relief as Gujarat High Court has dismissed Air India Limited’s appeal challenging an order to pay compensation to them.
The bench comprising Justices Jayant Patel and RM Chhaya has dismissed the airline’s appeal against judgment and decree passed by the trial court in September, 2009. The trial court had ordered the company to pay Rs 7.80 lakh with 9 percent interest to each of families of the deceased.
Air India Limited {which was previously known as National Aviation Company of India Ltd (NACIL)} challenged the trial court’s order on grounds of limitation.
However, the bench said the petition was meritless and deserved to be rejected.
The case concerns the claim filed by legal representatives of deceased Tejraj Jain, who was travelling from Bombay to Ahmedabad on 10 October 1988, by Indian Airlines, run by NACIL. The flight met with an accident near Ahmedabad in which many persons died. Soon after the accident, the airline authorities asked legal heirs of the deceased to supply information and to draw the claim. The company offered to pay Rs. 2 lakhs towards the full and final settlement for death of the deceased. However, the families of the deceased suggested that the sum should be paid subject to the final decision by competent court. As the airline didn’t accept it, the families refused to take the amount offered to them.
The families then approached the high court for recovery of damages as well as challenging the constitutional validity of certain provisions of Carriage by Air Act, 1972. Their petitions were ordered to be converted into civil suits for claim of compensation and were remitted to civil court.
The bench comprising Justices Jayant Patel and RM Chhaya has dismissed the airline’s appeal against judgment and decree passed by the trial court in September, 2009. The trial court had ordered the company to pay Rs 7.80 lakh with 9 percent interest to each of families of the deceased.
Air India Limited {which was previously known as National Aviation Company of India Ltd (NACIL)} challenged the trial court’s order on grounds of limitation.
However, the bench said the petition was meritless and deserved to be rejected.
The case concerns the claim filed by legal representatives of deceased Tejraj Jain, who was travelling from Bombay to Ahmedabad on 10 October 1988, by Indian Airlines, run by NACIL. The flight met with an accident near Ahmedabad in which many persons died. Soon after the accident, the airline authorities asked legal heirs of the deceased to supply information and to draw the claim. The company offered to pay Rs. 2 lakhs towards the full and final settlement for death of the deceased. However, the families of the deceased suggested that the sum should be paid subject to the final decision by competent court. As the airline didn’t accept it, the families refused to take the amount offered to them.
The families then approached the high court for recovery of damages as well as challenging the constitutional validity of certain provisions of Carriage by Air Act, 1972. Their petitions were ordered to be converted into civil suits for claim of compensation and were remitted to civil court.
Low fares for Delhi-Kanpur-Kolkata flight attracts passengers
Kanpur: The low fares had swiftly increased the number of passengers on the Delhi-Kanpur-Kolkata flight.
Though the Delhi-Kanpur-Kolkata flight is just 45 days old and was launched on May 24 at Chakeri Airport, the passenger rush is increasing with each passing day. The important fact being that the number of passengers for Delhi from Kanpur has been substantially contributing to the passenger strength on the Kolkata-Kanpur-Delhi flight and vice versa. The reason for this surge is the lowest air fare of Rs 1,585 between Kanpur and Delhi. The lowest fare for Kanpur-Kolkata stands to be around Rs 5,000.
The data provided by Air India authorities revealed that in last 10 days, around 268 passengers arrived from Delhi and 277 boarded flight No 9802 from Chakeri Airport for reaching Delhi. On Saturday, as many as 48 passengers arrived at Chakeri Airport from Delhi and 53 passengers left for the capital.
Same is the case with the Kanpur-Kolkata journey, where 850 people left for Kolkata from Chakeri Airport and 820 reached Kanpur from there since the launch of the Delhi-Kanpur-Kolkata flight. Also, in the past 45 days, around 2,152 passengers have travelled between Kanpur and New Delhi and vice versa.
Though the Delhi-Kanpur-Kolkata flight is just 45 days old and was launched on May 24 at Chakeri Airport, the passenger rush is increasing with each passing day. The important fact being that the number of passengers for Delhi from Kanpur has been substantially contributing to the passenger strength on the Kolkata-Kanpur-Delhi flight and vice versa. The reason for this surge is the lowest air fare of Rs 1,585 between Kanpur and Delhi. The lowest fare for Kanpur-Kolkata stands to be around Rs 5,000.
The data provided by Air India authorities revealed that in last 10 days, around 268 passengers arrived from Delhi and 277 boarded flight No 9802 from Chakeri Airport for reaching Delhi. On Saturday, as many as 48 passengers arrived at Chakeri Airport from Delhi and 53 passengers left for the capital.
Same is the case with the Kanpur-Kolkata journey, where 850 people left for Kolkata from Chakeri Airport and 820 reached Kanpur from there since the launch of the Delhi-Kanpur-Kolkata flight. Also, in the past 45 days, around 2,152 passengers have travelled between Kanpur and New Delhi and vice versa.
Airport lok adalat settles 213 cases, 20L fine collected
New Delhi: Raj Singh Dhuriya got some unexpected visitors at his Punjab residence last month.
Fourteen years after booking him for carrying a forged resident permit at IGI Airport, a Delhi police team finally apprehended Dhuriya and within weeks, his case was settled at a lok adalat held on Saturday at the airport.
The lok adalat disposed of 213 cases in one day, exceeding the 172 that were settled in a Gujarat court earlier. "We had listed 219 cases to be heard on Saturday. But even 213 is quite an achievement. A total of Rs 20 lakh was collected in fines from offenders.
"Cases all the way from 1997 to 2010 were dealt with," said RA Sanjeev, DCP, IGI Airport.
Most of the cases dealt with on Saturday were those where the accused had pleaded guilty. Sources said they had made a list of possible cases that could be dealt with in the lok adalat and had started sending out summons since the past couple of months.
The IGI Airport police station had 2,157 registered cases towards the end of 2010. In the past seven months 1,390 cases have been settled.
Fourteen years after booking him for carrying a forged resident permit at IGI Airport, a Delhi police team finally apprehended Dhuriya and within weeks, his case was settled at a lok adalat held on Saturday at the airport.
The lok adalat disposed of 213 cases in one day, exceeding the 172 that were settled in a Gujarat court earlier. "We had listed 219 cases to be heard on Saturday. But even 213 is quite an achievement. A total of Rs 20 lakh was collected in fines from offenders.
"Cases all the way from 1997 to 2010 were dealt with," said RA Sanjeev, DCP, IGI Airport.
Most of the cases dealt with on Saturday were those where the accused had pleaded guilty. Sources said they had made a list of possible cases that could be dealt with in the lok adalat and had started sending out summons since the past couple of months.
The IGI Airport police station had 2,157 registered cases towards the end of 2010. In the past seven months 1,390 cases have been settled.
Fly directly to Hyderabad,Patna, Lucknow soon
Indore: The city is poised to get a slew of new air services in the next few months, bringing more options for air travellers here.
After Indigo, now its turn for another low- cost carrier Spice Jet, which will introduce its services from the city. The air company will operate flights for Hyderabad, according to sources.
Need for a south- bound flight has been felt for a long time in the city. Till now there is only one flight for Hyderabad by Jet airways.
With introduction of this new flight, there will be options for the citizens. There are reports that it will be afternoon flight.
The company has decided to include Bombardier plan known for its high speed services and reduces travelling time significantly.
"India has only 36 runways where a Boeing 737 can land. If you want to grow beyond that, you will have to access tier II and III cities and for that you need a different machine," an official from Spice jet airlines said. "With Bombardier Q400s, we will be able to land on 97 runways in India."
The Akash Ganga will start its services for Lucknow and Patna. With introduction of these flights first time city will connect to UP and Bihar via air route. Akash Ganga Airlines, which operates from Uttar Pradesh and Uttarakhand, has been launched with Lucknow as main base
After Indigo, now its turn for another low- cost carrier Spice Jet, which will introduce its services from the city. The air company will operate flights for Hyderabad, according to sources.
Need for a south- bound flight has been felt for a long time in the city. Till now there is only one flight for Hyderabad by Jet airways.
