Comprehensive revival plan to be given soon to DGCA: Kingfisher

NEW DELHI, NOV 6: 

Crisis-ridden Kingfisher Airlines today said it is working on a comprehensive revival plan which will be given to aviation regulator DGCA in the next few weeks.

“We are working on a comprehensive plan which will address the interests of all stakeholders and this will be submitted to DGCA,” an airline spokesperson told PTI when asked about their plans to get the suspension of its scheduled operator’s permit (SOP), valid till this year-end, revoked.

The Directorate General of Civil Aviation (DGCA) had suspended Kingfisher’s SOP on October 19 till further orders after a lockout and its failure to come up with a viable plan of financial and operational revival. DGCA had said Kingfisher had failed to run a “safe, efficient and reliable operations.”

The SOP suspension came after a lockout by the management on October 1 following an impasse with its employees who struck work from September 30 demanding payment of overdue salaries. The lockout was lifted on October 25.

Airline sources said Kingfisher’s plan is likely to be submitted to the DGCA in the next few weeks.

It would have to submit to DGCA a financial and operational plan to revive the airline and its operations. The services can be restored only after the regulator is convinced that the carrier can provide safe and sustainable operations.

Asked about renewal of Kingfisher’s SOP after it expired on December 31, 2012, official sources said a suspended SOP must first be revived. It can be renewed and extended beyond the expiry date only if it is valid and not suspended.

The sources said once Kingfisher submits the plan, DGCA would hold consultations with airport operators, oil companies and other agencies to which the airline owes money, before considering giving it the clearance to fly again.

The government is concerned about how the cash-strapped carrier would pay its dues to its service providers, including airport operators, aircraft lessors and oil companies.

http://www.thehindubusinessline.com/industry-and-economy/logistics/comprehensive-revival-plan-to-be-given-soon-to-dgca-kingfisher/article4070830.ece

Air India eyes Rs 5,000cr from its properties

MUMBAI: After months of dilly-dallying, the cash-strapped Air India is closer to improving its working capital by monetizing its prime properties across India. The national carrier, which has accumulated losses of about Rs 20,000 crore, is all set to appoint a global property consultant to help it raise over Rs 5,000 crore by selling and leasing its prime properties measuring roughly 76.30 lakh sq ft or 175 acres in Delhi, Mumbai and Chennai. Jones Lang Lasalle has emerged as the frontrunner among three other bidder consultants like DTZ and Cushman and Wakefield to advise the airline on the sale process.

The national carrier is also contemplating selling a 25,000-sq-ft commercial building it owns on Poyle Road in London and two flats admeasuring nearly 3,000 sq ft in Tokyo. In Mumbai, the airline owns approximately over 20 lakh sq ft, of which 14 lakh sq ft is in Nerul, housing AI staff quarters. The balance area is divided into six residential plots used also used as staff quarters at Kandivli, a prime residential building in Bandra and a Lonavla holiday home. The airline is set to open bids to lease approximately 2 lakh sq ft spread across 12 floors in the iconic 22-floor Air India building in downtown Nariman Point.

In Delhi, the national carrier wants to monetize over 11 lakh sq ft used as residential quarters for its officers at Vasant Vihar. It also plans to sell its city terminal office spread across 1.7 lakh sq ft at Baba Kharak Singh Marg in New Delhi. In Chennai, it has put its sports stadium spread across 6.9 lakh sq ft on the block along with the 8.3 lakh sq ft Indian Airlines Housing Colony at Mennambakkan and 1.2 lakh sq ft commercial building at Unity Complex. S R Joshi, general manager (properties and facilities) in Air India said the airline would finalize the consultant in a few weeks time and also decide then which properties to finally sell.

According to sources, a proposal to sell the properties was considered in 2011 but deferred because of serious differences within the top management. Those opposed to the sale argued against relocation of the staff residing in the properties and also said the cash garnered would not be enough to resolve the financial woes of the national carrier.

Air India hopes to earn nearly Rs 100 crore per year from leasing 2 lakh sq ft space in its Nariman Point building. Currently, the airline is paying Rs.2.64 crore per year from its own coffers for the upkeep of the centrally air-conditioned structure.

