An aviation boom year that was 2010

Mumbai: The total number of passengers carried in 2010 (January-November) was 468.09 lakh compared to 393.53 lakh in the corresponding period last year. Aircraft movement grew 3.4% year on year while cargo movement rose 26.9% year on year.
This growth in passenger traffic has also been reflected in the average passenger load factors this year.
According to data available with Director General of Civil Aviation, passenger load factors for domestic operations in India were 70.1% in 2009 (January-December), which have improved to 76.1% in 2010 (January- November).
Total number of domestic flight departures was around 479,148 in 2010 (January- November) compared with 508,051 in 2009 (January-December). The annualised figure for 2010 works out to 522,706, about 2.88% higher than 2009.
31/12/10 Amritha Pillay/Daily News & Analysis

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Flight delays costing airlines Rs. 25-50 crore

New Delhi: Airlines which were ideally expecting to ring in the holiday season with festive flourish may instead have to deal with a rude shock, courtesy the weather.
Dense fog has gripped North and East India and heavy snowfall has crippled international air travel, thus, throwing airline schedules off gear. Airlines are expected to lose Rs. 20-50 crore due to this.
"With weather playing havoc, you have to suffer losses due to delay, re-routing getting to an airport where you don’t have facilities...all this account for losses and Rs. 20-50 crore is an average which airlines lose during the fog period," said Ankur Bhatia, executive director of Bird Group. Long haul international operations too are not faring well. Reeling under intense snow in Europe and US, Indian carriers had to cancel flights as operations are being brought to a standstill. Airlines are providing refunds for the ticket for flights which were cancelled.
29/12/10 Faizan Khan/NDTV.com

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As economy expands, airlines hope for another year of growth

India’s airlines enter 2011 comforted by double-digit growth in passenger traffic that promises to stretch into a second year as the economy grows at a faster pace, helping support their ambitious expansion plans.
Jet Airways (India) Ltd, Kingfisher Airlines Ltd, IndiGo run by InterGlobe Aviation Ltd, Air India Ltd and smaller airlines have carried a record 50 million passengers in 2010, an increase of 18% over the year-ago period.
And, after posting a combined loss of $2 billion (Rs.9,020 crore today) in each of the previous two years, airlines are set for a profit of $300 million in the fiscal year to March 2011, estimates the consultancy Centre for Asia Pacific Aviation (Capa).
“It’s certainly a year of recovery. Everyone is now at a break-even or profitable,” says Aditya Ghosh, president of budget carrier IndiGo.
India’s airlines have emerged from two years of turbulence during which they were beset by surging costs, excess capacity and intense competition as well as fallout from the global financial crisis that caused passenger traffic to slump.
“Almost all factors that drive airline profitability—passenger demand, load factors, yields and oil prices—have largely been favourable in 2010,” says JPMorgan’s Mumbai-based analyst Princy Singh.
JPMorgan India has started tracking airline stocks that are back in favour with investors who shunned them in the past three years.
Jet Airways shares have risen 29% since the start of 2010 to Rs.715 at the close of trading on Wednesday and SpiceJet Ltd rose 35% to Rs.76.90. But Kingfisher Airlines declined marginally by 1.58% to Rs.62.05. The Bombay Stock Exchange benchmark Sensex rose 16.67% in the same period.
30/12/10 Tarun Shukla/Live Mint

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Airfares remain on erratic flight path

Mumbai: The recent reduction in airfares may be giving flyers a reason to smile, but their joy may just be short-lived. Though the skyrocketing airfares seem to have been reined in at the moment, prices are unlikely to remain stable at current figures for long, say industry experts.
Air Passengers Association of India (APAI) President Sudhakar Reddy said, "The fares have come down for now but airlines are eminently capable of increasing fares at the last minute.
We need to continue our push for a stronger regulatory body to supervise the process of deciding airfares. While fares are expected to climb down further in mid-January, a long-term solution to the problem will only be found when the regulatory body is put in place."
While admitting that airfares on the four busiest sectors from Mumbai Delhi, Kolkata, Bangalore and Goa have become cheaper, travel agents expressed doubts about current levels being sustained.
"The fares are relatively cheaper now than they were during Diwali, but tickets which used to cost Rs 3,500 on the Delhi sector before Diwali now cost Rs 5,500 and more. A further hike is expected around March-end," said Devang Sanghvi of Venus Holidays.
"Fares are cheaper compared to the period during and after Diwali, but stability is lacking. Fares can double or triple within hours," pointed out ticketing agent Vikash Kumar.
"I booked a ticket to Goa for the New Year and my ticket from Mumbai cost me Rs 3,500, but the return ticket is costing me Rs 13,000. I fail to understand why I am being charged so much," said bewildered frequent flyer and Borivli resident D Srinivasan.
29/12/10 Bipin Kumar Singh/MiD DAY

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Airlines in Rajasthan announces steep hike in airfares

Jaipur: Domestic airlines announced steep hike in the fares for the flights to and from Rajasthan, as the stir by the members of Gujjar community have blocked road and rail transport in the region.
Hundreds of members of the Gujjar community have blocked railway routes in Rajasthan's Dausa District, demanding five percent quotas in government jobs and educational institutions.
Interacting with mediapersons, Arun Choudhary, a travel agent, said the airlines have literally capitalised on the road and rail blockade and also the minimum number of flights touching Jaipur.
"The airlines are benefiting but its not benefiting year to year. The normal price for any sector like Jaipur-Delhi, Jaipur- Mumbai, or Jaipur-Bangalore, the pricing hiked over 70-80 per cent from last year. So normally we are getting three to four thousand rupees in all, over this year is getting 10 to 12 thousand rupees and still we are approaching the airlines to get single-single tickets," said Choudhary.
"The problem is that they have very limited seat capacity from Jaipur. Jaipur-Delhi they have only three flights, one is Jet Airways and other two is (are) in Kingfisher morning and evening. People don't want to travel by road due to panic of Gujjars," he added.
29/12/10 Economic Times

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Executive jet industry is flying high

Mumbai: With the number of high net worth individuals in India rising, so too is the number of private jets being acquired by companies as well as some individuals.
According to the Ministry of Civil Aviation data, in 2010 alone, more than 10 corporate houses sought permission to acquire middle to large sized jets for “private use”.
Mahindra and Mahindra, Jaiprakash Associates Ltd, Ashok Leyland and TVS Motors, Jindal Steel and Power Ltd, JSW, Crompton Greaves, Joy Alukkas, Tata Steel and Reliance Transport and Travel are among those making a beeline to the Ministry seeking clearance to import private jets.
The manufacturers point out that acquiring these jets actually makes sound business sense as they help pack in more into a working day.
The Regional Vice President, Asia/Pacific, Gulfstream, Mr Jason Akovenko, pointed out that the country's private-jet market is buoyed by the country's economic growth and expanding business interests, both in India and abroad.
Brazilian jet manufacturer, Embraer sees both challenges and opportunities here.
“..Infrastructure supporting the business jets industry is one of the major concerns, specifically Fixed-Base Operators, private jets terminals, access, flight permits and other such issues,” said Mr Jose Costas, Vice-President of Embraer Executive Jets for Asia Pacific.
28/12/10 Debabrata Das/Business Line

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Country’s first seaplane Jal Hans takes wings

New Delhi: Civil Aviation Minister Praful Patel launched Jal Hans, the first seaplane of Pawan Hans Helicopters Limited, at a ceremony held in Mumbai today.
Seaplanes would also be introduced in other areas of India like Lakshadweep, Goa, Orissa. Seaplane, a fixed-wing aircraft capable of taking off and landing on water, is ideal when island is far from land or when there is no landing strip. Unlike regular aircraft, these do not require a large runway.
This is the first time that seaplane operations have been introduced in India. Jal Hans is a Cessna Caravan 208. A Amphibian fitted with modern navigation features of any large jet. With a seating capacity of 10, of which eight are passenger seats, it can travel up to 250 km in about an hour and land on most calm waters. It can also land on ground using the wheels configuration.
The first seaplane service will be operationalised in the Andaman and Nicobar Islands. It will connect Port Blair with Havelock and subsequently other islands in north Andaman. At Port Blair, it will operate from the airport, at Havelock and Diglipur, it will operate from a waterdromme.
27/12/10 Vibha Sharma/The Tribune

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ONGC to raise stake in Pawan Hans to 49%

Mumbai: Oil and Natural Gas Corp (ONGC) will increase its stake in Pawan Hans Helicopters Ltd from the current 21% to 49% for around Rs95 crore.
Pawan Hans is expected to use the proceeds, along with other debt-based and government funding, for fleet expansion. The state-owned helicopter service company has huge expansion plans, which would be funded through ONGC’s equity investment and loan of around Rs275 crore, along with debt funding by NTPC of Rs55 crore and government funding of around Rs14 crore.
The loan-based funding committed by NTPC and ONGC would be disbursed in tranches as and when Pawan Hans takes deliveries of helicopters. The loan term is around five years.
Pawan Hans is also negotiating an additional Rs100 crore from Border Roads Organisation. Company officials are hopeful that ONGC’s equity infusion would be complete by the end of this financial year.
By the end of 2011, the company plans to add around 15 more helicopters to its current fleet of 52 helicopters (41 helicopters + 11 on maintenance and operations). While seven of these 15 choppers have already been delivered, the remaining eight are expected to join the fleet by December 2011.
28/12/10 Amritha Pillay/Daily News & Analysis

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Price factors beyond airline’s control under aviation panel ambit

New Delhi: After having secured some transparency in air fares from airlines, the aviation ministry is now planning to expand the scope of a newly formed economic advisory council to take up matters that affect ticket pricing that are beyond a carrier’s control.
Earlier this month, the ministry formed the council with representatives from airlines, airports and consumer forums.
The forum will advise it on a policy framework to ensure affordable air services to remote and under-served areas, increase investment in the sector, liberalize international air services and ensure the viability of air transport in India.
The formation of the council was triggered by a steep escalation in air fares as demand outstripped seat availability in the peak season beginning November.
Airlines were persuaded to lower fares and put them up on their websites to ensure transparency.
“We have transparency in place; we will now have to increase the terms of reference of the committee to look at demand and supply and other issues. We will need more broad-based solutions,” said a civil aviation ministry official, who declined to be named.
28/12/10 Tarun Shukla/Live Mint

