Monday 18 June 2012

Air Works, Empire Aviation team up to service business jets


New Delhi, June 18:
Owners of private business jets in India can soon look forward to a one-stop shop for meeting all their travel needs. This follows Air Works making a Rs 120 crore strategic investment in Dubai-based private aviation company Empire Aviation Group. The new company will offer end-to-end aircraft asset management services for private business jet owners.
The strategic investment is through a mix of internal accruals and structured debt finance of Rs 120 crore from KKR & Co, officials said.
“If there is a owner of a private business jet who does not want to have the headache of maintaining a staff for managing the aircraft we can help them not only operating their flights but also getting clearance for the operations,” officials said. The new company expects to open the first office in the next 30-45 days in Bangalore followed by Delhi and Mumbai. Initially staff will be brought from the UAE base, officials said.
Declining to give details of the companies that have already signed up with Empire Aviation, officials said, “In the United Arab Emirates we operate for some former prime ministers and wealthiest of the wealthy.”
On how much a business jet owner would have to pay for the services, officials said: “The management model will depend on the type of aircraft. You might have some one who flies 20 per cent of the time and offers the aircraft for charter services 80 per cent of the time. The amount such a customer will pay will be different from what another customer pays,” officials said.
Air Works may look to raise between $ 35-50 million capital but there is no talk to divest at the moment, officials said. While GTI has a stake holding of about 25 per cent, Punj Lloyd holds about 19 per cent stake in Air Works. The funds will be raised primarily to create an engine Maintenance, Repair and Overhaul facility, officials said.

Airlines to cut highest level domestic fares by 20%


In what would come as respite to passengers, airlines are set to reduce maximum fares by up to 20 per cent. This follows the Directorate General of Civil Aviation (DGCA) directing these to do so.
“We raised a lot of discrepancies in the fares charged by various airlines, and asked for these to be rationalised. They (airlines) will put up a revised schedule on their respective websites in two days. These fares would be 5-20 per cent less than current fares,” DGCA chief E K Bharat Bhusan told Business Standard.
All scheduled domestic carriers are mandated to upload their minimum and maximum domestic fares for all routes on their websites every month.
SKY HIGH
Maximum fares offered by various airlines between Delhi and Mumbai
Airline
Fares* (Rs)
Air India
29,050
GoAir
19,430
Kingfisher
19,300
IndiGo
12,999
Jet Airways
NA**
*All fares are for one-way economy class travel
** Website not opening
Noticing a sudden spurt in domestic air fares in recent months, the DGCA had convened a meeting of chief executives of all scheduled domestic airlines to express concern on the exponential increase in air fares charged by a few airlines.
Bhusan said many discrepancies were found in fares, and the issue was raised in the meeting. The average air fare increase, which the regulator termed phenomenal, was despite jet fuel prices rising only 16 per cent in June, compared with June 2011.
Owing to a cut in capacity by Kingfisher Airlines and the peak summer travel season, fares reached a new high. Kingfisher Airlines, the second-largest carrier in terms of domestic passenger carriage, curtailed its capacity, reducing the number of flights from 400 a day to less than 100.
A release from the government stated it had noticed huge variation in the highest published air fares of different carriers in the same sector. “Air fares do not show an increasing trend with the date of departure. Many a times, fares of higher inventory are opened and then lowered, as the date of departure approaches. This may lead to passengers buying tickets in advance paying more than those buying tickets later,” said a release from the government. Even as passenger traffic saw a downward swing in May, compared with May 2011, air fares saw a disproportionate spurt, it added

Cidco asks Centre for early RFQ nod on Navi Mumbai airport


Also, renewed request for transfer of authority for project to state


The Maharashtra government and state-run City and Industrial Development Corporation (Cidco) on Monday sought the intervention of Ajit Singh, the Union civil aviation minister, for early transfer of responsibility for the Navi Mumbai International Airport project from the Airports Authority of India to the state.
Singh attended a meeting here, chaired by state chief minister Prithviraj Chavan, to review the progress on both the Navi Mumbai project and expansion of the Mumbai international airport.
Cidco, nodal state agency for the project, also asked Singh to accord early approval to the formal Request for Qualification (RFQ) document. Once the RFQ terms are approved, a global tender can be floated for inviting entities to bid. “The minister has assured he would give early approval,” Cidco chairman Pramod Hindurao told Business Standard.
As for the project transfer (in line with the Greenfield Airports Policy, 2008), “If the Centre accepts the state’s demand for transfer of the entire project, then all the approvals would (need to) be (only) taken from the state government. Further, Cidco would be able to issue RFQ at the earliest,” Hindurao said.
Of the 2,020 hectares required for the airport project, nearly 1,400 hectare (ha) was in Cidco’s possession, while the state government agreed to hand over another 150 ha. Cidco needs another 450 ha of private land, for which notices have been served under the Land Acquisition Act, 1894.As reported recently, Cidco proposes handing over a total of 22.5 per cent of the developed land to people who stand to lose theirs’ for the project (from 10 villages in the area), instead of the monetary compensation of Rs 20 crore per acre pressed for by those affected. The proposed land would be provided by the Cidco management in Navi Mumbai and the villagers would be entitled to use a portion of the developed land for residential and commercial purposes. This is being discussed with representatives of the project-affected people by a committee chaired by the Konkan divisional commissioner.

