SpiceJet Q4 loss widens

India's second-largest low-cost carrier, SpiceJet, widened its loss to Rs 249 crore for the quarter ended March 31, from Rs 59 crore in the year-ago period, owing to depreciating rupee and high fuel prices.

The carrier, after two consecutive years of profit, ended 2011-12 with a loss of Rs 605 crore, against a net profit of Rs 101 crore in 2010-11 and about Rs 62 crore in 2009-10.

The annual loss worsened the net worth of the airline to Rs -153 crore in 2011-12 from Rs 321 crore in 2010-11, according to BS Research Bureau.

The airline saw a 46 per cent increase in revenue to Rs 1,113 crore in the fourth quarter of 2011-12, compared to Rs 760 crore in the year-ago period.

Though the airline carried less passengers in the fourth quarter, it saw an 18 per cent increase in revenue.

Load factor was at 74 per cent, compared with 81 per cent in the year-ago period.

http://wap.business-standard.com/storypage.php?id=5&autono=475878

GMR Infra posts Rs 366 cr loss in Q4 Losses narrowed by 64% compared to Jan-Mar 2011

GMR Infrastructure today reported a consolidated net loss of Rs 366.16 crore for the January- March quarter of the last fiscal, hit by losses incurred by its subsidiary DIAL, which is the operator of Delhi Airport.
However, the losses have narrowed down by about 64% in the fourth quarter as compared to loss of Rs 1,006.74 crore of the January-March period of FY'11

"Delay in tariff revisions on Delhi Airport has led to DIAL reporting a loss of Rs 573 crore in 2011-12. It was an exceptional situation," GMR's group Chief Financial Officer A Subbarao told PTI.

Stating that Airport Economic Regulatory Authority (AERA) has notified the revision in tariff rates, including User Development Fees, for Delhi Airport from May 15, he said that "overall situation will be much more different post revision. All of this (DIAL making losses) would be history."

According to the AERA order, the tariff revision amounts to 346% increase in airport charges for two years.

"With that (revision of tariffs), we are looking to overcome some of the losses. It will begin from the current quarter but full impact will be visible from July-September quarter onwards," he said.

GMR's net sales during the fourth quarter were also down 2.58% to Rs 2,099.28 crore, largely due to non-recognition of Rs 100 crore from National Aviation Company of India (NACIL) in the airport division and drop in power sector revenue due to gas shortage.

"We don't know how long we will have to wait for gas. It's a kind of force majeure situation. Our units were running at 45% plant load factor (PLF)," he said.

For the full year 2011-12, the infrastructure major
reported a net loss of Rs 603.34 crore vis-a-vis a net loss of Rs 929.64 crore of FY'11 due to losses by airports business and drop in revenues from the power business.

However, its net sales were up 31% to Rs 8,473.03 crore in the last fiscal largely due to 139% revenue growth in EPC (engineering, procurement and construction) segment and significant growth in airports business.

Talking about the power business, Subbarao said that GMR will be adding 1,650 MW generation capacity in the current fiscal.

Besides, commissioning of 687 MW power project at Rajahmandry in Andhra Pradesh would depend on availability of gas, he said, adding that 93% of work has been completed.

By next quarter, the company would also begin work on six laning of 555-km long Rs 7,700 crore Kishangarh-Ahmedabad project. The company has recently secured loans worth Rs 5,400 crore for the project by IDBI-led consortium.

GMR shares were down 6.51% in the late afternoon trade at Rs 19.40 apiece on the BSE.

http://business-standard.com/india/news/gmr-infra-posts-rs-366-cr-loss-in-q4/166295/on

Kingfisher Airlines Q4 loss more than trebles at Rs 1150 crore

MUMBAI: Kingfisher Airlines' net loss more than trebled in the quarter to end-March from a year earlier, battered by high fuel prices and a weakened rupee, but the ailing Icarrier pledged a return to full-scale operations in the next 12 months.

