Religare Air Mantra to start state ops

Religare Group's scheduled regional airline Air Mantra today said it will start passenger services from July 23, beginning with daily flights between Amritsar and Chandigarh in the northern sector.

Part of Religare Voyages Ltd, which currently runs chartered services, Air Mantra plans to further expand its network to connect various smaller cities, including Jammu and Dharamshala very shortly.

"Better service and connectivity is our primary objective. Every possible detail has been taken into consideration to ensure that our esteemed passengers have a wonderful experience with safe and comfortable flight," Religare group CEO and MD Sanjay Godhwani said in a statement.

Mantra currently has two exclusive 17-seater Beechcraft 1900D aircrafts, which have been personalised to make every seat window-cum-aisle seat.

"India, a country with 28 diverse states, hundreds of cities and more than a billion people, has limited airlines serving smaller cities. Mantra aims to put those untapped cities on a map, boost air travel and connectivity by inter-connecting cities out of the radar of most airlines," the company said.

"With further expansion on the cards the plan foresees Jammu and Dharamshala entering its fold shortly," it added.

Religare Voyages was set up about five years ago with the launch of air charter services and it has a fleet of 12 aircraft, ranging from the 5-seater turboprops to 17 seater corporate luxury jets.

http://www.indianexpress.com/news/religare-air-mantra-to-start-state-ops/975170/

Upset HC pulls up AI over delay in pilots' reinstatement

The Delhi High Court today pulled up Air India for "sitting over" the conciliation process for reinstatement of its 101 pilots whose services were terminated for going on strike.

The court also asked the AI management to inform it by Wednesday if the high-power committee, set up by it, would decide the issue within four weeks.

Expressing displeasure with the AI management for not fulfilling its assurance to consider the issue of reinstatement sympathetically in a time bound manner, Justice Reva Khetrapal said, "I am upset and I am also getting anguished... You assured the court. Now you want to sit over it. It should be in a time-bound manner."

"It looks now like the management wants to have its cake and eat it too, how it can be allowed?" Justice Khetrapal said while expressing her displeasure with the delay in the process of reinstatement of pilots.

The court passed the order after counsel Lalit Bhasin, appearing for AI management, said that he is sticking to the stand taken by the management to consider the reinstatement issue sympathetically but the statement was not appreciated in the proper spirit.

He also said the management has setup a high-power committee which will examine the issue on case by case basis and it will take at least three months' time.

To his submission, the court asked the counsel to seek instructions from the management whether its committee constituted for the reinstatement of pilots will submit the report within four weeks.

"You will seek instruction whether you will consider the matter of reinstatement of pilots within four weeks," Justice Khetrapal said. (MORE)

http://www.business-standard.com/generalnews/news/upset-hc-pullsai-over-delay-in-pilots-reinstatement/32849/

Religare group's Air Mantra to start passenger flights

Religare group’s Air Mantra on Monday said it would start passenger services from July 23. Initially, it would operate daily flights between Amritsar and Chandigarh.

Through its services, Mantra plans to connect cities that are out of the radar of most airlines. With further expansion on the cards, the company foresees Jammu and Dharamshala entering its fold soon

Sanjay Godhwani, Managing Director and group chief executive, Mantra, stated, “Better service and connectivity is our primary objective. Every possible detail has been taken into consideration to ensure our passengers have a wonderful experience, with safe and comfortable flights.”

Air Mantra is part of Religare Voyages, set up about five years ago with the launch of air charter services. It has a fleet of 12 aircraft, ranging from five-seater turboprops to 17-seater corporate luxury jets.

Sandeep Bhatt, chief executive officer, Religare Voyages, said the company was graduating from operating just air charter services to being a regional airline. It would not compete with commercial airline companies. Instead, it would serve as a feeder service.

