Tuesday, 31 July 2012

Airport services remain unaffected

Flight operations at Delhi airport remained unaffected even as power failed for a second day in a row on Tuesday afternoon. As soon as the power supply snapped at 1-04 p.m., all the essential services at the airport were shifted to diesel-run power back-up system.
There was a failure in power supply from the discoms. However, flight operations at Indira Gandhi International Airport were absolutely normal and there were no cancellations or delays. The entire power load of the airport was restored within 15-60 seconds. This was made possible by an extensive arrangement of power back-up and multiple redundancies put in place by DIAL,” said a Delhi International Airport Limited (DIAL) spokesperson.
The back-up system offers complete, multiple redundancy ensuring that critical lighting on runways, taxiways and elsewhere on the airside is never compromised. Diesel generated sets are being used to run all facilities at the airport and discom’s power will be used once it is restored and frequencies checked for aberrations,” the spokesperson added.
The total installed capacity of the back-up system at Delhi airport is 59.5 MW, which is well in excess of actual loads claimed the spokesperson.
Flight services remained largely unaffected even on Monday after the Northern Grid collapsed.

Air India wants stay on training of co-pilots lifted

The Delhi High Court on Tuesday issued notice to the Indian Commercial Pilots Association, an association of the erstwhile Indian Airlines pilots, on an appeal by Air India against an order by a Single Bench which had stayed training co-pilots to directly become commanders on advanced wide-bodied Boeing-777, Boeing-787 and Boeing-747.
Justice Suresh Kait had in May stayed the training on a petition by the pilots association submitting that the Air India was imparting training on these advanced aircraft to co-pilots directly, without giving them training on basic aircraft as commander, which was against the career progression plan.
However, the Bench had left untouched the training of those pilots who were undergoing it before the stay order. Issuing the notice, a Division Bench of the Court comprising Justice A.K. Sikri and Justice Rajiv Sahai Endlaw asked the association to file a reply to the appeal by September 4.
In its appeal, Air India said that due to the stay, the airline was losing money as these aircraft were grounded due to lack of required number of trained pilots.
As many as 200 commanders and 200 co-pilots were required to be trained to fly these aircraft but at present only 64 commanders and 62 co-pilots were undergoing training, the appeal said.

·  “Due to stay the airline is losing money”
·  Delhi High Court notice to pilots association
http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/article3710029.ece

Tiruchi-bound flights from Singapore take new ATS route

Flights from Singapore to Tiruchi and Kuala Lumpur to Tiruchi have begun using the new ATS (Air Traffic Services) route with effect from July 26. This has cut down flying time and enabled airline operators to save aviation turbine fuel.
With international operator Tiger Airways proposing to operate additional services to Tiruchi from Singapore, the number of flights taking the new route ‘V 30’ will soon increase to 23 per week.
The ‘V 30’ route introduced by the Air Traffic Management Directorate of Airports Authority of India (AAI) has facilitated the Singapore-Tiruchi and Kuala Lumpur-Tiruchi aircrafts to make a “straight in” approach for Instrument Landing System at Tiruchi airport runway 27, instead of making an ‘arc’ approach.
A senior AAI official here told The Hindu that Air Asia, Tiger Airways, and Air India that were operating flights in the Singapore-Tiruchi-Singapore and Kuala Lumpur-Tiruchi-Kuala Lumpur sectors were gaining operational advantage by saving fuel and time by using the new route.
The new ATS route has cut down flying time by 17 minutes from Singapore to Tiruchi, and from Kuala Lumpur to Tiruchi and reduced the distance by 44 nautical miles.
Fuel saved per flight was about 1,800 kilograms, the official said.
Currently, 21 services were being operated to Tiruchi from Singapore and Kuala Lumpur per week.
The official said Tiger Airways has proposed to operate two additional flights to Tiruchi from Singapore from August, which would increase the number of services operated by airline to nine per week.
The official said a proposal has been forwarded to the AAI headquarters at New Delhi to connect the ‘V 30’ route with Coimbatore and Calicut so as to join the ‘Mike 300’ route for Dubai
http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/article3710429.ece