The building's security was beefed up after the 1993 serial bomb blasts in which it was a target. In 1995-1996, the airline's management wanted to generate additional revenue and increased the rentals. Many companies left instantly; some had to be persuaded and others left after protracted legal battles. The last tenant left two years ago. Air India uses less than seven floors in the building which now has only one tenant, an IT consultancy firm. Fifteen floors are lying unused as Air India has not taken a call on renting them out. Air India reportedly needs a cash injection of Rs10 crore a day.

http://timesofindia.indiatimes.com/business/india-business/Air-India-eyes-Rs-5000cr-from-its-properties/articleshow/17106777.cms

DIAL asks Kingfisher Airlines to vacate international business lounge at T3

NEW DELHI: KingfisherBSE -4.94 % troubles don't seem to end. After Airports Authority of India (AAI) asking it to vacate hangars at Chennai and Kolkata, the GMR-run Delhi airport has asked it to give up the huge business lounge it has on the international side of terminal 3 (T3).

The airline, which has not operated a single flight since October 1 and whose licence is suspended, had stopped international flights this March.

"Our business teams have told Kingfisher that it makes commercial sense for them to vacate the huge 90-100 square meter space they have occupied at T3 (international side) for business lounge since they don't have international flights. Their plan is to restart operations with about seven planes. Under current rules, an airline can't fly abroad till it has 20 aircraft in its fleet. So even if Kingfisher is able to restart operations, going overseas is a long way off," said a senior GMR official.

Kingfisher's combined dues for Delhi and Hyderabad airports (both operated by GMR) are about Rs 75 crore. The GMR Group has filed suits over bounced cheques. "The entire overdue amount needs to be securitized before Kingfisher can fly again from these places," said the official.



Kingfisher does not have any hangar at the GMR-run airports. A number of its planes are parked in open at the old international terminal of IGI Airport like "Christmas trees".

"The airline used to take whatever parts it needed from the parked planes to keep its skeletal fleet flying before October 1. That's why they were nicknamed Christmas trees," said sources.

Meanwhile, some Kingfisher employees did not get the second pay cheque they were promised before end of October. Kingfisher EVP Hitesh Patel wrote a mail to employees: "I have received many SMS and calls reference salary. I can assure you that the salary for ALL employees was paid yesterday (October 31) as committed, in fact the full salary from various banks was debited from the KFABSE -4.94 % account and confirmed by us yesterday evening so I expect the balance of the employees to get the SMS today as the banks processes the salary."

The Kingfisher lounge was the only lounge by an Indian carrier at T3 international side. Air India's lounge is not ready yet. Emirates and Lufthansa are the only two airlines with lounges. All other airlines use two common lounges for their business and first class passengers.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/DIAL-asks-Kingfisher-Airlines-to-vacate-international-business-lounge-at-T3/articleshow/17058675.cms

Kingfisher Airlines will not fly if doesn't get capital by November 30: SBI

NEW DELHI: State Bank of IndiaBSE 1.40 % (SBI), the lead bank to ailing Kingfisher AirlinesBSE -4.94 %, today cautioned the carrier that it "will not fly" if it fails to bring in fresh capital by November 30. 

"Banks' consortium has done everything possible to make the company (Kingfisher) work. Only the company is not working... The management has to get capital. We have given time till November 30 that they should get capital otherwise the company will not fly...," SBIBSE 1.40 % Chairman Pratip Chaudhuri told PTI. 

He further said the airline would not be able to get investors if it is not flying. 

Chaudhuri said the consortium of 17 banks have been meeting regularly to help the cash-strapped airline. 

SBI has over Rs 1,500-crore of exposure to Kingfisher. The bank chairman said the consortium, led by SBI, has made available a total Rs 7,000 crore to KingfisherBSE -4.94 % to help it keep flying. 

The Directorate General of Civil Aviation (DGCA), however, recently suspended the flying licence of Kingfisher following the airline's failure to come up with a viable plan of financial and operational revival. 

Meanwhile, Kingfisher said it is working on a comprehensive revival plan which will be given to aviation regulator DGCA in the next few weeks. 