No progress in Mumbai airport slum rehabilitation


There is yet no deadline for resettlement of slums from Mumbai airport land to clear the way for the expansion project there, confirmed Union civil aviation minister Ajit Singh, here on Monday for a review.
Singh and Maharashtra chief minister Prithviraj Chavan reviewed the airport modernisation and other projects. His statement shows the state is still to make a firm decision on a complex and politically sensitive subject
There is no deadline. There are many issues...legislation may be involved,'' Singh told reporters at a media briefing following the meeting. He announced a panel of state and central bureaucrats to expedite decisions pertaining to all airport projects in the state.
The GVK group runs Mumbai International Airport Ltd. It had signed an agreement with realty company HDIL five years earlier for slum rehabilitation. About 85,000 families were to be shifted in seven years. Till now 11,000 tenements have been constructed and 18,000 more are under construction to house those shifted. However, the government is still to finalise an eligibility criterion; a survey to identify “eligible” slum dwellers has also not been completed. Of the airport land, 276 acres has been encroached by slums. Once cleared, the airport operator wants to use the land for aeronautical and commercial use. HDIL officials were not available for comment.
Singh and Chavan also discussed issues concerning the airport projects at Navi Mumbai, Juhu, Chakan (near Pune) and Nagpur. Chavan said the government was negotiating to acquire land and preparing a rehabilitation plan for affected villages.
AI pilots
Singh has asked the management of government-owned Air India, currently weathering a strike by pilots on its international routes, to study how the current number of pilots would mesh with its new business plan, which is under preparation. AI will be inducting Boeing 787 Dreamliners and will prepare the new plan in the next few months. Managing director Rohit Nandan said he was taking inputs from all their offices abroad in this regard. AI is rationalising routes and plans to cancel loss-making ones. It has 720 pilots, including 450 union members on strike for the past 40 days.
Singh continued his firm stance against the striking pilots, stating they had to first return to work unconditionally. Singh also made it clear the government's and the AI management's negotiations with the erstwhile Indian Airlines pilots following their strike last May could not be used as a precedent this time.
"Today's situation is different. The (Union) cabinet has approved a Rs 30,000 crore revival plan. There was no reason for pilots to go on strike in the peak season. Air India's performance had shown improvement. Revenue were up 30 per cent. Aircraft utilisation had improved (when the strike began),'' he said.
http://business-standard.com/india/news/no-progress-in-mumbai-airport-slum-rehabilitation/477802/

Won't ban airlines, but impose penalty: EU


Airlines whose carbon emissions are more than prescribed cap have to reduce emissions or pay for it

The European Union (EU) has decided it would not ban foreign airlines that have refused to share their carbon emission data from entering EU airspace. However, it said stringent financial penalties would be imposed if these failed to comply with the laws by January 2013.
Refusal to share carbon emission data is a violation of the EU’s emissions trading system (ETS) laws
In January, the 27-member EU bloc had decided to include the aviation sector under the EU ETS. Since then, it has asked all domestic, as well as foreign airlines, to comply with the changed laws and share their carbon emission data with Brussels. The airlines would now need to follow a specific benchmark on carbon emissions or pay a carbon tax, along with a penalty.
However, India and China have refused to share the data. The two nations also indicated severe implications if the EU banned their airlines from entering its airspace.
“In the case of 2011 data, the penalties were not the same throughout the EU, but were determined by each member state. These apply to airline operators administered by the respective member state. Overall, however, it can be said the penalties for this violation of EU law take the form of financial penalties. No airline will be banned from flying to the European Union because it did not submit their 2011 data,” Valero Ladron, EU spokesperson for climate action, told Business Standard.
He added airlines that would continue to emit more than the prescribed cap on emission would be asked to either reduce emissions or pay for the emission. Airlines can either make the payments on their own, or pass on the costs to passengers. This would mean a one-way ticket from Brussels to Delhi would cost an additional ^1.55.
“The EU legislation, like all other legislation, is very clear. If a company breaks our law, penalties would apply. We all have to take action as quickly as possible to address this source of emissions,” Ladron said, adding emissions from international aviation in Europe had doubled since 1990. These, he said, may even triple by 2020.
Officials in the Ministry of Commerce & Industry have said India would not follow any unilateral decision by another country, only adhere to laws currently being worked out by the United Nations’ International Civil Aviation Organisation (ICAO). The civil aviation ministry had said no airline would share emission data with the EU. Civil aviation minister Ajit Singh had earlier stated in case the EU imposed any restriction on Indian carriers, India would respond strongly to this.
At present, only two Indian carriers — Air India and Jet Airways — fly to Europe. A query sent to Jet Airways went answered.
“For more than 15 years, the ICAO has tried to tackle the aviation sector’s increasing contribution to greenhouse gas emissions. But after years of little progress at the international level, the European Union has decided to act. We are, however, still pushing for a global agreement under ICAO. The day ICAO succeeds, we will modify our legislation accordingly,” said Ladron.
The EU ETS, introduced on 1 January 2005, earlier covered sectors such as energy-intensive industrial installations. Following the EU legislation adopted in 2009, air operators would also be covered. According to the new laws, every year, airlines would receive tradeable allowances covering a certain level of carbon dioxide emissions from their flights. At the end of every year, operators must surrender a number of allowances equal to their actual emissions during that year.

