'MRO facilities of Air India Express will be augmented'

Union Minister of State for Civil Aviation K C Venugopal on Wednesday said that the Maintenance, Repair and

Overhaul (MRO) facilities of Air India Express here will be augmented to allow other airlines to use the facilities.

Handing over the Director General of Civil Aviation’s approval for carrying out the C-Check at the MRO,

Venugopal said that in the next phase, the facility will be extended for aircraft other than Boeing 737-800. A

certification of the European Aviation Safety Agency (EASA) and the Federal Aviation Administration of the US for

the engineering base will be obtained to attract foreign aircraft, he said.

The facility will enable to carry out C-Check on one aircraft every

month. It is mandatory that an aircraft should undergo routine maintenance check after every 7,500 hours. This

is the fourth MRO in the country with approval for conducting C-Check. The Minister also warned of stern action

against exploitation of AME students by private institutions that function without proper facilities. At present,

students who completed AME are taken as trainees in the MRO and more persons will be appointed, he said.

On setting up Air Kerala in the state, the Union Minister said the Centre is yet to receive any formal request in

this regard. Any exemption for the project will be given only after getting the proposal from Kerala, Venugopal

said.

He said that the performance of Air India was improving with no major cancellations in the last three months.

The ontime performance of Air India Express was 96 per cent during this time, the Minister said.

http://newindianexpress.com/cities/thiruvananthapuram/article1443243.ece?service=print

Airbus says it has a 'Plan B' for A350 jet batteries

TOULOUSE, France: Airbus has studied alternatives to lithium-ion batteries for its next jet, the A350, and has time to adapt to any rule changes prompted by the problems that have grounded Boeing Co's 787 Dreamliner, its top executive said. 

Airbus plans to use lithium-ion batteries on the A350, similar to the technology incorporated in Boeing's 787 airliners, and so far has stood by the modern power packs. 

"We studied the integration of these batteries on the A350 very carefully," Airbus Chief Executive Fabrice Bregier told a group of French aerospace journalists on Thursday. "I am very relaxed about this." 

The first US grounding of a new model of passenger jet in over 30 years has focused attention on the risks that lithium-ion batteries can overheat and ignite a fire that is harder to put out than most flames, because of the solvents involved. 

Airbus warned about the risks of lithium-ion batteries at a closed meeting of airlines in March 2011, according to a presentation first reported by Reuters this week. 

"We identified this fragility at the start of development and we think we resolved it about a year ago," Bregier said. "Nothing prevents us from going back to a classical plan that we have been studying in parallel." 

He did not provide details, but some aerospace industry sources caution that a redesign of the batteries could require months of engineering work and tests to obtain certification. 

"We have a robust design. If this design has to evolve, we have the time to do that," Bregier said. "If it has to change in a more drastic way because the authorities reach the conclusion that the technology is not mature, then we have all the time we need to do this on the A350 before first delivery in the second half of 2014." 

The head of the company that makes A350 batteries, France's Saft, told Reuters earlier on Thursday he did not believe there would be a radical rethink by aviation regulators on the use of lithium-ion as a result of the 787's problems. 

It is the first time Boeing or Airbus has used the technology in designing commercial passenger jets. 

POWER BOOST 

Lithium-ion batteries are a third lighter than their older nickel-cadmium counterparts and are also capable of supporting other electrical systemsBSE 3.38 % that make the plane lighter. They take up less space than the nickel cadmium batteries used on most jets. 

Experts say the 787 relies more heavily than the A350 on electrical systems instead of traditional hydraulics to control brakes and other systems, and therefore needs more power back-up. 

The head of the National Transportation Safety Board said after a press conference last week that the lack of a fire-fighting system in the 787's battery compartment, which also contains flight electronics, was one area being examined. 

Airbus has declined to say whether the A350 would include battery fire extinguishers, but industry sources say burning materials would instead be expelled outside the plane and that the fire hazard is reduced by electronics also provided by Saft. 

Saft declined to comment on the A350 battery design. Boeing's 787 batteries are supplied by French defence electronics company Thales, which sub-contracts the lithium-ion cells to Japanese company GS Yuasa Corp.

