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Showing posts with label General Aviation Oct 2007. Show all posts
Showing posts with label General Aviation Oct 2007. Show all posts
Wednesday, October 31, 2007
Monday, October 29, 2007
Ministry wants end to PSU oilcos' ATF monopoly
New Delhi: The aviation turbine fuel (ATF) market, till now the monopoly of public sector oil companies, could soon witness competition as the ministry of civil aviation has urged the Airports Authority of India (AAI) to develop common fuel infrastructure at airports and enable private oil retailers, such as Reliance and Essar, to enter the fray. The ministry has said throughput charge should not be the basis for awarding contracts to oil companies for supplying the fuel.
The move is intended to stop the trend of public sector oil companies, such as IOC, quoting a higher throughput charge to bag the contract and then passing on the extra burden to airlines. AAI awards fuel supply contracts to companies that promise the maximum throughput charge to it.
Airlines feel competition in ATF supply would lead to lower prices. They have been pushing for oil supply infrastructure to be converted into a common carrier so more players can enter this business. The civil aviation ministry is also supportive of this move as it could lead to some moderation in ATF prices in India, which are among the highest in the world.
“We have asked AAI to help us rationalise the fuel price in the country and bring it to international levels,” an official in the ministry of civil aviation said.
29/10/07 Nirbhay Kumar/Economic Times
The move is intended to stop the trend of public sector oil companies, such as IOC, quoting a higher throughput charge to bag the contract and then passing on the extra burden to airlines. AAI awards fuel supply contracts to companies that promise the maximum throughput charge to it.
Airlines feel competition in ATF supply would lead to lower prices. They have been pushing for oil supply infrastructure to be converted into a common carrier so more players can enter this business. The civil aviation ministry is also supportive of this move as it could lead to some moderation in ATF prices in India, which are among the highest in the world.
“We have asked AAI to help us rationalise the fuel price in the country and bring it to international levels,” an official in the ministry of civil aviation said.
29/10/07 Nirbhay Kumar/Economic Times
Sunday, October 28, 2007
Plan your dream vaction in advance to get bargains
New Delhi: With year-end vacations round the corner, airlines are vying with each other to launch special packages and promotional fares, particularly seeing the new demand for offbeat destinations.
These new or off-beat destinations include places such as Europe, Germany, Austria, South Africa, New Zealand and even China where tourists are planning their year-end holidays.
Says Rajji Rai, secretary general, Travel Agent Association of India (TAAI): “Air travel has increased by 18 to 20% in the past year. We expect at least the same rise this time, particularly in next three months.
But off-beat is where the interesting action lies. People are coming to us looking for something different, from Innsbruck in Austria to Auckland in New Zealand. Advance bookings have already started. We hope to make as much in next three months as we do in the rest of the year.”
Another reason why people are opting for these off-beat destinations is attractive packages. A five-night-six days trip to Austria will cost you Rs 60,000 per person, while the same package to Germany will cost you Rs 65,000 per person.
A five-night package to Europe and South Africa will cost anything between Rs 80,000 and Rs 85,000. For China, the cost per person will be Rs 50,000.
28/10/07 Raja Awasthi & Dheeraj Tiwari/Economic Times
These new or off-beat destinations include places such as Europe, Germany, Austria, South Africa, New Zealand and even China where tourists are planning their year-end holidays.
Says Rajji Rai, secretary general, Travel Agent Association of India (TAAI): “Air travel has increased by 18 to 20% in the past year. We expect at least the same rise this time, particularly in next three months.
But off-beat is where the interesting action lies. People are coming to us looking for something different, from Innsbruck in Austria to Auckland in New Zealand. Advance bookings have already started. We hope to make as much in next three months as we do in the rest of the year.”
Another reason why people are opting for these off-beat destinations is attractive packages. A five-night-six days trip to Austria will cost you Rs 60,000 per person, while the same package to Germany will cost you Rs 65,000 per person.
A five-night package to Europe and South Africa will cost anything between Rs 80,000 and Rs 85,000. For China, the cost per person will be Rs 50,000.
28/10/07 Raja Awasthi & Dheeraj Tiwari/Economic Times
Saturday, October 27, 2007
India, EU paving the way for open skies agreement
New Delhi: India and the European Union could sign an agreement on November 30 that would pave the way for an eventual open skies agreement between them, the Head of the Delegation of the European Union, Ms D. Smajda said on Friday.
Speaking to the media at a conference to announce the launch of Jet Airways daily flight on the Delhi-Brussels-New York sector, Ms Smajda said the finalisation of an agreement during the India-EU annual Summit meeting would provide the legal framework to work towards an open skies agreement between India and the EU.
Addressing the meeting, the Jet Airways Chairman, Mr Naresh Goyal, said that the airline was keen to operate more flights to the US and planned to connect Washington D.C and Chicago among other cities.
“The airline plans to launch a service on the Mumbai-Shanghai-San Francisco from February next year which would make us the only carrier other than the Chinese and the US carriers to operate on the route,” Mr Goyal said.
27/10/07 Kamal Narang/Business Line
Speaking to the media at a conference to announce the launch of Jet Airways daily flight on the Delhi-Brussels-New York sector, Ms Smajda said the finalisation of an agreement during the India-EU annual Summit meeting would provide the legal framework to work towards an open skies agreement between India and the EU.
Addressing the meeting, the Jet Airways Chairman, Mr Naresh Goyal, said that the airline was keen to operate more flights to the US and planned to connect Washington D.C and Chicago among other cities.
“The airline plans to launch a service on the Mumbai-Shanghai-San Francisco from February next year which would make us the only carrier other than the Chinese and the US carriers to operate on the route,” Mr Goyal said.
27/10/07 Kamal Narang/Business Line
Costlier ATF may push air fares
New Delhi: Many domestic airlines have almost decided to raise fuel surcharge - that was hiked by Rs 100 to touch the Rs 1,200 mark on October 1 - again very soon as the international price of crude has touched an all-time high of $ 92.
Oil PSUs declare aviation turbine fuel (ATF) prices on the first of every month and a hike of up to Rs 300 is on the cards from November 2 or 3. Passengers who book their tickets before the hike is announced, won't be required to pay this difference. But coupled with the higher basic fares being charged in this peak travel season, domestic ticket prices are headed firmly northward from next month.
The aviation ministry and airlines have been fighting g a losing battle to keep ATF prices in control because raising petrol, diesel, LPG and kerosene prices is a political minefield. Air travellers, on the other hand, are still considered to be an elite class that can be asked to keep paying more to cross subsidise the types of fuel.
27/10/07 Times of India
Oil PSUs declare aviation turbine fuel (ATF) prices on the first of every month and a hike of up to Rs 300 is on the cards from November 2 or 3. Passengers who book their tickets before the hike is announced, won't be required to pay this difference. But coupled with the higher basic fares being charged in this peak travel season, domestic ticket prices are headed firmly northward from next month.
The aviation ministry and airlines have been fighting g a losing battle to keep ATF prices in control because raising petrol, diesel, LPG and kerosene prices is a political minefield. Air travellers, on the other hand, are still considered to be an elite class that can be asked to keep paying more to cross subsidise the types of fuel.
27/10/07 Times of India
BA says India is 2nd largest market
Mumbai: British Airways has identified India as the second largest market after the US in volume terms and the third after Australia in terms of its revenue share. Since last two year, the premiere airline has increased its weekly flights to Indian destinations from 19 to 43 flights.
Robbie Baird, BA's area general manager for the Asia-Pacific Region emphasised the company's plans to stay big in India. He indicated that large planes like Airbus A-380, or the long haul Boeing B-787s could be introduced in the Indian sector in next 4-5 years depending upon the demand growth.
Baird mentioned that the airline's policy was to consolidate and then expand on the existing network.
26/10/07 Business Standard
Robbie Baird, BA's area general manager for the Asia-Pacific Region emphasised the company's plans to stay big in India. He indicated that large planes like Airbus A-380, or the long haul Boeing B-787s could be introduced in the Indian sector in next 4-5 years depending upon the demand growth.
Baird mentioned that the airline's policy was to consolidate and then expand on the existing network.
26/10/07 Business Standard
Flights from Kerala clock 100% rise in 3 years
Chennai: There has been more than 100 per cent increase in air services from Kerala in the last three years, according to figures available with the Ministry of Civil Aviation.
Currently, the total number of flights per week from Thiruvananthapuram is 103, of which 47 are by Indian carriers and 56 by foreign carriers.
In 2004, the total flights per week from the city stood at 54 – 18 by Indian carriers and 36 by foreign carriers.
Currently, Kochi gets a total of 120 services per week – 62 by Indian carriers and 58 by foreign carriers.
In 2004, there were 61 services per week – 31 by Indian carriers and 30 by foreign carriers.
In Kozhikode, there were 43 services per week in 2004, all of which were provided by Indian carriers.
Now, there are 90 services per week, of which 82 are by Indian carriers and the rest by foreign carriers. Air India Express currently operates 106 services per week to the Gulf sector - 38 from Kozhikode, 33 from Thiruvananthapuram and 35 from Kochi.
26/10/07 Business Line
Currently, the total number of flights per week from Thiruvananthapuram is 103, of which 47 are by Indian carriers and 56 by foreign carriers.
In 2004, the total flights per week from the city stood at 54 – 18 by Indian carriers and 36 by foreign carriers.
Currently, Kochi gets a total of 120 services per week – 62 by Indian carriers and 58 by foreign carriers.
In 2004, there were 61 services per week – 31 by Indian carriers and 30 by foreign carriers.
In Kozhikode, there were 43 services per week in 2004, all of which were provided by Indian carriers.
Now, there are 90 services per week, of which 82 are by Indian carriers and the rest by foreign carriers. Air India Express currently operates 106 services per week to the Gulf sector - 38 from Kozhikode, 33 from Thiruvananthapuram and 35 from Kochi.
26/10/07 Business Line
Friday, October 26, 2007
‘Boom in domestic aviation will continue for at least a year more’
New Delhi: The boom in the domestic airline industry will continue for at least another one year with passenger traffic likely to grow at 20-30 per cent.
This is the opinion of more than 60 per cent of the chief executive officers who participated in a snap poll conducted by the Federation of Indian Airlines (FIA).
While declining to divulge which airlines were more optimistic on passenger growth prospects, sources said that the meeting where the poll was carried out was attended by officials of the eight domestic airlines including the Chairman and Managing Director, Air India, Mr V. Thulasidas.
The growth of the industry could be faster if steps were taken to bring down the cost of aviation turbine fuel as also develop airport infrastructure, the CEOs felt. A majority of those present were of the opinion that three-to-five years was a realistic time frame for improvement in airport infrastructure in the metro cities, while it would take one-to-three years for the similar development at airports in non-metro cities.
There was also a feeling that the current Government policy of not allowing two airports in a city needed to be reviewed.
26/10/07 Business Line
This is the opinion of more than 60 per cent of the chief executive officers who participated in a snap poll conducted by the Federation of Indian Airlines (FIA).
While declining to divulge which airlines were more optimistic on passenger growth prospects, sources said that the meeting where the poll was carried out was attended by officials of the eight domestic airlines including the Chairman and Managing Director, Air India, Mr V. Thulasidas.
The growth of the industry could be faster if steps were taken to bring down the cost of aviation turbine fuel as also develop airport infrastructure, the CEOs felt. A majority of those present were of the opinion that three-to-five years was a realistic time frame for improvement in airport infrastructure in the metro cities, while it would take one-to-three years for the similar development at airports in non-metro cities.
There was also a feeling that the current Government policy of not allowing two airports in a city needed to be reviewed.
26/10/07 Business Line
Worries, hopes at the flight deck
The chief executives of Indian airlines are worried that infrastructure constraints, especially at airports, will crimp India’s aviation boom. This is among the findings of a CEO poll conducted by the Federation of Indian Airlines, an industry lobby group. Top representatives of local carriers also said they are concerned about current regulatory guidelines and outdated rules.
Maintaining the expectations of an average 30% growth in passengers, the respondents hoped that infrastructure constraints at airports would be addressed in the next three-five years. “Infrastructure constraints at key airports are leading to additional operating costs, such as fuel, maintenance and delayed flights. Due to infrastructure bottlenecks, planes are having 5-10% additional flying time. The impact of this is approximately $80 million (Rs316 crore) a year,” said Saroj K. Datta, executive director of Jet Airways India Ltd.
According to industry estimates, Indian airlines made combined losses of $500 million in 2006-07.
25/10/07 P.R. Sanjai/Livemint
Maintaining the expectations of an average 30% growth in passengers, the respondents hoped that infrastructure constraints at airports would be addressed in the next three-five years. “Infrastructure constraints at key airports are leading to additional operating costs, such as fuel, maintenance and delayed flights. Due to infrastructure bottlenecks, planes are having 5-10% additional flying time. The impact of this is approximately $80 million (Rs316 crore) a year,” said Saroj K. Datta, executive director of Jet Airways India Ltd.
According to industry estimates, Indian airlines made combined losses of $500 million in 2006-07.
25/10/07 P.R. Sanjai/Livemint
Asia-Pacific to lead global growth in air passengers
Strong growth in the Asia-Pacific region will see its share of global airline passenger traffic increase from 23 per cent last year to 27 per cent of the global total of 2.75 billion passengers by 2011, aviation industry body IATA says.
This is equivalent to a 279 million increase in annual passengers within the region over the five years.
Asia-Pacific will have a higher share of the global market than the US domestic market, although it will still be slightly smaller than the North American market as a whole.
The International Air Transport Association figures show the 2.75 billion figure for total travellers represents a 29 per cent increase on those flying last year.
IATA says the number of travellers taking international flights would increase to 980 million from 760 million in the next five years, with average annual growth of 5.1 per cent.
On domestic routes, passenger demand is expected to hit 1.77 billion by 2011, compared to the 1.37 billion who flew in 2006, in part because of expanded flight traffic inside large countries such as India and China.
26/10/07 Grant Bradley/New Zealand Herald, New Zealand
This is equivalent to a 279 million increase in annual passengers within the region over the five years.
Asia-Pacific will have a higher share of the global market than the US domestic market, although it will still be slightly smaller than the North American market as a whole.
The International Air Transport Association figures show the 2.75 billion figure for total travellers represents a 29 per cent increase on those flying last year.
IATA says the number of travellers taking international flights would increase to 980 million from 760 million in the next five years, with average annual growth of 5.1 per cent.
On domestic routes, passenger demand is expected to hit 1.77 billion by 2011, compared to the 1.37 billion who flew in 2006, in part because of expanded flight traffic inside large countries such as India and China.
26/10/07 Grant Bradley/New Zealand Herald, New Zealand
Carriers loath to ceding ground
New Delhi: Private airlines have asked the government for permission to partly retain ground handling facilities even after the new policy comes into effect in 2009.
The new ground handling policy allows only three agencies - the airport operator, subsidiary companies of Air India, Indian or their JVs, and any other ground handling service provider selected through competitive bidding on a revenue sharing basis - to conduct ground handling services after January 1, 2009.
These restrictions would be in place across six metro airports - Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.
In a meeting chaired by the civil aviation secretary Ashok Chawla, CEOs of private airlines have sought permission to retain ground handling activities at least till the customer checks in. But the airlines’ plea is unlikely to be accepted just yet.
Once the policy comes into effect, functions such as loading, unloading and delivery of baggage from the aircraft; cabin cleaning; delivery of passengers from terminal to tarmac and vice-versa - all of these would go out of the private airlines’ purview.
