KARAN CHOUDHURY AND PIYUSH KUMAR TRIPATHI
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New Delhi/Patna, Aug. 8: Airlines flying big aircraft like A320s and Boeing 737s to Patna are in wait-and-watch mode ahead of the August 16 date set by the aviation regulator for curtailing the runway length at the Jai Prakash Narayan International Airport.
The airlines are, however, hopeful that an amicable solution would be worked out before next Thursday’s deadline.
Around 130 flights are operated by five airlines — IndiGo, Jet Airways, JetKonnect, GoAir and Air India — to Patna. However, the airlines say they are yet to receive any order specifically barring them from flying to Patna.
IndiGo, which operates around five flights per day, said they follow guidelines from DGCA — the regulatory authority. “We will wait till the authorities take a final call on the issue,” said a spokesperson for IndiGo. Air India officials said much the same thing.
IndiGo, along with GoAir, has stopped selling seats on its flights to and from Patna for travel on or after August 16. IndiGo sources said plans are already afoot to withhold flights to Patna and steps to cope with the situation are being planned.
But the crisis has given some small airlines a window of opportunity.
“We are being approached by several airlines which have small planes for permission to operate from Patna airport. Though we do not intend to encourage such airlines, we would be left with no other option but to consider their proposal if the runway rule takes effect from August 16,” said a top source at AAI in Calcutta.
Aviation experts said some regional airlines would try to capitalise on the uncertainty. “There are four regional airlines in India which operate smaller aircraft. The first is Air India Regional, which has seven ATR 42 and four CRJ aircraft in its fleet. ATR 42 is 48-seater and CRJ has 70 seats. The other three regional airlines operating smaller aircraft are Air Mantra, which operates Hawker Beechcraft 900D (17-seater) planes, Jackson Airlines, which operates Dornier 228-200 (19-seater), and Jal Hansa, which operates Cessna 208 A (8-seater) planes. However, regular commercial operation of these aircraft would not be practical for sustaining the passenger load from Patna airport,” said aviation expert Mirza Faizan.
However, smaller aircraft have an air-range restriction of 500km. “Operation of these aircraft would act as feeder service to operations of bigger aircraft from Calcutta or Ranchi,” he said.
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Wednesday 8 August 2012
Airlines to wait & watch
Air India 787 Dreamliner engine fails during pre-delivery test
WASHINGTON: US federal aviation authorities are investigating an engine failure on a Boeing 787 Dreamliner plane built for Air India during a pre-delivery taxi test in Charleston, South Carolina.
The National Transportation Safety Board said Wednesday Boeing and General Electric, the engine manufacturer, had notified it Saturday about the mishap
As a result of the failure, the engine reportedly left debris on the active runway at Charleston International Airportand caused a brush fire, NTSB said. There were no passengers aboard the aircraft nor were there any fatalities or injuries.
The NTSB said it had sent an aviation investigator with extensive expertise in aircraft power plants, to the scene on Sunday to gather information to better understand the circumstances of the event.
In the next few days, an NTSB aircraft powerplants expert and a metallurgist from the NTSB Materials Lab will travel to a General Electricfacility in Cincinnati, Ohio, to lead and coordinate the disassembly and examination of the engine in question, it said
The Federal Aviation Administration, Boeing and General Electric are parties to the investigation, NTSB said.
Boeing is "unaware of any operational issue that would present concerns about the continued safe operation of in-service 787s powered by GE engines," a statement from the Chicago-based planemaker said.
Boeing's factory in North Charleston, South Carolina, is one of two assembly sites for the twin-engine 787, the world's first jetliner with a fuselage and wings built chiefly from composite materials. The other assembly site is Boeing's wide-body plant in Everett, Washington.
The National Transportation Safety Board said Wednesday Boeing and General Electric, the engine manufacturer, had notified it Saturday about the mishap
As a result of the failure, the engine reportedly left debris on the active runway at Charleston International Airportand caused a brush fire, NTSB said. There were no passengers aboard the aircraft nor were there any fatalities or injuries.
