BEML begins work on aerospace unit at SEZ

The BEML Limited, a defence public sector undertaking, is moving forward in the aerospace vertical as part of the expansion of its defence business. In this regard, BEML has begun work on an aerospace manufacturing division at SEZ near the Bangalore International Airport, Devanahalli.

The ground breaking for commencing the civil works was performed by BEML Chairman & Managing Director V RS Natarajan in the presence of functional directors and other senior executives. BEML Limited is the first company to set up Aerospace Facility at a SEZ. The construction work has begun and this infrastructure facility shall be ready by September this year. This will pave the way for BEML to enter into Aircraft component manufacturing field. This is the second new aerospace manufacturing facility.

This aerospace facility will be capable of manufacturing aerospace components and parts, assembling aircraft and helicopters up to 21 metres tall. The facility is spread over 3,00,000 sq ft and the company has invested Rs 455 crores into this project. BEML has already set up an aerospace manufacturing division at Mysore and got certified qualifying them to design aircraft, helicopter and engine parts. Presently, this division is manufacturing ground support equipmentôground handling equipment like aircraft towing tractor, crash fire tender, weapon loader, jigs & fixtures, sub-assemblyomponents for SU-30 aircraft.

With the opening of a new facility at Bangalore, Mysore Aerospace Division will be dedicated towards manufacturing of ground support and handling equipment only whereas the manufacturing of aerospace and related parts will be moved to Bangalore factory.

The upcoming aerospace SEZ facility will have assembly hangar to produce sub/major assembly with 21-metre height for civil / military aircraft and also could be used for assembly of 90-100 seater aircraft and for the MRO of a fixed or rotary wing aircraft, sheet metal shop along with chemical milling centre, machine shop with heat treatment and surface treatment shops and composite facility.

With all these, BEML is able to take up jobs in aerospace segment right from design, virtual testing, precision/heavy manufacturing of sub-sub assembly, sub-assembly, aggregates and parts. BEML will be able to harness all offset opportunities.

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Kingfisher Airlines staff not to go on strike

Kingfisher Airlines' employees have cancelled their plan to go on strike, following airline chairman Vijay Mallya's assurance that they would be paid on Wednesday. The employees, led by pilots and engineers, had threatened to stop work from Tuesday night if two months salary was not paid. However, they backed off after a late night negotiations with Mallya at his Mumbai residence.

Nine representatives met Mallya on Monday night and the meeting continued till 4 am on Tuesday. "We knew it was not possible for him to pay us two months salary today, but we made it clear that we can't wait long,'' a pilot said.

The pilots and engineers also assured him that they had no plans of forming an union. The sudden climbdown by pilots and engineers will give a breather to the Kingfisher management, which is struggling to keep its schedules intact, following a freeze of bank accounts. The airline is operating 120 flights with 20 planes in its summer schedule.

Mallya also cautioned that a strike would disrupt airline's operations and Directorate General of Civil Aviation could cancel its operating permit. He had earlier said junior staff will be paid on Wednesday and pilots and engineers would be paid on the following Monday and Tuesday.

However, the airline's spokesperson refused to comment.

Sources said the pilots and engineers may agitate in case they do not receive the salaries on the said date, but for now, have put off the agitation. "We are confident that the chairman will pay us on Wednesday and we are supporting him,'' a commander said.

Mallya is also reported to have assured the employee representatives that he will "try his best'' to pay second salary in April but did not give any date. The airline's employees have not been paid for the past four months. The pilots and engineers had indicated that they are under stress and cannot work until their salaries are paid.

In an emotional appeal to his employees, Mallya on Sunday wrote, "We need to re-build confidence and earn the trust from our guests back again...This will not be possible without your continued efforts, commitment and goodwill towards your company.''

