Lessors to get first right on planes when airlines default

MUMBAI: The civil aviation ministry has finally acquiesced to international pressure brought upon by major aircraft leasing firms to formulate a policy that gives aircraft lessors the first right over other creditors to repossess aircraft, when an airline defaults on dues. The move comes after aircraft financing firms labeled Indian environment as being 'hostile' to investors.
 This broad policy initiative is being drafted by the civil aviation secretary KN Srivastava and would incorporate major international aviation convention signatories such as the Cape Town Convention and their aircraft equipment protocols, the official said.
On contentious issues of repossession of aircraft, India still does not have a clear policy. The absence of a policy on repossession of aircraft became a major irritant after Kingfisher AirlinesBSE -1.30 % defaulted on lease payments as well as payments to Indian state-owned firms, such as Airport Authority of India (AAI), oil marketing firms and banks.
These government entities held the aircraft 'hostage' for recovering dues, ignoring the rights of aircraft leasing firms. "There is an absence of policy on aircraft repossession. There is a clear need for guidelines and a policy directive. We were ignoring certain conventions despite India being a signatory member of these conventions. We do not want to make the leasing companies insecure in this market and make them feel that their interests are not protected here," the top government official said.
"The fact is that most of the aircraft flying here are leased aircraft and interests of leasing firms need to be protected," he explained.
India had ratified the Cape Town Treaty in 2008, which clearly stipulates the financial security of the investors and their asset. It protects them from local laws, and gives them the first right to remove an asset (aircraft). The treaty stipulates the civil aviation authority of the signatory country to deregister aircraft if the creditor seeks to withdraw the asset. The problems surrounding the Kingfisher were compounded due to the fact that a few aircraft were procured from lessors prior to the Cape Town agreement. According to the senior official, the government is in discussion with the stakeholders, including airports and the airlines.
According to industry sources, opinions of airlines have already been sought on the matter and they have responded positively to the ministry.
The airlines are favourably disposed to a policy that gives aircraft lessors the first right to repossess aircraft over other creditors as they are feeling the heat after risk premium for aircraft leasing in the Indian market has increased.
International Lease Finance Corporation, after reclaiming two of its aircraft through a court order in March, had said that India needs a comprehensive policy change to make it easier for the leasing companies to remove aircraft from here. Another leading aircraft financier, DVB, won a case on Monday for getting two of its aircraft de-registered so that the asset can be used by another airline. "Anything that improves the situation (for the leasing firms) is welcome. But how good or bad that would turn out to be is another thing," Carsten Gerlach, seniorV-P, aviation finance, DVB Bank said.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/lessors-to-get-first-right-on-planes-when-airlines-default/articleshow/19469116.cms


 

Lack of subsidy from Bengal Govt halts Cooch Behar-Kolkata flight service

The Kolkata-Cooch Behar flight service is unlikely to resume any time soon as the West Bengal Government failed to live up to its promise of subsidising operations for six months.
Operated by a non-scheduled carrier North East Shuttles Pvt Ltd, the flight service was stopped after just 12 flights in one-and-a-half months.
The services were initiated based on the State’s promise to subsidise eight seats of an 18-seater Dornier 228 aircraft, for the first six months, in case of non-availability of passengers. The idea was to give a cushion to the operator to help commercialise operations.
As anticipated, passenger availability was low initially. But, the carrier did not receive the promised subsidy for the flights it operated between October and mid-November last year.
“There were only two flights with full occupancy during the 45 days of service. The State Government’s proposed subsidy would have helped the carrier manage the operating cost of every flight,” sources told Business Line.
Available estimates suggest that the State Government is liable to pay a little more than Rs 3.6 lakh (at an average ticket price of Rs 4,500) as subsidy for the flights without full occupancy.
 Capt. Shoba K Mani, Managing Director, North East Shuttles declined to comment on the subject.
According to the sources, low occupancy rate leading to higher cost of operations was another reason behind the withdrawal of the service.
Technical limitations
While the Airports Authority of India (AAI) has claimed that it has already invested nearly Rs 40 crore to develop the terminal and the runway at the Cooch Benhar airport, sources said an outdated air traffic signalling system at the airport often delays landing and sends “incorrect” coordinates to the pilots
http://www.thehindubusinessline.com/industry-and-economy/logistics/lack-of-subsidy-from-bengal-govt-halts-cooch-beharkolkata-flight-service/article4598767.ece?ref=wl_industry-and-economy

KfA staff make a beeline for AirAsia ‘assignmen

Unpaid for nearly a year, disgruntled employees of liquor baron Vijay Mallya-owned Kingfisher Airlines (KfA) are making a dash to newly announced low cost airline, AirAsia.
The new joint venture between Malaysia-based Tony Fernandes, Tata Sons and Arun Bhatia of Telestra Tradeplace have advertised interviews for cabin crew positions on April 13 in Chennai. AirAsia promoter Tony Fernandes had said that they would require around 50-100 people for cabin crew for initial operations with around four-five A-320 aircraft.
Former employees on the condition of anonymity told Express, “we have waited for a long time to get back to normal daily working routines.
There is no guarantee that Kingfisher Airlines will start operations and we do not have the resources to wait until they have sorted their finances”. The workforce of Kingfisher Airlines is said to have dropped by nearly half from over 7,000 crew to just over 3,000 since troubles erupted in early 2012.
AirAsia has not made any announcements for hiring activities for engineers and pilots.
Reeling under heavy losses and debts, Kingfisher Airlines had managed to pay two months’ salary (June-July) to its staff last week. But this had still not prevented employees from protesting during Mallya-owned Royal Challengers Bangalore (RCB) team.
Former employees have threatened to file a winding up petition and are seeking salary dues from Kingfisher Airlines while others continue to wait for any communication on salaries.
http://newindianexpress.com/business/news/KfA-staff-make-a-beeline-for-AirAsia-%E2%80%98assignment%E2%80%99/2013/04/10/article1538320.ece
 

DGCA told to deregister 2 aircraft leased out to Kingfisher

German aircraft leasing firm DVB Aviation Finance Asia PTE Ltd today won a legal battle against grounded Kingfisher Airlines with the Delhi High Court asking aviation regulator DGCA to deregister two leased-out planes lying at Istanbul in Turkey.
 German aircraft leasing firm DVB Aviation Finance Asia PTE Ltd today won a legal battle against grounded Kingfisher Airlines with the Delhi High Court asking aviation regulator DGCA to deregister two leased-out planes lying at Istanbul in Turkey.
 "The petition is allowed. DGCA is directed to deregister the two aircraft which are lying outside the jurisdiction of this court," Justice Rajiv Shakdher said and asked the Vijay Mallya-owned airlines to furnish original documents of two leased aircraft to the German firm within four weeks.
 Citing a previous judgment on the issue, the court said the Directorate General of Civil Aviation (DGCA) cannot withhold the deregistration of the aircraft on the ground that the airlines owe money to the government and its agencies.
 "It is made clear that if any dues remain payable from the airlines, the respondent (DGCA) can take recourse to appropriate measures against respondent 2 (Kingfisher)," Justice Shakdher said.
 The court also considered an 'irrevocable power of attorney' executed by Kingfisher Airlines which had given power to the MNC firm to seek deregistration of planes from DGCA if breach of lease agreement takes place.
 It said DGCA rules provide that the deregistration process cannot be held back.
 However, DGCA had taken the stand that the process of deregistration required consent from both the airlines and the firm which has leased out the aircraft.
 Kingfisher Airlines did not file its response to the petition filed by the MNC firm.
 The German firm had earlier moved the court seeking a direction to the aviation sector regulator to deregister two Kingfisher planes it had leased.
 Earlier, DGCA had deregistered 15 aircraft of Kingfisher to enable the leasing companies to take them back on grounds of default on their lease rentals by the grounded carrier.
http://www.dnaindia.com/money/1820266/report-dgca-told-to-deregister-2-aircraft-leased-out-to-kingfisher

