Airport to get a coast guard air enclave

THIRUVANANTHAPURAM: The Airports Authority of India has allotted a portion of the ground floor in its old domestic terminal at Trivandrum airport to the Indian coast guard to establish its air enclave. With this facility, the coast guard will now be able to station Dorniers and helicopters here. The commanding officer, coast guard station, Vizhinjam has forwarded the allotment letter to its HQ for ratification, so it can sign the agreement with the AAI.
 "We were waiting for the allotment letter from the AAI, and now that we have received it. The ministry of defence (MOD) has to approve the operational costs, so we can make payments, sign an agreement, and move into the building The MOD had given us an in-principal approval and calculating the administrative delay in such cases, I am expecting to move in around September," said commandant A Athinarayanan, commanding officer, coast guard station, Vizhinjam.

While the coast guard station, Vizhinjam, will be responsible towards protecting surface assets, the Indian coast guard air enclave (ICGAE) will enforce maritime reconnaissance missions along the southern coast, and will have its own commanding officer and around 150 personnel. The ICGAE would initially operate one Dornier (fixed wing aircraft) and one Chetak helicopter. "The aircrafts sanctioned for the ICGAE are at Daman and Chennai and can be brought here at short notice, but the approvals must be in place. With a similar unit based in Kochi, the ICGAE would make us a formidable force in Kerala with multifarious roles to perform, such as helping fishermen in distress and securing the coast," the commandant said.
 The AAI has allotted 16,533.332 square feet space to the Indian Coast Guard on a three year lease, of which, 13,024.332 square feet is an air-conditioned area in the ground floor of the old domestic terminal, 1,539.2 sq ft in the city-side canopy area and 1,969.8 sq ft in the air-side canopy area.
 "The area available at terminal 1 (old domestic airport) has been utilized in the best interest of the AAI. A portion of the space has been set aside for domestic cargo, and to enhance commercial and administration operations as per AAI policy," said airport director, Trivandrum International Airport, V N Chandran.
 While functioning on AAI land the Indian Coast Guard would have to comply with the AAI terms and conditions pertaining to security, parking regulations, etc. Entry to the apron area will be through the CISF gate and any cost incurred for procuring security from airport security group-CISF, as stipulated by the bureau of civil aviation security guidelines, will be billable to the Indian coast guard.
http://timesofindia.indiatimes.com/city/thiruvananthapuram/Airport-to-get-a-coast-guard-air-enclave/articleshow/18942043.cms
 

Strike plan: AI moves court to restrain unions

Air India on Tuesday filed a petition before the Kerala High Court seeking a directive to restrain casual workers unions from launching direct action, including a strike, at the Calicut international airport starting from March 15.
Air India said the Airline Casual Workers Union (CITU) and the Air India National Aviation Workers Association (INTUC) had threatened to start direct action, including a strike, if their demands were not met. The demands of the unions included regularisation of service, hike in daily wages from Rs.275 to Rs.500, and an increase in the number of days of engagement in a year.
The unions made the threat even as the conciliation proceedings were on before the Assistant Labour Commission.
Recruitment ban
The company said if a direct action was launched, it would affect the day-to-day activities of the petitioner and the travelling public. Besides, the company was undertaking restructuring process in view of the new aviation policy. Air India had also imposed a general ban on recruitment since 1998.
The petitioner also sought a directive to restrain the unions from causing any obstruction to the airline booking office, Calicut International Airport Office and entry and exit of travellers and officers into/from the airport.
http://www.thehindu.com/todays-paper/tp-national/tp-kerala/strike-plan-ai-moves-court-to-restrain-unions/article4503550.ece

Airport facelift hangs in balance

Thiruvanathapuram: The future of the Thiruvananthapuram international airport hangs in the balance as the protest from the local people over land acquisition is mounting and even leading to law and order problems.
As per the original action plan for the airport development, about 82 acres more would be required. However, attempts to acquire a minimum of even 19 acres of land have triggered severe resistance from the local people. Over the last couple of days, there were incidents of locals pelting stones at workers involved in airport works, necessitating police intervention.
The people of the locality under the banner of Vallakadavu-Vayyamoola action council, are adamant about not allowing land for further development of the airport. The action council is of the view that the land already acquired for the airport development was not fully utilised and hence they would resist further eviction of hundreds of families.
The action council also has the support of the local MP Shashi Tharoor, who had expressed his concern over evicting families to acquire more land for airport development. He said so at a high- level meeting chaired by the Chief Minister recently.Airport sources said that further land was required for meeting the mandatory civil aviation requirements, constructing a new domestic terminal on the Chakai-Injackal side and a new air traffic control tower. The master plan was finalized with the consent of the state government.
Already there were concerns that the proposed Aranamula airport would affect the prospects of the Thiruvananthapuram airport. The ongoing  protest adds to this apprehension
http://www.deccanchronicle.com/130313/news-current-affairs/article/airport-facelift-hangs-balance
 

OMCs made to share aviation fuel facilities

In what could open the aviation turbine fuel (ATF) market for private companies, the state-run oil marketing companies (OMCs) have agreed, in-principle, to share their storage facilities to feed Asia's largest terminal at New Delhi.
 The decision was taken during a meeting between aviation and petroleum ministries last week, a senior government official told Business Standard.
 With this move, private ATF sellers will get overnight access to assets created by government firms, said a senior executive with an OMC.

