Maldives set to seize airport from Indian firm

No disruptions expected amid looming diplomatic crisis as president decides to revoke 25-year lease

Male: The Maldives government finalised plans Friday to seize the country’s main airport from an Indian firm, sparking a diplomatic crisis with its giant neighbour which has threatened to cut off aid.

The administration of President Mohammad Waheed last week decided to revoke a 25-year lease of the airport serving the capital, asking infrastructure firm GMR to quit by midnight Friday (1900 GMT), two years after it took over operations.

“There is no turning back, we will start running the airport from Friday night,” Waheed’s spokesman Imad Masoud told AFP from Male, the capital of the country known as an upmarket honeymoon destination and celebrity hang-out.

“We will retain all staff. Even the Indian staff have been told that they can remain if they want to and have the same salary,” he added.

Officials have also sought to reassure travellers they will be unaffected.

“We have already spoken to international airlines and assured them that there will be no disruptions,” Mohammad Ebrahim, managing director of the Maldivian Airport Company, told AFP.

“We will have a seamless takeover of the airport from the GMR,” Ebrahim said.

There was little comment from GMR which on Thursday lost a legal battle in Singapore, where the Supreme Court ruled the Maldivian government had the right to take back the airport.

“At the moment things are calm,” GMR spokesman Arun Bhagat told AFP, declining further comment.

Corruption

The privatisation of the airport in 2010 has been targeted by Waheed over alleged corruption and for patriotic reasons, with the new government objecting to such a prominent national asset being run by foreigners.

There has been fury in India over the abrupt move to nationalise the airport and the proposal has also raised serious concerns for foreign investors at a time when the Maldives is seeking external funding.

The Male airport deal was expected to see GMR and its partner, Malaysia Airports Holdings, pour more than $500 million (Dh1.8 billion) into the Indian Ocean archipelago, in what would have been the biggest ever foreign investment.

New Delhi warned its tiny south-western neighbour earlier this week that it may freeze aid and was ready to “take all necessary measures to ensure the safety and security of its interests and its nationals”.

The row has caused a reassessment in the Indian foreign ministry of Waheed, who took power in controversial circumstances last February when president Mohammad Nasheed was forced out by protests and a mutiny by police officers.

India’s concerns

Nasheed, the first freely elected Maldivian leader and an ally of India, claimed his then vice-president Waheed was part of a “coup”, but New Delhi declined to intervene and gave its blessing to Waheed’s ascent.

Underpinning India’s concerns are claims by the Maldivian opposition that the country is tilting towards China, which set up an embassy in Male last year and is carrying out construction projects in the archipelago.

Waheed’s office denies any suggestion of Chinese influence.

“The airport is our gateway to the world. It is a matter of national pride and ego and we want to manage it ourselves,” Masoud said.

Under the original privatisation deal, GMR paid $78 million as a one-time fee to manage the airport for 25 years.

The Indian firm, which runs the new airport in New Delhi among others, was to pay the Maldivian government 1.0 per cent of all airport revenues until 2014 and 10 per cent thereafter. An investment of $510 million was envisaged.

However, a court ruling scuttled a vital part of the deal which allowed GMR to levy a fee of $25 on each passenger. The government then agreed to reimburse GMR the $25 charges.

http://gulfnews.com/business/aviation/maldives-set-to-seize-airport-from-indian-firm-1.1115708

‘Male should curb elements harming ties’

As Maldives takes over the operation of the Ibrahim Nasir International Airport from the GMR Group, External Affairs Minister Salman Khurshid on Friday said that the Male government should control “quarters” that want to harm relations with India.

 Following the Singapore High Court’s judgment on Thursday, decks were cleared for the state-run airport authority to take over from the GMR group from Friday night. The Maldives Government had terminated the contract of GMR-led consortium to operate and develop the 25-year-old contract on November 27, following which the Indian firm had started arbitration proceedings in Singapore.

 The anti-GMR campaign had been led by fringe political parties supporting President Mohamed Waheed. The chief among them is the ultra-religious Islamist Adhalaath party, which has been leading a vitriolic campaign.  Obliquely referring to these groups, Khurshid said, “If any quarters there (in Maldives) want that our relations should be harmed, then they should be controlled. I think Maldives and its people know this thing properly and I am sure that they will do the same thing”.

