Aranmula, Kannur airports get the nod

The Central Government has given ‘in-principle’ approval for setting up greenfield airports at Aranmula and Kannur in Kerala, apart from airports at Navi Mumbai and Mopa (Goa), President Pranab Mukherjee said on Thursday.  He was addressing a joint session of Parliament on the first day of the Budget Session.
The Kerala Government had earlier given the go-ahead to the country’s first private international greenfield airport project at Aranmula in Pathanamthitta district, which is being developed by KGS Aranmula International Airport Ltd.
The proposed airport is coming up about 80 km away from Sabarimala Temple and 130 km from Thiruvananthapuram.
The greenfield airport in Kannur  is being developed as a joint venture project on the lines of the Cochin International Airport Ltd.
“India is the ninth largest civil aviation market in the world. Kolkata and Chennai airports now have new terminals,” the President said.
“My government has given ‘in-principle’ approval for setting up greenfield airports at Aranmula and Kannur in Kerala, apart from airports at Navi Mumbai and Mopa,” he added.
Mukherjee said his government was committed to revive the economy and initiate steps to boost investment and economic activityhttp://newindianexpress.com/nation/article1474171.ece
Aranmula airport: VS flays reference in President’s addressOpposition leader V S Achuthanandan on Thursday condemned the inclusion of Aranmula airport project  in the President’s address to Parliament. The reference has been made disregarding the fact that the proposed project is on  encroached government land and is being implemented flouting all norms, Achuthanandan said.
 He said in a statement that Aranmula airport project could not be compared with the Kannur airport project which is  implemented under the leadership of the State Government abiding by all norms.
It’s Politically Motivated: Sugathakumari Pathanamthitta: Poet and environmentalist Sugathakumari termed the President’s declaration in the Parliament, on the proposed Aranmula airport project, as politically motivated.
She said in a statement that the government should be blamed for misguiding the President. She said that nine existing laws will have to be violated for setting up the airport.
Meanwhile, CPI district secretary P Prasad alleged that the declaration proves that UPA chairperson Sonia Gandhi and her son-in-law Robert Vadra are behind the promoters of the project. http://newindianexpress.com/states/kerala/article1474256.ece
 

Would have been nice if Tatas set up own airline

Ajit Singh on AirAsia dealNEW DELHI: Civil Aviation Minister Ajit Singh said he was "not opposed" to Malaysian airline AirAsia's alliance with the Tata Group to set up a new low-cost carrier in India, but indicated he would have preferred the country's pre-eminent conglomerate to start its own airline.
 In his first comments on the development, Singh also said the main purpose of a recent policy change in the civil aviation sector, which allows foreign airlines to own up to 49% stake in an Indian carrier, was to increase investment in existing Indian carriers. "I'm not opposed to the (AirAsia-Tata) alliance... The idea of the policy was to increase investment in Indian carriers. It would have been nice had the Tatas, with their kind of resources, started a new airline," he told ET in an interview on Thursday.

The proposed alliance among AirAsia, Tata Sons and the New Delhi-based Bhatia family (the Bhatias are relatives of steel baron LN Mittal), if approved by the government, will introduce a formidable new entrant into India's airline industry, where the dominant narrative has been one of pain, exemplified by the collapse of one-time leader Kingfisher AirlinesBSE 3.02 %.
 But the minister's comments may be interpreted by some as a less-than-enthusiastic welcome to the first planned foreign investment in India's aviation sector after last September's change in foreign holding guidelines.
 The ministry's action on the AirAsia-Tata proposal in the weeks ahead has the potential to become a test case of the government's stance towards foreign investment in general and the airline industry in particular.
 AirAsia is expected to own 49% of the venture, with Tata Sons and Bhatia-controlled Telestra Tradeplace holding 30% and 21%, respectively.
 Industry experts say the entry of a player like AirAsia-Tata combine with deep pockets, high staying power, and record of running a hugely successful regional airline could shake up Indian aviation.
 New Carrier to Face Old Challenges
 Asked what the entry of a new airline, especially a globally successful one like AirAsia, would do to existing Indian carriers, most of which are battling high costs and thin margins amid an aggressive fare war, the minister said the new carriers would also face the same challenges as the existing ones.