26/10/07 Sindhu Bhattacharya/Daily News & Analysis
The new ground handling policy allows only three agencies - the airport operator, subsidiary companies of Air India, Indian or their JVs, and any other ground handling service provider selected through competitive bidding on a revenue sharing basis - to conduct ground handling services after January 1, 2009.
These restrictions would be in place across six metro airports - Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.
In a meeting chaired by the civil aviation secretary Ashok Chawla, CEOs of private airlines have sought permission to retain ground handling activities at least till the customer checks in. But the airlines’ plea is unlikely to be accepted just yet.
Once the policy comes into effect, functions such as loading, unloading and delivery of baggage from the aircraft; cabin cleaning; delivery of passengers from terminal to tarmac and vice-versa - all of these would go out of the private airlines’ purview.
26/10/07 Sindhu Bhattacharya/Daily News & Analysis
Thursday, October 25, 2007
Airlines asked to set up regulator
New Delhi: The aviation ministry asked the domestic carriers to set up an independent industry regulator, failing which the government may be forced to create some other mechanism and impose it on them. The ministry had earlier accepted airlines’ views on the issue that a regulator is needed for monopolies like airports and passengers are free to choose airlines they consider consumer-friendly. Following this, the Airports Economic Regulatory Authority (AERA) Bill did not cover airlines.
"This Bill is with the Parliamentary standing committee on transport, tourism and culture. There’s near unanimity among the members of this panel that airlines need to have a regulator..." said a source. Some MPs are learnt to have expressed concern over the omission of airlines from AERA Bill.
In a meeting, top ministry officials, headed by aviation secretary Ashok Chawla, told airline CEOs to formulate some regulatory mechanism.
On its part, a senior official of the Federation of Indian Airlines (a joint forum of several carriers) dismissed the need for a regulator. "Over time an airline develops a reputation among passengers for being good or bad. The competition means a flier can choose the airline he or she wishes to fly and falling numbers alone can force an erring player to improve," he said.
25/10/07 Saurabh Sinha/Times of India
"This Bill is with the Parliamentary standing committee on transport, tourism and culture. There’s near unanimity among the members of this panel that airlines need to have a regulator..." said a source. Some MPs are learnt to have expressed concern over the omission of airlines from AERA Bill.
In a meeting, top ministry officials, headed by aviation secretary Ashok Chawla, told airline CEOs to formulate some regulatory mechanism.
On its part, a senior official of the Federation of Indian Airlines (a joint forum of several carriers) dismissed the need for a regulator. "Over time an airline develops a reputation among passengers for being good or bad. The competition means a flier can choose the airline he or she wishes to fly and falling numbers alone can force an erring player to improve," he said.
25/10/07 Saurabh Sinha/Times of India
Bombardier, Alenia fly high on boom in turboprop sales
Bombardier Inc. and Europe's Alenia Aeronautica are riding high on the back of a boom in turboprop airliner sales that has been driven by surging fuel prices and expanding air travel in Europe, the Middle East, India and Asia.
This week, Bombardier has signed orders for its 72-to-78-seat Q400 turboprop, potentially worth $1.5 billion U.S.
Industry reports say it may soon boost production at the same Toronto assembly plant it considered closing in 2004 for a lack of orders.
It's the same story for Alenia, the joint venture of Italy's Finmeccanica and EADS that builds the 50-to-70-seat turboprops in France. Orders are rolling in, output is rising and a technical upgrade is on the way. It may launch a larger version in 2015.
Aside from North America, Q400s are flying in Africa, Europe and the Asia-Pacific area. But Bombardier and Alenia are selling more turboprops in emerging markets that are taking off because of the transfer of oil wealth.
The Alenia product outsells the Q400 in some markets, especially India, but it is slower than the Q400 and its range is shorter.
24/10/07 Montreal Gazette, Canada
This week, Bombardier has signed orders for its 72-to-78-seat Q400 turboprop, potentially worth $1.5 billion U.S.
Industry reports say it may soon boost production at the same Toronto assembly plant it considered closing in 2004 for a lack of orders.
It's the same story for Alenia, the joint venture of Italy's Finmeccanica and EADS that builds the 50-to-70-seat turboprops in France. Orders are rolling in, output is rising and a technical upgrade is on the way. It may launch a larger version in 2015.
Aside from North America, Q400s are flying in Africa, Europe and the Asia-Pacific area. But Bombardier and Alenia are selling more turboprops in emerging markets that are taking off because of the transfer of oil wealth.
The Alenia product outsells the Q400 in some markets, especially India, but it is slower than the Q400 and its range is shorter.
24/10/07 Montreal Gazette, Canada
In-flight mags feel pinch of video
Mumbai: Do passengers still read in-flight magazines? Even if they do, the audio-visual treat on flights have largely robbed these publications of their glossy charm.
With the dawn of on-flight entertainment (IFE) systems in the country, advertisers, along with passengers are now under the spell of the audio-visual medium.
Kingfisher Airlines, Jet Airways and Air India have equipped their aircraft with IFE.
With big money involved and advertising options multiplying, the magazines might just feel the pinch.
Maneck Davar of Spenta Multimedia, which publishes Jet Wings, doesn’t believe that IFE is too much of a threat as of now.
Sources in the IFE ad sales team for Jet Airways agree with this.
25/10/07 Nirmal John/Daily News & Analysis
With the dawn of on-flight entertainment (IFE) systems in the country, advertisers, along with passengers are now under the spell of the audio-visual medium.
Kingfisher Airlines, Jet Airways and Air India have equipped their aircraft with IFE.
With big money involved and advertising options multiplying, the magazines might just feel the pinch.
Maneck Davar of Spenta Multimedia, which publishes Jet Wings, doesn’t believe that IFE is too much of a threat as of now.
Sources in the IFE ad sales team for Jet Airways agree with this.
25/10/07 Nirmal John/Daily News & Analysis
Wednesday, October 24, 2007
Central clearance for greenfield airports may go
New Delhi: The Government plans to do away with the mandatory approval of the Central Government for setting up greenfield airports. An inter-Ministerial Group (IMG) set up to recommend principles, guidelines and licensing conditions for greenfield airports has recommended that mandatory approval for such airports not be required except in special cases.
``If a greenfield airport is to come up within a 150 km radius of an existing airport or the proposed airport would be in a defence airfield then it would still need to be cleared by the Centre. Otherwise the promoter can approach the Ministry of Civil Aviation and the greenfield airport would be operational after the Directorate General of Civil Aviation (DGCA) gives the licence,” a senior Government official said.
At present any proposal for setting up of an airport requires to be cleared by the Union Cabinet. The draft proposals would need to be cleared by the Committee on Infrastructure and the Union Cabinet before it can be implemented.
The work connected with providing air traffic services, security, customs and immigration among others at these greenfield airports would continue to be carried out by Central agencies.
An official statement issued on Tuesday adds that State Governments wanting to set up greenfield airports can do so themselves, through any of their designated entities or through a joint venture company. The draft proposals adds that the State Government could consider granting land (concessional or otherwise), real estate development rights, airport connectivity and fiscal concessions to such an airport company. The selection of a private party is to be done through competitive bidding, the committee has said.
The policy has suggested that the preferred route for development of greenfield airports by the Airports Authority of India (AAI) be through the public-private-partnership route and be substantially financed through PPP concessions.
23/10/07 Business Line
``If a greenfield airport is to come up within a 150 km radius of an existing airport or the proposed airport would be in a defence airfield then it would still need to be cleared by the Centre. Otherwise the promoter can approach the Ministry of Civil Aviation and the greenfield airport would be operational after the Directorate General of Civil Aviation (DGCA) gives the licence,” a senior Government official said.
At present any proposal for setting up of an airport requires to be cleared by the Union Cabinet. The draft proposals would need to be cleared by the Committee on Infrastructure and the Union Cabinet before it can be implemented.
The work connected with providing air traffic services, security, customs and immigration among others at these greenfield airports would continue to be carried out by Central agencies.
An official statement issued on Tuesday adds that State Governments wanting to set up greenfield airports can do so themselves, through any of their designated entities or through a joint venture company. The draft proposals adds that the State Government could consider granting land (concessional or otherwise), real estate development rights, airport connectivity and fiscal concessions to such an airport company. The selection of a private party is to be done through competitive bidding, the committee has said.
The policy has suggested that the preferred route for development of greenfield airports by the Airports Authority of India (AAI) be through the public-private-partnership route and be substantially financed through PPP concessions.
23/10/07 Business Line
Star Navigation secures protection in Indian market
Toronto: Star Navigation Systems Group Ltd.
today announced that the Government of India has granted a key patent, strengthening the Company's position in one of the world's largest
aviation markets, and further protecting the Company's proprietary technology.
Mr. Viraf Kapadia, Chief Executive Officer of Star Navigation said, "This
is our sixth patent award, and is a major milestone for the Company. Star's
technology has been awarded patents in the United States, Canada, the United
Kingdom, Hong Kong, Australia, and India. This latest patent solidifies our
position in the world's largest growing aviation Star Navigation Systems Group Ltd.
(www.star-navigation.com) owns the exclusive worldwide license to its
proprietary, patented In-flight Safety Monitoring System, the first system in
the world to feature in-flight data-analysis, monitoring and diagnostics with
a real-time connection between aircraft and ground. Its real-time capability
of tracking performance-trends and predicting incident-occurrence enhances
aviation safety and improves fleet management while reducing costs for the
operator.
23/10/07 Canada NewsWire (press release), Canada
today announced that the Government of India has granted a key patent, strengthening the Company's position in one of the world's largest
aviation markets, and further protecting the Company's proprietary technology.
Mr. Viraf Kapadia, Chief Executive Officer of Star Navigation said, "This
is our sixth patent award, and is a major milestone for the Company. Star's
technology has been awarded patents in the United States, Canada, the United
Kingdom, Hong Kong, Australia, and India. This latest patent solidifies our
position in the world's largest growing aviation Star Navigation Systems Group Ltd.
(www.star-navigation.com) owns the exclusive worldwide license to its
proprietary, patented In-flight Safety Monitoring System, the first system in
the world to feature in-flight data-analysis, monitoring and diagnostics with
a real-time connection between aircraft and ground. Its real-time capability
of tracking performance-trends and predicting incident-occurrence enhances
aviation safety and improves fleet management while reducing costs for the
operator.
23/10/07 Canada NewsWire (press release), Canada
Tuesday, October 23, 2007
Regional players may cast shadow on existing players
The proposed entry of at least four aviation start-ups that aim at operating in different regions of the country could further delay the break-even at existing airlines, which had made a combined loss of about $500 million (nearly Rs2,000 crore) in fiscal 2007 due to excess seat capacity and high fuel costs.
Domestic carriers say the lower tax paid on fuel by regional airlines and the likely aggressive pricing of their tickets can only spell bad news for them.
The ministry of civil aviation recently announced new rules for airlines planning to start regional operations between smaller cities or connecting towns with India’s large cities with small planes, typically turboprops or small passenger jets made by Bombardier Inc., Empresa Brasileira de Aeronautica SA or Embraer, and Sukhoi Aviation Holding Co., that can seat up to 100 passengers. The policy specifies that these airlines can operate from one metro airport in each region except in the South, where they have been allowed to fly between Chennai, Hyderabad and Bangalore.
Ten companies, including MDLR Airlines Pvt. Ltd, Star Aviation Pvt. Ltd, Emric Aviation Pvt. Ltd, King Air and Air Dravida, plan to start regional operations from various parts of the country. Four are likely to be awarded operating licences soon.
A top executive at one of these companies admitted his peers would likely offer low fares as a means to acquire market share. The fare reduction, said Muhamin Saidu, chief executive of Emric Aviation, would be “based on services offered”. He declined to elaborate.
But a senior executive at a national airline said he expected regional carriers to follow the strategy of any other entrant.
23/10/07 P.R. Sanjai/Livemint
Domestic carriers say the lower tax paid on fuel by regional airlines and the likely aggressive pricing of their tickets can only spell bad news for them.
The ministry of civil aviation recently announced new rules for airlines planning to start regional operations between smaller cities or connecting towns with India’s large cities with small planes, typically turboprops or small passenger jets made by Bombardier Inc., Empresa Brasileira de Aeronautica SA or Embraer, and Sukhoi Aviation Holding Co., that can seat up to 100 passengers. The policy specifies that these airlines can operate from one metro airport in each region except in the South, where they have been allowed to fly between Chennai, Hyderabad and Bangalore.
Ten companies, including MDLR Airlines Pvt. Ltd, Star Aviation Pvt. Ltd, Emric Aviation Pvt. Ltd, King Air and Air Dravida, plan to start regional operations from various parts of the country. Four are likely to be awarded operating licences soon.
A top executive at one of these companies admitted his peers would likely offer low fares as a means to acquire market share. The fare reduction, said Muhamin Saidu, chief executive of Emric Aviation, would be “based on services offered”. He declined to elaborate.
But a senior executive at a national airline said he expected regional carriers to follow the strategy of any other entrant.
23/10/07 P.R. Sanjai/Livemint
EU-India to to strengthen cooperation in civil aviation
As a follow-up to the successful first EU-India Aviation Summit held in New Delhi in November 2006, Mr. Praful Patel, Minister for Civil Aviation of India is visiting several European institutions on 22-23 October 2007. The visit is being hosted by Mr. Jacques Barrot, Vice-President of the European Commission responsible for transport. The two sides expressed their shared aspirations driven by their respective policies of promoting safe, open and sustainable aviation relations for the benefit of industry and consumers.
Messrs. Patel and Barrot welcomed the very positive new impetus in EU-India aviation cooperation following the adoption in September 2005 of the overall EU-India "Joint Action Plan" in which civil aviation plays a key enabling role. However, both sides expressed a strong wish for taking EU-India cooperation in civil aviation to a new level by broadening and intensifying cooperation in a wide range of areas.
Progress towards the finalisation of a Horizontal Agreement as well as an agreement on future technical cooperation was welcomed by Vice President Barrot. The Horizontal Agreement will restore legal certainty to the 24 bilateral air services agreements that India has with individual EU Member States thereby creating a sound legal basis for further developing EU-India air transport connections.
A key objective of future technical assistance will be to strengthen the institutional capacity of the civil aviation regulatory authorities of India and to help ensure a safe and secure aviation environment through policy support, pilot projects and targeted training.
22/10/07 Commission Européenne (europa.eu.int)/Edubourse.com (Communiqués de presse), France
Messrs. Patel and Barrot welcomed the very positive new impetus in EU-India aviation cooperation following the adoption in September 2005 of the overall EU-India "Joint Action Plan" in which civil aviation plays a key enabling role. However, both sides expressed a strong wish for taking EU-India cooperation in civil aviation to a new level by broadening and intensifying cooperation in a wide range of areas.
Progress towards the finalisation of a Horizontal Agreement as well as an agreement on future technical cooperation was welcomed by Vice President Barrot. The Horizontal Agreement will restore legal certainty to the 24 bilateral air services agreements that India has with individual EU Member States thereby creating a sound legal basis for further developing EU-India air transport connections.
A key objective of future technical assistance will be to strengthen the institutional capacity of the civil aviation regulatory authorities of India and to help ensure a safe and secure aviation environment through policy support, pilot projects and targeted training.
22/10/07 Commission Européenne (europa.eu.int)/Edubourse.com (Communiqués de presse), France
Monday, October 22, 2007
MRO segment gaining momentum
New Delhi: Aircraft maintenance, repair and overhaul (MRO) business is gaining momentum with more and more players in the sector lining up with investment proposals. Boeing has said that it would invest about $100 million to set up an MRO facility in India in cooperation with Air India and a private partner.
