Jet Airways and SpiceJet stocks soar on stake sale buzz

MUMBAI: The buzz heightened a few notches on Monday about India's two leading private airlines:NareshGoyal's Jet AirwaysBSE -1.53 % andKalanithiMaran'sSpiceJet. 

Reports of the two airlines in talks with foreign airlines for a possible stake sale gathered traction on Monday, propelling Jet's share price by 11 per cent, after reports of Jet Airways in talks with Etihad Airways for a possible stake sale. 

SpiceJetBSE 0.34 % shares climbed 13 per cent on Monday after the market speculation of SpiceJet being in talks with Doha-headquartered Middle East carrierQatar Airways for a possible stake sale. 

ET had first reported on Jet-Etihad talks on September 19. While two persons in the know of the matter did confirm to ET that the two airlines are exploring a strategic partnership, they said it is too early to talk of a deal getting culminated. 

SpiceJet is also said to be in talks with private equity investors for investing in the airline to raise as much as $200 million. The Hong Kong-based private equity firm Bravia Capital was also reported to be in talks with the airline. 

The civil aviation minister Ajit Singh on Monday did confirm a deal brewing between Jet Airways and Etihad but refused a comment specifically on SpiceJet. 

There were reports on Monday about SpiceJet also talking to the Malaysian lowcost airline Air Asia. "Jet is talking to Etihad. But a deal (getting done) who knows. About SpiceJet, media earlier had said that they are in talks with Air Asia and now there are reports that they are talking to Qatar Airways," the aviation minister told ET. 

SpiceJet in a media statement said that it would not comment on market rumours. "SpiceJet has been a subject of several speculative reports appearing in the media during the last few months. While it is true that a few foreign airlines/investors have evinced interest in SpiceJet, it will be very pre-mature to comment on the possibilities of any fresh equity issuance to such interested parties. In line with our internal policy to not comment on market rumours, we cannot confirm or deny any of the names which have appeared in the media from time to time," SpiceJet spokesperson said. 

SpiceJet also issued a clarification on the BSE. "Though a few investors have evinced interest in the company post Government of India allowing FDI in civil aviation sector, it will be very pre-mature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity," the airline said. 

With reference to the news item appearing in a leading financial daily titled "Buzz on Jet-Etihad Deal Gets Louder", Jet clarified to BSE that we are aware that recently there has been much speculation in the Press. 

The company, however, cannot comment on such 'speculative reports.' Etihad's spokesperson said, "Indian aviation industry offers tremendous potential, with significant passenger movement on domestic and international sectors."

http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/jet-airways-and-spicejet-stocks-soar-on-stake-sale-buzz/articleshow/17380799.cms

Jet stocks soar on stake sale talk, SpiceJet denies deal report

Jet Airways stocks soared on Monday amid talk that it was in discussions with Abu Dhabi-based Etihad Airways for a possible stake sale. Unconfirmed reports said Etihad is looking to pick up 24 per cent in the Naresh Goyal-promoted Jet in a deal expected to be worth around Rs 2,200 crore.

“The deal may not only be for funds... the airline may be much ahead of others after the deal,” a source said.

The Jet stock touched a 52-week high of Rs 598.80 on the Bombay Stock Exchange during the day’s trade, but closed 10.8 per cent up at Rs 564.40. SpiceJet’s stock too touched a 52-week high of Rs 46.85, buoyed by reports of a possible stake sale to Qatar Airways or Air Asia. The airline stock finally closed 12.98 per cent up at Rs 44.40.

A Jet Airways spokesperson said the company cannot comment on such speculative reports. “As and when we do undertake any strategic initiatives, Jet Airways will advise the concerned authorities,” said the spokesperson.

Spicejet denied the reports, even sending a clarification to the BSE. “Though a few investors have evinced interest, it will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity,” the communication read. Air Asia too denied being interested in buying stake in Indian carriers.