 He reasserted that Male had to go through the legal processes properly. “If they have to take a decision in interest of their society and country and if that decision is taken properly as per laws there, what objections can anyone have there. We would want that whatever is the decision, it should not put any question marks on our friendly relations,” he said.  “On the commercial discussions, we don’t have the right and there is no justification for it. Try to understand the issue in the right context and I think there is nothing to worry about,” he said.

http://newindianexpress.com/nation/article1370935.ece

GMR spat: Singapore High Court rejects Axis plea, GMR to hand over airport

New Delhi: The Singapore high court turned down a petition by India's Axis Bank, which pleaded that Maldives' takeover of the Male International airport from a GMRBSE -3.03 % Infrastructure-led consortium should be stopped, as the bank would not otherwise be able to recover a loan it has given the company, Maldives news website Haveeru.com reported. 

Axis BankBSE -2.28 % leads a clutch of lenders, which includes Indian Overseas BankBSE 1.20 % and Indian Bank, with exposure to the airport project. The $511-million project has a debt component of $358 million. 

After weeks of legal and political wrangling, the Singapore Court of Appeal ruled on Thursday that Maldives had the right to take over the airport. Axis Bank declined to comment. 

In a statement, GMR said on Friday that it would facilitate a smooth transition of the airport, ending days of uncertainty about the future of the airport. 

"In deference to the orders of the Court of Appeals, Singapore; GMR Male International Airport Ltd (GMIAL) will facilitate a smooth takeover of the Ibrahim Nassir International Airport (INIA) by the Maldives Airport Company Ltd (MACL), effective midnight tonight." 

GMR and Malaysia Airports Holdings Berhad won a $511-million contract in November 2010 to modernise and the run the airport for 25 years. The finances of the deal went awry when a local court struck down the provision for a $25 airport development fee as illegal. 

While the then government guaranteed to protect the project's revenues, a regime change saw the airport deal becoming an emotive and politically charged issue. The current government, under president Mohammed Waheed, terminated the concession agreement on November 27, sparking off a legal battle. 

The key issue now is how much compensation GMR will receive and how can the state-owned Maldives Airports Company Ltd (MACL) afford the bill. A spokesperson for the Maldives president said the country will order a forensic audit to determine how much money has been spent by GMR so far. 

"We will ask MACL to appoint a reputed international auditor to conduct a forensic audit and determine how much money has been spent and where. We have already filed for arbitration on the issue of compensation. Once we have the forensic audit report, we will submit that to the court as well," president Mohammed Waheed's press secretary Masood Imad told ET. 

"We are taking requisite steps to work out the compensation receivable from the government of Maldives, keeping in mind the judgement of the aforementioned court and the concession agreement dated June 28, 2010," GMR said in a statement. 

In Maldives, the ousting of GMR appeared to be causing ripples in the political arena. The Maldivian Democratic Party (MDP) moved a no-confidence motion against the acting transport and defence minister Mohamed Nazim, who was seen to be among those who led the campaign against the airport deal. 

Under Maldives rules, a minister must step down if a simple majority in the 77-member Majlis supports a no-confidence motion. MDP, led by the ex-president Mohamed Nasheed, currently has 30 members.Maldivian Democratic Party (MDP) moved a no-confidence motion against the acting transport and defence minister Mohamed Nazim, who was seen to be among those who led the campaign against the airport deal. Under Maldives rules, a minister must step down if a simple majority in the 77-member Majlis supports a no-confidence motion. MDP, led by the ex-president Mohamed Nasheed, currently has 30 members.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/gmr-spat-singapore-high-court-rejects-axis-plea-gmr-to-hand-over-airport/articleshow/17527150.cms

Business aircraft parking charge hike stayed

MUMBAI: Business aircraft owners, who have been protesting against increase in aircraft parking charges introduced by the Mumbai airport operator four months ago, won some relief on Friday after a tribunal put a stay on the decision and brought back the pre-hike parking rates.

MIAL's spokesperson was unreachable for comment.