Financial services company Religare Enterprises does not hold any stake in Air Mantra. Religare Enterprises, floated by Malvinder Singh and Shivinder Singh, is also promoted by the Religare group. The companies, therefore, share the Religare brand name.

http://www.business-standard.com/india/news/religare-groups-air-mantra-to-start-passenger-flights-/480641/

Oil companies raise jet fuel prices by 1.7%

The hike comes on back of reductions in rates in six fortnights

Snapping a three-month trend of price cuts, state-owned oil firms today hiked jet fuel rates by 1.7% in line with firming international oil rates.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 1,039.1 per kilolitre (kl), or 1.7%, to Rs 62,208.18, according to Indian Oil Corp, the nation's largest oil firm.

The hike comes on back of reductions in rates in six fortnights, including a steep 5% (Rs 3,260 per kl) cut effected from June 16 and about 2% (Rs 1,241 per kl) fall in prices from July 1.

Jet fuel, which had hit an all-time high peak of Rs 71,028.26 per kl in August 2008 shortly after international oil rates touched a record USD 147 per barrel, had fallen to eight-month low of Rs 61,169.08 per kl earlier this month.

In Mumbai, jet fuel will cost Rs 63,002.45 per kl from today as against Rs 61,933.58 per kl previously.

Jet fuel constitutes over 40% of an airline's operating costs and today's increase in prices will wipe away some of the gain the cash-strapped airlines had made from reductions.

No immediate comments were available from the airlines on the impact of the price hike on passenger fares.

The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

http://business-standard.com/india/news/oil-companies-raise-jet-fuel-prices-by-17/178911/on

Air India bond sale to buy Dreamliners

Air India Ltd, which got a government bailout to avoid bankruptcy this year, is planning its biggest bond sale to refinance costlier debt, as it prepares to add Boeing Co’s Dreamliner planes.

The airline is offering Rs 7,400 crore ($1.3 billion) of 19-year notes at a maximum of 9.5 per cent, according to a statement on its website.

It issued 20-year securities at 10.05 per cent in September 2011.

Benchmark five-year bond yields for AAA-rated Indian companies fell 27 basis points this year to 9.25 per cent as central bank Governor Duvvuri Subbarao cut interest rates for the first time since 2009 to arrest an economic slowdown. Similar US rates dropped 20 basis points.

Air India is banking on debt guarantees and almost $6 billion in government cash injections to revive a business that has made losses since 2007. The company is modernising its fleet to save as much as 20 per cent in fuel consumption, attract passengers and open routes only profitable with newer planes.

“The sale will help Air India replace high-cost borrowings with lower-interest debt,” R K Gupta, the New Delhi-based managing director of Taurus Asset Management Ltd, which oversees the equivalent of $679 million, said in an interview on July 13. “It will find takers because of the government guarantee. Public-sector banks and insurance companies will be particularly keen to bid, as they always seek long-term paper.”

The Mumbai-based airline is boosting borrowings to expand operations as CAPA Centre for Aviation, an industry consultant, predicts India’s air traffic will grow 10 per cent this year.

The company is raising $195 million in loans from Standard Chartered Plc to pay for the first two Dreamliner aircraft, according to a statement in March. It also plans to borrow, along with its unit Air India Charters Ltd, an additional $600 million overseas, according to tender documents on its website.

Government backing is helping Air India access funds while privately-owned rivals are short of cash even after shutting some services. Billionaire Vijay Mallya’s Kingfisher Airlines Ltd has been seeking funds since at least November after more than 10 straight quarterly losses that prompted a cut in daily flights to 120 in March from about 340 last year.

Jet Airways (India) Ltd, the nation’s biggest carrier, is looking to sell or lease out surplus aircraft to reduce debt after facing losses for five quarters because of fuel costs and a price war. Last financial year, the airline converted Rs 400 crore of loans into dollar-denominated debt to cut interest expense.

Industry wide losses at the nation’s airlines totalled more than $2 billion in the year ended in March, according to CAPA. That may narrow to as much as $1.4 billion in the current financial year, the consultant estimates.