Action against erring DGCA officials only after inquiry

A clearer picture on whether any action should be initiated against senior officials of the Directorate General of Civil Aviation (DGCA) for allegedly using their position to get jobs for their kin in various airlines will emerge in the next three-to-six months.
Official sources told Business Line that an inquiry against some DGCA officials was started late last year based on reports that some of them may have violated their service rules.
“In Government service, if you are working for a Department which has direct dealing with an institution where your children or spouse work, then a superior has to be informed. We need to find out whether extraneous pressures were used to get employment and whether the Government was informed about the employment,” a senior Government official said.
It is alleged that some senior DGCA officials’ kin were working with several private airlines in various departments. The inquiry process was likely to take another three-to-six months to be completed, officials said. While declining to name the officials against whom an inquiry was being conducted, sources indicated that at least eight DGCA officials were said to be under the scanner.
Sources said it was still too early to say whether any action including dismissal from service will be taken against those being investigated.
“Can we stop a child who is keen on becoming a pilot from joining an airline just because one parent works with the DGCA? Action, if any, will be initiated only after the inquiry is completed,” officials said.
At least eight senior DGCA officials are said to be under investigation for using their influence to get jobs for their kin in private airlines.
http://www.thehindubusinessline.com/todays-paper/tp-economy/article3708933.ece

Spicejet back in black, profit up Rs 56 cr

After being in the red for five consecutive quarters, budget carrier Spicejet flew back into profitability reporting a net profit of Rs 56 crore in the June quarter as against a loss of Rs 71.96 crore a year ago, on the back of significant growth in sales and better yields.
The Chennai-based Kalanithi Maran-promoted carrier also posted a 51 percent growth in sales at Rs 1,406.74 crore in the April-June quarter, compared to Rs 930.75 crore y-o-y, a statement from the airline said.
The average revenue per passenger during the reporting quarter increased 24 percent, while the number of passengers carried rose 26 percent.
Besides, the seat factor also rose to 80.3 percent from 78.9 percent, the company said, adding the period also saw its market share increasing by 1.5 percentage points to 18.6 percent.
Though the load factors and yields have been holding firm, the high cost of operations influenced by a weak the rupee prevented the company from posting even better results, it said.
Prohibitively expensive fuel prices continue to adversely impact the civil aviation sector, it said, adding that though international crude prices have softened in recent weeks, the domestic carriers are yet to realise the benefits of such reduced input costs of the fuel.
In addition, the industry has also absorbed significant increases in airport charges at the Delhi airport, the company said
http://www.indianexpress.com/news/spicejet-back-in-black-profit-up-rs-56-cr/981427/

AI's Rs 2,000-cr dues worry OMCs

National carrier Air India owes about Rs 2,000 crore in jet fuel dues to state-run oil marketing companies without even bank guarantees.
While Air India owes about Rs 300 crore each to Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), the airline has to clear Rs 1,250 crore payment to Indian Oil Corp (IOC), according to officials from these companies
“Air India is unable to pay even after a 90-day credit period. They owe us about Rs 300 crore without interest. There is also no bank guarantee from Air India to any of the oil marketing companies. We do not know when will the company honour its dues,” said a BPCL official on condition of anonymity.
Of its dues of Rs 1900 crore to IOC, Air India has paid about Rs 650 crore so far. “Air India had settled part of the dues and may repay some part of the due by September. Air India will pay us in tranches from the bailout package that the government has decided for the airline,” said a senior IOC official, also on condition of anonymity.
Air India’s executives could not be contacted despite repeated attempts.
In April, the government announced it would infuse additional funds into the airline to the tune of Rs 30,000 crore till over the next nine years. An immediate infusion of Rs 6,750 crore has already been done.
Till early this year, Air India owed over Rs 4,170 crore to public sector oil companies in unpaid jet fuel bills. This February, the three oil marketing companies had snapped supplies of the fuel to Air India for failing to honour payments even after the 90-day credit period.
The matter, however, was resolved after a high-level intervention by officials from the ministries of civil aviation and oil, in which the airline agreed to pay part of the money within 48 hours.
Other than Air India, Kingfisher Airlines owes dues to HPCL for jet fuel. According to an HPCL official, Kingfisher owes around Rs 300 crore to HPCL. In March, HPCL had snapped fuel supplies to Kingfisher, grounding its flights. Till March, Kingfisher had Rs 425 crore outstanding in fuel dues to HPCL.
HPCL is Kingfisher’s biggest aviation fuel supplier. While IOC’s supplies to Kingfisher Airlines is negligible, BPCL sells fuel to the airlines on a cash-and-carry basis at some airports.
http://www.business-standard.com/india/news/ais-rs-2000-cr-dues-worry-omcs/481888/

