Rationalise tax regime for ATF

The Economic Survey has called for rationalising the tax regime for aviation turbine fuel (ATF).

“There is need to rationalise the tax regime particularly value-added tax on ATF which is in the range of 20-30 per cent in most of the states,” the Survey said. “The high operating cost environment owing to high and rising cost of ATF coupled with rupee depreciation is making operations unviable for carriers in India. Fuel prices for the airlines in the country are higher by at least 40 per cent than in competing hubs in the region such as Singapore, Hong Kong, and Dubai and this needs to be rationalised. The Ministry of Civil Aviation is of the view that ATF should be included under the declared category of goods under the relevant provision of the Central Sales Tax Act so that a uniform levy of 5 per cent is achieved. A high tax regime for aviation in general and ATF in particular will reduce the wider economic benefits available from aviation, resulting in a negative impact on economic growth and overall government revenue bases,” the Survey states batting for rationalisation of ATF prices. The Survey said that out of Rs.65,000 crore investment envisaged at airports during the XII Plan, Rs.50,000 crore is expected from the private sector. However, it noted that domestic passenger traffic and cargo throughput had declined during January-November 2012, to 106 million and 2.03 million tonnes respectively.

http://www.thehindu.com/business/Economy/rationalise-tax-regime-for-atf/article4459272.ece

 

Why Etihad deal is a big positive for Jet

The Jet Airways stock jumped 19 per cent on news the company has sold (and leased back for own use) three pairs of Heathrow Airport parking slots at London for $70 million to Etihad Airways and that talks on equity participation by the Abu Dhabi-based carrier are on track.

 The company, which had reported losses in some of the recent quarters, needs the money to reduce its debt and improve cash flows. Experts say the slot sale as well as the deal when it comes through, will be positive for Jet Airways. Says Mehraboon Irani, principal & head – private client group, Nirmal Bang Securities, “The deal, if it comes through, will be positive for Jet Airways as it will partly address balance sheet concerns and boost international revenues. Jet is desperate (due to cash flow issues and leveraged balance sheet) to do the deal.”

 Equity participation by Etihad is likely to result in operational benefits as well for Jet Airways. Says Deven Choksey, managing director of KR Choksey, “As with its other minority stakes in airlines, Etihad wants to leverage its resources which will result in cost reductions both on an operational (sharing infrastructure and fuel management) as well as at the financial levels by bring down the cost of funds.”

 While there are positives, analysts are divided with Bloomberg data showing five analysts have a ‘buy’, while two have a ‘hold’ and four have a ‘sell’ on the stock.

 Among those who are bearish, an analyst at a leading domestic brokerage firm, says, “The deal, when it comes through, will bring in $300-400 million, which will only partly tackle the $2.5 billion debt on its books. Expect a dilution upwards of 25 per cent given the equity base expansion post the stake sale. Finally, today’s sale and lease back means profitability (due to increase in rentals) is likely to be sacrificed in the short term.”

 Jasdeep Walia of Kotak Institutional Equities in a note on February 26 says the deal is absolutely essential if the Jet Airways business is to remain viable. “Jet has large debt repayment of $400 million in FY2014 (similar amount in FY2013) out of which $200 million is on account of working capital. Also, there are overdue bills of Rs 500 crore, which need to be cleared,” he says. He believes that sale and lease back transactions, while they will release funds to repay debt, will also increase costs. Refinancing loans at 13-14 per cent is not an option, he says.  Wednesday’s news about Jet also suggests that the company will be getting a soft loan of $400 million at about three per cent in annual interest rate. If these turn out to be correct, along with the Heathrow deal, fund flow concerns would ease for Jet. However, analysts say there could be an upgrade for the stock if there are regulatory changes.

 Says Irani of Nirmal Bang, “While the government has taken many positive steps (FDI, direct ATF import), the rationalisation of VAT for aviation turbine fuel at four per cent will be key to helping the airline keep costs under check.

 On the operational front, however, business dynamics continue to operate against the airline. Fuel prices are up nine per cent over the last two months and the situation is worsened by a falling rupee, increasing fuel (which accounts for 45 per cent of Jet’s operating costs) and aircraft leasing expenses.

 

HSBC Global Research analysts, Rajani Khetan and Mark Webb, in a recent report say the fuel price increase is a negative for earnings prospects unless it is passed on without impacting demand. “Indian air traffic demand is price-sensitive and fare increases over the past three quarters have caused air travel demand to fall,” they add. Domestic traffic has fallen for seven months year-on-year during May to November 2012. Further, with the pricing discipline being broken, a spate of discount offers could impact yields, which have stayed strong over the past three quarter

http://www.business-standard.com/article/markets/why-etihad-deal-is-a-big-positive-for-jet-113022700530_1.html

Agatti air service resumes

Alliance Air, the wholly-owned subsidiary of Air India Limited, will resume operations from Kochi to Agatti and back effective March 1. The ATR aircraft will operate on Mondays, Tuesdays, Thursdays and Saturdays.

 The flight will depart Kochi at 10.20 hrs and arrive at Agatti at 11.40 hrs, a release said. Departure from Agatti will be at 12 hrs on the same day and arrival at Kochi at 13.20 hrs./

http://www.business-standard.com/article/companies/agatti-air-service-resumes-113022700607_1.html

Jet-Etihad deal back on runway

Talks of a deal between Naresh Goyal-promoted Jet Airways and Abu Dhabi-headquartered Etihad Airways were back on track on Wednesday, with Etihad announcing it was buying Jet’s three flight slots at London’s busy Heathrow airport for $70 million (Rs 371 crore).

 This was significant, given that differences had emerged between the two airlines last week over operational control and the quantum of stake Etihad would buy in Jet, virtually jeopardising the deal.

 Under the terms of on Wednesday’s first stage of the deal, after selling the slots to Etihad, Jet would lease those back from it and continue to fly to London. Etihad, on the other hand, would use those as a collateral for an undisclosed amount of low-interest loan it would give Jet to finance Goyal’s expansion plans. Analysts say the loan amount could be close to $400 million (Rs 2,120 crore), at an interest rate of only three per cent.

 Confirming the transaction, Etihad on Wednesday said in a statement: “The deal (sale and leaseback of slots) strengthens the existing commercial relationship.” The airline also made it clear that its negotiations for a possible stake purchase in Jet was back on track, saying: “Etihad continues to progress on discussions about further investments in Jet Airways.”

 A senior Jet executive said: “It is a sale-and-leaseback arrangement to get low-interest loans to pay some expensive rupee loans.” He, however, denied the loan amount was $400 million.

 The second stage of negotiations focus on the final extent of equity stake Etihad would pick in Jet — whether it would be 24 per cent, or 49 per cent, or an option to raise stake to the maximum permissible 49 per cent at a later stage. Also being negotiated are the composition of the board and Etihad’s representation on it, and the likely division of operational control.

 The talks between the two sides had got stuck last week after Etihad put some fresh conditions for the deal. It had sought the option to increase its stake in the Indian airline to 49 per cent, instead of just the 24 per cent being discussed earlier. It had also wanted control over Jet’s fleet acquisition policy, besides board representation in sync with its investment in the Indian carrier.

