Saturday 30 March 2013

Boeing, BEL expand partnership in India

US-based aerospace and defence major Boeing and defence PSU Bharat Electronics Limited (BEL) are expanding their partnership through a follow-on contract involving the manufacture of subassemblies for the Boeing F/A-18E/F Super Hornet fighter jet. This contract, for Super Hornet subassemblies, expands work that Boeing awarded BEL in 2011.
 BEL delivers components for the Super Hornet and P-8I maritime reconnaissance aircraft; and is a partner with Boeing at the Analysis & Experimentation Centre in Bangalore that opened in 2009. "Boeing's relationship with BEL demonstrates our commitment to work with the Indian industry to foster global growth and market access," said Dennis Swanson, vice president of International Business Development for Boeing Defense, Space & Security in India.
 Through the new contract, BEL will produce Super Hornet subassemblies including the ground power panel, 'helmet vehicle interface stowage' and 'switch assembly' and 'cockpit console panels'. For the F/A-18, BEL also produces a stowage panel for the 'joint helmet mounted cueing system' connector cable and an avionics cooling system fan test switch panel with a 'night vision imaging system'-compatible floodlight assembly.
 For the P-8I it provides the Identification Friend or Foe interrogators and Data Link II communications systems.
 "BEL believes this cooperation with Boeing is a great opportunity and is ever willing to take it to greater heights," said H.N. Ramakrishna, BEL's director of marketing.
 BEL is engaged in the design, development and manufacture of a wide range of command, control, communications, computing and Intelligence solutions; military communication systems; radars and sonars; as well as naval and electronic warfare systems for defence and security applications.
http://www.business-standard.com/article/companies/boeing-bel-expand-partnership-in-india-113032800514_1.html

 

Dreamliner Flaw Escaping FAA No Surprise in Crash Data

Failures to spot and anticipate safety flaws during certification of new aircraft have been linked to 70 percent of U.S. airline-crash deaths in the past 20 years, according to data compiled by Bloomberg.
Boeing Co. (BA)’s tests concluding the lithium-ion batteries in its 787 Dreamliner couldn’t catch fire are renewing questions about whether complexity of new aircraft can outpace manufacturers’ and regulators’ ability to spot shortcomings during design and certification.
 “We don’t know what we don’t know,” Bernard Loeb, who retired as head of the U.S. National Transportation Safety Board’s aviation division in 2001, said in an interview. “We’re still highly dependent on the knowledge and capability of the human being, and human beings are fallible.”
Improved certification standards have been one reason there hasn’t been a fatal U.S. crash involving a major airline since 2001, NTSB Chairman Debbie Hersman said in an interview.
“But there are occasions where those assumptions are incorrect or not conservative enough,” she said. Hersman declined to comment on the current investigation. In the absence of regulations for planes and components using new technology, the U.S. Federal Aviation Administration creates rules known as “special conditions,” as it did in certifying the Dreamliner’s batteries in 2007.
That approval, which the NTSB will examine at a hearing next month, illustrates the need to modernize standards for approving new aircraft, Kevin Hiatt, president of the Alexandria, Virginia-based non-profit Flight Safety Foundation, said in an interview.
Deadliest Crashes
The manufacturer is confident in its 787 battery fix proposal and expects the plane to resume flights soon, Boeing Chairman and Chief Executive Officer Jim McNerney said at a conference in Washington today.
Boeing plans to conduct a flight test with the revamped batteryBoeing shares fell 4.3 percent in two weeks after the Dreamliner was grounded, closing Jan. 29 at $73.65, the low for this year. They closed March 26 at $86.62, the highest since May 2008 and 17.6 percent above the recent low. At 1:20 p.m., shares were at $85.50, down 70 cents on the day.
The rise included increases of 2.1 percent on March 12, when Boeing’s plan to redesign the batteries was approved by the FAA, and March 15, the day the company said it expected the 787 back in the air within weeks.
The history of airline accidents since 1993 is dominated by cases in which manufacturers and aviation regulators didn’t foresee how a plane might fail, according to NTSB accident findings and its 2006 report on the issue.
Most Deadly
Five such U.S. crashes occurred in that period, according to NTSB findings, including the three most deadly of the era: USAir Flight 427 on Sept. 8, 1994, killing 132; Trans World Airlines Inc. (TWAIQ) Flight 800 on July 17, 1996, killing 230; and American Airlines Inc. (AMR1) Flight 587 on Nov. 12, 2001, killing 265 people.
Out of 1,123 deaths in the past 20 years on U.S. carriers investigated by the NTSB, 783 occurred in those five accidents, according to data compiled by Bloomberg.
Investigators in those cases discovered a hidden flaw in a hydraulic device that could send a plane plunging out of control, explosive fuel tanks that were exposed to sparking electrical equipment during routine operation, and vulnerability to icing in a plane approved to fly in weather conditions conducive to ice formation.
Rudder Malfunction
For almost two years after the crash near Pittsburgh of a Boeing 737-300 operated by USAir, now a part of US Airways Group Inc. (LCC), investigators couldn’t explain why a functioning plane dove nose-first into the ground.
Only then did they discover a hydraulic device that moved the plane’s rudder, a vertical panel on the tail, could swing it in the direction opposite from what pilots intended. In the accident, the rudder had moved unexpectedly, making the plane uncontrollable, the NTSB ruled in 1999.
The device was certified in the 1960s as failsafe.
“We’ve seen it time and time again,” Tom Haueter, who served as NTSB’s chief accident investigator before retiring last year, said in an interview. “Certification has been a big issue in a number of accidents.”
The FAA, which announced a review of the 787’s design on Jan. 11, “takes very seriously” its responsibility for overseeing new aircraft, the agency said in an e-mailed statement.
 “Some have asked the question whether the FAA has the expertise needed to oversee the Dreamliner’s cutting edge technology,” the agency said. “The answer is yes, we have the ability to establish rigorous safety standards and to make sure that aircraft meet them.” More recently, the NTSB blamed an April 2, 2011, crash of a General Dynamics Corp. (GD)’s Gulfstream business jet on miscalculations of takeoff speeds during certification flights. The crash killed four Gulfstream employees.
Airbus SAS last year was forced to make repairs that have cost $319 million (250 million euros) to its latest model, the double-decker A380, because the wings are prone to cracking, a condition missed during certification tests.
The FAA and aviation authorities in other nations can’t match the engineering resources at companies like Boeing and Airbus, Haueter said. U.S. regulators must rely on Boeing employees for much of the certification testing, he said.
‘Assumptions Kill’
Boeing’s engineers signed off on most elements of the Dreamliner battery made by Kyoto-based GS Yuasa Corp (6674)., leaving final approval to the agency, according to the NTSB. No matter how honest those engineers are, they’re subject to subtle conflicts of interest that could cloud their judgment, Haueter said.
“It’s the assumptions that kill you,” Haueter said. “If things don’t work out the way you planned, things can go very bad, very fast.”
Boeing’s tests and analysis of the 787 batteries, outlined March 7 in NTSB preliminary reports, concluded the odds of a battery catching fire were one in a billion hours of flight, making it essentially impossible.
The 787’s batteries are mostly used for ground operations, such as starting auxiliary power units and providing brake power when the plane is in tow.
A Japan Airlines (9201) 787’s battery caught fire Jan. 7 in Boston after the plane had been in commercial service less than 52,000 hours. An internal short-circuit triggered the fire, according to preliminary findings.
Boeing Confident
When a battery on an All Nippon (9202) flight in Japan overheated and smoked Jan. 16, the FAA grounded the plane. Customers of the 49 Dreamliner in service, including United Continental Holdings Inc., (UAL) Japan Airlines Co. and All Nippon Airways Co., were forced to juggle schedules and shift planes.
Boeing, which has a backlog of more than 800 Dreamliners with a list price starting at about $207 million, has halted deliveries until commercial service resumes.
The FAA gave initial approval for Boeing’s proposed redesign of the battery system March 12, and the Chicago-based company has said it’s confident tests needed to get the plane back in the air will be completed within weeks.
So far, neither the NTSB nor the FAA has said whether the batteries failed the nine safety conditions imposed on them in 2007.
Among the conditions was an assurance that the batteries must never have “self-sustaining, uncontrolled increases in temperature or pressure.” The battery in Boston had “thermal runaway,” a condition in which a cell increasingly overheats, and that spread to other cells, Hersman said Jan. 24.
Improving Safety
Boeing’s 787 chief project engineer, Mike Sinnett, said March 14 that damage outside the batteries in both incidents was limited and “the airplane responded exactly as we had designed and intended.”
Boeing declined to discuss the battery’s certification because it’s part of the NTSB review, spokesman Miles Kotay said in an e-mail. Certification works well, as evidenced by the lack of airline accidents in the past decade, he said.
The aircraft industry and the FAA have learned from earlier accidents, helping each generation of planes to be safer than the last, said John Cox, a former pilot who participated in the Pittsburgh accident investigation as a union representative. In response to NTSB recommendations and its own internal review of certification, the FAA made numerous improvements, such as focusing resources in certification on “safety critical” systems, it said in correspondence with the safety board.
http://www.bloomberg.com/news/2013-03-28/dreamliner-flaw-escaping-faa-no-surprise-in-certification.html