In their application before the tribunal, Business Aircrafts Operators Association (BAOA) said the parking charges form part of aeronautical services and an increase in tariff for aeronautical services falls within the jurisdiction of the regulator, Airports Economic Regulatory Authority (AERA). Though MIAL had approached AERA with the hike proposal, it did not wait for the regulator's decision, the BAOA release said. MIAL counsel sought time to seek instructions in the matter. The appellate tribunal directed the parties to maintain status quo on the parking charges.

http://m.timesofindia.com/city/mumbai/Business-aircraft-parking-charge-hike-stayed/articleshow/17529143.cms

SpiceJet wing damaged while taxiing

New Delhi: In a freak incident, the wing of a Hyderabad-bound SpiceJet plane with 142 people onboard was damaged after pilot veered off the guiding line and hit a highmast light post while taxiing out of IGI airport here. 

The DGCA has ordered a probe into the incident which happened around 7.40 PM yesterday, when SpiceJet's Boeing 737-800, operating on Delhi-Hyderbad route (SG 239), was taxiing out of the parking bay to the runway for takeoff from Delhi airport. 

A spokesperson of the IGI airport operator -- Delhi International Airport Limited (DIAL) said, "Preliminary observations suggest that the aircraft came off the taxiway guiding line and as a result it hit the post. Due to this the high mast light also got damaged." 

All the passengers on board were unaffected. 

Following the incident, the pilot of the aircraft aborted take-off and the passengers were sent to Hyderabad in a separate plane after a delay of about two hours, they said, adding the aircraft departed from Delhi at 21:25 hours. 

Terming the incident as minor, the airline, in a statement, said, "We are doing an internal investigation in this matter. We would like to reiterate that for SpiceJet, safety of its passengers is of utmost importance." 

http://zeenews.india.com/news/nation/spicejet-wing-damaged-while-taxiing_815348.html

Maldives must rein in quarters harming bilateral ties, India says

NEW DELHI: Amid a diplomatic row over cancellation of the GMR contract, India on Friday asked Maldives to control any quarters which may be trying to harm bilateral relations saying the issue should not put a "question mark" on the ties between the two sides. 

"If they have to take a decision in interest of their society and country and if that decision is taken properly as per laws there, what objections can anyone have there. We would want that whatever is the decision, it should not put any question marks on our friendly relations," external affairs minister Salman Khurshid said. The minister was asked to comment on the developments in the GMR issue outside Parliament house complex. 

"If any quarters there (in Maldives) want that our relations should be harmed, then they should be controlled. I think Maldives and its people know this thing properly and I am sure that they will do the same thing," Khurshid said. Asked if the Indian Government would "intervene" in the issue, the minister said, "For commercial enterprises no one intervenes, but we have been assured about the security and safety of our citizens and interests there. 

To that extent, it is our right and we have also told them about this right." "On the commercial discussions, we don't have the right and there is no justification for it. Try to understand the issue in right context and I think there is nothing to worry about," he said. 

In a surprise move on November 27, Maldives terminated the over $500 million contract awarded to GMR during the previous regime of Mohamed Nasheed to upgrade its Male airport and to build a new terminal. pti 

Govt allows Maldives airline to fly via India 

This is as ironic as it gets. While Maldives has terminated its contract with Bangalore-based infra major GMR to run the Male airport, its national airline's international plans bank solely on India. Maldivian Airline, the national carrier of Maldives, had recently announced flights to Mumbai and Chennai from mid-November. Not only that, India had allowed it to fly to Bangladesh by extending the India sector of the flight. "It will be the first long haul flight of the airline and will operate (Airbus) A-320 aircraft as Q2-550 (Male-Chennai-Dhaka)," Bandhu Ibrahim Saleem, chairman of island aviation services that owns Maldivian, had recently told TOI. "Saarc members allow their airlines to fly from one country to another (while referring to the Male-Chennai-Dhaka flight)," he said. 

Now it remains to be seen if India retaliates by relooking at this permission. The aviation ministry says it will act as per the stand taken by the ministry of external affairs. "The cancellation of the $511-million Male airport contract with Male has come as a setback in our ties. If asked by MEA, we will take the required steps about Maldivian's clearance," said a senior official. The airport company of Maldives is set to take over the Male airport from GMR on Friday midnight.

http://timesofindia.indiatimes.com/india/Maldives-must-rein-in-quarters-harming-bilateral-ties-India-says/articleshow/17528213.cms

GMR now banks on compensation

The loss of Male International Airport from its portfolio has put GMR Infrastructure in a fix even as there is no clarity on financial compensation.