Debt-laden Kingfisher, controlled by liquor baron Vijay Mallya, has slashed its flight network down to the bare bones as it seeks cash to continue operations and repay around $1.3 billion of loans.

"The company has a focused fleet re-induction plan and hopes to be back to full-scale operations in the next 12 months backed by a recapitalization plan that the company is actively pursuing and confident of achieving," Kingfisher said in a statement on Thursday.

Kingfisher lost Rs 1150 crore ($90.1 million) in the fiscal fourth quarter, 74.8 per cent more than a loss of Rs 360 crore a year previously. Revenue fell 54 per cent to Rs 740 crore.

Kingfisher has pared its schedule to 120 flights per day from 370 per day in September and has ditched its international operations in an attempt to bring losses under control.

The airline has become a byword for country's brutal airline industry, where carriers struggle with high taxes on jet fuel, a harsh regulatory environment and cut-throat competition that keeps fares low.

The carrier blamed losses on high fuel prices, a weak rupee and an "unprecedented, tough operating environment," but said it would return to normal services within 12 months.

"The company has a focused fleet re-induction plan and hopes to be back to full-scale operations in the next 12 months backed by a recapitalization plan that the company is actively pursuing and confident of achieving," it said in a statement on Thursday.

National carrier Air India has been forced to cut most of its international routes due to industrial action by its pilots, handing Jet Airways - the country's top carrier - an opportunity to increase aggressively its market share in international routes.

Low-fare and mostly domestic carriers such as Indigo - the only airline making money in India - and Spicejet have also gained market share recently as Kingfisher and Air India have suffered.

Spicejet said on Wednesday that its net loss for the January-March quarter had widened more than four-fold, but it expected lower costs once the company starts importing jet fuel directly.

FUND CONSTRAINTS

Kingfisher needs at least $500 million immediately to keep flying, according to the Centre for Asia Pacific Aviation, but there has been no sign of funding in the near term.

The company said its net loss for the year to end-March was 23.3 billion rupees, more than double its loss in the previous fiscal year. That compared with the 15.4 billion rupees loss forecast by two analysts, according to Thomson Reuters I/B/E/S.

India's plans to allow foreign airlines to invest up to 49 percent in local carriers - for which Kingfisher has lobbied hard - has not yet taken off, adding to its funding crisis.

Mallya has repeatedly insisted that several domestic and international investors are interested in his company, and for months the names of many foreign airlines and local tycoons have been reported as prospective White Knights, but so far there has been much talk and no money.

If Kingfisher fails to turn the airline around, its banks - which have $1.3 billion in loans outstanding - would be left to pick over the carcass in a country that does not have a formal bankruptcy process.

Loans are secured in part by a combination of guarantees by the airline's parent, the UB group, as well as Kingfisher shares, Mallya's personal guarantees, its Mumbai real estate assets and the Kingfisher brand itself, bankers said.

European planemaker Airbus, which has accommodated Kingfisher by pushing its aircraft deliveries back in the queue, would lose outstanding orders for 92 planes with a combined list price of $12 billion. It would also see Kingfisher's fleet enter the second-hand market.

http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/kingfisher-airlines-q4-loss-more-than-trebles-at-rs-1150-crore/articleshow/13682603.cms

HAL to make multirole aircraft with Russian firm

BANGALORE: Hindustan Aeronautics Ltd (HAL) will manufacture a Multi-role Transport Aircraft (MTA) with a Russian partner primarily for the Indian and Russian air forces, the state-run defence behemoth said Tuesday.

"The twin-engine aircraft in 15-20 tonne class will be designed, co-developed and manufactured for cargo/troop transportation; para-drop/air drop of supplies, including low altitude parachute extraction system," HAL chairman R.K. Tyagi said in a statement here.

As per current estimates, the initial requirement will be 205 aircraft - 100 for Russia, 45 for India to replace its vintage Soviet era AN-32 aircraft and the remaining 60 to be sold to third countries.

In its transport fleet, the IAF has about 100 AN-32, including some overhauled and upgraded versions.

