Six Air India international flights cancelled today

Air India pilots strike entered its ninth day on Wednesday with 6 international flights from Delhi and Mumbai cancelled causing inconvenience to passengers, media reports said.

On Tuesday, the Air India management put out a contingency plan to allow bookings on certain sectors from May 16 to 20. However, there no signs of a possible resolution of the deadlock as neither the civil aviation ministry nor the Air India management made any moves to initiate talks with the striking pilots.

Meanwhile, passengers booked on Air India flights made alternative bookings on other airlines as a contingency plan.

http://www.hindustantimes.com/News-Feed/SectorsAviation/Air-India-crisis-6-international-flights-cancelled-on-Day-9/Article1-856451.aspx

China Airlines launches freighter service to Chennai

Likes to increase the service to thrice a week subject to reduction in aviation fuel prices

China Airlines of Taiwan, on Wednesday, announced the launch of its bi-weekly freighter service to Chennai.

“This is a very valuable route,” China Airlines Senior Vice-President Brian Chou said, about the Taipei-Kuala Lumpur-Chennai-Luxemburg service. The stopover here, on Wednesday and Sunday mornings, would be for 2 hours and 10 minutes. In the return direction, from Luxemburg, the freighter would directly go to Taipei.

Briefing press persons here on Wednesday, he said the service would further strengthen the ties between Taiwan and India. The service, Mr. Chou explained, was important for Indian exim trade as it connected Luxemburg, a hub for cargo to all destinations in Europe and Taipei, which provides connections to 25 locations in mainland China. Kuala Lumpur, he added, attracts cargo from Indonesia and other South East Asian countries.

B-747-400F aircraft, made for transporting cargo and not modified, were being used. On the potential, he said the growing market in India offered considerable scope and the airline would like to increase the service to thrice a week subject to reduction in aviation fuel prices. The export-import items would include electronics, garments and mobiles.

On the China Airlines' freight service to Delhi, Paul Hsueh, General Manager, Cargo Marketing and Planning Department, said it was stopped about two months ago. The airline, however, continues to operate its passenger service to Delhi.

China Airlines fleet includes 72 aircraft, of which 21 are freighters. The total revenue is around $3.5 billion, of which $1.5 billion comes from cargo transportation. The airline operates 90 freighter flights every week.

At a function, Economic Counsellor and Director (Economic Division) at the Taipei Economic & Cultural Centre David Hsu said the two-way trade between Taiwan and India last year was $7.5 billion. Much of the Taiwanese investment of $1 billion was in Chennai.

http://www.thehindu.com/business/companies/article3425846.ece

Pilots’ strike to hit AI turnaround plan

NEW DELHI: That state-run carrier Air India has been dragged into an abyss by its pilots is an understatement.

Banks and financial institutions that have restructured Air India’s debts and loans that amounts to `67,520 crore, now feel that the airline has pushed itself back yet again and reaching the milestones set in the turnaround plan that it has set for itself will take long to come by.

“This is the peak season. Their revenues will take a big hit. The worst would be the July-August- September quarter when traffic is at its lowest. The steep airport charges at Delhi would also affect traffic. So net, AI may struggle to meet targets they have committed as part of the TAP (Turn Around Plan). They are in a very very tough situation,” a senior official with one of the banks that has recast AI’s loans said requesting anonymity.

Air India’s debt restructuring has been done by a consortium of 19 banks, led by State Bank of India.

Air India’s debt restructuring plan has already hit a hurdle as banks have refused to convert a part of the short-term debt into equity.

According to the earlier plan, the banks were to recast `18,000 crore debt, of which about `10,500 crore would have to be converted into long-term one with a repayment period of 10-15 years and the rest was to be converted into equity. The banks had objected to the plan.

The government and banks are now working out a repayment period which is suited to both, the airline and the banks.

Analysts feel the airline should sort out the issue with its pilots at the earliest.

Amber Dubey, partner and head – Aviation, at global consultancy firm KPMG said, “The strike at Air India is unfortunate, especially given that this is the peak summer season. Stranded passengers may find it difficult to find seats on other airlines, and the few ones that do, may have to pay a significant premium. Foreign tourists would carry back unpleasant stories about India. It also puts the AI management in an uncomfortable position that has just recently succeeded in getting a `30,000 crore revival package from the ministry.”

