Thursday, 7 March 2013

UN aviation agency raises alarm over Indian charter flights


New Delhi: The United Nations aviation watchdog has raised a safety alarm over charter aircraft operations in India.

The Montreal-based International Civil Aviation Organization (ICAO) has issued significant safety concerns over aircraft charter operations in India.

The directorate general of civil aviation (DGCA) has now formed five teams of three officers each which will review the licensing of each of the 147 nonschedule operators here.These teams will also examine the safety practices of these companies.

Fears over charter or nonschedule operators licensing and their planes airworthiness arose after ICAO did an audit of the DGCA last December.The audit report sent to Indian aviation authorities raised concerns in areas of operations and airworthiness.It questioned the licensing process and the process for approving modifications carried out in aircraft by the operator.We have sent an immediate corrective plan to address ICAOs significant safety concerns that has been accepted by them.We are aiming to complete the verification programme of non-schedule operators before June-end, said an official.

The DGAC teams will now examine the airworthiness of charter companies aircraft and examine their flight safety standard.These teams will check the preparedness of the companies crew to handle emergencies.

ICAO has expressed concern at the fact that charter operators have got their aircraft modified from manufacturers but those changes have not been checked and approved by the DGCA.Now all such modifications are going to be checked and certified.


 

 

Jet-Etihad deal: India working to assuage UAE's investments concerns; PM to visit Abu Dhabi

MUMBAI: The Indian government is moving fast to assuage the UAE government's concerns regarding investments from that country in India, an assurance that is seen as a crucial perquisite to successful completion of the Jet-Etihad deal.

 

 Prime Minister Manmohan Singh will be visiting Abu Dhabi later this month to discuss, among other things, an investment protection treaty between the two countries. The bilateral treaty will assure the UAE that investments made by its companies in India will be protected from unilateral, arbitrary action. The timing of the visit is crucial as it comes at a time talks between Etihad and Jet Airways have been deadlocked due to concerns expressed by the foreign airline over the safety of its investment in India's second largest airline. Etihad and the UAE government are seeking assurances that their investment will not go the way of Etisalat, a UAE telecom company whose licences were cancelled by the Supreme Court last year as part of investigations into the issue of 2G telecom licences in 2008. The two airlines have focused on the purchase of a 24% stake in Jet by Etihad. The transaction, if successful, will help Jet pay down a part of its debt and secure an alliance with an ambitious Middle-Eastern airline. It is not known whether the bilateral investment protection treaty will be signed during the prime minister's visit, though it will be an important topic of discussion.

 

 Government and industry officials said Etihad and the UAE government had sought written guarantees from the government about its investments, but the government was wary of providing something so explicit to a single industry. Minister for Commerce, Trade and Textile Anand Sharma told ET that no written assurances would be provided to UAE companies.

 

 Sharma was on an official visit to Abu Dhabi last month and is believed to have held substantial discussions with the UAE about the investment treaty. "As a cabinet minister, I have an India-specific discourse and not sector specific. We've dispelled their doubts in an India-specific manner by telling them that India as a whole is a safe investment destination. We want investment in all sectors and, therefore, India and the UAE have in principle agreed to ink a bilateral investment promotion and protection agreement to boost two-way trade. This particular issue never came up like this (with specific request for written assurance for Jet investment)," he told ET. The Etihad transaction with Jet is part of a bigger push by the UAE government to expand economic cooperation with India. UAE companies are believed to be willing to invest up to $2 billion in Indian infrastructure and energy projects.

 

 India, on the other hand, wants higher foreign investment to increase growth opportunities for its companies and jobs for millions of unemployed youth. Last year, the government changed its decades-old policy to allow up to 40% foreign investment in Indian airlines. If the deal with Jet is signed, Etihad will become the second major foreign airline to enter India after AirAsia. "Etihad wanted some guarantees and assurances from the Indian government," said a senior Jet official not wanting to be identified, adding Jet was in the process of getting these assurances.

 

 Jet's top management team, including its promoter, and his legal advisors are currently in Abu Dhabi thrashing out the final deal contours. "The deal is at a very crucial stage," a senior Jet official said. It is believed that both the airlines have been able to iron out differences regarding board representation and the right of first refusal. Etihad might end up with four representatives on the Jet board and will have some measure of operational control. Mails sent to both Jet and Etihad did not elicit a response. Last week, Jet sold three pairs of its Heathrow (London) airport slots to Etihad Airways for $70 million. The airline recently launched an offer for two million discounted tickets to shore up cash and get incremental revenues. Jet has a debt burden of over Rs 13,000 crore and is in urgent need of cash infusion to keep the business viable.


 

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