Reliance Industries Ltd (RIL), Shell and Essar, which had shown interest in selling ATF, will now be able to use state-run companies' infrastructure built near the Delhi airport, for a fee. RIL has operations across 26 terminals in India and wanted entry into terminal-3 of the Indira Gandhi International Airport.
 "The access will be allowed only if the government-controlled OMCs have excess capacities," said a petroleum ministry official.
 Around 52 per cent of the ATF is consumed in Delhi and Mumbai airports, with 15 per cent of it supplied by private players. The private players can use the facility only for duty-free ATF, said the ministry official. "One private company had approached the excise department, too, for using the storage capacity to provide service for one of their clients. The response was that both duty-free fuel and duty-paid fuel cannot be kept at one place," said the official.
 OMCs are yet to receive a formal directive in this regard, said an IndianOil executive. Although discussions have been going on for quite some time, state-run companies never wanted private players to play a crucial role at Delhi and Mumbai. "In all other airports, we have our own facilities. This is for the first time that we would be using infrastructure of public sector units," said a private oil company executive.
 Privatisation for Delhi airport started way back in 2006, when Delhi International Airport Ltd (DIAL) was formed by the GMR group, the Airports Authority of India, Germany's Fraport AG, and Malaysia Airport Holdings. For a fuel farm at terminal-3, Delhi Aviation Fuel Facility Ltd (DAFFL) - a joint venture between Indian Oil Corporation, Bharat Petroleum Corporation Ltd and DIAL - was also formed later. Currently, only IndianOil Skytanking and Bharat Stars Services have the right to provide into-plane refuelling.
 "ATF costs contribute 45 to 50 per cent of the input costs of the airlines. This is a welcome step as competition will help bringing down ATF costs. However, at Mumbai airport, ATF is directly coming from refineries in pipelines to the airport," added the aviation ministry official.
http://www.business-standard.com/article/companies/omcs-made-to-share-aviation-fuel-facilities-113031300012_1.html

Jet Airways to extend code-share with Etihad Airways

Jet Airways, which is in the process of finalising a stake sale deal with Etihad Airways, plans to extend its code share agreement with the Abu Dhabi-based carrier to the Mumbai-Brussels-Newark route, sources said.
 Besides, the Naresh Goyal-owned carrier will also dry lease three of its Boeing 777s to the Turkish Airlines, they said.
 "We are in the process of extending our code share agreement with Etihad to the Mumbai-Brussels-Newark route," a top ranking Jet Airways executive told PTI here.
 Code-sharing allows an airline to book passengers on its partner carriers and provide seamless transport to multiple destinations where it has no presence.
 Jet and Etihad have a code-sharing agreement since 2008. Late last year, it expanded the tie-up further with a similar arrangement for the Abu-Dhabi-Paris route.
 The Mumbai-headquartered airline has also entered into an agreement with the Turkish Airlines to lease three B-777 aircraft for one year, the executive said.
 "We have five Boeing 777s on lease with Thai Airways. Three of these aircraft are completing the lease period by June-July. We have entered into an agreement with Turkish Airlines for one year dry-lease," he said.
 The reaming two planes will come back to the airline by October-November, he said adding, "these planes will be used on Jet network."
http://www.financialexpress.com/news/jet-airways-to-extend-codeshare-with-etihad-airways/1087083

Fire at Chennai airport hits air traffic for few hours

A fire broke out in the Air Traffic Control room at Chennai airport today affecting operations for a few hours but no casualties were reported.
The fire was caused due to malfunctioning of batteries, Airport Director H S Suresh said, adding, a probe has been ordered into the incident.
A total of 12 incoming and outgoing flights were affected even as flights arriving in the city were diverted to other locations including Bangalore and outgoing services resumed around 6 AM, sources said.
The overall operations had become normal around 8 AM though some flights were delayed due to the mishap which occurred around 2.40 AM, airport sources said.
The flames were noticed by the staff and five five tenders were engaged and the blaze doused within 20 minutes.No casualty was reported but computers and the ceiling in the ATC hall was damaged in the fire, sources said.
Meanwhile a car went up in flames in the airport premises after the driver lost control of the vehicle and dashed it against the wall, airport sources said.
The driver fled from the spot.
http://www.deccanherald.com/content/318219/fire-chennai-airport-hits-air.html
 

Existing FDI rules allow AirAsia venture with Tatas, says Montek

Concurring with the views of the Finance and Commerce and Industries Ministries, Montek Singh Ahluwalia, Planning Commission, Deputy Chairman, feels that the Tatas and AirAsia can start an airline venture under the existing Foreign Direct Investment (FDI) regulations.

“In my view, if Tatas want to set up a company to run an airline within the 49 per cent limit, the intention of policy as far as I know, is quite clear that they should be allowed to do it,” Montek told reporters on the sideline of an event here.
AirAsia will hold a 49 per cent equity in the new project with Tata Sons holding 30 per cent with the remaining 21 per cent with another Indian investor, Telestra Tradeplace led by Arun Bhatia.

The Foreign Investment Promotion Board (FIPB) gave its approval for the three-way joint venture proposal. While the Finance and the Commerce and Industries Ministries felt that the norms support the proposed new venture, the Civil Aviation Ministry had expressed doubts over whether foreign airlines should be allowed to invest in new ventures also.
Talking about inter ministerial differences on this issue, Montek said, “I don’t know what the detailed differences are. I am sure they will be sorted out. If Tatas and an international airline want to set up an Indian airline as long as the international partners (hold up to) 49 per cent, they should be allowed to do so.”

Soon after the FIPB nod to the proposal, the Civil Aviation Ministry sought further clarity on the FDI policy in aviation.
http://www.thehindubusinessline.com/industry-and-economy/logistics/existing-fdi-rules-allow-airasia-venture-with-tatas-says-montek/article4497773.ece
Domestic airlines express inbility to display number of seats at each fare level
NEW DELHI: CEOs of domestic airlines have expressed their inability to comply with the Supreme Court's direction to display the number of seats at each fare level and compressing the wide range of prices for a route.
 The airline chiefs, who met aviation regulator DGCA on Friday, argued that implementation of the order would be tantamount to regulation of airfares, something which the government has ruled out.
The apex court, in an order on January 23, had taken cognisance of fluctuation in airfares and asked DGCA to make pricing more transparent.
 "We are of the prima facie view that given the wide range of base fares, it would be necessary for DGCA to give a fresh look at the tariff structure submitted to it by the airlines, particularly when in the said table there is no indication as to which fare band would be applicable when the ticket is booked in a period less than seven days in advance. Apparently, no information is made available on the websites regarding number of seats available in each of the bands," the court order had said.
 The court was hearing a case filed by a customer challenging transaction fees charged by airlines in case of online bookings, but expanded the scope of the case to cover airfares. It has not passed a final order
In their meeting with DGCA chief Arun Mishra, the CEOs of private airlines said they follow global practices in fixing the highest fare for a route at about 6-8 times the lowest fare. In foreign markets, the highest fare is sometimes 20 times the lowest fare, they pointed out.
Displaying the number of seats available at each fare level would foster unhealthy competition as each carrier would monitor who was selling how many seats on each route and slash or raise fares accordingly, the airline chiefs argued.
 Moreover, the technology that airlines use to price seats would not allow fixing a certain number of seats at one particular price point, they said.
 According to the CEO of a leading private airline, the number of seats in each revenue bucket is determined by mathematical algorithms that take into consideration many variables, including booking patterns, number of flights in each sector, day of the week, day of the month and many such variables.
 "This allocation (of seats) is dynamic and changes all the time. Second, you don't want your competitors to know how you manage your inventory. We are also an international carrier and can't be seen as 'price-fixing'. I would love to know how many seats competitors are allocating in price lower buckets at 8 am between Delhi-Mumbai. Now I don't know," the executive said, requesting anonymity.
 The head of another leading private carrier said any attempt to prescribe a lower and upper band for airfares would amount to regulation. "Our tariff structures are in line with International Air Transport Association (IATA) Resolution 728, Annexure I. This is in line with global practices."