“Air India is enjoying an advantage that may not be quite correct, ethically,” said P Phani Sekhar, a trader in Mumbai at Angel Broking Ltd. “There’s no level playing field, if you look from a competition perspective.”

Rupee debt costs have declined this year as the Reserve Bank of India cut its repurchase rate in April by 50 basis points, or 0.5 percentage point, to 8 per cent. Benchmark 10-year sovereign bond yields dropped 47 basis points in 2012, according to data compiled by Bloomberg. The extra amount investors seek to hold the notes instead of US Treasuries has retreated 32 basis points from this year’s high of 694 in May.

That fuelled a 46 per cent jump in issuance of rupee-denominated securities this year to Rs 1.1 lakh crore, data compiled by Bloomberg show. The Reserve Bank will cut its repo rate further by 50 basis points at the next review on July 31, analysts at Citigroup Inc, including Singapore-based Gaurav Garg, predicted in a research note dated July 12.

“We may see a further spurt in bond sales after the next RBI policy meeting,” Pradeep Madhav, managing director at Mumbai-based STCI Primary Dealer Ltd, said in an interview on July 13. “Expectations of better liquidity and interest-rate cuts will support debt supplies.”

The yield on the benchmark 8.15 per cent government debt due June 2022 was little changed at 8.10 per cent on July 13, while the rupee gained 1.4 per cent to 55.145 per dollar. Indian bonds returned 5.5 per cent this year in the region’s best performance, according to indexes compiled by HSBC Holdings Plc.

Overseas borrowing costs for Indian companies have slid to a 10-month low as the government prepares to widen tax cuts on international debt sales. The average yield on the dollar- denominated notes of the nation’s firms fell 150 basis points this year to 5.33 per cent, HSBC Holdings Plc data show. A similar measure for Asia dropped 79 basis points to 3.91 per cent.

Air India is still far from a turnaround and its bond sale may have failed if not for the government guarantee, according to the CAPA Centre for Aviation.

‘No Value’
“If not for the government guarantee, there’s no value in those bonds,” Kapil Kaul, New Delhi-based head of the Indian unit of CAPA, said in an interview on July 13. “To turn around, the airline has to reduce losses and create more viable business model. That hasn’t happened yet. An actual turnaround of operations when the airline starts to break even and makes money is far off.”

Air India, once the country’s biggest airline, has slipped to fourth place behind newer private carriers Jet Airways, IndiGo and SpiceJet Ltd., which have lower costs and fewer staff. It lost about 80 billion rupees last fiscal year, according to CAPA. The company, which sought compensation from Boeing for delays in the delivery of the Dreamliner jets, is ready to take the aircraft as negotiations with the plane maker conclude, Chairman Rohit Nandan said in Beijing on June 11.

Dreamliner Effect
The 787 jet, also called the Dreamliner, may help Air India improve operations as well as brand image as the company would be the third carrier to receive one, after All Nippon Airways Co. and Japan Airlines Co. It is the first aircraft to be built with a large plastic fuselage, reducing fuel consumption. The Indian carrier has ordered 27 of the planes.

Bond risk for Indian companies dropped in 2012. The average cost of five-year credit-default swaps insuring against non- payment by seven local issuers dropped 75 basis points to 386, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in privately negotiated markets.

The yield on Air India’s 10.05 per cent bonds due 2031 has declined to 9.35 per cent from 9.55 per cent at the end of 2011 and 9.93 per cent on Sept. 30, 2011, when trading in the notes began, according to prices from the Fixed Income Money Market and Derivatives Association of India. “The new bond sale will help Air India cut borrowing costs,” Nasim Zaidi, secretary at Ministry of Civil Aviation, said on July 12. “The proceeds will be used to refinance part of the company’s working capital loans.”

http://www.business-standard.com/india/news/air-india-bond-sale-to-buy-dreamliners/480649/

Domestic air traffic falls 5% in June: Portals

Decline on account of 30% rise in airfares since last year, lower capacity, say market players

Higher ticket prices and lower capacity led to a decline in the number of airline passengers in June, according to various online travel portals.