 

The conditions had come close on the heels of Malaysian low-cost carrier AirAsia announcing a joint venture with Tata Sons in which it would hold 49 per cent stake and operational control. It is believed the Jet-Etihad negotiations now are to reach a middle ground on these issues.

http://www.business-standard.com/article/companies/jet-etihad-deal-back-on-runway-113022800030_1.html

Turkish Cargo signs pact with IBS Software for iCargo

IBS Software has signed a 10-year, ‘multimillion dollar’ contract with Turkish Airlines for providing software support to its cargo service.

 The deal was announced in Istanbul, said Sankalp Saxena, President and Head, Aviation operations services, IBS Software.

iCargo is the flagship product of IBS for the air cargo operations.

iCargo supports requirements of airline freight business providing Web-enabled features that optimise operations, enhance profitability and provide scalability.

 iCargo will power Turkish airline’s air cargo movement worldwide and replace the legacy system.

 SINGLE UNIT

This compares well with an average of three per cent growth for the other European airlines. Under the deal, the airline sales/inventory, terminal operations/handling, ULD (unit load devices) management and revenue accounting systems will be integrated into single solution.

 This single suite will improve access to real-time information and actionable intelligence for users at all levels across locations.

 Over 20 global airlines have opted for iCargo to manage their mission critical cargo logistics.

 LEADING CLIENTS

They include All Nippon Airways, British Airways, Qantas, South African Airways, Lufthansa Cargo and Nippon Cargo Airlines.

 iCargo will replace the TACTIC system holding the mainframe substructure in use for last 20 years, said Temel Kotil, President and Chief Executive Officer, Turkish Airlines.

 Coming close on the heels of the Lufthansa deal, this is another significant step for IBS, said Sankalp Saxena.

 http://www.thehindubusinessline.com/industry-and-economy/logistics/turkish-cargo-signs-pact-with-ibs-software-for-icargo/article4459414.ece

Lower taxes on jet fuel

Domestic flying could become cheaper if the Economic Survey’s suggestion for rationalisation of the tax regime, particularly value added tax on aviation turbine fuel, is taken forward in the Union Budget.

The VAT component on ATF varies from 20-30 per cent in various States.

The high cost of ATF, which is almost 40 per cent higher than what airlines pay in Singapore, Hong Kong and Dubai, is one of the reasons for airlines in India being in poor financial health. ATF constitutes 40-45 per cent of the operating costs of domestic carriers as compared with 20-25 per cent globally.

It is believed that the Survey gives indication about measures to be included in the Union Budget which is to be presented on Thursday.

In December last year, Civil Aviation Minister Ajit Singh and Petroleum Minister Veerappa Moily had planned to jointly approach the Finance Ministry to convince it to notify ATF as a ‘declared good’ which will attract a uniform five per cent sales tax throughout the country.

 “A high tax regime for aviation in general and ATF in particular will reduce the wider economic benefits available from aviation in general and ATF in particular will reduce the wider economic benefits available from aviation, resulting in a negative impact on economic growth and overall Government revenue bases,” the Economic Survey tabled in Parliament on Wednesday points out.

 The Survey adds that it is equally important to have transparent pricing regime for ATF in India.

http://www.thehindubusinessline.com/industry-and-economy/economy/lower-taxes-on-jet-fuel/article4458537.ece

Deal alive: Etihad buys Jet’s 3 Heathrow slots for $70 m

and lease back agreement signed on February 26,” Etihad said in a statement.

The deal further strengthens the existing commercial relationship which started in July 2008 and makes provisions for code share between the two airlines. “Etihad Airways continues to progress discussions about further investment in Jet Airways,” it said.

 Neither carrier has revealed the contours of the deal nor when it is likely to be concluded. The Centre for Asia Pacific Aviation (CAPA) feels Etihad will acquire 24 per cent in Jet Airways for some $330 million.

Jet Airway officials did not respond to phone calls or text messages.

According to industry analysts, the three London slots may be used by Jet Airways to launch more flights. Etihad is unlikely to use these slots for now. Also, with the Government withdrawing all international slots, including to London, allotted to Kingfisher Airlines, Air India and Jet could become eligible for these slots as the only Indian carriers operating to London.

K. G. Vishwanath, Jet’s Senior Vice-President, Commercial Finance and Investor Relations, had recently said that by the second or the third quarter of this financial year, the airline will start getting back all the Boeing 777s leased to Thai Airways.

“We can either give the aircraft on lease to some other airline and there are discussions which are happening, or even operate them on our own,” he had said. The aircraft can be used to operate flights to London and possibly onwards from there.

http://www.thehindubusinessline.com/industry-and-economy/logistics/deal-alive-etihad-buys-jets-3-heathrow-slots-for-70-m/article4458417.ece?ref=wl_government-and-policy

 

IBS Software inks a multi-million deal with Turkish Cargo

Trivandrum, India: 27 February, 2013: Leading IT solutions provider to the global aviation

industry, IBS Software, has signed a multi-million dollar, ten year contract with Turkish Cargo, the

cargo division of the Turkish Airlines, for the implementation of its iCargo solution. This was

announced in Istanbul after both parties signed on the dotted lines earlier in the week. The solution

will power the airlines’ entire air cargo movement worldwide and replace the existing home grown

legacy system that was in use so far. Turkish Airlines is one of the fastest-growing airlines in the

world, with a staggering 39% growth in air cargo FTK (freight ton kilometer) against an average of

3% growth for other European airlines.

Under the deal, the airline sales/inventory, terminal operations/handling, ULD management and

revenue accounting systems will be integrated into a single, comprehensive solution. By bringing the

entire cargo management system under a single application suite, real time information and

actionable intelligence access for users at all levels across all global locations will be improved

considerably. This will ensure stronger decision making capabilities and vast improvements in the

overall utilization of perishable assets leading to enhanced revenue generation and operational

efficiency.

iCargo is an integrated solution that supports the requirements of airlines’ freight business providing

enhanced web-enabled features that optimize operations, enhance profitability and provide

scalability. The solution helps manage the increasing volumes of cargo movement requirements of

freighters, ground handling agents as well as airports. Over 20 global airlines have opted for iCargo

to manage their mission critical cargo logistics including leaders like All Nippon Airways, British

Airways, Qantas, South African Airways, Lufthansa Cargo and Nippon Cargo Airlines.

“We have chosen IBS from the world’s leading air cargo IT software, as a result of a detailed and

intensive study period of two year. iCargo offers all the requirements of air cargo processes under

one platform, is endowed with wide ranging functionalities furnishing flexibility and with its

substructure reinforcing the new technologies. iCargo will replace the TACTIC system holding the

mainframe substructure which was used on Turkish Cargo processes since approximately 20 years.

This decision constitute a major milestone which will enlighten the way of Turkish Cargo for the

realization of its objectives and for the development of the fast mounting business volume on the air

cargo sector.” said Temel Kotil Ph.D., President & Chief Executive Officer, Turkish Airlines.

