Qatar Airways, IndiGo in code-share talks

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

DGCA lifts ban on Dreamliner

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

Air India to lease 19 Airbus A-320 aircraft

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

Travel agents to down shutters today on commission woes

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

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

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

Travel agents fear move will lead to drop in commission

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

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

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

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

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

Pawan Hans may enter commercial airline business

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

AirAsia chief Tony Fernandes to visit India

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

DGCA moots cameras in cockpits

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

Reconsider Aranmula Airport project: Par panel

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

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

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

Air hostesses take control of AI flight as pilots take break

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

AirAsia CEO to clarify on Govt queries soon

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

House panel against hike in air traffic rights with Abu Dhabi

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

House panel: Shelve airport at Aranmula

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

Mini-jumbo war beckons as Boeing starts selling 777X

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

Air freight markets slowed in March: IATA

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

Etihad seeks nod of competition watchdog for Jet stake buy

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

Etihad's global network plans fuelled by Indian passengers

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

AI suspends pilots in mid-air fiasco

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

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

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

Green tribunal nod for Aranmula

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

Increased access to Etihad to benefit fliers: Ajit Singh

Ajit Singh says the move was made keeping “passenger convenience” in mind as more foreign carriers would increase options for fliers.
 NEW DELHI: Defending the move to allow UAE city-state Abu Dhabi's airlines increased access to the Indian market, civil aviation minister Ajit Singh says the move was made keeping "passenger convenience" in mind as more foreign carriers would increase options for fliers and bring down airfares on overseas routes. "Everyone has been criticising revision of bilateral traffic rights between India and Abu Dhabi. We looked at passenger convenience in doing it and, therefore, revision of bilateral rights is important," Singh told ET.
 Last week, in the backdrop of the financial deal between the Naresh Goyal-owned Jet Airways and Abu Dhabi's national carrier Etihad, the two regions decided to raise air capacity by 36,670 seats per week from the existing 13,300 seats per week, sparking concerns among the local airlines and private airports. "Why should everyone come to Delhi to catch a flight? Why can't we have a direct overseas flight from Muzzaffarpur? Increase in competition among foreign airlines and cheaper operations from regional airports, where state governments are ready to offer a lot of tax benefits, will ultimately help bring fares down," "Air India's problem is high costs, which they will have to cut. They have offices and staff all over the world without having even a single flight at some places.
 Growth of international traffic, according to AI's own projections, is 10% per annum and there's a lot of scope for everyone to service this," he said.
 Comptroller and Auditor General, in its report on Air India in 2011, had pointed out how Air India had lost out on international air traffic due to generous grant of traffic rights to foreign airlines, especially from Dubai, Bahrain, Qatar and other Gulf and South East Asian countries. Till date, Gulf airlines such as Emirates, Etihad and Qatar, which are gateway carriers, dominate air routes between India and the Middle East to an extent that 40% of total west-bound Indian traffic is routed through the Gulf. Latest official statistics corroborate this showing how Emirates garnered a lion's share of the total Indian passengers in 2011-12 at 13.04% market share. No wonder then that the national auditor recommended that the ministry of civil aviation could look at "options for rollback of excess entitlement granted beyond genuine traffic requirements." the minister said. Singh said more access to foreign carriers would enable direct flights to overseas locations from small towns improving air connectivity and means of transport for all.Revision in air capacity granted to Abu Dhabi will help their official carrier Etihad attain equal footing with Dubai's airline Emirates, which now has 54,200 seats per week into India. Air India CMD Rohit Nandan had last week told ET about his apprehension of other foreign carriers, especially Dubai's Emirates, pushing more aggressively for increase in their traffic rights too as they've been requesting the same for the past one year. The minister brushed aside Air India's concerns arguing that Etihad's increased India operations "will give more headaches to Emirates than Air India.""Air India's problem is high costs, which they will have to cut. They have offices and staff all over the world without having even a single flight at some places. Growth of international traffic, according to AI's own projections, is 10% per annum and there's a lot of scope for everyone to service this," he said. Comptroller and Auditor General, in its report on Air India in 2011, had pointed out how Air India had lost out on international air traffic due to generous grant of traffic rights to foreign airlines, especially from Dubai, Bahrain, Qatar and other Gulf and South East Asian countries.Till date, Gulf airlines such as Emirates, Etihad and Qatar, which are gateway carriers, dominate air routes between India and the Middle East to an extent that 40% of total west-bound Indian traffic is routed through the Gulf. Latest official statistics corroborate this showing how Emirates garnered a lion's share of the total Indian passengers in 2011-12 at 13.04% market share. No wonder then that the national auditor recommended that the ministry of civil aviation could look at "options for rollback of excess entitlement granted beyond genuine traffic requirements."
http://m.economictimes.com/news/news-by-industry/transportation/airlines-/-aviation/increased-access-to-etihad-to-benefit-fliers-ajit-singh/articleshow/19811742.cms

Jet-Etihad alliance triggers open offer, says SES

The deal between Jet Airways and UAE-based Etihad Airways should trigger an open offer, says proxy advisory firm Stakeholders Empowerment Services (SES).

