Extra luggage, preferred seats on flights get costly

Mumbai: Close on the heels of national carrier Air India slashing its baggage limit, private full service carrier Jet Airways on Thursday revised its free baggage limit to 15 kgs in economy class from 20 kg on Jet Konnect.If you are carrying baggage weighing more than 15 kg, you will have pay Rs 250 per additional kg. The revision will come into effect from May 15. However, the JetPrivilege members would continue to enjoy the additional free baggage allowance, while Premiere (business class) guests would continue to avail 30 kg of free baggage allowance on Jet Airways and Jet-Konnect flights, the airline said in a statement. The move came days after the directorate-general of civil aviation (DGCA) allowed airlines to charge fees for ‘unbundled services’ like check-in baggage, preferential seats, meals, snacks or drink (barring drinking water) and sports and musical instruments on their domestic flights.Meanwhile, low-cost carrier IndiGo has decided to charge a premium from the fliers for pre-booking a preferential seat in domestic and global flights.It would charge the passenger a premium of Rs 500 for sitting in first two rows or near emergency exits in 12 and 13th row on a domestic flight and Rs 800 for an international flight under its Indigo Seat Plus plan.
 Though, IndiGo, has not indicated from when it would start charging the new rates, in a circular to travel agents it said for all other window and aisle seats, which are pre-selected, a passenger would be charged Rs 200 for domestic and Rs 300 for international flights.While pre-booking of all other middle seats would cost Rs 100 on a domestic route and `200 on an international flight.
http://www.deccanchronicle.com/130510/news-businesstech/article/extra-luggage-preferred-seats-flights-get-costly
 

GVK awards duty-free & retail contracts to Dufry and DFS at Bali airport

MUMBAI: Making headway in its maiden international airport project in Bali, Indonesia, Indian airport operator GVK has awarded the duty free and retail contracts to Dufry and DFS, two of the leading airport retailers. GVK Airports, a diversified infrastructure company based out of Hyderabad, manages airports in Mumbai and Bangalore. It bagged a management contract from the Indonesian government to manage non-aeronautical and commercial operations at Denpsar International Airport in Bali in 2012. DFS and Dufry are top travel retailers in the world and have been competing with each other to gain number one slot for some years now. DFS is holding the number one position followed by Dufry currently. GVK said the contract with both these companies is for a five-year period and the airport operator targets a seven-fold increase in revenues through duty free and retail sales. The scope includes both the existing terminals and the new international terminal that is currently under construction and is expected to open in the third quarter of 2013. The retail and duty free awards will be followed by Lounge, Forex and F&B concessions, the company said.
 "These along with other concessions at international and domestic terminal will generate revenue in excess of Rs 1,500 crore over five years, a whopping 300% increase for Angkasa Pura Airport, the Indonesian Airports Authority that also partners GVK in the venture," the company executive said.
 DFS and Dufry won the bids over 200 prospective bidders, the executive added.
 The contract with the travel retailer companies has a guaranteed component of over 80% along with minimum annual guaranteed revenue (MAGR) that is benchmarked against Asia's leading airports like Singapore's Changi Airport.
 GVK said the MAGR at Bali Airport is two dollars per passenger and is likely to go up to about $12 per passenger $2/pax, and is expected to achieve $12/pax.
 GVK's contract with the Indonesian government is on a base fee and an incentive fee based remuneration structure. All capital expenditure is funded by the government
http://articles.economictimes.indiatimes.com/2013-05-10/news/39169289_1_airport-operator-gvk-airports-dufry

Air India starts test-flight of Dreamli

. CHENNAI: Air India on Friday started test-flight of its Boeing 787 Dreamliner between Delhi and Amritsar. The airline expects to put all its six Dreamliner aircraft into service by end of this month.The initial test-flights began after director general of civil aviation cleared new battery packs fitted on the aircraft.
 "Test-flights will continue for the next few weeks and it will also help the crew to gain mandatory requalification needed to operate the machines. The pilots who flew the plane were satisfied with the performance of the aircraft," said an Air India official.Air India's engineers are working closely with Boeing's team to change batteries of the rest of the B787 aircraft. The airline has six Dreamliners. The second aircraft is also expected to be ready by May 12.After Boeing's team completed improvement of battery, the Dreamliner aircraft took off from Mumbai for the first time and was flown to Delhi today. It had a stop over at Ahmedabad where pilots practised back-track and other manoeuvres before taking off as part of their training.Civil aviation secretary K N Shrivastava and Air India's chairman and managing director Rohit Nanadan visited the Delhi Airport to see the first B787, which had been modified with the new battery system. They looked at the modifications and risk mitigations that were carried out.The Boeing 787 aircraft were grounded earlier in January 2013 after certain critical battery problems were detected in the fleet operated by other airlines. Air India's Chennai-Delhi service using a Dreamliner aircraft was popular among passengers.
http://timesofindia.indiatimes.com/business/india-business/Air-India-starts-test-flight-of-Dreamliner/articleshow/19984986.cms

Emirates Airline annual profit jumps 52% to $622 mDubai, May 9:

Dubai’s Emirates Airline said today it posted $622 million in annual net profits in 2012-2013, a 52 per cent boost on the previous year, as passenger numbers exceeded 39 million.The carrier’s profit was “at AED 2.3 billion ($622 million), representing an increase of 52 per cent over last year’s results,” Emirates said in a statement.Emirates Group as a whole, which also includes Dnata travel services, posted $845 million in net profit, with total revenues increasing 17 per cent to a record of $19.9 billion, it said.
 “Achieving our 25th consecutive year of profit... with our largest ever increase in capacity across the network is an achievement that speaks the strength of our brands and our leadership,” said the Emirates chairman, Sheikh Ahmed bin Saeed al-Maktoum.The Middle East’s largest airline, which has become a major carrier between Europe, Asia and Australia, transported 39.4 million passengers, 16 per cent up from the previous year.The carrier’s fuel bill also increased 15 per cent over the last year to reach $7.6 billion, the statement said.
http://www.thehindubusinessline.com/news/international/emirates-airline-annual-profit-jumps-52-to-622-m/article4699353.ece

Cochin airport passenger traffic up 3.74%

Cochin International Airport Ltd has registered a 3.74 per cent growth in passenger traffic in 2012-13, touching the 49-lakh mark against 47.23 lakh the previous year. Of this, international passenger number is 29.34 lakh (25.88 lakh in 2011-12) and domestic passenger figure is 19.66 lakh (21.35 lakh in 2011-12). Though there was an increase of 13.37 per cent in international traffic, the domestic passenger numbers dipped by 7.93 per cent. The major factor that contributed to the fall in numbers was the termination of flight operations of Kingfisher Airlines which had nearly 90 weekly domestic operations. The fluctuating and increasing price in the domestic sector also was a causal factor. All Indian airports experienced similar fall in domestic passengers and flight movements, a press statement issued here said. In the international sector, total flight movements in 2012-13 was 20,286 (18,324) and in the domestic sector 21,252 (22,817), making a total of 41,538 flight movements — a growth of 1 per cent. It is a noticeable factor that even though a 7.9 per cent dip in the domestic passenger was experienced, CIAL registered a positive growth of 3.74 per cent in the passenger figure and one per cent in flight movements, compensating the domestic fall with international operations, a rare occurrence in the aviation industry.
http://www.thehindubusinessline.com/industry-and-economy/logistics/cochin-airport-passenger-traffic-up-374/article4699415.ece

Jet, Jet Konnect to lower checked-in free baggage weight

After Air India, it is now the turn of private airlines to start charging for some services. While Jet and Jet Konnect will start charging for additional weight in check-in bags, IndiGo is going to charge for preferred seats.From May 15, Jet Airways and Jet Konnect free baggage allowance on domestic flights will be revised to 15 kg from the existing 20 kg. Jet and Jet Konnect are following in the footsteps of Air India which has decided to reduce the free check-in baggage allowance to 15 kg from May 13. Both the airlines will charge a flat rate of Rs 250 a kg as excess baggage rate for every kilo of a checked-in bag that weighs over 15 kg. IndiGo, the Delhi-based low-cost airline, has introduced IndiGo Seat Plus, in which a passenger will be charged a premium of Rs 500 for sitting in rows 1, 2, 12 and 13 on a domestic flight and Rs 800 for an international flight.
IndiGo said for all other window and aisle seats that are pre-booked, a passenger will be charged Rs 200 for a domestic and Rs 300 for an international flight.
In a circular to travel agents, IndiGo said those pre-booking all other middle seats will be charged Rs 100 on a domestic and Rs 200 on international flights. IndiGo has not indicated from when it will start charging the new rates.The decision to charge for these services comes days after the Ministry of Civil Aviation allowed domestic airlines to charge passengers for services, including checked-in bags and preferential seating.
http://www.thehindubusinessline.com/industry-and-economy/logistics/jet-jet-konnect-to-lower-checkedin-free-baggage-weight/article4699028.ece
 

