Saturday, 30 March 2013

Boeing, BEL expand partnership in India

US-based aerospace and defence major Boeing and defence PSU Bharat Electronics Limited (BEL) are expanding their partnership through a follow-on contract involving the manufacture of subassemblies for the Boeing F/A-18E/F Super Hornet fighter jet. This contract, for Super Hornet subassemblies, expands work that Boeing awarded BEL in 2011.
 BEL delivers components for the Super Hornet and P-8I maritime reconnaissance aircraft; and is a partner with Boeing at the Analysis & Experimentation Centre in Bangalore that opened in 2009. "Boeing's relationship with BEL demonstrates our commitment to work with the Indian industry to foster global growth and market access," said Dennis Swanson, vice president of International Business Development for Boeing Defense, Space & Security in India.
 Through the new contract, BEL will produce Super Hornet subassemblies including the ground power panel, 'helmet vehicle interface stowage' and 'switch assembly' and 'cockpit console panels'. For the F/A-18, BEL also produces a stowage panel for the 'joint helmet mounted cueing system' connector cable and an avionics cooling system fan test switch panel with a 'night vision imaging system'-compatible floodlight assembly.
 For the P-8I it provides the Identification Friend or Foe interrogators and Data Link II communications systems.
 "BEL believes this cooperation with Boeing is a great opportunity and is ever willing to take it to greater heights," said H.N. Ramakrishna, BEL's director of marketing.
 BEL is engaged in the design, development and manufacture of a wide range of command, control, communications, computing and Intelligence solutions; military communication systems; radars and sonars; as well as naval and electronic warfare systems for defence and security applications.
http://www.business-standard.com/article/companies/boeing-bel-expand-partnership-in-india-113032800514_1.html

 

Dreamliner Flaw Escaping FAA No Surprise in Crash Data

Failures to spot and anticipate safety flaws during certification of new aircraft have been linked to 70 percent of U.S. airline-crash deaths in the past 20 years, according to data compiled by Bloomberg.
Boeing Co. (BA)’s tests concluding the lithium-ion batteries in its 787 Dreamliner couldn’t catch fire are renewing questions about whether complexity of new aircraft can outpace manufacturers’ and regulators’ ability to spot shortcomings during design and certification.
 “We don’t know what we don’t know,” Bernard Loeb, who retired as head of the U.S. National Transportation Safety Board’s aviation division in 2001, said in an interview. “We’re still highly dependent on the knowledge and capability of the human being, and human beings are fallible.”
Improved certification standards have been one reason there hasn’t been a fatal U.S. crash involving a major airline since 2001, NTSB Chairman Debbie Hersman said in an interview.
“But there are occasions where those assumptions are incorrect or not conservative enough,” she said. Hersman declined to comment on the current investigation. In the absence of regulations for planes and components using new technology, the U.S. Federal Aviation Administration creates rules known as “special conditions,” as it did in certifying the Dreamliner’s batteries in 2007.
That approval, which the NTSB will examine at a hearing next month, illustrates the need to modernize standards for approving new aircraft, Kevin Hiatt, president of the Alexandria, Virginia-based non-profit Flight Safety Foundation, said in an interview.
Deadliest Crashes
The manufacturer is confident in its 787 battery fix proposal and expects the plane to resume flights soon, Boeing Chairman and Chief Executive Officer Jim McNerney said at a conference in Washington today.
Boeing plans to conduct a flight test with the revamped batteryBoeing shares fell 4.3 percent in two weeks after the Dreamliner was grounded, closing Jan. 29 at $73.65, the low for this year. They closed March 26 at $86.62, the highest since May 2008 and 17.6 percent above the recent low. At 1:20 p.m., shares were at $85.50, down 70 cents on the day.
The rise included increases of 2.1 percent on March 12, when Boeing’s plan to redesign the batteries was approved by the FAA, and March 15, the day the company said it expected the 787 back in the air within weeks.
The history of airline accidents since 1993 is dominated by cases in which manufacturers and aviation regulators didn’t foresee how a plane might fail, according to NTSB accident findings and its 2006 report on the issue.
Most Deadly
Five such U.S. crashes occurred in that period, according to NTSB findings, including the three most deadly of the era: USAir Flight 427 on Sept. 8, 1994, killing 132; Trans World Airlines Inc. (TWAIQ) Flight 800 on July 17, 1996, killing 230; and American Airlines Inc. (AMR1) Flight 587 on Nov. 12, 2001, killing 265 people.
Out of 1,123 deaths in the past 20 years on U.S. carriers investigated by the NTSB, 783 occurred in those five accidents, according to data compiled by Bloomberg.
Investigators in those cases discovered a hidden flaw in a hydraulic device that could send a plane plunging out of control, explosive fuel tanks that were exposed to sparking electrical equipment during routine operation, and vulnerability to icing in a plane approved to fly in weather conditions conducive to ice formation.
Rudder Malfunction
For almost two years after the crash near Pittsburgh of a Boeing 737-300 operated by USAir, now a part of US Airways Group Inc. (LCC), investigators couldn’t explain why a functioning plane dove nose-first into the ground.
Only then did they discover a hydraulic device that moved the plane’s rudder, a vertical panel on the tail, could swing it in the direction opposite from what pilots intended. In the accident, the rudder had moved unexpectedly, making the plane uncontrollable, the NTSB ruled in 1999.
The device was certified in the 1960s as failsafe.
“We’ve seen it time and time again,” Tom Haueter, who served as NTSB’s chief accident investigator before retiring last year, said in an interview. “Certification has been a big issue in a number of accidents.”
The FAA, which announced a review of the 787’s design on Jan. 11, “takes very seriously” its responsibility for overseeing new aircraft, the agency said in an e-mailed statement.
 “Some have asked the question whether the FAA has the expertise needed to oversee the Dreamliner’s cutting edge technology,” the agency said. “The answer is yes, we have the ability to establish rigorous safety standards and to make sure that aircraft meet them.” More recently, the NTSB blamed an April 2, 2011, crash of a General Dynamics Corp. (GD)’s Gulfstream business jet on miscalculations of takeoff speeds during certification flights. The crash killed four Gulfstream employees.
Airbus SAS last year was forced to make repairs that have cost $319 million (250 million euros) to its latest model, the double-decker A380, because the wings are prone to cracking, a condition missed during certification tests.
The FAA and aviation authorities in other nations can’t match the engineering resources at companies like Boeing and Airbus, Haueter said. U.S. regulators must rely on Boeing employees for much of the certification testing, he said.
‘Assumptions Kill’
Boeing’s engineers signed off on most elements of the Dreamliner battery made by Kyoto-based GS Yuasa Corp (6674)., leaving final approval to the agency, according to the NTSB. No matter how honest those engineers are, they’re subject to subtle conflicts of interest that could cloud their judgment, Haueter said.
“It’s the assumptions that kill you,” Haueter said. “If things don’t work out the way you planned, things can go very bad, very fast.”
Boeing’s tests and analysis of the 787 batteries, outlined March 7 in NTSB preliminary reports, concluded the odds of a battery catching fire were one in a billion hours of flight, making it essentially impossible.
The 787’s batteries are mostly used for ground operations, such as starting auxiliary power units and providing brake power when the plane is in tow.
A Japan Airlines (9201) 787’s battery caught fire Jan. 7 in Boston after the plane had been in commercial service less than 52,000 hours. An internal short-circuit triggered the fire, according to preliminary findings.
Boeing Confident
When a battery on an All Nippon (9202) flight in Japan overheated and smoked Jan. 16, the FAA grounded the plane. Customers of the 49 Dreamliner in service, including United Continental Holdings Inc., (UAL) Japan Airlines Co. and All Nippon Airways Co., were forced to juggle schedules and shift planes.
Boeing, which has a backlog of more than 800 Dreamliners with a list price starting at about $207 million, has halted deliveries until commercial service resumes.
The FAA gave initial approval for Boeing’s proposed redesign of the battery system March 12, and the Chicago-based company has said it’s confident tests needed to get the plane back in the air will be completed within weeks.
So far, neither the NTSB nor the FAA has said whether the batteries failed the nine safety conditions imposed on them in 2007.
Among the conditions was an assurance that the batteries must never have “self-sustaining, uncontrolled increases in temperature or pressure.” The battery in Boston had “thermal runaway,” a condition in which a cell increasingly overheats, and that spread to other cells, Hersman said Jan. 24.
Improving Safety
Boeing’s 787 chief project engineer, Mike Sinnett, said March 14 that damage outside the batteries in both incidents was limited and “the airplane responded exactly as we had designed and intended.”
Boeing declined to discuss the battery’s certification because it’s part of the NTSB review, spokesman Miles Kotay said in an e-mail. Certification works well, as evidenced by the lack of airline accidents in the past decade, he said.
The aircraft industry and the FAA have learned from earlier accidents, helping each generation of planes to be safer than the last, said John Cox, a former pilot who participated in the Pittsburgh accident investigation as a union representative. In response to NTSB recommendations and its own internal review of certification, the FAA made numerous improvements, such as focusing resources in certification on “safety critical” systems, it said in correspondence with the safety board.
http://www.bloomberg.com/news/2013-03-28/dreamliner-flaw-escaping-faa-no-surprise-in-certification.html