The NTSB said it had sent an aviation investigator with extensive expertise in aircraft power plants, to the scene on Sunday to gather information to better understand the circumstances of the event.
In the next few days, an NTSB aircraft powerplants expert and a metallurgist from the NTSB Materials Lab will travel to a General Electricfacility in Cincinnati, Ohio, to lead and coordinate the disassembly and examination of the engine in question, it said
The Federal Aviation Administration, Boeing and General Electric are parties to the investigation, NTSB said.
Boeing is "unaware of any operational issue that would present concerns about the continued safe operation of in-service 787s powered by GE engines," a statement from the Chicago-based planemaker said.
Boeing's factory in North Charleston, South Carolina, is one of two assembly sites for the twin-engine 787, the world's first jetliner with a fuselage and wings built chiefly from composite materials. The other assembly site is Boeing's wide-body plant in Everett, Washington.
Air India 787 Dreamliner engine fails during pre-delivery test
WASHINGTON: US federal aviation authorities are investigating an engine failure on a Boeing 787 Dreamliner plane built for Air India during a pre-delivery taxi test in Charleston, South Carolina.
The National Transportation Safety Board said Wednesday Boeing and General Electric, the engine manufacturer, had notified it Saturday about the mishap
As a result of the failure, the engine reportedly left debris on the active runway at Charleston International Airportand caused a brush fire, NTSB said. There were no passengers aboard the aircraft nor were there any fatalities or injuries.
The NTSB said it had sent an aviation investigator with extensive expertise in aircraft power plants, to the scene on Sunday to gather information to better understand the circumstances of the event.
In the next few days, an NTSB aircraft powerplants expert and a metallurgist from the NTSB Materials Lab will travel to a General Electricfacility in Cincinnati, Ohio, to lead and coordinate the disassembly and examination of the engine in question, it said
The Federal Aviation Administration, Boeing and General Electric are parties to the investigation, NTSB said.
Boeing is "unaware of any operational issue that would present concerns about the continued safe operation of in-service 787s powered by GE engines," a statement from the Chicago-based planemaker said.
Boeing's factory in North Charleston, South Carolina, is one of two assembly sites for the twin-engine 787, the world's first jetliner with a fuselage and wings built chiefly from composite materials. The other assembly site is Boeing's wide-body plant in Everett, Washington.
The National Transportation Safety Board said Wednesday Boeing and General Electric, the engine manufacturer, had notified it Saturday about the mishap
As a result of the failure, the engine reportedly left debris on the active runway at Charleston International Airportand caused a brush fire, NTSB said. There were no passengers aboard the aircraft nor were there any fatalities or injuries.
The NTSB said it had sent an aviation investigator with extensive expertise in aircraft power plants, to the scene on Sunday to gather information to better understand the circumstances of the event.
In the next few days, an NTSB aircraft powerplants expert and a metallurgist from the NTSB Materials Lab will travel to a General Electricfacility in Cincinnati, Ohio, to lead and coordinate the disassembly and examination of the engine in question, it said
The Federal Aviation Administration, Boeing and General Electric are parties to the investigation, NTSB said.
Boeing is "unaware of any operational issue that would present concerns about the continued safe operation of in-service 787s powered by GE engines," a statement from the Chicago-based planemaker said.
Boeing's factory in North Charleston, South Carolina, is one of two assembly sites for the twin-engine 787, the world's first jetliner with a fuselage and wings built chiefly from composite materials. The other assembly site is Boeing's wide-body plant in Everett, Washington.
Of the 300 Air India routes, only three make money: Ajit Singh
At a time when the aviation industry is going through turbulent times and multiple issues, the government is trying to put Air India back on track. In a freewheeling hour-long interview, Ajit Singh, the aviation minister, talks to Surajeet Dasgupta & Disha Kanwaron a range of issues confronting the aviation sector . Edited excerpts:
Many airlines have said there should be incentives for efficient ones, so that they can do better.