“Coming close on the heels of the Lufthansa win, this deal with one of the fastest growing airlines in

the world is another significant step for IBS to establish itself as the market leader for IT solutions to

the air cargo industry. We are indeed delighted to partner with Turkish Cargo as they look for

overhauling their IT systems in their quest for staying ahead of competition” said Sankalp Saxena,

President & Head of Aviation Operations Services, IBS Software Services.

About THY

Established in 1933 with a fleet of only five airplanes, Star Alliance member, Turkish Airlines is today

a four star airline with a fleet of 209 aircraft (passenger and cargo) flying to 219 cities around the

world, comprised of 36 domestic and 183 international destinations. One of the fastest growing

airline companies, Turkish Airlines has received several “Passengers Choice Awards” from the

consumer ranking group, Skytrax. Based on 2011 and 2012 results, Turkish Airlines has been chosen

as the winner of “Best Airline Europe”, “Best Premium Economy Seats” for its Comfort Class seats

and “Best Airline Southern Europe”. It has also received awards for its catering and holds a coveted

4-star designation, putting the airline in a small group of top quality carriers. Turkish Airlines was also

given the Skytrax designation of “World’s Best Economy Class On-board Catering” in 2010, and

Skyscanner’s “Best On-board Food 2011”. Long haul Business Class passengers also enjoy the Flying

Chef service on-board.

About IBS

IBS is a leading global provider of new generation IT solutions to the global Travel, Transportation

and Logistics industry. A specialist in the domain, IBS offers a range of products and services that

manage mission critical operations of airlines, airports, oil & gas companies, hospitality industry,

cruise liners and travel agents that help maximize efficiency, improve revenue, manage growth and

reduce costs. SEI CMMI Level 5 and PCMM Level 5 assessed, ISO 9001:2008, TickIT and ISO

27001:2005 certified, IBS operates from 10 business centers in the Americas, Europe, Asia-Pacific

and Middle East & Africa.

http://theloadstar.co.uk/wp-content/uploads/IBS.pdf

Etihad buys Jet’s 3 slots at Heathrow

In a move that could be seen as a step towards its proposed investment plans in Jet Airways, Etihad Airways on Wednesday announced it has paid $70 million (Rs 374 crore at Rs 54 to a dollar) for three slots of the Indian carrier at Heathrow airport in London.

 "Etihad Airways can confirm that it has concluded a transaction with Jet to purchase Jet's three pairs of Heathrow slots for $70 million. The purchase is part of a sale and lease back agreement signed on February 26, 2013," Etihad said in a statement.

 The airline added that Jet Airways will continue to operate flights to London utilising these slots.

 With this announcement, stocks of Jet Airways that has been on a fall for a few days jumped 19.27 per cent during the day's trade to close at Rs 534.85 on the BSE on Wednesday.

 Etihad also said that they are in talks with Jet Airways on a proposed stake sale by the later. "As previously advised, Etihad Airways continues to progress discussions about further investment in Jet Airways," said the statement.

 As reported, Naresh Goyal-promoted Jet Airways is likely to sell 24 per cent stake in Etihad for around Rs 1,600 crore.

 Talks on the deal, which started in September last year, hit a hurdle with the Abu Dhabi-based airline saying that it wanted to relook at its investment plan in the Indian carrier. The reason given for the relook were concerns over investing in the Indian market

  http://www.indianexpress.com/news/etihad-buys-jets-3-slots-at-heathrow/1080785/#sthash.gq9N3CWe.dpuf

Etihad buys three Heathrow slots from Jet Airways

NEW DELHI: Shares in Jet Airways surged as much as 19.7 percent yesterday after TV channel ET Now cited unidentified sources as saying Etihad Airways was close to a deal to purchase a 24 percent stake in the Indian carrier.

 Abu Dhabi’s Etihad has already paid a “token” amount of $70m, and will likely pay $400m in the first tranche of the deal, the channel reported. Etihad said it did not have an immediate comment.

 Indian TV channels said Etihad had bought Jet’s slots at London’s Heathrow airport for $70m, but did not say whether that was a part of the stake buy agreement.

 Jet shares were up 17.3 percent as of 0831 GMT, after having risen as much as 19.7 percent earlier in the day. Shares of smaller rival SpiceJet also surged 9.4 percent to 37.85 rupees.

 The Jet-Etihad deal would be the first since India relaxed ownership rules in September and allowed foreign carriers to buy up to 49 percent in local carriers, which are battling stiff competition and high operating costs.Malaysia’s AirAsia Bhd, Asia’s largest budget carrier, also plans to launch a regional airline in India in a venture with the Tata group, marking a return to aviation for India’s biggest business house, and betting on potential growth despite near-term issues.

 

Etihad, launched in 2003, is on a buying spree to compete with regional rivals Emirates and Qatar Airways. The Gulf carrier has taken stakes in Virgin Australia and Aer Lingus and raised its shareholding in Air Berlin and Air Seychelles.

 Top executives from Etihad and Jet met Indian ministers earlier this month, but the deal faced a set-back later as the Gulf carrier’s chairman said the deal needs to be revised.

 Jet shares have fallen more than 27 percent since then through Tuesday.

 Etihad will have to find a way around Jet’s complicated shareholding structure before a deal can be finalised.

 Tail Winds Ltd, the Isle of Man-based investment vehicle of Jet founder Naresh Goyal, currently holds 79.99 percent of Jet Airways.

 According to Indian rules, foreign companies can hold a maximum 49 percent stake in local carriers, but so-called non-resident Indians like Goyal are exempted.

 Goyal is likely to convert shares owned by its holding company into his personal stake to comply with foreign investment regulations, an Indian government source has said.

http://thepeninsulaqatar.com/business/227254-etihad-buys-three-heathrow-slots-from-jet-airways.html

 

Kingfisher Airlines slides 5 pc; hits lower circuit

MUMBAI: Shares of Kingfisher AirlinesBSE -2.64 % continued its downslide on the bourses today and tanked a further five per cent after the government withdrew international bilateral traffic rights and domestic slots of Kingfisher Airlines.

Spelling more trouble for beleaguered Kingfisher Airlines, the government on February 25 announced the withdrawal of all domestic and international flying slots of the grounded carrier with immediate effect and decided to allot them to other Indian airlines.

Shares of Kingfisher Airlines fell as much as five per cent on the bourses today and got stuck in the lower circuit limit of Rs 10.21 on the BSE.

The stock had witnessed similar fate yesterday, when the company had fallen by 5 per cent to hit an intra-day low of Rs 10.74.

Flying or airport slots are rights allocated to a scheduled airline by an airport operator or government agency, granting the slot owner the right to schedule a landing or departure during a specific time period.

The withdrawal of these slots would make available around 25,000 seats per week for use by other Indian carriers to eight countries -- the UK, the UAE, Thailand, Nepal, Bangladesh, Sri Lanka, Hong Kong and Singapore.

Similarly, the government also decided to withdraw the domestic slots which were allocated to Kingfisher at different airports across the country to mount domestic flights.