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Mobile operators violate aviation safety norms in Assam

Dibrugarh: Mobile operators of all hues, from the State owned BSNL to private sector players like Airtel, Aircel, Vodafone, Reliance, Tata Indicom, and Idea Telecom have been fragrantly flouting aviation safety regulations. Most of the mobile towers do not have functional aviation hazard lights. Ironically, even the Doordarshan and All India Radio towers do not switch on the air navigation safety lights regularly. This phenomenon has been noticed in most parts of Assam, and the matter could hardly be any better in the other states of the region.
In most of the cases, incandescent bulbs are used for air navigation hazard lights in the mobile, telecommunication, radio and TV towers. Those in the know are of the opinion that such bulbs often fuse out due to voltage fluctuation and other reasons. This leaves the lights inoperational most of the time. A better practice would be to install LED lights, which last much longer and are less prone to voltage issues, said a source in the Airports Authority of India.
27/12/10 Assam Tribune

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Wait gets longer for transparency in fixing airfares

Mumbai: A group set up by the civil aviation ministry to recommend measures to bring transparency in the fixing of airfares is unlikely to submit its report by December 30, because its meeting with the aviation regulator, last week, turned fruitless.
The ministry had created a first-of-its-kind group of
representatives from a passengers’ body, travel trade, airport operators and airline CEOs to submit a report on passenger concerns, airfares in particular by December 30. But group members claim that the Bharat Bhushan, who heads the Directorate General of Civil Aviation (DGCA), left the maiden meeting halfway.
“I wasted the whole day travelling all the way to Delhi from Chennai for the meeting but it was futile because we did not get enough time to discuss the issues affecting fliers,” said Sudhakar Reddy, national president, Air Passenger Association of India, a member of the group. The other members of the group are Rajji Rai, president, Travel Agents Association of India, advertising professional Dilip Cherrian, aviation analyst Kapil Kaul and representatives from Air India and Indigo Airlines.
Civil aviation minister Praful Patel created the group after airfares doubled since mid-November.
28/12/10 Soubhik Mitra/Hindustan Times

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Airlines cash in on Gujjar stir

New Delhi/Jaipur: The Gujjar agitation in Rajasthan has gifted airlines a rare windfall. They have hiked air fares between 150 and 200 per cent for year-end travellers on the busy "Golden Triangle circuit" covering Delhi, Agra and Jaipur and the Mumbai-Jaipur route via Ajmer.
The Gujjars hold the government to ransom by blocking rail tracks on Sunday.
About a lakh people are stranded in various parts of the state after the Gujjars intensified their rail and road blockade on Saturday, the sixth day of their protest.
They blocked the Ajmer-Indore track in Bhilwara.
Similarly, road transport remained disturbed in various districts.
This led to air fares jumping by at least 150 per cent than the usual about a week ago and in some cases, even up to 200 per cent on the Delhi-Jaipur route.
"There are two-three daily flights on the Delhi-Jaipur sector and most seats are booked for the last week of the year," travel website Yatra. com's Sabina Chopra said. "But, for the 10-12 seats still available on each flight, air fares have jumped from the usual Rs 2,500-Rs 4,000 slab to the Rs 10,000-Rs 15,000 for December 28 and 29." Jet Airways and Air India's evening flights will cost Rs 20,000 (via Ahmedabad) and Rs 17,000, respectively on December 28, she said.
On the Jaipur-Mumbai air route, where Kingfisher Airlines offers tickets for Rs 2,400, Jet Airways and Air India are charging Rs 5,200 for the same dates next week.
Sensing urgency of the passengers, travel agents are quoting Rs 10,000 for the Mumbai-Jaipur flight, "which is blamed more on bad weather, including fog, in the last two nights threatening to cancel the last evening flights", a senior Kingfisher official said in Delhi.
But the worst-hit are the Golden Triangle circuit lovers, who have to travel by road for the lack of flight service between Delhi and Agra.
26/12/10 Maneesh Pandey & Sudhanshu Mishra/India Today

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M'lore crash, surging traffic and fares mark aviation sector

New Delhi: A major aircrash , sudden surge in airfares and a flash strike by Air India employees marked the civil aviation sector in 2010, as the national carrier waited with bated breath to get the second tranche of equity infusion of Rs 1,200 crore in its bid to come out of the red.
The crash of Air India Express Boeing 737-800 in Mangalore claiming 158 lives, was the blackest spot on the Indian aviation scene in the year, forcing government to take immediate steps to have proper safety mechanisms in place.
The year saw a rebound in passenger traffic growth bringing some respite to the cash-strapped airlines, with the no-frill carriers benefitting the most. As a result, IndiGo narrowly tipped Air India (Domestic) to corner more market share in November, placing itself in the third position after Jet Airways and Kingfisher Airlines.
Not to lose an opportunity to make money as air traffic grew at a fast pace, Indian carriers started charging high fares even during the non-peak periods.
The air fares, particularly the last-minute or spot fares, rose substantially in October-November with some Indian carriers raising spot fares by as much as three-four times on high density routes, forcing government to intervene.
Following an uproar among the travelling public, the government stepped in last month to sternly warn airlines to reduce airfares within a week or face action. The warning and measures by the Directorate General of Civil Aviation (DGCA) brought down the ticket prices by 20-25 per cent.
26/12/10 PTI/Times of India

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Aviation boom in Asia

Last year Asia charted a major milestone in air travel when it became the most profitable region in the airline world. That was because of the strong economic growth. Asia will again lead the way next year as its economies are booming and rising wealth is pushing air travel up.
AirAsia X CEO Azran Osman-Rani does not doubt the long-term fundamentals of the airline sector and predicts that it will be strong.
It is no wonder that the once struggling US carriers want to be back on the scene. Last week, Delta Airlines ranked the worlds No. 1 by passenger miles flown said it wanted to tap into the Asian market by mounting flights to Haneda and Shanghai initially. Hawaiian Airlines is already on the radar screen. The US carriers want to boost available seat per week to Asia by 14% between the 3Q10 and 3Q11.
Even within Asia, the carriers are intensifying efforts to grow intra-Asian routes. In India, Jet Airways wants to resume flights to Shanghai and later scale new heights by flying to Tokyo, Seoul, and Taipei. It is all about positioning and strengthening at this juncture.
Asia is essentially home to the worlds three most populous nations India, China and Indonesia where four billion people live and this represents 62% of the worlds population. The Asia-Pacific region generates about 27% of the worlds GDP and rising wealth continues to drive air travel.
There are 600 million passengers in Asia Pacific, of which about 400 million travel within the region and about 200 million take to the international skies, annually.
The percentage of people flying in Asia is higher compared to the United States and Europe. Asia is made for aviation as road infrastructure is poor and land area is huge. The growth of aviation will be vibrant in Asia in 2011, says AirAsia group CEO Datuk Seri Tony Fernandes.
Air travel moves in a 5-6 year cycle and it is currently in its fourth cycle. The first cycle began in 1979 and the fourth in 2008. During each cycle there is the boom and bust period.
History suggests that the strongest growth period occurs in the 4th to 5th year after a crisis and 2011 will be the 4th year of the current wave, Maybank Investment says in a report. It says load factor in the region is in the 70% range.
The cycle began during the downturn and the recovery has been strong with most airlines in Asia having reinstated the capacity they took off in 2008 and 2009.
25/12/10 The Star Online, Malaysia

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Domestic airlines set to fly 50 lakh passengers in December

New Delhi/Mumbai: The domestic airline industry is a breath away from breaching another barrier — carrying 50 lakh passengers in a single month. In December 2009, the industry had flown 44.87 lakh passengers.
A cross-section of industry told Business Line that with forward bookings for this month looking “very healthy,” the half-million passenger carriage mark should be crossed for the first time this December.
Sources indicated that the bookings received for December 24 alone — which is likely to be above 1.75 lakh passengers — has given a boost to the industry.
The increase in passenger carriage has been achieved by the industry despite last-minute fares being very high. While airline operators were not available for comment, travel agents said that the economic boom and the increased spending power are reasons for the trend, which has been buoyed by the holiday season.
Frost & Sullivan's analyst for aerospace and defence, Mr John Siddharth, pointed out that the Indian aviation sector is one of the fastest growing markets globally, and the Indian air travel passenger market is expected to surpass the 50-million or 5-crore passenger mark in 2010. During calendar 2009, the industry flew 4.39 crore passengers.
24/12/10 Ashwini Phadnis/Shubhra Tandon

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Par panel grills Civil Aviation officials on steep airfares

New Delhi: With airfares spiralling, members of a Parliamentary panel grilled top officials of the Civil Aviation Ministry and demanded quick action to curb overpricing of air tickets .
Members of the Committee on Estimates, which met earlier this week, expressed deep concern over the phenomenal rise in airfares in the recent past and wondered whether anybody had control over selling airtickets.
A section of the members sought to hold the open market economy responsible for the present situation and favoured setting up of a body to ensure that the airfare do not shoot up suddenly in the future.
"Somebody has to be responsible for controlling airfares. The situation should not be allowed to go out of hand like the recent past," said a member of the Committee headed by Francisco Sardinha.
The Competition Commission of India has asked its investigation wing to inquire into the possible cartel-like behaviour in fare hike by airlines.
The Commission has also asked the Civil Aviation Ministry to share information about the fare hike by airlines with it.
The suo motu action by the Commission follows media reports and the statements by Civil Aviation Minister Praful Patel on steep hike in fares announced by airlines in non-peak season last month.
Some members were concerned over the delays in flights due to various reasons and wanted the airliners, at least the national carrier, to strictly follow schedules.
Members were also worried over the financial health of Air India and referred to reports in a section of the media that the national carrier would be unable to even pay salaries to their employees after March 2011.
24/12/10 PTI/Economic Times

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“Niira Radia invested in the right people ”

