Dreamliner to ply on domestic routes from Sept 19

Air India hopes that the fuel-efficient aircraft will bring back its good old 'Maharaja' days

Air India's new Boeing 787 Dreamliner will start flying on domestic routes from September 19, with the airline hoping that the fuel-efficient aircraft will bring back its good old 'Maharaja' days by saving costs.

With Air India implementing its turnaround and financial restructuring plans for several months now, the beleaguered national carrier has reported a cash surplus of Rs 48 crore between April and July against a cash deficit of Rs 586 crore during the same period last year.

"Dreamliner is an exciting plane. We hope that it will take Air India back to its good old 'Maharaja days'," Civil Aviation Minister Ajit Singh told reporters here. 

US manufacturer Boeing claims the Dreamliner consumes 15 -20% less fuel than an aircraft of the same size, thus substantially reducing fuel costs which comprises 40% of an airline's total operational costs. 

"Dreamliner will start flying on domestic routes from September 19. The first flight will be on Delhi-Chennai route. Later on, six more destinations will be added. It will fly on international routes in winter," Air India CMD Rohit Nandan said.     

Singh, along with former Civil Aviation ministers Shahnawaz Hussain and Rajiv Pratap Rudy and Congress MP Naveen Jindal, cut the ribbon to formally launch Air India's first Dreamliner at a function at the IGI airport.    

With the government already committing to provide Rs 30,000 crore to the cash-strapped carrier, he said no more funds would be given to the airline which would now on have carry out aggressive cost-cutting measures to become competitive. 

Air India would take deliveries of five more B787s by the end of this year, seven in 2013, five in 2014, six in 2015 and three in 2016, he said, adding the airline would need to add more planes to expand its share in the domestic as well as international market.     

"After the pilots strike, we have started to fly all destinations except Toronto, but we are not content with our market share. We need more aircraft but it is a long term plan and will be done after the approval of the Cabinet," Singh said, adding Air India has set up a committee to look into its future aircraft requirement

http://www.business-standard.com/india/news/dreamliner-to-plydomestic-routessept-19/186459/on

Kandahar hijack accused arrested after 13 years

Nearly 13 years after the infamous Kandahar hijacking episode, the Jammu and Kashmir Police on Thursday claimed to have arrested a top militant commander from an undisclosed location on the Jammu-Srinagar highway for his alleged involvement in the 1999 hijacking case.

He has been identified as Mehraj-ud-din Dand of north Kashmir’s militancy-infested Sopore town. “We arrested Mehraj on Wednesday night after we received inputs that he was on his way from Nepal to Kashmir,” Inspector General of Police Jammu Range, Dilbag Singh told reporters in Jammu.

Sources said Mehraj had close ties with a senior diplomat in Nepal, who helped him in carrying out various activities including hijacking of the flight. However, police remained tight lipped over the name of the diplomat.“Mehraj is the main accused, who made arrangements for all the logistics to facilitate the Kandahar hijacking. He helped the five masked men to enter into the aircraft with guns, knives and grenades and arranged the finances,” the IGP said.

http://www.deccanherald.com/content/278395/man-behind-ic-814-hijack.html

Kerala airport at Aranmula gets nod

Kochi: Kerala’s infrastructure dreams got another boost on Thursday when the federal authorities gave sanction for the state’s proposed new airport at Aranmula in Pathanamthitta district.

The Aranmula airport will be the fourth international airport in Kerala, after Thiruvananthapuram, Nedumbassery and Kozhikode.

Pathanamthitta district has a high concentration of families that have non-resident members based around the world.

The official nod came from the federal forests and environment ministry, according to reports from New Delhi.

The project had been caught in controversy over land-filling of paddy fields, and reports say that the ministry gave approval for using the land for airport construction considering that no paddy cultivation had been undertaken on that land for a decade.

The KGS group, which is proposing to establish the airport, is understood to have about 500 acres of land holding for the project. The latest nod from the federal authorities marks a key step in getting all the technical clearances required for the project.

On Wednesday, the inaugural day of the Emerging Kerala meeting, some organisations in Aranmula had held a strike to protest the airport project, pointing out that it would adversely affect the environment and heritage of the area.

http://gulfnews.com/news/world/india/kerala-airport-at-aranmula-gets-nod-1.1074477

AI puts Dreamliner on domestic duty

MUMBAI: It is a brand new aircraft. There are only 30-odd of its kind in the world as of now. It is all about passenger comfort as it has been made to fly on long-haul international routes. But in India, one can fly the Boeing 787 Dreamliner aircraft with a domestic air ticket from next week onwards.

