Bahrain Air leaves passengers stranded

KOCHI: The overnight withdrawal of services and liquidation of Bahrain Air have panicked its staff, besides confusing passengers and travel agents.
According to a posting on the airline's website, the decision to announce the company's immediate suspension of operations was taken at its extraordinary general meeting (EGM) held in Bahrain on Tuesday.
Even the airline staff came to know of the decision late last night. "We had no clue. We have been rendered jobless all of a sudden," an outgoing senior official of the airline in Kerala said.
Bahrain Air had been operating 18 services a week from India: five each from Kochi and Kozhikode, and four each from Mumbai and Thiruvananthapuram. "Out of these, the services from Thiruvananthapuram were cancelled from February 1,'' a former official said.
Passengers, who had no clue about the late-night developments, had gone to Kozhikode airport in the morning as the flight was to depart from there to Bahrain at 5.10 am. "We couldn't communicate to passengers as we came to know about the cancellation of flights only late in the evening,'' said an official in-charge of Bahrain Air in Kozhikode. There were 150 bookings from Kozhikode to Bahrain on Wednesday, he said.
"I have to reach Bahrain urgently. I reached at the airport early in the morning. I'm told that I will get my ticket refunded as well as the taxi fare,'' said P Jaiffer from Pariyaram in Kannur district.
The agents are also in a fix. "We had a group booking for 48 passengers for February 24. We had paid about Rs 12 lakh in advance for this. Now we don't know how will we get the refunds,'' said an official of the Kochi-based Alban Travels India.
Another outgoing official from the airline said from Bahrain that the India sector was the largest segment of operations of Bahrain Air, which started operations in 2008. "We have a fleet of five leased aircraft and we operate flights to most of the GCC countries, as well as to Amman, Beirut and Tunisia. We had made some arrangements for passengers who were in transit," the officials said over the phone from Bahrain.
Kochi; The overnight withdrawal of services and liquidation of Bahrain Air have triggered off panic among passengers, travel agents and the staff of the airlines.
According to a posting at the Bahrain Air website, the decision to announce the company's immediate suspension of operations was taken at the Extraordinary General Meeting (EGM) of the airline held in Bahrain on Tuesday.
The shareholders airline have also decided to file for voluntary liquidation in accordance with the Kingdom of Bahrain's Commercial Companies Law, the posting said. The debt burden caused by the disruption of services during the unstable political and security situation in Bahrain was attributed as the reason for the closure move.
Even the airline staff came to know of the decision late last night. We had no clue as this was in the offing. We have been rendered jobless all of a sudden, '' an outgoing senior official of the airline in Kerala told TOI here.
Passengers who had no clue on the late night developments had come to Kozhikode airport this morning as the flight was to depart from there to Bahrain at 5.10 am. The incoming flight from Bahrain was to land there around 3 am. We couldn't communicate to passengers as we came to know about the cancellation of flights only late evening,'' said the official who was in-charge, Bahrain Air in Kozhikode. There were 150 bookings from Kozhikode to Bahrain today, he said.
I had to reach Bahrain urgently. I've been running a cafeteria there for the last four years. I had reached the airport early in the morning to catch the flight. I'm told by the airline staff that I will get the refund of the ticket amount as well as the taxi fare,'' said P Jaiffer from Pariyaram in Kannur district. The agents are also in a fix. We had purchased 12 tickets to Bahrain from Kozhikode by remitting advance money for today (Wednesday), as is the usual procedure. Now we have to reimburse those amounts to the passengers, without really knowing when will we get the refund of we will get that all,'' said a travel agent at Thaliparambu in Kannur district.
We had a group booking for 48 passengers for February 24. We had paid about Rs 12 lakhs in advance for this. Now we don't know how will we get the refunds,'' said an official of the Kochi-based Alban Travels India.
Bahrain Air was operating 18 services per week from India-five each from Kochi and Kozhikode, and four each from Mumbai and Thiruvananthapuram. Out of these the services from Thiruvananthapuram were cancelled from February 1,'' the former Bahrain Air official said .
Another outgoing official from the airline said from Bahrain that the India sector was the largest segment of operations of Bahrain Air, which started operations in 2008. We have a fleet of five leased aircraft and we operate flights to most of the GCC countries, as well as to Amman, Beirut and Tunisia. We had made some arrangements for passengers who were in transit,'' the officials said over phone from Bahrain.
 http://timesofindia.indiatimes.com/city/kochi/Bahrain-Air-leaves-passengers-stranded/articleshow/18492443.cms
 