With introduction of this new flight, there will be options for the citizens. There are reports that it will be afternoon flight.
The company has decided to include Bombardier plan known for its high speed services and reduces travelling time significantly.
"India has only 36 runways where a Boeing 737 can land. If you want to grow beyond that, you will have to access tier II and III cities and for that you need a different machine," an official from Spice jet airlines said. "With Bombardier Q400s, we will be able to land on 97 runways in India."
The Akash Ganga will start its services for Lucknow and Patna. With introduction of these flights first time city will connect to UP and Bihar via air route. Akash Ganga Airlines, which operates from Uttar Pradesh and Uttarakhand, has been launched with Lucknow as main base
Relatives angered by federal Air India offer
Vancouver: Relatives of the victims of the Air India tragedy say they are hurt and insulted by a federal government offer to pay $24,000 for each person killed in the June 1985 terrorist attack.
The offer of a one-time ex gratia payment was made at a meeting in Toronto Thursday attended in person and via teleconference by about 40 family members of the 329 bombing victims. Most of the families settled their legal claims for compensation in the early 1990s, according to a government spokesman.
An ex gratia payment is given where no legal obligation exists.
"We are just seething," said Anil Singh Hanse, an Australian whose father Narendra piloted the flight that was brought down by a B.C.made bomb. "This is insulting. Where the hell did they pull this figure from?"
Retired judge John Major suggested some form of payment be made to families in his Air India inquiry report in June 2010, although he made no official recommendation. The $32-million inquiry showed that numerous warning signs of the pending terrorist attack were missed by Canada's security agency and that missteps hampered the subsequent RCMP investigation.
Major also said the families were treated with "administrative disdain" for years by the Canadian government and deserved more than just an apology
The offer of a one-time ex gratia payment was made at a meeting in Toronto Thursday attended in person and via teleconference by about 40 family members of the 329 bombing victims. Most of the families settled their legal claims for compensation in the early 1990s, according to a government spokesman.
An ex gratia payment is given where no legal obligation exists.
"We are just seething," said Anil Singh Hanse, an Australian whose father Narendra piloted the flight that was brought down by a B.C.made bomb. "This is insulting. Where the hell did they pull this figure from?"
Retired judge John Major suggested some form of payment be made to families in his Air India inquiry report in June 2010, although he made no official recommendation. The $32-million inquiry showed that numerous warning signs of the pending terrorist attack were missed by Canada's security agency and that missteps hampered the subsequent RCMP investigation.
Major also said the families were treated with "administrative disdain" for years by the Canadian government and deserved more than just an apology
Flying rats and other air scares cloud India’s aviation industry
New Delhi: Pilots on an Air India flight from Mumbai to Saudi Arabia last August had an unexpected visitor in the cockpit: a rat.
The rodent crawled over the first officer’s leg and disappeared into the plane’s avionics bay. The aircraft arrived safely and was later fumigated.
Two months earlier, during a Pawan Hans helicopter flight in the Indian state of Arunachal Pradesh, a door opened at 2,000 feet and a cabin attendant was sucked out and killed.
Also last summer, a SpiceJet flight from Delhi to Ahmedabad lost contact with air traffic controllers for 10 minutes after it flew through precipitation. And an AirAsia services officer was killed after her arm was severed in a bizarre accident on the ramp leading to a plane.
How common are such safety mishaps? That’s not for the public to know, says an official with India’s airline regulator.
The Directorate General of Civil Aviation in New Delhi has been destroying detailed safety records and, in many cases, keeping only a short description of serious inflight and on-ground security and safety incidents.
The directorate, which oversees India’s surging but recently troubled aviation sector, admits that safety records “prior to the year 2010 have been destroyed.” Bir Singh Rai, an official with the government regulator, made the declaration in a letter last month in response to a Right to Information Act request filed by the Star.
Following his written response to the Star’s information request, Rai specified that only paper records had been destroyed, and that electronic records were still being maintained by the directorate general.
But a review of 17 weeks’ worth of safety records revealed that the directorate general is keeping merely snippets of information about serious safety incidents in weekly incident reports.
Rai initially approved the Star’s request to review safety incident reports in person. He subsequently changed his mind and demanded the Star leave the building, saying documents relating to airline safety in India are secret.
The rodent crawled over the first officer’s leg and disappeared into the plane’s avionics bay. The aircraft arrived safely and was later fumigated.
Two months earlier, during a Pawan Hans helicopter flight in the Indian state of Arunachal Pradesh, a door opened at 2,000 feet and a cabin attendant was sucked out and killed.
Also last summer, a SpiceJet flight from Delhi to Ahmedabad lost contact with air traffic controllers for 10 minutes after it flew through precipitation. And an AirAsia services officer was killed after her arm was severed in a bizarre accident on the ramp leading to a plane.
How common are such safety mishaps? That’s not for the public to know, says an official with India’s airline regulator.
The Directorate General of Civil Aviation in New Delhi has been destroying detailed safety records and, in many cases, keeping only a short description of serious inflight and on-ground security and safety incidents.
The directorate, which oversees India’s surging but recently troubled aviation sector, admits that safety records “prior to the year 2010 have been destroyed.” Bir Singh Rai, an official with the government regulator, made the declaration in a letter last month in response to a Right to Information Act request filed by the Star.
Following his written response to the Star’s information request, Rai specified that only paper records had been destroyed, and that electronic records were still being maintained by the directorate general.
But a review of 17 weeks’ worth of safety records revealed that the directorate general is keeping merely snippets of information about serious safety incidents in weekly incident reports.
Rai initially approved the Star’s request to review safety incident reports in person. He subsequently changed his mind and demanded the Star leave the building, saying documents relating to airline safety in India are secret.
Airport security on alert for human bomb with explosives under skin
New Delhi: If you are a patient and are travelling out of the Delhi airport, be prepared ready for stricter checking. After receiving specific input that a human bomb posing as a patient might try to blow up a plane, security agencies have alerted their staff to double check patients especially those who have undergone surgery recently.
The alert was issued by Ministry of Home Affairs (MHA), which was passed on to security agencies last week. Sources at the Indira Gandhi International Airport (IGIA) said the bomb could be planted under the skin of a passenger through surgery.
"We have sensitised our men to look for passengers who have recently undergone surgery. They have been given a set of questions to ask from the suspect passengers. During the questioning of suspected passengers, it can be judged through his behaviour if he is a human bomb or not," said a source in Central Industrial Security Force (CISF), the force which is responsible for airport security.
Earlier smugglers used to smuggle contraband by planting it under the skin and now the threat is terrorist group might do the same, say experts. "A normal patient would look like a patient and there wouldn't be behavioural changes during questioning. While a human bomb won't be able to answer questions about his surgery comfortably. To identify a human bomb we are dependent on profiling," the source added.
The alert was issued by Ministry of Home Affairs (MHA), which was passed on to security agencies last week. Sources at the Indira Gandhi International Airport (IGIA) said the bomb could be planted under the skin of a passenger through surgery.
"We have sensitised our men to look for passengers who have recently undergone surgery. They have been given a set of questions to ask from the suspect passengers. During the questioning of suspected passengers, it can be judged through his behaviour if he is a human bomb or not," said a source in Central Industrial Security Force (CISF), the force which is responsible for airport security.
Earlier smugglers used to smuggle contraband by planting it under the skin and now the threat is terrorist group might do the same, say experts. "A normal patient would look like a patient and there wouldn't be behavioural changes during questioning. While a human bomb won't be able to answer questions about his surgery comfortably. To identify a human bomb we are dependent on profiling," the source added.
15 mins, 15 flights, 1,500 birds, no bird-hits
Ahmedabad: Saturday morning was probably the most extraordinary day for officials on duty at Sardar Vallabhbhai Patel International Airport (SVPIA) in Ahmedabad.
The city airport, which has been notorious for bird-hits in the past few years, on Saturday witnessed a remarkable coordination by the AAI officials who successfully operated 15 flights by shooing away almost 1,500 birds from the entire runway. Not even a single pilot reported a bird-hit while takeoff or landing.
