Monday 17 September 2012

Air India pilots send legal notice to CMD Rohit Nandan protesting new flight duty timings

Pilots of erstwhile Indian Airlines, unionized under the ICPA, have issued a legal notice to the AI CMD Rohit Nandan protesting implementation of new FDTL from Sept 11
NEW DELHI: Air India seems to be facing another threat of industrial unrest as pilots of erstwhile Indian Airlines, unionized under the Indian Commercial Pilots Association (ICPA), have issued a legal notice to the airline CMD Rohit Nandan protesting implementation of new flight duty time limitations (FDTL) from September 11.

The legal notice, sent to Nandan on September 14, argues that the flight duty time limitations of ICPA pilots are fixed under a bilateral agreement between the union and the management and that "all these settlements are within the knowledhe of the company and the Government (DGCA), and therefore, no unilateral alteration is permissible."

The civil aviation ministry earlier this month asked Air India to implement FDTL of 125 hours per month for pilots (as mandated by sector regulator DGCA), instead of 90 hours a month as per their union agreement.

Meanwhile, in a texted response on his course of action, Nandan told ET, "we will respond legally to the notice."

The ministry's rationale in making this change was to increase flying-time, which would result in more utilization of fleet and manpower, and decreased human resource costs for a long time to come.

A senior official from the civil aviation ministry told ET that there was no question of rolling back the new rule.

"Agreements are not done to perpetuity. If the overarching law of the sector, in this case Civil Aviation Requirements (CAR) by DGCA, change, agreements will be updated too...they are not above the law," the official said requesting anonymity.

The ICPA pilots, meanwhile, have said they are not in mood for a strike. "There should've been bilateral consultation on the matter. But we are not thinking of going for a strike or disrupting operations," a pilot said.

The notice by the pilots argues, "If this course of action were to be adopted, it would be arbitrary and illegal, especially when there are several factors to be considered, not least of which is the right of the ICPA pilots to be consulted."

The notice by Supreme court lawyer Gopal Sankaranarayanan states that starting with the settlement entered in 1993, the terms of the FDTL applicable to ICPA have been revised regularly first in 2001 and again in 2006.
"The agreements were further continued by virtue of the documents of merger of 2007, most particularly the scheme of amalgamation, which provided that the pilots would not be subject to conditions less favourable to those existing at that point of time."
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-india-pilots-send-legal-notice-to-cmd-rohit-nandan-protesting-new-flight-duty-timings/articleshow/16434857.cms?curpg=2

6 top AAI officials suspended on graft charges

New Delhi, Sep 17 - Six senior Airports Authority of India officials have been suspended after a preliminary CBI probe found them allegedly favouring a private firm while awarding ground handling service contracts at some airports.

Civil Aviation Minister Ajit Singh has ordered immediate suspension and initiation of major penalty proceedings against AAI Executive Director(Commercial) L L Krishnan, DGM Finance R L Saran, Additional GM (Commercial) S Basu, DGM (Operations) Arun Mehan, DGM (Operations) P K Chadha and GM Ravi Verma, a Ministry statement said.

A CBI inquiry had found them allegedly involved in committing irregularities and favouring a particular company in awarding ground handling services contracts at Chennai, Kolkata and other airports.

The Minister has also ordered filing of FIR against Prem Bajaj, MD of Bhadra International India Ltd, retired AAI ED (Commercial) R V Narayanan, retired AAI ED (Finance) A K Dubey and others for manipulating, forgery, criminal breach of trust, criminal conspiracy and corruption, the statement said.

The AAI officers had allegedly made certain deviations from the commercial manual in the Notice Inviting Tender (NIT) while awarding contract for ground handling services at Chennai and Kolkata airports so that Bhadra International India Ltd was benefited, the CBI probe found.

The officials had deliberately incorporated the term "tie-up" arrangement in the eligibility criteria as stipulated in the NIT to make Bhadra International India Ltd eligible in joint venture technical agreement with Novia International Consulting APS for participating in the bid process.

It was found that the financial bid of the consortium of Bhadra International India Ltd and Novia International was tampered after opening of the tender by modifying the rate of royalty payable to AAI so that it becomes greater than the quotes of other two competing companies and the consortium could win the contract, the statement said.

The figure of "nine and half" was manipulated to make it "nine teen and half".