Leading Domestic Airlines Agree to Slash Airfares in Highest Fare Bracket


Regulator had directed airlines to rein in disproportionate rise in ticket prices,starting May

OUR BUREAU NEW DELHI

Indias leading domestic airlines have agreed to slash airfares in their highest fare bracket by 5-20 % after the aviation regulator directed them to rein in the disproportionate rise in ticket prices which started from May 2012,a period when demand for domestic air travel was declining.According to a government statement,the aviation regulator Director General of Civil Aviation (DGCA),has also directed the airlines to take a relook on the route-wise airfares offered in the highest fare bucket,and rationalise those high fares.There is a complete lack of pattern.I have checked a few airlines where the starting fare is.24,000 on a major route and not one seat is sold,while another has a routine.6,000-. 7,000 ticket.The proposed 5-20 % cut is a lot as lower fares are not a problem,but the higher ones are, DGCA chief Bharat Bhushan told ET.The development comes as DGCA chief convened a meeting with all the chief executives of domestic airlines concerned over issues such as huge variation in the highest fare by different carriers on the same sector,airfares opening with high fares and decreasing towards the departure date and phenomenally high fares although jet fuel cost has increased by only 16%.Scheduled domestic airlines have now proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between 5% and 20%, an official government statement said.It will be huge relief for passengers,especially those making spot bookings,as highest fare buckets have shot up by 20% compared with the last season.So,it is a welcome move in passengers interest, travel technology solutions firm Bird Group ED Ankur Bhatia said The situation,at present,is similar to that in December 2010 when airfares had shot up drastically,by about 200%,on a few sectors,post Diwali.Reacting to the situation,the DGCA had issued directions on November 19,2010 to airlines to furnish a copy of established route-wise tariff across their networks in various fare categories,in the manner offered in the market.In an interview to ET that appeared on Monday,Neil Mills,the CEO of SpiceJet,when quizzed whether airlines have regained pricing power said: Lack of pricing power was not so much an issue of extreme supply,but an issue of extreme lack of discipline.This was pulling the market down.Beginning January,carriers are more disciplined and selling below cost has largely stopped. However,most of Indias domestic airlines are in the red carrying huge debt in their books.With Kingfisher Airlines curtailing its services,there has been a perception that airlines have got some amount of pricing power.Further,much of the highest bucket fares comprise an insignificant number of tickets sold by airlines,and therefore the directive will have little impact on the airlines.The regulator also asked them to report any significant and noticeable change in the established tariff within 24 hours of effecting the change and maintain all records pertaining to established tariff.

Call Off Strike,will Take Back Sacked AI Pilots


NEW DELHI Civil aviation minister Ajit Singh on Monday reiterated his readiness to take back the sacked pilots provided they call off their strike and returned to work.We are still open to talks,but the pilots are not ready for that.They can be taken back on a caseby-case basis if they call off the strike and come to the negotiation table, he said.On hiring new pilots,he said it is up to AIs management to take a call on it.On the letter written by the AI executive pilots to the minister stating that they were stressed out due to the strike by the IPG pilots,Singh said,he did not receive any such letter.What I got was an unsigned letter from some pilots,he said.
http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=ETBG&pubLabel=ET&pageid=5&mydateHid=19-06-2012

Almost Grounded,Air India Rents Out HQ Floors


To lease out 15 floors of its 23-storey building to earn income of.36 cr annually