“It is a setback for GMR. We are still not clear as to how the financial liability would be taken care of. Going by Maldives’ posture, they don’t have any respect for international law and neither do they care,” said Ambeerish Baliga, independent market analyst.

“In such a scenario, it is doubtful as to how the lenders and GMR would be compensated. How the company will absorb the loss? The GMR Infrastructure stock has already corrected in the past few days and I don’t think it will fall further,” Mr. Baliga said.

Major hit

“The company’s airport vertical has taken a major hit. According to information, GMR wants to exit from Istanbul but it has not found a buyer. With four airports, GMR was flying high in its airport business and this vertical is very crucial for the company. There is a big question mark on the compensation,” said SP Tulsian, independent market analyst.

He said that the GMR stock would not fall further as it had already corrected from Rs.30 few weeks ago to around Rs.20 now. Hours before the deadline to move out of Male’s airport, GMR’s stocks on Friday closed with a loss of 3.03 per cent at Rs.19.20 on the Bombay Stock Exchange.

http://www.thehindu.com/todays-paper/tp-business/gmr-now-banks-on-compensation/article4176754.ece

SpiceJet aircraft hits electric pole before take-off

A SpiceJet aircraft hit an electric pole at Indira Gandhi International Airport here just before take off on Thursday evening resulting in its left wing getting damaged.

For its part, the airline called it a minor accident and has ordered an internal investigation into the case.

According to sources, the left wing of the SpiceJet’s Boeing 737-800, which operates on the Delhi-Hyderabad route, hit an electric pole on the runway after which the take-off had to be aborted. The passengers had to remain inside the aircraft for two hours before a replacement aircraft was provided. The flight finally took off from Delhi airport around 9-25 p.m.

“We are carrying out an internal investigation in the matter. We would like to reiterate that for SpiceJet, safety of its passengers is of utmost importance,” said a statement from the airlines.

http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/spicejet-aircraft-hits-electric-pole-before-takeoff/article4177104.ece

Airport: action council lambasts Chandy

The Chief Minister’s recent statement that the government will go ahead with the proposed greenfield airport project at Aranmula is irresponsible as well as deceit of the people, Kummanam Rajashekharan, patron of the Thiruvaranmula Paithruaka Grama Karma Samiti (TPGKS), has said.

In a statement here on Friday, Mr. Rajashekharan said the proposed airport project was a private venture. It was the private company which was supposed to make such a statement and not the Chief Minister, he said. By making such an ‘‘irresponsible’’ statement, the Chief Minister had degraded himself as an agent of a private company that had violated all laws of the land, misleading even the Union Ministry of Environment and making a mockery of the State’s administrative machinery, Mr. Rajashekharan said.

Ironically, the Chief Minister had clarified that the government was committed to go ahead with the development projects initiated by the previous Left Democratic Front (LDF) government. During the previous election campaign, the United Democratic Front (UDF) had propped up that the policies of the LDF government were ‘‘grossly anti-people’’ and that many a project launched by the latter would be cancelled, if it came to power, he alleged.

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/airport-action-council-lambasts-chandy/article4177274.ece

Kannur airport in 3 years: Chandy

Inaugurates project office of the airport company

Chief Minister Oommen Chandy’s announcement of a road map for completing the Kannur airport project gave an impression that the project is all set to get off to a good start.

Mr. Chandy said, while inaugurating the project office of the Kannur International Airport Ltd. (KIAL) at Mattannur here on December 6, that the Kannur International Airport project would be completed and the airport operation would start in three years.

He said the construction works for the runway of the airport would begin by March 31, 2013. “The government has prepared a clear road map of the Kannur airport project,” he said, adding the first flight would land in the airport by December 31, 2015. The government’s plan was to complete the project in a time-bound manner, he said, and disclosed that clear instructions were given that the project would be completed as scheduled.