Flyers to pay more for heavy bags, changed travel plans

NEW DELHI: Flying with heavy bags, changing travel plans and not showing up for your flight will be an expensive affair from next week. Air India has decided to reduce the free check-in weight from 20 kg to 15 kg for economy class domestic flyers from Monday. Jet and JetKonnect will follow suit from Wednesday. The Jet group and AI will charge Rs 250 per kg for excess baggage (beyond 15 kg) from people flying within the country. Registered frequent flyers and business class passengers have been spared this new rule.In addition, AI has also hiked the no-show, cancellation and itinerary change fees. Jet had earlier made its lowest fare tickets non-refundable and now AI has done that and a lot more.For lowest fare economy tickets, re-issue or date change will now cost Rs 1,500 — twice the earlier fee of Rs 750. These tickets remain non-refundable in case of no shows.
 Mid range fare bucket tickets have now been made non-refundable while AI earlier used to charge Rs 500 as penalty from no-shows and allow them to use it on some other flight. Changing this fare level's tickets will now cost Rs 1,000, up from earlier Rs 500.Not showing up has also been made expensive for passengers with highest fare levels of economy and business class tickets of AI. The no-show charge has been hiked to Rs 1,000 from the earlier Rs 200. The airline has
Decidedto continue with its policy of not charging anything from such passengers for an itinerary change.A senior AI official said: "Our flights are going 80% full now and business class is also seeing good occupancy. We are offering economical fares and not showing up means a dead loss for us. These charges have been hiked as an attempt to help us keep offering low base fares to passengers and keep flying affordable."AI earlier had excess baggage charge between Rs 150 and Rs 400 per kg, depending on the distance. While passengers had to pay Rs 280 per kg for extra baggage on Delhi-Mumbai route, the charge for Delhi-Kochi was Rs 400. The airline has now moved to a flat rate of Rs 250, which has been the practice at other Indian carriers like Jet and IndiGo.AI is now tweaking its software to start charging from pre-booking of seats. Low-cost carriers IndiGo and SpiceJet, which used to charge for this facility till two years back before the Directorate General of Civil Aviation stopped them from doing so, may restart this fee anytime now. IndiGo will charge a fee of Rs 500 for sitting in row numbers one, two, 12 and 13 (emergency rows that have extra leg room) on domestic flights and Rs 800 on international routes. Pre-booking other window and aisle seats will cost Rs 200 and Rs 300 for domestic and internationals flights, respectively.
 After domestic flyers, Indian carriers will look at international flights too to increase ancillary revenue. AI is first going to re-examine the free baggage check-in on flights between India and Gulf and Southeast Asia. Later it may change baggage norms for flights to Europe and North America too.
 "Airlines know what charges are to be put where but are just waiting for someone to make the first move," admitted an official.
http://timesofindia.indiatimes.com/business/india-business/Flyers-to-pay-more-for-heavy-bags-changed-travel-plans/articleshow/19980939.cms?
 

Grounded Dreamliners to take to the skies

Air India is all set to resume operating its six B-787 Dreamliners from next week on the domestic circuit and a week later on international routes. Air India was operating the aircraft from Delhi to Bangalore, Chennai, Dubai, Paris and Frankfurt.Battery sparks in two Dreamliners of a Japanese airliner led to the grounding of 50 such aircraft on January 16 after the U.S. Federal Aviation Administration asked all airlines worldwide to ground Dreamliners.
 New battery packs
A team of engineers from Boeing, along with Air India and Director General of Civil Aviation (DGCA) personnel, has started fixing new battery packs on all six Dreamliners of Air India.
“The Dreamliners have already undergone test flights on the domestic route to check the new battery packs. The test flights, along with pilots and cabin crew, were undertaken from Mumbai to Delhi. In the coming days, several tests flights will be undertaken, including those between Delhi and Amritsar, and observations will be made about take-off and landing in order to ensure that everything is working fine with the aircraft. The DGCA has already given permission to the Dreamliners to take to the skies and lifted the ban on their flying in India,” a senior government official said.
 First domestic flight
The first domestic flights are likely to be operated on the Delhi-Kolkata and Delhi-Bangalore routes. It is understood that Air India has resumed sale of tickets for the routes. Later, the aircraft will be deployed on the Chennai and Dubai routes.
Air India has been banking on the Dreamliner for reviving its sagging fortunes, as it not only ensures more load factor but also saves nearly 15 to 20 per cent on fuel expenses compared to the fuel-guzzling 777s. It had booked 27 Boeing-787s in a mega deal in 2006. It is supposed to get seven planes in 2013, five in 2014, six in 2015 and three in 2016. The aircraft is unique – it is made of composite materials. Its newly-developed engine and advanced flight technologies make it highly fuel-efficient. It can fly up to 16,000-km non-stop.
http://www.thehindu.com/business/Industry/grounded-dreamliners-to-take-to-the-skies/article4699197.ece

V.N. Chandran to be MD of KIAL

The government has sought the services of V.N. Chandran, Director of Thiruvananthapuram International Airport, from the Airports Authority of India (AAI) for appointing him as the Managing Director (MD) of Kannur International Airport Limited (KIAL).The decision to approach the AAI to get the services of Mr. Chandran on deputation comes in the wake of the Cabinet nod to appoint him as the MD of the KIAL in place of V. Thulasidas who resigned on April 30 after serving four-and-a-half years to become Adviser and Director Board member of Oman Air.Official sources told The Hindu that the government had decided to write to the AAI seeking that Mr. Chandran be relieved at the earliest so that formal orders on his new posting could be issued. Principal Secretary Tom Jose now holds the charge of the MD of the KIAL.The decision to appoint Mr. Chandran has come as a surprise in the aviation sector as the names of many, including senior IAS officials such as V.J. Kurian, MD of CIAL; Mr. Jose; and former AAI member P.S. Nair were doing the rounds.The new MD’s appointment comes at a time when the engineering, procurement, and construction contract for the earthwork, runway, and pavements of the fourth international airport in the State near Mattannur in Kannur is to be awarded.
Biggest challenge
The biggest challenge for the new MD will be to stick to the schedule for making the Kannur airport operational by December 2015.Mr. Chandran, who has been serving as Director of Thiruvananthapuram International Airport since June 26, 2012, is in the grade of General Manager, and was all set to be elevated as Executive Director in the AAI.He was transferred on October 21, 2010 from here as Airport Director, Bhubaneswar, following a controversy over commissioning of the Rs.300-crore international terminal complex that has come up on the city side.
Mr. Chandran, a native of Ernakulam, earlier served as Deputy General Manager (Air Traffic Control) here before being promoted as Airport Director
http://www.thehindu.com/todays-paper/vn-chandran-to-be-md-of-kial/article4691181.ece

Air trips get more expensive for travel-heavy passengers

Now, extra baggage and preferred seat are going to cost you more as you plan an air travel. Within days of the civil aviation ministry allowing airlines to unbundle services, IndiGo today decided to charge an additional Rs 200 for each aisle and window seat. Only the middle seat would not attract any additional charge. And, if you want a seat in the front row or next to the emergency exit — both with more leg space — you will have to fork out an additional Rs 500.These new charges would, however, apply only on pre-booking of preferred seats on the internet or through agents. Online travel firm Yatra.com has confirmed IndiGo’s new rates. You could still reach the airport check-in and ask — if you are lucky and such seats are available, the airline would offer you those without any extra cost.
 IndiGo’s decision, the first by an airline to charge more for preferred seats, has come a day after Air India reduced the free-package limit for each economy-class passenger from 20 kg to 15 kg. From next week, a flyer would have to pay Rs 200-250 more for every one kg of extra luggage.Jet Airways, too, is following suit. It has brought the free-luggage limit down to the same level as Air India. From May 15, the Naresh Goyal-promoted airline would charge Rs 250 more for every one kg of additional luggage. This essentially means a passenger who so far carried 20 kg of luggage without any extra cost will have to pay an additional Rs 1,250 for the same weight. Business-class passengers have, however, been spared from this. They would continue to be allowed to carry up to 30 kg of luggage on domestic routes without having to shell out any extra amount.SpiceJet, another key low-cost carrier, too, is weighing options to boost its ancillary revenues through excess baggage claims and pre-booking of seats. A decision on this is likely to be taken by the end of May.According to analysts, the additional income for IndiGo, assuming all its seats are pre-booked, would be equivalent to revenues from five additional passengers.While announcing the unbundling of services, Civil Aviation Minister Ajit Singh had said the move would surprisingly lower basic fares. However, that doesn’t seem to be happening anytime soon. SpiceJet CEZNeil Mills says: “In an ideal environment, base fare should come down. But that would take time.”According to the Centre for Asia Pacific Aviation, the Indian airlines are set to earn ancillary revenues of $500 million a year after unbundling of services.Sunny Sodhi, Yatra’s COO (corporate travel) & senior vice-president (air product), says: “Sooner or later, all airlines would join the bandwagon and reduce free-baggage limits. Indians like to travel heavy. Globally, airlines like AirAsia charge even for carrying more than a specified number of bags. This, along with charges for preferential seats, will bring in additional revenue streams for airlines.” According to industry estimates, ancillary revenues account for 10-12 per cent of airlines’ top lines.
 “With extra charges on every one kg of additional luggage, we might see a cultural shift in India. Many a time, passengers pack in nearly seven days of luggage for a two-day trip. They might now begin to travel light. This would reduce fuel-burn, speed up baggage handling and lead to faster turnaround of aircraft,” said Amber Dubey, partner and head, aviation, KPMG.The Ministry of Civil Aviation had allowed Indian airlines to unbundle certain services and charge for them separately. The airlines would have to submit the details of various charges for unbundled services. The DGCA would monitor such that the fees are not altered unlike airfares for flights.The decision is expected to open up additional revenue streams for airlines - from check-in baggage, use of lounges by economy class passengers for a fee, carriage of sports or musical equipments - who have been struggling to maintain operations sustainably in an environment of wafer-thin margins.
http://www.business-standard.com/article/companies/air-travel-to-get-costlier-113050800689_1.html