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Air India plans fare system that syncs with fuel price

To make its fare structure more transparent, Air India is launching a dynamic fuel surcharge system, where the amount a consumer pays for travel would change (even decrease) in tandem with the regular alterations in the price of the aviation turbine fuel (ATF). The new charge may be called "fuel pass through", according to a source in the airline.

According to the formula being worked out, the company would raise the fuel charge by Rs 50 for every Rs 1,000-per-kilolitre increase in the rates of jet fuel. Inversely, there would be a slide in the fares by the same amount in case of a Rs 1,000-per-kl decrease.

"We are working on this," said a senior Air India official. "It will be implemented in a month."

He said this would make the system "much more transparent" than the existing fuel surcharge, which is not directly proportional to the price of ATF. "We plan to call it 'fuel pass through'," he revealed. It will both increase and decrease in accordance with the change in ATF price."

The carrier, he said, was not currently discussing the idea with any other airline. "Usually, the industry follows whatever we do. We hope that happens in this case as well," he added.

In the existing system, a fare has two components - base fare plus surcharge and then fees on passenger services and development. The surcharge and fee component in an airline ticket is around 40 per cent of the total fare in an economy-class ticket and around 15 per cent when it comes to business class.

Consumers have for long been complaining that the current fuel surcharge component is not dynamic, as it tends to stonewall the routine variations in the price of ATF.

The Travel Agents Federation of India, too, notes that fuel surcharge has seldom decreased in the last five years even when there has been a slide in the prices of ATF.

"In any case, why do we need a fuel surcharge component in the fare," asks Ajay Prakash, president of the association that represents half of the country's travel agents. "One can tinker with the fare to adjust the increase or decrease in the input cost."

Further, in case of cancellations or no show, the airlines do not refund the fuel surcharge. Thus, Air India's proposed move, Prakash noted, would be "a step ahead in making things more transparent".

Not all are convinced that this upcoming system would make a difference to air travellers. These are all internal matters, notes Makemytrip.com. "A consumer is not bothered about any of these technicalities," shrugs Keyur Joshi, co-founder and chief operating officer of the online travel portal.

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Gilani's plane makes emergency landing

ISLAMABAD: A plane carrying Prime Minster Yousaf Raza Gilani and several ministers made an emergency landing shortly after take off at Chaklala Airbase on Tuesday. 

The special plane had to return to the Chaklala Airbase soon after it developed a "technical snag", officials at the airport said. Gilani and the ministers were heading to Sukkur to take part in the death anniversary of former PM Zulfikar Ali Bhutto. All passengers remained safe during the emergency landing, officials said. According to officials, a technical fault was found in the left engine of the plane minutes after it took off. 

Separately, a helicopter carrying the Frontier Constabulary inspector general (IG) made an emergency landing in Mohmand Agency, on Tuesday due to a technical fault. According to officials, the IG and other officials remained safe. agencies

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Domestic carriers plan to fly into Tier-II cities this summer

MUMBAI/BANGALORE, APRIL 2: 

Tier-II connectivity is the new big opportunity for domestic carriers, barring Kingfisher Airlines.

Jet Airways, IndiGo and SpiceJet have introduced many tier-II and tier-III routes in this year's summer schedule.

Officials at these airlines say that they have also applied to the DGCA for servicing routes vacated by KFA.

"The cancellation of Kingfisher flights has created a vacuum on the supply side. April to June being peak travel months, there is a clear demand-supply mismatch this year," said Mr Manmeet Ahluwalia, India Head of travel portal Expedia.

The mismatch is a huge setback for the family summer travel segment, as air fares have become costlier now, said Mr Iqbal Mulla, President, Travel Agents' Association of India. "Air fares, which are already up 20-30 per cent, will go up by an additional 20 per cent during the season," he added.

NEW ROUTES

Jet Airways has added Mumbai-Amritsar, Mumbai-Vijayawada (via Hyderabad) and Bangalore-Ranchi to its network.

IndiGo will launch a daily Hyderabad-Visakhapatnam service and a daily Patna-Hyderabad flight via Delhi from April 4.