The term "tie-up" was introduced to make the company eligible for the bid. As neither Bhadra International India Ltd nor Novia International Consulting APS had a minimum five years experience in ground handling as required in tender conditions, it claimed.

"The experience of Novia Group of Companies was taken into account by the officials in violation of tender conditions. As there was no minimum annual turnover of Rs 200 crore for Novia International Consulting APS, the annual financial turnover of entire Novia Group of Companies was taken into account by the AAI officials," the probe found.

The CBI also found grave and serious irregularities in award of contract of ground handling services for Trivandrum, Coimbatore, Calicut, Mangalore and Tiruchi.

The inquiry also revealed that the TDI International also owned by Prem Bajaj, sister company of Bhadra International was having a huge outstanding of Rs 36 crores to AAI in an advertisement contract.

Further, R V Narayanan, Retired ED (Commercial) who was liable for drafting NIT, joined Bhadra International India Ltd as its Vice President after his retirement.

Taking serious note, Singh also directed AAI to suitably amend its service rules for employees by incorporating provisions on seeking permission from department in case of employment within a period of two years after retirement, the Ministry statement said, adding the Minister has sought the compliance report on his directions by the end of this month.

Flight service: Shettar to take team to Manmohan

Chief Minister Jagadish Shettar will lead a delegation to Prime Minister Manmohan Singh, urging him to resolve the issues delaying flight operations in Bidar, district in-charge Minister Sunil Valyapure said.
He was speaking after inaugurating the Hyderabad Karnataka Liberation Day celebrations here on Monday.
“All Cabinet members will be part of the delegation. We will convince the Prime Minister to direct the Civil Aviation Ministry officials to start flights from Bidar,” he told presspersons on Monday.
Memorandum
He said that a memorandum between the Airports Authority of India and GMR infrastructure company (that built the Hyderabad International Airport) was posing problems here.
“I am sure the Union government will find a solution to the problem,” Mr. Valyapure said.

Air India hit by a new crisis

The Air India management and the Indian Commercial Pilots Association (ICPA), part of the erstwhile Indian, are headed for a new confrontation with the latter serving a legal notice on the former for changing the flying duty hours in an “arbitrary” manner.
This comes after a 58-day strike by the Indian Pilots Guild (IPG) about two months ago which impacted the international operations of Air India.
In the notice, the ICPA pointed out that Flight Duty Time Limitation (FDTL) was an integral part of the service conditions as it clearly states the number of hours a pilot is supposed to fly in a fixed time period.
The notice states that starting with the settlement entered in 1993, the terms of the FDTL applicable to the ICPA have been revised regularly; first in 2001 and again in 2006.
“The agreements were further continued by virtue of the documents of the merger of 2007, most particularly the scheme of amalgamation, which provided that the pilots would not be subject to conditions less favourable to those existing at that point of time. Pilots came across news reports that the company is to unilaterally alter the FDTL without in any way consulting the ICPA. We believe that great injustice is being meted out to them by way of the proposed action. All the settlements are within the knowledge of both the company and the Directorate General of Civil Aviation (DGCA) and, therefore, no unilateral alternation is permissible,” the notice states.
Pilots were not aware of the norms and regulations of the new scheme. Under these circumstances, any inadvertent violation on the part of pilots of the applicable norms and regulations is entirely at the risk and expense of the management, the statement says.
The notice comes after Civil Aviation Minister Ajit Singh asked the airline to strictly implement the FDTL and flying time limitations as per DGCA guidelines.
Aviation Ministry study
A recent study by the Ministry found that Air India pilots were flying just six-and-half hours a day against the laid down norm of nine hours.

6 senior AAI officials suspended; FIRs to be filed against 2 former officers, others