GoAir scouts for partners to sell 49% stake

MUMBAI: GoAir, part of the Nusli Wadia Group, has appointed investment bank JPMorgan to scout for a foreign strategic partner to buy up to 49% in the low-cost passenger carrier, four people close to the development said, signaling the eagerness of Indian carriers to source capital in order to scale up their operations"GoAir is in talks with three to four overseas airlines from Europe and the Middle East to sell up to 49% stake," an investment banker with direct knowledge of the development said.
"The company is in talks with German carrier Lufthansa and Dubai-based Emirates and Qatar Airways, among others," said a second investment banker involved in the deal. "It is very early to divulge more details," he said. "As a company policy, the airline does not comment on market speculation," GoAir's spokesperson said. The Wadia family owns 100% of GoAir. Many Indian carriers have been scouting for foreign strategic partners after the government allowed foreign carriers to own up to 49% in Indian passenger carriers. On April 24, India's largest passenger carrier by revenue and number of passengers carried, Jet Airways, signed an agreement with Abu Dhabi governmentowned Etihad Airways to sell 24% stake for Rs 2,060 crore to pare its debt. The two carriers said it would make Abu Dhabi a hub for its international flights to Europe.Etihad paid a 32% premium to the price of Jet's shares on the BSE, indicating interest in the Indian aviation sector as the market is growing at 10% and the government has ambitious plans to build new airports and expand existing ones. "The European carriers are losing share of the Indian market to Middle East carriers," says a managing director of a foreign investment bank. "So, European carriers need to counter this by partnering with Indian carriers to connect more cities and towns." Last month, Lufthansa denied any interest in purchasing a stake in GoAir. But, the airline had said it needs to have a low-cost airline in the Asian region and may partner with an existing carrier in the region to deal with the onslaught of the Middle East airlines which are taking away traffic at a brisk pace.
 "With a global partner, GoAir will be able to realign its routes to feed into the bigger airports from where outbound Indian fliers can reach their global destinations through the partner airline's network," Amber Dubey, partner and head at KPMG. "This kind of end-to-end service creates a win-win deal for passengers and the airline partners alike." On Tuesday, Akbar al Baker, head of Doha-based carrier Qatar Airways, said the carrier wanted to have a co-operative alliance with India's largest budget carrier and market leader IndiGo.
The Wadia family, whose interests range from real estate to textile, has been trying to raise money as it rapidly expanded its fleet and connected more destinations. Aviation analysts said GoAir has an advantage as it can quickly scale up as it has placed large orders with aircraft maker Airbus and can provide connectivity with the smaller cities and towns allowing its foreign partner to use it as a hub-and-spoke model. Air Asia has recently said it would start its operations in Indian by connecting secondary cities and towns. GoAir, with 7% share, flies to 21 destinations and has 750 weekly flights. In January, GoAir, which wants to fly overseas, has asked the government to relax a stipulation that carriers seeking to fly to international destinations must have at least 20 planes. The Indian government allows only carriers with 20 planes or more to fly overseas.
http://articles.economictimes.indiatimes.com/2013-05-09/news/39143997_1_goair-indian-carriers-wadia-family
 

Unbundling services: A new revenue stream for airlines

The jury is still out on whether the Government’s decision to unbundle certain services on domestic flights is good news or bad for flyers. But a look at what airlines abroad charge provides some clues on what lies ahead.
Internationally, many airlines, especially low-cost, have for a while been charging for among other things checked-in bags, meals and even the seat.
Revenue stream
This is seen as a separate revenue stream for airlines. Ryanair — the airline Civil Aviation Minister Ajit Singh said was among those that had been studied before the unbundling move — charges a priority boarding fee of €7-10 (Rs 500-700) This facility allows the flyer to be among the first to board a flight.AirAsia, which plans to begin India operations later this year, charges Rs 90 for a standard seat selection. This figure goes up to Rs 450 for a “hot seat”. Paying this allows the flyer priority boarding and get a comparatively comfortable seat with more leg space.For sports equipment and musical instruments (20 kg/per item/one way) Ryanair charges €50-60 (Rs 3,500-4,200). Checked-in bags will attract the usual charge. The unbundling in India covers these two categories. For every first checked-in bag (15 kg) Ryanair charges €15 (about Rs 1,100) if done at the time of booking on the airline’s Web site. This figure goes up to €60 (Rs 4,200) if the booking is made through the call centre or if the ticket is purchased at the airport. For the second checked-in bag (15 kg), the rate ranges from €105 (Rs 7,500) to €160 (Rs 11,000), depending on the flight and low/peak season. In comparison, American Airlines charges domestic flyers $25 (about Rs 1,400) for the first checked-in bag and $35 (about Rs 1,900) for the second.
Commercial decision
The Directorate-General of Civil Aviation (DGCA) has allowed airlines in India also to start charging separately for these services. Air India was first off the block,cutting baggage allowance to 15 kg and setting a fee of Rs 250/kg for excess weight. This applies from May 13. The other domestic airlines do not appear to have made up their minds yet. SpiceJet Chief Executive Officer Neil Mills said this will be a “commercial decision” which the airline will take at an appropriate time. “The lowering of fares will happen over a period,” he said declining to set a time line.
http://www.thehindubusinessline.com/industry-and-economy/logistics/unbundling-services-a-new-revenue-stream-for-airlines/article4696054.ece

IndiGo to charge for pre-selection of seats

New Delhi: After Air India,leading low cost carrier (LCC) IndiGo is going to take the next step towards unbundling services and charging separately for them.
The LCC is going to charge for pre-selection of seats where it will give passengers the option of blocking front row,emergency exit row or window aisle seats for a fee of 100 to 200.The airline will apply to the directorate general of civil aviation (DGCA) to levy this fee which was stopped by the regulator two years back.
But now the governments go ahead to airlines for unbundling services and monetizing those means airlines can again levy this fee.We are not going to tinker with our 20kg free check-in baggage allowance for now and are going to introduce a fee for preselection of seats.Seats with extra leg room,window and aisle seats can be booked at time of buying the ticket.However,there will be no extra charge for these seats for passengers who get them at the time of check-in, said a senior official.Other airlines are also planning to re-introduce the seat selection charge but fear that they may run into a VVIP roadblock.The bureau of civil aviation securitys had some years back issued a list of 31 categories of people with Sonia Gandhis son-in-law Robert Vadra being the only individual in it who are exempt from security checks at airports.The list includes the top dignitaries of the country,cabinet ministers and chief ministers.All airlines are expected to give them front row seats for security reasons.As a result two years back when we used to offer preselection of seats to passengers for a fee,there were many times that some VIP would turn up and then the passenger who had bought the front row seat would have had to be requested to shift elsewhere.So as long as the security requirement of giving front row seats to VVIPs remains,pre-selection will remain a grey area, said an airline official.Meanwhile,all airlines are now devising innovative packages for unbundling services and levying fees,some players are working on having a 5kg excess check-in weight package for a certain sum that will be cheaper than the Rs 200-300 per kg that airlines charge for more than the allowed weight.For instance,Air Asia does not allow any free check-in baggage and passengers have to buy the weight they wish to carry at the time of buying their tickets.Clearly,now the Indian carriers will try to outdo each other in terms of devising such packages.

AIR INDIA FORCES FLIERS TO GO LIGHT

Air Indias decision to bring down the check-in baggage allowance from 20kg to 15kg will have a cascading effect as other airlines are likely to follow suit.An average Indian family carries around 20kg a head.Theyll have to throw some items out of their bags with the allowance coming down.Most domestic carriers,including Indigo,Jet Airways,Go Air and Spice Jet,provide a baggage allowance of 20kg per passenger.This goes up to 30kg on international airlines such as Etihad and Emirates.Air India will charge between 200 and 250 for every extra kg.Nirmal Selvamani,a businessman who flies regularly,said most middle-class passengers carry as much as they can to avoid spending at their destination.The airline should review its decision,especially since the money they collect as excess baggage charges is not going to save cash-starved Air India, he said.A senior Air India pilot agreed.An e m p t y b a g weighs about 5 k g,wh i ch means passengers can only pack items weighing 10kg as check-in baggage, he said.This could be difficult if a person is taking a long trip.Airlines allow 7kg as hand baggage.Sources said other airlines might cut their check-in baggage allowance too.The decision cannot be challenged because there are no norms for the free baggage allowance.In the US,most airlines do not allow free checked-in baggage, said an airline official at Chennai airport.International Air Transport Association (IATA) is framing new norms for baggage services.Aviation experts said that the only rule restricts the weight of a bag to 32kg based on labour laws and concern for loaders who handle baggage.Air Passengers Association of India president D Sudhakara Reddy said,Air passengers in the US are different from India.Most domestic air passengers there are business travellers and do not have check-in baggage.They holidays are road trips.Indian passengers fly on domestic holidays. Low-cost carriers have always been indifferent to the idea of free baggage allowance.Since the ticket prices are low,people should be willing to pay for checking in baggage because we incur operational costs and difficulties while handling bags, said an airline official.
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=9&sectid=edid=&edlabel=TOIKRKO&mydateHid=09-05-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00901&publabel=TOI

CM stands by Aranmula airport plan

Chief Minister Oommen Chandy has made it clear that there will be no change in the pro-Aranmula airport stand of the state government. He also made it clear that the notification on excess land in the area envisaged for the project is only ‘technical’ and will be rectified.Replying to media queries at a post Cabinet briefing on whether the state government is still for retaining its share in the airport project, Chandy said on Wednesday that all the clearances regarding the Aranmula airport in  the private sector was given by the former LDF government.
“It was only followed by the present government. We stand by all measures initiated by the previous government,” he said.When pointed out that 222 acres of land earmarked for the airport and in the possession of KGS Group, the promoters of the airport, was taken over as excess land by the Taluk Land Board recently, the Chief Minister asserted that it was only technical. “It will be rectified soon,” he insisted.It is notable that the Chief Minister’s announcement comes amid a relief among those opposing the project, including environmentalists in the Aranmula region. It has become certain now that the government support for the project will continue and agitations will increase.
http://newindianexpress.com/states/kerala/CM-stands-by-Aranmula-airport-plan/2013/05/09/article1581290.ece