SpiceJet back in the black after 5 quarters

SpiceJet Chief Executive Officer Neil Mills was all smiles on Monday — with good reason. After five consecutive loss-making quarters, the airline stumped the Street as it posted a profit of Rs 62.44 crore in the quarter ended June. Mills would be particularly pleased that the airline’s owners, the Maran family, will also have something to cheer about at a time when it has been under the spotlight for all the wrong reasons. The airline’s stock had plunged 11 per cent on Friday amid media reports that the CBI questioned Sun Group Chairman Kalanithi Maran on the Aircel-Maxis deal.
But SpiceJet’s first quarter performance, released on Monday, has blown away the worries at least for now. The stock closed 22.4 per cent higher at Rs 30.85 on the Bombay Stock Exchange. Broking houses had anticipated the airline to post a modest loss of up to Rs 48 crore. Although passenger growth has declined, fares are up 30 per cent over last summer and this has, no doubt, helped the airline. But, according to Mills, the peak summer season alone did not lead to the airline’s rebound

“The first quarter is seasonally strong but that’s not the only thing that made the difference,” Mills said. He told Business Standard improved network planning and changes in capacity deployment helped the airline clock 26 per cent growth in passenger numbers and 51 per cent increase in revenue. “We deployed aircraft on high-demand routes and cut down on some unprofitable ones,” he said, refusing to divulge the sectors.

LEAVING THE LOSSES BEHIND
SpiceJet’s Quarterly loss figures in Rs crore
FY2010-11
March
59.00
FY2011-12
June
71.96
September
240.07
December
39.26
March
249.18

Routes connecting tier II and III cities with the metros, served by Bombardier Q-400 turbo prop planes, too, had started to break even, he added. The average load factor on these routes is 70 per cent and increasing. The airline flies seven such turbo props and plans to add five-six more such planes this year, airline sources say. At present, it has a market share of 18.6 per cent, the third highest among domestic airlines.
“SpiceJet has seen an increase in loads and yields because of a sharp drop in capacity in the sector. Kingfisher reduced its flights significantly and SpiceJet has been a beneficiary,” Rashesh Shah of ICICI Securities said


Spicejet bounces back, posts Rs 56 cr profit for Q1

After hovering in losses for five consecutive quarters, budget carrier Spicejet today reported a net profit of Rs 56 crore for the April-June period on the back of significant growth in sales and better yields.
The Chennai-based airline promoted by Kalanithi Maran had posted a net loss of Rs 71.96 crore in the same period last fiscal.
For the first quarter of the current fiscal ended June 30, the carrier posted 51% growth in sales at Rs 1,406.74 crore compared to Rs 930.75 crore, Spicejet said in a statement.
The average revenue per passenger during the reporting quarter increased 24%, while the number of passengers carried rose by 26%.

Besides, the seat factor also rose to 80.3% from 78.9%, the company said, adding that its market share increased by 1.5 percentage points to 18.6% during the quarter.

Though the load factors and yields have been holding firm, the high cost of operations influenced by a weak the rupee prevented the company from posting even better results, it said.

