New terminal at Chennai Airport goes on full stream

The new terminal at Chennai Airport today started operations in full stream with the departure and arrival on the same day. On Thursday early Morning Kalanithi Maran owned SpiceJet took off with two flights. Meanwhile, the national carrier Air India said that it will shift all its domestic operations to the new terminal from old terminal.
 SpiceJet flights left the new terminal at Chennai to Pune and Kolkata at around 5 am on Thursday. The take-off of two SpiceJet aircrafts marked the start of regular departure of domestic flights from the new Chennai airport terminal, which was inaugurated by the Vice President of India in February this year.
 SpiceJet and Jet Airways will shift their operations to the new facility on Wednesday followed by Indigo and Go Air on Thursday. AAI had begun shifting arrival operations to the new terminal from March 21.
 Meanwhile, Air India, the National Carrier, said that it will shift all its domestic operations to the new Domestic Terminal Complex at Chennai Airport, with effect from April 12, 2013.
 Air India will start flying from the new Domestic Terminal by operating its first flight AI-549 (Chennai-Port Blair) onwards from April 12, 2013.
 However, the passengers travelling on the domestic sectors on the international flights will continue to depart/arrive at the Anna International Terminal, said in the release.
 Air India has already shifted all its domestic arrivals to the New Terminal Complex effective April 11, 2013. The International flights of Air India will continue to operate from the Anna International Terminal.
 It may be noted, earlier the Airport Authority of India has said that it is looking at the potential of the Chennai Airport becoming a hub for airline companies in South East Asia region. The new terminal was set with an investment of around 2015 crore as compared to the original estimations were of Rs 1808 crore. The authority is expecting the period for pay back to be in nearly 10 years.
 The new domestic terminal would have a capacity of 10 million, while for international it is 4 million. The combined area of the new terminals is around 1,33,462 sq mts.

The handling capacity in domestic terminal would go up to 16 million and the international terminal to 7 million per annum, with the new terminals. This would help the authority to handle the increased passenger volume and cope with future growth and demand, said Agrawal.
 He added that the current capacity utilisation is around 12.5 million passengers out of a capacity of 23 million and the utilisation is expected to reach 100 per cent by 2017-18. The airport has a potential to increase the capacity to 40 million, beyond which it would require a greenfield project, he added.
http://www.business-standard.com/article/current-affairs/new-terminal-at-chennai-airport-goes-on-full-stream-113041100382_1.html

AAI refuses to give NoC to Kingfisher Airlines

The Airports Authority of India (AAI) has declined to give a no-objection certificate (NOC) to Kingfisher Airlines (KFA).
 Yesterday, the airline had sought regulatory approval to revive operations and had given its plan to the Directorate General of Civil Aviation (DGCA) on infusion of funds and revival of operations.
 Kingfisher Airlines has got a NOC from airline operators (Delhi International Airport Limited and Mumbai International Airport Limited, etc.) and maintenance, repair and overhaul (MRO) companies. However, it is yet to get NOCs from AAI, tax authorities, banks and the service tax departments because the airline still owes due to them, said DGCA sources.
 Responding to the airline's request for permission to fly on a cash-and-carry basis, AAI chairman V P Agarwal said, "There is no question of allowing Kingfisher to operate on cash-and-carry. It must clear dues of Rs 290 crore and furnish bank guarantees. Clearing dues is definitely a prerequisite before taking matters forward."
 Agarwal added the airline had not been replying to queries on settlement of dues.
 For the first time, the United Breweries (UB) group has secured stakeholders' permission to infuse capital of Rs 652 crore in the airline. However, experts doubt if this amount would be sufficient to start even truncated operations with a fleet of seven planes.
 "It depends on how soon UB group chairman Vijay Mallya makes the investment and a lot of it depends on successful closure of the Diageo deal," said an airline expert.
 The Centre for Asia Pacific Aviation report on Kingfisher's restructuring (August 2012) notes, "KFA has total debts of $2.49 billion including bank debts (approximately $1.1 billion), promoter debts, trade debts and other short-term liabilities. The accumulated losses are $1.9 billion (as on June 2012).
 KFA is expected, in its plan, to start operations from Delhi and fly on routes such as Mumbai, Pune and Bangalore. According to airline experts, there is a demand and potential for full-service carriers in the Indian market and this is currently only served by Jet Airways. Experts also feel the brand is still popular among travellers opting for premium service.
 After meeting DGCA chief Arun Mishra, KFA's CEO Sanjay Aggarwal had told reporters yesterday, "We have shared the funding and traffic plans. The initial funding to restart the airline will come from the (parent UB) Group. We have also requested that our (flying) licence be renewed."
 Mishra had said, "We will examine the proposal and take a call after that only. This time, UB Group has secured stakeholders permission to put funds in KFA. It has even offered to pay salaries to staff till January 2013."
 According to KFA's revival plan, the airline would resume limited operations with five Airbus A-320 and two turboprop ATR aircraft and gradually step up its operations by increasing the number of planes to 20.
 Although Aggarwal did not say by when he planned to relaunch the flights, sources said KFA cannot resume operations before the winter schedule starting October.
 Kingfisher's flying licence was suspended in October 2012, and the airline remains grounded following strike by its employees over non-payment of salaries.
http://www.business-standard.com/article/companies/aai-refuses-to-give-noc-to-kingfisher-airlines-113041200033_1.html
 