"Indian businessmen are second to none. The new airline will have to deal with the same cost structures as IndiGo or SpiceJetBSE -1.98 % or anyone else for that matter. So why the worry?" he asked. Singh said India needed more homegrown airlines flying to far-away destinations rather than more short-haul carriers. "We need more of Air India and Jet Airways. Aren't IndiGo and SpiceJet already going to Bangkok and Malaysia? We need to fly to Johannesburg, Chicago and the likes and not to another small country."

Civil aviation ministry officials said the main objective of the policy change last September was to attract large international airlines to invest in Indian carriers so that these could fly to distant destinations rather than those within a range of six hours, once again raising questions whether the proposal for the new airline will pass smoothly. The Tata Group, which founded and ran Air India before it was nationalised in 1953, has long been interested in the aviation business, but its plans to enter the sector have been thwarted twice, once in the 1990s and again in 2000.

The group's impending entry this time around elicited a mixed response from existing players. The chief of one private sector airline said the move to allow foreign carriers to invest in Indian airlines was aimed at improving the lot of existing airlines. "Does it match with that objective? Many airline operators are suffering now," this person said, asking not to be named.
 Another airline boss said he was sure "the government will look very closely at this development and be careful in allowing capacity addition by the new entrant" while the CEO of Jet AirwaysBSE -4.41 % was more resigned. "New foreign airlines setting up shop in India as a result of the new policy was expected. Long term, the new policy will have positive impact. But there will be pain," said Jet CEO Nikos Kardassis.
 http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/would-have-been-nice-if-tatas-set-up-own-airline-ajit-singh-on-airasia-deal/articleshow/18608070.cms

Imperial class

Whenever the Indian prime minister travels abroad, he invariably takes a chartered Air India Boeing 747, which is re-configured for his needs; that means a private cabin, while accompanying officials travel first class, and the media posse travels business class (upgraded from economy after there were protests). A second plane stands by, in case the first develops a snag. The comparisons with British Prime Minister James Cameron are telling. Cameron, too, chartered a plane, a Virgin Atlantic, because unlike British Airways aircraft, it was configured with only two classes — business and economy. British prime ministers, it turns out, are only allowed to fly business class. Even if they are offered free upgrades to first class, they are obliged to decline. Those in attendance on him have to fly economy. Meanwhile, the 100 British businessmen who accompanied Cameron came along with him in the chartered plane (and presumably defrayed the cost of the charter). In India’s case, any business delegation timing its visit with the prime minister’s has to fly separately
http://www.business-standard.com/article/opinion/imperial-class-113022100806_1.html

Air India's 'FDI'

Meanwhile, foreign direct investment (FDI) by airlines was very much the subject of discussion at a press conference held by Civil Aviation Minister Ajit Singh earlier in the week. Talking in the context of an impending deal between Jet Airways and Etihad Airlines, he pointed out that of the full-service airlines that remained to get FDI, Air India was one. But, he added with a smile, “As far as Air India is concerned, it cannot get a better FDI deal than what it is getting from the Government of India.” That set everyone laughing but there was more than a grain of truth to the minister’s statement. After all, which foreign airline would give the flag carrier Rs 30,000 crore as a bailout package as the government did in 2012?
http://www.business-standard.com/article/opinion/air-india-s-fdi-113022100805_1.html

AirAsia's early flight plan

The Tata group’s deal with AirAsia to launch a low-cost airline is credited as new scion Cyrus Mistry’s first big deal but it is possible that the talks started at least three years before, when Tony Fernandes’ Malaysian low-cost carrier launched AirAsia X, its long-distance service, in India. At the time, the shrewdly maverick Fernandes told Business Standard as an aside that he was due to meet Ratan Tata the next day, though he insisted it was a courtesy call. “Nice guy?” he asked lazily. Evidently, he thought so going by the deal he’s just signed with the group.
 http://www.business-standard.com/article/opinion/airasia-s-early-flight-plan-113022100804_1.html

Smaller lenders to recover Kingfisher dues by March 31

The big boys of banking are struggling to recover dues from grounded  Kingfisher Airlines but some of the relatively smaller lenders have proven smarter and are on way to recover their loans by March 31.
 Oriental Bank of Commerce, United Bank of India and Corporation Bank, all state-owned, had lent to the troubled airline for the purchase of an aircraft from Airbus. The loans were for ‘pre-delivery payment’, meaning 10-15 per cent of the price of the aircraft was given by these banks to Kingfisher, to place the order. Airlines work on a model of sale and lease-back of planes, meaning, buy a plane, sell it immediately and then take it back on lease. These banks, with combined exposure of around Rs 150 crore, almost equally shared, communicated to Airbus for recalling the loan after Kingfisher failed to service it.