Boeing has already tied up with national carrier, Air India, for this venture. The name of the third partner will be formally announced by December this year. A report by Ernst & Young has stated that the aviation sector in India slated to draw an investments of more than $120 billion by 2020.
Also a number of foreign companies have been participating and have been expressing their willingness to invest in the maintenance, repair and overhaul business in India.
On the other hand, Mumbai-based low-cost airline, GoAir has gone ahead and constituted a joint venture with the Singapore-based SIA Engineering to establish an engineering facility in India.
European aircraft manufacturer, Airbus, too, has said that it is willing to set up an MRO service in the country at the earliest.
The Kingfisher Airlines-Air Deccan combine is also exploring opportunities in the MRO sector. It is looking for a joint-venture partnership with a third party, which could be a foreign company.
21/10/07 The Statesman
Boeing has already tied up with national carrier, Air India, for this venture. The name of the third partner will be formally announced by December this year. A report by Ernst & Young has stated that the aviation sector in India slated to draw an investments of more than $120 billion by 2020.
Also a number of foreign companies have been participating and have been expressing their willingness to invest in the maintenance, repair and overhaul business in India.
On the other hand, Mumbai-based low-cost airline, GoAir has gone ahead and constituted a joint venture with the Singapore-based SIA Engineering to establish an engineering facility in India.
European aircraft manufacturer, Airbus, too, has said that it is willing to set up an MRO service in the country at the earliest.
The Kingfisher Airlines-Air Deccan combine is also exploring opportunities in the MRO sector. It is looking for a joint-venture partnership with a third party, which could be a foreign company.
21/10/07 The Statesman
‘Lift night curfew, see light of day’
India has requested the International Civil Aviation Organisation (ICAO) to review night curfew restrictions imposed by some countries on the operation of airlines. In a paper presented to the ICAO, India has called for a review, arguing that the imposition of night curfew creates a mismatch in utilising infrastructure round-the-clock and hampers the growth of airlines.
“The concept of night curfew adversely affects the concept of free flow of air traffic and causes inconvenience to the travelling public. In addition, curfew at some airports during the night causes congestion at other times of the day, leading to an adverse impact on the environment,” said a senior Government official.
It has been pointed out that night curfew adds to the airspace capacity requirements during the day, thereby leading to congestion in the airspace. This, in turn, increases gaseous emissions due to increased holding time by aircraft, thereby further polluting the environment.
India has argued that with modern aircraft becoming quieter there was a need to review the existing curfew, since night curfew was resorted to by some airports because of the high levels of noise caused by aircraft with earlier designs.
22/10/07 Ashwini Phadnis/Business Line
“The concept of night curfew adversely affects the concept of free flow of air traffic and causes inconvenience to the travelling public. In addition, curfew at some airports during the night causes congestion at other times of the day, leading to an adverse impact on the environment,” said a senior Government official.
It has been pointed out that night curfew adds to the airspace capacity requirements during the day, thereby leading to congestion in the airspace. This, in turn, increases gaseous emissions due to increased holding time by aircraft, thereby further polluting the environment.
India has argued that with modern aircraft becoming quieter there was a need to review the existing curfew, since night curfew was resorted to by some airports because of the high levels of noise caused by aircraft with earlier designs.
22/10/07 Ashwini Phadnis/Business Line
Going gets tougher for airlines
Mumbai: Dark clouds seem to be looming large for domestic airlines as equity funding becomes difficult to find. Input costs are mounting, even as the airlines try to expand and consolidate at the same time.
The result is a fall in return on capital, and it is not surprising that private equity players and strategic investors are steering clear of taking an equity exposure to the business. Industry officials said most carriers operating domestically are still in need of funds to pay for increasing working capital requirements.
Fleet expansion is being financed largely through credit from export credit agencies like the US Exim. Sources told ET that Kingfisher and SpiceJet are among those currently in the market trying to offload equity to prospective investors, but their airline promoters have denied any such move.
Investment bankers say there is a significant mismatch between expectations and the valuations being offered in the market. Many airlines, including big names such as Jet Airways, have deferred plans to raise funds, preferring to wait till conditions change.
For over a year now, private equity players, hedge funds and commercial banks have been chary, as the airlines struggle to make profits.
22/10/07 Cuckoo Paul & Anto T Joseph/Economic Times
The result is a fall in return on capital, and it is not surprising that private equity players and strategic investors are steering clear of taking an equity exposure to the business. Industry officials said most carriers operating domestically are still in need of funds to pay for increasing working capital requirements.
Fleet expansion is being financed largely through credit from export credit agencies like the US Exim. Sources told ET that Kingfisher and SpiceJet are among those currently in the market trying to offload equity to prospective investors, but their airline promoters have denied any such move.
Investment bankers say there is a significant mismatch between expectations and the valuations being offered in the market. Many airlines, including big names such as Jet Airways, have deferred plans to raise funds, preferring to wait till conditions change.
For over a year now, private equity players, hedge funds and commercial banks have been chary, as the airlines struggle to make profits.
22/10/07 Cuckoo Paul & Anto T Joseph/Economic Times
Railways overtake airlines in fare battle
New Delhi: In the race of price war, Lalu’s railways seems to have overtaken budget airlines like SpiceJet, GoAir, Air Deccan and IndiGo. Even as fuel price hike forced airlines to increase airfares by 6-10%, competitor reduced rail fares by 5% across the board. For something budget airlines win away A/C rail passengers on certain sectors.
With aviation turbine fuel (ATF) prices going up significantly and consolidation leading airlines to focus on their bottom line, budget carriers increased fares in the range of Rs 500-600 per passenger in the last six month. At the same time, railways reduced fares by about 5% across the board in 2007-08, removing reservation and superfast charges.
With low-cost leader Air Deccan taken over, and airlines realising that too much red-ink on balance sheets is not good for them, the race is over.
Wooing high-paying rail travellers, low-cost airlines had offered competitive and cheaper fares with an eye on market share. This resulted in huge loss to the airlines, forcing some to stop schemes of Rs 50 and Rs 100 tickets.
22/10/07 Nirbhay Kumar & Rajat Guha/Economic Times
With aviation turbine fuel (ATF) prices going up significantly and consolidation leading airlines to focus on their bottom line, budget carriers increased fares in the range of Rs 500-600 per passenger in the last six month. At the same time, railways reduced fares by about 5% across the board in 2007-08, removing reservation and superfast charges.
With low-cost leader Air Deccan taken over, and airlines realising that too much red-ink on balance sheets is not good for them, the race is over.
Wooing high-paying rail travellers, low-cost airlines had offered competitive and cheaper fares with an eye on market share. This resulted in huge loss to the airlines, forcing some to stop schemes of Rs 50 and Rs 100 tickets.
22/10/07 Nirbhay Kumar & Rajat Guha/Economic Times
Sunday, October 21, 2007
Airline fraud costs global aviation industry over $600 mn
New Delhi: According to a recent report by Deloitte and the International Association of Airline Internal Auditors (IAAIA), airline fraud is costing the global aviation industry over $600 million a year. The report further states that fraud has increased five-fold since the last in-depth study of the industry was done six years ago.
The biggest losses come from credit card fraud and more than a third of airlines have been hit by it, which accounts for around 60% of all external fraud-related losses. The credit card fraud alone is costing airlines an average of $1 million a year. Looking at this, it comes as no surprise that the airline industry in India is also waking up to this harsh reality.
Last year, Kingfisher Airlines complained to the Economic Offences Wing (EOW) of an online ticket booking fraud through credit cards saying the airline was duped of around Rs 17 crore. The EOW suspected a nationwide organised racket behind the fraud. The airlines are being more cautious this year and Jet Airways recently announced a tie-up with CyberSource, a leading provider of electronic payment and risk management solutions to implement an automated online risk (fraud) management solution.
21/10/07 Dheeraj Tiwari/Economic Times
The biggest losses come from credit card fraud and more than a third of airlines have been hit by it, which accounts for around 60% of all external fraud-related losses. The credit card fraud alone is costing airlines an average of $1 million a year. Looking at this, it comes as no surprise that the airline industry in India is also waking up to this harsh reality.
Last year, Kingfisher Airlines complained to the Economic Offences Wing (EOW) of an online ticket booking fraud through credit cards saying the airline was duped of around Rs 17 crore. The EOW suspected a nationwide organised racket behind the fraud. The airlines are being more cautious this year and Jet Airways recently announced a tie-up with CyberSource, a leading provider of electronic payment and risk management solutions to implement an automated online risk (fraud) management solution.
21/10/07 Dheeraj Tiwari/Economic Times
Airlines may have to pay fine on flight delays
New Delhi: With the tight vigil on delayed flights showing no results, the civil aviation ministry is planning to turn a hard task master. It is working on a proposal to charge penalty on all airlines which operate late as it affects other airlines also.
This strong step also comes after the Delhi airport last month reported a 16% delay by all airlines for flights that took off between 6am and 8am.
According to sources, if the proposal is cleared, any domestic carrier which lands or takes off late might have to shell out 25% of its total earning from that particular flight.
In fact, senior officials of the civil aviation ministry are meeting the airlines representatives next week before a final decision is taken in this regard. Interestingly, following its tiff with the airlines on levying a congestion surcharge, the aviation ministry recently started a daily monitoring of actual flight movement schedules in metros such as Delhi, Mumbai, Kolkata and Chennai. The ministry has recently taken into account a long-term complaint of passengers — most flights don’t stick to schedules.
The ministry and airlines have been at loggerheads on the issue of congestion ever since the latter started levying a congestion surcharge and refused to remove it despite the ministry’s repeated orders.
21/10/07 Raja Awasthi/Economic Times
This strong step also comes after the Delhi airport last month reported a 16% delay by all airlines for flights that took off between 6am and 8am.
According to sources, if the proposal is cleared, any domestic carrier which lands or takes off late might have to shell out 25% of its total earning from that particular flight.
In fact, senior officials of the civil aviation ministry are meeting the airlines representatives next week before a final decision is taken in this regard. Interestingly, following its tiff with the airlines on levying a congestion surcharge, the aviation ministry recently started a daily monitoring of actual flight movement schedules in metros such as Delhi, Mumbai, Kolkata and Chennai. The ministry has recently taken into account a long-term complaint of passengers — most flights don’t stick to schedules.
The ministry and airlines have been at loggerheads on the issue of congestion ever since the latter started levying a congestion surcharge and refused to remove it despite the ministry’s repeated orders.
21/10/07 Raja Awasthi/Economic Times
2007 best growth period for aviation sector
New Delhi: The year 2007, so far, could be considered the best growth period for the civil aviation sector. The passengers carried by domestic airlines in the first three quarters of 2007 has registered 36.47% growth to 317.29 lakh passengers, up from 232.49 lakh passengers during the same period year ago.
Interestingly, the market share of full service airlines dropped. Indian registered 19.2% growth in September from 19.8% in August, Jet Airways slipped to 22.2% from 22.5% and Kingfisher Airlines dropped from 12.5% to 11.8% last month.
According to civil aviation ministry sources, leading the pack in the seat factor capacity was South-based Paramount Airways which had a seat factor of 77% in September from 51.6% in August.
Air Deccan, saw it’s seat factor going up from 65.7% in August to 70.7% last month. However, Go Air seems to be severely hit down from 80% in August to 47.7% last month. SpiceJet’s seat factor declined to 62.3% during August as compared to 69.6% in September.
Seat factor, or occupancy, of full service airlines — Indian, Jet Airways and Kingfisher — decreased marginally. Indian went down to 63.2% from 66.2% in August. Jet Airways’ seat factor dipped by just 0.2%. Kingfisher had a seat factor of 59.5% in September as compared to 63.6% in August.
21/10/07 Raja Awasthi/Economic Times
Interestingly, the market share of full service airlines dropped. Indian registered 19.2% growth in September from 19.8% in August, Jet Airways slipped to 22.2% from 22.5% and Kingfisher Airlines dropped from 12.5% to 11.8% last month.
According to civil aviation ministry sources, leading the pack in the seat factor capacity was South-based Paramount Airways which had a seat factor of 77% in September from 51.6% in August.
Air Deccan, saw it’s seat factor going up from 65.7% in August to 70.7% last month. However, Go Air seems to be severely hit down from 80% in August to 47.7% last month. SpiceJet’s seat factor declined to 62.3% during August as compared to 69.6% in September.
Seat factor, or occupancy, of full service airlines — Indian, Jet Airways and Kingfisher — decreased marginally. Indian went down to 63.2% from 66.2% in August. Jet Airways’ seat factor dipped by just 0.2%. Kingfisher had a seat factor of 59.5% in September as compared to 63.6% in August.
21/10/07 Raja Awasthi/Economic Times
Saturday, October 20, 2007
Airlines zoom into e-ticketing zone to meet global norms
New Delhi: Under pressure from the global trade body, International Air Transport Association’s (IATA) to move to e-tickets by March 31, 2008, the industry has quickly moved from a low 65% compliance earlier this year to a high of 82.5% as of last month.
According to Amadeus, an airline ticket-booking platform, in 2006 number of e-tickets sold (by Indian carriers and international carriers for their flights from India) was five million. As compared to this in first nine months itself of 2007 this figure has already touched 13 million.
Air India and Indian (both now part of the National Aviation Company of India), JetLite and Jet Airways are IATA members while Kingfisher has applied for the membership. The deadline was extended because the e-ticketing penetration in the Asia-Pacific region was only 76.8%, which is much lower compared with the global average of 84% (as per July end data).
A paper ticket costs $7-8 for an international transaction and $3-4 for a domestic transaction. Implementing 100% e-ticketing will help the aviation industry globally in saving $3 billion annually.
20/10/07 Vishakha Talreja/Economic Times
According to Amadeus, an airline ticket-booking platform, in 2006 number of e-tickets sold (by Indian carriers and international carriers for their flights from India) was five million. As compared to this in first nine months itself of 2007 this figure has already touched 13 million.
Air India and Indian (both now part of the National Aviation Company of India), JetLite and Jet Airways are IATA members while Kingfisher has applied for the membership. The deadline was extended because the e-ticketing penetration in the Asia-Pacific region was only 76.8%, which is much lower compared with the global average of 84% (as per July end data).
A paper ticket costs $7-8 for an international transaction and $3-4 for a domestic transaction. Implementing 100% e-ticketing will help the aviation industry globally in saving $3 billion annually.
20/10/07 Vishakha Talreja/Economic Times
Friday, October 19, 2007
Fluctuating air fares could be confusing
Chennai: For most travellers who book their flights online — statistics say eight out of ten air travellers in India do so — the fares they discover can be both pleasantly surprising and confusingly depressing. A return trip to Mumbai could cost less than Rs. 3,000 when booked early enough. But on a busy day at peak travel hours, the fare for the same trip could even exceed Rs. 6,000.
Air fares are subject to great fluctuations as they are determined by airlines using complex pricing models, which take into account various factors ranging from recent air-traffic trends, consumer demand, availability, seasonality and even the time of day.
Passengers are often left confused by the variations in the cost and availability of air fares, according to D. Sudhakara Reddy, president, Air Passengers’ Association of India (a non-profit organisation for passenger welfare). Tickets on a particular flight are divided into different categories. ‘Check fares’ are cheaper than the full fares, but give you less freedom to change your travel plans as they have higher cancellation charges. Domestic airlines also give you discounts if tickets are purchased a month in advance.