Jet Airways’ expansion plans in Europe put on hold till Etihad deal

MUMBAI: Jet Airways, which is in talks for a strategic-cum-equity partnership with Abu Dhabi-based Etihad Airways, has put on hold its plan to expand its network in Europe through Munich airport, till its deal fructifies with the Middle-eastern carrier. In the recent winter schedule (from October 28), India's secondlargest airline in terms of market share was granted permission from the ministry of civil aviation to start 35 new flights to Munich. To facilitate its expansion of routes into European cities, Jet was in talks with German carrier Lufthansa for membership in Star Alliance — one of the largest global airline grouping — along with a hub at Munich airport.
 The changed scenario, after the ministry approved foreign carriers to invest in Indian airline firms, has now forced Jet to change its stance. It has adopted a 'go slow' approach in actively pursuing Star Alliance membership and also is in the process of reworking its European expansion plans.
 Jet confirmed that it has put on hold its plans to expand in Munich till such time as the deal with Etihad is in the works.
 "It's correct that we have put on hold our expansion in Munich. But our overall expansion in Europe is not on hold till the deal with Etihad is finalised. We are still finalising our expansion plans in Europe and cannot discuss them at this stage," said Jet Airways CEO Nikos Kardassis.
 "Jet's move is in line with continuous string of positive news coming out of the ongoing discussions between Jet and Etihad. If the deal goes through, there will be a significant reworking of Jet's and Etihad's routes catering to the Indian traffic. Brussels' and Munich's loss will be Abu Dhabi's gain," says Amber Dubey, partner and head, aviation at KPMG.
 Jet has sought additional flights to Abu Dhabi and other South East Asian cities from the ministry for the summer schedule that commences from March and in a changed rule the ministry now grants flying rights for three schedules in advance. Officials from Munich Airport that were in India last fortnight to discuss with Indian carriers plans to fly into Germany said they await Jet's response on the commencement of flights.
 Confirming this, Christina Werkstetter, director, traffic development business division aviation, Munich Airport, told ET: "Currently, the move is put on hold by Jet. We are in discussions, but in the wake of new developments (deal with Etihad) we will have to see how things unfold. We are watching the deal very closely and we have to be patient."
"We could not manage to attract Air India," rued Werkstetter adding that India is a strong market and they are trying to attract Indian carriers to add more flights to Germany. But the German airport official did not rule out an alliance even if Jet takes on board Etihad as a partner.
http://articles.economictimes.indiatimes.com/2013-03-29/news/38125670_1_etihad-airways-jet-and-etihad-jet-airways
 

Air India likely to charge for meals

New Delhi: If you are travelling on economy class in a domestic flight on national carrier Air India, chances are that you may soon no longer be served a full meal within the ticket price but only snacks instead. If you want a full meal, you may have to pay extra. This is one of the recommendations of a government-appointed committee on cost-cutting for Air India that submitted its report to civil aviation minister Ajit Singh on Thursday.
The government is yet to take a final decision.
But if such a move goes through, it will position Air India somewhere between a low-cost carrier and a full-service carrier, sources said, adding that ticket-fares offered by Air India are often lower than even the low cost carriers which charge passengers on board for food. The Centre is expected to discuss each recommendation before a final decision is taken.
Another recommendation is to ask passengers to pay for preferential seats with more leg-room in the economy class. The committee has also proposed that the levy for upgradation of seats on flights be well-publicised to generate more revenue.
Even standardising the levy on passengers for excess baggage is on cards. While passengers have to pay for excess baggage even now, the extra amount to be paid differs as per the destination.
The committee has sub mitted 46 recommendations in all, which it estimates will help Air India to save about Rs 3,240 crore per year. It has also been recommended that a technical efficiency audit for manpower rationalisation be conducted.
Sources said that this may not result in job-cuts but could rather lead to relocation of staff from one department to the other.
Another recommendation of the panel is to offload some of the routes of Air India to its low-cost carrier Air India Express which can then operate smaller aircraft on these routes on the low-cost carrier model.
http://www.deccanchronicle.com/130329/news-businesstech/article/air-india-likely-charge-meals
 

American Airlines-US Airways merger gets court approval

A judge on Wednesday approved the merger of American Airlines and US Airways.
US bankruptcy judge Sean Lane in Manhattan said the merger was a “terrific result.” The $11-billion mega deal will form the world’s largest carrier and operate under the American Airlines brand. The shareholders of American Airlines, which has been under bankruptcy protection, will own 72 per cent in the joint company, while US Airways will hold 28 per cent.Judge Lane rejected a $20-million severancedeal for American Airlines chief executive Tom Horton. The US government’s bankruptcy watchdog, the US Trustee, opposed the payout calling it a “golden parachute.” The new airline will operate 1,500 aircraft, with 600 more on order, and have an annual turnover of almost $39 billion.
It will offer more than 6,700 daily flights to 336 destinations in 56 countries and maintain all hubs now served by either carrier, while being a member of the Oneworld alliance.
“The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,” said Doug Parker, the outgoing chief executive of US Airways, in February when the deal was announced.
American Airlines parent company AMR Corp declared bankruptcy in November 2011, and has kept operating under Chapter 11 bankruptcy protection from creditors while it reorganised its debt.
US Airways had been searching for a partner since early 2012, after many rivals merged to lower costs through sharing maintenance personnel and booking systems, among other measures.
The airline industry has seen a spate of mergers since the 9/11 attacks of 2001 battered the sector and carriers were also hit by fluctuating fuel prices and the rise of budget airlines.
In 2012, Delta Air Lines swallowed the smaller Northwest Airlines, while United Airlines joined forces with Continental.
http://www.thehindubusinessline.com/industry-and-economy/logistics/american-airlinesus-airways-merger-gets-court-approval/article4557375.ece

Kolkata airport Metro on slow track; final plan yet to be ready

Construction of the airport leg of the Kolkata Metro rail project is yet to begin due to the non-availability of clearances and bureaucratic hurdles.
 While a revised underground route plan on the stretch (7 km) was approved after much dilly-dallying by the Airports Authority of India (AAI) last year, a final plan for construction is yet to be chalked out.
The 32-km Metro line will run along the eastern fringes of the city to connect the airport via Salt Lake, the IT city.
 To be operated by Metro Railway, Kolkata – a wing of Indian Railways – the Rs 4,260-crore project was sanctioned in 2010-11, and the 25-km elevated stretch of the line is under construction.
“Some areas of the AAI are yet to be handed over to the Metro Railway authorities to start work. A plan of work has not been finalised so far in this regard,” a Railway official involved in the project told Business Line. According to him, these formalities may take more time, leading to a further delay . A survey for the underground work near the airport is yet to be conducted, he added.
 Commenting on the Budget allocation for the five Metro extension projects this fiscal (Rs 629 crore) that are being carried out in Kolkata, the official said the airport Metro project does not face any fund constraints. “Issues over Budgetary allocation and available funds for these projects are blown out of proportion. Once construction begins, lack of fund is unlikely to hinder the project,” he said.
 Meanwhile, another 17-km Metro project, connecting the Central Business District with Joka (near IIM Calcutta), is awaiting approval from the Union Finance and Defence Ministries.
According to the Railway official, even if the Rs 2,619-crore project witnesses good progress on the first leg from Joka, the Union Government’s reluctance towards the project is putting it on a slow track
http://www.thehindubusinessline.com/industry-and-economy/logistics/kolkata-airport-metro-on-slow-track-final-plan-yet-to-be-ready/article4558785.ece

AI explores Boeing 777 seat reconfiguration

As part of its reconfiguration exercise, Air India is evaluating a plan to drop first-class seats in its long-haul Boeing 777 planes. The airline flies these wide-body planes to the US, Europe, China, Japan, Korea and Saudi Arabia.
 It has 12 Boeing 777-300 ERs and eight 777-200 LRs. For some time, the airline has been trying to sell or lease five of the latter model of aircraft but has found no takers. This is because the aircraft’s current seat configuration is not ideal for medium-haul routes and makes those commercially unviable to operate.
 Air India’s Boeing 777-200 LRs have 238 seats, including eight first-class ones (8+35+195), while the 300-ERs have 342 seats, four of those first-class (4+35+303).
 Another reason for the airline to consider reconfiguration is the poor first-class occupancy.
 “The occupancy in the first-class seats is 25-30 per cent — often after including ministers travelling in those and passenger upgrades, which generate no revenue for the airline. The idea is to drop first-class seats and add economy-class ones. We can then deploy these planes on high-density routes like those to Saudi Arabia which have good demand,” an Air India source said.
 The airline continues to make losses on a majority of its international routes. Overall, it expects to post a modest operating profit of Rs 65 crore in 2012-13, banking on the Boeing 787 Dreamliners for its turnaround. The 787s, which have been grounded since January following battery defects, are to replace the 777s on its Europe and Far-East routes. These will also be used on the new routes like Sydney and Melbourne. Air India currently has six Boeing 787s and has 27 on order.
 The airline had been flying the 787s to Paris and Frankfurt but with these planes grounded, it had to redeploy the 777s on these routes. The carrier’s officials maintain various options with regard to Boeing 777s, including seat reconfiguration, are being explored.
 “Our first option is to sell these planes,” an official said. Another said the airline was yet to firm up its decision and was evaluating options.
 An airline needs to carry out technical analysis before reconfiguring seats and the aircraft requires certification from regulatory authorities, including the Directorate General of Civil Aviation and the Federal Aviation Administration.
 Rival Jet Airways, too, is reconfiguring its Boeing 777-300 ERs, adding more seats in economy section. However, the airline is not removing first-class or business seats in that plane. Jet flies its Boeing 777s to London and has eight first-class seats in each plane. The economy section in Jet’s 777s has nine seats in a row; it is adding an extra seat in each row.
http://www.business-standard.com/article/companies/ai-explores-boeing-777-seat-reconfiguration-113032600387_1.html
 

