Differential pricing to lift ticket sales through airline websites

Mumbai: Civil aviation secretary K N Srivastava’s order on the transaction fee allowing differential pricing might increase ticket sales through airline websites. This will also help airlines reduce sales and distribution expenses.
According to the order, airlines can offer different fares for those who purchase tickets on its website and those booking from agents. This implies passengers buying tickets from agents will have to pay a slightly higher fare, which includes commission or transaction fee. Differential pricing would encourage people to book tickets from airline websites, according to industry sources.
About 80 per cent of airline tickets sold in India are through travel agents and online portals. The rest is sold through airline websites and booking offices. At present, there is hardly any difference between the fares on airline’s website, online portals and global distribution systems used by agents to book tickets.
A Jet Airways spokesperson said the airline was examining the civil aviation secretary's order. No other airline has responded to email queries on the issue.
Read News In full 26/09/13 Aneesh Phadnis/Business Standard

Govt may soon do away with overseas flying rules of aircraft

New Delhi: Government may soon do away with the rule that allows an Indian carrier to fly overseas only after it has flown within the country for five years and has a 20-aircraft fleet, with officials saying there was no justification for such norms to continue now.
A note for the Union Cabinet has been moved by the Civil Aviation Ministry some weeks ago and the matter may be taken up in the next few weeks, they said.
"There is no valid reason for such a rule to exist in the present context," an official, requesting anonymity, said.
At present, only airlines with at least five years of continued domestic operations, a minimum of 20 aircraft and paid-up capital of Rs 100 crore can fly abroad, under the rule that was approved by the Cabinet in December 2004.
As the Cabinet had then taken a decision on this issue, it would have to approve any changes made in it, the officials said.
Read News In full 25/09/13 PTI/Fianancial Express

'Domestic airlines may have suffered Rs 10,000 crore losses in FY13'

Panaji: The domestic airlines industry is estimated to have posted losses to the tune of over Rs 10,000 crore in the previous fiscal, nearly 18 per cent down from a year ago, according to a report.
"Capa estimated India's airlines industry posted a combined loss of Rs 105 billion in the FY13, down from the approximately Rs 127 billion the previous year," aviation think-tank Centre for Asia Pacific Aviation (Capa) airlines IT services provider SITA said in a report.
The report was released during the day-long Aviation ICT Forum 2013 here.
Observing that more than 40 per cent of these losses were incurred in the last quarter of 2012-13 fiscal alone, the report said, "This squandered the improved performance of the earlier three quarters."
Read News In Full 26/09/13 PTI/Economic Times

More airlines will tap social media for business: Report

Miramar(Goa): Over the next three years, 70 percent of the airlines will use social media to reach out to passengers and offer services, aviation industry specialists in Goa say in a report Thursday.
"India is the world's third-largest social media market with the number of users in urban India estimated at 66 million. Indian carriers and airports are increasingly conscious of their social media footprint and the need to reach out to passengers via social media platforms," the report said.
"Over the next three years, 70 percent of airlines surveyed will use social media to promote their brand and offer reservations, customer relationship management and check-in via social media platforms."
"The social media will also play a vital role in how airports enhance their engagement with passengers, particularly during periods of disruption," the report said.
Co-authored by air-transport specialists at SITA and CAPA, which focus on research and analysis in the aviation sector, the report is based on surveys across the country conducted by the two organisations.
Read News In full 26/09/13 IANS/Business Standard

CVC may close complaints of irregularities in Jet-Etihad deal

New Delhi: The Central Vigilance Commission (CVC) is likely to close complaints of alleged irregularities in the Rs 2,058-crore deal between Jet Airways and Abu Dhabi's Etihad Airways lodged by a BJP MP.
The Civil Aviation Ministry has submitted replies to the CVC on a series of allegations raised by Nishikant Dubey against the deal and clarified all concerns raised by him, official sources said.
Based on the ministry's reply, the complaints of alleged irregularities may be closed and no further investigation needs to be carried out, the sources said.
Dubey had written several letters to Prime Minister Manmohan Singh, CBI, CVC and the Ministry alleging wrongdoings in the deal and demanded a high-level probe in the matter, they said.
Read News In full 26/09/13 Economic Times

EC effect: IT dept to keep eye on air travellers

Indore: Income Tax officials from Indore region will keep an eye on air travellers carrying more than Rs 10 lakh cash or gold in excess of 1 kg, ahead of assembly elections scheduled in November. Indore airport director RN Shinde talking to dna said that space has been provided to IT department at the airport terminal so that they could quiz any passenger found in possession of cash or gold--more than permissible limit.
He added that Election Commission of India (ECI) had issued a circular for Bureau of Civil Aviation Security so that arrangements could be put in place for keeping an eye on air travellers carrying cash and gold.
Shinde said that that the IT department has already been provided room for questioning dubious passengers and the system would be in existence till the assembly election process is over in MP and Chhattisgarh.
Read News In Full 26/09/13 Daily News & Analysis

Direct flights from Macau to India soon

Macau: The Director of the Macau International Airport said yesterday that “most probably within this year” there will be direct flights linking Macau to India.  Speaking on the sidelines of the fourth Chinese and Portuguese-Speaking Countries Airports Conference – Macau 2013, António Barros revealed that the issue is “under negotiations, as the press have been reporting.”
The Guinea-Bissau national added: “The flights depend on the air carrier that is preparing them. The process needs a lot of planning, in order to avoid losses to the company.”
Read News In Full 26/09/13 Macau Daily Times

Six airports to get Rs 4k-cr private investment

New Delhi: Airports at Chennai, Lucknow, Kolkata, Ahmedabad, Guwahati and Jaipur, identified for privatisation in the current financial year, are likely to see fresh  investments of Rs 4,250 crore from selected private concessionaires.
According to the qualification documents issued recently by the ministry of civil aviation, private players awarded the contracts for operations, management and development in this second phase of airport privatisation programme would have to make estimated investments in the range of Rs 500-1,200 crore for development and upgrade works at each of these airports. The ministry has shared initial cost estimates and the scope of development works required to be carried out by the concessionaire at each facility. Actual costs, however, can be shared by qualified bidders at the RFP (request for proposal) stage. The private concessionaire will have to invest Rs 1,200 crore and Rs 500 crore for upgrading the Chennai and the Lucknow airports, respectively.
Read News In full 27/09/13 Sharmistha Mukherjee/Business Standard

375 more charter flights expected to arrive in Goa

Panaji: Tourism minister Dilip Parulekar has said that 375 more charter flights would arrive in the state for the forthcoming tourism season.
With the tourism season starting next month, the tourism ministry is expecting a major increase in charters to Goa. Due to the wars in Syria and Egypt, it is expected that charter flights bound to the two countries will be diverted to Goa.
Tourism minister Dilip Parulekar, while addressing a press conference on Wednesday, said the season is starting next month and they expect to get 1,400 charters as against 1,025 charters that landed in Goa during the last season.
He said that during his Moscow visit last week for the tourism trade fair, he had meetings with major tour operators like Pegas and Corona travel, which he claimed have promised additional business to Goa.
Read News In Full 26/09/13 Times of India

Sebi settles SpiceJet case with WL Ross for Rs 1.10 cr

Millionaire investor Wilbur Ross-headed global private equity group WL Ross has paid Rs 1.10 crore to settle long-running Sebi proceedings with regard to purchase of shares in Indian carrier SpiceJet. WL Ross had acquired controlling stake in low-cost carrier Spicejet in August, 2008, but later sold it to Kalanithi Maran-led Sun Group in June, 2010. As on June quarter, Marans held 52.14 per cent stake in the airline. Market regulator Sebi was probing suspected violations by WL Ross entities with regard to takeover norms, including alleged failure to make a public announcement to acquire shares of Spicejet and suppression of information from the regulator and the public at large.
Read news in full 26/09/13 PTI/moneycontrol.com

Tata Group, Singapore Airlines say JV to create jobs, boost aviation sector in India

New Delhi: Making a strong case for approval of their proposed airline JV, Tata Group and Singapore Airlines have said that the joint venture (JV) would create significant job opportunities in India, boost aviation sector and would boost the country's image as an international investment destination.
The two partners have also listed out a number of other economic benefits for the country from their new venture, Tata SIA Airlines Ltd, where Tata Sons would hold 51 per cent stake and Singapore Airlines (SIA) 49 per cent.
"The brand 'SIA' is recognised worldwide and the expansion of the 'SIA' in India will signal the ability of the country to attract leading names from the international circuit to benefit the Indian market and customers.

Will Tata Sons, Singapore Airlines fly high in Indian skies?

The Tata Sons, Singapore Airlines JV reaffirms the long-term potential of the Indian civil aviation and tourism industry. Both seem beset today with man-made problems like excessive taxation, poor infrastructure and cumbersome procedures. All these are likely to change as policy-making in India matures. The presence of Tata Sons, Singapore Airlines will speed that up. It will also give a boost to other leading global airlines currently engaged in conversation with prospective Indian partners.
The exit of Kingfisher Airlines created a void in the full service carrier (FSC) space. India now has only two full service domestic airlines—Air India (AI) and Jet Airways. The Tata Sons and Singapore Airlines JV will enhance options for passengers. The difference in fares on FSC and low cost carriers (LCC) is negligible. With the duration of most domestic flights being around 2 hours, the perceived luxury is for a very short duration. Both Jet and AI are relooking their business:economy seat configuration. Tata Sons and Singapore Airlines will therefore compete with both FSCs and LCCs and it’s all good for the Indian passenger who will now be wooed like never before.
REad News In full 25/09/13 Amber Dubey/Financial Express

Commercial pact with Etihad Airways not to override board powers: Jet Airways

New Delhi: Jet Airways and Etihad have submitted revised documents to the government seeking to allay the FIPB's concerns over control of their proposed venture, saying the commercial co-operation agreement (CCA) will not override powers vested with the company's board.
"We confirm that the CCA will not undermine the powers of the board of the company at any time to enter/exit from such commercial arrangement," according to a joint note submitted by Jet Airways and Etihad Airways to the Department of Economic Affairs (DEA).
Naresh Goyal-led Jet has also changed the shareholders agreement and amended the investment agreement and the articles of association, as suggested by the Foreign Investment Promotion Board (FIPB), headed by DEA Secretary Arvind Mayaram, official sources said.
Read News In Full25/09/13 PTI/Economic Times

On the ground, Kingfisher staff counts losses every day, employees struggle to make ends meet

Mumbai: How do you make a million dollars? Make a billion dollars and start an airline. That in some respects is the story of Kingfisher Airlines, started by the flamboyant Vijay Mallya and brought low by hubris. At the end of this month, it will be a year since the carrier stopped flying. Mallya said on Tuesday he's not giving up on his dream, that he's presented three separate revival plans to the regulator, which hasn't responded to them.
The Kingfisher story has been dominated by the battle between the banks, seeking to recover loans of over 7,000 crore, and the carrier's parent, the UB Group.
But how are the men and women who worked at the airline coping?