The Airports Authority of India (AAI) has been directed to make these slots available to other domestic carriers as per their demand.

 http://economictimes.indiatimes.com/articleshow/18707277.cms

 

Hong Kong’s Cathay Pacific wants to land in more Indian cities

Cathay Pacific is looking to spread its wings further in India by connecting more cities to Hong Kong. The airline recently introduced its four-times-a-week service between Hong Kong and Hyderabad, and increased frequency from Chennai.
With this, the carrier operates 35 flights between India and HK (two daily flights from Delhi, 10 flights a week from Mumbai, daily from Chennai and four a week from Hyderabad).
“Being one of the fastest-growing economies, India is an important market for us, both for passenger and cargo services,” said Toby Smith, General Manager- Product, Cathay Pacific Airways. In addition to connecting with Hong Kong, the new services will also facilitate connecting India with China, Australia and North America via Hong Kong.
Besides, in a bid to enhance its customer experience, the Hong Kong-headquartered Cathay Pacific Airlines has introduced a new ‘premium economy’ class. The new class features wider seats, increased seat pitch (the distance between every two seats in a column) with bigger recline and 10.6-inch personal LCD screen that also comes with a multi-port connector to offer the passenger an option to connect one’s personal devices.
 It has also launched its renovated First Class Lounge – The Wing - at Hong Kong International Airport. Designed by Foster + Partners, The Wing boasts an expanded dining area with a buffet counter that offers a range of appetisers, Asian and Western dishes, and a full-service bar.
“Our target is to be the premium choice of our customers, and we are pleased about the progress we have made so far in this direction,” Smith told this correspondent who went on a familiarisation trip to Hong Kong on the airline’s invitation.
http://www.thehindubusinessline.com/industry-and-economy/logistics/hong-kongs-cathay-pacific-wants-to-land-in-more-indian-cities/article4456068.ece

India pushes for more Singapore, Lanka flights as seats quota peaks

The civil aviation ministry plans to negotiate for additional seat entitlement with the governments of  Singapore and Sri Lanka, enabling Indian carriers to add more flights to these countries, civil aviation minister Ajit Singh said on Tuesday.
 On Monday, the ministry withdrew foreign traffic rights it had granted to Kingfisher Airlines. The UB-group run airline ceased foreign operations last May and its operating permit was suspended in October. With these rights, Kingfisher Airlines was  allowed to Bangladesh, Hong Kong, Nepal, Singapore, SriLanka, Thailand, UAE, Dubai  and Britain. Withdrawal of these rights will release 25,000 weekly seats for other Indian carriers.“We have granted traffic rights to other airlines till winter 2013 and we will first check whether the airlines have commenced operations before approving fresh requests,” Singh said. He added that the seat entitlements available with Indian carriers for Singapore and Sri Lanka are almost exhausted and the government plans to enter into fresh negotiations to seek additional seats. “We will not negotiate with countries until our carriers exhaust their entitlements,” he stated.
 Governments negotiate seat entitlements determining the capacity (number of seats/frequency/destinations) available to airlines of  both countries. These are a part of the air services agreement which the civil aviation ministry signs with the other government. Recently, India and Oman signed an agreement increasing capacity on the sector by 4500 weekly seats.
 “There is a demand for cities like Dubai, Bangkok, Hong Kong and Singapore from Indian carriers,” a civil aviation ministry official said.
 Last November,  Singh gave the nod to Indian carriers to start more foreign flights, allocating additional traffic rights till the winter of 2013. New routes are also being opened up with the ministry giving permission to start services to Rome, Madrid, Barcelona, Moscow, Sydney/Melbourne, Nairobi, Al Najaf (Iraq), Jakarta, Zurich, Ho Chi Minh City and Macao. At present, these cities are not served by Indian carriers. In the last summer schedule, Indian airlines were allowed to operate 1074  international services per week and the number of services have been increased to 1526 for the upcoming  summer schedule and 1695 for the winter schedule.
http://www.business-standard.com/article/economy-policy/india-pushes-for-more-singapore-lanka-flights-as-seats-quota-peaks-113022600300_1.html

Airbus weighs new A350 assembly line on demand for largest model

Airbus SAS (EAD) said it's looking to add another assembly line for the new A350 wide-body jet, a competitor to Boeing Co. (BA)'s troubled 787 Dreamliner, to meet rising demand for the plane's largest version.
 With about 600 orders placed for the A350, due for its first flight this summer before deliveries begin in the second half of 2014, Airbus is looking at adding capacity for the -1000 variant, Chief Operating Officer John Leahy said.
 "I would like to believe that sometime this year we'll be able to make a decision to do that," Leahy said yesterday in an interview in Singapore. Production of the baseline A350-900 began in October, with the smaller -800 due to enter service in 2016 followed by the -1000 in 2017.
 Airlines' quest to cut fuel bills will keep driving sales of more-efficient models such as the A350 and the Dreamliner, said Leahy, who predicted that Boeing will find a fix for the 787's battery faults. Airbus said Feb. 15 it would revert to traditional batteries on the A350, dropping the lighter lithium- ion cells tied to the 787's grounding, to help stay on schedule.
 "It's unfortunate that these things happen but safety is the most important thing," Leahy said. "When incidents happen like what they had with the battery we have to put the fleet on ground till you get it fixed. We're talking about going back to a proven nickel cadmium battery technology that would be about 60 kilogrammes heavier. Why take a risk for 60 kilogrammes?"
 Stronger sales
 Boeing is offering a battery redesign for the 787 to answer safety concerns after the jet's grounding on Jan. 16 as a result of incidents in which lithium batteries smoldered and emitted smoke, people with knowledge of the plan said. The U.S. Federal Aviation Administration is reviewing the proposed redesign.
 Leahy, who is also Airbus's chief salesman, said the A350 has been "very popular" in the Asia. Chief Executive Officer Fabrice Bregier said Oct. 23 he was confident Airbus could sell 70 or 80 -1000 variants a year as customers upgrade to bigger jets, compared with a previous planning assumption of 40 or 50. The 350-seat -1000, which has a list price of $332 million, broke a four-year sales drought on July 11 as Cathay Pacific Airways Ltd. of Hong Kong placed an order for 10 aircraft.
 The model has accrued 105 firm commitments in total.
 Toulouse, France-based Airbus is also in talks with several airlines regarding further sales of the A380, Leahy said yesterday, reiterating the company's target of securing 25 new orders for the superjumbo this year.
 "I would like to believe that almost everyone who has it will place orders for more because it's a very cost-effective airplane," he said. "We also see some new customers. One of the reasons why you will see new customers is that airlines are discovering that it takes an A380 to compete with an A380."
http://www.business-standard.com/article/companies/airbus-weighs-new-a350-assembly-line-on-demand-for-largest-model-113022700035_1.html
 