SpiceJet, JetAirways begin regular operations from new Chennai terminal

At 4.15 a.m., the departure area at the new airport terminal here was buzzing with activity. Eager passengers came flocking to board the SpiceJet flights to Pune and Kolkata respectively just past 5 a.m.
 The take off of two SpiceJet aircraft marked the start of regular departure of domestic flights from the new Chennai airport terminal. With this, the new terminal now handles both arrival and departure.
 It was a flawless take off and things went well, said H. D. Suresh, Chennai Airport Director.
 On the auspicious day of Amavasya on Wednesday, the first flight (of SpiceJet) took off from the new terminal. Today, along with SpiceJet, JetAirways too operated its flight from the new terminal. The other airlines — AirIndia, IndiGo and GoAir — will shift to the new terminal from Thursday in a phased manner, he told Business Line.
 The Chennai airport handles a total of 45 flights a day. Of this, today, around 60 per cent of the flights (both arrival and departure), were handled at the new terminal , he said.
 A number of check-in counters for each airline made the entire flow quicker. However, a big queue was seen at the security check.
For motorists dropping the passengers in the first floor (ground floor is for arrival), it is a long drive back to the city in the elevated structure, which stretches over a km. There were lengthy arguments between passengers and taxi drivers — the latter asking for extra money to travel the additional distance. “It was my first visit to the terminal, and I did not expect to travel such a long distance after dropping people,” said Perumal, a driver with FastTrack.There was some confusion among passengers travelling in flights other than SpiceJet. These passengers were dropped at the new terminal, but were told to go to the old terminal to take the flight, frustrating them early morning.
http://www.thehindubusinessline.com/industry-and-economy/logistics/first-flight-departs-from-chennais-new-airport-terminal/article4605334.ece

Air France Defers Delivery of Airbus A380s on Slack Demand

Air France-KLM Group (EAD) is looking to push back delivery of two Airbus SAS A380 superjumbos it has on order as Europe’s biggest airline reins in capacity growth amid sluggish demand.
The company, which has eight A380s in the fleet of its French division and four yet to arrive, disclosed the plans in documentation published ahead of a May 16 annual meeting. It also canceled a single A380 option that couldn’t be extended.
Air France-KLM is delaying deliveries of the double-decker as it pursues a three-year plan aimed at paring debt and lifting productivity to make it more competitive. The A380s in question had been due for handover in 2013 and 2014, and the carrier will now take just one plane in each year, according to Airbus.
“Given the uncertain economic environment and the persistent imbalance between transport supply and demand, the group has opted for a limited increase in capacity in both passenger and cargo,” Air France-KLM (AF) said in the AGM document. Delivery of one Boeing Co. 777 will also be delayed by a year.
Rate Reduction
The carrier’s main operational fleet stood at 407 aircraft as of Dec. 31, of which 167 are long-haul planes. Following capacity growth of just 0.6 percent last year, it plans increases of 1.5 percent in 2013 and 2 percent next year.
Airbus said in January it aims to win 25 A380 sales this year after securing only nine against a target of 30 in 2012 for a plane that seats 525 passengers in a three-class layout. The Toulouse, France-based company, which handed over the 100th superjumbo on March 14, has also cut the delivery rate for this year to 25 aircraft to help cope with wing repairs.
“We listen to our customers and try best to work along their current fleet needs,” Airbus spokesman Stefan Schaffrath said, adding that delivery dates for the last two Air France A380s are under discussion and “subject to confidentiality.” Deutsche Lufthansa AG (LHA) board member Carsten Spohr confirmed today that Europe’s second-biggest airline is sticking with a capacity freeze at its main German business. According to plans first revealed last year, Lufthansa will keep the fleet at 400 aircraft, with older models retired faster than originally planned as new, more fuel-efficient planes are delivered.
The freeze means the carrier will operate 20 fewer aircraft than once planned this year and double that number in 2014.
Cologne-based Lufthansa will trim the number of single- aisle models to three as part of a push to restore European profitability that will see the carrier fold its main brand’s short-haul flights outside Frankfurt and Munich into an enlarged version of the Germanwings low-cost unit.
Lufthansa’s Bombardier Inc. DHC-8s and Avions de Transport Regional ATR72s will go this year, followed by its Bombardier CRJ700 turboprops and Boeing Co. (BA) 737s in 2015, Spohr said.
French newspaper La Tribune reported earlier that Air France would delaying taking the A380s to conserve cash
http://www.businessweek.com/news/2013-04-11/air-france-defers-delivery-of-a380-superjumbos-on-slack-demand