Brand Kingfisher crashes to ground zero on flight of trust

The erosion has been steady for the Kingfisher airline brand in the past year or so. From a valuation of about $500 million (or Rs 2,500 crore) two years ago, the brand on Wednesday is down to zero as planes remain grounded, its licence to fly suspended and lenders lose patience with it. Yesterday, a consortium of creditors, led by the State Bank of India (SBI), decided to recall all loans, amounting to Rs 7,500 crore, to the airline operator. This move will include the sale of pledged assets and invoking promoter Vijay Mallya's personal guarantees.
 While the airline's fall from grace has been rapid, the other aspect has been a clear trust deficit it suffers with consumers. According to N Chandramouli, chief executive, Trust Research Advisory, which releases the annual Brand Trust Report, a ranking of brands based on the trust they enjoy among consumers, Kingfisher ranks nowhere among the airline operators in the country. This is in stark contrast to the scenario two years ago, when it led the pack by a
comfortable margin. "On an all-India basis, Kingfisher was ranked 97th in 2011, ahead of Air India. Among carriers, these were the two most-trusted brands in our ranking then. By 2012 and now 2013, Kingfisher has dropped out of the list, while Air India continues to be there, despite having problems of its own. Air India was the most-trusted airline brand in 2012, with an all-India ranking of 150, followed by Jet Airways at 273. This year, IndiGo Airlines, ranked at 104, has emerged as the most-trusted brand, followed by Air India at 145 and Jet at 387," said Chandramouli.
Rival carriers have wasted no time in filling the slot left vacant by Kingfisher in the last two years. "IndiGo wasn't even in the list two years ago; on Wednesday it leads the pack," he added.
 Many factors seem to have worked for IndiGo, say experts, from on-time performance to fiscal discipline and prudence. "All this goes a long way in establishing your credibility with consumers, as well as allied stakeholders," says Nabankur Gupta, founder-CEO, Nobby Brand Architects. Contrast this with the picture that Kingfisher presents and there is hardly anything to write home about, say experts. The debt-laden airline has been grounded since October 2012 and there is no revenue that it earns as a result of this.
 "In my view, the Kingfisher brand hit rock-bottom six months ago when it reneged on its word to pay salaries and other dues," says Harish Bijoor, CEO, Harish Bijoor Consults.
 Despite this, Kingfisher CEO Sanjay Aggarwal has said that the operator hoped to pay employee salaries shortly, besides looking to resume operations this summer.
 http://wap.business-standard.com/wapnew/storypage1.php?id=5&autono=113021400073

KFA's collateral enough to cover dues, say banks Lenders

to Kingfisher Airlines (KFA) are confident the value of collateral available to them, including guarantees of UB Holdings, promoter Vijay Mallya’s personal guarantee and a few properties, are almost enough to cover the Rs 7,000-crore dues.
 SBI Deputy Managing Director Shyamal Acharya said the value of the collateral available was around Rs 6,500 crore, excluding the value of the Kingfisher brand.
 The collateral includes tangible properties like helicopters, real estate such as Mallya’s Goa villa and Kingfisher House in Mumbai’s Andheri area, besides corporate guarantees of UB Holdingsand the pledged shares of United Spirits which banks plan to sell by the end of this quarter after transferring those to their names.
 At a meeting attended by four members of the lenders’ consortium on Wednesday, a day after the banks decided to recall the loans given to the troubled airline, they also decided to jointly move the debt recovery tribunal to avoid delays.
 State Bank of India — the leader of the consortium — has now formed a sub-panel comprising representative from Punjab National Bank, IDBI Bank and Bank of India. “The panel has been set up to take legal advice and initiate appropriate actions for recovery,” Acharya said.
 But legal experts say the recovery process is going to be a long one. While the lenders have recourse to KFA’s primary assets, the process of having the guarantor to pay up the loans has to be through a legal process. “The guarantor can surely go in for a stay plea, saying it has not been given enough time, and the process can be protracted,” an expert says.
 Another says, statutory dues, including employee provident fund, insurance, service tax and income tax, will have to be cleared before meeting banks’ demands.
 The opinion, however, is divided. Some corporate lawyers say banks could invoke the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities (Sarfaesi) Act to recover their funds from Mallya.
 “The banks can simply issue a notice to the defaulter and go ahead and sell assets. There is no need to go to the court,” says corporate lawyer R S Loona. As far as pledged shares are concerned, Loona says banks can sell the shares to recover loans, without taking recourse to the Sarfaesi Act.
http://www.indiaeveryday.in/finance/fullnews-kfas-collateral-enough-to-cover-dues-say-banks-1023-5096661.htm

