Mumbai
airport wants to penalise airlines that do not use approved slots and cancel
flights for commercial reasons. The proposal (called slot charge), the first
of its kind in India, is under Airport Economic Regulatory Authority’s
(AERA’s) consideration.
The
slot charge has been included in Mumbai International Airport Limited’s
(MIAL’s) rate revision proposal. While MIAL had sought 881 per cent increase
in aeronautical charges including landing and parking charges and use of
aerobridge fees, among others, the regulator has recommended a 151 per cent
rise, and sought comments from airlines and trade bodies on it.
The
final order is expected in December and the new rate structure is expected to
be in force from next January. Earlier this year, AERA approved a 345 per
cent rise in rates at Delhi airport, against the 770 per cent sought by the
GMR Group that runs the airport.
In its filing, MIAL has said the airport needs to operate at peak capacity to meet the demand, and, hence, non-utilisation of slots needs to be checked. "The value of slots, if not used, is lost forever, and can not be recovered in any manner. To increase operational efficiency, leading to lower charges for users, MIAL is making a proposal to deter misuse of scheduled and unscheduled slots allocated to air carriers,'' said the AERA's consultation paper on rate revision. MIAL has said despite its monitoring, airlines obtain slots and do not use them, resulting in sub-optimal utilisation of infrastructure.
Mumbai
airport wants airlines to pay a sum equivalent to the landing charges in case
the airline does not operate a flight for commercial reasons on more than two
occasions. Currently, the Mumbai airport charges Rs 15,000 as landing charge
for Boeing 737 and Airbus A320. Aviation experts say Kingfisher’s cancellation
of flights could have triggered MIAL’s decision. "The runway is an
expensive resource. It remaining idle is wasteful. However, the charge has to
be nominal,'' said an expert. He said the airline can lose a slot if it does
not operate 80 per cent of flights in a schedule, but that decision can be
taken by the Director General of Civil Aviation.
International
Air Transport Association (IATA) has opposed MIAL’s proposal. “IATA is
opposed to MIAL’s proposal to introduce a slot charge for flight cancellations.
Nowhere else in the world is there a slot-use charge. Neither is it the right
way to solve the slots problem at the Mumbai airport. The way to resolve this
is through coordination committees, slot-performance committees and the
appointment of an independent slot coordinator,” IATA said.
GVK
Group-run MIAL is carrying out the modernisation of Mumbai airport. This
includes upgradation of runways, taxiways and new integrated terminal. The
project cost was revised from Rs 9,800 crore to Rs 12,380 crore, but the
regulator has disallowed certain projects, and excluded some others, fixing
the project cost at Rs 11,647 crore for purpose of rate revision.
AERA’s
rejection of MIAL’s demand of 881 per cent rise will impact the operator’s
plans to fund the project. MIAL filed with AERA that promoters had ruled out
further equity infusion, and banks too had said no to additional funding till
clarity on rate approval. MIAL has a total debt of Rs 4,231 crore and equity
of Rs 1,200 crore. AERA has also written to the Airports Authority of India
to consider additional equity participation in the project.
On
Monday, Sanjay Reddy, vice-chairman of GVK Power & Infra, told a news
channel the company was in discussion with private equity companies for
investment in the group’s airport holding company.
|
Monday 15 October 2012
Mumbai airport may penalise airlines
Air India gets its third Boeing 787 Dreamliner
NEW DELHI: Air India got
its third Boeing
787 Dreamlinertoday from the new North Charleston facility of the US-based
manufacturer.
The aircraft, piloted by Captain Amitabh Singh and Captain Rohit Bhasin, landed at IGI airport here at 5.15 pm and was received by senior airline officials, a senior Air India official said.
Air India is likely to deploy its newly-acquired fleet of Boeing 787 Dreamliner aircraft for long-haul international operations from next week. The first destination would be Frankfurt and the service is likely to begin from October 15.
In September, Air India took delivery of its first of the 27 Dreamliners on order. The aircraft is equipped with 18 business class seats and 238 in the economy class.