MANISHA SINGHAL & KAILASH BABBAR MUMBAI

In The Predators Ball,the 1980s bestseller,author Connie Bruck describes a scene involving junk bond raider Mike Milken and a CEO of a company,a large chunk of whose bonds are owned by Milken.When the unwary executive challenges Milken by claiming to own a substantial portion of the companys equity,Milken retorts that he has life and death powers over the company as the biggest owner of its debt.The Indian lenders to Air India are not yet in a position to make such threats to the nearly-bankrupt,stateowned airline.They may also not need to as the airline enjoys sovereign guarantee on its debt.But in a move with interesting implications for the future of their relationship,the lenders and Air India are coming together to strike a deal over one of the priciest pieces of real estate in Mumbai,the Air India building at Nariman Point.The stricken airline has begun talks with some lenders to lease large portions of its iconic headquarters tower to secure some much-needed rental income at a time when flying has become difficult due to the pilots strike.Air India thinks it can earn income of about Rs 36 crore annually by leasing 15 floors of this 23-storey seafacing building.It is most likely that lenders who recently recast the debt might end up with a lions share in occupying the skyscraper,as sources say that some of the public sector entities that the airline is in talks with are Life Insurance Corporation of India and SBI Capital Markets.Other PSU banks participating in the consortium of lenders are also in discussions with the airline.SBI Capital Markets is in discussion to take up four floors,LIC two floors,while another PSU bank,who is also a lender to Air India,is in talks to lease three floors in the building.

Muted response by foreign carriers to FDI in Indian airlines


NEW DELHI: There seems to be little enthusiasm among international airlines over the government's plan to allow them to pick up 49 per cent stake in their Indian counterparts.

In spite of a high and sustained growth in passenger traffic, the financial strength of almost all Indian airlines are severely affected, leading the foreign carriers to be disinclined to invest at the moment.

Top aviation officials, who had gathered at the 68th annual meet of the International Air Transport Association ( IATA) in Beijing last week, spoke about strict regulations, lack of reforms and the government's backing to Air India as factors which came in the way of competition.

"We have been hearing it (allowing foreign airlines to invest) for five years. India is an attractive destination for us to serve, but I am not sure if India will be an attractive destination for us to invest in," Willie Walsh, chief executive of International Airlines Group, which owns British Airways and Iberia following their 2011 merger, said.

He said a major reason was that the "continued financial support" of the Indian government to Air India "in my mind distorts competition".

"Part of the problem that exists in India is the financial viability of the airlines (which) is caused by the Indian Government continuing to support the inefficient state-owned airline," Walsh said.

"Anybody who is looking at India now is going to say it's going to be an extremely difficult proposition. There is a reward, access to a vast market, but the execution of that is the question," said Tim Clark, president of UAE carrier Emirates Airlines.

"You cannot afford to let civil aviation be a lame duck, not in something the size of India. You will have to find a way to make it work," he said.

Ease visa norms: World Tourism Forum tells G20


World tourism forums have insisted that the tourism sector should be considered as the growth engine of an economy and to tap its potentials, governments should look at easing visa processes and remove unnecessary visa restrictions that have been established as the greatest deterrent for a tourist.
“Increasing travel and tourism demand through visa facilitation can stimulate job creation, a priority given the high current unemployment levels,” the forums said.
According to a research study conducted by the United Nations World Tourism Organisation (UNWTO) and the World Travel & Tourism Council (WTTC), G20 economies could boost their global tourist numbers by an additional 122 million, generate an extra $206 billion in tourism exports and create over five million more jobs by 2015 by improving visa processes and entry formalities.
Preliminary findings show that of the 656 million international tourists who visited G20 countries in 2011, an estimated 110 million needed a visa, many of whom deterred from traveling by the cost, waiting time and difficulty of obtaining a visa.
Facilitating visas for these tourists, could stimulate demand, spending and ultimately create millions of new jobs in the G20 economies.
By facilitating visas, the G20 countries stand to gain five million jobs at a time of rampant unemployment across the world.
http://newindianexpress.com/business/news/article545626.ece