 

Planes to travel as the crow flies

Flights will soon take straight routes from ChennaitoMumbai,Delhi andKolkata andsavetime and fuel as pilots will not have to take detours to avoid military airspace.The aviation and defence ministries have approved flexible use of military airspace,and have set up a mechanism to allow commercial flights through restricted airspace.
When perfected and extended to other routes,the move will save time and fuel on flights connecting ChennaiwithM adurai,Bangalore andThiruvananthapuram.Flying time is likely to reduce by six to 15 minutes on different routes.Fuel savings are expected to be 20,29,380 kg a year and emissions are likely to reduce by 63,93,600 kg a year on theseven busiest routesChennai-Mumbai,Chennai-Delhi,Chennai-Kolkata,Delhi-H yderabad,Delhi-Mumbai,Delhi-Kolkata,and Delhi-B angalore.These routes have been selected because the air trafficcontrolsystem is automated andcivil and military flight plans can be shared electronically.
Flight plans are currently drawn up taking into consideration restricted zones.Air traffic controllers and military personnel swap flight plans a week in advance to ensure that commercial flights do not cross into military airspace.The new plan will make information available real-time.Air Forcehas posted senior officials in Chennai and Delhi for better coordination between ATC as partof the flexible use of airspace programme.
The ministry has revived a pending proposal.If it is extended f o r s o u t h - b o u n d flights from Chennai,passengers will save a lot of time, said an Airports Authority of India (AAI) official.
A Chennai-Thiruvananthapuram flight now flies south and turns right at Trichy to reach its destination because of the restricted zone over Hindustan AeronauticsLimitedsbase near Bangalore.Whileflying toMumbai from Chennai,pilots are asked to stay above 25,000 feet till they cross the Pune Air Force base.Chennais airspace is constricted by Tambaram Air Force station,Arakonam Naval station,and HAL.
The project was approved after we showed that six to eight minutes can be saved by such routing after air traffic was automated and upper air space was unified for smooth flow of traffic above 25,000 feet, said an official at Chennai airport.
A national high-level airspace policy body will be set up to establish flexible airspace use structure and introduce procedures for allocation of airspace.The body will be chaired by the aviation secretary and will have officials from the defence ministry,Air Force,Navy,Indian Space Research Organization,AAI and the Directorate General of Civil Aviation.
STRAIGHT ROUTE
ONCE FLEXI ROUTES ARE IN PLACE,FLYING IS LIKELY TO BE FASTER Civil and military radars integrated in Chennai,will be done in other regions Better coordination as flight movement can be accessed by controllers of defence and airports Military officers will be posted at the air traffic control flow management unit Military airspace will be handed over for commercial flights when there is no flying by air force
GOING IN CIRCLES
Getting permission to cut across the airspace over military installations as is the norm can be cumbersome
Flight plans provided to Air Force Liason unit to obtain clearance,and flight plans of military planes provided to air traffic control
Flight plans exchanged over phone,hotlines,aeronautical fixed telecommunication network
If military flying is on,ATC will ensure that pilots avoid the area
Plans given to ATC a week in advance to plan alternative routes
Monthly meetings between Airports Authority of India and Air Force to iron out operational difficulties

 

Hyderabad International Airport likely to get new CEO soon

HYDERABAD: Rajiv Gandhi International Airport, being run by GMR Group here, is likely to have a new chief executive officer soon as the incumbent Vikram Jaisinghani is quitting the organisation, sources said.
 Kishore S Gopalakrishnan, now CEO of commercial properties development at the airport, is likely succeed Jaisinghani.
 Gopalakrishnan had also worked as chief operating officer of the SEZ division of GMR Group.
 "Vikram is leaving the organisation on personal grounds. He wanted to move back to Mumbai where his family resides. He is an excellent person and his contribution to the airport development is incalculable," a source told PTI.
 Jaisinghani could not be contacted for his comments. It could not be independently verified with GMR as its officials were not available for comments.
 Sources indicated that Jaisinghani's tenure with GMR Hyderabad International Airport will end by April 18 and the new CEO is expected to take charge since then. Jaisinghani took over as CEO of airport after his predecessor Sripathy was transferred as CEO international airports (GMR) in 2009. During Jaisinghani's tenure, the airport got the Best Cargo Airport in India and Best Cargo Terminal in India award by Air Cargo Agents Association of India (ACAAI) in 2012.
 The passenger traffic has grown to 8.6 million in 2011-12 from 6.5 million in 2009-10 and cargo traffic increased to 81,487 tons from 66,482 tons during the same period.
http://articles.economictimes.indiatimes.com/2013-04-07/news/38346352_1_gmr-group-gmr-hyderabad-international-airport-new-ceo

End of jumbo jets: BA bids adieu to 747s

It has transported presidents,monarchs and refugees and provided a piggy-back for the Space Shuttle.But now the plane with a hump could be heading for the dump.
British Airways,the worlds leading operator of the Boeing 747,this week announced plans to start replacing its jumbo jets with smaller but much more efficient 787 jets.
The 787 Dreamliner is currently grounded because of safety concerns,but Willie Walsh,chief executive of BAs holding company,IAG,said he was confident of its long-term prospects: The aircraft offers a step change in fuel-burn efficiency versus our existing aircraft.His counterpart at Cathay Pacific,John Slosar,has already made plans to retire the jumbo by next year,saying : They are simply not economical to operate in these times of soaring fuel prices.
The Boeing 747 was the first wide-bodied passenger aircraft.When it entered service in January 1970,it cut the cost of flying dramatically and opened up the world to middle-class travellers.
Flying passengers on an old and thirsty aircraft is an expensive business,which explains BAs plans to retire its fleet of 57 jumbo jets.Some are being replaced by the Boeing 777-300,which can almost match the 747s capacity.But the airline has indicated the 787 aircraft will replace the jumbo on a one-for-one basis.The prototype for a radical option for the retired jets is to be found in a corner of Stockholms Arlanda airport where a former Pan Am jumbo has been converted into a hotel.THE INDEPENDENT
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=13&sectid=edid=&edlabel=TOIKRKO&mydateHid=07-04-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar01307&publabel=TOI
 