Jet Airways’ expansion plans in Europe put on hold till Etihad deal

MUMBAI: Jet Airways, which is in talks for a strategic-cum-equity partnership with Abu Dhabi-based Etihad Airways, has put on hold its plan to expand its network in Europe through Munich airport, till its deal fructifies with the Middle-eastern carrier. In the recent winter schedule (from October 28), India's secondlargest airline in terms of market share was granted permission from the ministry of civil aviation to start 35 new flights to Munich. To facilitate its expansion of routes into European cities, Jet was in talks with German carrier Lufthansa for membership in Star Alliance — one of the largest global airline grouping — along with a hub at Munich airport.
 The changed scenario, after the ministry approved foreign carriers to invest in Indian airline firms, has now forced Jet to change its stance. It has adopted a 'go slow' approach in actively pursuing Star Alliance membership and also is in the process of reworking its European expansion plans.
 Jet confirmed that it has put on hold its plans to expand in Munich till such time as the deal with Etihad is in the works.
 "It's correct that we have put on hold our expansion in Munich. But our overall expansion in Europe is not on hold till the deal with Etihad is finalised. We are still finalising our expansion plans in Europe and cannot discuss them at this stage," said Jet Airways CEO Nikos Kardassis.
 "Jet's move is in line with continuous string of positive news coming out of the ongoing discussions between Jet and Etihad. If the deal goes through, there will be a significant reworking of Jet's and Etihad's routes catering to the Indian traffic. Brussels' and Munich's loss will be Abu Dhabi's gain," says Amber Dubey, partner and head, aviation at KPMG.
 Jet has sought additional flights to Abu Dhabi and other South East Asian cities from the ministry for the summer schedule that commences from March and in a changed rule the ministry now grants flying rights for three schedules in advance. Officials from Munich Airport that were in India last fortnight to discuss with Indian carriers plans to fly into Germany said they await Jet's response on the commencement of flights.
 Confirming this, Christina Werkstetter, director, traffic development business division aviation, Munich Airport, told ET: "Currently, the move is put on hold by Jet. We are in discussions, but in the wake of new developments (deal with Etihad) we will have to see how things unfold. We are watching the deal very closely and we have to be patient."
"We could not manage to attract Air India," rued Werkstetter adding that India is a strong market and they are trying to attract Indian carriers to add more flights to Germany. But the German airport official did not rule out an alliance even if Jet takes on board Etihad as a partner.
http://articles.economictimes.indiatimes.com/2013-03-29/news/38125670_1_etihad-airways-jet-and-etihad-jet-airways
 