New Delhi: Daughter of a Punjabi couple settled in Kenya, Niira Radia came to India in 1994 and in the 16 years since then, she has set up base in a South Delhi locality and dabbled as an aviation consultant with ambitions of setting up her own airline.
All these years, she became a powerful politician's dear friend, disciple of a powerful religious guru and, most triumphantly, a publicist for India's two biggest tycoons. “Radia invested in the right people and made the extra effort when needed,'' says India Today in its January 3, 2011 issue, which carries Niira Radia on the weekly newsmagazine's cover, describing her as “Newsmaker 2010'' – Niira Radia – the Destroyer.
“During 1999-2000, she came close to the then Union Civil Aviation Minister Ananth Kumar through her spiritual guru, Vishwesha Teertha Swami, pontiff of Sri Pejawar Mutt at Udipi in Karnataka,'' the cover story says. It quoted Rao Dheeraj Singh, a former employee and close friend with whom she later fell out, as saying that she became “too involved with Mr. Ananth Kumar and all the deals and contracts of this minister were going through her.''
“2001 was her breakthrough year. She met Ratan Tata while working on the Tata Airlines-Singapore Airlines joint venture. He was impressed with her knowledge of aviation. At that point, Indian Hotels had also signed an MoU with the Department of Culture for the preservation and upgradation of the Taj Mahal. Tata wanted to promote the brand association of the hotels and the monument…Nudged by Tata, she started Vaishnavi Corporate Communications which initially handled the public relations of 14 Tata companies. She did not think small. By 2009, she was handling public relations for over 90 companies of the Tata Group with over 300 employees across 13 cities. Its 2009 revenues were Rs. 57 crore,'' the story says.
Gradually, the company started adding non-Tata accounts and so parallel agencies were formed to handle their business. In 2007, she started Noesis Strategic Consulting Services to handle strategic and business advisory assignments – bagging a contract to restructure the telecom licensing framework for the Sultanate of Oman – and Vitcome Consulting, it says.
According to India Today, in 2008 Mukesh Ambani's trusted advisor Manoj Modi roped in Radia to handle the exclusive business of Reliance Industries and so was born NeUCom Consulting. She now controlled access to two of the most iconic business tycoons in the country.
In what is public knowledge, Radia's influence began to grow when the BJP-led NDA came to power in 1998 and Ananth Kumar was appointed Civil Aviation Minister. Claims Rao Dheeraj Singh, who was her business partner: “It was actually in the BJP regime that everything started going right for us. After the KLM UK deal, a lot of companies started approaching her. We sold some helicopters to Sahara. The Airbus Consortium started supporting her. Karnataka and Maharashtra governments were sold Eurocopters. There was a BJP Government in Maharashtra. Radia had a good relationship with Ananth Kumar. He managed the whole thing for us.” Singh claims recalling a meeting a senior leader (name withheld) during the Eurocopter deal. “I remember when this Eurocopter deal with the Maharashtra Government was being negotiated, Niira and I went to Nagpur together to meet the leader, who facilitated it,” alleges Singh.
25/12/10 Vinay Kumar/The Hindu

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Year-End-Review of the Ministry of Civil Aviation for the year 2010

The year 2010 has seen a robust growth in terms of aircraft movement and passengers handled. Vis-a-vis 2009 the growth rate has been 3.4% in respect of aircraft movement and 16.2% in respect of passengers handled and 26.9% with respect to cargo. Passengers carried by domestic airlines from January-November, 2010 were 468.09 lakh as against 393.53 lakh in the corresponding period of the year 2009 thereby registering growth of +18.9%. There are, at present, 16 Scheduled (11 scheduled passenger airlines, 02 scheduled regional airlines and 03 scheduled cargo airlines) and 121 Non-scheduled Operators. At present there are 419 aircraft with the scheduled operators. The total aircraft in the Non Scheduled category are 360.
This year saw the Ministry of Civil aviation take several initiatives to facilitate the passengers to undertake hassle free and convenient air travel by the issue of CARs through the Directorate General of Civil Aviation (DGCA). A state of the art new integrated Terminal-3 has been operationalized at the Delhi Airport in July this year creating a new beginning in world class infrastructure, with public-private participation in the aviation sector. The much awaited environmental clearance has also come through for construction of a New Green Field airport at Navi Mumbai.

Following are some of the important issues taken up by the Ministry of Civil Aviation during the year 2010:

Initiatives of the Ministry in the field of Economic Regulation
To elicit the views of stakeholders, to gain expertise from the concerned experts and to augment capacity to address issues that are predominantly economic in content, the Civil Aviation Economic Advisory Council was established on 9 December, 2010 under the Chairmanship of Secretary Civil Aviation and with members drawn from different fields of expertise that are directly and indirectly connected to Civil aviation sector. The first meeting of the Council took place on 13 December 2010.

Consumer protection measures

(i) On 6 of August, 2010 a Civil Aviation Rule (CAR) has been issued which provides for compensation and facilities to the passengers in case of denied boarding, cancellations and delays. The violation of this CAR is punishable under the provisions of scheduled VI to the Aircraft Rules, 1937. This will be a category III offence attracting a maximum penalty of 6 months in prison or Rs. 2 lac fine or both

(ii) On 31 July, 2010 CAR has been issued in order to promote fair competition in the airline sector and to ensure that consumers do not receive inaccurate or misleading information on airline services, by strengthening the computer reservation system/global distribution system

(iii) On 3 September, 2010 the relevant Rule has been amended and circular issued to provide that the Pilot-In-Command may permit the use of cellular/mobile phones after the aircraft has landed and cleared active runway. However, this facility will not be available during low visibility conditions.

Connectivity in North Eastern Region
At present, there are 11 operational airports served by the Scheduled airlines in the North-East region viz. Dibrugarh, Guwahati, North Lakhimpur, Imphal, Dimapur, Agartala, Shillong, Jorhat, Silchar, Tezpur & Lengpui. 348 flights per week are being operated by NACIL, Alliance Air, Jet Airways, JetLite, Kingfisher Airlines, Spicejet and IndiGo to/from these airports. The no. of flights in the NER has been increased from 286/week in Summer Schedule 2010 which is an increase of 21.67%. In addition, Pawan Hans Helicopters Ltd. (PHHL) is providing helicopter services under the aegis of the State Governments of Arunachal Pradesh, Nagaland, Meghalaya, Sikkim, Tripura.

Further, the DGCA has commissioned a comprehensive study to evolve a roadmap for air connectivity to the North-eastern region.

Bilateral Agreements

· Election in the Council of ICAO

In the 37th Assembly session of the International Civil Aviation Organisation (ICAO) held at ICAO Headquarters at Montreal in Canada on 28 September – 08 October, 2010, elections were held for the representation of the Member State countries in the Part I, Part II and Part III of the Council of ICAO. India has contested for continuance of its representation in the Part II. The total number of seats was 12, equaling the number of contestants. 163 countries cast their votes. India secured 148 votes out of 162 votes and was at number 2 position in the group in terms of number of votes secured.

· Amendments of Air Services Agreements (ASAs) with foreign countries

Keeping in view the recent developments in the civil aviation sector, and with a view to modernize and update the existing ASAs with foreign countries as per the ICAO templates, bilateral air services consultations were held in 2010 with foreign countries viz. Zimbabwe, Indonesia, Ireland, Brazil, UK and Iran and the respective ASAs have been amended and finalized. Bilateral Air Services Agreements were formally signed with Bhutan, Iceland, Nepal, Bosnia & Herzegovina, South Africa and Iran. Apart from these, new Air Services Agreements have been initialed with Senegal, Barbados and Rwanda.

· Technical co-operation agreements with Nepal and Afghanistan

Technical co-operation agreements were signed by the Director General of Civil Aviation (DGCA) and Airports Authority of India (AAI) with the Nepalese and Afghan civil aviation authorities in order to provide active technical support including training of personnel to these countries by India to promote and develop civil aviation sector.

· India – EU civil aviation co-operation programme

Under the Joint Action Plan, a Civil Aviation Co-operation Project - II has been agreed to. Its Terms of Reference (TOR) have been finalized. The project called “Institutional Capacity Building in the Civil Aviation sector in India (ICAA)” has been started under India – EU civil aviation co-operation.
· India – US Aviation Joint Working Group on Security

The India – US Aviation Joint Group Meeting on Security was held in New Delhi on 20 – 21 January, 2010. During this meeting two MoUs on deployment of Air Marshals and Co-operation in Airport Technical Visits were signed between the Government of India and the Government of United States of America. The two MoUs mark the beginning of an ongoing co-operation between the two countries in matters of security.

Equity Induction by the Government in Air India
Air India is expected to incur a loss of Rs. 5,656.52 crores during the year 2009-10, mainly due to the prevalent economic recession, low yields and load factors coupled with higher fuel costs, higher interest payment on working capital loans and aircraft loans.

The present paid up equity capital of NACIL is Rs. 145 crores which is not sufficient for an aviation company of its size. Therefore, the Government has approved the release of funds to the extent of Rs. 800 crores in tranches of Rs. 400 crores in a month in the form of equity. Accordingly, an amount of Rs. 800 crores has been released in February and March, 2010. A provision of Rs. 1200 crores has been made in the current financial year, the release of which is expected to happen this year. The equity induction would ease the cash flow situation of the company and preclude borrowing from the markets at high costs to this extent.

Meanwhile the company has seen an increase in load factor from 62% to 67% and also passenger yield from Rs. 2.92 to Rs. 3.30 RPKM.This has resulted in an increased Passenger and cargo revenue of Rs. 1,189 crores.

The company has undertaken several cost reduction measures with active support from the Government.

Security Measures

Keeping in view the security scenario and enhanced civil aviation activities, four regional offices of the Bureau of Civil Aviation Security (BCAS) has been created at Guwahati, Amritsar, Hyderabad and Ahmedabad airport in addition to the existing Regional offices at Delhi, Mumbai, Chennai and Kolkata.

The Anti-Hijacking (Amendment) Bill, 2010

With a view to enhance the punishment, for the offences of hijack of aircrafts and also for the conspirators, to death penalty, the amendment is proposed in the Anti-Hijacking Act, 1982. The final Bill has been introduced in the Rajya Sabha on 19 August, 2010. The Bill has now been referred to the Ministry of Law.

Mangalore Crash - IX 812 of Air India Express operating from Dubai to Mangalore was involved in an unfortunate accident on 22nd May 2010. There were 160 passengers and 6 crew members on Board. There were only 8 survivors. A Court of Enquiry headed by Air Marshal (Retd.) B.N. Gokhale was set up. The Court has submitted its report which is under examination.

Airports

· Phase-I of the Modernization of Delhi Airport was completed on 31 March 2010, at an estimated project cost of Rs. 12258 crores. A new integrated Terminal-3 has become operational which has 34 million passengers handling capacity per annum.