Air India has currently deployed the Dreamliners on domestic sector to familiarise the pilots with aircraft landings and takeoff procedures.
The first commercial service of Dreamliner started from September 19 between New Delhi and Chennai, followed by New Delhi-Bangalore sector.
The airline would take delivery of the fourth 787 on October 20 and another by the end of this year, followed by seven more in 2013, five in 2014, six in 2015 and three in 2016.
Dreamliner is the first commercial jet made primarily of advanced composite materials. It offers exceptional passenger comfort features including cleaner air, higher humidity, bigger windows that dim electronically and more overhead storage space.
The aircraft's fuel efficiency is 20 per cent better than other airplanes in its class, which also results in 20 per cent lower carbon emissions.
The aircraft, piloted by Captain Amitabh Singh and Captain Rohit Bhasin, landed at IGI airport here at 5.15 pm and was received by senior airline officials, a senior Air India official said.
Air India is likely to deploy its newly-acquired fleet of Boeing 787 Dreamliner aircraft for long-haul international operations from next week. The first destination would be Frankfurt and the service is likely to begin from October 15.
In September, Air India took delivery of its first of the 27 Dreamliners on order. The aircraft is equipped with 18 business class seats and 238 in the economy class.
Air India has currently deployed the Dreamliners on domestic sector to familiarise the pilots with aircraft landings and takeoff procedures.
The first commercial service of Dreamliner started from September 19 between New Delhi and Chennai, followed by New Delhi-Bangalore sector.
The airline would take delivery of the fourth 787 on October 20 and another by the end of this year, followed by seven more in 2013, five in 2014, six in 2015 and three in 2016.
Dreamliner is the first commercial jet made primarily of advanced composite materials. It offers exceptional passenger comfort features including cleaner air, higher humidity, bigger windows that dim electronically and more overhead storage space.
The aircraft's fuel efficiency is 20 per cent better than other airplanes in its class, which also results in 20 per cent lower carbon emissions.
Air India's Dreamliner makes maiden long-haul flight; flies Delhi-Frankfurt
NEW DELHI: The
much-awaited aircraft, Boeing787, also
known as the Dreamliner, gave wings to Air India's international ambitions by
making it's maiden long-haul flight between national capital Delhi and
Frankfurt in Germany on Monday.
The national carrier had taken delivery of the first of the 27 Dreamliners on September 8 this year, after which two more have joined the fleet. Till now these aircraft were being deployed on the domestic sectors - apart from operations between Delhi and Dubai, a medium-haul sector.
"Air India's Dreamlinerto Frankfurt marks a new era of its operations with the state-of-the-art aircraft on the long haul routes as well," a press statement from the state-owned carrier said.
The flight AI 121 from Delhi to Frankfurt took off with Captain Soman in Command and Captain Nikhil Dongre as co-pilot, the release added.
This new machine has a two class configuration with 18 flat bed seats in the Executive Class and 238 seats in the Economy class, a total of 256 seats. The aircraft is equipped with the state-of-the-art in-flight entertainment system (Top Series i8000), capable of AVOD (Audio Video On Demand) in all classes.
A USB port is provided in all classes capable of connecting to Passenger Electronic Devices e.g. Digital Camera, Keyboard, MP3 Player, Mobile phone charging, etc. Also, an overhead video Broadcast is provided on the 15.4 inch LCD monitors throughout the cabin.
Passengers aboard the Dreamliners will also experience a smoother ride, as the airplane is equipped with a system that senses turbulence and commands wing control surfaces to counter it, enhancing comforts in the travel.
Air Indiawas supposed to get the first of the B-787s in 2008, after it ordered 27 of them in 2005 from US plane maker Boeing. Air India now plans to start new routes between India-US, India-Europe and India-Australia with the help of these aircraft, eight of which will join the airline's fleet by March next.
As per the operational and financial turnaround plan of Air India, 14 Dreamliners are supposed to be inducted into the AI fleet by 2013-14.
The national carrier had taken delivery of the first of the 27 Dreamliners on September 8 this year, after which two more have joined the fleet. Till now these aircraft were being deployed on the domestic sectors - apart from operations between Delhi and Dubai, a medium-haul sector.