The Chief Minister’s announcement at the public function at Mattannur was greeted with cheers. Observing that infrastructure facilities such as airports would accelerate the overall development of a region, he said often delay in completing projects were the bane of the State.

Indefinite delays in completing projects resulted in cost escalation and denial of facilities those projects envisaged. The airport project report, prepared in 2005, envisaged that the Kannur airport would kick off development of the north Malabar region. The establishment of the Naval Academy at Ezhimla here and the importance of Kannur as a handloom hub and the tourism prospects of the region only enhanced the importance of the airport project, he noted.

Mr. Chandy said the government’s hope was that 783 acres of land to be acquired for the airport in the next phase could be taken over without any hurdle. The land had already been identified, he added.

The Chief Minister also stressed the importance of developing a major road from Kannur to Mattannur. The work for the road should also be completed by the time airport was ready for operation, he said. Seeking the cooperation people’s representatives in ensuring land acquisition for the road, he said the airport project had the support of all people cutting across political differences. The government would take all steps to get all clearances for the airport project, he assured.

Minister for Ports K. Babu presided. Rural Development Minister K.C. Joseph, Agricultural Minister K.P. Mohanan, MLAs E.P. Jayrajan and K.K. Narayanan, KIAL managing director V. Thulaidas, Collector Rathan Kelkar, Executive Director of AECOM-Asia, airport consultancy company, John Mennis, and District panchayat president K.A. Sarala were present.

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·  Runway work to begin by March 31, 2013

·  First flight to land by December 31, 2015

http://www.thehindu.com/todays-paper/tp-national/tp-kerala/kannur-airport-in-3-years-chandy/article4177346.ece

IVRS for flight information

The Airports Authority of India has introduced an interactive voice response system (IVRS) to provide information about flights at the Tiruchi Airport. The IVRS would provide information on flights, arrival and departure schedule, operating out of the airport. The system can be accessed by dialling 0431-2341362 with four dedicated lines.

Passengers can also get information through text messages by sending a SMS to the mobile number 09442265030, Airport Director S.Dharmaraj, said in a press release.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/ivrs-for-flight-information/article4177136.ece

Cargo complex to get cold storage for perishables by March

A five-tonne capacity cold storage facility for storing perishables would be set up at the Air Cargo Complex at Tiruchi Airport by end of March.

The cold storage is being established with the support of Agricultural and Processed Food Products Export Development Authority (APEDA). The facility would come up at the airport as soon as necessary clearances were issued by the Airports Authority of India, said S.Dharmaraj, Airport Director, Tiruchi.

The air cargo complex is also likely to get the Electronic Data Interchange (EID) for speedy processing and clearance of export/import procedure. “Efforts were underway in association with the Customs Department to get the facility, also by March end,” Mr.Dharmaraj said speaking at a function to mark the first anniversary of the air cargo complex at the airport on Friday.

The opening of the air cargo complex, which became functional on December 1, 2011, has contributed to a steady increase in export of cargo through the airport. The complex has handled 2,143 tonnes of cargo over the past 12 months, accounting for a 20 per cent increase over the corresponding period the previous year. However, the annual handling capacity of the complex was around 45,000 leaving a huge gap in capacity utilization. The complex had a capacity to handle 250 tonnes of cargo and it currently handles about 200 tonnes a month on an average.

Given the facilities available and 43 international flights a week, there was big scope for increasing cargo exports and imports through the airport, which caters to about 14 districts around Tiruchi, Mr.Dharmaraj said and appealed to the industry and other stakeholders to increase cargo movement. He also appealed to Air India to lift cargo from the airport as the national carrier currently does not do so owing to a policy decision.

K.Anantha Padmanaban, Chief Commissioner of Customs (Preventive), Tiruchi, observed that efforts to increase the capacity utilisation of the cargo complex have to come from all stakeholders. “You have to survive by providing better service and facilities,” he told the airport officials. Though the volume of transaction was less at the air cargo complex, much importance was being attached to Tiruchi as manifest by the shifting of the headquarters of the Chief Commissioner of Customs (Preventive) to the city from Chennai. He assured the cooperation of the Customs in increasing cargo exports and imports through the airport.