The flights were operated with a delay of 15 minutes to an hour, after reducing the bird-hit possibility to zero. The delay was welcomed by the pilots and airlines as they were aware of the problems, which would have arisen in case of a hit.
After it stopped raining on Saturday morning, birds descended on the 3.5-km long and 45-metre wide runway to feed on the insects that come out after the rain. The presence of birds in such large numbers, which probably was the biggest bird movement recorded at the airport this year, shocked the AAI officers.
The city airport, which has been notorious for bird-hits in the past few years, on Saturday witnessed a remarkable coordination by the AAI officials who successfully operated 15 flights by shooing away almost 1,500 birds from the entire runway. Not even a single pilot reported a bird-hit while takeoff or landing.
The flights were operated with a delay of 15 minutes to an hour, after reducing the bird-hit possibility to zero. The delay was welcomed by the pilots and airlines as they were aware of the problems, which would have arisen in case of a hit.
After it stopped raining on Saturday morning, birds descended on the 3.5-km long and 45-metre wide runway to feed on the insects that come out after the rain. The presence of birds in such large numbers, which probably was the biggest bird movement recorded at the airport this year, shocked the AAI officers.
New DGCA rule a breather to chopper pilots
New Delhi: Helicopter pilots will not be prosecuted now on if they refuse to fly or undertake unscheduled landings in case of bad weather or an emergency, with the Directorate General of Civil Aviation (DGCA) issuing instructions to this effect.
The DGCA has instructed that "no punitive action would be taken" if there was an unscheduled landing in case of an emergency, like bad weather, is faced by the pilot, official sources said.
In such a situation, the pilot should immediately land the chopper at a "suitable place", they said quoting the instructions.
The DGCA move followed a recommendation by the Parliamentary Standing Committee on Transport, Tourism and Culture that said pilots should be provided "adequate legal protection to decline to fly in absence of mandatory technical or weather clearances."
In its recent report, the committee headed by CPI(M) leader Sitaram Yechury also suggested that "some kind of penal provision may be considered against those putting such pressure on them without clearances."
The DGCA has instructed that "no punitive action would be taken" if there was an unscheduled landing in case of an emergency, like bad weather, is faced by the pilot, official sources said.
In such a situation, the pilot should immediately land the chopper at a "suitable place", they said quoting the instructions.
The DGCA move followed a recommendation by the Parliamentary Standing Committee on Transport, Tourism and Culture that said pilots should be provided "adequate legal protection to decline to fly in absence of mandatory technical or weather clearances."
In its recent report, the committee headed by CPI(M) leader Sitaram Yechury also suggested that "some kind of penal provision may be considered against those putting such pressure on them without clearances."
Nation's tallest ATC tower at Delhi airport
New Delhi: After the biggest terminal and the longest runway, Delhi airport is all set to have the tallest Air Traffic Control (ATC) tower in the country. At 100 metres, the new ATC tower will be much taller than the Qutab Minar (72.5 m) and almost double the airport's existing ATC tower.
The new ATC tower, initially planned to open by mid-2012, will now be commissioned only by November 2013, private airport developer Delhi International Airport Ltd (DIAL) said. DIAL has invited bids for the construction of the new ATC complex and tower.
Expected to cost R350 crore, the new ATC tower will be built at a more centralised location at the airport, so that air traffic controllers can have a clear view of all the three runways, aprons and taxiways.
The present ATC complex and 60 metre high tower was built in 1999 and is at a considerable distance from the third runway built in 2008.
"Even on a clear day, the new runway is not properly visible from the ATC tower," said a senior ATC official who didn't wish to be named.
The new ATC tower, initially planned to open by mid-2012, will now be commissioned only by November 2013, private airport developer Delhi International Airport Ltd (DIAL) said. DIAL has invited bids for the construction of the new ATC complex and tower.
Expected to cost R350 crore, the new ATC tower will be built at a more centralised location at the airport, so that air traffic controllers can have a clear view of all the three runways, aprons and taxiways.
The present ATC complex and 60 metre high tower was built in 1999 and is at a considerable distance from the third runway built in 2008.
"Even on a clear day, the new runway is not properly visible from the ATC tower," said a senior ATC official who didn't wish to be named.
Indian air cargo to Africa increasing
New Delhi: Indian air cargo to Africa is increasing at a steady rate of about 15-20 percent per year, with the country exporting approximately 6,000 tonnes of goods and merchandise by plane to the vast continent every month.
Most of the cargo is transported on African air carriers and some European airlines for the reason that there are practically no Indian airlines that have direct flights from India to African cities.
Almost 55 percent of the air cargo is flown by Africa-owned air companies while the rest is transported by Middle East and European airlines, with the export consignments transiting through a third country while on their onward journey to Africa, according to trade sources.
In earlier years, Indian air exports mainly went to South Africa and the East African region, India's traditional trading partners. But in recent years as exports have increased, Indian products have penetrated new markets in central and western Africa.
Pradeep Dixit, vice president international operations, Allied Aviation International, explained, "About 35 percent of Indian exports go to East Africa, 25 percent is bound for South Africa, another 25 percent goes to Central Africa and 20 percent reaches Central Africa."
Most of the cargo is transported on African air carriers and some European airlines for the reason that there are practically no Indian airlines that have direct flights from India to African cities.
Almost 55 percent of the air cargo is flown by Africa-owned air companies while the rest is transported by Middle East and European airlines, with the export consignments transiting through a third country while on their onward journey to Africa, according to trade sources.
In earlier years, Indian air exports mainly went to South Africa and the East African region, India's traditional trading partners. But in recent years as exports have increased, Indian products have penetrated new markets in central and western Africa.
Pradeep Dixit, vice president international operations, Allied Aviation International, explained, "About 35 percent of Indian exports go to East Africa, 25 percent is bound for South Africa, another 25 percent goes to Central Africa and 20 percent reaches Central Africa."
AI loss zooms to Rs 6,994 cr
New Delhi: Bleeding state-run carrier Air India (AI), burdened with overhead costs, has sunk deeper into losses in 2010-11. The carrier posted a post-tax loss of Rs 6,994 crore against Rs 5,552 crore in the previous fiscal, an increase of nearly Rs 1,500 crore of 26%, according to figures obtained by Hindustan Times from company sources.
While the company hasn't officially announced its results for 2010-11, they were presented to the top management at a meeting in the last week of June. When contacted, AI said the audit for FY 11 was nearly complete.
Pre-tax losses yawned to Rs 7,196 crore in the latest fiscal year from Rs 5,634 crore - a 28% jump.
"This is the time for alarm bells to be loudly rung so as to make all those in government turning a deafening ear to take immediate corrective action," said Jitender Bhargava, a former executive director of AI. "Air India has singularly failed to reap the benefit in a market witnessing double-digit growth."
AI's accumulated losses are estimated to be more than Rs 20,000 crore. The airline has 40,000 employees with a employee-aircraft ratio of 243:1, compared with an industry average of 150:
While the company hasn't officially announced its results for 2010-11, they were presented to the top management at a meeting in the last week of June. When contacted, AI said the audit for FY 11 was nearly complete.
Pre-tax losses yawned to Rs 7,196 crore in the latest fiscal year from Rs 5,634 crore - a 28% jump.
"This is the time for alarm bells to be loudly rung so as to make all those in government turning a deafening ear to take immediate corrective action," said Jitender Bhargava, a former executive director of AI. "Air India has singularly failed to reap the benefit in a market witnessing double-digit growth."
AI's accumulated losses are estimated to be more than Rs 20,000 crore. The airline has 40,000 employees with a employee-aircraft ratio of 243:1, compared with an industry average of 150:
Airlines may face trouble in ensuring better connectivity to smaller towns
New Delhi: The aviation ministry is reworking capacity distribution norms for airlines to ensure better connectivity for smaller cities and towns, but the move could spell problems for carriers not geared for small airports.
Experts say that while the new route dispersal guidelines, which require airlines to increase flights to small cities and towns, will boost air transport infrastructure, they can also balloon costs for airlines that don't have smaller aircraft and prefer operating only on profitable metro routes.