Air India's first Boeing 787 Dreamliner landed in Mumbai on Thursday. However, AI has not yet woken up to the idea of marketing the Dreamliner's first commercial flight.

From September 19, AI will operate its Delhi-Chennai-Delhi and Delhi-Bangalore-Delhi flights with its spanking new Dreamliner. "For passengers in India, it is a wonderful chance to experience the aircraft. No airlines would put a long-haul aircraft and that too a recently-launched one, like the Dreamliner, on domestic routes to operate on a two-hour or forty-minute flight," said an aviation analyst, requesting not to be quoted. "For frequent flyers and aviation enthusiasts, it's a great opportunity to earn some bragging rights," he added. Other airlines in the world that fly the Dreamliners, like All Nippon Airways and Japan Airlines, have put their B-787s on long-haul routes that connect Japan to the US.

However, Air India has not bothered to market this aircraft yet. On Thursday, the cheapest, tax inclusive, one-way fare for AI flights on the Delhi-Chennai route on September 19 and on dates after that was in the range of Rs 9,000. However, it is not possible to book a flight that will be operated by the Dreamliner. All the Delhi-Chennai and Delhi-Bangalore AI flights listed on the airlines' website and that of other travel portals were shown to be operated either by A320 or A321 aircraft. Though there is less than a week to go before Dreamliner operates its first commercial flight on these routes

, the airlines has not yet put out information about which particular flights will be operated by the B-787.

"They should have put out the word by now and uploaded the relevant information online so that passengers interested can book a seat on this aircraft," said a travel agent, requesting anonymity. "They can easily drive up the airfare if they market these flights well," he added.

Air India is scheduled to take deliveries of five more B-787s by the end of this year, seven in 2013, five in 2014, six in 2015 and three in 2016. All Nippon Airways was the first airline to operate the Dreamliner. The B-787 flew its first commercial long-haul flight on January 21 this year from Haneda to Frankfurt. Japan Airlines operates its Dreamliners on the Tokyo-Frankfurt route.

http://timesofindia.indiatimes.com/city/mumbai/AI-puts-Dreamliner-on-domestic-duty/articleshow/16389698.cms

SpiceJet, GoAir to gain from FDI in aviation

NEW DELHI: The government's move to finally clear FDIby foreign airlines into desi carriers is being seen as the most critical first step towards making Indian aviation a viable sector. Both top airline and aviation ministry officials say that the country's cost-unfriendly character towards the sector will need to change to attract money and expertise of foreign airlines or to make big foreign airlines launch new startups here with Indian partners.

"It may not immediately change things for Indian carriers," said Centre for Asia Pacific Aviation (CAPA) India head Kapil Kaul. Issues like prohibitive jet fuel pricing and airport charges would need to be relooked to make investing in an Indian carrier profitable for anyone.

Despite the roadblocks, CAPA and the industry insiders feel that SpiceJet and GoAir will be the first gainers from the move. "This policy change would give Kingfisher an outside chance for survival. But it needs to change a number of things before that. IndiGo and Jet are already close or over the 49% foreign ownership that is talked about," Kaul said.

Kingfisher chief Vijay Mallya, who is banking on FDI to save the airline, claimed he was unaware of the government's latest move for clearing FDI. "I am in a meeting in Europe and have not heard of anything (on FDI)," Mallya said. His crisis-ridden airline has debt of over Rs 8,500 crore and has not paid salary for even March to many employees.

While Kingfisher's survival is linked to this move, UPA's long delay on FDI in aviation had made even foreign airlines switch off. The CEO of an Indian carrier, which is a prime contender for FDI, said: "Foreign airlines got tired of the kabhi haan, kabhi naa thing on FDI. We are in talks but they did not get a due diligence done as that costs money and the foreign airline wants to get it done at a time when they can actually put money."

http://timesofindia.indiatimes.com/business/india-business/SpiceJet-GoAir-to-gain-from-FDI-in-aviation/articleshow/16388384.cms

49% FDI in aviation in agenda for Cabinet Friday

The Cabinet may consider relaxing the norms on foreign direct investment in aviation on Friday. The proposal of 49% FDI is there in the agenda for Cabinet tomorrow amidst the differences among the allies over it, especially Trinamool Congress.

