Japan to allow airlines to resume 787 flights

The Japan government is poised to allow Japanese airlines to resume flying grounded Boeing 787s once they complete installation of systems to reduce fire risk in problematic lithium ion batteries, Akihiro Ohta, Transport Minister said today.

 The approval could come as early as this evening following an expected formal safety order from the US federal regulators, he said in a statement on the ministry’s website.

 The 50 Dreamliner jets in service worldwide were grounded in mid-January after incidents with smouldering batteries occurred aboard two different planes.

 The groundings have led to hundreds of cancelled flights and big revenue losses.

 The US Federal Aviation Administration posted a safety order online yesterday allowing 787 flights to resume once the batteries are replaced with a revamped system that manufacturer Boeing Co. says sharply reduces the risk of fire.

 Japan’s two biggest airlines began installing revamped lithium ion batteries over the past week. All Nippon Airways owns 17 of the jets and Japan Airlines has seven.

 They declined to comment on when their 787 flights might resume

http://www.thehindubusinessline.com/news/international/japan-to-allow-airlines-to-resume-787-flights/article4657382.ece

Small investors, HNIs hike Kingfisher stake; FIIs trim holding

Small individual investors and high net-worth individuals (HNIs) have continued their share buying spree in Kingfisher Airlines, despite the ailing carrier been grounded for nearly seven months after its licence was suspended.

However, foreign institutional investors (FIIs) reduced their exposure to the beleaguered airlines to 0.85 per cent at the close of last quarter ended March 31, from 1.07 per cent three months ago. The holding of domestic institutions has also came down during this period.

The high-networth individuals raised their stake in cash-strapped carrier to 16.58 per cent at the end of the March quarter from 15.74 per cent in the preceding three months, while holding of small individual investors rose to 20.59 per cent from 19.25 per cent, as per stock exchanges data. Small investors (defined as those holding up to Rs 1 lakh worth shares in a company), and HNIs (individuals with shares worth over Rs 1 lakh) have been raising their respective stakes in Vijay Mallya-led Kingfisher Airlines since April-June quarter of 2012.

Besides, the latest shareholding data of Kingfisher shows that the number of small individual and HNI shareholders have also increased considerably during this time.

The total promoter holding declined to 32.12 per cent in the January-March quarter from 35.83 per cent in December quarter.

The promoters have pledged 89 per cent of their shares with various lenders, leaving them with a non-encumbered stake of just 3.55 per cent.

The shareholding of institutional investors (insurance, banks and financial institutions) has also come down in the March quarter to 13.76 per cent from 14.13 per cent in the December quarter, data showed.

The stake of domestic institutional investors slipped marginally to 13.06 per cent in December quarter from 13.15 per cent in the preceding three months.

The operations of Kingfisher remains disrupted since September 30, first due to a strike by its engineers and pilots, and then the lockout declared by the management.

This was followed by suspension of its flying permit by Directorate General of Civil Aviation after the carrier failed to produce a plan to revive its operations.

Shares of Kingfisher have declined by 54 per cent during the quarter under review. The company’s scrip is currently trading at Rs 7 level.

The total number of small shareholders currently stand at 2.30 lakh against 2.22 lakh at the end of December 31, 2012 and the number of HNIs were 3,653 compared to 3,390 during the same period.

http://www.thehindubusinessline.com/markets/small-investors-hnis-hike-kingfisher-stake-fiis-trim-holding/article4657194.ece

AAI preparing detailed project report for Itanagar airport

The Airports Authority of India (AAI) is preparing a Detailed Project Report (DPR) for the proposed airport here, official sources said on Friday. Besides, the AAI is in the process of obtaining environmental and other clearances for the proposed airport.

The draft Master Plan for the airport site at Holongi projects a requirement of 320 hectares of land, which has been forwarded to the state government, the sources said.

This was informed to the local MP Takam Sanjoy by Civil Aviation Minister Ajit Singh in a letter yesterday, the sources said.

http://www.thehindubusinessline.com/industry-and-economy/logistics/aai-preparing-detailed-project-report-for-itanagar-airport/article4657247.ece

Competition watchdog may examine Jet-Etihad deal on its own

The Competition Commission of India is unlikely to wait for a formal reference in order to examine the Jet Airways-Etihad Airways deal to ensure that the deal does not create a monopoly in the aviation sector, sources close to the development said.

 “The Commission has the prerogative to act on its own in a cross-border acquisition of this nature. However, it is believed that Jet Airways may approach the Commission shortly to seek its go ahead in the deal,” the sources added.

 Earlier this week, Etihad Airways, the national carrier of Abu Dhabi, bought a 24 per cent stake in Jet Airways for Rs 2,054 crore ($379 million).

 Just before the deal was announced, India and Abu Dhabi exchanged a new bilateral air services agreement that sharply increases the number of weekly flights that carriers from both countries will be allowed to operate between the two countries.

 The agreement will see Jet Airways, Air India, IndiGo and SpiceJet from the Indian side and Etihad from the Abu Dhabi side offering a total of 36,670 seats a week in each direction, over the next three years.

At the moment, the airlines are allowed to operate about 13,300 seats a week.

The equity sale deal between Jet and Etihad would increase the combine’s global strength to cover as many 140 destinations providing direct foreign connectivity to Indian passengers from 23 metro and non-metro cities. Also, under the agreement, Jet and Etihad will explore joint purchasing opportunities for fuel, spare parts and equipment, among others.

Indian carriers including the state-owned Air India, as well as private sector airports in the country have raised concerns about the deal. Airlines from India claim that India and Abu Dhabi did not need to exchange more air seats between each other as the existing air services agreement has not yet been fully utilised.

At the moment, airlines from Abu Dhabi and India use about 80 per cent of the seats that they have been allowed to operate. Jet Airways, however, says that it is incorrect to say that the India-Abu Dhabi bilateral, that allows airlines from both sides to operate regular flights, is not fully utilised.

Airlines also allege that the tie-up between Jet and Etihad will see Indian passengers being diverted via Abu Dhabi on their journey onwards to the US, Europe and Canada.

 According to the Competition Act, all high-value merger and acquisitions with combined turnover of Rs 4,500 crore or more need the approval of the competition watchdog. Jet and Etihad expect the deal to go through in the next two to three months.

http://www.thehindubusinessline.com/industry-and-economy/logistics/competition-watchdog-may-examine-jetetihad-deal-on-its-own/article4657922.ect