DGCA deregisters 15 Kingfisher aircraft

Aviation regulator, DGCA (Director General Civil Aviation) today said it has deregistered 15 aircraft of Kingfisher Airlines to enable global leasing companies to take them back on grounds of default on their lease rentals by the grounded carrier.
 This was announced here by the Director General Civil Aviation, Arun Mishra, who said he would soon discuss the issues concerning Kingfisher’s dues to tax authorities, airport operators and other vendors.
 The airport operators, particularly the Airports Authority of India, had seized several aircraft of the liqour baron Vijay Mallya-owned carrier and decided not to release them till Kingfisher clears their dues.
 However, some leasing companies including German aviation bank DVB moved the Delhi High Court which ordered that the lessors had a right over these aircraft.
 Following the decision, aircraft lessor International Lease Finance Corp said it had successfully removed one of six Kingfisher aircraft — an Airbus A-321, stranded in India.
 A demand for deregistration of two more Kingfisher planes was made by DVB at a meeting with aviation regulator DGCA here yesterday.
 The two planes had been sent to Turkey for repairs and maintenance where DVB seized them.
 However, unless the planes were deregistered in the lessor country, the German Bank cannot reclaim them and lease or sell them to other carriers.
 Kingfisher has ten planes of its own and another 15 leased ones which are yet to be deregistered, AAI Chairman V P Aggarwal said on the sidelines of a CII function on aviation.The dispute over Kingfisher’s leased planes is seen as a major test of the Cape Town convention, a global treaty to standardise transactions involving moveable property like aircraft, including contracts of sale and leases.
 It provides legal remedies for default in financing agreements, including repossession and the effect of bankruptcy laws.
http://www.thehindubusinessline.com/industry-and-economy/logistics/dgca-deregisters-15-kingfisher-aircraft/article4551067.ece

Dreamliner may face ban on long-haul flights

As Boeing works to regain permission for its 787 Dreamliner to resume flights, the company faces what could be a costly new challenge: a temporary ban on some of the long-distance, trans-ocean journeys that the jet was intended to fly.
 Aviation experts and government officials say the Federal Aviation Administration may shorten the permitted flying time of the 787 on certain routes when it approves a revamped battery system. The plane was grounded worldwide two months ago after lithium-ion batteries overheated on two separate aircraft.
 Losing extended operations, or ETOPS, would deal a blow to Boeing and its airline customers by limiting use of the fuel-saving jet, designed to lower costs on long-distance routes that don't require the capacity of the larger Boeing 777. Such a loss could even lead to cancellation of some routes.
 "If the FAA approves (only) over-land operations it would be a very damaging blow to the 787 program," said Scott Hamilton, an aviation analyst with Leeham in Seattle.
"Depending on how long that restriction remains in place, it would completely undermine the business case for the airplane, which was to be able to do these long, thin intercontinental routes" over water, he said.
 Grounding the 787 already has cost Boeing an estimated $US450 million in lost income and compensation payments to airlines. Further restrictions on the 787's range could send the airlines' claims - and Boeing's costs - higher.
 Until it was grounded on January 16, the 787 was permitted to fly routes that ranged as much as three hours away from an airport. Boeing has asked the FAA to extend that range to 5-1/2 hours. That change would enable airlines to fly many more routes across remote areas such as the North Pole.Now the jet faces the potential temporary loss of its ETOPS approval or a roll-back to two hours, according to government officials and aviation experts.
 "It is completely within expectations for FAA to limit ETOPS for the 787," one regulatory source in Japan said. He said that reducing the range to two hours would force Japanese airlines to fly more circuitous routes, burning up more fuel and cutting efficiency.
 A former senior US government official said there was "a distinct possibility" that Boeing could win the battle over FAA flight certification for the battery only to lose permission for extended operations - at least temporarily.
 An FAA spokesperson said it was too early to discuss ETOPS approval since Boeing's battery fix was still being tested.
 "It's really premature to talk about what ETOPS certification we would give them right now," said the spokesperson. "We'll be in a better position to answer questions like that after we get through all this battery testing."
 Boeing referred questions to the FAA. During a recent news conference in Japan, Boeing executives said there had not been any conversations with regulators about extended range operations. They said the proposed certification plan did not foresee further limitations once the plane was allowed to resume flight operations.
 The issue is heating up as Boeing nears the end of testing the new battery system, designed to prevent the meltdowns that occurred in January. Boeing executives say the FAA could approve the new battery system within weeks. The first flight test of the system took place Monday, and a second, final test flight is expected in coming days, Boeing spokesman Marc Birtel said.
 Analysts and industry executives say any decision to limit the flying time of the new aircraft would have serious consequences.
 The change would not rule out all international routes, but some specific routes, such as Japan Airlines' Tokyo-to-Boston flight, might have to be canceled, said the Japanese regulatory source.
 The 787's biggest customers so far include All Nippon Airways and Japan Airlines, which fly extended routes to the United States and Europe, and Qatar Airways. In the US, United Airlines is the only carrier to have taken delivery of 787s. The airlines declined requests for comment on how loss of ETOPS could affect operations.
 A step-by-step return to full, extended flight would give regulators more time to study the effectiveness of Boeing's battery fix, and could help the Obama administration prove that it was making good on Transportation Secretary Ray LaHood's promise to ensure the plane was "1000-per cent" safe, some experts said.
 It would also address concerns voiced by Japanese aviation regulatory authorities in recent weeks.
 Nor is it without precedent. Until the late 1980s, the FAA required airlines to fly a certain number of hours over land before it approved extended-range operations over water or remote areas. It started granting permission for those flights in tandem with flight certification when engine safety improved.
 But the highly electrical nature of the 787 has raised new questions, said another former U.S. official, noting that the importance of the lithium-ion batteries for the plane's operation made it a bigger risk factor than past batteries.
 "In the past, if you lost a battery, or a battery malfunctioned, it wasn't that big of a deal," said that former US official.
 "But if Boeing's battery is needed to start the engine - and that battery is susceptible to fire - isn't that a turn back condition? Isn't that something you have to go land at an airport to address? That's the question."
: http://www.canberratimes.com.au/travel/travel-news/dreamliner-may-face-ban-on-longhaul-flights-20130328-2gw0m.html#ixzz2Oo8xrcMa

IATA for government, industry joint efforts to boost aviation

The International Air Transport Association (IATA) on Tuesday urged government and industry to join hands on a series of projects to enhance safety, security and efficiency in India.
Making these observations in his inaugural address at the India Aviation Day,  IATA director general Tony Tyler said, “I propose a series of projects to enhance the safety, security and efficiency of Indian aviation. The interests of government and industry are aligned.”
The international aviation regulator said once the government joins hands with the industry, it would help align the long standing demands of IATA including improved infrastructure, cost reduction and a relief from excessive taxation.
“Aviation and aviation-related tourism drives 1.5% of India’s GDP and supports jobs for 1.8% of the workforce. A stronger aviation sector will be a catalyst for even wider economic benefits,” Tyler said.
The event was organised jointly by the GMR Group and the Confederation of Indian Industry (CII).
“This is my third major speech on Indian aviation issues in under a year.  I have not spoken this much in or about any other single country in my time at IATA.  The reason is two-fold.  The first is that India is the great potential market of the future, and the industry here has only just begun to realize its enormous promise.  The second is that if we are to realize that future, we must successfully overcome some major issues,” said Tyler.
While lauding the proposed setting up of Civil Aviation Authority (CAA), Tyler said “The establishment of CAA will be a step in the right direction. But we must recognize that there is some way to go in terms of capacity building and skills set development.  The industry can help.”
Speaking on this occasion Civil Aviation Minister Ajit Singh said the government through a series of policy measures in the recent past is making an all round effort to bring the Indian aviation sector on par with international standards.
He said permitting 49 per cent Foreign Direct Investment  (FDI) by foreign airline in domestic carriers or allowing direct import of aviation turbine fuel by airline companies and enhanced traffic rights allocated to Indian carriers especially in Gulf countries coupled with  privatisation of airports will help Indian aviation sector grow rapidly
http://newindianexpress.com/business/news/article1518739.ece

 

FIPB clears AirAsia, Tata joint venture plan

 The Foreign Investment and Promotion Board (FIPB) on Tuesday approved AirAsia’s plans to enter Indian skies, according to a Finance Ministry statement.
The Malaysian budget carrier has plans of starting a new passenger airline in partnership with Tata Sons and Arun Bhatia’s Telestra Tradeplace Pvt Ltd.
Malaysia’s largest budget carrier had proposed to induct Rs 80.98 crore to start the airline that would have a 49:30:21 joint venture with the Tata Group company and Telestra Tradeplace.
Union Civil Aviation Minister Ajit Singh said that AirAsia hasn’t yet approached the ministry. “No, they have not submitted any application as yet. There are some concerns, some procedural issues with regard to the proposed airline. We will look into it quickly. But all that will depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of aircraft. Any clearance will depend on how fast they give all this information which will be required by DGCA to grant them a flying permit,” Singh said.
AirAsia CEO Tony Fernandes took to micro-blogging site, Twitter to express his elation. “All the hard work and consistent focus is paying off. A consistent strategy and well thought out plan is coming together,” Fernandes tweeted on Tuesday.
He had said on Monday that hiring will commence soon for the India operations. “We’re hiring soon... India here we come,” Fernandes added.
AirAsia is the first foreign airline to take advantage of the easing of Foreign Direct Investment (FDI) norms in aviation in September last year. The government has permitted foreign airlines to have 49 per cent FDI in an Indian carrier. AirAsia will be headquartered in Chennai and will initially be operating in south India.
http://newindianexpress.com/business/news/article1518736.ece