Air India likely to charge for meals

New Delhi: If you are travelling on economy class in a domestic flight on national carrier Air India, chances are that you may soon no longer be served a full meal within the ticket price but only snacks instead. If you want a full meal, you may have to pay extra. This is one of the recommendations of a government-appointed committee on cost-cutting for Air India that submitted its report to civil aviation minister Ajit Singh on Thursday.
The government is yet to take a final decision.
But if such a move goes through, it will position Air India somewhere between a low-cost carrier and a full-service carrier, sources said, adding that ticket-fares offered by Air India are often lower than even the low cost carriers which charge passengers on board for food. The Centre is expected to discuss each recommendation before a final decision is taken.
Another recommendation is to ask passengers to pay for preferential seats with more leg-room in the economy class. The committee has also proposed that the levy for upgradation of seats on flights be well-publicised to generate more revenue.
Even standardising the levy on passengers for excess baggage is on cards. While passengers have to pay for excess baggage even now, the extra amount to be paid differs as per the destination.
The committee has sub mitted 46 recommendations in all, which it estimates will help Air India to save about Rs 3,240 crore per year. It has also been recommended that a technical efficiency audit for manpower rationalisation be conducted.
Sources said that this may not result in job-cuts but could rather lead to relocation of staff from one department to the other.
Another recommendation of the panel is to offload some of the routes of Air India to its low-cost carrier Air India Express which can then operate smaller aircraft on these routes on the low-cost carrier model.
http://www.deccanchronicle.com/130329/news-businesstech/article/air-india-likely-charge-meals
 

American Airlines-US Airways merger gets court approval

A judge on Wednesday approved the merger of American Airlines and US Airways.
US bankruptcy judge Sean Lane in Manhattan said the merger was a “terrific result.” The $11-billion mega deal will form the world’s largest carrier and operate under the American Airlines brand. The shareholders of American Airlines, which has been under bankruptcy protection, will own 72 per cent in the joint company, while US Airways will hold 28 per cent.Judge Lane rejected a $20-million severancedeal for American Airlines chief executive Tom Horton. The US government’s bankruptcy watchdog, the US Trustee, opposed the payout calling it a “golden parachute.” The new airline will operate 1,500 aircraft, with 600 more on order, and have an annual turnover of almost $39 billion.
It will offer more than 6,700 daily flights to 336 destinations in 56 countries and maintain all hubs now served by either carrier, while being a member of the Oneworld alliance.
“The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,” said Doug Parker, the outgoing chief executive of US Airways, in February when the deal was announced.
American Airlines parent company AMR Corp declared bankruptcy in November 2011, and has kept operating under Chapter 11 bankruptcy protection from creditors while it reorganised its debt.
US Airways had been searching for a partner since early 2012, after many rivals merged to lower costs through sharing maintenance personnel and booking systems, among other measures.
The airline industry has seen a spate of mergers since the 9/11 attacks of 2001 battered the sector and carriers were also hit by fluctuating fuel prices and the rise of budget airlines.
In 2012, Delta Air Lines swallowed the smaller Northwest Airlines, while United Airlines joined forces with Continental.
http://www.thehindubusinessline.com/industry-and-economy/logistics/american-airlinesus-airways-merger-gets-court-approval/article4557375.ece

Kolkata airport Metro on slow track; final plan yet to be ready

Construction of the airport leg of the Kolkata Metro rail project is yet to begin due to the non-availability of clearances and bureaucratic hurdles.
 While a revised underground route plan on the stretch (7 km) was approved after much dilly-dallying by the Airports Authority of India (AAI) last year, a final plan for construction is yet to be chalked out.
The 32-km Metro line will run along the eastern fringes of the city to connect the airport via Salt Lake, the IT city.
 To be operated by Metro Railway, Kolkata – a wing of Indian Railways – the Rs 4,260-crore project was sanctioned in 2010-11, and the 25-km elevated stretch of the line is under construction.
“Some areas of the AAI are yet to be handed over to the Metro Railway authorities to start work. A plan of work has not been finalised so far in this regard,” a Railway official involved in the project told Business Line. According to him, these formalities may take more time, leading to a further delay . A survey for the underground work near the airport is yet to be conducted, he added.
 Commenting on the Budget allocation for the five Metro extension projects this fiscal (Rs 629 crore) that are being carried out in Kolkata, the official said the airport Metro project does not face any fund constraints. “Issues over Budgetary allocation and available funds for these projects are blown out of proportion. Once construction begins, lack of fund is unlikely to hinder the project,” he said.
 Meanwhile, another 17-km Metro project, connecting the Central Business District with Joka (near IIM Calcutta), is awaiting approval from the Union Finance and Defence Ministries.
According to the Railway official, even if the Rs 2,619-crore project witnesses good progress on the first leg from Joka, the Union Government’s reluctance towards the project is putting it on a slow track
http://www.thehindubusinessline.com/industry-and-economy/logistics/kolkata-airport-metro-on-slow-track-final-plan-yet-to-be-ready/article4558785.ece