Are you saying that in a free enterprise system, the government should decide who is doing better and make it better and kill the weak one? We cannot. An airline doing well today might well be the loser next year and another one may come up. Some companies will fail and some will prosper. Our job is to provide equal plane ground.
Are you saying that in a free enterprise system, the government should decide who is doing better and make it better and kill the weak one? We cannot. An airline doing well today might well be the loser next year and another one may come up. Some companies will fail and some will prosper. Our job is to provide equal plane ground.
Fares have gone up by 30 per cent in the first quarter of this year. Are you going to intervene?
The government has no intention of regulating fares. The problem in this is that there are several unanswered questions. We don’t even know the variable and fixed components, why different operators are charging differently.We have also set up a committee and they have given their report.We should collect data on prices and make it public. That should put pressure on airlines.
The government has no intention of regulating fares. The problem in this is that there are several unanswered questions. We don’t even know the variable and fixed components, why different operators are charging differently.We have also set up a committee and they have given their report.We should collect data on prices and make it public. That should put pressure on airlines.
Despite permitting import of ATF (aviation turbine fuel), no airline has been practically able to import it directly. What are you doing on this?
We have written to the petroleum minister to make ATF a notified commodity. The price of ATF is decided by oil companies in India, which is not transparent .ATF is not a notified product, so they don’t have to tell you how they arrived at this price. Once it is notified, PNGRB (Petroleum and Natural Gas Regulatory Board) would be able to regulate it. Then we will have the data. I will give you one example. Delhi airport charges 20 per cent ATF tax and Mumbai has 25 per cent. The fuel offtake in Delhi is almost twice as much as in Mumbai, despite the number of flights being the same. If the sales tax is reduced, that is also a great boost to the area.
We have written to the petroleum minister to make ATF a notified commodity. The price of ATF is decided by oil companies in India, which is not transparent .ATF is not a notified product, so they don’t have to tell you how they arrived at this price. Once it is notified, PNGRB (Petroleum and Natural Gas Regulatory Board) would be able to regulate it. Then we will have the data. I will give you one example. Delhi airport charges 20 per cent ATF tax and Mumbai has 25 per cent. The fuel offtake in Delhi is almost twice as much as in Mumbai, despite the number of flights being the same. If the sales tax is reduced, that is also a great boost to the area.
What is the progress on allowing foreign airlines to invest in Indian skies?
FDI (foreign direct investment) will come only if we get consensus among all the allies (in the ruling coalition) and if we allow them. We are definitely in financial stress. But FDI would be coming for other reasons — the growth we have, the potential we have, a growing middle class, traffic rights and the strategic geographical position. It is basically an enabling legislation and it is up to the airlines.
FDI (foreign direct investment) will come only if we get consensus among all the allies (in the ruling coalition) and if we allow them. We are definitely in financial stress. But FDI would be coming for other reasons — the growth we have, the potential we have, a growing middle class, traffic rights and the strategic geographical position. It is basically an enabling legislation and it is up to the airlines.
How are you working for the turnaround of Air India in the wake of the pilots strike and the financial problems it is mired in. How will you cut costs?
On many routes, we don’t even meet the operations cost. Of 300 routes, only three make money. AI does not even have the correct data. They are not following simple common-sensical things. Up to two months earlier, their pilot assignment was being done by a few senior pilots; we have now computerised it. Last year, we paid Rs 141 crore for hotel bills and Rs 11 crore for taxi bills. We are redefining ‘family’ for (free) tickets; it now includes daughters, sons, in-laws. Even after retirement, you enjoy the benefits. We have also decided that the salary structure will be redone - we will put half of the productivity linked incentive part into salaries and the rest will be paid only after the airlines make profits.