· The major development works completed Modernization of Mumbai Airport during 201010 are South-West pier, integrated processor terminal, Baggage Handling System (BHS) in the new domestic terminal, six Passenger Boarding Bridges (PBBs) in the new domestic terminal.

· Under the Policy for Greenfield Airports the Government, during the year had accorded “in-principle” approval for setting up of a Greenfield airport at Dabra (Madhya Pradesh), Palladi (Rajasthan), Itanagar (Arunachal Pradesh), Kushi Nager (Uttar Pradesh).

· Airports Authority of India (AAI) Airports Authority of India registered an all time high revenues of Rs. 4,615 Crores, which was 10% more than the previous year. Similarly, capital expenditure incurred on infrastructure works at various airports rose from Rs. 2547.52 crores to Rs. 2,742.54 crores.

o New Terminal Buildings have been commissioned at Varanasi, Barapani (Shillong), Madurai, Mysore and Ahmedabad airports.Existing terminal buildings have been upgraded/ modernized at Pune, airport. Runways/ Taxiways have been extended / expanded at Varanasi, Ranchi, Guwahati, Bhopal, Gondia, Ludhiana, Cuddappah and Coimbatore airports. Upto November 2010 progress of work for modernization and development at Chennai and Kolkata Airports has been 66% and 46%.Work on the construction of new Greenfield Airports at Pakyong in Sikkim is in progress.

o For the implementation of the GAGAN project of satellite based navigation, site acceptance test for Indian reference stations has been completed at Goa, Jaiselmer, Porbander and work is in progress at Dibrugarh, Nagpur and Bhubaneswar.

o A dedicated Air Cargo Complex facility at Veer Savarkar Airport, Port Blair has been operationalised.

o A new Joint Venture Company under the name “Chandigarh International Airport Limited” has been set up to undertake the construction of a new International Terminal Building at Chandigarh Airport.

· Setting up of International airport at Navi Mumbai.

After getting the environmental clearance in November this year, the development of the Greenfield airport at Navi Mumbai will get underway. It is projected to have sufficient capacity to handle the additional traffic around Mumbai, which is expected to go upto about 80 mppa by 2031-32

Pawan Hans Helicopters Ltd. (PHHL) In 2009-10 the Company achieved record revenue hours of 29,890 as compared to 27,050 in 2008-09. During 2009-10 the net profit after tax was Rs.35.59 crores as against Rs.25.12 crores in 2008-09.An MOU has been signed with Andaman & Nicobar Administration for introduction of Sea Plane Operation in Andaman & Nicobar Islands. The Sea Plane operation for the first time in India will commence from 27 December, 2010. PHHL has completed and operationalised two projects of heliport /helipad in October, 2010 – one at Akshardham and the other at Rohini, both in Delhi. DGCA has also allowed PHHL to utilize the facilities at Gliding Center at Hadapsar to set up a Heliport and helicopter training institute.

Indira Gandhi Rashtriya Uran Akademi (IGRUA): - The Akademi this year, has inducted 14 Single engine DA 40 Aircraft and one twin engine DA 42 aircraft and installed two Flight Simulators. The Akademi has 14 flying instructors and has flown 14934 hrs during 2010. So far this year, 62 cadets have completed their flying and 114 trainees have been inducted. Campus selection team from Air India and Jet Airways visited Akademi in Aug/Sept. and December, 2010 for induction of trainee pilots.

India Aviation 2010 - a Civil Aviation air show, was held for the second time at Begampet Airport, Hyderabad in March 2010. The next edition would be held from 14-18, March 2012.

An independent audit by FAA under IASA program confirmed India to be a role model in the Asia Region in the Civil Aviation. The Ministry of Civil Aviation was awarded on 1 December, 2010 the “KPMG – Infrastructure Today Award” for being the most admired Central Entity in the transport sector.
24/12/10 PRESS FRELEASE/Press Information Bureau

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CCI seeks airfare data to probe into cartelisation

New Delhi: Anti-trust watchdog Competition Commission of India (CCI) has sought data from the civil aviation ministry to probe whether airlines have formed cartel to increase fares.
“Taking note of civil aviation minister Praful Patel’s recent statements we have written to his ministry seeking information. After that we will decide whether an investigation could be done or not,” said a senior official from the CCI.
Bharat Bhushan, Director General of Civil Aviation (DGCA) said that some information was already furnished to the commission. “They (CCI) have given us two weeks to furnish the data about airfares. We have already given it to them for some routes. More data will be given to them soon,” said DGCA .
He also said that report of the working group constituted in the ministry to look into consumer interests will be shared with the commission. The working group will submit the report on December 30.
After airfares on certain domestic routes shot up by 200% in November, the civil aviation minister had said that the situation smelt of cartelisation and that the issue of sudden hike in fares could be referred to the CCI as well.
24/12/10 Anindya Upadhyay/Economic Times

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'Cat-scanned' pilots to combat fog

Delhi: Every year on most winter mornings the Delhi airport turns into a No Fly Zone. A civil aviation ministry official expressed hopes on Tuesday that things would be decidedly better in the near future. That's because airlines will have the services of as many as 500 more trained CAT II/III B compliant pilots this year.
Last year the number of trained pilots with the airlines was 1500. In January 2010, which was unusually foggy even by north Indian standards, more than 1,000 flights had to be cancelled and more than 200 were diverted.
Delhi airport is the one of the worst fog-affected airports in the country and in the world. "This year the number of trained CAT II/III B pilots is 2048. The flight schedules of aircraft which are not Low Visibility Procedure (LVP) compliant will be reviewed," said the official.
"AAI has been asked to prepare a comprehensive document on all Standard Operating Procedures (SOPs) on fog management at IGI Airport. DIAL will also finalise the Low Visibility Procedure in coordination with AAI and publish it. There will be a detailed SOP for transfer of international passengers in coordination with stakeholders," the official said. Sources told MiD DAY that AAI will prepare priority setting procedure in departure sequence during and immediately after LVP. AAI shall also keep diversionary airports ready for accepting the diverted aircraft from IGI Airport.
23/12/10 Surender Sharma/MiD DAY

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Ambani Copter Row: Court Slams Mumbai Police

Mumbai police’s elite crime branch has come under fire from a special court for its "biased" probe into the alleged sabotage of business tycoon Anil Ambani’s helicopter.
In a 40-page judgment, special Judge M V Kulkarni, was critical of the police investigation and said "the entire investigation was biased and one sided to suit the management of Airworks Indian Engineering Ltd."
"The management has created a false case by tampering with the helicopter belonging to Anil Ambani and thereby created media sensation without actually damage being caused to the aircraft, which is evident from the report of the Director General of Civil Aviation," the judgment, which was made available to lawyers today, said.
The court had on November 30 acquitted two persons, who were employed as helpers with Airworks, due to lack of evidence, giving them the benefit of doubt.
Uday Wanekar (32) and Palraj Thevar (38) were accused of planting pebbles and gravels in the combined gear box of the Ambani-owned helicopter on April 23 last year while it was parked in the hanger of Airworks for maintenance.
The prosecution argued the duo had tried to sabotage the helicopter to cause wrongful loss and damage to Airworks following a dispute with the management.
However, the court remarked "enmity is a double-edged weapon. While the helpers had a motive to commit the mischief, it was also possible for the management to stage manage such an incident and use it as tool to terminate the services of the helpers."
23/12/10 Outlook India

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More Cat III trained pilots to tackle fog at airport

New Delhi: When dense fog descends at the Indira Gandhi International (IGI) Airport in Delhi this winter, expect better flight operations. According to the civil aviation ministry, the total number of pilots with different airlines trained to use CAT II and CAT III Instrument Landing System (ILS) has gone up to 2,048 from around 1,500 last year.
The CAT III ILS guides pilots to land an aircraft in near zero visibility if they are trained to use the system and their aircraft are compliant.
At a meeting on fog management held on Wednesday under the chairmanship of secretary civil aviation, the fog preparedness of all agencies was assessed.
The Airports Authority of India (AAI), which handles air traffic at the Delhi airport, has been asked to prepare a priority setting procedure in departure of aircraft during fog and after improvement of visibility. AAI will also keep nearby airports ready to accept flights diverted from the Indira Gandhi International Airport. The two main runways at the airport will be used in mixed mode operation for distributing traffic from fog as well as noise point of view.
23/12/10 Hindustan Times

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Secretary Civil Aviation holds meeting on fog Management

A meeting on fog management at IGI Airport was held on today under the Chairmanship of Secretary Civil Aviation to review preparedness of various agencies at IGI Airport in the light of ensuing fog season. Preparedness of all agencies like the Delhi International Airport Limited (DIAL), Airport Authority of India (AAI) and Indian Metrological Department (IMD) were reviewed.
It was decide that DIAL will prepare a comprehensive document on all SOPs on Fog Management at IGI Airport. DIAL will also finalize the Low Visibility Procedure in coordination with AAI and publish it. There will be a detailed SOP for transfer of international passengers in co-ordination with the stakeholders.
AAI will prepare priority setting procedure in departure sequence during and immediately after LVP. AAI shall also keep diversionary airports ready for accepting the diverted aircraft from IGI Airport.
There will be a SOP for Fire Management during fog period. Adequate training will be imparted to personnel as part of preparedness for the fog period.