However, passenger welfare groups feel airline tariff structures lack transparency. "People cannot understand the published tariffs. It has opaque terminology and doesn't make sense to the lay-flier. Moreover, if airlines can't give the exact number of seats, they can definitely indicate a certain percentage allotted to a certain fare range," Air Passengers Association of India President D Sudhakar Reddy said
At present, airlines have 13-14 fare levels on most sectors, with GoAir having as many as 22 fare levels ranging from Rs 3,770 to Rs 24,200 for one-way travel between Delhi and Mumbai.
 In December last year, the cost of a one-way ticket on Air India between Delhi and Chennai varied from Rs 4,170 to Rs 28,908 while on Jet Airways, it was between Rs 4,730 and Rs 29,900. In comparison, low-cost airline IndiGo charged between Rs 4,020 and Rs 17,949, and SpiceJet between Rs 4,020 and Rs 17,549.
 On the Delhi-Mumbai sector, Air India's fares ranged from Rs 3,920 to Rs 21,136, Jet Airways' from Rs 4,480 to Rs 23,950, and Jet Konnect's from Rs 3,770 to Rs 24,100. On IndiGo, a passenger had to pay anything between Rs 3,770 and Rs 16,449 while the fares ranged from Rs 3,770 to Rs 15,849 on SpiceJet, and Rs 3,770 to Rs 24,200 on GoAir.
http://articles.economictimes.indiatimes.com/2013-03-12/news/37651528_1_fare-band-highest-fare-airline-chiefs
 

GMR may sell 5-Star hotel at Hyderabad Airport

Infrastructure builder GMR Group has put its Rs 300-crore five-star hotel at the Rajiv Gandhi International Airport here up for sale as it realigns its assets, sources said.
This will be the third property that GMR has put on sale this year in line with the group's 'Asset Light, Asset Right strategy'.
While a GMR spokesperson denied selling the five- star hotel, sources with direct knowledge of the issue said the company has appointed HVS India as its transaction advisor. HVS India has been mandated to find a suitable buyer for the 5-Star Hotel which is currently managed by Accor Group, sources said.
"The transaction would be by way of parent company divesting its 100 per cent equity stake in the Hotel Company.The proposal envisages transfer of all assets and liabilities and a Share Purchase Agreement shall be executed accordingly,"a source said.
An industry expert said the sale of the property may etch anywhere between Rs 300-350 crore. GMR entered into a concession agreement with the Andhra Pradesh government in 2004 to develop a Greenfield airport and other related infrastructure. As part of the airport project,GMR constructed the 305-room hotel.
The concession period will be for 30 years and extend able to another 30 years."As the land is leased, the same will be transferred to the new owners on the same terms illustrated in the concession agreement for the airport development," the source said.  According to analysts, the valuation of the hotel could be anywhere near Rs 1 crore per room under the present circumstances.
A person who had sought information from HVS, said the consultants are currently inviting interested parties to send their background, financial capabilities and other relevant data.
"They may ask the bidders to sign non-disclosure agreement before sharing details of the hotel. Subsequently they will ask interested parties them to submit bids also by the end of this month," he said.Earlier this month GMR said it will sell its 70 per cent
stake in GMR Energy (Singapore) Pte (GMRE) to FPM Power for SGD 660 million (Rs 2,907 crore). Similarly, it signed a pact with Macquarie SBI Infrastructure Investments Pte and SBI Macquarie Infrastructure Trust to divest 74 per cent stake in GMR Jadcherla Expressways Ltd (GJEL) for Rs 206 crore. GJEL is operating the Farukhnagar-Jadcherla highway inAndhra Pradesh under a concession agreement signed with NHAI.
http://m.indianexpress.com/news/gmr-may-sell-5star-hotel-at-hyderabad-airport/1085906/
 