A year after intense global publicity surrounding wing cracks on its A380 superjumbos, Airbus is keen to avoid a public split with its commercial rival on safety issues. But after sending a public message of support to Boeing on the 787 this month, Bregier exhibited frustration at growing speculation over the saga's impact on the A350. 

"I'm not going to give any lessons to Boeing. At the same time, I don't have to take any either, when I think we have done well and have a plan which allows me to have aircraft flying with batteries that don't catch fire," he said. 

"Let's allow the US authorities to come up with their own recommendations and decisions." 

Boeing Chief Executive Jim McNerney said on Wednesday the U.S. planemaker was "narrowing down" the potential causes of the two battery incidents that led to the 787 grounding.

http://economictimes.indiatimes.com/news/international-business/airbus-says-it-has-a-plan-b-for-a350-jet-batteries/articleshow/18285146.cms

Japan's All Nippon in talks with GoAir, SpiceJet for India entry; held talks with Kingfisher too

MUMBAI/ CHENNAI: Japan's All Nippon Airways (ANA) has reportedly held talks with GoAir and SpiceJetBSE 2.96 % for a stake purchase. ANA spokesperson RyoseiNomura, however, told TOI over phone, "We do not offer comments on such media queries." A detailed questionnaire seeking details of ANA's interest in the two Indian carriers remained unanswered till the time of going to press.

Repeated calls and an e-mail query to Jeh Wadia, MD of GoAir, elicited no response. Sun Group's CFO S L Narayanan said in an e-mailed statement, "Some strategic investors have evinced interest in speaking to the company; however, we can neither confirm nor deny the names of any specific carriers, given the uncertainties of a viable transaction fructifying."

Narayanan, sources said, is spearheading the talks with ANA. Phone calls to Anand Rathi Financial Services CEO Praveen Chakravarty went unanswered. Ever since India relaxed ownership rules, allowing foreign carriers to buy up to 49% stake in domestic airlines, the sector has been buzzing with news of mergers and acquisitions. Jet AirwaysBSE 1.85 % and the grounded Kingfisher AirlinesBSE 2.19 % have been in stake-sale talks with Etihad Airways. However, the former is expected to clinch the deal with the Abu Dhabi airline soon.

Sources said that ANA also had discussions with Kingfisher Airlines but made no substantive progress. Malaysia's AirAsia too is exploring opportunities in India following the change in norms. SpiceJet has had an head-start in its talks with ANA but there has been no direct meeting between media tycoon and Sun Group founder Kalanidhi Maran yet.

Industry observers said several domestic carriers looked at raising funds from private equity firms, but have altered plans, preferring to settle down with a strategic investor. SpiceJet has had talks with private equity funds like Olympus Capital and TPG Capital and is now looking at strategic investors. GoAir too was looking at private equity money some time ago.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/japans-all-nippon-in-talks-with-goair-spicejet-for-india-etry-held-talks-with-kingfisher-too/articleshow/18284838.cms

Airbus says it has a 'Plan B' for A350 jet batteries

TOULOUSE, France: Airbus has studied alternatives to lithium-ion batteries for its next jet, the A350, and has time to adapt to any rule changes prompted by the problems that have grounded Boeing Co's 787 Dreamliner, its top executive said. 

Airbus plans to use lithium-ion batteries on the A350, similar to the technology incorporated in Boeing's 787 airliners, and so far has stood by the modern power packs. 

"We studied the integration of these batteries on the A350 very carefully," Airbus Chief Executive Fabrice Bregier told a group of French aerospace journalists on Thursday. "I am very relaxed about this." 

The first US grounding of a new model of passenger jet in over 30 years has focused attention on the risks that lithium-ion batteries can overheat and ignite a fire that is harder to put out than most flames, because of the solvents involved. 

Airbus warned about the risks of lithium-ion batteries at a closed meeting of airlines in March 2011, according to a presentation first reported by Reuters this week. 

"We identified this fragility at the start of development and we think we resolved it about a year ago," Bregier said. "Nothing prevents us from going back to a classical plan that we have been studying in parallel." 

He did not provide details, but some aerospace industry sources caution that a redesign of the batteries could require months of engineering work and tests to obtain certification. 