Kingfisher Airlines to lose International Air Transport Association membership

MUMBAI: In a double whammy for Vijay Mallya-promoted Kingfisher AirlinesBSE -4.91 %, the International Air Transport Association (IATA), a body of the world's commercial airlines, informed KingfisherBSE -4.91 % of terminating its membership from the body if the airline fails to take to the skies again, people in the direct know of the matter said.
IATA's move comes close on the heels of the lenders of the debt-laden airline deciding to recall loans from the airline, which has been defaulting on interest for over six months. What prompted the airline body to take cognisance of the matter is the fact that Kingfisher's IATA Operational Safety Audit (IOSA) is about to expire within this month.
According to a source, the airline has not made any effort to keep the audit ongoing (as it is not flying), thus initiating this move by IATA.
 Airline companies have to undertake an IOSA audit, which has a validity of two years. This audit evaluates operational and control systems of the airline and is mandatory for airlines that are IATA members that fly international routes and those airlines that are part of any alliances.
"Kingfisher does not have a valid air operating permit and is not current on its IOSA audit as it is not flying anymore and this is the reason why IATA would look at termination of membership as a progression," said a source, who did not wish to be identified. IATA declined to comment.
"Everybody could see this coming. The issue will get escalated because of the challenges that Kingfisher is facing with its lenders," he added.
In a letter written in the first week of February, IATA wrote to Kingfisher an advance intimation and Kingfisher has not responded to this letter till now.
Kingfisher can again be a member if it fulfils the conditions laid down by IATA and flies again. Kingfisher technically can be an IATA member till March 31 this year but without an IOSA audit, this membership does not hold ground.
 http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/kingfisher-airlines-to-lose-international-air-transport-association-membership/articleshow/18490687.cms

Domestic airlines may now get to choose remote routes

NEW DELHI: Domestic airlines will soon be able to fly to remote areas of their choice, that too, with financial help and freebies from the government, as the civil aviation ministry has decided to do away with an archaic policy mandating the carriers to fly to certain far-flung regions.
The new policy, which will be submitted to the aviation ministry on February 15, lays down setting up of a Rs 350-400-crore fund to aid airlines that choose to connect remote regions of the country for the first three years. It is envisaged to get Cabinet clearance for it by April-end.
The old Route Dispersal Guidelines (RDG) categorised the seven metro cities (that have most traffic) in Category I, the northeast and the islands in Category II, whereas all other small cities were put in Category III.
It is mandatory for airlines to deploy 50 per cent of their Category I (metro) capacity to be used on Category III routes (small towns) and 10 per cent on Category II routes (north-east, Lakshadweep and Andamans).
"Today's Route Dispersal Guidelines (RDG) have the inherent flaw of forcing something down someone's throat. Now, airlines will decide where they want to go. Routes will be put up for bidding and the airline requiring the least financial assistance would win it," a senior official in the civil aviation ministry told ET.
The government has earmarked 40 Tier II and III towns, which have airport infrastructure ready to commence air connectivity upfront, while another 40 towns, where connectivity could begin in the near future have also been identified, the official added.
Meanwhile, state governments have agreed to underwrite some percentage of the flown seats in order to enable air connectivity.
"The government will also ask states to provide water and power to airport free of cost in order to promote regional connectivity," the official added.
Apart from these, there are additional discounts for promoting regional connectivity, which will also apply. For example, there are no airport charges for 70-80 seater (up to 40 tonne) aircraft. The Airports Authority of India (AAI) is also ready to scrap navigation charges under this new scheme to promote regional connectivity. The cost to upgrade the latter 40 airports will also be met by the AAI.
Experts call this new policy a win-win for all as there is no obligation on airlines. AAI will generate revenues from currently unused facilities and consumers will be better connected with more choice.
"It seems to be an effective mechanism for ensuring connectivity as there is motivation in terms of subsidy and other benefits. It sounds like the Universal Service Obligation fund like in telecom where a part of operators' revenue goes for subsidising remote-area connectivity," Mritunjay Kapur, country MD at Protiviti Consulting, said. http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/domestic-airlines-may-now-get-to-choose-remote-routes/articleshow/18492088.cms