The current FDI norms allow any entity other than foreign airlines (directly or indirectly) to take equity stake of up to 49% in domestic scheduled airlines. This move will allow foreign airlines also to pick up stake in the domestic Indian carriers. Such a move is expected to bring much-needed respite to loss-making airlines such as Kingfisher.

After around 5 quarters or so, four out of six aviation companies showed profits. That also is because of the shrinking of Kingfisher, the airlines were able to do away with below- cost ticket selling. With around 40% fare hike, the airlines were able to show profits in the first quarter of 2012-13.

The FDI in aviation is expected to bring more efficiency in the Indian aviation sector.

In IATA conference in Beijing, the industry also expressed its concerns over 49% FDI. The major concerns were if they would be able to exercise free will without any government interference with 49% stake.

However, Ajit singh ,civil aviation minister, expressed hope that FDI will benefit Indian aviation despite the financial stress the sector is in. In the interview with Business Standard, Singh said, "We are definitely in financial stress. But FDI would be coming for other reasons - the growth we have, the potential we have, a growing middle class, traffic rights and the strategic geographical position. It is basically an enabling legislation and it is up to the airlines."

http://www.sify.com/finance/49-fdi-in-aviation-in-agenda-for-cabinet-tomorrow-news-airlines-mjnpa7iajbh.html

EAC nod for Aranmula airport

An Union Environment Ministry panel has recommended clearance for developing a Rs.2,000-crore international private airport at Aranmula.

The Expert Appraisal Committee (EAC) for Building Construction, Coastal Regulation Zone, Infrastructure Development and Miscellaneous projects has recommended the proposal for environmental clearance with conditions, officials said here on Thursday.

The airport, planned to be built on about 500 acres of land at Mallappuzhassery in Aranmula, has been hit by a controversy after the Opposition Left Democratic Front and a section of local people alleged that it would have disastrous environmental consequences and cause displacement of families.

An estimated 500 acres of paddy field has to be converted for the proposed airport, which is claimed to be the first private international greenfield airport in India, being developed by KGS Aranmula International Airport Ltd, they said. While the company has informed the Ministry panel that the project will be developed at a cost of Rs.81.18 crore for the first phase and Rs.125.44 crore for the second phase, its website claims that the plan is for an airport covering about 700 acres of land to be built at a cost of Rs.2,000 crore.

When contacted, a KGS Corporate House spokesperson confirmed the authenticity of the website. The EAC, which examined the news reports that the project site included wetlands and paddy fields, had sought the comments of the Kerala government and the proponent. In its reply, the proponent had said the State government has notified 500 acres of land for development of the airport and there is no paddy cultivation there for the past ten years.

The Principal Secretary of the State’s Environment Department has stated that an enquiry was conducted based on the ‘‘averments contained in the news item’’ and said the government, vide notification, had declared the land as an industrial area.

http://www.thehindu.com/news/states/kerala/article3893015.ece

SpiceJet in talks with a Gulf airline

SpiceJet has held “preliminary discussions” with a Gulf airline for potential investment in the Indian budget carrier, a news report has said.

“There have been preliminary discussions to check in principle whether there is interest on both sides and the confirmation there would be ‘yes there is’,” SpiceJet CEO Neil Mills told Arabian Business. Any such tie-up depends on a policy shift in India’s aviation industry, which currently prohibits foreign direct investment (FDI) in the sector.

Mr. Mills said as the framework for FDI in Indian aviation was not yet in place, overseas carriers were reluctant to enter more formal negotiations.

http://www.thehindu.com/todays-paper/tp-business/article3894979.ece

Cabinet to take a call on FDI in aviation today

‘There is still a question mark over the political clearance’

The Cabinet Committee on Economic Affairs (CCEA) is likely to take a call on Friday on the fate of the long-pending issue of allowing 49 per cent foreign direct investment (FDI) in aviation, a move expected to give relief to domestic carriers.

“The FDI in aviation has been listed in the agenda of CCEA,” Commerce and Industry Minister Anand Sharma told reporters here. However, there was still a question mark over the political clearance for the move as the UPA ally Trinamool Congress and West Bengal Chief Minister Mamata Banerjee had already opposed the move.

The Finance and Civil Aviation ministries, along with the Commerce and Industry Ministry, have already given thumbs up to the move to amend the FDI guidelines for the aviation sector. The Department of Industrial Policy and Promotion (DIPP) had moved a Cabinet note in this regard.

At present, India allows foreign investors, not related to airline business, to buy up to 49 per cent stake in domestic airlines, but foreign carriers are not permitted to invest in them. Following demands from the cash-strapped aviation industry, the government had, in January, launched the process.