Goyal holds about 80 per cent shares in Jet and had earlier said that he was willing to dilute up to 20 per cent of his holding.

Sources also said that Jet might shelve plans to join the Star alliance after the deal with Etihad.

http://www.indianexpress.com/news/jet-stocks-soar-on-stake-sale-talk-spicejet-denies-deal-report/1036796/0

Etihad close to buying minority stake in Jet

Naresh Goyal-promoted Jet Airways, the country's second-largest domestic carrier, is close to striking a deal with Abu Dhabi's Etihad Airways, which will pick up a minority stake in the company.

Confirming the development, a top civil aviation ministry functionary said: "Etihad's deal to buy a minority equity stake in Jet Airways should be concluded within 45 days. The two parties have been in talks for a month and a half. There will be more than just stake sale if the deal goes through." However, it is not clear whether Etihad is looking to buy a 24 per cent stake in Jet or more. Based on Monday's stock price, the Indian carrier has a market capitalisation of Rs 4,838 crore (Rs 48.38 billion).

The possibility of a deal got a thumbs-up from the stock market, with the Jet Airways scrip surging as much as 10.81 per cent to close at Rs 560.40 on Monday.

The move comes just two months after the government liberalised its policy on foreign direct investment in civil aviation, despite tough resistance from the Trinamool Congress, by permitting foreign airlines to buy up to 49 per cent in domestic carriers.

Responding to a query, a Jet spokesperson said: "The queries are both speculative and premature. No decision has been taken by either the entities or their managements. If Jet and/or its promoters take any decision, it will be in compliance with the FDI policy, applicable laws and based on the advice of their respective boards, their legal and financial advisors and merchant bankers."

According to analysts, the airline has been aiming to reduce its debt by $400 million and raising money through fresh sale of shares could help it in that.

An Etihad spokesperson said: "Etihad Airways has identified equity investments in other airlines as an important evolution of its successful partnership strategy. Such investments will be made where Etihad believes the commercial prospects are strong, where there are like-minded business philosophies, and where such commitment will be welcomed."

Amber Dubey, partner and head (aviation), KPMG, said about the possible deal: "The Indian carrier would get access to the much-needed funds, global network, latest technology and management best practices. The global airline, on the other hand, would get access to the traffic originating from India's interiors. The Indian passenger would gain from increased competition, which is expected to lead to better offerings, seamless travel through code shares and cheaper airfares."

http://www.rediff.com/business/slide-show/slide-show-1-etihad-close-to-buying-minority-stake-in-jet/20121127.htm

After three months on ground, combat aircraft Tejas resumes test flight

The Tejas Light Combat Aircraft (LCA), which has remained grounded for more than three months, finally resumed flight-testing last week. Seven flights of the Tejas have taken place since then without mishap.

The grounding of Tejas, which was kept secret, took place because of the new pilot’s helmets. Since these protruded above the ejection seats, the helmets could have prevented a smooth ejection by smashing into the fighter’s canopy before it was blown off. Since that constituted a serious safety issue for pilots, flight-testing was halted since August.

The Defence R&D Organisation (DRDO) chief, V K Saraswat, confirmed to Business Standard that the problem had been resolved. The Aeronautical Development Agency (ADA), the DRDO agency that oversees the Tejas programme, has now provided a backup mechanism to blow off the canopy before the pilot’s head struck it.

“Yes, we had about three to three-and-a-half-months of gap (in flight testing). Now, that problem has been resolved. We have modified the Martin Bakerejection seats, making these more reliable and giving more confidence to our pilots. With that behind us, I think we are roaring now,” said Saraswat.

For the Tejas’ flight-test programme, which is already behind schedule, this three month delay has been a blow. The Initial Operation Clearance (IOC), which was scheduled for end-2010, and which the Indian Air Force (IAF) accorded only provisionally in January 2011, is now expected only around mid-2013.