Qatar Airways, IndiGo in code-share talks

Qatar Airways is in talks with IndiGo for a code-share alliance that would allow the Gulf-based airline to spread its network to more Indian cities, taking on the Jet-Etihad combine for a larger pie of India’s international traffic.IndiGo, the country’s largest domestic airline by market share, did not respond to a query. Qatar Airways CEO Akbar Al Baker, interacting with the media on the sidelines of a travel show in Dubai yesterday, had confirmed talks were on with the Indian carrier. The code sharing would allow Qatar to place its code on the domestic and international flights of IndiGo, which has a fleet of over 60 Airbus 320 planes. The move could help Qatar increase its revenue and network from India.Earlier, Abu Dhabi-based Etihad, which went on to buy a 24 per cent stake in Jet Airways, had also entered into a code-share agreement with the Indian partner for a few cities.After the civil aviation ministry recently increased the seat capacity between India and Abu Dhabi from 13,000 a week to over 50,000, the Qatar government, too, asked for a major increase in seat capacity between India and Doha — by 48,000 a week. If cleared, this could help Doha, with 72,600 seats a week, emerge as an alternative hub to Dubai, as well as Abu Dhabi.At present, Qatar Airways operates 95 flights to 12 Indian cities. If the code-share agreement is sealed, it would be able to bring in passengers seamlessly from the 28 domestic destinations through which IndiGo flies to Qatar’s hubs in India, from where they can fly to Doha and beyond. IndiGo still does not fly directly to Doha; its request for 2,500 seats a week is pending with the government.However, unlike in the Jet-Etihad code sharing where both the parties were full-service carriers, in this case, Qatar is a full-service player and IndiGo a low-cost carrier (LCC). Typically, there are difficulties in forging such an agreement between an LCC and a full-service player, given the varying needs of the two models.
“Yes, we are talking to IndiGo to see how we can strike a relationship. IndiGo is an airline that is not for sale. We only want to do a code-share partnership. And, we want to get into a situation where we work together, because it is the best airline in India today. I am in touch with IndiGo’s co-founder Rahul Bhatia. We hope we will be doing this soon,” Al Baker told Dubai-based Gulf News. “We have very high regard for IndiGo. I think it’s the most efficiently-run airline,” he added.He denied his airline was looking to invest in any Indian carrier. “I don’t have so much money to buy stakes in airlines. I never talked about SpiceJet or GoAir. We are not interested in either. The brokers or the shareholders create these rumours to increase the value of their shares.”
WHAT’S A CODE-SHARE ALLIANCE?
• Full-service airlines build networks in two ways — deploying own capacity or partnering with other airlines through commercial agreements. These include interline agreements and code sharing, which allow an airline to sell tickets on flights operated by other airlines
• Interline is an arrangement to sell tickets, while a code share is like a commitment for it
• In a code share, one (marketing) airline places its code on flights operated by the other airline
• In terms of revenues, a code share gives an airline better options than an interline agreement, as it allows sale of tickets in more fare slabs than in an interline agreement
• Frequent flyers get to earn miles in a code-share alliance, unlike in an interline arrangement
• http://www.business-standard.com/article/companies/qatar-airways-indigo-in-code-share-talks-113050700233_1.html

DGCA lifts ban on Dreamliner

New Delhi: Aviation regulator DGCA on Tuesday allowed resumption of operations of the Boeing 787 dreamliner aircraft, by issuing an order lifting the ban on operations of the aircraft in India.The test-flights (without passengers) of Air India’s dreamliner aircraft are likely to start from Wednesday and Air India is hoping to resume flights with passengers from May 16.Air India has so far taken possession of six dreamliners from Boeing out of a total order of 27 aircraft that was placed a few years ago.The DGCA had in January this year, grounded Air India’s six Boeing 787 dreamliner aircraft following the emergency airworthiness directive iss-ued by the United States’ Federal Aviation Agency (FAA) that operations of the aircraft be “temporarily ceased”.The FAA had then said there was a “potential battery fire risk” in the Boeing 787 dreamliners that “requires operators to temporarily cease operations”. The DGCA lifted the ban on Tuesday after a lengthy presentation by Boeing at the DGCA headquarters in New Delhi on replacement of batteries in the dreamliner aircraft.
“They (Boeing) are replacing the battery systems. Their engineers are alre-ady working at it. They have replaced the battery system in one dreamliner aircraft already.The replacement is being done by Boeing in accordance with the FAA suggestions on the matter,” top DGCA sources told this newspaper on Tuesday. The Air India board also met and is understood to have discussed the issue of re-sumption of Boeing 787 dreamliner operations.
http://www.deccanchronicle.com/130508/news-businesstech/article/dgca-lifts-ban-dreamliner
 

Air India to lease 19 Airbus A-320 aircraft

Air India plans to lease 19 Airbus A-320 aircraft, which will be able to fly 180 passengers in an all-economy configuration. The proposal to lease the aircraft, which will replace the same number of A-320 aircraft being phased out, was approved at the airline’s board meeting here on Tuesday. The aircraft being phased out were acquired as part of an order placed by Indian Airlines in 1989; 14 of the A-320s being phased out are owned by Air India, while five are leased.
While the owned aircraft will be sold, the leased ones will be returned after the agreements lapse. The induction of the leased capacity, which is expected to begin in the third quarter of this fiscal, will see an increase in seats being offered by the airline. Each of the aircraft being phased out offers seats ranging from 144 to 168.
The new aircraft will seat 180 passengers and help the airline fight competition from low-cost airlines that fly passengers in an all-economy class configuration.
Boeing 787
The airline plans to restart operations of the Boeing 787 soon, flying it on domestic routes in about a week and on international operations within two weeks, the board was informed. Air India, like many global airlines, will receive compensation for the grounding of the 787s, or Dreamliners as they are better known.
Sources indicated that the compensation would be decided after calculating the revenue loss to the airline based on a formula that calculates how much average revenue the airline would have earned had the aircraft been in service. Air India grounded the six 787s on January 17. Earlier, Civil Aviation Minister Ajit Singh had indicated that Air India was incurring a loss of Rs 20 crore a week.While Air India has not mentioned how much compensation it is likely to receive from Boeing for the grounding, news reports quote Qatar Airways as saying it will receive compensation from Boeing for $200 million in lost revenues. Qatar Airways has five Boeing 787 aircraft while Air India has six Dreamliners in its fleet. Meanwhile, Air India has informed travel agents that the decision to start charging passengers for checked-in bags of over 15 kg would apply on tickets sold after May 13
http://www.thehindubusinessline.com/industry-and-economy/logistics/air-india-to-lease-19-airbus-a320-aircraft/article4692902.ece
 

Travel agents to down shutters today on commission woes

Bang in the middle of the peak summer travel season, more than 2,600 travel agents across the country will down their shutters on Tuesday to press for a 5% commission for the airline tickets they sell through their travel agencies. The travel agents say the commission was their right which was being denied.The Travel Agents of Association (TAAI) has approached the Aviation Ministry for what they say ‘right for commission’ from airlines, but their requests and representations have gone unheeded.“How are we suppose to do business if we are not paid our legitimate commission for providing our services (booking air-ticket)? If we shut shops for a day maybe the government and airlines will realise how important our services are,” said Rajji Rai, advisor to TAAI and chairperson of Swift Travel International.Earlier foreign airlines had reduced their commission from 9% per ticket to mere 1% which had severely affected the business of travel agents.  Travel agents had started charging a transaction fee on tickets ranging between `350 and `10,000 per ticket. But earlier in January the Supreme Court banned agents and airlines from charging the transaction fee.Agents pointed out that while in Australia, Japan and even Nepal and Sri Lanka airlines offer commission to travel agents, in India they have stopped paying tour operators as the government has the not helped the industry on this.In 2008 and 2009, travel agents stopped ticketing for Jet Airways and Singapore Airlines as these airlines refused to pay commission to the travel agents. Around 16 airlines, including British Airways, Lufthansa Airlines, Air Canada, Swiss International Airlines and Singapore Airlines (SIA), don’t pay commission to airlines after moving to zero-commission regime in 2008. Many travel agents then also stopped ticketing for these airlines as well. But the collective ‘boycott’ brought them under the lens of the Competition Commission of India. In October 2011, CCI had imposed a fine of `1 lakh each on three travel associations — Travel Agents Federation of India, TAAI and IATA Agents Association of India (IAAI) — for violating provisions of the Competition Act.Through their one-day stir they are also seeking transparent airfares.  “Consolidated airfares should be charged with all the basic essential necessities of the consumer like tea, coffee, insurance, change of dates etc. met,” points out a TAAI member
http://newindianexpress.com/business/news/Travel-agents-to-down-shutters-today-on-commission-woes/2013/05/07/article1578357.ece
 

Lenders recovered Rs 1,000-cr dues from Kingfisher: SBI chairman

A consortium of banks, led by the State Bank of India (SBI), has recovered Rs 800-1,000 crore from debt-ridden Kingfisher Airlines, and is in the process of recovering the remaining dues of about Rs 6,000 crore.“Kingfisher Airlines recoveries are going on. Total recoveries for banks are more than Rs 800-1,000 crore,” SBI Chairman Pratip Chaudhuri told reporters today. The consortium of 17 banks has an exposure of about Rs 7,000 crore to the airline, which remains grounded for over the last six months. SBI’s exposure is highest at Rs 1,600 crore, followed by Punjab National Bank and IDBI Bank at Rs 800 crore each. Bank of India and Bank of Baroda have an exposure of Rs 650 crore and Rs 550 crore, respectively.“We are making all efforts. We have treated this loan 100 per cent provided for. It does not mean that we are not going after assets. We are going after all assets. The company’s shareholding, real estate, personal assets, all is targeted,” Chaudhuri added.Banks have the brand of Kingfisher and shares of United Spirits as collateral which could get them about Rs 500 crore.The consortium also has a residual right over the securities held by Srei Infrastructure Finance, which comes to about Rs500 crore.Earlier in March, Finance Minister P Chidambaram came down heavily on wealthy promoters not servicing bank loans in the garb of their company making losses. He had asked banks to take firm action against such wealthy promoters of sick companies to recover their dues.Asked about transmission of the 25 basis points cut in the repo rate by RBI last week to customers, the chairman said it was not possible in the near term. “With the repo rate cut, we don’t get savings because our total repo borrowing is Rs 20,000 crore. So, if you reduce rate by 25 basis points, the saving will be Rs 50 crore. Total advances are to the tune of Rs 5 lakh crore which comes to one basis point,” he said, and added had there been a cut in cash reserve ratio, it would have would have provided room for cut.The country largest lender had last reduced its base rate in January to 9.70 per cent from 9.75 per cent. On merger of five SBI associates with the parent company, he said it would be considered in July-August, in consultation with the government.“Economic logic for a merger is as strong, as earlier we have merged the two associate banks; those banks have benefited, SBI has benefited, the country has benefited,” Chaudhuri said.
http://www.business-standard.com/article/finance/lenders-recovered-rs-1-000-cr-dues-from-kingfisher-sbi-chairman-113050600673_1.html