AirAsia gets formal Foreign Investment Promotion Board approval

MUMBAI: AirAsia today said it has received formal approval from the Foreign Investment Promotion Board to launch an airline in the country in association with the Tatas, paving the way for the companies to move the sectoral regulator DGCA for an air operator licence.
 "The application made by AirAsia through its investment arm, AirAsia Investment, to the Foreign Investment Promotion Board seeking approval for a 49 per cent investment into a joint venture company named AirAsia India, partnering Tata Sons and Arun Bathia of Telestra Tradeplace, has been granted a formal approval on April 4," the Malaysian carrier said in a statement.
 AirAsia, the largest low-cost airline in Asia, announced the JV with Tatas late February. Last month FIPB had approved the proposal.
 "This approval will enable AirAsia India to apply with the Directorate General of Civil Aviation for the aviation licence to operate as an airline," the statement added.
 The proposed airline would operate from Chennai and would be focused on providing connectivity to small towns.
http://articles.economictimes.indiatimes.com/2013-04-05/news/38306520_1_airasia-india-telestra-tradeplace-airasia-investment
 

Boeing Poised for 787 Battery Fixes With Teams in Japan

Boeing Co. (BA) has sent several teams of engineers to Japan, home to the biggest operators of the grounded 787 Dreamliner, to get ready for battery upgrades as the planemaker escalates efforts to return the jets to service. Equipping each 787 with new lithium-ion batteries will take four to five days once the U.S. Federal Aviation Administration approves the proposed fix, said Marc Birtel, a Boeing spokesman. He declined to give details on how many people are involved in Japan or the pace of any future repairs.
Japan’s largest carriers, ANA Holdings Inc. (9202) and Japan Airlines Co. (9201), account for almost half of the 49 Dreamliners in service. Quick upgrades may get the jets flying again by June, boosting prospects for Chicago-based Boeing to make up any grounding-delayed deliveries by year’s end, said Michel Merluzeau, a consultant at G2 Solutions in Kirkland, Washington.
“They’re not going to wait for the FAA to give the all- clear,” Merluzeau said. “They should have a pretty good idea of where things are going. They’re ready to go.”
Boeing may fly a 787 carrying FAA officials as soon as today as the agency assesses whether the battery system is safe for commercial duties again after two electrical faults in January, said a person familiar with the planning who asked not to be identified because the details aren’t public.
Boeing isn’t discussing the timetable for the certification flight, said Birtel, who is based in the company’s commercial aviation hub in Seattle.
Process Continues
“No work is being done on the battery systems at this time as we are still working through the certification process,” Birtel said in an e-mailed response to questions. That includes ground-based tests of the new battery system. The FAA hasn’t given a schedule for completing its 787 review.
Boeing (BA) rose 0.7 percent to $84.95 at the close yesterday in New York. That pushed the stock’s gain this year to 13 percent, beating the 9.4 percent advance for the Standard & Poor’s 500 Index.
The FAA ordered that Boeing’s marquee jets be parked after a battery caught fire on a JAL Dreamliner in Boston on Jan. 7 and the unit on an ANA (9202) flight smoldered in Japan days later, prompting an emergency landing. That action halted handovers of the 787, the world’s first jetliner built chiefly of composite materials, and sent Boeing rushing to find a work-around.
The Japan Transport Safety Board will conduct ground tests on the ANA 787 next week, Masahiro Kudo, an accident investigator for the agency, told reporters in Tokyo today. Authorities are seeking more battery data from the jet that landed at Takamatsu airport, Kudo said.
New Battery
The new battery system includes a stainless-steel enclosure, a vent line leading outside the plane, and more spacing and insulation between cells to keep any overheating from spreading.
Boeing has said it will make upgrades in roughly the order that the planes were handed over to customers, which would put ANA and JAL first. ANA has 17 Dreamliners in its fleet, and JAL has seven.
ANA is waiting for Japan Civil Aviation Bureau approval before deciding on when to restart 787 flights, a spokeswoman, Megumi Tezuka, said by telephone. The bureau’s decision is expected after the FAA acts, she said. A JAL spokesman, Jian Yang, declined to comment on when 787 service would resume.  “This will move really fast in terms of being able to get the airplanes back into the air” after FAA approval, Boeing Commercial Airplanes President Ray Conner said at a conference last month. “We will then work with the local authorities, work with the airlines and those kinds of things, but we are prepared, we’re ready to go.”
While the FAA hasn’t said when the 787 can return to service, Boeing said testing on the battery fix is more than half-complete and it will submit the proposal after ground tests and the certification flight.
When that flight occurs, Boeing will use a Dreamliner built for LOT Polish Airlines SA, Birtel said. Since March 25, that plane has made three check flights while equipped with the new battery system. Those flights went as planned, Boeing said.
http://www.businessweek.com/news/2013-04-04/boeing-engineers-standing-by-in-japan-to-start-787-battery-fix

Banks move to invoke Vijay Mallya’s Kingfisher Airlines guarantee

MUMBAI: Lenders to Kingfisher Airlines have stepped in to invoke the personal guarantee of Vijay Mallya as well as UB Holdings' corporate guarantee on borrowings by the grounded airline. State Bank of India (SBI), on behalf of the consortium of lenders, recently sent letters to convey their decision on the invocation of guarantees. What the banks do next and the legal proceedings that follow could emerge aa benchmark case in Corporate India. Few high-profile promoters in the country have had personal guarantees invoked by banks.
 If a guarantor fails to pay up after the invocation and within the time given in successive notices, creditors consider this as an act of insolvency.
 "A few days ago, the State Bank Bangalore office, on behalf of itself and the member banks, sent the invocation letters through their lawyers," a person familiar with the development told ET. SBI officials were unavailable for comment.
 A Kingfisher spokesman, responding to an email query, said, "We have not received any communication from SBI." SBI is the lead lender among a group of 17 banks whose combined outstanding to Kingfisher is more than Rs 7,500 crore.
 Legal circles believe that Mallya and the UB Group may move the court while banks will consider various options like initiating recovering proceedings in the Debt Recovering Tribunal, and exercising their rights under the security enforcement law with the Kingfisher account categorised as a non-performing asset (NPA). An account is identified as an NPA when a borrower fails to service loan interest or principal installment for 90 days.
 But a stronger course of action to pressurise a borrower following guarantee invocation could be to file an insolvency petition in the court. Once the court declares the party concerned as "insolvent", banks can begin necessary action to seize assets.
 Under such circumstances, banks can seize all personal assets of the person who furnished the guarantee as well as target the assets of the corporate guarantor. But the legal process can take years. Technically, creditors can even seize assets located outside the country.
 But Indian businessmen, particularly those who have NRI status, often ring-fence their offshore assets in a maze of trust structures. Banks have been selling pledged shares of Mallya-promoted companies like United Spirits and Mangalore Chemicals & Fertilisers to recover a slice of their losses. After the Bombay High Court declined to give a stay on the selloff, banks sold more shares this week.
 The guarantee invocation process and moving the court under the enforcement act can happen parallel with the sale of pledged shares (which are governed under separate contracts.)
 According to a senior lawyer, banks can even move the court to restrain Mallya from transferring his interests in other assets. Banks are running out of patience with Kingfisher Airlines after it failed to come up with any concrete plan to revive operations and repay dues.
http://articles.economictimes.indiatimes.com/2013-04-06/news/38327431_1_kingfisher-airlines-non-performing-asset-corporate-guarantee
 