"In the new guidelines, we are trying to expand Category I by adding to it small cities from Category III, say Ahmedabad for example, which have good connectivity and demand," a senior civil aviation ministry official said.
The new route dispersal guidelines are awaiting the aviation minister's approval and could be cleared within a few weeks. Non-compliance could lead to an airline's licence being scrapped. Route dispersal guidelines sort out domestic routes into three categories.
Category I represents the profitable routes, including major cities such as Mumbai, New Delhi, Bangalore, Hyderabad, Kolkata and Chennai and Trivandrum.
Category II includes the north-eastern region, Jammu and Kashmir, Lakshadweep and the Andamans. Small cities such as Coimbatore, Kochi and Pune fall under category III.
Airlines have to deploy at least 10% of their capacity on Category I metro routes on Category II routes, and at least 50% on Category III routes.
Experts say that while the new route dispersal guidelines, which require airlines to increase flights to small cities and towns, will boost air transport infrastructure, they can also balloon costs for airlines that don't have smaller aircraft and prefer operating only on profitable metro routes.
"In the new guidelines, we are trying to expand Category I by adding to it small cities from Category III, say Ahmedabad for example, which have good connectivity and demand," a senior civil aviation ministry official said.
The new route dispersal guidelines are awaiting the aviation minister's approval and could be cleared within a few weeks. Non-compliance could lead to an airline's licence being scrapped. Route dispersal guidelines sort out domestic routes into three categories.
Category I represents the profitable routes, including major cities such as Mumbai, New Delhi, Bangalore, Hyderabad, Kolkata and Chennai and Trivandrum.
Category II includes the north-eastern region, Jammu and Kashmir, Lakshadweep and the Andamans. Small cities such as Coimbatore, Kochi and Pune fall under category III.
Airlines have to deploy at least 10% of their capacity on Category I metro routes on Category II routes, and at least 50% on Category III routes.
Civil Aviation authority on anvil: DGCA
Thiruvananthapuram: Formation of a Civil Aviation Authority to address issues of domestic aviation sector is under Centre's consideration, Director General of Civil Aviation E K Bharathbhushan said.
"Similar set up exists in many foreign countries including the US, Sri Lanka and Pakistan. Discussions are on to form such an authority in India and the proposal is under consideration of the Civil Aviation Ministry," Bharathbhushan told a meet-the-press programme here.
In such a scenario, the present DGCA will merge with the Civil Aviation Authority, he said.
On expansion of airports in Kerala,he said next phase of Kozhikode airport at Karippur required 137 acres of land, which the state government was expected to acquire.
The proposal to develop an airport at Pathanamthitta, mooted as an NRK (Non-Residents Keralites) initiative, had not been given approval by DGCA following objections from Defence,he said.
The country's civil aviation sector, which has made a remarkable comeback after the global financial crunch, is witnessing unprecedented growth these days, Bharathbhushan said.
The sector had crossed 50 million mark in terms of the number of domestic passengers last year and registered a 24 per cent growth this year till July, he said.
"Similar set up exists in many foreign countries including the US, Sri Lanka and Pakistan. Discussions are on to form such an authority in India and the proposal is under consideration of the Civil Aviation Ministry," Bharathbhushan told a meet-the-press programme here.
In such a scenario, the present DGCA will merge with the Civil Aviation Authority, he said.
On expansion of airports in Kerala,he said next phase of Kozhikode airport at Karippur required 137 acres of land, which the state government was expected to acquire.
The proposal to develop an airport at Pathanamthitta, mooted as an NRK (Non-Residents Keralites) initiative, had not been given approval by DGCA following objections from Defence,he said.
The country's civil aviation sector, which has made a remarkable comeback after the global financial crunch, is witnessing unprecedented growth these days, Bharathbhushan said.
The sector had crossed 50 million mark in terms of the number of domestic passengers last year and registered a 24 per cent growth this year till July, he said.
Budget carrier SpiceJet delays launch of regional operations
Mumbai: Budget carrier SpiceJet will delay the launch of its regional operations by a month as it awaits clearance of $250-million funding from the RBI for its Bombardier Q400 aircraft, said a top official of the company.
The airline was slated to start regional operations from July 15 using the Bombardier aircraft. India's fourth largest carrier by market share has tied up with Export Development Canada (EDC) for funding all 15 of its Bombardier Q400s from the Canadian firm Bombardier with a capacity of 70 seats.
"We were not able to close commercial terms with EDC on time as we were negotiating the best agreement with them. The clearance from the RBI has been sought only 10 days ago and the launch of operations will depend on when the clearance comes," said SpiceJet CEO Neil Mills.
"This has lead to a delay of about three to four weeks and now we are targeting the launch of our regional operations by the end of August instead." Dismissing any hurdles faced by the no- frills carrier in getting approvals from the RBI, the SpiceJet honcho said it is a normal regulatory procedure. "We are doing nothing exceptional so as to delay a clearance from the RBI," he said.
The airline was slated to start regional operations from July 15 using the Bombardier aircraft. India's fourth largest carrier by market share has tied up with Export Development Canada (EDC) for funding all 15 of its Bombardier Q400s from the Canadian firm Bombardier with a capacity of 70 seats.
"We were not able to close commercial terms with EDC on time as we were negotiating the best agreement with them. The clearance from the RBI has been sought only 10 days ago and the launch of operations will depend on when the clearance comes," said SpiceJet CEO Neil Mills.
"This has lead to a delay of about three to four weeks and now we are targeting the launch of our regional operations by the end of August instead." Dismissing any hurdles faced by the no- frills carrier in getting approvals from the RBI, the SpiceJet honcho said it is a normal regulatory procedure. "We are doing nothing exceptional so as to delay a clearance from the RBI," he said.
Boeing offers $45-m compensation to AI
New Delhi: American aircraft manufacturer Boeing Company has offered an interim compensation of $45 million in cash to Air India on account of delay in delivery of the B787 Dreamliner.
The compensation is mere a 5% of the $900 million the state-owned carrier had demanded from the Seattle-based company. An airline source said Boeing has offered $10 million in credit over and above the cash part. Air India has communicated the Boeing proposal to the government.
“The issue is between the airline and Boeing. Air India has communicated to us about the compensation Boeing has offered. Our view is that Air India should not settle for interim compensation. After three years of delay, Boeing is offering just a total of $55 million leaving the issue for unending negotiations,” a top aviation ministry official told FE
The compensation is mere a 5% of the $900 million the state-owned carrier had demanded from the Seattle-based company. An airline source said Boeing has offered $10 million in credit over and above the cash part. Air India has communicated the Boeing proposal to the government.
“The issue is between the airline and Boeing. Air India has communicated to us about the compensation Boeing has offered. Our view is that Air India should not settle for interim compensation. After three years of delay, Boeing is offering just a total of $55 million leaving the issue for unending negotiations,” a top aviation ministry official told FE
Saturday, July 2, 2011
India hopes to fly indigenous 90-seater aircraft in 5 years
India hopes to test fly its first indigenously developed 90 seater regional transport aircraft in the next five years, a top official has said.
The 90-seater RTA will be developed as a team India initiative led by CSIR-National Aerospace Laboratory (NAL), which could also see some global participation, CSIR Director General Samir Brahmachari said here today.
A committee headed by former ISRO chairman G Madhavan Nair submitted a feasibility study to Council of Scientific and Industrial Research (CSIR) recently in this regard. The Committee, which had top bureaucrats and aerospace scientists as members, has suggested a two-pronged approach -- Design Development and Production Unit -- to realise the objective.
"The Committee has come to a conclusion that the RTA should be a narrow body turbo fan aircraft with a seating capacity for 70-90 persons and stretchable to 80-100 persons," Brahmachari said.
The total project cost is estimated at Rs 7,700 crore -- Rs 4,500 crore for the design and development stage and Rs 3,200 crore for the production unit, he said. The Nair Committee has also suggested that the government pick up the entire tab for the design and development state and has favoured a joint venture route for setting up the production facility.