"We are working on a comprehensive plan which will address the interests of all stakeholders and this will be submitted to DGCA," an airline spokesperson said when asked about their plans to get the suspension of its scheduled operator's permit (SOP), valid till this year-end, revoked. 

Kingfisher is burdened with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of that has not been serviced since January.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-will-not-fly-if-doesnt-get-capital-by-november-30-sbi/articleshow/17115881.cms

Air India employees to get September, October salaries before Diwali

NEW DELHI: The salaries of Air India employees for September and October this year would be disbursed before Diwali (November 13) and productivity-linked incentive (PLI) for two months by the month-end at a total cost of almost Rs 500 crore. 

"Air India has decided to clear payment of salary to all its employees for the months of September and October 2012 before Diwali. It will also make uptodate payment of PLI for all licensed category employees for the months of May and June," an official spokesperson said. 

The PLI for the non-licensed category of staffers for the two months would be paid by the end of November, he said. 

Air India would incur an expenditure of Rs 230 crore on salaries, Rs 200 crore for payment of PLI to licensed category of employees and Rs 60 crore to the non-licensed ones. The licensed category include the crew members and engineers. 

Air India's decision came after Civil Aviation Minister Ajit Singh expressed concern over delay in salaries and asked Air India to make all efforts in future to make uptodate payment of salary to the employees. 

Singh's concern came in the backdrop of eight Air India unions threatening to wear black badges and hold rallies and gate meetings, accusing the management of "overlooking their legitimate rights" and delaying payment of back wages and other dues. 

However, the unions have not given any strike threat. Air India pilots had gone on a 58-day strike over career progression issue from May 7. 

PLI was abolished with effect from July this year after the government implemented the Dharmadhikari panel's recommendations on integrating the staffers of erstwhile Air India and Indian Airlines. 

The pay-scales and grades for non-licensed category of employees were fixed in accordance with the parameters for public sector undertakings as per the Department of Public Enterprises guidelines. 

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-india-employees-to-get-september-october-salaries-before-diwali/articleshow/17116437.cms

Lenders set Nov 30 deadline for Kingfisher to fly again

SBI Chairman Pratip Chaudhuri says management must get capital before November 30, airline says it is working on a comprehensive revival plan.

New Delhi : State Bank of India (SBI), the lead bank to ailing Kingfisher Airlines, today cautioned the carrier that it “will not fly” if it fails to bring in fresh capital by November 30.

“Banks’ consortium has done everything possible to make the company (Kingfisher) work. Only the company is not working… The management has to get capital. We have given time till November 30 that they should get capital otherwise the company will not fly…,” SBI Chairman Pratip Chaudhuri told PTI.

He further said the airline would not be able to get investors if it is not flying.     The bank chairman said the consortium, led by SBI, has made available a total Rs 7,000 crore to Kingfisher to help it keep flying.    The Directorate General of Civil Aviation (DGCA), however, recently suspended the flying licence of Kingfisher following the airline’s failure to come up with a viable plan of financial and operational revival.

Meanwhile, Kingfisher said it is working on a comprehensive revival plan which will be given to aviation regulator DGCA in the next few weeks.

“We are working on a comprehensive plan which will address the interests of all stakeholders and this will be submitted to DGCA,” an airline spokesperson said when asked about their plans to get the suspension of its scheduled operator’s permit (SOP), valid till this year-end, revoked. Kingfisher is burdened with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of that has not been serviced since January.

“We will not comment on our banking relationships,” the airline spokesperson said. In November 2010, the banks had restructured Kingfisher loans worth Rs 6,500 crore.

The airline is under a lockout since October 1 and resultant suspension of entire operations.

The airline has suffered losses of Rs 1,609 crore in 2008-09, Rs 1,647 crore in 2009-10, Rs 1,027 crore in 2010-11 and Rs 732 crore in 2011-12.

Kingfisher was issued an airline licence on August 26, 2003. It was actually issued to Air Deccan which was bought over by Kingfisher. It is valid till December 31 this year.