But closer to the date of travel, fares become less predictable. “We notice that around two weeks before the travel date, airlines start playing around with the fare depending on the demand,” Mr. Reddy says.
19/10/07 Ananth Krishnan/The Hindu
Air fares are subject to great fluctuations as they are determined by airlines using complex pricing models, which take into account various factors ranging from recent air-traffic trends, consumer demand, availability, seasonality and even the time of day.
Passengers are often left confused by the variations in the cost and availability of air fares, according to D. Sudhakara Reddy, president, Air Passengers’ Association of India (a non-profit organisation for passenger welfare). Tickets on a particular flight are divided into different categories. ‘Check fares’ are cheaper than the full fares, but give you less freedom to change your travel plans as they have higher cancellation charges. Domestic airlines also give you discounts if tickets are purchased a month in advance.
But closer to the date of travel, fares become less predictable. “We notice that around two weeks before the travel date, airlines start playing around with the fare depending on the demand,” Mr. Reddy says.
19/10/07 Ananth Krishnan/The Hindu
Maintenance - a casualty in tough times
A factor that causes little concern among air passengers, poor maintenance is a serious threat to air safety globally. JetLite CEO Garry Kingshott’s frank comments about the poor condition of predecessor Air Sahara’s aircraft fleet, with only ten of their 17 B737s and two of their seven Bombardier regional jets flight-worthy at the time of the take-over by Jet Airways, may have shocked most air passengers.
It was actually evident from Air Sahara’s poor on-time performance and, even more so, from its pathetic financial condition. It was sinking in a sea of red ink and, for FY 2006-07, had made a loss of Rs 690 crore. Accumulated losses may be many times that figure. Thus, aircraft maintenance may not have been its highest priority.
Despite the current global airline industry boom, competition is intense and airlines are compelled to minimise costs and to maximise output. In India, with seat capacity considerably ahead of the demand, all airlines practice severe cost-cutting to survive. When the next global economic downturn hits them, their condition could be precarious. Faced with having to cut costs to the bone and to maximise aircraft utilisation, a surprising number of airlines world-wide may cut corners on aircraft maintenance, even at the risk of compromising safety.
An airline with a consistently poor on-time performance may have a shortage of aircraft or, more likely, is skimping on maintenance. Also, if the aircraft’s external appearance is shabby, or there are signs of corrosion, their internal condition is unlikely to be good. Additionally, older-generation aircraft may require three times the number of maintenance man-hours per flight-hour, and about as many times the spares. Apart from the number of hours flown by an aircraft, the number of flight cycles takes its toll, as do heat and humidity. Ironically, an adequately-maintained old aircraft can wreck an airline’s profitability — an incentive to cut corners.
19/10/07 Hormuz P Mama/Economic Times
It was actually evident from Air Sahara’s poor on-time performance and, even more so, from its pathetic financial condition. It was sinking in a sea of red ink and, for FY 2006-07, had made a loss of Rs 690 crore. Accumulated losses may be many times that figure. Thus, aircraft maintenance may not have been its highest priority.
Despite the current global airline industry boom, competition is intense and airlines are compelled to minimise costs and to maximise output. In India, with seat capacity considerably ahead of the demand, all airlines practice severe cost-cutting to survive. When the next global economic downturn hits them, their condition could be precarious. Faced with having to cut costs to the bone and to maximise aircraft utilisation, a surprising number of airlines world-wide may cut corners on aircraft maintenance, even at the risk of compromising safety.
An airline with a consistently poor on-time performance may have a shortage of aircraft or, more likely, is skimping on maintenance. Also, if the aircraft’s external appearance is shabby, or there are signs of corrosion, their internal condition is unlikely to be good. Additionally, older-generation aircraft may require three times the number of maintenance man-hours per flight-hour, and about as many times the spares. Apart from the number of hours flown by an aircraft, the number of flight cycles takes its toll, as do heat and humidity. Ironically, an adequately-maintained old aircraft can wreck an airline’s profitability — an incentive to cut corners.
19/10/07 Hormuz P Mama/Economic Times
Thursday, October 18, 2007
Oil regulator for freeing airport facilities from PSU hold
New Delhi: Oil regulator PNGRB has asked for freeing of aviation fuelling facilities at airports from public sector stranglehold by allowing use of existing infrastructure by all players including private companies.
Petroleum and Natural Gas Regulatory Board chairman L Mansingh has written to Civil Aviation Secretary Ashok Chawla for bringing aviation fuelling infrastructure under common carrier or open access principles to allow usage of facilities of IOC, BPCL and HPCL by new entrants like Reliance and Essar.
"The Board is examining re-organising the logistics for supply of aviation fuel to ensure that no supplier has a stranglehold on any portion of the infrastructure that would hinder the emergence of competition," he said in his October 10 letter.
The PNGRB Act provides for common carrier principle only for oil, gas pipelines and city gas distribution networks.
17/10/07 PTI/Economic Times
Petroleum and Natural Gas Regulatory Board chairman L Mansingh has written to Civil Aviation Secretary Ashok Chawla for bringing aviation fuelling infrastructure under common carrier or open access principles to allow usage of facilities of IOC, BPCL and HPCL by new entrants like Reliance and Essar.
"The Board is examining re-organising the logistics for supply of aviation fuel to ensure that no supplier has a stranglehold on any portion of the infrastructure that would hinder the emergence of competition," he said in his October 10 letter.
The PNGRB Act provides for common carrier principle only for oil, gas pipelines and city gas distribution networks.
17/10/07 PTI/Economic Times
Wednesday, October 17, 2007
Pratt & Whitney plans MRO facility in India
New Delhi: American aircraft engine manufacturer Pratt & Whitney (P&W) plans to set up a maintenance, repair and overhaul (MRO) facility in India to tap the fast growing civil aviation industry.
The multinational company is now assessing what type of aircraft engine the MRO should deal with.P&W is now increasing its MROs across the world to 24 from 22 now. By the end of next year, it would open an MRO facility at Shanghai in China and another one in Istanbul in Turkey in partnership with Turkish Airlines.
“We had exploratory talks with Kingfisher Airlines but no concrete development has yet taken place. We may put up an MRO on our own or may support an organisation to establish that,” P&W president Stephen N Finger said.
The company also plans to double its business from India to $60 millions in the next three to four years. Along with its engineering and manufacturing partners such as Infotech, L&T and Tata, the multinational has annual business of $30 million per annum in India now.
17/10/07 Economic Times
The multinational company is now assessing what type of aircraft engine the MRO should deal with.P&W is now increasing its MROs across the world to 24 from 22 now. By the end of next year, it would open an MRO facility at Shanghai in China and another one in Istanbul in Turkey in partnership with Turkish Airlines.
“We had exploratory talks with Kingfisher Airlines but no concrete development has yet taken place. We may put up an MRO on our own or may support an organisation to establish that,” P&W president Stephen N Finger said.
The company also plans to double its business from India to $60 millions in the next three to four years. Along with its engineering and manufacturing partners such as Infotech, L&T and Tata, the multinational has annual business of $30 million per annum in India now.
17/10/07 Economic Times
India, Nigeria to sign bilateral air services agreement
Lagos: Federal Government of Nigeria and Republic of India yesterday signed a Memoranda of Understanding (MOUs) in the area of defence, foreign affairs and infrastructural development in a bid to deepen the bilateral ties between the two countries.
This is designed to accentuate the trade relations between both nations which hit $6 billion in 2006.
Both countries are to also enhance air and maritime connectivity.
The two countries that a new Civil Aviation Agreement should be entered into within six months and further efforts should be made to improve maritime connectivity.
Expected to be signed within the next six months are Double Taxation Avoidance Agreement, Bilateral Investment Promotion and protection Agreement and Bilateral Air services Agreement (Renewal of 1976 agreement).
16/10/07 This Day/AllAfrica.com, US
This is designed to accentuate the trade relations between both nations which hit $6 billion in 2006.
Both countries are to also enhance air and maritime connectivity.
The two countries that a new Civil Aviation Agreement should be entered into within six months and further efforts should be made to improve maritime connectivity.
Expected to be signed within the next six months are Double Taxation Avoidance Agreement, Bilateral Investment Promotion and protection Agreement and Bilateral Air services Agreement (Renewal of 1976 agreement).
16/10/07 This Day/AllAfrica.com, US
Red-eye flights draw airlines queue
The ministry of civil aviation has offered perks like the waiver of landing, parking and navigation charges at airports, to encourage domestic airlines to start “red eye” flights. Such a move is expected to reduce congestion at Indian airports.
Red eye flights are operated by an airline late at night or early in the morning, during the period from 11:00 pm to 5:00 am. The name “red eye” has origins in the fact that people have red eyes after long nights.
While most of the international flights from India operate at night, domestic operations have thus far been confined in the 0500 hrs to 2200 hrs time band. The advent of red eye flights could result in offering better connectivity for international passengers who arrive late at night at Indian airports.
Airlines like Kingfisher and Jet Airways currently have has a few red eye flights but in limited numbers. Following the Civil Aviation ministry’s encouragement of red eye flights, GoAir has been the first to bite the bait and has come out with plans to start late night flights connecting four cities.
A Simplifly Deccan official said: “We would explore the market acceptance for such a product while keeping in mind the encouragement for late night flights of the ministry”. SpiceJet, on the other hand, has no plans to start such flights and has doubts over their commercial viability.
17/10/07 Nirmal John/Daily News & Analysis
Red eye flights are operated by an airline late at night or early in the morning, during the period from 11:00 pm to 5:00 am. The name “red eye” has origins in the fact that people have red eyes after long nights.
While most of the international flights from India operate at night, domestic operations have thus far been confined in the 0500 hrs to 2200 hrs time band. The advent of red eye flights could result in offering better connectivity for international passengers who arrive late at night at Indian airports.
Airlines like Kingfisher and Jet Airways currently have has a few red eye flights but in limited numbers. Following the Civil Aviation ministry’s encouragement of red eye flights, GoAir has been the first to bite the bait and has come out with plans to start late night flights connecting four cities.
A Simplifly Deccan official said: “We would explore the market acceptance for such a product while keeping in mind the encouragement for late night flights of the ministry”. SpiceJet, on the other hand, has no plans to start such flights and has doubts over their commercial viability.
17/10/07 Nirmal John/Daily News & Analysis
Food cos bet on in-flight catering
Bangalore: Low-cost carriers (LCC) are upping their ante on in-flight catering. And that's creating a whole new opportunity for F&B companies, and not just for 5-star hotel players that have traditionally been in this area.
Coffee chain Cafe Coffee Day (CCD), which is already into this business in a small way with Air Deccan and GoAir, is said to be in talks with budget carrier SpiceJet and international carriers as well as upcoming regional carriers for in-flight catering. It is also talking with its existing customer airlines to expand significantly the portfolio of offerings.
The big players in the airline catering business today include Taj, Oberoi, Grand Ashok, Sky Gourmet and LSG Sky Chefs. These cater mostly to full service and international airlines.
But several low-cost airlines are beginning to offer a range of food items on board, though customers typically have to pay for them.
Air Deccan earns between Rs 2 crore and Rs 3 crore revenue a month from F&B sales.
Air Deccan is conducting trial runs of serving hot meals on flights that have a travel time of more than two hours.
17/10/07 Times of India
Coffee chain Cafe Coffee Day (CCD), which is already into this business in a small way with Air Deccan and GoAir, is said to be in talks with budget carrier SpiceJet and international carriers as well as upcoming regional carriers for in-flight catering. It is also talking with its existing customer airlines to expand significantly the portfolio of offerings.
The big players in the airline catering business today include Taj, Oberoi, Grand Ashok, Sky Gourmet and LSG Sky Chefs. These cater mostly to full service and international airlines.
But several low-cost airlines are beginning to offer a range of food items on board, though customers typically have to pay for them.
Air Deccan earns between Rs 2 crore and Rs 3 crore revenue a month from F&B sales.
Air Deccan is conducting trial runs of serving hot meals on flights that have a travel time of more than two hours.
17/10/07 Times of India
Tuesday, October 16, 2007
Copter service to connect tourist centres in TN
Coimbatore: The Helicopter Corporation of India and Tamil Nadu government have proposed to enter into a joint venture for launching helicopter service connecting major tourist centres in the state, a senior Airport Authority of India (AAI) official said on Monday.
Initially, Coimbatore and Udhagamandalam and Madurai and Kodaikanal would be linked for the benefit of tourists, K Ramalingam, Regional Executive Director, AAI, Chennai, told reporters on the sidelines of a National seminar on Aerospace Structures, organised by Park College of Engineering and Technology, on the city outskirts.
AAI has taken up the expansion of runways and aprons at airports of Madurai, Tiruchy, Mangalore, Calicut, Visakhapatnam and Thiruvananthapuram to cope with the increase in the volume of traffic. The expansion would facilitate easy landing and take off of more wide-bodied aircraft, he said.
15/10/07 PTI/The Hindu
Initially, Coimbatore and Udhagamandalam and Madurai and Kodaikanal would be linked for the benefit of tourists, K Ramalingam, Regional Executive Director, AAI, Chennai, told reporters on the sidelines of a National seminar on Aerospace Structures, organised by Park College of Engineering and Technology, on the city outskirts.
AAI has taken up the expansion of runways and aprons at airports of Madurai, Tiruchy, Mangalore, Calicut, Visakhapatnam and Thiruvananthapuram to cope with the increase in the volume of traffic. The expansion would facilitate easy landing and take off of more wide-bodied aircraft, he said.
15/10/07 PTI/The Hindu
Monday, October 15, 2007
In-flight retailing takes off
New Delhi: As government mulls addition of more domestic carriers and expansion of the aviation sector, in-flight retailing sector is set to touch new heights.
AVA Merchandising, which pioneered its in-flight retail venture in domestic aviation last year with the help of Air Deccan and Go Air, is now targeting 200 crore worth business in the coming fiscal.
Skymall and UK's Alpha group, a premier company active in in-flight catering and airport shopping, are among numerous others expected to enter this lucrative business, says ays Anil Sharma, Managing Director, AVA.
14/10/07 Press Trust of India/NDTV.com
AVA Merchandising, which pioneered its in-flight retail venture in domestic aviation last year with the help of Air Deccan and Go Air, is now targeting 200 crore worth business in the coming fiscal.
Skymall and UK's Alpha group, a premier company active in in-flight catering and airport shopping, are among numerous others expected to enter this lucrative business, says ays Anil Sharma, Managing Director, AVA.
14/10/07 Press Trust of India/NDTV.com
Airlines to share pay info
Mumbai: India’s struggling local airlines plan to share details of salaries across levels and functions in an effort to moderate salaries. Partly driven by a boom in the aviation business in the country—and the consequent shortage of manpower—salaries, especially of pilots and engineers, have tripled in the past three years. Read On >>
Sunday, October 14, 2007
Seminar on Aero Space structures in Tamil Nadu
Coimbatore: A two-day seminar on Aero Space structures will be held here on the city outskirts from October 15.
About 100 scientists and practising engineers from Defence establishments like ISRO, NAL, VSSC, DRDO and HAL, are expected to participate in the 15th National seminar on Aerospace structures (XV NASAS), with the main theme as "experimental techniques in Structural Engineering," Anusha Mahesh, CEO of the college, told reporters here today.
An exhibition of aerospace equipment is also been concurrently organised and organisations like HAL, DRDO, IAF and Indian Navy would be displaying their products, which would help in enhancing the knowledge of the participants in the field of aviation, she said.