The panel has set a target of six-eight years for completion of the development and production stage of the project. "We hope to have the prototype ready in the next five years assuming that the project takes off in 2012," Brahmachari said
The 90-seater RTA will be developed as a team India initiative led by CSIR-National Aerospace Laboratory (NAL), which could also see some global participation, CSIR Director General Samir Brahmachari said here today.
A committee headed by former ISRO chairman G Madhavan Nair submitted a feasibility study to Council of Scientific and Industrial Research (CSIR) recently in this regard. The Committee, which had top bureaucrats and aerospace scientists as members, has suggested a two-pronged approach -- Design Development and Production Unit -- to realise the objective.
"The Committee has come to a conclusion that the RTA should be a narrow body turbo fan aircraft with a seating capacity for 70-90 persons and stretchable to 80-100 persons," Brahmachari said.
The total project cost is estimated at Rs 7,700 crore -- Rs 4,500 crore for the design and development stage and Rs 3,200 crore for the production unit, he said. The Nair Committee has also suggested that the government pick up the entire tab for the design and development state and has favoured a joint venture route for setting up the production facility.
The panel has set a target of six-eight years for completion of the development and production stage of the project. "We hope to have the prototype ready in the next five years assuming that the project takes off in 2012," Brahmachari said
Flying high with non-food biofuel
Mumbai: A couple of days earlier, KLM Royal Dutch became the first airline in the world to operate a commercial flight, carrying 171 passengers, on bio-kerosene produced from used cooking fuel oil.
Boeing was also closely involved in making this possible. KLM said it would be operating at least 200 flights to Paris on bio-kerosene in September.
KLM has highlighted a new trend. Aviation biofuels have been used in test flights by many airlines, seeking alternatives to fossil fuels in a bid to reduce costs. The aim is to halve emissions by 2050, compared to 2005 levels. The airlines include Air France, Virgin Atlantic, Lufthansa, JAL, Aeromexico, TAROM, Continental Airlines and Boeing.
The European aviation industry plans to achieve its goal by targeting two million tonnes of bio-kerosene use per year by 2020, and the International Air Transport Association is aiming for a six per cent mix of biofuels by 2020. Closer home, Kingfisher Airlines last year entered into a three-year agreement with Anna University, Chennai, for a research collaboration programme to explore alternative energy sources. The two sides are expected to work closely to develop biofuel for use in aircraft and ground vehicles used at airports.
Conventional jet fuel is made from kerosene (also called paraffin), which comes from crude oil and various other chemicals. Bio-kerosene is kerosene derived from biomass (living matter). It typically refers to organic material such as plants or animal fat, including agricultural and municipal waste products, but excluding food products. Biodiesel can be made from animal fats, including tallow, lard, poultry fat and fish oil. Bioethanol is made by fermenting the sugar components of plant materials and is made mostly from sugar and starch crops. It is widely used in the US and in Brazil.
Biofuel development in India centres primarily around jatropha plant seeds. Jatropha oil has been used in India for several decades as biodiesel and can be used directly after extraction (without refining) in diesel generators and engines. According to the International Energy Agency, biofuels have the potential to meet at least a quarter of world demand for transportation fuel by 2050. The Indian government identified 400,000 square km (98 million acres) where jatropha can be grown.
Boeing was also closely involved in making this possible. KLM said it would be operating at least 200 flights to Paris on bio-kerosene in September.
KLM has highlighted a new trend. Aviation biofuels have been used in test flights by many airlines, seeking alternatives to fossil fuels in a bid to reduce costs. The aim is to halve emissions by 2050, compared to 2005 levels. The airlines include Air France, Virgin Atlantic, Lufthansa, JAL, Aeromexico, TAROM, Continental Airlines and Boeing.
The European aviation industry plans to achieve its goal by targeting two million tonnes of bio-kerosene use per year by 2020, and the International Air Transport Association is aiming for a six per cent mix of biofuels by 2020. Closer home, Kingfisher Airlines last year entered into a three-year agreement with Anna University, Chennai, for a research collaboration programme to explore alternative energy sources. The two sides are expected to work closely to develop biofuel for use in aircraft and ground vehicles used at airports.
Conventional jet fuel is made from kerosene (also called paraffin), which comes from crude oil and various other chemicals. Bio-kerosene is kerosene derived from biomass (living matter). It typically refers to organic material such as plants or animal fat, including agricultural and municipal waste products, but excluding food products. Biodiesel can be made from animal fats, including tallow, lard, poultry fat and fish oil. Bioethanol is made by fermenting the sugar components of plant materials and is made mostly from sugar and starch crops. It is widely used in the US and in Brazil.
Biofuel development in India centres primarily around jatropha plant seeds. Jatropha oil has been used in India for several decades as biodiesel and can be used directly after extraction (without refining) in diesel generators and engines. According to the International Energy Agency, biofuels have the potential to meet at least a quarter of world demand for transportation fuel by 2050. The Indian government identified 400,000 square km (98 million acres) where jatropha can be grown.
Air China expands India operations
Mumbai: Air China, which operates on the Delhi and Bangalore routes, is set to expand its services to India with a Beijing-Mumbai flight from September. The airline will be the first among the three Chinese airlines operating in India to touchdown at the Mumbai airport.
The only direct airlink between Mumbai and China is Air India's tri-weekly flights to Shanghai. Jet Airways had launched flights from Mumbai to San Francisco via Shanghai a few years ago, but the service was suspended following losses. Jet Chairman Naresh Goyal had recently said the airline was looking to introduce flights to Shanghai and Beijing as part of its expansion plans.
Sources familiar with Air China's plan said it hopes to tap the growing business and leisure traffic on the route. The Mumbai-Beijing flight will stop over at Chengdu. The airline will be using a narrow body airbus A319 aircraft with a two-class layout. An airbus A319, can be fitted with 122-145 seats depending on the class configuration.
“Currently most people flying to Beijing fly via Delhi or transit from Bangkok or Hong Kong. China has emerged as a key venue for trade fairs and exhibitions. Also, a large number of Indian traders and importers travel to China. Leisure travel to China has also picked up,” said Iqbal Mulla, treasurer of Travel Agents Association of India
The only direct airlink between Mumbai and China is Air India's tri-weekly flights to Shanghai. Jet Airways had launched flights from Mumbai to San Francisco via Shanghai a few years ago, but the service was suspended following losses. Jet Chairman Naresh Goyal had recently said the airline was looking to introduce flights to Shanghai and Beijing as part of its expansion plans.
Sources familiar with Air China's plan said it hopes to tap the growing business and leisure traffic on the route. The Mumbai-Beijing flight will stop over at Chengdu. The airline will be using a narrow body airbus A319 aircraft with a two-class layout. An airbus A319, can be fitted with 122-145 seats depending on the class configuration.
“Currently most people flying to Beijing fly via Delhi or transit from Bangkok or Hong Kong. China has emerged as a key venue for trade fairs and exhibitions. Also, a large number of Indian traders and importers travel to China. Leisure travel to China has also picked up,” said Iqbal Mulla, treasurer of Travel Agents Association of India
Distance between planes in flight reduced
Chennai: The distance between two airplanes in flight has been reduced from 80 nautical miles to 50 in the southern region owing to increasing traffic. This reduction will also help save fuel.
The Airports Authority of India (AAI) on Friday introduced a Reduced Horizontal Separation (RHS) standard between aircraft on two major international routes crisscrossing the Bay of Bengal – Arabian Sea region following guidelines of International Civil Aviation Organization (ICAO).
According to AAI, the decision is following a requirement to enhance the utility of existing air space considering the increasing air traffic.
The new change in RHS will allow aircraft to fly in 50 nautical mile distance in the region against the previous 80 nautical mile minimum separation. The reduced separation will help to save at least 1.2 tonnes of fuel per flight and reduce 3.6 tonnes of carbon emissions.
The Airports Authority of India (AAI) on Friday introduced a Reduced Horizontal Separation (RHS) standard between aircraft on two major international routes crisscrossing the Bay of Bengal – Arabian Sea region following guidelines of International Civil Aviation Organization (ICAO).
