Nehru's grandchildren
Vayalar Ravi, the new minister for civil aviation, declared on assuming office that his priority would be “to improve the services on Air India and to make it a profitable airline”. He allayed the fears of Air India employees’ unions about a wage freeze and re-deployment to the airline’s subsidiaries. For good measure, he added that he would look into the de-registration of two of the airline’s 14 unions.
Mr Ravi’s predecessor, Praful Patel, had declared that he was the minister for civil aviation, not the minister for Air India. His critics would charge that he was actually the minister against Air India, given how the airline was destroyed on his watch. Indeed, Capt Gopinath of the erstwhile Deccan Aviation once charged that Mr Patel was the minister for Jet Airways — drawing a sharp riposte from the minister. Irrespective of whom you believe, there were sounds of relief from Air India when Mr Patel was moved out. The problem, though, is that the country once again seems to have a minister for Air India, more than a minister for civil aviation.
It so happens that Air India is now only the fourth-largest airline in the country. It is in danger of becoming the fifth largest, because SpiceJet too may overtake it. So the “national carrier” is no longer a critical factor in the market. In any case, reviving it is the job of the airline management. Trade union recognition, wage bills and staff deployment are all within the management’s purview — with due clearance from the airline’s board, which includes government nominees.
Besides, how exactly would a minister improve Air India’s services? Everyone knows that Air India cannot be salvaged if it does not cut costs and attract more passengers. But if the minister signals that he is on the side of the unions on key staff issues, he reduces the management’s scope of action as well as the likelihood of better service. The prospects for the airline are already dim; Mr Ravi, with all the goodwill that he has for Air India, has just made its future bleaker.
Tuesday, January 25, 2011
Now, get refund on all air tickets
Chennai: Booked a non-refundable ticket and didn`t fly? You won`t lose your money any longer.
Passengers can now cancel their non-refundable air tickets until two hours before departure and get a refund of taxes, fuel surcharge, passenger service fee and user development fee. This means a flyer stands to get back Rs 1,300 to Rs 3,800, depending on the distance and the fare. Fuel surcharge varies from Rs 1,000 for a short-haul domestic flight to Rs 3,500 for a long-haul journey. Most low-cost carriers charge Rs 229 as passenger service fee and Rs 103 service tax.
The decision, a long-standing demand of flyers, was made after talks between airlines and the Civil Aviation Economic Advisory Council last month. Also, full-service airlines have cut their cancellation fees.
"This is a big relief for passengers, especially for those buying round trip tickets" said passengers association president D Sudhakara Reddy. "Those taking round trip tickets were losing money even if they missed only one leg of the journey."
Travel agents said that full service airlines have reduced the cancellation fee.
Passengers can now cancel their non-refundable air tickets until two hours before departure and get a refund of taxes, fuel surcharge, passenger service fee and user development fee. This means a flyer stands to get back Rs 1,300 to Rs 3,800, depending on the distance and the fare. Fuel surcharge varies from Rs 1,000 for a short-haul domestic flight to Rs 3,500 for a long-haul journey. Most low-cost carriers charge Rs 229 as passenger service fee and Rs 103 service tax.
The decision, a long-standing demand of flyers, was made after talks between airlines and the Civil Aviation Economic Advisory Council last month. Also, full-service airlines have cut their cancellation fees.
"This is a big relief for passengers, especially for those buying round trip tickets" said passengers association president D Sudhakara Reddy. "Those taking round trip tickets were losing money even if they missed only one leg of the journey."
Travel agents said that full service airlines have reduced the cancellation fee.
Jet sequel after first flop
New Delhi: A government aerospace laboratory has proposed a programme to build a 70-seater jet as India’s second civilian aircraft, although its first project launched 12 years ago has yet to yield a plane certified airworthy.
The National Aerospace Laboratories (NAL), Bangalore, told the Planning Commission on Friday that it hoped to get the new aircraft certified within six years after project sanction in a new model of development and a changed geopolitical environment.
A prototype of NAL’s Saras, a 14-seater turbo-prop aircraft, touted since 1998 as India’s first multi-purpose civilian passenger plane, crashed near Bangalore in March 2009 during its 49th flight, killing two test pilots and an engineer on board.
An inquiry by India’s Directorate General of Civil Aviation (DGCA) found that the probable cause of the crash was incorrect procedure for re-lighting an engine devised by aircraft designers and adopted by the crew. The DGCA has not certified Saras yet.