Aranmula: FIR against government officials

The Vigilance and Anti-Corruption Bureau (VACB), has registered a First Information Report (FIR) against persons, including government officials, allegedly involved in a case related to anomalies and violation of law in filling paddy fields, wetlands and a rivulet for the construction of Aranmula Airport.
 VACB DySP of Pathanamthitta unit K Jagadees registered the FIR as per the direction of Enquiry Commissioner and Special Judge (Vigilance) S Soman.
 The court had directed the Vigilance Department to conduct a preliminary enquiry on the basis of a complaint filed by Aranmula Heritage Village Karma Samiti patron Kummanam Rajasekharan.
 According to the FIR, which was dispatched to the concerned court on March 25, accused one to seven are government officials.
 They include village officers of Aranmula, Mallappuzhassery and Kidangannur (who were in the office from 2008 to 2012) Kozhenchery Taluk Land Board chairman from 2008, taluk surveyor, Kozhenchery additional tahsildar and tahsildar from 2008 to 2012, Adoor RDO, executive director of Minor Irrigation Department from Pathanamthitta.
http://newindianexpress.com/states/kerala/article1533106.ece
 

Air travellers support fat tax

Mumbai: The next time you decide taking a flight, you might have to watch your weight. If you won’t, your co-passenger will and might even have a problem with it.
The proposal to charge overweight air passengers more may not have gone down well with some, but a majority of respondents in a recent survey voiced their support to the idea.
Fifty-nine per cent of the respondents favoured the “fat tax”, a survey by global travel search portal Skyscanner revealed.
“An independent online poll of 1,000 adults revealed that the majority (59 per cent) of international travellers were in favour of ‘fat tax’, which would see airlines charging more for seats to overweight passengers,” the survey findings said.
The remaining felt it would be “unfair and discriminatory.”
The survey, carried out on March 26-28, follows a call by Bharat P. Bhatta, a Norwegian economist and associate professor with Sogn of­ Fjordane University College, who said the airlines should adopt the practise in other transport sectors and charge by space and weight.
‘Pay as you weigh’ airline pricing model could bring benefits to airlines in the form of cheaper fares and reduced carbon emissions, Bhatta explained.
“While the proposal to charge extra from overweight passengers is a sensitive issue for airlines who will not want to offend such passengers, it’s clear from our survey that many travellers think the introduction of such a tax would enable them to save money on airfare,” said Skyscanner’s market development manager for India, Kavitha Gnanamurthy.
http://www.deccanchronicle.com/130405/news-businesstech/article/air-travellers-support-fat-tax
 

'Legacy airline alliances have outlived their usefulness'

NEW DELHI: The apprehension of global airlines when Abu Dhabi-based Etihad confirmed stake purchase talks with Jet Airways that the Gulf carrier is planning its own informal alliance has proven true. Etihad president and CEO James Hogan said in US on Wednesday that "legacy airline alliances have outlived their usefulness". He said Etihad's equity alliance of minority shareholdings enabled the airline to enter markets, without the complexities attached to mergers or larger investments.
 Star Alliance top brass had voiced this concern to Air India brass last month when they met to discuss AI's entry into the alliance. Etihad is in talks with Jet to acquire a 24% stake. However, fears over safety of their investment in India - after compatriot Etilsat's fate - have held up the deal. None of the three major alliances - Star, Oneworld and SkyTeam - have an Indian partner yet, while they have been trying for years. The problem is the aviation ministry's unwritten pre-condition that they can take an Indian carrier on board only after accepting AI into the fold. Considering the condition of the Maharaja, Star backed out.
 "Now if the Jet-Etihad deal goes through, a Gulf carrier from Abu Dhabi will get access to the massive Indian market. Emirates gets a majority of its flyers from India through the large number of flights the airline was allowed to operate to numerous Indian cities during UPA-1. The competition will get tougher for other foreign carriers," said an Indian airline official.
 Etihad's formal announcement of sewing up alliances by buying stakes in airlines across the world (like the Jet deal) could help AI. Now AI is the only full service carrier from India that can join the network. Kingfisher was supposed to join Oneworld but the airline is grounded for now. Alliances, especially Air France and KLM-led SkyTeam, have been looking for having an Indian LCC (low-cost carrier) on board. But they were informally told to first accept AI before getting any other desi player.
 On the other hand, Hogan has said that Etihad's business model, which is a combination of organic growth, codeshares and minority equity investments, was proving very effective in building passenger numbers, revenue and profit for all its partners. Etihad owns 29% of airberlin; 40% of Air Seychelles; 9% of Virgin Australia and under 3% of Aer Lingus. "It is easier, faster and far more cost effective to grow through one-on-one partnerships with established, respected carriers than it is to rely totally on our own resources, and to start from scratch in every market we serve."
http://timesofindia.indiatimes.com/business/india-business/Legacy-airline-alliances-have-outlived-their-usefulness/articleshow/19389719.cms

Cochin University of Science and Technology: 'Flying high' in the time of debt

KOCHI: Empty coffers have not stopped the Cochin University of Science and Technology (Cusat) from doling out largesse to its syndicate members.
 The university, which is reeling under a Rs 48.18-crore budget deficit, has decided to give air fare to syndicate members, some of whom who belong to Thiruvananthapuram and Kozhikode, to attend meetings. So for the syndicate meeting, scheduled on April 11, the university will have to shell out anything between Rs 4,000 and Rs 8,000 for a member flying in from Thiruvananthapuram, which is almost the cost of an air ticket to Mumbai. A flight ticket from Kozhikode to Kochi, meanwhile, will cost between Rs 2,000 and Rs 6,000.
 Surprisingly, none of the other universities in the state grant the same privilege to their syndicate members, despite some having provision for the same.
 "Recently, the syndicate decided to give air fare to syndicate members attending meetings or any syndicate sub-committee meetings," said Cusat registrar A Ramachandran. The university holds about 5 to 6 such meetings a month. Surprisingly, the decision has come at a time when Cusat's non-plan deficit has gone from bad to worse. From a deficit of Rs 7.37 crore in March 2011 it has shot up to Rs 48.18 crore in March 2013. To meet the deficit, Cusat has even withdrawn money from employees' provident fund and hiked student fees.
Sources said that the issue of giving air fare to syndicate members was put before the Cusat syndicate after the vice-chancellor ordered an inquiry into the norms and practices followed by other universities regarding sanction of air fare to syndicate members.
 Accordingly, Cusat sent letters to Kerala, Calicut and MG universities, enquiring about practices followed by them regarding air fare to syndicate members. While MGU replied in the affirmative, Calicut University said that the university statute does not speak about air fares for syndicate members. But the university clarified that tha same can be given with prior sanction from competent authorities. Meanwhile, Kerala university replied that no syndicate member had availed the air fare.
 Incidentally, even in Cusat, in the past, no syndicate member travelling within Kerala was given air fare. A syndicate note states that in the past, three Cusat syndicate members were sanctioned air fares from Delhi but "instances of sanctioning air fare within the state could not be traced".
 The Cochin University Teachers Association (CUTA) has criticized the move. "Even as the university is reeling under financial crisis, syndicate members are looking at their comfort and wasting money," CUTA president K Sreekumar alleged.
http://timesofindia.indiatimes.com/city/kochi/Cochin-University-of-Science-and-Technology-Flying-high-in-the-time-of-debt/articleshow/19389425.cms
 

