Friday 25 May 2012

“Pilots' stir has not affected operations in domestic sector”


The strike by a section of Air India pilots has not affected the operation of flights in the domestic sector, said Sunil Kishen, Executive Director, Air India, Southern Region, here on Friday.
Talking to journalists, Mr. Kishen said a general impression prevailed among the people that because of the strike by a section of the pilots, the domestic operations of the national carrier were affected. Totally, 108 flights per day were operated by the airline in the Southern Region, which included Chennai, Bangalore, Hyderabad, Kozhikode, Kochi, Thiruvananthapuram, Coimbatore, Mangalore, Madurai, Tirupati, Vijayawada, Visakhapatnam, Agatti, he said.
In the domestic sector, the national carrier operated 25 flights from Chennai, 18 from Bangalore, 22 from Hyderabad, seven from Kozhikode, 13 from Kochi, 9 from Thiruvananthapuram, 4 from Visakhapatnam, 2 flights from Coimbatore, one each from Mangalore, Madurai, Tirupati, Vijayawada and Agatti.
In the international sector, two flights from Male and one from Colombo is being operated, he said.
In the international sector Colombo, Male, Middle East and South East Asian destinations, flights were operated without any problem. Similarly, flights to New York, Chicago, Paris and London were being operated on a contingency plan. Only flight cancelled is to Toronto, he said. The airline had taken efforts to update information on its website and the call centre of the airline was providing the required information to passengers. All the flights in the domestic and international sectors were being operated without any problem, he added.
“Totally, 108 flights per day have been operated by the airline in the Southern Region”

Air India will hire new pilots, warns Ajit Singh


Civil Aviation Minister Ajit Singh warned on Friday that Air India would hire new pilots if the Indian Pilots Guild (IPG) did not end its strike soon.
At a meeting with five pilots owing allegiance to the IPG, Mr. Singh made it clear that the strike, if it continued, was likely to impact the payment of wage arrears to all employees by June, as promised by the government. “We can think of hiring new pilots,” he said. Air India Chairman and Managing Director Rohit Nandan joined the 90-minute meeting at the fag end.
The IPG, which has been at loggerheads with the management over its decision to let the erstwhile Indian Airlines pilots undergo training to fly Boeing 787 Dreamliner, is holding consultations with legal experts to decide on its course of action. It has been insisting on the reinstatement of 101 dismissed pilots and a solution to issues relating to their career growth.
http://www.thehindu.com/todays-paper/tp-national/article3457972.ece

GMR agreement sets government interest at naught


The Comptroller and Auditor-General has found that the GMR-owned Delhi International Airport Limited (DIAL), which runs the Indira Gandhi International Airport here, has a potential to earn Rs.1,63,557 crore over a 60-year period from the land given to it on a lease rent of Rs.100 a year, hurting the interests of the government.
A draft report of the audit says the contents of a Cabinet note approved in 2003 were “omitted” by the government in April 2006 when the Operation Management Development Agreement (OMDA) for Delhi's T3 terminal was signed to suit the interests of DIAL.
Moreover, the State Support Agreement (SSA) allows the company the Right of First Refusal with regard to a second airport planned within a 150-km radius of the airport. The second airport will be decided through a competitive bidding process, in which DIAL can participate. In the event of DIAL being unsuccessful, it will be allowed to match its bid with the most competitive bid, if it is within 10 per cent of the most competitive bid. This condition will be applicable for the first 30 years. The SAA does not elaborate on the competitive bidding process or the model that will be followed. This provision thwarts competition and provides DIAL with natural advantage on the second airport, says the report.
Government interest the casualty
The report is also critical of levying user charges on passengers, which was not part of the original agreement when the land was given to the company. “Whenever DIAL had raised an issue regarding revenue to accrue to it or expenditure to be debited to the government in contravention of the agreement, the Civil Aviation Ministry and AAI have always ruled in favour of operators and against the interest of the government.”
The report refers to the leasing of 4,608 acres for development of the airport, with an additional 190 acres leased to DIAL. The land and the premises were leased out at Rs.100 annually. For the additional 190 acres, a one-time fee of Rs.6.19 crore was levied on DIAL.
The original agreement permitted DIAL to utilise five per cent of the total area of 4,799 acres for commercial exploitation, which would work out to 240 acres. The projected earning capacity of this land in terms of licence fee over the concession period of 58 years was indicated by DIAL itself as Rs.681.63 crore per year per acre. “Thus, for the entire area of 239.95 acres, the potential earning from the land, according to the calculations worked out by DIAL itself, amounts to Rs.1,63,557 crore,” the report states. It said Merrill Lynch made a current valuation of land at Rs.100 crore an acre.
Thus, even in terms of this conservative estimate, the current value of the land available to DIAL for commercial exploitation will amount to approximately Rs. 24,000 crore. Against these calculations, the Ministry allowed DIAL to use 239.5 acres for commercial exploitation for a one-time payment of Rs.31 lakh and an annual payment of a mere Rs.100, the report notes.