DGCA deregisters 15 Kingfisher aircraft

Aviation regulator, DGCA (Director General Civil Aviation) today said it has deregistered 15 aircraft of Kingfisher Airlines to enable global leasing companies to take them back on grounds of default on their lease rentals by the grounded carrier.
 This was announced here by the Director General Civil Aviation, Arun Mishra, who said he would soon discuss the issues concerning Kingfisher’s dues to tax authorities, airport operators and other vendors.
 The airport operators, particularly the Airports Authority of India, had seized several aircraft of the liqour baron Vijay Mallya-owned carrier and decided not to release them till Kingfisher clears their dues.
 However, some leasing companies including German aviation bank DVB moved the Delhi High Court which ordered that the lessors had a right over these aircraft.
 Following the decision, aircraft lessor International Lease Finance Corp said it had successfully removed one of six Kingfisher aircraft — an Airbus A-321, stranded in India.
 A demand for deregistration of two more Kingfisher planes was made by DVB at a meeting with aviation regulator DGCA here yesterday.
 The two planes had been sent to Turkey for repairs and maintenance where DVB seized them.
 However, unless the planes were deregistered in the lessor country, the German Bank cannot reclaim them and lease or sell them to other carriers.
 Kingfisher has ten planes of its own and another 15 leased ones which are yet to be deregistered, AAI Chairman V P Aggarwal said on the sidelines of a CII function on aviation.The dispute over Kingfisher’s leased planes is seen as a major test of the Cape Town convention, a global treaty to standardise transactions involving moveable property like aircraft, including contracts of sale and leases.
It provides legal remedies for default in financing agreements, including repossession and the effect of bankruptcy laws.
http://www.thehindubusinessline.com/industry-and-economy/logistics/dgca-deregisters-15-kingfisher-aircraft/article4551067.ece
 

Time for India to have national aviation policy, says IATA chief

India should formulate a national aviation policy to facilitate growth in the sector, said Tony Tyler, Director-General of the International Air Transport Association (IATA) here on Tuesday.
“The call is not for special favours or preferential treatment,” Tyler said at the inaugural Aviation Day India meet. The IATA head was of the view that the agenda to improve infrastructure, reduce costs and evolve a more reasonable taxation structure was absolutely critical to India’s long-term success.
Pointing out that security was a top priority not only of Governments but also airlines, the IATA chief was of the opinion that the current “one-size-fits all” prospective approach to security for both cargo and passengers is not sustainable. “We need an approach that focuses on outcomes and not process. And we should make the best use of scarce resources by taking a risk-based approach — recognising that the vast majority of cargo and passengers pose absolutely no threat to aviation or national security,” Tyler said.
The IATA DG also proposed to urgently combine forces to modernise cargo processes. “In 2008, we collectively said goodbye to paper tickets. By 2015, we are trying to do the same with cargo with 100 per cent conversion to e-air way bills — an important step in the overall e-freight vision. It is incredible that in the Internet age, 50 million tonnes of air cargo shipment still rely largely on paper-based processes,” Tyler said.
He pointed out that though the customs department in India had agreed in principle to create a paperless environment, the “progress is too slow. To be blunt, we need a show of political will to kick-start the process.”
http://www.thehindubusinessline.com/industry-and-economy/logistics/time-for-india-to-have-national-aviation-policy-says-iata-chief/article4551494.ece

Jet fuel: AAI plans joint ventures with airlines, oil firms

The Airports Authority of India (AAI) proposes to set up joint ventures with public and private sector oil companies and airlines to meet jet fuel requirements in remote parts of the country, its Chairman V. P. Agrawal said on Tuesday.
 AAI will hold a 13 per cent stake in the joint ventures with other companies being free to decide on how much stake they would like to hold, the AAI Chairman said. The idea was discussed in the presence of Secretary, Petroleum, and various oil companies, including Reliance. Agrawal was speaking on the sidelines of the Aviation Day India meet here on Tuesday.
 “Take Kangra (Himachal Pradesh), it does not have a fuelling facility. Somebody flying, say, from Delhi, has to carry the fuel from the national capital to be able to come back. This unnecessarily disturbs the economics. The other objective is that less space is occupied by oil companies, otherwise everybody duplicates. We will create sufficient capacity so that everybody puts their oil in it,” he said.
 AAI will write to the airlines to participate in the proposed joint ventures and it is for the airlines to be part of these or not, Agarwal said.
Agrawal said there were plans to commission a study on the impact of the Chennai airport on the gross domestic product of the city and the State. The Delhi Airport had got such a survey done that showed that Delhi airport contributed over Rs 20,000 crore to the city.
http://www.thehindubusinessline.com/industry-and-economy/logistics/jet-fuel-aai-plans-joint-ventures-with-airlines-oil-firms/article4551493.ece
 

India's Jet Air wet leases A330 to Etihad

India’s Jet Airways has wet leased one of its Airbus A330-200 aircraft to the UAE’s Etihad Airways, it was reported, as the two continue discussions over an equity stake sale.
 In a text message sent to India’s Economic Times, Jet CEO Nikos Kardassis said that the wide body aircraft and 60 cabin crew would be leased to the Abu Dhabi-based carrier. The cabin crew will undergo three months of training in Mumbai beforehand.
 "We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis said in an SMS.
 In a wet lease agreement, one carrier provides the aircraft, crew and maintenance for an agreed period, while the other takes on the responsibility for supplying and operating the craft. In this case, neither party provided details on how long the lease would last.
 Jet currently operates a fleet of more than 100 aircraft, including 11 Airbus A330-200, which are deployed on long haul routes. Etihad currently has 16 of the planes, whose list price is about US$200m, with a further two on order
http://www.arabiansupplychain.com/article-8564-indias-jet-air-wet-leases-a330-to-etihad/

FIPB clears AirAsia proposal, but Aviation Ministry seeks clarity

Serious differences have cropped up between the Finance Ministry-headed Foreign Investment Promotion Board and the Ministry of Civil Aviation on the decision to give the nod to a three-way joint venture between the Malaysia-based AirAsia, Tata Sons and Telestra Trading to set up a domestic airline in India.
Twenty days after the proposal was taken up by the inter-ministerial Foreign Investment Promotion Board (FIPB), the Finance Ministry issued a press release saying that the proposal was one of the six foreign investment proposals that had been approved.
The new airline’s proposal involves a foreign direct investment inflow of about Rs 81 crore.
However, speaking to newspersons Minister for Civil Aviation Ajit Singh said that there were still procedural problems facing the AirAsia proposal. The Minister did not give any specifics but said that his Ministry will support the proposal.
Senior officials of the Civil Aviation Ministry claimed that they were yet to receive clarifications on the category under which the proposal was cleared.
The root of the problem is the difference in the interpretation of rule 3.2.1. of the guidelines for foreign direct investment in the civil aviation sector which states “foreign airlines are also, henceforth allowed to invest, in the capital of Indian companies operating scheduled and non-scheduled air transport services, up to the limit of 49 per cent.”
The Ministry of Civil Aviation is interpreting operating to mean an existing airline, a point which is disputed by the FIPB. Incidentally, this was also a point that was raised by the Ministry of Civil Aviation when AirAsia’s proposal was first taken up by FIPB on March 6.
“Allowing FDI only in existing airlines is a flawed policy. It should also be allowed in start-ups which also need to be well capitalised with strategic partners. It will be good if the Department of Industrial Promotion and Policy issues clarifications to put this matter to rest,” Kapil Kaul, Chief Executive Officer, Centre for Asia Pacific Aviation said.
AirAsia will now have to wait for a formal letter from FIPB after which it will approach the Domestic Transport Department in the Ministry of Civil Aviation which will check if the proposal meets sectoral guidelines. Before starting operations the airline will also have to get clearances for import of aircraft and get its operating manual from the Directorate General of Civil Aviation.
According to its promoter Tony Fernandes, AirAsia plans to start operations from the fourth quarter this year.
http://www.thehindubusinessline.com/industry-and-economy/economy/fipb-clears-airasia-proposal-but-aviation-ministry-seeks-clarity/article4551545.ece

AirAsia, Tata JV closer to take-off

Malaysian budget carrier, AirAsia’s joint venture with the Tatas and Telstra group for a domestic airline moved another step closer to take-off following approval from the government on Tuesday. AirAsia’s proposal, cleared by the Foreign Investment Promotion Board (FIPB) on March 6, was given a formal go-ahead on Tuesday, according to an official statement issued by the Finance Ministry which put the investment at Rs.80.89 crore.
 The venture will now need operational clearances such as the Air Operator’s Permit from the Director General of Civil Aviation (DGCA). Talking to journalists here, Civil Aviation Minister Ajit Singh said the AirAsia JV had not yet submitted any application to the Aviation Ministry. “There were some concerns and procedural issues with regard to the proposed airline. We will look into it quickly. But all that will depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of aircraft. Any clearance will depend on how fast they give all this information, which will be required by the Director General of Civil Aviation (DGCA),” he said.
Signalling the progress of approvals, AirAsia’s CEO, Tony Fernandes, tweeted: “We’re hiring soon… India here we come” and in another tweet said: “Look out for dates soon at this space.” The stock market greeted the government approval to AirAsia by marking down the price of competing airlines such as Jet Airways and SpiceJet. The latter’s stock price fell by 4 per cent as the market seemed to think that it will be hit the most by AirAsia’s Chennai base.
 Following the opening up of the aviation sector to foreign direct investment (FDI) last September , AirAsia had formed a joint venture with Tata Sons and Arun Bhatia of Telestra Tradeplace to launch a new airline in India.
 AirAsia Group CEO Tony Fernandes had recently said the new airline would be based out of Chennai and, in the initial phase, would concentrate on destinations in South India and would also focus on providing connectivity to small towns.
 http://www.thehindu.com/business/Industry/fipb-clears-airasias-proposal-to-start-a-passenger-airline-with-tata-group/article4550878.ece

Airline shares fall on AirAsia entry concerns

Shares in Jet Airways India fall nearly 3 percent and SpiceJet Ltd shares drop 3.4 percent after India's Foreign Investment Promotion Board (FIPB) approves AirAsia Bhd's proposal to set up a joint venture in India, raising concerns about increased competition.
Shares also fall after Airports Authority of India says it will form a joint venture with local airlines and oil companies to supply jet fuel, expecting to reduce airlines' fuel costs by at least 10 percent.
http://smartinvestor.business-standard.com/market/Marketnews-167414-Marketnewsdet-Airline_shares_fall_on_AirAsia_entry_concerns.htm