To execute the $600-million defence project, the $2.6-billion HAL entered into a contract here Monday with United Aircraft Corporation (UAC) of Russia and the 50:50 joint venture they have set up - Multirole Transport Aircraft Ltd.

Capable of short landings and takeoffs, the aircraft will have capacity to ferry about 80 troops, infantry fighting vehicles, artillery pieces and ammunition and can be deployed for battlefield medical evacuation.

With a glass cockpit for electronic instrument displays, fly by wire controls and full authority digital engine control, the aircraft will have 800kmph cruise speed and a range of 2,500km without refuelling.

HAL will design and develop the MTA at its aircraft research and development (ARDC) centre in this tech hub, while its transport aircraft division at Kanpur in Uttar Pradesh will manufacture prototypes and commence serial production after the certification process.

"Our objective is to achieve self-reliance in design, development and production of a MTA and manage the programme with international collaboration and global suppliers," Tyagi said.

The first test flight of the prototype will be in five years (2017) and regular production two years later (2019).

HAL will also share the development cost of systems and manufacture of components, sub-assemblies and composite structure.

The tripartite contract was based on the inter-government pact signed in September 2010 by the Indian and Russian governments for joint design, development and production of the aircraft on cost sharing basis by the joint venture partners.

The joint venture will also work with Russia's aerospace major Rosoboronexport to co-develop the aircraft.

"We will showcase our expertise in designing the aircraft and its systems, manufacturing and flight testing in collaboration with our Russian partners in Moscow and India," Tyagi said.

The Kanpur facility had manufactured transport aircraft such as Avros HS-748 and Dornier Do-228 in the past for the services.

In all, the company manufactured 89 Avros from 1964 to 1984 and 116 Dorniers from 1984 to March 2012.

Two Dorniers were exported to Mauritius, while one export order to Seychelles is under execution

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/hal-to-make-multirole-aircraft-with-russian-firm/articleshow/13647004.cms

Air India & Kingfisher Airlines crisis: Emirates grabs 20% share of outbound traffic

NEW DELHI/MUMBAI: Emirates, the flagship carrier of Dubai, appears to be playing the role of India's national carrier as domestic players grapple with various crises.

The airline, which operates 185 flights per week, more than any other foreign carrier, has garnered a 20% share of the total outbound traffic over the past year, according to industry sources, edging out competitors in usurping the void created by the curtailed overseas operations of Air India, the actual national carrier, and debt-laden Kingfisher Airlines.

Emirates is well ahead of peers such as Singapore Airlines (86 flights), British Airways (48) and German carrier Lufthansa, all gateway carriers.

A gateway carrier picks up traffic from other countries and routes it through their hub, which is Dubai in case of Emirates. Dubai is a major destination in its own right and is ideally positioned for Indians wanting to catch flights to other parts of the world.

An industry official expressed concern at what he describes as Emirates' ability "to get what they want" from the Indian government.

"Emirates has always enjoyed government confidence better than other carriers. They have always been able to get what they want from India, in spite of the fact that Dubai is no more witnessing a huge surge in manpower requirement from India. In this case, I think a no-objection certificate could have been obtained from Indian industry as a whole and someone should say we can't overlook Indian carriers before taking such decisions," said Jitendar Bhargav, a former executive director of Air India.

Orhan Abbas, vice-president-India & Nepal, Emirates, said, "India is our largest market in terms of operations on our global network and contributes significantly to the overall revenues of the airline. The country has a large population of global citizens and frequent travellers. It is difficult to say what our market share is, but we are the largest international carrier serving India." "Our company has registered a 50% rise in bookings for Emirates over the past three months, which is by far the largest jump for any airline during this period," Pratik Mazumder, marketing head of online travel portal yatra.com, said.

According to another travel portal, Via.com, Emirates had a market share of 15% in 2010.

Expanded Rapidly in Last 6 Years

National carrier Air India had a near-14% share then, which has now shrunk to a miniscule slice due to the pilots' strike that has jeopardised its international operations.