SpiceJet says still looking for strategic partners

Chennai: The Kalanithi Maran-owned SpiceJet is looking for a strategic partner, and not a financial investor, to help improve efficiency, an official said at the sidelines of its annual general meeting in Chennai Wednesday.
"We need a strategic partner who can bring best practices, improve our efficiency," said Sun Group CFO S L Narayanan. This statement comes amid recurring buzz in the media about SpiceJet looking to shed stake to overseas carriers such as Emirates Airline and Tiger Airways.
Narayanan said the carrier has met some potential partners but hasn't finalised anything yet. "It would take some time," he said. SpiceJet will also be restructuring some routes that have proved unviable and would add more international routes.
Read News In Full 25/09/13 Economic Times

SpiceJet not worried about competition from new players: Group CFO

Chennai:Kalanithi Maran owned SpiceJet today said it is not worried about the new players coming into the Indian skies. Instead, it said that competition will bring out the best in the company.
In response to shareholders question on what kind of impact will the airline have due to Tata's tie up with AirAsia and Singapore Airlines, S L Narayanan, Group CFO, Sun Group said, "We emerged strong in the recent years and the competition will bring out the best in the company. We are prepared and we will give strong fight".
He said that the airline will focus on products, markets, customers and profitability.
Read News In full 25/09/13 TE Narasimhan/Business Standard

Tatas in race for Chennai, Kolkata airport projects

Tata Sons is set to make another big splash in aviation after its recent foray with Singapore Airlines and Air Asia. CNBC TV 18 learns that Tata Group is likely to bid for 100% stake in two airport projects, i.e they are planning to bid for the government’s stake in the Chennai and Kolkata airports. The government had allowed privatisation of six airports in August this year. Tata group’s interest in this clearly comes at an appropriate time, considering that the Tatas have announced their two airline joint ventures (JVs), one with Air Asia and one with Singapore Airlines recently. Experts say that this airport foray will not only help them expand their base further but help them gain market share in the aviation space too. We further understand that Tata group may look at investing around Rs 2800 crore on brownfield expansion for these two projects, which include investments for their metro connectivity, and addition of new terminals too.
Read News In Full 25/09/13 CNBC-TV18/moneycontrol.com

Airlines can charge transaction fee

Mumbai: The civil aviation ministry has decided to allow airlines to charge transaction fee but has insisted that the amount should be part of the airfare and not outside it.
In his order last week civil aviation secretary K N Srivastava ruled that the terms - transaction fee, commission, convenience fee all mean the same which is  payment of remuneration to intermediary.
The order further said all these forms of fees are permissible provided these are shown as a part of the fares and no amount is collected from consumers over and above this.
The  order will also allow airlines to follow  dual pricing (differential fares) "Price differential  can exist between a ticket purchased directly from an airline counter or their website or through its website and through an intermediary,'' the civil aviation secretary  order said.
Read NJews In Full 25/09/13 Aneesh Phadnis/Business Standard

Government may soon do away with overseas flying rules of aircraft

New Delhi: Government may soon do away with the rule that allows an Indian carrier to fly overseas only after it has flown within the country for five years and has a 20-aircraft fleet, with officials saying there was no justification for such norms to continue now.
A note for the Union Cabinet has been moved by the Civil Aviation Ministry some weeks ago and the matter may be taken up in the next few weeks, they said.
"There is no valid reason for such a rule to exist in the present context," an official, requesting anonymity, said.
At present, only airlines with at least five years of continued domestic operations, a minimum of 20 aircraft and paid-up capital of Rs 100 crore can fly abroad, under the rule that was approved by the Cabinet in December 2004.
Read News In Full 25/09/13 PTI/Economic Times

In a first, IndiGo opts for bigger Airbus planes

Mumbai: IndiGo will induct 20 Airbus A321neo planes, a larger variant of A320, as India becomes a battleground for existing airlines and new players. In 2011, the Gurgaon-based airline placed an order of 180 narrow-body Airbus aircraft, including 150 fuel efficient A320neo and 30 A320s. The deal allows the airline to opt for the bigger A321 planes over the A320s and it is exercising the choice now.
IndiGo president Aditya Ghosh told Business Standard the airline had opted to take 20 A321neo, which can seat 30-40 additional travellers than the  conventional 180-seat A320s, which it flies now. Earlier in the year, Airbus announced upgrades to A321neo, increasing its capacity to 236 seats and promising extra five percent reduction in unit costs. It is not clear whether IndiGo will select the 220-seat or the 236-seat configuration.

SpiceJet shortlists five candidates for CEO post

Chennai: Kalanithi Maran-owned budget carrier SpiceJet has shortlisted five candidates for the chief executive officer's post following the resignation of Neil Mills.
"Five candidates have been shortlisted for the post of CEO and Mills' position would be filled soon," S L Narayanan, Sun Group CFO, said today on the sidelines of the company's annual general meeting here.
The airline had informed the BSE in August that Mills' resignation was accepted by the board of directors.
Replying to shareholder queries on the impact of Tata's tie up with AirAsia and Singapore Airlines, Narayanan said, "We emerged strong in the recent years and the competition will bring out the best in the company. We are prepared and we will give a strong fight."
He said SpiceJet will focus on products, markets, customers and profitability.
Read News In full 25/09/13 PTI/Economic Times

Airfare should specify travel agent fee: Govt

Mumbai: The civil aviation ministry has decided to allow airlines to charge a transaction fee but has insisted the amount be part of the airfare and not outside it.
In his order last week, Civil Aviation Secretary K N Srivastava ruled the meanings of transaction fee, commission or convenience fee were the same — payment of remuneration to an intermediary. The order said all these were permissible, if shown as a part of the fare, and no sum was collected from consumers over this.
The  order will allow airlines to follow dual pricing (differential fares) "Price differential can exist between a ticket purchased directly from an airline counter or their website or through its website and through an intermediary,'' the aviation secretary’s order said.
"It is an accepted principle that a passenger should be charged only for the services utilised. Therefore, if he has not availed the services of travel agents, it would not be appropriate to burden with the commission payable to travel agents.”
Read News In Full 26/09/13 Aneesh Phadnis/Business Standard

Travel company fined Rs 1.4L for leaving clients without hotel accommodation

New Delhi: When two senior officials of a Delhi-based private company booked an eight-day official tour in Germany with a well advertized travel company, little did they know that they would end up without accommodation in Munich during their stay.
Holding Nimble Travels Ltd guilty of deficiency in services for cancelling the duo's hotel accommodation in Munich without their knowledge and leaving them helpless, the district consumer disputes redressal forum (central district) under its president BB Chaudhary has ordered the travel company to pay the complainants Rs 1.4 lakh towards accommodation charges, compensation for causing harassment and mental agony, and litigation expenses.
Nekkanti Ram Rao and G Venkata Rajashekhar, MD and director of Apex Encon Projects Pvt Ltd, had engaged Nimble Travels to book their trip to Munich from April 21 to April 27, 2007 to participate in the Bauma 2007 International Exhibition.
Read News In Full 25/09/13 Richi Verma/Times of India

20/5 rule to fly abroad not needed: Aviation minister Ajit Singh

New Delhi:  India is finally set to end the discrimination its airlines have faced to fly abroad, even as the red carpet was rolled out for foreign carriers to fly into the country. Aviation minister Ajit Singh has told TOI that the twin conditions that an Indian airline must be five years old and have 20 aircraft in its fleet to start overseas flights are both "unreasonable and not needed".
"This rule was wrong and possibly manipulated in the first place. The 20/5 conditions are not required. Indian airports need to become aviation hubs and our airlines should not face such restriction in flying abroad when foreign airlines do not face any such conditions," Singh said. The change comes as India is set to have a new low-cost carrier AirAsia India and a full service carrier Tata-Singapore Airlines.

Indigo FY13 profit rises to Rs 993 crore

New Delhi: No-frill carrier IndiGo today announced a whopping 1,454 per cent rise in gross profit at Rs 993 crore during 2012-13 compared to just Rs 64 crore in the earlier fiscal.
Its revenue during the period grew by 65 per cent to touch Rs 9,458 crore, as against Rs 5,718 crore during FY12.
"This is the fifth year in a row that we have posted profits since we broke even in 2008-09. We submitted our financial results to the Directorate General of Civil Aviation today as per the legal requirements," IndiGo CEO Aditya Ghosh told PTI here.
During the last fiscal, the net profit of the company stood at Rs 787 crore with its EBITDAR (earnings before interest, taxes, depreciation, amortisation, and rent or restructuring costs) or the cash flow from operations at Rs 1,758 crore, he said.
Read News In Full 24/09/13 PTI/Economic Times

IndiGo beats market blues to deepen its green

New Delhi: The losses of Jet Airways and SpiceJet have been IndiGo’s gain, quite literally. Bucking the trend in the Indian aviation space, where companies have red ink splashed all over their ledgers, IndiGo, the country’s largest budget airline, has reported net profit of Rs 787 crore for the financial year ended March 31 — a five-fold surge from the previous year’s Rs 128 crore.
The company’s profit was pushed by a combination of increase in capacity — when other competing airlines were lowering their number of seats — and rise in yields through reduction in non-fuel expenses. The overall good show came despite fuel bills shooting up and a fall in the rupee’s value bumping up costs. Since IndiGo broke even in 2008-09, this was a fifth straight year of net profits for it.

