Mumbai: Government-owned banks have sought to wrest control of part of the cash flows of Kingfisher Airlines that is currently controlled by three of their private sector counterparts.
The bone of contention is money received by the loss-making airline from tickets bought through credit cards, said senior bank officials.
The officials, who spoke on condition of anonymity because the matter was still under discussion, said government run banks had argued that they had a stronger claim to credit card receivables as their exposure to the Vijay Mallyaowned airline was more than that of private banks. But the proposal has been rejected by the three private sector banks - ICICI, Axis Bank and IndusInd - whose loan agreements with Kingfisher stipulate that proceeds of tickets booked through credit cards go to them.
At a recent meeting, officials of public sector banks proposed the opening of a dedicated account, known as an escrow, at the State Bank of India (SBI) where the airline would deposit the proceeds of tickets bought through credit cards. The airline would have to reach an agreement with the settlement agencies such as Visa and MasterCard - to operationalise the escrow account, essentially overturning the loan contracts between the private sector banks and Kingfisher Airlines.
State Bank of India has lent about Rs 1,400 crore to Kingfisher Airlines as against Rs 450 crore by ICICI Bank and Rs 50 crore of Axis Bank. ICICI Bank did not respond to the email enquiry.
Saturday, December 10, 2011
Rolls-Royce, HAL setting up aero engines production facility
New Delhi: India's public sector Hindustan Aeronautics Limited (HAL) and British aero engines manufacturer Rolls-Royce Wednesday commenced construction of a new joint manufacturing facility in Bangalore, where components of Trent family of civil aero engines, marine, and energy gas turbines will be produced beginning 2012.
The production facility, about 7,200 square metres in size, is owned by International Aerospace Manufacturing Private Limited (IAMPL), a joint venture between HAL and Rolls-Royce formed in 2010, according to a release from the company.
IAMPL will incorporate the latest Rolls-Royce manufacturing techniques and create job opportunities for highly-skilled technicians and engineers in India.
The production facility, about 7,200 square metres in size, is owned by International Aerospace Manufacturing Private Limited (IAMPL), a joint venture between HAL and Rolls-Royce formed in 2010, according to a release from the company.
IAMPL will incorporate the latest Rolls-Royce manufacturing techniques and create job opportunities for highly-skilled technicians and engineers in India.
India May Cancel Fighter Competition
Langkawi, Malaysia: Victor Komardin, the deputy director of Russia’s arms export agency Rosoboronexport, contends that the two short-listed candidates for India’s Medium Multirole Combat Aircraft (MMRCA) competition have effectively ruled themselves out by putting too high a price on their fighters.
India’s politicians told the local press earlier this year that the MMRCA contract was a $10 billion deal, but reports from India in recent weeks say the manufacturers of the two finalist aircraft, the Eurofighter Typhoon and Dassault Rafale, are each asking for around $20 billion to fulfill the 126-aircraft order, Komardin says.
“Against the backdrop of the [financial] crisis [sweeping the world], it is hard to see how any government would allow such a waste of money, particularly when there are social problems” to deal with, Komardin says. “And there is no imminent threat to India’s [sovereignty]. My prediction is that this tender will be canceled.”
India’s politicians told the local press earlier this year that the MMRCA contract was a $10 billion deal, but reports from India in recent weeks say the manufacturers of the two finalist aircraft, the Eurofighter Typhoon and Dassault Rafale, are each asking for around $20 billion to fulfill the 126-aircraft order, Komardin says.
“Against the backdrop of the [financial] crisis [sweeping the world], it is hard to see how any government would allow such a waste of money, particularly when there are social problems” to deal with, Komardin says. “And there is no imminent threat to India’s [sovereignty]. My prediction is that this tender will be canceled.”
Air India introduces marriage gift vouchers
New Delhi: Air India has come up with a "gift" this marriage session--'Shagun Vouchers'.
Valid from today till March 31 next year, the vouchers priced between Rs 901 and Rs 9001, can be redeemed against tickets or holiday packages on any domestic or international sector of the airline.
"Valid from December 7, 2011 to March 31, 2012, the 'Shagun Vouchers' would be valid for a period of one year from the date of issue," an airline spokesperson said.
The vouchers would be issued at Air India reservation offices after presenting a copy of the wedding invitation card and that the wedding date should be within a month from the date of purchase," the spokesperson said.
The vouchers would be available in five different price denominations -- 'face value' with an inbuilt discount -- 'sale value'.