Though it started flying to India way back in 1985, Emirates has expanded rapidly in the last six years, adding over a 100 flights per week since 2006, when bilateral agreements with various countries, including the Gulf region, were liberalised.

While Emirates operates 56 weekly flights from Dubai to six US destinations, Indian carriers pale in comparison. Air India, whose long-haul flights have been truncated due to an agitation by 400 of its pilots, plans to scrap one of its two flights to the US as it is proving unprofitable, in addition to the one to Toronto from Delhi. Essentially, Emirates picks up passengers from India and flies them to different parts of the world from Dubai.

"Forty per cent of all international traffic from India is Middle-East bound. With the shutdown of Air India's international operations, especially as it had a monopoly on the US routes, as well as the pullout by American Airlines, Gulf carriers will be the undoubted beneficiaries," travel technology conglomerate Bird Group ED Ankur Bhatia said.

Even a recent policy change allowing all domestic airlines to consume allocated bilateral rights (the right to fly to a foreign destination) until they exhaust them, may not have much impact as Indian carriers do not have enough wherewithal, in terms of the number of aircraft or the funds to buy them, to do so.

In comparison, Emirates has already exhausted its 55,000 seats per week quota to India and also availed of a 2% relaxation allowed under its air service agreement (ASA) with India, which gives it 1,100 additional seats this summer season and the flexibility to add 4-6 more flights.

Industry insiders say the relaxation will give Emirates more scope to add flights on its low-cost arm FlyDubai as there are some Indian destinations where Emirates has used up flying rights.

Global aviation consultancy firm Centre for Asia-Pacific Aviation (CAPA) has said in its 2012-13 aviation outlook that its carriers such as Emirates, Qatar Airways and Turkish Airlines, which have the most aggressive expansion plans, are pushing for additional bilaterals as their current entitlements are exhausted.

"Government's 2% is not going to make any significant impact, but might allow Emirates the flexibility to introduce A380 on their Delhi service. This comes as a surprise. The government's continuing ad-hoc approach to policymaking, especially relating to bilaterals, gives no one clarity on what is India's bilateral position," said Kapil Kaul, CEO-India, CAPA.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-india-kingfisher-airlines-crisis-emirates-grabs-20-share-of-outbound-traffic/articleshow/13678892.cms?curpg=2

HC rules against advanced training

NEW DELHI: The Delhi High Court on Wednesday declined to hear the appeal filed by the striking Air India pilots, challenging the Single Bench order, which had stayed the training of pilots till the implementation of Justice Dharmadhikari panel recommendations.

A Bench comprising Chief Justice A K Sikri and Justice Rajiv Sahai Endlaw made it clear that the striking pilots had no right to get training on the advanced Boeing-777. “Let them call off the strike. We will then hear the matter,” the Division Bench said. The court also made it clear that the on-going training of the Air-India pilots would not be disturbed.

“As long as the Air-India pilots are on strike, the court is not inclined to hear the matter. They cannot go on strike as well as get training simultaneously,” the order stated. The Bench, while posting the matter for hearing in July, made it clear that the pilots could file an application for hearing the matter if they called off their strike.

And counsel for Air India, Lalit Bhasin informed the court that staying the training programme would result in a huge financial loss to the national carrier and the advance flight would be grounded as well.

According to Air India, some 200 commanders, chief pilots and 200 first officer co-pilots need to undergo training on the Boeing-777, but presently only 64 commanders and 62 co-pilots were being provided the requisite training.

This prompted the Bench to ask whether the Air India pilots were on strike and getting trained at the same time.

http://expressbuzz.com/nation/HC-rules-against-advanced-training/397013.html

Multi-modal transport system planned at airport

Work expected to commence tomorrow

Following discussions spread over several months, authorities have finalised a plan for a multi-modal transport system at the Chennai airport that will combine different forms of public transport systems, including metro rail and bus services.