IndiGo officials said the airline plans to expand its network in newer markets and strengthen its existing routes.

SpiceJet has opened bookings for Nanded in Maharashtra, and the service will start from April 19. Bookings for Kozhikode are also open and the maiden flight is on April 27, said a SpiceJet spokeswoman.

Other smaller cities recently added include Surat, Aurangabad, Thiruvananthapuram and Varanasi. The airline sees a huge untapped potential in tier-II cities, she added.

According to Mr Mulla, Air India and Jet Airways have benefited the most in the past few months.

"Earlier, they had about 70 per cent load factor, and now they are flying full. IndiGo, already running full, did not have additional seat capacity to tap into this sudden potential," he said.

However, low-cost carriers have increased their fares, which are now on par with full-service carriers, he added.

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SpiceJet applies to DGFT for jet fuel import

NEW DELHI, APRIL 2: 

Chennai-based SpiceJet has become the first airline to apply for direct jet fuel import. It has submitted its application to the Directorate General of Foreign Trade (DGFT).

Mr Neil Mills, SpiceJet's Chief Executive Officer, said, "After discussing the proposal in detail, we decided to go ahead with importing aviation fuel from overseas. We have applied to the DGFT for permission to import aviation fuel in India."

He said the recent Government announcement was an interesting proposal, and hoped that direct import of aviation fuel would considerably bring down the company's operational cost. Jet fuel constitutes up to 40 per cent of the airline's total operating cost.

The Centre recently allowed airlines to import aviation turbine fuel (ATF) or jet fuel. Airlines will now be able to save State sales tax, which ranges between four and 32 per cent. Airlines have been complaining that the high State tax along with Central duties make the fuel very costly.

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Kingfisher staff threaten to go on strike over unpaid salary

NEW DELHI, APRIL 2: 

The Kingfisher Chairman, Mr Vijay Mallya's attempt to boost the morale of his employees by announcing that the airline's accounts had been unfrozen appeared to have backfired on Monday, with the employees threatening a strike over unpaid dues.

Ignoring Mr Mallya's assurance of salary payment, Kingfisher employees threatened to go on strike from Tuesday, unless at least half the pending salaries were paid by April 3. Kingfisher staff have not been paid salaries for four months.

Mr Mallya in his letter to the employees had assured that all junior staff will be paid by April 4, while pilots and engineers would be paid by April 9-10.

The airline's employees have also appealed to the players of Mr Mallya's Indian Premier League (IPL) cricket team, Royal Challengers Bangalore, to boycott IPL matches starting April 4. They said that such an effort will help in getting their dues.

FLIGHTS CANCELLED

Meanwhile, some flights from Delhi and Mumbai were reported cancelled as the staff did not report for duty.

However, there is no official confirmation on the cancellation. The debt-laden airline had announced on March 27 that it will operate 120 flights with 20 aircraft in a 'holding plan' starting March 25 and ending on October 27, 2012.

The developments were precipitated by an internal communication from Mr Mallya, where he announced that "The formalities of un-freezing our bank accounts was completed yesterday following our payment of Rs 44 crore to the Income-Tax and Rs 20 crore to the Service Tax authorities before March 31."

The authorities had earlier frozen close to 40 accounts of the airline for non-payment of dues.

Mr Mallya has also indicated that starting this week, he is going to be "personally available at each major station" for one day a week to listen to the concerns of staff at all levels.

"We have managed to keep the lights on in our days of darkness with adversity from every conceivable direction. The freeze of our accounts and consequent IATA suspension, the resultant loss of the BSP booking platform, the adverse media blitz and the loss of customer confidence are all serious challenges that we have survived," the mail added.

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Kingfisher Airlines' staff may stop work if arrears not cleared by today

MUMBAI: Vijay Mallya's commitment to resume paying salaries before Easter on Monday cut little ice with an increasingly restive workforce who responded by threatening to stop work if arrears are not cleared by Tuesday evening. 