GMR to team up with Megawide to bid for Philippines airport project

Megawide Construction Corporation, a Philippines-based company, has teamed up with GMR Infrastructure, to bid for the development of Mactan-Cebu International Airport.
 According to the terms for the bidding, a potential bidder has to have a local partner. The tie up is part of the arrangement.
According to filings in the Philippines exchange by Megawide, the pact will come up only when the airport contract is awarded to them.
The project bid is for construction of a new passenger terminal and related infrastructure.
The bid has been currently deferred by the local government.
The Bangalore-based diversified infrastructure company GMR group, has developed two airports in India — Hyderabad and Delhi — and is associated with some projects abroad.
When asked about the development and its implications, a GMR official said that the bid itself has been postponed and they would not like to comment on it now.
http://www.thehindubusinessline.com/companies/gmr-to-team-up-with-megawide-to-bid-for-philippines-airport-project/article4581364.ece

Unfazed Singapore Airlines plans to increase services to India

Singapore Airlines is planning to add more capacity and increase its services across India despite the entry of low-cost Southeast Asian airlines AirAsia in the Indian market.
 “We are close to a hundred flights and hope to achieve the landmark this year,” Singapore Airline's general manager (India) G M Toh stated in an earlier interaction. Singapore Airlines hopes to introduce services to cities such as Pune, and add services to Delhi.
 Singapore Airlines will face intense competition from AirAsia, which will launch its India operations later this year and Tiger Airlines, in which it holds a stake. Another challenge will be posed by Air India, which plans to start direct flights between Delhi and Melbourne this year.
 Toh, however, is unfazed.
 “Singapore is a hub for low-cost airlines in Southeast Asia and these airlines account for about 25 per cent of the air traffic at Changi airport. We are used to competition in our backyard. Low fares is not the only factor determining passengers' travel choice and there are factors like schedule, service and reliability. Low fares are good for grabbing attention but all businesses have to be sustainable and in the long run, must cover the costs of running their operations,” he stated.
 India and Singapore on Tuesday revised an air services agreement to allow more flights between the two countries.
http://www.business-standard.com/article/companies/unfazed-singapore-airlines-plans-to-increase-services-to-india-113040300394_1.html
 

Find buyers for 24 aircraft not delivered to Kingfisher yet, lenders tell Airbus

Oriental Bank of Commerce (OBC) has asked Airbus Industrie to find buyers for the remaining 24 of the 30 Airbus aircraft ordered by Kingfisher Airlines (KFA) and are pending delivery from the aircraft manufacturer.
 Three public sector lenders — Oriental Bank of Commerce, United Bank of India and Corporation Bank — had extended pre-delivery payment (PDP) financing for 30 Airbus aircraft ordered by KFA.
 Of this 30 aircraft, for which PDP was extended by three banks, KFA had already taken delivery of six, it is learnt.
Buyer option
“We have already served a notice to Airbus. They had given us an option to take delivery or assign a right to them to find a buyer.
“We have now asked them to find a buyer”, S. L. Bansal, Chairman and Managing Director, OBC, told Business Line on Wednesday. KFA had turned a non-performing account for OBC in the December quarter last year.
 PDP financing refers to financing of progress payments that a purchaser makes to a manufacturer while new aircraft are being built.
 It is in the nature of advance and does not form part of working capital funding.
 No specific collateral
There was no specific collateral obtained directly from KFA, but the funding was extended on the back of a guarantee furnished by the airline manufacturer.
 Bansal confirmed that OBC had asked Airbus to find a buyer on behalf of all the three banks that had gone in for PDP financing for KFA.

He pointed out that OBC was not in the airline business and, therefore, not well equipped to take delivery of aircraft and then find a buyer for it to recover its dues arising from KFA account.
 The total exposure of these three banks (for KFA aircraft buy) towards PDP financing was Rs 150 crore as on date, Bansal said.
 “It is a complex process. But we are working on it,” he said when asked about the recovery of its dues from KFA.
A 17-bank consortium has exposure of about Rs 7,000 crore to the grounded KFA. Most of the funding came in the form of working capital financing.
State Bank of India, which heads the consortium, has begun recovery proceedings and has started offloading certain shares in the market that had been pledged as collateral by the UB Group, owners of KFA.
http://www.thehindubusinessline.com/industry-and-economy/banking/find-buyers-for-24-aircraft-not-delivered-to-kingfisher-yet-lenders-tell-airbus/article4577488.ece
 

Banks serve ‘loan recall notice’ on Kingfisher Airlines

State Bank of India on Wednesday said that a loan recall notice has been served on the defunct Kingfisher Airlines (KFA) on behalf of the consortium of 17 lenders.
 “We have served the loan recall notice. The notices under the Sarfaesi Act, DRT and other processes will follow.
“Also, the recall notice was served just yesterday, so it will be very difficult to estimate the time that the recovery process will take,” Shyamal Acharya, Deputy Managing Director, Mid-Corporate group, State Bank of India, told newspersons on the sidelines of an event hosted by Gems and Jewellery Export Promotion Council.
 Sarfaesi (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act and DRT (Debt Recovery Tribunal) are two routes that lenders can resort to for recovering bad loans.
 KFA, the airline promoted by Vijay Mallya, owes about Rs 7,000 crore to lenders. SBI as the consortium leader has the maximum exposure to Kingfisher at Rs 1,800 crore.
 Pledged shares
Banks have already sold around 7.3 lakh of the 26 lakh United Spirits shares pledged with them by Mallya, who is also the promoter of United Spirits, a subsidiary of United Breweries Holdings.
Acharya refused to disclose the amount of money that banks have realised so far from the sale of shares. However, a senior official informed that the average realisation is about Rs 1,900 a share. Banks have already sold all the shares of Mangalore Chemicals and Fertilisers pledged by Mallya, realising around Rs 100 crore.Reacting to Tuesday's Bombay High Court order of no interim relief to KFA-promoter, Acharya said the lenders will continue to sell the shares in tranches.
 Diageo deal
Concerns that the USL share sale by banks might hurt Mallya’s plans to sell his stake in the liquor company to Diageo (for about Rs 11,000 crore), Acharya said, “We are not a party to the deal and we cannot wait. There is no stay (from the court on selling of shares) and so there is no reason we will not do that.”

Also, it also would not be feasible to participate in the open offer as the price is set at Rs 1,440 a share by Diageo to acquire USL. The current market price of USL is much higher than the open offer price. The USL shares on Wednesday closed down two per cent at Rs 1,822.60 on the Bombay Stock Exchange.
The open offer commences on April 10.
According to Acharya, the core group has given a floor price to be protected in the share sale, but refused to share the same.
“SBICAPS Trustee is the trustee of the shares… they have been given a floor-price (by the core group). They are selling in lots and we have got good prices so far," he said.
http://www.thehindubusinessline.com/industry-and-economy/banking/kingfisher-lenders-to-continue-selling-united-spirits-shares-sbi/article4576800.ece