GVK mulls listing of airports biz abroadPrivate infrastructure company

 GVK group is mulling over options to list their airports business abroad to bring in more cash to the company.
Though the plans are yet to be confirmed, sources indicate that the company has been in talks with stock exchanges abroad to bring in more liquidity options into their airports business. The Indian infrastructure sector, which has seen some of its worst times due to persistent macroeconomic conditions is expecting investments to the tune of $1 trillion to fund projects during the 12th Plan (2012-17) period.
The company will follow another infrastructure major, GMR which listed its subsidiary at the Singapore exchanges last year.  According to the Interim report of the High Level Committee in Financing of Infrastructure (Planning Commission) last year, the airports sector alone is expecting an investment of Rs 71,000 crore during the 12th Plan.
Private sector companies have been seeking to increase their participation in government projects. The report also estimates that private sector investment contribution will be as high as 47% to ensure that the infrastructure sector is enabled to add 9.14% (average for 12th Plan) to the GDP as against 7.22% (average in 11th Plan). Added to this is the boost by Civil Aviation Ministry which has sanctioned 15 new airports, of which ‘a majority are by private players’.
Though the company has refused to comment on ‘speculations’ it has been learnt that they have already had first round talks with the Singapore and Tokyo exchanges.
Sources say that they were in only the initial stages and were working to ensure all aspects are covered before they make their decision.
 http://newindianexpress.com/business/news/article1479039.ece

 

-Cargo fraud at CIAL:

 Two accused to turn approversThe CBI has initiated steps to make two accused-V S Suresh of Chalakudy and K M Saju of Kombanad- as approvers in the CIAL cargo fraud case.
The CBI filed an application before the court seeking permission in this regard. Following this, the Muvattupuzha Judicial First Class Magistrate Court recorded the confessional statements of the accused on January 21. According to the CBI, former Customs Assistant Commissioner and two other officials at the Cochin International Airport Ltd conspired to take away the electronic goods of a passenger by flouting the Customs norms. The accused K S Chandrasekharan, former Assistant Commissioner of Customs air cargo was arrested from his residence in Bangalore.
In 2008, Chandrasekharan, the-then Superintendent of Customs M P Savithri and the-then preventive officer P R P Panicker misappropriated three electronic items- a plasma TV, a sound system and mounting brackets worth `90,727. The consignment was in the name of a woman hailing from Thrissur. The woman had abandoned the cargo owing to the heavy duty imposed by the Customs authorities. The accused persons did not either transship the goods back or sent them to the Customs house in Kochi after confiscation for public auction, the CBI said.
According to the CBI, the accused by abusing their official position as public servants conspired with others and in pursuance of the criminal conspiracy forged records and allowed clearance of the consignment in the name of Mulackakudy Kumaran. The value of the consignment was assessed at `30,000 and the duty was calculated at `4,635. The accused paid the duty and took the consignment out of the Customs area.
The CBI submitted before the Ernakulam Chief Judicial Magistrate that the accused had expressed their desire to voluntarily disclose the entire set of facts within their knowledge against all theses accused. “The deposition of the two person who were the employees of Mars Cargo is necessary and will strengthen the case,” CBI Inspector Devaraj submitted.
Considering the submission the magistrate issued summons to the two accused to appear before the court on Tuesday.
http://newindianexpress.com/states/kerala/article1478864.ece

Kingfisher Airlines loses domestic and international flying slots

New Delhi: Spelling more trouble for beleaguered Kingfisher Airlines, Government on Monday announced withdrawal of all domestic and international flying slots of the grounded carrier with immediate effect and decided to allot them to other Indian airlines.
"These traffic rights have been withdrawn from Kingfisher Airlines on account of non-utilisation by the airline. It used to have as many as 126 flying slots for international flights to eight countries which have now been withdrawn," a Civil Aviation Ministry official said.
Flying or airport slots are rights allocated to a scheduled airline by an airport operator or government agency, granting the slot owner the right to schedule a landing or departure during a specific time period.
The withdrawal of these slots would make available approximately 25,000 seats per week for use by other Indian carriers to these eight countries, some of which are much in demand by Kingfisher's Indian competitors, the official said.
Keeping this in mind, the Ministry has decided to allot the international slots, which are decided by the bilateral air services agreement between India and these countries.
The countries to which Kingfisher used to operate are the UK (seven flights each week), the UAE (21 flights per week), Thailand (21 flights), Nepal (seven), Bangladesh (14), Sri Lanka (35), Hong Kong (14) and Singapore (seven).
"These traffic rights were allocated to Kingfisher between 2008 and 2011," the official said.
Similarly, the government also decided to withdraw the domestic slots which were allocated to Kingfisher at different airports across the country to mount domestic flights, he said, adding that the Airports Authority of India (AAI) has been directed to make these slots available to other domestic carriers as per their demand.
When contacted, a Kingfisher spokesperson declined to comment on the development.
In October last year, the Directorate General of Civil Aviation (DGCA) had temporarily suspended the Scheduled Operator Permit (SOP) or flying permit of the Vijay Mallya- promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months that completely grounded its fleet.
The SOP then expired on December 31. A week before this, the beleaguered airline submitted an interim revival plan to the aviation regulator to resume limited operations.
But the DGCA was not happy with the plan. It sought more information on the funding and payment of dues and decided not to allow the airlines to take to air till it met a series of conditions, including payment of dues to its employees and various service providers like airport operators.
Failing to provide any credible input, Kingfisher's lenders -- a consortium of banks -- also decided earlier this month to start the process of recovering Rs 7,500 crore outstanding loans from the grounded airline.
 http://zeenews.india.com/business/news/companies/kingfisher-airlines-loses-domestic-and-international-flying

For AirAsia, it's going to be a fare

gameHis airline has been synonymous with rock-bottom fares that cannot be easily undercut by rivals. So, when Tony Fernandes, chief executive of AirAsia, announced last week that he was setting up a joint venture with the Tatas to enter the Indian skies, no one in the aviation business was amused, except, of course, the millions of passengers who expect the new entrant to unleash a fare war that could force other domestic carriers to follow suit.
 After taking over the near bankrupt airline in 2001, Fernandes changed the rules of the game by challenging Malaysian Airlines with fares of just 1 ringgit (Rs 17.42) from Kuala Lumpur to various destinations in Southeast Asia. It is a strategy which Fernandes has replicated across Southeast Asia. AirAsia's tickets are priced at nearly half (on Kolkata-Kuala Lumpur route) to a sixth (on Singapore-Kuala Lumpur) of its nearest rivals. And the tried and tested strategy is reaping results. The company posted a profit of $291 million in 2011.
 Fernandes,48, who has spent several years in Kolkata, makes no bones that he plans to reprise his winning strategy, which has made him the undisputed king of low-cost carriers in Southeast Asia, this time too. "India is an underserved market where 1 million people travel on trains every day. Price will be our main differentiator," he had said, after the announcement of the deal. He also bluntly added he does not think that any Indian airline has the right cost structure, which could help in stimulating the market. (Click here for graphic)
 Cautious approach
 AirAsia has decided to pick up 49 per cent stake in the proposed joint venture. The Tatas with a 30 per cent stake and Delhi-based businessman Arun Bhatia with a 21 per cent stake will be the other partners. The Tatas, however, have made it clear that they only want to be "financial investors" and their commitment would be capped at $9 million. Obviously, they want to tread carefully considering their earlier attempts to set up a domestic airline have failed to take off due to opposition from local players.