The Directorate General of Civil Aviation (DGCA), which is yet to release the data for June, had said passengers flown by domestic airlines had declined to 5.44 million in May 2012, against 5.49 million in the year-ago period, a fall of one per cent. “Domestic passenger traffic seems to have fallen about five per cent year-on-year because of increased fares, which are 30 per cent higher than last year,” said Sharat Dhall, President (online), Yatra.Com

Given online travel portals account for 15-18 per cent of total domestic airline ticket sales, the overall fall in airline passenger traffic could be about one per cent, said an aviation expert.

Noel Swain, executive vice-president (supplier relations), Cleartrip.com, said, “On an average, fares have risen 20 per cent, including the service tax. Fares to/from Delhi have risen 26-27 per cent because of the imposition of a user development fee. The industry was expecting four per cent growth in domestic air passenger numbers in the quarter ended June. However, growth would be flat or lower by one to two per cent. Traffic for June would be four-five per cent less.”

Though Dhall did not specify the total number of seats offered by airlines in June compared to seats offered in the year-ago period, according to his estimates, the total supply volume would be about 25 per cent lower.

Vikram Malhi, Expedia’s country head, stated, “Domestic tourism became a collateral beneficiary of the slide in the rupee, and April and May, being the peak season, greatly benefited from this. However, despite the shift in the focus of Indian travelers, compared to May, June saw the number of air travelers fall 12-14 per cent.” This summer, airfares rose 15-20 per cent, he added.

In 2011, the number of domestic passenger rose 16.6 per cent to 60.7 million, averaging 5.1 million passengers a month. This was 74 per cent higher than 2006 levels, according to a Centre for Asia Pacific Aviation (Capa) report released in December 2011. Capa expects domestic passenger traffic would rise eight-10 per cent in 2012-13, while growth in capacity would be seven to eight per cent, against 15.1 per cent in 2011-12.

Kingfisher Airlines has cut its capacity sharply, operating only 12-13 aircraft and 90-100 flights a day in its summer schedule. Last year, the airline operated 66 aircraft. Now, its fleet size is down to 44. Jet Airways, too, is not planning any capacity addition in narrow-bodied aircraft. “The fleet will remain, more or less, the same for the next 12-24 months,” stated a senior Jet executive.

In a research report last month, Rashesh Shah, an ICICI Securities analyst, wrote, “The Indian aviation sector is entering a low-growth phase, with passenger traffic moving into single-digit growth due to higher ticket prices and last year’s high base effect. However, massive reduction by Kingfisher and the ongoing Air India pilots issue continue to aid other private carriers in maintaining healthy load factors over the medium term, despite negative passenger growth in May.”

http://www.business-standard.com/india/news/domestic-air-traffic-falls-5-in-june-portals/480638/

Air India crisis: Government in no mood to reinstate all sacked pilots

New Delhi: Even as the Delhi High Court on Monday pulled up the Air India management for delaying reinstatement of the 101 sacked commanders out of the 450 striking pilots, the government remains firm that restoration of jobs of the terminated pilots would be on a case-to-case basis.

The court has asked Air India to seek direction from the Centre and respond by Wednesday (July 18) on whether the committee set up to look into the reinstatement of sacked pilots can resolve the issue within four weeks.

One of the members of the Indian Pilots Guild, the union that went on strike on May 7, said the court accused Air India of "sitting on conciliatory proceedings," adding that it was a very good day for them.

However, the government remains stiff on its earlier stance that the cases of pilots will be looked into individually. "Air India has been asked to respond on considering reinstatement of sacked pilots. Consideration doesn't mean taking everyone back," a senior official from the civil aviation ministry told ET .