D.K.Srinivas, Commissioner of Customs, Tiruchi, observed that given the proximity of Tiruchi to several other ports and airports in the State, the AAI had to hard sell the facilities available here. He suggested that the authorities organise road shows to project the facilities in Tiruchi.

T.V.Murali, Chairman, Confederation of Indian Industry, Tiruchi Zone, underlined the need for more domestic flights to the city to increase domestic cargo movement. The export potential from Tiruchi was steadily rising and urged the authorities to focus on attracting non-perishable cargo, which currently forms the mainstay of the air cargo complex. Once the airport expansion was over, paving the way for movement of wide bodied aircrafts, cargo movement would increase, he said.

L.Gnanaraj, president, District Chamber of Commerce, too emphasised the need for more domestic connectivity as it could spur cargo shipments.

S.Subramanian, Manager, Cargo, Tiruchi Airport, said bonded trucking service was introduced, which gives scope for export and import of cargo through other major airports in the country. The air cargo complex had trained manpower to handle hazardous cargo too. The complex had achieved quick turnaround time of both export and import cargo and there was no procedural delays.

Awards

Sri Lankan Airlines bagged the award for lifting the highest quantum of cargo (72 per cent of the total exports) among airlines operating from the city, while Al Salaam Exports bagged the award for exporting the highest quantum of cargo through the airport. Skyfield India Pvt.Ltd, got an award for maximum transaction, Guru’s International for accurate and regular shipments and AJ Exporters, Madurai, for quality packing and product shipments. Mr.Anantha Padmanaban presented the awards.

20 per cent increase in cargo handling at airport after opening of air cargo complex

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/cargo-complex-to-get-cold-storage-for-perishables-by-march/article4177135.ece

Civil aviation policy attuned to needs of passengers with disability sought

It is time that a new civil aviation policy is formulated with special emphasis on passengers with disabilities who continue to face barriers, Justice S. Vimala of the Madras High Court said here on Friday.

Addressing a seminar at Tamil Nadu Dr. Ambedkar Law University on ‘Law, Policy and Regulation on Civil Aviation in India: Contemporary issues and Challenges,’ she said, “While some positive steps such as the introduction of Civil Aviation Requirements on Carriage by Air of Persons with Disability and/or Persons with Reduced Mobility were taken, the experience on the ground remains at an unacceptably low level.”

The disability policy must cover all persons with disabilities and not only those who have mobility impairment. The policy must also recognise that persons with different types of disabilities often require different types of assistance, she said.

Stressing on greater transparency on the use of non-aero land at airports, she said it was counter-productive to develop residential and commercial communities on land adjacent to airports and then see activism from residents seeking to curtail airport operations because of noise pollution. There must be careful master planning to ensure that different land uses could co-exist. Furthermore, a long-term perspective must be taken with respect to land requirements for airport infrastructure.

Ms. Justice Vimala questioned the use of international language and food on sectors such as Chennai-Madurai and said services must be need-based, not sophisticated.

K. Shivakumar, Joint General Manager, Aviation Safety, of the Chennai Airport, said that the authorities were striving hard to meet safety standards due to increase in traffic. He sought the help of the officials concerned for streamlining the activities of flying clubs and restricting construction of high-rise buildings near airports.

http://www.thehindu.com/todays-paper/tp-national/civil-aviation-policy-attuned-to-needs-of-passengers-with-disability-sought/article4177127.ece

SpiceJet plane touches lamp-post; flight aborted

In a freak incident, the wing of a Hyderabad-bound SpiceJet plane with 142 people onboard touched a lamp post along the taxiway while taxing out of Delhi airport.

“The incident occurred around 7.40 p.m. on Thursday, when SpiceJet’s Boeing 737—800, operating on Delhi-Hyderbad route (SG 239), was taxing out of Delhi airport. The aircraft’s left wing touched a high-mast lamp post situated along side the taxiway,” a source said on Friday.

The pilot of the aircraft aborted the take-off and the passengers were sent to Hyderabad in a separate plane after a delay of about two hours, they said, adding the aircraft departed from Delhi at 21:25 hours.