Will not let KFA Fly unless dues paid: Airports Authority of India

MUMBAI: Kingfisher Airlines' attempt to resume operations is likely to be stonewalled by the state-owned Airports Authority of India (AAI), as the grounded airline still owes the airport operator Rs 300 crore.
AAI has threatened the airline that it will withhold the no-objection certificate to authorities till such time its dues have been cleared. Kingfisher submitted another revival plan to DGCA on Wednesday, the fifth, (since it was grounded in October 2012,) in a bid to seek a renewal of its operating licence. KFA plans to resume operations with seven aircraft. KFA has also proposed to clear nine month salaries of its employees soon.
"Kingfisher is yet to communicate with us regarding the NOC. AAI will not permit them to fly till such time they clear the dues. The airline has fooled everybody for long now," VP Agrawal, chairman, AAI, told ET.
Kingfisher is considering an option to seek permission to operate flights on a cash-and-carry basis till such time it clears AAI dues from the state-run authority. But Agrawal said Kingfisher need to first pay past dues and then fly.
http://m.economictimes.com/will-not-let-kfa-fly-unless-dues-paid-airports-authority-of-india/PDAET/articleshow/19503123.cms

SBI group firm sells over 85 lakh shares in Kingfisher

MUMBAI: SBICap Trustee Company, an SBI group entity, today offloaded more than 85 lakh shares of cash-starved Kingfisher AirlinesBSE -1.90 % in a transaction worth nearly Rs 7 crore.
 Recently, lenders of Vijay Mallya-led group's KingfisherBSE -1.90 % Airlines have begun selling other group firm shares pledged with them to recover their loans amid huge accumulated losses and soaring debt levels of the airline that is grounded since October 2012.
 The shares were pledged as security for loans taken by Kingfisher Airlines.
 As per data available with the stock exchanges, SBICap Trustee Company sold 85.17 lakh shares of the ailing carrier for Rs 6.70 crore in open market transactions today.
 The shares were sold by SBICap at an average price of Rs 7.87.
 A significant portion of the promoter shares in all UB group companies, including Kingfisher, are pledged with various lenders.
 Yesterday, Mangalore Chemicals and FertilizersBSE -0.95 % (MCFL), another UB Group firm, said about 8.44 per cent of the stake belonging to its promoter firm United Breweries HoldingsBSE -2.63 % has been sold by a lender.
 MCFL had said the shareholding of the promoter firm United Breweries Holdings has come down to 16.07 per cent from earlier 24.51 per cent in the company "on account of invocation of pledge created in favour of lender".
 MCFL, however, did not reveal the name of the lender which sold the United Breweries Holdings's 8.44 per cent stake comprising one crore shares in the company on April 1.
 Promoters -- United Breweries Holdings, United Spirit and McDowell HoldingsBSE -0.71 % -- together held a stake of 30.44 per cent in MCFL by the end of December 2012, nearly 70 per cent of their shares were pledged with various lenders.
 Last week, SBICap Trustee Company had sold one crore shares of MCFL, accounting for over 8 per cent stake, for Rs 38.5 crore in open market transactions.
 At the end of December quarter, State Bank of IndiaBSE -0.23 % held 2.82 crore shares or 3.49 per cent stake in Kingfisher Airlines.
 Shares of Kingfisher Airlines today surged 4.51 per cent to settle at Rs 7.88 apiece on the BSE.
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/sbi-group-firm-sells-over-85-lakh-shares-in-kingfisher/articleshow/19495901.cms