Such a response comes in the wake of government's plan to rationalise Air India's international operations further, leading to a reduction in the total number of pilots for overseas routes by 40%.

"There were a total of 750 pilots for flying on international routes before the strike and we never needed so many. Now the requirement is for only 400-450 pilots as per our new plan," another official from the aviation ministry said. During the nearly two-month-long strike, the AI management had sacked 101 of the 450 pilots and currently the agitators and the company are negotiating over how to reinstate them.

Sector players say the airline is not only using this opportunity to cut excess flab but also send out a message that the government will be tough on those who jeopardise operations, especially at a time when the airline is struggling to stay afloat and has just received Rs 30,000-crore bailout funds.

According to Air India officials, it's not just the fact that the airline would now require fewer pilots, but many of them also stand to lose their licences if they are unable to clear the medical tests the company plans to put them through.

"Pilots who have claimed sickness for two months have been asked to submit medical reports. But verification of the two-month long sickness and related tests and reports may catch pilots on the wrong foot," a company official said on anonymity.

As per Rule 42 (2) of the Aircraft Rules, 1937, the holder of a licence shall not exercise the privileges of his licence without being declared fit after a fresh medical examination in the event of his having "a sickness or injury involving incapacity for a period of fifteen days or more for which he is licensed..." According to a letter by the Director-General of Medical Services (Air), prescribing the procedure on sickness examination, the medical department of Air India will apply for a no-objection certificate (NOC) to Director of Medical Services at DGCA for each pilot.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-india-crisis-government-in-no-mood-to-reinstate-all-sacked-pilots/articleshow/15011610.cms

Kingfisher Airlines outlook clouded, slips below face value

NEW DELHI: Kingfisher Airlines Ltd dropped nearly 4 percent in trade to a fresh low on Monday after the airline faced a fresh setback on Saturday when its pilots -- who have not received salaries for five months -- planned to drag the management to the labour court.

The stock is now trading below its face value of Rs 10 as fresh worries resurfaced for the airliner after 80-odd pilots refused to fly on Saturday as the airline has not paid salaries for the last five months, and this led to the cancellation of over 40 of the 110 daily flights it operates.

"The debt-ridden airline has paid February salaries to around 75 percent of the staff, while the rest are yet to get their dues," PTI reported.

Kingfisher closed 3.78 percent lower at Rs 9.94. It has hit an intraday low of Rs 9.85 and a high of Rs 10.40.

"Following the promise of payment by Monday, the pilots resumed work and the airline is now back to operating its truncated schedule with the 10-12 aircraft it currently flies. But, the next round of trouble may not be far," TNN reported.

According to most analysts, it's a make-or-break situation for the carrier and it will be a turbulent ride for the company with the absence of any reforms.

"(The) King of Good times has now has lot of bad news up its sleeve. We strongly believe the airline sector in India is very difficult to operate in and without major reforms it will be a rough ride. However, FDI in aviation alone will not help the situation," AK Prabhakar, Senior Vice President - Equity Research at Anand Rathi, said.

"We maintain a 'sell/avoid' rating on the stock as it will be very difficult for the company to come out of this mess," Prabhakar added.

"The aviation ministry has, however, made it clear it will not pull the plug on Kingfisher, which has debts of over Rs 7,000 crore with banks - mostly public sector banks - and its total liabilities-cum-losses are over Rs 10,000 crore," the report added.

"Technically, the daily as well as weekly charts look weak for KFA, and with the stock breaking the previous support levels of Rs 10-10.50, it has indicated the weakness would persist going forward," Kunal Bothra, Senior Technical Analyst - Manager Advisory at LKP Securities Ltd, said.

"The 200 DMA is at Rs 20 levels, which gives an indication that the stock could still face selling pressure," Bothra added.

http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/kingfisher-airlines-outlook-clouded-slips-below-face-value/articleshow/14995315.cms

Passenger booked for stealing cash from airport shop

A passenger who allegedly stole an envelop containing Rs.74,190 in cash from a retail shop at the domestic pier of Terminal-3 at the Indira Gandhi International Airport here over the weekend has been booked for theft.