13/10/07 PTI/Economic Times
About 100 scientists and practising engineers from Defence establishments like ISRO, NAL, VSSC, DRDO and HAL, are expected to participate in the 15th National seminar on Aerospace structures (XV NASAS), with the main theme as "experimental techniques in Structural Engineering," Anusha Mahesh, CEO of the college, told reporters here today.
An exhibition of aerospace equipment is also been concurrently organised and organisations like HAL, DRDO, IAF and Indian Navy would be displaying their products, which would help in enhancing the knowledge of the participants in the field of aviation, she said.
13/10/07 PTI/Economic Times
Saturday, October 13, 2007
Airline with 20-30 aircrafts may fly overseas
Bangalore: The ministry of civil aviation has proposed changes in the guidelines for allowing domestic airlines to fly overseas. It now plans to allow those airlines that have a certain minimum fleet strength to service international routes against the current norm of five years of domestic operations. The proposal is before the Cabinet and an approval is expected by the year-end.
Earlier, there were talks of reducing the time line for overseas operations from five to three years.
“Our proposal is that we should go by a threshold rather than the number of years. For instance, if the fleet size is the threshold and if an airline has 20-30 aircraft, then it should be allowed to fly overseas. The matter is before the Cabinet and the group of ministers is looking into it. We are expecting the Cabinet’s approval by the year-end,” civil aviation minister Praful Patel told ET.
The proposed rule will enable carriers such as Kingfisher Airlines, Air Deccan and SpiceJet to fly overseas.
Mr Patel said if domestic carriers have economic stability and good track record with required fleet size, they can fly overseas.
13/10/07 Urvashi Jha/Economic Times
Earlier, there were talks of reducing the time line for overseas operations from five to three years.
“Our proposal is that we should go by a threshold rather than the number of years. For instance, if the fleet size is the threshold and if an airline has 20-30 aircraft, then it should be allowed to fly overseas. The matter is before the Cabinet and the group of ministers is looking into it. We are expecting the Cabinet’s approval by the year-end,” civil aviation minister Praful Patel told ET.
The proposed rule will enable carriers such as Kingfisher Airlines, Air Deccan and SpiceJet to fly overseas.
Mr Patel said if domestic carriers have economic stability and good track record with required fleet size, they can fly overseas.
13/10/07 Urvashi Jha/Economic Times
Friday, October 12, 2007
Take-off delays may now attract a fine
Mumbai: The civil aviation ministry plans to fine airlines that delay take-offs over late arrivals of pilots, cleaning aircrafts and boarding passengers, at busy and congested airports in New Delhi, Mumbai, Bangalore and Chennai.
For almost a year now, all of the country’s private airlines have been levying a congestion fee of Rs150 on each ticket to offset the cost of fuel spent while circling over airports awaiting clearance to land.
But, after a public litigation in the Delhi High Court earlier this year sought a waiver of the congestion chanrge, aviation regulator Directorate General of Civil Aviation conducted a study at airports and found that the airlines were partly to blame for congestion. Deccan Aviation Ltd run-Air Deccan and National Aviation Co. of India Ltd or Nacil-run Air India (the new name for the combined Indian Airlines and Air India) had the most delayed flights in the periodof the study.
“If they can charge a congestion fee,” said civil aviation minister Praful Patel, “they can have a congestion fine (too).” Patel did not specify the quantum of the proposed fines.
12/10/07 Tarun Shukla/Livemint
For almost a year now, all of the country’s private airlines have been levying a congestion fee of Rs150 on each ticket to offset the cost of fuel spent while circling over airports awaiting clearance to land.
But, after a public litigation in the Delhi High Court earlier this year sought a waiver of the congestion chanrge, aviation regulator Directorate General of Civil Aviation conducted a study at airports and found that the airlines were partly to blame for congestion. Deccan Aviation Ltd run-Air Deccan and National Aviation Co. of India Ltd or Nacil-run Air India (the new name for the combined Indian Airlines and Air India) had the most delayed flights in the periodof the study.
“If they can charge a congestion fee,” said civil aviation minister Praful Patel, “they can have a congestion fine (too).” Patel did not specify the quantum of the proposed fines.
12/10/07 Tarun Shukla/Livemint
PIL against start-up airlines' plan to fly abroad
New Delhi: A public interest litigation (PIL) has been filed against the new civil aviation policy by NGO Social Action Forum for Manav Adhikar, which had earlier fought the Priyadarshani Matoo case.
The NGO has appealed in the Delhi High court that the civil aviation ministry’s proposal to relax the existing norm for start-up airline would lead to ‘extremely undesirable’ consequences for the aviation industry as well as passengers.
The PIL comes at a time when uncertainty prevails over civil aviation minister Praful Patel’s proposal to allow airlines to fly abroad on a case-to-case basis rather than the current norm of five years of experience in the domestic sector.
“Expansion by airlines would require additional technical manpower which is already scarce in the country. This may put the pressure on the government to increase working hours of pilots and engineers , leading to inefficiency of the personnel and hence posing threat to the safety of passengers,” Ajay Veer Singh, counsel for Social Action Forum for Manav Adhikar, told ET. “In the past, many airlines have come up and disappeared. Hence, only airlines having sufficient experience and deep pockets should be allowed to fly abroad,” he added.
12/10/07 Nirbhay Kumar/Economic Times
The NGO has appealed in the Delhi High court that the civil aviation ministry’s proposal to relax the existing norm for start-up airline would lead to ‘extremely undesirable’ consequences for the aviation industry as well as passengers.
The PIL comes at a time when uncertainty prevails over civil aviation minister Praful Patel’s proposal to allow airlines to fly abroad on a case-to-case basis rather than the current norm of five years of experience in the domestic sector.
“Expansion by airlines would require additional technical manpower which is already scarce in the country. This may put the pressure on the government to increase working hours of pilots and engineers , leading to inefficiency of the personnel and hence posing threat to the safety of passengers,” Ajay Veer Singh, counsel for Social Action Forum for Manav Adhikar, told ET. “In the past, many airlines have come up and disappeared. Hence, only airlines having sufficient experience and deep pockets should be allowed to fly abroad,” he added.
12/10/07 Nirbhay Kumar/Economic Times
No revision of foreign route flying policy: Patel
New Delhi: Civil aviation minister Praful Patel said there will be no new “formula” in civil aviation policy to supersede the five-year mandatory flying experience rule for domestic airlines before they can fly international routes.
Kingfisher Airlines (together with the budget airline Air Deccan) has been lobbying hard to get the rules relaxed, while Jet Airways (including subsidiary JetLite) and Air India, the only two carriers flying aboard currently, are against any such move because they too had to comply with the rules. A group of ministers (GoM) will be reviewing the civil aviation policy in their second meeting on 1 November after the first meeting in August remained inconclusive. A second meeting of the GoM set for 20 September had to be postponed because finance minister P. Chidambaram, who is one of the 12 ministers reviewing the policy, was unavailable.
12/10/07 Tarun Shukla/Livemint
Kingfisher Airlines (together with the budget airline Air Deccan) has been lobbying hard to get the rules relaxed, while Jet Airways (including subsidiary JetLite) and Air India, the only two carriers flying aboard currently, are against any such move because they too had to comply with the rules. A group of ministers (GoM) will be reviewing the civil aviation policy in their second meeting on 1 November after the first meeting in August remained inconclusive. A second meeting of the GoM set for 20 September had to be postponed because finance minister P. Chidambaram, who is one of the 12 ministers reviewing the policy, was unavailable.
12/10/07 Tarun Shukla/Livemint
Travel agents, airlines spar over service tax
New Delhi: Travel agents across the country are up in arms against international airlines' decision not to pay them a commission on fuel surcharge even after its inclusion in the services tax ambit recently.
Agents say that with the Government imposing a tax on fuel surcharge, it should now become part of the basic fare on which they get their commission (of around 5 per cent). However airlines are keeping it out of the ambit of the basic fare.
'According to ICAO rules, these surcharges should be part of the basic fare since they are part of the operational costs. However, in the ticket, airlines are disguising the surcharge as an amount paid to the government while it is levied to cover their own operational costs,' said P Sampath Kumar, chairman, legal and industry affairs, Travel Agents Federation of India (TAFI). Including these surcharges in the basic fare would mean that the taxes and commissions would increase
Surcharges levied on fuel, security, congestion, etc are always included under the 'taxes/charges/fees imposed by government authorities' category in a ticket even though revenues earned from these surcharges always go into the airlines' account.
12/10/07 Anirban Chowdhury/Business Standard
Agents say that with the Government imposing a tax on fuel surcharge, it should now become part of the basic fare on which they get their commission (of around 5 per cent). However airlines are keeping it out of the ambit of the basic fare.
'According to ICAO rules, these surcharges should be part of the basic fare since they are part of the operational costs. However, in the ticket, airlines are disguising the surcharge as an amount paid to the government while it is levied to cover their own operational costs,' said P Sampath Kumar, chairman, legal and industry affairs, Travel Agents Federation of India (TAFI). Including these surcharges in the basic fare would mean that the taxes and commissions would increase
Surcharges levied on fuel, security, congestion, etc are always included under the 'taxes/charges/fees imposed by government authorities' category in a ticket even though revenues earned from these surcharges always go into the airlines' account.
12/10/07 Anirban Chowdhury/Business Standard
Thursday, October 11, 2007
Airlines are ready to meet festive demands
New Delhi: Celebrating the Indian festival season, low-cost carrier, GoAir has come out with a special offer that permits the customer to plan and book the tickets which are priced as low as Rs 225. According to the spokesperson in Air Deccan, "Air Deccan has released 1.5 lac ticket at special low fares.
These tickets are widely available across all sectors for travel from September this year."
According to Siddhanta Sharma, CEO, SpiceJet Airlines, "During this festive season we are going to increase our connectivity especially to Kolkata because of the rush during 'Durga Puja'. There would also be connectivity to places like Port Blair and Southern cities during the season and at the same time we would definitely be coming out with something special near Diwali."
Kingfisher remains unaffected with the festive season hype. But that doesn't deter Kingfisher to think of reining supreme. According to industry predictions, Kingfisher seems to be in its good times earning the biggest slice of the aviation pie.
Taking a glimpse of the overall aviation industry, this festive season starting from September till December is supposed to be the strongest quarter for the industry to mint money with huge demand and lots of NRIs visiting India during this period.
11/10/07 Newindpress
These tickets are widely available across all sectors for travel from September this year."
According to Siddhanta Sharma, CEO, SpiceJet Airlines, "During this festive season we are going to increase our connectivity especially to Kolkata because of the rush during 'Durga Puja'. There would also be connectivity to places like Port Blair and Southern cities during the season and at the same time we would definitely be coming out with something special near Diwali."
Kingfisher remains unaffected with the festive season hype. But that doesn't deter Kingfisher to think of reining supreme. According to industry predictions, Kingfisher seems to be in its good times earning the biggest slice of the aviation pie.
Taking a glimpse of the overall aviation industry, this festive season starting from September till December is supposed to be the strongest quarter for the industry to mint money with huge demand and lots of NRIs visiting India during this period.
11/10/07 Newindpress
National licence must for flying overseas
The civil aviation ministry had introduced a separate category of scheduled airlines in August to accommodate growing interest by smaller players for starting new airlines.
Nine passenger airlines currently have a national flying licence, while an equal number was pending approval through August.
Many of these have reapplied for permission now as regional carriers, including South India-based Star Aviation Pvt. Ltd, Trans India Aviation Pvt. Ltd, Air Dravida, Emric Aviation Pvt. Ltd and Gurgaon-based MDLR Airlines Pvt. Ltd.
Regional carriers from India will not be able to fly international routes unless they upgrade themselves and get the much sought after pan-India licence.
Announcing the new regional airlines policy, the civil aviation ministry had said regional airlines could fly international as long as they meet the guidelines of five years experience and possess a minimum fleet of 20 aircraft as laid down for national airlines such as Air India and Jet Airways.
However, a review of the new civil aviation requirements for regional carriers, a framework laid down by the aviation regulator Directorate General of Civil Aviation and available on the regulator’s website, makes no mention of any international operations.
The rules define a regional carrier as one that “primarily (operates) in a designated region” and can be allowed on “operational and commercial exigencies” to fly in other regions. The regions, in this case, mean the airlines can choose between North, West, South and East/North-East of the country.
11/10/07 Tarun Shukla/Livemint
Nine passenger airlines currently have a national flying licence, while an equal number was pending approval through August.
Many of these have reapplied for permission now as regional carriers, including South India-based Star Aviation Pvt. Ltd, Trans India Aviation Pvt. Ltd, Air Dravida, Emric Aviation Pvt. Ltd and Gurgaon-based MDLR Airlines Pvt. Ltd.
Regional carriers from India will not be able to fly international routes unless they upgrade themselves and get the much sought after pan-India licence.
Announcing the new regional airlines policy, the civil aviation ministry had said regional airlines could fly international as long as they meet the guidelines of five years experience and possess a minimum fleet of 20 aircraft as laid down for national airlines such as Air India and Jet Airways.
However, a review of the new civil aviation requirements for regional carriers, a framework laid down by the aviation regulator Directorate General of Civil Aviation and available on the regulator’s website, makes no mention of any international operations.
The rules define a regional carrier as one that “primarily (operates) in a designated region” and can be allowed on “operational and commercial exigencies” to fly in other regions. The regions, in this case, mean the airlines can choose between North, West, South and East/North-East of the country.
11/10/07 Tarun Shukla/Livemint
Sabre to expand Global Solution Centre in India
Mumbai: To further strengthen its India presence, Texas-based travel products retailer and services solution provider Sabre Holdings will be expanding global solutions centre (GSC) located in the IT park Bangalore.
Expansion plans of Sabre were announced on the occasion of Sabre Holdings CEO Sam Gillilands India visit here today.
"The India GSC has delivered excellent services, including development, delivery, research and quality, to our global operations as well as to our key customers. We further integrate our India operations in global technology support development," Sabre Holdings Regional Vice President Vish Vishwanathan said.
Sabre offers retail travel products and provides distribution and technology solutions for the travel industry.
10/10/07 Press Trust of India
Expansion plans of Sabre were announced on the occasion of Sabre Holdings CEO Sam Gillilands India visit here today.
"The India GSC has delivered excellent services, including development, delivery, research and quality, to our global operations as well as to our key customers. We further integrate our India operations in global technology support development," Sabre Holdings Regional Vice President Vish Vishwanathan said.
Sabre offers retail travel products and provides distribution and technology solutions for the travel industry.
10/10/07 Press Trust of India
Wednesday, October 10, 2007
Govt not to relax 5-yr rule for airlines flying abroad
Mumbai: The oral proposal to reduce the number of years of domestic flying from five to three years for airlines to qualify for international operations has been given a quiet burial. An alternative is, however, being found for Kingfisher Airlines, which is determined and ready to fly overseas from April 2008.
Top aviation ministry sources said owing to an aggressive lobbying by industry players, stiff opposition to alter the rules had developed and several members of Parliament had raised the issue at the highest levels.
Last month, a letter by Communist Party of India (CPI) General Secretary A B Bardhan to the prime minister argued that since airlines are "carriers of our flag and prestige", only those with sufficient experience (that is, five years) should be allowed to go overseas.