On many routes, we don’t even meet the operations cost. Of 300 routes, only three make money. AI does not even have the correct data. They are not following simple common-sensical things. Up to two months earlier, their pilot assignment was being done by a few senior pilots; we have now computerised it. Last year, we paid Rs 141 crore for hotel bills and Rs 11 crore for taxi bills. We are redefining ‘family’ for (free) tickets; it now includes daughters, sons, in-laws. Even after retirement, you enjoy the benefits. We have also decided that the salary structure will be redone - we will put half of the productivity linked incentive part into salaries and the rest will be paid only after the airlines make profits.
You are also looking at monetising real estate and all that. How much work has been done?
AI has no idea where all its property is. We have an office in Milan and we have not flown there for 20 years. All over the world, we have paintings and land like that. A committee has been set up and in two months, we will have a complete list and evaluation. We have Rs 350 crore worth of paintings Nobody has done the valuation of real estate but estimates vary from Rs 5,000 to Rs 10,000 crore.
AI has no idea where all its property is. We have an office in Milan and we have not flown there for 20 years. All over the world, we have paintings and land like that. A committee has been set up and in two months, we will have a complete list and evaluation. We have Rs 350 crore worth of paintings Nobody has done the valuation of real estate but estimates vary from Rs 5,000 to Rs 10,000 crore.
Do you think a VRS (Voluntary Retirement Scheme) for Air India would work?
It is going to be difficult but we are trying our best. A ground handling staffer gets Rs 50,000 a month, so why and where will he go?
It is going to be difficult but we are trying our best. A ground handling staffer gets Rs 50,000 a month, so why and where will he go?
Are you looking at giving more powers to DGCA (the sector regulator)?
We understand that DGCA needs some independence in hiring and in their authority to check the safety aspect. We are bringing in a Civil Aviation Authority Bill for that.
We understand that DGCA needs some independence in hiring and in their authority to check the safety aspect. We are bringing in a Civil Aviation Authority Bill for that.
Your policy of making India into a hub seems on paper. Practically, nothing is happening.
To make a hub here, we have to make sure what we have to do about bilateral traffic rights and we have made a new policy. We are asking (foreign carriers) them for their next three and a half year projections. Only when we have exhausted our own rights will we start negotiating for more. If we have to make a hub, we need feeder airlines, connectivity, airports at tier-3 and tier-4 cities. You can’t have these big planes; we need ATR, Bombardier, 98-seaters, 48-seaters. That entails extra costs. They have one set of spares, inventory and one kind of mechanics, and once you add different kinds of planes, their costs go up and airlines are very reluctant to that. We have given licences to so many regional airlines but hardly anyone has started. We are making that policy route-dispersal tied with the plane acquisition, so that balance can be maintained.
To make a hub here, we have to make sure what we have to do about bilateral traffic rights and we have made a new policy. We are asking (foreign carriers) them for their next three and a half year projections. Only when we have exhausted our own rights will we start negotiating for more. If we have to make a hub, we need feeder airlines, connectivity, airports at tier-3 and tier-4 cities. You can’t have these big planes; we need ATR, Bombardier, 98-seaters, 48-seaters. That entails extra costs. They have one set of spares, inventory and one kind of mechanics, and once you add different kinds of planes, their costs go up and airlines are very reluctant to that. We have given licences to so many regional airlines but hardly anyone has started. We are making that policy route-dispersal tied with the plane acquisition, so that balance can be maintained.
Are you looking at Kolkata and Chennai in PPP (public-private partnership) mode?
For that, first the CMs (chief ministers) have to agree and, second, Chennai has no extra land anyway, so cityside development is not there. It has already been constructed and they are also planning to build another airport.
For that, first the CMs (chief ministers) have to agree and, second, Chennai has no extra land anyway, so cityside development is not there. It has already been constructed and they are also planning to build another airport.
A lot of questions have come about Kingfisher Airlines’ financial condition and safety situation. Is the government thinking of any bailout? When an airline of that size goes, there is a mismatch between demand and supply and prices shoot up.
First thing, on safety there is no compromise. That is DGCA’s function. Otherwise, the government can only close down an airline if there are less than five aircraft operational and less than Rs 5 crore equity. Otherwise, we don’t have the right.