According to AAI, the decision is following a requirement to enhance the utility of existing air space considering the increasing air traffic.
The new change in RHS will allow aircraft to fly in 50 nautical mile distance in the region against the previous 80 nautical mile minimum separation. The reduced separation will help to save at least 1.2 tonnes of fuel per flight and reduce 3.6 tonnes of carbon emissions.
Make way for Airbus A-380
A medical emergency has proved once again that the new airports being built in India are capable of handling the world's largest commercial jetliner — the Airbus A-380. Recently an Emirates A-380 aircraft, while on a scheduled flight from Sydney to Dubai, made an emergency landing at Hyderabad airport. This was the fourth instance of the A-380 landing and taking off safely from Indian airports.
All the A-380 flights into India have been special flights, but the largest commercial aircraft has landed and taken off from three different airports. In 2007, Airbus brought the aircraft into Delhi as a special flight for Kingfisher Airlines; the plane then went to Mumbai. The following year the aircraft landed in Hyderabad to take part in the maiden edition of the Hyderabad air show. In fact, at that time the aircraft landed at the now defunct Begumpet airport where the air show was held and then took a short flight to the newly opened Shamshahbad airport before departing for its home base in France.
Yet, Indian authorities have not given permission to global airlines to operate the A-380 to India as part of their scheduled operations. And this when data from Airbus show that the A-380 operates to 11 of the top 15 international airports including in the Asia-Pacific region at Hong Kong, Singapore, Tokyo, Seoul and Bangkok. Besides it operates to Beijing, Auckland and Melbourne.
Currently, the Dubai-based Emirates, German carrier Lufthansa and Singapore Airlines are said to be interested in operating the A-380 into India.
All the A-380 flights into India have been special flights, but the largest commercial aircraft has landed and taken off from three different airports. In 2007, Airbus brought the aircraft into Delhi as a special flight for Kingfisher Airlines; the plane then went to Mumbai. The following year the aircraft landed in Hyderabad to take part in the maiden edition of the Hyderabad air show. In fact, at that time the aircraft landed at the now defunct Begumpet airport where the air show was held and then took a short flight to the newly opened Shamshahbad airport before departing for its home base in France.
Yet, Indian authorities have not given permission to global airlines to operate the A-380 to India as part of their scheduled operations. And this when data from Airbus show that the A-380 operates to 11 of the top 15 international airports including in the Asia-Pacific region at Hong Kong, Singapore, Tokyo, Seoul and Bangkok. Besides it operates to Beijing, Auckland and Melbourne.
Currently, the Dubai-based Emirates, German carrier Lufthansa and Singapore Airlines are said to be interested in operating the A-380 into India.
Airports Authority of India seeks funds to keep pace with growth
New Delhi: After the announcement of major fleet expansion by domestic airlines at the Paris Air Show, India's airport developer Airports Authority of India (AAI) is desperately seeking more funds to keep pace with the robust growth that is expected to take place in the sector in the next five years.
AAI has sought additional funding to keep pace with the fleet and traffic expansion expected in India over the next few years. AAI, which invested around Rs 1,200 crore in modernisation projects last year, is working on 14 greenfield airports in India, which have been granted in-principle approval.
Airline companies from India have ordered one-third of the total airplane orders placed during the Paris Air Show last week, with IndiGo finalising orders for 180 jets and GoAir for 72 Airbus jets. Jet Airways has placed orders for 49 aircraft while low-cost carrier SpiceJet had signed a deal with Boeing to acquire 30 Boeing 737 at an estimated value of $2.7 billion.
India's airlines have placed orders worth $40 billion, but aviation experts have pointed out that poor infrastructure, debt, high fuel taxes and rising interest rates would be disturbing for the airline industry in India. Last year, out of its total expenditure of Rs 2,700 crore, AAI spent Rs 1,200 crore on face-lifting of the non- metro airports. The AAI has already disclosed plans to borrow Rs 900 crore this year and Rs 800 crore next year to fund the upgradation of 10 non-metro airports out of the total 35 such airports.
The AAI had raised about Rs 550 crore last year via bank loans and guarantees but was not allowed to issue bonds by the finance ministry. It is also exploring funding from the World Bank.
AAI has sought additional funding to keep pace with the fleet and traffic expansion expected in India over the next few years. AAI, which invested around Rs 1,200 crore in modernisation projects last year, is working on 14 greenfield airports in India, which have been granted in-principle approval.
Airline companies from India have ordered one-third of the total airplane orders placed during the Paris Air Show last week, with IndiGo finalising orders for 180 jets and GoAir for 72 Airbus jets. Jet Airways has placed orders for 49 aircraft while low-cost carrier SpiceJet had signed a deal with Boeing to acquire 30 Boeing 737 at an estimated value of $2.7 billion.
India's airlines have placed orders worth $40 billion, but aviation experts have pointed out that poor infrastructure, debt, high fuel taxes and rising interest rates would be disturbing for the airline industry in India. Last year, out of its total expenditure of Rs 2,700 crore, AAI spent Rs 1,200 crore on face-lifting of the non- metro airports. The AAI has already disclosed plans to borrow Rs 900 crore this year and Rs 800 crore next year to fund the upgradation of 10 non-metro airports out of the total 35 such airports.
The AAI had raised about Rs 550 crore last year via bank loans and guarantees but was not allowed to issue bonds by the finance ministry. It is also exploring funding from the World Bank.
Poor infrastructure hampers India aircargo growth
India’s airport infrastucture must improve, with more dedicated cargo terminals, for the country’s airfreight sector to develop, reports The Hindu Business Online.
A lack of onsite storage facilities is the biggest challenge for India’s air cargo growth, Cathay Pacific Cargo told the publication.
“Warehouse infrastructure is a big problem. It takes five-six days, on an average, for trucks to reach the warehouse in Delhi. This kills the time advantage that air cargo gives,” said Ashish Kapur, regional manager, Cargo, Cathay Pacific Cargo.
“In more mature markets there are private bonded warehouses with customs checks. That is what we need here. Some work is happening in Chennai but it is not enough,”
Recent aircargo volume growth at Delhi and Mumbai airports highlights what a modern terminal can do for the air cargo sector, the report said.
Aircargo traffic has grown by some 40 per cent at Delhi airport since modernisation work at its cargo terminal began in 2009.
A lack of onsite storage facilities is the biggest challenge for India’s air cargo growth, Cathay Pacific Cargo told the publication.
“Warehouse infrastructure is a big problem. It takes five-six days, on an average, for trucks to reach the warehouse in Delhi. This kills the time advantage that air cargo gives,” said Ashish Kapur, regional manager, Cargo, Cathay Pacific Cargo.
“In more mature markets there are private bonded warehouses with customs checks. That is what we need here. Some work is happening in Chennai but it is not enough,”
Recent aircargo volume growth at Delhi and Mumbai airports highlights what a modern terminal can do for the air cargo sector, the report said.
Aircargo traffic has grown by some 40 per cent at Delhi airport since modernisation work at its cargo terminal began in 2009.
IndiGo will kickstart international ops with Delhi-Dubai flight
Budget carrier IndiGo Airlines, which signed a $16-billion deal with Airbus to buy 180 aircraft, plans to start international operations from September 1. In an interview with ET Now, IndiGo President Aditya Ghosh speaks to ET on the company's growth strategy and industry demand going ahead. Excerpts:
When will delivery for the 180 aircraft start?
We have ordered 180 aircraft, of which 150 will be the new Airbus A320 NEO. Delivery for these will start from 2015 and go on until 2024. Our existing order of 100 aircraft comes to an end in 2015. It will give us commonality of fleet. Also, we have chosen the Pratt & Whitney engines, which will help us burn 12-15% less fuel. We also have 50% improvement in emissions. Together, I think it will take IndiGo to the next generation four years from now.
How do you plan to finance the deal?
It will be a mix of operating and financing leasing, the same way we had funded our 100 aircraft buy six years ago.
What is IndiGo's plan on international routes? Which routes are you targeting?