Air India will hire new pilots, warns Ajit Singh


Civil Aviation Minister Ajit Singh warned on Friday that Air India would hire new pilots if the India Pilots Guild (IPG) did not end its strike soon.
At a meeting with five pilots owing allegiance to the IPG, Mr. Singh made it clear that the strike, if it continued, was likely to impact the payment of wage arrears to all employees by June, as promised by the government. “We can think of hiring new pilots,” he said. Air India Chairman and Managing Director Rohit Nandan joined the 90-minute meeting at the fag end.
The IPG, which has been at loggerheads with the management over its decision to let the erstwhile Indian Airlines pilots undergo training to fly Boeing 787 Dreamliner, is holding consultations with legal experts to decide on its course of action. It has been insisting on the reinstatement of 101 dismissed pilots and a solution to issues relating to their career growth.
Officials said Mr. Singh told the pilots there would be no victimisation, if they resumed duty without any further delay. He reiterated the government's stand that the strike was illegal and said it caused passengers untold miseries and cost Air India much.
Mr. Singh said the pilots started the strike without notifying the management and reported sick when they were not. The strike has so far cost Air India Rs. 300 crore and forced it to operate 38 international flights instead of the 45 scheduled services. The carrier has said the contingency plan will be in force till June 30.

Jet Airways to tap ancillary revenue


Jet Airways plans to increase ancillary revenue by charging passengers for preferred seats and increasing on-board sales, as the airline continues to make huge losses due to high fuel costs.
It also plans to reduce ticket distribution costs by 100-200 basis points by restructuring agents’ commissions and by levying a surcharge on its Delhi flights because of increase in airport fees, senior company executives told analysts.
Jet Airways plans to increase ancillary revenue by charging passengers for preferred seats and increasing on-board sales, as the airline continues to make huge losses due to high fuel costs.
It also plans to reduce ticket distribution costs by 100-200 basis points by restructuring agents’ commissions and by levying a surcharge on its Delhi flights because of increase in airport fees, senior company executives told analysts.

Air India strike: Ajit Singh meets striking pilots to end impasse


NEW DELHI: In a bid to end the stalemate, civil aviation minister Ajit Singh today met striking Air India pilots for the first time and told them that there would be no victimization if they resumed duty immediately and that their grievances would be considered.
For the first time in 18 days since the strike began, five pilots of the Indian Pilots' Guild (IPG), spearheading the stir, called on Singh at the ministry's headquarters here and held a 90-minute-long meeting with him. Air India CMD Rohit Nandan was asked to join the meeting at the fag end.
"We reiterated the stand of the government that it is an illegal strike. It has caused untold miseries to passengers. Air India has lost much and therefore they should come back to work immediately," Singh told reporters after the meeting.
Asked whether the pilots were willing to return to work, he said, "That you have to ask them."
Singh said that he had stated in Parliament that "we won't be vindictive. We understand their problems also. Lot of young people are there ..... They are also worried, we also realise that we want them back. But it is for them to decide."
He said that the pilots began their agitation without serving a notice and "reported sick when they were not".
The minister is understood to have told the pilots that the ailing airline had suffered a great deal not only in terms of financial losses but also on its image and the people's confidence in it.
Sources said Singh indicated that the process to revoke sack orders of pilots would begin as and when they resume duty. A total of 101 pilots owing allegiance to IPG have so far been sacked by the airline management.
http://timesofindia.indiatimes.com/business/india-business/Air-India-strike-Ajit-Singh-meets-striking-pilots-to-end-impasse/articleshow/13482930.cms