"We have a robust design. If this design has to evolve, we have the time to do that," Bregier said. "If it has to change in a more drastic way because the authorities reach the conclusion that the technology is not mature, then we have all the time we need to do this on the A350 before first delivery in the second half of 2014." 

The head of the company that makes A350 batteries, France's Saft, told Reuters earlier on Thursday he did not believe there would be a radical rethink by aviation regulators on the use of lithium-ion as a result of the 787's problems. 

It is the first time Boeing or Airbus has used the technology in designing commercial passenger jets. 

POWER BOOST 

Lithium-ion batteries are a third lighter than their older nickel-cadmium counterparts and are also capable of supporting other electrical systemsBSE 3.38 % that make the plane lighter. They take up less space than the nickel cadmium batteries used on most jets. 

Experts say the 787 relies more heavily than the A350 on electrical systems instead of traditional hydraulics to control brakes and other systems, and therefore needs more power back-up. 

The head of the National Transportation Safety Board said after a press conference last week that the lack of a fire-fighting system in the 787's battery compartment, which also contains flight electronics, was one area being examined. 

Airbus has declined to say whether the A350 would include battery fire extinguishers, but industry sources say burning materials would instead be expelled outside the plane and that the fire hazard is reduced by electronics also provided by Saft. 

Saft declined to comment on the A350 battery design. Boeing's 787 batteries are supplied by French defence electronics company Thales, which sub-contracts the lithium-ion cells to Japanese company GS Yuasa Corp.

A year after intense global publicity surrounding wing cracks on its A380 superjumbos, Airbus is keen to avoid a public split with its commercial rival on safety issues. But after sending a public message of support to Boeing on the 787 this month, Bregier exhibited frustration at growing speculation over the saga's impact on the A350. 

"I'm not going to give any lessons to Boeing. At the same time, I don't have to take any either, when I think we have done well and have a plan which allows me to have aircraft flying with batteries that don't catch fire," he said. 

"Let's allow the US authorities to come up with their own recommendations and decisions." 

Boeing Chief Executive Jim McNerney said on Wednesday the U.S. planemaker was "narrowing down" the potential causes of the two battery incidents that led to the 787 grounding.

http://economictimes.indiatimes.com/news/international-business/airbus-says-it-has-a-plan-b-for-a350-jet-batteries/articleshow/18285146.cms?curpg=2

Jet deal may not automatically increase Etihad’s reach into Indian cities

NEW DELHI: The deal between Jet AirwaysBSE 1.91 % and Gulf carrier Etihad Airways is unlikely to bring immediate benefits for the foreign partner after it picks up a minority stake or 24% equity in the Indian airline, say people in the government and the industry.

It will only be in due course of time, say aviationanalysts, that the strategic tie-up will help increase Indian traffic feed to Abu Dhabi as well as raise the number of foreign passengers coming into India for onward travel to nearby countries.

"As of financial year 2011, 2.68 million Indian fliers chose Emirates (Dubai) to fly abroad, 0.85 million travelled with Qatar Airways (through Doha) and 0.41 million flew Etihad. Basically, this is the gap that Etihad would like to fill up in due course of time as a combine with Jet," consultancy firm Auctus Advisors MD Manish Chheda said.

This would also help Jet Airways bring foreign passengers to India and take them to other countries, he added.

The 24% fresh equity stake sale, which Etihad is said to be buying in the Naresh-Goyal owned airline for around 1,600 crore, does not give it voting rights to veto company resolutions, which an investor gets only on picking up 26% stake. It would only give the Abu Dhabi carrier board representation.

In the backdrop of a meeting between the Etihad management and civil aviation minister Ajit Singh, the government will make it clear that the deal doesn't give any automatic benefits to the Gulf carrier, not even code-sharing for that matter.

"It changes nothing in our eyes. The Jet-Etihad combined entity will operate as an India registered or domestic airline, while Etihad will be allowed 11 ports of call in India with as many seats per week as the Air Services Agreement (ASA) permits between India and the UAE," a senior government official from the ministry of civil aviation told ET.