Farmers mull legal action on airport project

Kozhikode: The National Green Tribunal order granting interim stay on the Aranmula airport construction has come as a morale booster for hundreds of farmers fighting to protect the largest remaining paddy cluster in Wayanad,which has been selected as the site for the proposed feeder airport project at Panamaram.
Emboldened by the court order,the farmers collective is mulling similar legal action and has already served notices to the state chief secretary and the industries department as a precursor to taking legal recourse if the state government went ahead with the project.
Lending credence to their conservation stand,the Kerala State Biodiversity Board (KSBB)has written to chief minister Oommen Chandy expressing concerns about the project.vironmentalists.
KSBB member secretary K P Lalad said,The proposed site is not suitable for an airport as the area is ecologically fragile.We are not against a feeder airport in Wayanad.The state should consider other areas which do not have wetlands or a fragile ecosystem, he added.
Meanwhile,KSIDC officials told TOI that the consultant selected to conduct the techno-economic feasibility study and the environmental impact assessment study of the airport will commence the work from next week onwards.
No change in airport project C hief minister Oommen Chandy on Wednesday clarified that the state governments stand on the Aranmula airport remained unchanged,despite a green tribunal stay on the greenfield project.The UDF government was of view that the airport should come at Aranmula,hence it would support the project,Chandy added.
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=5&sectid=edid=&edlabel=TOIKRKO&mydateHid=04-04-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00502&publabel=TOI
 

Bill to replace DGCA possible

New Delhi: A bill to replace the DGCA by a new aviation regulator with full operational and financial autonomy is likely to be tabled in Parliament in the next part of the Budget Session starting later this month,official sources said on Wednesday.
The new regulator,to be called the Civil Aviation Authority (CAA),would administer and regulate civil aviation safety and managing safety oversight over air transport operators,air service navigation operators and operators of other civil aviation facilities.
Interestingly,the proposed CAA,like the DGCA,would also deal with matters relating to financial stress on safety of air operations.AGENCIES
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=9&sectid=edid=&edlabel=TOIKRKO&mydateHid=04-04-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00913&publabel=TOI

Air carriers see a bright summer

New Delhi: Indian carriers have finally managed to stop the constant fall in domestic flights being witnessed ever since trouble erupted in nowgrounded Kingfisher Airlines (KFA) in late 2011.While the number of domestic weekly flights had been falling since then,this summer airlines will witness more flights than the winter schedule both minus KFA.
The Directorate General of Civil Aviation (DGCA) on Tuesday cleared 11,541 weekly domestic flights this summer 5.5% more than the winters figure of 10,935 with only Air India (domestic) reducing flights and all others increasing them.
Low cost carriers IndiGo has the maximum increase in capacity,followed by GoAir and SpiceJet with each adding flights in the range of 10% to 15%.The Jet Group has a marginal increase of 2%.
Last summer saw over 13,000 weekly domestic flights as KFAs contribution in this figure was a substantial 2,500 flights.So summer 2013 will see 11% fall from last summer.But aviation industry sources say KFA was operating a very erratic schedule since late 2011 and the fair comparison will be between the outgoing winter schedule to coming summer as these two do not account for any KFA flight.
LCCs are growing aggressively as the demand now is for budget flying only.Almost 80% of entire domestic air travel is on budget carriers.AI,which does not have a domestic LCC,is clearly out of place and has cut flights.Jet Airways has increased number of weekly flights from 2,515 (in outgoing winter schedule) to 2,802 in coming summer while reducing JetKonnects flights from 854 to 639.So their rise is very small and a lions share of increase in flights from winter to summer is coming from pure LCCs,led by IndiGo, said an airline official.
No pay,no work: Pilots threaten AI
The pilots of Air India (domestic) will ask the airline for timely pay,failing which they will implement the no-pay-no-work principle.The Indian Commercial Pilots Association is going to give a deadline to the management by which they want salary payment to be regularized,after which they may refuse to work unpaid.A source claimed the pilots have not been paid the flying allowance (which accounts for almost 80% of the total pay) since December.TNN
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=9&sectid=edid=&edlabel=TOIKRKO&mydateHid=04-04-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00902&publabel=TOI

Cancelling air tickets now a costly affair

MUMBAI: Alongside heavy discounts on airfares, airlines are now setting up major deterrents to cancellations. Jet Airways on Tuesday revised its cancellation charges from a flat Rs 1,050 on alldomestic flights to penalties ranging from Rs 200 to Rs 2,000. According to travel agents, as per Jet Airways' new structure, the higher the fare, the lower will be the cancellation charge.
The lowest economy fare tickets will be non-refundable. The tickets priced a little more than the cheapest would attract a cancellation charge of Rs 2,000; the upper economy Rs 1,000; and premium class tickets the lowest penalty of Rs 250 to Rs 500.
"This is how most cancellation charges are slotted broadly. There are minor variations depending on the flights passengers book," said Ali Ahmed of Cupid Travels. "On the whole, the economy traveller will pay a higher cancellation charge. The cheaper tickets come with a heavy clause."
A Jet Airways spokesperson said the charges have not been increased on an ad-hoc basis. "The charges depend on the kind of fare and flight. There is a range of penalty."
Tour operators said the move might set a precedent for other airlines. If that happens, cancelling cheap tickets would lead to loss of more than half the money. "Last year, the cancellation fee on the domestic sector was hiked from Rs 750 to Rs 1,050. One airline took the step and others followed," said Rajesh Rateria, managing director of Cirrus Travels. "That may happen again." Another agent flyers may not book much in advance if charges go high on every airline.
Over the past four months, most airlines have been proffering heavy discounts on airfares. Spice Jet started the trend by announcing a fare of Rs 2,013 across sectors. Other airlines soon followed the lead. Jet Airways too offered many seats on special low fares. It is still providing some seats on various sectors for fares ranging from Rs 4,000 to 5,000.
http://timesofindia.indiatimes.com/business/india-business/Cancelling-air-tickets-now-a-costly-affair/articleshow/19351442.cms
 

Civil aviation ministry tried to thwart AirAsia's India plans

NEW DELHI: As Malaysian budget carrier AirAsia readies to spread wings in India announcing hiring plans on Wednesday, documents available with ET reveal that the civil aviation ministry had tried to thwart the foreign airline's India plans.
 The aviation ministry had disapproved of AirAsia's India entry, arguing that the Indian promoters — Tata Sons and Arun Bhatia — should have first set up an airline company, obtained a flying permit and then sold off 49% to the foreign partner, minutes of foreign investment proposal-clearing committee, reviewed by ET, reveal.
 "The proposal is supported in principle, but the applicant should first set up the company, obtain licence from ministry of civil aviation and then divest to a foreign collaborator in order to follow the policy intent," the civil aviation ministry had argued on March 6 in the meeting of Foreign Investment Promotion Board (FIPB), which had taken up AirAsia's proposal for clearance. Interestingly, AirAsia India still hasn't approached the civil aviation ministry for a noobjection certificate (NOC), a prerequisite for getting a flying permit — though has shortlisted the name of an India CEO and will also hire cabin crew next week in Chennai.
 The aviation ministry had also asked the commerce ministry to issue a clarification to the policy on aviation FDI, which would apply to "JVs to be incorporated". "This would be required not only for the policy in letter, but also in spirit. This was the Cabinet note, which elaborated the background for the policy amendment had clearly delineated that the amendment was aimed at infusing capital into existing cash-starved aviation companies," the aviation ministry had further argued.
 Later on March 26, when the government gave the final nod to setting up AirAsia India in partnership with Tata Sons and Telestra Tradeplace's Arun Bhatia, Union civil aviation minister Ajit Singh said that this three-way venture could face some procedural problems. "The Air Asia-Tata airline JV is facing procedural issues. We will support the joint venture," Singh said at a CII conference.
 Singh has been pointing out at impending procedural issues for the JV ever since the proposal got FIPB clearance on March 6, without clearly enlisting what they could be.
 The minutes further reveal that the industry ministry or Department of Industrial Policy and Promotion (DIPP), shot down the aviation ministry's opposition saying that the policy allowing foreign carriers to buy 49% stake in Indian airlines "did not refer only to the existing airlines" and that the "policy needed no clarification." "...the spirit of the FDI policy was to get fresh investment into the country," the DIPP secretary says, as recorded in the minutes.
 Earlier, ET had reported that a host of bureaucratic hurdles could come in the way of AirAsia's flying plans as a miffed civil aviation ministry may cite the airline's losses on south-east Asian routes and lack of airport infrastructure in India to delay or even deny key permissions. Some of the country's leading airlines have also indicated their opposition to AirAsia's aircraft purchase programme, saying they could lobby with the ministry to scuttle the purchases if they are large in number.
 AirAsia plans to scale up rapidly after it launches operations from its Chennai base with three or four A320s, a development that is being watched not only by budget airlines like IndiGo, but also by full-service carriers like Air India, which were able to garner better yields after the grounding of Vijay Mallya-promoted Kingfisher AirlinesBSE -0.86 % since October. The airline, which will be based out of Chennai and will cater primarily to Tier-2 and Tier-3 cities, expects to begin operations by the fourth quarter of calendar year 2013 after all approvals are in place. The partners will initially invest $30-50 million, or over .`250 crore in the venture.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/civil-aviation-ministry-tried-to-thwart-airasias-india-plans/articleshow/19369679.cms
 