Travel agents fear move will lead to drop in commission

Travel agents have opposed the civil aviation ministry’s decision on unbundling some services, fearing a further drop in commission. Last week, the government allowed airlines to charge separately for meals, preferred seats, luggage and use of lounges, among others.The Travel Agents Association of India (TAAI), which has called its 2,800-odd members to observe a voluntary shutdown tomorrow, is opposed to the government move. According to association members, the agents in Mumbai alone sell air tickets worth over Rs 100 crore a day. The agents, who are at loggerheads with airlines on the issue of commission, feel the move would hurt them further.“We have no issue with airlines charging for insurance or a sandwich, but should be included in the basic fare. There has to be one base fare without any break-ups,” said Jay Bhatia, chairman (west region), TAAI.While the European airlines do not pay a regular commission, Air India and Jet Airways pay one per cent on basic fare and fuel surcharge. Productivity bonus is only paid on the basic fare. The agents fear commission amount would drop further if unbundling of services is allowed.The agents are demanding airlines pay them five per cent commission and drop the plan to reduce weekly payment cycle from 15 days to seven days. Also, the agents are demanding restoration of transaction fee, which they collected in lieu of commission, for selling low-cost airline tickets.“Over 70 per cent of tickets, which are sold now, are non-refundable. We face the passenger brunt, while airlines collect cancellation charges, date change fees,’’ said TAAI member Nasrulla Tejani.
 “The airlines are cutting their marketing arm. Reducing the payment cycle would make it difficult for agents to take care of administrative expenses. The travel agents community will perish and we do not want that to happen,’’ association chairman Iqbal Mulla said.
http://www.business-standard.com/article/companies/travel-agents-fear-move-will-lead-to-drop-in-commission-113050400636_1.html
 

DGCA to set norms to cap paid-for seats in flights

The Directorate General of Civil Aviation (DGCA) is looking at framing regulations to cap the number of preferential seats airlines can offer in a flight. The move comes after the civil aviation ministry decided to allow Indian carriers to charge passengers for add-on services like their foreign counterparts.“Customers should have the choice to opt in for preferential seats. Besides, the middle seat in an aircraft cannot be termed a preferential one. There would be a cap on the number of preferential seats an airline can offer in a flight,” a senior DGCA official said, requesting anonymity. “We are looking at framing some regulations which would be in line with international norms.”Industry estimates indicate while internationally, around 10 per cent of capacity is earmarked preferential in airlines, in India, if window and aisle seats are put up for pre-booking in lieu of a specified fee, two-thirds of in-flight capacity can yield ancillary revenues.In a move which is expected to improve the operating costs of airlines, the ministry had allowed Indian carriers to unbundle certain services and charge these separately. The airlines would have to submit the details of various charges for such services. DGCA will monitor that the fees are not altered unlike air fares for flights.The decision is expected to open up additional revenue streams for airlines — from check-in baggage, use of lounges by economy class passengers for a fee, carriage of sports or musical equipment, etc.While airlines have welcomed the dismantling of regulatory control, opinion has been divided on whether the decision would result in spiralling upwards air travel costs. Some experts have held that since 80-85 per cent of an airline’s operational expenses are fixed in terms of fuel costs, airport charges, salaries payable to crew members and payments made to aircraft leasing companies, there is little room left for airlines to lower base fare despite the ministry’s decision to unbundle services.“Base fares are likely to reduce with the unbundling of services, but not substantially since a significant portion of airlines’ costs are of a fixed nature. Airlines would recoup the reduction in base fare through increase in ancillary revenues. Lower base fares may attract some traffic from road and rail to air. The bigger takeaway is the fact that the ministry is stepping away from intrusive fare control and letting market forces play their part,” says Amber Dubey, partner and head-aviation at global consultancy KPMG.Civil aviation minister Ajit Singh, however, has maintained that permitting airlines to unbundle services would help airlines lower base fare for the price-sensitive traveller and at the same time offer add-on services to more discerning customers at a cost.Neil Mills, chief executive officer, SpiceJet, said: “It’s a welcome step, but we have not taken any decision yet. In an ideal environment, base fares should come down in the industry, but it would take some time.”Interestingly, the announcement has come days after Malaysian low-cost carrier Air Asia applied for commencing air services in the country. Air Asia relies heavily on ancillary revenues from check-in baggage, preferential seats, in-flight entertainment and meals, while keeping its base fare low. Indian airlines had earlier started pre-booking seats for a charge about three years back, but had stopped upon a directive from DGCA in early 2012.The decision to allow airlines to unbundle services was taken in line with a report formulated by Nathan Economic Consultants — ‘Economic Regulations to Airlines : Ticket Pricing in India’. The report had batted for unbundling of services “since it has become a necessary aspect of exercising more control over operational costs and running a successful airline”. According to travel technological solutions firm Amadeus, airlines globally are said to have generated around $36.1 billion in ancillary revenues in 2012.
 GIVING A BOOST?
* Civil aviation ministry had allowed Indian airlines to unbundle certain services and charge them separately
 * The move is expected to improve airlines’ operating costs. To open additional revenue streams for airlines — from check-in baggage, use of lounges by economy class passengers for a fee, carriage of sports or musical equipment
 * Airlines would have to give details of various charges for unbundled services
 * DGCA would monitor such that the fees are not altered, unlike airfares
http://www.business-standard.com/article/companies/dgca-to-set-norms-to-cap-paid-for-seats-in-flights-113050600783_1.html
 

Air India to cut free baggage limit to 15 kg from 20 kg

Air India has cut the baggage allowance for most economy-class fliers becoming the to take advantage of the recent government move to allow airlines to charge separately for various services. According to the new rules, which go into effect from next week, the airline will now allow an economy class passenger to carry only 15 kg against 25 kg. Baggage in excess of 15 kg will be charged at Rs 200-250 a kg. At present, the excess baggage rates (beyond 25 kg) varies, depending on the length of the journey.
Price points
Members of Air India’s frequent flier programme will be allowed an additional 10 kg of check-in baggage on domestic flights free of cost. The business class allowance stays at 35 kg. Explaining the concept, an Air India official said the airline has more than 14 price points for economy tickets on domestic flights. The new rule is likely to apply to some 10 of these price points, the official said, declining to specify how many of the over 40,000 passengers flown by the airline daily will be affected by the changed rules. The new checked-in baggage rules will apply to tickets sold after a date to be notified by the airline. Air India is also likely to start charging for preferential seating, though no date has been set to implement this.
Other airlines
The response of other domestic airlines was not immediately known. However, going by past practice, they should follow suit. Excess baggage charges account for about Rs 100 crore of Air India’s revenue, with about 5 per cent of the passengers paying excess baggage rates. The implementation of the decision initially by Air India and eventually by other airlines will see the airline industry increase the revenues from other income. Globally, it is not uncommon for airlines to earn 10-15 per cent from ancillary revenues. At present, for domestic airlines, the earning from ancillary revenues, as a proportion of total revenues, in percentage terms is in single digit.
http://www.thehindubusinessline.com/industry-and-economy/logistics/air-india-to-cut-free-baggage-limit-to-15-kg-from-20-kg/article4689181.ece

Pawan Hans may enter commercial airline business

State-run helicopter operator Pawan Hans is planning to enter the commercial airline business offering regional connectivity and has already received a go-ahead from its board, a top official has said.The New Delhi based firm, however, is yet to decide on the business model and the timeline for the proposed venture, the official said.The country's largest helicopter company, which slipped into the red in the 2012 fiscal, has managed to turnaround with a Rs 7-8 crore net profit (unaudited) in the past fiscal on account of higher efficiencies and cost-cutting."Pawan Hans has a mandate from its board as well as the government to go for fixed wing aircraft operations. That is a very challenging opportunity for us," Pawan Hans Chairman Anil Srivastava, who is also a joint secretary in the Aviation Ministry said.Srivastava said plans are in line for the regional connectivity policy, which envisages providing regional air connectivity to support traffic at larger airports.The government is in the process of finalising a policy to promote the regional air connectivity and increase air services in the hinterlands, which is expected to be announced in the next three months."So, Pawan Hans, in anticipation, intends to play a vital role in the segment. We want to make use of the smaller airstrip lying across the country," Srivastava said.There are 290-odd airstrips in the country. Of these, some are operational while most of them are unused.Srivastava, however, said a concrete plan for the company's proposed move is being worked out, adding, "Details such as operation model, fleet size/type of aircraft or whether to go in for scheduled or non-scheduled services are to be finalised."On investment that would be required for entering commercial aviation, Srivastava said: "The first thing is to develop the skills which are required (to run an airline).Financial resources are not critical if the company has the skills to manage the business." "We are operating (as a chopper operator) in a highly competitive market through the open bidding system. We are competing with private operators and are doing well without any government grants."The company has the strengths, but we have to develop our strength and skills in the areas of fixed wings planes (operations)," Srivastava said.One should take the jump but with preparations, he added."The company was in a bad shape in FY12 with a loss of Rs 10.35 crore. But we are happy to say that we have sort of turned around with a net profit of around Rs 7-8 crore (unaudited)," Srivastava said.Attributing the profitable balance sheet to increasing efficiencies of the existing resources, coupled with a series of cost-cutting measures, Srivastava said, "The measures resulted into a net saving of around Rs 9 crore last fiscal."Even a Parliamentary panel in its report tabled last Friday had said a budgetary support would help the state-owned chopper firm in its expansion plans.
"The committee finds that as against the projected demands of Rs 5 crore under the plan, Pawan Hans was not able to get any budgetary support," the Parliamentary standing committee on transport, tourism and culture headed by CPM leader Sitaram Yechury said in its report."The committee feels that necessary budgetary support, if given to Pawan Hans, it can take up its capacity building and skill development/expansion projects without delay. The committee feels that the company should expand its business beyond off-shore operations and present itself as a viable air service provider in unexplored tourist destinations," the report said.
http://businesstoday.intoday.in/story/pawan-hans-may-enter-commercial-airline-business/1/194693.html