AirAsia will only benefit the common man, says Arun Bhatia

Rivals may be creating hurdles for AirAsia's new venture, but good sense will prevail as a low-cost airline will only benefit the common man, says Arun Bhatia, the third partner in the AirAsia-Tata joint venture. In an exclusive interview with ET, the Lutyens Delhi realtor who seems to be revelling in the fact that he now has two of the world's biggest businessmen -'super-samdhi' LN Mittal and Ratan Tata - on his side, says the airline will break even in two-three years. Edited excerpts:
Did this deal happen by chance or by design?
 I guess this is a sector that we have been looking at for the past few years. My son (Aneesh) runs a company that makes precision parts for the aircraft industry and that is how we got into thinking about it. Then this opportunity came and we were very happy that we have such fabulous partners. It started with Tony (Fernandez) talking to my son (Amit) in London. My son and he are partners in a football club in London, Queens Park Rangers. He mentioned it to him. Then later on it transpired that the Tatas would join in and we thought if they join, we would be happy to join. Both my sons met Tony in Singapore and they decided to finally come together. We then had to wait for the Tata board to give its approval.
 Since when have you been talking to Tony for this?
 We decided to join in about six months ago. This was after the (new FDI) policy was announced, in September.
 Did AirAsia and you ever plan to buy an existing airline in India?
 There was no such plan. It was always a new venture. The Tatas had been talked about. We had also talked to the Tatas about it. We knew Tony had already talked to them.
 When did you meet the Tatas first? Had you met Mr (Ratan) Tata before?
 No, I had not. I met him only recently. Tony was the instrument, whether with the Tatas or with us, separately. But both knew that the other would be a party to it.
 Were you surprised that the Tatas came in with a minority stake? Did the Tata's ever ask for a majority share?
 Yes, absolutely. We were surprised. But I have no knowledge of the discussions between Tony and the Tatas. We were told that you can take this much percentage and we said fine. We are game for whatever percentage we got. We have a substantial percentage, which is very good.
 In that case, it would seem that you are fronting for Tony because as per the policy, he cannot hold more than 49% stake in the new airline in India, and by inducting you he does not need to have a majority local partner. What would be your response to that assumption?
 Why should I front for anybody? If I didn't have the money then it was a separate issue. But I have the money so why should I front. I have to make money. I am not making money for anybody else, that's not my business.
We chose Chennai because what we are looking for are sectors where flights are fewer in numbers, but the potential is big. Around Chennai there are so many such sectors. Also the airport taxes are very high in Delhi and Mumbai. We will initially start with Chennai and then we'll see what sanctions we can get from the ministry.
 What is the larger vision and plan?
 The plan is to expand as quickly as possible, but looking into what routes we can get and what passenger load we can get. The more we get, the more we will plough in. We will start with about three-four planes in the first year. Then we keep on expanding. One has to wait and see. See, you can plan a 100 fleet airline, but if the load is not there, there is no point planning.
 You've got an FIPB clearance but that there has been opposition from the civil aviation ministry. Will it be easy for you to steer past the coming hurdles?
 It's a challenge. Mr Ajit Singh (the civil aviation minister) is a very intelligent man and I am sure he'll do what he thinks right. What I heard on the TV is that he needs some clarification from the commerce ministry. The commerce ministry has already given a clarification and if more is required I am sure they will get. But if there are hurdles still, we will try our best to convince them that this is best for the country.
 How long will it take you to breakeven?
 I am not at liberty to tell you that. We are very positive though. Everybody's model is different. Kingfisher's model is different from Indigo. Indigo is making money, Kingfisher didn't. Every person has their own way of thinking and the way AirAsia has put out their model, I think we should do alright, start making money in 2-3 years.
http://articles.economictimes.indiatimes.com/2013-03-11/news/37623822_1_ratan-tata-airasia-tata-low-cost-airline

AirAsia gets govt nod for name of Indian JV

Gearing up to launch services in India in partnership with Tatas, Malaysia-based low-cost airline AirAsia has got the Ministry of Corporate Affairs approval for the name of its Indian venture that is to be called AirAsia (India) Private Limited.
The name of the new company has been registered in the state of Maharashtra and the approval was granted by the Ministry of Corporate Affairs (MCA) earlier this month, a senior official said.
The company is now in the process of incorporating itself in India and completing other formalities of submitting the required documents and certificates with the ministry, he said. The filing process for the new venture is being completed on a fast-track basis, he added.
Before incorporating itself in India, a company needs to get its name approved by MCA, after which it is required to file an application for incorporation.
http://www.deccanherald.com/content/317857/airasia-gets-govt-nod-name.html
 

Narrow escape for 140 passengers as Indigo plane veers off runway

140 passengers on board an IndiGo flight from Chandigarh to Mumbai had a narrow escape after the aircraft veered off the runway after landing at the airport here, officials said on Sunday.
 The IndiGo flight 6E433 damaged some runway lights while landing yesterday, they said.
 The pilot of the aircraft was on Sunday called for questioning, they said, adding, the preliminary report is expected to be submitted to the Directorate General of Civil Aviation (DGCA) soon.
 “Our investigations into the incident are on,” a DGCA official said.
The airport’s main runway had to be closed for almost two hours to clear the area and repair the lights. Most arriving and departing flights were consequently delayed by 30 to 40 minutes.
 The airline said in a statement that the plane went off the runway due to a “sudden gust of wind”.
http://www.thehindu.com/news/national/other-states/narrow-escape-for-140-passengers-as-indigo-plane-veers-off-runway/article4494566.ece

Solar power project completed at Nedumbassery airport

The Cochin International Airport Limited’s (CIAL) solar energy utilisation programme has been completed, and 400 solar panel units have been installed, airport authorities said in a press release on Thursday.
Documents have already been submitted to the Kerala State Electrical Inspectorate for necessary approval, they added. The installation has the capacity to produce 100KW. But only 450 units per day will be utilised initially, mainly for running the air conditioning plant.
The panels are made of poly crystalline silicon, each with a capacity to produce 250 watts of electricity. The power generated from the panels can be connected to the grid without causing any disruption in supply.
Airport PRO Dominic Fernandez said that CIAL were planning to build a second solar power unit with a capacity of 1 MW.
The Rs 98-lakh project is being executed by a Kolkata company. Based on the agreement, the company will be responsible for maintenance for the next 10 years. As the project had been subsidised by the Central Government to the tune of 30 per cent under Jawaharlal Nehru National Solar Mission, CIAL’s share of expenditure was only Rs 63 lakhs, he said.
 http://newindianexpress.com/cities/kochi/article1496195.ece
 

Feeder airport proposed in Wayanad

The Kerala government has proposed to set up a feeder airport in the tourism-oriented Wayanad district.
 The Airports Authority of India had suggested a 100-hectare site at Panamaram, Nadavayal village. The government plans to construct the airport in the public-private partnership mode.
 The Kerala State Industrial Development Corporation (KSIDC) has been entrusted with the techno, economic feasibility study and environment impact assessment of the project. Knight Frank India Limited has been appointed to prepare the techno economic feasibility report and the environment impact assessment. Both the reports will be submitted in six months and the government will take further measures, a KSIDC release said.
 The airport is aimed at boosting the connectivity to the district, which has several tourism spots. The airport will enhance the tourists inflow to the district. At present, Wayanad is connected only through roads. Feeder airport will offer connectivity to the nearest international airports like Kochi and Kozhikode. The government also plans to have other supplementary infrastructure facilities in the area to stimulate economic activity in the backward district, which has the highest adivasi population in Kerala.
http://www.business-standard.com/article/current-affairs/feeder-airport-proposed-in-wayanad-113031000362_1.html

Still, optimism in the air for domestic aviation sector

It might be early days yet, but the flurry of positive activity over the last month could provide the domestic aviation sector something to cheer about. After months of cancelled flights and then the shutting down of Kingfisher Airlines, things could be getting better.