We will start international operations on September 1. Our very first flight will be Delhi-Dubai. We will have flights from Delhi to Singapore and Bangkok. We will also connect Mumbai to Dubai and Bangkok. We also have plans to connect Mumbai to Muscat and Singapore.
When will delivery for the 180 aircraft start?
We have ordered 180 aircraft, of which 150 will be the new Airbus A320 NEO. Delivery for these will start from 2015 and go on until 2024. Our existing order of 100 aircraft comes to an end in 2015. It will give us commonality of fleet. Also, we have chosen the Pratt & Whitney engines, which will help us burn 12-15% less fuel. We also have 50% improvement in emissions. Together, I think it will take IndiGo to the next generation four years from now.
How do you plan to finance the deal?
It will be a mix of operating and financing leasing, the same way we had funded our 100 aircraft buy six years ago.
What is IndiGo's plan on international routes? Which routes are you targeting?
We will start international operations on September 1. Our very first flight will be Delhi-Dubai. We will have flights from Delhi to Singapore and Bangkok. We will also connect Mumbai to Dubai and Bangkok. We also have plans to connect Mumbai to Muscat and Singapore.
Glideapth to focus on cargo; in talks with MIDC for Nagpur hub
Mumbai: New Zealand-based aviation technology firm Glidepath today said it is in talks with the Maharashtra Industrial Development Corporation (MIDC) for a contract for baggage handling and airport security systems at the proposed Nagpur aircargo hub and said its future focus in the country will be cargo terminals.
"..We are at the preliminary discussion with the MIDC for bagging the contract for installing baggage and security systems at the proposed air cargo hub at Nagpur," Glidepath sales manger for SAARC region, Rajesh Karla told PTI here. Karla is part of the New Zealand trade and business delegation accompanying the visiting premier John Key. Karla also said they are in touch with the Airports Authority of India, and the two leading private airport operators - GMR, that operates the Delhi and Hyderabad airports, and GVK which runs the Mumbai airport, for more business orders. Glidepath, which has just completed the baggage and security systems installation at the cargo terminal of the Hyderabad airport, said it has just set up its first India office in Mumbai. Glidepath has already installed its systems at the arrival terminals of seven airports - Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Kochi, and Indore
"..We are at the preliminary discussion with the MIDC for bagging the contract for installing baggage and security systems at the proposed air cargo hub at Nagpur," Glidepath sales manger for SAARC region, Rajesh Karla told PTI here. Karla is part of the New Zealand trade and business delegation accompanying the visiting premier John Key. Karla also said they are in touch with the Airports Authority of India, and the two leading private airport operators - GMR, that operates the Delhi and Hyderabad airports, and GVK which runs the Mumbai airport, for more business orders. Glidepath, which has just completed the baggage and security systems installation at the cargo terminal of the Hyderabad airport, said it has just set up its first India office in Mumbai. Glidepath has already installed its systems at the arrival terminals of seven airports - Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Kochi, and Indore
Aviation ministry gets sway over airport regulator
New Delhi: In a move that could have far reaching implications on India’s fast growing aviation sector, the ministry of law and justice has given an opinion reasserting the supremacy of the aviation ministry over the airport regulator on policy issues.
The Airport Economic Regulatory Authority (Aera) was set up in 2009 to regulate tariff for aeronautical services provided at major airports in India and determine other airport charges. Aera is in the process of drafting a tariff structure for airports. The latest advice means that the ministry will have a greater say on determination of airport charges.
The law department’s advice brings to an end the bitter turf war between the ministry and the Aera that began after theregulator had sought and received an opinion from the additional attorney- general last November that the powers of the central government to issue directions to Aera was not “unbridled” and was restricted to the subjects that are “in the interest of sovereignty and integrity of India, the security of the state, friendly relations with foreign states, public order, decency or morality.”
However, the law ministry has now said: “The Aera Act gives the government an independent and additional power to issue directions on subject of policy”. Aera chief Yashwant Bhave declined comment on the issue.
The Airport Economic Regulatory Authority (Aera) was set up in 2009 to regulate tariff for aeronautical services provided at major airports in India and determine other airport charges. Aera is in the process of drafting a tariff structure for airports. The latest advice means that the ministry will have a greater say on determination of airport charges.
The law department’s advice brings to an end the bitter turf war between the ministry and the Aera that began after theregulator had sought and received an opinion from the additional attorney- general last November that the powers of the central government to issue directions to Aera was not “unbridled” and was restricted to the subjects that are “in the interest of sovereignty and integrity of India, the security of the state, friendly relations with foreign states, public order, decency or morality.”
However, the law ministry has now said: “The Aera Act gives the government an independent and additional power to issue directions on subject of policy”. Aera chief Yashwant Bhave declined comment on the issue.
Airport expansion delay to cost dear
Chennai: The expansion and modernization works at Chennai airport were delayed by a year because the huge quantity of rocks in the substrata had to be blasted in a controlled manner, said Sitaram Yechury on Wednesday. Yechury is chairman of the nine-member parliamentary standing committee on transport, tourism and culture that reviewed the project. "There is going to be an escalation in cost due to the delay and due to inflation. But we will not allow the Airports Authority of India (AAI) to pass on the burden to the passengers.
The AAI should go in for loans and complete the project without further delays," he said hinting that the committee would oppose any move to slap user development fee (UDF) on passengers. Yechuri also said that "the AAI is confident of completing the project by December this year or January next year. We want the airport to be of top quality." A senior AAI official said the escalation in cost would be minor. Other officials apprised the committee that 76% of the project was completed. All electrical works, including construction of a sub-station, were over. Airport expansion works include construction of two new terminals, a flyover connecting the terminals, power substations, car park and other ancillary works. In a statement, the AAI said the standing committee had expressed satisfaction over the quality of the works in spite of the constraints faced because they were being carried out in a brown field (functional) airport.
The AAI should go in for loans and complete the project without further delays," he said hinting that the committee would oppose any move to slap user development fee (UDF) on passengers. Yechuri also said that "the AAI is confident of completing the project by December this year or January next year. We want the airport to be of top quality." A senior AAI official said the escalation in cost would be minor. Other officials apprised the committee that 76% of the project was completed. All electrical works, including construction of a sub-station, were over. Airport expansion works include construction of two new terminals, a flyover connecting the terminals, power substations, car park and other ancillary works. In a statement, the AAI said the standing committee had expressed satisfaction over the quality of the works in spite of the constraints faced because they were being carried out in a brown field (functional) airport.
Ministry set to overrule CAG, okay DIAL joint ventures
New Delhi: The civil aviation ministry has decided to overrule the objections of the Comptroller and Auditor General (CAG) on GMR's Delhi Airport forming joint venture companies in areas like retail and cargo to enhance its revenues from non-aeronautical streams.
The CAG had asked the ministry to examine the entire issue of Delhi International Airport Ltd (DIAL) forming such JVs as it could lead to loss of revenue for the Airports Authority of India. The agreement between DIAL and AAI mandates the former to share 46% of its annual revenue with the latter.
The apprehension arose because as far as operation and maintenance of airport is concerned the revenue would be shared between GMR and AAI in proportion to their equity stake. But in case of other JVs of DIAL there would be a third party also so revenue of AAI could come down.
Sources said that the civil aviation ministry has brushed aside such apprehensions after seeking the opinion of the attorney general, which states that there's no clause which refrains DIAL from setting up such JVs.
However, the ministry is proposing to specifically lay down the areas where such partnerships can be entered into
The CAG had asked the ministry to examine the entire issue of Delhi International Airport Ltd (DIAL) forming such JVs as it could lead to loss of revenue for the Airports Authority of India. The agreement between DIAL and AAI mandates the former to share 46% of its annual revenue with the latter.
The apprehension arose because as far as operation and maintenance of airport is concerned the revenue would be shared between GMR and AAI in proportion to their equity stake. But in case of other JVs of DIAL there would be a third party also so revenue of AAI could come down.
Sources said that the civil aviation ministry has brushed aside such apprehensions after seeking the opinion of the attorney general, which states that there's no clause which refrains DIAL from setting up such JVs.