Others opposing the move contend that the present annual capacity deployed between India and the rest of the world is 39 million seats in both directions and most airlines operating into and out of India have an average seat factor of around 70 per cent, leaving ample room for any foreseeable traffic growth. It has also been argued that adding new carriers from India will worsen the already-congested skies and airports.
10/10/07 Anjuli Bhargava/Business Standard
Top aviation ministry sources said owing to an aggressive lobbying by industry players, stiff opposition to alter the rules had developed and several members of Parliament had raised the issue at the highest levels.
Last month, a letter by Communist Party of India (CPI) General Secretary A B Bardhan to the prime minister argued that since airlines are "carriers of our flag and prestige", only those with sufficient experience (that is, five years) should be allowed to go overseas.
Others opposing the move contend that the present annual capacity deployed between India and the rest of the world is 39 million seats in both directions and most airlines operating into and out of India have an average seat factor of around 70 per cent, leaving ample room for any foreseeable traffic growth. It has also been argued that adding new carriers from India will worsen the already-congested skies and airports.
10/10/07 Anjuli Bhargava/Business Standard
Soaring airfares pushing travelers back to trains?
The low cost party seems to be getting over, at least for now, both for air passengers and for airlines. Domestic airfares this season are up 10-15% and so demand is down by almost 5%.
Increased airfares seem to be forcing some to go back to the trains. Low cost airlines have seen a dip of over 5% in demand this September over last year. The advance bookings for October are also down about 4% so far. This is a result of consolidation in the industry and a consequent 10% plus increase in airfares.
Ashwini Kakkar, Vice Chairman, Mercury Travels said, "Fuel prices are up, surcharges are almost Rs 1600, so there is no ticket less than Rs 2000."
The over 20% growth in air travel in the last two years prompted airlines to order over 300 aircraft. This led to overcapacity and a dip in airfares. Experts say a substantial increase in air travel was because of airfares that matched rail fares or were just marginally higher. Now that fares are over 20% higher than rail fares, within a matter of three months they are beginning to impact demand.
10/10/07 Moneycontrol.com
Increased airfares seem to be forcing some to go back to the trains. Low cost airlines have seen a dip of over 5% in demand this September over last year. The advance bookings for October are also down about 4% so far. This is a result of consolidation in the industry and a consequent 10% plus increase in airfares.
Ashwini Kakkar, Vice Chairman, Mercury Travels said, "Fuel prices are up, surcharges are almost Rs 1600, so there is no ticket less than Rs 2000."
The over 20% growth in air travel in the last two years prompted airlines to order over 300 aircraft. This led to overcapacity and a dip in airfares. Experts say a substantial increase in air travel was because of airfares that matched rail fares or were just marginally higher. Now that fares are over 20% higher than rail fares, within a matter of three months they are beginning to impact demand.
10/10/07 Moneycontrol.com
Tuesday, October 09, 2007
Airlines eye foreign routes as 5-yr clause nears end
Come April 2008 and Indian fliers will have more options to fly on to North America, Europe and possibly to Middle East. This will be possible for two reasons. The government is planning to do away with the five-year mandatory domestic flying experience for overseas operations. Heavy lobbying in this regard is on in New Delhi as this piece is written.
This is one of the reasons why the civil aviation policy has been delayed for some time. The Group of Ministers on civil aviation policy is split between two on the five-year mandatory experience clause. There have been several meetings in the past where ministers protesting the opening up of overseas routes to airlines other than the government carrier did not turn up.
But now, signals emanating from the corridors of power indicate that the airline operators may have a decision in this regard by December. Despite opposition from some ministries the government is trying to create a consensus in this regard.
Those supporting the opening up of overseas aerial routes argue that even less experienced players should be allowed to operate on international sectors. Many current players have displayed the financial strength and resilience needed to operate passenger routes since they got into operations.
They also argue that if government does not allow such operations it ll have to face charges of being discriminatory and partial.
09/10/07 Zee News
This is one of the reasons why the civil aviation policy has been delayed for some time. The Group of Ministers on civil aviation policy is split between two on the five-year mandatory experience clause. There have been several meetings in the past where ministers protesting the opening up of overseas routes to airlines other than the government carrier did not turn up.
But now, signals emanating from the corridors of power indicate that the airline operators may have a decision in this regard by December. Despite opposition from some ministries the government is trying to create a consensus in this regard.
Those supporting the opening up of overseas aerial routes argue that even less experienced players should be allowed to operate on international sectors. Many current players have displayed the financial strength and resilience needed to operate passenger routes since they got into operations.
They also argue that if government does not allow such operations it ll have to face charges of being discriminatory and partial.
09/10/07 Zee News
Monday, October 08, 2007
L&T considers manufacture of components for commercial jets
Mumbai: Engineering and construction company Larsen & Toubro Ltd (L&T) is exploring the possibilities of making components of passenger aircraft at its factory at Coimbatore in Tamil Nadu.
This will mark the entry of private players in aircraft component manufacturing for bigger jets at a time when India alone is going to buy 500 civilian planes in the next five years for scheduled operations. Until now, state-run Hindustan Aeronautics Ltd, or HAL, was the only company undertaking the manufacturing of components such as doors for bigger passenger planes made by Airbus SAS of Toulouse, in France and Boeing Co. of Seattle, US.
Bangalore-based Taneja Aerospace and Aviation Ltd is currently making components and two- and six-seater aircraft that are used for private and business purposes.
Besides high precision components, L&T is also looking at parts such as doors, and the company is in talks with Boeing and European Aeronautic Defence and Space Co., the parent company of Airbus.
India accounts for about 10-12% of the combined order backlogs of Airbus and Boeing. Airbus pegs India’s demand for airlines at 1,100 aircraft worth $105 billion (Rs4.15 trillion), over the next 20 years, according to the Associated Chambers of Commerce and Industry of India.
08/10/07 P. R. Sanjai/Livemint
This will mark the entry of private players in aircraft component manufacturing for bigger jets at a time when India alone is going to buy 500 civilian planes in the next five years for scheduled operations. Until now, state-run Hindustan Aeronautics Ltd, or HAL, was the only company undertaking the manufacturing of components such as doors for bigger passenger planes made by Airbus SAS of Toulouse, in France and Boeing Co. of Seattle, US.
Bangalore-based Taneja Aerospace and Aviation Ltd is currently making components and two- and six-seater aircraft that are used for private and business purposes.
Besides high precision components, L&T is also looking at parts such as doors, and the company is in talks with Boeing and European Aeronautic Defence and Space Co., the parent company of Airbus.
India accounts for about 10-12% of the combined order backlogs of Airbus and Boeing. Airbus pegs India’s demand for airlines at 1,100 aircraft worth $105 billion (Rs4.15 trillion), over the next 20 years, according to the Associated Chambers of Commerce and Industry of India.
08/10/07 P. R. Sanjai/Livemint
New aviation policy makes little headway
New Delhi: A second, crucial meeting of a group of ministers or GoM tasked with finalizing India’s new civil aviation policy, which seeks some far-reaching changes in regulations governing the sector, is getting delayed and increasingly runs the risk of falling into a limbo if the United Progressive Alliance unravels and heads for early elections.
Opening up of international skies to relatively young private airlines, sharing of military airspace and restructuring of the Airports Authority of India are some of the key elements of the new aviation policy. Hanging in balance is access to a lucrative international aviation market for firms such as Kingfisher Airlines Ltd and its affiliate Deccan Aviation Pvt. Ltd, whose airline flies under the Air Deccan brand.
Initially slated to meet in the first week of September, the GoM has not come together owing to various engagements of its dozen members. A civil aviation ministry official said the ministers may meet on 1 November, the only date available with external affairs minister Pranab Mukherjee, who heads the GoM.
But, four key ministers of the GoM have expressed their unavailability on 1 November. These include railways minister Lalu Prasad, shipping and road transport minister R. Baalu, tourism minister Ambika Soni and urban development minister S. Jaipal Reddy.
The first meeting of GoM, when most of the ministers were present, in August, remained inconclusive.
08/10/07 Tarun Shukla/Livemint
Opening up of international skies to relatively young private airlines, sharing of military airspace and restructuring of the Airports Authority of India are some of the key elements of the new aviation policy. Hanging in balance is access to a lucrative international aviation market for firms such as Kingfisher Airlines Ltd and its affiliate Deccan Aviation Pvt. Ltd, whose airline flies under the Air Deccan brand.
Initially slated to meet in the first week of September, the GoM has not come together owing to various engagements of its dozen members. A civil aviation ministry official said the ministers may meet on 1 November, the only date available with external affairs minister Pranab Mukherjee, who heads the GoM.
But, four key ministers of the GoM have expressed their unavailability on 1 November. These include railways minister Lalu Prasad, shipping and road transport minister R. Baalu, tourism minister Ambika Soni and urban development minister S. Jaipal Reddy.
The first meeting of GoM, when most of the ministers were present, in August, remained inconclusive.
08/10/07 Tarun Shukla/Livemint
Fare wars end in the skies
New Delhi: In the coming holiday season, which is that time of the year when passenger traffic peaks in the country, air travellers will not get rock-bottom prices like Re 1 or Rs 99. In all likelihood, they will have to fork out 10 per cent more for tickets than last year.
Travellers in small towns, too, will have little to cheer. Unlike the last peak season, low-cost carriers are not willing to fly to newer destinations as they attempt to cut their losses and consolidate their operations.
Budget carriers SpiceJet, Air Deccan and GoAir confi-rmed that this time they will not go below the Rs-500 mark for a ticket.
GoAir is offering 150,000 tickets at a basic price of Rs 500 and above. This is not very different from the low fares that full service carriers are offering. For instance, Jet Airways' lowest fare is Rs 650.
SpiceJet executives said the fare war was over and average fares across the country would now go up.
Agrees Air Deccan CEO GR Gopinath: "Of course, we expect average fares to go up by Rs 500 or so. That will help us get into profits."
07/10/07 Anirban Chowdhury/Business Standard
Travellers in small towns, too, will have little to cheer. Unlike the last peak season, low-cost carriers are not willing to fly to newer destinations as they attempt to cut their losses and consolidate their operations.
Budget carriers SpiceJet, Air Deccan and GoAir confi-rmed that this time they will not go below the Rs-500 mark for a ticket.
GoAir is offering 150,000 tickets at a basic price of Rs 500 and above. This is not very different from the low fares that full service carriers are offering. For instance, Jet Airways' lowest fare is Rs 650.
SpiceJet executives said the fare war was over and average fares across the country would now go up.
Agrees Air Deccan CEO GR Gopinath: "Of course, we expect average fares to go up by Rs 500 or so. That will help us get into profits."
07/10/07 Anirban Chowdhury/Business Standard
High-flying Modi faces Cong ire
Gandhinagar: In the last four years, Gujarat Chief Minister Narendra Modi has used these luxury aircraft over a hundred times.And it's all at the expense of corporates having business interests in Gujarat.
* Essar Group has provided its aircraft meant for its chairman Shashi Ruia 14 times * Reliance group has flown Modi nine times on a pan-Atlantic jet * Adani Brothers have helped Modi reach global destinations nine times
The Opposition Congress isn't amused and is demanding corruption cases be filed against Modi.
According to documents available with NDTV, Modi has flown over 1700 hours on these aircraft.
This includes trips to Beijing, Singapore, Russia, Switzerland and Sydney.
On an average, each hour spent in the sky costs $2200. That excludes airport usage charges, crew allowances and night-parking charges.
The BJP says the trips were needed to usher in foreign investment.
But as per data released recently by the Government of India, Gujarat has slipped two positions and now ranks 6th in terms of attracting FDI. NDTV approached each corporate house that flew Modi and Vaghela but none of them was willing to comment. Off camera, corporates having business interests in Gujarat say they don't have an option. A small price to keep them in business.
08/10/07 Joydeep Ray/NDTV.com
* Essar Group has provided its aircraft meant for its chairman Shashi Ruia 14 times * Reliance group has flown Modi nine times on a pan-Atlantic jet * Adani Brothers have helped Modi reach global destinations nine times
The Opposition Congress isn't amused and is demanding corruption cases be filed against Modi.
According to documents available with NDTV, Modi has flown over 1700 hours on these aircraft.
This includes trips to Beijing, Singapore, Russia, Switzerland and Sydney.
On an average, each hour spent in the sky costs $2200. That excludes airport usage charges, crew allowances and night-parking charges.
The BJP says the trips were needed to usher in foreign investment.
But as per data released recently by the Government of India, Gujarat has slipped two positions and now ranks 6th in terms of attracting FDI. NDTV approached each corporate house that flew Modi and Vaghela but none of them was willing to comment. Off camera, corporates having business interests in Gujarat say they don't have an option. A small price to keep them in business.
08/10/07 Joydeep Ray/NDTV.com
India to buy 197 helicopters
Paris: India will soon sign a deal with Europe's aerospace and defence major, EADS for purchase of 197 'Fennec' helicopters for use of Army, particularly in high altitude regions like Siachen.
An agreement for supply of the ‘AS 550 Fennec’ helicopters for Indian Navy may follow, as the latter has expressed interest in acquiring these, officials of the company said here.
“We are in final phase of having a deal to supply 197 (Fennec) light helicopters for the Indian Army. The contract is expected to be signed by the end of the year,” EADS senior vice-president for South Asia, Mr Allain Letanoux, told a group of Indian journalists here.
The deal will involve transfer of technology, he said. Though, Mr Letanoux did not specify the monetary volume of the contract, the deal is believed to be worth $600 million.
Under the understanding between the two sides, 67 helicopters manufactured in France will be purchased outright while the rest will be built jointly with the Hindustan Aeronautics Limited (HAL).
07/10/07 Press Trust of India/The Statesman
An agreement for supply of the ‘AS 550 Fennec’ helicopters for Indian Navy may follow, as the latter has expressed interest in acquiring these, officials of the company said here.
“We are in final phase of having a deal to supply 197 (Fennec) light helicopters for the Indian Army. The contract is expected to be signed by the end of the year,” EADS senior vice-president for South Asia, Mr Allain Letanoux, told a group of Indian journalists here.
The deal will involve transfer of technology, he said. Though, Mr Letanoux did not specify the monetary volume of the contract, the deal is believed to be worth $600 million.
Under the understanding between the two sides, 67 helicopters manufactured in France will be purchased outright while the rest will be built jointly with the Hindustan Aeronautics Limited (HAL).
07/10/07 Press Trust of India/The Statesman
IITB aerospace engineering festival comes to an end
Mumbai: Zephyr-2007, a festival organised by the aerospace engineering department of IIT, Bombay culminated on Sunday with a host of interesting and innovative competitions.
The three-day long festival saw a variety of events including workshops, competitions, paper presentations, debates and guest lectures by eminent personalities. Participants of some competitions were asked to come up with specifications based on provided guidelines. Their designs were then presented in front of a panel of judges who then questioned the participants.
One such competition was MACHinfinity which could be likened to aerial F1 where the judges had to pick out the fastest electric power glider that could fly two laps between two poles that were 200 metres apart and four metres high. Five teams were selected to actually make the planes and demonstrate their models’ capabilities in the final event which will be held in December.
In the SansPOWER competition, budding aerospace engineers made designs that could enable their planes to safely land in the areas marked as landing zones.
The Water Rocketry competition — where water is used as fuel, saw aviation enthusiasts built rockets with two litre plastic bottles.
At the Balsa Glider competition, participants built aircraft using balsa wood.
FlightSim tested the maneuvering skills of the participants using the software Flight Gear Flight Simulator. Later in the day, budding aviation scientists battled out in an aerotainment quiz.