SpiceJet denies stake sale talks with Tigerair

Mumbai: SpiceJet has denied it is in talks with Singapore-based low cost airline Tigerair for a stake sale. The airline was reacting to a media report which said Tigerair along with private equity investors were were in discussions to pick up 40% in the Indian budget carrier.
"We are extremely concerned at the repeated references in the media as regards SpiceJet's plans to induct a strategic investor. Many of these are speculative and misleading. While we are not averse to the idea of partnering with a reputed name in aviation, it will be improper to comment prematurely on the possibilities of a deal fructifying. That said, we also wish to categorically state that the report this afternoon suggesting that we are in the process of offloading a substantial equity stake to Tiger Airways is totally misconceived . There is absolutely no truth in that story. " said  SL Narayanan, Group CFO, Sun Group
The airline which posted an annual loss of Rs 191 crore for last fiscal has been looking to raise funds for past several months. The airline was in talks with private equity investors and Gulf airlines for a stake sale but the talks did not lead to a deal.
Read News In Full 24/09/13 Aneesh Phadnis/Business Standard

Tiger Airways gears up funds for SpiceJet bid : Srcs

Within days of the Tata Sons-Singapore Airlines joint venture for introducing a full service carrier being announced, Tiger Airways could be seeking alliance with SpiceJet  . The airline is gearing up for funds to invest in SpiceJet, reports CNBC-TV18's Kritika Saxena. After Jet Airways deal with Etihad and Tata's foray into aviation with Air Asia and Singapore Airlines, SpiceJet is next on the radar. The airline has reportedly been in talks with various investors for selling a minority stake in the company.
Read News In Full 24/09/13 CNBC-TV18/moneycontrol.com

Crisis-hit KFA in talks with foreign investor

Bangalore: Criris-hit Kingfisher Airlines is in talks with a foreign investor for potential stake sale, its Chairman Vijay Mallya said today.
He, however, refused to divulge the investor's name.
"I expect this to take some form or shape in about 90 days. That is in my own estimate. It could be longer or it could be even earlier," Mallya told reporters after the annual shareholders meeting of the company.
Kingfisher Airlines has remained grounded for almost a year now under the burden of huge debts totalling over Rs 7,000 crore and accumulated losses of more than Rs 16,000 crore.
Asked about the investor's profile, Mallya said he is unable to reveal anything at this moment as it is something that would breach the confidentiality of agreement. "The investor is very sensitive to identity being revealed. Let us really give it a good try to get KFA started," he added.
Read News In Full 24/09/13 PTI/Business Standard

Tata-Singapore Airlines joint venture to always remain under Indian control

New Delhi: The Tata group and Singapore Airlines have assured the government that control of their proposed airline venture would always remain in Indian hands, while seeking approval to offer passenger services on both domestic and international routes.
The new venture, proposed to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with $49 million of foreign direct investment (FDI).
The two partners have sought approval from the Foreign Investment Promotion Board (FIPB) for the FDI. The proposed venture would also require approvals from other agencies like the DGFT, DGCA and CBEC, besides other ministries and state government departments.
Read News In Full 24/09/13 PTI/NDTV.com

'AirAsia stake not a hurdle for Tata Sons JV with Singapore Airlines'

New Delhi: Tata Sons' investment in AirAsia India is unlikely to cause a problem for the group's latest joint venture with Singapore Airlines in obtaining a flying licence, sources in Directorate General of Civil Aviation (DGCA) indicated on Monday.
“As long as the two airlines don't have the same board members and management team and the synergies in operations and maintenance are carried out under a proper commercial contracts, there should be no problem,” said a senior DGCA official. “It's not the first time that the same promoter will hold two airline licences. Naresh Goyal's Jet Airways hold's one licence under airline code 9W while its wholly owned subsidiary Jet Lite holds the licence under code S2.”
“The question of monopolising competition also doesn't come into play as these will be two new airlines,” the official added. “If the documents are in order, I do not see Tata-Singapore Airlines facing any major hurdles in obtaining a flying licence.”
Read News In Full 24/09/13 Debabrata Das/Financial Express

Naresh Goyal to buy 1.11% stake in Jet Airways from Tail Winds

Mumbai: Jet Airways Chairman Naresh Goyal will purchase over one per cent stake in the airline from another promoter entity, Tail Winds, for up to Rs 45 crore.
In a regulatory filing, Goyal said that he would acquire 9,60,369 equity shares, accounting for a 1.11 per cent stake, in Jet Airways from Tail Winds on September 30.
Goyal currently holds 5,69,73,296 shares or 65.99 per cent stake in Jet, which would rise to 67.1 per cent after the proposed share purchase. On the other hand, Tail Winds holds 77,76,212 equity shares or 9.01 per cent stake in Jet, which would decline to 7.89 per cent stake or 6,815,843 shares after the proposed transactions.
Read News In Full 24/09/13 PTI/Economic Times

India's domestic air traffic set to grow at 10%: Airbus

London: India's domestic air traffic is set to grow at the "fastest rate" of 10 per cent against the global average of about five per cent in the next two decades, triggering a demand for over 29,000 additional planes across the world, aircraft manufacturer Airbus said today.
Air travel till 2032 will be fuelled by traffic to and from emerging markets like India, Brazil and China, and world air traffic will grow at 4.7 per cent annually, requiring 29,220 new passenger and freighter aircraft valued at nearly USD 4.4 trillion.
In its latest Global Market Forecast for the next 20 years (2013-2032), Airbus said: "Domestic flows are set to rise strongly, with domestic India growing at the fastest rate (nearly 10 per cent), followed by China and Brazil (seven per cent)."
Read News In Full 24/09/13 PTI/Economic Times

Etihad, Cameroon Air Keen to Buy Air India Jets

New Delhi: Etihad Airways and Cameroon Airlines Corp. are among companies that have expressed an interest in buying five Boeing 777-200 long-range passenger jets from Air India Ltd., a person familiar with the matter said Tuesday.
Flag carrier Air India put the five planes up for sale after higher jet fuel prices and a dearth of demand from Indian travelers forced it to ditch plans to operate nonstop long-distance flights to North America. It tried to lease the planes in 2011 but found few takers.
Airlines, cargo operators and other interested parties have until Thursday to make an offer. The deadline has been advanced from the end of December because of the interest from Etihad and Cameroon Airlines, as well as from an unnamed leasing company, the person told The Wall Street Journal.
He said teams from Etihad and Cameroon Airlines have already inspected the planes.
Read News In full 24/09/13 Santanu Choudhury/Wall Street Journal

Etihad Airways recruits 200 cabin crew from India

Etihad Airways has hired 200 cabin crew from India as it plans major  route expansion in partnership with Jet Airways. The Abu Dhabi based airline held a recruitment campaign which attracted more than 1,000 applications.
The drive was held  in Bangalore, Mumbai and New Delhi. Richard Hill, Etihad Airways’ Chief Operations Officer, said in a statement: “India will play an increasingly central part in the expansion of Etihad Airways and we are delighted that so many men and women are keen to join our ranks as members of cabin crew. Etihad has a total cabin crew strength of over 4,000 persons.
Last week Etihad announced it would double its flights to Mumbai and Delhi by the end of December. This followed the Union Cabinet approving enhanced traffic rights between India and Abu Dhabi.
Read News In Full 24/09/13 Aneesh Phadnis/Business Standard

Tata Sons-Singapore Airlines to have a 6-member board, Tatas to be represented by Prasad Menon, Mukund Rajan

New Delhi: The proposed Tata Sons-Singapore Airlines venture will eventually have a six-member board consisting of four nominees of the Indian partner and two representatives of the foreign partner, according to a proposal submitted to the Foreign Investment Promotion Board on September 20.
The joint venture company will be called Tata SIA Airlines. Singapore Airlines has sought government permission to induct $49 million to hold a 49% stake in the venture. "Upon receipt of all necessary approvals from the FIPB under this proposal, the JV company shall be capitalised to the extent of 50 crore," said the application. The Tatas will hold a 51% stake.
The proposed airlines would fly within India as well as on international routes, the two partners have said in their proposal.

Government to fast-track Tata-SIA airline

New Delhi: Desperate to shrug off charges of inertia, UPA II will fast-track the Tata-Singapore Airlines' proposal to set up a full-service carrier. While top government sources say clearances will be given without any unnecessary delays, the attempt will be to make the proposed airline take off within the remaining tenure of this regime.
The Tata-AirAsia proposal was cleared in about eight months and the Directorate General of Civil Aviation (DGCA) is expected to issue the licence by October-end and it can start flying by December. "If all documents are in place, Tata-SIA proposal will also be given the go-ahead by our government," said a source, admitting an "unnecessary and avoidable" delay in the other aviation FDI of Jet-Etihad.

Tata-SIA tie-up: Servicing an under-penetrated market

New Delhi: The planned entry of Singapore Airlines into the Indian market through a tie-up with Tata Sons could provide the airline a foot-hold in one of the most under-penetrated markets globally.
One needs to step back a little to understand Singapore Airline’s need to find a partner in India. In April, India and Singapore concluded a successful air services bilateral exchange which increased the number of seats that designated airlines could operate between the two countries by 2,160 a week.
The exchange with Singapore was a drop in the ocean as compared with what was exchanged with Abu Dhabi – 50,000 seats in a phased manner over the next three years from the current level of 13,600.

Tata-SIA partnership can be a game changer in overcrowded aviation sector

Six decades after the Indian government divested the Tatas of their majority holding in Air India by nationalising the airline, the announcement by Tata Sons earlier this week for establishing a full-service carrier, in partnership with Singapore Airlines, with a combined investment of $100 million, has not only surprised the aviation industry but evoked tremendous interest.
The warm response to the announcement, which has the potential to be a major game changer, was only to be expected considering that it was the Tata Airlines that had heralded the birth of civil aviation in India in 1932. That previous attempts to enter the airline business had been effectively foiled by certain vested interests, prompting Ratan Tata to emphatically state that the Tata group was no longer interested in forming an airline, also add to the surprise element. Emotional factors apart, the announcement is bound to raise numerous questions in the coming weeks, particularly with regard to its positive and negative impacts on the Indian civil aviation industry.

SIA puts a premium on India

Mumbai: Singapore Airlines' (SIA) partnership with the Tata Group to start a new domestic airline in India declares its designs on Asia-Pacific in a way that its previous alliances and investments have not.
Dependent on international passenger traffic, SIA is trying to reduce its exposure to markets in the US and Europe. Premium travel saw a decline on the back of a weakened Europe. The stronger market of the US is also being served by competition such as Hong Kong's Cathay Pacific with a strategic geographical advantage. Asia-Pacific then, holds the most promise for SIA.