Can hire new pilots for Air India: Ajit Singh


New Delhi/Mumbai: Civil Aviation Minister Ajit Singh on Friday told Air India's striking pilots that the airline may begin hiring new pilots if the 18-day-old strike continued.
"We are not waiting for them, (we) can even begin hiring new pilots," the minister told after meeting some of the striking pilots.
"I have told them my stand, now they need to think," Singh said.
We are now flying half the international routes. And we are making a new business plan. If I have to hire new pilots, I will do that."
Ajit Singh made it clear that the pilots he met came in their individual capacity since the Indian Pilots Guild (IPG), which is at the heart of the current Air India crisis, has been de-recognized.
He reiterated to the pilots that while the government was ready to pore over their demands, the pilots would have to first call off the "illegal strike".
A senior official told earlier that some of the pilots who called on Ajit Singh wanted to rejoin duty "and said they were ready to cooperate and discuss all outstanding issues".
"They requested the minister to give them a fair chance to explain their stand," the official said.
Ajit Singh reportedly advised the pilots to rejoin duty immediately after going through the mandatory guidelines and said no one will be victimised.
"The minister said he is willing to discuss all their issues after they join back," said the official.
The strike by IPG members entered the 18th day on Friday. The strike by over 400 pilots has crippled Air India's international operations, costing it some Rs 280 crore in revenue.
The IPG said it had also offered to meet Ajit Singh and that it would end the strike when the 101 sacked pilots are reinstated.
"We sent a letter yesterday (Thursday) to the minister seeking a meeting with him so that we can explain our situation to him personally. But till now we have not received any invite," Rohit Kapahi IPG said.
"We want a chance to put across our views to him in a fair and transparent manner so that we can find a way to end the impasse."
The letter, sent to Singh on behalf of IPG general secretary E.A. Kapadia, said: "An earnest dialogue will help resolve all issues in the interest of the country, the airline and its employees."
The IPG pointed out that despite the strike, it had asked a pilot to go to Seattle May 25 to take delivery of the new aircraft joining the Air India fleet.
http://ibnlive.in.com/news/can-hire-new-pilots-says-ajit-singh/261436-37-64.html

Jet Airways likely to expand international operations


Kingfisher and Air India flounder: CAPA study
New Delhi, May 25:
With Kingfisher's international operations suspended and Air India's long-haul services likely to be subject to ongoing industrial action, Jet Airways is expected to seize the opportunity and aggressively expand its international operations, aviation think-tank Centre For Asia Pacific Aviation has said.
“In addition to increasing frequencies to existing destinations in the Gulf and Southeast Asia, the other new routes under evaluation include Beijing, Ho Chi Minh City, Shanghai, Amsterdam, Frankfurt, Munich, Paris and Rome (with Frankfurt and Munich being the priority destinations, expected to commence from the Winter 2012/13 schedule), Chicago, San Francisco and Washington,” the study adds.
Strategic development
The study also hints at Jet Airways becoming the first Indian carrier to join a global airline alliance, Star Alliance. The ongoing troubles in Air India may force the Government to do a rethink on whether Jet Airways should be permitted to join Star Alliance or not.
Initially, the Government had said that it could not proceed with the application of Jet Airways until Air India had been inducted.
“Its (Jet Airways) plans to start services to Frankfurt and Munich are linked to this strategic development,” the report adds.
Short-haul international traffic growth — to South and Southeast Asia, as well as the Gulf and Central Asia — is expected to be above 10 per cent as IndiGo and SpiceJet ramp up their overseas operations.
Traffic impact
“GoAir has also applied for permission to launch international services, despite the fact that it has not yet met the qualification threshold of having a fleet of at least 20 aircraft (it has just twelve).
However, its application is likely to be approved,” the report adds.
The study estimates that International passenger traffic is projected to grow by 8?10 per cent in fiscal 2012-13 to reach approximately 44 million. “However, much will depend upon developments at Air India, which has the largest share of international capacity to and from India at 14.4 per cent. If the failure to address human resources issues leads to ongoing industrial action and even a possible temporary shutdown of the carrier, there would undoubtedly be an impact on traffic growth,” the report states.

