Government plans to halve airport development fee from January 1

NEW DELHI: Reviewing its earlier decision to abolish airport development fees from January 1, 2013, the government has now proposed to halve the charge by spreading it over a longer tenure.

ET had reported on Monday that the levy would be decreased but not done away with. On Wednesday, airport regulator AERA, in a consultation paper, proposed to reduce airport development fee (ADF) at the Delhi airport from the new year to Rs 100 from Rs 200 at present. Similarly, ADF for embarking international passengers is intended to be brought down to Rs 600 from Rs 1,300 at present.

"This levy, at present, is estimated to continue for a period of 40 months up to April 2016 based on the traffic forecast considered at the time of ADF order dated November 14, 2011," the consultation paper floated by the Airports Economic Regulatory Authority(AERA) said.

Earlier, the airport levy at the current charges was supposed to end by September 2014. The civil aviation ministry had on October 16 sent out a press note directing the Airports Authority of India to infuse more equity into DIAL and MIAL with the objective of abolishing ADF.

The ADF is charged to bridge the gap in project funding. However, the shareholders of DIAL - a consortium led by GMRBSE 0.27 % - conveyed to the government that they are not in a position to infuse additional equity into the project.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/government-plans-to-halve-airport-development-fee-from-january-1/articleshow/17605310.cms

Jet Airways touches 52-week high, KFA hits upper circuit on talks with Etihad Airways

MUMBAI: As arch rivals Naresh Goyal's Jet Airways and Vijay Mallya's Kingfisher AirlinesBSE -4.98 % woo Abu Dhabi's Etihad Airways to pick up a stake in their respective airline, investors hardly had a choice, propelling shares of the two airlines into a higher orbit on Thursday.

Etihad CEO James Hogan was expected to make a presentation on both Jet and KFABSE -4.98 % before its board on Thursday, said a senior official from one of the Indian carriers. The meeting was earlier scheduled for the coming Monday, but has now been advanced.

The market is anticipating a deal to be announced soon. Jet Airways emerged as the favourite, soaring 7.29% to Rs 603.65, a share, a 52-week high in the BSE. Mallya's Kingfisher Airlines' fleet may be grounded since October, but its shares jumped only to be restrained by the upper circuit, to end the day with a gain of 4.98% to close at Rs 17.27, a share. Jet has gained 231% since January 1, gaining Rs 3,743 crore as market capitalisation. Bulk of the gains, came about after reports swirled about Etihad eyeing a stake in Jet Airways.

"The market obviously sees a Jet-Etihad deal as a more serious one that is likely to materialise. As far as Kingfisher's deal is concerned (with Etihad), it will depend very much upon the crucial issue whether the promoter, Vijay Mallya, can infuse at least Rs 3,000-4,000 crore, in his own capacity as equity into the airline," SP Tulsian, independent market analyst, said.

A snippet in a Mumbai-based newspaper of the Sultan of Abu Dhabi visiting Goa on December 17, to attend Vijay Mallya's birthday bash further fanned rumours of a possible deal between Etihad, the sovereign airline of Middle Eastern nation, and Kingfisher. Interestingly, the lenders to KFA are meeting on the same day to chalk out their strategy.

Kingfisher Airlines is pulling out all stops for a deal with a foreign investor to materialise. Its board met on December 12, to keep the company's "capital structure in readiness for transactions". It capped FII investment to a maximum 3% equity in the airline, so that the foreign strategic investor eyeing a stake will not have any impediments in acquiring up to 49%. Analysts said that this move by the airline shows it is preparing grounds for a strategic foreign investor to come in.

(The transaction) may be identified in the future for the benefit of all investors as the airline is advised that a fresh infusion of capital by a financial or strategic, Indian or non-resident investor is a "possible alternative", KingfisherBSE -4.98 % said in a notice to BSE.

"The proposal to hike the FII limit could be a precursor to a deal, in which a foreign investor may pick up a substantial stake. However, procedurally, many companies increase their FII investment limit in line with sectoral caps in which they are operating. So, even if there is no deal in the immediate future, the hike in FII limit will provide a ready platform to the acquirer," said Ajay Pandey, head, institutional sales, at ITIBSE 0.90 % Securities.