AI explores Boeing 777 seat reconfiguration

As part of its reconfiguration exercise, Air India is evaluating a plan to drop first-class seats in its long-haul Boeing 777 planes. The airline flies these wide-body planes to the US, Europe, China, Japan, Korea and Saudi Arabia.
 It has 12 Boeing 777-300 ERs and eight 777-200 LRs. For some time, the airline has been trying to sell or lease five of the latter model of aircraft but has found no takers. This is because the aircraft’s current seat configuration is not ideal for medium-haul routes and makes those commercially unviable to operate.
 Air India’s Boeing 777-200 LRs have 238 seats, including eight first-class ones (8+35+195), while the 300-ERs have 342 seats, four of those first-class (4+35+303).
 Another reason for the airline to consider reconfiguration is the poor first-class occupancy.
 “The occupancy in the first-class seats is 25-30 per cent — often after including ministers travelling in those and passenger upgrades, which generate no revenue for the airline. The idea is to drop first-class seats and add economy-class ones. We can then deploy these planes on high-density routes like those to Saudi Arabia which have good demand,” an Air India source said.
 The airline continues to make losses on a majority of its international routes. Overall, it expects to post a modest operating profit of Rs 65 crore in 2012-13, banking on the Boeing 787 Dreamliners for its turnaround. The 787s, which have been grounded since January following battery defects, are to replace the 777s on its Europe and Far-East routes. These will also be used on the new routes like Sydney and Melbourne. Air India currently has six Boeing 787s and has 27 on order.
 The airline had been flying the 787s to Paris and Frankfurt but with these planes grounded, it had to redeploy the 777s on these routes. The carrier’s officials maintain various options with regard to Boeing 777s, including seat reconfiguration, are being explored.
 “Our first option is to sell these planes,” an official said. Another said the airline was yet to firm up its decision and was evaluating options.
 An airline needs to carry out technical analysis before reconfiguring seats and the aircraft requires certification from regulatory authorities, including the Directorate General of Civil Aviation and the Federal Aviation Administration.
 Rival Jet Airways, too, is reconfiguring its Boeing 777-300 ERs, adding more seats in economy section. However, the airline is not removing first-class or business seats in that plane. Jet flies its Boeing 777s to London and has eight first-class seats in each plane. The economy section in Jet’s 777s has nine seats in a row; it is adding an extra seat in each row.
http://www.business-standard.com/article/companies/ai-explores-boeing-777-seat-reconfiguration-113032600387_1.html
 

DGCA deregisters 15 Kingfisher aircraft

Aviation regulator, DGCA (Director General Civil Aviation) today said it has deregistered 15 aircraft of Kingfisher Airlines to enable global leasing companies to take them back on grounds of default on their lease rentals by the grounded carrier.
 This was announced here by the Director General Civil Aviation, Arun Mishra, who said he would soon discuss the issues concerning Kingfisher’s dues to tax authorities, airport operators and other vendors.
 The airport operators, particularly the Airports Authority of India, had seized several aircraft of the liqour baron Vijay Mallya-owned carrier and decided not to release them till Kingfisher clears their dues.
 However, some leasing companies including German aviation bank DVB moved the Delhi High Court which ordered that the lessors had a right over these aircraft.
 Following the decision, aircraft lessor International Lease Finance Corp said it had successfully removed one of six Kingfisher aircraft — an Airbus A-321, stranded in India.
 A demand for deregistration of two more Kingfisher planes was made by DVB at a meeting with aviation regulator DGCA here yesterday.
 The two planes had been sent to Turkey for repairs and maintenance where DVB seized them.
 However, unless the planes were deregistered in the lessor country, the German Bank cannot reclaim them and lease or sell them to other carriers.
 Kingfisher has ten planes of its own and another 15 leased ones which are yet to be deregistered, AAI Chairman V P Aggarwal said on the sidelines of a CII function on aviation.The dispute over Kingfisher’s leased planes is seen as a major test of the Cape Town convention, a global treaty to standardise transactions involving moveable property like aircraft, including contracts of sale and leases.
 It provides legal remedies for default in financing agreements, including repossession and the effect of bankruptcy laws.
http://www.thehindubusinessline.com/industry-and-economy/logistics/dgca-deregisters-15-kingfisher-aircraft/article4551067.ece

Dreamliner may face ban on long-haul flights

As Boeing works to regain permission for its 787 Dreamliner to resume flights, the company faces what could be a costly new challenge: a temporary ban on some of the long-distance, trans-ocean journeys that the jet was intended to fly.
 Aviation experts and government officials say the Federal Aviation Administration may shorten the permitted flying time of the 787 on certain routes when it approves a revamped battery system. The plane was grounded worldwide two months ago after lithium-ion batteries overheated on two separate aircraft.
 Losing extended operations, or ETOPS, would deal a blow to Boeing and its airline customers by limiting use of the fuel-saving jet, designed to lower costs on long-distance routes that don't require the capacity of the larger Boeing 777. Such a loss could even lead to cancellation of some routes.
 "If the FAA approves (only) over-land operations it would be a very damaging blow to the 787 program," said Scott Hamilton, an aviation analyst with Leeham in Seattle.
"Depending on how long that restriction remains in place, it would completely undermine the business case for the airplane, which was to be able to do these long, thin intercontinental routes" over water, he said.
 Grounding the 787 already has cost Boeing an estimated $US450 million in lost income and compensation payments to airlines. Further restrictions on the 787's range could send the airlines' claims - and Boeing's costs - higher.
 Until it was grounded on January 16, the 787 was permitted to fly routes that ranged as much as three hours away from an airport. Boeing has asked the FAA to extend that range to 5-1/2 hours. That change would enable airlines to fly many more routes across remote areas such as the North Pole.Now the jet faces the potential temporary loss of its ETOPS approval or a roll-back to two hours, according to government officials and aviation experts.
 "It is completely within expectations for FAA to limit ETOPS for the 787," one regulatory source in Japan said. He said that reducing the range to two hours would force Japanese airlines to fly more circuitous routes, burning up more fuel and cutting efficiency.
 A former senior US government official said there was "a distinct possibility" that Boeing could win the battle over FAA flight certification for the battery only to lose permission for extended operations - at least temporarily.
 An FAA spokesperson said it was too early to discuss ETOPS approval since Boeing's battery fix was still being tested.
 "It's really premature to talk about what ETOPS certification we would give them right now," said the spokesperson. "We'll be in a better position to answer questions like that after we get through all this battery testing."
 Boeing referred questions to the FAA. During a recent news conference in Japan, Boeing executives said there had not been any conversations with regulators about extended range operations. They said the proposed certification plan did not foresee further limitations once the plane was allowed to resume flight operations.
 The issue is heating up as Boeing nears the end of testing the new battery system, designed to prevent the meltdowns that occurred in January. Boeing executives say the FAA could approve the new battery system within weeks. The first flight test of the system took place Monday, and a second, final test flight is expected in coming days, Boeing spokesman Marc Birtel said.
 Analysts and industry executives say any decision to limit the flying time of the new aircraft would have serious consequences.
 The change would not rule out all international routes, but some specific routes, such as Japan Airlines' Tokyo-to-Boston flight, might have to be canceled, said the Japanese regulatory source.
 The 787's biggest customers so far include All Nippon Airways and Japan Airlines, which fly extended routes to the United States and Europe, and Qatar Airways. In the US, United Airlines is the only carrier to have taken delivery of 787s. The airlines declined requests for comment on how loss of ETOPS could affect operations.
 A step-by-step return to full, extended flight would give regulators more time to study the effectiveness of Boeing's battery fix, and could help the Obama administration prove that it was making good on Transportation Secretary Ray LaHood's promise to ensure the plane was "1000-per cent" safe, some experts said.
 It would also address concerns voiced by Japanese aviation regulatory authorities in recent weeks.
 Nor is it without precedent. Until the late 1980s, the FAA required airlines to fly a certain number of hours over land before it approved extended-range operations over water or remote areas. It started granting permission for those flights in tandem with flight certification when engine safety improved.
 But the highly electrical nature of the 787 has raised new questions, said another former U.S. official, noting that the importance of the lithium-ion batteries for the plane's operation made it a bigger risk factor than past batteries.
 "In the past, if you lost a battery, or a battery malfunctioned, it wasn't that big of a deal," said that former US official.
 "But if Boeing's battery is needed to start the engine - and that battery is susceptible to fire - isn't that a turn back condition? Isn't that something you have to go land at an airport to address? That's the question."
: http://www.canberratimes.com.au/travel/travel-news/dreamliner-may-face-ban-on-longhaul-flights-20130328-2gw0m.html#ixzz2Oo8xrcMa