First came the news of a possible tie-up between Jet Airways and the Abu Dhabi-based Etihad Airways. Then, on March 6, the Foreign Investment Promotion Board (FIPB) granted in-principle clearance to the Malaysian low-cost airline, AirAsia’s proposal to set up a domestic airline in India jointly with Tata Sons and Telestra Trade Place Pvt Ltd.

Then there is also the Singapore based low-cost airline, Tiger Airways, which is looking at expanding operations in India.

Stumbling blocks
Of course, there are initial hiccups. AirAsia’ proposal did not go down well with the Ministry of Civil Aviation which sought clarifications on FIPB’s in-principle clearance to the airline to start operations.
The Civil Aviation Ministry has sought clarifications on whether the policy change allows foreign direct investments by foreign carriers only in existing airlines or whether new start-up carriers are also included in this.

If and when AirAsia is given permission to start operations, it will be the first new private airline to fly on domestic routes after August 2006, when the Delhi-based low-cost airline IndiGo took to the skies.

The new start up airline, which is going to be headquartered in Chennai, plans to launch services by the fourth quarter and link tier II and tier III cities.

The launch of AirAsia could see more routes opening up for Indian travellers. So, a traveller, say from Madurai, will be able to fly the Indian arm of AirAsia to Chennai before connecting possibly on to another AirAsia flight that will take him to Bangkok.
Similarly, a resident of Mangalore could travel on an AirAsia domestic flight to Bangalore before connecting with a flight to Kuala Lumpur.

Expansion plans
Currently AirAsia, Asia’s largest low cost airline with 118 aircraft, operates 63 weekly services from Kuala Lumpur and Bangkok to Chennai, Tiruchi, Kochi, Kolkata and Bangalore.

And, with AirAsia’s global tag line ‘Now every one can fly’, travel could also become cheaper. In an industry where each player watches what the other is doing, any lowering of prices by one will attract a response from the other airlines, which will benefit passengers.

A day before the FIPB nod for AirAsia, Tiger Airways indicated that it was looking for a “strategic partner” in India. While Kaneswaran Avili, Commercial Director, Tiger Airways, declined to spell out the details of what was being considered, company officials said that its tie-ups in other parts of the world had seen it acquire substantial stakes in Mandala Airlines of Indonesia and SEAir of Philippines. The airline could perhaps be looking at replicating this in India. At the moment it flies between Singapore and six Indian cities, including Chennai and Bangalore.
The airline has sought the Government’s permission to launch more flights on the Chennai-Singapore route. All these developments took place in the back drop of Jet Airways being in talks with the Abu Dhabi’s national carrier, Etihad for selling it a stake.
Though very few details are available on the proposed stake sale, the first step indicating that things were on track between the Indian and Gulf carriers came on February 27, when Etihad issued a press statement confirming that it had conducted a transaction with Jet Airways to purchase three pairs of its slots at London Heathrow for $70 million. While all these developments taking place simultaneously may just be a coincidence, it is not difficult to understand why there is so much activity in the Indian aviation market. To begin with, the number of Indians travelling abroad has seen a phenomenal growth.
Vying for a booming market
The World Travel and Tourism Council estimates that the number of Indians travelling abroad has crossed 12 million and is likely to touch 50 million by 2020.

The Chief Economist at the International Air Transport Association (IATA), Brian Pearce, also recently pointed out that globally passenger numbers are likely to increase beyond the three billion mark in 2013. IATA also predicts that Asia Pacific airlines will retain the strongest margins in 2013.

Perhaps another reason that is tempting foreign airlines to look at investment either directly or through tie-ups with existing airlines in India is the fact that in the domestic aviation sector, India is one of the least penetrated markets. While there is one commercial aircraft for every 3.2 million Indians, the figure is one commercial aircraft for every 900,000 in Philippines, one for every 1.14 million in China and one for every 600,000 in Brazil.

This a large gap waiting to be bridged and perhaps that is why investors or new airlines are willing to overlook the fact that the domestic air traveller market saw a dip last year as compared to previous years and also the various procedural and infrastructure problems that they will have to encounter
http://www.thehindubusinessline.com/industry-and-economy/logistics/still-optimism-in-the-air-for-domestic-aviation-sector/article4491907.ece
 

AirAsia fast-tracks filing process for Indian venture

Gearing up to launch services in India in partnership with the Tatas, Malaysia-based low-cost airline AirAsia has got the Ministry of Corporate Affairs approval for the name of its Indian venture, which will be called AirAsia (India) Private Ltd.

The name of the new company has been registered in Maharashtra, a senior official said.

The company is now in the process of incorporating itself in India and completing other formalities of submitting the required documents and certificates with the Ministry, he said. The filing process for the new venture is being completed on a fast-track basis, he added.

Before incorporating itself in India, a company needs to get its name approved by the MCA, after which it is required to file an application for incorporation.

Thereafter, the company needs to file a notice of situation of registered office, followed by filings related to particulars of appointment of managing director, directors, manager and secretary.

The Foreign Investment Promotion Board has already approved investment in the new venture, wherein Malaysia-based AirAsia would hold 49 per cent stake, Tata Sons 30 per cent and Arun Bhatia of Telestra Tradeplace 21 per cent.

The airline needs to get a no-objection certificate from the Aviation Ministry and thereafter an air transport licence from the DGCA (Directorate-General of Civil Aviation) to be declared a scheduled airline.
http://www.thehindubusinessline.com/industry-and-economy/logistics/airasia-fasttracks-filing-process-for-indian-venture/article4496721.ece?homepage=true&ref=wl_home

Indian airports to start accepting mobile boarding passes soon: Report

Indian domestic flyers would soon be relieved of carrying papers to airport to avoid the boarding hassles as the aviation ministry has been reported to be working on a virtual boarding pass system to be sent on users’ smartphones. These e-boarding passes would be similar to the electronic boarding pass featured in Google Now, or Samsung’s recently launched Wallet app featuring electronic boarding pass service.