Kingfisher has to ensure safe, viable service for licence renewal: Ajit Singh

With Kingfisher lenders deciding to start the process of recovering Rs7,500 crore outstanding loans from the grounded airline, the government today ruled out renewing its licence unless it ensures a safe and viable service.
"Unless the Directorate General of Civil Aviation (DGCA) is satisfied that the airline can provide safe and viable service, there is no question of renewing the licence," Civil Aviation Minister Ajit Singh told reporters here.
He said the government cannot do much in Kingfisher's case.
"What the airline does with the banks is between them," Singh said.
After a two-hour-long meeting with the Kingfisher representatives in Mumbai, the bankers had yesterday said they had decided to begin the process of recovering Rs7,500 crore outstanding loans from the grounded airline as the company had failed to provide any specific revival plan.
"We have decided to recall (initiating the recovery process) the loans given to Kingfisher Airlines. However, each bank board will decide the future course of action," Shymal Acharya, Deputy Managing Director (Mid-Corporates) of SBI, which is leader of consortium of lenders, had told reporters in Mumbai.
Besides five bankers led by SBI, the meeting was attended by the airline's management, including CEO Sanjay Agarwal and UB Group President and CFO Ravi Nedungadi.
The decision came even as Kingfisher Chairman Vijay Mallya had given an assurance to Kingfisher employees on the issue of clearing their salaries for 11 months and restarting operations with the forthcoming summer schedule.
http://www.dnaindia.com/india/report_kingfisher-has-to-ensure-safe-viable-service-for-licence-renewal-ajit-singh_1799700

three years, a third of global air passengers will be from Asia-PacificThiruvananthapuram

Asia-Pacific passenger traffic is projected to grow at a compounded annual growth rate (CAGR) of 6.7 per cent during 2012-16.
The International Air Transport Association has forecast that this will represent 33 per cent of global passengers in 2016. This will make the region the largest market ahead of North America and Europe, according to V.K. Mathews, Executive Chairman, IBS Group.
Based here, IBS Software is a leading player in the global travel, transport and logistics sector. Asia-Pacific, West Asia and Africa are all high-growth areas for both passenger and cargo traffic, Mathews said.
International freight demand is expected to grow 3 per cent during 2012-16. International cargo demand will rise 4 per cent. Africa is forecast to report the strongest passenger growth with 6.8 per cent CAGR.
CARGO GROWTH
West Asia is expected to have the third fastest growth rate at 6.6 per cent.
Freight demand will grow at 4.9 per cent, strongest among the regions. These represent a fantastic opportunity for transformational partner such IBS, Mathews said. “We are in talks with several airlines from these regions not only in the cargo space but also for passenger services, airline operations, MRO (maintenance, repair and operations) and domain-centric IT services. “I expect a sizeable chunk of our business from these regions in the next 2-3 years.”
 IATA-mandated e-freight will help eliminate paper from air cargo process. The ultimate goal is to significantly enhance logistics efficiency in terms of improving cost, quality, throughput and pace.
 A key component is digital air way bills, Mathews said.
IATA has set a target of having 100 per cent electronic air way bills by 2015. Flagship IBS product iCargo supports messaging requirements mandated by e-freight, Mathews explained. Being fully Web-based and browser-driven, iCargo becomes an enabler of e-processing of shipments. It reduces paper documentation and trims costs associated with message interchange while enhancing quality of data captured.
 http://www.thehindubusinessline.com/industry-and-economy/logistics/in-three-years-a-third-of-global-air-passengers-will-be-from-asiapacific/article4407988.ece

Emirates hopeful of doubling seats offered in IndiaDubai

Dubai-based Emirates Airlines is keen to operate more flights to India. The airline is eagerly hoping to get to do so after the air services talks between India and the United Arab Emirates (UAE).
“India is a huge market for Emirates, but the seats and number of cities to which we are allowed to operate are constrained (at the moment),” President Tim Clark said while launching a new concourse dedicated to the superjumbo aircraft, Airbus A380, at the Dubai Airport on Sunday.
He said that Emirates was keen on at least doubling the number of seats it could offer in the country and add another five to six cities, which could take the number of seats the airlines offers to over one lakh a week from about 54,200 now and the number of cities in which it is present to 16 from 10 currently. Clark hoped that if the bilateral talks were concluded successfully, it would not be only one airline from the Gulf which would stand to benefit. Emirates is the largest foreign airline operating in India.
The comments come against the backdrop of the much-anticipated stake sale of Indian carrier Jet Airways to the Abu Dhabi, UAE-based Etihad Airways. Recently, Etihad CEO James Hogan confirmed that the airline was carrying out due diligence that could lead to acquiring a stake in the Indian carrier. While details of the deal have not yet been made public, it is expected that Etihad will acquire a 24 per cent stake in Jet Airways. The Centre for Asia-Pacific Aviation estimates that the acquisition could be valued at up to $330 million.
As regards labour mobilisation in India, he said that it had attained new dimensions and the large number of people moving in and out of the country made it an important market for them. Describing India as a vibrant and hugely populated country, Clark said Indian passengers remain largely underserved.
“If people want to come in and do business with you, why would you (Indian Government) stop that?” Clark asked. Clark also said that the company’s revenue was poised to grow at 18-20 per cent for the fiscal ending March. He added that their situation looked promising and the company is likely to end the fiscal with more cash.
http://www.thehindubusinessline.com/industry-and-economy/logistics/emirates-hopeful-of-doubling-seats-offered-in-india/article4407990.eceIn