Allowing foreign airlines to buy stake in domestic carriers is expected to benefit Kingfisher Airlines, which is burdened with a debt of over Rs.7,000 crore.

Kingfisher has been strongly pitching for allowing FDI in domestic carriers while other major carriers such as Jet Airways and the only profit-making airline, IndiGo, are opposed to it.

http://www.thehindu.com/todays-paper/tp-business/article3894975.ece

SpiceJet to operate Bangalore to Hubli flight

Bangalore, Sept. 13:  

SpiceJet will operate flights between Bangalore and Hubli from September 27.

Inaugural fare

The inaugural fare will be Rs 1,999 inclusive of all taxes. The Bangalore-Hubli daily flight departs Bangalore at 19.50 hours and will arrive at Hubli at 20.45 hours.

On its return journey, the Hubli-Bangalore flight will depart Hubli at 21.05 hours and arrive at Bangalore at 22 hours.

The airline also has a flight to Mangalore from Bangalore. It will deploy Bombardier Q400 aircraft on the Bangalore-Hubli route and on the Bangalore-Coimbatore route. Its flight will also commence from September 27.

The Bombardier Q400 NextGen turboprop aircraft can accommodate 78 passengers.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/article3893931.ece

Liberalised FDI norms: Foreign airlines adopt wait and watch attitude

New Delhi, Sept 13:  

The Government’s proposed move to liberalise foreign direct investment (FDI) rules in domestic aviation sector is likely to get a lukewarm response from international airlines.

A proposal to allow foreign airlines to acquire a 49 per cent stake in domestic airlines is likely to be taken up at a Cabinet meeting scheduled for Friday. While German carrier Lufthansa was categorical in saying it had “no plans” to invest in an Indian carrier, a spokesman for Singapore Airlines declined comment, saying it was the airline’s policy not to talk about “hypothetical” situations.

In a statement, the Dubai-based Emirates Airlines said, “India is one of world’s most important aviation markets. While the airline’s philosophy is to focus on organic growth, we always welcome any reform that liberalises markets, including FDI rules.”

In a statement, the International Airlines Group said, at this stage they had no plan to invest in any Indian airline. It added that India being a key market, the Group would monitor the changing regulatory environment. IAG is the parent company of British Airways, Spanish carrier, Iberia and bmi.

‘Keen to invest’

Interestingly, earlier this year, Spicejet and Kingfisher Airlines had confirmed that foreign investors were keen to invest in them.

Neil Mills, Chief Executive Officer, Spicejet, told Business Line recently that airlines from the Gulf and South-East Asia had shown “speculative interest” in acquiring a stake in the carrier.

In March this year, the promoter of Kingfisher, Vijay Mallya, told newspersons that at least one international airline was interested in investing in the cash-strapped airline. Both Mills and Mallya declined to name the airlines that had evinced interest.

http://www.thehindubusinessline.com/todays-paper/tp-logistics/article3893837.ece

Air India to finalise bridge finance for Dreamliner today

Mumbai, Sept. 13:  

Bridge financing for the first batch of four new Boeing 787 aircraft, also known as Dreamliners, will be finalised by Friday, according to Air India officials.

Banks, FIs invited

Air India had invited banks and institutions to arrange bridge financing of up to $500 million to help finance the induction of the Dreamliners, one of which was inducted recently.

The airline will repay the bridge loan by selling and leasing back the aircraft, according to the tender document.

“For sale and leaseback of aircraft, we have identified the parties,” said S. Venkat, Director of Finance, Air India.

The carrier has already tied up bridge finance for the first two aircraft.

5 more dreamliners

by December

Air India will be getting five more Boeing 787 aircraft by December.

The first of the 27 Dreamliners ordered by the state-owned carrier made its maiden journey to Mumbai from Delhi on Thursday.

The airline expects to receive the remaining 21 aircraft by 2016.

Despite a decrease in capacity by over 17 per cent due to strike by a section of pilots, Air India posted a 6.5 per cent increase in revenue during April-August 2012 compared to the year-ago period.

Reinstating pilots

On the reinstatement of striking pilots, out of the total 413 pilots, who struck work, 316 have been taken back on duty.

Out of remaining 97 pilots, whose services were terminated, 50 pilots have been recommended for reinstatement, five pilots have not been found suitable for reinstatement and the case of remaining 42 pilots is still under consideration.

http://www.thehindubusinessline.com/todays-paper/tp-economy/article3893875.ece