"Air India's Dreamlinerto Frankfurt marks a new era of its operations with the state-of-the-art aircraft on the long haul routes as well," a press statement from the state-owned carrier said.
The flight AI 121 from Delhi to Frankfurt took off with Captain Soman in Command and Captain Nikhil Dongre as co-pilot, the release added.
This new machine has a two class configuration with 18 flat bed seats in the Executive Class and 238 seats in the Economy class, a total of 256 seats. The aircraft is equipped with the state-of-the-art in-flight entertainment system (Top Series i8000), capable of AVOD (Audio Video On Demand) in all classes.
A USB port is provided in all classes capable of connecting to Passenger Electronic Devices e.g. Digital Camera, Keyboard, MP3 Player, Mobile phone charging, etc. Also, an overhead video Broadcast is provided on the 15.4 inch LCD monitors throughout the cabin.
Passengers aboard the Dreamliners will also experience a smoother ride, as the airplane is equipped with a system that senses turbulence and commands wing control surfaces to counter it, enhancing comforts in the travel.
Air Indiawas supposed to get the first of the B-787s in 2008, after it ordered 27 of them in 2005 from US plane maker Boeing. Air India now plans to start new routes between India-US, India-Europe and India-Australia with the help of these aircraft, eight of which will join the airline's fleet by March next.
As per the operational and financial turnaround plan of Air India, 14 Dreamliners are supposed to be inducted into the AI fleet by 2013-14.
Kingfisher Airlines postpones meet with employees to October 17
MUMBAI: Kingfisher
AirlinesBSE 0.00 %in a late evening communication informed its
pilots and engineers that the crucial meeting that was slated to take place on
Monday with UB
Group top brass has been now shifted to October 17.
The meeting for talks to find a solution to the deadlock that has grounded Kingfisher for 15 days now is kept under wraps and the employee representatives have not been informed the exact time and date of the meeting.
Kingfisher has to come up with a viable business plan if it needs to re-start operations as it states on its website from October 21. The airline has also to reply to a showcase notice issued by the civil aviation regulator before 20 October, which some reports suggest that the regulator might extend.
The meeting is a make or break for Kingfisher, the airline promoted by Vijay Mallya, the one-time undisputed czar of the spirit business in India. Employees of the airline said they expected the meeting might never take off. "We think this is just a gimmick and nothing will emerge from them," said a pilot not wanting to be quoted.
The meeting for talks to find a solution to the deadlock that has grounded Kingfisher for 15 days now is kept under wraps and the employee representatives have not been informed the exact time and date of the meeting.
Kingfisher has to come up with a viable business plan if it needs to re-start operations as it states on its website from October 21. The airline has also to reply to a showcase notice issued by the civil aviation regulator before 20 October, which some reports suggest that the regulator might extend.
The meeting is a make or break for Kingfisher, the airline promoted by Vijay Mallya, the one-time undisputed czar of the spirit business in India. Employees of the airline said they expected the meeting might never take off. "We think this is just a gimmick and nothing will emerge from them," said a pilot not wanting to be quoted.
Kingfisher Airlines' employees get income-tax notices on non-payment of taxes
NEW DELHI: A seven-month backlog in unpaid
salaries is not the only menace Kingfisher
AirlinesBSE 0.00 %staff is grappling with these days. In a double
whammy to Kingfisher's employees, the income-tax department has begun sending
out notices directing them to clear tax liabilities, which run into several
lakh of rupees for some.
While the bankrupt airline, by not depositing the TDS, or tax deducted at source, still owes over Rs 60 crore in taxes to the government, the employees, who are already grappling with a cash crunch due to unpaid salaries for the past seven months, are wondering how the tax dues from the airline are their responsibility.
"The company (Kingfisher Airlines) has not given us 'Form 16' since 2009. We did not know that the company was not depositing the TDS to the central government. I applied for a tax refund to get some money since there's been no salary for a while and because my tax was not deposited to the government, and in return I received a notice from the I-T department," a pilot with the airline told ET.