The airline, in a statement, termed it a minor incident saying, “We are doing an internal investigation in this matter. We would like to reiterate that for SpiceJet, safety of its passengers is of utmost important.” — PTI

http://www.thehindu.com/todays-paper/tp-national/spicejet-plane-touches-lamppost-flight-aborted/article4176892.ece

We’ll ensure smooth takeover: GMR

GMR Male International Airport Ltd (GMIAL), a part of the GMR group, has said it will facilitate a smooth takeover of Ibrahim Nassir International Airport by the Maldives Airport Company Ltd, effective Friday midnight, as per the orders of the Court of Appeals, Singapore.

“GMIAL has been assured that as a result of this takeover all its employees, suppliers and other interested parties will not be put to any inconvenience. GMIAL remains committed to finding a suitable solution to this situation,” GMR said in a statement on Friday evening.

“We are taking requisite steps to work out the compensation receivable from the Government of Maldives, keeping in mind the judgment of the court and the concession agreement dated June 28, 2010,” it said.

“All actions as above are without prejudice to our legal rights and statements made before various courts/tribunals where matters are currently being pursued or likely to be taken up.”

http://www.thehindu.com/todays-paper/tp-national/well-ensure-smooth-takeover-gmr/article4176817.ece

Maldivians divided on GMR issue

Shades of opinion that the matter could have been handled more sensitively

The announcement that the Maldivian government had taken control of the Ibrahim Nasir International Airport from the airport operator GMR was celebrated at a public meeting here late on Friday, though some ordinary Maldivians were not sure if it was the smart thing to do.

Maldivians who support ‘Anni’ (former President Mohamed Nasheed) feel that GMR got caught in a political crossfire, while other shades of opinion held that the issue could have been handled more sensitively. “This is not about GMR; this is not about managing an airport. This is about targeting Nasheed,” said Mickail Naseem, who is here on a semester break from Cambridge.

“If they [the government] really had the interests of the country at heart, they should have made sure that GMR built a better airport,” said Naseem, who volunteers for the youth wing of the Maldivian Democratic Party (MDP) but does not hold a position.

Ali Yousuf, a journalist, held that the government was right in taking back the airport, but felt it should have handled the issue better.

A few youth, who said that they support parties in the current government, were vehemently critical of the decision to give the airport to a foreign company. “Oh yes, we do want a second Heathrow, but the point is, can we do it?” asked one youth, who gave his name as Abdullah, a local businessman. He said that this gateway airport, one of the two international airports in the country, should not be handed over to a foreign company to run it.

Abdullah and a few others were firm that no foreign power, China included, should be allowed to run the airport. “Maldivians toiled to build this airport. You have to understand that this is an emotional issue. I don’t want it being run by a foreign company,” said Ismail Sharief, a businessman. “We are not against GMR or anyone. There are many other Indian investments. There has been no problem for any of them.”

Overseeing the preparations for the public meeting at Artificial Beach — an area that is designed for meeting and protests — was Ahmed Shameem, a State Minister for Tourism. He insisted that he and volunteers were organising meetings on issues, and GMR was one of the many issues they had taken up under the banner ‘Maldivian Citizens National Movement. “As of midnight today [Friday], the GMR issue ceases to exist. Our next focus will be the Majlis [Parliament]. They [MPs] are not working for people. Some of them are working at the behest of foreign powers,” he alleged.

Many Maldivians on the streets of Male — a small island of 192 ha area, which is home to a third of the population — said they wanted smooth facilities at the airport. A few recall that it had much fewer facilities earlier, and that there has been considerable development after GMR took over in 2010. “There was no improvement in the airport earlier [before GMR came in]. After GMR, there was a lot of change. They ran it better,” said Miaz Ibrahim. “No one can surely dispute that.”

In a country where nearly everyone is literate and where everyone is affiliated to a political party, it also follows that everyone has a reasoned-out opinion on all issues. Everyone this correspondent spoke to in the island-capital, wanted a better airport for sure, but differed on how to go about it. The MDP has the largest membership among the 3-lakh Maldives populace, but falls hugely short of the half-way mark.

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·  One student said it was all about targeting Nasheed

·  Some youths wanted the airport to be run by the state

http://www.thehindu.com/todays-paper/tp-national/maldivians-divided-on-gmr-issue/article4176818.ece

SpiceJet to expand international network

Domestic low cost carrier SpiceJet has announced that it will launch flights from Delhi to Guangzhou, China and Delhi to Riyadh from early next year.