08/10/07 Mumbai Newsline
The three-day long festival saw a variety of events including workshops, competitions, paper presentations, debates and guest lectures by eminent personalities. Participants of some competitions were asked to come up with specifications based on provided guidelines. Their designs were then presented in front of a panel of judges who then questioned the participants.
One such competition was MACHinfinity which could be likened to aerial F1 where the judges had to pick out the fastest electric power glider that could fly two laps between two poles that were 200 metres apart and four metres high. Five teams were selected to actually make the planes and demonstrate their models’ capabilities in the final event which will be held in December.
In the SansPOWER competition, budding aerospace engineers made designs that could enable their planes to safely land in the areas marked as landing zones.
The Water Rocketry competition — where water is used as fuel, saw aviation enthusiasts built rockets with two litre plastic bottles.
At the Balsa Glider competition, participants built aircraft using balsa wood.
FlightSim tested the maneuvering skills of the participants using the software Flight Gear Flight Simulator. Later in the day, budding aviation scientists battled out in an aerotainment quiz.
08/10/07 Mumbai Newsline
Sunday, October 07, 2007
NAL Making Progress On Light Transport
Already having delivered ten Hansa two-place turboprop trainers, National Aerospace Labs in Bangalore, India, is says it's making fast progress on the prototype of its twin-pusher, the Saras.
NAL markets its Hansa trainers to all segments of the student market.
Director A.R. Upadhya is also working on four- and six-place aircraft in conjunction with Mahindra Plexion.
But the effort to develop a 14-passenger transport should yield an Indian flight certificate sometime in 2009, he said, quoted on the website Domain-B.
But here's the kicker: NAL is now working on a regional jet it says will be lighter and more fuel efficient than those currently under development in Canada, Europe and China.
07/10/07 Aero-News Network, US
NAL markets its Hansa trainers to all segments of the student market.
Director A.R. Upadhya is also working on four- and six-place aircraft in conjunction with Mahindra Plexion.
But the effort to develop a 14-passenger transport should yield an Indian flight certificate sometime in 2009, he said, quoted on the website Domain-B.
But here's the kicker: NAL is now working on a regional jet it says will be lighter and more fuel efficient than those currently under development in Canada, Europe and China.
07/10/07 Aero-News Network, US
Saturday, October 06, 2007
Mistral Implements First ARINC 653 RTOS For Domestic Aircraft
Bangalore based Mistral Solutions has announced that it has enabled the implementation of the first ARINC 653 RTOS for civilian aircraft in India.
Its first customer is an unnamed Indian government owned aerospace that has acquired Wind River’s Platform for Safety Critical ARINC 653. This marks the beginning of a new era of commercial aviation in India.
New developments in hardware in the fledgling domestic aviation industry have warranted the need for enabling multiple applications to share a single processor and memory. This means that the execution time and memory space of each application needed to be protected from other applications in the system in order to guarantee that one cannot bring down another in the event of an application failure.
ARINC 653 is a standard for partitioning of computer resources in the time and space domains. The standard also specifies APIs for abstraction of the application from the underlying hardware and software and defines a standard interface between avionics application software and Real Time Operating System (RTOS).
05/10/07 SDA India Magazine, Singapore
Its first customer is an unnamed Indian government owned aerospace that has acquired Wind River’s Platform for Safety Critical ARINC 653. This marks the beginning of a new era of commercial aviation in India.
New developments in hardware in the fledgling domestic aviation industry have warranted the need for enabling multiple applications to share a single processor and memory. This means that the execution time and memory space of each application needed to be protected from other applications in the system in order to guarantee that one cannot bring down another in the event of an application failure.
ARINC 653 is a standard for partitioning of computer resources in the time and space domains. The standard also specifies APIs for abstraction of the application from the underlying hardware and software and defines a standard interface between avionics application software and Real Time Operating System (RTOS).
05/10/07 SDA India Magazine, Singapore
Friday, October 05, 2007
Reliance entry could see jet fuel prices fall
Mumbai: The new company that encompasses Air India and Indian (Airlines) is hoping to pare its hefty aviation fuel costs by about 10%, starting November, by opening up a supply tender, for the first time, to a private supplier: Reliance Industries Ltd.
The National Aviation Co. of India, or Nacil, is set to come out with a mega fuel tender this month to purchase jet fuel, better known as aviation turbine fuel (ATF), to meet the annual fuel needs of both Air India and Indian Airlines. And it is expecting Reliance to be a potential bidder, thanks to its newly created facilities to supply fuel at many Indian airports.
Supply of jet fuel in all of India has been the monopoly of three state-owned oil marketing companies and they typically priced the fuel at about 65% higher than it is available in many airports outside India.
This is also done because these companies then use ATF margins to cushion the impact of having to subsidize normal petrol and diesel sales.
05/10/07 P.R. Sanjai/Livemint
The National Aviation Co. of India, or Nacil, is set to come out with a mega fuel tender this month to purchase jet fuel, better known as aviation turbine fuel (ATF), to meet the annual fuel needs of both Air India and Indian Airlines. And it is expecting Reliance to be a potential bidder, thanks to its newly created facilities to supply fuel at many Indian airports.
Supply of jet fuel in all of India has been the monopoly of three state-owned oil marketing companies and they typically priced the fuel at about 65% higher than it is available in many airports outside India.
This is also done because these companies then use ATF margins to cushion the impact of having to subsidize normal petrol and diesel sales.
05/10/07 P.R. Sanjai/Livemint
Consolidation brings savings for airlines
New Delhi: Consolidation in the Indian skies has started yielding results for airlines. While cheapest airfares have shown a marginal increase re-cently — helping airlines come out of the red — a “correction” in salaries and perks of technical personnel, including pilots, in the past six months is likely to translate into lower operating cost for the carriers.
M&As in the aviation space have brought economies of scale for airlines.
The correction has happened after the three mega-mergers in the domestic skies and the disparity in salaries among various airlines has also started narrowing.
“Airlines are pretty much aligned now as far as salaries are concerned. The sporadic increases in salaries that happened in the past two years have come down now,” says Surajit Banerjee, vice-president-HR, SpiceJet. Agrees a senior Air India official: “There are increased synergies between airlines now.
There are only minor differences in salaries of pilots working for different airlines. Also, stricter regulations such as a six-month notice to be given before a pilot leaves, have given increased bargaining power to airlines,” he said.
Some low-cost airlines are, however, yet to realise the benefits.
05/10/07 Nirbhay Kumar & Vishakha Talreja/Economic Times
M&As in the aviation space have brought economies of scale for airlines.
The correction has happened after the three mega-mergers in the domestic skies and the disparity in salaries among various airlines has also started narrowing.
“Airlines are pretty much aligned now as far as salaries are concerned. The sporadic increases in salaries that happened in the past two years have come down now,” says Surajit Banerjee, vice-president-HR, SpiceJet. Agrees a senior Air India official: “There are increased synergies between airlines now.
There are only minor differences in salaries of pilots working for different airlines. Also, stricter regulations such as a six-month notice to be given before a pilot leaves, have given increased bargaining power to airlines,” he said.
Some low-cost airlines are, however, yet to realise the benefits.
05/10/07 Nirbhay Kumar & Vishakha Talreja/Economic Times
Dunlop India Confirms Aero Tyre Plans
Dunlop India has reiterated its intention to re-enter the aero tyre market. In July the company’s vice-president Dhrubojyoti Nandi reported Dunlop India was “focused to take advantage” of the country’s aviation boom, and in recent months it appears that the company’s factory in Sahaganj, in the state of West Bengal, has been earmarked for this purpose.
"We hope that it will start production in another two months," chairman Pawan Kumar Ruia told The Times of India. The newspaper printed reports that the company aims to achieve an output of 90 tonnes per day at the Sahaganj facility by the end of October and 130 tonnes by the end of March 2008, the close of India’s current fiscal year.
04/10/07 Tyres & Accessories, UK
"We hope that it will start production in another two months," chairman Pawan Kumar Ruia told The Times of India. The newspaper printed reports that the company aims to achieve an output of 90 tonnes per day at the Sahaganj facility by the end of October and 130 tonnes by the end of March 2008, the close of India’s current fiscal year.
04/10/07 Tyres & Accessories, UK
Business reformer: Praful Patel
Industrialist-Politician, Praful Patel runs the civil aviation ministry with the same hard-nosed business sense he uses to steer his Rs 500-crore CeeJay Group. Patel, who owns one of India’s biggest bidi and tobacco-derivatives businesses, might be referred to as Vidarbha’s Bidi King, but he is also king of the Indian skies for now.
Within months of taking charge, Patel negotiated a deal with the Left to hike the FDI cap in the domestic airlines sector from 40% to 49%. That was only the starting round. Braving stiff opposition, he also managed to privatise the Delhi and Mumbai airports—the two busiest in the country—to enable major expansion of facilities and induction of large investment along with the private sector management. Also to Patel’s credit is the acquisition of new aircraft for Indian and Air-India coming through after being caught in red tape for years. He has successfully merged the two government carriers to create a huge airline that can match rivals Singapore Airlines and Emirates in terms of fleet size. Patel personally piloted the merger, arguing that critical mass is necessary to take on competition from private sector rivals.
Patel has also successfully opened up international routes for private sector airlines and is now trying to remove the five-years-of-operation criterion that is necessary for Indian carriers to fly overseas. With Patel’s guidance, India has inked ‘open skies’ pacts with the US and the UK, and is in the process of signing a similar ASEAN pact.
04/10/07 Economic Times
Within months of taking charge, Patel negotiated a deal with the Left to hike the FDI cap in the domestic airlines sector from 40% to 49%. That was only the starting round. Braving stiff opposition, he also managed to privatise the Delhi and Mumbai airports—the two busiest in the country—to enable major expansion of facilities and induction of large investment along with the private sector management. Also to Patel’s credit is the acquisition of new aircraft for Indian and Air-India coming through after being caught in red tape for years. He has successfully merged the two government carriers to create a huge airline that can match rivals Singapore Airlines and Emirates in terms of fleet size. Patel personally piloted the merger, arguing that critical mass is necessary to take on competition from private sector rivals.
Patel has also successfully opened up international routes for private sector airlines and is now trying to remove the five-years-of-operation criterion that is necessary for Indian carriers to fly overseas. With Patel’s guidance, India has inked ‘open skies’ pacts with the US and the UK, and is in the process of signing a similar ASEAN pact.
04/10/07 Economic Times
Thursday, October 04, 2007
Govt pushes red-eye flights to ease traffic
New Delhi: The ministry of civil aviation, in an attempt to ease congestion at large airports, plans to offer a set of incentives, including a waiver of landing, parking and navigation charges at airports, to encourage domestic airlines to start the so-called “red-eye” flights between midnight and dawn.
Late-night flights between 11pm and 5am are commonly called red-eye flights in reference to sleep-deprived passengers who travel on such flights. They are cheaper than day flights in countries such as the US, Europe and Australia. Some airlines in India operate late-night flights but they are too few in number, with the last domestic passenger flight at around midnight.
In March this year, the ministry had proposed differential tariffs for landing at the Mumbai, New Delhi and Bangalore airports in peak and non-peak hours, but that plan failed with airline companies declining to change their schedules.
The aviation ministry says there is scope for airlines to increase flights in late-night hours especially to tap international passengers who need to take a connecting international flight late at night or early morning.
04/10/07 Tarun Shukla/Livemint
Late-night flights between 11pm and 5am are commonly called red-eye flights in reference to sleep-deprived passengers who travel on such flights. They are cheaper than day flights in countries such as the US, Europe and Australia. Some airlines in India operate late-night flights but they are too few in number, with the last domestic passenger flight at around midnight.
In March this year, the ministry had proposed differential tariffs for landing at the Mumbai, New Delhi and Bangalore airports in peak and non-peak hours, but that plan failed with airline companies declining to change their schedules.
The aviation ministry says there is scope for airlines to increase flights in late-night hours especially to tap international passengers who need to take a connecting international flight late at night or early morning.
04/10/07 Tarun Shukla/Livemint
Govt pushes red-eye flights to ease traffic
New Delhi: The ministry of civil aviation, in an attempt to ease congestion at large airports, plans to offer a set of incentives, including a waiver of landing, parking and navigation charges at airports, to encourage domestic airlines to start the so-called “red-eye” flights between midnight and dawn.
Late-night flights between 11pm and 5am are commonly called red-eye flights in reference to sleep-deprived passengers who travel on such flights. They are cheaper than day flights in countries such as the US, Europe and Australia. Some airlines in India operate late-night flights but they are too few in number, with the last domestic passenger flight at around midnight.
In March this year, the ministry had proposed differential tariffs for landing at the Mumbai, New Delhi and Bangalore airports in peak and non-peak hours, but that plan failed with airline companies declining to change their schedules.
The aviation ministry says there is scope for airlines to increase flights in late-night hours especially to tap international passengers who need to take a connecting international flight late at night or early morning.
04/10/07 Tarun Shukla/Livemint
Late-night flights between 11pm and 5am are commonly called red-eye flights in reference to sleep-deprived passengers who travel on such flights. They are cheaper than day flights in countries such as the US, Europe and Australia. Some airlines in India operate late-night flights but they are too few in number, with the last domestic passenger flight at around midnight.
In March this year, the ministry had proposed differential tariffs for landing at the Mumbai, New Delhi and Bangalore airports in peak and non-peak hours, but that plan failed with airline companies declining to change their schedules.
The aviation ministry says there is scope for airlines to increase flights in late-night hours especially to tap international passengers who need to take a connecting international flight late at night or early morning.
04/10/07 Tarun Shukla/Livemint
Wednesday, October 03, 2007
Regional airlines policy a non-starter in Delhi, Mumbai
New Delhi: Infrastructure crunch in Delhi and Mumbai airports is now setting alarm bells ringing among private players who want to make the most of the ongoing aviation boom. With both these airports in no position to handle any more small planes, the recently cleared policy for regional airlines has been a non-starter in north and west India where Delhi and Mumbai are the bases. Almost all applications for regional airlines are for south and northeast India.
The Bird Group, a leading provider of IT services to travel industry, is now closely watching the pace of development at IGI to see when the third runway is ready. "Had infrastructure been in place, we would have launched our regional airline for the north immediately. Now the airline should take wings in 2009. There's no point having a 30-minute flight from some city to Delhi and then hover at IGI for about an hour," said Ankur Bhatia, the group's executive director.
Delhi airport expects to get an additional runway by next summer and that may solve air traffic congestion to some extent.
The real alarm bells are ringing in Mumbai as the Navi Mumbai airport - the only hope for easing the city's notorious congestion — has now hit the coastal regulation zone hurdle.
What worries aviation industry in Mumbai is that all alternate sites talked about for Mumbai like Thane are still a distant dream.
03/10/07 Saurabh Sinha/Times of India
The Bird Group, a leading provider of IT services to travel industry, is now closely watching the pace of development at IGI to see when the third runway is ready. "Had infrastructure been in place, we would have launched our regional airline for the north immediately. Now the airline should take wings in 2009. There's no point having a 30-minute flight from some city to Delhi and then hover at IGI for about an hour," said Ankur Bhatia, the group's executive director.
Delhi airport expects to get an additional runway by next summer and that may solve air traffic congestion to some extent.
The real alarm bells are ringing in Mumbai as the Navi Mumbai airport - the only hope for easing the city's notorious congestion — has now hit the coastal regulation zone hurdle.
What worries aviation industry in Mumbai is that all alternate sites talked about for Mumbai like Thane are still a distant dream.