IndiGo in talks with ATR to buy small turbo-prop

Delhi-based low-cost airline IndiGo is said to be in discussions with the European aircraft manufacturer ATR for acquiring small turbo-prop aircraft.
 Sources told Business Line that the airline could acquire up to 50 aircraft and is said to be in initial discussions for the possible purchase.
Airline officials were not available for comment.
At the moment, the airline has a fleet of 61 Airbus A-320 aircraft . More regional flights The proposed acquisition could facilitate the launch of more regional flights, something which the Ministry of Civil Aviation is keen to promote.
 The news of IndiGo planning to acquire ATRs comes at a time when the airline is facing problems from the Government in importing 16 A-320 aircraft, which form a part of the original 100 aircraft for which it already has in-principle approval. http://www.thehindubusinessline.com/industry-and-economy/logistics/indigo-in-talks-with-atr-to-buy-small-turboprop-aircraft/article4408157.ece

Delhi Aerocity projects: Hotels body takes up clearance issue with Aviation MinisterMumbai

The Federation of Hotel and Restaurant Associations of India (FHRAI) has sought the intervention of the Civil Aviation Minister on the delay in clearances to hotels in Delhi’s Indira Gandhi International Airport ‘Aerocity’.
 Vivek Nair, President, FHRAI, in a meeting with Minister for Civil Aviation Ajit Singh sought his intervention in the undue delay in issuing completion certificates and other clearances to hotels in Delhi’s upcoming hospitality district.
 As many as 13 hotels are being built in the Aerocity, at a combined project cost of approximately Rs 10,000 crore. The hotels, which include the J.W Marriott, will together contribute 5,500 “much-needed” additional rooms to the Capital’s limited inventory of 11,000 in the branded segment and generate direct employment for several people.
The construction of some of these hotels is either already complete or at an advanced stage of completion. “An inordinate delay in their commissioning would not only cause colossal financial losses to the individual developers, but also put in peril the vision of establishing a world-class hospitality hub, which was conceived as an integral component of the ambitious modernisation programme of the Delhi International Airport,” the association said in a statement.
 FHRAI said that the hotels were being developed according to the approved master plan and requisite statutory clearances had already been obtained, including the no-objection certificate from the Airports Authority of India, prior to commencement of construction four years ago.
“To impose structural modifications or alteration of building plans at this late stage, ostensibly to allay perceived security concerns, would be unreasonable and impractical. Moreover, it has already been clarified that all buildings in the area will incorporate modern security and surveillance infrastructure,” the statement added. http://www.thehindubusinessline.com/industry-and-economy/delhi-aerocity-projects-hotels-body-takes-up-clearance-issue-with-aviationaircraftminister/article4407791.ece?homepage=true&ref=wl_home

Emirates Airlines’ North India Regional Manager resigns

Vinay Malhotra, Regional Manager, Emirates Airlines, North and East India and Nepal, has put in his papers.
Malhotra, who has been looking after commercial operations of the Dubai-based carrier in North India for over eight years, is expected to leave the airline by the end of the month.
Delhi and Kolkata, the two Indian stations which are directly under Malhotra, account for 40 of the 185 weekly flights that Emirates operates from here. Malhotra’s responsibilities in the airline include overseeing the airport, cargo, engineering as well as commercial operations of the airline in North and East India and Nepal.
 Incidentally, the news of Malhotra leaving comes within days of the airline Chief Executive Officer, Tim Clark, telling media persons in Dubai that the airline was keen to not only increase the number of weekly flights it operated to India but also add to the cities here to which it operated. At present, Emirates operates to 10 cities and is keen to operate to at least five to six more cities
http://www.thehindubusinessline.com/industry-and-economy/logistics/emirates-airlines-north-india-regional-manager-resigns/article4408102.ece