The work is expected to commence on Friday, according to an Airports Authority of India official, and will be completed in 14 months.

From the ground level up to the roof of the platform, the metro station will come up at a height of 25 metres. Passengers from the metro station can reach the airport terminals comfortably through covered walkalators.

A connecting glass tube will be provided to enable the passengers to reach the domestic or international terminal. Passengers from the terminals can also reach the metro station using the tube.

The overall design has been made in harmony with the architectural features of the domestic terminal building without disturbing the aesthetics of the upcoming terminal buildings, which are being modernised.

Gurpreet S. Shah of the Creative Group, a New Delhi-based architectural firm, which has prepared the design, says: “It was a great challenge to accommodate the metro station within the constrained city side of the existing airport. The challenge was overcome by centralising the position of the station.”

Chennai Metro Rail has entrusted the AAI with the station work within the airport premises, for which an initial payment of Rs.25 crore has been deposited with the authority. The total cost of the work is estimated at Rs.48 crore, says the AAI official.

---

·  It will combine different forms of public transport systems, including metro rail

·  A connecting glass tube will be provided to enable passengers to reach the terminal

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/article3475044.ece

Airport concessionaire made a fortune out of land acquired at Rs. 4 per square yard from Delhi farmers

Farmers, whose land was acquired at a meagre Rs. 4 per square yard in South West Delhi way back in 1955 in the name of undertaking planned development, have now seized upon the opportunity raised by the report of the Comptroller and Auditor General of India — on the loss caused to the exchequer by leasing away of some of this very land by Indira Gandhi International Airport concessionaire Delhi International Airports Limited to commercial enterprises — to demand higher compensation.

For the farmers of Mahipalpur, Nangal Dewat and Rangpuri villages near the airport, many of who have over the last nearly 57 years been fighting legal battles for enhanced compensation, the report was a godsend.

“I was pursuing the land acquisition case and the airport privatisation issue for getting higher compensation for the farmers through the Supreme Court. But when this CAG report came out, I decided to share the documents which had been procured by me from the Ministry of Civil Aviation and the Delhi government,” said Colonel (retd.) Devender Sehrawat, who had filed applications under the Right to Information Act on these issues.

Col. Sehrawat, who is also secretary of the Delhi Gramin Samaj and co-convener of the Kissan Mahasangh, a federation of farmers' organisations, said the CAG draft report had also noted that the government exchequer had incurred a loss of Rs.24,000 crore due to manipulation in the original agreement and undue benefit worth Rs.1,63,557 were granted to the Delhi International Airports Limited through transfer of land.

Thus, he said, as per the CAG, the loss was around Rs. 34 crore per acre — as 4799 acres of land was transferred to the concessionaire — and this worked out to a rate of nearly Rs.70,000 per square yard. However, Col. Sehrawat said the farmers had only been paid a fraction of this for their land.

With 13 hotel projects envisioned on the airport land, the Kissan Mahasangh is now viewing the land transfer deal as a bonanza for the concessionaire and has urged the Civil Aviation Ministry to adequately compensate the farmers for their land and initiate resettlement and rehabilitation measures.

Col. Sehrawat, who had gathered the information to seek higher compensation for the farmers through the Supreme Court, decided to come out with the information in hand following the CAG report.

As per the information accessed by him — and copies of which are withThe Hindu— under the Operation, Management Development Agreement (OMDA) between DIAL and the Airports Authority of India, the concessionaire was allotted 4,799 acres on Rs.100 annual lease rent for 60 years.

Even for commercial use, 190 acres were allowed to DIAL at a price of Rs.31 lakh while in the original contract, out of the total of 4,799 acres, only 240 acres or 5 per cent was earmarked for commercial use.

The transfer of land to the airport concessionaire took place after the matter of land use was considered by the Empowered Group of Ministers (EGoM) in June 2005.

The EGoM had then directed the Civil Aviation Ministry to take the opinion of the Attorney-General on “use of airport land and limit on commercial use of land at airport complex by the JVC [joint venture company]” and legality of permitting the proposed concessionaire to develop the airport for commercial uses unrelated to the airport under the provisions of the Airports Authority of India Act, 1994.