Lion Air Plans Asia to Australia Ventures With 1,000 Planes

Lion Mentari Airlines plans to set up ventures across Asia and Australia to expand after placing orders of more than $45 billion with Airbus SAS and Boeing Co. (BA) in the past two years.
Indonesia’s biggest private carrier is considering partnerships in Thailand, Myanmar, and Vietnam, Commercial Director Edward Sirait said in an interview yesterday. Lion Air, which has the world’s biggest order backlog for 559 narrow-body aircraft, aims to have 1,000 planes in 10 years, he said.
.The carrier’s plan mirrors the strategy of AirAsia Bhd. (AIRA) that has set up ventures across the region to become Southeast Asia’s biggest discount operator. Singapore Airlines Ltd. and Qantas Airways Ltd.are among companies that have also started budget airlines as Asia’s economic growth enables more people to fly for the first time.
“The outlook for budget carriers in the region is excellent,” Shukor Yusof, a Singapore-based aviation analyst at Standard & Poor’s, said by phone today. “You are looking at an annual growth of 12 to 15 percent for discount carriers in this region.”
Lion is also setting up a Malaysian venture to challenge AirAsia’s grip on the region’s budget travel market. Malindo Airways, which will draw its fleet from planes ordered by Lion Air Group, aims to start flights this year.
Virgin, Tiger
Lion Air, based in Jakarta, is also considering a venture in Australia, as Qantas seeks to defend its 65 percent market share in that country amid rising competition. Virgin Australia Holdings Ltd. (VAH), which sold a stake to Singapore Air last year, is also seeking to build on alliances by acquiring Tiger Airways Holdings Ltd. (TGR)’s Australian unit and regional carrier Skywest Airlines Ltd. (SKYW)
State-owned PT Garuda Indonesia (GIAA) last week said it would start a Sydney-to-London flight via Jakarta in the fourth quarter, competing with Qantas and Singapore Air. Qantas has formed an alliance with Emirates to cut travel times to Europe by using the Gulf carrier’s Dubai hub.
More than a dozen discount carriers began operations in Asia-Pacific in the past 15 years. Budget carriers’ market share in Asia-Pacific rose to 24 percent last year from 1.1 percent in 2001, according to CAPA Centre for Aviation, an industry consultancy. Total traffic for the region will expand 6.4 percent a year during the next 20 years, Boeing has forecast.
“The venture in Myanmar and Vietnam could work as those are the markets that have not been penetrated enough,” S&P’s Yusof said.“With the number of aircraft that they are taking, they should do something there.”
Narrowbody Planes
That has spurred airlines to order more aircraft. AirAsia has built a backlog of 359 narrowbody planes, according to Bloomberg Industries. The Malaysian carrier has set up ventures in the Philippines, Japan, Thailand, India and Indonesia.
“The economic growth in this region has been strong and this will translate to air travel demand,” Sirait said. “Lion Air is anticipating this by ordering these aircraft early. We want to set up partnerships in a number of countries.”
Asia will be able to take in more aircraft as economic growth and a population of more than 3 billion people will sustain travel demand, Tony Fernandes, head of AirAsia, said last month. The region, whichhas 10 times the population of the U.S., has about a third of the number of aircraft, according to Fernandes.
Lion Air started operations from Indonesia in 2000 with one aircraft, according to the airline’s website. The carrier was the launch customer for Boeing’s 737-900ER, and currently serves more than 36 destinations.
Lion Air agreed to buy 234 Airbus planes last month, its second commitment in two years to purchase more than 200 planes. Most aircraft on its fleet will be used to service Indonesian operations, Sirait said. The airline has a total of 700 planes on order, including turboprop aircraft.
“The plan A that we have is to put all these planes that we have ordered into operation,” Sirait said. “We also have plan B: if someone is keen to lease our planes of course we will do it.”
http://www.bloomberg.com/news/2013-04-01/lion-air-plans-asia-australia-ventures-using-1-000-plane-fleet.html
 

Domestic airlines to operate fewer flights during summer

The seven domestic airlines will operate almost 11 per cent fewer flights in this summer schedule, which extends till October.
The latest data released by the Directorate General of Civil Aviation (DGCA) show that the domestic airlines will operate 11,541 flights every week, down from close to 13,000 weekly flights operated during the last summer schedule. Globally, the summer schedule runs from the last week of March till the last week of October.
 “We may see short bursts of price discounts being offered by airlines, but, by and large, fares may remain high and stable,” said Amber Dubey, Partner and Head Aviation, KPMG, when asked whether the decrease in the number of flights would see domestic fares head northwards.
 Airline officials claimed that the decline in the number of flights being operated during the summer schedule was mainly due to Kingfisher Airlines halting operations. Kingfisher operated over 2,000 weekly flights in summer schedule 2012. The airline ceased operations on October 1 last year, after it was unable to pay wages to its employees.
However, though the airlines will operate a lesser number of flights, some of them have added new services on certain routes. Air India (domestic) has added a new service linking Bangalore with Tirupati three times a week.
And, from April 7, IndiGo will operate a fifth daily flight linking Chennai and Mumbai apart from operating a second daily flight on the Mumbai-Bhubaneshwar-Mumbai and a second flight on the Mumbai-Vadodara-Mumbai sectors. Indigo will operate the maximum number of flights per week at 2,821, followed by Jet at 2,802, and SpiceJet at 2,467.
http://www.thehindubusinessline.com/industry-and-economy/logistics/domestic-airlines-to-operate-fewer-flights-during-summer/article4573589.ece?homepage=true&ref=wl_home
 