Meanwhile, DGCA allows lessors to take back KFA planes

Directorate General of Civil Aviation (DGCA) Arun Mishra today allowed lessors to take back 15 de-registered Kingfisher planes. Another three de-registered planes belonging to Los Angeles-based International Lease Finance Corporation (ILFC) cannot be taken back as litigation is on, said Mishra. The litigation over these three planes is on because Kingfisher had partly financed the purchase of these planes.
 This decision comes after the DGCA’s meeting with Airports Authority of India (AAI) and the civil aviation ministry.
 Mishra said, “We would meet tax officials and airport operators on Tuesday to discuss issues related to other planes leased by Kingfisher, whose aircraft have been grounded for months by a cash crunch. However, the lessors will need to pay parking fee for aircraft from day of de-registration. Nearly 25 Kingfisher planes are not yet claimed by lessors.”
Airport operators, including AAI, had held back Kingfisher planes owing to non-payment of dues. However, India, being a signatory to Cape Town convention, has to comply with that. According to this convention, in case of a default, lessors will have the first right to claim back the plane.
 International Lease Finance said on Monday it had removed one of six aircraft stranded in India by the dispute over the suspension of operations at Kingfisher Airlines.
 Kingfisher has 42 planes. Of those, 17 have been de-registered and none of the lessors has claimed the rest.
 Financiers have warned that failure to resolve the dispute between creditors over the grounded carrier's unpaid bills could starve India of funds needed to develop its aviation industry.
 Kingfisher, controlled by liquor baron Vijay Mallya, has been halted due to a cash crunch. Lenders have been trying to recover $1.4 billion of loans in default, but disagreements over who should take precedence have left the jets stranded.
 The fate of Kingfisher's jets is seen as an important test of an international agreement known as the Cape Town convention, designed to make it more attractive for leasing companies to invest by duplicating US style repossession rights.
http://www.business-standard.com/article/companies/meanwhile-dgca-allows-lessors-to-take-back-kfa-planes-113032600082_1.html

Lufthansa considers how to beat low-cost rivals in India

Deutsche Lufthansa AG said it's looking at establishing a long-haul, low-cost venture to help sustain its market share on routes to Asia, as rival operators syphon more and more traffic through hubs in the Gulf.Lufthansa may form an intercontinental subsidiary similar to its Germanwings short-haul unit, Chief Financial Officer Simone Menne said at a briefing in New York. Other options include an alliance with a Middle Eastern or Asian airline.

Europe's second-largest carrier won't be able to keep pace with rivals such as Dubai-based Emirates and Etihad Airways PJSC of Abu Dhabi without a change in strategy, Menne said, adding that the Cologne-based company ended services to Hyderabad and Calcutta in India last year because the routes were uneconomic.
 "The threat from Gulf carriers, for us, is Southeast Asia and it's India," Menne said. "That is a concern for investors, and the answer is we look at all strategic options. That can be partnerships, it can be joint ventures, it can be our own platform or it can be a retreat from this market."
 Lufthansa is reviewing its strategy with Asia-Pacific passenger traffic poised to expand at a 6.7 percent annual rate through 2016, according to the International Air Transport Association -- half as fast again as forecast growth in Europe.
 The German company won't be able to exploit that market unless it changes course, Menne said.
 Gulf carriers are tapping Asia by utilizing the position of their home bases to build intercontinental transfer hubs where people can switch plane for flights to and from dozens of cities across India, China and countries such as Thailand and Malaysia.
 Lufthansa's European peers are already moving closer to Gulf carriers, with British Airways (IAG) recruiting Qatar Airways Ltd. for the Oneworld alliance and Etihad -- an investor in its chief domestic rival, Air Berlin Plc (AB1) -- in talks about an accord with Air France-KLM Group. (AF) Emirates, the biggest Middle Eastern airline, has said it isn't interested in joining an alliance.
 Lufthansa's Germanwings division is already being used as a vehicle to reduce the group's costs in Europe, with unprofitable short-haul flights that don't serve the Frankfurt or Munich hubs being transferred to the discount operation.
 Norwegian Plan
 Establishing a low-cost long-haul business would mirror plans at no-frills operator Norwegian Air Shuttle AS (NAS), which is poised to add flights to cities including Bangkok -- tapping the lower operating costs of Boeing Co. (BA) 787 jets it has on order.
 Air Berlin, Germany's second-biggest carrier, is also buying the Dreamliner model, while AirAsia X Sdn., the long-haul arm of Asia's top discount player, has ordered Airbus SAS (EAD) A330 planes with which it could resume European flights.
 Menne said that Lufthansa will place a further order for aircraft to serve intercontinental routes in September. The carrier said last month it was considering 787s and the new Airbus A350 to replace the European manufacturer's older A340s.
 Shares of Lufthansa, which has been discussing closer ties with Turkish Airlines since at least November, traded 0.2 percent higher at 15.77 euros as of 12:15 p.m. in Frankfurt, extending gains this year to 11 percent and valuing the company at 7.25 billion euros ($9.3 billion).
 "I don't know if I buy into the idea of a low-cost, long- haul venture," said Donal O'Neill, an analyst at Goodbody Stockbrokers with a "buy" rating on the stock. "The model hasn't been proven. If they could do expanded code-sharing or a joint venture with Turkish that would be the most viable way to go."
 Lufthansa and Turkish Airlines, as Turk Hava Yollari (THYAO) AO is known, are both members of the Star Alliance and partners in the Antalya-based low-cost operation SunExpress.
 "We are cooperating already because we have a joint venture together," Menne said. "We are in regular talks and we are regularly considering what cooperation could bring us in other areas, but that's it for the moment."
http://www.business-standard.com/article/companies/lufthansa-considers-how-to-beat-low-cost-rivals-in-india-113032700002_1.html
 

AirAsia-Tata JV clears first hurdle

The government on Tuesday said it had cleared Malaysian budget carrier AirAsia’s proposal to start a passenger airline in India in partnership with the Tata Group, with an investment of Rs 81 crore.     
 The proposal was cleared by the Foreign Investment Promotion Board (FIPB), the finance ministry said.    
 AirAsia recently said it would set up a 49:30:21 joint venture with the Tata Sons and Telestra Tradeplace of Indian investor Arun Bhatia to launch an Indian airline.
 Asked whether AirAsia and the Tatas had approached his ministry, Civil Aviation Minister Ajit Singh on Tuesday said: "No, they have not filed any application."    
 He added there were "some concerns ... Some procedural issues" with regard to the proposed airline.    
 "We will look into it quickly. But, all that would depend on how fast they provide us the information regarding safety, aircraft, pilots and airworthiness of the aircraft. Any clearance will depend on how fast they give all this information that would be required by the directorate general of civil aviation (DGCA) (to grant them a flying permit)," the minister said.    
 The FIPB clearance was granted in line with the policy which allowed up to 49 per cent foreign direct investment (FDI) by a foreign carrier in an Indian airline. AirAsia is the first foreign airline to set up a joint venture in the Indian passenger airline segment after liberalisation of the FDI policy in the sector last September.
 Following the FIPB clearance, the AirAsia joint venture would now have to approach the DGCA for further clearances and a scheduled air operator's permit.     
 AirAsia Group CEO Tony Fernandes recently said the new airline would be based in Chennai, and in the initial phase would concentrate on destinations in south India, and also on providing connectivity to small towns.
 Shares in Jet Airways India fell 3.6 per cent and SpiceJet shares dropped three per cent in Tuesday’s trade, on heightened concerns about increased competition.
http://www.business-standard.com/article/companies/airasia-tata-jv-clears-first-hurdle-113032600135_1.html

Tuesday, 26 March 2013

Aircraft acquisition rules relaxed

Civil Aviation Minister Ajit Singh has abolished the Aircraft Acquisition Committee, doing away with government control over acquisition of aircraft by scheduled and non-scheduled operators, private operators and flying training institutes.
In a statement issued here, the Ministry spokesman said that permission for actual induction of aircraft would no longer be required from the Ministry of Civil Aviation (MoCA). Henceforth, only an initial no objection certificate (NOC) for operating scheduled and non-scheduled air transport services, including regional air transport services, and an in-principle approval for acquisition of aircraft by scheduled operators would be required , as this is necessary under Rules 134 and 134A of the Aircraft Rules and the RBI guidelines.
At present, the Aviation Ministry’s approval is required for issuing an initial NOC in cases of scheduled airlines, non-scheduled airlines, flying institutes and private operators. Besides this, the Ministry’s approval is also required for acquisition of aircraft by scheduled and non-scheduled operators, flying training institutes, and private use. It is also required for replacement of aircraft.
After implementation of this decision, no approval from the Ministry will be required by anybody for actual import/replacement of aircraft, and all such cases will be dealt by the Director General of Civil Aviation for completion of necessary formalities. This is another step towards liberalisation of the civil aviation sector. This decision will reduce delays in seeking approval, and will help airlines to plan better for future induction of aircraft.
http://www.thehindu.com/business/Industry/aircraft-acquisition-rules-relaxed/article4534602.ece
 