Prohibitively expensive fuel prices continue to adversely impact the civil aviation sector, it said, adding that though international crude prices have softened in recent weeks, the domestic carriers are yet to realise the benefits of such reduced input costs of the fuel, it said.

In addition, the industry has also absorbed significant increases in airport charges at the Delhi airport, it added.
http://business-standard.com/india/news/spicejet-bounces-back-posts-rs-56-cr-profit-for-q1/180714/on

Air India to normalise global operations by mid-August

NEW DELHI: The Air Indiamanagement is looking to normalise international operations, severely affected by a two-month strike by pilots, by mid-August, according to three executives familiar with the strategy.
The national carrier will resume its first major international flight since the strike - which caused losses of nearly Rs 700 crore - from Kochi to Riyadh in the first week of August, they said. Subsequent routes on the international roster, fares and marketing plans for these routes are being discussed under a 'restoration' strategy, they said.
At least 500 Air India pilots who fly international routes launched a strike that stretched to 58 days, demanding exclusive rights to fly the new BoeingDreamliners. They called off their stir on July 3, bowing to pressure from the government and judiciary. One of the officials, a senior member of the management, said Air India will fly only on routes where it makes commercial sense, but there will be no drastic cuts in fares. "The aim is to fly on routes that make profits."
But another executive said the airline might sharply cut fares on select routes. "We will cut fares, but it will depend on route to route." He said Air India has room to offer cheaper tickets than rivals because fares on many international routes have significantly risen since the strike. "Air India's fares will have a dousing effect on rivals that are profiteering. And our fares will be sharply low only when compared with theirs."
The strike forced Air India to trim its international schedule, which helped rival Jet Airwaysstrengthen its hold on these routes. A third executive who has taken stock of the damage caused by the strike said that financial losses apart, Air India's code share agreements (a business arrangement where airlines share flights) were disrupted. The goodwill among passengers too was eroded, he said. "Although the strike largely hit international operations, domestic operations too were hurt because of confusion among customers."
The striking pilots had demanded that colleagues from the erstwhile Indian Airlinesbe barred from flying Dreamliners for fear that it would hurt their career prospects.

Ajit Singh: How civil aviation minister has fared on policy front

The seven months that Ajit Singh has been at the helm of the civil aviationministry have been tumultuous - both in terms of government policy and the business of airlines. He has acted tough at times - be it staring down striking Air Indiapilots into submission, or firing a mercurial bureaucrat. At other times, his decisions have been criticised as being soft on some private airlines (read Kingfisher). He has set new rules - opening up fuel imports, and reversed old policy - making it easier for more private airlines to fly more international routes. But that's just the publicly visible part of his job. Behind the scenes, he has been unrelenting in his efforts for breakthroughs. He lobbied within the government to push through a Rs 30,000 crore bailout for Air India.

He is lobbying outside too, even with difficult allies like Trinamool Congress chief Mamata Bannerjee, to muster support for a proposal to increase FDI in airlines to 49% from 26%, ministry sources say.

"The overall sentiment prior to his joining was negative, which was largely due to no progress achieved during his predecessor's (Mr Ravi) tenure," says Kapil Kaul, CEO, global airline consultancy firm Centre for Asia Pacific Aviation (CAPA) South Asia. "I was surprised at the speed with which he (Singh) has moved forward."

That's one view. Air India pilots, or those close to EK
Bharat Bhushan, the former chief of DGCA, the aviation regulator, or some known Kingfisher baiters are unlikely to buy that. Yes, Singh has many critics, but no one can accuse him of inaction. That, in an environment where the rest of the government has been crippled by deep policy paralysis, is being seen as a virtue.

"There have been some positive efforts in the last couple of months. Most initiatives that were put on the backburner earlier are now revived like import of ATF and inclusion of ATF in the GST list...most things have materialised... even the FDI might happen," says Neil Mills, CEO, SpiceJet. "We have seen some positive moves coming from the ministry and we hope it continues going forward."