“Saras was a learning experience,” said Samir Brahmachari, the director-general of the Council of Scientific and Industrial Research (CSIR), of which the NAL is a part. “It started at a time when India was facing technology denials — now things have changed.”
A number of key technologies such as aviation-grade materials and avionics components had to be developed from scratch, he said. This led to delays — and miscalculations. The first Saras prototype aircraft was a few hundred kilograms overweight. Although the NAL initiated the project with an industrial partner in Russia, the company pulled out midway, and NAL continued the programme.
In its presentation to the Planning Commission on Friday, the NAL said it would insist on industrial collaboration from start to finish in the new aircraft project. “If we don’t have industry partners, we won’t pursue it,” Brahmachari said.
The National Aerospace Laboratories (NAL), Bangalore, told the Planning Commission on Friday that it hoped to get the new aircraft certified within six years after project sanction in a new model of development and a changed geopolitical environment.
A prototype of NAL’s Saras, a 14-seater turbo-prop aircraft, touted since 1998 as India’s first multi-purpose civilian passenger plane, crashed near Bangalore in March 2009 during its 49th flight, killing two test pilots and an engineer on board.
An inquiry by India’s Directorate General of Civil Aviation (DGCA) found that the probable cause of the crash was incorrect procedure for re-lighting an engine devised by aircraft designers and adopted by the crew. The DGCA has not certified Saras yet.
“Saras was a learning experience,” said Samir Brahmachari, the director-general of the Council of Scientific and Industrial Research (CSIR), of which the NAL is a part. “It started at a time when India was facing technology denials — now things have changed.”
A number of key technologies such as aviation-grade materials and avionics components had to be developed from scratch, he said. This led to delays — and miscalculations. The first Saras prototype aircraft was a few hundred kilograms overweight. Although the NAL initiated the project with an industrial partner in Russia, the company pulled out midway, and NAL continued the programme.
In its presentation to the Planning Commission on Friday, the NAL said it would insist on industrial collaboration from start to finish in the new aircraft project. “If we don’t have industry partners, we won’t pursue it,” Brahmachari said.
Will take time for Air India turnaround: Vayalar Ravi
Thiruvananthapuram: New civil aviation minister Vayalar Ravi Sunday said it will not be an easy task to swing around Air India in a short period.
Speaking to the media here on his first visit to the Kerala capital after taking over the aviation portfolio, Ravi said he has been busy in the past few days holding discussions with the objective of bringing back "the lost glory" of the national carrier.
"There is no doubt that there are issues because things have not fallen in place as they should have following the merger of Air India and Indian Airlines. I have decided that before I start to do anything, I will have discussions with all stakeholders, ranging from the various unions besides the cabin crew, pilots guild, the finance sections and others," said Ravi.
"I do not wish to give a time frame to you with regard to putting back Air India to the place it should be because if I say so then you, the media will be after me once the period gets over. Please give me a little time because there are a good number of issues that have to be sorted out," he added.
Ravi was, however, non-committal if there was going to be a Voluntary Retirement Scheme programme for its employees.
"One of the biggest problem is the shortage of aircraft that Air India is facing, and among the other issues that have to be looked into is the routing aspect and the fare structures in comparison with other private airlines," added Ravi. He, however, ruled out a revamp of the present open air policy of the government.
Speaking to the media here on his first visit to the Kerala capital after taking over the aviation portfolio, Ravi said he has been busy in the past few days holding discussions with the objective of bringing back "the lost glory" of the national carrier.
"There is no doubt that there are issues because things have not fallen in place as they should have following the merger of Air India and Indian Airlines. I have decided that before I start to do anything, I will have discussions with all stakeholders, ranging from the various unions besides the cabin crew, pilots guild, the finance sections and others," said Ravi.
"I do not wish to give a time frame to you with regard to putting back Air India to the place it should be because if I say so then you, the media will be after me once the period gets over. Please give me a little time because there are a good number of issues that have to be sorted out," he added.
Ravi was, however, non-committal if there was going to be a Voluntary Retirement Scheme programme for its employees.
"One of the biggest problem is the shortage of aircraft that Air India is facing, and among the other issues that have to be looked into is the routing aspect and the fare structures in comparison with other private airlines," added Ravi. He, however, ruled out a revamp of the present open air policy of the government.
Spreading wings to fly above the rest
It may perhaps not get bigger than this. India’s young low-cost carrier IndiGo created a sensation in the international airline market on January 12 when it announced signing of the biggest ever single order of 180 aircraft valued at a whopping $15 billion (Rs 67,800 crore) with European plane maker Airbus.