Air travel goes back to pre-low cost era


Low cost is not cheap anymore. These days a one-way ticket on an average would cost you a minimum of `6,000. Ticket prices have hit an all-time high due to several reasons ranging from high cost of aviation turbine fuel, increased airport charges (in case one is transitting from the metros) and also fewer seats that are available due to contraction in the number of seats due to sub-optimal operations by private carrier Kingfisher Airlines and also the ongoing strike by Air India pilots.
Till recently when low cost flying came to India in 2005 with the advent of Capt Gopinath led Air Deccan (now Kingfisher Red, now nearly defunct) a round trip from Delhi to any other metro would cost about `5,000, but today the same trip costs you `12,000 or more depending when the tickets were booked, however, early bookings can fetch slightly competitive rates.
To make the market more price sensitive, Air Deccan also offered some (about 10 tickets) per flight at `1 on a first come first serve basis, but that has become a thing of the past now. However, continuing with the same tradition, private carrier SpiceJet, to encash on the summer rush and lack of availability of seats is offering a limited number of one-way tickets for as low as `777, but the offer was just for a day, the airline did brisk business and sold about 38,000 tickets in an hour.
The falling rupee, a near 14% rise year on year of aviation turbine fuel prices and the overall sluggishness in the domestic market has left flyers with little choice but to contend with expensive air travel.
Aviation sector in India is one of the most taxed sectors - fuel, aircraft leases, airport charges, air passenger tickets, air navigation service charges, maintenance costs, fuel throughput fees, into-plane fuel fees, and other items subject to service taxes.
“Almost 70% of the airline costs like maintenance, jet fuel, spares etc. are dollar denominated. Rupee depreciation, rising jet fuel and the prevailing competition in the domestic market has wrecked the balance sheets of most Indian carriers,” says Amber Dubey of global consulting firm KPMG.
“Whilst it is true that fares have gone up significantly post Kingfisher’s reduction in flight schedule, we shouldn’t forget that
ATF costs are currently much higher than in the pre-low cost airlines era. More importantly, after the crisis airlines are no longer chasing market share at the expense of profitability something that they unwisely did earlier by offering below-cost level fares,” says former executive director Air India and aviation commentator Jitendra Bhargava.
“Airlines cash in on the urgency. Even if there are enough number of seats available the airline will say that please book now or else even these tickets would be sold out. However once inside the aircraft you find nearly half the seats vacant. I don’t understand why can’t there be a ceiling on the price of airline tickets,” a passenger travelling on a short haul flight said. The passenger had to buy a one-way ticket for `6,500.
Destinations like Kullu and Leh which are not served by the low cost carriers airlines are selling at a premium, thanks to the holiday season. A return ticket between Delhi-Kullu for a less than an hour’s flight costs `20,000.
Jet Airways’ low-cost carrier Jet Konnect shows air-fares that are higher than the carrier’s regular flights. Though the airline maintains that the capacity it offers increases on an average of 15 per cent every year, no relief is seen for passengers.
“Air India, earlier Indian Airlines, is today what it was in the pre low-cost airline era. Capacity constraint was of course there on mainline sectors between metros. Fares were uniform, no subclasses within the economy as is now. Food was an integral part but in-flight entertainment system wasn’t there. Airlines did not market as vigorously as they do now. Competitive fares came in not only because of low cost airlines but also when capacity exceeded passengers and airlines began to lure passengers in a bid to enhance market share,” Bhargava said.
Operational Economics played no role in this era as all airlines vied to get passengers as a result of which the gap between the fares of low cost and legacy carriers narrowed. In the initial stage of low-cost phenomenon, fare difference was substantial. Gap narrowed as the capacity increased.
Today, DGCA has created price-bands for a particular number of kilometers which on the higher side are `10,000 and lower side are `3,000. Naturally in these expensive times none of the carriers are elastic towards lower fares.
http://newindianexpress.com/business/news/article545624.ece

Ready to take back sacked AI pilots if strike called off: Ajit Singh


Mumbai: As the strike by a section of the Air India pilots entered the 45th day, Aviation Minister Ajit Singh on Monday reiterated his readiness to take back the sacked pilots provided they called off their agitation unconditionally and returned to work.

"We are still open to talks, but the pilots are not ready for that. They can be taken back on a case-to-case basis if they called off the strike and came to the negotiation table", the Minister said.

On hiring new pilots, he said it is up to the Air India management to take a call on as to how my commanders they need.

On the letter written by the AI executive pilots to the minister stating that they were stressed out due to the strike by the IPG pilots, Singh said, he did not receive any such letter.

"What I got was an unsigned letter from some pilots", he said.

On May 7, the 400-odd erstwhile Air India pilots under the banner of the Indian Pilots Guild (IPG) went on a strike protesting the AI management's decision to allow the erstwhile Indian Airlines pilots to get trained on the Boeing Dreamliners, whose delivery will start from this month-end.

After the strike was declared illegal by the Delhi High Court, the management sacked 101 of them and also de-recognised their union.

As the Minister stuck to his gun that the pilots must call off their strike unconditionally if they wanted him to look into their issues, the cornered pilots abandoned their previous conditions but are now demanding taking them back and recognising their union.