Taking Tough Decisions

Singh, an IITian and M-Tech from University of Illinois (USA) who spent 17 years with IBM in the US in the seventies, joined politics in 1986. Ever since, he has intentionally cultivated the image of a 'kisaan leader', taking on the mantle of his father and former prime minister Chaudhary Charan Singh. But many are seeing a new 'Chaudhary Ji.' In his current role, he is fast building a reputation as a nononsense administrator and policy maker. Air India pilots will vouch for that. They took him on - and lost.

Last April-May, when pilots belonging to the union, Indian Commercial Pilots Association (ICPA), went on strike, Singh's immediate predecessor Ravi asked the aviation ministry officials to persuade the pilots to join work.

After intense negotiations led by joint secretary and director-level officials - some of which stretched for eight hours - Ravi gave in to several demands including reinstatement of all and recognition to their union. But this year, when pilots of the Indian Pilots Guild (IPG) went on a similar strike, Singh refused to speak to an unrecognised union for two months. He asked AI management to curtail schedule to ensure the revenue-expenditure gap does not widen. IPG pilots, who have been on strike since May 7, are now ready for reinstatement, leaving all other demands behind.

"I think he's doing very good and I am in full support of the way he has handled the Air India strike," says Praful Patel, who was aviation minister from 2004 to 2010. "This is the minister's way of giving out a message to other Air India employees that this is not the time for mischief, but (time) to support the airline," says a senior UP cadre bureaucrat from the civil aviation ministry, who has also worked with Singh's father.
Singh is not shying away from tough and objective decisions. Only a couple of months after taking charge, he made it easier for all private carriers to get international routes by taking away Air India's right-of-first refusal.

For an airline to fly abroad, the government must first negotiate a bilateral treaty known as an Air Service Agreement (ASA) with the destination country's government. Till recently, Air India had first right to such 'bilateral rights.' The minister did away with this.

Immediately after Air India monopoly ended, Jet Airways sought approvals for increasing international flights by a large number, applying for routes five seasons in advance. IndiGo and SpiceJet have also made several applications for international routes.

"Opening up of bilateral rights to other private carriers has created a silent revolution and may turn out to be the single biggest reform facilitating global presence of Indian carriers," says global consultancy firm KPMG Partner (Aviation) Amber Dubey.

Aviation ministry bureaucrats say Singh showed remarkable foresight quite early in the job. Global carriers were flying away with a lot of the international traffic originating in India. But, making it easy for Indian carriers to get approvals for foreign routes will help the industry compete with international airlines better, they say.

Singh is thinking one step ahead. He wants India to emerge as a hub for global traffic along the lines of Dubai, Singapore and Hong Kong.

Private carriers are also happy with another of Singh's decisions. This February, the government allowed direct import of aviation turbine fuel (ATF). This could help the industry save Rs 2,500 crore annually. Industry estimates peg the total ATF bill of domestic airlines at Rs 10,000 crore.


The Kingfisher Stance

Many in the industry are wondering why Kingfisher Airlines, which has cut down most of its flights due to financial troubles, is still being allowed to fly. Singh has been soft on Kingfisher, they allege. Singh plays by the rule book. "Any airline is fit to fly till it has a minimum of five aircraft in its fleet," the Rashtriya Lok Dal leader has maintained since January. For a while, it seemed that people were beginning to buy the logic. That's when Singh fired Bharat Bhushan, a day after the latter made 'file notings' saying that the Vijay Mallya-owned carrier either pay its employees within a fortnight or shut shop. Bhushan's marching orders came the very next day, exactly one week after his term as
DGCAwas extended by six months. Singh maintains this was a procedural matter and the extension was done without his knowledge. A day after Bhushan vacated office, Kingfisher Airlines cancelled more flights as its employees refused to report to work on nonpayment of salaries.