Tulsian too agrees. "What Kingfisher is doing, it is closing the door for any other FII to come in as it caps these investments at 3%. In September, the total FII investment in Kingfisher was about 2.46% which might have gone up to 2.9% of late. So, essentially this means that Kingfisher is keeping at least 46% for any strategic investor, an airline in this case, which is planning to pick equity," he said.

Equity analyst at ICICIDirect, Rashesh Shah agrees that the buzz on possibility of Etihad picking up stake in an Indian carrier is what is driving up the stocks of late, he also made a point that airline stocks are up also because there is a very near chance that the government might bring the much needed reform in the air turbine fuel price rationalisation and that there might be a uniform tax structure for ATF rather than a varying sales taxof 4% in some states to as high as 28% in other states.

http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/jet-airways-touches-52-week-high-kfa-hits-upper-circuit-on-talks-with-etihad-airways/articleshow/17605193.cms?curpg=2

Cargo firms like FedEx, Gati and Blue Dart allege local airlines fix fuel prices

MUMBAI: The industry body representing air cargo companies, including FedEx, GatiBSE 0.14 % and Blue Dart, has alleged that the domestic airlines have formed a cartel to rig prices under the pretext of fuel surcharge.

Seeking redressal, the Express Industry Council of India (EICI) wrote to the Competition Commission of India (CCI) and to the Civil Aviation Minster Ajit Singhlast week urging them to look into the matter. 

"All domestic airlines have been increase the fuel surcharge by the same amount at more or less the same time. This has led us to believe that they acted in concert," said Vijay Kumar, COO, EICI. 

The EICI has demanded that airlines must stop charging fuel surcharge till such time as pricing is made transparent and market forces allowed to determine pricing. 

Domestic airlines are already mired in a controversy after leading industry luminaries alleged that airlines fix fares. 

"The airlines increased the fuel surcharge by about 70% last year while the crude oil and dollar did not show such an abnormal increase. There is no transparent mechanism to charge fuel surcharge and the increases are ad hoc and arbitrary. The lack of a transparent mechanism of the levies makes it difficult to recover charges from customers," said Anil Khanna, MD, Blue Dart ExpressBSE -0.93 %. 

Blue Dart, however, has its own aviation network so its costs are relatively higher than other players. 

Domestic airlines started levying fuel surcharge on cargo players in 2008. All domestic airlines use the belly of their aircraft for cargo movement. So, an A320 that is used by airlines like Air India and IndiGo would move about seven to eight tonnes of freight and a Boeing 737, operated by Air India, SpiceJetBSE -0.21 % and Jet AirwaysBSE 1.16 %, would move about three to four tonnes of goods in one flight. 

"The industry is slowing down, and if costs continue to increase like this, the industry will bleed further. It is, not possible for us to pass on this hike in fuel surcharge to our customers every quarter or every month", said Subasish Chakraborthy, MD, DTDC. 

The EICI, after studying price movement of air turbine fuel and the fuel surcharge levied by domestic airlines over the past four years, has found that the hike in the surcharge is not in line with the price movement of the ATF. In fact, there is no correlation. The ATF prices have see-sawed over the past year in the range of $90 to $115 per barrel. 

Internationally, according to express air cargo officials, this volatility is hedged to a certain extent and the interest of companies is protected as the fuel surcharges are benchmarked to an index, which is not the case in India. Benchmarking prohibits airlines to escalate pricing when ATF prices shoot up at the same time it allows the benefits to be passed on to logistics firms when the prices dip. 

In its letter to the CCI, EICI said that the determination of the fuel surcharge is also opaque as there is no transparency in the mechanism followed by air carriers and these companies who are made to pay have no say in fixing these prices. 

For example, freight rates on Delhi- Mumbai sector is 7/kg, but the actual costs paid by express air cargo companies to airlines is 28/kg due to various other levies like per flight charge and airway bill charge including fuel surcharge, almost 300% more than the determined charge. 