Kingfisher Airlines asks workers to defer hunger strike: report

Mumbai: Grounded Kingfisher Airlines today made a last-ditch attempt to prevent a hunger strike threat by its employees, by asking them to wait till Thursday, as the airline expects some positive outcome from the hearing on the winding up petition against it, say sources.
The Karnataka High Court is slated to hear the winding up petition by six creditors to the airline on Wednesday.
As many as 100 city-based employees of the crippled airline have threatened to go on hunger strike from tomorrow, demanding payment of salaries which have not been paid for the past 14 months. The airline was grounded last October.
Incidentally, the airline's annual general meeting is also scheduled tomorrow in Bangalore.
"The management has asked us to defer our hunger strike plan till Thursday on the plea that it expects some positive outcome from the hearing on the winding up petition. But as of now, we are firm on our agitation plan," sources told PTI here.
Read News In Full 23/09/13 PTI/NDTV.com

Move over carpooling, chopper sharing is here

Mumbai: Carpooling to reach your work place is passe, fasten your seat belts to pool a chopper ride. At least that's what dozens of Mumbai-based entrepreneurs with factories in places like Boisar, Vapi, Nasik, Aurangabad have been discovering since the past few months.
Varun Verma (name changed on request), a 45-year old chemical engineer, has been making a grueling weekly road trip from his Nepeansea Road home to Vapi where his chemical unit is based for past 12 years. But not anymore, he has discovered chopper pooling.
"It is a nine hour journey to and fro. I leave home by 6 am and return on the same day by 11 pm as the facilities for overnight stay in Vapi are not very good,'' said Verma. So when he had to ferry a German team from Mumbai to his factory he had to hire a helicopter. But the Rs 2 lakh bill told him flying to work can't become a habit.

Uttarakhand pilot who saved 500 lives grounded as probe on damaged chopper yet to start

Chopper pilot Captain Andrew Manchanda from Mumbai saved about 500 lives in Uttarkhand in less than a week till rough weather on June 28 forced him into a hard landing in Harsil valley. Though no one was injured, the French-made Pawan Hans Dauphin N3 cracked at its rear following a 20-feet free fall and its rotor tail section had to be chopped off. According to the protocol, Captain Manchanda was grounded pending a probe, but the investigation has not yet started even though three months have already passed.
Even the damaged helicopter has been brought back to its Juhu aerodrome hangar. The chopper, all two tonnes of it, was itself air-lifted in a first-of-its-kind delicate "under-slung" operation by an Mi-17 V5 helicopter of the Indian Air Force. It came back on a trailer from Dehradhun last Thursday and engineers are now all set to repair it.

Bonanza for air travellers as more firms line up for duty-free shops

New Delhi: International air travellers flying from Delhi and Mumbai will soon have more shopping options.
The Irish duty-free major Aer Rianta International and South African duty-free company Tourvest Holding have made proposals before the Foreign Investment Promotion Board to set up duty-free shops.
Analysts feel that with the new players getting into the nascent airport retailing business and existing ones looking to add more brands and categories, the shopping experience will become even better for travellers.

Tata, SIA incubated venture in April last year

New Delhi: Singapore Airlines (SIA) and former Ratan Tata, former chairman of Tata Group, rekindled talks to set up a joint venture domestic air carrier way back in April-May last year, when the government announced it was planning to liberalise foreign direct investment rules in the aviation sector.
Sources in the know say SIA, being wooed by several Indian groups, made the first move by approaching the Tatas, its old choice for a joint venture. In 1995, now SIA Chairman Stephen Lee Ching Yen, close to Ratan Tata, as a manager in the airlines was closely involved in an aborted Tata-SIA venture for setting up a domestic airline.

IndiGo, GoAir and other 'low-cost' carriers, charging more than full service ones

New Delhi: 'Low-cost' carriers in India are no longer what they claim as they have been found charging fares higher than the full service airlines.
The low cost carriers (LCCs) were found to be charging 10 to 50 per cent more than their full service counterparts on some of the routes in the month of August, which usually is considered a lean period for the aviation sector, a study by aviation regulator DGCA said.

Tatas, foreign firms participate in pre-bid meeting for airports: report

New Delhi: Major Indian companies like Tata and foreign firms like Fraport and Celebi participated in a pre-bid meeting for privatisation of Chennai and Lucknow airports, according ot official sources.
Turkish firm Celebi, which provides ground-handling services in Delhi and Mumbai airports, the Frankfurt airport operator and representatives of companies like GVK and Sahara also attended the meeting on Friday, ahead of the formal inviting of bids for operating and managing the two major airports, the sources said.

Baba Ramdev mistaken as 'most wanted jihadist' at Hethrow airport

New Delhi: British Custom officials mistook Baba Ramdev for most wanted terrorists Mohammed Atef and Ayman Al Zawahiri, say our sources. Ramdev was detained and questioned at Heathrow airport for over six hours on Friday by British customs officials.
His resemblance to the most wanted jihadist confused the officials at the airport who compared his photographs with that of Al Zawahiri and Mohammed Atef. According to our sources, British officials even searched Baba Ramdev on google and found him to a known personality in India.
They are learnt to have also double checked Ramdev's profile with their counterparts in UK Embassy in India.

The inside story of how Baba Ramdev was given a clean chit at Heathrow Airport

Even as Baba Ramdev was being questioned by the customs officials at the Heathrow Airport after they had detained him, a curious drama was being played out behind the scenes.
Sources reveal that at the time of Baba Ramdev's detention, senior BJP leader Venkaiah Naidu was in London and that it was he who got in touch with Indian Deputy High Commissioner Dr Virander Kumar Paul there and asked him to intervene in the matter.
By that time, other prominent leaders had also got in touch with the Indian Mission regarding the same issue.

The three aces that could make the Indian aviation deck heavy

Three established international carriers have announced their interest to enter the domestic Indian civil aviation space since the government decided, in September 2012, to further open up the skies. Fresh competition and a gradual shift towards rationalization of aviation turbine fuel by different state governments will mean more competition, more seats, and hence cheaper air tickets for Indian flyers in the near future.
The proposed move reaffirms the potential offered by the civil aviation market. These three deals, which  are in different stages of approval, could be the game-changer in a market which is staring at cumulative losses of $450 million in the July-September quarter.

Sky Is The Limit

According to a recent report by Ascend Advisory, an aviation consultancy firm headquartered in the UK, sales of aircraft across the globe have been hit by the economic downturn. In 2012, business jets saw a ‘low year’ with just 675 deliveries, virtually flat compared to 2011 and only half the number of deliveries five years ago. Also, while North America and Europe remain the two key markets for business jets, their share of deliveries has fallen from almost 90 per cent 10 years ago to just 70 per cent in 2012. The forecast is that growth will come from emerging markets like Latin America and Asia-Pacific, which accounted for 30 per cent of the deliveries last year.
India, according to KPMG, has more than 165 business jets, up from 23 in 2005. Amber Dubey, partner and head , aerospace and defence, KPMG India, says the country has the Asia-Pacific region’s second-largest business jet fleet after China. In India, business jets have grown at a CAGR of 32.5 per cent between 2005 and 2012. Between 2011 and 2012, however, the growth has been barely 7 per cent. “In 2013,” adds Dubey, “the industry expects to add another five to seven business jets”.

AirAsia's India partner opposes Tata-Singapore Airlines joint venture

The Tata group's joint venture with Singapore Airlines to set up a full-service carrier in India appeared to have flown into an air pocket on Friday, with one of the Indian conglomerate's partners in an earlier low-cost airline venture hitting out at the decision, calling it "unethical" and saying he was shocked to hear the news.
Arun Bhatia, whose Telestra Tradeplace is one of the partners in AirAsia India, the soon-to-be-operational three-way venture that also includes Malaysia's AirAsia and Tata Sons, told ET NOW that he was completely in the dark about any talks for the full-service carrier between the Tatas and SIA.

Tata-SIA venture irks AirAsia JV partners

New Delhi: On a day when union aviation minister Ajit Singh cleared the AirAsia India proposal to launch a low cost airline in India, cracks appeared in the relationship between its joint venture partners - AirAsia, Arun Bhatia and the Tatas. And it's the Tata Sons' tie-up with Singapore Airlines to launch a full service carrier which has reportedly irked Arun Bhatia of Telestra Tradeplace, who is among the three partners in the airline venture.
Bhatia, who has a 21% stake in AirAsia India, has told ET Now that it was 'unethical' of the Tatas not to keep the partners informed about their proposed full service venture with Singapore Airlines. The ET Now report said that Bhatia was willing to buy out Tata Sons' 30% stake in AirAsia India, if offered. The Malaysian LCC has a 49% stake in the budget airline that is expected to be launched by the year-end. Bhatia did not respond to TOI's calls on the issue.
The Air Asia file will now be sent to DGCA for licence issuance, which is just a mere formality. " Singh told TOI on Friday night.
Read News I*n full 21/09/13 Saurabh Sinha/Times of India

Tata-Singapore Airlines tie-up seen reaffirming India aviation potential

A new Indian airline planned by the giant Tata Group and Singapore Airlines reaffirms the nation's longterm potential as an aviation market, despite the sector's current financial turbulence, analysts say.
Tata Sons, the holding company of tea-to-software conglomerate Tata Group, and SIA said this week they were setting up a full-service airline after two failed joint bids to take to Indian skies.
"This investment affirms India's reputation as a lucrative aviation market in the long-run," Amber Dubey, aerospace head at global consultancy KPMG said.
The $100-billion Tata Group in 1932 pioneered air travel airline in India with Tata Airlines, later taken over by the government and rebranded Air India.
It will hold a majority 51-percent stake in the full-service carrier while SIA will hold 49 percent as they seek to exploit one of the fastest-growing aviation markets globally.
"The proposed airline has applied for Foreign Investment Promotion Board approval," a Tata spokesman said.
Read News In full 21/09/13 AFP/Economic Times