As per the MoU signed with the Toulouse-based aircraft manufacturer, 30 of the 180 planes will be the largest selling A320s while the rest 150 will be the new A320neo (new engine option) which are more fuel-efficient machines. The delivery will start from 2016 and go on till 2025.
The order for 180 planes (the engines are yet to be decided) is no doubt huge but then, IndiGo is no stranger to dramatic announcements. When the Indian aviation market was just opening up about five years ago, InterGlobe, stunned the airline world by inking MoU for 100 Airbus A320 planes. Of those 100, IndiGo currently has a fleet of 34 Airbus A320s, flying to 24 destinations through 221 daily flights. The latest announcement means that 241 aircraft will be delivered to IndiGo by Airbus between now and 2025.
Good times are coming the IndiGo way in droves. Or so it seems. Recently released civil aviation ministry figures revealed that the budget carrier has emerged a joint second in terms of the Indian domestic market share. This was followed a day later by the government giving it permission to fly abroad after it completed the mandatory five years of domestic operations.
Interestingly, the twin orders of 100 and 180 planes is more than half of the 420 aircraft currently in service with all Indian carriers, including Air India, Jet Airways, Kingfisher Airlines, SpiceJet , IndiGo and GoAir, put together. The fleet size of IndiGo is set to reach 50 in a year’s time while its 100th will reach India by 2015.
As per the MoU signed with the Toulouse-based aircraft manufacturer, 30 of the 180 planes will be the largest selling A320s while the rest 150 will be the new A320neo (new engine option) which are more fuel-efficient machines. The delivery will start from 2016 and go on till 2025.
The order for 180 planes (the engines are yet to be decided) is no doubt huge but then, IndiGo is no stranger to dramatic announcements. When the Indian aviation market was just opening up about five years ago, InterGlobe, stunned the airline world by inking MoU for 100 Airbus A320 planes. Of those 100, IndiGo currently has a fleet of 34 Airbus A320s, flying to 24 destinations through 221 daily flights. The latest announcement means that 241 aircraft will be delivered to IndiGo by Airbus between now and 2025.
Good times are coming the IndiGo way in droves. Or so it seems. Recently released civil aviation ministry figures revealed that the budget carrier has emerged a joint second in terms of the Indian domestic market share. This was followed a day later by the government giving it permission to fly abroad after it completed the mandatory five years of domestic operations.
Interestingly, the twin orders of 100 and 180 planes is more than half of the 420 aircraft currently in service with all Indian carriers, including Air India, Jet Airways, Kingfisher Airlines, SpiceJet , IndiGo and GoAir, put together. The fleet size of IndiGo is set to reach 50 in a year’s time while its 100th will reach India by 2015.
Patel may soon have to declare Air India sick company
New Delhi: As India's civil aviation minister, Praful Patel had staunchly fought against any move to declare Air India a sick company. But as the new minister for heavy industries and public enterprises, Patel may have to declare the national carrier a sick company.
Patel's ministry has notified a new criterion to identify state-run firms that are terminally sick. Air India may fall in this category if the new norms are applied to the debt-ridden carrier.
The new norms, notified by the department of public enterprises a day after Patel took charge, say a financially troubled state-run firm would be considered a 'turnaround ' case only if it had reported profits in three preceding financial years. Also, the profits should be without any grants from the government or a loan waiver from a financial institution.
But Air India reported losses in the past two fiscals, although it has succeeded in cutting these losses. The carrier posted a loss of Rs 7,189 crore in 2008-09 and Rs 5,551 crore in 2009-10. The carrier had a debt of around Rs 40,000 crore against an equity base of Rs 1,000 crore
Patel's ministry has notified a new criterion to identify state-run firms that are terminally sick. Air India may fall in this category if the new norms are applied to the debt-ridden carrier.
The new norms, notified by the department of public enterprises a day after Patel took charge, say a financially troubled state-run firm would be considered a 'turnaround ' case only if it had reported profits in three preceding financial years. Also, the profits should be without any grants from the government or a loan waiver from a financial institution.
But Air India reported losses in the past two fiscals, although it has succeeded in cutting these losses. The carrier posted a loss of Rs 7,189 crore in 2008-09 and Rs 5,551 crore in 2009-10. The carrier had a debt of around Rs 40,000 crore against an equity base of Rs 1,000 crore
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