The fuel surcharge was hiked by around 15% by the airlines like IndiGo, Jet AirwaysBSE 1.06 %, SpiceJetBSE -0.21 % and Air India all within a gap of four days when in fact the pricing of fuel had gone down, EICI wrote to CCI.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/shipping-/-transport/cargo-firms-like-fedex-gati-and-blue-dart-allege-local-airlines-fix-fuel-prices/articleshow/17592515.cms?curpg=2

Jet Airways surges on heavy volumes

The stock has outperformed the market by surging 20% in past three trading sessions compared to around 1% fall in benchmark Sensex.

jet Airways (India) has rallied almost 10% to Rs 619, extending its past two days gain, in an otherwise weak market on the back of over two-fold surge in trading volumes.

As many as a combined 11.96 million shares, representing about 70% of free-float equity of the company, have already changed hands on the counter so far against an average sub 6 million shares that were traded daily in past two weeks.

According to market buzz, Jet Airways may raise Rs 1,600 cr from the sale of its 24% stake to Etihad Airways.

“The company might seek approval from the foreign investment promotion board and the deal could conclude by the end of this month,” the Business Standard report suggests quoting a government official.

On Tuesday the company announced the expansion of its code sharing agreement with Etihad for the Abu Dhabi-Paris route.

The stock has outperformed the market by surging 20% in past three trading sessions on the BSE compared to around 1% fall in benchmark Sensex.

http://www.business-standard.com/india/news/jet-airways-surgesheavy-volumes/199408/on

Kingfisher FII cap to make room for investors

Kingfisher Airlines Ltd, which is in stake sale talks with Abu Dhabi's Etihad Airwaysand other investors, has capped foreign portfolio investment in the company at three per cent, carving space for a foreign investor to buy as much as 46 percent of the embattled carrier.

India allows foreign investment of up to 49 percent in local carriers. Foreign institutional investors currently hold 2.46 percent of Kingfisher, according to stock exchange data.

Foreign institutional investor interest in airline stocks has revived after the government amended rules allowing foreign airlines to invest in Indian carriers. Since last September, FII share holding in Kingfisher has fallen from 2.11 per cent to 0.34 (February) and 0.98 per cent (June) before climbing up to 2.46 per cent in September 2012.

According to analysts, change in the business environment and end-to-discount pricing and cut-throat competition are also responsible for increased investor interest. FII holding in Jet Airways and SpiceJet was 4.81 per cent and 2.86 per cent, respectively, in September.

Cash-strapped Kingfisher, which was once India's No. 2 airline by domestic market share but grounded its fleet early October, said earlier this week it was in talks with Etihad Airways and other investors about taking a stake.(GLOBE FLYERS)

The airline informed BSE that the decision to limit FII investment was taken "with a view to keeping the company's capital structure in readiness for transactions that may be identified in the future for the benefit of all stakeholders of the company," Kingfisher said in a statement on Thursday.

Kingfisher, controlled by liquor tycoon Vijay Mallya, has been trying for more than a year to find an investor, without success. It is saddled with $2.5 billion (around Rs 13,620 crore) in debt, according to one estimate.

A fresh cash infusion into the struggling carrier could come from a financial or strategic, Indian or non-resident investor, Kingfisher said on Thursday. Shares of the company closed 4.98 per cent higher at Rs 17.27 on Thursday, while the BSE benchmark index, Sensex, shed 0.65 per cent to close at 19,229.26.

http://www.business-standard.com/india/news/kingfisher-fii-cap-to-make-room-for-investors/495573/

Pradeep S Mehta: India's uneven playing fields

Competitive neutrality is a minimum condition for effective mixed markets, for which the government needs to adopt and implement the National Competition Policy quickly

Since reforms began in 1990s, the government deregulated sectors that were hitherto the exclusive preserve of the public sector — such as airlines, telephones, insurance, banking and so on. In most cases, however, the government did not privatise any of the state enterprises, but made them face competition from the private sector. Such a policy then requires healthy competition between private sector and public sector firms by providing a level playing field. Alas, in many cases, the government adopts positive discrimination for state enterprises, thus violating a competition policy principle of competitive neutrality. In order for our economy to function well without any distortions, the government has to be neutral. The proposed National Competition Policy calls for such a policy response.