Besides these the following issues were also taken up:
• Preparation of priority setting procedure in departure sequence during and immediately after LVP has been prepared by AAI by allocating number of flights on the basis of airlines schedule. The procedure has been evolved by AAI in consultation with Airlines. Same will be reviewed by DGCA.
• Revised flight schedule for non-LVP compliant aircraft such as CRJ and ATR etc., for fog period submitted by Airlines will be reviewed by DGCA.
• Plan for mixed mode operation for distributing traffic from fog as well as noise point of view will be prepared to distribute traffic for all the runways.
• This year a total of 2048 CAT II/III compliant pilots are available with the Airlines. This number was around 1500 last year.
• DIAL was advised to explore possibility of making weather information/fog forecast available on Flight Information Display Systems within the passenger terminal/city side.
• Airlines website and helplines will be monitored for timely dissemination of flight information to passenger during the fog period.
22/12/10 PRESS RELEASE/Press Information Bureau

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Competition regulator suspects airline cartel, writes to Govt

New Delhi: India’s antitrust watchdog will investigate the recent spike in domestic airfares. The Competition Commission of India (CCI) has written to the Civil Aviation Ministry that prima facie it appeared that airlines may have acted as a cartel to jack up fares, top official sources told The Indian Express.
The competition regulator has asked the ministry for complete information on fares since June. This data has been maintained by the Directorate General of Civil Aviation’s (DGCA’s) Tariff Monitoring Unit (TMU) since 2009, and is shared with the ministry. But a top official has admitted that the data is hardly ever analysed.
The CCI has taken note of statements by Civil Aviation Minister Praful Patel on referring the fares issue to it. In its letter, it has asked if the ministry did indeed intend to do so. A ministry official said the regulator had not been called in yet, but the CCI can initiate a suo motu probe. Of late as fares have fallen, airlines have claimed they have followed the government’s advice. But an official said the cut in fares has been matched by a cut in the number of seats in the lower-fare categories. Spot fares had zoomed post-Diwali.
23/12/10 Smita Aggarwal/Indian Express

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Airlines set to take off after turbulence

The year 2010 was both a year that saw a silver lining as well as dark clouds in the aviation industry. Except Air India, which continues to face tough times, other airlines began a steady march towards recovery after the slowdown years of 2008 and 2009.
What should be a huge relief to the Indian aviation authorities is the fact that the US did not downgrade the Indian safety regulator, Directorate General of Civil Aviation, to sub-Saharan Africa levels. The final nod for the second airport in Mumbai after a delay of three years and the opening of new T3 terminal in New Delhi were a big plus for travellers.
But just as good news was flowing in thick and fast after two years of gloom, the worst fears of aviation came true with India witnessing one of its worst ever air crashes on May 22. Air India Express's flight 812 crashed at Mangalore airport, killing 158 of the 166 people on board.
The crash, coming amid fears which began in the troubled 2008-09 that some crises-ridden airlines may not have even enough funds to keep their fleet airworthy, led to intense financial surveillance of the carriers. The scrutiny once again revealed that except Air India, most other significant airlines' fortunes were showing changes—thanks to a double-digit growth in domestic air travel.
This is borne by the fact that 2009 saw 445.1 lakh people flying within India. But the January-November 2010 period itself saw that figure being left behind with 468 lakh people flying in India. Considering about 50 lakh people fly in December, 2010 may witness a 16% rise over 2009.
22/12/10 Saurabh Sinha/Times of India

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New air navigation norms to save jet fuel

India's civilian airspace regulator is set to introduce new navigation norms aimed at conserving crores of rupees in jet fuel by accommodating more planes in narrower air corridors, said three officials familiar with the matter.
The new regulations are planned to be implemented in phases beginning March. In a recent presentation by the Airports Authority of India (AAI), the regulator outlined a plan to reduce airspace between two aircraft to 80km (50 nautical miles, or nm) from 140km (80nm), an AAI official said requesting anonymity.
The new rule, when implemented, will allow more aircraft to fly within a so-called optimal range-high altitudes at which planes burn less fuel. Narrower air routes would also mean planes having to circle shorter distances in the air while waiting for landing clearances from airports, saving huge sums in jet fuel. "Circling over an airport for an hour costs more than '1 lakh per aircraft. Heavier the aircraft, more is the jet fuel consumption and, thus, wastage," said an Air India official, asking not to be identified. Savings in terms of jet fuel would come as a big relief for airlines as prices have been rising steadily.
21/12/10 Live Mint/India Infoline

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Aviation min’s new ground-handling policy faces security bureau hurdle

The Bureau of Civil Aviation Security (BCAS), the agency responsible for aviation security in the country, has thrown a spanner in the civil aviation ministry's plan to implement the new ground-handling policy from January 1, 2011. Any delay in rolling out the new policy which bars private carriers such as Jet Airways, Kingfisher Airlines and IndiGo from undertaking ground-handling would help the airlines save on cost.
The new policy allows only three agencies in one metro airport — the national carrier Air India, the airport operator (such as Airports Authority of India, GMR and GVK), and one private firm selected through bidding to provide ground handling services. The service involves job of baggage movement, cargo scanning, taxing, refueling and cleaning of the aircraft among others.
The move would simultaneously hurt the commercial interest of private airport operators such as GMR-led Delhi International Airports Ltd (DIAL) and GVK-led Mumbai international airport Ltd (MIAL).
The proposed rules under the new policy had been cleared by the Cabinet committee on security (CCS) after being deferred thrice in the past. The BCAS now, however claims that they were not consulted before taking up the approval of the executive at the highest level.
The aviation security agency has also written to the civil aviation ministry desiring the continuance of the existing policy. It has argued that BCAS allows only the airline companies to undertake certain activities related to security.
22/12/10 Nirbhay Kumar/Financial Express

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Rising crude oil price may impact airline margins

New Delhi: Margins (profit as a proportion of sales) of airlines may be hit in the coming quarters, following a surge in prices of crude oil and Aviation Turbine Fuel (ATF).
ATF prices increased by around 15 per cent in December compared to June. Average jet fuel prices in the current quarter have also risen by over 10 per cent compared to the second quarter. Rising jet fuel prices over the period have increased the operational costs of airlines.
“With fuel prices rising, spends on jet fuel have risen to around 50 per cent of the total operational cost of domestic carriers as compared to 35 per cent of the total operating cost in June. This increase is alarming and if it continues, the airlines will be badly impacted in the next two quarters despite huge demand,” said Mahantesh Sabarad, senior VP of equity research at Fortune Equity Brokers.
Domestic low-cost carriers earn Rs 4 per kilometre per passenger and their expenditure is Rs 2 per kilometre per passenger.
Expenditure on jet fuel constitutes 30 per cent of the total cost of the domestic carriers. In contrast, expenses on jet fuel constitute only 20 per cent of total cost for international carriers.
However, some industry insiders feel airlines in India will be able to absorb the impact of rising fuel costs till crude prices touch $95 a barrel.
22/12/10 Mihir Mishra/Business Standard

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Stuck in transit:Flight delays up by 50%

Mumbai: November may have ushered in a cheerful travel season with passenger growth increasing by 15-20%, but is has also been a month of unprecedented delays and passenger inconvenience. Flight delays were the bane of travel plans and it wasn't just at Mumbai airport, but across India. According to the figures provided by the ministry of civil aviation, last month more than 70,000 passengers in India were affected by flight delays that were longer than two hours. There has been an approximately 50% increase in the number of passengers who were inconvenienced in November when compared to previous months where the figures averaged at around 45,000 to 47,000.
In August, 46,000 passengers were affected by delays, and in September it was 45,965.
Besides delays, other inconveniences-such as flight cancellations and passengers denied boarding due to overbooking-have also gone up. Last month, 545 people were denied boarding and another 7,464 passengers were affected due to flight cancellations. The figures, say industry experts are high despite the fact that Air India (AI) did not submit its passenger data. Of the 70,698 passengers who had to suffer more than two-hour long flight delays, 29,863 were booked on Spice Jet flights. The number of Jet Airways and Kingfisher passengers affected by delays was 20,023 and 13,270 respectively.
Affected passengers were compensated by airlines. When the delay was more than two hours long, passengers were either provided refreshments or were offered a full refund of the ticket amount. Those affected by cancellations were either given hotel accommodation or offered a refund.
22/12/10 Chinmayi Shalya/Times of India

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Record Rs 48.7 lakh flyers in Nov sent fares soaring

New Delhi: November recorded the highest number of air travellers flying within the country in a month. The already growing traffic picked up sharply after Diwali, and airlines went for the kill.
The festive season travel this year beat the previous high of 47.8 lakh — recorded in the summer holiday month of May 2010 (despite the Mangalore crash that month). With people taking to the skies like never before, flights filled up like Jan Shatabdis — albeit at prices many times over even first-class Rajdhani fares. On average, planes flew with 78% to 91% of all seats sold out; fares were 20-25% higher than in November last year.
Considering the numbers a sign of consumers beating back the recent slowdown blues, the government is upbeat. "India will record even higher growth numbers in coming times. Aviation has grown by 400% in the last six-and-a-half years and will grow four times in the next decade. Airlines offering reasonable fares will witness the maximum growth," said aviation minister Praful Patel.
21/12/10 Times of India

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Aviation sector recorded 25% growth in November

New Delhi: The aviation sector continues to fly high with air traffic in November growing by close to 25% compared to the same month last year. This is the eleventh straight month to witness an uptrend in domestic air traffic.
Between January and November this year, domestic airlines have flown 46.8 million passengers, up 19% compared to the same period in 2009, monthly data released by aviation regulator Directorate General of Civil Aviation (DGCA) shows.
NareshGoyal-ownedJetAirways group maintained its position as the leading carrier with a 26.2% market share, while Vijay Mallya-owned Kingfisher Airlines came second with 19.1% share. Low-cost airline IndiGo pipped national carrier Air India from the third spot, by retaining 17.3% of the market share.
November being a traditionally high-demand month recorded good seat factor too. Seat factor or load factor (PLF) refers to capacity utilisation of an airline.
21/12/10 Economic Times

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IndiGo is third largest passenger carrier

New Delhi: India’s largest low-cost carrier, IndiGo, has replaced the state carrier, Air India (domestic), to become the country’s third largest carrier in terms of passengers carried.
The overall passenger number for November grew by 25 per cent this year, compared with the corresponding month last year. The passenger figures for the month, released today by the Directorate General of Civil Aviation (DGCA), show Jet Airways leading with 26.2 per cent followed by Kingfisher at 19.1 per cent. IndiGo is third with 17.3 per cent of the total passengers, followed closely by Air India (domestic) at 17.1 per cent. SpiceJet and GoAir were on the fifth and sixth position, respectively, with 13.3 per cent and 6.9 per cent.
Analysts say IndiGo will continue to grow and the gap will widen.
IndiGo’s aircraft utilisation is 12 hours a day, whereas Air India’s is nine hours a day, which they are trying to increase.
21/12/10 Business Standard

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Flying fares didn’t disrupt air traffic growth in November