On the ground even Fernandes is being chary as he does not want other competing players to scuttle his plans and prevent him from getting an operating licence. He says he wants to initially invest only $30 million and operate with not more than three or four A-320s. He is also not keen to fly to Delhi and Mumbai from where his rivals in the domestic sector make the bulk of their money, as he thinks the airport costs are way too high for a start-up. For now, he will concentrate on southern and western markets and will think of expanding services to Delhi and Mumbai once those airports have separate terminals for low-cost carriers with lower charges.
 But can this strategy create magic in the Indian skies? If his international tryst with India is anything to go by, he has surely not cracked the Indian market. In 2008, Fernandes stirred the airline industry when he announced that he would fly into India from Southeast Asia. He played on what he knows best —" cutting fares to compete. He offered a direct flight from Kuala Lumpur to Trichy for only Rs 12,000, half of what others were offering. He also shocked the market by offering a one-way Delhi to Kuala Lumpur ticket at a basic fare of Rs 1 (Rs 1,623 after taxes). Consumers, of course, lapped it up.
 Yet, despite these aggressive offerings, AirAsia has not been able to make any dent in the market or sustain these rock-bottom fares. In recent years, the airline has even shrunk its India operations. It has pruned the number of destinations from nine to six and has moved out of key markets of Mumbai and Delhi because of high airport taxes.
 As a result, AirAsia's share in the market in terms of seats on offer on the India-South-East Asia route has fallen from 14 per cent last year to 10 per cent now.
 However, experts say this time round Fernandes is betting on more than just prices to draw in fliers.
 In the last four years, he has worked on a clear strategy to enter the domestic skies. He has announced publicly that his focus will be connecting Tier-II and -III cities, an unserved market where price is the key driver. He has also said he will look at opening up new markets where there is no connectivity (50 per cent of the routes it operates are new routes). Its A-320s, which Fernandes wants to use in India, can fly into 36 airports in the country. Analysts say not flying to Delhi and Mumbai won't be a miss for the airline as those markets are already saturated. Obviously, new potential fliers live elsewhere.
 His entry also comes at an opportune time. In the past one year, Indian low-cost carriers have raised fares by over 20 per cent, bringing them at the level of the traditional full-service carriers. That gives AirAsia a window of opportunity. The airline has some cost advantages which its Indian competitors with smaller operations size do not have. It can, therefore, benefit from the economy of scale. For instance, AirAsia has ordered over 475 A-320s for its global network, one of the largest orders in the world. In contrast, the largest order from India is by IndiGo, which ordered 150 Airbus A-320 family aircraft.
 AirAsia is also likely to get a more attractive price for direct import of jet fuel —"which has been permitted by the Indian government —" in comparison to its competitors because of its sheer volume requirement (it has a fleet size of 117 compared to IndiGo's 64).
 Besides, it has a clear domination in Southeast Asia where it services over 70 cities. It is the second most popular region Indians travel after West Asia and they are increasingly looking at more and more connectivity within the region. AirAsia's wide connectivity within India and an array of destinations in Southeast Asia cannot be matched by any Indian player. The largest Indian low-cost carrier, IndiGo, only operates to Bangkok and Singapore.
 Crowded skies
 However, unlike in Southeast Asia, where it had a first mover advantage in the low-cost carrier space, it is a different story in India. IndiGo with over 45 per cent of the low-cost carrier market under its belt dominates the sector. It has already overtaken Jet Airways to become the largest airline in the country. Just like AirAsia, it is also backed by an equally maverick promoter in Rakesh Gangwal, the former chief executive of US Airways group.
 "We will stick to our plan. There is no need for a change", is all that a top executive of IndiGo was willing to say on the AirAsia deal. To be fair, just like AirAsia, IndiGo has dramatically kept its costs down by flying planes for 12 to 13 hours, turning around aircraft within half an hour, ordering large number of planes to get a volume discount and sticking to one kind of aircraft to save costs. But it has not been able to lower the price differential between low-cost carriers and full-service carriers. AirAsia has been able to do that in Southeast Asia even though it has been struggling to cut costs in India, as over 50 per cent of its costs in the country are not under its control.
 Lording it over in Tier-II and -III markets will not be a cakewalk for Fernandes' airline. IndiGo, for instance, has over 60 per cent to 65 per cent of its capacity already covering these cities. The group is also thinking of setting up services to connect even smaller cities where only ATRs can land. SpiceJet has taken to the smaller cities too. It flies 12 Bombardier's, accounting for one-third of its daily flights, and its CEO Neil Mills says the strategy would soon enable them to fly to and from as many as 96 airports in the country.
 AirAsia can drop fares dramatically to build its market share in these regions, but that is an option which even the Indian low-cost carriers will have. Many are already testing that route to growth. SpiceJet, for instance, offered over 1 million seats at just Rs 2,013 each early this year and they were lapped up in no time.
http://www.business-standard.com/article/companies/for-airasia-it-s-going-to-be-a-fare-game-113022500570_1.html

UB launches Kingfisher Blue in AP

 marketUnited Breweries Limited (UBL), which commands over 50% share of the Indian brewing market, introduced its premium beer brand ‘Kingfisher Blue’ in Andhra Pradesh on Monday.
 “Andhra Pradesh is the 26th state in the country where we have launched Kingfisher Blue. The state holds a lot of promise for this brand and we expect to replicate the national success here, too. While Goa is not yet on our radar, we will be launching the brand in Uttar Pradesh in a couple of months from now,” Samir S Sheikhawat, senior vice president (marketing), UBL, told mediapersons here.
 Andhra Pradesh is the largest market for beer in the country, with the state accounting for 25% and 15% of the national mild and strong beer sales respectively.
 Stating that the domestic beer market (comprising 83% bot, 8% pint and 8% canned) was growing at a compound annual growth rate of 15% and was projected to touch 270 million cases during the current financial year, Sheikhawat said the market was driven primarily by the strong beer segment.
 The company, which has 30 breweries across the country, including three in Andhra Pradesh, is also looking at rolling out new products every two years. “We are working on a few products based on the consumer needs and new segments. It is, however, too premature to disclose the product pipeline now,” he said.
 http://www.business-standard.com/article/companies/ub-launches-kingfisher-blue-in-ap-market-113022500336_1.html
 