Abu Dhabi based Etihad Airways inks wet lease pact with Jet Airways

MUMBAI: Jet Airways, India's second largest airline by market share, has leased a wide body aircraft along with 60 of its cabin crew to Abu Dhabi based Etihad Airways, a move that indicates a burgeoning partnership, even before the two airlines ink an equity stake sale.
In aviation parlance, a wet lease of an aircraft is an arrangement whereby the lessor, in this instance Jet, provides crew, maintenance and aircraft for a consideration. In turn the lessor takes on the responsibility for supplying and operating the aircraft.
The cabin crew will be trained by Etihad in Mumbai over the next three months. This is the second such collaborative agreement between the two carriers who are engaged in protracted discussions for over three months for an equity partnership and a strategic alliance. Jet had earlier announced a sale and lease back of Jet's Heathrow-London slots for $70 million in February to Etihad. Confirming this, Jet CEO Nikos Kardassis said the crew was surplus with Jet as it has withdrawn flights to its European hub in Brussels originating from Chennai.
"We enter into a wet lease agreement with Etihad for one A330-200. Since we stopped the Chennai-Brussels flight, we have excess qualified A330 cabin crew based in Chennai. We will use this crew for the wet lease operation with Etihad," Kardassis texted in response to ET's query over the issue.
Jet has a fleet of over 100 aircraft, including the 11 Airbus A330-200 type that it deploys on long haul international flights. Jet took delivery of a different series of this aircraft, the A330-300 in December last year and said it will induct another three soon to expand its Airbus wide body aircraft fleet. Jet deployed the 300 series aircraft on the Mumbai-Brussels route. The A330-300 will also replace two leased A330-200 type, the airline had said.
Aviation analysts see this move by Jet to wet lease aircraft to Etihad as the beginning of many more of such initiatives to be announced by the Naresh Goyal-promoted carrier as the deal between the two is seen as a more comprehensive strategic and collaborative alliance and not just an equity deal.
The airline has sought additional seats to Abu Dhabi for its summer schedule (some reports suggest 10,000 more seats) and according to the civil aviation minster Ajit Singh, the ministry is also considering a more comprehensive code-share request by Jet with Etihad. Some aviation analysts see the manpower supply from India to Middle Eastern countries as a crucial part of the tie-up between the Indian carrier and the fast expanding Etihad.
"The HR is critical part of this deal and we expect Etihad will increasingly depend on Jet to supply trained manpower for their expansion.
The wet leasing of the crew is the just the beginning. India provides low cost and trained manpower with ability to deliver higher productivity to the Middle East (ME) carriers and is vital component of their business model. Given the size of their (ME carriers) expansion, sourcing manpower from India/south Asia will increase significantly in the near term," said Kapil Kaul, CEO, South Asia, Centre for Asia-Pacific Aviation. He added that Jet has always very successfully managed to sub-lease their wide body aircraft as and when required. "Etihad will continue to provide strategic support to Jet," said Kaul.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/abu-dhabi-based-etihad-airways-inks-wet-lease-pact-with-jet-airways/articleshow/19208116.cms

 

Work on aviation university may begin by June

The foundation stone for the National Aviation University (NAU) slated to come up at Indira Gandhi Rashtriya Udayan Academy in Rae Bareli, Congress President Sonia Gandhi’s constituency, is likely to be laid by June and it is likely to start offering courses by July next year.
This emerged at a meeting held here on Monday, which was chaired by Minister for State for Civil Aviation K.C. Venugopal and attended by Member of Parliament Rahul Gandhi.
Steps are also on for finding some foreign universities with which the NAU can have tie-up, senior officials of the Ministry of Civil Aviation said.
The detailed project report for setting up the project is with the Planning Commission, officials of the Ministry of Civil Aviation said, and added that the Ministry was also hopeful of moving a Bill in the forthcoming session of Parliament for setting up of the University.
This university is expected to meet the growing needs for professionally trained manpower in the aviation sector.
http://www.thehindubusinessline.com/industry-and-economy/logistics/work-on-aviation-university-may-begin-by-june/article4547977.ece

Thai Airways looking for Kochi connection

KOCHI: Thai Airways International, the national flag carrier of Thailand, is looking into the possibility of connecting Kochi directly with Thailand, said PisanManawapat, Thai ambassador to India, on Monday. He will discuss this matter during his meeting with chief minister OommenChandy on Tuesday.
"I want to know whether it will be sustainable for Thai Airways to connect Kochi with Bangkok. Thai Airways' office in Bangalore had made some enquiries but they haven't received enough information from the state government - perhaps the private sector can convince the airline that a direct flight will be sustainable," Manawapat said during an interactive session of delegates from the Association of South East Asian Nations ( Asean), organized by the Confederation of the Indian Industry (CII).
 On the other hand, when Manawapat met Gujarat Chief Minister Narendra Modi in last May, the first question from Modi was whether Thai Airways could operate direct flights from Thailand to Ahmedabad. "All possible incentives within the power of the state were offered - even he offered a subsidy on the fuel costs for the first three years of operation," Manawapat said. However, he doesn't expect the Kerala government to offer a subsidy for fuels.
 "We want to know whether the Kerala government welcomes additional direct flights or not. Secondly, if they welcome it, what kind of support the government will give. I also want the state government to hold a road show to support Kerala Tourism in Thailand, because when you operate a direct flight, you need local Thai people to come to Kochi. At the moment, the public in Thailand doesn't know enough about Kochi or Kerala," Manawapat said.
 He will also be scouting for opportunities for Thai companies in the processed food sector. CP, a Thai multi-national with presence in Punjab, Karnataka and Maharashtra, is interested in the state market.
 Also, Thailand will explore the opportunities in infrastructure and tourism in Kerala. "I want to find out what is the plan for the state government on infrastructure. Are they building affordable houses for the poor, or are they building more airports, highways and metros? I want to find out how much support the government will offer to the Thai companies and this is going to be my learning mission," Manawapat said.
http://timesofindia.indiatimes.com/city/kochi/Thai-Airways-looking-for-Kochi-connection/articleshow/19200382.cms

Sunday, 24 March 2013

Travel without burning a hole in your pocket

You have just received the email from the HR department approving your annual leave. There is a sense of elation because that long-pending foreign holiday seems to be finally happening. But there are worries as well. How will you manage it within a budget when you know little about the country?
 A little bit of advance planning is all it requires. And with some good research, things will fall in place. (COST OF CARRYING FUNDS FOR TRAVEL ABROAD)
 Advance booking
 The easiest way to get tickets cheap is to book well in advance. If booking in bulk, you can negotiate with airlines and get tickets at cheaper rates, says Kishore Jaleel, executive director of Travelogics. Airlines block seats for cheaper rates and if you book in advance, you can negotiate. The booking system for these tickets might start as early as 9-10 months before the travel. So, if your plans are in place, it's better to book immediately.

Rashi Vidyasagar, a post-graduate student, who had been on a 20-day European tour in May last year, had booked her tickets five months before the trip to get good rates. "I had planned my trip well in advance. Though I got my visa just two days before my travel, my tickets were booked much ahead," she says. Another way to save on fares is to book an indirect flight rather than a direct one, says Karan Anand, head (relationships), Cox and Kings. For instance, a Delhi-Dubai-London return flight would work out cheaper by at least 15 per cent, compared to a direct Delhi-London-Delhi flight.
 Group travel
 One of the easiest ways to cut costs is to travel in groups. You can either book a package with a travel agency or organise your own group. The former will be slightly more expensive, but hassle-free. Organising your own group to travel (it could be people you know at work or your housing society or local sports club) will be more economical, provided someone is willing to take the responsibility.
 If you are more adventurous, backpacking is a good way to travel within a small budget. It is best suited if travelling alone. But be prepared to share a room with several other travellers in hostels and forgo the comforts of hotels.
 Local travel
 After reaching your destination, travelling within the country can also be expensive. It is possible to book these tickets in advance, too, says Monica Bhatija, a freelance journalist. For her European trip, she booked train tickets about three months in advance, and got them at about £12. Against this, booking tickets on the spot would have cost about £60. "Since cancellation is allowed up to three days prior to travel, you can cancel if you need to," she says. If you have time, you can also travel by the local trains, which are cheaper but could take more time than Eurorail.
 Vishal Suri, deputy chief operating officer (tour operating), Kuoni India, agrees that wisely choosing ground transportation could also help cut costs. "While travelling within the country, travellers can opt for rental cars, local taxis, bikes, shuttle or subway services, depending on the location," says Suri. For public transport, it is cheaper to buy a weekly pass, rather than the daily tickets, says Bhatija. For this, make sure to carry extra passport-sized photographs.
 Accommodation
 When it comes to stay, you can go through a wholesaler, who can help get rates at a discount because you will get these in bulk. Or, go through a tour operator. "You can get rates at 25-40 per cent cheaper if you book in bulk. But for this, you should be sure about the number of people travelling," says Jaleel. Most package group tours offer accommodation in three-star or four-star hotels.
 Another advantage of booking through a travel firm is that you may get add-ons such as complimentary meals and transfers, free travel for children and so on, says Madhav Pai, director, leisure travel (outbound), Thomas Cook (India).
 Anand of Cox & Kings says one option is to stay in a no-frills hotel in the suburbs, which would work out to be very reasonable, rather than staying in the central areas, which could be expensive.
 While looking for cheap airfares and hotel accommodation, you need to watch out for 100 per cent cancellation charges, says Anand of Cox and Kings. Sometimes, while offering discounts airlines and hotels might say that in case of cancellation, the entire amount may be forfeited. But if you book at the full fare, it is possible you may get full refund if you cancel 24-48 hours before check-in or departure.
 For those willing to give up the comforts of a hotel, hostels are a good option. These are much cheaper than hotel rooms and offer you the basic facilities in a clean environment. Those travelling alone can stay in dormitories or share a double room. You can even get private rooms in hostels if you travelling as a family.
 When Raja Menon, wife Anuradha and son Yannick went on a six-month trip to South America, they stayed in private rooms in hostels. These can work out about 50 per cent cheaper than hotel rooms. The rates range between $20 and $70 per bed per night, depending on the country. "The private rooms were comfortable and had attached bathrooms. Since we were out the whole day, it did not matter that the facilities were basic," says Menon.
 Menon and his family also used 'couch-surfing' a lot. Here, you can stay in people's homes for no charge. But you may return the favour by getting them a token gift or cooking them a meal. Vidyasagar says she 'couch-surfed' only if there were other girls. For the rest of her trip, she stayed in hostels. There are websites where you can register for couch-surfing. It is a trend is slowly catching on in India.
 Food
 Most of the hostels offer facilities to cook your own food, which is another way to save cost, says Menon. Eating at places where the locals eat can also help cut cost. One can also go to the local supermarkets and pick out readymade meals, which will include a sandwich, a drink and a packet of chips. This works out cheaper than eating meals at restaurants. Travellers can also opt for economical meals at fine restaurants during happy hours, says Suri.
 Sight-seeing
 It is better not to skip sight-seeing or visiting museums and monuments, since that is the whole purpose of a trip. In many places, entry for children up to 13 years is free. There are also some days in the week when tourists are allowed free or given discounts. You can keep track of these days through guidebooks or internet.
 Bhatija says, "The regular entry fee at many museums is $20-25. But once a week, entry is either free or you can pay what you like. If you keep track of these days, you can save a lot of money." However, Menon and family avoided these days as a rule, due to the crowds. "Such days are packed; so, we used to avoid visiting the museums and monuments on those days."
 It is possible to book the entry to these places online, too. Students get discounts here as well, adds Vidyasagar. Another expense that you might have to incur is for the guide, if you want one. Some tour packages include charges for a guide in their rates, while some might not. Check this before booking your package.
 Money and forex
 You need to convert a decent amount of money from your home country. You can do it while travelling as well, but that might not get you good rates, says Kotwani. "While you can take some amount in travellers' cheques, it is better to have some cash to pay for bus fares and water while travelling," she says. It is better to monitor the foreign exchange rates for a week prior to travel, says Anand. The best way is to purchase a part of the exchange in currency notes and the balance by way of foreign currency prepaid cards.
 Most banks offer these prepaid cards, which you can load with a pre-fixed amount and then swipe while travelling abroad. These are safer than using your own credit or debit cards.
 Suri says travellers often prefer to carry cash as it is simple and easy. However, carrying cash entails risk and, hence, it is better to opt for prepaid cards. These cards also hedge against fall in the exchange rate. This is because in case of prepaid cards, the value of the rupee would be as on the date funds are loaded to the card which, typically, would be before the journey date.
 Shopping
 It is better to avoid shopping in Europe, since it is expensive. But in case of the US, if you happen to be there during sales, it is a good time to shop, says Bhatija. "For souvenirs, I used to visit flea markets, since they are cheaper than the stores," she says.
http://www.business-standard.com/article/pf/travel-without-burning-a-hole-in-your-pocket-113032400329_1.html