The airlines will have to take government permission for adding more Indian routes, like they always did, the official added. "The same holds for Jet Airways for increasing frequencies to Abu Dhabi."
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/-jet-deal-may-not-automatically-increase-etihads-reach-into-indian-cities/articleshow/18269854.cms

Etihad Airways may get 50 per cent board representation in Jet Airways

NEW DELHI: Etihad Airways, which is widely expected to buy up to 24% stake in Jet Airways, could get equal board representation in the Indian company, people close to the development said. The Abu Dhabi-based airline is also expected to step up its stake in Jet in phases to 49%, though this could happen over a number of years, they added. 

The two sides are believed to be very close to striking an agreement after months of intensive negotiations. On Thursday, Jet AirwaysBSE 2.02 % promoterNaresh Goyal and Etihad Airways CEO James Hoganmet Civil Aviation Minister Ajit Singh and discussed their plans for an alliance. Hogan also met Commerce Minister Anand Sharma. 

Though the airline management refrained from commenting about the deal after meeting the minister, government officials told ET that the deal could be announced within a week. 

"Etihad will get 50% representation on Jet's board immediately after buying up to 24% equity stake. The Jet Airways CEO will also be jointly decided, even though Jet is the majority shareholder," an official said. 

Etihad is expected to invest $300 million in Jet for the 24% stake, valuing the Indian carrier at $1.2 billion, or 6,380 crore, which is 19% higher than the current market cap of 5,371 crore. 

Jet shares rose as much as 3.4% on Thursday to 614.80. 

The stock has nearly doubled in the last three months on speculation about the stake sale. If the deal fructifies, Jet Airways will be the first beneficiary of the new FDI rules cleared by the government last year. The deal will come exactly 17 years after Goyal bought back the 40% owned by Gulf carriers in his airline when FDI in aviation was disallowed. 

"At a later stage, Etihad's stake could be increased to 49% by which time the delisting of Jet Airways may be an option as the promoters may find a private structure to be more suitable," Kapil Kaul, CEO, CAPA (India and Middle-East), said. 

Etihad met government officials to ensure that its investment in India will not hit regulatory hurdles, and to seek clarity on the issue of protection of rights of minority shareholders. Under Indian company laws, investors get some control over a company only with 26% equity, though some promoters and management have been known to give powers to investors holding a lower stake.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/etihad-airways-may-get-50-per-cent-board-representation-in-jet-airways/articleshow/18280373.cms

Paramount Airways plans to restart by May

With Rs.1,600 crore in its kitty, Madurai-based Paramount Airways is planning to restart operations by May with six ATR-72-600 aircraft, a top official of the now defunct airline told The Hindu .

The erstwhile all-business-class airline operating five Embraer aircraft had its last flight in August 2010 when the Director General of Civil Aviation (DGCA) deregistered its aircraft following a dispute with its aircraft lessors over non-payment of lease rentals following engine malfunction.

Compensation

In November, 2012, the airline was awarded a compensation of Rs.1,600 crore through international arbitration, and, in the same month, the DGCA renewed its operating licence, paving the way for starting afresh.

“The money has now come into our account, and we are finalising plans to restart operations in April. The DGCA has given its go-ahead. There was no liability on the company as the airline was making profit for three years prior to closing down,” the Paramount Airlines official said asking not to be named.

Talks are on to procure the ATR aircraft on lease, and, going forward, the airline may induct Airbus into its fleet. The ATRs with 72 seats are next generation aircraft which are much more comfortable and come with fuel efficiency.

Recruitment

The airline has also started the process to recruit personnel, including pilots, cabin crew, engineers and ground staff.

The airline plans to restart with staff strength of 900 people. The core team that was earlier running the airline is already there, and the rest would be hired in the coming weeks. Several old employees have been called back.

Paramount Airways wants to initially concentrate on the southern states where it had a stronghold and enjoyed customer loyalty. Apart from reopening its earlier bases, Paramount is planning to fly to Mysore, Tuticorin and Puducherry to name a few new destinations.

The official said now Paramount was the most profitable airline in India despite operating no flight for 30 months.

The Rs.1,600 crore that has come in by way of compensation gives the airline much financial muscle power to scale up in coming years.

Contrary to speculations, Paramount was not looking for investment from any foreign airline as there had been no requirement of funds, the official said.