In a letter to Mallya soon after he sent his email, the employees said that such promises have not been adhered to in the past and that they felt "cheated and deceived". 

"We are not currently in a mental state to undertake any duties and doing so would jeopardise the safety of our aircraft and more so ever our valuable guests," an email on behalf of employees said. 

The employees in their letter also alluded that in the past they had received similar emails assuring salaries but none of the assurances were met. 

A few Kingfisher flights failed to take off, as the staff stayed away from operating them. 

In an email to employees dated April 1, Mallya, fighting with his back to the wall after reports emerged that he was considering selling his flagship assets such as United Breweries that his father late Vittal Mallya and later he himself had so meticulously acquired piece by piece, was direct in his email stating his problems. 

"We have managed to keep the lights on in our days of darkness with adversity from every conceivable direction," he wrote. 

The email gave an undertaking that all junior staff will be paid their dues of four months by Wednesday. Pilots and engineers will be paid between 10 to 11 April, Mallya added. 

Acknowledging the low morale of his people, Mallya said that starting Monday, he would personally make himself available at each major station for one day a week to listen to concerns of "all staff at all levels." 

"Please stand by me and strengthen my hands," he pleaded. 

Exuding confidence, Mallya had mentioned to the un freezing bank accounts on Saturday after the besieged tycoon paid of 44 crore to the Income Tax and 20 crore to the service tax authorities before the financial year ended on 31 March. "My only focus now is to start paying your seriously overdue salaries," Mallya declared. 

Mallya, who signed the letter as member of parliament, chairman and managing director of KFA pleaded with his staff not become fodder to the media and do what competitors want.

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Sikorsky-Tata joint venture applies for defence licence

US-based chopper manufacturer Sikorsky Aircraft Corporation, part of United Technologies Corp, and Tata Advanced Systems Limited (TASL) have applied for a defence licence to manufacture components and assemble helicopters for use by the Indian Navy, according to Steve Estill, vice-president (strategic partnerships), Sikorsky.

"The licence will pave the way for us to set up an assembly line in this country. We will decide on our plans once we hear from the Ministry of Defence. We expect our application to be cleared from the ministry in the second quarter of this financial year," he told mediapersons here on Monday.

L&T and Mahindra & Mahindra are among the other big Indian companies that have received licences in the past to manufacture defence equipment.

India liberalised the defence industry in 2001, allowing 100 per cent participation by the private sector with foreign direct investment permissible up to 26 per cent, both subject to licensing and security clearance.

The Sikorsky-TASL contract was formed in 2009 to make helicopter cabins for the US company. Both the companies had also signed an agreement to create a joint venture that will manufacture aerospace components for Sikorsky in India, including components for S-92 helicopter cabins. TASL has 74 per cent shares in the JV. The JV broke ground last year and started producing over 4,000 parts and sub-assemblies for rotary and fixed-wing aircraft from this March 6 from its facility on the outskirts of Hyderabad .

According to Arvind Walia, executive vice-president (India and South Asia), Sikorsky, the company was among the two firms to be shortlisted by the ministry to supply 16 multi-role choppers to the defence sector.

"We expect to be L1 for this contract, which is pegged at about $1 billion. The only other manufacturer to be shortlisted is a European company called NH Industries. We have completed all formalities as far as the flight evaluation trials are concerned. We hope to here from the ministry a firm date for opening of commercial bids in the next two weeks," he said.

Walia said the naval multi-role helicopter contract was under the 'buy and make (Indian)' category, which allowed private sector companies to bid and hold the primary contract, and that the programme was at the RFI (request for information) stage.

"We have provided the information and Sikorsky has no hesitations in addressing this requirement of this country for the 'buy and make' category. Our aim would be to bid locally. We can rename our Tata-Sikorsky JV so it will be a local company bidding in the next round for the Navy," he said.