IATA for government, industry joint efforts to boost aviation

The International Air Transport Association (IATA) on Tuesday urged government and industry to join hands on a series of projects to enhance safety, security and efficiency in India.
Making these observations in his inaugural address at the India Aviation Day,  IATA director general Tony Tyler said, “I propose a series of projects to enhance the safety, security and efficiency of Indian aviation. The interests of government and industry are aligned.”
The international aviation regulator said once the government joins hands with the industry, it would help align the long standing demands of IATA including improved infrastructure, cost reduction and a relief from excessive taxation.
“Aviation and aviation-related tourism drives 1.5% of India’s GDP and supports jobs for 1.8% of the workforce. A stronger aviation sector will be a catalyst for even wider economic benefits,” Tyler said.
The event was organised jointly by the GMR Group and the Confederation of Indian Industry (CII).
“This is my third major speech on Indian aviation issues in under a year.  I have not spoken this much in or about any other single country in my time at IATA.  The reason is two-fold.  The first is that India is the great potential market of the future, and the industry here has only just begun to realize its enormous promise.  The second is that if we are to realize that future, we must successfully overcome some major issues,” said Tyler.
While lauding the proposed setting up of Civil Aviation Authority (CAA), Tyler said “The establishment of CAA will be a step in the right direction. But we must recognize that there is some way to go in terms of capacity building and skills set development.  The industry can help.”
Speaking on this occasion Civil Aviation Minister Ajit Singh said the government through a series of policy measures in the recent past is making an all round effort to bring the Indian aviation sector on par with international standards.
He said permitting 49 per cent Foreign Direct Investment  (FDI) by foreign airline in domestic carriers or allowing direct import of aviation turbine fuel by airline companies and enhanced traffic rights allocated to Indian carriers especially in Gulf countries coupled with  privatisation of airports will help Indian aviation sector grow rapidly
http://newindianexpress.com/business/news/article1518739.ece

 

FIPB clears AirAsia, Tata joint venture plan

 The Foreign Investment and Promotion Board (FIPB) on Tuesday approved AirAsia’s plans to enter Indian skies, according to a Finance Ministry statement.
The Malaysian budget carrier has plans of starting a new passenger airline in partnership with Tata Sons and Arun Bhatia’s Telestra Tradeplace Pvt Ltd.
Malaysia’s largest budget carrier had proposed to induct Rs 80.98 crore to start the airline that would have a 49:30:21 joint venture with the Tata Group company and Telestra Tradeplace.
Union Civil Aviation Minister Ajit Singh said that AirAsia hasn’t yet approached the ministry. “No, they have not submitted any application as yet. There are some concerns, some procedural issues with regard to the proposed airline. We will look into it quickly. But all that will depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of aircraft. Any clearance will depend on how fast they give all this information which will be required by DGCA to grant them a flying permit,” Singh said.
AirAsia CEO Tony Fernandes took to micro-blogging site, Twitter to express his elation. “All the hard work and consistent focus is paying off. A consistent strategy and well thought out plan is coming together,” Fernandes tweeted on Tuesday.
He had said on Monday that hiring will commence soon for the India operations. “We’re hiring soon... India here we come,” Fernandes added.
AirAsia is the first foreign airline to take advantage of the easing of Foreign Direct Investment (FDI) norms in aviation in September last year. The government has permitted foreign airlines to have 49 per cent FDI in an Indian carrier. AirAsia will be headquartered in Chennai and will initially be operating in south India.
http://newindianexpress.com/business/news/article1518736.ece