The Final Operational Clearance (FOC), which clears a fighter for combat operations, was scheduled for end-2012. This could be delayed by at least two years. An upbeat Saraswat says the three-month delay gave ADA an opportunity to resolve several other problems, which needed to be done on the ground.

“We have made use of this time by solving many of the problems which were part of the feedback that came from the flight test programme. I feel by middle of next year we should complete (the IOC),” said Saraswat.

The Rs 14,047-crore LCA project involves building an air force version of the fighter in two models — Tejas Mark I and Tejas Mark II — as well as a naval version that will operate from aircraft carriers.

The IAF has already placed orders on Hindustan Aeronautics Ltd (HAL) for two squadrons (42 fighters) of the Tejas Mark I aircraft. Defence Minister AK Antonytold Parliament on May 21, that the IAF would be delivered six squadrons (126 fighters) by the end of the 13th Plan, i.e. by 2022. While this was not specified, the next four Tejas squadrons will be of the Mark II fighter, which will field the more power General Electric F-414 engine. The government has allocated Rs 4,353 crore for developing the Mark II fighter.

Meanwhile Pakistan’s light fighter, the JF-17 Thunder, which was developed in partnership with China, has achieved combat status. Three squadrons of the JF-17 are already in service in the Pakistan Air Force, which expects to eventually operate some 12-13 squadrons of the fighter.

http://business-standard.com/india/news/after-three-monthsground-combat-aircraft-tejas-resumes-test-flight/493785/

Rising airfares: Special cell in 15 days to monitor pricing moves by airlines, says Ajit Singh

MUMBAI: The steep rise in airfares by up to 50% this year has prodded the civil aviation ministry to set up a special cell to monitor pricing by airlines. 

To be set up within a fortnight, the cell will monitor airfares on a regular basis. The ministry will soon orderairlines to make public the pricing system under which airlines bunch tickets for sale, Civil Aviation MinisterAjit Singh told ET. For this purpose, a special cell within the civil aviation ministry will be formed over the next 15 days, Singh added. 

At present, there is no regulatory mechanism to monitor pricing mechanism of the airlines. However, theAirport Economic Regulatory Authority fixes airport tariffs in the country. The need for this authority was felt after airports were privatised in 2006. The ministry through this new cell would aim at fixing a reasonable and justifiable escalation in fares, the minister said. 

"Rising airfares are a major concern. While airlines are free to sell tickets on the basis of a demand-and-supply equation, there has to be a reasonable range in pricing. It cannot be Rs 5,000 on one day and Rs 50,000 on some other day," Singh explained. 

The minster, however, clarified that the government is not attempting to regulate fares and that the the airlines are free to determine fares based on market dynamics, but the government is concerned about the not-so-transparent bucket pricing followed by airlines. 

For monitoring, the government plans to get data on all the tickets sold by different carriers under varying price brackets and then analyse this data to give an indication of exactly how many tickets are sold under which price slab. 

"We would then arrive at a figure on what would be a reasonable fare and make it known to the public. This transparency will act as a deterrent to the airlines for randomly increasing fares," Singh said. "Once that range is decided, airlines will need to stick to that range and adhere to the bucket system," the minister added. 

He also pointed out that sectors like Delhi-Mumbai especially need to be monitored as fares are very steep on this corridor, touted to be among the busiest in the country. For instance, if booked a day prior to travel, aneconomy class fare on the sector can be as steep as Rs 36,000 one way. 

Aviation entrepreneurs like GR Gopinath who started first low-cost airline in the country came down heavily and voiced concerns about the high fares and very low pricing differential between fares of low cost and full service carriers, sometimes as narrow as Rs 500. 

"Airlines must sell higher number of tickets in the low-cost bracket instead of flying planes with loads of merely 70% and flying with rest of the seats empty. The high fares are a major deterrent for fliers currently," Gopinath had said during an aviation summit in Mumbai last month. 