According to the report, the Bureau of Civil Aviation Security (BCAS) has been proposed by the Ministry of Aviation to work on bar-coded boarding cards to be delivered on the passenger’s phones. This will work as an electronic card on user’s devices which will be e-mailed to the passengers after they register to check-in via telephonic or online modes. Showing these e-cards would allow users to board a flight without needing a hard copy of the boarding pass.

The concept has got the nod from higher authorities, and the agency concerned is now working on making it feasible to both the users as well as the CISF personnel concerned with the security checks.

Earlier this year, most Indian airports started accepting e-tickets for travelers to enter the airport. Prior to that, travelers had to show a printed copy of the ticket at the airport’s entry gates. However, airlines gave a printed copy of the boarding pass that had to be stamped after security check. The deployment of mobile boarding passes would do away with the stamping procedure as well
http://www.bgr.in/news/indian-airports-to-start-accepting-mobile-boarding-passes-soon-report/

Domestic airlines fly high in foreign skies

Domestic air travel is in a slump. But Indian carriers have managed to find a way out — flying more international routes and cashing in on the boom in foreign travel.
The number of passengers carried on the international flights of domestic private airlines increased by 5 per cent in 2012, even as fewer passengers took domestic flights. International traffic accounted for 13.2 per cent of the total 55.35 million passengers carried by private airlines in 2012, up from 12.1 per cent in 2011.
Many private carriers made the most of this. In 2012, Jet Airways and JetLite saw a measly 0.9 per cent growth in passenger traffic on domestic flights.
This was a significant drop from the double-digit growth of the previous years. But passengers taking Jet’s international flights increased 8.5 per cent in 2012.
Low-cost carrier SpiceJet’s 40 per cent growth in international traffic last year was much higher than the 21 per cent rise in its domestic traffic. The airline, which started its international operations in the last quarter of 2010 with around 50,000 passengers that year, closed 2012 having flown more than 4 lakh passengers on its international routes.
More than a million passengers flew into and out of India on IndiGo’s aircraft in 2012 — an almost five-fold increase compared with 2011 when the airline commenced its international operations (September 2011).
This was far more impressive than the 25 per cent rise in the airline’s domestic traffic in 2012. A low base may have helped, but the sharp growth in foreign traffic shows a successful foray abroad.
 Though it has completed five years in the domestic skies — a prerequisite to fly abroad — GoAir has not yet started international operations since it does not have the required 20 aircraft in its fleet.
Downfall of Kingfisher
Some of the international traffic garnered by other private carriers in 2012 seems to be at the expense of the beleaguered Kingfisher Airlines. The airline, which flew around 12.5 lakh passengers into and from India in 2011, saw its international traffic fall to just over 2 lakh last year. Kingfisher stopped its international operations last April, seven months before it halted its domestic operations.
Kingfisher wasn’t the only airline to lose out on all those international travellers. Data from the Web site of aviation regulator DGCA show that national carrier Air India’s international traffic fell by around 38 per cent between January and November 2012. But this does not take into account passengers who flew from April to November with the airline’s low-cost arm Air India Express.
The attractive deals on travel abroad, at a time when domestic fares have been skyrocketing, may have helped fill up the international flights faster in recent months. Low fares on destinations such as Dubai, Colombo, Singapore and Hong Kong appear to have been a big draw with Indian travellers.
http://www.thehindubusinessline.com/industry-and-economy/logistics/domestic-airlines-fly-high-in-foreign-skies/article4492004.ece?homepage=true&ref=wl_home
 

Chennai airport to use satellite-based technology for aircraft landing

The Chennai International Airport will use the help of satellite-based technology for precision approach and landing of aircrafts. For this, it will implement, on a pilot basis, Honeywell’s SmartPath Ground-Based Augmentation System, which uses GPS satellite data to provide accurate guidance to aircraft on approach, enabling them to fly a wide range of closely spaced, complex approaches to increase arrival capacity.SmartPath can handle up to 26 separate approaches across four runways simultaneously, as against the traditional Instrument Landing Systems that supports one approach at one end of a single runway, says a company press release.

SmartPath, which the company claims is the world’s only Ground-Based Augmentation System (GBAS) certified by the Federal Aviation Administration, was selected by the Airports Authority of India (AAI).
 With growing passenger numbers across India expected to reach 540 million annually by 2025, SmartPath will support future demand at Chennai airport by reducing delays and journey times for passengers, lowering operational costs for airlines, and increasing traffic throughput at the airport, says the release.
 The pilot project is being led by the AAI in collaboration with the US-India Aviation Cooperation Programme and with partial funding from the US Trade and Development Agency.
The AAI plans to install further GBAS infrastructure at other Indian airports in the coming years as part of its air traffic management upgrade program.
 Honeywell, in collaboration with the FAA and USTDA, will provide technical assistance and training to support SmartPath’s certification by India’s Directorate General of Civil Aviation.
http://www.thehindubusinessline.com/industry-and-economy/logistics/chennai-airport-to-use-satellitebased-technology-for-aircraft-landing/article4488811.ece?homepage=true&ref=wl_home
 