DGCA deregisters 15 Kingfisher aircraft

Aviation regulator, DGCA (Director General Civil Aviation) today said it has deregistered 15 aircraft of Kingfisher Airlines to enable global leasing companies to take them back on grounds of default on their lease rentals by the grounded carrier.
 This was announced here by the Director General Civil Aviation, Arun Mishra, who said he would soon discuss the issues concerning Kingfisher’s dues to tax authorities, airport operators and other vendors.
 The airport operators, particularly the Airports Authority of India, had seized several aircraft of the liqour baron Vijay Mallya-owned carrier and decided not to release them till Kingfisher clears their dues.
 However, some leasing companies including German aviation bank DVB moved the Delhi High Court which ordered that the lessors had a right over these aircraft.
 Following the decision, aircraft lessor International Lease Finance Corp said it had successfully removed one of six Kingfisher aircraft — an Airbus A-321, stranded in India.
 A demand for deregistration of two more Kingfisher planes was made by DVB at a meeting with aviation regulator DGCA here yesterday.
 The two planes had been sent to Turkey for repairs and maintenance where DVB seized them.
 However, unless the planes were deregistered in the lessor country, the German Bank cannot reclaim them and lease or sell them to other carriers.
 Kingfisher has ten planes of its own and another 15 leased ones which are yet to be deregistered, AAI Chairman V P Aggarwal said on the sidelines of a CII function on aviation.The dispute over Kingfisher’s leased planes is seen as a major test of the Cape Town convention, a global treaty to standardise transactions involving moveable property like aircraft, including contracts of sale and leases.
It provides legal remedies for default in financing agreements, including repossession and the effect of bankruptcy laws.
http://www.thehindubusinessline.com/industry-and-economy/logistics/dgca-deregisters-15-kingfisher-aircraft/article4551067.ece
 

Time for India to have national aviation policy, says IATA chief

India should formulate a national aviation policy to facilitate growth in the sector, said Tony Tyler, Director-General of the International Air Transport Association (IATA) here on Tuesday.
“The call is not for special favours or preferential treatment,” Tyler said at the inaugural Aviation Day India meet. The IATA head was of the view that the agenda to improve infrastructure, reduce costs and evolve a more reasonable taxation structure was absolutely critical to India’s long-term success.
Pointing out that security was a top priority not only of Governments but also airlines, the IATA chief was of the opinion that the current “one-size-fits all” prospective approach to security for both cargo and passengers is not sustainable. “We need an approach that focuses on outcomes and not process. And we should make the best use of scarce resources by taking a risk-based approach — recognising that the vast majority of cargo and passengers pose absolutely no threat to aviation or national security,” Tyler said.
The IATA DG also proposed to urgently combine forces to modernise cargo processes. “In 2008, we collectively said goodbye to paper tickets. By 2015, we are trying to do the same with cargo with 100 per cent conversion to e-air way bills — an important step in the overall e-freight vision. It is incredible that in the Internet age, 50 million tonnes of air cargo shipment still rely largely on paper-based processes,” Tyler said.
He pointed out that though the customs department in India had agreed in principle to create a paperless environment, the “progress is too slow. To be blunt, we need a show of political will to kick-start the process.”
http://www.thehindubusinessline.com/industry-and-economy/logistics/time-for-india-to-have-national-aviation-policy-says-iata-chief/article4551494.ece

Jet fuel: AAI plans joint ventures with airlines, oil firms

The Airports Authority of India (AAI) proposes to set up joint ventures with public and private sector oil companies and airlines to meet jet fuel requirements in remote parts of the country, its Chairman V. P. Agrawal said on Tuesday.
 AAI will hold a 13 per cent stake in the joint ventures with other companies being free to decide on how much stake they would like to hold, the AAI Chairman said. The idea was discussed in the presence of Secretary, Petroleum, and various oil companies, including Reliance. Agrawal was speaking on the sidelines of the Aviation Day India meet here on Tuesday.
 “Take Kangra (Himachal Pradesh), it does not have a fuelling facility. Somebody flying, say, from Delhi, has to carry the fuel from the national capital to be able to come back. This unnecessarily disturbs the economics. The other objective is that less space is occupied by oil companies, otherwise everybody duplicates. We will create sufficient capacity so that everybody puts their oil in it,” he said.
 AAI will write to the airlines to participate in the proposed joint ventures and it is for the airlines to be part of these or not, Agarwal said.
Agrawal said there were plans to commission a study on the impact of the Chennai airport on the gross domestic product of the city and the State. The Delhi Airport had got such a survey done that showed that Delhi airport contributed over Rs 20,000 crore to the city.
http://www.thehindubusinessline.com/industry-and-economy/logistics/jet-fuel-aai-plans-joint-ventures-with-airlines-oil-firms/article4551493.ece
 

India's Jet Air wet leases A330 to Etihad

India’s Jet Airways has wet leased one of its Airbus A330-200 aircraft to the UAE’s Etihad Airways, it was reported, as the two continue discussions over an equity stake sale.
 In a text message sent to India’s Economic Times, Jet CEO Nikos Kardassis said that the wide body aircraft and 60 cabin crew would be leased to the Abu Dhabi-based carrier. The cabin crew will undergo three months of training in Mumbai beforehand.
 "We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis said in an SMS.
 In a wet lease agreement, one carrier provides the aircraft, crew and maintenance for an agreed period, while the other takes on the responsibility for supplying and operating the craft. In this case, neither party provided details on how long the lease would last.
 Jet currently operates a fleet of more than 100 aircraft, including 11 Airbus A330-200, which are deployed on long haul routes. Etihad currently has 16 of the planes, whose list price is about US$200m, with a further two on order
http://www.arabiansupplychain.com/article-8564-indias-jet-air-wet-leases-a330-to-etihad/