Banks may recall loans of Rs 7,000 cr to Kingfisher

In what could be the end of the road for the beleaguered Kingfisher Airlines, a consortium of 17 banks is considering recalling loans aggregating Rs 7,000 crore to the private carrier.
Bankers described the consortium’s decision as unanimous. Loan recall normally triggers initiation of recovery proceedings.
 Despite several rounds of meetings over the last year or so, the management of the country’s once second-biggest airline did not come up with any concrete plan of action for pumping in funds to get the grounded airline up and flying, said the bankers.
 According to Shyamal Acharya, Deputy Managing Director, State Bank of India, the bankers’ consortium has run out of patience.
“We (the full consortium of banks) first met in December. After that, there were two small group meetings. The consortium has given the airline almost two months time but they have not been able to come up with any concrete development on any front.
 “The consortium felt that it will be difficult to give the airline any more time, so it is a case for terminating the relationship,” said Acharya. As giving a loan is a decision of the bank’s board, recalling the loan is also its decision. So, each bank will brief its board about the position and a final decision will be taken by the consortium in the next 7 to 10 days.
On the basis of today’s decision, Acharya said, if the bankers decide to recall the loans, legal action will follow.
Kingfisher brand value
Recovery proceedings against the airline could be initiated under the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Debt Recovery Tribunal.
 “When advances are called off, banks will try to realise whatever securities are available with them… If you take the personal guarantees, if you take the brand value of Kingfisher and everything, then, it is more than the value of what is total outstanding,” said Acharya.
 Asked if banks will suffer any losses, he observed that in any recovery process, there is definitely a ‘hair-cut’ but it is difficult to say how much.
http://www.thehindubusinessline.com/companies/banks-may-recall-loans-of-rs-7000-cr-to-kingfisher/article4408174.ece?homepage=true

Tiny "fibers" may have played role in 787 battery failure, NTSB says

The U.S. National Transportation Safety Board is investigating whether tiny fiber-like formations, known as dendrites, inside lithium-ion batteries could have played a role in battery failures on two Boeing Co 787 Dreamliners last month.
 Dendrites - just one of several possible causes under investigation by the agency - accumulate as a battery is charged and discharged, and can cause short circuits, according to battery experts.
"As part of our continuing investigation, we are looking at whether dendrites may or may not have been a factor," Kelly Nantel, director of public affairs for the NTSB, told Reuters in an email.
The Wall Street Journal reported on Monday that the NTSB was looking into dendrites, suggesting that investigators were looking at the tiny deposits as a major element in the probe.
Nantel said the NTSB has not ruled out any potential causes and that dendrites are "one of many things we are looking at" in determining what caused a battery aboard a parked Japan Airlines 787 to catch fire in Boston on Jan. 7.
"We are still considering several potential causes for the short circuiting" in the sixth of eight cells in the battery on the JAL plane, Nantel said.
NTSB Chairman Deborah Hersman said last week that a short circuit in the lithium-ion battery had caused the fire.
JAPAN PROBE  The Japan Transport Safety Board (JTSB) is investigating a second 787 battery incident that prompted an All Nippon Airways plane to make an emergency landing in western Japan on Jan. 16. That battery showed signs of overheating.
Air safety regulators worldwide later grounded all 787s until the cause and a solution are found.
Boeing did not immediately respond to a request for comment. The planemaker completed what it called an uneventful test flight of a 787 on Saturday, its first since the lightweight, carbon-composite aircraft was grounded.
Nantel said other factors under investigation include the state of charge of each cell and the method and delivery of that charge, contamination, electrode folds, wrinkles and pinches, "and the assembly of the cells and battery."
The NTSB is also looking at "the total design of the battery, including the physical separation of the cells, their electrical interconnections, and their thermal isolation from each other," she added.
Shares in GS Yuasa Corp, a Japanese firm that makes batteries for the 787, slipped 0.3 percent to 329 yen in Tokyo on Tuesday, underperforming a 2.4 percent gain on the benchmark Nikkei.
http://www.reuters.com/article/2013/02/12/boeing-dreamliner-battery-dendrites-idUSL4N0BC1RF20130212

Airlines tap Kumbh demandBy increasing the number of flights

to Varanasi, airlines are trying to cash on travel demand for Mahakumbh.