Banks have to serve a 60-day notice, from the time the loan slips to the non-performing category, for recalling it. Bankers said at a recent meeting with Airbus officials, the OBC-led consortium asked the plane manufacturer to find a buyer for the aircraft ordered by Kingfisher. These banks expect to recover their dues by selling the aircraft by March 31. This particular loan to buy aircraft was not a part of the Rs 7,000 crore of loans to Kingfisher in which 17 banks are involved. Recently, State Bank of India, leader of the consortium, said they’d all decided to recall the Kingfisher loans, become a non-performing asset for the banks about a year before. The banks also said KFA’s collateral, pledge shares and promoter’s personal guarantee covers about Rs 6,500 crore of the dues.
 http://www.business-standard.com/article/finance/smaller-lenders-to-recover-kingfisher-dues-by-march-31-113022100695_1.html

Tata Sons caps exposure in airline JV at Rs 49 cr

A day after making clear its exposure in the proposed airline joint venture with AirAsia was to be only a “financial investment”, Tata Sons on Thursday capped its equity investment in the company at Rs 49 crore ($9 million).

The memorandum of agreement signed among AirAsia, Tata and Telestra Tradeplace — the three shareholders — says the “obligation of Tata Sons to subscribe to the shares of the JV will be limited to an aggregate $9 million by way of equity investment.”

It adds Tata Sons will not be required to provide any guarantee letter of comfort or other direct or indirect shareholder support in any form in relation to any debt or further equity funding for the JV.

A Tata spokesperson on Thursday said: “Tata Sons has no comments to offer on the clauses of the FIPB application. It is premature to provide any guidance for investment in the future.”

Even so, experts say this means Tata Sons’ liabilities, if the airline company closes down, would be limited to $9 million. This also implies Tata Son’s stake, currently at 30 per cent, would come down if the proposed company’s equity capital is increased. “This would protect Tata’s liabilities in the new venture. If the venture gets debt-trapped, Tata will not be responsible for paying back the debt, as its total investment has a ceiling. If the new venture gets fresh funding, Tata’s equity holding will naturally come down,” says an analyst with a management consulting firm.

The board of the proposed new joint venture would have six members. With four of its directors Indian citizens, the proposed firm’s FIPB application is in consonance with the current FDI policy.

AirAsia will have two board members — Founder Tony Fernandes and Kamarudin Bin Meranun. Tata Sons will also have two — R Venkataramanan and Tata Sons’ chief legal & group general counsel, Bharat Vasani. Telestra Tradeplace, with 20 per cent stake, will be represented by Arun Bhatia. The sixth board member shall be an Indian national who will be appointed non-executive chairman of the board upon agreement of the three shareholders. Fernandes is trying to rope in Ratan Tata for this position.

In its application to the Foreign Investment Promotion Board, the three partners have committed they will, not later than fourteen days, infuse Rs 50 crore ($9 million), in the proportion of their shareholding, to set up the joint venture. Within 45 days of receiving the no-objection certificate to set up a new airline from DGCA, it will further recapitalise the JV with an additional $21 million, in the proportion agreed among the partners.

The proposed company plans to provide low-cost scheduled passenger services, operating single-aisle narrow body aircraft flying under four hours.
 http://www.business-standard.com/article/companies/tata-sons-caps-exposure-in-airline-jv-at-rs-49-cr-113022100680_1.html

Fresh hurdles for Jet-Etihad deal

Fresh hurdles have emerged in the way of the Naresh Goyal-promoted Jet Airways’ deal with Etihad Airways, with the Abu Dhabi-based airline putting a host of conditions. These include an option to buy up to 49 per cent stake in the firm.