FIPB clears AirAsia proposal, but Aviation Ministry seeks clarity

Serious differences have cropped up between the Finance Ministry-headed Foreign Investment Promotion Board and the Ministry of Civil Aviation on the decision to give the nod to a three-way joint venture between the Malaysia-based AirAsia, Tata Sons and Telestra Trading to set up a domestic airline in India.
Twenty days after the proposal was taken up by the inter-ministerial Foreign Investment Promotion Board (FIPB), the Finance Ministry issued a press release saying that the proposal was one of the six foreign investment proposals that had been approved.
The new airline’s proposal involves a foreign direct investment inflow of about Rs 81 crore.
However, speaking to newspersons Minister for Civil Aviation Ajit Singh said that there were still procedural problems facing the AirAsia proposal. The Minister did not give any specifics but said that his Ministry will support the proposal.
Senior officials of the Civil Aviation Ministry claimed that they were yet to receive clarifications on the category under which the proposal was cleared.
The root of the problem is the difference in the interpretation of rule 3.2.1. of the guidelines for foreign direct investment in the civil aviation sector which states “foreign airlines are also, henceforth allowed to invest, in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent.”
The Ministry of Civil Aviation is interpreting operating to mean an existing airline, a point which is disputed by the FIPB. Incidentally, this was also a point that was raised by the Ministry of Civil Aviation when AirAsia’s proposal was first taken up by FIPB on March 6.
“Allowing FDI only in existing airlines is a flawed policy. It should also be allowed in start-ups which also need to be well capitalised with strategic partners. It will be good if the Department of Industrial Promotion and Policy issues clarifications to put this matter to rest,” Kapil Kaul, Chief Executive Officer, Centre for Asia Pacific Aviation said.
AirAsia will now have to wait for a formal letter from FIPB after which it will approach the Domestic Transport Department in the Ministry of Civil Aviation which will check if the proposal meets sectoral guidelines. Before starting operations the airline will also have to get clearances for import of aircraft and get its operating manual from the Directorate General of Civil Aviation.
According to its promoter Tony Fernandes, AirAsia plans to start operations from the fourth quarter this year.
http://www.thehindubusinessline.com/industry-and-economy/economy/fipb-clears-airasia-proposal-but-aviation-ministry-seeks-clarity/article4551545.ece

AirAsia, Tata JV closer to take-off

Malaysian budget carrier, AirAsia’s joint venture with the Tatas and Telstra group for a domestic airline moved another step closer to take-off following approval from the government on Tuesday. AirAsia’s proposal, cleared by the Foreign Investment Promotion Board (FIPB) on March 6, was given a formal go-ahead on Tuesday, according to an official statement issued by the Finance Ministry which put the investment at Rs.80.89 crore.
 The venture will now need operational clearances such as the Air Operator’s Permit from the Director General of Civil Aviation (DGCA). Talking to journalists here, Civil Aviation Minister Ajit Singh said the AirAsia JV had not yet submitted any application to the Aviation Ministry. “There were some concerns and procedural issues with regard to the proposed airline. We will look into it quickly. But all that will depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of aircraft. Any clearance will depend on how fast they give all this information, which will be required by the Director General of Civil Aviation (DGCA),” he said.
Signalling the progress of approvals, AirAsia’s CEO, Tony Fernandes, tweeted: “We’re hiring soon… India here we come” and in another tweet said: “Look out for dates soon at this space.” The stock market greeted the government approval to AirAsia by marking down the price of competing airlines such as Jet Airways and SpiceJet. The latter’s stock price fell by 4 per cent as the market seemed to think that it will be hit the most by AirAsia’s Chennai base.
 Following the opening up of the aviation sector to foreign direct investment (FDI) last September , AirAsia had formed a joint venture with Tata Sons and Arun Bhatia of Telestra Tradeplace to launch a new airline in India.
 AirAsia Group CEO Tony Fernandes had recently said the new airline would be based out of Chennai and, in the initial phase, would concentrate on destinations in South India and would also focus on providing connectivity to small towns.
 http://www.thehindu.com/business/Industry/fipb-clears-airasias-proposal-to-start-a-passenger-airline-with-tata-group/article4550878.ece

Airline shares fall on AirAsia entry concerns

Shares in Jet Airways India fall nearly 3 percent and SpiceJet Ltd shares drop 3.4 percent after India's Foreign Investment Promotion Board (FIPB) approves AirAsia Bhd's proposal to set up a joint venture in India, raising concerns about increased competition.
Shares also fall after Airports Authority of India says it will form a joint venture with local airlines and oil companies to supply jet fuel, expecting to reduce airlines' fuel costs by at least 10 percent.
http://smartinvestor.business-standard.com/market/Marketnews-167414-Marketnewsdet-Airline_shares_fall_on_AirAsia_entry_concerns.htm

Meanwhile, DGCA allows lessors to take back KFA planes

Directorate General of Civil Aviation (DGCA) Arun Mishra today allowed lessors to take back 15 de-registered Kingfisher planes. Another three de-registered planes belonging to Los Angeles-based International Lease Finance Corporation (ILFC) cannot be taken back as litigation is on, said Mishra. The litigation over these three planes is on because Kingfisher had partly financed the purchase of these planes.
 This decision comes after the DGCA’s meeting with Airports Authority of India (AAI) and the civil aviation ministry.
 Mishra said, “We would meet tax officials and airport operators on Tuesday to discuss issues related to other planes leased by Kingfisher, whose aircraft have been grounded for months by a cash crunch. However, the lessors will need to pay parking fee for aircraft from day of de-registration. Nearly 25 Kingfisher planes are not yet claimed by lessors.”
Airport operators, including AAI, had held back Kingfisher planes owing to non-payment of dues. However, India, being a signatory to Cape Town convention, has to comply with that. According to this convention, in case of a default, lessors will have the first right to claim back the plane.
 International Lease Finance said on Monday it had removed one of six aircraft stranded in India by the dispute over the suspension of operations at Kingfisher Airlines.
 Kingfisher has 42 planes. Of those, 17 have been de-registered and none of the lessors has claimed the rest.
 Financiers have warned that failure to resolve the dispute between creditors over the grounded carrier's unpaid bills could starve India of funds needed to develop its aviation industry.
 Kingfisher, controlled by liquor baron Vijay Mallya, has been halted due to a cash crunch. Lenders have been trying to recover $1.4 billion of loans in default, but disagreements over who should take precedence have left the jets stranded.
 The fate of Kingfisher's jets is seen as an important test of an international agreement known as the Cape Town convention, designed to make it more attractive for leasing companies to invest by duplicating US style repossession rights.
http://www.business-standard.com/article/companies/meanwhile-dgca-allows-lessors-to-take-back-kfa-planes-113032600082_1.html

Lufthansa considers how to beat low-cost rivals in India

Deutsche Lufthansa AG said it's looking at establishing a long-haul, low-cost venture to help sustain its market share on routes to Asia, as rival operators syphon more and more traffic through hubs in the Gulf.Lufthansa may form an intercontinental subsidiary similar to its Germanwings short-haul unit, Chief Financial Officer Simone Menne said at a briefing in New York. Other options include an alliance with a Middle Eastern or Asian airline.