“Jet has announced Etihad has agreed to subscribe to a preferential issue, SES is of the opinion that an open offer should have been triggered under the SAST Regulations. The public announcement for an open offer should have been made on the date of the agreement. Since that date has already passes, SES is of the opinion that the Company is non-compliant with the SAST (Substantial Acquisition of Shares and Takeover) Regulations,” the firm has said in a report.
 Jet announced last week the UAE national carrier had agreed to subscribe for about 27 million new shares (24 per cent stake after dilution) in Jet Airways for $379 million (about Rs 2,000 crore). The two airlines, however, haven’t announced any open offer as the trigger limit is 25 per cent, under the new takeover code regulations. “Shares and voting rights being acquired by Etihad are below the trigger level (24 per cent of equity capital or voting rights) prescribed in Regulation 3(1) and therefore, do not trigger the takeover code.
 However, there is no minimum limit or threshold level of shares or voting rights for control that will trigger the takeover code. SES understands that if any agreement, written or oral, puts any person in position of control, such an agreement will trigger provisions of the SAST Regulations," said the SES report.
 The Mumbai-based proxy advisory firm believes that Jet, Etihad and current promoters (Tail Winds) are person acting in concert (PAC) and this triggers an open offer under SAST Regulations
http://www.business-standard.com/article/markets/jet-etihad-alliance-triggers-open-offer-says-ses-113043000776_1.html

West Asian airport dreams bank on Indian travelers

It may be just an hour-and-a-half drive from the Dubai airport, West Asia's undisputed aviation hub, Abu Dhabi is still expanding the capacity of its international airport from 12.5 million passengers per annum now to 40 million by 2018 and 60 million subsequently. The airport will need passengers to justify the billions of dollars that are being invested. Last week, Abu Dhabi took a significant step in that direction when it signed a new bilateral traffic agreement with India to increase the capacity on the sector from 13,000 seats a week to 50,000 in the next three years. The announcement came just a few hours after Abu Dhabi's national carrier, Etihad, picked up 26 per cent in Jet Airways. Etihad wants to funnel passengers from 23 Indian cities to Abu Dhabi and onwards to Europe, Africa and the US. "The deal is a game changer for Etihad," says Kapil Kaul, who heads the Centre for Asia Pacific Aviation in India.

Abu Dhabi and Etihad aren't the only ones who are discovering the importance of India to feed their hubs. Other West Asian carriers as well as airports and some new European destinations are also expanding their capacities furiously. According to CAPA, foreign carriers Qatar Airways, Emirates, Air Arabia, Turkish Airlines, Singapore Airlines and Cathay Pacific have together demanded over 160,000 additional seats per week from the Indian government. For over two years the government had closed the doors on bilateral traffic rights, saying it has to protect Air India. The Abu Dhabi deal, most experts say, shows this consideration no longer weighs on the government's mind and it will open the Indian skies further in the days to come.
 Dubai's rivals
 There are other places, too, apart from Abu Dhabi, which are challenging Dubai's dominance in West Asia. In Doha, the home of Qatar Airways, the new international airport, which is expected to open by the end of this year, will handle 24 million additional passengers in a year - it will go up to 50 million passengers by the end of this decade. To feed this capacity, Qatar Airways, which is also expanding its fleet size, wants to triple its seat entitlements to 72,000 a week from 24,000 at present. Sharjah, from where low-cost carrier Air Arabia operates, has announced that it will also expand its airport as the capacity of 7 million passengers is almost fully utilised. So, even though it is a small player compared to the other West Asian giants, it has now asked for additional 11,500 seats a week, which will nearly double its capacity to India.The battle for Indian passengers is not limited to West Asian carriers. In Europe, Turkish Airlines, leveraging Istanbul's location to address travel from South Asia to Europe and the US, has asked the Indian government to expand its weekly seat entitlement nearly five-fold, from 4,000 a week to 20,000. It wants to increase it frequency of flights from both Mumbai and Delhi and fly to new destinations like Chennai, Kolkata, Hyderabad, Bangalore, Amritsar and Ahmedabad. Istanbul is challenging the supremacy of hubs like Frankfurt and Amsterdam, and even London, by offering value-for-money fares. That's because the Turkish capital is putting up up a third airport which will initially have a capacity to handle 90 million passengers going up to 150 million when it is fully completed.