Passenger numbers, according to government data, too, shows a steep dip of 15% in October that otherwise kick-starts the travel season. Aviation experts, however, decry the move by the aviation ministry. Their contention is that the best interests of the consumers are protected by the market forces. The government should avoid regulating fares.

http://economictimes.indiatimes.com/news/news/by/industry/transportation/airlines/aviation/Rising-airfares-Special-cell-in-15-days-to-monitor-pricing-moves-by-airlines-says-Ajit-Singh/articleshow/17366051.cms

Kingfisher Airlines not allowed to fly in winter, even if ready

NEW DELHI: Restarting operations this winter has been ruled out for near-bankrupt Kingfisher Airlines that has not operated a single flight since October 1. Airlines owner Vijay Mallya met aviation authorities, including secretary K N Shrivastava, on Monday for the first time after clinching a multi-structured deal with UK-based Diageo Plc to sell 53% stake in another group company United Spirits for about Rs 11,167 crore.

Sources say that because of getting funds from this deal, Mallya was upbeat about restarting operations 'soon' but was given a reality check. "Even if Kingfisher gets fit enough to fly again, that can happen only next summer and not in the ongoing winter schedule. There are a number of issues that Mallya needs to resolve before the airline can operate again," said sources. Mallya's close aides were trying to restart operation from December 18 as a 'birthday' gift to the troubled billionaire-turned-millionaire.

In fact, the troubles of Kingfisher are mounting by the day. While FDI by foreign airlines has been allowed and Jet is close to a deal along with others like SpiceJet, IndiGo and GoAir being eyed keenly by potential investors, there is so far no word of any overseas airline looking at Kingfisher.

http://timesofindia.indiatimes.com/business/india-business/Kingfisher-Airlines-not-allowed-to-fly-in-winter-even-if-ready/articleshow/17379295.cms

Etihad set to pick 24% stake in Jet Airways

NEW DELHI: Naresh Goyal-owned Jet Airways is on the verge of becoming the first Indian carrier to benefit from the government's recent FDI policy change, allowing foreign carriers to invest in domestic airlines. Jet is in advanced stage of talks for a 24% stake sale to Middle East carrier Etihad Airways in a deal valued at $400 million (about Rs 2,200 crore). 

Dayananidhi Maran's low-cost carrier SpiceJet has also admitted "that a few foreign airlines/investors have evinced interest" in it for picking up a stake. Three non-airline companies and two airlines are learnt to be in talks with SpiceJet at present but "a deal is not on the horizon". "It will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties," an airline statement said. The scrips of both Jet and SpiceJet hit 52-week highs on BSE on Monday. Jet closed 10.8% higher at Rs 560 and SpiceJet closed almost 13% up at Rs 46.9. 

"Jet Airways is in a massive expansion mode and needs capitalization. They are in advanced stage of talks with Etihad (an airline Goyal helped build by providing friendly technical expertise in its initial years as he has solid ties with Gulf carriers). This deal is expected to be clinched shortly unless Goyal or Etihad set up some impossible demand," said a top aviation source. 

Jet is 80% owned by Goyal through the Isle of Man-registered Tailwinds.

UPA-II recently allowed foreign airlines to pick up to 49% stake in Indian carriers. Asked how Jet will offload stake to a foreign carrier in such a situation, the source said: "We have not been informed those details. Maybe Goyal dilutes his existing 80% by 15-20%. Anyway, the deal has to be routed through the foreign investment promotion board and they will look at that."

The Rs 2,200-crore for a 24% stake in Jet values Goyal's carrier at $1.7 billion (Rs 9,438 crore), a substantial premium from the current market capitalization of Rs 4,366 crore. A team of top Jet officials like chief commercial officer Sudheer Raghavan and chief operating officer Hamid Ali are learnt to be in Abu Dhabi to clinch the deal under Goyal's overall guidance.

China upbeat on aircraft carrier feat

A day after China announced it had conducted successful landing exercises on its first aircraft carrier – a landmark for the country’s naval ambitions– State media mourned the death of a senior engineer who died during the weekend’s key tests.