AirAsia's model faces fuel, airport cost hurdles

 in IndiaAirAsia's unique selling proposition (USP) is its low fares and the airline can afford to offer those round-the-year because its unit costs are among the lowest. The airline earns 18 per cent of all revenue from ancillary sources. Experts say replicating the business model in India will be a challenge because of a high-cost structure and taxes.
 AirAsia's unit costs are significantly lower than Indian carriers on low-cost terminals, lower distribution costs, single aircraft type operation, higher aircraft utilisation, etc. Unit costs or cost per available seat kilometre (CASK) refers to expenses on flying a seat (filled or empty) over a kilometre. A J P Morgan report shows AirAsia's Cask as very low. One of the reasons for low operating costs is that fuel is not taxed in Malaysia.
 So, how does the airline keep its cost under control? About 85 per cent of AirAsia tickets are sold through its website, limiting agents' commission. (In India, 70-80 per cent of tickets are sold through offline agents and portals). In Kuala Lumpur and Bangkok, AirAsia flies to low-cost terminals (there are none in India). "We get a rebate in landing and parking charges at Bangkok," explains Benyamin Ismail, who handles the investor relations in AirAsia. Other aspects of cost optimisation include higher aircraft utilisation (12-14 hours a day), lower turn around time (25-30 minutes), use of dedicated kiosks for passenger check-in, and reducing the manpower requirement.
 Another aspect where AirAsia differs from airlines in India is its stress on ancillary revenue. It sells tickets at rock bottom prices, but charges for virtually all services - onboard meals, entertainment, preferred seats, pillows, baggage and so on.
 Full service airlines give a preferential treatment to their executive class passengers, whereas AirAsia does the same at a charge. Known as AirAsia Red Carpet, it offers passengers special check-in counters, priority baggage delivery and use of lounge for a fee. In 2011, 18 per cent of AirAsia's revenue came from ancillary sources. (In Jet Airways the share is about five-seven per cent).
 "We have a fare war even without AirAsia. I expect AirAsia to try its best to focus on the fundamentals of their business model like closer to 14 hours-plus utilisation, high-labour productivity, very low distribution cost and big on ancillaries," said Kapil Kaul of the Centre for Asia-Pacific Aviation.
 According to Kaul, other Indian carriers will further strengthen their network from Chennai before the launch of AirAsia's domestic service. "It will be interesting to see how AirAsia deals with the regulatory framework and excessive government intervention especially on key commercial issues like fares and ancillaries," he added.
 'Our fares are 80% lower' AirAsia believes in the no-frills, hassle-free, low-fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests. AirAsia's service targets guests who will do without the frills of meals, frequent flyer miles or airport lounges in exchange for fares up to 80 per cent lower than those currently offered with equivalent convenience.
 http://www.business-standard.com/article/companies/airasia-s-model-faces-fuel-airport-cost-hurdles-in-india-113022600022_1.html
 

Kingfisher cannot fly abroad, rivals to get vacated slotsNew Delhi, Feb 25

In a move that is likely to make it more difficult for Kingfisher Airlines to restart operations, the Centre today withdrew all international operation slots given to the airline. These slots — the scheduled time of arrival/departure made available to an airline to operate regular flights — are to be distributed among other airlines.
This will result in other domestic airlines operating more flights to Dhaka, Kathmandu, Colombo, London, Singapore, Bangkok, Dubai and Hong Kong . The latest move allows domestic airlines to offer 25,000 more seats to these international destinations.
Jet Airways and its subsidiary JetKonnect, Air India and its subsidiary Air India Express, SpiceJet and IndiGo will be the prime beneficiaries. Currently, the Government looks at how many international flights an airline operates and the aircraft it flies before deciding on allotting more routes.
Kingfisher Airlines, which ceased operations on October 1 last year, used to offer 140 weekly flights to these destinations from various cities including Delhi, Mumbai, Kolkata and Chennai. The airline curtailed its international operations in March last year.
 Airports Authority of India (AAI) has also been asked to provide to other airlines the domestic slots vacated by Kingfisher. “Since Kingfisher Airlines was neither making use of the slots nor paying charges to the AAI, it was decided that these should be given to other airlines. In some cities like Pune, Kingfisher slots have already been given to others,” a senior Government official said
http://www.thehindubusinessline.com/industry-and-economy/logistics/kingfisher-cannot-fly-abroad-rivals-to-get-vacated-slots/article4452367.ece

Kingfisher cannot fly abroad, rivals to get vacated slotsNew Delhi, Feb 25

In a move that is likely to make it more difficult for Kingfisher Airlines to restart operations, the Centre today withdrew all international operation slots given to the airline. These slots — the scheduled time of arrival/departure made available to an airline to operate regular flights — are to be distributed among other airlines.
This will result in other domestic airlines operating more flights to Dhaka, Kathmandu, Colombo, London, Singapore, Bangkok, Dubai and Hong Kong . The latest move allows domestic airlines to offer 25,000 more seats to these international destinations.
Jet Airways and its subsidiary JetKonnect, Air India and its subsidiary Air India Express, SpiceJet and IndiGo will be the prime beneficiaries. Currently, the Government looks at how many international flights an airline operates and the aircraft it flies before deciding on allotting more routes.
Kingfisher Airlines, which ceased operations on October 1 last year, used to offer 140 weekly flights to these destinations from various cities including Delhi, Mumbai, Kolkata and Chennai. The airline curtailed its international operations in March last year.
 Airports Authority of India (AAI) has also been asked to provide to other airlines the domestic slots vacated by Kingfisher. “Since Kingfisher Airlines was neither making use of the slots nor paying charges to the AAI, it was decided that these should be given to other airlines. In some cities like Pune, Kingfisher slots have already been given to others,” a senior Government official said
http://www.thehindubusinessline.com/industry-and-economy/logistics/kingfisher-cannot-fly-abroad-rivals-to-get-vacated-slots/article4452367.ece

Kingfisher loses flying slots

The Union Civil and Aviation Ministry, on Monday, stripped the beleaguered Kingfisher Airlines of international and domestic flying slots.
 The move is likely to make available 25,000 additional seats for passengers.
The Civil Aviation Minister, Ajit Singh, has directed the Airports Authority of India (AAI) to take action to allot the domestic slots of Kingfisher Airlines to other domestic airlines. Similarly, various international routes will now be offered to the rival airlines, an official statement here said.
 The move comes close on heels of a decision taken by the consortium of bankers to start recalling their loans amounting to Rs.7,500 crore. “The government has decided to withdraw all international bilateral traffic rights allocated to Kingfisher Airlines with immediate effect,’’ the statement added.
Under the said rights, Kingfisher Airlines was allowed to fly the sky of eight countries, namely, Bangladesh (14 services a week), Hong Kong (14 services a week), Nepal (7 services a week), Singapore (7 services a week), Sri Lanka (14 services a week plus 21 services a week from unlimited 18 destinations), Thailand (21 services a week), UAE Dubai (21 services a week) and Great Britain (7 services a week each from Mumbai, Delhi and Bangalore). These traffic rights were allocated to Kingfisher Airlines between 2008 and 2011.
 The statement said these international traffic rights had been withdrawn from Kingfisher Airlines on account of non-utilisation by the airlines. “The Civil Aviation Minister has decided to make these international traffic rights available to other carriers for use. This would give additional availability of about 25,000 seats a week for use by other Indian carriers to these eight countries, some of which are much in demand by these carriers,” the statement said.
 Further, it said it had been decided to withdraw the domestic slots which were allocated to Kingfisher Airlines at different airports for domestic flights.
AAI had been directed to make these slots available to other domestic carriers as per their demand, it added. In October last year, the Directorate-General of Civil Aviation (DGCA) had temporarily suspended the scheduled operator permit (SOP) or flying permit of the Vijay Mallya-promoted carrier following a strike by its pilots and engineers over non-payment of salaries for several months that completely grounded its fleet.
 The SOP expired on December 31. A week before this, the airline submitted an interim revival plan to the aviation regulator to resume limited operations. But the DGCA had rejected the plan, terming it as inadequate. It sought more information on the funding and payment of dues, and decided not to allow the airlines to take to air till it met a series of conditions, including payment of dues to its employees and various service providers such as airport operators.
The AAI had also recently made it clear that it would not allow Kingfisher to take to the skies till it clears all dues.
 http://www.thehindu.com/business/Industry/kingfisher-loses-flying-slots/article4452368.ece
 