Aranmula: Green verdict is a reality check on UDF, LDF

The first case related to Kerala in the Chennai Bench of the National Green Tribunal has turned into a matter of a reality check not only for the state and Central governments,  but also for both the UDF and the LDF as all of them have their share in the  proposed airport at Aranmula.
“The order by the National Green Tribunal is a relief and a recognition for the fight. Aranmula is a symbolic fight against the clearing of our hills and  filling of our wetlands. It’s a shame on the state government to take share in such a controversial project. The government should withdraw from the project in the wake of the latest order,” said poet Sugatha Kumari who is in the forefront of the anti-airport movement.Mullakakra Ratnakaran, former minister and member of the Assembly committee on  environment, asked how a cabinet can decide on becoming part of a company which breached a series of laws and Acts put forth by the state itself.
“One of the most baffling facts about the project is the speed with which they are getting clearance from various boards and departments. Even when state projects like Vizhinjam Harbour are lagging behind in getting environmental clearance, Aranamula’s pace is amazing despite the objection put forth by the Assembly committee on environment. The court order should be an eye opener for the state government,”  he said.
Though the local population is up in arms against the project, local MLA K Sivadasan Nair and local MP Anto Antony are its biggest supporters.
“Many persons offered their support to the Aranmula airport in the name of development and they were afraid of being branded ‘anti-development.’ We have many examples in the past where projects supported by all sections were not suitable to society.  The Silent Valley project which was scrapped by the late prime mister Indira Gandhi is the best example for this,”  said AICC member Philipose Thomas, one of the few Congress leaders from the area who came out against the project.
http://newindianexpress.com/states/kerala/article1528180.ece

Tribunal order a warning: BJP

BJP State unit president V. Muraleedharan said here on Tuesday that the stay ordered by National Green Tribunal on the construction of the Aranmula airport was a warning against the government that gives in to moneybags. It was a moral victory of the people against wrong policies of the government that surrendered agricultural and forest land to encroachers.
http://www.thehindu.com/todays-paper/tp-national/tp-kerala/tribunal-order-a-warning-bjp/article4575683.ece

Green Tribunal’s red light to Kerala’s greenfield airport near Sabarimala

The Regional Bench of the National Green Tribunal here on Tuesday stayed a Kerala government notification giving nod to a big private airport project at Aranmula in Pathanamthitta district by acquiring around 500 acres of wet and industrial land.
The tribunal, comprising judicial member Justice M Chockalingam and expert member Professor R Nagendran, also restrained the KGS Aranmula International Airport Limited from carrying any related activities for construction of a greenfield airport near Sabarimala, until further orders were given.The green tribunal was passing interim orders on an application from Aranmula Heritage Village Protection Action Council seeking to set aside the order of Kerala government granting in-principal sanction in 2010 for the proposed the `2,000 crore airport project and its subsequent notification in the year 2011.
The applicant contended it was aggrieved by the action of the authorities allowing the construction of a private airport in violations of provisions of the Kerala Conservation of Paddy and Wet Land  Act, 2008 and other relevant laws.
When the application came up on Tuesday, Era Meiyappan, counsel for the applicant submitted before the bench that the private company had purchased the property in question including paddy fields along with trees. The petition contended that the company had diverted a water channel which ran to river Pamba.
The company had applied to the authorities concerned and obtained permission to build the green field airport in a fast manner.
The company had subsequently  commenced construction activities in the area violation of the environment law, the petitioner said.
“The construction activity is fully detrimental to ecology and environment of the area. The said activities caused environmental degradation. Under these circumstances, if the activities of the company are not stopped, it would cause huge environment impact,” the counsel contended.
The National Green Tribunal said that it was satisfied that the petitioner had made a prima facie case for grant of interim stay of the notification and also other connected activities
http://newindianexpress.com/cities/chennai/article1528121.ece
 

Green tribunal stays airport work

The National Green Tribunal, Southern Bench, on Tuesday stayed all activities related to the construction of a greenfield airport at Aranmula until further orders.
The tribunal also stayed a Kerala government notification converting 500 acres of wetland into industrial land in Pathanamthitta district and barred other connected activities of KGS Aranmula International Airport Ltd. It granted an interim injunction restraining the private company from proceeding with further construction on the land in question.
The Bench, comprising judicial member Justice M. Chockalingam and expert member R. Nagendran, admitted an application filed by the Aranmula Heritage Village Protection Action Council challenging a Kerala government order granting in-principle sanction in 2010 for the proposed airport and a subsequent notification in 2011. In an application filed through counsel Ramesh Kumar Chopra, the Aranmula council said the government’s action allowing the private airport violated provisions of the Kerala Conservation of Paddy and Wetland Act, 2008 and other laws. It sought a direction against constructing the airport at Aranmula on wetland and paddy field and to retake the excess land from the company by invoking provisions of the Kerala Land Reforms Act.
“In view of the policy decision of the Union government, no greenfield airport can be constructed or operated within a prohibited aerial distance of 150 km from an existing civilian airport without prior permission. In the absence of any special permission from the Union government, the company has no right to proceed with the construction,” the applicant said.
When the matter came up for hearing, Era Meiyappan, counsel for the applicant, submitted that the private company had purchased the property, including paddy fields, wetlands, and trees. They diverted a watercourse that runs into the Pampa and also converted all paddy fields for the construction of the airport. “The construction activity is detrimental to ecology and environment. If it is not stopped, it will cause huge environment impact,” the counsel contended.
After hearing the counsel’s submission, the tribunal said it was satisfied that the petitioner had made a prima facie case for grant of interim stay
http://www.thehindu.com/todays-paper/tp-national/tp-kerala/green-tribunal-stays-airport-work/article4575671.ece
 

Green tribunal stays Anil Ambani-backed KGS project

The National Green Tribunal has stayed the Rs 2,000-crore Aranmula private airport project in Kerala, which is being developed by Anil Ambani-backed KGS Group.
 The Tribunal has stopped any construction work at the site and stayed the government's order to convert 500 acres for industrial purpose till further orders.
 "It might be some ex parte order and we will face it. We have the necessary approvals from the government for the project and the state government is also part of the project, now,” said Gigi George, managing director, KGS Group. The Kerala government has a stake in the project and the Malaysian-government-owned Malaysia Airports Holdings Bhd was reportedly planning to pick a stake in it.
 The Tribunal's order was in response to a petition filed by the Aranmula Heritage Village Protection Action Council, which said the construction of a private airport was in violation of the provisions of the Kerala Conservation of Paddy and Wet Land Act, 2008, Kerala Land Reforms Act, 1963, Environment Protection Act, 1986 and Land Acquisition Act.
 In the petition, a copy of which is available with Business Standard, the petitioner said the “no-objection certificates and permissions were obtained by misrepresentation of facts. Unauthorised and illegal filling of paddy and wet land is made and by misleading the government and authorities the clearance was obtained”.
 The 500 acres notified to be acquired for the airport is consisted of vast extent of paddy and wet lands which are to be preserved by the state government, the petitioner said.
 The airport is expected to take off in 2014. The airport is being set up in 700 acres in Aranmula, Pathanamthitta district, the pilgrimage capital of Kerala situated between Thiruvanathapuram and business city of Kochi.
 Anil Ambani-led Reliance Group has a 15 per cent stake in the Chennai-based KGS Group. The airport will be privately owned and managed and it is designed to handle 1,000 passengers at a time.
 The airport is located one hour drive away from Sabarimala, the second largest pilgrim centre in India with annual pilgrims of around 60 million.
http://www.business-standard.com/article/companies/green-tribunal-stays-anil-ambani-backed-kgs-project-113040200275_1.html