AirAsia chief Tony Fernandes to visit India

AirAsia chief Tony Fernandes will visit India shortly and might meet civil aviation ministry officials, amid reports that the government has raised certain queries on their application seeking official nod to launch AirAsia India operations.
 "I will come to India soon and you can ask me all the questions," Fernandes told PTI in a text message. AirAsia India, which last month received Foreign Investment Promotion Board approval to set up a joint venture airline, has applied to the civil aviation ministry for a no-objection certificate (NOC) to launch its operations in the country.In the new airline, AirAsia will hold 49 per cent stake, Tata Sons 30 per cent, and Arun Bhatia of Telestra Tradeplace the remaining 21 per cent.On receipt of the application, the Ministry recently raised questions on AirAsia India not providing the names and nationalities of its chairman, chief operating officer, chief executive officer (CEO) and chief financial officer. The names were required for mandatory security clearance by the home ministry, before an NOC is granted.The promoters can approach aviation regulator Directorate General of Civil Aviation for their flying licence only after the company receives the NOC from the ministry. Fernandes said "no comments" when asked about the questions raised by the ministry. He had earlier tweeted that the AirAsia India Board had approved and appointed a CEO for the proposed carrier, but did not identify the person. Civil Aviation Minister Ajit Singh had also suggested on Friday that the proposed airline would save time if it named the CEO of the company soon.
 "I saw in the papers that the CEO's name was not there. So, asking that is really helping them because they have to go through the security clearance. If they reply, that will save time later on, otherwise it will pull on," Singh had told reporters in Delhi. "If we get all the required data, it should be cleared very soon
http://www.business-standard.com/article/companies/airasia-chief-tony-fernandes-to-visit-india-113050600025_1.html

DGCA moots cameras in cockpits

New Delhi: Following several stories of shocking behaviour of pilots on duty,an alarmed aviation regulator is planning to make it mandatory for airlines to have cameras in cockpits.In the most recent violation,Air India pilots allegedly allowed air hostesses to be in their seats and get a crash course on how to fly a plane during a Bangkok-Delhi flight.In another shocker,an Air India plane landed in Mumbai without ATC clearance.The Directorate General of Civil Aviation is seriously deliberating having cameras in the cockpit in the interest of flight safety as pilots would know they are under watch.This proposal was earlier floated by the International Civil Aviation Organization and now our flight standards department is working on it, said a highly placed official.DGCA officials anticipate opposition.Airlines will oppose it on the ground that it will mean extra expense for them both in terms of purchasing equipment and then the recurring cost of downloading the content and maintaining records.Pilots would oppose it as they would be constantly under electronic watch.Despite this,the aviation regulator is favorably inclined to the plan.It wants cameras to act as a deterrent for irresponsible behavior inside the cockpit that could imperil flight safety.On long flights,it is common for one pilot to take a nap for some time after telling the other to stay alert and wake him/her if the other person is also sleepy.The camera will ensure that both do not doze off at the same time or do the kind of stuff that has been reported recently, said sources.While the plan details are being worked out,the DGCA brass is keen that airlines should download camera recording after a fixed time period and keep it for some time.In almost all cases where crew is at fault,the airline or crew itself does not report the incident for some hours.They always wait for the plane to do some moreflights so that the cockpit voice recorder only has recordings of the last few flights and not the one where the incident occurred.This erases vital proof, admitted an official.
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=1&sectid=edid=&edlabel=TOIKRKO&mydateHid=06-05-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00101&publabel=TOI

Reconsider Aranmula Airport project: Par panel

THIRUVANANTHAPURAM: The parliamentary standing committee on transport, tourism and culture, chaired by CPM MP Sitaram Yechury, has asked the government to reconsider the decision to construct the Aranmula airport as it violates the government policy restricting two airports within a distance of 150 km."The proposed greenfield airport at Aranmula in Kerala is 120 km from the Thiruvananthapuram airport and 90 km from the Kochi airport. Moreover, the two airports are brand new ones and there is no scope for saturation of capacity of these airports,'' the report said. "As per the policy specified for airport infrastructure, a greenfield airport may be permitted where an existing one is unable to meet the projected requirements of traffic or a new focal point of traffic emerges with sufficient viability. It can be allowed, both as a replacement to an existing airport or for simultaneous operation,'' it said. The committee said that it was informed that the government of India had granted in-principle approval in September 2012 for setting up the airport at Aranmula. "Around 905 acres of land is required, out of which, 600 acres has already been acquired. The total project cost is around Rs 2,000 crore,'' the report said.
http://articles.timesofindia.indiatimes.com/2013-05-04/kochi/39026259_1_aranmula-airport-greenfield-airport-kochi-airport

AI invites applications for 300 vacancies at Air India Air Transport Services Limited in Cochin International Airport Ltd

THIRUVANANTHAPURAM: Air India has invited applications for around 305 vacancies in its wholly-owned subsidiary Air India Air Transport Services Limited (AIATSL) for carrying out ground handling (GH) activities at Cochin International Airport Ltd. (CIAL). The recruitment is in keeping with the Turn Around Plan (TAP) and Financial Restructuring Plan to infuse funds into Air India, which was approved by the AI Board in March 2011 and cleared by the Cabinet Committee of Economic Affairs in April 2012. AIATSL was formed in 2003 and started functioning at the Trivandrum Airport in 2004. However, Air India, contrary to the airline's Turn Around Plan, hived off its ground handling at Trivandrum International Airport to Air India SATS Airport Services Private Limited (AISATS) in May 2012 (with retrospective date of April 1, 2012) and around 10 of its employees transferred to Kochi AIATSL.
"Currently, Air India's GH team is facing stiff competition from other GH agencies such as WFS, which has eaten into our market share. They managed to take a few airlines from us such as Qatar Airways, Gulf Air and Kuwait Airways in 2009. We need to upgrade our performance levels and our services," said a senior AI official.
 AI's GH team currently handles Air India Express flights, AI (narrow and wide-body aircrafts), Saudi Airlines, Air Asia, Emirates and Silk Air. Around 700 staff from two outsourced agencies - Airawat Aviation and Immanuel Aviation & Cargo Services Pvt Ltd - are engaged in GH activities at Kochi for AI. The national carrier also has around 130 GH employees of its own, including those who have been transferred from Air India Charters Limited to AIATSL, when the TAP was operationalized.
Applications advertised on the AI career webpage says candidates chosen to perform ground duties at Kochi Airport will be offered a fixed-term contract for a period of three years, for the following posts: Senior Customer Agent, Senior Ramp Service Agent, Customer Agent, Junior Customer Agent, Ramp Service Agent and Ramp Service Agent (LG), Utility Agent-cum-Ramp Driver.
http://articles.timesofindia.indiatimes.com/20130505/thiruvananthapuram/39042181_1_air-india-express-kuwait-airways-qatar-airways

Air hostesses take control of AI flight as pilots take break

Mumbai: Two Air India pilots put the lives of 166 passengers on a Bangkok-Delhi flight in danger by taking a 40-minute break from the cockpit and getting two stewardesses to operate the plane in their absence.Their stunt almost ended in disaster after one of the stewardesses accidentally turned off the auto-pilot,forcing the pilots to rush back to their seats.
The incident took place 33,000 feet in the air on Air India flight AI 133 (an Airbus 321) from Bangkok to Delhi on April 12,which took off from Bangkok at 8.55am.Thirty minutes later,First Officer Ravindra Nath excused himself from the cockpit for a bathroom break and got airhostess J Bhatt to occupy his seat in his absence.According to the guidelines it is a standard procedure to ensure the presence of second person in the cockpit so that if the pilot is not able to operate the aircraft for some reason,the other crew member in the cockpit can immediately call for the other pilot.But what actually happened after this made a mockery of air safety, said a source in Air India,who did not wish to be named.
Minutes after his co-pilot left the cockpit,Captain B K Soni called another stewardess,Kanika Kala,and asked her to take his seat.Captain Soni spent a few minutes teaching the two stewardesses how to operate the aircraft
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=1&sectid=edid=&edlabel=TOIKRKO&mydateHid=04-05-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00105&publabel=TOI

AirAsia CEO to clarify on Govt queries soon

AirAsia CEO Tony Fernandes will visit India shortly and may meet the Civil Aviation Ministry officials, amid reports that the Government has raised certain queries on its application seeking official nod to launch AirAsia's India operations.
“I will come to India soon and you can ask me all the questions,” Fernandes told PTI in a text message. AirAsia India, which had last month got FIPB approval to set up a joint venture airline, has applied to the Civil Aviation Ministry to get a No Objection Certificate (NOC) for launching its operations in the country. In the new airline, AirAsia will hold 49 per cent stake, Tata Sons 30 per cent, and Arun Bhatia of Telestra Tradeplace the remaining 21 per cent. On receipt of the application, the Ministry has recently raised questions on AirAsia India not providing the names and nationalities of its Chairman, Chief Operating Officer, Chief Executive Officer and Chief Financial Officer. The names are required for mandatory security clearance by the Union Home Ministry, before an NOC is granted.
The promoters can approach the Directorate General of Civil Aviation for their flying licence only after the company receives the NOC from the Ministry. Fernandes said “no comments” when asked about the questions raised by the Ministry. Fernandes had earlier tweeted that AirAsia India Board has approved and appointed a Chief Executive Officer for the proposed carrier, but did not identify the person. Civil Aviation Minister Ajit Singh had also suggested on Friday that the proposed airline would save time if it names the CEO soon.
“I saw in the papers that the CEO’s name was not there. So, asking that is really helping them because they have to go through the security clearance. If they reply, that will save time later on, otherwise it will pull on,” Singh had told reporters in Delhi.
“If we get all the required data, it should be cleared very soon,” Singh had said.
http://www.thehindubusinessline.com/industry-and-economy/logistics/airasia-ceo-to-clarify-on-govt-queries-soon/article4686059.ece