Sources close to the deal say, besides a higher stake (earlier, the negotiations were on for sale of up to 24 per cent), Etihad has asked for its representation on the board of the Indian airline, in sync with its shareholding. It wants operational control over the airline, as well as its fleet acquisition plans. The West Asian carrier has also sought protection under a Bilateral Investment Promotion and Protection Agreement (Bipa), arguing it does not want to face a situation similar to what telecom giant Etisalat faced.

At present, Goyal holds 80 per cent in Jet Airways — 79.99 per cent through Tailwinds Ltd, a firm based in the Isle of Mann, and 0.01 per cent directly. The remaining shares are held by the public and FIIs.

While Jet did not respond to a query on this, an Etihad spokesperson said: “As part of the deal process, a senior delegation, including President & CEO James Hogan and board members, flew to India last week and met senior Indian aviation officials. We are currently undertaking due diligence, which will be presented to the Etihad board. If, or when, we make an investment decision, we will announce that, in line with the appropriate regulatory and commercial requirements.”
 The first indications that the deal was still not close to being sealed had come when Hamed bin Zayed al-Nahyan, the chairman of the airline, had said in the UAE on Sunday that the deal needed to be revised.

Commerce Minister Anand Sharma was in Dubai this week, where the UAE government agreed, in principle, to sign a Bipa to push trade between the two nations.

The Jet-Etihad deal was expected to be the first investment by a foreign airline company into an Indian one after the government permitted foreign carriers to hold up to 49 per cent stake in domestic airlines. However, Tata Sons and AirAsia yesterday announced forming a JV to set up an airline. In this proposed JV, AirAsia, promoted by entrepreneur Tony Fernandes, is to hold 49 per cent.

The Indian partners — Tata Sons with 30 per cent and Telestra Tradeplace’s Arun Bhatia with 21 per cent — will represent the Indian partners.

For Jet, the deal would have brought the airline a much-needed cash infusion of around $330 million, while for Etihad, with less than two per cent share of the international market from India, the deal would have helped it offer seamless services to passengers from India through Abu Dhabi to different markets in the world.
http://www.business-standard.com/article/companies/fresh-hurdles-for-jet-etihad-deal-113022200049_1.html

Special court issues summons to Vijay Mallya over Kingfisher tax dues

BANGALORE: In fresh trouble for the head of crisis-ridden Kingfisher Airlines, Vijay Mallya, the special court for economic offences here has issued summons to him on an income tax department criminal case for not remitting to government the tax deducted at source from salaries of its employees.

The court's action came after it took cognizance of the offence under sections 276B and 278B of the I-T Act, 1962, for not remitting Rs 74.94 crore deducted as TDS in 2009-10 fiscal and Rs 23.70 crore imposed as interest for not meeting the deadline stipulated for payment.

Section 276B entails rigorous imprisonment for a minimum of three months and a maximum of seven years with fine.

The development spells fresh trouble for Mallya, whose airline is tottering with a net loss of Rs 755.17 crore for the third quarter ended December 31, 2012, a period when it did not operate a single flight.

The I-T officials on Tuesday had filed the criminal complaint against the airline and Mallya for failure to remit TDS for the fiscal 2009-10.

The I-T department had also complained that Kingfisher owed the government Rs 401 crore as TDS amount, deducted from salaries of its employees and from payments made to others in the financial years 2008-2012.

The next hearing will be on April 19. Carrying a debt of nearly Rs 8,000 crore and accumulated loss and liabilities of a similar amount, Kingfisher has been grounded since October 1 last year after its pilots and engineers went on a strike over non-payment of salaries
http://timesofindia.indiatimes.com/india/Special-court-issues-summons-to-Vijay-Mallya-over-Kingfisher-tax-dues/articleshow/18607802.cms

AirAsia to tie up with Tata Sons for new airline in India

MUMBAI/CHENNAI: This is a big fat wedding in India's turbulent skies. One of the airline industry's most aggressive entrepreneurs and AirAsia founder Tony Fernandes has brought the Tata Group back into the airline industry after 60 years. The India-origin Fernandes has also drawn in the family of Amit Bhatia, son-in-law of steel tycoon Lakshmi Mittal, pulling off a coup in the cash-strapped domestic aviation industry.