A few industry experts say some of Singh's measures were Kingfishercentric - lobbying for 49% FDI and clearance for direct import of ATF. Mallya has repeatedly said survival and recapitalisation of his airline depend on this policy change (foreign investment). Kingfisher was also the first to apply to the Directorate General of Foreign Trade (DGFT) in December 2011 seeking permission for direct import of jet fuel. The minister dismisses such talk. "Mallya may be the first one to request for an ATF import permit, but wasn't SpiceJet the first one to go for it and then Air India?" Singh quips. "Similarly, others are also looking forward for change in FDI norms," he adds. Lastly, while Singh's handling of Air India has won admirers, it has also drawn criticism, notably that he micromanages everything.

The admirers point out that although he is flanked by key bureaucrats at all press conferences, he seldom gives them a chance to do more than nod as figures, data and details are on his finger tips. He doesn't stare into papers, doesn't look at his officials for help and often surprises the media with his instantaneous responses backed by statistics.

Critics see it differently. At a couple of press conferences in Mumbai, Singh took all questions, hardly allowing Air India CMD Rohit Nanadan to speak, that too when the strike by pilots was at its peak. "You must understand that he (Nandan) is a bureaucrat and he will not be able to answer queries," Singh once said in another context.

A ministry official sums it up well: "This is a 'hands-on' minister." You have to take the good with the bad.
The Inevitable Comparison
Praful Patel spent six years as civil aviation minister. Ajit Singh is only in his eighth month. Still, the industry is already drawing comparisons between the two.

Patel's tenure is regarded as a game-changing period when true liberalisation (open skies policy) took place. Airlines expanded and put more aircraft on the skies, airports turned modern (Delhi's Terminal 3, Shamsabad airport at Hyderabad, modernisation of Mumbai and Bangalore airports).

Patel was a doer. And Singh's many initiatives so early in the job naturally force such comparisons. Both see air travel as a necessary transport infrastructure, not as a luxury. But that is perhaps where the similarity ends.

Bureaucrats at Rajiv Gandhi Bhavan, which houses the civil aviation ministry, joke that the difference between the two (Patel and Singh) is that of Bombay and Baghpat: one is known for his wine and cheese parties; the other for his association with rustic Western UP. One can't get inside Praful Patel's house without having a prior appointment and ID proof. But one can just drive or walk into Singh's Tughlak Road home in Delhi.

Farmers from more than one north Indian state are squatting all over his garden — sitting on chairs or charpais — waiting for their turn to meet the minister. Singh ensures that they are attended to and has a dedicated air-conditioned visitors' room where people waiting to meet the minister can even sleep over.

"The circumstances (under Patel and Singh) are different, but continuing deep structural reforms is essential," says Kaul. Patel had a long stint as civil aviation minister.

Singh has only till 2014 when general elections are due. But politics has never been easy for Chaudhary Ajit Singh. Singh came back to India in 1985. After 17 years with IBM, he wanted to set up a software company here. But his father Chaudhary Charan Singh fell into a coma and he entered politics.


"He was a lanky, young, English-speaking fellow who had returned from the US leaving a roaring career at IBM behind and we were all comparing this modern boy with Chaudhary Charan Singh's grand persona," says a veteran journalist who first met Singh 22 years ago in Baghpat.

Later, everyone was offered big glasses of lassi, which none of the 12 journalists present were able to finish. All eyes were on the 'fresh from US' Ajit Singh, the journalist recalls. "He finished it and said if I can't even do this much, I can't be my father's son."

The tumult of UP politics has proved to be harder than the lassi. While Singh carried Charan Singh's legacy, his father's close friends like Mulayam Singh walked away with the vote bank. Singh couldn't hold on to his father's Jaat-Gujjar-Ahir base. "My father was a kisaan leader and not a caste leader," Sigh says. "It was unfortunate that he was tied to such an image. This is what I want to break...I am a kisaan leader," says the man who will shape India's skies...till 2014 at least.




http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/ajit-singh-how-civil-aviation-minister-has-fared-on-policy-front/articleshow/15286152.cms?curpg=3