 SpiceJet will add three flights this month to fly seven daily services between Delhi and Varanasi till March 17. GoAir plans to operate four to five special flights on the route during the same period.

 The Kumbh Mela is expected to draw close to 100 million visitors in all, including pilgrims, politicians, celebrities and corporate leaders, from around the world.

 The demand for travel is highest on the six days when pilgrims take a holy dip in the river Ganga.

“We have added flights on the Delhi-Varanasi route till March 17. On an average, we get 85 per cent loads on the route and now the flights are going full. It is a strong sector for us,” said a SpiceJet executive.

 The airline uses both 737s and turboprop Q400s on the route. Besides, it has introduced two daily flights for the Delhi-Allahabad sector to cater to the increased demand.

 Air India operates an extra flight on the Delhi-Allahabad route on Sundays.

 Though GoAir does not have a regular service to Varanasi, it will be flying four to five flights on the route, using an Airbus A320 plane.

 “We have sought permission from the Directorate General of Civil Aviation for the additional flights and hope to begin from February 18,’’ said a GoAir executive.

 http://www.business-standard.com/article/companies/airlines-tap-kumbh-demand-113021201544_1.html

AI to sell or rent its prime realty to raise Rs 1,000 cr in FY14State-owned

Air India expects to raise around Rs 1,000 crore by the end of the next financial year (March 2014) through monetisation of five of its prime properties across India.
 These are land beside Baba Kharak Singh Marg in this city, Sterling Apartments in Mumbai, the Air India colony in Kolkata, land on the Sowripalayam road in Coimbatore and some land in Chennai. In addition, four-odd floors of its office in South Mumbai’s Nariman Point have been leased to State Bank of India.
 This programme was to have got going this year but it appears the ownership documents of a fifth of the properties are not available, delaying the sale plan. However, AI has combined the targets for 2012-13 and 2013-14.A senior government official said, “We are expecting to get the registration of the Baba Kharak Singh property in February. For all the other four properties, the registry is in our name only.”
 DTZ, international property consultant for AI’s land monetisation, is working on how best to proceed, by sale or renting it out. As the property is government-owned, the final decision on monetisation will go through the airline’s board, the aviation ministry and the cabinet, the official added.
 Asset monetisation in this financial year has been hinged heavily on the Baba Kharak Singh Marg property but the government could not sell it as the property was not in its name.
 Said another senior official, “We bought the property for Rs 15 crore in 1983. However, it took us time to take possession, as there were many encroachments on it. An IOCL (Indian Oil Corporation Limited) petrol pump was the last encroachment and cleared just before the Commonwealth Games in 2010.”
 Asset sales are critical to turning around the airline, which has debt of Rs 43,000 crore and made losses continuously for four years. Raising Rs 5,000 crore over the next 10 years by asset sales is part of the financial restructuring plan.
 A plan to auction a 1,000-odd pieces of art work to gather funds is also not moving ahead. Their cataloguing has not taken place, though a panel of experts was appointed for the job in November.
 “The airline management has asked this committee to evaluate each art work over a period of three months, so that their monetary value and importance can be determined. We have yet to figure out the total number of paintings, as they are spread in different offices,” said a senior AI official.
 http://www.business-standard.com/article/companies/ai-to-sell-or-rent-its-prime-realty-to-raise-rs-1-000-cr-in-fy14-113021201535_1.html

Opposition walkout over plans to set up CIAL-model water Co

The Assembly drowned in uproar and witnessed a walk-out on Tuesday over the UDF Government’s plans to establish a Cochin International Airport Ltd (CIAL) -model drinking water company in the state.
The Opposition leaders alleged that the company was intended to replace state-run Kerala Water Authority (KWA) and gift drinking water supply on a platter to private monopolies.
Although Chief Minister Oommen Chandy and Water Resources Minister P J Joseph voiced assurances that the new company would not encroach upon the KWA turf, they did not have a plausible answer as to why the KWA itself should not be entrusted with the new job.
The company would supply drinking water in jars, according to Joseph, but he fumbled for an answer when the Opposition wanted to know the status of the KWA’s own bottled drinking water project, announced years ago.
The Opposition staged a walkout after the Speaker rejected an adjournment motion on this issue and the government’s failure to adequately combat drought. K V Chenthamarakshan, who sought leave for the motion, said that the government was attempting to transform drinking water, a fundamental right of every citizen, into a commodity such as petrol and diesel.
“Instead of rectifying defects in the KWA projects, the government was merely interested in business,” he said. Chandy said that the company was modelled on the water supply projects in West Bengal, and, in phase I, would supply water in jars at 20 per cent of the market cost. “If found successful, phase II would focus on industrial water supply sans subsidies,” he said. CPM’s A K Balan said that the KWA was supplying water at 4.2 paise per litre. “The new company would be using the same water sources of the KWA, hindering the latter’s operations,” he said. Opposition Deputy leader Kodiyeri Balakrishnan said that the government should strengthen the KWA instead of forming  new companies with private participation.
Chandy justified the new company saying it was  modelled on the CIAL, a nationally accepted example. But CPI’s C Divakaran said that drinking water could not be equated with airports. “It is not viable in Kerala. The government should drop the project. We will not allow it,” he said.
http://newindianexpress.com/states/kerala/article1461481.ece