Valid from today till March 31 next year, the vouchers priced between Rs 901 and Rs 9001, can be redeemed against tickets or holiday packages on any domestic or international sector of the airline.
"Valid from December 7, 2011 to March 31, 2012, the 'Shagun Vouchers' would be valid for a period of one year from the date of issue," an airline spokesperson said.
The vouchers would be issued at Air India reservation offices after presenting a copy of the wedding invitation card and that the wedding date should be within a month from the date of purchase," the spokesperson said.
The vouchers would be available in five different price denominations -- 'face value' with an inbuilt discount -- 'sale value'.
Safety: DGCA follows zero tolerance policy
DGCA follows a zero tolerance policy on safety norms. In order to ensure this DGCA has following processes:-
• DGCA makes annual program for surveillance/safety checks to be carried out by each Directorate and the same is displayed on the website of DGCA.
• The deficiencies observed are categorized depending upon the level of severity as Class 1 and Class 11 deficiencies. All the findings are discussed for appropriateness of the action taken.
• In addition, all the airlines are required to carry out Internal Safety Audit and monthly Surveillance Checks. Report of such Audit and Surveillance checks are to be submitted to DGCA along with the action taken by the organization. Safety Inspections by the operator are also examined during safety checks by the DGCA officers.
All the Airlines including Government owned Airlines have Flight Safety Manual and Chief of Flight Safety. Chief of Flight Safety of all the Airlines including the Government owned Airlines are approved by DGCA. Requirements for Flight Safety Manual and Chief of Flight Safety are given in CAR Section 5, Series F Part 1.
• DGCA makes annual program for surveillance/safety checks to be carried out by each Directorate and the same is displayed on the website of DGCA.
• The deficiencies observed are categorized depending upon the level of severity as Class 1 and Class 11 deficiencies. All the findings are discussed for appropriateness of the action taken.
• In addition, all the airlines are required to carry out Internal Safety Audit and monthly Surveillance Checks. Report of such Audit and Surveillance checks are to be submitted to DGCA along with the action taken by the organization. Safety Inspections by the operator are also examined during safety checks by the DGCA officers.
All the Airlines including Government owned Airlines have Flight Safety Manual and Chief of Flight Safety. Chief of Flight Safety of all the Airlines including the Government owned Airlines are approved by DGCA. Requirements for Flight Safety Manual and Chief of Flight Safety are given in CAR Section 5, Series F Part 1.
Power, telecom, aviation sectors in various states of crisis
India's power, telecoms and aviation sectors, core to sustaining the country's growth, are in various states of crisis. That may prove a good thing, if it forces government to act.
Regulations in all three industries have kept prices low and brought power, cellphone service and even air travel to millions of Indians for the first time. The same policies have left many operators battered by losses, debt, and plunging share prices.
Power, telecoms and airlines are capital-intensive sectors that attracted heavy investment when the regulatory environment was more favourable and global capital was plentiful and cheap.
That has left India crowded with more than a dozen cellular carriers, loss-making airlines with too many planes and billions of dollars of investments in a power sector made uneconomic by high global prices of coal and low domestic tariffs.
Many investors once keen on India's long-term growth have had enough as global and domestic economic conditions worsen, making Indian stocks among the world's worst performers of 2011.
Despite passenger growth of nearly 20 percent, shares in India's three listed airlines are down between 62 and 72 percent in 2011. The index of power stocks is down 32 percent even as electricity demand far outstrips supply.
Regulations in all three industries have kept prices low and brought power, cellphone service and even air travel to millions of Indians for the first time. The same policies have left many operators battered by losses, debt, and plunging share prices.
Power, telecoms and airlines are capital-intensive sectors that attracted heavy investment when the regulatory environment was more favourable and global capital was plentiful and cheap.
That has left India crowded with more than a dozen cellular carriers, loss-making airlines with too many planes and billions of dollars of investments in a power sector made uneconomic by high global prices of coal and low domestic tariffs.
Many investors once keen on India's long-term growth have had enough as global and domestic economic conditions worsen, making Indian stocks among the world's worst performers of 2011.
Despite passenger growth of nearly 20 percent, shares in India's three listed airlines are down between 62 and 72 percent in 2011. The index of power stocks is down 32 percent even as electricity demand far outstrips supply.
Near-miss may have involved third jet
Dubai: A third aircraft may have been involved in triggering alarms last week when the flightpaths of an Air Arabia and Qatar Airways jet almost crossed.