However, the ministry is proposing to specifically lay down the areas where such partnerships can be entered into
AI needs Rs 43,255 cr to stay afloat’
New Delhi: The government may soon have to decide whether it can afford to keep national carrier Air India (AI) alive. The airline will require an equity support of Rs 43,255 crore over next 10 years to keep flying, according to a new revival plan prepared by SBI Caps. Out of this, Rs 8,372 crore is required in 2011-12— Rs 6,600 crore to meet immediate requirements and Rs 1,772 crore to pay back aircraft loans.
While AI has liabilities of over Rs 47,000 crore at present, it is on the verge of defaulting on aircraft loan payment too. Out of Rs 43,255 crore equity support, Rs 6,600 crore is required upfront; Rs 6,071 crore to bridge cash deficit till FY18 and Rs 30,584 crore for paying back guaranteed aircraft loans till 2021.
Aviation ministry sources say they are unlikely to request the government for Rs 43,255 crore equity support. "We have to take a call on fleet size by deciding on the 27 Boeing 787 Dreamliners ordered whose deliveries have not begun. We are likely to seek Rs 3,000 crore every year for AI over next 10 years," said sources.
Considering the poor health of the airline due to questionable decisions of UPA-1 to order 111 new planes worth almost Rs 50,000 crore for an airline that had an equity base of Rs 145 crore then and merger of AI with Indian Airlines, there's no light at the end of the tunnel for AI in ashort period of time despite the projected infusion. The revised turnaround plan projects that the airline will have a negative net worth and make losses till 2017-18
While AI has liabilities of over Rs 47,000 crore at present, it is on the verge of defaulting on aircraft loan payment too. Out of Rs 43,255 crore equity support, Rs 6,600 crore is required upfront; Rs 6,071 crore to bridge cash deficit till FY18 and Rs 30,584 crore for paying back guaranteed aircraft loans till 2021.
Aviation ministry sources say they are unlikely to request the government for Rs 43,255 crore equity support. "We have to take a call on fleet size by deciding on the 27 Boeing 787 Dreamliners ordered whose deliveries have not begun. We are likely to seek Rs 3,000 crore every year for AI over next 10 years," said sources.
Considering the poor health of the airline due to questionable decisions of UPA-1 to order 111 new planes worth almost Rs 50,000 crore for an airline that had an equity base of Rs 145 crore then and merger of AI with Indian Airlines, there's no light at the end of the tunnel for AI in ashort period of time despite the projected infusion. The revised turnaround plan projects that the airline will have a negative net worth and make losses till 2017-18
Global air passenger traffic up 7 percent in May
New Delhi: The global airlines association on Thursday reported an increase of 6.8 percent in international passenger traffic for May this year, compared to the like period of 2010.
According to the International Air Transport Association (IATA), the positive passenger growth in May has helped in reducing pressure on profits in the high fuel prices environment, but freight segment has continued to be in a slump, with a downfall of 4 percent.
"This (passenger traffic) is 4 percent higher than the beginning of the year, whereas freight traffic has showed a drop of 4 percent against the post-recession peak of the re-stocking cycle in May 2010," IATA said in a statement.
The statement said that India's domestic demand was robust at 13.8 percent in May as compared to previous-year levels with a capacity expansion 19.9 percent.
According to the International Air Transport Association (IATA), the positive passenger growth in May has helped in reducing pressure on profits in the high fuel prices environment, but freight segment has continued to be in a slump, with a downfall of 4 percent.
"This (passenger traffic) is 4 percent higher than the beginning of the year, whereas freight traffic has showed a drop of 4 percent against the post-recession peak of the re-stocking cycle in May 2010," IATA said in a statement.
The statement said that India's domestic demand was robust at 13.8 percent in May as compared to previous-year levels with a capacity expansion 19.9 percent.
India seeks more code-sharing to boost travel to Canada
Toronto: With no Canadian airline flying to India even as two Indian carriers touch Canada, Indian civil aviation authorities have demanded enhanced code-sharing by the Canadian national carrier Air Canada with Indian carriers to boost air travel between the two countries.
Indian civil aviation secretary Nasim Zaidi, who held talks with his Canadian counterparts and International Civil Aviation Organization (ICAO) officials in Montreal, said Thursday that since no Canadian carrier is operating to India, "it is thus important that the code-sharing for the Canadian carrier is enhanced.
"This would help the civilian passengers and will also help promote business. This will make seamless connectivity for passengers, allowing code-sharing on third country carriers, theoretically even through airlines such as Lufthansa."
A statement by the Indian high commission after the talks in Ottawa and Montreal (where the International Civil Organization is based), said India and Canada held "an extremely cordial and intensive discussion to enhance air connectivity between the two countries.
"This included unlimited air services for cargo; substantive liberalization of code-sharing relations between airlines; rationalization of code-sharing and inter-modal transport arrangements and simplification of clauses relating to tariff and fare structure."
Indian civil aviation secretary Nasim Zaidi, who held talks with his Canadian counterparts and International Civil Aviation Organization (ICAO) officials in Montreal, said Thursday that since no Canadian carrier is operating to India, "it is thus important that the code-sharing for the Canadian carrier is enhanced.
"This would help the civilian passengers and will also help promote business. This will make seamless connectivity for passengers, allowing code-sharing on third country carriers, theoretically even through airlines such as Lufthansa."
A statement by the Indian high commission after the talks in Ottawa and Montreal (where the International Civil Organization is based), said India and Canada held "an extremely cordial and intensive discussion to enhance air connectivity between the two countries.
"This included unlimited air services for cargo; substantive liberalization of code-sharing relations between airlines; rationalization of code-sharing and inter-modal transport arrangements and simplification of clauses relating to tariff and fare structure."
Oil companies likely to cut ATF cost by Rs 350/kl
State-run oil marketing companies are likely to cut aviation turbine fuel(ATF) cost by around Rs 350 per kilolitre, say oil ministry sources. There could be another sharp ATF price cut on July 16 if oil remains at the same level. Oil marketing companies like Bharat Petroleum, Hindustan Petroleum and Indian Oil revise ATF price every fortnight depending on the global crude oil prices.
Currently ATF is being sold at over Rs 51,000 a kilolitre in Mumbai and Delhi which is nearly 70% higher then what the commodity costs in Malaysia or any Middle East and Gulf regions.
Airlines like Jet Airways , Kingfisher Airlines and SpiceJet along with other carriers are collectively lobbying to get a uniform sales tax structure pan India Andhra Pradesh, Kerala and Rajasthan are the only states which pay 4% tax on the commodity. Currently, Delhi pays around 20% tax on ATF, Mumbai pays 24%. Sales tax on ATF varies from 4% to as high as 34% in various states.
Meanwhile, after announcing the Q4 results of FY11, airlines had said their profits had dented over 20% due to the spiraling fuel cost and airlines could not pass on the burden to end-consumers in the form of higher fares.
“If the trend continues, we will have to pass on the burden to our customers but it will be done gradually,” Sudheer Raghavan, Jet’s chief commercial officer had said in the earnings call in May
Currently ATF is being sold at over Rs 51,000 a kilolitre in Mumbai and Delhi which is nearly 70% higher then what the commodity costs in Malaysia or any Middle East and Gulf regions.
Airlines like Jet Airways , Kingfisher Airlines and SpiceJet along with other carriers are collectively lobbying to get a uniform sales tax structure pan India Andhra Pradesh, Kerala and Rajasthan are the only states which pay 4% tax on the commodity. Currently, Delhi pays around 20% tax on ATF, Mumbai pays 24%. Sales tax on ATF varies from 4% to as high as 34% in various states.
Meanwhile, after announcing the Q4 results of FY11, airlines had said their profits had dented over 20% due to the spiraling fuel cost and airlines could not pass on the burden to end-consumers in the form of higher fares.
“If the trend continues, we will have to pass on the burden to our customers but it will be done gradually,” Sudheer Raghavan, Jet’s chief commercial officer had said in the earnings call in May
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