CISF to guard cargo terminals of 8 airports

NEW DELHI: With inputs of cargo terminals of big airports being a target for terror attacks and increasing theft of passenger cargo, government has put cargo terminals of eight sensitive and big airports like Delhi and Mumbai under the security cover of Central Industrial Security Force (CISF).
 Presently, cargo terminals were under the security of Airport Authority of India (AAI).
 The CISF, which is the designated force to guard 59 civil airports, will take over the cargo terminals of almost eight big airports in metros.
 "It is proposed that we take over the cargo terminals of eight big airports in the first step. More such terminals could be given to us to ensure fool-proof security," CISF director general Rajiv said.
 The other airports expected to deploy CISF guards include Bangalore, Hyderabad, Chennai, Kolkata, Kochi and Ahmedabad.
 The move has come at a time when there is a tussle between ministry of civil aviation (MCA) and ministry of home affairs (MHA) over who would have control over airport security. While MCA wants its own force, Aviation Security Force, to replace CISF, MHA has remained non-committal preferring the current arrangement.
 Senior security officials said few instances regarding the security of these terminals, which deal with huge volume of material and heavy movement of men and machine, have sent strong signals that these areas need to be regulated by a strong access-control policy so that the overall security of the airports and aircrafts is ensured.
 CISF officials said this will also bring down thefts at cargo terminals as the area will now be fully covered with CCTV coverage which will be monitored by CISF personnel. Only, recently, Parliament was informed that there have been 22 cases of theft of luggage from IGI Airport in the past six months alone.
 CISF will also take over the security of smaller airports like Jabalpur in Madhya Pradesh, Juhu airport in Mumbai and Jamnagar airport in Gujarat.
 Owing to non-fulfillment of deployment dues and other service-related commitments, CISF last year also withdrew its security personnel from five units of Food Corporation of India, a government-run paper mill in Assam's Panchgram, a bottling plant of SPCL in Vishakhapatnam and MAMC in West Bengal's Durgapur.
 The force also plans to enhance its female workforce. One of the largest among central paramilitary forces, the CISF has 4.3% women in its various ranks. There are plans to enhance the women component to about 10% of the total force strength over the years, the DG said
http://articles.timesofindia.indiatimes.com/2013-03-09/india/37581021_1_cisf-personnel-civil-airports-cargo-terminals

Ailing Air India owes Rs 4,277 cr fuel bill to OMCs

Ailing national carrier Air India owes over Rs 4,277 crore in outstanding jet fuel (ATF) bills to state-owned oil companies, the largest overdue payment by any domestic air carrier.
Unlike private carriers such as Jet Airways and Kingfisher Airlines, Air India has not given any security as insurance against default, Minister of State for Petroleum & Natural Gas Panabaaka Lakshmi informed Lok Sabha on Friday.
In a written reply to a question, the Minister of the total outstanding of Rs 4,277.11 crore as on December 31, 2012, a sum of Rs 2,639.65 crore is overdue payment.
Overdue payment is the outstanding that has remained unpaid even after expiry of a 90 day credit or grace period provided by the oil companies.
She had in December told the Rajya Sabha that Air India's outstanding was Rs 4,064.77 crore, with Rs 2,571.73 crore as overdue payment. Friday’s replay indicates that Air India's outstanding has risen since then. Since the merger of Air India (international operations) and erstwhile Indian Airlines (domestic flights) in 2007, the merged entity Air India Ltd has never made a profit. However this year’s economic survey said that the company will achieve positive EBIDTA (earnings before interest, taxes, depreciation and Amoritization) in the results for the Financial Year 2012-13.
Air India owes Rs 2,514.97 crore to Indian Oil Corp (IOC), Rs 754.75 crore to Bharat Petroleum Corp Ltd (BPCL) and Rs 1,007.39 crore to Hindustan Petroleum Corp Ltd (HPCL).
Jet Airways owes Rs 910 crore to IOC but of this only Rs 107.52 crore is overdue. The rest is under 90-day credit period that oil companies extend to Jet and other airlines including Air India.
Jet owes Rs 112.06 crore to BPCL, of which Rs 31.29 crore is overdue. Jet has covered its outstanding with IOC with a Rs 923 crore bank security which can be encashed in case of default in payment. The outstanding of BPCL has been covered by a Rs 150 crore security.
Kingfisher ran an outstanding of only Rs 66.72 crore with HPCL. All of this is overdue payment but it is covered by a Rs 200 crore corporate guarantee, she said.
GoAir had all of its Rs 112.53 crore outstanding with IOC more than covered with a Rs 115 crore bank guarantee. Spice Jet too had its Rs 91.23 crore outstanding covered with a Rs 95 crore bank guarantee.
http://www.deccanherald.com/content/317510/ailing-air-india-owes-rs.html
 

Its About FDI,Not Old or New Airline: Sharma

Commerce and Industry Minister Anand Sharma has said foreign direct investment (FDI) norms for the aviation sector do not make a distinction between existing and new airlines,brushing aside Civil Aviation Minister Ajit Singhs contention that the policy needs to be clarified.I dont want to get into what the civil aviation ministry's view is.But as per Press Note 6,the intent of the government is clear.We want to allow foreign airlines to invest in civil aviation,be it in existing air transport services or the capital of an Indian company.We are not talking greenfield or brownfield here.Its foreign investment by foreign airlines in the civil aviation sector, said Sharma.The aviation ministry had opposed the AirAsia-Tata proposal to launch new airlines at a meeting of the Foreign Investment Promotion Board (FIPB) earlier this week,on the grounds that foreign airlines were allowed to invest only in existing carriers.But this objection was over-ruled in the meeting,with officials of the finance ministry and Department of Industrial Policy and Promotion arguing that a strategically placed comma in the FDI rules made it clear that foreign airlines could be allowed to invest in Indian companies,and it was not necessary that these companies should have operational air transport services.After the FIPB meeting,Singh had said the commerce and industry ministry,which notifies foreign investment norms in the country,should amend the press note that lays down guidelines for FDI in aviation.The commerce ministry should change the note they issued the note, the aviation minister told reporters on Wednesday.
http://lite.epaper.timesofindia.com/getpage.aspx?articles=yes&pageid=1&max=true&articleid=Ar00102&sectid=0edid=&edlabel=ETM&mydateHid=09-03-2013&pubname=Economic+Times+-+Mumbai+-+Front+Page&title=It%E2%80%99s+About+FDI%2C+Not+Old+or+New+Airline%3A+Sharma&edname=&publabel=ET
 

Feeder airport: Knight Frank to carry out feasibility study

The Kerala State Industrial Development Corporation has appointed Knight Frank (India) Pvt Ltd to carry out the techno-economic feasibility study, and environment impact assessment study for the proposed feeder airport at Wayanad.
The Government will take a call on the proposal on submission of the reports. The study will be completed in six months, a statement issued here said.
The State Government plans to set up feeder airport at Wayanad to boost the connectivity, which will enhance the tourism potential of the district and the State.
At present, Wayanad is connected only by road. Feeder airports will offer connectivity to the nearest airports in the area. The Airport Authority of India had suggested setting up the airport in about 100 Ha in Panamaram-Nadavayal villages in Wayanad district. The airport is proposed to be developed in a public-private partnership model.
 KSIDC was entrusted with the preparation of techno-economic feasibility study and environment impact assessment. It had invited offers from global consultants for carrying out the study, the statement added.
http://www.thehindubusinessline.com/industry-and-economy/logistics/feeder-airport-knight-frank-to-carry-out-feasibility-study/article4488646.ece?homepage=true&ref=wl_home
 