First thing, on safety there is no compromise. That is DGCA’s function. Otherwise, the government can only close down an airline if there are less than five aircraft operational and less than Rs 5 crore equity. Otherwise, we don’t have the right.
Second,with one per cent less availability of seats, the fares don’t go up proportionately. But let me be clear, that we are not going to give any bailout to KFA.
Boeing Dreamliner deal turning out to be 'lucrative' for Air India
NEW DELHI: Air India's deal with Boeing for 27 Dreamliner (B-787) aircraft is turning out to be lucrative for India's national carrier as the airline is now eligible for an additional annual compensation of at least $80,000 per plane if the machines don't match up to the high performance standards claimed by the manufacturer.
One of the key performance standards touted by Boeing was the new aircraft's fuel efficiency, which for the first few aircraft will be way lower than promised because the planes are heavier by about 7.5 tonnes due to re-engineering.
"The Dreamliners are overweight by 7.5 tonnes, from its initial design. They were supposed to be 17% more fuel efficient vis-a-vis the A-330 aircraft. But the extra weight is likely to reduce that to 12%," a senior official from the civil aviation ministry told ET on conditions of anonymity.
Air India will evaluate the performance of these aircraft for the first 18 months and if they don't meet the promised standards, a separate compensation package will be negotiated, the official added.
This amount would be in addition to the compensation that Boeing is supposed to pay Air India for delaying delivery of these aircraft by almost four years. Air India had placed an order for 27 Dreamliners with Boeing in 2005. On August 3, the Cabinet Committee on Economic Affairs permitted Air India to commence delivery of the Dreamliners it had ordered by approving a compensation settlement agreement for the aircraft delay, ideally supposed to arrive in September 2008.
According to the same official, the additional compensation on lower performance was capped at $80,000 under the agreement between Air India and Boeing but the US aircraft manufacturer is now open to going beyond that figure if need be. "Not all planes will be below performance standards. After the first few planes, the Dreamliners will be lighter and fuel efficiency will be 15% compared with A-330s," the official said, adding that wittingly or unwittingly, the deal is proving to be a big financial gain for the struggling national carrier.
The Dreamliner is a 250-seater aircraft made of composite materials, which make it lighter and is considered 20% more fuel-efficient. These features are expected to give substantial cost savings to airlines. Air India plans to fly this aircraft on its Singapore and Europe routes. It also plans to fly to Australia with this aircraft. Air India is supposed to get three B-787s this month while the delivery of the rest will be staggered till March 2016.
In addition, Air India is also planning to sell and leaseback the first B-787s, by which it will gain $15-17 million per plane. Under a sale and leaseback arrangement, an airline first buys aircraft, sells it to a leasing company and then takes the planes back on lease. This gets the assets into an airline without the aircraft purchase debt in its books.
"The Dreamliners will cost Air India somewhere around $98 million, whereas lessors are quoting somewhere around $115 million per plane. The extra money will help Air India get cheaper loans," the official said.
The demand for exclusive training on Dreamliner aircraft was the main reason for the recent two-month strike by Air India pilots, which has caused curtailment of the national carrier's international operations consequently causing loss of over 600 crore in revenue to the airline.
In India, Boeing also has an order from Jet Airways for 10 Dreamliners. Boeing's order book for the B-787 currently stands at 900 aircraft. Japan Airlines is currently the only operator of GEnx powered-787s, with four aircraft in its fleet. The only other operator of the 787, All Nippon Airways, uses the Rolls Royce Trent 1000 engines.
DGCA re-audits Kingfisher, dilutes serious violations
A financial audit of Kingfisher Airlines conducted late last year by the Directorate General of Civil Aviation (DGCA) had found that Vijay Mallya’s crisis-hit carrier cancelled more flights than it had reported to the regulator, scrapped flights to the Northeast without approval, withheld information about grounded aircraft when schedules were approved, and did not even list more than 100 approved flights on its systems.