In a statement issued here, the airline said Guangzhou is a centre for education, culture and communication in Southern China, as well as one of the three biggest exhibition centres of China. It is an important centre for foreign commerce and attracts huge travel from India.

SpiceJet will operate direct, daily flights on the Delhi-Riyadh and four weekly flights on the Delhi-Guangzhou route.

The Delhi-Riyadh route will be operational by January 4, 2013 while the first flight from Delhi to Guangzhou will take off on February 8.

“We at SpiceJet are very excited about these two great new routes to Riyadh and Guangzhou which will give passengers more choice,” SpiceJet CEO, Neil Mills said.

SpiceJet is the only Indian carrier to connect Guangzhou with India. Booking of tickets for both the routes are open now. With the addition of these two routes, SpiceJet will fly to seven international destinations from India.

The airline will deploy 189-seater Boeing 737 NG aircraft on the two new routes.

Earlier, the airline had announced its plans to launch three new international routes Kochi-Male, Kochi-Dubai and Ahmedabad-Dubai.

While Kochi-Male flight started on November 29, Kochi-Dubai will start from December 10. Ahmedabad-Dubai will start from December 19.

At present, SpiceJet operates flights to Kathmandu (Nepal), Colombo (Sri Lanka), Kabul (Afghanistan), Dubai (UAE) and Male (Maldives). SpiceJet offers 11 routes on the existing international destinations from India.

http://www.thehindu.com/todays-paper/tp-national/spicejet-to-expand-international-network/article4176800.ece

AI threatens to stop flying to North-east

Air India has threatened to stop flying to the North-east from January 1, if immediate steps are not taken to address the issue of non-payment of nearly Rs. 100 crore by the North East Council (NEC) to it in the last two years.

If the threat materialises, thousands of passengers flying from Tezpur, Lilabari and Shillong will be badly hit. The non-payment has also led Air India subsidiary Alliance Air not renew the lease of three turbo-prop ATR planes operating to these cities, sources in the Aviation Ministry said.

The NEC finances Alliance Air’s operations in the region each year through viability gap funding (VGF) under a Memorandum of Understanding. While Alliance Air submitted its VGF estimates in September last year for a grant of Rs. 52 crore and Rs. 55 crore for 2012 and 2013 respectively, the amount had not been paid to it so far, the sources said.

The viability gap for this year is now estimated at Rs. 60 crore, resulting in a severe cash crunch for Alliance Air. After the grounding of helicopter services run by Pawan Hans following accidents in the recent past, Alliance Air extended its operations in the North-east by connecting cities such as Lilabari, Tezpur, Dimapur and Jorhat by flying four turbo-prop ATR aircraft.

While the lease of one ATR aircraft expired in September, those of two others are due to expire shortly. “If the NEC does not provide the VGF its due for 2012-13, Alliance Air will not be able to renew the leases and be forced to return the aircraft to the lessor, leading to the stoppage of flights on these crucial sectors,” a senior official said.

The NEC was informed that these flights would be discontinued from January 1 in case the VGF funds were not provided urgently, the sources said.

Operations to the North-east are guided by the government’s Route Dispersal Guidelines, which make it mandatory for all carriers to fly to the region and other remote parts of the country. A major chunk of these operations are carried out by Air India and Alliance Air.

When the guidelines were first formulated in 1994, there were only 28 flights a week flying in the North-east. Today, there are over 350 flights a week.

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·  Alliance Air an AI subsidiary, connects cities in north-east

·  NEC finances AA’s operations in north-east as per MoU

http://www.thehindu.com/todays-paper/tp-national/ai-threatens-to-stop-flying-to-northeast/article4176750.ece

SpiceJet plane wing damaged

In a freak accident, the wing of a Hyderabad-bound SpiceJet aircraft that carried 142 people was damaged after the pilot veered off the guiding line and hit a high-mast light-post while taxiing out of the IGIA here on Thursday.

http://www.thehindu.com/todays-paper/spicejet-plane-wing-damaged/article4177324.ece