Air Costa gets DGCA permit

Hyderabad: Regional airline Air Costa has received the air operator’s permit from the Director General of Civil Aviation, clearing the way for its take off.
The airline is now set to commence its scheduled flight operations from October. It will start its ticket sales in the next few days.
Initially, the carrier will connect to Vijayawada, Hyderabad, Chennai, Bangalore, Ahmedabad and Jaipur.
REad News In full 19/09/13 Business Line

Government may review 5/20 rule to let more Indian carriers fly abroad

New Delhi: India's cashstrapped aviation sector is celebrating an early Diwali this year with the arrival of deep pocket players like Singapore Airlines, Etihad and AirAsia on the scene. This sudden euphoria may see the government reviewing the current rule that an Indian airline must complete five years and have a fleet of at least 20 aircraft to start international flights.
"So far, low-cost carrier GoAir has applied for relaxation of the norm as it is over five years old but does not have 20 aircraft in its fleet. While we were favorably inclined to lower the 20-aircraft rule and retain the five-year bit, no final view has been taken so far. If the upcoming airlines also seek a review of the policy, we may have a comprehensive relook ," said sources.
Read News In full 21/09/13 Saurabh Sinha/Economic Times

Focus on connecting small cities by air: Manmohan

Ajmer: Small destinations in the country will have air connectivity with a network of more than 100 airports planned to meet the expected passenger load capacity of 30 crore by 2020, Prime Minister Manmohan Singh on Saturday said.
The first such airport will come up in Kishangarh town in Rajasthan’s Ajmer district, he said after laying the foundation stone for the development of the airport which is scheduled to get operational by 2016.
“An ambitious scheme to develop a network of 100 smaller airports in the country is being implemented.Focus earlier was on developing airports in metro cities and now more than 100 airports will be set up in small towns and cities,” Dr. Singh said.

MHA takes U-turn, charter aircraft to get landing permit

The ministry of home affairs had decided to stop the issuance of temporary landing permit (TLP) to crew members of foreign-registered charter aircraft and, instead, asked them to seek  employment visa to enter the country.
After dna reported on the same and the fact that this was leading to a drop in tourism and business (businessmen and elite tourists had started going to other countries to avoid such restrictions), the decision now stands reversed. Sources in the ministry said the decision had been taken due to security reasons.
In a circular issued recently to all its embassies and consulates the world over, the ministry has said that it will continue to grant TLP to crew members of foreign-registered charter aircraft and private non-revenue flights, subject to regular checks and fee payments.
Read News In Full 21/09/13 Shahkar Abidi/Daily News & Analysis

Now, operators can pay by credit card at airports in Mumbai

Mumbai: Incredible though it may sound, the Airports Authority of India (AAI) — the government organization that runs airports in the country — was stuck in the eighties till Saturday morning, which was when it discovered the credit card and its uses to collect fees from aircraft operators.
After requests from the aviation industry, the AAI on Saturday, finally, installed and inaugurated credit card swiping machines at the city airport and Juhu aerodrome, making them the first two in the country to allow cashless transactions. In the coming weeks, the facility is expected to reach other airports too. "It will be a huge relief, especially for those aircraft charter operators that fly to four-five airports in a day, for instance during election campaigns. Till now, the operators had to carry nearly Rs 50,000 or more cash, depending on the aircraft type, distance flown, parking facility needed, etc," said Captain Uday Gelli of Rotary Wing Society of India, the helicopter industry representative that put the credit card payment request before AAI two years ago.
REad News In full 21/09/13 Manju V/Times of India

Detention at Heathrow Airport: Ramdev says never done anything wrong or illegal in my life

London: A day after he was detained and questioned here at Heathrow Airport by custom officials for several hours, Yoga Guru Baba Ramdev today said he was not given any explanation for the action by the authorities and claimed he was not involved in anything illegal.
"I have never done anything wrong or illegal in my life. I was detained for eight hours at the airport, but was not given any explanation. I asked them repeatedly to give me a reason for detention; but they told that they cannot disclose it to me," Ramdev said.
Ramdev's detention has drawn criticism from the BJP which urged the Centre to intervene. BJP President Rajnath Singh termed the detention of the yoga guru as "serious" issue and asked the Centre to take cognisance of the matter.
There was lack of clarity over the reason for his detention at the airport.
REad News In full 21/09/13 PTI/Financial Express

Gold smuggling up by 5-fold at IGI airport

New Delhi: Gold smuggling operations at IGI airport are getting bigger and smarter. The quantity of the metal being recovered from suspects leaving the Terminal-3 has gone up by 550% over the last one fiscal.
Officials say it is not only the undercover gold trade that is picking up, but the operators are also becoming better at hiding their trails, forcing law enforcers to exercise greater alertness and intelligence in order to catch them.
"What we have been seeing for the past few months is a dramatic changing of the profiles of the couriers. A few months ago, smugglers of a particular ethnicity carried gold. Then it was a middle class man from another region. The handlers changed the profile of the courier to women and the latest case was of a lower middle class person from UP," said an official on condition of anonymity.
The official said no one can predict what tactic the smugglers will now employ. "It's not one-way vigilance. Smugglers also profile us. They watch us examining people of a certain background and quickly change their modus operandi," another official said.
Read News In full 21/09/13 Saurabh Sinha/Times of Ind

Tata-Singapore Airlnes pact was months in the making

New Delhi/Mumbai: Key executives familiar with the talks between the Tatas and Singapore Airlnes told ET that the plan for the new airline was first mooted soon after the government cleared 49% FDI in civil aviation in September 2012.
Talks started when Ratan Tata was at the helm and continued through the transition period when Cyrus Mistry took over. Tata gave way to Mistry in December 2012.
The Tata-SIA talks went full steam ahead within days of the FIPB clearing, on March 6, the AirAsia venture. Tata Sons has a 30% stake in AirAsia India. The Tatas had taken Malaysia's AirAsia BhD, the larger partner in the AirAsia India venture, fully into confidence about the Tata-SIA deal.

Tatas apply for 'Tata SIA Airlines Limited' name

New Delhi: Starting the process of incorporating a new company for its proposed aviation venture with Singapore Airlines, Tata group has sought to register this entity as 'Tata SIA Airlines Limited'.
The application for registration of this name has been filed with the Registrar of Companies through submission of form '1A', which is the first step towards incorporation of a new company.
The registration is currently "under process" and can be approved soon, as per the latest information available with the Corporate Affairs Ministry. This would be followed by submission of various other documents, including the Article of Association, and details of the company's board of directors, share capital, business areas etc.
Going by the proposed name, the new company is expected to be a 'public limited company', which needs to have a suffix 'limited' to its name. The private limited companies need to suffix their names with 'private limited.
Read News In full 20/09/13 Economic Times

Interest conflict likely in Tata airline deals: Ajay Prasad

Cyrus Mistry has given wings to Ratan Tata's long standing dream. The Tata Group will launch an airline in partnership with Singapore Airlines. The deal is staring at a lot of ‘regulatory unknowns'. Ajay Prasad, former civil aviation secretary says there may be a case of a conflict of interest as both airlines will operate in the Indian market. However, he also feels that Subramanian Swamy’s claims on violation of FDI rules in greenfield investment may not apply here.
Below is the edited transcript of his interview to CNBC-TV18.

Tata versus Tata: Gear up for the dogfight

Mumbai: You have to give it to the Tatas. When everyone has written off the airline sector, the group lined up not one but two alliances in the country. Some might call it infatuation towards a sector that was taken away from them after they nurtured it (Air India was Tata Airlines before it was nationalized) while others might call it a shrewd business decision to invest in a sector which has mostly weak players left.
Whatever may be the reasoning for investment, what has taken everyone by surprise is the group tying up with two companies with completely different business models. While Air Asia, in which the Tata group will not be playing a key operational role, is a low cost airline, Singapore Airlines is a full-service airline.

Tata-Singapore Airlines & Jet-Etihad deal shows foreign companies are betting on long term potential

Singapore Airlines' decision to launch a full service carrier in India with the Tatas as its majority partner, following UAE national carrier Etihad Airways recent acquisition of 24% stake in Naresh Goyal's Jet Airways, signals the willingness of foreign carriers to do business in India, especially with a long-term perspective.
The Tata Sons-Singapore Airlines venture, where the Tatas will hold 51% stake and Singapore Airlines the remaining 49%, is an extension of the vision of the Tata Group, which forged a tripartite partnership with AirAsia and Arun Bhatia's Telestra Tradeplace for low-cost carrier AirAsia's entry into India.
It also shows that the Tatas want to follow the hybrid business model, of being present in both lowcost and full-service models. Analysts believe that this full-service venture will focus more on west-bound travel while the AirAsia JV will stick to ASEAN routes.
Read News In full 20/09/13 Rajesh Naidu/Economic Times

Doubts cloud AirAsia India

Tata said Malaysia’s Air Asia, its partner in the low-cost carrier (LCC) Air Asia India, is fully aware of its deal with Singapore Airlines. “Air Asia has no objection to the deal,” said a Tata Sons spokesperson.
The company said that the two ventures will have separate focus as the partnership with SIA will operate in the full-service segment, and not in the LCC space.
But some industry observers said they are concerned about the future of Air Asia India, considering the regulatory hurdles faced by it so far and the delay in starting operations.
“This announcement could play out negatively on Air Asia’s regulatory approval as Tatas have a 30% stake in the JV,” said Kapil Kaul, CEO, South Asia, the Centre of Asia Pacific of Aviation (CAPA).
REad News In full 20/09/13 Yuga Chaudhari/Daily News & Analysis

Tata-Singapore Airlines JV may leave AirAsia sanction turbulent

New Delhi: Tata-Singapore Airline JV is likely to put AirAsia India’s clearance from civil aviation in turbulence. The matter is already before Delhi Court who has asked government to reply to the charges filed by Subramanian Swamy.
Tata who gave India the first commercial airline service is back with a 51% stake in Singapore Airlines (SIA) to operate services within India. The JV will be based in the capital city.
Eighteen years ago, Tata Sons and Singapore Airlines (SIA) had planned a similar venture but with resistance from domestic carriers to foreign airlines entering Indian routes, the Government did not clear it. Tata has a 30% stake in Malaysia-based AirAsia’s Indian venture. Telstra of Bhatia has 21 %.