Wants to initially concentrate on the southern states where it enjoys customer loyalty

http://www.thehindu.com/todays-paper/tp-business/paramount-airways-plans-to-restart-by-may/article4367329.ece

Jet-Etihad deal gets ministerial push

Abu Dhabi-based Etihad Airways moved a step closer to picking up a 24 per cent stake in domestic carrier Jet Airways with the top officials of both airlines meeting Civil Aviation Minister Ajit Singh and the Commerce and Industry Minister Anand Sharma in anticipation of a deal being clinched soon.

It is learnt that both Etihad and Jet are likely to apply to the Foreign Investment Promotion Board (FIPB) for seeking clearance for Etihad’s proposal to pick up 24 per cent stake in Jet Airways. The Etihad delegation was led by its CEO James Hogan, and Jet Airways promoter Naresh Goyal represented the domestic carrier.

Talking to reporters after meeting the officials of Etihad and Jet, Civil Aviation Minister Ajit Singh said the Etihad delegation was here today [Thursday] and both parties had been in the consultation process for quite some time. “They are discussing details with Jet Airways. Any foreign airline investing money has a number of concerns — what’s the policy, what’s the cost structure so that you make money out of that. They have been discussing this deal for over a month,” he said.

Anand Sharma briefed

Mr. Singh said whatever the deal was struck between the two entities, they should be within the regulatory framework. “Once they sign the agreement, they will go through the regulatory requirements. Unless the deal is signed and approved, we can’ say it is done. But I don’t see any problem,” he added.

The officials of the two airlines also met Union Commerce and Industry Minister Anand Sharma and briefed him on their plans following the government’s decision last September to allow foreign carriers to invest in their Indian counterparts.

“We have put in place an enabling policy, and any investment under the policy is welcome,” Mr. Sharma told the delegation. Mr. Sharma would be visiting Abu Dhabi during mid-February to attend the first meeting of the India-UAE high-level task force on investment.

Speculation had been in the air for quite a while on Etihad trying to secure a stake in Jet Airways. A meeting of the Jet Airways’ board is slated in Mumbai on Friday to take a formal decision on the issue. Etihad is likely to buy 24 per cent equity in Jet Airways valued at about Rs.1,800 crore. If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline.

Aviation experts said apart from expanding the equity base of the Indian carrier, a major reason for Mr. Goyal to dilute part of his shareholding in Jet from 80 per cent had been the FIPB order to bring it down to regulatory levels.

Jet Airways has an equity base of 8.63 crore shares, valued at Rs.5,370 crore. The shares of Jet Airways closed at Rs.622.10 on the BSE on Thursday.

http://www.thehindu.com/todays-paper/tp-business/jetetihad-deal-gets-ministerial-push/article4367334.ece

Airlines to pay for deficient service

The district consumer disputes redressal forum here has asked Indian Airlines Limited to refund the fare of a ticket worth Rs. 15,260 and pay a fine of Rs. 5000 to a teacher in a city college, after she won a case against the airlines for deficient service.

M. S. Kichlu, a Reader in the department of sociology in Madura College, here had purchased tickets in Indian Airlines for a to and fro journey to Delhi. She travelled to Delhi on February 15, 2007 and was supposed to travel back to Madurai on February 22, 2007 with a confirmed return ticket she had purchased for the 6 p.m. flight. Because her work did not get over on time, she contacted the airlines to transfer the confirmation of the ticket to the flight that was to leave Delhi at 8.10 p.m.

After initially agreeing to the request the airlines declined to oblige her after she reached the airport. “I had to buy a new ticket at a cost of Rs 15,265 for the 8.10 p.m. flight. The airlines asked me to take a flight to Madurai on February 24, 2007 if I had to travel with my confirmed ticket”, she said while seeking compensation.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/airlines-to-pay-for-deficient-service/article4367667.ece

Etihad, Jet closer to completing deal

Team from Abu Dhabi-based airline meets Ministers

New Delhi, Jan. 31:  

After weeks of hype, the first confirmation of Jet Airways selling a stake to the Abu Dhabi national carrier Etihad came on Thursday. An Etihad delegation, which included Chief Executive Officer James Hogan, and promoter of Jet Airways Naresh Goyal called on Civil Aviation Minister Ajit Singh and thereafter met with Commerce and Industry Minister Anand Sharma.