Luo Yang, the head of production of China’s J-15 fighter – a new jet that was used in the exercises on board the Liaoning aircraft carrier this past weekend – died on Sunday after he experienced “a sudden heart attack” while participating in flight landing training, State media reported.

The successful exercises were, on Sunday, hailed by media outlets as a landmark achievement for the Chinese Navy as it prepares to deploy its first aircraft carrier. Luo’s death, however, on Monday cast a shadow on the feat. While official news outlets mourned the engineer as a national hero who sacrificed his life for the country, Internet users expressed concern over the immense pressure placed on scientists by the Chinese system.

Luo had played a key role in the production of the J-15, and was also involved in tests on board the Liaoning in recent weeks. The State-run Xinhua news agency reported that the J-15 jet had been delivered to the People’s Liberation Army Navy (PLAN) in September, following which it had taken part in take-off and landing tests on the aircraft carrier.

Following the successful exercises, the PLAN was “now capable to deploy fighter jets on the carrier”, Vice Admiral Zhang Yongyi told Xinhua on Monday, adding that pilots had “mastered key skills to ensure the success of the take-off and the landing, especially under unfavourable conditions such as poor visibility and unstable airflow”. Vice Admiral Zhang described the exercises as similar to “dancing on a knifepoint”, underscoring the difficulty.

The PLAN said five J-15 fighter jets had taken part in the tests. The jets, whose design is thought to be based on the Russian Su-33, was capable of carrying “multi-type anti-ship, air-to-air and air-to-ground missiles”, Xinhua reported.

The success of the tests was hailed by official media as a cause for the nation to celebrate – and as a fitting response to some foreign observers who had cast doubt on China’s aircraft carrier plans. “Military enthusiasts should have every reason to hail the achievement,” Lan Yun, a naval expert, told the usually nationalistic Communist Party-run Global Times newspaper. “From now on," he said, "China owns its complete carrier system."

Wu Xiaoguang, an engineer at the aircraft carrier project, added in an interview with Xinhua that the first aircraft carrier, the Liaoning, only marked the first step in the country’s ambitious plans to build a blue-water navy. “What I can tell you now,” he said, “is that the Liaoning is only a beginning”.

http://www.thehindu.com/news/international/china-upbeat-on-aircraft-carrier-feat/article4136819.ece

Bangalore firm to set up unit in airport city project

Bangalore-based Ardex Endura (India) Pvt. Ltd. on Monday announced its plans to enter the eastern region with an investment of Rs.10 crore at the upcoming airport city project near Asansol in West Bengal.

Gopinath Krishnan, Managing Director of Ardex Endura, said that this was the company’s third plant after Bangalore and Baroda. The company, which is an equal joint venture between Ardex Group, Germany, and Prism Cement Ltd of the Rajan Raheja Group, is engaged in making tile-fixing adhesives, flooring products and water proofing and allied products.

The company will take three acres in the ‘aerotropolis’ project which is scheduled to be ready by January 2013. Ardex Endura would launch its project by July 2013, Mr. Krishnan said. The airport city project comprises an airport, and industry hub and social infrastructure. The airport is to come up first.

http://www.thehindu.com/business/companies/bangalore-firm-to-set-up-unit-in-airport-city-project/article4137387.ece

Aviation stocks gain on stake sale buzz

Aviation stocks, on Monday, gained substantially with expectations that foreign airlines would soon pick up stake in Indian carriers Jet Airways and SpiceJet.

There has been speculation since last week that Jet Airways was close to signing a deal with Etihad Airways to raise $400 million, and, similarly, Air Asia was negotiating to acquire a stake in SpiceJet.

SpiceJet

With the sell-off buzz going round in the market, Jet Airways shares gained over 13 per cent intra-day before closing with a gain of 10.81 per cent at Rs.560.40 on the Bombay Stock Exchange. On Friday, the company’s shares had gained 15 per cent.

Similarly, the stock of SpiceJet closed with a gain of 12.98 per cent at Rs.44.40.