Cracking the whip on erring officials, Civil Aviation Minister Ajit Singh on Monday ordered the immediate suspension and initiation of major penalty proceedings against six senior officers of the Airports Authority of India (AAI) after a CBI inquiry found them guilty of committing “serious irregularities and wrong-doing” at various airports, including Chennai, Kolkata, Thiruvananthapuram, Coimbatore, Kozhikode, Mangalore and Tiruchi. 
The CBI investigation revealed that L. L. Krishnan, Executive Director (Commercial); R. L. Saran, DGM (Finance); S. Basu, Additional GM (Commercial); Arun Mehan, DGM (Operations); P. K. Chadha, DGM (Operations); and Ravi Verma, GM, favoured a company in award of contracts for ground handling services at certain airports, an official statement issued here on Monday said.
The Minister also directed the filing of FIR against Prem Bajaj, Managing Director of Bhadra International, the suspect company; R. V. Narayanan, retired ED (Commercial); Ajit Kumar Dubey, retired ED (Finance), AAI; and others for their acts of manipulation, forgery, criminal breach of trust, criminal conspiracy and corruption under the Indian Penal Code and the Prevention of Corruption Act. It was also decided that action be initiated against the company for cancellation of the award/contract and recovery of dues, the statement added. 
Mr. Singh also directed the AAI to take corrective measures to prevent participation of defaulter contractor/parties (even if the default is by their sister/ related concerns) in future tender processes by incorporating suitable provisions in the rules and regulations. 
Following complaints of irregularities in award of contract for ground handling services by the AAI, the CBI conducted a preliminary enquiry. The probe into award of contract for ground handling services in the Chennai and Kolkata airports found that the officers of the AAI made certain deviations from the Commercial Manual in the Notice Inviting Tender (NIT), the statement said.
The deviation in particular included deliberate incorporation of the term tie-up arrangement in the eligibility criteria as stipulated in the NIT to make Bhadra International India Ltd. eligible in joint venture technical agreement with Novia International Consulting APS for participating in the bid process. The justification by the officers that the deviation in the NIT was made as an improvement, keeping in view similar tenders floated by DIAL and MIAL, were found misleading in the inquiry as the NIT of DIAL and MIAL have not used terms as tie-up arrangement.
The probe further revealed that TDI International, a sister company of Bhadra International, also owned by Mr. Bajaj, had a huge outstanding payment of Rs. 36 crore to the AAI in an advertisement contract. Further, Mr. Narayanan, who was liable for drafting the NIT, joined Bhadra International India Ltd. as its vice president after retirement. Taking serious exception to this, the Minister directed the AAI to suitably amend its service rules by incorporating provisions for seeking the permission by retired employees to seek employment within two years after retirement.

·  Erring officials favoured a particular company in awarding contracts for ground handling at certain airports
·  Deviation included deliberate incorporation of the term tie-up arrangement in the eligibility criteria

AI hit by new crisis as ICPA serves notice

Great injustice to pilots if AI alters FDTL without consulting us: ICPA
The Air India management and the Indian Commercial Pilots Association (ICPA), part of the erstwhile Indian, are headed for a confrontation as the latter served a legal notice on the former for changing the flying duty hours in an “arbitrary” manner.
This comes after a 58-day strike by the Indian Pilots Guild (IPG) about two months ago which impacted the international operations of Air India.
In the notice, the ICPA pointed out that Flight Duty Time Limitation (FDTL) was an integral part of the service conditions as it clearly states the number of hours a pilot is supposed to fly in a fixed time period.
The notice states that starting with the settlement entered in 1993, the terms of the FDTL applicable to the ICPA have been revised regularly; first in 2001 and again in 2006.
“The agreements were further continued by virtue of the documents of the merger of 2007, most particularly the scheme of amalgamation, which provided that the pilots would not be subject to conditions less favourable to those existing at that point of time. Pilots came across news reports that the company is to unilaterally alter the FDTL without in any way consulting the ICPA. We believe that great injustice is being meted out to them by way of the proposed action. All the settlements are within the knowledge of both the company and the Directorate General of Civil Aviation (DGCA) and, therefore, no unilateral alternation is permissible,” the notice states.
Pilots were not aware of the norms and regulations of the new scheme. Under these circumstances, any inadvertent violation on the part of pilots of the applicable norms and regulations is entirely at the risk and expense of the management, the statement says.
The notice comes after Civil Aviation Minister Ajit Singh asked the airline to strictly implement the FDTL and flying time limitations as per DGCA guidelines.
Aviation Ministry study
A recent study by the Ministry found that Air India pilots were flying just six-and-half hours a day against the laid down norm of nine hours.
http://www.thehindu.com/todays-paper/tp-national/article3909041.ece

AI pilots serve protest notice

Air India pilots seem to be heading for yet another showdown with the management by serving a notice over the changes in their duty hours, which they said were “arbitrary and illegal.”
“AI management has issued a new route pattern effective September 16, which the ICPA feels is in violation of their bilateral agreements,” the Indian Commercial Pilots’ Association.