“We hope that the issue gets resolved amicably at the earliest,” Dubey added.

http://expressbuzz.com/finance/pilots%C3%A2%E2%82%AC%E2%84%A2-strike-to-hit-ai-turnaround-plan/392483.html

HC reserves order on IPG's plea against restraint to strike

The Delhi High Court on Wednesday reserved its order on a plea by a section of Air India pilots numbering over 200 against a single-judge order restraining them from continuing their illegal strike by reporting sick and staging demonstrations A two judge bench headed by Justice Sanjay Kishan Kaul is likely to pronounce its order tomorrow on the plea by Indian Pilots Guild IPG representing the pilots of original Air India the entity prior to its merger with Indian Airlines The bench also comprising Justice Rajiv Shakdher reserved the order on IPG s plea which contended that the single-judge s ex-parte order restraining them from going on strike and terming it as illegal was without any authority IGP said the Delhi high Court lacked jurisdiction on the issue as IGP s office was in Mumbai On May 9 Justice Reva Khetrapal had restrained over 200 agitating Air India pilots from continuing their illegal strike after reporting sick and then staging demonstrations a day after the airlines management sacked 10 pilots and derecognised their union The pilots were agitating over the rescheduling of Boeing 787 Dreamliner training and matters relating to their career progression under the banner of Indian Pilots Guild IPG Justice Khetrapal issued notice to IPG and asked it to reply to a plea of Air India management seeking court s intervention and also a restraint order against the striking pilots The defendant no 1 IPG its members agents and its office bearers are restrained from illegal strike The pilots are also restrained from reporting sick holding dharnas staging demonstrations or resorting to any other modes of strike in and outside the company s offices in Delhi and other regional offices Justice Khetrapal had said in her order The single judge had also said allowing such strike to continue will cause irreparable loss to the company as well as huge inconvenience to the passengers travelling by the national carrier Filing an injunction suit against the pilots counsel for AI management Lalit Bhasin had termed the strike as illegal and said due to the pilots strike the firm has been forced to cancel some of its international flights which has resulted in extreme hardship and also inconvenience to the passengers Moreover as a result of the cancellation of flights Air India is facing huge financial loss of over Rs 10 crore per day he added.

http://www.dnaindia.com/india/report_hc-reserves-order-on-ipg-s-plea-against-restraint-to-strike_1689576

Ajit Singh extends olive branch to Air India pilots after harsh words

Civil Aviation Minister Ajit Singh has extended an olive branch to the striking Air India (AI) pilots asking them to return to work and promised to hear their grievances "unconditionally" without any "vindictive action".

As the pilots strike entered the eighth day during which the airline lost Rs.150 crore, the minister assured the pilots that "all the grievances will be heard unconditionally". "You come to talks unconditionally... please go back to work," he said.

The appeal to the pilots was made in the minister's reply to a debate in the Lok Sabha on the civil aviation sector and AI after he was taken to task by opposition MPs for making a statement outside Parliament that the country did not need a national air carrier.

"Air India management will in no way be vindictive towards any employee.... a lot of young people have just joined (as pilots). But the first priority should be that passengers are not inconvenienced," he said. This reflected a change of heart as earlier in the day the minister had said the directorate general of civil aviation will take action against those who have falsely reported sick and not joined work.

Singh came under intense fire in the Lok Sabha from agitated members cutting across party lines for the AI mess and for making policy statements outside Parliament when the House is in session. The House was briefly adjourned following bedlam over the issue.

The minister had told a TV channel that the country did not need a national air carrier hinting at privatisation of AI. He had also said he is against the government entering the service sector.

CPI leader Gurudas Dasgupta took Singh to task saying, "It is a policy decision. He is not competent to take a decision. The Cabinet has to take a decision," Dasgupta said.

The Lok Sabha witnessed an uproar during zero hour over the AI strike and the alleged comments of Singh.

http://indiatoday.intoday.in/story/ajit-singh-extends-olive-branch-to-striking-air-india-pilots/1/189036.html

Cracks in IPG: Union open to talks as 3 striking AI pilots return

New Delhi: On Day 9 of the stir by over 200 Air India pilots, three of them resumed duty on Wednesday and the protesters said they were “open” to talks with the government to resolve the impasse.

The Indian Pilots Guild (IPG), which is spearheading the agitation, said in a statement it was “open to meeting with officials of the management and/or Ministry at any place at any time in order to resolve these issues and bring an end to the current impasse.”

An AI spokesperson said, “Three sick pilots have resumed duty today”. The IPG claimed that they were not its members.

The agitation has led to curtailment of the airline’s international operations.