The buying momentum in aviation counters was so high that even Kingfisher Airlines without any positive factor gained 4.96 per cent to close at Rs.14.40.

“Though few investors have evinced interest in the company post-Government of India allowing FDI in civil aviation sector to foreign airlines, it will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity,” Spicejet said in a clarification to the BSE.

http://www.thehindu.com/todays-paper/tp-business/aviation-stocks-gain-on-stake-sale-buzz/article4138650.ece

Airport project: Land Revenue Commissioner orders probe

Land Revenue Commissioner T.O. Sooraj has directed the Pathanamthitta District Collector to conduct an urgent inquiry into the alleged violation of laws in the land transactions as well as the related mutation process taken place in the villages of Aranmula, Mallappuzhasserry and Kidangannur in connection with a proposed international airport project in Aranmula.

Talking to The Hindu , Mr. Sooraj said the inquiry was on the basis of a petition filed by Thiruvaranmula Paithruka Grama Karma Samiti (TPGKS) patron Kummanam Rajasekharan on November 23.

He said District Collector V.N. Jithendran has been asked to conduct an “urgent inquiry” and report to the government in a time-bound manner. The Collector would look into the violations, if any, of the Kerala Land Conservancy Act, Kerala Land Utilisation Act, and Kerala Land Reforms Act taken place in the three villages.

In his petition to the Land Revenue Commissioner, the TPGKS patron had alleged that Abraham Kalamannil of the Kozhencherry-based Mount Zion Group had illegally converted a large extent of low-lying paddy land spread across the three villages.

Mr. Rajasekharan said Mr. Kalamannil had also purchased more paddy fields in Aranmula and surrounding areas for converting them in the name of an airport project.

Inquiry report

In an inquiry report submitted to the government on July 2, the Joint Land Revenue Commissioner C. Reghu had categorically stated the “commissions and omissions on the part of the government officials’’ leading to illegal paddy land conversion in Aranmula.

The report also recommended a “Vigilance inquiry into the whole issue so as to find out the official lapses and also to contain such instances in future.’’ It further maintained that the “lapses spread over different departments reveal a definite pattern which is not in the interest of the State and hence an inquiry confined to one department is not enough to reveal everything.’’

Meanwhile, the government had also dismissed a plea of the Aranmula Aviation Limited chaired by Mr. Kalamannil (letter dated February 2, 2008) seeking exemption from Land Ceiling Act for 200 acres of land purchased in the villages.

Earlier report

The Collector had filed a detailed report to the Land Revenue Commissioner on September 9, 2009, but to no avail, official sources said.

The Chennai-based KGS Group had purchased 99.3624 ha of land that includes 85.7402 ha of paddy land, from Mr. Kalamannil and other farmers, later. Ironically, the data made available through the Right to Information Act from the taluk and village offices concerned here showed that the KGS Group had managed to complete the mutation process of the land it had purchased in violation of the prevailing laws of the land, the TPGKS petition said.

It also alleged gross violation of the laws and corruption involved in the mutation process facilitating illegal possession of land far exceeding the 15-acre limit prescribed in the Kerala Land Reforms Act by the KGS company.

Mr. Rajasekharan has demanded re-examination of the entire process and cancel of the mutation in toto, respecting the laws of the land.

He alleged that the land transactions and its mutation made in the name of a private international airport project at Aranmula was illegal, and anti-people, amounted to human rights violation and denial of social justice.

He called for cancellation of all land transactions taken place in the three villages in the name of one or the other private airport project during the past 10 years and take stern steps to return the land to its original owners.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/airport-project-land-revenue-commissioner-orders-probe/article4139135.ece

SpiceJet overseas services from State

Domestic budget airline SpiceJet, on Monday, announced that it will increase its international operations with daily flights on three new routes — Kochi-Male, Kochi-Dubai, and Dubai-Ahmedabad.