Kingfisher Airlines currently has only 10 operational aircraft compared to 66 a year ago.                  — PTI

http://freepressjournal.in/lenders-set-nov-30-deadline-for-kingfisher-to-fly-again/

Vayalar Ravi takes up woes of Gulf-bound fliers

New Delhi, (IANS) Overseas Indian Affairs Minister Vayalar Ravi Tuesday sought immediate remedy to the woes of passengers who have been troubled in recent months by successive diversions and cancellation of Gulf-bound flights from states like Kerala.

The minister, who was also overseeing the aviation portfolio earlier, met his successor in the ministry, Ajit Singh, and flagged the tribulations of air passengers to Gulf nations, which is home to some six million Indians, while seeking immediate action.

“I brought to Mr. Ajit Singh’s notice the difficulties passengers from Kerala and other states are facing while going to or coming from the Gulf nations. I also spoke about the hike in air fares on Gulf route. It was already profitable for Air India,” Ravi said.

“I have been told that the matter is being closely monitored. I also have an assurance that some practical solutions are being worked out,” the minister told IANS soon after the meeting.

“I was also told that they will consider allowing private Indian airlines to increase flights operations to the Gulf nations.”

Besides Minister Ajit Singh, the meeting was attended, among others, by Civil Aviation Secretary K.N. Shrivastava and Air India chairman and managing director Rohit Nandan.

There have been some cancellations and disruption of Air India flights to Gulf nations, especially from Kerala’s three international airports at Tiruvananthapuram, Kozhikode and Kochi. The feeling is the services are diverted to meet the Haj pilgrimage demand.

In the past four months alone, nearly 200 flights from Kerala were cancelled, resulting in major trouble for air passengers. Among the flights cancelled were those that were bound for Doha, Manama, Sharjah, Dubai, Riyadh and Kuwait.

Apart from the general stress due to delays, passengers have also complained of other problems — the lack of holidays and reprimands by employers, missing of classes for students and visa-related issues.

According to reports, in one instance, an Air India Express pilot had to sound a hijack alert at Tiruvananthapuram after passengers walked up to the cockpit to ask her why she had landed the Abu Dhabi-bound plane there after it took off from Kochi an hour earlier.

According to Vayalar Ravi, an assurance has also been given that the crew of airlines will be advised to be courteous to passengers and ensure their travel is comfortable.

Ravi also raised the issue of having a full-fledged office of Air India Express – the budget carrier of the national airline – at Kochi, by shifting it from Mumbai. The office was moved to Kochi when Ravi held the aviation portfolio.

http://nvonews.com/2012/11/06/vayalar-ravi-takes-up-woes-of-gulf-bound-fliers/

Air Arabia to expand operations in India

Air Arabia, an international airline from Sharjah, is seeking to operate flights to over 20 airports in India and has been lobbying for additional rights to expand its base.

The airline has fully utilised its seat allocations granted two years ago, and is at present flying to 13 airports in India with double daily flights to Delhi, Mumbai and Thiruvananthapuram.

“We have been seeking additional rights about twice a month from the Indian aviation authorities. There are so many other airports in India that we would like to fly to, and, hopefully, we would be allowed to,” said Adel Ali, Chief Executive Officer (CEO), Air Arabia.

He said as the Indian government had not allowed additional seats, the airline had not yet finalised its Indian expansion plans.

As the Airport Authority of India was in the process of modernising and upgrading 35 airports, Air Arabia said it would operate to as many airports as possible after receiving additional rights.

“For the last two years, we have not grown in this market despite running at about 98 per cent seat factor simply because we were not being granted any more rights into India,” Mr. Ali said.

He said that the operational costs in India was 40 per cent higher as compared to other markets, which posed additional roadblocks in the survival of any airline, let alone making profits in the current competitive scenario.

“The cost of operation is very expensive here (India). The cost of labour and the cost of infrastructure (airport) are not expensive and some of the infrastructure is outdated. They don’t deserve the fees they are charging,” the Air Arabia CEO said.

He said India must rapidly improve airport infrastructure. “We operate to 13 airports in India while we are flying to 14 airports in Central Asia which is much bigger in size. So you can imagine where the market lies,” Mr. Ali said.