Bangalore: The number of flyers in the domestic market jumped around 6% in November to 48.75 lakh from 46.17 lakh in October.
Year on year, that’s a growth of 26.68% from 38.48 lakh.
Almost all the local airlines registered high seat factors despite the fact that air ticket prices of some low-cost airlines were hovering over Rs25,000 per passenger on long-haul flights in November due to the festive season.
As per the ministry data, the seat factors of airlines ranged between 70% and 90% with IndiGo recording the highest at 91%.
Though, this was not the budget airline’s highest seat factor this year. In May, Rahul Bhatia-promoted no-frill airline had logged a seat factor of 93.2%.
Last month, IndiGo also overtook Air India in terms of market share as it expanded its aviation pie to 17.3% from 16.8%, moving to the third position. Air India slipped to fourth position as its share in the local market dropped to 17.1% from 17.7%.
An industry expert said the budget airline has been able to fly past the state-owned Air India because of its aggressive capacity addition.
Naresh Goyal’s airlines — Jet Airways and JetLite - maintained lead in the domestic market with a share of 26.2%, which was unchanged from October.
Kingfisher Airlines increased its market share by one percentage point to 19.1% while SpiceJet lost three percentage points and GoAir gained three percentage points.
But despite the growth in passenger numbers, the industry is not expecting yields - net revenue per seat — to firm up.
For the whole year, the industry is estimating yields be up by 5-7%. The overall cancellation rate last month was slightly up at 1.5%. A majority of the cancellations were due to technical faults and bad weather. The on-time performance (OTP) of airlines was 76.4%.
21/12/10 Suparna Goswami Bhattacharya & Supriya Ghorpade/Daily News & Analysis

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Rs 50 lakh compensation for air passengers

New Delhi: The government today said in November carriers paid Rs 49.66 lakh compensation to nearly 8,000 travellers, who faced inconvenience because of flight cancellations or were denied boarding by airlines.
While the airlines paid cash compensation of Rs 33.46 lakh to nearly 7,500 passengers who suffered because of last-minute flight cancellations, 545 travellers were paid Rs 16.20 lakh as they were denied boarding during the month, according to government data released today.
During the same period, more than 70,698 passengers were forced to wait at airports for delays in flight departures, the data said.
Among the airlines, maximum cases of denied boarding and last-minute flight cancellations were reported by Jet Airways-JetLite combine, when 425 flyers were denied boarding and 2,862 passengers had to suffer because of last-minute flight cancellations.
The airline paid Rs 12.12 lakh as compensation to the passengers, the data showed.
20/12/10 PTI/The Telegraph

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High fares go north, tourists go abroad

Bangalore: Soaring air fares are a huge dampener for travellers this winter. Domestic air fares have skyrocketed by 15%-20% in the past few months due to higher holiday season demand and limited supply.
Many travellers are preferring exotic overseas destinations over domestic getaways considering that the price differential is not much. "Many people are opting for international holidays destinations like Dubai, Thailand and Malaysia. Also, hotel tariffs in places like Goa, Kerala and Rajasthan can be much higher," said the head of relationship and supplier management at Cox & Kings Karan Anand.
Besides, new international airlines are wooing flyers with rock-bottom fares. For instance, Air Asia is offering a round-trip to Bangkok for Rs 7,000, that's almost the same price for a Bangalore-Goa ticket. Sometimes, deals to South-East Asian countries are better than a Bangalore-Kochi or Delhi-Goa ticket.
"It's definitely tempting for individuals to travel abroad than pick a local hotspot. Some airlines flying international routes have discounted their fares by as much as 35%," said executive director of Bird Group Ankur Bhatia.
Air travellers also miss out on great offers as they make last-minute bookings.
21/12/10 Shilpa Phadnis/Times of India

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Despite high fares, holiday season sold out

Mumbai: The aviation industry is singing carols all the way the bank this Christmas season. Despite high fares, business is booming and bookings this holiday season have gone up by 20% compared to the same period last year.
Carriers flying to both domestic and international destinations are fully booked, say tour operators. They say bookings for Christmas and New Year as 2010 draws to a close surpass those of 2009 and 2008. According to the civil aviation ministry, there was a 10% growth in passenger traffic this year. Currently , most flights are either completely booked or have very few seats left. `` In fact, we are still getting calls for last-minute bookings,'' said Rajesh Rateria, managing director of Cirrus Travels.
It was a very different story in 2009, as the aviation sector was just recovering from a lean year. `` After the slowdown began in 2008, we were wondering if the industry would show signs of recovery in the coming years. But things started looking up in 2009 and tourist traffic is even better in 2010,'' said a Mumbai travel agent. `` I am hoping that bookings will be almost 30% higher by the end of this season,'' he added.
Even the big freeze in the UK does not seem to be deterring travellers who want to bring in the New Year in style. Travel agencies said they are still receiving requests for the Bombay-London sector despite the fact that flight schedules are chaotic because of snowstorms in Britain.
21/12/10 Chinmayi Shalya/Times of India

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UAC considers producing An-148 airliner in India

New Delhi: Russia's United Aircraft Corporation is in talks with Indian firms on production of the Antonov An-148 regional airliner in India in its passenger and cargo versions, UAC President Alexei Fyodorov said on Monday.
"The majority of Russian-Indian cooperation projects concern military aviation, however, it is time to cooperate in the field of civil aviation," Fyodorov told a Russian-Indian trade and investments forum.
India has been cooperating with Russia, and previously the Soviet Union in military aviation for decades. India currently produces the Su-30MKI Flanker-H multi-purpose fighters under a Russian licence.
In September, Rosoboronexport, Russia's state-owned arms seller, and state-run Hindustan Aeronautics Ltd signed an agreement to set up a joint venture to produce a Multirole Transport Aircraft (MTA).
20/12/10 Rianovosti

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Flying through turbulent times

New Delhi: Aviation sector to improve over the next 12 months despite its share of problems.
The civil aviation sector has been in the news for the wrong reasons in the recent past. Most private carriers made sharp fare hikes in the Diwali season and a similar pattern was anticipated over the Christmas- New Year period. If the current trend in rising crude prices is maintained, fares will rise for sure in 2011.
In fact, the flying-experience is very likely to get more expensive in 2011. Apart from rising fuel costs, User Development Fees (UDF) have been hiked at quite a few airports, including smaller centres like Ahmedabad, Mangalore, Amritsar, Udaipur, Jaipur, Trichy and Vishakhapatnam, after the new AERA (Airports Economic Regulatory Authority) took charge.
There was plenty of other action as well. Kalanithi Maran took control of the profitable Spicejet. In the meantime, Kingfisher lurched from crisis to crisis as its dues to oil suppliers mounted. The red ink also continued to accumulate on Air India’s balance sheet .
On the ground, expansion and modernisation of the airport network continued. Various non-metro airports are being modernised. After a lot of back-and-forth, the environmental ministry has finally cleared the Navi Mumbai airport with a revised project plan that should minimise environmental damage to the local mangroves.
19/12/10 Devangshu Datta/Business Standard

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Civil aviation industry grew by 400% in six yrs: Patel

Kannur: Civil aviation minister Praful Patel on Friday said the airline industry in India has grown by 400% in a short span of about six-and-a-half years. "Civil aviation in India since 2004 and now has grown by 400% in the span of about six-and-a-half years," he said while presiding over a foundation stone laying ceremony for the Kannur International Airport at Mattannur.
He said in 10 years Indian market will be the third largest aviation market after the US and China.
Earlier this week, world aviation industry body International Air Transport Association had said that powered by emerging economies like China and India, carriers in the Asia-Pacific region will post highest profit ever of $7.7 billion in 2010, overtaking airlines in North America and Europe.
17/12/10 Hindustan Times

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7 hikes for petrol, discounts for Jet fuel

Mumbai: While petrol prices have gone up yet again to Rs 60/L, Jet fuel prices (Rs 47/L) have regularly been trimmed.
That petrol prices were hiked a record seven times this year speaks volumes about our ministers' clear priorities.
When it comes to choosing between the jet set and the common man, it is the latter who always takes a beating.
Any news of increase in jet fuel (auto turbine fuel or ATF) prices is protested vehemently by airline companies, and subsequently reduced by oil companies at regular intervals.
Minister of Civil Aviation, Praful Patel, has taken up airlines' concerns with the prime minister every now and then. But as far as prices of petrol and diesel go, well, it is not really anybody's worry but the man on the street.
Hikes in these fuels are hardly adequately represented by anyone in the union cabinet, or the state government for that matter, experts feel.
"The oil companies, which have the authority to decide the fuel price, always address the concern of airline companies.
But they forget the same when they hike the prices of petrol and diesel which is used by the common man," said Captain Akram Baig, an aviation expert.
17/12/10 Bipin kumar Singh/MiD DAY

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India takes delivery of first C-130J airlifter

Washington: At a ceremony in Marietta, Georgia, Lockheed Martin delivered the first of six C-130J Super Hercules airlifters for the Indian Air Force (IAF). The new fleet was ordered under a $1.2 billion US foreign military sale.
This is India's first experience with the C-130 so the package being provided by the US government is comprehensive, a Lockheed Martin statement said.
The contract includes six aircraft, training of aircrew and maintenance technicians, spares, ground support and test equipment, servicing carts, forklifts, loading vehicles, cargo pallets and a team of technical specialists who will be based in India during a three-year initial support period.
The first two C-130Js will be flown to India early next year and will be followed by the remaining four aircraft deliveries in 2011. The fleet will be based at Hindon Air Force Station on the outskirts of New Delhi.
Equipped with an Infrared Detection Set (IDS), the aircraft can perform precision low-level flying, airdrops and landing in blackout conditions. Self-protection systems and other features are included to ensure aircraft survivability in hostile air defence environments.
The aircraft also is equipped with air-to-air receiver refueling capability for extended range operations.
17/12/10 IANS/Economic Times

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Dornier aircraft Operators' meet held

Kanpur: With the aim to reorient its activities in tune with the customers' expectations and defence needs of the country according to the inputs and feedback, the Hindustan Aeronautics Limited Aircraft Division, Kanpur, organised a one-day Dornier aircraft Operators' meet on Wednesday.
General Manager HAL (Transport Aircraft Division), Kanpur, D Balasubramanian welcomed the chief guest and all participants. The chief guest for the function Air Marshal J Neri AVSM VSM, AOM of Indian Air Force inaugurated the meet and delivered the keynote address. The meet was attended by officials from various defence and civil operators of Dornier aircraft and representatives from M/S Ruag Germany -the original equipment manufacturer of Dornier aircraft.
16/12/10 Times of India