SpiceJet bounces back, posts Rs. 56 cr profit for Q1

After hovering in losses for five consecutive quarters, budget carrier SpiceJet on Monday reported a net profit of Rs. 56 crore for the April-June period on the back of significant growth in sales and better yields.
The Chennai-based airline promoted by Kalanithi Maran had posted a net loss of Rs. 71.96 crore in the same period last fiscal.
For the first quarter of the current fiscal ended June 30, the carrier posted 51 per cent growth in sales at Rs. 1,406.74 crore compared to Rs. 930.75 crore, SpiceJet said in a statement.
The average revenue per passenger during the reporting quarter increased 24 per cent, while the number of passengers carried rose by 26 per cent.
Besides, the seat factor also rose to 80.3 per cent from 78.9 per cent, the company said, adding that its market share increased by 1.5 percentage points to 18.6 per cent during the quarter.
Though the load factors and yields have been holding firm, the high cost of operations influenced by a weak the rupee prevented the company from posting even better results, it said.
Prohibitively expensive fuel prices continue to adversely impact the civil aviation sector, it said, adding that though international crude prices have softened in recent weeks, the domestic carriers are yet to realise the benefits of such reduced input costs of the fuel.
In addition, the industry has also absorbed significant increases in airport charges at the Delhi airport, it added.

SpiceJet sheds red, logs Rs 56 cr profit

New Delhi, July 30:  
Low-cost airline SpiceJet has reported a profit after tax of Rs 56.15 crore for the quarter ended June 30.
The airline had reported a loss of Rs 71.96 crore for the same quarter last year.
In a statement, the airline said that revenue for the first quarter ended June 30, increased by 51 per cent to Rs 1,407 crore compared with Rs 931 crore, previously.
The average revenue per passenger in the quarter under review increased 24 per cent to Rs 4,068 from Rs 3,283 in the last quarter.
The airline said though the load factors and yields have been holding firm, the high cost of operations influenced by a weak rupee prevented the company from posting better results.
“The company’s operating results have been materially affected by various factors, particularly high aircraft fuel costs, significant depreciation in the value of the currency and general economic slowdown,” it said in a statement to the stock market.
SpiceJet has also been implementing various measures, such as fare and route rationalisation, optimising aircraft utilisation, improving operational efficiencies, renegotiating of contracts and other cost control measures, to improve operating results and cash flow.
In addition, it is exploring options to raise finance to meet its long- and short-term obligations with the promoters infusing additional capital in the current quarter.
The airline, which has a market share of 18.6 per cent in the domestic market, currently operates more than 300 daily flights to 37 Indian cities and three international destinations
http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3704821.ece