Indian authorities said yesterday that their investigation found that another plane had been flying nearby.
There were "two aircraft going up and another one also which was on its level", said a senior official from the Directorate General of Civil Aviation (DGCA), who stressed the findings were preliminary.
The Air Arabia and Qatar Airways aircraft were initially believed to have violated the 1,000foot minimum vertical distance allowed between planes last Wednesday. The Qatar Airways jet had been flying from Doha to Kozhikode in southern India, and the Air Arabia plane from Kozhikode to Sharjah, the Hindustan Times of India reported.
Indian authorities said yesterday that their investigation found that another plane had been flying nearby.
There were "two aircraft going up and another one also which was on its level", said a senior official from the Directorate General of Civil Aviation (DGCA), who stressed the findings were preliminary.
The Air Arabia and Qatar Airways aircraft were initially believed to have violated the 1,000foot minimum vertical distance allowed between planes last Wednesday. The Qatar Airways jet had been flying from Doha to Kozhikode in southern India, and the Air Arabia plane from Kozhikode to Sharjah, the Hindustan Times of India reported.
Chennai airport to hire agency to study spike in late night bird-hits
Chennai: The Airports Authority of India will hire a wildlife agency to study the spike in bird-hits at night in Chennai airport and suggest remedies.
"Pilots have been reporting bird-hits at night while approaching the airport. This is the first time we have heard about night-time bird-hits in Chennai. So, we have decided to conduct a study by engaging an ornithologist," said airport director E P Hareendranathan.
Chennai airport has identified an agency, Via Life Science, from a panel of ornithologists suggested by the National Bird Control Committee, which is under the Union ministry of civil aviation. The committee has instructed all airports where bird-hits have been reported to study the problem and take preventive measures.
"We have contacted the agency and they are ready to do a bird survey. They have also suggested some equipment that needs to be installed to prevent bird-hits. A final decision will be taken very soon after working out the project cost," said a senior AAI official.
The official said, majority of the bird-hits fell in the suspected category because they didn't have strong evidence to prove it.
"Pilots have been reporting bird-hits at night while approaching the airport. This is the first time we have heard about night-time bird-hits in Chennai. So, we have decided to conduct a study by engaging an ornithologist," said airport director E P Hareendranathan.
Chennai airport has identified an agency, Via Life Science, from a panel of ornithologists suggested by the National Bird Control Committee, which is under the Union ministry of civil aviation. The committee has instructed all airports where bird-hits have been reported to study the problem and take preventive measures.
"We have contacted the agency and they are ready to do a bird survey. They have also suggested some equipment that needs to be installed to prevent bird-hits. A final decision will be taken very soon after working out the project cost," said a senior AAI official.
The official said, majority of the bird-hits fell in the suspected category because they didn't have strong evidence to prove it.
Airport Hotel in Mumbai Becomes a Two-Time Award Winning Business Hotel
Mumbai: Setting the pace for hospitality in India, the impressive Courtyard by Marriott Mumbai International Airport Hotel recently was honored with its second award this year for its excellence in the fields of travel and tourism.
The Courtyard was recognized as "Best Business Hotel" in the four-star category at the 7th Annual International Awards ceremony held October 28, 2011 at the Hotel Ashok, New Delhi. Sponsored by Hospitality India and Explore the World, the gala event drew noted Indian dignitaries as guests of honor and was graced in attendance by ambassadors to India from Egypt, Jordan and the Republic of Turkey.
"It is a great honor to be recognized on a national platform as Best Business Hotel in the 4-star category," said Sanne Emborg, General Manager of the distinctive Courtyard hotel in accepting the award. "It is also special to receive our second award of the year and be recognized for business excellence."
The event was followed by the Hospitality India Tourism and Travel Trade Fair on Saturday, which drew participation from several tourism state boards of India, tour operators and travel agencies and included interactive sessions and presentations between participants and attendees addressing the growth and challenges of the industry.
The Courtyard was recognized as "Best Business Hotel" in the four-star category at the 7th Annual International Awards ceremony held October 28, 2011 at the Hotel Ashok, New Delhi. Sponsored by Hospitality India and Explore the World, the gala event drew noted Indian dignitaries as guests of honor and was graced in attendance by ambassadors to India from Egypt, Jordan and the Republic of Turkey.
"It is a great honor to be recognized on a national platform as Best Business Hotel in the 4-star category," said Sanne Emborg, General Manager of the distinctive Courtyard hotel in accepting the award. "It is also special to receive our second award of the year and be recognized for business excellence."