Giving his opinion on the issue on June 17, 2005, the then Attorney-General Milon K. Banerji, had said: “It would not be lawfully permissible for the AAI to grant a lease to any person in respect of any airport property for the purposes of commercial activities listed in Schedule 19 of the draft OMDA like building of golf courses, business parks, hi-tech parks, commercial offices, leisure facilities, commercial arcades, sports complexes, shopping complexes and convention centres etc. unconnected with the scope of airport development and management, including provision of passenger facilities and amenities.”

He had further noted that “if it was considered necessary to permit lease of land to the concessionaire for undertaking commercial activities that go beyond the provision of passenger facilities at the airport, then it must be done only after an amendment was made to the AAI Act, 1994.”

The EGoM had accordingly decided in its meeting held on June 22, 2005, that all commercial activities unrelated to the airport included in Schedule 19 of the draft OMDA be omitted from the final bid document. Thereafter two major Indian real estate firms — DLF Limited and Hiranandani Properties — who had initially shown considerable interest in the proposed airport modernisation projects withdrew from the bidding process.

But the decision on the transfer of land for commercial activities was later reversed by the Civil Aviation Ministry to the advantage of the concessionaire.

http://www.thehindu.com/todays-paper/tp-national/article3474960.ece

Airport concessionaire made a fortune

Farmers whose land was acquired at a meagre Rs. 4 per square yard in South West Delhi way back in 1955 in the name of undertaking planned development have now seized upon the opportunity raised by the report of the Comptroller and Auditor General of India — on the loss caused to the Exchequer by leasing away of some of this very land by Indira Gandhi International Airport concessionaire Delhi International Airports Limited to commercial enterprises — to demand higher compensation.

For the farmers of Mahipalpur, Nangal Dewat and Rangpuri villages near the airport, many of whom have over the past 57 years been fighting legal battles for enhanced compensation, the report was a godsend.

“I was pursuing the land acquisition case and the airport privatisation issue for getting higher compensation for the farmers through the Supreme Court. But when this CAG report came out, I decided to share the documents which had been procured by me from the Ministry of Civil Aviation and the Delhi government,” says Colonel (Retd.) Devender Sehrawat, who had filed applications under the Right to Information Act on these issues.

http://www.thehindu.com/todays-paper/article3475111.ece

SpiceJet Q4 loss widens to Rs 249-cr

Chennai, May 30:

SpiceJet Ltd has posted a loss of Rs 249 crore for the quarter ended March 31, 2012, compared with a loss of Rs 59 crore for the comparable previous period. The falling value of the rupee, high fuel prices and the “significant tax burden” were cited as major reasons for the higher losses.

These issues continued to hurt the entire domestic aviation sector, says a company release.

Higher passenger yields

However, for the quarter, the company posted 46 per cent growth in revenue from operations at Rs 1,113 crore (Rs 760 crore), and an 18 per cent growth in passenger yields to Rs 3,816, from Rs 3,237 in the corresponding previous period. The past 12 months have been exceptional and the Indian aviation industry witnessed unprecedented levels of financial stress.

“Some relief was there in recent months and we are confident of the future, particularly as we will launch numerous international routes soon,” said Mr Neil Mills, CEO of the company.

Direct ATF import

And on the cost side, he said direct import of ATF is just about to commence, which will help to reduce the airline's effective fuel cost.

According to the release, the load factor during the March 2012 quarter came down to 74.4 per cent from 81 per cent during the same period last year. But, the company's market share in March 2012 increased to 17.1 per cent from 13.6 per cent in March 2011.

For the full year ended March 31, 2012, it posted 36 per cent growth in revenue from operations at Rs 3,998 crore (Rs 2,938 crore); and incurred a net loss of Rs 605 crore compared with a net profit of Rs 101 crore in the previous year.

http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3474413.ece