As the Organisation for Economic Cooperation and Development defines it, competitive neutrality is a principle in market competition, which implies that no business entity is advantaged (or disadvantaged) solely because of its ownership. This is a significant element of a country’s competition policy and countries such as Australia, the UK, the US, among others have consistently advocated for the importance of this principle. The draft National Competition Policy in India lays down certain principles on which competition policy be hinged and includes competitive neutrality as one. Unfortunately, despite little debate on its significance in any market setting, evidence of its violation continues. For example, while railway container operations allowed private players to operate, the dice is always loaded against them vis-a-vis the state-owned Container Corporation of India, or Concor. Or, the preferential treatment granted to Air India with respect to the allocation of traffic rights and access to government funding vide laws, regulations, and practices is an example.

On the other hand, Air India has also suffered from lack of competitive neutrality in the past. For many years, public sector airlines, which included then Indian Airlines, were trying in vain to procure aircraft to expand their fleet. As a result, many unused bilateral traffic rights have been allocated to those private airlines that have been allowed to operate lucrative domestic and international services. Instead of giving Air India permission to buy aircraft, the ministry allowed Jet Airways to open international services that operated only on commercial routes already serviced by Air India. Another similar instance of reverse competitive neutrality was seen in the case of the closure of the three vaccine manufacturing public sector units on questionable grounds, followed by sole reliance on private players by the government, which has now been revoked after much hullabaloo.

The principle that the playing field should be levelled between state-owned enterprises and private firms is also true in the reverse. It is not only about potential disadvantages faced by the private sector when it competes against state-owned enterprises – which is how it is commonly understood – but the reverse as well. In an earlier article in Business Standard*, I have argued how this happened. No prizes for guessing that the rent-seeking behaviour of politicians and malleable babus allowed all this to transpire.

Despite being an essential ingredient for a successful competition regime, India is seeing several instances of distortion of this principle across its various sectors. In the recent past, there have been many such cases.

Earlier this month, the Association of Power Producers complained about the discriminatory treatment against Coal India’s draft fuel supply agreement ( FSA), which they allege favours state-run companies. The draft grants the option of arbitration regarding FSAs only to government companies among other one-sided clauses.

Similar concerns arose in the energy sector where the private fuel retailers shut outlets alleging a non-level playing field and a price differential of Rs 3-8 a litre on petrol and Rs 15-20 a litre on diesel, compared to rates of public sector competitors. The government has not ensured a level playing field since it has invited investment by private players, and it has gone back on the withdrawal of the administrative pricing mechanism. Another problem pertains to the grant of subsidies being provided on oil products. Besides the harmful effects of these subsidies on competition and the environment, these are only available to public sector companies and not to private players.

Similarly, the capital market regulator, Securities and Exchange Board of India ( Sebi), recently announced its plans to amend its investment policy. It now parks its surplus funds in fixed deposits of state-owned banks only, even if the returns offered by them are lower than that of private banks by up to 10 basis points (0.1 per cent). According to the recent decision, Sebi would prefer to deposit its surplus funds with public sector banks, even if the rate of interest offered by them is less than the returns offered by private sector banks. The recommendations, which came from Sebi’s committee of executive directors, intend to scrap the current pro-competitive policy that involves competitive bidding between both public as well as private sector banks. The argument offered in favour of the amendment adds insult to injury by saying that was being done “to ensure safety of funds”. A similar directive was once issued by the Reserve Bank of India to public sector companies that they should park their funds only in state-owned banks.

Over the past decade, there has been a rise in the number of mixed markets and with it, an increasing need to have a level playing field for market players. There may be several reasons for having a mixed market economy that acknowledges the significant roles played by both private and public sectors. However, where competitive differences do not reflect underlying differences in costs or objectives, such as where regulations or taxes apply differently to private and public sectors, there may be a risk that the market will not operate perfectly owing to resources being used inefficiently. The application of competitive neutrality and any deviation from these principles, therefore, should always be subject to the condition that the benefits outweigh the associated costs. For this to happen soon, the government needs to adopt the National Competition Policy and implement it.

http://www.business-standard.com/india/news/pradeep-s-mehta-indias-uneven-playing-fields/495483/