Air Works invests in Empower Aviation Group


Leading aviation service provider Air Works India Engineering, on Monday, announced that it had made a strategic investment in Dubai-based Empire Aviation group (EAG), a move aimed at expanding its footprint in the Middle East and provide world-class aircraft management services in India. The strategic investment has been funded through a mix of internal accruals and structured debt finance of Rs.120 crore from KKR & Co, a leading global investment firm.
“Air Works has made a strategic investment to provide support to form Empire Aviation India, a firm that would not only take care of proper and optimum utilisation of business jets owned by an individual or a company but also provide AMS to the corporates. We are going to launch this product in August, and we would be the first company to bring such a product to India,” Vivek Gour, Managing Director, Air Works, told a news conference here.
The company would operate with generally under-utilised business jets belonging to individuals and companies. The company would focus on business jets only and set up a command office in Bangalore and liaison offices in Delhi and Mumbai. Later, it would expand to other metros. “We would be providing end-to-end service to the customer with all the necessary backroom preparation done by us,” Steve Hartley, co-founder and Executive Director of EAG, said.
Air Works could be looking at raising $35-$50 million capital. There was no talk to divest at the moment, a company official, however, said. While GTI has a stake of about 25 per cent, Punj Lloyd holds around 19 per cent stake in Air Works. The funds will be raised primarily to create an engine-maintenance, repair and overhaul facility.
http://www.thehindu.com/todays-paper/tp-business/article3544559.ece

Air India plans to train more pilots: Ajit


Union Minister for Civil Aviation Ajit Singh has said that Air India was planning to induct and train more pilots in the wake of the stir by pilots. He stressed the need for the airline to become competitive with the rest of the industry for its survival.
Talking to journalists on the sidelines of a book release function here, he said: “I don’t understand why they are on strike. There are no issues.” Whatever few issues they had, the Dharmadhikari report was meant to address them. “We have already started discussions.”
Mr. Singh pointed out that pilots did not give any strike notice and the court had called it ‘illegal.” He asked them to get back to work.

V.N. Chandran to be Airport Director


V.N. Chandran, transferred in October 2010 as Airport Director, Thiruvananthapuram, following a controversy over the commissioning of the Rs.300-crore international terminal complex at the airport, has been reinstated.
Mr. Chandran, now Airport Director, Bhubaneswar, had been asked to hand over charge to General Manager, Projects, Pathak and join duty here.
Sources in the Airports Authority of India (AAI) toldThe Hinduthat the order, issued by AAI General Manager (Human Resource) Balbir Singh in New Delhi on Monday, said ‘the transfer is in the public interest.’
The AAI had transferred G. Chandramouli, the Airport Director, as General Manager (Commercial) at the corporate headquarters on lateral movement. Mr. Chandramouli had taken over as Airport Director on October 21, 2010 when Mr. Chandran was shifted from here.
Mr. Chandran was shifted after he had served 10 months as Director of the airport classified as sensitive. The post of Airport Director in Thiruvananthapuram is equivalent to General Manager, AAI.
He had earlier served as Deputy General Manager (Air-Traffic Control) before being promoted as Airport Director. He was transferred from Mangalore to the city in 2010.
Mr. Chandran’s strict adherence to guidelines had reportedly earned him the wrath of some user-agencies at the airport. AAI sources said Mr. Chandran’s proposal to develop the international airport as a multi-modal hub in the transport system would get an impetus. The proposal was mooted in view of the terminal’s proximity to the Parvathi Puthanar. Mr. Chandran had written to the State highlighting the need to explore the possibility of promoting intermodal travel in the contemporary airport management scenario. A collaborative process between the airport management and the State was also mooted by him.

Malabar most hit by Air India strike


Demand for government intervention
The North Malabar Zone of the World Malayali Council (WMC) has sought the immediate intervention of the State government and the Centre, including the MPs from Kerala, to solve the ongoing strike of Air India pilots.
The strike is seriously affecting the people, especially those from the Malabar region, many of whom work in the Gulf countries, the council said on Monday.
A get-together of the representatives of various Pravasi organisations under the aegis of the council here expressed deep anguish and shock at the fact that there was practically “no attempts” on part of the State government or from the Central authorities to sort out the issue, which gave untold miseries to a large section of passengers from the State.
Serious issue
Speaking on the occasion, WMC president for the North Malabar Region C.E. Chakkunni said no responsible government could turn its back on such a serious issue that was affecting its people for more than a month and a half now.
“If the Central authorities are not keen on sorting out the issue, it is high time that the State government and the MPs from the State used all their influence and constitutional powers to end this crisis, as the ongoing strike was making the lives of its people really miserable,” he said.
He said the continuing strike of the pilots was not only contributing hugely to the loss incurred by the national airline but also resulting in indefinite delay and cancellation of the flights without any notice.
Uncertain
This left the passengers uncertain about their journey, and caused time and money loss, he said. Stating that Air India’s stance on the issue was highly disappointing and deplorable, Mr. Chakkunni said the recent statement of Sunil Krishnan, south-zone executive director of the airline, was a “true lie” and an “open challenge” to the passengers who had no choice but to depend on the flight for their trips.
Mr. Sunil Krishnan, according to him, had said no flights of the airline in the domestic or Gulf sector was affected by the strike so far. “But the reality is that on an average, around four or five flights are being cancelled from the different airports in the State every day due to the strike,” he said.
‘Open challenge’
Mr. Chakkunni, who termed this “irresponsible” attitude of the authorities as an “open challenge” to the passengers, also said the extension of the stoppage of booking in different sectors from June 30 to July 30 indicated the strike was here to stay for some time.
The strike at this peak season (with Haj and Umrah season round the corner) also resulted in the other airlines exorbitantly raising their airfare.
“If the government has any commitment to its people, who elected them, it’s the time to show it,” said Mr. Chakkunni.
Chairman of the Calicut International Airport Development Society K. Moidu, Chairman of the Federation of the North Kerala Chamber of Commerce and Industry M. Muzammil, and Secretary of the Calicut Chamber of Commerce and Industry T.P. Vasu, were among others spoke on the occasion.