SOARING HIGH
Airport
Expansion plans
Dubai
Capacity of existing airport to be upped from 60 million to 90 million passengers per annum. New airport Dubai World Central to handle 160 million passengers by 2028
Abu Dhabi
Increasing capacity from 12.5 million to 40 million by 2018
Doha
Increasing capacity by 24 million to 50 million passengers per annum by 2018
Sharjah
Plans to expand airport capacity from 7.5 million passengers per year
Istanbul
New airport with capacity to handle 150 million passengers after completion. 90 million passenger per annum capacity will be introduced in the first phase.
Singapore
Increasing capacity from 73 million passengers a year to 85 million passsngers by 2017
The rush for India is not without reason. According to CAPA, international travellers from India will more than double from 44 million a year to over 100 million in the next 10 years. On the other hand, the four airports of Abu Dhabi, Dubai, Doha, and Istanbul are together creating an additional capacity in their airports of over 100 million additional passengers. Capacity of another 300 million passengers would be added in the next 10 years. The capacity being built in Dubai, Abu Dhabi and Doha in the next five to six years will be greater than Frankfurt, Heathrow (London) and Charles de Gaulle (Paris) airports put together. To keep pace with the huge expansion in the airport capacity, airlines operating from these hubs are also spending billions of dollars to substantially increase their fleet. Kaul says that in West Asia, the three big operators, Emirates, Qatar and Etihad, have together ordered over 500 new airplanes, out of which over 300 are wide-bodied and as many as 90 of them are the large Airbus A-380s. There is no doubt that a substantial part of this fleet will be deployed on the routes to India.
 The old guard
 The traditional players are of course not keeping quiet. Emirates, the national carrier of Dubai, for instance, exhausted its bilateral rights over two years ago (it has been aggressively pushing with India to allow it to fly the A-380, but the government has been sitting on the proposal for a while). It is the king among foreign carriers in India - it controls over 12.2 per cent of the international travel from India which is more than the 7.41 per cent share of Etihad, Qatar and Air Arabia put together. But with 54,000 seats a week as its entitlement, it has to expand quickly. Or else it could lose market share to Etihad and Qatar Airways. This is why Dubai has asked the government for additional 20,000 seats a week immediately. Experts estimate that this demand will go up to at least 50,000 seats in the next three years. This doubling of its entitlement, if cleared, could ensure Dubai's position as the preferred hub for Indian passengers going to the US or Europe. And it will have nearly double the seats to Abu Dhabi or Doha. Also, in combination with flydubai, its low-cost carrier, Emirates has sought permission to fly to more cities like Jaipur, Amritsar, Pune, Nagpur, Varanasi and Mangalore.
This strategy makes sense because Dubai airport is also expanding its capacity to stay ahead: from 60 million passengers a year to 90 million by 2018. More important, Dubai is planning a new airport, the Dubai World Central, which will be the biggest airport in the world with capacity to handle a staggering 160 million passengers a year when it is completed by 2028.The challenge from West Asia and Turkey has reverberations on other markets. Lufthansa, for instance, which uses 49 frequencies a week, has been pushing for introducing the A-380 to expand its capacity. Singapore increased its seat entitlements by 10 per cent last year. But analysts say it will need to do more, otherwise it will lose out on the traffic to the US. Indian passengers are important for Singapore's Changhi airport from which they go onwards to Australia, north Asia and the west coast of the US. And the airport is also expanding capacity from 73 million passengers per year to 85 million passengers by 2017. After all, India is the seventh largest market for the airport based on current seat capacity. But Singapore Airlines has faced some major roadblocks: its request to fly to new cities like Pune and Madurai and press the A-380 into service, for instance, has been rejected. No doubt global airlines and their home airports are working in tandem to ensure that they can woo customers from India.
http://www.business-standard.com/article/companies/west-asian-airport-dreams-bank-on-indian-travellers-113043001022_1.html
 

Bench dismisses plea against Aranmula airport

The National Green Tribunal, Chennai bench, on Tuesday dismissed the petitions challenging the decisions pertaining to the industrial area notification for the Aranmula International Airport project and a no-objection certificate granted by the Kerala government for the project. The bench dismissed the interim order passed earlier by the Tribunal.Post the verdict, the stay on the construction of the Aranmula airport has been lifted. The decision is likely to speed up the project, which is the biggest infrastructure project in central Kerala.The Rs 2,000-crore KGS Aranmula International Airport project is India's first private sector international airport, being promoted by the Chennai-based KGS Group. The Kerala government has a 10 per cent equity stake in the project.
 "We always knew that the green tribunal's verdict would be favourable as we have not violated any norms laid down by the authority. The verdict will help the company speed up work. We will now go forward with the project," said Gigi George, managing director, KGS Aranmula international airport.
 The airport is expected to be a boon for NRIs from central Kerala and the pilgrims to the Sabarimala temple. The economic advantages of the airport would be realised by the four districts of Pathanamthitta, Kottayam, Alappuzha and Idukki, he added.
http://www.business-standard.com/article/current-affairs/bench-dismisses-plea-against-aranmula-airport-113043000994_1.html