Tata-Singapore Airlines' JV may hit turbulence over FDI

New Delhi: The Tata Sons-Singapore Airlines' proposed full service carrier (FSC) is unlikely to face any regulatory challenges but will face the same roadblock that the Tata-AirAsia JV is facing. The ongoing debate that the recent foreign direct investment (FDI) changes allow foreign airlines to invest in existing desi carriers or even go in for start-ups is going to haunt the latest proposal too.
The Delhi High Court on Wednesday admitted a petition filed by NJP leader Subramanian Swamy against the clearance given to Tata's JV low cost airline with AirAsia and asked the Centre to clarify this policy within four weeks. Swamy says the newly-relaxed FDI policy allows investment in existing carriers alone and not start-ups like AirAsia India. The government had recently allowed foreign airlines to hold up to 49% stake in Indian carriers.

Tatas plan to set up an Aircraft MRO unit in India

After making a failed attempt almost two decades back to get into the Indian aviation sector, the Tatas are now returning to the segment with a vengeance. After announcing plans to part-own two domestic airlines in India, the salt-to-software conglomerate is now looking to set up a maintenance, repair and overhaul (MRO) unit for planes in India.
"The Tata Group is in talks with the AAI," said a top government official. "The group is looking to secure space for the MRO operations right now," he added without elaborating. An official from Tata Group declined to comment.
Earlier in the day, the group said it has signed a pact with Singapore Airlines to set up a full service carrier in India. The group plans to control 51% of the airline, while the rest will be held by Singapore Airlines, it said. It has another tie-up with AirAsia to launch a low-frills airline in the country.

Indian aviation market would turn into battle-field: Experts

New Delhi: The Indian market would turn into a battle-field between Gulf and Southeast Asian airlines targeting the growing air traffic, with Jet and Etihad and start-up airlines like AirAsia India and Tata-Singapore Airlines also wooing Indian travellers, experts said today.
Almost all experts termed the Tata-SIA deal as a welcome development in the lucrative but under-penetrated Indian market and expressed hope that enhanced competition would make air travel more affordable.
"This is a very welcome development considering that the air market in India is under-penetrated and has tremendous potential for growth.

Singapore Airlines may develop Delhi as long haul network hub

Mumbai: Singapore Airlines might develop Delhi as a hub for its long haul network, analysts and experts have said.
On Thursday, the airline announcing a joint venture (JV) with the Tata Group and would hold 49% in the airline.
“Singapore Airlines’ (SIA) latest investment with Tata Sons on an Indian premium carrier appears to be a double-edged sword. On the plus side, Singapore Airlines has the expertise to create premium products and this deal enables it to tap into India's growth in international travel,” said Hong Kong-based aviation analyst Daniel Tsang.
Furthermore, SIA could use New Delhi to launch new flights to North and South America alongside its Indian subsidiary, while picking up domestic feed traffic at the same time, thereby remedying SIA's network deficiencies, Tsang added.
Indian government rules do not allow airlines with less than five years of operations (within India) and 20 planes to fly abroad. There is a move to amend the rule but no decision has been taken yet.
Read News In full 20/09/13 Aneesh Phadnis/Business Standard

AirAsia India may miss 2013 deadline

Chennai: AirAsia India may miss its 2013 deadline to start services as the joint venture with Tata Sons and Telestra TradePlace is entangled in approvals and clearances with the ministry and regulatory agencies.
AirAsia founder Tony Fernandes was aiming for a year-end commencement of services from Chennai connecting tier-II and tier-III cities in the southern region. The airline had readied human resource and infrastructure to start operations before November. The airline had recruited its top management staff, flight attendants and had also set up a small office at the Chennai airport. But, it is expected to take longer as the airline does not want to hurry its launch.
Airport sources said that AirAsia wanted to bring in the low-cost model they had successfully experimented at Malaysia and requested the Airports Authority of India (AAI) to allow them to take over the old domestic terminal, which was lying empty after operations were shifted to new building.
Read News In full 20/09/13 Times of India

Delhi airport may grow into a major global hub with Tata-Singapore Airlines

New Delhi: Even though Jet Airways’ is exploring possibilities to develop Abu Dhabi as an exclusive hub to connect destinations in the Americas, Africa and UAE, Delhi International Airport Limited (DIAL) now has a new savior with Tata Sons and Singapore Airlines (Tata-SIA) announcing plans to base its operations out of the airport.
Tata-SIA will initially kickstart full-service operations on domestic turf, the airline company has evinced interest in commencing international operations out of India, if rules permit. At present, Indian government rules do not allow airlines with less than five years of operations and a fleet of 20 aircraft to fly abroad. There is a move to amend the rule but no decision has been taken yet.

Bidders for operating Kolkata, Guwahati, Jaipur airports

New Delhi: Close on the heels of starting the process of transferring AAI-run Chennai and Lucknow airports to private parties, the government has now invited bidders for operating and managing the Kolkata, Guwahati and Jaipur airports.
As part of the process to allow private parties to pick up 100 per cent equity in operation and management of six airports through the public-private partnership (PPP) mode, the Airports Authority of India issued the Requests for Qualification (RFQ) documents for the three airports, official sources said.
They said the RFQ for Ahmedabad airport, which is among the six airports to be privatised, would be issued shortly. The move follows privatisation of major revenue-earning airports at Delhi, Mumbai, Hyderabad and Bangalore.

Controversy over, Kishangarh airport to be final name

Ajmer:  Ending all controversies over naming of the upcoming airport in Ajmer district, the Airports Authority of India (AAI) will go by the name of Kishangarh airport when Prime Minister Manmohan Singh lays its foundation on Saturday.
There were demands naming the airport after Sufi saint Khwaja Moinuddin Chishty from a lobby of khadims of the dargah. Some organizations wanted it after the last Hindu king Prithiviraj Chauhan.
"The name will be Kishangarh airport on the occasion of foundation lying stone for its construction," said Ashok Kapoor, the chief security officer of the project.
"Basically, the name is important for a project which identifies it with the place but in the case of Kishangarh airport, it will be named after the world-famed marble town market," an official said. The name suits the marble lobby as it identifies their town at the international level.
REad News In Full 20/09/13 Kshitiz Gaur/Times of India

Kingfisher Default Said to Raise Airline Costs: Corporate India

Payment defaults by grounded Indian carrier Kingfisher (KAIR) Airlines Ltd. are prompting aircraft lessors to demand a premium to cover risks in the South Asian country.
Companies leasing out planes are insisting on a one-year security deposit instead of the usual three-month cover in addition to a commitment to hire the aircraft for as long as nine years, said two officials of Air India Ltd. The state-owned firm is negotiating to lease 19 Airbus SAS A320s for six years, they said, asking not to be identified because the talks are private.
Higher costs may weigh on local carriers that are already struggling with a combined debt of $13.6 billion, the region’s most expensive fuel tariffs and a falling rupee, said Mark D. Martin, chief executive officer of Dubai-based Martin Consulting LLC. Lessors including a unit of American International Group Inc. are wary after the government failed to release some aircraft grounded by Kingfisher, leading to messy litigation.
Read News In Full 20/09/13 Karthikeyan Sundaram/Bloomberg.com

AirAsia’s traffic share from India to its south Asia base rises to 54 per cent

Mumbai:  Malaysian budget carrier AirAsia's share of traffic from India to its base has increased to 54 per cent this year from 44 per cent in 2012, a growth attributed by analysts to contraction of the total market as well as its smart network strategy and promotional fares.
AirAsia reached close to the 272,627 passengers it ferried on the India-Malaysia route last year, according to data released by the Sydney-based CAPA-Centre for Aviation.
However, its onward traffic originating from India to Indonesia, Singapore, Vietnam and Thailand has surged more than 10 times to 18,435 passengers this year.
The carrier competes with Thai Airways, Malaysian Airlines, Tiger Airways, Jet Airways and Air India.
Read News In full 20/09/13 Anirban Chowdhury/Economic Times

Recovery slower-than-expected for airport operators

India Ratings & Research (Ind-Ra) says that the five airports managed by private sector concessionaires (JV airports) have witnessed negative yoy growth in domestic passenger enplanements for the first time since recovering from the global financial crisis (2008-2009). The five airports are Delhi International Airport (DIAL); Mumbai International Airport (MIAL, „IND BBB+/Stable); Bengaluru International Airport (BIAL), GMR Hyderabad International Airport (GHIAL, „IND A-/Stable) and Cochin International Airport (CIAL). Combined domestic enplanements of all the five airports declined by 6.88% to 60.68 million in FY13, though the pace of decline varies at different airports. DIAL witnessed the steepest decline (negative 9.27%), followed by BIAL (negative 8.27%), CIAL (negative 7.97%), GHIAL (negative 5.5%) and MIAL (negative 3.64%). Negative Growth in State-run Airports: Domestic enplanements in major government-run airports in Chennai, Kolkata, Ahmedabad and Goa also declined 5.27% yoy to 22.97 million in FY13 on a combined basis. The major decline was seen at Ahmedabad airport, down 15.33% yoy to 3.34 million in FY13. Short-term Decline: The decline in domestic enplanements is primarily driven by the overall slowdown of the domestic economy. However, the decline may appear a short-term phenomenon considering that the said airports together witnessed a positive CAGR of 14.44% in domestic enplanements during FY09-FY12 post the global financial crisis.
Read News In Full 20/09/13 moneycontrol.com

With Singapore Airlines, Tatas set to fill Kingfisher space

Mumbai: The Civil Aviation Ministry, on Thursday, said that it was up to the Securities and Exchange Board of India and the Corporate Affairs Ministry to clear the Tata Group’s new joint venture with Singapore Airlines.
Addressing reporters, Civil Aviation Minister Ajit Singh said: “Aviation rules do not bar Tatas from having two ventures. It is for SEBI and Ministry of Corporate Affairs to clear such ventures (in case of conflict of interest).”
In the mid-90s, the Tatas had partnered with Singapore Airlines to start a domestic airline but the Indian government rejected Tata’s proposal. There was also a move by the Tatas to participate in the proposed disinvestment of Air India and Indian Airlines, but various factors never allowed them to succeed and re-enter civil aviation.