The alleged violations could have led to the airline losing its flying permit. But in an unusual move, a second audit was conducted a month later by a new team and many findings of the previous audit were discarded or diluted. The Indian Express has accessed both audit reports.
The DGCA, however, denies Kingfisher was audited twice. “A financial surveillance of all airlines was conducted from November to December and no re-audit was carried out in the case of Kingfisher,” said Lalit Gupta, a DGCA deputy director general responsible for financial surveillance and scheduling.
Arun Mishra, who took over as DGCA chief recently, said he was not aware of the issue and would need to check on it.
DGCA officials said the practice of conducting annual financial audits began in 2010-11. According to the first audit, conducted in November by a Mumbai-based team of the DGCA, Kingfisher had under-reported its flight cancellations during August, September and October 2011. While the airline told the DGCA that 140, 282 and 256 flights were cancelled respectively in these three months, the audit of Kingfisher’s computer network found 308, 326 and 344 flights cancelled respectively.
The airline had been allowed to operate 418 daily flights during the winter schedule which started on October 30, 2011, but Kingfisher had not even listed 106 of these flights on its computer network. This, one senior DGCA official alleged, could amount to squatting as some airline operators are known to indulge in such practices to prevent competitors from getting their unused slots.
The 418 flights were approved on a fleet strength of 57 aircraft even though 20 of them had been grounded for varying periods, a few for as long as two years.
Besides, the audit report said that 100 Kingfisher pilots had resigned, essential flights to the Northeast cancelled without the approval of the DGCA, parts of some planes were being removed for use in other aircraft on a large scale, salaries were not paid and the company was under financial stress. The number of flights operated to the Northeast is one of the benchmarks used to allow airlines to fly on lucrative trunk routes in the rest of the country.
This report, however, was not forwarded to then DGCA chief E K Bharat Bhushan. The second report was forwarded to Bhushan but not shared with the team which conducted the first audit, sources said.
The second audit, conducted by a Delhi-based DGCA team on December 15 and 16, made no mention of the variation between the flight cancellation data provided by the airline and actual cancellations. It said only 24 pilots had resigned and added that 20 aircraft were grounded but did not mention the duration
The second audit report said Kingfisher had been allowed to operate 421 flights during the winter schedule but 175 of those slots were not utilised. However, it made no mention of the 106 flights that were not even listed on the airline’s computer network, as the first audit had found.
Also, the second audit report made no mention of flights to the Northeast being cancelled.
While the first audit made serious observations about the available aircraft and the allocation of flights for the winter schedule, the references were missing in the second audit report.
Subsequently, the DGCA resorted to a process called maintaining “schedule integrity” through which an airline is allowed to operate flights based on the number of fully available aircraft. As a result, Kingfisher’s winter schedule was pared to 243 daily departures and the summer schedule, effective March 25, was further cut to 120 daily departures using 16 aircraft.
“We are responsible to the DGCA and will respond to them only if we receive any questions,” Kingfisher spokesperson Prakash Mirpuri said. “We will not be drawn into any mischievous controversy and will not offer any comment on media speculation. We are operating under utmost safety under the supervision of the DGCA.”
Bhushan, who was abruptly removed as DGCA chief earlier this month, said he was not aware of the November audit. “I am out of the ministry and would not like to comment,” he said.
AUDIT FINDINGS, NOVEMBER 2011
* “Lower number of flight cancellations reported to DGCA”
* “418 daily departures sanctioned for 2011 winter schedule but 106 of them not listed on Kingfisher computer network”
* “2011 schedule approved for 57 aircraft while 20 of them were grounded, some for two years; 100 pilots resigned”
* “Flights to Northeast cancelled”
AUDIT FINDINGS, DECEMBER 2011
* No mention of variation in flight cancellation data
* “421 daily departures sanctioned for 2011 winter schedule, of which 175 slots unutilised”. No mention of the 106 departures not listed
* “20 aircraft grounded”, but duration not mentioned
* No mention of flights to Northeast being cancelled
http://www.indianexpress.com/news/dgca-reaudits-kingfisher-dilutes-serious-violations/985758/4Kingfisher cancels 31 flights as employees’ strike, board to meet today
A section of Kingfisher Airlines' employees, including pilots and engineers are not reporting for work to protest non-payment of salary
Mumbai: Kingfisher Airlines on Wednesday cancelled over 30 flights from Delhi and Mumbai due to a strike by a section of its employees protesting non-payment of salary, reports PTI.