Asia's biggest low-cost carrier, the Kuala Lumpur-based AirAsia, is floating a joint venture with Tata Sons, the holding company of India's largest conglomerate, and Telestra Tradeplace, an investment vehicle of the Bhatia family, to launch a new airline in India. AirAsia will have 49% stake, Tatas 30% and Bhatia will hold 21% in the company, which will be headquartered in Chennai.

The JV hopes to start operations in the last quarter of this year under the AirAsia brand, the 48-year-old AirAsia CEO Fernandes said in a late-evening conference call with the media. AirAsia's entry is expected to shake up India's airline sector, which has seen airfares shoot up in recent past. The airline already flies into several south Indian cities, linking them with major Asian hubs at competitive fares. This is the first foreign direct investment (FDI) after the government relaxed ownership rules, allowing foreign carriers to hold 49% stake in a domestic airline. "We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia's low fares," Fernandes said. AirAsia operates multiple joint ventures in Asian markets.

"We hope to have regulatory approvals in place by the fourth quarter of this year. AirAsia typically invests anywhere from $30 million to $50 million to start an airline," he said, adding that Tata Group chairman emeritus Ratan Tata would be representing the Indian side. Fernandes shares a personal rapport with the 75-year-old Tata, a fact that triggered the deal.

The JV marks the Tata Group's return to the aviation business, something which it pioneered in the country as well as Cyrus Mistry's first big move after becoming group chairman in December last year. The group bowed out of aviation when India nationalized Tata Airlines, which is now Air India, in 1953.

The $100 billion group that has its finger in almost every business from outsourcing to steel, luxury cars and salt has always desired to have a presence in the aviation sector. It explored returning to the sector at least twice in the past two decades, when it joined hands with Singapore Airlines, first to float a new airline, and then, to bid for Air India.

But the government's flip-flop policies and political opposition buried the group's desires until Fernandes approached Ratan Tata with a proposal late last year. A Tata executive said that the group's participation in the venture is that of a financial investor and it will not be running the show.

Analysts said India's robust air travel demand was the key to draw AirAsia and other investors to the domestic aviation story. Amit Bhatia is a co-investor with Fernandes in sporting ventures, which include owning European football team Queen Park Rangers. Estimates suggest that the number of domestic air travellers will triple to 159 million by 2021. "Hugely exciting venture involving my family, Tata Sons and the coolest guy around, Tony Fernandes," Bhatia tweeted.

The parties have made an application to the Foreign Investment Promotion Board for approval, after which they require the blessings of the civil aviation ministry. They will then have to approach the airline regulator for an air operator's permit.
http://timesofindia.indiatimes.com/business/india-business/AirAsia-to-tie-up-with-Tata-Sons-for-new-airline-in-India/articleshow/18601005.cms

Diamond heist at Brussels airport

SURAT: Armed gunmen robbed diamonds worth close to Rs 300 crore from a Zurich-bound plane that had landed at Brussels airport on Monday.

Industry sources said that gunmen targeted Brink Security Agency's delivery staff that was unloading the safes full of diamonds on to the plane at 8 pm on Monday.

Dinesh Navadia, president, Surat Diamond Association (SDA) told TOI, "Information gathered from our office in Antwerp suggest that the robbers have escaped with $50 million worth of diamonds in the safes of Brink's security. The diamonds were to be delivered at Zurich and most of it belonged to Indian diamantaires in Antwerp."

"We are yet to get any confirmation from Antwerp as to how much these diamantaires have lost in the robbery," added Navadia.

A DTC sightholder from Antwerp asking anonymity told TOI, "It is still unclear as to who have lost their diamonds in the heist. But, the security agency provides insurance for the diamonds in transit and the diamantiares need not have to worry. But, there is a serious question on the safety of the diamond parcels in Beligum after the Brussels airport diamond heist."

In the global diamond business, Antwerp plays a role that is similar to that of New York in international banking and finance. Thanks to the Indians, especially Gujarati diamantaires, who control up to 80 per cent of Antwerp's $45 billion worth of annual diamond trade, a figure that was associated with the Jews only two decades ago.