The general manager of “Buddy Retails” lodged a complaint with the Central Industrial Security Force personnel alleging that an envelop containing cash was stolen from the shop on July 14. The CISF examined the closed-circuit television camera footage and zeroed in on a passenger who had arrived on board a flight from Raipur in Chhattisgarh and while going towards the domestic transfer immigration area, he allegedly lifted the envelop.

The passenger identified as Sachin Gupta, a resident of Raipur, was spotted boarding a flight to Kathmandu. Enquiries by the CISF revealed that he had booked a return ticket from Kathmandu to Delhi for Monday. Accordingly he was intercepted and handed over to the police for further action.

http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/article3647718.ece

Who is at fault for Airport Express mess?

Reliance Infra, the concessionaire for the country’s first high-speed public-private partnership (PPP) metro railway system, has been quick to blame the Delhi Metro Rail Corporation (DMRC) for the civil faults that have led to the suspension of the line. The DMRC, for its part, has accused the company of poor maintenance that led to the deterioration of the faults.

In the squabble over who is to blame for the faults, the question that remained unanswered is whether both DMRC and Reliance Infra knew about the faults before the line was commissioned and allowed the service to continue despite the risks.

In a letter to Union Urban Development Minister Kamal Nath, Reliance Infra has alleged that the DMRC has accepted that the civil works executed by them were defective.

“The DMRC had given us in writing that the metro corridor [with severe civil structure defects] was safe to continue to run trains, and it is actually the DMRC who tried to force us to take undue risks to life and property,” the letter said.

During a media interaction on Monday, the concessionaire brushed aside accusations that its decision to suspend the line was a fallout of poor financial returns from the Airport Metro line.

Reliance Infra Chief Executive Officer Sumit Banerjee said PPPs are not known to make profits and that the Airport Express Metro was no exception. He also professed the company’s wish to continue running the metro line.

“The issue of finances does not arise here; PPPs do not make profits from day one. These are not low-hanging fruits. The assumption is untrue,” Mr. Banerjee said.

He insisted that the decision was based purely on safety concerns. The defects, he said, have been there since the day it was constructed and were identified after an inspection by the company. He also rebutted the DMRC’s allegations that the faults were made worse by poor maintenance. Referring to the faults, Mr. Banerjee said the construction did not follow the drawings that were prepared. When asked if the pressure to commission the line contributed to the faults going unnoticed, he refused to comment.

DMRC chief Mangu Singh also gave evasive answers on the DMRC’s culpability. He said the design of the bearings was not followed during construction and that defects existed from day one. On whether he takes moral responsibility for the faults, he said: “Let us wait for the report.”

http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/article3647710.ece

Aranmula airport: greens allege scam

Say over 90 acres of wetlands converted in the last one decade

The controversy over the proposed private international airport project at Aranmula has taken curious turns with the Cabinet decision to regularise conversion of paddy fields and wetlands that have taken place prior to 2005 as well as the clearances reportedly given by various government agencies for the project, allegedly violating prevailing laws, rules and regulations.

“Both the Congress-led United Democratic Front and the Communist Party of India(Marxist)-led Left Democratic Front were equally responsible for the violations taken place in the name of the airport project at Aranmula, leaving the environment, eco system and the hapless villagers at the receiving end,’’ said V.N. Gopinatha Pillai, vice-president, All-Kerala River Protection Council.

Talking toThe Hindu, Mr. Pillai said the illegal conversion of the biodiversity-rich wetlands and Aranmula Puncha (paddy fields) began during the tenure of the UDF government headed by A.K. Antony in 2003 and the illegal activity continued during the successive governments headed by Oommen Chandy and V.S. Achuthanandan.