Six AAI officials suspended for graft

Six senior officials of the Airports Authority of India have been suspended after a preliminary CBI investigation found them allegedly favouring a private firm in the award of ground-handling service contracts at some airports.

Airport Metro repair work to end by October: Kamal Nath

New Delhi, Sept 17:  
More than two months after the Airport Metro Express line was shut down by the concessionaire citing safety concerns, the Union Urban Development Minister Kamal Nath on Monday said repair work on the premier line was expected to end in October.
He was responding to reporters who asked him about the status of the Airport Metro, the country’s first public-private partnership Metro project, which suspended its services on July 8 after structural faults were detected.
“We are expecting the repair work on the Airport Metro Express Line to be completed by the end of October,” he said.
The Minister was speaking to reporters on the sidelines of a FICCI conference on “Urban Infrastructure -PPP for Better Public Service”.
Nath also said, “Monorail is 40 per cent cheaper than Metro and it can do much sharper curves. It can go up and down, which the Metro cannot. The monorail corridor would provide intra-city transport service in congested localities, where the Metro and even buses may find plying difficult,” he said.

Airport operations briefly affected

Operations at the Kolkata airport were affected on Monday afternoon as power supply to both old and new terminals was disrupted following cable damage. However, flight services were not affected. According to sources, power supply was suspended at around 3.15 pm at the Netaji Subhas Chandra Bose International airport when the cable was damaged. While repair work work began immediately, emergency services were supported by generators.

Power supply affected at Kolkata airport

Kolkata, Sept 17:  
Power supply to Netaji Subhas Bose International airport, in both old domestic and international terminals, was disrupted from 3.14 p.m on Monday following a cable damage. CESC spokesperson said the supply cable was damaged by KMDA contractors. Repair work was going on till late evening and back-up generator support was provided to maintain the emergency service, the spokesperson said. There had been no reports on any major disruption in flight operation

Pilots send legal notice to Air India on flying hours

New Delhi, Sept. 17:  
Pilots of the erstwhile Indian Airlines have sent a legal notice to the airline Chairman and Managing Director, Rohit Nandan, for unilaterally changing the number of hours they are supposed to fly.
The Indian Commercial Pilots Association (ICPA) has pointed out in their legal notice that the Flight Duty Time Limitation (FDTL) was an integral part of their service conditions. FDTL lays down the number of hours a pilot is supposed to fly in a fixed time period.
It was not immediately clear whether the pilots were planning any industrial action, including striking work, to get their point of view across to the management.
The notice states that starting with the settlement in 1993, the FDTL terms applicable to ICPA had been revised regularly – first in 2001 and again in 2006.
“The agreements were further continued by virtue of the documents of merger of 2007, most particularly the scheme of amalgamation, which provided that the pilots would not be subject to conditions less favourable to those existing at that point of time,” the notice states.
It adds that pilots came across news reports that the company was to “unilaterally” alter the FDTL without consulting the ICPA.
“ICPA believes that great injustice is being meted out to them by way of the proposed action,” the petition states, and adds that all the settlements are in the knowledge of both the company and the Directorate General of Civil Aviation and, therefore, no unilateral alteration was permissible.
http://www.thehindubusinessline.com/todays-paper/tp-economy/article3908454.ece

Ground handling contracts: 6 Airports Authority officials suspended

For allegedly favouring private firm Bhadra International
New Delhi, Sept. 17:  
The Civil Aviation Ministry has ordered the immediate suspension and initiation of major penalty against six senior officers of the Airports Authority of India (AAI) for allegedly favouring a private firm while awarding ground-handling contracts.
The action follows a Central Bureau of Investigation probe that found the officers involved in committing irregularities and favouring Bhadra International India Ltd (BIIL) in the award of contracts for ground-handling services at certain airports, including Chennai and Kolkata, a statement issued by the Ministry said.
The CBI also found grave and serious irregularities in award of contracts for ground-handling services for Thiruvananthapuram, Coimbatore, Kozhikode, Mangalore and Tiruchi airports.
The CBI probe on Chennai and Kolkata airports found that these officers had made certain deviations from the commercial manual in the notice inviting tender (NIT). The deviation, in particular, included deliberate incorporation of the term “tie-up” arrangement in the eligibility criteria, as stipulated in the NIT to make BIIL eligible in joint venture technical agreement with Novia International Consulting (NIC) APS for participating in the bid process, the statement adds.
Besides, the experience and turnover of the lead company was to be taken into account. In this case, the lead company is BIIL, which is doing the ground-handling work, while the turnover and experience of NIC were counted, the Ministry said.
In addition, neither of the two companies had the minimum experience of five years in ground-handling, as required in the tender conditions.
The officers who suspended are L.L. Krishnan, Executive Director (Commercial); R.L. Saran, DGM (Finance); S. Basu, Additional GM (Commercial); Arun Mehan, DGM (Operations); P.K. Chadha, DGM (Operations); and Ravi Verma, GM.
The statement further adds that the compliance report on its directions should be positively done by the end of this month.