China, Japan in air duel over disputed isles

BEIJING: A day after China's top leader Xi Jinping asked the People's Liberation Army to intensify its "real combat" awareness and "military readiness" in view of its tension with Japan over disputed islands, Japan on Thursday scrambled eight of its F-15 fighters to counter any possible threat from a Chinese aircraft that flew in close to Japan-controlled Diaoyu island. The movealarmed Washington and several other capitals. The day also happened to be the 75th anniversary of the Nanjing massacre by Japanese soldiers, and the Chinese government aircraft flying close to the disputed island was seen in Tokyo as a violation of Japan's airspace. This is the first military move by China after Xi Jinping recently took the post of the Central Military Commission.

Analysts said the fact that the Chinese aircraft flew in towards Japanese waters just days ahead of general election in Japan reflected Beijing's worry that the vocally anti-China leader Shinzo Abe might get elected as the next PM.

Japan described China's action as "highly deplorable" . The Chinese ambassador in Tokyo was also summoned to hear a formal Japanese protest . But the Chinese foreign ministry spokesman Hong Lei said the action was "completely normal" because the area belonged to China.

"The Diaoyu islands and affiliated islands are part of China's inherent territory," he said. "The Chinese side calls on Japan to halt all entries into water and airspace around the islands," Hong said. The action may have future implications for China's neighbours including India because Beijing might flex muscles in areas of South China Sea, which is being disputed between China, Vietnam and thePhilippines. Beijing insists that India withdraw from oil exploration in the disputed area of South China Sea.

Japan is already under strain after the satellite on Wednesday by North Korea, which has been antagonistic towards Tokyo.
http://timesofindia.indiatimes.com/world/china/China-Japan-in-air-duel-over-disputed-isles/articleshow/17607587.cms

Shifting of Air India Express headquarters to Kochi gets nod

KOCHI: Air India director board, which met in Kochi on Thursday ratified the proposal to shift the headquarters of the Air India Express (AIE) to the city from January 1.

The low cost wing of the national carrier operates the lion's share of flights from the three airports in Kerala and from the neighbouring Mangalore airport. Much of the control operations of this will now be shifted to Kochi, said Air India chairman and managing director Rohit Nandan.

"We had taken this decision about seven months back, but the pilots' strike and other issues had deferred its implementation," he said in response to questions from reporters here.

Deployment of additional staff in various sections has already begun. "We have already recruited a deputy chief of operations to be posted in Kochi. Officers at the level of deputy chiefs will also be posted here in other wings like commercial and flight safety as well as a flight coordinator," deputy chief operating officer (COO) Pushpinder Singhtold TOI here.

Rohit Nandan said teams of dedicated staff from AIE would be posted in all the airports in Kerala for ensuring better rapport between the airline and passengers.

Ansbert D'souza, COO of AIE, said a call centre in Malayalam would be opened in Kerala soon.

Pushpinder Singh, however, disclosed that integrated operations control centre (IOCC) of the Air India and AIE would continue to remain in Delhi. This means the asset management would largely be controlled from Delhi, airline sources said.

Pushpinder Singh sought to underplay this by saying that with the introduction of airline resource management system (ARMS) software, the geographical location of the IOCC was not of much significance. "I am not suggesting that the location of IOCC closer to predominant area of operation has some advantages. But with the increased communication facilities it would be possible for effective resource management even from different locations," he said.

http://timesofindia.indiatimes.com/city/kochi/Shifting-of-Air-India-Express-headquarters-to-Kochi-gets-nod/articleshow/17606736.cms

Cathay Pacific crew 'may stop smiling'

13 December 2012 Last updated at 05:04 GMTHelp

Cathay Pacific's cabin crew are threatening industrial action over pay that may see them stop smiling and serving food and alcohol to passengers.

They have been offered a 2% pay rise, but are seeking 5%.

Shukor Yusof, an aviation analyst with Standard & Poor's Equity Research, says the management are unlikely to give in to the demands, despite the airline's closely-guarded reputation for service.

If staff go through with the action, Cathay may lose out to low cost competitors in the region, Mr Yusof suggests.

http://www.bbc.co.uk/news/business-20707507

AI Express to get its own wings

Air India Express, the low-cost arm of Air India Charters, will become an independent company in five years after cutting the umbilical cord with the parent company, top officials of Air India Express said here on Thursday.