‘Protests silenced’

“The protests by the local peasants and farm worker groups against the unabated illegal land conversion at Aranmula were deftly silenced by certain vested interests attached to various mainstream political parties. The local protests too turned out to be mere cries in the wilderness in the backdrop of the ‘ambitious development agenda’ aired by the land mafia with the strong backing of the official-politician nexus,” Mr. Pillai said.

In the past one decade, the land mafia had converted as many as 90 acres of paddy fields, bulldozing an adjoining hill they purchased for the purpose, he said.

The authorities concerned and the government had not only turned a blind eye towards the wanton paddy field conversion but also given every support to the illegal activity, he alleged. One could easily perceive blatant violations of key directives issued by the Supreme Court and the High Court with regard to environment protection and wetland conservation at Aranmula.

Now, the government has decided to legalise all land conversions taken place prior to 2005 in a desperate attempt to protect the land mafia and save them from the clutches of law, he alleged.

P. Induchoodan, convener of the Palliyoda-Pallivilakku Samrakshana Samiti that has been campaigning against the land conversion, said there was every reason to suspect the involvement of top-level leaders of certain mainstream national parties in the airport scam.

Probe into monetary source

Mr. Induchoodan said the samiti had already demanded a detailed investigation by a Central agency into the monetary source of the promoter company and various transactions taken place in the name of the airport project.

The over-enthusiasm shown by certain Congress leaders and two MPs in supporting the private company and the airport project was suspicious, he alleged.

Even the Legislative Committee on Environment chaired by C.P. Mohammed had expressed serious concern over the anti-environment activities taking place at Aranmula. Panel member and former Agriculture Minister Mullakkara Ratnakaran, and the socio-environmental activist Medha Patkar, have also demanded a CBI probe into the Aranmula airport scam.

The promoter company claimed to have obtained all necessary clearances, including the one from the Union Ministry of Environment, for the proposed airport project, said P. Prasad, environmentalist and district secretary of the Communist Party of India.

Even the Prime Minister’s Office had been brought under the shadow of suspicion with the promoters’ statement that T.K.A. Nair, Prime Minister’s advisor, had helped them obtain various clearances for the project, Mr. Prasad said.

---

·  UDF, LDF blamed for violations

·  Investigation by Central agency demanded

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/article3647892.ece

Airport loaders protest

A section loaders at the Chennai airport on Monday resorted to a protest when they were questioned by an Airports Authority of India (AAI) official.

According to airport sources, the two loaders of Air India, Jayaprakash and Murugan were standing near the highly secure aircraft bay no. 28. On seeing them, an AAI official asked what they were doing there and seized their identity passes.

Agitated, the loaders called their counterparts in other airlines to the tarmac, where they held a flash strike for about 40 minutes from 11 a.m. onwards. No luggage was loaded on to the aircraft then. However, Airport Director, H.S. Suresh diffused the situation. The loaders then returned to their duties.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/article3647655.ece

Aranmula airport project turns toxic for proponents

Kochi, July 16:

The Aranmula airport project has landed both the previous LDF and present UDF governments in the State in an unenviable situation.

The State industries department reportedly denotified an extent of 2,000 acres, out of an area of 2,500 acres which was notified earlier as an Industrial area in Aranmula in Pathanamthitta district for constructing a private airport following strong opposition from the local public.

Subsequently, the Chief Minister, Mr Oommen Chandy, was quoted as saying that “the airport would not require more than 500 acres.” But experts claim that construction of a greenfield airport will require not less than 1,200 acres of land.

Environmental activists, meanwhile, alleged that the Cabinet decision taken on February 8 this year giving the nod for regularisation of converted paddy fields and wetlands prior to January 1, 2005 after imposing a heavy fine of up to 15 per cent of the fair value of land in various categories, was aimed at legalising the already converted flood plains, Aramula punja, parts of a tributary of the Pampa river and some ‘puramboke’ land.

The previous LDF government had, in fact, notified acquisition of the land, including vast stretches of paddy fields in Aranmula, to develop the airport by a private consortium.