Even as it offered to get to the negotiating table, the IPG accused the airline management of providing “incorrect” inputs on their demands to Civil Aviation Minister Ajit Singh.

“The strike continues… We don’t want pilots to be martyred,” IPG president and NCP MLA Jitendra Ahwad told PTI when asked whether they were willing to call off their agitation that has led to a revenue loss of over Rs. 150 crore to the loss-making carrier besides causing inconvenience to passengers.

Hit by the pilots stir, the airline put into operation skeletal international services to Europe and North America as part of a contingency plan.

Singh has promised to hear the pilots’ grievances unconditionally and appealed to them to return to work, saying they had the “last chance” to revive the “almost bankrupt” airline.

He has also assured them there would be no vindictive action if the striking pilots came for talks unconditionally.

http://daily.bhaskar.com/article/NAT-TOP-cracks-in-ipg-union-open-to-talks-as-3-ai-pilots-return-3275641.html

‘Aviation industry focus tilts towards cargo operations'

Thiruvananthapuram, May 16:

After a disastrous decline 2008, demand for cargo transport rebounded sharply in 2010, says Mr Febi Varghese Managing Director, Kerala State Industrial Enterprises.

AIR CARGO OPS

KSIE is a Government-owned undertaking involved in air cargo operations and is a custodian of air cargo complexes at airports in Kerala.

The sharp fall in industrial activity from the global economic downturn, together with the rising price of fuel, had led to a 13 per cent drop in cargo traffic during 2008-2009.

But world air cargo traffic is expected to triple over the next 20 years, averaging a six per cent annual growth, Mr Varghese said.

He delivered the keynote address on the subject at the International Cargo and Logistics Conference in Kuala Lumpur recently.

World GDP and world air cargo traffic are strongly correlated and any change in GDP will have a direct bearing on cargo traffic also.

INDUSTRIAL ACTIVITY

World industrial activity is also forecast to expand at approximately four per cent per year for the next two decades, which would boost the growth of air cargo traffic.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/article3426794.ece

Air India pilots' strike heads towards endgame

Deadline looms over striking pilots, 3 break ranks to rejoin duty

New Delhi, May 16:

The ongoing strike by a section of Air India pilots appeared to be heading towards a resolution.

Cracks have already begun to surface, with three striking pilots rejoining work on Wednesday.

As the strike looked set to enter its 11 {+t} {+h} day, the decision to call off the strike hinges on whether – or how many – of the 71 pilots who were sacked are taken back.

Over 250 pilots had joined the agitation by reporting ‘sick'. This affected normal flight operations of the airline and caused a daily revenue loss of Rs 12-15 crore.

Of the 71 pilots who were terminated from service, 10 are office bearers of the Indian Pilots Guild (IPG), which spearheaded the flash strike. The other sacked pilots are members of the Guild. The Guild is the apex body of the pre-merger overseas carrier Air India's pilots.

Face-saving formula

Sources indicated that both the Government and agitating pilots are looking for a face saving formula to exit from the current imbroglio. “We are ready to provide the Government with a face saving formula provided the interests of our members are looked after,” a striking pilot said.

Political parties are also said to be using their influence with the pilots to see sense and not worsen the situation.

The agitating pilots also spoke to Member of Parliament, Mr Sitaram Yechury, who heads the Parliamentary Standing Committee on Transport, Tourism and Culture. The IPG is headed by a Member of the Legislative Assembly belonging to the Nationalist Congress Party.

On its part, the Government has shown that it is willing to talk with the pilots as long as they come back to work. The decision not to file contempt of court proceedings against the pilots and delaying the implementation of the contingency are all being interpreted as going slow on pilots.

Strong message

The Government is also keen to send out a strong message to all sections of Air India employees that this kind of action will not be tolerated in future. There were also indications that the Air India issue could be taken to the Cabinet soon.

Meanwhile, the Delhi High Court on Wednesday reserved its order on a plea by sections of pilots against a single judge order restraining them from continuing the “illegal strike” by reporting sick.

A two-judge bench is expected to pronounce the order on Thursday.

Besides, May 18 could be a decisive day for some of the agitating pilots. If the pilots who went on sudden sick leave do not report back to work on May 18, they would have remained on sick leave for 14 days.

The rules stipulate that if a pilot is on sick leave for 14 days, he or she would have to go through a full medical board before being allowed to fly. This is could take anything from a few days to a few months to complete.

http://www.thehindubusinessline.com/todays-paper/tp-economy/article3426677.ece