Sunday, 29 July 2012

Boeing eyes India as US cuts defence spending

Inside a spotless hangar here, technicians work on three gleaming new Boeing 737s, painted in the drab grey favoured by the world’s navies. While two of these are marked with the US Navy logo, the third bears markings unusual for this hangar: the Indian Navy’s Devanagari logo: ‘Nau Sena’ (Navy).
These are no ordinary 737s but new P-8 multi-mission aircraft (MMA) that watch over enormous tracts of sea, detecting hostile ships and submarines with electronic sensors, and quickly destroying these with the weaponry on board.
Unprecedentedly, these state-of-the-art platforms will join service almost simultaneously with the US and Indian navies, giving the latter world-class capabilities for dominating the waters and vital shipping lanes off its 7,500 kilometre coastline, deep into the Indian Ocean.
Since independence, India has remained content with older weaponry that richer and more technologically advanced countries had already deployed for years. The Indian Air Force (IAF) bought the Jaguar and Mirage 2000 fighters long after they entered frontline service with the French and British air forces, while the Sukhoi-30 MKI and the T-90 tank were systems that the Russians did not induct.
But the navy’s purchase in 2009 of eight P-8 aircraft for a whopping US $2.1 billion, and Washington’s decision to supply these to India alongside the first deliveries to the US Navy, highlight two major changes.
First, Washington’s readiness to sell New Delhi cutting-edge weaponry without tiresome quibbling over “changing the regional arms balance.” Second, the P-8 buy demonstrated New Delhi’s willingness to spend its top dollar to back regional ambitions with top-flight military capabilities.
New Delhi again demonstrated that buying power last year by shucking up $4.1 billion for 10 C-17 Globemaster III aircraft. These giant airlifters, which can land and take off from short, high-altitude, mud airstrips along the Himalayan Sino-Indian border, will let the Indian Army quickly reinforce threatened sectors.
For Boeing Defence, Space and Security (BDS), the company’s military division which stares at US defence cuts of a trillion dollars over the coming decade, New Delhi is an increasingly important customer.
Boeing’s international defence sales, which currently account for 22-24 per cent of BDS’s turnover, must reach 25-30 per cent, says Mark Kronenberg, Boeing’s international business development head. The Asia-Pacific region, with India as the largest buyer, is expected to account for 45-50 per cent of foreign sales, with West Asia buying another 25-30 per cent. These plans were jolted last year, when New Delhi rejected Boeing’s F/A-18 Super Hornet fighter in a $17 billion purchase of 126 medium fighters, choosing instead the French Rafale. But Boeing remains optimistic about four potential revenue streams. Besides the P-8 and the C-17 Globemaster III contracts already won, the IAF is also evaluating the purchase of Boeing’s Apache AH-64 attack helicopter; and Chinook CH-47F heavy lift helicopter.
The P-8 being completed here is Seattle has been designated the P8-I (I for India), which distinguishes it from the US version, the P8-A. Two Indian aircraft have already flown, the last one on July 17. Boeing executives say that, by end-2013, three P-8Is will be in operational service in India.
The P8-Is will operate from INS Rajali, a naval base at Arakonam, near Chennai, flying eight-hour missions over the Arabian Sea, the Bay of Bengal and the northern Indian Ocean. These could involve seeking out pirates, suspicious cargo vessels, or hostile warships and submarines. During such missions, the P-8I’s enhanced internal fuel tanks will allow it to fly 1,100 kilometres to a patrol area, remain on station for up to six hours, and then fly back 1,100 kilometres to Arakonam. Using aerial refuelling, this endurance can be doubled.
On patrol, naval operators scour the area from banks of consoles inside the aircraft. A multi-mode radar in the P-8I’s nose cone looks forward and sideways, picking up aircraft, surface ships and submarines.
Meanwhile, a belly-mounted radar looks backwards, like an electronic rear-view-mirror. Suspicious objects can be investigated further: a suspected enemy submarine is pinpointed by dropping sonobuoys, floating sonar detectors that radio back telltale audio signals. A magnetic anomaly detector (MAD) on the P-8I’s tail distinguishes between an enemy submarine and, say, a blue whale.
These sensors are backed up with armament. The P-8I, basically a Boeing 737-800, has the enhanced wings of a 737-900 onto which weaponry can be mounted. This includes potent anti-ship Harpoon missiles, and the Mark 82 depth charge that the US Navy uses.
Another compartment in the aircraft’s belly will house five Mark 54 torpedoes, the primary submarine-killing armament. These must be warm when they are launched, and so cannot be exposed to the icy temperatures of wing mounting.
The US Navy intends to buy at least 117 P-8A aircraft, as the US version is called, while Boeing expects another 75 aircraft to be snapped up by international customers, especially those who want to upgrade from the P-3C Orion, built by rival company, Lockheed Martin.
Pakistan operates four P-3C Orions, but US government insiders say that a sale of the P-8 to Pakistan would not be cleared.
India, remains a potentially big customer. Robert Schoeffling, the P-8 programme’s Business Development head, anticipates Indian orders for 25-35 P8-Is. “With 7500 kilometres of coastline, 60 per cent of the world’s shipping traffic (passing close by), tremendous need for MDA (maritime domain awareness), including anti-submarine, and with three aircraft carriers in the 2020s, (the Indian Navy is) going to have a tremendous need for such aircraft,” he says.