On Friday, the delegation is expected to meet Finance Minister P. Chidambaram. The deal will need the nod of the Foreign Investment Promotion Board, which is under the Finance Ministry.

May acquire 24% stake

While the contours of the deal have not yet been made public, the Centre for Asia Pacific Aviation, in a report released on Thursday, said Etihad is expected to acquire a 24 per cent stake in Jet Airways which could result in an inflow of up to $330 million into the airline. The report puts the valuation of Jet Airways at $1.3-1.4 billion (about Rs 7,000 crore).

“The investment is expected to take place through the issue of preferential shares and warrants. At a later stage, Etihad’s stake could be increased to 49 per cent at which time the de-listing of Jet Airways may be an option as the promoters may find a private structure to be more suitable,” the report adds.

Earlier, speaking to newspersons after the meeting with Eithad, Ajit Singh said: “Jet and Etihad have been in consultations for quite some time now. They are discussing the details. All that the Government is doing is to make sure the agreement is is within the regulatory framework.”

Asked when the deal is likely to be signed, the Minister said “that is up to them”. The Minister also declined to talk about the value of the deal or what percentage of stake Jet is likely to sell.

‘Enabling’ policy

The Commerce Minister assured the delegation that the foreign direct investment policy in civil aviation was an “enabling” one. Incidentally, Sharma is scheduled to visit Abu Dhabi for two days beginning February 17. While the agenda for his visit has not been finalised, it is expected to give a positive push to the proposed deal between Jet and Etihad.

Sources indicate that after the deal is through, Jet Airways may set up a hub in Abu Dhabi and route flights to the US from there. They say that Etihad is likely to seek and get an equal representation on the reconstituted board. An Indian is expected to be appointed CEO of the airline.

The high profile meetings with government officials come a day before the Jet board meets in Mumbai to consider the third quarter results. Jet Airways’ stock closed 4.34 per cent higher at Rs 622.10 on the Bombay Stock Exchange on Thursday.

http://www.thehindubusinessline.com/todays-paper/etihad-jet-closer-to-completing-deal/article4366347.ece

IndiGo adds capacity, drops fare on Dubai route

Other airlines may follow suit

Its raining discounts on the busy Mumbai-Dubai route. Low cost airline IndiGo is offering return fares which are priced  20-25% lower than rivals kick starting a fare war on the route.

Mumbai-Dubai is the busiest international route from India with 91 weekly flights  between the two cities and around 21, 000 seats on offer. It was the fourth busiest route from Dubai (behind London, Doha and Kuwait) in 2011. Delhi stood at ninth place.

Currently Emirates offers the highest capacity with 35 weekly flights and 11819 seats on Mumbai-Dubai route.  Jet has four daily flights while IndiGo and SpiceJet have a flight each.  IndiGo is adding its second daily flight on the route from March and has dropped  fares is about 20-25% less than rivals.

IndiGo's competitors like Emirates and Jet Airways are offering return fares around Rs 17,500-18,000.  In addition Jet is selling return tickets at around Rs 16,000 through certain travel agents and that fare is not available for sale with all agents. It is likely to lower its fares further  to compete with IndiGo on this route. It is also offering discounted fare for one way travel to attract labour traffic.

"There is round the year passenger demand for Dubai. People are looking for shorter and cheaper holidays and Dubai and Bangkok are amongst top preferences. Air fares to Dubai are also less while tickets to Singapore and Hong Kong cost around Rs 30,000 or more,'' said Tina Kanuga, Director, Bathija Travels. She added that the competition on the route is much more intense with thirteen daily flights at present. "IndiGo is offering fares around Rs 14,000 and this will induce other airlines to reduce fares." 

According to Dubai Airports, India is  Dubai International’s single biggest country destination in terms of passenger numbers. "The passenger traffic between Dubai and India continued to show robust growth during the past year, with total passenger traffic rising 7.4% year on year to 7.34 million passengers in 2012. Traffic was bolstered by the introduction of SpiceJet which added new flights from Delhi, Mumbai, Kochi and Ahmedabad to Dubai. Air India Express, Indigo and Emirates also added new flights and destinations during the year, Dubai airports said.

http://www.business-standard.com/india/news/indigo-adds-capacity-drops-faredubai-route/204697/on

Minister rebuffs AI concerns on Jet-Etihad deal

Air India’s concerns over the Jet-Etihad deal have found no favour with the civil aviation minister, Ajit Singh.