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Jet fuel prices hiked by 3.6%

New Delhi: State-owned oil firms today hiked jet fuel prices by a huge 3.6% to Rs 46,876.58 per kl, making it the fifth straight increase in rates since October when international crude oil prices started climbing.
Aviation Turbine Fuel (ATF) rates in Delhi have been hiked by Rs 1,636.58 per kilolitre, or 3.6%, with effect from midight tonight, an official of Indian Oil Corp (IOC), the nation's largest fuel retailer, said.
The ATF price in Delhi on October 1 was Rs 40,728.52 per kl. The rates were increased by 15% in five tranches since then, in tandem with a surge in global oil prices to $90 per barrel mark.
Jet fuel, will cost Rs 47084.40 per kl in Mumbai, home to the nation's busiest airport, from tomorrow, as against Rs 45,379.62 per kl currently.
In Kolkata, the ATF price has been hiked by Rs 1,731.84 to Rs 54183.98 per kl, while in Chennai, it will cost Rs 50269.99 per kl as against Rs 48,496.70 per kl currently.
15/12/10 PTI/Times of India

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Ambanis don’t want chopper ops from Juhu

Mumbai: The Ambani brothers have separately written to the civil aviation ministry, asking it to review its decision to shift helicopter operations from Mumbai airport to the Juhu aerodrome, said sources in the civil aviation ministry. Sources told HT that both Mukesh and Anil are unhappy with the infrastructure (parking bays and maintenance facilities) at Juhu. Since December 10, helicopters have not been allowed to take off and land at Chhatrapati Shivaji International Airport, a move aimed at de-congesting India’s second busiest airport.
The rule, however, does not apply to choppers used by VIPs such as chief ministers and Union ministers.
The Mukesh Ambani-led Reliance Industries owns two choppers, a Dauphin and Sirkorsky, while Anil Ambani's Anil Dhirubhai Ambani Group uses a Bell 412 helicopter.
16/12/10 Soubhik Mitra/Hindustan Times

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Small aircraft add to fliers' woes

New Delhi: Planning to take a short flight from Delhi to Chandigarh, Amritsar or Shimla? You would be better off taking a train, bus or car. Though dense fog is yet to descend upon Delhi's Indira Gandhi International Airport, the dip in visibility in the early hours and foggy conditions at other airports in
northern India are affecting flights to nearby cities.
Airlines mostly use smaller aircraft like ATRs and CRJs, which can accommodate 40 to 50 passengers, to operate flights between short distances like Delhi to Amritsar, Ludhiana, Chandigarh, Shimla or Dehradun. Unlike bigger aircraft like an Airbus 320, these aircraft can't land in poor visibility.
Aircraft land in bad visibility using Instrument Landing Systems (ILS), which guides pilots to locate the runway in poor visibility. The ATRs and CRJs, however, don't have the equipment to use ILS.
On Wednesday, for instance, three morning flights from Chandigarh and Amritsar were delayed by two to four hours. During the same time, flights from Hyderabad and Bangalore arrived only 15 minutes late. Morning departures too were affected due to bad weather.
"Though visibility at IGI airport is not too poor yet, foggy conditions at airports like Chandigarh and Amritsar are pretty bad," said a senior official of a full-cost carrier. He , however, didn't wish to be identified.
"We use smaller aircraft for short distances as these are economical but they can't operate even in moderate fog."
AS Narang, a west Delhi resident, learnt this the hard way on Tuesday after his short trip from Delhi to Amritsar turned into an eight-hour journey.
16/12/10 Sidhartha Roy/Hindustan Times

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Rise in pvt aircraft operating out of Mumbai in 3 years

If the number of small aircraft parked at the Chhatrapati Shivaji International Airport (CSIA) at Santacruz are an indicator, private fliers out of Mumbai have more than doubled over the past three years.
Non-scheduled charterers operating out of Mumbai said the number of private aircraft stationed at the airport at any point of time had grown from 30-40 in 2007 to 80-100 now. One of the operators said at least half of these private aircraft were Beechcraft turbo prop enginers like B-200 and C-90 while the rest were jet engine aircraft like Falcon, Gulf Stream, P-68, Cessna Citation and Boeing Business Jet.
Invision Air, a non-scheduled operator, will have three aircraft operating out of the Mumbai region from January 2011, besides plans for 20 aircraft over the next five years for bases across the country. “Growth will be coming from the rural areas in India, which actually have very poor airline connectivity; so charters become the obvious choice for industrialists, investors, consultants, lawyers, bankers, and top management to reach these sectors,” said Invision Air managing director Vinit Phatak.
15/12/10 Ranjani Raghavan/Indian Express

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Govt should not intervene in fixing air fares, says IATA chief economist

Geneva: The Indian Government should not have intervened to restrict domestic airlines from charging high fares, according to the International Air Transport Association (IATA), the global body representing the airline industry.
According to the Association's Chief Economist, Mr Brian Pearce, market forces should determine air fares.
“I don't think the Government should have stepped in, market forces should determine air fares. In recent years, competition had driven down fares to a point where airlines were making no money. Such a situation cannot go on forever,” Mr Pearce told Business Line.
The Government has been mounting pressure on airlines to reduce fares, which had skyrocketed after Diwali, especially for last-minute or spot tickets.
The Civil Aviation Minister, Mr Praful Patel, and the aviation regulator, the Director General of Civil Aviation (DGCA) had warned that action would be taken if the airlines did not roll back the abrupt hike in air fares.
As a result, airlines were forced to roll-back their fares.
Mr Pearce added that if the Government keeps intervening too much, then it could lead to a situation like the one Europe finds itself in.
“In Europe, increasing taxation by the Government has pushed travel costs up by 3-4 per cent. This has resulted in fewer people flying. With Government intervention this is the risk. The aviation industry should be left to market forces and competition,” said Mr Pearce.
14/12/10 Debabrata Das/Business Line

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Carriers testing procedure for smoother air traffic management

New Delhi: A new navigation procedure that would straighten up the flight path of an aircraft and make air traffic management smoother is being tested at Cochin airport by prominent Indian carriers, along with its developer Airbus.
The 'Required Navigation Performance' (RNP) was first tested last week when an Airbus A-320 of no-frill carrier IndiGo used it to approach and land at the airport in Kerala. The entire process was successfully validated earlier on Airbus simulators.
Jet Airways would soon demonstrate this procedure at the same airport using a Boeing 737-800, an Airbus spokesperson said here, adding it was validated using Airbus flight simulators.
The procedure, developed by Airbus subsidiary Quovadis , would benefit both Cochin International Airport authorities and airlines by reducing the flight path by almost 40 nautical miles, thereby saving fuel, and make air traffic management easier, especially in areas with reduced or no radar coverage, the spokesperson said.
It uses on-board systems and the satellite-based Global Positioning System, giving a go by to the conventional ground-based navigation installations.
13/12/10 PTI/Economic Times

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Govt forms group to study exorbitant airfares

New Delhi: The government today formed a study group comprising representatives of airlines, passenger associations and the regulator to define exorbitant and predatory pricing.
“The working group will have to find what is termed as exorbitant or predatory fares and also how many of the total passengers travelling on a given day actually had to pay these high rates for air travel,” said a source present at the first meeting of the Civil Aviation Economic Advisory Council (CAEAC), constituted earlier this month.
The group was constituted even as Civil Aviation Minister Praful Patel said though airlines had taken some measures to bring down spot fares, a lot more effort was needed to bring transparency in air fares.
“The ministry and DGCA (Directorate General of Civil Aviation) are still unhappy over how airlines put up fare charts on their websites after DGCA sought simplification of fares earlier this month. As I have earlier said, if time-bound action is not taken by airlines, then DGCA has full powers to act under rule 135 of Aircraft Rules 1937,” Patel said after the meeting.
The minister also cautioned the airlines not to go overboard on the fare increase, as the ministry and DGCA had a lot of power and they could step in even though the ministry did not want to regulate fares.
An aviation expert present said determination of what exactly constitutes excessive fare and how many passengers of the total air traffic had to pay this was a very complex exercise and it would be wrong to say that airlines had indulged in profiteering, since Indian carriers made $5 billion losses in the last 5-7 years.
14/12/10 Business Standard

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Airbus lifts demand forecasts amid Asian growth

Airbus raised its forecast for aircraft demand over the next 20 years, citing the travel needs of 6 billion people in emerging economies as airlines stage a stronger-than-predicted rebound from recession.
By 2029, a third of all passenger traffic will be in Asia, compared with 27 percent now, while skies over North America will see their share of the global air travel market shrink to 20 percent from 28 percent.
"Demand for travel is doubling every 15 years ... but in places like India and China we expect to double in the next six years," Airbus sales chief John Leahy told a news conference on Monday.
The world's largest planemaker, ahead of rival Boeing, forecast deliveries of 25,850 new passenger and freight aircraft worth $3.2 trillion from 2010-29, an increase of 899 planes from its previous annual forecast.
The EADS subsidiary forecast average annual growth in passenger traffic of 4.8 percent over the period, up from 4.7 percent previously.
Latest forecasts from Boeing, which measures demand for aircraft of 90 seats and upwards compared with the Airbus cut-off point of 100 seats, were for 30,900 aircraft worth $3.6 trillion over the next 20 years.
Both planemakers face growing competition from Canada, China and, potentially, Brazil and Russia for sales of their smallest but most popular aircraft, the Airbus A320 and Boeing 737.
13/12/10 Reuters/Economic Times

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Flyer groups to discuss fare hikes with airline CEOs

Mumbai: For the first time ever, airline CEOs and consumer rights' groups will come face to face on a common platform to discuss airfare hike on Monday. Till now, all the meetings held to discuss the ever-increasing air tariff only involved the government and the airline industry representatives.
The first meeting of the ministry of civil aviation's newly-formed Economic Advisory Council (EAC), to be held in Delhi on Monday, will bring together parties on both sides of the fare hike equation. The EAC's members include CEOs of all scheduled airlines and representatives of consumer forums.
Sudhakara Reddy, president of Air Passengers' Association of India (APAI) and member of EAC, is expected to take up the issue of fare hike with the airline industry bigwigs.
Since EAC is only an advisory body, it is scheduled to meet once in a quarter. So the day-to-day job of monitoring airfares and taking up relevant issues with airline representatives would continue to be done by the Directorate General of Civil Aviation's (DGCA) Tariff Analysis Unit, which was set up recently in response to fare hikes. The unit will continue to bring to the notice of the DGCA any abrupt increase in airfares so that timely directive is issued to the concerned airline.
12/12/10 Manju V/Times of India