While 22 flights of the airline were cancelled from Delhi, nine were cancelled from Mumbai, sources said.
A section of its employees, including pilots and engineers are not reporting for work to protest non-payment of salary, they said.
Meanwhile, the board of the near-bankrupt airlines is meeting in New Delhi today to discuss finances ahead of the announcement of quarterly results.
"The airlines' board is meeting at a five-star hotel in south-west Delhi this afternoon to discuss finances," the sources said.
The airline's operations have been disrupted time and again since April when pilots called off work protesting salary delays.
Kingfisher Airlines, which has been facing fund-crunch for almost a year now, has not paid salary to its staff for the past five months. A sizeable number of its employees have not been paid since February.
"We just can't work without being paid for such a long time. Hence the decision (to strike work)," a pilot has said.
The decision of airline employees to go on agitation coincides with the monsoon session of the Parliament that starts today.
"We hope that the strike will pull the attention of Parliament and our plight and misery echoes in political corridors," an employee said.
Top DGCA babu faces axe for malpractice
MUMBAI: Alok Kumar Sharan, the second in command in the Directorate General of Civil Aviation (DGCA), India's aviation regulatory body, faces a possible dismissal from service for misusing power and helping his daughter earn a Commercial Pilot Licence through unfair means. Sharan also broke rules to aid the opening of a flying school where his daughter subsequently underwent flying training. It is the first time in the history of DGCA that such major action has been recommended against a top official.
"Two days ago the civil aviation ministry has recommended major penalty proceedings against DGCA joint director general A K Sharan to the Central Vigilance Commission," said a ministry official. A major penalty could mean either a dismissal or demotion, he added. A final decision on disciplinary action would be taken by the Union Public Service Commission which appoints personnel for the aviation regulator. Sharan, a DGCA joint director general, is currently under suspension.
In two reports published on April 24 and April 27 last year, the TOI had exposed the said joint director general. In response to the TOI reports, the then director general of civil aviation, Bharat Bhushan, ordered a vigilance inquiry against Sharan. The DGCA investigations corroborated TOI report and in May Bhushan wrote to the civil aviation ministry recommending major penalties against Sharan and minor penalties against R K Khanna, who had held charge of the DGCA Chief Examination Officer when he helped Sharan's daughter.
The first charge against Sharan was that he influenced a junior DGCA officer to let his daughter, Rashmi, sit for what is called "special exams", though she was not eligible to appear for these. Sharan used his position to let her sit for special exams six times to clear three subjects. Following the TOI expose, Bhushan scrapped the practise of holding special exams.
The other charge against Sharan was that he favoured a Raipur-based flying school, called Touchwood Aviation, where his daughter underwent her flying training. Investigations revealed that Touchwood was cleared to begin flying training in August 2007 though it did not have a single aircraft or hanger or classroom. Sharan's daughter is currently employed with a low-cost airline.
GVK looking for strategic partners to fundairport expansion
To complete Mumbaiairport terminal by next August
Hyderabad, Aug 8:
GVK Power & Infrastructure Ltd will rope in strategic partners for its transportation andairports verticals. “Several global investors have evinced interest to join us,” G.V.K. Reddy, Chairman of the group, said.
Addressing the 18th Annual General Meeting here on Wednesday, he said the company increased its holdings in both the Mumbai and Bangaloreairport projects to 50.5 per cent and 43 per cent by acquiring the stakes of a South African partner and Siemens respectively. “We hope to rope in a strategic partner inairports to infuse some funds,” he said.