Europe's second-largest carrier won't be able to keep pace with rivals such as Dubai-based Emirates and Etihad Airways PJSC of Abu Dhabi without a change in strategy, Menne said, adding that the Cologne-based company ended services to Hyderabad and Calcutta in India last year because the routes were uneconomic.
 "The threat from Gulf carriers, for us, is Southeast Asia and it's India," Menne said. "That is a concern for investors, and the answer is we look at all strategic options. That can be partnerships, it can be joint ventures, it can be our own platform or it can be a retreat from this market."
 Lufthansa is reviewing its strategy with Asia-Pacific passenger traffic poised to expand at a 6.7 percent annual rate through 2016, according to the International Air Transport Association -- half as fast again as forecast growth in Europe.
 The German company won't be able to exploit that market unless it changes course, Menne said.
 Gulf carriers are tapping Asia by utilizing the position of their home bases to build intercontinental transfer hubs where people can switch plane for flights to and from dozens of cities across India, China and countries such as Thailand and Malaysia.
 Lufthansa's European peers are already moving closer to Gulf carriers, with British Airways (IAG) recruiting Qatar Airways Ltd. for the Oneworld alliance and Etihad -- an investor in its chief domestic rival, Air Berlin Plc (AB1) -- in talks about an accord with Air France-KLM Group. (AF) Emirates, the biggest Middle Eastern airline, has said it isn't interested in joining an alliance.
 Lufthansa's Germanwings division is already being used as a vehicle to reduce the group's costs in Europe, with unprofitable short-haul flights that don't serve the Frankfurt or Munich hubs being transferred to the discount operation.
 Norwegian Plan
 Establishing a low-cost long-haul business would mirror plans at no-frills operator Norwegian Air Shuttle AS (NAS), which is poised to add flights to cities including Bangkok -- tapping the lower operating costs of Boeing Co. (BA) 787 jets it has on order.
 Air Berlin, Germany's second-biggest carrier, is also buying the Dreamliner model, while AirAsia X Sdn., the long-haul arm of Asia's top discount player, has ordered Airbus SAS (EAD) A330 planes with which it could resume European flights.
 Menne said that Lufthansa will place a further order for aircraft to serve intercontinental routes in September. The carrier said last month it was considering 787s and the new Airbus A350 to replace the European manufacturer's older A340s.
 Shares of Lufthansa, which has been discussing closer ties with Turkish Airlines since at least November, traded 0.2 percent higher at 15.77 euros as of 12:15 p.m. in Frankfurt, extending gains this year to 11 percent and valuing the company at 7.25 billion euros ($9.3 billion).
 "I don't know if I buy into the idea of a low-cost, long- haul venture," said Donal O'Neill, an analyst at Goodbody Stockbrokers with a "buy" rating on the stock. "The model hasn't been proven. If they could do expanded code-sharing or a joint venture with Turkish that would be the most viable way to go."
 Lufthansa and Turkish Airlines, as Turk Hava Yollari (THYAO) AO is known, are both members of the Star Alliance and partners in the Antalya-based low-cost operation SunExpress.
 "We are cooperating already because we have a joint venture together," Menne said. "We are in regular talks and we are regularly considering what cooperation could bring us in other areas, but that's it for the moment."
http://www.business-standard.com/article/companies/lufthansa-considers-how-to-beat-low-cost-rivals-in-india-113032700002_1.html
 

AirAsia-Tata JV clears first hurdle

The government on Tuesday said it had cleared Malaysian budget carrier AirAsia’s proposal to start a passenger airline in India in partnership with the Tata Group, with an investment of Rs 81 crore.     
 The proposal was cleared by the Foreign Investment Promotion Board (FIPB), the finance ministry said.    
 AirAsia recently said it would set up a 49:30:21 joint venture with the Tata Sons and Telestra Tradeplace of Indian investor Arun Bhatia to launch an Indian airline.
 Asked whether AirAsia and the Tatas had approached his ministry, Civil Aviation Minister Ajit Singh on Tuesday said: "No, they have not filed any application."    
 He added there were "some concerns ... Some procedural issues" with regard to the proposed airline.    
 "We will look into it quickly. But, all that would depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of the aircraft. Any clearance will depend on how fast they give all this information that would be required by the directorate general of civil aviation (DGCA) (to grant them a flying permit)," the minister said.    
 The FIPB clearance was granted in line with the policy which allowed up to 49 per cent foreign direct investment (FDI) by a foreign carrier in an Indian airline. AirAsia is the first foreign airline to set up a joint venture in the Indian passenger airline segment after liberalisation of the FDI policy in the sector last September.
 Following the FIPB clearance, the AirAsia joint venture would now have to approach the DGCA for further clearances and a scheduled air operator's permit.     
 AirAsia Group CEO Tony Fernandes recently said the new airline would be based in Chennai, and in the initial phase would concentrate on destinations in south India, and also on providing connectivity to small towns.
 Shares in Jet Airways India fell 3.6 per cent and SpiceJet shares dropped three per cent in Tuesday’s trade, on heightened concerns about increased competition.
http://www.business-standard.com/article/companies/airasia-tata-jv-clears-first-hurdle-113032600135_1.html