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Airlines simplify fare charts

New Delhi: Most private airlines fell in line on Friday after Directorate General of Civil Aviation (DGCA) asked them on Thursday to clear the confusion created by uploading of cryptic fare charts on their websites. Now, the charts are fairly simple and the fares lower than earlier.
Not only did the airlines do away with abbreviations of airport names, but they also mentioned if a particular flight had a stopover and in which city.
Jet Airways’ full service fares on the Delhi-Mumbai route stood at Rs3,350 if booked 14 days in advance, while the highest spot fare on Friday was Rs19,100.
IndiGo was offering tickets for Rs3,095 on the route for a similar advance-booking. Its steepest spot fare was about Rs15,000. Kingfisher Red economy fare for a 14-day advance purchase was Rs3,000 on the Mumbai-Bhubaneswar route and Rs3,450 in the Delhi-Bangalore sector.
11/12/10 Sindhu Bhattacharya/Daily News & Analysis

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Govt tells airlines to put up all-inclusive fares

New Delhi: The government on Thursday issued a three-point directive to airlines, which had a day earlier put their route-wise fare ranges in an extremely confusing manner. The fare charts made public can be deciphered only by travel industry honchos and not the common traveller. Airlines have now been asked to issue all-inclusive and reasonable fares in a consumer-friendly manner, something that only Air India (domestic) has done.
The Directorate General of Civil Aviation (DGCA) has also found that fares on certain sectors of some airlines are higher beyond reasonable limit when compared to the prices offered by other carriers on those routes. The other yardstick being used to decide reasonableness will be the fares prevalent same period last year. "A 10-35% hike is understandable due to increased demand but fares can't double or triple in a year. We do not desire to interfere in setting fares but we can't allow exploiting of passengers through exorbitant fares," said an official.
Also, the government wants the plethora of information on fare range charts to be limited to only things useful for passengers. This could mean removing distance between origin and destination while indicating if a particular flight involves change of aircraft through a transit point.
Airlines have to inform the men behind the drive to rein in galloping spot fares — aviation secretary Nasim Zaidi and DGCA chief Bharat Bhushan — by Friday evening on how fast these changes would come about. All inclusive or consolidated fare means the sum of basic fare, fuel and congestion surcharge along with all other fee, airport charges and service tax.
10/12/10 Saurabh Sinha/Times of India

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Ministry will keep strict vigil on airline fares: Praful Patel

New Delhi: The Civil Aviation Minister, Mr Praful Patel, said on Friday that some airline fares are exorbitant and a “matter of concern” and going forward, the Ministry would now keep a strict check on the issue. He was chairing a Parliamentary Consultative Committee meeting.
To discuss issues such as pricing, the recently formed Civil Aviation Economic Advisory Council (CAEAC), would have its first meeting in Delhi on December 13. The Council includes CEOs of all private airlines, the airline watchdog DGCA and the CEOs/CMDs of Airports Authority of India (AAI), Delhi International Airport and Mumbai International Airport. Scheduled to meet every quarter, the CAEAC will be chaired by the Secretary, Civil Aviation.
The council was set up in the backdrop of last minute airline fares sky-rocketing and is mandated to suggest regulation to protect consumer interest, like public disclosure of tariffs and conditions of service.
11/12/10 Business Line

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'Aviation requires stricter Watchdog'

Mumbai: Even as the Directorate General of Civil Aviation (DGCA) and Civil Aviation Ministry's strict action on exorbitant airfares has led to a reduction in prices, aviation experts are calling for a long-term solution to the problem.
They recommend the setting up of a stronger regulatory body, on the lines of the Telecom Regulatory Authority of India (TRAI), for the aviation sector to tackle this and other problems plaguing the industry.
"TRAI has done exemplary work for the telecom sector and has managed to tread the fine line between keeping both consumer and companies' interest in mind.
The aviation sector requires a strong aviation regulatory body on those lines. The existing bodies are just not powerful enough to deal with the private airlines," said Sudhakar Reddy, president, Air Passengers Association of India.
Captain M Ranganathan, former Air India captain and a top aviation expert, believes the DGCA does have the power to tackle these problems but often lacks the will to do so. He has also taken strong exception to private airlines' repeated calls for the government to step back and to allow market forces to determine airfares.
11/12/10 Bipin Kumar Singh/MiD DAY

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Govt tells airlines to put up all-inclusive fares

New Delhi: The government on Thursday issued a three-point directive to airlines, which had a day earlier put their route-wise fare ranges in an extremely confusing manner. The fare charts made public can be deciphered only by travel industry honchos and not the common traveller. Airlines have now been asked to issue all-inclusive and reasonable fares in a consumer-friendly manner, something that only Air India (domestic) has done.
The Directorate General of Civil Aviation (DGCA) has also found that fares on certain sectors of some airlines are higher beyond reasonable limit when compared to the prices offered by other carriers on those routes. The other yardstick being used to decide reasonableness will be the fares prevalent same period last year. "A 10-35% hike is understandable due to increased demand but fares can't double or triple in a year. We do not desire to interfere in setting fares but we can't allow exploiting of passengers through exorbitant fares," said an official.
Also, the government wants the plethora of information on fare range charts to be limited to only things useful for passengers. This could mean removing distance between origin and destination while indicating if a particular flight involves change of aircraft through a transit point.
Airlines have to inform the men behind the drive to rein in galloping spot fares — aviation secretary Nasim Zaidi and DGCA chief Bharat Bhushan — by Friday evening on how fast these changes would come about. All inclusive or consolidated fare means the sum of basic fare, fuel and congestion surcharge along with all other fee, airport charges and service tax.
10/12/10 Saurabh Sinha/Times of India

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DGCA asks airlines to explain high fares

New Delhi: The Directorate General of Civil Aviation (DGCA), attached to the Ministry of Civil Aviation, has sought an explanation from the airlines which have shown the highest fares in a particular sector on the recently uploaded data on rates.
“We will not regulate fares but there are cases of airlines charging very high fares in a particular route and such airlines will be asked to explain the reasons for that. They cannot charge such high fares without any valid reason,” said a civil aviation ministry official, who did not want to be identified.
DGCA has also asked the airlines to make their uploaded rate plan more consumer-friendly by changing the format and also showing the full fares, including different fees and fuel surcharge.
The airlines uploaded the figures on their respective websites on Tuesday evening, a day before the Wednesday deadline set by the ministry.
After complaints from consumers that many private airlines were taking the advantage of high demand and capacity constraints in raising fares by over 300 per cent in November on routes like Delhi-Mumbai, the civil aviation ministry swung into action and asked the airlines to display the maximum fares they charge.
10/12/10 Mihir Mishra/Business Standard

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New service to look after air traffic, declares Patel

New Delhi: Civil Aviation Minister Praful Patel on Thursday told Parliament that the government has approved a proposal to create a separate Air Navigation Service (ANS) to look after the air traffic in the country. "The government has approved the proposal to hive off air navigation system (ANS) as a government entity in a two-step process," Patel informed the Lok Sabha in a reply to a question.
In the first step, all air traffic activity would come under the new organisation which would be independent of the Airport Authority of India (AAI). The move, as part of a 2007 restructuring plan, would see ANS become a specialized and more efficient service branch like the US Federation Aviation Administration (FAA).
Currently, the air navigation comes under the purview of the AAI and has 1,962 air traffic controllers.
Patel said that his ministry was working on modernisation of ATC systems and procedures in the country.
"Modernisation of ATC system at Delhi and Mumbai already implemented. Uni-directional ATS routes have been implemented in Delhi terminal control area. A post of member (ANS) has been filled up in AAI," Patel said.
He said these were the recommendations about ATCs by the inquiry into the 1996 midair collision over Charki-Dadri village in Haryana.
09/12/10 Hindustan Times

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Airlines pay only lip service to DGCA order

New Delhi: Domestic airlines have only techincally complied with DGCA's directive to declare route wise fares. The data available on the airlines' websites can only be deciphered by experts.
Airlines have complied with the word of the DGCA order but not with the spirit of the directive. All domestic carriers have, as per the DGCA directive, put up route-wise fares on their websites.
But a closer look shows that these tariff tables appear in a complicated, non-user friendly language.
While the routes and distances columns are coherent, the data in the following columns on airfares does not make sense to the common man. It uses code that only aviation executives can decipher.
The Kingfisher Airlines website is worse. Even the routes on the table are in code. While this could be cracked with some scrutiny, nothing else on the table makes any sense. Indigo and SpiceJet tables also offer no simplicity.
Airlines seem to have forgotten that the DGCA directive they agreed to mentioned a user-friendly format for the tariffs. There is absolutely no way a normal passenger will be able to find out just how much he will have to shell out to travel on his route of choice.
09/12/10 Swati Khandelwal/CNBC-TV18/IBN Live

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Airlines to refund tickets

New Delhi: When dense fog envelops Delhi this winter, there will be fewer delays and lesser chaos at the airport, or so the airlines claim. Confident of its performance even during zero visibility, Air India promises to refund the total ticket fare to passengers who cancel their tickets in case their flight is delayed by more than an hour due to fog.
The airline says it has nearly 500 pilots who are trained to land flights using the CAT II and III instrument landing system (ILS).
The ILS guides pilots to land even when the runway is not visible in dense fog.
"Passengers of all classes, irrespective of when they buy a ticket, will get a full refund if they wish to cancel their tickets," said an Air India spokesman.
"A full refund will be offered if a flight is delayed by more than an hour due to fog," he said.
Kingfisher Airlines, too, is promising a complete refund of the ticket amount but only if the flight itself is cancelled.
"In the event of cancellation of a flight, the entire fare will be refunded or guests will be booked on alternate flights again, based on seat availability," said the airline spokesman.
He added that according to civil aviation requirements, an airline is not bound to provide a refund if a flight is delayed or cancelled due to adverse weather conditions.
10/12/10 Hindustan Times

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