Kingfisher posts maximum gains

Chennai, Sept. 17:  
Kingfisher Airlines was the star performer in the aviation sector, as the stock shot up 20 per cent — the maximum permissible limit — at Rs 12.97. Kalanithi Maran-controlled SpiceJet rose 12 per cent at Rs 38.60. However, Jet Airways, which started on a promising note to touch a high of Rs 398.6, failed to sustain the gains and closed at Rs 360.50, a fall of Rs 7.85 over the previous day's close.
The Government last week allowed 49 per cent investment by foreign airlines in aviation.
“We believe it is too early to assume that foreign airlines will pay a significant premium to invest, given fundamental headwinds,” said JP Morgan in a research report.
“Amongst the listed players, Jet Airways does not meet eligibility norms given its current promoter’s holding of 80 per cent,” JP Morgan report said, and added, “SpiceJet is the most likely domestic player which could see a potential investment — it has a relatively stronger balance sheet compared to its listed peers and has potential to gain market share through fleet expansion.”
According to analysts, debt-ridden Kingfisher Airlines may struggle to attract FDI in the near term.
“This is on account of its large outstanding debt ($1.8 billion) and vendor payments, small market share, large proportion of impaired fleet. Additionally, according to reports, a large part of its fleet has already been repossessed by the lessors,” Bank of America Merrill Lynch said in a report.
http://www.thehindubusinessline.com/todays-paper/tp-markets/article3908403.ece

Banks want charge on other Kingfisher brands

Move spurred by airline’s falling brand value
New Delhi, Sept. 17:  
The 17-bank consortium that funded ailing Kingfisher Airlines(KFA) wants other Kingfisher brands to be pledged as collateral.
Currently, the Kingfisher Airlines is the only brand that has been charged with the banks. Now, the banks are looking to bring other Kingfisher brands as charge under their fold, including the market leading Kingfisher beer brand, owned by KFA promoter Vijay Mallya.
The proposal to extend charge to other brands in the group comes in the wake of erosion in the security value on banks’ existing exposure to KFA. This was decided at a meeting of the bank consortium held in Mumbai earlier this month, sources close to the developments said.
The other Kingfisher brands that are sought to be brought under charge could be those relating to mineral water and music CDs.
As against a net exposure of about Rs 6,339 crore, the total value of pooled security available with the banks was Rs 5,213 crore, it is learnt. This translates into security coverage of about 82 per cent.
Kingfisher Airlines brand was the only intangible and all other assets were physical assets on which charge was created. An international consulting firm had in April 2010 valued the Kingfisher Airlines brand at Rs 4,111 crore.
As much as 83 per cent of the total value of pooled security came from an intangible asset. Tangible assets like the Kingfisher House in Mumbai accounted for only 17 per cent.
The continuing losses incurred by the private airline has eroded the security value, especially in the recent years, compelling the consortium to seek extension of charge to other Kingfisher brands in the group, it is learnt.
Substitution opposed
Meanwhile, bankers have opposed a proposal of the private carrier to substitute the charge of promoters’ villa in Goa with another asset.
At the meeting, bankers made it clear that substitution would not be encouraged, sources said.
Kingfisher House in Mumbai and the promoters’ villa in Goa are considered as non-core assets. The bank consortium has initiated the process of valuing them and finding a buyer for them. SBI, which is the consortium leader, is doing the valuation on its own.
The future course of action by banks in the KFA case would largely depend on how soon the promoter is able to bring capital into the airline.
KFA Chairman Vijay Mallya has been asked to make a presentation to the banks before this month-end.
SBI Chairman Pratip Chaudhuri has already made it clear that banks would not go by ‘promises or projections’ alone, but would like to see action in the form of capital infusion.