The former Chief Minister, Mr V.S. Achuthanandan, who reportedly issued a directive to the Pathanamthitta district collector on January 12, 2010, to initiate immediate steps to ensure land transfer for the Aranmula airport and facilitate construction activities and report the matter to him accordingly, has now surprised everyone by saying that “the airport is not necessary at all.”

Mr Achuthanandan said on Saturday, “Its promoters were found to have violated various laws, which would have a disastrous impact on the villages.”

He alleged that a former Additional Chief Secretary was behind the controversial industrial area notification of a large tracts of land spread across three villages the region.

“The Industrial area notification was aimed at protecting certain vested interests and to destroy the image of the previous LDF government,” he alleged.

The “dream project” seems to have turned sour for both the LDF and the UDF.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/article3647054.ece

Delhi airport metro unlikely to resume operations before September

New Delhi, July 16:

The Delhi airport metro express line — operated by Reliance Infrastructure — is unlikely to restart operations before September. But the Ministry of Urban Development has promised to make its best efforts to start the service by August end, though unwilling to commit to a date. The Ministry is tight lipped on the estimated cost of repair work.

REPAIR WORK TO START

To fix responsibility for sharing the cost of repair, the Ministry has formed another Committee. The Urban Development Minister, Mr Kamal Nath, did not come to the press conference here on Monday, leaving it to the Secretary to face the media.

The affected construction area requires specific rehabilitation work, a joint inspection team (JIT) formed to study the technical fault said in the report it submitted today. After these faults are rectified, there will be another set of trial runs on the line to get the green signal from the Commissioner of Metro Rail Safety.

The JIT committee had representatives from the Railway Ministry, Delhi Metro Rail Corporation (DMRC), the firm which designed the structure (Systra), and Reliance Infra. “The JIT studied 540 out of about 2000 bearings. They found some shortcomings. They require specific rehabilitation measures. The design firm – Systra – will undertake the rehabilitation work,” Dr Sudhir Krishna, Secretary, Ministry of Urban Development, said.

COST

Dr Krishna did not reveal any details on the expected cost of repair work. “That we will get to know only after the work is done,” he said. However, Dr Mangu Singh, Managing Director, DMRC, said that the cost of bearings affected is Rs 87 lakh. The repair work cost will be higher. The Urban Development Ministry has formed another two-member committee, comprising Additional Member (Works) - Railways and Additional Secretary, Ministry of Urban Development, to fix responsibility for this damage. A blame game is on between Reliance Infra and DMRC on owning up responsibility for damage to the tracks. Reliance Infra’s CEO, Mr Sumit Mukherjee, insists that the nature of damage is such that it had to be right from the construction phase. Mr Mukherjee declined to comment on what was the daily revenue from the metro line, though he said the company will claim damages. “That DMRC is doing the repair work means they are admitting,” he insisted.

PPP in METROS

Both the Urban Development Ministry and Reliance Infra said that Reliance Infra had no plans to desert the project. “We are all for PPP. We will try and ensure that the financial viability is maintained,” Dr Krishna said when asked about the future of PPP projects in metro rail.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/article3647014.ece

Emirates offers 15% discount on flights from Chennai

Chennai, July 16:

Emirates is offering a 15 per cent discount from Chennai to select destinations.

Valid to over 50 destinations, for Economy and Business Class, the sale is available on booking betweenJuly 16 and 23.

The outbound travel must commence on or before November 30, says a press releasefrom Mr Sudhir Sukumaran, Regional Manager, Southern India, Emirates.

Under this offer, an Economy Class return airfare from Chennai to Dubai will start at Rs 19,221, inclusive of taxes.

Emirates operates 185 weekly flights to 10 Indian destinations, the release added. raja.simha@thehindu.co.in

http://www.thehindubusinessline.com/todays-paper/tp-logistics/article3647012.ece