Govt not impressed with Kingfisher plan for flying again

NEW DELHI, JAN 11: 

Kingfisher Airline’s plans to take to the skies could tumble with senior Government officials indicating that they were not satisfied with the airline’s plans to invest Rs 650 crore to restart operations, as it might not guarantee efficient and reliable services.

“The revival plan, which was submitted by the airline, had lots of issues regarding lenders and staff payments which we felt may not lead to reliable services,” a senior Government official said.

The revival plan submitted to the Directorate General of Civil Aviation (DGCA) also has no provisions for paying airport operators, the officer said.

Also payment of staff salaries and wages in a phased manner could lead to a situation where the airline may not be able to provide reliable services because if its staff were not paid, they may stop working again and this could inconvenience passengers.

Incidentally, in December 2012, shortly before its operating licence lapsed, the airline’s Chief Executive Officer Sanjay Agarwal had met the DGCA and submitted a letter indicating that the UB Group would pump in Rs 652 crore over 12 months to help the airline restart its operations.

At that time too DGCA officials had indicated that the airline’s communication was not enough for its licence to be renewed.

Earlier this week, after the employees sought sale of assets to clear their back wages, the airline promoter and Member of Parliament Vijay Mallya wrote to them explaining his plans of submitting a revival plan to the DGCA.

In the letter, Mallya mentioned that the UB Group was willing to provide Rs 650 crore to the airline.

He also mentioned that the airline planned to restart operations in two phases.

In the first phase, which should be implemented from the summer schedule 2013, it plans to start operations with seven aircraft and increase this to 21 aircraft in four months.

In the second phase, it plans to grow to 57 aircraft within 12 months of recapitalisation, the letter states.

http://www.thehindubusinessline.com/industry-and-economy/logistics/govt-not-impressed-with-kingfisher-plan-for-flying-again/article4298117.ece?homepage=true

AAI extends CFT loan facility

The AAI has agreed to continue to provide on hire the Crash Fire Tender, which was given on loan basis to the Indian Navy, for a few more months.

The Navy, which mans the Air Traffic Control (ATC) at the Visakhapatnam airport, has only two CFTs at its disposal. Three CFTs are required to upgrade the ‘fire services category’ at the airport from ‘6’ to ‘7’. The Visakhapatnam – Dubai Air India flight (via Hyderabad) was launched on March 25 last year. Category ‘7’ is essential for operation of the large bodied aircraft like A-321.

In view of the urgency, AAI requisitioned one CFT from Hyderabad and gave it to the Navy on loan basis. The loan agreement had expired, but the Navy failed to acquire a third CFT. The AAI wanted to take back its CFT to Hyderabad.

Air Travellers’ Association (India) president D. Varada Reddy took the issue to the notice of MP T. Subbarami Reddy and the latter convinced the AAI authorities in New Delhi to extend the CFT loan facility by a few more months. The Navy is expected to procure its own CFT by March.

http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/aai-extends-cft-loan-facility/article4301034.ece

AAI extends CFT loan facility

The AAI has agreed to continue to provide on hire the Crash Fire Tender, which was given on loan basis to the Indian Navy, for a few more months.

The Navy, which mans the Air Traffic Control (ATC) at the Visakhapatnam airport, has only two CFTs at its disposal. Three CFTs are required to upgrade the ‘fire services category’ at the airport from ‘6’ to ‘7’. The Visakhapatnam – Dubai Air India flight (via Hyderabad) was launched on March 25 last year. Category ‘7’ is essential for operation of the large bodied aircraft like A-321.

In view of the urgency, AAI requisitioned one CFT from Hyderabad and gave it to the Navy on loan basis. The loan agreement had expired, but the Navy failed to acquire a third CFT. The AAI wanted to take back its CFT to Hyderabad.

Air Travellers’ Association (India) president D. Varada Reddy took the issue to the notice of MP T. Subbarami Reddy and the latter convinced the AAI authorities in New Delhi to extend the CFT loan facility by a few more months. The Navy is expected to procure its own CFT by March.

http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/aai-extends-cft-loan-facility/article4301034.ece

Minister calls on AAI Chairman

Welfare Minister P. Rajavelu, who also holds the Tourism portfolio, along with officials from the Tourism Department, paid a courtesy call on Airports Authority of India Chairman V. P. Agrawal on Wednesday.

Officials discussed the possibility of expansion and future plans of the airport, Secretary for Tourism W.V.R Murthy said.

The AAI was at present exploring the possible dates for inauguration of the airport. They were also deciding about invitees for the function.

The meeting with the AAI was following a review meeting conducted on January 5 confirming details of the first flight to Puducherry, he said.

http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/minister-calls-on-aai-chairman/article4301124.ece

Revised EoI for Idukki feeder airport

Thiruvananthapuram, Jan. 11:  

Kerala State Industrial Development Corporation has come out with a revised document inviting expression of interest in proposed feeder airport in Idukki district.

As per feasibility study by Airports Authority of India, the site identified at Anakkara is found suitable for the project, the document said.

SITE CLEARANCE

Application for site clearance has been preferred to Union Ministry of Civil Aviation. NOC from aviation angle for construction of the proposed greenfield airport has been received from Ministry of Defence. The airport consultant will be required to undertake detailed studies and to prepare the techno-economic feasibility report. It is envisaged that an Environment Impact Assessment (EIA) will also be undertaken as part of this.

The consultant will identify the significant technical and economic factors influencing the proposed airport and also to evaluate their positive and negative impacts on the project.

It will assess the commercial potential of the project and draw up a strategic plan for its development, keeping all important commercial considerations in view.