The event was followed by the Hospitality India Tourism and Travel Trade Fair on Saturday, which drew participation from several tourism state boards of India, tour operators and travel agencies and included interactive sessions and presentations between participants and attendees addressing the growth and challenges of the industry.
Sip a mug of kaapi before take-off at BIA
Bangalore: 'Kaapi Trail', a 10-day coffee festival, kicked off at Bangalore International Airport (BIA) on Monday. It is a first for an Indian airport, where different facets of South Indian coffee is being showcased.
Organized in collaboration with The Coffee Board of India and the Karnataka tourism department, the coffee fest will serve special coffee from the nine regions of Araku Valley, Bababudangiri, BR Hills, Chikmagalur, Coorg, Nilgiris, Shevaroy Hills, Travancore, Nelliyampathy and Pulneys. Coffee from all these regions has been carefully extracted and blended to extract their original flavour. The highlight of this festival is the interaction passengers can have with coffee experts, engaged in live coffee making demonstrations.
The objective of the festival is to contribute to the development of coffee and improve its potential in promoting and developing the territory's tourism.
Organized in collaboration with The Coffee Board of India and the Karnataka tourism department, the coffee fest will serve special coffee from the nine regions of Araku Valley, Bababudangiri, BR Hills, Chikmagalur, Coorg, Nilgiris, Shevaroy Hills, Travancore, Nelliyampathy and Pulneys. Coffee from all these regions has been carefully extracted and blended to extract their original flavour. The highlight of this festival is the interaction passengers can have with coffee experts, engaged in live coffee making demonstrations.
The objective of the festival is to contribute to the development of coffee and improve its potential in promoting and developing the territory's tourism.
Airlines training pilots to land in poor visibility
New Delhi: Foreseeing trouble caused due to dense fog conditions that throw airline schedules haywire, major airlines have started training their senior pilots for landing in low visibility conditions. Trained cockpit crew — the commandant as well as the co-pilot — are important when the CAT-IIIB conditions are initiated. These conditions are normally initiated for a month’s period (December 15- January 15).
According to the statistics available with the Directorate General of Civil Aviation (DGCA), a total of 580 Indian pilots covering 10 airlines are trained for CAT IIIB operations covering a variety of aircraft. Air India has the highest number of trained pilots in command (395) and co-pilots (282). Kingfisher has 152 trained commandants and 120 co-pilots, whereas Jet Airways has 132 trained pilots in command and 51 co-pilots for CAT IIB conditions.
According to the airport officials, Air India is pioneer in training their pilots and due to this, their schedules were the least affected last year. Private airlines, too, have realised that the shortage of trained cockpit crew may come in the way of smooth operation of flights if schedules go haywire from Delhi. A spokesperson of Jet Airways said, “Even due to huge investment of `5 lakh per year per pilot, the airline is training pilots for the latest technology. However, looking at the costs involved, we are bound to be choosy and select only senior pilots for training.”
According to the statistics available with the Directorate General of Civil Aviation (DGCA), a total of 580 Indian pilots covering 10 airlines are trained for CAT IIIB operations covering a variety of aircraft. Air India has the highest number of trained pilots in command (395) and co-pilots (282). Kingfisher has 152 trained commandants and 120 co-pilots, whereas Jet Airways has 132 trained pilots in command and 51 co-pilots for CAT IIB conditions.
According to the airport officials, Air India is pioneer in training their pilots and due to this, their schedules were the least affected last year. Private airlines, too, have realised that the shortage of trained cockpit crew may come in the way of smooth operation of flights if schedules go haywire from Delhi. A spokesperson of Jet Airways said, “Even due to huge investment of `5 lakh per year per pilot, the airline is training pilots for the latest technology. However, looking at the costs involved, we are bound to be choosy and select only senior pilots for training.”
Canadian aerospace industry braces for competition
Montreal: An aerospace conference heard Monday that emerging powers like China and India will eventually compete in aircraft manufacturing -- but it might take a while.
The head of one industry think-tank noted that Hindustan Aeronautics Limited, India's state-owned company, is heavily involved in building helicopters and plans to eventually develop its own fighters and commercial aircraft.
But Suzanne Benoit, CEO of Aero Montreal, added that India still has some catching up to do.
"It's not really a commercial company, it's a government-owned company so maybe the pace of development may not be as fast as other airframers," Benoit said Monday.