In a letter to Civil Aviation Secretary K N Srivastava, Air India Chairman and Managing Director Rohit Nandan had raised concerns over the potential threat to the airline from the Jet-Etihad deal. When contacted, Srivastava declined to comment.

Naresh Goyal-promoted Jet Airways is expected to soon announce a deal of 24 per cent stake sale at over $300 million to Abu Dhabi-based Etihad Airways. The airline’s senior management will meet Commerce Minister Anand Sharma and Singh tomorrow morning.

In the letter, written in December 2012, Air India had expressed concerns that allowing investments by foreign airlines would hurt the interests of domestic airlines and prevent Indian airports from developing into international hubs. It added that Jet’s flights to Abu Dhabi could be used to carry passengers from India headed for the US and Europe, two government officials said on condition on anonymity.

Singh told Business Standard, “Jet Airways is an Indian carrier. It can fly from any place in India to Abu Dhabi. We cannot control the city pairs or restrict its number of flights.”

Curiously, the minister’s views are in variance with that of the officials in his ministry. According to sources, there has been a buzz among ministry officials that Air India’s interests should be taken into consideration, even if the Jet-Etihad deal goes through.

According to Singh, the decision to allow foreign direct investment in aviation has been taken in overall interest of the sector and not for a particular airline. So, there is no reason for any airline to complain about it now, he said, adding that it will lead to betterment and growth in the sector and management expertise. Once the skies are open, airlines should be ready to face competition, Singh added.

Currently, Jet Airways flies from two points in India and Etihad flies out from 10 points in India to Abu Dhabi. Etihad Airways has already utilised over 85 per cent of its bilateral rights and the civil aviation ministry is not in favour of granting further bilaterals to West Asia carriers till the Indian carriers exhaust bilaterals from their side.

Etihad has minuscule market share compared to other big Gulf carriers such as Emirates and Qatar, which rule the West Asian market. It has a fleet of 67 aircraft, which is nearly a third of Emirates and half of Qatar. In India, too, with less than 2 per cent of the international market, it is a minor player compared to Emirates (over 13 per cent share) and Qatar (over 5 per cent). Etihad has 52 weekly flights to and from India, which is way below Emirates (185 flights) and Qatar (95 flights).

Experts believe that the Jet-Etihad deal would help Etihad to bypass the limitation of bilaterals. Moreover, Jet needs money to fund expansion and cut debt after several years of making losses.

Etihad can feed in passengers seamlessly from Abu Dhabi across the country by using Jet Airways’ wide coverage of over 53 cities in India. Similarly, Jet could bring in passengers from Indian cities to Abu Dhabi, from where they could travel to any destination in West Asia and Africa where Etihad has excellent connectivity.

Jet Airways can also leverage Etihad’s strong presence in Europe by bringing in Indian passengers through Abu Dhabi. Jet currently operates only to Brussels, Milan and London in Europe on its own and connects 14 cities through code-share agreements with Brussels Airlines and Thalys. On the other hand, Etihad has a huge network in Europe.

It directly flies to over 17 destinations and through its elaborate code-share agreements with around 13 airlines, offers seamless connectivity to over 88 cities.

The India-North America market is also one of the largest and most lucrative in terms of business. Jet Airways currently flies only to Newark and Toronto and through its code-share with United and Air Canada, offers connectivity to all key markets in North America. But Etihad can provide an alternative to Indian flyers. It can fly seamlessly from Abu Dhabi to Chicago, New York and Washington, apart from Toronto.

http://business-standard.com/india/news/minister-rebuffs-ai-concernsjet-etihad-deal/500574/

Jet seals wage pact with ground staff

Jet Airways, facing some headwinds on the labour front, has given a wage hike of up to Rs.18,000 to its around 7,500 ground staff, sources said on Wednesday.

The decision comes amidst reports of its pilots meeting in Delhi on Friday to discuss wage hike and long-pending arrear issues with the management.