It will identify all important considerations for technical operation of the airport. It will also carry out necessary surveys/ studies for evaluating and documenting specific, site-related, technical and engineering parameters to be kept in view while developing the project. The consultant will make an estimate of the capital outlay for the project, identify all income streams including those from possible non-aviation activities, financially structure the project and to work out the financial feasibility indicators.

MASTER PLAN

It will perform a socio-economic cost-benefit analysis of the project and also to quantify the larger economic returns. It will prepare a development Master Plan taking due cognisance of developments the project may cause to happen in its ‘influence region.’

The report shall include technical and financial possibilities of the selected location of the airport. This should be done by analysing the potential of passenger and cargo movement in the influence zone.

It shall also focus on possibilities for raising non-aviation revenues, in order to make the project a financially feasible investment proposition.

The report shall provide salient inputs for structuring the project on PPP mode, arrive at the best pattern of capital structure and highlight the selection criteria and process of selection of the private partner.

vinson.kurian

@thehindu.co.in

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The airport consultant will be required to undertake detailed studies and to prepare the techno-economic feasibility report.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/revised-eoi-for-idukki-feeder-airport/article4299509.ece

Aranmula airport project yet to get in-principle approval

Company claims it has received all clearances

Thiruvananthapuram, Jan. 11:  

The State Government has announced its intention to take 10 per cent equity in the private sector Aranmula airport project in Pathanamthitta district.

But it is premature for the Government to make a commitment in this manner, a top source in the Government told Business Line.

NOD AWAITED

This is because the airport project has not yet been granted ‘in-principle’ approval by the Union Ministry of Civil Aviation.

This approval is issued after a greenfield airport project obtains defence and environmental clearances.

The only peer airport project which has received this ‘in-principle’ approval in the State is the Kannur International Airport, the source said.

A statement by Union Minister for Civil Aviation Ajit Singh in Parliament on August 21, 2012, too suggested that this was indeed the case.

He listed the following as having received the ‘in-principle’ approval: Mopa in Goa; Navi Mumbai, Shirdi and Sindhudurg in Maharashtra; Shimoga, Gulbarga, Hassan and Bijapur in Karnataka; Kannur in Kerala; Durgapur in West Bengal; Datia/Gwalior in Madhya Pradesh; Kushinagar in Uttar Pradesh; Karaikal in Puducherry and Pakyong in Sikkim.

COMPANY CLAIM

P.T. Nandakumar, Executive Director, KGS Aranmula International Airport Ltd, told Business Line the project has already received ‘all required clearances.’ He said the steering group under the chairmanship of the Secretary, Ministry of Civil Aviation, had issued the final clearance as far back as October 28, 2011.

“As far as we are concerned, there is no single outstanding clearance/approval pending,” he said.

The Centre pronounced a policy for greenfield airports in April, 2008. The objective was to ensure timely grant of all approvals and clearances.

The promoter seeking to develop the airport has to submit the proposal to the government for consideration by the steering committee.

STATE FACILITATION

Applications are considered by the steering committee/competent authority for grant of ‘in principle’ approval. But this comes after they have completed all necessary formalities of obtaining pre-feasibility study report, site clearance and clearances from regulatory agencies.

The State Government may give incentives to an airport company such as land, concessional or otherwise and real estate development rights.

It may also grant means of connectivity; rail, road; fiscal incentives by way of exemptions from State taxes; and any such it may deem fit.

The steering committee coordinates and monitors various clearances required for setting up a greenfield airport.

The ‘in-principle’ approval is issued by the Union Ministry of Civil Aviation after a greenfield airport project obtains defence and environmental clearances.

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/aranmula-airport-project-yet-to-get-inprinciple-approval/article4299508.ece

SpiceJet slashes fares; server crashes on booking rush

IndiGo, GoAir and Jet may not cut fares

Mumbai/Delhi, Jan. 11:  

The price war is back in Indian skies, much to the delight of air travellers. SpiceJet on Friday slashed fares by more than 50 per cent on travel from February to April. The airline said that it was offering “10 lakh seats for an all-inclusive fare of Rs 2,013” for any domestic flight between February 1 and April 30.

Hours after Chennai-headquartered SpiceJet came up with the special fare offer, the Delhi-based IndiGo Airlines discreetly lowered its air fares. While IndiGo did not comment on the issue, the airline Web site was offering a return fare on the Delhi-Mumbai route at about Rs 4,500.

Meanwhile, in a late night development, the Government spoke to the industry and asked it not to go for a price war. Sources indicated that IndiGo, GoAir and Jet have agreed not to join the price war.

February to April is traditionally a lean season for travel. Typically, a Mumbai-Delhi airfare - when booked three weeks before the date of travel – is about Rs 4,700. The fare goes above Rs 8,500 if booked less than a week before travel date.

However, the low price that triggered a rush of bookings in the SpiceJet Web site resulted in a server crash. Many people could not access the site due to heavy online traffic. Twitter was abuzz with confused and hassled comments by people who could not make bookings from the SpiceJet site.

Meanwhile, SpiceJet said that the server problems were due to the heavy online traffic and they were working to rectify the issue. Till 5 p.m. on Friday, SpiceJet had sold 1.7 lakh of the 10 lakh seats on offer during the 72-hour promotional window, the airline Chief Executive Officer Neil Mills said.

‘Irrational pricing’

However, industry watchers termed this promotion ‘irrational pricing’. Countering this allegation, Mills said, “I do not see how you can call this irrational pricing. We are selling seats which would have otherwise gone empty. We hope that this promotional limited time sale will see people take up discretionary travel and possibly some people who would have, otherwise, travelled by train shift to air. We do not benefit or lose.”

http://www.thehindubusinessline.com/todays-paper/spicejet-slashes-fares-server-crashes-on-booking-rush/article4299460.ece