However, the dominance of Gujarati diamanaires in Antwerp's diamond business seems to have shifted the attention of international mafia in the UK. In the past two years, two sensational diamond heists, targeting Gujarati diamantaires from leading DTC sightholder companies have been reported where diamonds worth over Rs 200 crore were robbed off by an organized gang members.
http://timesofindia.indiatimes.com/city/surat/Diamond-heist-at-Brussels-airport/articleshow/18585292.cms

Boeing to offer redesigned 787 batteries: Washington, Feb 21:

US aerospace giant Boeing is set to propose repairs to the battery problems in its grounded 787 Dreamliner jets that could have them fly again within two months.
The New York Times, citing industry and federal officials, today said Boeing has narrowed down the ways in which the lithium-ion batteries could fail, concluding that they would be safe to use after making changes such as adding insulation between the battery cells.
Boeing commercial airplane division chief Raymond Corner plans to unveil his plans in a meeting tomorrow with the head of the Federal Aviation Administration, Michael Huerta, according to the Times.
Although Huerta is unlikely to immediately approve the changes, the meeting is set to launch a “high-level discussion” on the standards Boeing must meet to have its planes back in flight, the newspaper said.
According to The Times, federal officials said the aircraft could be back in the air by April “if the fixes check out.”
A series of problems with Boeing’s next-generation aircraft sparked multiple probes around the world and the grounding of the entire Dreamliner fleet last month.
The 50 Dreamliners in service were grounded on January 16 after a battery fire on a parked Japan Airlines plane and battery smoke on an All Nippon Airways flight forced an emergency landing.
Two days later, Boeing suspended deliveries of the aircraft until further notice, but continued production.
The US National Transportation Safety Board, the FAA, and Japanese and French authorities are investigating the cause of the battery incidents.
The Dreamliner, a long-haul fuel-efficient airliner built using the latest composite materials, is key to Boeing’s business strategy as it battles to be top dog in the virtual duopoly it shares with rival Airbus
http://www.thehindubusinessline.com/industry-and-economy/logistics/boeing-to-offer-redesigned-787-batteries-report/article4438582.ece

Jet Air engineers 'go-slow' forces flight cancellationsMumbai, Feb 21:

Even as its senior executives are reported to be in Abu Dhabi to further negotiate with Etihad on the proposed stake sale to the Gulf carrier, Jet Airways engineers are on a “go-slow” mode following the failure of talks over wage hike and arrears, sources said.
Following this, the airline had to cancel two flights from Chennai to Madurai and Coimbatore, they said.
The engineers’ move comes weeks after a section of the airline’s technicians registered their protest on the same issue by sporting black bands.
“A section of engineers are on a go-slow mode as their negotiations with the management on wage hike and arrears failed,” Jet Airways sources told PTI here.
If more engineers join the protest, it may have a bearing on the operations in a big way in the days to come, airline sources added.
The Jet Airways spokesperson was not available for comments.
The engineers’ action comes amidst the airline’s ongoing talks with the Gulf-based Etihad for a stake sale, which has been going on ever since the government allowed FDI in the sector in September.
The labour unrest, led by pilots and engineers, had been brewing at the carrier for the past one month or so, demanding wage hikes and payment of their arrears, pending since 2011.
However, the pilots have so far refrained from resorting to any industrial action to press for their demands.
The airline had last month signed a wage hike tripartite agreement with its employees and officers association, which claims to represent around 7,500 ground staff, including officers, giving them a salary raise of up to Rs 18,000 per month.
 http://www.thehindubusinessline.com/industry-and-economy/logistics/jet-air-engineers-goslow-forces-flight-cancellations/article4438989.ece