Banks decide to start recovery of Kingfisher Airlines' loans

Kingfisher Airlines' lenders have decided to start the process of recovering Rs 7,500 crore outstanding loans from the grounded carrier, saying the company has failed to come up with any specific revival plan.
MUST READ: Kingfisher's woes won't end with just fund infusion
"We have decided to recall (initiating the recovery process) the loans given to Kingfisher Airlines. However, each bank board will decide the future course of action," Shymal Acharya, the Deputy Managing Director (Mid-Corporates) of State Bank of India (SBI), which is leader of consortium of lenders, told reporters after a two-hour meeting of bankers with company representatives on Tuesday.
"The airline made no perceptible progress since we met last time in December in terms of an action plan they were supposed to submit. We had given them many chances to come back with a specific positive action plan about their restart plans. But they could not come up with any concrete action plan so far," Acharya said.
"So the consortium today felt that having waited so long, there is no reason for us to give further time to the company," he added. "Once a bank decides to recall advances, obviously it needs to take legal advice for realisation of securities."
He admitted that banks will have to take a "hair cut" in realisation of securities.
"Normally, whenever a loan is called off, there is definitely a haircut (the difference between the present market value of collateral and value assessed by the lender). But how much is the haircut, is difficult to quantify,"
 http://businesstoday.intoday.in/story/banks-decide-to-start-recovery-of-kingfisher-airlines-loans/1/192328.html

Banks to recall loans given to Kingfisher

The consortium of lenders led by State Bank of India (SBI) has taken an in principle decision to recall the loan given to troubled Kingfisher Airlines, thus putting a possible end to the Kingfisher saga.
Seventeen banks have an exposure of Rs.7,000 crore to Kingfisher Airlines. The banks have now said the Kingfisher loan matter had reached a dead end.
“We gave them enough time. They are not saying anything new or credible. Banks did not find any progress by the airline’s promoters to restart operation or get money on the table. We gave them over two months but nothing concrete happened. Banks have run out of patience. Consortium members felt that the matter has reached a dead end. Here is a case for may be for the termination of relationship (with Kingfisher). So we decided to consider recalling the loan,” said Shyamal Acharya, Deputy Managing Director, State Bank of India.
“Now each bank will go back to their respective boards to take the final approval for the recall of loan. I think the final decision will come in 10 days after which the recovery proceedings will start in due process of law,” Mr. Acharya told waiting journalists at the Trident Hotel in Mumbai.
Banks had to consider this drastic step as the airline’s management could not come up with any credible revival plan. Its flying licence has been cancelled since January 1, 2013. It stopped flying since October 1, 2012, following a strike.
“The Kingfisher management only said that they were trying to revive the airline and waiting for money to come from the Diageo deal. They said it was a complex deal and it would take time. But we were not satisfied as Kingfisher is a different company nothing to do with Diageo deal,” Mr. Acharya said.
With this, banks will start recovery proceedings to get whatever possible from the troubled airline. Apart from mortgaged shares of United Spirits and other group companies, Kingfisher Airlines Chairman Vijay Mallya has given personal guarantee for the loans. The Kingfisher brand with a previous valuation of over Rs.4,000 crore has been mortgaged with the banks. The Kingfisher Villa in Goa and Kingfisher house near the Mumbai airport are mortgaged. Bankers did not quantify as to how much they could recover but they are prepared to take a haircut.
UB Group CFO Ravi Nedungadi, who participated in the meeting along with Kingfisher Airlines CEO Sanjay Aggarwal, said that he would not negotiate (with the banks) through the media.
http://www.thehindu.com/todays-paper/tp-business/banks-to-recall-loans-given-to-kingfisher/article4409546.ece