Addressing the media after the 187th board meeting of the company, Air India Express deputy chief operating officer Captain Pushpinder Singh also said that the airline’s headquarters in Kochi would become fully functional from January 2013.

“AI Express will have its own crew and aviators in the next five years. Commanders and pilots who are on deputation with us from Air India will return to the parent company gradually and these posts will be filled through fresh recruitment,” he said.

Steps were being taken to recruit more pilots. “We have 180 pilots against the actual requirement of 250. Of these, 166 are on deputation from Air India. We are planning to recruit 60 commanders and 50 pilots,’’ he said.

He added that the salary for pilots would be revised to make it the best in the industry. However,   they were focusing on optimum utilisation of its aviators to provide better service. “It has been decided at the meeting to hire pilot instructors from abroad. These foreign instructors will enhance the strength of the existing commanders and will also ensure that trainee pilots are getting ready to join service at the earliest.

“Instructions have also been given to upgrade senior commanders as instructor pilots,” he said.

In the next three years, AI Express  will acquire 14 aircraft taking the total number of flights to 35. “Though we have 21 aircraft at present, we are able to use only 17 due to shortage of pilots,’’ he said.

Regarding the AI Express headquarters in Kochi, Capt Singh said senior officers from operations, flight safety, commercial, finance and flight coordination would be deputed to  the Kochi office. “A call centre for Kerala will be set up in the first quarter of 2013,’’ he said.

Ministry of Civil Aviation Joint Secretary Rajashekera Reddy, Retired Air Chief Marshal Fali H Major, Air India finance director S Venkat, Air India engineering director K M Unni, commercial director Deepak Brara and Air India Express chief operating officer Ansbert D’Souza were present at the board meeting.

http://newindianexpress.com/cities/kochi/article1378753.ece

Support sought for Kingfisher Airlines

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the State and Union Governments and banks to “support” the revival of Kingfisher Airlines. Addressing the media here on Thursday, FKCCI president K. Shiva Shanmugam said that the revival of the airline would “curb” other airlines’ ability to charge higher air fares.

Admitting that higher air fares were also due to the high cost of aviation turbine fuel and generally higher operating costs in the airline industry, Mr. Shiva Shanmugam said that a “major reason” for higher fares in recent months was due to the grounding of Kingfisher Airlines.

The FKCCI also announced that it would conduct the Kodagu Business Development Summit in association with the Kodagu District Chamber of Commerce and Industry at Madikeri on December 18.

http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/support-sought-for-kingfisher-airlines/article4198300.ece

Air India Express to recruit more pilots

The Air India Express (AIX) has set a timeframe of five years to fill the shortage of commanders (or pilots) as part of the drive to make optimum use of its fleet. The decision was taken at its 187{+t}{+h}board meeting held here on Thursday.

Addressing journalists after the meeting, AIX Chief Operating Officer Ansbert D’Souze said getting more pilots was the first step towards streamlining connectivity.

At present, the AIX engages only 180 commanders against the required 250, out of which 166 are on deputation from Air India. The AIX has also set the timeframe of five years for severing “the umbilical chord” with Air India.

The AIX currently has four trainer commanders and is planning to bring in nine more, mostly from abroad, with a long-term goal of creating an in-house team of trainer commanders. Instructors have also been issued to upgrade the senior commanders as trainer commanders. Once the recruitment of 250 pilots is completed, the company will be able to operate targeted 11 hours a day.

The airline is also working on revising the pay packet of the commanders, he said. The meeting decided to take measures to improve the emoluments and working conditions of commanders to make it comparable with the best industry standards. Advertisements calling for new recruitments of commanders will be issued soon. At any given point of time, 17 flights out of its present capacity of 21 will be operating and the AIX is planning to acquire 14 more flights within the next three years to increase its fleet strength to 35.

http://www.thehindu.com/todays-paper/tp-national/air-india-express-to-recruit-more-pilots/article4198128.ece

Delhi International Airport globally certified in software asset management

New Delhi, Dec 13:  

Delhi International Airport (DIAL) on Thursday has become globally certified in standard based software asset management (SAM) for organisation or CSS(O).