 

AirAsia's 'brand' new flight

That AirAsia will fly the domestic skies is old news. The question everyone watching the company's India story unfold is asking is simple: What will the airline stand for? In a market that has its own share of low-cost carriers (LCCs) such as IndiGo, SpiceJet, Jet Airways' Jet Lite and GoAir, providing the lowest airfare is simply not sufficient. There needs to be something more.
 Earlier this week, SpiceJet's Chief Executive Officer Neil Mills had said, "Airlines in India are not allowed to charge a fee for baggage or preferential seats. The Aircraft Rules of 1937 do not allow it." He was referring to AirAsia's reliance on ancillary revenue. The airline will have to look at creating a distinctive identity to compensate for the absence of this ancillary-revenue stream.

Says Nalin R Khanna, president, Vertebrand, a brand consultancy firm, "One cannot create a brand identity on the basis of just the gap in the market. There needs to be a definitive differentiator in the value proposition of the company." He draws his suggestions from the company's business plans for the Indian market. The airline has announced they would avoid the Mumbai-Delhi circuits to keep the operational costs low, concentrating on Tier-II and Tier-III towns instead.
 "In the small sectors, a cause of concern for the fliers is the absence of an assurance that the said flight will even take off. Look at the busier airports and there are multiple flights at different times during the day. Smaller airports have less cluttered flightboards. There may even be a single flight taking off in a day. And, if that doesn't happen, one is stuck. AirAsia can build itself as a reliable player that will ensure operational efficiency," says Khanna.
 Brand identity percolates from the entire experience one has with the brand. It begins with the check-in counter and extends to the time you disembark at your destination. Designing the facilities distinctively, paying attention to the visual identity will come in handy in establishing oneself in the minds of the passengers suggest brand consultants.
 Apart from its international success, what AirAsia has going for it is its tie up with the Tatas in India. Jagdeep Kapoor, chairman & managing director, Samsika Marketing Consultants, suggests using this tie-up in the company's identity building. "If it (AirAsia) can use the Tata name as a prefix or suffix or in some manner at all in its communication / brand identity, it will get a major fillip on the credibility aspect," he says.
 While Mills pointed out AirAsia would have to do without its ancillary- revenue streams such as charging for check-in luggage, Alpana Parida, president D Y Works, suggests adding some frills to the no-frill chapter - bring back the food.
 "Indians love food. And food for us is the equivalent of good hospitality. AirAsia can distinguish itself on this parameter. What we need is not the sanitised sandwiches but something more suitable to the Indian palette. If they succeed on this count, you have a winner. The flier may forget everything but not the food he's been served," says Parida.
 She suggests a wider change in AirAsia's branding stance, giving India a permanent position in its roster. She points out when the West says Asia, they always speak of South East Asia. India is never considered a part of it. It is always the Indian subcontinent. "If AirAsia can, in some way, create an all- inclusive Asian brand identity, Indians will find it far more comforting to accept the airline and relate to it."
http://www.business-standard.com/article/management/airasia-s-brand-new-flight-113032400301_1.html

Overseas flying norms may be eased

: The aviation ministry has decided to end the discrimination desi carriers face in flying abroad vis-a-vis foreign airlines that have flights to India. The current rule that an Indian carrier must complete at least five years of operation and have a fleet of 20 aircraft before being allowed to go overseas is all set to be relaxed. While the minimum age of five will remain for now, the fleet requirement could be cut by half to 10.
 "The change of rules would have to be approved by the Union cabinet and we are preparing the papers for being put up there. Many foreign airlines that fly to India (like those of Bangladesh and Bhutan) do not have 20 aircraft in their fleet. Why should our carriers face such conditions then?" aviation minister Ajit Singh told TOI.
 Such a change would help airlines expected to be launched now after FDI rules have been relaxed and Wadia Group's GoAir that has sought exemption from the 20-aircraft rule to fly abroad. Airline industry officials question the five-year logic too. Many foreign carriers have had their launch flights to India.
The crucial requirement of bringing down the limit of five is, however likely to remain as the Directorate General of Civil Aviation (DGCA) has told the ministry that Indian carriers must have some minimum operating experience before flying abroad. "I will ask the DGCA on whether its stand for five years is due to safety reasons, in which case it cannot be changed. This will be studied and we are working on this front," Singh said while hinting at a slew of reforms from the aviation ministry in coming days after abolishing the age-old aircraft acquisition committee.
 The five-year, 20-aircraft rule is in fact blamed for the woes of the Indian airline sector. In 2007, Jet Airways' promoter Naresh Goyal bought Air Sahara to remain the only private Indian carriers that flies abroad. And, a few months later, Kingfisher chief Vijay Mallya acquired Air Deccan so that his then two-year-old airline could fly abroad on the latter's licence. These expensive buys put a huge strain on both Jet and Kingfisher, with the latter getting grounded and the former in talks with Etihad to sell a stake to raise funds.
 "The five-year, 20-aircraft rule has caused enough damage and must go now," said an official of Kingfisher, who is among the 3,500 staffers waiting to get their last June salary and blames the expensive Deccan buy for his employer's near-bankrupt status.
http://timesofindia.indiatimes.com/business/india-business/Overseas-flying-norms-may-be-eased/articleshow/19176836.cms
 

Air India invites fresh bids to lease out 8 floors in Nariman Point building

Air India is once again putting up some floors of its iconic sea-facing headquarters building in Nariman Point, Mumbai, for rent.
After the dull response to its first attempt at leasing 12 of the 23 floors (1,59,000 sq. ft) in its building in October last year, the debt-laden national carrier has now invited fresh bids, the second time in the last five months. The last attempt reportedly resulted in award of only four floors to State Bank of India after the airline extended the bid offer.
 Gather revenues
The new round of bidding comes after the Board of Air India formally approved shifting of the airline’s headquarters from Mumbai to Airline House in New Delhi with immediate effect last month.
This is part of a larger exercise by the airline to monetise its real estate assets by renting, selling or re-developing its properties across the country to gather revenues of Rs 5,000 crore in the next 10 years.
 In its latest offer, Air India has invited interest for leasing eight floors, putting a total of 1,15,518 sq ft of built-up area for rent for a lease period of nine years.
 This period can be extended by three years at the sole discretion of Air India. However, to qualify for the financial bid, the company has added the condition that the bidders will have to quote for a minimum of one entire floor, including service core area in Tower Block, that is the 13th floor and above.
 The floors on offer comprise ground floor, first floor, floors 13th to 16th and 19th and 20th.
Benchmark lease rent
The company has also given a benchmark lease rent for ground floor at Rs 350 a sq. ft. a month, 320 sq. ft. a month for first floor and Rs 310 a sq. ft. a month for the fourth floor tower block.
Interestingly, Air India is not keen on letting go of the longstanding signature identity of the building with its brand. Built in 1974, the building has since served as the airline’s headquarters. To retain its sanctity, it has not permitted any publicity materials, displays, hoardings, advertisement and logo of any kind inside or outside of the building by the new tenants.
They have, however, been allowed to display their company’s board at the office entrance and publicity items on the inner walls of the space leased to them.
Cheaper than rival
According to realty analysts, though the average monthly rent at Nariman Point in South Mumbai at Rs 180- 200 works out to be cheaper compared to the rival and newly emerging corporate office hub of Bandra Kurla Complex which commands rentals of Rs 220-275 per sq. ft., corporates still continue to prefer the latter.
 Strategic location
Ashutosh Limaye, Head - Research and Real Estate Intelligence Services, Jones Lang La Salle, said: “Corporates prefer BKC owing to its strategic location near the airport and the suburbs where the majority of their staff stays.
“Moreover, being a well-planned commercial district it boasts better infrastructure and roads.”
New business district
Amit Bhagat, CEO and Managing Director, ASK Property Investment Advisors, said: “With BKC emerging as the new central business district, biggies such as Deutsche Bank, Standard Chartered Bank and JP Morgan have already relocated out of South Mumbai. Only smaller offices or boutique offices would be interested in staying there which is why the Air India building, despite being a marquee or trophybuilding, is hardly finding any takers. This is reflected in the airline’s repeated attempts to put it on lease.”
http://www.thehindubusinessline.com/industry-and-economy/logistics/air-india-invites-fresh-bids-to-lease-out-8-floors-in-nariman-point-building/article4544532.ece?homepage=true&ref=wl_home