Aviation emission tax is here to stay: EU


London, May 25:
The EU insists that it will make no changes to its plans for a carbon tax on aviation emissions, despite continued warnings from India and China of retaliatory action, and the failure by two Indian airlines and eight Chinese airlines to submit emission data by a March 31 deadline.
“The day we get an ambitious global deal, we could amend our legislation. In the meantime, our law is here to stay,” said Mr Isaac Valero-Ladron, spokesperson for EU Commissioner, Ms Connie Hedegaard, in an e-mailed response.
“I am glad to see that India favours a global deal. So do we. In fact, the EU has been pushing for this for almost two decades.”
His comments follow a warning from the Civil Aviation Minister, Mr Ajit Singh, who told the Financial Times in an interview this week – travelling is always a two-way traffic – and that if Europe could impose sanctions, so could other countries.
In a press conference in mid-May, Ms Hedegaard disclosed that two unnamed Indian airlines and eight unnamed Chinese airlines had not given their emission reports in an otherwise successful collection of data by the European Commission.
Airlines from other nations, some of which have been critical of the aviation tax, including the US, Canada, Russia, Mexico, Qatar, Japan and the UAE, all submitted the data, alongside all EU airlines.
The 10 non-submitters represented less than three per cent of total aviation emissions, Ms Hedegaard said. They have all been given a deadline of mid June to report back their data. If they do not comply, it would be up to the individual countries, to and from which the airlines operated, to apply penalties, which they could do in a number of ways.
The EU has firmly stuck to its stance that it is only embarking on the emission charges because of a value to reach a deal at a global level, and that it would be willing to find a solution via ‘equivalent' measures in the countries affected.
In an interview with Business Line earlier this year, she warned that any attempt to undermine the law through a trade war would undermine democratically made legislation.

Pilots stir may lead to wage arrears not being paid: Minister


Management asked to be prepared to hire more
New Delhi, May 25:
The agitating Air India pilots have been told that their industrial action could put payment of wage arrears in jeopardy. The arrears were promised to be paid in June.
“Air India promised to give wage arrears in June, but it was pointed out to the pilots that due to their actions this might not happen. I also reiterated the Government stand that no talks can be held with the pilots as long as they continue with the agitation. It has been 15-16 days, in fact a bit longer since the agitation started. We are not going to be vindictive. But they have to come back to work,” the Civil Aviation Minister, Mr Ajit Singh, told newspersons.
The agitation is leading to a daily revenue loss of between Rs 12 and 15 crore for the airline.
Sections of Air India pilots have been suddenly reporting sick since earlier this month severely disrupting scheduled long haul international operations.
The Minister said he agreed to meet the pilots as some of them had sought the appointment in their individual capacity. The management has derecognised the Indian Pilots Guild, the apex body of the Air India pilots that is leading the agitation.
The pilots were also told that the management has been asked to be prepared to hire more people in case the agitation does not get over soon. The fact that the agitation was not only leading to a huge financial loss but also hardship to passengers who were booked to fly with airline was also emphasised to the pilots.
The Minister has already indicated that the Government is willing to take back the pilots whose services have been terminated provided they reported back to work. The management has terminated the duties of 101 pilots till now for participating in the industrial action.
The meeting with the Minister came a day after the IPG wrote to Mr Singh seeking an audience.
http://www.thehindubusinessline.com/todays-paper/tp-economy/article3456986.ece