·  Strike contributing to the loss incurred by the airline
·  It also prompts other airlines to hike fares

Pilots not interested in resuming work: Ajit Singh


Details AI's financial mess while calling the strike “illegal”
While more than 400 Air India pilots continue to strike work for more than 40 days, the airline management is in the process of drawing up a business plan for the future. It includes the delivery of 27 Boeing 787 Dreamliner aircraft over the next two years.
At a press conference here, Civil Aviation minister Ajit Singh insisted that the strike was illegal. “I do not think the striking pilots want to come back to work. They did not give any notice and declared themselves sick,'' he said adding “the reasons for which they are striking have been addressed in the Justice Dharmadhikari report, which they chose not to accept.''
“Today, the situation is such that a Rs. 30,000 crore bail-out package has already been announced and the management is now making a new business plan.''
The services of more than 100 Air India pilots attached to the Indian Pilots Guild (IPG), who have been on strike since May 7, have been terminated.
Air India has been suffering losses since then. Air India was in such financial mess that it could not pay pilots, engineers, cabin crew, the Airports Authority of India and oil companies, the Minister said.
“Just when it had started regaining credibility, the pilots started reporting sick.''
The Minister said he held talks with members of the Executive Pilots Association on Sunday, but they were inconclusive. “Talks at every level have failed.''
Mr. Singh noted that there was no decision on hiring expat pilots. “We have to do whatever the Directorate General of Civil Aviation (DGCA) mandates. If we need commanders or co-pilots, we have to get them.''
Speaking to reporters on the progress on land acquisition for new airports in Maharashtra, Chief Minister Prithviraj Chavan said that in all the cases, packages were offered and negotiations on.
“For the Navi Mumbai airport and Mihan at Nagpur, packages are being worked out. We decided to acquire land for a new international airport at Chakan, near Pune.''
Mr. Chavan admitted that slum encroachment was an issue for the expansion of the Mumbai Airport. “The land is necessary for the airport plan but we also have to be careful as lives will be affected,'' he said.

·  ‘Just when AI started regaining credibility, pilots started reporting sick’
·  Packages have been offered, negotiations are on: Prithviraj Chavan
http://www.thehindu.com/todays-paper/tp-national/article3544605.ece

End strike, pilots can come back: Ajit Singh


Civil Aviation Minister Ajit Singh on Monday said he was ready to take back the sacked Air India pilots provided they called off their agitation unconditionally.

Peak domestic airfares set to fall as DGCA cracks the whip


New Delhi, June 18:
The skyrocketing fares in the domestic skies are set to ease soon. At a recent meeting with the civil aviation regulator, airlines assured the Director-General of Civil Aviation that domestic airfares at the highest level will fall 5-20 per cent across the network in the next few days.
“When a request is made in public interest by the DGCA, almost all airlines follow it. There will be a reduction in fares in the next few days. Watch the airline Web sites and the lower fares will be visible,” the D-G, Mr Bharat Bhushan, told Business Line.
At the meeting it was pointed out that although price of aviation turbine fuel had gone up by about 16 per cent in June as compared to the same year previously, the average increase in airfares had been “phenomenal”.
Similarly, even though the number of passengers flying domestically had declined in May there was a disproportionate spurt in airfares. The huge variation in the highest published airfare by different airlines on the same sector was also flagged by Mr Bharat Bhushan. Travel agents point out that there has been an increase of between 20 and 30 per cent in domestic airfare in the last 2-3 months. On the Delhi-Chennai sector alone, fares vary between Rs 8,000 and 23,000. Earlier, the same flight could be had for Rs 6,500-Rs 7,000.
The fact that a passenger buying a ticket in advance might pay more than a flyer who buys at the last minute was also raised at the meeting. Officials indicated that this was because airlines opened bookings at the highest fare level and then lowered the fares as the departure date neared.
Airlines cited the depreciation of the rupee against the dollar and the fact that almost all the players were losing money among the reasons for fares heading northwards since April this year.
The meeting was attended by the Chief Executive Officer, Jet Airways, Mr Nikos Kardasis, the Chief Executive Officer, Kingfisher Airlines, Mr Sanjay Aggarwal and the Chief Commercial Officer, IndiGo, Mr Sanjay Kumar, among other senior officials.
http://www.thehindubusinessline.com/todays-paper/tp-economy/article3545408.ece