 

Flier bonanza: Airfares 30% lower

Mumbai: The domestic air traveller hasnt had it this good in over a year.Those who book flight tickets for April or even the beginning of May can expect to bag fares almost 20% to 30% lower than those in March last year.
April and May-beginning are usually lean travel months.Airfares for travel in April,even weekends,are already lower than the usual fares during lean months.
A search on Saturday through major online travel portals throws up a one-way fare of Rs 4,600 from Mumbai to Delhi on a weekend.The return on Monday morning is as cheap as Rs 4,300.A Mumbai-to-Delhi ticket,a few months ago,would cost at least Rs 6,000.A Mumbai-to-Kolkata ticket for April could cost Rs 4,700.Another usually expensive destination,Chennai,comes for as low as Rs 4,100 for April.Usually,a one-way fare from Mumbai to the capital of Tamil Nadu costs at least Rs 6,500.Similarly,fares from Mumbai to Bangalore,Hyderabad and Goa are all available between Rs 2,700 and Rs 3,000.
By keeping fares low,airlines are trying to maximize passenger loads during the lean season,travel experts told TOI.Although a spate of discounts on offer till last week are over,fares to most domestic destinations continue to be at their lowest since March 2012,barring the next weekend,the eve of Holi.These rates are meant to entice people.Low fares stimulate travel and prompt people to take a short holiday, said Rajesh Rateria,managing director,Cirrus Travels,Mumbai.Rateria added the idea is to change the travel pattern so that seats dont go empty.These fares arent for those busy with exams or business results.These are only meant for those who can squeeze in a weekend getaway,he said.
Pradip Lulla from Cupid Travels here said domestic fares may have also been slashed be due to the immense popularity of international destinations.
http://mobiletoi.timesofindia.com/mobile.aspx?article=yes&pageid=1&sectid=edid=&edlabel=TOIKRKO&mydateHid=24-03-2013&pubname=Times+of+India+-+Kochi&edname=&articleid=Ar00103&publabel=TOI

 

Saturday, 23 March 2013

Aranmula Airport: Court rejects probe report

The Court of the Enquiry Commissioner and Special Judge (Vigilance), Kottayam, has rejected the inquiry report submitted by the Vigilance DySP on a complaint that there were anomalies and violation of law  in filling paddyfields, wetlands and a river for the construction of the proposed Aranmula Airport.
The judge S Soman directed the investigating officer to register a FIR against the persons involved in the case and to conduct a detailed inquiry. The FIR should be submitted to the court within two weeks.
The Vigilance Department had been directed to conduct a preliminary inquiry into the issue on the basis of a complaint filed by Kummanam Rajasekharan, the patron of Aranmula Heritage Village Karma Samithi.  While rejecting the inquiry report submitted by Vigilance DySP Baby Charles, the Court criticised the inquiry officer and the director of Vigilance and Anti-Corruption Bureau (VACB), who ratified the report. The court observed that though it was specifically mentioned that if a prima facie case has been established, crime has to be registered against the persons involved in it and the inquiry officer did not do that.  “The report submitted by the officer itself reveals that prima facie case has been established against the officials of the Revenue and Registration Departments and private individuals. However, without registering FIR and not even questioning the petitioner, the enquiry officer has taken shelter under the report,” the court said.
The court has found that in the enquiry report, it was clearly mentioned that no sanction was given by the RDO, Adoor, to fill up the paddyfield or to remove sand from the dry land nearby, for the construction of a runway for the Mount Zion Aeronautical Engineering College, owned by Kozhenchery Charitable Educational Society.
However, Abraham Joseph Kalamannil, the chairman and president of the Society, had levelled many acres of paddyfield and water-logged areas. “The govt machinery remained as mute spectators to the misdeeds and is seen to have given consent to do such mischief by inaction,” the court observed.
The court also observed that the Collector, instead of inquiring the issue and taking action asked Abraham to produce relevant papers from the state government and Civil Aviation Ministry for considering his application.
http://newindianexpress.com/states/kerala/article1513726.ece

Mallya plans to pay pending salaries, start services soon

Kingfisher Airlines will settle the pending wages of its employees and plans to restart operations soon, airline promoter Vijay Mallya has said.
 The airline, which ceased operations on October 1 last year, has not paid employees’ wages for the last 10 months. Its operating licence lapsed on December 31 last year.
 At a late night meeting here on Thursday, Mallya said he was committed to paying back the wages as soon as funds start flowing in from the Diageo-deal. Earlier this year, Diaego had agreed to purchase a 53.4 per cent stake in Mallya-led UB Group at an estimated cost of over Rs 11,000 crore.
 Employees protest
The meeting was held a day after a section of employees held a protest at Delhi airport demanding payment of pending wages and sought the intervention of the Government to settle their outstanding dues.
 Kingfisher employees also threatened to hold protests at venues where IPL cricket matches are to be played in case their dues were not settled. Mallya is the owner of a team which will be playing the IPL matches.
 In April and October last year, the airline had promised to settle the pending wages of employees. However, only some of them were paid.
 Revival plan
During yesterday’s meeting, Mallya had claimed that he would be meeting with the Directorate General of Civil Aviation soon to submit a revival plan for the airline.
 Kingfisher is saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,000 crore.
 The Ministry of Civil Aviation has made it clear to the airline that there is no question of even looking at the revival plan till the employees’ wages are settled.
The DGCA has indicated that the airline will have to get comfort letter from banks, income and service tax departments before a final call is taken on allowing the airline to restart operations.
http://www.thehindubusinessline.com/industry-and-economy/logistics/mallya-assures-revival-plan-salary-to-kingfisher-staff/article4537205.ece

Thursday, 21 March 2013

Kannur airport work in 2 months

Thiruvananthapuram: Construction activities at the Kannur International Airport would begin within a couple of months. The project’s master plan was approved by the director board of the Kannur International Airport Limited on Wednesday.
Announcing this, ports minister K. Babu said in the assembly on Thursday that the environmental clearance for the project was awaited.
Replying to submission by A.P. Abdullakutty (Cong), the minister said seven firms have been shortlisted by the director board for participation in the financial bid for the air-side construction activities. Sanjos Gammon JV, Larsen and Toubro, TAV-Essar, EKO – Unity JV, OJSC Sibmost – Gayatri JV, GMR Infrastructure, and ITD Cementation India were the firms.

The master plan was prepared in consultation with agencies like the Director General of Civil Aviation, the Airports Authority of India and the Bureau of Civil Aviation Security, the minister said.
Babu said the defence ministry had extended the no-objection-certificate for the project by five more years and accepted the state’s plea to take ten acres of land on lease. The Kerala Road Fund Board would be constructing the green-filed roads to the airport.
http://www.deccanchronicle.com/130322/news-current-affairs/article/kannur-airport-work-2-months
 

Aircraft purchase freed from red tape

NEW DELHI: Indian carriers are now free from bureaucratic red tape that surrounded import of aircraft for fleet augmentation. Aviation minister Ajit Singh on Thursday disbanded the aircraft acquisition committee (AAC) where airlines' requests for getting aircraft have historically remained stuck for indefinite periods. Both schedule and non-schedule airlines and flying institutes can now induct planes as per their business plans, without seeking any nod from the ministry.
"Airlines decide their fleet size on commercial grounds. No airline will import planes if it does not feel the need to do so and there is no point in coming to us for seeking the nod to do so. I have decided to cut the bureaucratic red tape surrounding aircraft acquisition that only used to cause delays. The directorate general of civil aviation checks planes for airworthiness, safety and there is no need for any other approvals from the ministry as far as fleet is concerned," Singh said.
Airlines had been up in arms over the delays caused in the AAC. Airlines decide fleet size based on dynamic ground realities and hurdles in getting planes often meant airlines missing good business opportunities. The Prime Minister's Office had last year objected to Singh being the final approving authority of AAC after airlines conveyed fears that such a structure would only add to delays. The AAC has traditionally been headed by an additional secretary but Vayalar Ravi as aviation minister two years back had decided to have the minister as the approving authority, a practice continued by Ajit Singh.
In recent months, AAC was accused of sitting on requests from a leading low-cost carrier to import planes and the approval came after the ministry drew flak for this. The PMO is learnt to have pushed for smoother aircraft imports for airlines, especially in the wake of FDI rule change, which allowed foreign airlines to invest in desi ones or launch startups with Indian companies as majority stakeholders. Aviation industry insiders say the change in rules may have come after a nudge from the PMO.
After Thursday's move, airlines will only need the initial no-objection certificate from DGCA and an in-principle approval to import planes. "The in-principle nod is needed for meeting RBI norms that mandate some sort of government clearance before allowing a commercial entity to make payments to a foreign company," Ajit Singh said.
The impending Jet-Etihad deal and the soon-to-be-launched Air Asia India will now see more planes coming to Indian skies without any trouble from the ministry. Between December 2011 and March 2013, nine airlines that operate in India sought permission to import 97 planes and all were granted permission.
http://timesofindia.indiatimes.com/business/india-business/Aircraft-purchase-freed-from-red-tape/articleshow/19116639.cms