House panel against hike in air traffic rights with Abu Dhabi

Pushing to protect India’s interests in regional aviation and of Indian carriers, a Parliamentary panel has recommended freezing of the proposal to increase air traffic rights with Middle- eastern regional hub of Abu Dhabi.The panel stating that the move to increase weekly seats under bilaterals from 13,330 to 36,670 ‘appearing’ to facilitate a recent deal between an Indian carrier selling stake to a foreign airline.Though the House panel did not name the parties involved, it was apparent that they were pointing out at the $300-million worth stake sale of Naresh Goyal-led Jet Airways to Abu-Dhabi-based Etihad Airlines.Sitaram Yechury, senior Communist Party of India leader and chairman of the Parliamentary Panel on Transport, Tourism and Culture also sought the Civil Aviation Ministry’s intervention into the matter and asking them to penalise Jet for selling three slots of theirs in London’s Heathrow airport.The panel reportedly said that the move would hamper prospects for Indian aspirations to be part of the regional aviation space and create a hub on the lines of Dubai and Bangkok.Yechury has asked the Aviation Ministry to  reconsider the agreement for bilateral with the UAE, which may be kept frozen at the current level of 13,330 seats.Terming the move to increase weekly seats as a ‘backhanded’ effort to tap into the markets here, the panel noted that this could affect  Air India carrier. The panel has always been of the opinion that Air India ‘must have the first right of refusal’ in any bilateral. The report called for opening of the bilateral only once the capacity of Indian carriers were increased.
http://newindianexpress.com/business/news/House-panel-against-hike-in-air-traffic-rights-with-Abu-Dhabi/2013/05/04/article1574066.ece
 

House panel: Shelve airport at Aranmula

The Parliamentary Standing Committee on Transport, Tourism and Culture has recommended reconsideration of the proposed airport at Aranmula on the grounds that it violates the government policy of not allowing a new greenfield airport within 150 km of an existing airport.The committee headed by CPM leader Sitaram Yechury, in its report, a copy of which is with Express, said, “The committee finds that the proposed greenfield airport at Aranmula is 120 km away  from Thiruvananthapuram and 90 km from Kochi, where there are international airports and  it ‘is violative of the government policy of not allowing an airport within 150 km’.
The report further stated that the international airports in Thiruvananthapuram and Kochi are new ones.
“The committee notes that the proposed Aranmula airport is violating the 150-km distance rule and the saturation, in terms of capacity, of nearby existing airports. The committee therefore recommends that the proposal for the construction of Aranmula airport may be reconsidered by the government,” the report stated.
Before coming out with the report, the panel asked for existing guidelines for setting up a second airport within an airport limit, and found that Chapter eight of Policy on Airport Infrastructure indicates that no greenfield airport will be normally allowed within an aerial distance of 150 km of an existing airport.A greenfield airport may be permitted where an existing one is unable to meet the projected needs of traffic or a new point of traffic emerges with sufficient viability.
http://newindianexpress.com/nation/House-panel-Shelve-airport-at-Aranmula/2013/05/04/article1574117.ece

Mini-jumbo war beckons as Boeing starts selling 777X

Boeing (BA.N) has started offering its long-awaited 777X long-range jet, paving the way for a 'mini-jumbo' war with European rival Airbus, industry sources said on Wednesday.
The move backed by Boeing's board means that the commercial aircraft division can begin taking orders for a revamped version of its top-selling wide-bodied jet, the 777, which could include folding wingtips and new engines from General Electric (GE.N).
Boeing declined to discuss the outcome of Monday's board meeting but said it was pushing ahead with the project to update the twin-engined jet, in service since the 1990s.
"We are taking the next step when it comes to engaging customers on the 777X," spokesman Doug Alder said. The company has "begun to discuss additional technical, pricing and schedule details with customers", he added.
Reuters reported on April 24 that Boeing was ready to go ahead with the project "within weeks", after one of its key customers, British Airways (ICAG.L), placed a $6 billion order for A350-1000 jets from rival Airbus (EAD.PA).
Until now, Boeing has enjoyed a virtual monopoly in the lucrative market for large twin-engined jets, boosting its margins, but Airbus has started challenging that position with its 350-seat A350-1000, due to enter service in 2017.
Boeing's response is a substantial overhaul in the design of the 777, expected to enter service around 2020.
BOOST FOR SUPPLIERS
People familiar with the matter said the Boeing board had approved the so-called "authority to offer", allowing sales to proceed. The people declined to be identified because they are not authorized to discuss actions of the board.
After attracting enough orders, Boeing would go back to the board for permission to start developing and building the jet.
If launched, the program would bring billions of dollars of business to suppliers of aircraft parts. In March, Boeing chose General Electric (GE.N) to develop the engines, renewing their exclusive partnership on the most recent 777s.
The 777X is a planned successor to the industry's most popular large twin-engined aircraft seating more than 300 passengers. The original 777 was introduced in 1995 and is the last new plane Boeing developed before the 787. Its most popular version is the more recent 777-300ER.
The 777X would compete from around the turn of the decade with the Airbus A350-1000 to carve up a potential market of at least 2,000 aircraft worth about $500 billion over 20 years.
The cost of the 777X development has not been disclosed but after industrial delays followed by a grounding of its 787 Dreamliner, Boeing will hope that upgrading a familiar jet costs significantly less than the $15 billion for an all-new aircraft."Boeing has been waiting to see what happened with the A350-1000, and the BA order clearly swung their decision," said Agency Partners analyst Nick Cunningham in London.
"It could be an awesome competitor, given the success of 777-300ER, but I suspect it will end up having most of the cost and risk of a complete new program."
Emirates, which runs the biggest fleet of 777s, is among those clamoring for the cost-saving 777X as early as possible.
Airbus says that its carbon-composite A350 is lighter and cheaper to run than the 777X, which will keep a metallic body. Boeing is expected to argue that an all-new wing and new engine will make the 400-seat 777X cheaper to operate per seat.
Industry sources say that Boeing has been offering the plane informally for months, while fine-tuning the design with focus groups of airlines and lessors. It has also been offering a stretched version of its 787 Dreamliner after a similar but unannounced board decision taken late last year, they added.
HEAD TO HEAD
Until this week Boeing had held off granting the formal "authority to offer" the 777X as it juggles the looming threat from Airbus with the need to avoid undermining the value of a large order backlog of existing 777s.
Now that the 777X is being offered to customers, the next move could begin within 12 months, making the end-of-decade timetable feasible, analysts said.
Timed to dominate discussion at the June 17-21 Paris air show, Boeing's decision allows the 777X to go head to head with the A350-1000 in contests at big hitters such as Japan Airlines (9201.T) or Gulf carriers led by Dubai-based Emirates.
After losing to Airbus on part of British Airways' fleet renewal plans, industry sources say that Boeing is already in informal talks to persuade the European airline to place a parallel order for the main model, the 777-9X.The 777-9X would have about 406 seats and a range of more than 8,100 nautical miles, aiming to leapfrog the 350-seat A350-1000, two sources briefed on Boeing's plans said.
It would have a new carbon-composite wing and folding wing tips to increase wing span without needing more parking space, which would incur additional airport fees. Boeing also is thought to be considering a smaller, longer-range 777-8X.
The head of Qatar Airways said on Wednesday that he would be "very interested" in both models.
http://www.reuters.com/article/2013/05/02/us-boeing-777x-idUSBRE94105120130502

Air freight markets slowed in March: IATA

Air freight markets weakened in March, eroding some of the improvement made toward the end of 2012, according to Air Freight Market Analysis of International Air Transport Association (IATA).
Global FTKs (Freight Tonne Kilometres) were down 2.3 per cent in March compared to a year ago. Although this is an improvement in February when air freight markets were down 7.2 per cent, after adjusting for the seasonal factors that have affected year-on-year growth comparisons over recent months, the trend shows the improvement in growth has stalled, the IATA report added.
 Asia-Pacific airlines experienced most of the weakness in the global trend. In March, Asia Pacific airlines’ FTKs fell 3.3 per cent compared to a year ago. And although there was an expansion month-on-month (0.4 per cent), there has been a three per cent drop in volumes in March compared with January, the report said. The cargo businesses of regional airlines have been negatively impacted by economic weakness of major trade partners.
 IATA said that important indicators of demand for Asia Pacific airlines’ freight are mixed. The region’s fundamentals do not point to a downturn.
“Although China GDP growth did not meet forecast expectations, first quarter expansion was still strong at well over seven per cent, and business confidence indicators continue to increase. On the other hand, major trade partner Europe continues to be hampered by weak economic growth and susceptibility to sovereign debt problems. The US economy is largely on track, but recent data have raised concerns over the strength of consumer spending, which is critical to supporting demand for air freighted consumer goods,” the report added.
http://www.thehindubusinessline.com/todays-paper/tp-logistics/air-freight-markets-slowed-in-march-iata/article4677895.ece