While flights on the Kochi-Male route will start on November 29, operations on the Kochi-Dubai and Ahmedabad-Dubai routes will begin on December 10 and 19, respectively, the company said in a statement here.

Booking for tickets on these routes is now open, it said.

SpiceJet will offer direct flights from Kochi to Male, and the inaugural ticket fare is Rs.4,999 (one-way fare inclusive of all taxes).

New destination

Male is the new international destination that SpiceJet will fly to; the airline already operates daily flights to Dubai from Mumbai and Delhi.

With these new routes, the total number of international destinations on the SpiceJet network will increase to five. At present, SpiceJet flies to Kathmandu, Colombo, Kabul, and Dubai, the communication issued by the company said.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/spicejet-overseas-services-from-state/article4139091.ece

AI welcomes back two suspended employees

They were held on charge of posting offensive content on social networking sites

Six months after being jailed and let out on bail for allegedly posting offensive content on social networking sites, K.V. Jaganatharao and Mayank Sharma have been recalled for duty by Air India.

The two, who work as in-flight crew, got a pleasant surprise when the airline, in a letter on Monday, asked them to report for duty on Tuesday morning.

After their arrest on May 11 and release on bail on May 22, both were suspended for that period and were eligible only for salaries without allowances. There was no question of flying as their passports were impounded by the police. On October 25, they approached the Bombay High Court to get back the passports.

Mr. Sharma said complaints from a member of a closed group of Air India cabin crew members on Facebook and Orkut should not have been entertained. The first complainantto approach a senior police officer in July last, trade union leader Kiran Pawaskar, was not a member of the closed group and he was not part of the discussions on it, Mr. Sharma contended.

Both the airline employees demanded that the charges against them, including those under the Information Technology Act, apart from the Indian Penal Code, be dropped.

While the police passed on the complaint to the cyber police station in Bandra, it was only on March 29, 2012 that a first information report was filed and the two were arrested on May 11. The complainant in this case was Sagar Karnik, who works for Air India and was a member of the closed group of about 1,500 cabin crew members. Mr. Karnik claimed that the discussion was targeting political leaders in abusive terms and it “was mature on his part to bring it to the attention of judicial authorities.”

Asked why a private discussion in a closed group was leaked, Mr. Karnik defended his action, saying that even domestic violence happened within the four walls of a house and yet people complained about it to the outside world in the interests of justice.

Magistrate’s role

Meanwhile, the former Chief Information Commissioner, Shailesh Gandhi, told The Hindu that while the Facebook post of Shaheen Dhada on Shiv Sena chief Bal Thackeray had become a rallying point for citizens to defend their fundamental right of freedom of expression under Article 19 (1) (a) of the Constitution, people were ignoring the responsibilities of the magistrate.

Mr. Gandhi, in a statement, said, “What is the role of the magistrate when a person is produced before him? The only purpose for this requirement in the Criminal Procedure Code is to ensure that a mind is applied judiciously before a remand or bail is given.”

The magistrate who examined the case could have seen the gross absurdity of the charge. The requirement of producing all arrested persons within 24 hours puts the responsibility on the magistrate to decide whether a prima facie case existed for giving a remand or bail. If it appeared that no reasonable case existed, the magistrate must refuse to allow any further detention. Since this did not happen, it led to unnecessary harassment and piling up of cases. A magistrate must apply his mind to the matter before him and take responsibility, Mr. Gandhi said.

 Instead of vilifying the law, people should question why the judicial check mandated by law did not work effectively. “This is a very important legal safeguard against police arbitrariness or stupidity, but it does not appear to be working meaningfully. Judiciary is the guardian and monitor of the law,” he pointed out.

In the case of the two Air India employees, the FIR did not mention Section 67 A of the IT Act, which is a non-bailable offence. The Section was added later in the remand application to the magistrate after the two were arrested on May 11.