The Naresh Goyal-promoted airline, which is on the verge of closing a stake sale deal with Etihad, had already signed a tripartite agreement with one of its employees unions, the All India Jet Airways Officers Association, they said.

“The salary hike, which is effective retrospectively from April, 2011, is in the range of Rs.10,500-18,000 a month across categories,” a union leader told PTI here.

The wage agreement is expected to benefit around 7,500 ground employees that include reservation staff, cargo, cabin and ground service.

The settlement with the management was reached after intense negotiations over 20 months, sources said, adding that, “it will be effective till March next year (2014).”

http://www.thehindu.com/todays-paper/tp-business/jet-seals-wage-pact-with-ground-staff/article4363234.ece

AI to hive off ground handling, MRO units

Air India has announced plans to hive off its ground handling and maintenance, repair and overhaul (MRO) subsidiaries with effect from February 1 to trim its workforce and to run these units as separate companies.

The ground handling units, Air India Air Transport Services Limited, would undertake ground handling activities and it would also provide service to other carriers.

The MRO subsidiary, Air India Engineering Services Limited, would undertake engineering maintenance, repair and overhaul activities for Air India’s fleet as well as for other carriers. More than 14,000 employees would be shifted to these two companies.

http://www.thehindu.com/todays-paper/tp-business/ai-to-hive-off-ground-handling-mro-units/article4363228.ece

Complete airport work by February 15, says official

The State government has set a target to complete the road connecting State secretariat and Biju Patnaik Airport by February 15.

Issues relating to completion of the road leading to the airport, internal road to old terminal building, construction of pavements, shifting of electric poles, lighting of roads towards airport, installation of transformer and sub-station and laying of underground pipe for 24 hours water supply was discussed in detail at a high-level meeting chaired by Chief Secretary B. K. Patnaik here. According to government sources, executing agencies have been asked to complete all infrastructural projects relating to new terminal buildings within a month.

At the meeting, steps taken for checking bird and dog menace, disposal of garbage, deployment of traffic police and shifting of slaughter houses from the vicinity of airport were reviewed.

Special secretary of General Administration department Niten Chandra, Tourism Secretary Ashok Kumar Tripathy, Secretary Works S. K. Ray, and Director of Biju Patnaik Airport S. Kumar attended the meeting.

http://www.thehindu.com/todays-paper/tp-national/tp-otherstates/complete-airport-work-by-february-15-says-official/article4363934.ece

Airport to be made an aviation hub

Immense scope in maintenance, refuelling areas: Venugopal

The Union Ministry of Civil Aviation is working towards making the Thiruvananthapuram international airport an aviation hub to take advantage of the immense opportunities in aircraft maintenance and refuelling, Union Minister of State for Civil Aviation K.C. Venugopal has said.

He was addressing a press conference here on Wednesday after handing over the certificate of the Director General of Civil Aviation (DGCA) to Air India Chief of Engineering H.R. Jagannath to commence the ‘C’ check of aircraft at the Maintenance, Repair, and Overhaul (MRO) facility of Air India Charters Limited (AICL), a fully-owned subsidiary of the Air India, in the vicinity of the airport here.

Describing it as a ‘milestone’ in the aviation history as the capital had become the fourth city in the country to be on the MRO map, Mr. Venugopal said the MRO would soon start the groundwork to get the approval of the European Aviation Safety Agency (EASA) and later the Federal Aviation Administration.

To a query, Mr. Venugopal said his Ministry was yet to receive the report on the proposed Air Kerala mooted by the State government. The Ministry was for further development of the Thiruvananthapuram airport and land acquisition had to be taken up by the State government. On the proposed Aranmula airport, he said it was coming up in the private sector and the Ministry had no role in it. Mr. Venugopal said all formalities to provide tourist visa on arrival at the airport had been completed. It would be launched soon.

The airline had been asked to make reservation foolproof in the wake of recent complaints. The government had already given Rs.2,000 crore to Air India as part of the Rs.6,000-crore turnaround package and the remaining amount would be given soon. The Air India Express (AIE) had invited applications for the recruitment of 40 pilots, he said.

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·  Tourist visa on arrival soon at airport

·  Further development of airport proposed

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/airport-to-be-made-an-aviation-hub/article4363997.ece