Etihad seeks nod of competition watchdog for Jet stake buy

Etihad Airways has formally approached the Competition Commission of India to seek its nod for its acquisition of a 24 per cent stake in Jet Airways. The deal is valued at Rs 2,054 crore. The application to CCI was made on Wednesday evening.
Meanwhile, according to reports, Jet has also sought Foreign Investment Promotion Board (FIPB) approval to sell 24 per cent stake in the company to the Gulf carrier.The deal was announced on April 25 making the buyout one of the first foreign investments in an Indian airline since ownership restrictions were liberalised in September 2012.
Interestingly, the deal is one of the first transactions in the airline sector to be notified to the Commission. Besides CCI, the deal has to be vetted by the Foreign Investment Promotion Board and the shareholders of the company.
 CCI will examine whether the deal creates a monopoly situation in the aviation industry.
 According to the terms of the deal, the equity sale between Jet and Etihad would increase the combined global strength to cover as many 140 destinations, providing direct foreign connectivity to Indian passengers from 23 metro and non-metro cities.
Also under the agreement, Jet and Etihad will explore joint purchasing opportunities for fuel, spare parts, and equipment among others.
Indian carriers including Air India and private sector airports in the country too have raised concerns about the deal. Airlines from India claim that India and Abu Dhabi did not need to exchange more air seats between each other as the existing air services agreement has not yet been fully utilised.
Airlines also allege that the tie-up between Jet and Etihad will see Indian passengers being diverted over Abu Dhabi on their journey onwards to US, Europe and Canada.
 According to the Competition Act, all high-value merger and acquisitions with combined turnover of Rs 4,500 crore or more need approval from the competition watchdog. Jet and Etihad expect the deal to go through in the next two-three months.
http://www.thehindubusinessline.com/todays-paper/tp-economy/etihad-seeks-nod-of-competition-watchdog-for-jet-stake-buy/article4677868.ece
 

Etihad's global network plans fuelled by Indian passengers

About 75 per cent of Indian passengers who flew Etihad Airways last year travelled to destinations beyond Abu Dhabi. This fact was highlighted by private airport operators while opposing the demand to enhance seat capacity on India-Abu Dhabi sector.The civil aviation ministry increased the weekly seat capacity on the route from around 13,000 to 50,000, brushing aside opposition from Delhi and Mumbai airports and airlines, including Air India. Airports had argued that allowing the increase would impact their potential as aviation hubs.
 The Association of Private Airport Operators (APAO) had pointed out to the government that 25.7 per cent of Etihad Airways passengers between India and Abu Dhabi could be categorised as origin-destination traffic, which means Abu Dhabi was the destination. The rest, 74.3 per cent, flew onward to other destinations in Europe, the US and other parts of world. (Click for table)
 Etihad relies far more than Emirates on onward traffic. In the case of Emirates, 45 per cent of its passengers from India can be categorised as origin-destination traffic and the rest as onward traffic.
 According to APAO, between March 2012 and February 2013, Etihad flew 680,000 passengers to and from nine cities in India, with an average load factor of 80 percent. Of which, 175,000 passengers were origin-destination travellers and the rest flew onward on Etihad's network. Among the airports, Kozhikode in Kerala had the least number of passengers going onward (42.5 per cent), where as 83-88 per cent of passengers from Mumbai, Delhi, Bangalore and Hyderabad flew onward beyond Abu Dhabi.
 "Indian airports are national assets and so are the traffic rights. So, giving away traffic rights to countries such as the UAE (United Arab Emirates) will have an adverse impact on Indian airports, Indian carriers and the nation as a whole,'' APAO wrote to the civil aviation ministry.
 Etihad did not respond to a query seeking comments.
 A National Council of Applied Economic Research  report on Emirates Airlines shows that in 2011-12, 47-68 percent of all Indian  passengers travelled beyond Dubai. Among the airports, Mumbai and Thiruvanthapuram had the least number going beyond (47 per cent), whereas 66-68 percent of passengers from Ahmedabad, Kolkata and Hyderabad flew beyond Dubai.The report  further said only18 percent of Emirates' onward traffic flew to destinations served by Indian airlines and that majority of its onward destinations had no direct flights from India. NCAER said thus Emirates sixth freedom traffic (onward traffic) posed little competition to Indian carriers.Delhi and Mumbai airports' fears unfounded, say Jet Airways sources
 The Jet-Etihad alliance will benefit passengers from metros as well as tier-II cities who will be able to fly direct to various points in West Asia, North Africa and Europe. "We will launch direct flights from Mumbai and Delhi,'' a Jet official said adding both the airports would benefit from the alliance. The airline plans to deploy wide-body airbus A330s and Boeing 777s from metros and use Boeing 737s from smaller cities.Currently about 28 million passengers travel west-bound from India (Europe, the US, Africa) and the traffic has been growing 11-13 percent. The west-bound traffic is expected to grow to 40 million over the next few years. "Currently, the share of Indian carriers in that market is less than 20 percent. We are developing the gateway in Abu Dhabi so that we are able to connect multiple points in India and extend our network to Europe and Africa'' the Jet official said.
The additional 37,000 weekly seats to Abu Dhabi adds up to 3.2 million seats a year and still would be less than 10 per cent of projected  passenger growth on west-bound routes. "We are not closing the door on any one's growth,'' the official added.
http://www.business-standard.com/article/companies/etihad-s-global-network-plans-fuelled-by-indian-passengers-113050200701_1.html

AI suspends pilots in mid-air fiasco

Air India suspended crew members and pilots involved in the midair fiasco which endangered the lives of over 166 passengers on board the Bangkok-Delhi flight on April 12.According to reports, the two government owned carriers have been involved in most the eleven worst crashes in the last four decades.The last crash was in 2010 when an AI 737-800 aircraft crashed in Mangalore killing 158 people on board.An inquiry into the incident has confirmed the ‘over-stay’ of cabin crew in the cockpit resulting in the suspension of those involved.However, the persons involved have denied that the cabin crew had been allowed to operate the aircraft in the absence of the commander and co-pilot.According to reports, the pilots put the plane on autopilot and put two crew members in charge who then accidentally switched off the autopilot control. The carrier has seen bad press due  to non-payment of salaries, mismanagement and mounting losses.
 http://newindianexpress.com/nation/AI-suspends-pilots-in-mid-air-fiasco/2013/05/04/article1574053.ece

Air travel to cost more as airlines freed to charge extra for services

NEW DELHI: Air travel is all set to cost more as Indian carriers — like their foreign counterparts — are now free to charge passengers extra for almost every service.
 The aviation ministry on Monday allowed airlines to 'unbundle' services —meaning charge extra for blocking seats in advance, check-in baggage, and carrying sports and musical equipment or high value baggage. The list of items allowed for extra charge by aviation minister Ajit Singh will be reviewed in six months.Fallout of this order could be reduced free check-in weight. Domestic flyers are presently allowed to check-in 20 kg and airlines have been planning to reduce this to 15 kg. Airlines have been planning to hike excess baggage charge too, which means a double whammy for flyers.
Eco class flyers can use lounges for a fee
While almost all low cost carriers (LCC) and some full service ones were in favour of reducing free baggage limit, they were waiting for DGCA to first allow pre-booking of seat charges.Airlines have now been allowed to allow economy class passengers use their lounges for a fee apart from the common practice of onboard sale of food and beverages, except drinking water in cups (not the bottled variety) which has to be given free. Airlines are going to almost immediately start charging for pre-booking of seats as they had started doing so about three years backed and were stopped by the Directorate General of Civil Aviation (DGCA) in early 2012. They had then petitioned the DGCA to be allowed to resume charges for this facility. After keeping the global example in mind, the regulator is learnt to have permitted this charge."Our application for resuming pre-booking seat charges was lying with aviation authorities for years. When AirAsia's application for starting an airline here was cleared, we knew the move will get a push as foreign LCCs are famous for unbundling services and charging extra for everything. AirAsia on its international flights does not allow any free check-in baggage. Now the global LCC model will truly come to India," said an airline official, emphasizing that all carriers need to boost their ancillary revenues to keep base fares competitive.An aviation ministry statement said unbundling services and charging for them extra "has become a necessary aspect of exercising more control over operational costs and running a successful airline." The ministry has asked airlines to have fixed charge for services and not change them like airfares for different flights. The DGCA shall monitor the charges. Airlines will have to file details of services to be unbundled and their charges to the DGCA.
http://timesofindia.indiatimes.com/business/india-business/Air-travel-to-cost-more-as-airlines-freed-to-charge-extra-for-services/articleshow/19793961.cms
 

Green tribunal nod for Aranmula

Kochi: The southern bench of the National Green Tribunal in the city on Tuesday permitted the petitioner in the multi-crore KGS Aranmula International Airport case to withdraw the appeal following a request. The Chennai-based firm, KGS group, had planned to set up the airport in Aranmula, Pathanamthitta district.
Local residents and Aranmula Heritage Village Protection Action Council, Aranmula, had opposed the move and approached the southern bench of the Green Tribunal recently. They raised objections alleging that the construction work posed a threat to heritage sites, the holy river Pampa and agricultural land.
The proposed greenfield international airport was designed to handle 1,000 passengers at a time and cater to Airbus A-320 and Boeing 747-like aircraft. The airport, located near  Sabarimala, was expected to commence operation in 2014 and serve pilgrims and NRI passengers. On April 2, the judicial member of the tribunal, Justice M. Chockalingam, and expert member, Prof R. Nagendran, directed the management of the airport developed on 700 acres of land, to halt the work.On Tuesday, Justice Chockalingam said, “All respondents represented by their counsel were present. Advocate general of Kerala contended that the application was barred by limitation and jurisdiction and petitioner had suppressed the fact that a writ application on the same was pending before the Kerala High Court.”
However, the counsel for the petitioner prayed for the tribunal to give liberty to come back with a fresh application and permit to withdraw the application
“Tribunal gave permission to the application to withdraw their petition and accordingly the case was disposed as withdrawn,” the bench noted.
http://www.deccanchronicle.com/130501/news-current-affairs/article/green-tribunal-nod-aranmula