---

·  Instead of vilifying law, people should question why judicial check did not work effectively: ex-CIC

·  Drop all charges against us, say Jaganatharao and Mayank Sharma

http://www.thehindu.com/todays-paper/tp-national/ai-welcomes-back-two-suspended-employees/article4138706.ece

Delays at city airport make passengers jittery

Passengers bound for Delhi, Bhubaneswar, Kolkata, Hyderabad, and Chennai reaching the Visakhapatnam airport after 8 a.m. are getting jittery on seeing the long queues at the baggage screening, check-in, and security check counters.

As many as four flights land between 8.30 a.m. and 9 a.m. and all of them are big flights. Around 400 passengers are flying out on an average during the period on any given day. For instance, passengers carrying laptops are likely to face a problem identifying once past the security screening, due to shortage of staff. The passengers are asked to identify their laptops from a large pile at the end of the screening and there is a danger of passengers collecting the wrong laptop either wantonly or otherwise.

It is learnt that the shortage of manpower and check in counters is adding to the woes of passengers. A similar problem is being encountered during the evenings also. There are 114 Central Industrial Security Force personnel at present. Their duties include access control, checking hand baggage, and anti-hijacking operations.

The new terminal building at the airport became operational in 2009 and traffic has increased manifold over the years. The authorities had sought provision of 147 additional CISF staff a year ago but the file is yet to be cleared by the government.

There are three security check booths – two for men and one for women – at the new airport building. The shortage of frisking machines is also adding to the delays, according to passengers.

“We are trying to minimise the waiting time at the counters by arranging an extra booth for male passengers during the rush hours despite shortage of manpower.

The government has recently agreed to sanction additional CISF staff,” Airport Director K. Srinivasa Rao told The Hindu when his attention was drawn to the problem.

He also attributed the long queues at the counters to passengers checking-in at the airport at the eleventh hour.

Flight to Port Blair

Here’s good news for people travelling to Port Blair. Air India will soon introduce a flight to Port Blair. AI is already operating from Delhi to Port Blair via Bhubaneswar six days a week. “We sought diversion of that flight at least twice a week via Visakhapatnam,” Mr. Srinivasa Rao said.

http://www.thehindu.com/todays-paper/delays-at-city-airport-make-passengers-jittery/article4139317.ece

‘Bail out Kingfisher like Air India’

Treatment should be similar to Air India, says chamber

New Delhi, Nov. 26:  

The Government should provide a similar kind of financial help to Kingfisher Airlines as extended to state-owned Air India, the Associated Chambers of Commerce and Industry of India (Assocham) said on Monday.

Pointing out that Life Insurance Corporation of India and Employees Provident Fund Organisation have both subscribed to the over Rs 7,000-crore debt issue of Air India as part of the Government bailout package, the apex chamber has called for similar treatment for the private-owned airline.

LIC has subscribed Rs 3,000 crore and EPFO Rs 4,400 crore of Air India’s debt issue.

Kingfisher Airlines, which reported losses of over Rs 9,000 crore and debt of over Rs 8,000 crore, ceased operations on October 1.

Nation’s resources

“Both private and the public sector companies operate in a similar environment.

“As the largest shareholder, it becomes incumbent on the Government to safeguard its PSUs.

“But at the same time, the banks and other financial institutions should not discriminate against the private sector firms.

“To the extent additional equity from the main promoters, the UB group is required, we would urge them to bring in these funds so that the lenders’ comfort level is increased,” the apex chamber said in a media statement.

Assocham has argued that whether it is public or private sector money, the resources belong to the nation and should not be allowed to go down the drain.

Satyam example

“Satyam Computer is a shining example how the Government can effectively intervene and help revive an organisation irrespective of its ownership pattern,” the apex chamber has said.

The closure of Kingfisher has also led to a sharp hike in the air fares and untold misery for the airline employees who are finding it difficult to find other jobs due to the overall situation in the industry, Assocham said.

http://www.thehindubusinessline.com/todays-paper/tp-economy/bail-out-kingfisher-like-air-india/article4137960.ece