Meanwhile, the Tata-Sikorsky S-92 helicopter cabin manufacturing facility here is doubling its production to 26 units annually from this month on the back of growing demand.

"Right now, the cabins that we make here are fitted with all components produced by Sikorsky-Mitsubishi's Japan facility, which is being closed down in a phased manner. Within a year, the Hyderabad facility will use completely indigenous components for its cabins," Walia said.

Sikorsky had so far delivered S-92 choppers globally. S-92, a tricycle-configured chopper with a nose wheel, costs around $22 million. The company expects to sell around 120 units worldwide over the next two years.

"The Indian commercial and military helicopter markets are set to touch $8 billion and $33 billion respectively over the next 25-30 years, to become the second largest chopper market in the world after the US. We hope to sell at least two units in the commercial market here, if not more, this year," Estill said.

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Goa airport to be closed for 3 days from April 5

Goa's lone airport at Dabolim is heading for an annual maintenance closure for three days during day time from April 5.

The Navy, which maintains the airport, announced that the aerodrome would be closed for all civil and military flying between 7 a.m. and 4 p.m. from April 5 to 8. Navy's public relations officer Commander Prashant Mathur said flights were being rescheduled and measures taken to avoid inconvenience to passengers.

The Airports Authority of India spokesman said every day 25-35 flights would have to be rescheduled. The AAI had not received any intimation of cancellation of domestic or international flights. The airport has maximum traffic early in the morning after which it is opened for military operations.

The civil flights arrive back in the afternoon from 1 p.m. "The slot between 1 p.m. to 4 p.m. will be affected due to the closure," the AAI spokesman said.

The Navy has said that high density traffic - especially of the wide-bodied aircraft during tourist season and military operations - requires preventive periodic maintenance of the runway.

"The planned repairs would go a long way in facilitating safe and efficient operations, especially during monsoon," the naval spokesman said.

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Pay by today or we will strike: Kingfisher employees

Kingfisher Airlines (KFA) employees have rejected chairman Vijay Mallya's latest plan for salary disbursement and have threatened to strike work if two months' salaries are not credited to their accounts by 8pm on Tuesday.

Agitated employees handed over a letter to the management 

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after a stormy meeting in Mumbai on Monday, which said they had reached "a point where operations have become unsafe due to stress caused by our financial constraints."

Employees, including pilots and engineers, haven't been paid since December.

"We are not currently in a mental state to undertake any duties and doing so would jeopardise the safety of our aircraft and more so ever our valuable guests," the employees wrote on a day when the airline's shares fell 8.8% to touch a new low of Rs 15.10.

They have asked the airline to pay salary for December and January by Tuesday 8pm and clear the remaining dues by April 20.

Employees letter to Mallya was in response to a letter from the chairman wherein he wrote of paying salaries to junior staff on April 4 and to pilots and engineers on April 9 and 10.

Its operations, sources said, were hit even on Monday as some employees stayed away from work.

Hindustan Times had reported on March 29 that a section of KFA pilots could stop flying from April to protest against unpaid salaries. KFA did not reply to an email from HT.

KFA employees wrote that in the past as well they had received assurances that salary would be paid on certain date.

"However, none of the assurances have been met. The resulted salary payments being overdue for four months has left employees feeling cheated and deceived resulting in non-believing your latest mail."

"My only focus now is to start paying your seriously overdue salaries," Mallya had written to employees.

"Any flight disruptions and guest inconvenience will destroy all our efforts which is exactly what our competitors want and I suspect the media wants as well so as to satisfy their breaking news headlines. I appeal to you not to play into their hands. Starting this week, I am going to be personally available at each major station for one day a week to listen to the concerns of all staff at all levels."

Reports said that employees had urged players of Mallya's IPL team, Royal Challengers Bangalore, to stop boycott the tournament. HT could not independently verify this.

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