"Tata-Singapore Airlines Venture: AirAsia has no objection "

New Delhi: Nearly two decades after their first attempt to operate an airline in India fell by the wayside, Tata Sons and Singapore Airlines announced on Thursday that they have signed a Memorandum of Understanding to set up a full-service airline.
Asked whether the launch of the new airline would not lead to a conflict of interest with Tata Sons’ three-way joint venture with AirAsia and Telstra Tradeplace for a low-cost airline, a Tata Sons spokesman said: “The two airlines do not compete in the same space. AirAsia has been fully aware of this joint venture and has no objection to the partnership.”

Govt must return Air India to Tatas: Jitendra Bhargava

After AirAsia India, Tata group has now entered into an agreement with Singapore Airlines to start a full-service carrier in India . Speaking to CNBC-TV18, Jitendra Bhargava, former ED, Air India says it’s a welcome development considering Tata Sons are the pioneers who once created Air India. However, he says there are already too many carriers in India struggling to survive and therefore, the government instead of allowing a new carrier should allow Air India to be brough into the new entity. ”It would be in the fitness of things that Tata Sons get back what they created and second Air India will have a future with the new entity in place,” he adds. According to Bhargava, government must now consider the option of giving away Air India to its the new owners under Tata Sons as creation of new airline will only make survival difficult for the existing airlines.
Read News In full 19/09/13 CNBC-TV18/moneycontrol.com

Tatas in cockpit again, tie up with Singapore Airlines

Mumbai: Tata Sons have tied the knot with Singapore Airlines (SIA) once again to form a full-service domestic airline based in New Delhi. The move comes 18 years after their last joint effort was scuttled by the government of the day.
The Tatas have already entered the low-cost carrier space in February this year after tying up with Tony Fernandes’ Air Asia. However, Tata Sons had made it clear that the airline would be run by Air Asia, which has 49% stake with the Bhatia family controlling 21%.
However, in the new venture (the groups are yet to announce a brand name), the Tatas will be the driving force with a 51% stake, with SIA taking the rest. And the two have made a commitment to the Foreign Investment Promotion Board (FIPB) to invest $100 million to begin with. In contrast, the initial equity investment in the Air Asia joint venture was only one-third at $30 million.

Staff crunch: AAI union writes to minister ahead of board meet

Mumbai: Expressing concern over the acute shortage of manpower in the critical area of air navigation services (ANS), Airports Authority Officers Association has shot off a letter to aviation minister Ajit Singh.
Airports Authority of India (AAI) board meeting will be held in New Delhi tomorrow.
"The association is intending to get your directives to the chairman for taking up shortage of manpower in ANS as top priority in the board meet and it should not be diluted in the wake of austerity measures," the association said.

Etihad to triple number of seats on Delhi, Mumbai routes

New Delhi: Days after the Union Cabinet gave its nod for airlines from India and Abu Dhabi to increase the number of flights between them, Etihad Airways announced on Thursday that by November 1 it plans to more than triple the number of seats on the Abu-Dhabi-Delhi and Mumbai sectors.
In addition, by December 31, Etihad plans to use a wide body A-340-600 aircraft on one of the two daily flights to Mumbai and the wide-body A33-200 aircraft on one of the two daily flights to Delhi. The airline will also operate a larger aircraft on the daily flight to Chennai, which can seat 174 passengers instead of the 136-seater deployed at the moment, the statement adds.
In April this year, India and Abu Dhabi agreed to increase the number of seats that airlines can offer between the two states from the current 13,600 to 50,000. The increase in seats is to happen in a phased manner over the next three years.
Read News In Full 19/09/13 Business Line

Etihad announces major expansion plans ahead of deal closure with Jet Airways

Mumbai: Abu Dhabi's Etihad Airways on Thursday announced plans to expand operations between India and Abu Dhabi, ahead of the closure of its stake buy from Jet Airways, expected by the end of this month or early next.
From November 1, the airline plans to triple the number of seats it now offers between Mumbai-Abu Dhabi and New Delhi-Abu Dhabi, it said.
"Following the recent signing of a new air services agreement between India and the UAE, we now have the opportunity to add significant capacity between the two countries, not only meeting existing demand for trade and tourist travel but also ensuring that we can meet the continued strong growth which is expected between our two countries. The big winners will be our passengers and freight customers and the economies of India and Abu Dhabi." said the airline's chief executive James Hogan.
Read News In Full19/09/13  Anirban Chowdhury/Economic Times

International flights from Chandigarh airport may start in three months

Delhi/Chandigarh: Union Civil Aviation ministry has finally approved operations of international flights from Chandigarh airport.
To begin with, two private airlines, Indigo and SpiceJet, have been given the go-ahead. Another private airline, Jet Airways, is still awaiting clearance. Initially, all three private airlines are expected to operate flights between Chandigarh and Dubai and other Gulf countries, which will prove to be a boon to residents of Punjab, Haryana, Himachal Pradesh and Chandigarh besides foreign tourists, who till now have to travel to Delhi or Amritsar to catch international flights.

Tata Sons and Singapore Airlines to set up new full-service airline

NEW DELHI: Tata Sons — the founders of Air India — are back in aviation with a bang. The group on Thursday announced it has tied up with Singapore Airlines to launch a new full-service airline in India which will initially fly on domestic routes and then head overseas too.

This new joint venture comes on the heels of Tata's partnership with Malaysian low cost carrier AirAsia under which they will launch a budget airline here possibly before the year-end.

"Tata Sons and Singapore Airlines have signed a memorandum of understanding (MoU) and applied for Foreign Investment Promotion Board (FIPB) approval to establish a new airline in India that will help further stimulate demand for air travel.... the airline will be based in New Delhi and will operate under the full-service model. Tata Sons will own 51% and Singapore Airlines will own 49%," according to a statement jointly issued.
Read News In Full /Saurabh Sinha,/ Times of India/19sep13

AirAsia in India: Now, Chennai to Kuala Lumpur for Rs 5,000

Low cost airline AirAsia announced promotional fares from several Indian cities to Kuala Lumpur and Bangkok in conjunction with its free seats campaign. These include Rs 5,000 from Chennai to Kuala Lumpur, Rs 3,820 from Chennai to Bangkok, Rs 4,000 from Kochi/Tiruchirappalli to Kuala Lumpur, Rs 6,000 from Bangalore to Kuala Lumpur Rs 5000 from Kolkata to Kuala Lumpur, Rs 3,320from Kolkata to Bangkok (all taxes inclusive fares).

Air India plans to scrap 14 ageing A320s after March

Mumbai: State-owned airline Air India plans to ground and scrap 14 ageing aircraft from its Airbus A320 fleet after March, when it expects to replace them with new cost-effective planes, a senior executive of the airline told FE on Tuesday.

Jet-Etihad deal: Nod likely in 2 weeks; Sebi to decide contours

New Delhi: The Rs 2,058-crore Jet-Etihad deal could get green signal from the Cabinet Committee on Economic Affairs in a fortnight but the final contours of the transaction will still be decided by the Securities and Exchange Board of India (Sebi).

HC seeks Centre’s reply on Swamy’s plea against nod to AirAsia

New Delhi:  The Delhi High Court today directed the Centre to respond to a plea filed by BJP leader Subramanian Swamy seeking quashing of permission given to AirAsia for its operation in India.
The court, however, declined to stay the permission given by the government for the deal and said it was only issuing notices as of now.
The bench of Chief Justice N.V Ramana and Justice Pradeep Nandrajog issued notices to the Centre, Foreign Investment Promotion Board (FIPB) and Commerce and Civil Aviation ministries and sought their responses by October 30.
It asked the government to “file an affidavit explaining the government’s policy on the issue”.
In April, the FIPB gave clearance to the $30 million deal between Malaysia-based AirAsia and Tata Sons.
Read News In Full 18/09/13 PTI/Business Line

Sun TV's frequent buying & selling of aircraft sends analysts into a tizzy

Chennai: Sun TV Network, the broadcasting company owned by billionaire media mogul Kalanithi Maran, who also owns carrier SpiceJet, is making analysts wary because of its frequent buying and selling of aircraft. The latest set of transactions in this regard happened in fiscal 2013, when Sun TV sold a three-year-old aircraft for Rs 190 crore and in its place bought a new one for Rs 295 crore. These transactions made it the company's third buy and second sale of aircraft in five years.

Mallya skips his day in court, KFA staff plea admitted

Bangalore: Vijay Mallya, the chairman of UB Group, was pushed further into a corner by the Karnataka High Court on Tuesday even as it came down heavily on Mallya for not turning up at the Court as per its orders and said that he should appear on September 25, extending the summon. The HC also offered a ray of hope to the hundreds of employees of UB-Group owned now-grounded Kingfisher Airlines, who have not been paid monthly salaries for over a year now.

Plans of flying high waiting for nosedive?

Everyone agrees that better air connectivity in the state is key to its development. But in its hurry to open new airports across Karnataka, the government did not spend enough time coming out with an airport policy, which could provide it the neccessary framework and guidance.
It soon became clear that it had not thought through things when the multiple PPP projects got underway. Both the state and the private parties involved realised the projects were not economically viable and many of the airports planned came up against one hurdle or the other, holding up their operations.

No aviation firm ready to operate from Jaisalmer

Jaisalmer: Even as Prime Minister Manmohan Singh is set to lay foundation for a new airstrip at Kishangarh area in Ajmer district on September 21, experts are sceptical about the air services from the region as no aviation company seemed to be interested or gave any indication in starting the flights. Desipte the tourist season on in Jaisalmer, where a new civil has been made ready since the last eight months at a cost of Rs 80 crore, the government has also not take up any serious effort to have air connection of the outside world with the district.

Fleecing: Kerala Chief Minister flays airline companies

Thiruvananthapuram: Chief minister Oommen Chandy has said that the state government would consider reducing the VAT on aviation fuel if airline companies end the fleecing of passengers during the festival season. “We have strong opposition to the exorbitant rates airline companies charge during the season,” he  said while commissioning the new radar at the airport  here on Tuesday.
He said that the civil aviation ministry should have some control over the air fares of private airline companies. He  was responding to Union minister of state for civil aviation K.C. Venugopal’s observation that the state had clamped a huge VAT on aviation fuel.
Read News In Full 18/09/13 Deccan Chronicle

Malindo Air to start flying to Kochi

New Delhi: Hybrid airline, Malindo Air, is set to start flying to India’s Kochi in the southern Kerala state soon.
Deccan Chronicle reported that the route would be Kuala Lumpur-Kochi.