Japan's ANA plans to make India a gateway to US

NEW DELHI: After the Middle East and South East Asian airlines it is now Japan's All Nippon Airways, which has declared its ambitions of becoming the next gateway carrier for India, aiming to scoop up the US-bound passenger and take them to their destination via its transit hub in TokyoIn the near future, All Nippon Airways (ANA) not only plans to add a couple of more Indian cities to its network but also quadruple capacity to Mumbai, where it has daily flights.
 "Without India market we can not survive. Our location is very good for connections as from Narita airport in Tokyo it takes only two hours to reach the US west coast. Also, we would take lesser time than Gulf carriers to fly to the US," All Nippon Airways General Manager (India) Kenji Sugino told ET.
 A gateway carrier picks up traffic from other countries and routes it through their hubs. For example, Emirates flies people via the Dubai airport, Singapore Airlines takes Indian passengers to the western countries via the Changi airport in Singapore, Qatar routes fliers through Doha, Etihad through Abu Dhabi and Cathay Pacific through Hong Kong.
 Experts say ANA's moves could up the ante in the war to capture the growing number of Indian transit passengers.
 "Majority of Indian nationals travelling to the west coast (US and Canada) prefer to go via the Pacific (Malaysia, Singapore and Hong Kong). So, ANA's plans could give a few sleepless nights to Cathay Pacific, Singapore Airlines, JAL, Thai Airways, Malaysia Airlines," independent aviation expert Rajan Mehra said.
 In comparison, Gulf carriers focus on transatlantic cities like New York, Chicago, and Boston in the US and Toronto, Montreal in Canada.
 "Indians travelling to the US, Canada is roughly 10% of total Indian outbound travellers. I think it is a very competitive route with a number of carriers already plying to key cities so ANA will have to get their routing, pricing and positioning absolutely bang-on to make a success of it," said Sharat Dhall, COO of Yatra.com. Apart from the daily flights from Delhi and Mumbai to Tokyo, the carrier plans to fly to Chennai and Bangalore in the near future four times and thrice a week, respectively.
 ANA, which commenced daily Delhi-Tokyo flights from October 2012, was planning to fly Boeing 787 or Dreamliner aircraft on the Mumbai route, increasing capacity on it by four times.
 "However, the sudden grounding of the B-787s world over has delayed that plan for sometime and we are unable to go ahead with expansion as planned," Sugino said.
 When asked if reports about ANA planning to buy into a low-cost Indian carrier were true, Sugino said that there is no such plan as of now, especially in the face of B-787 grounding. There have been reports that ANA and Japan Airlines have been scouting the market for Indian partners
http://articles.economictimes.indiatimes.com/2013-02-26/news/37309674_1_gulf-carriers-japan-s-ana-mumbai-route

Kingfisher’s flying slots to go to rival airlinesGrounded

 Kingfisher Airlines' domestic as well as international flying slots will soon become available for its rival carriers as Civil Aviation Minister Ajit Singh has passed orders for the same.
 The Civil Aviation Ministry on Monday announced in an official statement that Kingfisher had been stripped of all flying slots.
 The ministry also confirmed that the Airports Authority of India (AAI) had been asked to take action to allot the domestic and international slots of Kingfisher to other airlines. The move is expected to make around 25,000 additional seats available for passengers per week.
 In the statement, the ministry said, "This would give additional availability of about 25,000 seats a week for use by other Indian carriers to these eight countries, some of which are much in demand by these carriers."
 The eight countries in which Kingfisher was allowed to fly are UAE Dubai (21 services per week), Great Britain (7 services per week each from Delhi, Mumbai and Bangalore), Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), Sri Lanka (14 services per week), and Thailand (21 services per week).
 Kingfisher had obtained those traffic rights between the years 2008 and 2011.
 The Vijay Mallya-promoted beleaguered carrier is burdened with a debt mountain of nearly Rs 8000 crore. It has not paid salaries to its employees for months. The AAI had recently declared that it would not let Kingfisher to fly again till it clears all dues.
http://www.topnews.in/kingfisher-s-flying-slots-go-rival-airlines-2373569
 

Plastic to fuel Sydney-London flight

 In a first-of-its kind attempt, an Australian pilot plans a 16,898 kilometre historic trip from Sydney to London using fuel produced entirely from plastic waste.
Forty one-year-old Jeremy Rowsell's flight will be powered by five tonnes of discarded packaging, waste collected from rubbish dumps and — using a pioneering technique — melted down into 1,000 gallons of aviation-grade diesel.
In July, he will embark on the journey from Sydney, flying over Asia, the Middle East and then Europe , and arrive in London six days later, after flying a single-engine Cessna 172 at about 2414 km a day with a speed of about 185kph.
Rowsell will have to fly for up to 15-hour stretches to reach his scheduled stops on time, the 'Telegraph' reported. He will travel at an altitude of 5,000ft — much lower than commercial airliners, which reach up to 40,000ft on long-haul flights.
The fuel will be sourced solely from the so-called "end-of-life" plastic that cannot be recycled and would otherwise end up as landfill , including household waste such as packaging and wrapping.
The plastic will be collected from the countries in which Rowsell is scheduled to stop along the way and shipped to Cynar, the Dublin firm that will help process the waste into aviation-grade diesel.
Recent technological advances have made it possible to distill plastic — most of which is petroleum based — into fuel, using a process known as pyrolysis that does not pollute the air. Cynar claims its plastic waste diesel fuel is cleaner than that used by most planes, its production process is cleaner, and it estimates a lower cost per gallon. Although it has been tested in cars, it is in the very early stages of aero engine tests and has never been used in flight , the report said. Rowsell, a hobby pilot, decided to undertake the trip to raise awareness of new technologies that are exploring viable, environmentally friendly ways to fly , while also cutting down amount of plastic waste in landfills around the world
http://www.indiapress.org/gen/news.php/The_Times_of_India/400x60/0
 

Govt scraps international and domestic flying rights of KFA

India has scrapped international flying rights and domestic slots of grounded Kingfisher Airlines (KFA) Ltd, the aviation ministry said on Monday.
"The Airports Authority of India has been directed to make these slots available to other domestic carriers as per their demand," the ministry said in a statement.
The international traffic rights are being withdrawn due to "non-utilization", and will be made available to other carriers, the ministry said. These traffic rights were allocated to Kingfisher Airlines between the year 2008 and 2011.
The cancellation of rights to fly overseas will "give additional availability of approximately 25,000 seats per week for use by other Indian carriers to these eight countries, some of which are much in demand by these carriers," the ministry said.
Kingfisher Airlines, controlled by liquor baron Vijay Mallya and once India’s second biggest carrier, has not flown since October last year after operations were halted due to a cash crunch. The airline also failed to submit a revival plan to the Director General of Civil Aviation and had its flying licence suspended on December 31.
Kingfisher Airlines flew to eight countries including Bangladesh, Hong Kong, Nepal, Singapore, Sri Lanka, Thailand, Dubai in the United Arab Emirates and the UK.
http://www.indiatourismreview.com/news/govt-scraps-kfas-intl-and-domestic-flying-rights