Air Arabia at present has a fleet of 31 aircraft and will be inducting 36 more by early 2016. The airline that started operation to India in 2005 is now operating 100 flights a week to India.

http://www.thehindu.com/todays-paper/tp-business/air-arabia-to-expand-operations-in-india/article4072358.ece

AI employees to get salaries before Diwali

All Air India employees will get their salaries for September and October before Diwali (November 13) and the productivity-linked incentive (PLI) for two months by month-end.

The airline “will make up-to-date payment of PLI for all licensed category employees [who include crew members and engineers] for May and June. A directive to this effect has been given by Civil Aviation Minister Ajit Singh,” an official statement issued here said.

The PLI for the non-licensed category would also be paid by November-end.

Air India would incur an expenditure of Rs. 230 crore on salaries, Rs. 200 crore on PLI the licensed category and Rs. 60 crore on PLI to non-licensed employees.

Mr. Singh recently asked the AI management to make all efforts in future for up-to-date payment of salary, in the backdrop of eight unions threatening to wear black badges and hold rallies and gate meetings.

Earlier, AI pilots had gone on a 58-day strike over career progression from May 7. PLI was abolished with effect from July this year after the government implemented the Dharmadhikari panel recommendations on integrating the staffers of erstwhile Air India and Indian Airlines.

http://www.thehindu.com/todays-paper/tp-national/ai-employees-to-get-salaries-before-diwali/article4072404.ece

Meet on small airports in Hyderabad on Nov 7-10

Hyderabad, Nov 6:  

Airports Council International is organising the 8 {+t} {+h} Asia-Pacific Small Airport seminar during November 7-10 in Hyderabad, with re-engineering of airport economics being the focus theme.

This is the first seminar on small airports being held after formation of the Small Airports Network (SAN) by the council.

The second ACI Asia-Pacific SAN meeting will also be held during the event.

Arun Mishra, Director General, DGCA will deliver the inaugural address on November 8, while aviation experts such as Yashwant S Bhave, Chairperson - Airports Economic Regulatory Authority, Sotiris A Pagdadis, Global Airport Sector Leader, PwC, VP Agrawal, Chairman, Airports Authority of India, Neil Mills CEO of SpiceJet, Peter Hoslin, Head (Airline Marketing) of Abu Dhabi Airports Company and Nikos Kardasis, CEO, Jet Airways, will speak at the seminar.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/meet-on-small-airports-in-hyderabad-on-nov-710/article4071826.ece

Air India will pay Sept, Oct wages before Diwali

New Delhi, Nov. 6:  

Air India has decided to clear salaries of all its employees for September and October this year before Diwali.

In addition, the airline will pay productivity linked incentives (PLI) for May and June to all licensed categories of employees, an official statement said. PLI constitutes a large portion of the salary paid to engineers and pilots.

“The airline will incur an expenditure of Rs 230 crore for payment of salary and Rs 200 crore for payment of PLI. The balance PLI for non-licensed category employees for May and June 2012, involving an expenditure of Rs 60 crore, will be paid by the end of November this year,” the statement added.

http://www.thehindubusinessline.com/todays-paper/tp-economy/air-india-will-pay-sept-oct-wages-before-diwali/article4071707.ece

Fraport not going to sell stake in Delhi airport: GMR

Mumbai, Nov. 6:  

The world’s second largest airport operator, Fraport of Germany, is not going to exit the Delhi airport by selling its entire 10 per cent stake, as earlier reported by a section of the media. Joint venture partner GMR Group has denied the Germany-based Fraport is set to exit.

Some media reports had quoted senior officials of Fraport AG as stating they were in the process of selling their stake and expected the deal to be transacted by next June. In a media statement, the GMR Group has stated: “Under the terms of the agreement, the GMR Group has said, “any request for transfer of equity by Fraport can be considered after seven years i.e. after May 2013. Hence, at this stage, the GMR Group is not engaged in any discussion or negotiation with Fraport on this matter.”

http://www.thehindubusinessline.com/todays-paper/tp-corporate/fraport-not-going-to-sell-stake-in-delhi-airport-gmr/article4071688.ece