Jet Airways to suspend Brussels-New York flights


Mumbai: Jet Airways said on Monday that it will temporarily suspend Brussels-New York flights with effect from September 10 as part of an ongoing network evaluation.
It will continue to operate to Newark International Airport.
Jet Airways also stopped its flights between Johannesburg and Mumbai and some short-haul domestic flights as part of network consolidation. Regarding those passengers booked on the JFK flight beyond September 10, the airline said it “will ensure that the affected guests are offered alternative flights on our own services to New York (Newark) or that of partner airlines” then onwards.
The company said the decision to stop the JFK flight was taken “in view of the current global economic conditions and its impact on business worldwide.” — Our Bureau

Pilots can come back only if they call off strike: Ajit Singh


Mumbai, June 18:
With no end in sight for the Air India pilots’ strike, which is on for more than 40 days now, the management of the national carrier is in the process of drawing up a new business plan for its future. This includes the delivery of 27 Boeing 787 Dreamliner aircraft over the next two years.
Addressing a press conference, the Minister of Aviation Minister, Mr Ajit Singh, on Monday insisted that the strike by the pilots was illegal.
He reiterated that the striking pilots can come back only if they agree to call off their agitation unconditionally.
“The striking pilots can be taken back only on a case-to-case basis. We are open for talks, but it doesn’t seem like the pilots are willing for it,” said Mr Ajit Singh adding “the reasons for the strike have been addressed in the Justice Dharmadhikari Report, which they chose not to accept.”
While saying that there was no decision on hiring expat pilots, Mr Singh said, “We have to do whatever the DGCA mandates. If we need commanders or co-pilots, we have to get them.”
The national carrier, Air India has been suffering losses ever since the pilots went on strike. The AI management and the Civil Aviation Minister had taken a tough stand against the striking pilots. The strike which entered its 45 {+t} {+h} day has forced the airline to curtail its international operations. Around 400 pilots of erstwhile Air India owing allegiance to the Indian Pilots Guild (IPG) went on a strike to protest AI management’s decision to allow the erstwhile Indian Airlines pilots to get trained on the Boeing Dreamliners.

Air Works, Empire Aviation team up to service business jets


New company to open first office in Bangalore
New Delhi, June 18:
Owners of private business jets in India can soon look forward to a one-stop shop for meeting all their travel needs. This follows Air Works making a Rs 120 crore strategic investment in Dubai-based private aviation company Empire Aviation Group. The new company will offer end-to-end aircraft asset management services for private business jet owners.
The strategic investment is through a mix of internal accruals and structured debt finance of Rs 120 crore from KKR & Co, officials said.
“If there is a owner of a private business jet who does not want to have the headache of maintaining a staff for managing the aircraft we can help them not only operating their flights but also getting clearance for the operations,” officials said. The new company expects to open the first office in the next 30-45 days in Bangalore followed by Delhi and Mumbai. Initially staff will be brought from the UAE base, officials said.
Declining to give details of the companies that have already signed up with Empire Aviation, officials said, “In the United Arab Emirates we operate for some former prime ministers and wealthiest of the wealthy.”
On how much a business jet owner would have to pay for the services, officials said: “The management model will depend on the type of aircraft. You might have some one who flies 20 per cent of the time and offers the aircraft for charter services 80 per cent of the time. The amount such a customer will pay will be different from what another customer pays,” officials said.
Air Works may look to raise between $ 35-50 million capital but there is no talk to divest at the moment, officials said. While GTI has a stake holding of about 25 per cent, Punj Lloyd holds about 19 per cent stake in Air Works. The funds will be raised primarily to create an engine Maintenance, Repair and Overhaul facility, officials said.

Air fares may soften soon; DGCA acts


New Delhi, June 18:
The skyrocketing fares in the domestic skies are set to ease soon.
At a recent meeting with the civil aviation regulator, airlines assured the Director-General of Civil Aviation that domestic airfares at the highest level will fall by 5-20 per cent across the network in the next few days.
“When a request is made in public interest by the DGCA, almost all airlines follow it. There will be a reduction in fares in the next few days. Watch the airline Web sites and the lower fares will be visible,” the Director-General, Mr Bharat Bhushan, told Business Line.
At the meeting it was pointed out that although price of aviation turbine fuel had gone up by about 16 per cent in June as compared to the same year previously, the average increase in airfares had been “phenomenal”.