SAM is a systems management discipline that includes the infrastructure and processes necessary for the effective management, control and protection of software assets within an organisation throughout all stages of their lifecycle.

It also includes management processes, tools and strategies to get better value from software assets. By being certified, organisations will receive two-year audit forbearance from major software publishers.

It is needed as loose monitoring and control over IT assets, tends to raise the costs involved in SAM, leading to the requirement of tools and processes to manage software licensing costs. By adopting this mechanism, organisations can save up to 15-20 per cent of costs on software management.

CSS(O) was developed through a collaboration between Business Software Alliance, the global advocate for the software industry, KPMG and Deloitte Tohmatsu India. It has been tested and proven through a local pilot programme with Symphony Services in November 2011.

“Strong corporate governance is critical for companies that compete globally, and CSS(O) certification allows companies such as DIAL to demonstrate that their SAM is best in class,” Jodie L Kelley, General Counsel and Senior Vice President of Anti Piracy, BSA said.

She said the company is now working with 120 companies for such certifications and as many Indian companies in manufacturing and banking rely on software management, the adoption rate would be higher in coming years.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/delhi-international-airport-globally-certified-in-software-asset-management/article4197064.ece

Fall in passenger numbers as domestic airfares rise

Geneva, Dec 13:  

The decline in domestic air travel in India is an adjustment to the unsustainable levels noticed earlier, the Chief Economist, International Air Transport Association (IATA) Brian Pearce said on Thursday.

“It is hard to say what the level should be. It is for the market to work out what will be a justifiable rate (for growth).

“What we saw earlier was tremendously rapid growth in air travel. With very low fares, we saw huge losses in most airlines. Now we are seeing adjustments among airlines. This is reflected in increase in cost of travel and fewer seats. Airlines are in less trouble and we have seen a reduction in losses. We are approaching more of a balance,” Pearce told Business Line.

After showing growth for several years, the number of passengers carried by domestic airlines in India has been declining since the beginning of the calendar year 2012.

During October this year, there was a decline of over 15 per cent according to data released by the Directorate General of Civil Aviation.

Analysts in India point to rising domestic airfares as the primary reason for decline in passenger numbers.

Worried at the sudden spurt in domestic airfares, Civil Aviation Minister Ajit Singh has emphasised bringing about greater transparency in pricing of air tickets in India.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/fall-in-passenger-numbers-as-domestic-airfares-rise/article4197010.ece

Air India Express plans optimal use of its fleet

Kochi, Dec 13:  

Air India Express (AIX) has decided to utilise its fleet of 21 aircraft more optimally. A decision in this regard was taken at the 187 {+t} {+h} Board meeting held in Kochi on Thursday.

Speaking to reporters after the board meeting, Ansbert D’souza, Chief Operating Officer, Air India Express, said that at present AIX flies nine hours out of every 24 hours. With the decision to augment the commander force, he said this productivity of nine hours could escalate to minimum of 11 hours making AIX one of the best low-cost airline in the country.

The Board also discussed the issue of shortage of commanders and it was decided to hire more trainer commanders or instructor pilots who in turn will help in upgrade the existing pilot forces. The number of trainer commanders will be increased to 13. Currently, there are only four. It was also decided to take necessary measures to improve the emoluments and working conditions to make it comparable with the best industry standards. This will ensure the continued service of existing commanders and an advertisement is being issued to enable more commanders to join Air India Express at the earliest.

At present, AIE has got 190 commanders against the requirement of 252 to operate 21 fleets. The focus will be more on trainers to expedite the training.

To expedite the training of the existing trainee co pilots, it was also decided to hire pilot instructors from abroad. These foreign pilot instructors will not only enhance the strength of the existing commanders but will also ensure that the trainee co-pilots complete their training soon. Instructions have also been given to upgrade the senior commanders as instructor pilots, he added.

Pushpinder Singh, Deputy COO, Air India Express, said that it has also been decided to augment the existing number of officers at the corporate headquarters at Kochi within the first week of January.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/air-india-express-plans-optimal-use-of-its-fleet/article4197009.ece