03/10/07 Saurabh Sinha/Times of India
IBSA summit to further strengthen trade ties
Pretoria: The second annual India-Brazil-South Africa (IBSA) summit could result in the trilateral initiative achieving their trade target of $10-billion within the next few years.
Events leading up to the summit, to be held at the Presidential Guesthouse on 17 October, will provide a platform for the formation of trilateral business partnerships aimed at enhancing existing trade between the three members states.
Speaking at a press briefing Tuesday, Ambassador Jerry Matjila, Head of the Asia and Middle East Section in the Department of Foreign Affairs said that since the formation of IBSA in 2003, trade between the three countries has increased to between $6 and $7 billion dollars.
A business forum will form a major component of events leading up to the one-day summit and will see over 200 business people from India, Brazil and South Africa attending the discussion groups at the Sandton Convention Centre on 15 and 16 October.
Mr Matjila said it was a chance for them to form trilateral companies especially in emerging opportunities in the transport, maritime and aviation sector.
He said the increased volume of air traffic had resulted in plans for Indian airline, Jet Airlines, to fly to OR Tambo International Airport soon and government hoped that the private sector would move into this area.
02/10/07 Sholain Govender/BuaNews Online (press release), South Africa
Events leading up to the summit, to be held at the Presidential Guesthouse on 17 October, will provide a platform for the formation of trilateral business partnerships aimed at enhancing existing trade between the three members states.
Speaking at a press briefing Tuesday, Ambassador Jerry Matjila, Head of the Asia and Middle East Section in the Department of Foreign Affairs said that since the formation of IBSA in 2003, trade between the three countries has increased to between $6 and $7 billion dollars.
A business forum will form a major component of events leading up to the one-day summit and will see over 200 business people from India, Brazil and South Africa attending the discussion groups at the Sandton Convention Centre on 15 and 16 October.
Mr Matjila said it was a chance for them to form trilateral companies especially in emerging opportunities in the transport, maritime and aviation sector.
He said the increased volume of air traffic had resulted in plans for Indian airline, Jet Airlines, to fly to OR Tambo International Airport soon and government hoped that the private sector would move into this area.
02/10/07 Sholain Govender/BuaNews Online (press release), South Africa
Health workers say India should join UNITAID
Healthcare NGOs, physicians and networks of people with HIV/AIDS have sent a memorandum to Prime Minister Manmohan Singh, urging him to speedily ensure that India joins UNITAID, an international drug purchase facility. They say that in the next few years there will be huge fund shortages to buy essential medicines in countries like India. Malaria, tuberculosis (TB), HIV/AIDS are illnesses for which, experts say, a second line of medicines will soon be needed.
The healthcare sector and positive people's networks are now asking India to join UNITAID, set up in September 2006 to generate money for medicines. India's National Aids Control Organisation (NACO) chief Sujata Rao was an observer at the initiative, which now has 30 members but India is yet to become one.
The fund's money is generated through an aviation-linked levy called solidarity tax. A part of the fund generated by each country goes to UNITAID. With this UNITAID does bulk purchase of drugs and gives it to needy countries.
Every flight ticket purchased automatically donates a dollar or two to UNITAID. In the past one year, over $300 million has been collected from nine member countries through this mechanism.
India has about 450 airports, 50 foreign airlines flying in, and 12 domestic airlines. Air traffic in India is projected to be to the tune of 90 million people by 2015. Today there are 50 million air travellers in India, annually. If each ticket can contribute Rs.100, "that gives the measure of the kind of money that can be generated to support the cause of second line medicine", Celina told IANS.
UNITAID members like Norway contribute through a kerosene tax while Britain, Spain and South Africa do so through budgetary allocations.
France has been particularly pro-active with Air France making across the world contributions for every seat on its flights and the tax has not hindered its growth.
In 2001, India, along with other 189 member states, endorsed the UN Declaration of Commitment on HIV/AIDS. As a signatory nation, India has also pledged "in particular to ensure their (AIDS patients') access to treatment" and India's universal access target date is 2012.
India has the third largest population of those living with HIV/AIDS and health officials say about 700,000 need Anti Retroviral Therapy (ART). In 2004, the government launched a free-ART programme, but in 2006 only about 40,000 had access to the medicine.
Along with free ART, TB is treated freely too and there is a demand in India's north eastern states that free treatment for Hepatitis C also be provided.
"NACO has begun the third phase of its control initiative in the country, but has no word on the second line of ART that will be required soon," Sundar Sunderaraman, a physician, told IANS.
03/10/07 Papri Sri Raman/indiainteracts.com
The healthcare sector and positive people's networks are now asking India to join UNITAID, set up in September 2006 to generate money for medicines. India's National Aids Control Organisation (NACO) chief Sujata Rao was an observer at the initiative, which now has 30 members but India is yet to become one.
The fund's money is generated through an aviation-linked levy called solidarity tax. A part of the fund generated by each country goes to UNITAID. With this UNITAID does bulk purchase of drugs and gives it to needy countries.
Every flight ticket purchased automatically donates a dollar or two to UNITAID. In the past one year, over $300 million has been collected from nine member countries through this mechanism.
India has about 450 airports, 50 foreign airlines flying in, and 12 domestic airlines. Air traffic in India is projected to be to the tune of 90 million people by 2015. Today there are 50 million air travellers in India, annually. If each ticket can contribute Rs.100, "that gives the measure of the kind of money that can be generated to support the cause of second line medicine", Celina told IANS.
UNITAID members like Norway contribute through a kerosene tax while Britain, Spain and South Africa do so through budgetary allocations.
France has been particularly pro-active with Air France making across the world contributions for every seat on its flights and the tax has not hindered its growth.
In 2001, India, along with other 189 member states, endorsed the UN Declaration of Commitment on HIV/AIDS. As a signatory nation, India has also pledged "in particular to ensure their (AIDS patients') access to treatment" and India's universal access target date is 2012.
India has the third largest population of those living with HIV/AIDS and health officials say about 700,000 need Anti Retroviral Therapy (ART). In 2004, the government launched a free-ART programme, but in 2006 only about 40,000 had access to the medicine.
Along with free ART, TB is treated freely too and there is a demand in India's north eastern states that free treatment for Hepatitis C also be provided.
"NACO has begun the third phase of its control initiative in the country, but has no word on the second line of ART that will be required soon," Sundar Sunderaraman, a physician, told IANS.
03/10/07 Papri Sri Raman/indiainteracts.com
Foreign IT cos, SIDBI likely to buy 25% in Mennen Aviation
Mumbai: Mauritius-based gaming firm Pallagames and UK-based IT firm Trilogix along with Small Industries Development Bank of India (SIDBI) are close to picking up around 25% stake in Mennen Aviation and Hospitality (MAHL), a Mumbai-based, real estate, gaming and aviation services firm.
“We have already finalised an equity deal with Sidbi while negotiations are on with Pallagames and Trilogix. MAHL has plans to raise around Rs 150 crore through a mix of debt and equity for our expansion plans. We have plans to offload around 25% equity to raise part of the required funds,” MAHL managing director Dinesh Menon said.
MAHL is currently developing around 100 acres of land in Mumbai, Goa and Karnataka. The firm is also setting up around 15 service apartments in these regions by 2012. The first project is coming up at Goa, which will be operational by the end of the year.
The firm has plans to set up an aviation training centre in Goa.
The company has also identified centres like Kochi, Karwar, Gurgaon, Pune, Bangalore, Chennai and Hyderabad for setting up service apartments. MAHL is also setting up gaming centres along with its service centres.
03/10/07 Rajesh Unnikrishnan/Economic Times
“We have already finalised an equity deal with Sidbi while negotiations are on with Pallagames and Trilogix. MAHL has plans to raise around Rs 150 crore through a mix of debt and equity for our expansion plans. We have plans to offload around 25% equity to raise part of the required funds,” MAHL managing director Dinesh Menon said.
MAHL is currently developing around 100 acres of land in Mumbai, Goa and Karnataka. The firm is also setting up around 15 service apartments in these regions by 2012. The first project is coming up at Goa, which will be operational by the end of the year.
The firm has plans to set up an aviation training centre in Goa.
The company has also identified centres like Kochi, Karwar, Gurgaon, Pune, Bangalore, Chennai and Hyderabad for setting up service apartments. MAHL is also setting up gaming centres along with its service centres.
03/10/07 Rajesh Unnikrishnan/Economic Times
IITB’s annual aviation fest from Oct 5
Mumbai: The annual aviation festival of the Indian Institute of Technology, Bombay, which is organised by the Aerospace Engineering Department from October 5-7, will be first big festival during the Golden Jubilee (GJ) celebrations of the institute. Started six year’s back, the Aerospace Engineering Association conducted Zephyr for the first time in October 2006.
"... The festival aims to act as a forum and encourage exchange of ideas in the fields of aerospace and aviation and will provide ample opportunity for technical interactions,” said Vimit Gandhi, Zephyr manager.
Static display of IAF chetak fighter helicopter, live helicopter operations by IAF commandos and Jaguar seat ejection system will be integral to the exhibition.
Significantly, the main highlight of the event this year is the keynote address by astronaut Sunita Williams on October 6.
03/10/07 Mumbai Newsline
"... The festival aims to act as a forum and encourage exchange of ideas in the fields of aerospace and aviation and will provide ample opportunity for technical interactions,” said Vimit Gandhi, Zephyr manager.
Static display of IAF chetak fighter helicopter, live helicopter operations by IAF commandos and Jaguar seat ejection system will be integral to the exhibition.
Significantly, the main highlight of the event this year is the keynote address by astronaut Sunita Williams on October 6.
03/10/07 Mumbai Newsline
Tuesday, October 02, 2007
Air travel to cost more
New Delhi: Low cost air travel is seeing some creeping increase in fares. In the coming days, such travel will become costlier with most airlines planning to increase the fuel surcharge by Rs 100 to offset their rising fuel bill.
This follows an increase of between Rs 1,604.52 per kilolitre (kl) to Rs 1703.49 per kl in the sale price of aviation turbine fuel (ATF) in October as compared to the previous month at the four major metro cities.
Airline officials point out that with ATF prices being on the rise continuously for the past several months, they have little choice but to pass on the increase to the passengers. In India, ATF accounts for between 30 per cent and 35 per cent of the operating cost of most major airlines.
A spokesperson for low cost airline SpiceJet said the airline was likely to announce a Rs 100 increase in the fuel surcharge within the next day or two. Jet Airways and the Madurai-based Paramount Airways confirmed a similar increase.
“The cost push has to be passed on to the consumer. In the past six months, the impact of increase in fuel costs has been offset by increasing the fuel surcharge,” said the Chairman and Chief Executive Officer of Kingfisher Airlines, Mr Vijay Mallya.
This is the fifth time that airlines have hiked the fuel surcharge since September last year.
01/10/07 Business Line
This follows an increase of between Rs 1,604.52 per kilolitre (kl) to Rs 1703.49 per kl in the sale price of aviation turbine fuel (ATF) in October as compared to the previous month at the four major metro cities.
Airline officials point out that with ATF prices being on the rise continuously for the past several months, they have little choice but to pass on the increase to the passengers. In India, ATF accounts for between 30 per cent and 35 per cent of the operating cost of most major airlines.
A spokesperson for low cost airline SpiceJet said the airline was likely to announce a Rs 100 increase in the fuel surcharge within the next day or two. Jet Airways and the Madurai-based Paramount Airways confirmed a similar increase.
“The cost push has to be passed on to the consumer. In the past six months, the impact of increase in fuel costs has been offset by increasing the fuel surcharge,” said the Chairman and Chief Executive Officer of Kingfisher Airlines, Mr Vijay Mallya.
This is the fifth time that airlines have hiked the fuel surcharge since September last year.
01/10/07 Business Line
PSUs hike ATF rates by Rs 1600-1700 for Oct
New Delhi: Oil PSUs have increased aviation turbine fuel (ATF) prices by Rs 1600-1700 for the current month, Indian Oil Corporation (IOC) announced today.
The fuel price increase would result in a cost increase of more than 4% for domestic airlines and more than 8% for international airlines.
Aviation fuel prices are revised at the beginning of every month based on the average international price in the previous month.
In Delhi, aviation fuel for domestic airlines will now cost Rs 39,767.75 rupees per kilolitre as against Rs 38,163.23 in a month back. Aviation fuel comprises 30-35% of airlines' total operational cost.
01/10/07 Business Standard
The fuel price increase would result in a cost increase of more than 4% for domestic airlines and more than 8% for international airlines.
Aviation fuel prices are revised at the beginning of every month based on the average international price in the previous month.
In Delhi, aviation fuel for domestic airlines will now cost Rs 39,767.75 rupees per kilolitre as against Rs 38,163.23 in a month back. Aviation fuel comprises 30-35% of airlines' total operational cost.
01/10/07 Business Standard
Airlines vie for greater share in Indo-Gulf skies
These days almost every airline in the Gulf wants to soar to new heights. Apart from the regular Western destinations, the airlines are now keen to expand their operations in their own region and India in particular. The Indian attraction is obvious as nearly four million non-resident Indian (NRIs) live and work in the Gulf countries.
The Qatar Airways, for example, has launched flights to Nagpur recently. The launch of twice-weekly flights between Doha and Nagpur takes the airline’s burgeoning network across India to 44 services a week. The airways had recently launched daily service to Mumbai from Doha and this has been a complete success.
Meanwhile, Bahrain’s Gulf Air which connects several Indian cities including Bangalore wants to revamp all its services, including those to India. SriLankan Airlines already caters to the major Indian cities via Colombo and there are direct services offered by several airlines such as Oman Air, Emirates, Air Arabia, Saudi Arabian Airlines, Etihad Airways, Kuwait Airways to the Indian destinations from their respective countries.
Amidst this, the entrance of Jet Airways has intensified competition. The decision of the Indian government to allow Jet Airways to fly to certain Gulf destinations is expected to induce more customer friendly environment and possible cut in the fares. It is estimated that fares on the Indo-Gulf routes would come down by 10 per cent in view of the extra capacity that would be inducted by the Jet Airways when it launches services to the Gulf from the New Year. Till now, bilateral rights for the lucrative Gulf were reserved for Air India and Indian, which have now merged into a single airline.
02/10/07 Gopal Sutar/Deccan Herald
The Qatar Airways, for example, has launched flights to Nagpur recently. The launch of twice-weekly flights between Doha and Nagpur takes the airline’s burgeoning network across India to 44 services a week. The airways had recently launched daily service to Mumbai from Doha and this has been a complete success.
Meanwhile, Bahrain’s Gulf Air which connects several Indian cities including Bangalore wants to revamp all its services, including those to India. SriLankan Airlines already caters to the major Indian cities via Colombo and there are direct services offered by several airlines such as Oman Air, Emirates, Air Arabia, Saudi Arabian Airlines, Etihad Airways, Kuwait Airways to the Indian destinations from their respective countries.
Amidst this, the entrance of Jet Airways has intensified competition. The decision of the Indian government to allow Jet Airways to fly to certain Gulf destinations is expected to induce more customer friendly environment and possible cut in the fares. It is estimated that fares on the Indo-Gulf routes would come down by 10 per cent in view of the extra capacity that would be inducted by the Jet Airways when it launches services to the Gulf from the New Year. Till now, bilateral rights for the lucrative Gulf were reserved for Air India and Indian, which have now merged into a single airline.
02/10/07 Gopal Sutar/Deccan Herald