A copy of the notice served on him reads: "The demand is arising as the pre-paid taxes claimed by you are not matching with the data available in the system. You may, kindly write to assessing officer giving proof in support of your claim."
ET spoke to an assessing officer who said they have no alternative but to issue notices. "We are aware of the developments and in various cases people have come to us, but there is not much that we can do because most of this is system generated," the official explained.
The I-T department issued notices to employees demanding TDS, since the tax deducted by the employers has not updated in the department's system. There is a mismatch in the tax claimed by employees as the tax remains outstanding with KFABSE 0.00 %failing to deposit the same to the government. "The demand notice will ask employees to clear the dues for processing of I-T returns. Outstanding tax deduction is ultimately the responsibility of employees, who needs to clear the dues," a tax official said.
Kingfisher had deducted TDS from employees account but failed to transfer the same to the government. In June 2011, the last TDS was received from KFA. The I-T department has served them notice as the arrears were over 300 crore for the last two years. The department tried reaching KFA management on the same. But the management did not respond to the tax department's missive. As a result, the Kingfisher account was attached in February 2012 for non payment of TDS.
According to a finance ministryofficial, the total service taxdues alone on Kingfisher Airlines are above Rs 60 crore. The airline has not deposited service tax collected from passengers with the tax department since last November. "We had frozen most of their accounts but in view of the suicide committed by an employee's wife some money was released to allow payment of salaries," he said. However, so far none of the employees of the airline, which has debts upward of Rs 7,000 crore, has received any salary.
However, for the non-compliance by the company, some employees could face the heat because not every assessing officer would be lenient, a former employee now affiliated to another airline said.
The department had served notice in December last year to Vijay Mallyaand directors of the company. However, KFA approached Karnataka HC, which passed a stay order on it. "The order will be issued against the company again," says a person familiar with the development.
"Some notices have been issued. Also, there are some cases where people have changed jobs and as per their existing tax liability notices have been sent. But no action has been taken in terms of any penalties on KFA employees," another assessing officer said, adding that only in certain cases could they be lenient.
While the bankrupt airline, by not depositing the TDS, or tax deducted at source, still owes over Rs 60 crore in taxes to the government, the employees, who are already grappling with a cash crunch due to unpaid salaries for the past seven months, are wondering how the tax dues from the airline are their responsibility.
"The company (Kingfisher Airlines) has not given us 'Form 16' since 2009. We did not know that the company was not depositing the TDS to the central government. I applied for a tax refund to get some money since there's been no salary for a while and because my tax was not deposited to the government, and in return I received a notice from the I-T department," a pilot with the airline told ET.
A copy of the notice served on him reads: "The demand is arising as the pre-paid taxes claimed by you are not matching with the data available in the system. You may, kindly write to assessing officer giving proof in support of your claim."
ET spoke to an assessing officer who said they have no alternative but to issue notices. "We are aware of the developments and in various cases people have come to us, but there is not much that we can do because most of this is system generated," the official explained.
The I-T department issued notices to employees demanding TDS, since the tax deducted by the employers has not updated in the department's system. There is a mismatch in the tax claimed by employees as the tax remains outstanding with KFABSE 0.00 %failing to deposit the same to the government. "The demand notice will ask employees to clear the dues for processing of I-T returns. Outstanding tax deduction is ultimately the responsibility of employees, who needs to clear the dues," a tax official said.
Kingfisher had deducted TDS from employees account but failed to transfer the same to the government. In June 2011, the last TDS was received from KFA. The I-T department has served them notice as the arrears were over 300 crore for the last two years. The department tried reaching KFA management on the same. But the management did not respond to the tax department's missive. As a result, the Kingfisher account was attached in February 2012 for non payment of TDS.
According to a finance ministryofficial, the total service taxdues alone on Kingfisher Airlines are above Rs 60 crore. The airline has not deposited service tax collected from passengers with the tax department since last November. "We had frozen most of their accounts but in view of the suicide committed by an employee's wife some money was released to allow payment of salaries," he said. However, so far none of the employees of the airline, which has debts upward of Rs 7,000 crore, has received any salary.