Chennai airport to use satellite-based technology for aircraft landing

The Chennai International Airport will use the help of satellite-based technology for precision approach and landing of aircrafts. For this, it will implement, on a pilot basis, Honeywell’s SmartPath Ground-Based Augmentation System, which uses GPS satellite data to provide accurate guidance to aircraft on approach, enabling them to fly a wide range of closely spaced, complex approaches to increase arrival capacity.SmartPath can handle up to 26 separate approaches across four runways simultaneously, as against the traditional Instrument Landing Systems that supports one approach at one end of a single runway, says a company press release.

SmartPath, which the company claims is the world’s only Ground-Based Augmentation System (GBAS) certified by the Federal Aviation Administration, was selected by the Airports Authority of India (AAI).
 With growing passenger numbers across India expected to reach 540 million annually by 2025, SmartPath will support future demand at Chennai airport by reducing delays and journey times for passengers, lowering operational costs for airlines, and increasing traffic throughput at the airport, says the release.
 The pilot project is being led by the AAI in collaboration with the US-India Aviation Cooperation Programme and with partial funding from the US Trade and Development Agency.
The AAI plans to install further GBAS infrastructure at other Indian airports in the coming years as part of its air traffic management upgrade program.
 Honeywell, in collaboration with the FAA and USTDA, will provide technical assistance and training to support SmartPath’s certification by India’s Directorate General of Civil Aviation.
http://www.thehindubusinessline.com/industry-and-economy/logistics/chennai-airport-to-use-satellitebased-technology-for-aircraft-landing/article4488811.ece?homepage=true&ref=wl_home

AirAsia entry could intensify price war in domestic skies

The likely entry of AirAsia into the domestic market has got its main competitors – Indigo, SpiceJet, Air India and Jet Airways – bracing for a severe price war.
While airline officials refused to talk on the record, off the record they said that every airline would have to take steps to protect market share.
Many airline officials pointed to the changes in the Indian market scenario in the past few months after reports of AirAsia’s possible entry.
In January, SpiceJet offered 10 lakh tickets at heavily discounted prices for travel during the lean season. Soon an all out price war broke out.
Some, such as Jet Airways, made public announcements about the price cut, while Air India and IndiGo did this in a more subdued manner.
With AirAsia’s emphasis on offering low fares, the existing airlines say they will have little choice but to match or offer lower fares to retain passengers.
 “No one likes competition. Each player is keen to increase his market share. If you have 25 per cent market share, would you not like to go to 40 per cent? A new player can spoil the chances of increasing the market player of an existing airline, as the market is not really expanding,” said an officer of a large domestic airline.
 His point is borne out by the figures provided by the Directorate General of Civil Aviation, which show that during calendar year 2012, the number of passengers carried by domestic airlines declined by three per cent at 5.88 crore, compared with 6.06 crore in 2011.
 Some in the industry, however, feel that the AirAsia’s entry could be a game changer.
“The entire AirAsia model is based on inducting aircraft at a fast pace and expanding the number of flights on offer. Here the Government gives permission for aircraft import. And it cannot make a policy which allows easy import for one airline and not another,” said an officer working with a private airline.
In the last few months, a Delhi-based low-cost airline has complained about Government delays in import of aircraft.
http://www.thehindubusinessline.com/industry-and-economy/logistics/airasia-entry-could-intensify-price-war-in-domestic-skies/article4488480.ece?homepage=true&ref=wl_home

CISF to guard cargo terminals of 8 airports

NEW DELHI: With inputs of cargo terminals of big airports being a target for terror attacks and increasing theft of passenger cargo, government has put cargo terminals of eight sensitive and big airports like Delhi and Mumbai under the security cover of Central Industrial Security Force (CISF).
 Presently, cargo terminals were under the security of Airport Authority of India (AAI).
 The CISF, which is the designated force to guard 59 civil airports, will take over the cargo terminals of almost eight big airports in metros.
 "It is proposed that we take over the cargo terminals of eight big airports in the first step. More such terminals could be given to us to ensure fool-proof security," CISF director general Rajiv said.
 The other airports expected to deploy CISF guards include Bangalore, Hyderabad, Chennai, Kolkata, Kochi and Ahmedabad.
 The move has come at a time when there is a tussle between ministry of civil aviation (MCA) and ministry of home affairs (MHA) over who would have control over airport security. While MCA wants its own force, Aviation Security Force, to replace CISF, MHA has remained non-committal preferring the current arrangement.
 Senior security officials said few instances regarding the security of these terminals, which deal with huge volume of material and heavy movement of men and machine, have sent strong signals that these areas need to be regulated by a strong access-control policy so that the overall security of the airports and aircrafts is ensured.
 CISF officials said this will also bring down thefts at cargo terminals as the area will now be fully covered with CCTV coverage which will be monitored by CISF personnel. Only, recently, Parliament was informed that there have been 22 cases of theft of luggage from IGI Airport in the past six months alone.
 CISF will also take over the security of smaller airports like Jabalpur in Madhya Pradesh, Juhu airport in Mumbai and Jamnagar airport in Gujarat.
 Owing to non-fulfillment of deployment dues and other service-related commitments, CISF last year also withdrew its security personnel from five units of Food Corporation of India, a government-run paper mill in Assam's Panchgram, a bottling plant of SPCL in Vishakhapatnam and MAMC in West Bengal's Durgapur.
 The force also plans to enhance its female workforce. One of the largest among central paramilitary forces, the CISF has 4.3% women in its various ranks. There are plans to enhance the women component to about 10% of the total force strength over the years, the DG said
http://articles.timesofindia.indiatimes.com/2013-03-09/india/37581021_1_cisf-personnel-civil-airports-cargo-terminals