He said that the company will complete the Rs 12,500-crore new integratedairport terminal at Mumbai by August 2013, making it one of the bestairports in the world.
Reddy added, “The execution would have been smoother and possibly faster if we had the luxury of access to land like theDelhi, Hyderabad and Bangaloreairports had while developing them.”
As against about 5,000 acres each forDelhi, Hyderabad and Bangaloreairports, GVK had only 2,000 acres of land, and of this about 1,000 acres were occupied. This made execution difficult. “Never mind, everyone will be proud and happy to see the project completed,” he said.
ALLAYS DEBT CONCERNS
Allaying concerns about the company’s mounting debt as pointed out by a shareholder, Reddy said, “As of now, the project will have equity of about Rs 1,500 crore and debt of Rs 4,500 crore. And of the balance Rs 6,500 crore, we expect to develop commercial space in 200 acres. It is likely to fetch us about Rs 1,500 to Rs 2,000 crore. We will take up the issue with the regulator for support of Rs 4,000 crore.”
Along with the Bangaloreairport, GVK is the largest private operator, having handled about 44 million passengers and 6.14 lakh million tonnes (mt) of cargo, he said.
While the Mumbaiairport contributed Rs 1,314.35 crore during 2011-12 (Rs 1,179.35 crore in 2010-11), Bangalore generated a revenue of Rs 635.5 crore (Rs 578.68 crore).
http://www.thehindubusinessline.com/todays-paper/tp-logistics/article3743410.eceStrike grounds 30 Kingfisher flights
Cheque bouncing case comes up for hearing today
New Delhi/Mumbai, Aug. 8:
Kingfisher Airline’s operations throughout the country were affected on Wednesday after sections of pilots and engineers struck work protesting non-payment of salaries for the past seven months.
Sources told Business Line that over 30 flights were cancelled on Wednesday. The airline currently has a schedule of close to 100 flights a day, down from over 400 in January.
The agitation is likely to continue for some time with employees refusing to accept the management stand that payment of March salaries will start by August 13. “The agitation continues as such promises have been made previously,” a senior pilot said.
On Wednesday, sources claim that the airline informed Delhi airport that at least 11 departures and arrivals planned with the small ATR aircraft were cancelled for the day. The only ATR service which operated from Delhi was to Jalandhar, sources said.
The airline has cited shortage of cockpit crew for not operating these flights. The Delhi airport Web site said that flights to Shimla, Chandigarh and Kullu were cancelled.
Mumbai saw the cancellation of nine flights.
Several flights that were to be operated with the larger Airbus aircraft were combined as passenger demand was low, sources said. Airline officials were neither available to comment on Kingfisher operations, nor on when the salaries will be paid.
On Wednesday, the airline’s stock closed at a new low of Rs 8.63 on the BSE.
Cheque bounce case
Meanwhile, the next hearing for the cheque bounce case for KFA is on Thursday in Mumbai. The Andheri Metropolitan Magistrate’s Court in Mumbai had issued summons to the Chief Finance Officer and Chief Executive Officer of the near-bankrupt airlines to be present before it after cheques issued to Mumbai International Airport Ltd (MIAL) bounced.
The total value of cheques is Rs 15 crore and relates to parking, landing and other services during 2011. KFA’s operations may be suspended if it fails to clear the dues. Sources in the MIAL said that the airline has an outstanding amount of over Rs 30 crore to Mumbai airport.
The Delhi International Airport Ltd had also filed a case for cheque bouncing for Rs 3 crore.
Earlier in the day, Kingfisher informed the authorities that it will not be operating seven ATR aircraft and three Airbus 320 family aircraft. The airline currently has a fleet of 16 aircraft of which it did not operate 10 on Wednesday.
Air pocket Delhi airport saw 11 flight cancellations; Mumbai had nine flights cancelled Several flights were combined as demand was low Kingfisher’s cheques of Rs 15 crore to MIAL had bounced
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