However, for the non-compliance by the company, some employees could face the heat because not every assessing officer would be lenient, a former employee now affiliated to another airline said.
The department had served notice in December last year to Vijay Mallyaand directors of the company. However, KFA approached Karnataka HC, which passed a stay order on it. "The order will be issued against the company again," says a person familiar with the development.
"Some notices have been issued. Also, there are some cases where people have changed jobs and as per their existing tax liability notices have been sent. But no action has been taken in terms of any penalties on KFA employees," another assessing officer said, adding that only in certain cases could they be lenient.
Section 205 of the Income Tax
Act, 1961, provides a safeguard to employees/deductees, when employers don't
deposit the TDS to the central government. The Section bars direct demand on
the employee and reads, "Where tax is deductible at the source, under the
foregoing provisions of this Chapter, the assessee shall not be called upon to
pay the tax himself to the extent to which tax has been deducted from that
income."
Interestingly, the airline owner Vijay Mallya, who is said to be abroad, has not been heard of since October 2, when the airline got grounded due to a protest by employees for non-payment of salaries.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-employees-get-income-tax-notices-on-non-payment-of-taxes/articleshow/16829801.cms?curpg=2Interestingly, the airline owner Vijay Mallya, who is said to be abroad, has not been heard of since October 2, when the airline got grounded due to a protest by employees for non-payment of salaries.
Aviation fuel rates cut; no relief for flyers
New Delhi, Oct 15:
For the second time in the month, oil marketing
companies have reduced the price of Aviation Turbine Fuel (ATF) by 3 per cent.
However, this is not likely to give any relief to flyers, as there are no signs
airlines will bring down the fuel surcharge.
From Monday, every litre of ATF would cost Rs
68.40 in Delhi against Rs 70.51 earlier. The previous reduction was on October
1 when prices came down 4.33 per cent.
Airlines have faced higher fuel prices for the
past several months, but the festival season and seat reduction mean this will
not translate into any drop in passenger fares.
Sources said airlines do not make a public
announcement about any price cut as they are very often accused of
cartelisation. With major festivals such as Dussehra and Diwali in the offing,
there is more demand. Moreover, after Kingfisher Airlines suspended operations
recently, the number of seats in several routes has reduced, the official
added.
AAI may inject Rs 300 crore more equity in Mumbai airport
Rising project cost cited as reason for pumping
in funds
New Delhi, Oct. 15:
The state-owned Airports Authority of India
(AAI) plans to pump in between Rs 250 crore and Rs 300 crore as additional
equity in Mumbai International Airport Ltd (MIAL).
AAI currently has equity of about Rs 600 crore
in MIAL.
“The equity is being increased as the project
cost has increased,” a senior official said.
The nod for this proposal, expected later this
week at AAI’s board meeting, could see the state-owned airport operator raise
its equity in some other projects too.
AAI holds equity in several public-private
partnership (PPP) projects, including the airport modernisation programme at
Delhi, Hyderabad and Bangalore. Sources, however, declined to speculate on when
or by how much AAI will increase its equity in other airport projects.
Mumbai International Airport is a public-private
partnership venture between GVK, AAI and Airport Company South Africa, which
owns and operates 10 airports in that country. GVK leads the consortium with a
50.5 per cent stake, while AAI holds 26 per cent.
In November 2007, the original project cost was
revised to an estimated Rs 9,802 crore, mainly to provide for a new integrated
terminal, relocation of existing international terminal and other existing
structures to provide for more space on the airside and consolidation of
terminals 2B and 2C to pave the way for development of an integrated terminal.
In its submission to the Airports Economic Regulatory
Authority to determine the levy of development fee, MIAL said the cost was
revised to Rs 10,453 crore in October 2010 on account of certain mandated
projects.
Further, it submitted that due to delay in
handing over certain areas for construction, the schedule of the project got
extended by 17 months and with addition of certain new works the project cost
was further revised to Rs 12,380 crore.
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