Madhya Pradesh contemplating further cut in VAT on air turbine fuel

Indore: After already slashing VAT on air turbine fuel (ATF) to 5% from earlier existing mark of 23%, now the state government is considering to bring it further down to zero level. The move aims at wooing airline services firm Air Asia, whose officials had recently met the state government officials in Bhopal expressing its interest to develop its aviation hub in the state.

Airfare hike: Is govt under pressure from airlines on fare monitoring cell?

New Delhi:It has been a year since the civil aviation ministry announced that a fare monitoring cell would be set up to prevent domestic carriers from indiscriminately hiking cost of tickets , but the ministry is still working on the proposal.
Fares have almost spiralled by over 50- 60 per cent compared to last year. Cost of tickets booked for the forthcoming festive season till January 2014 have increased by almost 100 per cent.
Civil aviation secretary K. N. Srivastava told Mail Today on Monday that the ministry is working on the proposal for a monitoring cell but refused to give any deadline as to when it will take off.
According to sources, airlines are pressuring the government from setting up such a cell. Officials admitted that there is no mechanism to know if tickets in the lower price band had been sold or not.
A senior government official said that the delay in setting up a fare monitoring cell clearly shows that the government is under pressure from airlines. "Every year, airlines jack up fares during or before the3 beginning of the peak season, which begins in October.
Read News In Full 17/09/13 Sanjay Singh/Business Today

Air India to hedge jet fuel lifted overseas to cut costs

New Delhi:  In a major step to slash costs, Air India today cleared a proposal to enter into hedging of aviation turbine fuel its airplanes lift overseas, officials said.
A maximum of 5,00,000 barrels of jet fuel, lifted abroad, would be hedged each quarter at a price of up to USD 110 per barrel, as per a decision taken by the airline Board's Finance Committee which met here today.

Either a month's salary or hunger strike, threaten Kingfisher Airlines' employees

New Delhi: Employees of Kingfisher Airlines, grounded since last October, have renewed a demand for salary dues and served a hunger strike notice, even after Chairman Vijay Mallya recently assured that efforts to revive the airline were underway. They received their last salary this April for July 2012, sources said, adding a section of the employees in Mumbai had already started an agitation. As of March, the carrier had 2,851 employees.
Read news in full 16/09/13 PTI/Business Standard

Vijay Mallya earns reprieve from appearing in Karnataka high court

Bangalore: Chairman of UB (Holdings) Ltd, Vijay Mallya on Tuesday earned a reprieve from appearance in Karnataka high court which kept its order in abeyance for a week after the company promised to submit its audited statement of accounts relating to a share-sale deal.
The court on Monday directed Mallya to personally appear with his passport on Tuesday as the company had failed to adhere to the direction issued by it earlier.

AI hopes to beat odds to meet financial target

New Delhi:  Air India today said it expected to meet the financial targets, set by the government under a turnaround plan, in the second quarter of this fiscal.
The national carrier said it was managing to do well despite a spike in the price of aviation turbine fuel (ATF) and the fluctuating rupee.

Domestic airlines flew 17% more passengers in August

New Delhi: Domestic airlines carried 52.60 lakh passengers in August — an increase of 17 per cent against the same period last year.
According to the latest passenger data released by the Directorate General of Civil Aviation (DGCA), the number of passengers carried by domestic airlines increased in August due to the start of the peak season; the three holidays during the month (Janmashtami, Independence Day and Id-ul-Fitr), also helped. “Since Id-ul-Fitr fell on Friday, it created an extended weekend,” the data indicated.
Read News In full 17/09/13 Business Line

Flight operations from Mumbai set to get costlier

Mumbai: Cost of operations at Mumbai airport are set to rise with Mumbai International Airport Ltd (MIAL) fixing higher rent in upcoming international terminal and introducing a levy on packed food items sold on board low cost airlines.
Mumbai airport handled over 30 million passengers last year and is the second busiest airport after Delhi

Falling rupee adds Rs 100 cr to Air India's monthly expenses

New Delhi:The unexpected steep rise in jet fuel prices coupled with devaluation of rupee are adding a burden of almost Rs 100 crore every month to the expenses of state-owned Air India.   
However, the national carrier is hopeful that it will tide over the situation and meet the financial targets set by the government under the turnaround plan.   

Uttarakhand govt to invest Rs 200 cr in chopper landing facilities

Dehradun:Keeping in view the repeated natural disasters that frequently damage roads and bridges, the Uttarakhand government has planned to spend around Rs 200 crore to strengthen the civil aviation sector and set up 40 chopper landing facilities in the hill state.

BCAS orders check of passengers, baggage to election-bound states

New Delhi: Reports of transportation of unauthorised arms, contraband and large sums of money to the five poll-bound states on chartered aircraft, helicopters and through passengers of commercial airlines have prompted Bureau of Civil Aviation Security (BCAS) to modify standard operating procedures (SOPs) and issue fresh guidelines to ensure a "level playing field during the election process".

The IAS flies abroad

New Delhi:The Congress Party-led United Progressive Alliance government supposedly believes in personal austerity, but that clearly does not extend to the perquisites of office for India's most senior officers.

Two former Vancounver airport screeners on trial for smuggling ecstasy

The trial for two former security screeners accused of helping to smuggle drugs through the Vancouver airport began in B.C. provincial court on Thursday. Ajitpal Singh Judge and Gurvinder Singh Pahl were arrested in 2011 and charged with conspiracy to commit an indictable offence, possession for the purpose of exporting, and breach of trust by a public officer. The pair worked for a security company contracted by the Canadian Air Transport Security Authority and allegedly helped a man named Dylan Green smuggle 15 kilograms of ecstasy through the airport. Police say Green was stopped in May 2011 by Canada Border Services Agency officers in the post-security section of U.S. departures. They say he admitted he was carrying drugs in his backpack. Green entered a guilty plea in court on Thursday.
Read news in full 16/09/13 CanIndia

Airports Authority of India unions write to CMs against airport privatization

Ahmedabad: The joint forum of unions and associations of Airports Authority of India (AAI) has sought the intervention of chief ministers of six states to stop the privatization of the six airports by the Ministry of Civil Aviation.
The Airports Authority Employees' Union (AAEU) at the Ahmedabad airport last week wrote a letter to chief minister Narendra Modi demanding immediate intervention and stopping the proposed action of privatization by the Central government.

Jet Airways' commercial strategy head KG Vishwanath steps down

Mumbai: Jet Airways' head of commercial strategy KG Vishwanath has put in his papers — the second key resignation in less than four months — even as the airline awaits regulatory clearances for its stake sale to Etihad Airways.
A senior executive at the airline confirmed the development. Also, one of the airline's key directors and a key member of the promoter group, Anita Goyal, has been shifted from her current position as executive vice-president of network planning and revenue management to an advisory role, he added.

Air tickets booked in advance get costlier; cost jumps 56% in 1 month

In the latest blow to air travellers, Indian carriers have hiked fares for advance purchase, making tickets booked even three months ahead up to 56% costlier over last month.
Roiled by recent fuel price hikes, the rupee's sharp fall against the US dollar and lower margins from previous rock-bottom fares, carriers such as Jet Airways, IndiGo, SpiceJet and GoAir have continuously been raising fares in September. The first hike was an average 25%; it was followed by another 15% rise. While drastic increases are usually implemented for spot or instant fares, travel company executives said the rise in advance purchase tickets was worrisome.
Read News In Full 16/09/13 Anirban Chowdhury/Economic Times

Kingfisher Airlines case: Karnataka HC summons Vijay Mallya

Bangalore: The Karnataka high court on Monday directed UB group chairman Vijay Mallya to appear before it on Tuesday in connection with a bunch of winding up petitions filed by creditors who are trying to get back close to Rs 600 crore from his company.
Justice Ram Mohan Reddy asked Mallya to appear in court and bring along his passport.
Certain companies, including BNP Paribas, which are creditors to United Breweries Holding Limited had filed company petitions in the high court seeking winding up of UBHL as the holding company was unable to pay its debts.
UBHL, holding company of the UB group, is contesting in the court the admission of six winding up petitions filed by aircraft lessors and financiers of crisis-hit Kingfisher Airlines last year.
Read News In Full 16/09/13 PTI/Times of India

Jet-Etihad Airways deal challenged in Supreme Court

New Delhi: The controversial multi-crore Rupees Jet-Etihad Airways deal today reached the Supreme Court with senior BJP leader Subramanian Swamy filing a petition seeking to quash the approval given to it by the Centre.
In a voluminous petition, Swamy also sought a CBI probe against the government officials who had cleared the deal.

Are you willing to bet on aviation?

New Delhi: The past year has seen changes in the structure of the Indian aviation industry. My views on the sector remain jaundiced. Airline stocks are always disastrous for long-term investors. Very few airlines make money consistently due to extreme cyclicality.
However, precisely due to the cyclicality, it is sometimes an attractive short-term trading play. Stock prices can crash, recover and crash again in short sharp bursts of action. If the trader is on the right side of these moves, he can make quick money.

IGI to test US body scanners at terminal 1D

New Delhi:The mundane task of scanning what gets on an aircraft from IGI Airport's low-cost domestic terminal, 1D, is all set to become an eye-popping one. The aviation authorities have decided to install body scanners at this terminal by the year-end to test and evaluate a new technology being used in the US for acceptability in India.
According to sources, the United States Trade and Development Agency offered to get one of its leading scan manufacturers to give one or two machines to India for testing, so that the country can see how useful they are and then hopefully place a big order.

HC clears trial of officer who flew family around the world in Rs 1 lakh

Mumbai: The Bombay High Court has dismissed IPS officer Manoj Malaviya's petition seeking relief in a 2010 case where he was charged with corruption and possession of assets disproportionate to his known sources of income.
The high court decision paves the way for the Central Bureau of Investigation to prosecute Malaviya, who as additional commissioner of the Bureau of Civil Aviation allegedly vacationed in 28 international destinations with his family by pulling favours from various quarters.
Malaviya, a 1986 batch IPS officer who was on deputation with the civil aviation ministry, allegedly used his influence with domestic and international carriers, airport operators, travel portals and various other private companies in the aviation sector.