"It's not going to happen tomorrow, but you never know in India -- the government may decide to put a lot of money into it."
Benoit made her comments at a two-day forum on aerospace innovation organized by Aero Montreal, a think-tank for Quebec's aerospace sector.
The head of one industry think-tank noted that Hindustan Aeronautics Limited, India's state-owned company, is heavily involved in building helicopters and plans to eventually develop its own fighters and commercial aircraft.
But Suzanne Benoit, CEO of Aero Montreal, added that India still has some catching up to do.
"It's not really a commercial company, it's a government-owned company so maybe the pace of development may not be as fast as other airframers," Benoit said Monday.
"It's not going to happen tomorrow, but you never know in India -- the government may decide to put a lot of money into it."
Benoit made her comments at a two-day forum on aerospace innovation organized by Aero Montreal, a think-tank for Quebec's aerospace sector.
Move permitting 26% FDI in aviation gets FinMin nod
New Delhi: In what may help beleaguered airlines Kingfisher, the finance ministry has approved a draft Cabinet note floated by the commerce and industry ministry allowing foreign fliers to acquire up to 26 per cent stake in India’s aviation companies.
However, there is a hitch. The finance ministry wants the commerce and industry ministry to see that any such policy conforms to a new takeover code, where companies have to go for an open offer if they acquire at least 25 per cent stake.
In this regard, the finance ministry wants the Department of Industrial Policy and Promotion (DIPP) under the commerce and industry ministry to consult Securities and Exchange Board of India (Sebi), as some airlines like Kingfisher and Jet Airways are listed companies, officials said on Monday.
The new takeover code, effected by Sebi from October 22, prescribes that any acquirer taking at least 25 per cent stake in a company has to go for an open offer for another 26 per cent. Thus, foreign airlines’ stake, in case this policy is allowed, can go up to 52 per cent, which would make them majority owner.
The officials said DIPP can, after consultations with Sebi, start working on the Cabinet note. A Cabinet meeting slated for Wednesday, though, is unlikely to take up this issue. It may come up only either next week or thereafter, depending on a solution to a more pressing and vexed issue before the Cabinet: Foreign direct investment (FDI) in multi-brand retail. There is another hurdle to the proposal: The civil aviation ministry still favours 24 per cent cap in this regard, which many say will not attract foreign airlines to pick stake in Indian fliers.
However, there is a hitch. The finance ministry wants the commerce and industry ministry to see that any such policy conforms to a new takeover code, where companies have to go for an open offer if they acquire at least 25 per cent stake.
In this regard, the finance ministry wants the Department of Industrial Policy and Promotion (DIPP) under the commerce and industry ministry to consult Securities and Exchange Board of India (Sebi), as some airlines like Kingfisher and Jet Airways are listed companies, officials said on Monday.
The new takeover code, effected by Sebi from October 22, prescribes that any acquirer taking at least 25 per cent stake in a company has to go for an open offer for another 26 per cent. Thus, foreign airlines’ stake, in case this policy is allowed, can go up to 52 per cent, which would make them majority owner.
The officials said DIPP can, after consultations with Sebi, start working on the Cabinet note. A Cabinet meeting slated for Wednesday, though, is unlikely to take up this issue. It may come up only either next week or thereafter, depending on a solution to a more pressing and vexed issue before the Cabinet: Foreign direct investment (FDI) in multi-brand retail. There is another hurdle to the proposal: The civil aviation ministry still favours 24 per cent cap in this regard, which many say will not attract foreign airlines to pick stake in Indian fliers.
Domestic air passenger traffic registers 18.8% growth
New Delhi: Domestic air passenger traffic recorded in April to September 2011 registered a growth of 18.8 per cent from the corresponding period last year, government said on Wednesday.
In reply to a question in the Lok Sabha, civil aviation minister Vyalar Ravi said that domestic passenger traffic which was 8.9 crore in 2009-10 had moved up to 10.5 crore in 2010-11.
Air India's market share has shown a decline in the last few years. In years 2007-08, Air India had a market share of 17.9 per cent which had fallen to 17.1 percent in 2010-11.
In reply to a question in the Lok Sabha, civil aviation minister Vyalar Ravi said that domestic passenger traffic which was 8.9 crore in 2009-10 had moved up to 10.5 crore in 2010-11.
Air India's market share has shown a decline in the last few years. In years 2007-08, Air India had a market share of 17.9 per cent which had fallen to 17.1 percent in 2010-11.
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