Pricing of tickets will be the key, says AirAsia’s FernandesNew Delhi, Feb

Get set for more price wars in the domestic civil aviation market. Air Asia looks at the pricing of its tickets as the most important key differentiator between it and the existing airlines in the Indian market, low-cost airline promoter Tony Fernandes said on Thursday.
“The purchase price will be the number 1 differentiator (from other airlines). Besides, the strong brand image and the wide network will also make a difference,’’ Fernandes told newspersons in a telephonic interaction.
Fernandes, however, declined to get into specifics of his latest ventures pricing policy.
The interaction was conducted a day after news broke that AirAsia had teamed up with Tata Sons and Arun Bhatia to set up a domestic airline.
Indian airline
Fernandes said that the new airline will be an Indian airline with Indians having a majority representation on the board. “We hope to be able to announce the Chief Executive Officer in the next two-to-three weeks,’’ he said.
Asked whether AirAsia’s entry will lead to the demise of some existing airlines, Fernandes shot back by saying: “businesses put themselves out of business and it is not competition which puts them out. If an airline is rightly capitalised, follows the right business model and the right people are running it, there should be no problem.’’
Foreign investments
He was of the opinion that this is a “renaissance period’’ with the Indian Government keen to attract investment in the domestic airline sector.
The new airline is likely to be called AirAsia, Fernandes indicated, pointing out that though the Tatas had a tie-up with Starbuck, the new venture did not carry the Indian company’s name.
On the issue of whether he was aware of the Ministry of Civil Aviation being “`upset’’ at not being informed about the airline’s plans, Fernandes said: “We have gone in with our eyes open. We are comfortable with our approach.’’
AirAsia operations
AirAsia plans to begin operations in India probably in the fourth quarter with three-to-four Airbus A-320 aircraft and an initial investment of $30-50 million.
“Initially we will have a staff strength of about 300 people. But as we grow we will add to the number. As a thumb rule generally 20 people are employed with every new aircraft added to the fleet,’’ he said
http://www.thehindubusinessline.com/industry-and-economy/logistics/pricing-of-tickets-will-be-the-key-says-airasias-fernandes/article4438630.ece

Cochin airport posts 5% rise in cargo volumeKochi, Feb. 21:

Focus on non-perishable goods helped Cochin airport register a five per cent increase in the volume of cargo handled during the first nine months of the current fiscal.
 From April to December 2012, the airport handled 34,305 tonnes of cargo, against 32,950 tonnes in the same period a year ago. Of this, international cargo accounted for 28,660 tonnes (exports 21,265 tonnes and imports 7395 tonnes) and domestic cargo 5,645 tonnes,

Traditionally, airports in Kerala handle perishable goods such as vegetables, fruits, fish and flowers, mainly for export to Gulf countries. “Our efforts to diversify to general cargo helped us maintain this marginal growth in volume,” said a senior official of Cochin International Airport Ltd, the company which runs the airport.
General cargo including electronic goods, spices, rubber products, textiles and ayurvedic medicine, now account for 35-40 per cent of the total volume. Considering the general trend in air cargo traffic, a five per cent increase in volume is reasonable, the official pointed out.
Earlier, more than 70 per cent of the international cargo handled by the airport included perishable items such as vegetables, fruits, raw fish, flowers and frozen shrimp.
The official said setting up of a Perishable Cargo Centre with a capacity to store 25,000 tonnes is expected to help improve cargo volume in this category too. The centre would be beneficial to agricultural and seafood exporters in the region.
Establishment of plant quarantine station at the airport recently also enabled quick turnaround of perishable cargo. The airport also plans to leverage the multimodal transport facility available at Kochi. The Vallarpadam terminal at Kochi offers the potential to enable the transfer of cargo from sea to air and vice versa, the officials said.
 http://www.thehindubusinessline.com/industry-and-economy/logistics/cochin-airport-posts-5-rise-in-cargo-volume/article4439450.ece

Pilot call for Ratan

After retiring from Tata Sons, Ratan Tata could probably turn his hobby of flying into a profession, if AirAsia promoter Tony Fernandes has his way.
During a media conference call on Thursday, Fernandes said in a lighter vein that he had asked Ratan Tata to become an A-320 pilot for his airline.
“If he flies for us, we can probably save some costs and maybe charge a bit more,” Fernandes said.
75-year-old Ratan Tata holds a pilot’s licence and is known to fly various aircraft in the Tata Group’s fleet.
However, pilots say it will be near impossible for Ratan Tata to fly a commercial A-320 flight for AirAsia. A commercial flight carries paying passengers.
“Ratan Tata has crossed the permissible age of 65 years, beyond which no one is allowed to fly a commercial flight in India. Being an accomplished pilot, he could probably undergo the stipulated training to fly an Airbus 320, clear the medical examination and then apply for special permission to the Directorate-General of Civil Aviation to operate a special flight like an inaugural flight,” said a pilot with a private airline.
http://www.thehindubusinessline.com/industry-and-economy/logistics/pilot-call-for-ratan/article4439663.ece?homepage=true